Consolidated Appropriations Act, 2001
PL 106-554 (H.R.4577), enacted 12/21/2000

PUBLIC LAW 106-554—DEC. 21, 2000 
114 STAT. 2763 
Public Law 106-554 
106th Congress 
An Act 
Making consolidated appropriations for the fiscal year ending September 30, 2001, 
and for other purposes. 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled, 
SECTION 1. (a) The provisions of the following bills of the 
106th Congress are hereby enacted into law: 
(1) H.R. 5656, as introduced on December 14, 2000. 
(2) H.R. 5657, as introduced on December 14, 2000. 
(3) H.R. 5658, as introduced on December 14, 2000. 
(4) H.R. 5666, as introduced on December 15, 2000, except 
that the text of H.R. 5666, as so enacted, shall not include 
section 123 (relating to the enactment of H.R. 4904). 
(5) H.R. 5660, as introduced on December 14, 2000. 
(6) H.R. 5661, as introduced on December 14, 2000. 
(7) H.R. 5662, as introduced on December 14, 2000. 
(8) H.R. 5663, as introduced on December 14, 2000. 
(9) H.R. 5667, as introduced on December 15, 2000. 
(b) In publishing this Act in slip form and in the United 
States Statutes at Large pursuant to section 112 of title 1, United 
States Code, the Archivist of the United States shall include after 
the date of approval at the end appendixes setting forth the texts 
of the bills referred to in subsection (a) of this section and the 
text of any other bill enacted into law by reference by reason 
of the enactment of this Act. 
SEC. 2. (a) Notwithstanding Rule 3 of the Budget Scorekeeping 
Guidelines set forth in the joint explanatory statement of the 
committee of conference accompanying Conference Report 105-217, 
legislation enacted in section 505 of the Department of Transpor-
tation and Related Agencies Appropriations Act, 2001, section 312 
of the Legislative Branch Appropriations Act, 2001, titles X and 
XI of H.R. 5548 (106th Congress) as enacted by H.R. 4942 (106th 
Congress), division B of H.R. 5666 (106th Congress) as enacted 
by this Act, and sections 1(a)(5) through 1(a)(9) of this Act that 
would have been estimated by the Office of Management and Budget 
as changing direct spending or receipts under section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 were 
it included in an Act other than an appropriations Act shall be 
treated as direct spending or receipts legislation, as appropriate, 
under section 252 of the Balanced Budget and Emergency Deficit 
Control Act of 1985. 
(b) In preparing the final sequestration report required by 
section 254(f)(3) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 for fiscal year 2001, in addition to the informa-
tion required by that section, the Director of the Office of Manage-
ment and Budget shall change any balance of direct spending 
Dec. 21, 2000 
[H.R. 4577] 
Consohdated 
Appropriations 
Act, 2001. 
Incorporation by 
reference. 
Publication. 
1 u s e 112 note. 
See Endnote on 114 Stat. 2764. 
114 STAT. 2764 
PUBLIC LAW 106-554—DEC. 21, 2000 
and receipts legislation for fiscal year 2001 under section 252 of 
that Act to zero. 
(c) This Act may be cited as the "Consolidated Appropriations 
Act, 2001". 
Approved December 21, 2000. 
LEGISLATIVE HISTORY—H.R. 4577 (S. 2553): 
HOUSE REPORTS: Nos. 106-645 (Comm. on Appropriations) and 106-1033 (Comm. 
of Conference). 
SENATE REPORTS: No. 106-293 accompanying S. 2553 (Comm. on Appropria-
tions). 
CONGRESSIONAL RECORD, VoL 146 (2000): 
June 8, 12-14, considered and passed House. 
June 22, 23, 26-30, considered and passed Senate, amended. 
Dec. 15, House and Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, VoL 36 (2000): 
Dec. 21, Presidential remarks and statement. 
ENDNOTE: The following appendixes were added pursuant to the provisions of section 1 of 
this Act (114 Stat. 2763). 
PUBLIC LAW 106-554—APPENDIX 
114 STAT. 2763A-1 
TABLE OF CONTENTS 
The table of contents is as follows: 
APPENDIX A—H.R. 5656 
APPENDIX B—H.R. 5657 
APPENDIX C—H.R. 5658 
APPENDIX D—H.R. 5666 
APPENDIX D-1—S. 2273 
APPENDIX D-2—S. 2885 
APPENDIX E—H.R. 5660 
APPENDIX F—H.R. 5661 
APPENDIX G—H.R. 5662 
APPENDIX H—H.R. 5663 
APPENDIX I—H.R. 5667 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-3 
APPENDIX A—H.R. 5656 
That the following sums are appropriated, out of any money in 
the Treasury not otherwise appropriated, for the Departments of 
Labor, Health and Human Services, and Education, and related 
agencies for the fiscal year ending September 30, 2001, and for 
other purposes, namely: 
TITLE I—DEPARTMENT OF LABOR 
EMPLOYMENT AND TRAINING ADMINISTRATION 
TRAINING AND EMPLOYMENT SERVICES 
For necessary expenses of the Workforce Investment Act, 
including the purchase and hire of passenger motor vehicles, the 
construction, alteration, and repair of buildings and other facilities, 
and the purchase of real property for training centers as authorized 
by the Workforce Investment Act; the Women in Apprenticeship 
and Nontraditional Occupations Act; and the National Skill Stand-
ards Act of 1994; $3,207,805,000 plus reimbursements, of which 
$1,808,465,000 is available for obligation for the period July 1, 
2001 through June 30, 2002; of which $1,377,965,000 is available 
for obligation for the period April 1, 2001 through June 30, 2002, 
including $1,102,965,000 to carry out chapter 4 of the Workforce 
Investment Act and $275,000,000 to carry out section 169 of such 
Act; and of which $20,375,000 is available for the period July 
1, 2001 through June 30, 2004 for necessary expenses of construc-
tion, rehabilitation, and acquisition of Job Corps centers: Provided, 
That $9,098,000 shall be for carrying out section 172 of the 
Workforce Investment Act, and $3,500,000 shall be for carrying 
out the National Skills Standards Act of 1994: Provided 
further, 
That no funds from any other appropriation shall be used to provide 
meal services at or for Job Corps centers: Provided further. That 
funds provided to carry out section 171(d) of such Act may be 
used for demonstration projects that provide assistance to new 
entrants in the workforce and incumbent workers: Provided further, 
That funding provided to carry out projects under section 171 
of the Workforce Investment Act of 1998 that are identified in 
the Conference Agreement, shall not be subject to the requirements 
of section 171(bX2)(B) of such Act, the requirements of section 
171(c)(4)(D) of such Act, or the joint funding requirements of sec-
tions 171(b)(2)(A) and 171(c)(4)(A) of such Act: Provided 
further, 
That funding appropriated herein for Dislocated Worker Employ-
ment and Training Activities under section 132(a)(2)(A) of the 
Workforce Investment Act of 1998 may be distributed for Dislocated 
Worker Projects under section 171(d) of the Act without regard 
to the 10 percent limitation contained in section 171(d) of the 
114 STAT. 2763A-4 
PUBLIC LAW 106-554—APPENDIX A 
Act: Provided further, That of the funds made available for Job 
Corps operating expenses in the Department of Labor Appropria-
tions Act, 2000, as enacted by section 1000(a)(4) of Public Law 
106-113, $586,487 shall be paid to the city of Vergennes, Vermont 
in settlement of the city's claim: Provided further. That $4,600,000 
provided herein for dislocated worker employment and training 
activities shall be made available to the New Mexico Telecommuni-
cations Call Center Training Consortium for training in tele-
communications-related occupations. 
For necessary expenses of the Workforce Investment Act, 
including the purchase and hire of passenger motor vehicles, the 
construction, alteration, and repair of buildings and other facilities, 
and the purchase of real property for training centers as authorized 
by the Workforce Investment Act; $2,463,000,000 plus reimburse-
ments, of which $2,363,000,000 is available for obligation for the 
period October 1, 2001 through June 30, 2002, and of which 
$100,000,000 is available for the period October 1, 2001 through 
June 30, 2004, for necessary expenses of construction, rehabilitation, 
and acquisition of Job Corps centers. 
COMMUNITY SERVICE EMPLOYMENT FOR OLDER AMERICANS 
To carry out title V of the Older Americans Act of 1965, as 
amended, $440,200,000. 
FEDERAL UNEMPLOYMENT BENEFITS AND ALLOWANCES 
For payments during the current fiscal year of trade adjustment 
benefit pa5anents and allowances under part I; and for training, 
allowances for job search and relocation, and related State adminis-
trative expenses under part II, subchapters B and D, chapter 2, 
title II of the Trade Act of 1974, as amended, $406,550,000, together 
with such amounts as may be necessary to be charged to the 
subsequent appropriation for payments for any period subsequent 
to September 15 of the current year. 
STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT SERVICE 
OPERATIONS 
For authorized administrative expenses, $193,452,000, together 
with not to exceed $3,172,246,000 (including not to exceed 
$1,228,000 which may be used for amortization payments to States 
which had independent retirement plans in their State emplojmnent 
service agencies prior to 1980), which may be expended from the 
Employment Security Administration account in the Unemployment 
Trust Fund including the cost of administering section 51 of the 
Internal Revenue Code of 1986, as amended, section 7(d) of the 
Wagner-Peyser Act, as amended, the Trade Act of 1974, as amended, 
the Immigration Act of 1990, and the Immigration and Nationality 
Act, as amended, and of which the sums available in the allocation 
for activities authorized by title III of the Social Security Act, 
as amended (42 U.S.C. 502-504), and the sums available in the 
allocation for necessary administrative expenses for carrying out 
5 U.S.C. 8501-8523, shall be available for obligation by the States 
through December 31, 2001, except that funds used for automation 
acquisitions shall be available for obligation by the States through 
September 30, 2003; and of which $193,452,000, together with 
not to exceed $773,283,000 of the amount which may be expended 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-5 
from said trust fund, shall be available for obligation for the period 
July 1, 2001 through June 30, 2002, to fund activities under the 
Act of June 6, 1933, as amended, including the cost of penalty 
mail authorized under 39 U.S.C. 3202(a)(1)(E) made available to 
States in lieu of allotments for such purpose: Provided, That to 
the extent that the Average Weekly Insured Unemployment (AWIU) 
for fiscal year 2001 is projected by the Department of Labor to 
exceed 2,396,000, an additional $28,600,000 shall be available for 
obligation for every 100,000 increase in the AWIU level (including 
a pro rata amount for any increment less than 100,000) from 
the Employment Security Administration Account of the Unemploy-
ment Trust Fund: Provided further, That funds appropriated in 
this Act which are used to establish a national one-stop career 
center system, or which are used to support the national activities 
of the Federal-State unemployment insurance programs, may be 
obligated in contracts, grants, or agreements with non-State enti-
ties: Provided further, That funds appropriated under this Act for 
activities authorized under the Wagner-Peyser Act, as amended, 
and title III of the Social Security Act, may be used by the States 
to fund integrated Employment Service and Unemployment Insur-
ance automation efforts, notwithstanding cost allocation principles 
prescribed under Office of Management and Budget Circular A-
87. 
ADVANCES 
TO 
THE 
UNEMPLOYMENT 
TRUST 
FUND 
AND 
OTHER 
FUNDS 
For repayable advances to the Unemplojnnent Trust Fund as 
authorized by sections 905(d) and 1203 of the Social Security Act, 
as amended, and to the Black Lung Disability Trust Fund as 
authorized by section 9501(c)(1) of the Internal Revenue Code of 
1954, as amended; and for nonrepayable advances to the Unemploy-
ment Trust Fund as authorized by section 8509 of title 5, United 
States Code, and to the "Federal unemployment benefits and allow-
ances" account, to remain available until September 30, 2002, 
$435,000,000. 
In addition, for making repayable advances to the Black Lung 
Disability Trust Fund in the current fiscal year after September 
15, 2001, for costs incurred by the Black Lung Disability Trust 
Fund in the current fiscal year, such sums as may be necessary. 
PROGRAM ADMINISTRATION 
For expenses of administering employment and training pro-
grams, $110,651,000, including $6,431,000 to support up to 75 
full-time equivalent staff, the majority of which will be term Federal 
appointments lasting no more than 1 year, to administer welfare-
to-work grants, together with not to exceed $48,507,000, which 
may be expended from the Employment Security Administration 
account in the Unemployment Trust Fund. 
PENSION AND WELFARE BENEFITS ADMINISTRATION 
SALARIES AND EXPENSES 
For necessary expenses for the Pension and Welfare Benefits 
Administration, $107,832,000. 
114 STAT. 2763A-6 
PUBLIC LAW 106-554—APPENDIX A 
PENSION BENEFIT GUARANTY CORPORATION 
PENSION BENEFIT GUARANTY CORPORATION FUND 
The Pension Benefit Guaranty Corporation is authorized to 
make such expenditures, including financial assistance authorized 
by section 104 of Public Law 96-364, within limits of funds and 
borrowing authority available to such Corporation, and in accord 
with law, and to make such contracts and commitments without 
regard to fiscal year limitations as provided by section 104 of 
the Government Corporation Control Act, as amended (31 U.S.C. 
9104), as may be necessary in carrying out the program through 
September 30, 2001, for such Corporation: Provided, That not to 
exceed $11,652,000 shall be available for administrative expenses 
of the Corporation: Provided further. That expenses of such Corpora-
tion in connection with the termination of pension plans, for the 
acquisition, protection or management, and investment of trust 
assets, and for benefits administration services shall be considered 
as nonadministrative expenses for the purposes hereof, and excluded 
from the above limitation. 
EMPLOYMENT STANDARDS ADMINISTRATION 
SALARIES A N D EXPENSES 
For necessary expenses for the Employment 
Standards 
Administration, including reimbursement to State, Federal, and 
local agencies and their employees for inspection services rendered, 
$361,491,000, together with $1,985,000 which may be expended 
from the Special Fund in accordance with sections 39(c), 44(d), 
and 44(j) of the Longshore and Harbor Workers' Compensation 
Act: Provided, That $2,000,000 shall be for the development of 
an alternative system for the electronic submission of reports 
required to be filed under the Labor-Management Reporting and 
Disclosure Act of 1959, as amended, and for a computer database 
of the information for each submission by whatever means, that 
is indexed and easily searchable by the public via the Internet: 
Provided further. That the Secretary of Labor is authorized to 
accept, retain, and spend, until expended, in the name of the 
Department of Labor, all sums of money ordered to be paid to 
the Secretary of Labor, in accordance with the terms of the Consent 
Judgment in Civil Action No. 91-0027 of the United States District 
Court for the District of the Northern Mariana Islands (May 21, 
1992): Provided further. That the Secretary of Labor is authorized 
to establish and, in accordance with 31 U.S.C. 3302, collect and 
deposit in the Treasury fees for processing applications and issuing 
certificates under sections 11(d) and 14 of the Fair Labor Standards 
Act of 1938, as amended (29 U.S.C. 211(d) and 214) and for process-
ing applications and issuing registrations under title I of the 
Migrant and Seasonal Agricultural Worker Protection Act (29 U.S.C. 
1801 et seq.). 
SPECIAL BENEFITS 
(INCLUDING TRANSFER OF FUNDS) 
For the payment of compensation, benefits, and expenses 
(except administrative expenses) accruing during the current or 
any prior fiscal year authorized by title 5, chapter 81 of the United 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-7 
States Code; continuation of benefits as provided for under the 
heading "Civihan War Benefits" in the Federal Security Agency 
Appropriation Act, 1947; the Employees' Compensation Commission 
Appropriation Act, 1944; sections 4(c) and 5(f) of the War Claims 
Act of 1948 (50 U.S.C. App. 2012); and 50 percent of the additional 
compensation and benefits required by section 10(h) of the 
Longshore and Harbor Workers' Compensation Act, as amended, 
$56,000,000 together with such amounts as may be necessary to 
be charged to the subsequent year appropriation for the payment 
of compensation and other benefits for any period subsequent to 
August 15 of the current year: Provided, That amounts appropriated 
may be used under section 8104 of title 5, United States Code, 
by the Secretary of Labor to reimburse an employer, who is not 
the employer at the time of injury, for portions of the salary of 
a reemployed, disabled beneficiary: Provided further, That balances 
of reimbursements unobligated on September 30, 2000, shall remain 
available until expended for the pa5anent of compensation, benefits, 
and expenses: Provided further. That in addition there shall be 
transferred to this appropriation from the Postal Service and from 
any other corporation or instrumentality required under section 
8147(c) of title 5, United States Code, to pay an amount for its 
fair share of the cost of administration, such sums as the Secretary 
determines to be the cost of administration for employees of such 
fair share entities through September 30, 2001: Provided 
further. 
That of those funds transferred to this account from the fair share 
entities to pay the cost of administration, $34,910,000 shall be 
made available to the Secretary as follows: (1) for the operation 
of and enhancement to the automated data processing systems, 
including document imaging, medical bill review, and periodic roll 
management, in support of Federal Employees' Compensation Act 
administration, $23,371,000; (2) for conversion to a paperless office, 
$7,005,000; (3) for communications redesign, $1,750,000; (4) for 
information technology maintenance and support, $2,784,000; and 
(5) the remaining funds shall be paid into the Treasury as mis-
cellaneous receipts: Provided further, 
That the Secretary may 
require that any person filing a notice of injury or a claim for 
benefits under chapter 81 of title 5, United States Code, or 33 
U.S.C. 901 et seq., provide as part of such notice and claim, such 
identifying information (including Social Security account number) 
as such regulations may prescribe. 
BLACK LUNG DISABILITY TRUST FUND 
(INCLUDING TRANSFER OF FUNDS) 
For pa5anents from the Black Lung Disability Trust Fund, 
$1,028,000,000, of which $975,343,000 shall be available until 
September 30, 2002, for payment of all benefits as authorized 
by section 9501(d)(1), (2), (4), and (7) of the Internal Revenue 
Code of 1954, as amended, and interest on advances as authorized 
by section 9501(c)(2) of that Act, and of which $30,393,000 shall 
be available for transfer to Employment Standards Administration, 
Salaries and Expenses, $21,590,000 for transfer to Departmental 
Management, Salaries and Expenses, $318,000 for transfer to 
Departmental Management, Office of Inspector General, and 
$356,000 for payment into miscellaneous receipts for the expenses 
of the Department of the Treasury, for expenses of operation and 
administration of the Black Lung Benefits program as authorized 
114 STAT. 2763A-8 
PUBLIC LAW 106-554—APPENDIX A 
by section 9501(d)(5) of that Act: Provided, That, in addition, such 
amounts as may be necessary may be charged to the subsequent 
year appropriation for the payment of compensation, interest, or 
other benefits for any period subsequent to August 15 of the current 
year. 
OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION 
SALARIES AND EXPENSES 
For necessary expenses for the Occupational Safety and Health 
Administration, $425,983,000, including not to exceed $88,493,000 
which shall be the maximum amount available for grants to States 
under section 23(g) of the Occupational Safety and Health Act, 
which grants shall be no less than 50 percent of the costs of 
State occupational safety and health programs required to be 
incurred under plans approved by the Secretary under section 18 
of the Occupational Safety and Health Act of 1970; and, in addition, 
notwithstanding 31 U.S.C. 3302, the Occupational Safety and 
Health Administration may retain up to $750,000 per fiscal year 
of training institute course tuition fees, otherwise authorized by 
law to be collected, and may utilize such sums for occupational 
safety and health training and education grants: Provided, That, 
notwithstanding 31 U.S.C. 3302, the Secretary of Labor is author-
ized, during the fiscal year ending September 30, 2001, to collect 
and retain fees for services provided to Nationally Recognized Test-
ing Laboratories, and may utilize such sums, in accordance with 
the provisions of 29 U.S.C. 9a, to administer national and inter-
national laboratory recognition programs that ensure the safety 
of equipment and products used by workers in the workplace: 
Provided further, That none of the funds appropriated under this 
paragraph shall be obligated or expended to prescribe, issue, admin-
ister, or enforce any standard, rule, regulation, or order under 
the Occupational Safety and Health Act of 1970 which is applicable 
to any person who is engaged in a farming operation which does 
not maintain a temporary labor camp and employs 10 or fewer 
employees: Provided further. That no funds appropriated under 
this paragraph shall be obligated or expended to administer or 
enforce any standard, rule, regulation, or order under the Occupa-
tional Safety and Health Act of 1970 with respect to any employer 
of 10 or fewer employees who is included within a category having 
an occupational injury lost workday case rate, at the most precise 
St£indard Industrial Classification Code for which such data are 
published, less than the national average rate as such rates are 
most recently published by the Secretary, acting through the Bureau 
of Labor Statistics, in accordance with section 24 of that Act (29 
U.S.C. 673), except— 
(1) to provide, as authorized by such Act, consultation, 
technical assistance, educational and training services, and to 
conduct surveys and studies; 
(2) to conduct an inspection or investigation in response 
to an employee complaint, to issue a citation for violations 
found during such inspection, and to assess a penalty for viola-
tions which are not corrected within a reasonable abatement 
period and for any willful violations found; 
(3) to take any action authorized by such Act with respect 
to imminent dangers; 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-9 
(4) to take any action authorized by such Act with respect 
to health hazards; 
(5) to take any action authorized by such Act with respect 
to a report of an employment accident which is fatal to one 
or more employees or which results in hospitalization of two 
or more employees, and to take any action pursuant to such 
investigation authorized by such Act; and 
(6) to take any action authorized by such Act with respect 
to complaints of discrimination against employees for exercising 
rights under such Act: 
Provided further. That the foregoing proviso shall not apply to 
any person who is engaged in a farming operation which does 
not maintain a temporary labor camp and employs 10 or fewer 
employees. 
MINE SAFETY AND HEALTH ADMINISTRATION 
SALARIES AND EXPENSES 
For necessary expenses for the Mine Safety and Health 
Administration, $246,747,000, including purchase and bestowal of 
certificates and trophies in connection with mine rescue and first-
aid work, and the hire of passenger motor vehicles; including up 
to $1,000,000 for mine rescue and recovery activities, which shall 
be available only to the extent that fiscal year 2001 obligations 
for these activities exceed $1,000,000; in addition, not to exceed 
$750,000 may be collected by the National Mine Health and Safety 
Academy for room, board, tuition, and the sale of training materials, 
otherwise authorized by law to be collected, to be available for 
mine safety and health education and training activities, notwith-
standing 31 U.S.C. 3302; and, in addition, the Mine Safety and 
Health Administration may retain up to $1,000,000 from fees col-
lected for the approval and certification of equipment, materials, 
and explosives for use in mines, and may utilize such sums for 
such activities; the Secretary is authorized to accept lands, build-
ings, equipment, and other contributions from public and private 
sources and to prosecute projects in cooperation with other agencies. 
Federal, State, or private; the Mine Safety and Health Administra-
tion is authorized to promote health and safety education and 
training in the mining community through cooperative programs 
with States, industry, and safety associations; and any funds avail-
able to the department may be used, with the approval of the 
Secretary, to provide for the costs of mine rescue and survival 
operations in the event of a major disaster. 
BUREAU OF LABOR STATISTICS 
SALARIES AND EXPENSES 
For necessary expenses for the Bureau of Labor Statistics, 
including advances or reimbursements to State, Federal, and local 
agencies and their employees for services rendered, $374,327,000, 
together with not to exceed $67,257,000, which may be expended 
from the Employment Security Administration account in the 
Unemployment Trust Fund; and $10,000,000 which shall be avail-
able for obligation for the period July 1, 2001 through June 30, 
2002, for Occupational Employment Statistics. 
114 STAT. 2763A-10 
PUBLIC LAW 106-554—APPENDIX A 
DEPARTMENTAL MANAGEMENT 
SALARIES A N D EXPENSES 
For necessary expenses for Departmental Management, includ-
ing the hire of three sedans, and including the management or 
operation, through contracts, grants, or other arrangements of 
Departmental bilateral and multilateral foreign technical assist-
ance, of which the funds designated to carry out bilateral assistance 
under the international child labor initiative shall be available 
for obligation through September 30, 2002, and $37,000,000 for 
the acquisition of Departmental information technology, architec-
ture, infrastructure, equipment, software, and related needs which 
will be allocated by the Department's Chief Information Officer 
in accordance with the Department's capital investment manage-
ment process to assure a sound investment strategy, $380,529,000; 
together with not to exceed $310,000, which may be expended 
from the Employment Security Administration account in the 
Unemployment Trust Fund: Provided, That no funds made available 
by this Act may be used by the Solicitor of Labor to participate 
in a review in any United States court of appeals of any decision 
made by the Benefits Review Board under section 21 of the 
Longshore and Harbor Workers' Compensation Act (33 U.S.C. 921) 
where such participation is precluded by the decision of the United 
States Supreme Court in Director, Office of Workers' Compensation 
Programs v. Newport News Shipbuilding, 115 S. Ct. 1278 (1995), 
notwithstanding any provisions to the contrary contained in Rule 
15 of the Federal Rules of Appellate Procedure: Provided 
further. 
That no funds made available by this Act may be used by the 
Secretary of Labor to review a decision under the Longshore and 
Harbor Workers' Compensation Act (33 U.S.C. 901 et seq.) that 
has been appealed and that has been pending before the Benefits 
Review Board for more than 12 months: Provided further. That 
any such decision pending a review by the Benefits Review Board 
for more than 1 year shall be considered affirmed by the Benefits 
Review Board on the 1-year anniversary of the filing of the appeal, 
and shall be considered the final order of the Board for purposes 
of obtaining a review in the United States courts of appeals: Pro-
vided further. That these provisions shall not be applicable to the 
review or appeal of any decision issued under the Black Lung 
Benefits Act (30 U.S.C. 901 et seq.): Provided further. That begin-
ning in fiscal year 2001, there is established in the Department 
of Labor an office of disability employment policy which shall, 
under the overall direction of the Secretary, provide leadership, 
develop policy and initiatives, and award grants furthering the 
objective of eliminating barriers to the training and employment 
of people with disabilities. Such office shall be headed by an Assist-
ant Secretary: Provided further. That of amounts provided under 
this head, not more than $23,002,000 is for this purpose. 
VETERANS EMPLOYMENT AND TRAINING 
Not to exceed $186,913,000 may be derived from the Employ-
ment Security Administration account in the Unemployment Trust 
Fund to carry out the provisions of 38 U.S.C. 4100-4110A, 4212, 
4214, and 4321-4327, and Public Law 103-353, and which shall 
be available for obligation by the States through December 31, 
2001. To carry out the Stewart B. McKinney Homeless Assistance 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-11 
Act and section 168 of the Workforce Investment Act of 1998, 
$24,800,000, of which $7,300,000 shall be available for obligation 
for the period July 1, 2001 through June 30, 2002. 
OFFICE OF INSPECTOR GENERAL 
For salaries and expenses of the Office of Inspector General 
in carrying out the provisions of the Inspector General Act of 
1978, as amended, $50,015,000, together with not to exceed 
$4,770,000, which may be expended from the Employment Security 
Administration account in the Unemployment Trust Fund. 
GENERAL PROVISIONS 
SEC. 101. None of the funds appropriated in this title for 
the Job Corps shall be used to pay the compensation of an individ-
ual, either as direct costs or any proration as an indirect cost, 
at a rate in excess of Executive Level II. 
(TRANSFER OF FUNDS) 
SEC. 102. Not to exceed 1 percent of any discretionary funds 
(pursuant to the Balanced Budget and Emergency Deficit Control 
Act of 1985, as amended) which are appropriated for the current 
fiscal year for the Department of Labor in this Act may be trans-
ferred between appropriations, but no such appropriation shall be 
increased by more than 3 percent by any such transfer: Provided, 
That the Appropriations Committees of both Houses of Congress 
are notified at least 15 days in advance of any transfer. 
SEC. 103. Section 403(a)(5)(C)(viii) of the Social Security Act 
(42 U.S.C. 603(a)(5)(C)(viii)) (as amended by section 801(b)(1)(A) 
of the Departments of Labor, Health and Human Services, and 
Education, and Related Agencies Appropriations Act, 2000 (as 
enacted into law by section 1000(a)(4) of PubUc Law 106-113)) 
is amended by striking "3 years" and inserting "5 years". 
SEC. 104. No funds appropriated in this Act or any other 
Act making appropriations for fiscal year 2001 may be used to 
implement or enforce the proposed and final regulations appearing 
in 65 Fed. Reg. 43528-43583, regarding temporary alien labor cer-
tification applications and petitions for admission of nonimmigrant 
workers, or any similar or successor rule with an effective date 
prior to October 1, 2001: Provided, That nothing in this section 
shall prohibit the development or revision of such a rule, or the 
publication of any similar or successor proposed or final rule, or 
the provision of training or technical assistance, or other activities 
necessary and appropriate in preparing to implement such a rule 
with an effective date after September 30, 2001. 
SEC. 105. Section 218(c)(4) of the Immigration and Nationality 
Act (8 U.S.C. 1188(c)(4)) is amended by adding at the end the 
following new sentence: "The determination as to whether the hous-
ing furnished by an employer for an H-2A worker meets the require-
ments imposed by this paragraph must be made prior to the date 
specified in paragraph (3)(A) by which the Secretary of Labor is 
required to make a certification described in subsection (a)(1) with 
respect to a petition for the importation of such worker.". 
SEC. 106. Section 286(s)(6) of the Immigration and Naturaliza-
tion Act (8 U.S.C. 1356(s)(6)) is amended by inserting "and section 
212(a)(5)(A)" after the second reference to "section 212(n)(l)". 
114 STAT. 2763A-12 
PUBLIC LAW 106-554—APPENDIX A 
SEC. 107. (a) Section 403(a)(5) of the Social Security Act (as 
amended by section 806(b) of the Departments of Labor, Health 
and Human Services, and Education, and Related Agencies Appro-
priations Act, 2000 (as enacted into law by section 1000(a)(4) of 
Public Law 106-113)) is amended by striking subparagraph (E) 
and redesignating subparagraphs (F) through (K) as subparagraphs 
(E) through (J), respectively. 
(b) The Social Security Act (as amended by section 806(b) 
of the Departments of Labor, Health and Human Services, and 
Education, and Related Agencies Appropriations Act, 2000 (as 
enacted into law by section 1000(a)(4) of PubUc Law 106-113)) 
is further amended as follows: 
(1) Section 403(a)(5)(A)(i) (42 U.S.C. 603(a)(5)(A)(i)) is 
amended by striking "subparagraph (I)" and inserting "subpara-
graph (H)". 
(2) Subclause (I) of each of subparagraphs (A)(iv) and (B)(v) 
of section 403(a)(5) (42 U.S.C. 603(a)(5)(A)(iv)(I) and (B)(v)(I)) 
is amended— 
(A) in item (aa)— 
(i) by striking "(I)" and inserting "(H)"; and 
(ii) by striking "(G), and (H)" and inserting "and 
(G)"; and 
(B) in item (bb), by striking "(F)" and inserting "(E)". 
(3) Section 403(a)(5)(B)(v) (42 U.S.C. 603(a)(5)(B)(v)) is 
amended in the matter preceding subclause (I) by striking 
"(I)" and inserting "(H)". 
(4) Subparagraphs (E), (F), and (G)(i) of section 403(a)(5) 
(42 U.S.C. 603(a)(5)), as so redesignated by subsection (a) of 
this section, are each amended by striking "(I)" and inserting 
"(H)". 
(5) Section 412(a)(3)(A) (42 U.S.C. 612(a)(3)(A)) is amended 
by striking "403(a)(5)(I)" and inserting "403(a)(5)(H)". 
(c) 
Section 
403(a)(5)(H)(i)(II) 
of such Act (42 U.S.C. 
603(a)(5)(H)(i)(II)) (as redesignated by subsection (a) of this section 
and as amended by section 806(b) of the Departments of Labor, 
Health and Human Services, and Education, and Related Agencies 
Appropriations Act, 2000 (as enacted into law by section 1000(a)(4) 
of Public Law 106-113)) is further 
amended by striking 
"$1,450,000,000" and inserting "$1,400,000,000". 
(d) The amendments made by subsections (a), (b), and (c) of 
this section shall take effect on October 1, 2000. 
This title may be cited as the "Department of Labor Appropria-
tions Act, 2001". 
TITLE II—DEPARTMENT OF HEALTH AND HUMAN 
SERVICES 
HEALTH RESOURCES AND SERVICES ADMINISTRATION 
HEALTH RESOURCES AND SERVICES 
For carrying out titles II, III, VII, VIII, X, XII, XIX, and 
XXVI of the Public Health Service Act, section 427(a) of the Federal 
Coal Mine Health and Safety Act, title V and section 1820 of 
the Social Security Act, the Health Care Quality Improvement 
Act of 1986, as amended, the Native Hawaiian Health Care Act 
of 1988, as amended, and the Poison Control Center Enhancement 
and Awareness Act, $5,525,476,000, of which $226,224,000 shall 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-13 
be available for the construction and renovation of health care 
and other facilities, and of which $25,000,000 from general reve-
nues, notwithstanding section 1820(j) of the Social Security Act, 
shall be available for carrying out the Medicare rural hospital 
flexibility grants program under section 1820 of such Act: Provided, 
That the Division of Federal Occupational Health may utilize per-
sonal services contracting to employ professional management/ 
administrative and occupational health professionals: Provided fur-
ther. That of the funds made available under this heading, $250,000 
shall be available until expended for facilities renovations at the 
Gillis W. Long Hansen's Disease Center: Provided further, That 
in addition to fees authorized by section 427(b) of the Health Care 
Quality Improvement Act of 1986, fees shall be collected for the 
full disclosure of information under the Act sufficient to recover 
the full costs of operating the National Practitioner Data Bank, 
and shall remain available until expended to carry out that Act: 
Provided further. That fees collected for the full disclosure of 
information under the "Health Care Fraud and Abuse Data Collec-
tion Program," authorized by section 1128E(d)(2) of the Social Secu-
rity Act, shall be sufficient to recover the full costs of operating 
the program, and shall remain available until expended to carry 
out that Act: Provided further. That no more than $5,000,000 is 
available for carrying out the provisions of Public Law 104-73: 
Provided further. That of the funds made available under this 
heading, $253,932,000 shall be for the program under title X of 
the Public Health Service Act to provide for voluntary family plan-
ning projects: Provided further. That amounts provided to said 
projects under such title shall not be expended for abortions, that 
all pregnancy counseling shall be nondirective, and that such 
amounts shall not be expended for any activity (including the 
publication or distribution of literature) that in any way tends 
to promote public support or opposition to any legislative proposal 
or candidate for public office: Provided further, ThaX $589,000,000 
shall be for State AIDS Drug Assistance Programs authorized by 
section 2616 of the Public Health Service Act: Provided 
further. 
That of the amount provided under this heading, $700,000 shall 
be for the American Federation of Negro Affairs Education and 
Research Fund of Philadelphia, $900,000 shall be for the Des Moines 
University Osteopathic Medical Center, $250,000 shall be for the 
University of Alaska, Anchorage, to train Alaska Natives as 
psychologists, $900,000 shall be for Northeastern University in 
Boston, Massachusetts, to train doctors to serve in low-income 
communities, $500,000 shall be for the University of Alaska, 
Anchorage, to recruit and train nurses in rural areas, and $230,000 
shall be for the Illinois Poison Center: Provided further, 
That, 
notwithstanding section 502(a)(1) of the Social Security Act, not 
to exceed $113,728,000 is available for carrying out special projects 
of regional and national significance pursuant to section 501(a)(2) 
of such Act, of which $5,000,000 is for Columbia Hospital for Women 
Medical Center in Washington, D.C., to support community outreach 
programs for women, $5,000,000 is for continuation of the traumatic 
brain injury State demonstration projects, and $100,000 is for St. 
Joseph's Health Services of Rhode Island for the Providence Smiles 
dental program for low-income children. 
For special projects of regional and national significance under 
section 501(a)(2) of the Social Security Act, $30,000,000, which 
114 STAT. 2763A-14 
PUBLIC LAW 106-554—APPENDIX A 
shall become available on October 1, 2001, and shall remain avail-
able until September 30, 2002: Provided, That such amount shall 
not be counted toward compliance with the allocation required 
in section 502(a)(1) of such Act: Provided further. That such amount 
shall be used only for making competitive grants to provide 
abstinence education (as defined in section 510(b)(2) of such Act) 
to adolescents and for evaluations (including longitudinal evalua-
tions) of activities under the grants and for Federal costs of admin-
istering the grants: Provided further. That grants shall be made 
only to public and private entities which agree that, with respect 
to an adolescent to whom the entities provide abstinence education 
under such grant, the entities will not provide to that adolescent 
any other education regarding sexual conduct, except that, in the 
case of an entity expressly required by law to provide health 
information or services the adolescent shall not be precluded from 
seeking health information or services from the entity in a different 
setting than the setting in which the abstinence education was 
provided: Provided further. 
That the funds expended for such 
evaluations may not exceed 3.5 percent of such amount. 
HEALTH EDUCATION ASSISTANCE LOANS PROGRAM 
Such sums as may be necessary to carry out the purpose 
of the program, as authorized by title VII of the Public Health 
Service Act, as amended. For administrative expenses to carry 
out the guaranteed loan program, including section 709 of the 
Public Health Service Act, $3,679,000. 
VACCINE INJURY COMPENSATION PROGRAM TRUST FUND 
For payments from the Vaccine Injury Compensation Program 
Trust Fund, such sums as may be necessary for claims associated 
with vaccine-related injury or death with respect to vaccines 
administered after September 30, 1988, pursuant to subtitle 2 of 
title XXI of the Public Health Service Act, to remain available 
until expended: Provided, 
That for necessary 
administrative 
expenses, not to exceed $2,992,000 shall be available from the 
Trust Fund to the Secretary of Health and Human Services. 
CENTERS FOR DISEASE CONTROL AND PREVENTION 
DISEASE CONTROL, RESEARCH, AND TRAINING 
To carry out titles II, III, VII, XI, XV, XVII, XIX, and XXVI 
of the Public Health Service Act, sections 101, 102, 103, 201, 202, 
203, 301, and 501 of the Federal Mine Safety and Health Act 
of 1977, sections 20, 21, and 22 of the Occupational Safety and 
Health Act of 1970, title IV of the Immigration and Nationality 
Act, and section 501 of the Refugee Education Assistance Act of 
1980; including insurance of official motor vehicles in foreign coun-
tries; 
and 
hire, 
maintenance, 
and 
operation 
of 
aircraft, 
$3,868,027,000, of which $175,000,000 shall remain available until 
expended for the facilities master plan for equipment and construc-
tion and renovation of facilities, and in addition, such sums as 
may be derived from authorized user fees, which shall be credited 
to this account, and of which $104,527,000 for international HIV/ 
AIDS programs shall remain available until September 30, 2002: 
Provided, That in addition to amounts provided herein, up to 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-15 
$71,690,000 shall be available from amounts available under section 
241 of the Public Health Service Act to carry out the National 
Center for Health Statistics Surveys: Provided further. That none 
of the funds made available for injury prevention and control at 
the Centers for Disease Control and Prevention may be used to 
advocate or promote gun control: Provided further. That the Director 
may redirect the total amount made available under authority 
of Public Law 101-502, section 3, dated November 3, 1990, to 
activities the Director may so designate: Provided further. That 
the Congress is to be notified promptly of any such transfer: Pro-
vided further. That not to exceed $10,000,000 may be available 
for making grants under section 1509 of the Public Health Service 
Act to not more than 15 States: Provided further. That notwith-
standing any other provision of law, a single contract or related 
contracts for development and construction of facilities may be 
employed which collectively include the full scope of the project: 
Provided further. That the solicitation and contract shall contain 
the clause "availability of funds" found at 48 CFR 52.232-18: Pro-
vided further. That funds obligated for influenza vaccine stockpile 
in fiscal year 2000 and fiscal year 2001 shall be considered as 
appropriated under section 3 of Public Law 101-502. 
NATIONAL INSTITUTES OF HEALTH 
NATIONAL CANCER INSTITUTE 
For carrying out section 301 and title IV of the Public Health 
Service Act with respect to cancer, $3,757,242,000. 
NATIONAL HEART, LUNG, AND BLOOD INSTITUTE 
For carr3dng out section 301 and title IV of the Public Health 
Service Act with respect to cardiovascular, lung, and blood diseases, 
and blood and blood products, $2,299,866,000. 
NATIONAL INSTITUTE OF DENTAL AND CRANIOFACIAL RESEARCH 
For carrying out section 301 and title IV of the Public Health 
Service Act with respect to dental disease, $306,448,000. 
NATIONAL INSTITUTE OF DIABETES AND DIGESTIVE AND KIDNEY 
DISEASES 
For canying out section 301 and title IV of the Public Health 
Service Act with respect to diabetes and digestive and kidney dis-
ease, $1,303,385,000. 
,, 
NATIONAL INSTITUTE OF NEUROLOGICAL DISORDERS AND STROKE 
For carr3dng out section 301 and title IV of the Public Health 
Service Act with respect to neurological disorders and stroke, 
$1,176,482,000. 
NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES 
For carr3dng out section 301 and title IV of the Public Health 
Service Act with respect to sillergy and infectious diseases, 
$2,043,208,000. 
114 STAT. 2763A-16 
PUBLIC LAW 106-554—APPENDIX A 
NATIONAL INSTITUTE OF GENERAL MEDICAL SCIENCES 
For carrying out section 301 and title IV of the Public Health 
Service Act with respect to general medical sciences, $1,535,823,000. 
NATIONAL INSTITUTE OF CHILD HEALTH AND HUMAN DEVELOPMENT 
For carrying out section 301 and title IV of the Public Health 
Service Act with respect to child health and human development, 
$976,455,000. 
NATIONAL EYE INSTITUTE 
For carrying out section 301 and title IV of the Public Health 
Service Act with respect to eye diseases and visual disorders, 
$510,611,000. 
NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SCIENCES 
For carrying out sections 301 and 311 and title IV of the 
Public Health Service Act with respect to environmental health 
sciences, $502,549,000. 
NATIONAL INSTITUTE ON AGING 
For carr3dng out section 301 and title IV of the Public Health 
Service Act with respect to aging, $786,039,000. 
NATIONAL INSTITUTE OF ARTHRITIS AND MUSCULOSKELETAL AND SKIN 
DISEASES 
For carrying out section 301 and title IV of the Public Health 
Service Act with respect to arthritis and musculoskeletal and skin 
diseases, $396,687,000. 
NATIONAL INSTITUTE ON DEAFNESS AND OTHER COMMUNICATION 
DISORDERS 
For carrying out section 301 and title IV of the Public Health 
Service Act with respect to deafness and other communication dis-
orders, $300,581,000. 
NATIONAL INSTITUTE OF NURSING RESEARCH 
For carrying out section 301 and title IV of the Public Health 
Service Act with respect to nursing research, $104,370,000. 
NATIONAL INSTITUTE ON ALCOHOL ABUSE AND ALCOHOLISM 
For carrying out section 301 and title IV of the Public Health 
Service Act with respect to alcohol abuse and 
alcoholism, 
$340,678,000. 
NATIONAL INSTITUTE ON DRUG ABUSE 
For carrying out section 301 and title IV of the Public Health 
Service Act with respect to drug abuse, $781,327,000. 
NATIONAL INSTITUTE OF MENTAL HEALTH 
For carrying out section 301 and title IV of the Public Health 
Service Act with respect to mental health, $1,107,028,000. 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-17 
NATIONAL HUMAN GENOME RESEARCH INSTITUTE 
For carrying out section 301 and title IV of the Public Health 
Service Act with respect to human genome research, $382,384,000. 
NATIONAL 
CENTER 
FOR 
RESEARCH 
RESOURCES 
For carrying out section 301 and title IV of the Public Health 
Service Act with respect to research resources and general research 
support grants, $817,475,000: Provided, That none of these funds 
shall be used to pay recipients of the general research support 
grants program any amount for indirect expenses in connection 
with such grsmts: Provided further, That $75,000,000 shall be for 
extramural facilities construction grants. 
JOHN E. FOGARTY INTERNATIONAL CENTER 
For carrying out the activities at the John E. Fogarty Inter-
national Center, $50,514,000. 
NATIONAL LIBRARY OF MEDICINE 
For carrying out section 301 and title IV of the Public Health 
Service Act with respect to health information communications, 
$246,801,000, of which $4,000,000 shall be available until expended 
for improvement of information systems: Provided, That in fiscal 
year 2001, the Library may enter into personal services contracts 
for the provision of services in facilities owned, operated, or con-
structed under the jurisdiction of the National Institutes of Health. 
NATIONAL CENTER FOR COMPLEMENTARY AND ALTERNATIVE 
MEDICINE 
For carrying out section 301 and title IV of the Public Health 
Service Act with respect to complementary and alternative medi-
cine, $89,211,000. 
NATIONAL CENTER ON MINORITY HEALTH AND HEALTH DISPARITIES 
For carrying out section 301 and title IV of the Public Health 
Service Act with respect to minority health and health disparities 
research, $130,200,000. 
OFFICE OF THE DIRECTOR 
(INCLUDING TRANSFER OF FUNDS) 
For carrying out the responsibilities of the Office of the Director, 
National Institutes of Health, $213,581,000, of which $48,271,000 
shall be for the Office of AIDS Research: Provided, That funding 
shall be available for the purchase of not to exceed 20 passenger 
motor vehicles for replacement only: Provided farther. That the 
Director may direct up to 1 percent of the total amount made 
available in this or any other Act to all National Institutes of 
Health appropriations to activities the Director may so designate: 
Provided further. That no such appropriation shall be decreased 
by more than 1 percent by any such transfers and that the Congress 
is promptly notified of the transfer: Provided further. That the 
National Institutes of Health is authorized to collect third party 
payments for the cost of clinical services that are incurred in 
114 STAT. 2763A-18 
PUBLIC LAW 106-554—APPENDIX A 
National Institutes of Health research facilities and that such pay-
ments shall be credited to the National Institutes of Health Manage-
ment Fund: Provided further. That all funds credited to the National 
Institutes of Health Management Fund shall remain available for 
1 fiscal year after the fiscal year in which they are deposited: 
Provided further. That up to $500,000 shall be available to carry 
out section 499 of the Public Health Service Act: Provided further. 
That, notwithstanding section 499(k)(10) of the Public Health Serv-
ice Act, funds from the Foundation for the National Institutes 
of Health may be transferred to the National Institutes of Health. 
BUILDINGS AND FACILITIES 
For the study of, construction of, and acquisition of equipment 
for, facilities of or used by the National Institutes of Health, includ-
ing the acquisition of real property, $153,790,000, to remain avail-
able until expended, of which $47,300,000 shall be for the National 
Neuroscience Research Center: Provided, That notwithstanding any 
other provision of law, a single contract or related contracts for 
the development and construction of the first phase of the National 
Neuroscience Research Center may be employed which collectively 
include the full scope of the project: Provided further. That the 
solicitation and contract shall contain the clause "availability of 
funds" found at 48 CFR 52.232-18. 
SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES ADMINISTRATION 
SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES 
For carrying out titles V and XIX of the Public Health Service 
Act with respect to substance abuse and mental health services, 
the Protection and Advocacy for Mentally 1
1
1 Individuals Act of 
1986, and section 301 of the Public Health Service Act with respect 
to program management, $2,958,001,000, of which $24,605,000 shall 
be available for the projects and in the amounts specified in the 
statement of the managers on the conference report accompanying 
this Act. 
AGENCY FOR HEALTHCARE RESEARCH AND QUALITY 
HEALTHCARE RESEARCH AND QUALITY 
For carrying out titles III and IX of the Public Health Service 
Act, and part A of title XI of the Social Security Act, $104,963,000; 
in addition, amounts received from Freedom of Information Act 
fees, reimbursable and interagency agreements, and the sale of 
data shall be credited to this appropriation and shall remain avail-
able until expended: Provided, That the amount made available 
pursuant to section 926(b) of the Public Health Service Act shall 
not exceed $164,980,000. 
HEALTH CARE FINANCING ADMINISTRATION 
GRANTS TO STATES FOR MEDICAID 
For carrying out, except as otherwise provided, titles XI and 
XIX of the Social Security Act, $93,586,251,000, to remain available 
until expended. 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-19 
For making, after May 31, 2001, payments to States under 
title XIX of the Social Security Act for the last quarter of fiscal 
year 2001 for unanticipated costs, incurred for the current fiscal 
year, such sums as may be necessary. 
For making payments to States or in the case of section 1928 
on behalf of States under title XIX of the Social Security Act 
for the first quarter of fiscal year 2002, $36,207,551,000, to remain 
available until expended. 
Payment under title XIX may be made for any quarter with 
respect to a State plan or plan amendment in effect during such 
quarter, if submitted in or prior to such quarter and approved 
in that or any subsequent quarter. 
PAYMENTS 
TO 
HEALTH 
CARE 
TRUST 
FUNDS 
For payment to the Federal Hospital Insurance and the Federal 
Supplementary Medical Insurance Trust Funds, as provided under 
sections 217(g) and 1844 of the Social Security Act, sections 103(c) 
and 111(d) of the Social Security Amendments of 1965, section 
278(d) of Public Law 97-248, and for administrative expenses 
incurred pursuant to section 201(g) of the Social Security Act, 
$70,381,600,000. 
PROGRAM MANAGEMENT 
For carrying out, except as otherwise provided, titles XI, XVIII, 
XIX, and XXI of the Social Security Act, titles XIII and XXVII 
of the Public Health Service Act, and the Clinical Laboratory 
Improvement Amendments of 1988, not to exceed $2,246,326,000, 
to be transferred from the Federal Hospital Insurance £ind the 
Federal Supplementary Medical Insurance Trust Funds, as author-
ized by section 201(g) of the Social Security Act; together with 
all funds collected in accordance with section 353 of the Public 
Health Service Act and such sums as may be collected from author-
ized user fees and the sale of data, which shall remain available 
until expended, and together with administrative fees collected 
relative to Medicare overpayment recovery activities, which shall 
remain available until expended: Provided, That all funds derived 
in accordance with 31 U.S.C. 9701 from organizations established 
under title XIII of the Public Health Service Act shall be credited 
to and available for carrying out the purposes of this appropriation: 
Provided further. That $18,000,000 appropriated under this heading 
for the managed care system redesign shall remain available until 
expended: Provided further, That $20,000,000 of the amount avail-
able for research, demonstration, and evaluation activities shall 
be available to continue carrying out demonstration projects on 
Medicaid coverage of community-based attendant care services for 
people with disabilities which ensures maximum control by the 
consumer to select and manage their attendant care services: Pro-
vided further. That the Secretary of Health and Human Services 
is directed to enter into an agreement with the Mind-Body Institute 
of Boston, Massachusetts, to conduct a demonstration of a lifestyle 
modification program: Provided further. That $2,800,000 of the 
amount available for research, demonstration, and evaluation activi-
ties shall be awarded for administration, evaluation, quality mon-
itoring and peer review of this lifestyle modification demonstration: 
Provided further. That $2,800,000 of the amount available for 
research, demonstration, and evaluation activities shall be awarded 
114 STAT. 2763A-20 
PUBLIC LAW 106-554—APPENDIX A 
to a joint application from the University of Pittsburgh, Case West-
em Reserve in Cleveland, Ohio, and Mt. Sinai Hospital in Miami, 
Florida, to use integrated nursing services and technology to imple-
ment daily monitoring of congestive heart failure patients in under-
served populations in accordance with established clinical guide-
lines: Provided further. That $500,000 of the amount available 
for research, demonstration, and evaluation activities shall be 
awarded to the University of Pittsburgh Medical Center and Univer-
sity of Pennsylvania for a study of the efficacy of surgical versus 
non-surgical management of abdominal aneurysms: Provided fur-
ther. That $650,000 of the amount available for research, dem-
onstration, and evaluation activities shall be awarded to the Vascu-
lar Surgery Outcome Initiative at Dartmouth College: Provided 
further. That up to $300,000 of the amount available for research, 
demonstration, and evaluation activities shall be awarded to the 
United States-Mexico Border Counties Coalition for a study to deter-
mine the unreimbursed costs incurred to treat undocumented aliens 
for medical emergencies in southwest border States, their border 
counties, and hospitals within the jurisdiction of these States and 
counties: Provided further. That $1,700,000 of the amount available 
for research, demonstration, and evaluation activities shall be 
awarded to the AIDS Healthcare Foundation in Los Angeles for 
a demonstration of residential and outpatient treatment facilities: 
Provided further, 
That $350,000 of the amount available for 
research, demonstration, and evaluation activities shall be awarded 
to the Cook County, Illinois Bureau of Health for the Asthma 
Champion Initiative demonstration to reduce morbidity and mortal-
ity from asthma in high prevalence areas: Provided further, That 
$1,000,000 of the amount available for research, demonstration, 
amd evaluation activities shall be awarded to the West Virginia 
University School of Medicine's Eye Center to test interventions 
and improve the quality of life for individuals with low vision, 
with a particular focus on the elderly: Provided further, 
That 
$1,000,000 of the amount available for research, demonstration, 
and evaluation activities shall be awarded to the Iowa Department 
of Public Health for the establishment and operation of a mercantile 
prescription drug purchasing cooperative or non-profit corporation 
demonstration: Provided further. That $691,000 of the amount avail-
able for research, demonstration, and evaluation activities shall 
be awarded to Ohio State University to determine the benefits 
of compliance packaging: Provided further. That $855,000 of the 
amount available for research, demonstration, and evaluation activi-
ties shall be awarded to Children's Hospice International for a 
demonstration project to provide a continuum of care for children 
with life-threatening conditions and their families: Provided further. 
That $921,000 of the amount available for research, demonstration, 
and evaluation activities shall be awarded to Equip for Equality 
for a demonstration project to document the impact of an independ-
ent investigative unit that will examine deaths or other serious 
allegations of abuse and neglect of people with disabilities at facili-
ties in Illinois: Provided further. That $1,000,000 of the amount 
available for research, demonstration, and evaluation activities shall 
be awarded to Duke University Medical Center to demonstrate 
the potential savings in the Medicare program of a reimbursement 
system based on preventative 
care: Provided 
further. 
That 
$1,843,000 of the amount available for research, demonstration, 
and evaluation activities shall be awarded to Bucks County, 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-21 
Pennsylvania, for a health improvement project: Provided 
further, 
That $255,000 of the amount available for research, demonstration, 
and evaluation activities shall be awarded to the LA Care Health 
Plan in Los Angeles, California, for a demonstration program to 
improve clinical data coordination among Medicaid providers: Pro-
vided further, That $646,000 of the amount available for research, 
demonstration, and evaluation activities shall be for the Shelby 
County Regional Medical Center to establish a Master Patient 
Index to determine patient Medicaid/TennCare eligibility: Provided 
further. That the Secretary of Health and Human Services is 
directed to collect fees in fiscal year 2001 from Medicare + Choice 
organizations pursuant to section 1857(e)(2) of the Social Security 
Act and from eligible organizations with risk-sharing contracts 
under section 1876 of that Act pursuant to section 1876(k)(4)(D) 
of that Act. 
HEALTH MAINTENANCE ORGANIZATION LOAN AND LOAN GUARANTEE 
FUND 
. 
For carrying out subsections (d) and (e) of section 1308 of 
the Public Health Service Act, any amounts received by the Sec-
retary in connection with loans and loan guarantees under title 
XIII of the Public Health Service Act, to be available without 
fiscal year limitation for the payment of outstanding obligations. 
During fiscal year 2001, no commitments for direct loans or loan 
guarantees shall be made. 
ADMINISTRATION FOR CHILDREN AND FAMILIES 
PAYMENTS TO STATES FOR CHILD SUPPORT ENFORCEMENT AND 
FAMILY SUPPORT PROGRAMS 
For making payments to States or other non-Federal entities 
under titles I, IV-D, X, XI, XIV, and XVI of the Social Security 
Act and the Act of July 5, 1960 (24 U.S.C. ch. 9), $2,441,800,000, 
to remain available until expended; and for such purposes for the 
first quarter of fiscal year 2002, $1,000,000,000, to remain available 
until expended. 
For making payments to each State for carrying out the pro-
gram of Aid to Families with Dependent Children under title IV-
A of the Social Security Act before the effective date of the program 
of Temporary Assistance to Needy Families (TANF) with respect 
to such State, such sums as may be necessary: Provided, That 
the sum of the amounts available to a State with respect to expendi-
tures under such title IV-A in fiscal year 1997 under this appropria-
tion and under such title IV-A as amended by the Personal Respon-
sibility and Work Opportunity Reconciliation Act of 1996 shall 
not exceed the limitations under section 116(b) of such Act. 
For making, after May 31 of the current fiscal year, payments 
to States or other non-Federal entities under titles I, IV-D, X, 
XI, XTV, and XVI of the Social Security Act and the Act of July 
5, 1960 (24 U.S.C. ch. 9), for the last 3 months of the current 
year for unanticipated costs, incurred for the current fiscal year, 
such sums as may be necessary. 
114 STAT. 2763A-22 
PUBLIC LAW 106-554—APPENDIX A 
LOW INCOME HOME ENERGY ASSISTANCE 
For making payments under title XXVI of the Omnibus Budget 
Reconciliation Act of 1981, in addition to amounts already appro-
priated for fiscal year 2001, $300,000,000. 
For making payments under title XXVI of the Omnibus Rec-
onciliation Act of 1981, $300,000,000: Provided, That these funds 
are hereby designated by the Congress to be emergency require-
ments pursuant to section 251(b)(2)(A) of the Balanced Budget 
and Emergency Deficit Control Act of 1985: Provided further. That 
these funds shall be made available only after submission to the 
Congress of a formal budget request by the President that includes 
designation of the entire amount of the request as an emergency 
requirement as defined in such Act. 
REFUGEE AND ENTRANT ASSISTANCE 
For making payments for refugee and entrant assistance activi-
ties authorized by title IV of the Immigration and Nationality 
Act and section 501 of the Refugee Education Assistance Act of 
1980 (Public Law 96-422), $423,109,000: Provided, That funds 
appropriated pursuant to section 414(a) of the Immigration and 
Nationality Act for fiscal year 2001 shall be available for the costs 
of assistance provided and other activities through September 30, 
2003: Provided further. That up to $5,000,000 is available to carry 
out the Trafficking Victims Protection Act of 2000. 
For carrying out section 5 of the Torture Victims Relief Act 
of 1998 (Public Law 105-320), $10,000,000. 
PAYMENTS 
TO 
STATES 
FOR 
THE 
CHILD 
CARE 
AND DEVELOPMENT 
BLOCK 
GRANT 
For carrying out sections 658A through 658R of the Omnibus 
Budget Reconciliation Act of 1981 (The Child Care and Development 
Block Grant Act of 1990), in addition to amounts already appro-
priated for fiscal year 2001, $817,328,000, such funds shall be 
used to supplement, not supplant State general revenue funds 
for child care assistance for low-income families: Provided, That 
of the funds appropriated for fiscal year 2001, $19,120,000 shall 
be available for child care resource and referral and school-aged 
child care activities, of which $1,000,000 shall be for the Child 
Care Aware toll free hotline: Provided further. That of the funds 
appropriated for fiscal year 2001, in addition to the amounts 
required to be reserved by the States under section 658G, 
$272,672,000 shall be reserved by the States for activities author-
ized under section 658G, of which $100,000,000 shall be for activi-
ties that improve the quality of infant and toddler child care: 
Provided further. That of the funds appropriated for fiscal year 
2001, $10,000,000 shall be for use by the Secretary for child care 
research, demonstration, and evaluation activities. 
SOCIAL 
SERVICES 
BLOCK 
GRANT 
For making grants to States pursuant to section 2002 of the 
Social Security Act, $1,725,000,000: Provided, That notwithstanding 
section 2003(c) of such Act, as amended, the amount specified 
for allocation under such section for fiscal year 2001 shall be 
$1,725,000,000: Provided further. That, notwithstanding subpara-
graph (B) of section 404(d)(2) of such Act, the applicable percent 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-23 
specified under such subparagraph for a State to carry out State 
programs pursuant to title XK of such Act shall be 10 percent. 
CHILDREN AND FAMILIES SERVICES PROGRAMS 
(INCLUDING RESCISSIONS) 
For carrying out, except as otherwise provided, the Runaway 
and Homeless Youth Act, the Developmental Disabilities Assistance 
and Bill of Rights Act, the Head Start Act, the Child Abuse Preven-
tion and Treatment Act, the Native American Programs Act of 
1974, title II of Public Law 95-266 (adoption opportunities), the 
Adoption and Safe Families Act of 1997 (Public Law 105-89), the 
Abandoned Infants Assistance Act of 1988, the Early Learning 
Opportunities Act, part B(l) of title IV and sections 413, 429A, 
1110, and 1115 of the Social Security Act, and sections 40155, 
40211, and 40241 of Public law 103-322; for making payments 
under the Community Services Block Grant Act, section 473A of 
the Social Security Act, and title IV of Public Law 105-285, and 
for necessary administrative expenses to carry out said Acts and 
titles I, IV, X, XI, XTV, XVI, and XX of the Social Security Act, 
the Act of July 5, 1960 (24 U.S.C. ch. 9), the Omnibus Budget 
Reconciliation Act of 1981, title IV of the Immigration and Nationsd-
ity Act, section 501 of the Refugee Education Assistance Act of 
1980, section 5 of the Torture Victims Relief Act of 1998 (Public 
Law 105-320), sections 40155, 40211, and 40241 of Public Law 
103-322 and section 126 and titles IV and V of Public Law 100-
485, $7,956,345,000, of which $43,000,000, to remain available until 
September 30, 2002, shall be for grants to States for adoption 
incentive payments, as authorized by section 473A of title IV of 
the Social Security Act (42 U.S.C. 670-679) and may be made 
for adoptions completed in fiscal years 1999 and 2000; of which 
$682,876,000 shall be for making payments under the Community 
Services Block Grant Act; and of which $6,200,000,000 shall be 
for making payments under the Head Start Act, of which 
$1,400,000,000 shall become available October 1, 2001 and remain 
available through September 30, 2002: Provided, That to the extent 
Community Services Block Grant funds are distributed as grant 
funds by a State to an eligible entity as provided under the Act, 
and have not been expended by such entity, they shall remain 
with such entity for carryover into the next fiscal year for expendi-
ture by such entity consistent with program purposes: Provided 
further, That the Secretary shall establish procedures regarding 
the disposition of intangible property which permits grant funds, 
or intangible assets acquired with funds authorized under section 
680 of the Community Services Block Grant Act, as amended, 
to become the sole property of such grantees after a period of 
not more than 12 years after the end of the grant for purposes 
and uses consistent with the original grant. 
Funds appropriated for fiscal year 2001 under section 429A(e), 
part B of title IV of the Social Security Act shall be reduced 
by $6,000,000. 
Funds appropriated for fiscal year 2001 under section 413(h)(1) 
of the Social Security Act shall be reduced by $15,000,000. 
114 STAT. 2763A-24 
PUBLIC LAW 106-554—APPENDIX A 
PROMOTING SAFE AND STABLE FAMILIES 
For carrying out section 430 of the Social Security Act, 
$305,000,000. 
PAYMENTS TO STATES FOR FOSTER CARE AND ADOPTION ASSISTANCE 
For making payments to States or other non-Federal entities 
under title IV-E of the Social Security Act, $4,863,100,000. 
For making payments to States or other non-Federal entities 
under title IV-E of the Social Security Act, for the first quarter 
of fiscal year 2002, $1,735,900,000. 
ADMINISTRATION ON AGING 
AGING SERVICES PROGRAMS 
For carrying out, to the extent not otherwise provided, the 
Older Americans Act of 1965, as amended, and section 398 of 
the Public Health Service Act, $1,103,135,000, of which $5,000,000 
shall be available for activities regarding medication management, 
screening, and education to prevent incorrect medication and 
adverse drug reactions: Provided, That notwithstanding section 
308(b)(1) of the Older Americans Act of 1965, as amended, the 
amounts available to each State for administration of the State 
plan under title III of such Act shall be reduced not more than 
5 percent below the amount that was available to such State for 
such purpose for fiscal year 1995. 
OFFICE OF THE SECRETARY 
GENERAL DEPARTMENTAL MANAGEMENT 
For necessary expenses, not otherwise provided, for general 
departmental management, including hire of six sedans, and for 
carrying out titles III, XVII, and XX of the Public Health Service 
Act, and the United States-Mexico Border Health Commission Act, 
$285,224,000, together with $5,851,000, to be transferred and 
expended as authorized by section 201(g)(1) of the Social Security 
Act from the Hospital Insurance Trust Fund and the Supplemental 
Medical Insurance Trust Fund: Provided further. That of the funds 
made available under this heading for carrying out title XX of 
the Public Health Service Act, $10,377,000 shall be for activities 
specified under section 2003(b)(2), of which $10,157,000 shall be 
for prevention service demonstration grants under section 510(b)(2) 
of title V of the Social Security Act, as amended, without application 
of the limitation of section 2010(c) of said title XX: Provided further. 
That no funds shall be obligated for minority AIDS prevention 
and treatment activities until the Department of Health and Human 
Services submits an operating plan to the House and Senate 
Committees on Appropriations. 
OFFICE OF INSPECTOR GENERAL 
For expenses necessary for the Office of Inspector General 
in carrying out the provisions of the Inspector General Act of 
1978, as amended, $33,849,000: Provided, That of such amount, 
necessary sums are available for providing protective services to 
the Secretary and investigating non-payment of child support cases 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-25 
for which non-payment is a Federal offense under 18 U.S.C. 228, 
each of which activities is hereby authorized in this and subsequent 
fiscal years. 
OFFICE FOR CIVIL RIGHTS 
For expenses necessary for the Office for Civil Rights, 
$24,742,000, together with not to exceed $3,314,000, to be trans-
ferred and expended as authorized by section 201(g)(1) of the Social 
Security Act from the Hospital Insurance Trust Fund and the 
Supplemental Medical Insurance Trust Fund. 
POLICY RESEARCH 
For carrying out, to the extent not otherwise provided, research 
studies under section 1110 of the Social Security Act, $16,738,000. 
RETIREMENT PAY AND MEDICAL BENEFITS FOR COMMISSIONED 
OFFICERS 
For retirement pay and medical benefits of Public Health Serv-
ice Commissioned Officers as authorized by law, for payments under 
the Retired Serviceman's Family Protection Plan and Survivor 
Benefit Plan, for medical care of dependents and retired personnel 
under the Dependents' Medical Care Act (10 U.S.C. ch. 55), and 
for payments pursuant to section 229(b) of the Social Security 
Act (42 U.S.C. 429(b)), such amounts as may be required during 
the current fiscal year. 
PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND 
For expenses necessary to support activities related to counter-
ing potential biological, disease and chemical threats to civilian 
populations, $241,231,000: Provided, That this amount is distrib-
uted as follows: Centers for Disease Control and Prevention, 
$181,131,000, of which $32,000,000 shall be for the Health Alert 
Network and $18,040,000 shall be for the continued study of the 
anthrax 
vaccine; 
and 
Office 
of 
Emergency 
Preparedness, 
$60,100,000. 
GENERAL PROVISIONS 
S E C 201. Funds appropriated in this title shall be available 
for not to exceed $37,000 for official reception and representation 
expenses when specifically approved by the Secretary. 
SEC. 202. The Secretary shall make available through assign-
ment not more than 60 employees of the Public Health Service 
to assist in child survival activities and to work in AIDS programs 
through and with funds provided by the Agency for International 
Development, the United Nations International Children's Emer-
gency Fund or the World Health Organization. 
SEC. 203. None of the funds appropriated under this Act may 
be used to implement section 399L(b) of the Public Health Service 
Act or section 1503 of the National Institutes of Health Revitaliza-
tion Act of 1993, Public Law 103-43. 
SEC. 204. None of the funds appropriated in this Act for the 
National Institutes of Health and the Substance Abuse and Mental 
Health Services Administration shall be used to pay the salary 
79-194O-00-3:QL3Part5 
114 STAT. 2763A-26 
PUBLIC LAW 106-554—APPENDIX A 
of an individual, through a grant or other extramural mechanism, 
at a rate in excess of Executive Level I. 
SEC. 205. None of the funds appropriated in this Act may 
be expended pursuant to section 241 of the Public Health Service 
Act, except for funds specifically provided for in this Act, or for 
other taps and assessments made by any office located in the 
Department of Health and Human Services, prior to the Secretary's 
preparation and submission of a report to the Committee on Appro-
priations of the Senate and of the House detailing the planned 
uses of such funds. 
(TRANSFER OF FUNDS) 
SEC. 206. Not to exceed 1 percent of any discretionary funds 
(pursuant to the Balanced Budget and Emergency Deficit Control 
Act of 1985, as amended) which are appropriated for the current 
fiscal year for the Department of Health and Human Services 
in this Act may be transferred between appropriations, but no 
such appropriation shall be increased by more than 3 percent by 
any such transfer: Provided, That the Appropriations Committees 
of both Houses of Congress are notified at least 15 days in advance 
of any transfer. 
SEC. 207. The Director of the National Institutes of Health, 
jointly with the Director of the Office of AIDS Research, may 
transfer up to 3 percent among institutes, centers, and divisions 
from the total amounts identified by these two Directors as funding 
for research pertaining to the human immunodeficiency virus: Pro-
vided, That the Congress is promptly notified of the transfer. 
SEC. 208. Of the amounts made available in this Act for the 
National Institutes of Health, the amount for research related to 
the human immunodeficiency virus, as jointly determined by the 
Director of the National Institutes of Health and the Director of 
the Office of AIDS Research, shall be made available to the "Office 
of AIDS Research" account. The Director of the Office of AIDS 
Research shall transfer from such account amounts necessary to 
carry out section 2353(d)(3) of the Public Health Service Act. 
SEC. 209. None of the funds appropriated in this Act may 
be made available to any entity under title X of the Public Health 
Service Act unless the applicant for the award certifies to the 
Secretary that it encourages family participation in the decision 
of minors to seek family planning services and that it provides 
counseling to minors on how to resist attempts to coerce minors 
into engaging in sexual activities. 
SEC. 210. None of the funds appropriated by this Act (including 
funds appropriated to any trust fund) may be used to carry out 
the Medicare+Choice program if the Secretary denies participation 
in such program to an otherwise eligible entity (including a Provider 
Sponsored Organization) because the entity informs the Secretary 
that it will not provide, pay for, provide coverage of, or provide 
referrals for abortions: Provided, That the Secretary shall make 
appropriate prospective adjustments to the capitation payment to 
such an entity (based on an actuarially sound estimate of the 
expected costs of providing the service to such entity's enrollees): 
Provided further, That nothing in this section shall be construed 
to change the Medicare program's coverage for such services and 
a Medicare+Choice organization described in this section shall be 
responsible for informing enrollees where to obtain information 
about all Medicare covered services. 
PUBLIC LAW 106-554r-APPENDIX A 
114 STAT. 2763A-27 
SEC. 211. Notwithstanding any other provision of law, no pro-
vider of services under title X of the Public Health Service Act 
shall be exempt from any State law requiring notification or the 
reporting of child abuse, child molestation, sexual abuse, rape, 
or incest. 
SEC. 212. The Foreign Operations, Export Financing, and 
Related Programs Appropriations Act, 1990 (Public Law 101-167) 
is amended— 
(1) in section 599D (8 U.S.C. 1157 note)— 
(A) in subsection (b)(3), by striking "1997, 1998, 1999, 
and 2000" and inserting "1997, 1998, 1999, 2000, and 
2001"; and 
(B) in subsection (e), by striking "October 1, 2000" 
each place it appears and inserting "October 1, 2001"; 
and 
(2) in section 599E (8 U.S.C. 1255 note) in subsection 
(b)(2), by striking "September 30, 2000" and inserting "Septem-
ber 30, 2001". 
SEC. 213. None of the funds provided in this Act or in any 
other Act making appropriations for fiscal year 2001 may be used 
to administer or implement in Arizona or in the Kansas City, 
Missouri or in the Kansas City, Kansas area the Medicare Competi-
tive Pricing Demonstration Project (operated by the Secretary of 
Health and Human Services). 
SEC. 214. (a) Except as provided by subsection (e) none of 
the funds appropriated by this Act may be used to withhold sub-
stance abuse funding from a State pursuant to section 1926 of 
the Public Health Service Act (42 U.S.C. 300x-26) if such State 
certifies to the Secretary of Health and Human Services by March 
1, 2001 that the State will commit additional State funds, in accord-
ance with subsection (b), to ensure compliance with State laws 
prohibiting the sale of tobacco products to individuals under 18 
years of age. 
(b) The amount of funds to be committed by a State under 
subsection (a) shall be equal to 1 percent of such State's substance 
abuse block grant allocation for each percentage point by which 
the State misses the retailer compliance rate goal established by 
the Secretary of Health and Human Services under section 1926 
of such Act. 
(c) The State is to maintain State expenditures in fiscal year 
2001 for tobacco prevention programs and for compliance activities 
at a level that is not less than the level of such expenditures 
maintained by the State for fiscal year 2000, £ind adding to that 
level the additional funds for tobacco compliance activities required 
under subsection (a). The State is to submit a report to the Secretary 
on all fiscal year 2000 State expenditures and all fiscal year 2001 
obligations for tobacco prevention and compliance activities by pro-
gram activity by July 31, 2001. 
(d) The Secretary shall exercise discretion in enforcing the 
timing of the State obligation of the additional funds required 
by the certification described in subsection (a) as late as July 
31, 200 L 
(e) None of the funds appropriated by this Act may be used 
to withhold substance abuse funding pursuant to section 1926 from 
a territory that receives less than $1,000,000. 
114 STAT. 2763A-28 
PUBLIC LAW 106-554^APPENDIX A 
SEC. 215. Section 448 of the Public Health Service Act (42 
U.S.C. 285g) is amended by inserting "gynecologic health," after 
"with respect to". 
SEC. 216. None of the funds appropriated under this Act shall 
be expended by the National Institutes of Health on a contract 
for the care of the 288 chimpanzees acquired by the National 
Institutes of Health from the Coulston Foundation, unless the con-
tractor is accredited by the Association for the Assessment and 
Accreditation of Laboratory Animal Care International or has a 
Public Health Services assurance, and has not been charged mul-
tiple times with egregious violations of the Animal Welfare Act: 
Provided, That the requirements of section 481(A)(e)(l) shall not 
apply to funds awarded to nonhuman primate research facilities 
of special interest to NIH, 
SEC. 217. No grants may be awarded under the first paragraph 
under the heading "Department of Health and Human Services, 
Health Resources and Services Administration, Health Resources 
and Services" in chapter 4 of title II of the Emergency Supplemental 
Act, 2000 (Public Law 106-246, division B) until March 1, 2001. 
SEC. 218. (a) The second sentence of section 5948(d) of title 
5, United States Code, is amended to read as follows: "No agreement 
shall be entered into under this section later than September 30, 
2005, nor shall any agreement cover a period of service extending 
beyond September 30, 2007.". 
(b) Section 3 of the Federal Physicians Comparability Allowance 
Act of 1978 (5 U.S.C. 5948 note) is amended by striking "September 
30, 2002" and inserting "September 30, 2007". 
SEC. 219. (a) Congress makes the following findings: 
(1) Organ procurement organizations play an important 
role in the effort to increase organ donation in the United 
States. 
(2) The current process for the certification and recertifi-
cation of organ procurement organizations conducted by the 
Department of Health and Human Services has created a level 
of uncertainty that is interfering with the effectiveness of organ 
• procurement organizations in raising the level of organ dona-
tion. 
(3) The General Accounting Office, the Institute of Medi-
cine, and the Harvard School of Public Health have identified 
substantial limitations in the organ procurement organization 
certification and recertification process and have recommended 
changes in that process. 
(4) The limitations in the recertification process include: 
(A) An exclusive reliance on population-based measures 
of performance that do not account for the potential in 
the population for organ donation and do not permit consid-
eration of other outcome and process standards that would 
more accurately reflect the relative capability and perform-
ance of each organ procurement organization. 
(B) A lack of due process to appeal to the Secretary 
of Health and Human Services for recertification on either 
substantive or procedural grounds. 
(5) The Secretary of Health and Human Services has the 
authority under section 1138(b)(l)(A)(i) of the Social Security 
Act (42 U.S.C. 1320b-8(b)(l)(A)(i)) to extend the period for 
recertification of an organ procurement organization from 2 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-29 
to 4 years on the basis of its past practices in order to avoid 
the inappropriate disruption of the nation's organ system. 
(6) The Secretary of Health and Human Services can use 
the extended period described in paragraph (5) for recertifi-
cation of all organ procurement organizations to— 
(A) develop improved performance measures that 
would reflect organ donor potential and interim outcomes, 
and to test these measures to ensure that they accurately 
measure performance differences among the organ procure-
ment organizations; and 
(B) improve the overall certification process by incor-
porating process as well as outcome performance measures, 
and developing equitable processes for appeals. 
(b) Section 371(b)(1) of the Public Health Service Act (42 U.S.C. 
273(b)(1)) is amended— 
(1) by redesignating subparagraphs (D) through (G) as 
subparagraphs (E) through (H), respectively; 
(2) by realigning the margin of subparagraph (F) (as so 
redesignated) so as to align with subparagraph (E) (as so 
redesignated); and 
(3) by inserting after subparagraph (C) the following: 
"(D) notwithstanding any other provision of law, has met 
the other requirements of this section and has been certified 
or recertified by the Secretary within the previous 4-year period 
as meeting the performance standards to be a qualified organ 
procurement organization through a process that either— 
"(i) granted certification or recertification within such 
4-year period with such certification or recertification in 
effect as of January 1, 2000, and remaining in effect 
through the earlier of— 
"(I) January 1, 2002; or 
"(II) the completion of recertification under the 
requirements of clause (ii); or 
"(ii) is defined through regulations that are promul-
gated by the Secretary by not later than January 1, 2002, 
that— 
"(I) require recertifications of qualified 
organ 
procurement organizations not more frequently than 
once every 4 years; 
"(II) rely on outcome and process performance 
measures that are based on empirical evidence, 
obtained through reasonable efforts, of organ donor 
potential and other related factors in each service area 
of qualified organ procurement organizations; 
"(III) use multiple outcome measures as part of 
the certification process; and 
"(IV) provide for a qualified organ procurement 
organization to appeal a decertification to the Secretary 
on substantive and procedural grounds;". 
SEC. 220. (a) In order for the Centers for Disease Control 
and Prevention to carry out international HIV/AIDS and other 
infectious disease, chronic and environmental disease, and other 
health activities abroad during fiscal year 2001, the Secretary of 
Health and Human Services is authorized to— 
(1) utilize the authorities contained in subsection 2(c) of 
the State Department Basic Authorities Act of 1956, as amend-
ed, subject to the limitations set forth in subsection (b), and 
114 STAT. 2763A-30 
PUBLIC LAW 106-554—APPENDIX A 
(2) enter into reimbursable agreements with the Depart-
ment of State using any funds appropriated to the Department 
of Health and Human Services, for the purposes for which 
the funds were appropriated in accordance with authority 
granted to the Secretaiy of Health and Human Services or 
under authority governing the activities of the Department 
of State. 
(b) In exercising the authority set forth in subsection (a)(1), 
the Secretary of Health and Human Services— 
(1) shall not award contracts for performance of an inher-
ently governmental function; and 
(2) shall follow otherwise applicable Federal procurement 
laws and regulations to the maximum extent practicable. 
SEC. 221. Notwithstanding any other provision of law, the 
Director, National Institutes of Health, may enter into and admin-
ister a long-term lease for facilities for the purpose of providing 
laboratory, office and other space for biomedical and behavioral 
research at the Bayview Campus in Baltimore, Maryland: Provided, 
That the House and Senate Appropriations Committees will be 
notified of the terms and conditions of the lease upon its execution. 
SEC. 222. Of the funds appropriated in this Act for the National 
Institutes of Health, $5,800,000 shall be transferred to the Office 
of the Secretary, General Departmental Management to support 
the newly established Office for Human Research Protections. 
SEC. 223. Section 487E(a)(l) of the Public Health Service Act 
is amended by striking "as employees of the National Institutes 
of Health". 
SEC. 224. Notwithstanding any other provision of law relating 
to vacancies in offices for which appointments must be made by 
the President, including any time limitation on serving in an acting 
capacity, the Acting Director of the National Institutes of Health 
as of January 12, 2000, may serve in that position until a new 
Director of the National Institutes of Health is confirmed by the 
Senate. 
SEC. 225. The National Neuroscience Research Center to be 
constructed on the National Institutes of Health Bethesda campus 
is hereby named the John Edward Porter Neuroscience Research 
Center. 
This title may be cited as the "Department of Health and 
Human Services Appropriations Act, 2001". 
TITLE III—DEPARTMENT OF EDUCATION 
EDUCATION REFORM 
For carrying out activities authorized by title IV of the Goals 
2000: Educate America Act as in effect prior to September 30, 
2000, and sections 3122, 3132, 3136, and 3141, parts B, C, and 
D of title III, and section 10105 and part I of title X of the 
Elementary and Secondary Education Act of 1965, $1,880,710,000, 
of which $38,000,000 shall be for the Goals 2000: Educate America 
Act, and of which $191,950,000 shall be for section 3122: Provided, 
That up to one-half of 1 percent of the amount available under 
section 3132 shall be set aside for the outlying areas, to be distrib-
uted on the basis of their relative need as determined by the 
Secretary in accordance with the purposes of the program: Provided 
further. That if any State educational agency does not apply for 
a grant under section 3132, that State's allotment under section 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-31 
3131 shall be reserved by the Secretary for grants to local edu-
cational agencies in that State that apply directly to the Secretary 
according to the terms and conditions published by the Secretary 
in the Federal Register: Provided further, That with respect to 
all funds appropriated to carry out section 10901 et seq. in this 
Act, the Secretary shall strongly encourage applications for grants 
that are to be submitted jointly by a local educational agency 
(or a consortium of local educational agencies) and a community-
based organization that has experience in providing before- and 
after-school services and all applications submitted to the Secretary 
shall contain evidence that the project contains elements that are 
designed to assist students in meeting or exceeding State and 
local standards in core academic subjects, as appropriate to the 
needs of participating children: Provided further, That $125,000,000, 
which shall become available on July 1, 2001, and remain available 
through September 30, 2002, shall be available to support activities 
under section 10105 of part A of title X of the Elementary and 
Secondary Education Act of 1965, of which up to 6 percent shall 
become available October 1, 2000, and be available for evaluation, 
technical assistance, school networking, peer review of applications, 
and program outreach activities: Provided further. That funds made 
available to local educational agencies under this section shall 
be used only for activities related to establishing smaller learning 
communities in high schools: Provided further. That $46,328,000 
of the funds available to carry out section 3136 of the Elementary 
and Secondary Education Act of 1965, $8,768,000 of the funds 
available to carry out part B of title III of that Act and $20,614,000 
of the funds available to carry out part I of title X of that Act 
shall be available for the projects and in the amounts specified 
in the statement of the managers on the conference report accom-
panying this Act. 
EDUCATION FOR THE DISADVANTAGED 
For carrying out title I of the Elementary and Secondary Edu-
cation Act of 1965, and section 418A of the Higher Education 
Act of 1965, $9,532,621,000, of which $2,731,921,000 shall become 
available on July 1, 2001, and shall remain available through 
September 30, 2002, and of which $6,758,300,000 shall become 
available on October 1, 2001 and shall remain available through 
September 30, 2002, for academic year 2001-2002: Provided, That 
$7,332,721,000 shall be available for basic grants under section 
1124: Provided further. That $225,000,000 of these funds shall 
be allocated among the States in the same proportion as funds 
are allocated among the States under section 1122, to carry out 
section 1116(c): Provided further. That 100 percent of these funds 
shall be allocated by States to local educational agencies for the 
purposes of carrying out section 1116(c): Provided further, 
That 
all local educational agencies receiving an allocation under the 
preceding proviso, and all other local educational agencies that 
are within a State that receives funds under part A of title I 
of the Elementary and Secondary Education Act of 1965 (other 
than a local educational agency within a State receiving a minimum 
grant under section 1124(d) or 1124A(a)(l)(B) of such Act), shall 
provide all students enrolled in a school identified under section 
1116(c) with the option to transfer to another public school within 
the local educational agency, including a public charter school, 
that has not been identified for school improvement under section 
114 STAT. 2763A-32 
PUBLIC LAW 106-554—APPENDIX A 
1116(c), unless such option to transfer is prohibited by State law, 
or local law, which includes school board-approved local educational 
agency policy: Provided further. That if the local educational agency 
demonstrates to the satisfaction of the State educational agency 
that the local educational agency lacks the capacity to provide 
all students with the option to transfer to another public school, 
and after giving notice to the parents of children affected that 
it is not possible, consistent with State and local law, to accommo-
date the transfer request of every student, the local educational 
agency shall permit as many students as possible (who shall be 
selected by the local educational agency on an equitable basis) 
to transfer to a public school that has not been identified for 
school improvement under section 1116(c): Provided further. That 
up to $3,500,000 of these funds shall be available to the Secretary 
on October 1, 2000, to obtain updated local educational agency 
level census poverty data from the Bureau of the Census: Provided 
further. That $1,364,000,000 shall be available for concentration 
grants under section 1124A: Provided further. That grant awards 
under sections 1124 and 1124A of title I of the Elementary and 
Secondary Education Act of 1965 shall be not less than the greater 
of 100 percent of the amount each State and local educational 
agency received under this authority for fiscal year 2000 or the 
amount such State and local educational agency would receive 
if $6,883,503,000 for Basic Grants and $1,222,397,000 for Con-
centration Grants were allocated in accordance with section 
1122(c)(3) of title I: Provided further, That notwithstanding any 
other provision of law, grant awards under section 1124A of title 
I of the Elementary and Secondary Education Act of 1965 shall 
be made to those local educational agencies that received a Con-
centration Grant under the Department of Education Appropria-
tions Act, 2000, but are not eligible to receive such a grant for 
fiscal year 2001: Provided further. That the Secretary shall not 
take into account the hold harmless provisions in this section in 
determining State allocations under any other program adminis-
tered by the Secretary in any fiscal year: Provided further. That 
$8,900,000 shall be available for evaluations under section 1501 
and not more than $8,500,000 shall be reserved for section 1308, 
of which not more than $3,000,000 shall be reserved for section 
1308(d): Provided further. That $210,000,000 shall be available 
under section 1002(g)(2) to demonstrate effective approaches to 
comprehensive school reform to be allocated and expended in accord-
ance with the instructions relating to this activity in the statement 
of the managers on the conference report accompanying Public 
Law 105-78 and in the statement of the managers on the conference 
report accompanying Public Law 105-277: Provided further, That 
in carrying out this initiative, the Secretary and the States shall 
support only approaches that show the most promise of enabling 
children served by title I to meet challenging State content stand-
ards and challenging State student performance standards based 
on reliable research and effective practices, and include an emphasis 
on basic academics and parental involvement. 
IMPACT AID 
For carrying out programs of financial assistance to federally 
affected schools authorized by title VIII of the Elementary and 
Secondary 
Education 
Act 
of 
1965, $993,302,000, 
of which 
$882,000,000 shall be for basic support payments under section 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-33 
8003(b), $50,000,000 shall be for payments for children with disabil-
ities under section 8003(d), $12,802,000 shall be for construction 
under section 8007, $40,500,000 shall be for Federal property pay-
ments under section 8002, and $8,000,000, to remain available 
until expended, shall be for facilities maintenance under section 
8008: Provided, That $6,802,000 of the funds for section 8007 shall 
be available for the local educational agencies and in the amounts 
specified in the statement of the managers on the conference report 
accompanying this Act: Provided further, That from the amount 
appropriated for section 8002, the Secretary shall treat as timely 
filed, and shall process for payment, an application for a fiscal 
year 1999 pa5mient from Academy School District 20, Colorado, 
under that section if the Secretary has received that application 
not later than 30 days after the enactment of this Act: Provided 
further. That the Secretary of Education shall consider the local 
educational agency serving the Kadoka School District, 35-1, in 
South Dsikota, eligible for payments under section 8002 for fiscal 
year 2001 and each succeeding fiscal year, with respect to land 
in Washabaugh and Jackson Counties, South Dakota, that is owned 
by the Department of Defense and used as a bombing range: Pro-
vided further. That from the amount appropriated for section 8002, 
the Secretary shall first increase the payment of any local edu-
cational agency that was denied funding or had its payment reduced 
under that section for fiscal year 1998 due to section 8002(b)(1)(C) 
to the amount that would have been made without the limitation 
of that section: Provided further. That from the amount appro-
priated for section 8002, $500,000 shall be for subsection 8002(j). 
SCHOOL 
IMPROVEMENT 
PROGRAMS 
For carrying out school improvement activities authorized by 
titles II, IV, V-A and B, VI, IX, X, and XIII of the Elementary 
and Secondary Education Act of 1965 ("ESEA"); the McKinney-
Vento Homeless Assistance Act; and the Civil Rights Act of 1964 
and part B of title VIII of the Higher Education Amendments 
of 1998; $4,872,084,000, of which $2,403,750,000 shall become avail-
able on July 1, 2001, and remain available through September 
30, 2002, and of which $1,765,000,000 shall become available on 
October 1, 2001 and shall remain available through September 
30, 2002 for academic year 2001-2002: Provided, That $485,000,000 
shall be available for Eisenhower professional development State 
grants under part B of title II of the Elementary and Secondary 
Education Act of 1965: Provided further. That each local educational 
agency shall use funds in excess of the allocation it received under 
such part for the preceding fiscal year to improve teacher quality 
by reducing the percentage of teachers who do not have State 
certification or are certified through emergency or provisional 
means; are teaching out of field in some or all of the subject 
areas and grade levels in which they teach; or who lack sufficient 
content knowledge to teach effectively in the areas they teach 
to obtain that Imowledge: Provided further. That the local edu-
cational agency may also use such excess funds for: activities 
authorized under section 2210 of the Elementary £ind Secondary 
Education Act of 1965; mentoring programs for new teachers; 
providing opportunities for teachers to attend multi-week institutes, 
such as those provided in the summer months, that provide inten-
sive professional development in partnership with local educational 
agencies; and carrying out initiatives to promote the retention of 
114 STAT. 2763A-34 
PUBLIC LAW 106-554—APPENDIX A 
highly quahfled teachers who have a record of success in helping 
low-achieving students improve their academic success: Provided 
further, That each State educational agency may use such excess 
funds to carry out activities under section 2207 of the Elementary 
and Secondary Education Act of 1965: Provided further, That each 
State agency for higher education may use such excess funds to 
carry out activities under section 2211 of the Elementary and 
Secondary Education Act of 1965: Provided further. That both State 
educational agencies and State agencies for higher education may 
also use such excess funds for multi-week institutes, such as those 
provided in the summer months, that provide intensive professional 
development in partnership with local educational agencies; and 
grants to partnerships of such entities as local educational agencies, 
institutions of higher education, and private business, to recruit, 
and prepare, and provide professional development to, and help 
retain, school principals and superintendents, especially for such 
individuals who serve, or are preparing to serve, in high-poverty, 
low-performing schools and local educational agencies: Provided 
furtfier. That such activities may be undertaken in consortium 
with other States: Provided further. That of the funds appropriated 
for part B of title II of the Elementary and Secondary Education 
Act of 1965, $45,000,000 shall be available to States and allocated 
in accordance with section 2202(b) of that Act (except that the 
requirements of section 2203 shall not apply): Provided 
further. 
That notwithstanding any other provision of law, each State shall 
use the amount made available under the preceding proviso to 
support efforts to meet the requirements for State eligibility for 
the Ed-Flex Partnership Act of 1999 or the requirements under 
section 1111 of title I of the Elementary and Secondary Education 
Act of 1965: Provided further. That $44,000,000 shall be available 
for national activities under section 2102 of the Elementary and 
Secondary Education Act of 1965: Provided further. That of the 
amount available in the preceding proviso, $3,000,000 shall be 
made available to the Secretary for the Troops-to-Teachers Program 
for transfer to the Defense Activity for Non-Traditional Education 
Support of the Department of Defense: Provided further. That the 
funds transferred under the preceding proviso shall be used by 
the Secretary of Defense to administer the Troops-to-Teachers Pro-
gram, including the selection of participants in the Program under 
the Troops-to-Teachers Program Act of 1999 (title XVII of Public 
Law 106-65; 20 U.S.C. 9301 et seq.): Provided further. That for 
purposes of sections 1702(b) and (c) of the Troops-to-Teachers Pro-
gram Act of 1999, the Secretary of Education shall be the admin-
istering Secretary and may, at the Secretary's discretion, carry 
out the activities under section 1702(c) of that Act and retain 
a portion of the funds made available for the Troops-to-Teachers 
Program to carry out section 1702(b) and (c) of that Act: Provided 
further. That of the amount made available under this heading 
for national activities under section 2102 of the Elementary and 
Secondary Education Act of 1965, the Secretary is authorized to 
use a portion of such funds to carry out activities to improve 
the knowledge and skills of early childhood educators and caregivers 
who work in urban or rural communities with high concentrations 
of young children living in poverty: Provided further. That of the 
amount appropriated, $3,208,000,000 shall be for title VI of the 
Elementary and Secondary Education Act of 1965 and to carry 
out activities under part B of the Individuals with Disabilities 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-35 
Education Act (20 U.S.C. 1411 et seq.): Provided further, That 
of the amount made available for title VI, $1,623,000,000 shall 
be available, notwithstanding any other provision of law, in accord-
ance with section 306 of this Act in order to reduce class size, 
particularly in the early grades, using highly qualified teachers 
to improve educational achievement for regular and special needs 
children: Provided further, That of the amount made available 
for title VI, $1,200,000,000 shall be available, notwithstanding any 
other provision of law, for grants for school repair and renovation, 
activities under part B of the Individuals with Disabilities Edu-
cation Act (20 U.S.C. 1411 et seq.), and technology activities, in 
accordance with section 321 of this Act: Provided further, That 
funds made available imder this heading to carry out section 6301(b) 
of the Elementary and Secondary Education Act of 1965 shall 
be available for education reform projects that provide same gender 
schools and classrooms, consistent with applicable law: Provided 
further, That of the amount made available to carry out activities 
authorized under part C of title IX of the Elementary and Secondary 
Education Act of 1965, $1,000,000 shall be for the Alaska Human-
ities Forum for operation of the Rose student exchange program 
and $1,000,000 shall be for the Alaska Native Heritage Center 
to support its program of cultural education activities: Provided 
further. That of the amount made available for subpart 2 of part 
A of title rV of the Elementary and Secondary Education Act of 
1965, $10,000,000, to remain available until expended, shall be 
for Project School Emergency Response to Violence to provide edu-
cation-related services to local educational agencies in which the 
learning environment has been disrupted due to a violent or trau-
matic crisis. 
READING EXCELLENCE 
For necessary expenses to carry out the Reading Excellence 
Act, $91,000,000, which shall become available on July 1, 2001 
and shall remain available through September 30, 2002 and 
$195,000,000 which shall become available on October 1, 2001 and 
remain available through September 30, 2002. 
INDL^Sr EDUCATION 
For expenses necessary to carry out, to the extent not otherwise 
provided, title IX, part A of the Elementary and Secondary Edu-
cation Act of 1965, as amended, $115,500,000. 
BILINGUAL AND IMMIGRANT EDUCATION 
For carrying out, to the extent not otherwise provided, bilingual, 
foreign language and immigrant education activities authorized 
by parts A and C and section 7203 of title VII of the Elementary 
and Secondary Education Act of 1965, $460,000,000: Provided, That 
State educational agencies may use all, or any part of, their part 
C allocation for competitive grants to local educational agencies. 
SPECIAL EDUCATION 
For carrying out the Individuals with Disabilities Education 
Act, $7,439,948,000, of which $2,090,452,000 shall become available 
for obligation on July 1, 2001, and shall remain available through 
September 30, 2002, and of which $5,072,000,000 shall become 
114 STAT. 2763A-36 
PUBLIC LAW 106-554—APPENDIX A 
available on October 1, 2001 and shall remain available through 
September 30, 2002, for academic year 2001-2002: Provided, That 
$9,500,000 shall be for Recording for the Blind and Dyslexic to 
support the development, production, and circulation of recorded 
educational materials: Provided further, That $1,500,000 shall be 
for the recipient of funds provided by Public Law 105-78 under 
section 687(b)(2)(G) of the Act to provide information on diagnosis, 
intervention, and teaching strategies for children with disabilities: 
Provided further. That $7,353,000 of the funds for section 672 
of the Act shall be available for the projects and in the amounts 
specified in the statement of the managers on the conference report 
accompanying this Act. 
REHABILITATION SERVICES AND DISABILITY RESEARCH 
For carrying out, to the extent not otherwise provided, the 
Rehabilitation Act of 1973, the Assistive Technology Act of 1998, 
and the Helen Keller National Center Act, $2,805,339,000: Provided, 
That the funds provided for title I of the Assistive Technology 
Act of 1998 ("the AT Act") shall be allocated notwithstanding section 
105(b)(1) of the AT Act: Provided further. That each State shall 
be provided $50,000 for activities under section 102 of the AT 
Act: Provided further. That $15,000,000 shall be used to support 
grants for up to 3 years to States under title III of the AT Act, 
of which the Federal share shall not exceed 75 percent in the 
first year, 50 percent in the second year, and 25 percent in the 
third year, and that the requirements in section 301(c)(2) and 
section 302 of that Act shall not apply to such grants: Provided 
further. 
That $4,600,000 of the funds for section 303 of the 
Rehabilitation Act of 1973 shall be available for the projects and 
in the amounts specified in the statement of the managers on 
the conference report accompanying this Act: Provided further. That 
$400,000 of the funds for title II of the Rehabilitation Act of 1973 
shall be for the Cerebral Palsy Research Foundation in Wichita, 
Kansas for the establishment of a Rehabilitation Research and 
Training Center to study and recommend incentives for employers 
to hire persons with significant disabilities. 
SPECIAL INSTITUTIONS FOR PERSONS WITH DISABILITIES 
AMERICAN P R I N T I N G HOUSE FOR THE BLIND 
For carrying out the Act of March 3, 1879, as amended (20 
U.S.C. 101 et seq.), $12,000,000. 
NATIONAL TECHNICAL INSTITUTE FOR THE DEAF 
For the National Technical Institute for the Deaf under titles 
I and II of the Education of the Deaf Act of 1986 (20 U.S.C. 
4301 et seq.), $53,376,000, of which $5,376,000 shall be for construc-
tion and shall remain available until expended: Provided, That 
from the total amount available, the Institute may at its discretion 
use funds for the endowment program as authorized under section 
207. 
GALLAUDET UNIVERSITY 
For the Kendall Demonstration Elementary School, the Model 
Secondary School for the Deaf, and the partial support of Gallaudet 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-37 
University under titles I and II of the Education of the Deaf 
Act of 1986 (20 U.S.C. 4301 et seq.), $89,400,000: Provided, That 
from the total amount available, the University may at its discretion 
use funds for the endowment program as authorized under section 
207. 
VOCATIONAL 
AND 
ADULT 
EDUCATION 
For carrying out, to the extent not otherwise provided, the 
Carl D. Perkins Vocational and Technical Education Act, the Adult 
Education and Family Literacy Act, and title VIII-D of the Higher 
Education Act of 1965, as amended, and Public Law 102-73, 
$1,825,600,000, of which $1,000,000 shall remain available until 
expended, and of which $1,028,000,000 shall become available on 
July 1, 2001 and shall remain available through September 30, 
2002 and of which $791,000,000 shall become available on October 
1, 2001 and shall remain available through September 30, 2002: 
Provided, That of the amounts made available for the Carl D. 
Perkins Vocational and Technical Education Act, $5,600,000 shall 
be for tribally controlled postsecondary vocational and technical 
institutions under section 117: Provided further, That $9,000,000 
shall be for carrying out section 118 of such Act: Provided further. 
That of the amounts made available for the Carl D. Perkins Voca-
tional and Technical Education Act, $5,000,000 shall be for dem-
onstration activities authorized by section 207: Provided 
further. 
That of the amount provided for Adult Education State Grants, 
$70,000,000 shall be made available for integrated English literacy 
and civics education services to immigrants and other limited 
English proficient populations: Provided further. That of the amount 
reserved for integrated English literacy and civics education, not-
withstanding section 211 of the Adult Education and Family Lit-
eracy Act, 65 percent shall be allocated to States based on a State's 
absolute need as determined by calculating each State's share of 
a 10-year average of the Immigration and Naturalization Service 
data for immigrants admitted for legal permanent residence for 
the 10 most recent years, and 35 percent allocated to States that 
experienced growth as measured by the average of the 3 most 
recent years for which Immigration and Naturalization Service 
data for immigrants admitted for legal permanent residence are 
available, except that no State shall be allocated an amount less 
than $60,000: Provided further, That of the amounts made available 
for the Adult Education and Family Literacy Act, $14,000,000 shall 
be for national leadership activities under section 243 and 
$6,500,000 shall be for the National Institute for Literacy under 
section 242: Provided further. That $22,000,000 shall be for Youth 
Offender Grants, of which $5,000,000 shall be used in accordance 
with section 601 of Public Law 102-73 as that section was in 
effect prior to the enactment of Public Law 105-220. 
STUDENT FINANCIAL ASSISTANCE 
For carrying out subparts 1, 3, and 4 of part A, section 428K, 
part C and part E of title IV of the Higher Education Act of 
1965, as amended, $10,674,000,000, which shall remain available 
through September 30, 2002. 
The maximum Pell Grant for which a student shall be eligible 
during award year 2001-2002 shall be $3,750: Provided, That not-
withstanding section 401(g) of the Act, if the Secretary determines. 
114 STAT. 2763A-38 
PUBLIC LAW 106-554—APPENDIX A 
prior to publication of the payment schedule for such award year, 
that the amount included within this appropriation for Pell Grant 
awards in such award year, and any funds available from the 
fiscal year 2000 appropriation for Pell Grant awards, are insufficient 
to satisfy fully all such awards for which students are eligible, 
as calculated under section 401(b) of the Act, the amount paid 
for each such award shall be reduced by either a fixed or variable 
percentage, or by a fixed dollar amount, as determined in accordance 
with a schedule of reductions established by the Secretary for 
this purpose. 
FEDERAL 
FAMILY 
EDUCATION 
LOAN 
PROGRAM 
ACCOUNT 
For Federal administrative expenses to carry out guaranteed 
student loans authorized by title IV, part B, of the Higher Education 
Act of 1965, as amended, $48,000,000. 
HIGHER EDUCATION 
For carrying out, to the extent not otherwise provided, section 
121 and titles II, III, IV, V, VI, and VII of the Higher Education 
Act of 1965, as amended, section 1543 of the Higher Education 
Amendments of 1992 and title VIII of the Higher Education Amend-
ments of 1998, and the Mutual Educational and Cultural Exchange 
Act of 1961, $1,911,710,000, of which $10,000,000 for interest sub-
sidies authorized by section 121 of the Higher Education Act of 
1965, shall remain available until expended: Provided, 
That 
$10,000,000, to remain available through September 30, 2002, shall 
be available to fund fellowships for academic year 2002-2003 under 
part A, subpart 1 of title Vll of said Act, under the terms and 
conditions of part A, subpart 1: Provided further. That $3,000,000 
is for data collection and evaluation activities for programs under 
the Higher Education Act of 1965, including such activities needed 
to comply with the Government Performance and Results Act of 
1993: Provided further. That $15,000,000 shall be available for 
tribally controlled colleges and universities under section 316 of 
the Higher Education Act of 1965, of which $5,000,000 shall be 
used for construction and renovation: Provided further. 
That 
$250,000 shall be for the Web-Based Education Commission to 
continue activities authorized under part J of title VIII of the 
Higher Education Amendments of 1998: Provided further, 
That 
$115,487,000 of the funds for part B of title VII of the Higher 
Education Act of 1965 shall be available for the projects and in 
the amounts specified in the statement of the managers on the 
conference report accompanying this Act. 
HOWARD UNIVERSITY 
For partial support of Howard University (20 U.S.C. 121 et 
seq.), $232,474,000, of which not less than $3,600,000 shall be 
for a matching endowment grant pursuant to the Howard University 
Endowment Act (Public Law 98-480) and shall remain available 
until expended. 
COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS PROGRAM 
For Federal administrative expenses authorized under section 
121 of the Higher Education Act of 1965, $762,000 to carry out 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-39 
activities related to existing facility loans entered into under the 
Higher Education Act of 1965. 
HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING 
PROGRAM ACCOUNT 
The total amount of bonds insured pursuant to section 344 
of title III, part D of the Higher Education Act of 1965 shall 
not exceed $357,000,000, and the cost, as defined in section 502 
of the Congressional Budget Act of 1974, of such bonds shall not 
exceed zero. 
For administrative expenses to carry out the Historically Black 
College and University Capital Financing Program entered into 
pursuant to title III, part D of the Higher Education Act of 1965, 
as amended, $208,000. 
EDUCATION RESEARCH, STATISTICS, AND IMPROVEMENT 
For carrying out activities authorized by the Educational 
Research, Development, Dissemination, and Improvement Act of 
1994, including part E; the National Education Statistics Act of 
1994, including sections 411 and 412; section 2102 of title II, parts 
A, B, K, and L and sections 10102 and 10601 of title X, and 
part C of title XIII of the Elementary and Secondary Education 
Act of 1965, as amended, and title VI of Public Law 103-227, 
$732,721,000: Provided, That of the funds appropriated for part 
A of title X of the Elementary and Secondary Education Act of 
1965, as amended, $5,000,000 shall be made available for a high 
school reform program of grants to State educational agencies to 
improve academic performance and provide technical skills training: 
Provided further. That of the funds appropriated for part A of 
title X of the Elementary and Secondary Education Act of 1965, 
as amended, $5,000,000 shall be made available to carry out part 
L of title X of the Act: Provided further. That of the amount 
available for part A of title X of the Elementary and Secondary 
Education Act of 1965, as amended, $5,000,000 shall be available 
for grants to State and local educational agencies, in collaboration 
with other agencies and organizations, for school dropout prevention 
programs designed to address the needs of populations or commu-
nities with the highest dropout rates: Provided further, That of 
the amount made available for part A of title X of the Elementary 
and Secondary Education Act of 1965, as amended, $50,000,000 
shall be made available to enable the Secretary of Education to 
award grants to develop, implement, and strengthen programs to 
teach American history (not social studies) as a separate subject 
within school curricula: Provided further. That $53,000,000 of the 
amount available for the national education research institutes 
shall be allocated notwithstanding section 912(m)(l)(B-F) and sub-
paragraphs (B) and (C) of section 931(c)(2) of Public Law 103-
227 and $20,000,000 of that $53,000,000 shall be made available 
for the Interagency Education Research Initiative: Provided further. 
That of the funds appropriated for part A of title X of the 
Elementary and Secondary Education Act, as amended, $50,000,000 
shall be available to demonstrate effective approaches to comprehen-
sive school reform, to be allocated and expended in accordance 
with the instructions relating to this activity in the statement 
of managers on the conference report accompanying Public Law 
105-78 and in the statement of the managers on the conference 
114 STAT. 2763A-40 
PUBLIC LAW 106-554—APPENDIX A 
report accompanying Public Law 105-277: Provided farther. That 
the funds made available for comprehensive school reform shall 
become available on July 1, 2001, and remain available through 
September 30, 2002, and in carrying out this initiative, the Sec-
retary and the States shall support only approaches that show 
the most promise of enabling children to meet challenging State 
content standards and challenging State student 
performance 
standards based on reliable research and effective practices, and 
include an emphasis on basic academics and parental involvement: 
Provided further. That $139,624,000 of the funds for section 10101 
of the Elementary and Secondary Education Act of 1965 shall 
be available for the projects and in the amounts specified in the 
statement of the managers on the conference report accompanying 
this Act: Provided further. That of the funds appropriated under 
section 10601 of title X of the Elementary and Secondary Education 
Act of 1965, as amended, $2,000,000 shall be used to conduct 
a violence prevention demonstration program: Provided 
further, 
That of the funds available for section 10601 of title X of the 
Elementary and Secondary Education Act of 1965, as amended, 
$150,000 shall be awarded to the Center for Educational Tech-
nologies to complete production and distribution of an effective 
CD-ROM product that would complement the '^We the People: 
The Citizen and the Constitution" curriculum: Provided 
farther. 
That, of the funds for title VI of Public Law 103-227 and notwith-
standing the provisions of section 601(c)(1)(C) of that Act, $1,200,000 
shall be available to the Center for Civic Education to conduct 
a civic education program with Northern Ireland and the Republic 
of Ireland and, consistent with the civics and Government activities 
authorized in section 601(c)(3) of Public Law 103-227, to provide 
civic education assistance to democracies in developing countries. 
The term "developing countries" shall have the same meaning as 
the term "developing country" in the Education for the Deaf Act. 
DEPARTMENTAL MANAGEMENT 
PROGRAM ADMINISTRATION 
For carrying out, to the extent not otherwise provided, the 
Department of Education Organization Act, including rental of con-
ference rooms in the District of Columbia and hire of two passenger 
motor vehicles, $413,184,000. 
OFFICE FOR CIVIL RIGHTS 
For expenses necessary for the Office for Civil Rights, as author-
ized by section 203 of the Department of Education Organization 
Act, $76,000,000. 
OFFICE OF THE INSPECTOR GENERAL 
For expenses necessary for the Office of the Inspector General, 
as authorized by section 212 of the Department of Education 
Organization Act, $36,500,000. 
GENERAL PROVISIONS 
SEC. 301. No funds appropriated in this Act may be used 
for the transportation of students or teachers (or for the purchase 
of equipment for such transportation) in order to overcome racial 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-41 
imbalance in any school or school system, or for the transportation 
of students or teachers (or for the purchase of equipment for such 
transportation) in order to carry out a plan of racial desegregation 
of any school or school system. 
SEC. 302. None of the funds contained in this Act shall be 
used to require, directly or indirectly, the transportation of any 
student to a school other than the school which is nearest the 
student's home, except for a student requiring special education, 
to the school offering such special education, in order to comply 
with title VI of the Civil Rights Act of 1964. For the purpose 
of this section an indirect requirement of transportation of students 
includes the transportation of students to carry out a plan involving 
the reorganization of the grade structure of schools, the pairing 
of schools, or the clustering of schools, or any combination of grade 
restructuring, pairing or clustering. The prohibition described in 
this section does not include the establishment of magnet schools. 
SEC. 303. No funds appropriated under this Act may be used 
to prevent the implementation of programs of voluntary prayer 
and meditation in the public schools. 
(TRANSFER OF FUNDS) 
SEC. 304. Not to exceed 1 percent of any discretionary funds 
(pursuant to the Balanced Budget and Emergency Deficit Control 
Act of 1985, as amended) which are appropriated for the Depart-
ment of Education in this Act may be transferred between appro-
priations, but no such appropriation shall be increased by more 
than 3 percent by any such transfer: Provided, That the Appropria-
tions Committees of both Houses of Congress are notified at least 
15 days in advance of any transfer. 
SEC. 305. The Comptroller General of the United States shall 
evaluate the extent to which funds made available under part 
A of title I of the Elementary and Secondary Education Act of 
1965 are allocated to schools and local educational agencies with 
the greatest concentrations of school-age children from low-income 
families, the extent to which allocations of such funds adjust to 
shifts in concentrations of pupils from low-income families in dif-
ferent regions. States, and substate areas, the extent to which 
the allocation of such funds encourages the targeting of State funds 
to areas with higher concentrations of children from low-income 
families, and the implications of current distribution methods for 
such funds, shall make formula and other policy recommendations 
to improve the targeting of such funds to more effectively serve 
low-income children in both rural and urban areas, and shall pre-
pare interim and final reports based on the results of the study, 
to be submitted to Congress not later than February 1, 2001, 
and April 1, 200L 
SEC. 306. (a) From the amount appropriated for title VI of 
the Elementary and Secondary Education Act of 1965 in accordance 
with this section, the Secretary of Education— 
(1) shall make available a total of $6,000,000 to the Sec-
retary of the Interior (on behalf of the Bureau of Indian Affairs) 
and the outlying areas for activities under this section; and 
(2) shall allocate the remainder by providing each State 
the same percentage of that remainder as it received of the 
funds allocated to States under section 307(a)(2) of the Depart-
ment of Education Appropriations Act, 1999. 
114 STAT. 2763A-42 
PUBLIC LAW 106-554—APPENDIX A 
(b)(1) Each State that receives funds under this section shall 
distribute 100 percent of such funds to local educational agencies, 
of which— 
(A) 80 percent of such amount shall be allocated to such 
local educational agencies in proportion to the number of chil-
dren, aged 5 to 17, who reside in the school district served 
by such local educational agency from families with incomes 
below 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 for the 
most recent fiscal year for which satisfactory data are available 
compared to the number of such individuals who reside in 
the school districts served by all the local educational agencies 
in the State for that fiscal year; and 
(B) 20 percent of such amount shall be allocated to such 
local educational agencies in accordance with the relative enroll-
ments of children, aged 5 to 17, in public and private nonprofit 
elementary and secondary schools within the boundaries of 
such agencies. 
(2) Notwithstanding paragraph (1), if the award to a local 
educational agency under this section is less than the starting 
salary for a new fully qualified teacher in that agency, who is 
certified within the State (which may include certification through 
State or local alternative routes), has a baccalaureate degree, and 
demonstrates the general knowledge, teaching skills, and subject 
matter knowledge required to teach in his or her content areas, 
that agency may use funds under this section to (A) help pay 
the salary of a full- or part-time teacher hired to reduce class 
size, which may be in combination with other Federal, State, or 
local funds; or (B) pay for activities described in subsection 
(c)(2)(A)(iii) which may be related to teaching in smaller classes. 
(c)(1) The basic purpose and intent of this section is to reduce 
class size with fully qualified teachers. Each local educational 
agency that receives funds under this section shall use such funds 
to carry out effective approaches to reducing class size with fully 
qualified teachers who are certified within the State, including 
teachers certified through State or local alternative routes, and 
who demonstrate competency in the areas in which they teach, 
to improve educational achievement for both regular and special 
needs children, with particular consideration given to reducing class 
size in the early elementary grades for which some research has 
shown class size reduction is most effective. 
(2)(A) Each such local educational agency may use funds under 
this section for— 
(i) recruiting (including through the use of signing bonuses, 
and other financial incentives), hiring, and training fully quali-
fied regular and special education teachers (which may include 
hiring special education teachers to team-teach with regular 
teachers in classrooms that contain both children with disabil-
ities and non-disabled children) and teachers of special-needs 
children who are certified within the State, including teachers 
certified through State or local alternative routes, have a bacca-
laureate degree and demonstrate the general knowledge, teach-
ing skills, and subject matter knowledge required to teach 
in their content areas; 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-43 
(ii) testing new teachers for academic content knowledge 
and to meet State certification requirements that are consistent 
with title II of the Higher Education Act of 1965; and 
(iii) providing professional development (which may include 
such activities as those described in section 2210 of the 
Elementary and Secondary Education Act of 1965, opportunities 
for teachers to attend multi-week institutes, such as those 
made available during the summer months that provide inten-
sive professional development in partnership with local edu-
cational agencies and initiatives that promote retention and 
mentoring), to teachers, including special education teachers 
and teachers of special-needs children, in order to meet the 
goal of ensuring that all instructional staff have the subject 
matter knowledge, teaching knowledge, and teaching skills nec-
essary to teach effectively in the content area or areas in 
which they provide instruction, consistent with title II of the 
Higher Education Act of 1965. 
(B)(i) Except as provided under clause (ii), a local educational 
agency may use not more than a total of 25 percent of the award 
received under this section for activities described in clauses (ii) 
and (iii) of subparagraph (A). 
(ii) A local educational agency in which 10 percent or 
more of teachers in elementary schools, as defined by section 
14101(14) of the Elementary and Secondary Education Act of 
1965, have not met applicable State and local certification 
requirements (including certification through State or local 
alternative routes), or if such requirements have been waived, 
may use more than 25 percent of the funds it receives under 
this section for activities described in subparagraph (A)(iii) 
to help teachers who are not certified by the State become 
certified, including through State or local alternative routes, 
or to help teachers affected by class size reduction who lack 
sufficient content knowledge to teach effectively in the areas 
they teach to obtain that knowledge, if the local educational 
agency notifies the State educational agency of the percentage 
of the funds that it will use for the purpose described in 
this clause. 
(C) A local educational agency that has already reduced class 
size in the early grades to 18 or less children (or has already 
reduced class size to a State or local class size reduction goal 
that was in effect on the day before the enactment of the Depart-
ment of Education Appropriations Act, 2000, if that State or local 
educational agency goal is 20 or fewer children) may use funds 
received under this section— 
(i) to make further class size reductions in grades kinder-
garten through 3; 
(ii) to reduce class size in other grades; or 
(iii) to carry out activities to improve teacher quality includ-
ing professional development. 
(D) If a local educational agency has already reduced class 
size in the early grades to 18 or fewer children and intends to 
use funds provided under this section to carry out professional 
development activities, including activities to improve teacher qual-
ity, then the State shall make the award under subsection (b) 
to the local educational agency. 
(3) Each such agency shall use funds under this section only 
to supplement, and not to supplant, State and local funds that. 
114 STAT. 2763A-44 
PUBLIC LAW 106-554—APPENDIX A 
in the absence of such funds, would otherwise be spent for activities 
under this section. 
(4) No funds made available under this section may be used 
to increase the salaries or provide benefits, other than participation 
in professional development and enrichment programs, to teachers 
who are not hired under this section. Funds under this section 
may be used to pay the salary of teachers hired under section 
307 of the Department of Education Appropriations Act, 1999, or 
under section 310 of the Department of Education Appropriations 
Act, 2000. 
(d)(1) Each State receiving funds under this section shall report 
on activities in the State under this section, consistent with section 
6202(a)(2) of the Elementary and Secondary Education Act of 1965. 
(2) Each State and local educational agency receiving funds 
under this section shall publicly report to parents on its progress 
in reducing class size, increasing the percentage of classes in core 
academic areas taught by fully qualified teachers who are certified 
within the State and demonstrate competency in the content areas 
in which they teach, and on the impact that hiring additional 
highly qualified teachers and reducing class size, has had, if any, 
on increasing student academic achievement. 
(3) Each school receiving funds under this section shall provide 
to parents, upon request, the professional qualifications of their 
child's teacher. 
(e) If a local educational agency uses funds made available 
under this section for professional development activities, the 
agency shall ensure for the equitable participation of private non-
profit elementary and secondary schools in such activities. Section 
6402 of the Elementary and Secondary Education Act of 1965 
shall not apply to other activities under this section. 
(f) A local educational agency that receives funds under this 
section may use not more than 3 percent of such funds for local 
administrative costs. 
(g) Each local educational agency that desires to receive funds 
under this section shall include in the application required under 
section 6303 of the Elementary and Secondary Education Act of 
1965 a description of the agency's program to reduce class size 
by hiring additional highly qualified teachers. 
(h) No funds under this section may be used to pay the salary 
of any teacher hired with funds under section 307 of the Department 
of Education Appropriations Act, 1999, unless, by the start of the 
2001-2002 school year, the teacher is certified within the State 
(which may include certification through State or local alternative 
routes) and demonstrates competency in the subject areas in which 
he or she teaches. 
(i) Not later than 30 days after the date of the enactment 
of this Act, the Secretary shall provide specific notification to each 
local educational agency eligible to receive funds under this part 
regarding the flexibility provided under subsection (c)(2)(B)(ii) and 
the ability to use such funds to carry out activities described in 
subsection (c)(2)(A)(iii). 
SEC. 307. Section 412 of the National Education Statistics 
Act of 1994 (Public Law 103-382) is amended— 
(1) in subsection 412(c)(1), after "period of and before 
"years,", by striking "3" and inserting "4"; and 
(2) after "expiration of such term.", by adding the following 
new subsection: 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-45 
"(4) CONFORMING PROVISION.—Members of the Board pre-
viously granted 3 year terms, whose terms are in effect on 
the date of enactment of the Department of Education Appro-
priations Act, 2001, shall have their terms extended by 1 year.". 
SEC. 308. (a) Section 435(a)(2) of the Higher Education Act 
of 1965 (20 U.S.C. 1085(a)(2)) is amended by adding at the end 
thereof the following new subparagraph: 
"(D) Notwithstanding the first sentence of subparagraph (A), 
the Secretary shall restore the eligibility to participate in a program 
under subpart 1 of part A, part B, or part D of an institution 
that did not appeal its loss of eligibility within 30 days of receiving 
notification if the Secretary determines, on a case-by-case basis, 
that the institution's failure to appeal was substantially justified 
under the circumstances, and that— 
"(i) the institution made a timely request that the appro-
priate guaranty agency correct errors in the draft data used 
to calculate the institution's cohort default rate; 
"(ii) the guaranty agency did not correct the erroneous 
data in a timely fashion; and 
"(iii) the institution would have been eligible if the erro-
neous data had been corrected by the guaranty agency.". 
(b) The amendment made by subsection (a) of this section 
shall be effective for cohort default rate calculations for fiscal years 
1997 and 1998. 
SEC. 309. Section 439(r)(2) of the Higher Education Act of 
1965 (20 U.S.C. 1087-2(r)(2)) is amended— 
(1) in clause (A)(i), by striking "auditors and examiners" 
and inserting "and fix the compensation of such auditors and 
examiners as may be necessary"; and 
(2) by inserting at the end of subparagraph (E) the following 
new subparagraph: 
"(F) COMPENSATION OF AUDITORS AND EXAMINERS.— 
"(i) RATES OF PAY.—Rates of basic pay for all audi-
tors and examiners appointed pursuant to subpara-
graph (A) may be set and adjusted by the Secretary 
of the Treasury without regard to the provisions of 
chapter 51 or subchapter III of chapter 53 of title 
5, United States Code. 
"(ii) COMPARABILITY.— 
"(I) IN GENERAL.—Subject to section 5373 of 
title 5, United States Code, the Secretary of the 
Treasury may provide additional compensation 
and benefits to auditors and examiners appointed 
pursuant to subparagraph (A) if the same type 
of compensation or benefits are then being pro-
vided by any agency referred to in section 1206 
of the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989 (12 U.S.C. 1833b) or, 
if not then being provided, could be provided by 
such an agency under applicable provisions of law, 
rule, or regulation. 
"(II) CONSULTATION.—In setting and adjusting 
the total amount of compensation and benefits for 
* 
auditors and examiners appointed pursuant to 
' 
subparagraph (A), the Secretary of the Treasury 
'
^ 
shall consult with, and seek to maintain com-
parability with, the agencies referred to in section 
114 STAT. 2763A-46 
PUBLIC LAW 106-554—APPENDIX A 
1206 of the Financial Institutions Reform, Recov-
ery, and Enforcement Act of 1989 (12 U.S.C. 
1833b).". 
SEC. 310. Section 117(i) of the Carl D. Perkins Vocational 
and Technical Education Act of 1998 (20 U.S.C. 2327(i)) is amended 
by inserting "such sums as may be necessary for" before "each 
of the 4 succeeding fiscal years.". 
SEC. 311. Section 432(m)(l) of the Higher Education Act of 
1965 (20 U.S.C. 1082(m)(l)) is amended— 
(1) by striking clause (iv) of subparagraph (D); and 
(2) by adding at the end the following new subparagraph: 
"(E) PERFECTION OF SECURITY INTERESTS IN STUDENT 
LOANS.— 
"(i) IN GENERAL.—Notwithstanding the provisions 
of any State law to the contrary, including the Uniform 
Commercial Code as in effect in any State, a security 
interest in loans made under this part, on behalf of 
any eligible lender (as defined in section 435(d)) shall 
attach, be perfected, and be assigned priority in the 
manner provided by the applicable State's law for 
perfection of security interests in accounts, as such 
law may be amended from time to time (including 
applicable transition provisions). If any such State's 
law provides for a statutory lien to be created in such 
loans, such statutory lien may be created by the entity 
or entities governed by such State law in accordance 
with the applicable statutory provisions that created 
such a statutory lien. 
"(ii) COLLATERAL DESCRIPTION.—In addition to any 
other method for describing collateral in a legally suffi-
cient manner permitted under the laws of the State, 
the description of collateral in any financing statement 
filed pursuant to this subparagraph shall be deemed 
legally sufficient if it lists such loans, or refers to 
records (identifying such loans) retained by the secured 
party or any designee of the secured party identified 
in such financing statement, including the debtor or 
any loan servicer. 
"(iii) SALES.—Notwithstanding clauses (i) and (ii) 
and any provisions of any State law to the contrary, 
other than any such State's law providing for creation 
of a statutory lien, an outright sale of loans made 
under this part shall be effective and perfected auto-
matically upon attachment as defined in the Uniform 
Commercial Code of such State.". 
SEC. 312. Section 435(a)(5) of the Higher Education Act of 
1965 (20 U.S.C. 1085(a)(5)) is amended— 
(1) in subparagraph (A)(i), by striking "July 1, 2002," and 
inserting "July 1, 2004,"; and 
(2) in subparagraph (B), by striking "1999, 2000, and 2001" 
and inserting "1999 through 2003". 
SEC. 313. From the amounts made available for the "Fund 
for the Improvement of Education" under the heading "Education 
Research, Statistics, and Improvement", $10,000,000, to remain 
available until expended, shall be available to the Secretary of 
Education to be transferred to the Secretary of the Interior for 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-47 
an award to the National Constitution Center for construction 
activities authorized under Public Law 100-433. 
SEC. 314. Section 4116(b)(4) of the Elementary and Secondary 
Education Act of 1965 is amended by striking subparagraph (D) 
and inserting in lieu thereof: "(D) the development and implementa-
tion of character education and training programs that reflect the 
values of parents, teachers, and local communities, and incorporate 
elements of good character, including honesty, citizenship, courage, 
justice, respect, personal responsibility, and trustworthiness; and". 
SEC. 315. The Secretary of Education shall review the nursing 
program operated by Graceland University in Lamoni, Iowa, and 
may exercise the waiver authority provided in section 102(a)(3)(B) 
of the Higher Education Act of 1965, without regard to the provi-
sions of 34 CFR 600.7(b)(3)(ii), if the Secretary determines that 
such a waiver is appropriate. 
SEC. 316. Section 415 of the Higher Education Act of 1965 
is amended— 
(1) in section 415A(a)(2), by striking "section 415F" and 
inserting "section 415E"; and 
(2) in section 415E, by striking 415E(c) and inserting in 
lieu thereof the following: 
"(c) AUTHORIZED ACTIVITIES.—Each State receiving a grant 
under this section may use the grant funds for— 
"(1) making awards that— 
"(A) 
supplement 
grants 
received 
under 
section 
415C(b)(2) by eligible students who demonstrate financial 
need; or 
"(B) provide grants under section 415C(b)(2) to addi-
tional eligible students who demonstrate financial need; 
"(2) providing scholarships for eligible students— 
"(A) who demonstrate financial need; and 
"(B) who— 
, 
"(i) desire to enter a program of study leading 
to a career in— 
"(I) information technology; 
"(II) 
mathematics, 
computer 
science, 
or 
engineering; 
"(III) teaching; or 
"(IV) another field determined by the State 
to be critical to the State's workforce needs; or 
"(ii) demonstrate merit or academic achievement; 
and 
"(3) making awards that— 
"(A) supplement community service work-study awards 
received under section 415C(b)(2) by eligible students who 
demonstrate financial need; or 
"(B) provide community service work-study awards 
under section 415C(b)(2) to additional eligible students who 
demonstrate financial need.". 
(3) in section 415E, adding at the end the following new 
subsections: 
"(f) SPECIAL RULE.—Notwithstanding subsection (d), for pur-
poses of determining a State's share of the cost of the authorized 
activities described in subsection (c), the State shall consider only 
those expenditures from non-Federal sources that exceed its total 
expenditures for need-based grants, scholarships, and work-study 
114 STAT. 2763A-48 
PUBLIC LAW 106-554—APPENDIX A 
assistance for fiscal year 1999 (including any such assistance pro-
vided under this subpart). 
"(g) USE OF FUNDS FOR ADMINISTRATIVE COSTS PROHIBITED.— 
A State receiving a grant under this section shall not use any 
of the grant funds to pay administrative costs associated with 
any of the authorized activities described in subsection (c).". 
SEC. 317. (a) Section 402D of the Higher Education Act of 
1965 (20 U.S.C. 1070a-14) is amended— 
(1) by redesignating subsection (c) as subsection (d); and 
(2) by inserting after subsection (b) the following new sub-
section: 
"(c) SPECIAL RULE.— 
"(1) USE FOR STUDENT AID.—^A recipient of a grant that 
undertakes any of the permissible services identified in sub-
section (b) may, in addition, use such funds to provide grant 
aid to students. A grant provided under this paragraph shall 
not exceed the maximum appropriated Pell Grant or, be less 
than the minimum appropriated Pell Grant, for the current 
academic year. In making grants to students under this sub-
section, an institution shall ensure that adequate consultation 
takes place between the student support service program office 
and the institution's financial aid office. 
"(2) ELIGIBLE STUDENTS.—^For purposes of receiving grant 
aid under this subsection, eligible students shall be current 
participants in the student support services program offered 
by the institution and be— 
"(A) students who are in their first 2 years of post-
secondary education and who are receiving Federal Pell 
Grants under subpart 1; or 
"(B) students who have completed their first 2 years 
of postsecondary education and who are receiving Federal 
Pell Grants under subpart 1 if the institution demonstrates 
to the satisfaction of the Secretary that— 
"(i) these students are at high risk of dropping 
out; and 
"(ii) it will first meet the needs of all its eligible 
first- and second-year students for services under this 
paragraph. 
"(3) DETERMINATION OF NEED.—^A grant provided to a stu-
dent under paragraph (1) shall not be considered in determining 
that student's need for grant or work assistance under this 
title, except that in no case shall the total amount of student 
financial assistance awarded to a student under this title exceed 
that student's cost of attendance, as defined in section 472. 
"(4) MATCHING REQUIRED.—^A recipient of a grant who uses 
such funds for the purpose described in paragraph (1) shall 
match the funds used for such purpose, in cash, from non-
Federal funds, in an amount that is not less than 33 percent 
of the total amount of funds used for that purpose. This para-
graph shall not apply to any grant recipient that is an institu-
tion of higher education eligible to receive funds under part 
A or B of title III or title V. 
"(5) RESERVATION.—In no event may a recipient use more 
than 20 percent of the funds received under this section for 
grant aid. 
"(6) 
SUPPLEMENT, NOT SUPPLANT.—Funds received by 
a 
grant recipient that are used under this subsection shall be 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-49 
used to supplement, and not supplant, non-Federal funds 
expended for student support services programs.", 
(b) The amendments made by subsection (a) shall apply with 
respect to student support services grants awarded on or after 
the date of enactment of this Act. 
SEC. 318. (a) Subparagraph (B) of section 427A(c)(4) of the 
Higher Education Act of 1965 (20 U.S.C. 1077a(c)(4)) is amended 
to read as follows: 
"(B)(i) For any 12-month period beginning on July 1 
and ending on or before June 30, 2001, the rate determined 
under this subparagraph is determined on the preceding 
June 1 and is equal to— 
"(I) the bond equivalent rate of 52-week Treasury 
bills auctioned at the final auction held prior to such 
June 1; plus 
"(11) 3.25 percent. 
"(ii) For any 12-month period beginning on July 1 
of 2001 or any succeeding year, the rate determined under 
this subparagraph is determined on the preceding June 
26 and is equal to— 
"(I) the weekly average 1-year constant maturity 
Treasury yield, as published by the Board of Governors 
of the Federal Reserve System, for the last calendar 
week ending on or before such June 26; plus 
"(II) 3.25 percent.", 
(b) Subparagraph (A) of section 455(b)(4) of such Act (20 U.S.C. 
1087e(b)(4)) is amended to read as follows: 
"(A)(i) For Federal Direct PLUS Loans for which the 
first disbursement is made on or after July 1, 1994, the 
applicable rate of interest shall, during any 12-month 
period beginning on July 1 and ending on or before June 
30, 2001, be determined on the preceding June 1 and 
be equal to— 
"(I) the bond equivalent rate of 52-week Treasury 
bills auctioned at final auction held prior to such June 
1; plus 
"(II) 3.1 percent, 
except that such rate shall not exceed 9 percent. 
"(ii) For any 12-month period beginning on July 1 
of 2001 or any succeeding year, the applicable rate of 
interest determined under this subparagraph shall be 
determined on the preceding June 26 and be equal to— 
"(I) the weekly average 1-year constant maturity 
Treasury yield, as published by the Board of Governors 
of the Federal Reserve System, for the last calendar 
week ending on or before such June 26; plus 
"(II) 3.1 percent, 
except that such rate shall not exceed 9 percent.". 
SEC. 319. Section 1543 of the Higher Education Amendments 
of 1992 (20 U.S.C. 1070 note) is amended by adding at the end 
the following new subsection: 
"(e) DESIGNATION.—Scholarships awarded under this section 
shall be known as 'B.J. Stupak Olympic Scholarships'.". 
SEC. 320. (a) Subject to subsection (c), the Secretary of Edu-
cation shall release the reversionary interests that were retained 
by the United States, as part of the conveyance of certain real 
property situated in the County of Marin, State of California, in 
114 STAT. 2763A-50 
PUBLIC LAW 106-554—APPENDIX A 
an April 3, 1978 Quitclaim Deed, which was filed for record on 
June 5, 1978, in Book 3384, at page 33, of the official Records 
of Marin County, California. 
(b) The Secretary shall execute the release of the reversionary 
interests under subsection (a) without consideration. 
(c) The Secretary shall execute and file in the appropriate 
office or offices a deed of release, amended deed, or other appro-
priate instruments effectuating the release of the reversionary 
interests under subsection (a). In all other respects the provisions 
of the April 3, 1978 Quitclaim Deed shall remain intact. 
SEC. 321. (a) GRANTS TO NATIVE AMERICAN SCHOOLS AND STATE 
EDUCATIONAL AGENCIES.— 
(1) ALLOCATION OF FUNDS.—Of the amount made available 
under the heading "School improvement programs" for grants 
made in accordance with this section for school repair and 
renovation, activities under part B of the Individuals with 
Disabilities Education Act (20 U.S.C. 1411 et seq.), and tech-
nology activities, the Secretary of Education shall allocate— 
(A) $75,000,000 for grants to impacted local educational 
agencies (as defined in paragraph (3)) for school repair, 
renovation, and construction; 
(B) $3,250,000 for grants to outlying areas for school 
repair and renovation in high-need schools and commu-
nities, allocated on such basis, and subject to such terms 
and conditions, as the Secretary determines appropriate; 
(C) $25,000,000 for grants to public entities, private 
nonprofit entities, and consortia of such entities, for use 
in accordance with subpart 2 of part C of title X of the 
Elementary and Secondary Education Act of 1965; and 
(D) the remainder to State educational agencies in 
proportion to the amount each State received under part 
A of title I of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6311 et seq.) for fiscal year 2000, 
except that no State shall receive less than 0.5 percent 
of the amount allocated under this subparagraph. 
(2) DETERMINATION OF GRANT AMOUNT.— 
(A) DETERMINATION OF WEIGHTED STUDENT UNITS.— 
For purposes of computing the grant amounts under para-
graph (1)(A) for fiscal year 2001, the Secretary shall deter-
mine the results obtained by the computation made under 
section 8003 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7703) with respect to children 
described in subsection (a)(1)(C) of such section and com-
puted under subsection (a)(2)(B) of such section for such 
year— 
(i) for each impacted local educational agency that 
receives funds under this section; and 
(ii) for all such agencies together. 
(B) COMPUTATION OF PAYMENT.—For fiscal year 2001, 
the Secretary shall calculate the amount of a grant to 
an impacted local educational agency by— 
(i) dividing the amount described in paragraph 
(1)(A) by the results of the computation described in 
subparagraph (A)(ii); and 
(ii) multiplying the number derived under clause 
(i) by the results of the computation described in 
subparagraph (A)(i) for such agency. 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-51 
(3) DEFINITION.—For purposes of this section, the term 
"impacted local educational agency" means, for fiscal year 
2001— 
(A) a local educational agency that receives a basic 
support payment under section 8003(b) of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 7703(b)) 
for such fiscal year; and 
(B) with respect to which the number of children deter-
mined under section 8003(a)(1)(C) of such Act for the 
preceding school year constitutes at least 50 percent of 
the total student enrollment in the schools of the agency 
during such school year. 
(b) WITHIN-STATE ALLOCATIONS.— 
(1) ADMINISTRATIVE COSTS.— 
(A) STATE EDUCATIONAL AGENCY ADMINISTRATION.— 
Except as provided in subparagraph (B), each State edu-
cational agency may reserve not more than 1 percent of 
its allocation under subsection (a)(1)(D) for the purpose 
of administering the distribution of grants under this sub-
section. 
(B) STATE ENTITY ADMINISTRATION.—If the State edu-
cational agency transfers funds to a State entity described 
in paragraph (2)(A), the agency shall transfer to such entity 
0.75 of the amount reserved under this paragraph for the 
purpose of administering the distribution of grants under 
this subsection. 
(2) RESERVATION FOR COMPETITIVE SCHOOL REPAIR AND REN-
OVATION GRANTS TO LOCAL EDUCATIONAL AGENCIES.— 
(A) IN GENERAL.—Subject to the reservation under 
paragraph (1), of the funds allocated to a State educational 
agency under subsection (a)(1)(D), the State educational 
agency shall distribute 75 percent of such funds to local 
educational agencies or, if such State educational agency 
is not responsible for the financing of education facilities, 
the agency shall transfer such funds to the State entity 
responsible for the financing of education facilities (referred 
to in this section as the "State entity") for distribution 
by such entity to local educational agencies in accordance 
with this paragraph, to be used, consistent with subsection 
(c), for school repair and renovation. 
(B) COMPETITIVE GRANTS TO LOCAL EDUCATIONAL AGEN-
CIES.— 
(i) IN GENERAL.—^The State educational agency or 
State entity shall carry out a program of competitive 
grants to local educational agencies for the purpose 
described in subparagraph (A). Of the total amount 
available for distribution to such agencies under this 
paragraph, the State educational agency or State 
entity, shall, in carrying out the competition— 
(I) award to high poverty local educational 
agencies described in clause (ii), in the aggregate, 
at least an amount which bears the same relation-
ship to such total amount as the aggregate amount 
such local educational agencies received under part 
A of title I of the Elementary and Secondary Edu-
cation Act of 1965 for fiscal year 2000 bears to 
the aggregate amount received for such fiscal year 
114 STAT. 2763A-52 
PUBLIC LAW 106-554—APPENDIX A 
under such part by all local educational agencies 
in the State; 
(II) award to rural local educational agencies 
in the State, in the aggregate, at least an amount 
which bears the same relationship to such total 
amount as the aggregate amount such rural local 
educational agencies received under part A of title 
I of the Elementary and Secondary Education Act 
of 1965 for fiscal year 2000 bears to the aggregate 
amount received for such fiscal year under such 
part by all local educational agencies in the State; 
and 
(III) award the remaining funds to local edu-
cational agencies not receiving an award under 
subclause (I) or (II), including high poverty and 
rural local educational agencies that did not 
receive such an award. 
(ii) HIGH POVERTY LOCAL EDUCATIONAL AGEN-
CIES.—^A local educational agency is described in this 
clause if— 
(I) the percentage described in subparagraph 
(C)(i) with respect to the agency is 30 percent 
or greater; or 
(II) the number of children described in such 
subparagraph with respect to the agency is at 
least 10,000. 
(C) CRITERIA FOR AWARDING GRANTS.—In awarding 
competitive grants under this paragraph, a State edu-
cational agency or State entity shall take into account 
the following criteria: 
(i) The percentage of poor children 5 to 17 years 
of age, inclusive, in a local educational agency. 
(ii) The need of a local educational agency for 
school repair and renovation, as demonstrated by the 
condition of its public school facilities. 
(iii) The fiscal capacity of a local educational 
agency to meet its needs for repair and renovation 
of public school facilities without assistance under this 
section, including its ability to raise funds through 
the use of local bonding capacity and otherwise. 
(iv) In the case of a local educational agency that 
proposes to fund a repair or renovation project for 
a charter school or schools, the extent to which the 
school or schools have access to funding for the project 
through the financing methods available to other public 
schools or local educational agencies in the State. 
(v) The likelihood that the local educational agency 
will maintain, in good condition, any facility whose 
repair or renovation is assisted under this section. 
(D) POSSIBLE MATCHING REQUIREMENT.— 
(i) IN GENERAL.—^A State educational agency or 
State entity may require local educational agencies 
to match funds awarded under this subsection. 
(ii) MATCH AMOUNT.—The amount of a match 
described in clause (i) may be established by using 
a sliding scale that takes into account the relative 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-53 
poverty of the population served by the local edu-
cational agency. 
(3) RESERVATION FOR COMPETITIVE IDEA OR TECHNOLOGY 
GRANTS TO LOCAL EDUCATIONAL AGENCIES.— 
(A) IN GENERAL.—Subject to the reservation under 
paragraph (1), of the funds allocated to a State educational 
agency under subsection (a)(1)(D), the State educational 
agency shall distribute 25 percent of such funds to local 
educational agencies through competitive grant processes, 
to be used for the following: 
(i) To carry out activities under part B of the 
Individuals with Disabilities Education Act (20 U.S.C. 
1411 et seq.). 
(ii) For technology activities that are carried out 
in connection with school repair and renovation, 
including— 
(I) wiring; 
(II) acquiring hardware and software; 
(III) 
acquiring 
connectivity 
linkages 
and 
resources; and 
(IV) acquiring microwave, fiber optics, cable, 
and satellite transmission equipment. 
(B) CRITERIA FOR AWARDING IDEA GRANTS.—In award-
ing competitive grants under subparagraph (A) to be used 
to carry out activities under part B of the Individuals 
with Disabilities Education Act (20 U.S.C. 1411 et seq.), 
a State educational agency shall take into account the 
following criteria: 
(i) The need of a local educational agency for addi-
tional funds for a student whose individually allocable 
cost for expenses related to the Individuals with 
Disabilities Education Act substantially exceeds the 
State's average per-pupil expenditure (as defined in 
section 14101(2) of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 8801(2))). 
(ii) The need of a local educational agency for 
additional funds for special education and related serv-
ices under part B of the Individuals with Disabilities 
Education Act (20 U.S.C. 1411 et seq.). 
(iii) The need of a local educational agency for 
additional funds for assistive technology devices (as 
defined in section 602 of the Individuals with Disabil-
ities Education Act (20 U.S.C. 1401)) or assistive tech-
nology services (as so defined) for children being served 
under part B of the Individuals with Disabilities Edu-
cation Act (20 U.S.C. 1411 et seq.). 
(iv) The need of a local educational agency for 
additional funds for activities under part B of the 
Individuals with Disabilities Education Act (20 U.S.C. 
1411 et seq.) in order for children with disabilities 
to make progress toward meeting the performance 
goals and indicators established by the State under 
section 612(a)(16) of such Act (20 U.S.C. 1412). 
(C) CRITERL\ FOR AWARDING TECHNOLOGY GRANTS.— 
In awarding competitive grants under subparagraph (A) 
to be used for technology activities that are carried out 
in connection with school repair and renovation, a State 
114 STAT. 2763A-54 
PUBLIC LAW 106-554—APPENDIX A 
educational agency shall take into account the need of 
a local educational agency for additional funds for such 
activities, including the need for the activities described 
in subclauses (I) through (IV) of subparagraph (A)(ii). 
(c) RULES APPLICABLE TO SCHOOL REPAIR AND RENOVATION.— 
With respect to funds made available under this section that are 
used for school repair and renovation, the following rules shall 
apply: 
(1) PERMISSIBLE USES OF FUNDS.—School repair and renova-
tion shall be limited to one or more of the following: 
(A) Emergency repairs or renovations to public school 
facilities only to ensure the health and safety of students 
and staff, including— 
(i) repairing, replacing, or installing roofs, elec-
trical wiring, plumbing systems, or sewage systems; 
(ii) repairing, replacing, or installing heating, ven-
tilation, or air conditioning systems (including insula-
tion); and 
(iii) bringing public schools into compliance with 
fire and safety codes. 
(B) School facilities modifications necessary to render 
public school facilities accessible in order to comply with 
the Americans with Disabilities Act of 1990 (42 U.S.C. 
12101 etseq.). 
(C) School facilities modifications necessary to render 
public school facilities accessible in order to comply with 
section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 
794). 
(D) Asbestos abatement or removal from public school 
facilities. 
(E) Renovation, repair, and acquisition needs related 
to the building infi*astructure of a charter school. 
(2) IMPERMISSIBLE USES OF FUNDS.—No funds received 
under this section may be used for— 
(A) payment of maintenance costs in connection with 
any projects constructed in whole or in part with Federal 
funds provided under this section; 
(B) the construction of new facilities, except for facili-
ties for an impacted local educational agency (as defined 
in subsection (a)(3)); or 
(C) stadiums or other facilities primarily used for ath-
letic contests or exhibitions or other events for which admis-
sion is charged to the general public. 
(3) CHARTER SCHOOLS.—^A public charter school that con-
stitutes a local educational agency under State law shall be 
eligible for assistance under the same terms and conditions 
as any other local educational agency (as defined in section 
14101(18) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 8801(18))). 
(4) 
SUPPLEMENT, NOT SUPPLANT.—Excluding the uses 
described in subparagraphs (B) and (C) of paragraph (1), a 
local educational agency shall use Federal funds subject to 
this subsection only to supplement the amount of funds that 
would, in the absence of such Federal funds, be made available 
from non-Federal sources for school repair and renovation. 
(d) SPECIAL RULE.—Each local educational agency that receives 
funds under this section shall ensure that, if it carries out repair 
PUBLIC LAW 106-554^APPENDIX A 
114 STAT. 2763A-55 
or renovation through a contract, any such contract process ensures 
the maximum number of quaUfied bidders, including small, minor-
ity, and women-owned businesses, through full and open competi-
tion. 
(e) PUBLIC COMMENT.—Each local educational agency receiving 
funds under paragraph (2) or (3) of subsection (b)— 
(1) shall provide parents, educators, and all other interested 
members of the community the opportunity to consult on the 
use of funds received under such paragraph; 
(2) shall provide the public with adequate and efficient 
notice of the opportunity described in paragraph (1) in a widely 
read and distributed medium; and 
(3) shall provide the opportunity described in paragraph 
(1) in accordance with any applicable State and local law speci-
fying how the comments may be received and how the com-
ments may be reviewed by any member of the public. 
(f) REPORTING.— 
(1) LOCAL REPORTING.—Each local educational 
agency 
receiving funds under subsection (a)(1)(D) shall submit a report 
to the State educational agency, at such time as the State 
educational agency may require, describing the use of such 
. funds for— 
(A) school repair and renovation (and construction, in 
the case of an impacted local educational agency (as defined 
in subsection (a)(3))); 
(B) activities under part B of the Individuals with 
Disabilities Education Act (20 U.S.C. 1411 et seq.); and 
(C) technology activities that are carried out in connec-
tion with school repair and renovation, including the activi-
ties described in subclauses (I) through (IV) of subsection 
(b)(3)(A)(ii). 
(2) STATE REPORTING.—Each State educational agency shall 
submit to the Secretary of Education, not later than December 
31, 2002, a report on the use of funds received under subsection 
(a)(1)(D) by local educational agencies for— 
(A) school repair and renovation (and construction, in 
the case of an impacted local educational agency (as defined 
in subsection (a)(3))); 
(B) activities under part B of the Individuals with 
Disabilities Education Act (20 U.S.C. 1411 et seq.); and 
(C) technology activities that are carried out in connec-
tion with school repair and renovation, including the activi-
ties described in subclauses (I) through (IV) of subsection 
(b)(3)(A)(ii). 
(3) ADDITIONAL REPORTS.—Each entity receiving funds allo-
cated under subsection (a)(1)(A) or (B) shall submit to the 
Secretary, not later than December 31, 2002, a report on its 
uses of funds under this section, in such form and containing 
such information as the Secretary may require. 
(g) APPLICABILITY OF PART B OF IDEA.—If a local educational 
agency uses funds received under this section to carry out activities 
under part B of the Individuals with Disabilities Education Act 
(20 U.S.C. 1411 et seq.), such part (including provisions respecting 
the participation of private school children), and any other provision 
of law that applies to such part, shall apply to such use. 
(h) REALLOCATION.—If a State educational agency does not 
apply for an allocation of funds under subsection (aXl)(D) for fiscal 
114 STAT. 2763A-56 
PUBLIC LAW 106-554—APPENDIX A 
year 2001, or does not use its entire allocation for such fiscal 
year, the Secretary may reallocate the amount of the State edu-
cational agency's allocation (or the remainder thereof, as the case 
may be) to the remaining State educational agencies in accordance 
with subsection (a)(1)(D). 
(i) PARTICIPATION OF PRIVATE SCHOOLS.— 
(1) IN GENERAL.—Section 6402 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7372) shall apply 
to subsection (b)(2) in the same manner as it applies to activities 
under title VI of such Act, except that— 
(A) such section shall not apply with respect to the 
title to any real property renovated or repaired with assist-
ance provided under this section; 
(B) the term "services" as used in section 6402 of 
such Act with respect to funds under this section shall 
be provided only to private, nonprofit elementary or second-
ary schools with a rate of child poverty of at least 40 
percent and may include for purposes of subsection (b)(2) 
only— 
(i) modifications of school facilities necessary to 
meet the standards applicable to public schools under 
the Americans with Disabilities Act of 1990 (42 U.S.C. 
12101 et seq.); 
(ii) modifications of school facilities necessary to 
meet the standards applicable to public schools under 
section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 
794); and 
(iii) asbestos abatement or removal from school 
facilities; and 
(C) notwithstanding 
the 
requirements 
of section 
6402(b) of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 7372(b)), expenditures for services pro-
vided using funds made available under subsection (b)(2) 
shall be considered equal for purposes of such section if 
the per-pupil expenditures for services described 
in 
subparagraph (B) for students enrolled in private nonprofit 
elementary and secondary schools that have child poverty 
rates of at least 40 percent are consistent with the per-
pupil expenditures under this section for children enrolled 
in the public schools in the school district of the local 
educational agency receiving funds under this section. 
(2) REMAINING FUNDS.—If the expenditure for services 
described in paragraph (1)(B) is less than the amount calculated 
under paragraph (1)(C) because of insufficient need for such 
services, the remainder shall be available to the local edu-
cational agency for renovation and repair of public school facili-
ties. 
(3) APPLICATION.—If any provision of this section, or the 
application thereof, to any person or circumstances is judicially 
determined to be invalid, the provisions of the remainder of 
the section and the application to other persons or cir-
cumstances shall not be affected thereby. 
(j) DEFINITIONS.—For purposes of this section: 
(1) CHARTER SCHOOL.—The term "charter school" has the 
meaning given such term in section 10310(1) of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 8066(1)). 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-57 
(2) ELEMENTARY SCHOOL.—^The term "elementary school" 
has the meaning given such term in section 14101(14) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 
8801(14)). 
(3) LOCAL EDUCATIONAL AGENCY.—The term "local edu-
cational agency" has the meaning given such term in subpara-
graphs (A) and (B) of section 14101(18) of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 8801(18)). 
(4) OUTLYING AREA.—The term "outlying area" has the 
meaning given such term 
in section 
14101(21) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 
8801(21)). 
(5) POOR CHILDREN AND CHILD POVERTY.—^The terms "poor 
children" and "child poverty" refer to children 5 to 17 years 
of age, inclusive, who eire from families with incomes below 
the poverty line (as defined by the Office of Msmagement and 
Budget and revised annually in accordance with section 673(2) 
of the Community Services Block Grant (42 U.S.C. 9902(2)) 
applicable to a family of the size involved for the most recent 
fiscal year for which data satisfactory to the Secretary are 
available. 
(6) RURAL LOCAL EDUCATIONAL AGENCY.—The term "rural 
local educational agency" means a local educationsil agency 
that the State determines is located in a rural area using 
objective data and a commonly employed definition of the term 
"rural". 
(7) SECONDARY SCHOOL.—The term "secondary school" has 
the meaning given such term in section 14101(25) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 
8801(25)). 
(8) STATE.—The term "State" means each of the 50 States, 
the District of Columbia, and the Commonwealth of Puerto 
Rico. 
SEC. 322. (a) Part C of title X of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 8061 et seq.) is amended— 
(1) by inserting after the part heading the following: 
"Subpart 1—^Basic Charter School Grant 
Program'*; 
and 
(2) by adding at the end the following: 
"Subpart 2—Credit Enhancement Initiatives To 
Assist Charter School Facility Acquisition, Con-
struction, and Renovation 
"SEC. 10321. PURPOSE. 
"The purpose of this subpart is to provide one-time grants 
to eligible entities to permit them to demonstrate innovative credit 
enhancement initiatives that assist charter schools to address the 
cost of acquiring, constructing, and renovating facilities. 
"SEC. 10322. GRANTS TO ELIGIBLE ENTITIES. 
"(a) IN GENERAL.—The Secretary shall use 100 percent of the 
amount available to carry out this subpart to award not less than 
7»-194 O - 00 - 4 : QL 3 Part 5 
114 STAT. 2763A-58 
PUBLIC LAW 106-554—APPENDIX A 
three grants to eligible entities having applications approved under 
this subpart to demonstrate innovative methods of assisting charter 
schools to address the cost of acquiring, constructing, and renovating 
facilities by enhancing the availability of loans or bond financing. 
"(b) GRANTEE SELECTION.—The Secretary shall evaluate each 
application submitted, and shall make a determination of which 
are sufficient to merit approval and which are not. The Secretary 
shall award at least one grant to an eligible entity described in 
section 10330(2)(A), at least one grant to an eligible entity described 
in section 10330(2)(B), and at least one grant to an eligible entity 
described in section 10330(2)(C), if applications are submitted that 
permit the Secretary to do so without approving an application 
that is not of sufficient quality to merit approval. 
"(c) GRANT CHARACTERISTICS.—Grants under this subpart shall 
be of a sufficient size, scope, and quality so as to ensure an effective 
demonstration of an innovative means of enhancing credit for the 
financing of charter school acquisition, construction, or renovation. 
"(d) SPECIAL RULE.—In the event the Secretary determines 
that the funds available are insufficient to permit the Secretary 
to award not less than three grants in accordance with subsections 
(a) through (c), such three-grant minimum and the second sentence 
of subsection (b) shall not apply, and the Secretary may determine 
the appropriate number of grants to be awarded in accordance 
with subsection (c). 
"SEC. 10323. APPLICATIONS. 
"(a) IN GENERAL.—To receive a grant under this subpart, an 
eligible entity shall submit to the Secretary an application in such 
form as the Secretary may reasonably require. 
"(b) CONTENTS.—^An application under subsection (a) shall 
contain— 
"(1) a statement identifying the activities proposed to be 
undertaken with funds received under this subpart, including 
how the applicant will determine which charter schools will 
receive assistance, and how much and what types of assistance 
charter schools will receive; 
"(2) a description of the involvement of charter schools 
in the application's development and the design of the proposed 
activities; 
"(3) a description of the applicant's expertise in capital 
market financing; 
"(4) a description of how the proposed activities will lever-
age the maximum amount of private-sector financing capital 
relative to the amount of government funding used and other-
wise enhance credit available to charter schools; 
"(5) a description of how the applicant possesses sufficient 
expertise in education to evaluate the likelihood of success 
of a charter school program for which facilities financing is 
sought; 
"(6) in the case of an application submitted by a State 
governmental entity, a description of the actions that the entity 
has taken, or will take, to ensure that charter schools within 
the State receive the funding they need to have adequate facili-
ties; and 
"(7) such other information as the Secretary may reason-
ably require. 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-59 
"SEC. 10324. CHARTER SCHOOL OBJECTIVES. 
"An eligible entity receiving a grant under this subpart shall 
use the funds deposited in the reserve account established under 
section 10325(a) to assist one or more charter schools to access 
private sector capital to accomplish one or both of the following 
objectives: 
"(1) The acquisition (by purchase, lease, donation, or other-
wise) of an interest (including an interest held by a third 
party for the benefit of a charter school) in improved or unim-
proved real property that is necessary to commence or continue 
the operation of a charter school. 
"(2) The construction of new facilities, or the renovation, 
repair, or alteration of existing facilities, necessary to commence 
or continue the operation of a charter school. 
"SEC. 10325. RESERVE ACCOUNT. 
"(a) USE OF FUNDS.—^To assist charter schools to accomplish 
the objectives described in section 10324, an eligible entity receiving 
a grant under this subpart shall, in accordance with State £ind 
local law, directly or indirectly, alone or in collaboration with others, 
deposit the funds received under this subpart (other than funds 
used for administrative costs in accordance with section 10326) 
in a reserve account established and maintained by the entity 
for this purpose. Amounts deposited in such account shall be used 
by the entity for one or more of the following purposes: 
"(1) Guaranteeing, insuring, and reinsuring bonds, notes, 
evidences of debt, loans, and interests therein, the proceeds 
of which are used for an objective described in section 10324. 
"(2) Guaranteeing and insuring leases of personal and real 
property for an objective described in section 10324. 
"(3) Facilitating financing by identifying potential lending 
sources, encouraging private lending, and other similar activi-
ties that directly promote lending to, or for the benefit of, 
charter schools. 
"(4) Facilitating the issuance of bonds by charter schools, 
or by other public entities for the benefit of charter schools, 
by providing technical, administrative, and other appropriate 
assistance (including the recruitment of bond counsel, under-
writers, and potential investors and the consolidation of mul-
tiple charter school projects within a single bond issue). 
"(b) INVESTMENT.—Funds received under this subpart and 
deposited in the reserve account shall be invested in obligations 
issued or guaranteed by the United States or a State, or in other 
similarly low-risk securities. 
"(c) REINVESTMENT OF EARNINGS.—^Any earnings on funds 
received under this subpart shall be deposited in the reserve account 
established luider subsection (a) and used in accordance with such 
subsection. 
"SEC. 10326. LIMITATION ON ADMINISTRATIVE COSTS. 
"An eligible entity may use not more than 0.25 percent of 
the funds received under this subpart for the administrative costs 
of carrying out its responsibilities under this subpart. 
"SEC. 10327. AUDITS AND REPORTS. 
"(a) FINANCIAL RECORD MAINTENANCE AND AUDIT.—The finan-
cial records of each eligible entity receiving a grant under this 
subpart shall be maintained in accordance with generally accepted 
114 STAT. 2763A-60 
PUBLIC LAW 106-554—APPENDIX A 
accounting principles and shall be subject to an annual audit by 
an independent public accountant. 
"(b) REPORTS.— 
"(1) 
GRANTEE 
ANNUAL 
REPORTS.—Each eligible entity 
receiving a grant under this subpart annually shall submit 
to the Secretary a report of its operations and activities under 
this subpart. 
"(2) CONTENTS.—Each such annual report shall include— 
"(A) a copy of the most recent financial statements, 
and any accompanying opinion on such statements, pre-
pared by the independent public accountant reviewing the 
financial records of the eligible entity; 
"(B) a copy of any report made on an audit of the 
financial records of the eligible entity that was conducted 
under subsection (a) during the reporting period; 
"(C) an evaluation by the eligible entity of the effective-
ness of its use of the Federal fiinds provided under this 
subpart in leveraging private funds; 
"(D) a listing and description of the charter schools 
served during the reporting period; 
"(E) a description of the activities carried out by the 
eligible entity to assist charter schools in meeting the objec-
tives set forth in section 10324; and 
"(F) a description of the characteristics of lenders and 
other financial institutions participating in the activities 
undertaken by the eligible entity under this subpart during 
the reporting period. 
"(3) SECRETARIAL REPORT.—^The Secretary shall review the 
reports submitted under paragraph (1) and shall provide a 
comprehensive annual report to Congress on the activities con-
ducted under this subpart. 
"SEC. 10328. NO FULL FAITH AND CREDIT FOR GRANTEE OBLIGATIONS. 
"No financial obligation of an eligible entity entered into pursu-
ant to this subpart (such as an obligation under a guarantee, 
bond, note, evidence of debt, or loan) shall be an obligation of, 
or guaranteed in any respect by, the United States. The full faith 
and credit of the United States is not pledged to the payment 
of funds which may be required to be paid under any obligation 
made by an eligible entity pursuant to any provision of this subpart. 
"SEC. 10329. RECOVERY OF FUNDS. 
"(a) IN GENERAL.—^The Secretary, in accordance with chapter 
37 of title 31, United States Code, shall collect— 
"(1) all of the funds in a reserve account established by 
an eligible entity under section 10325(a) if the Secretary deter-
mines, not earlier than 2 years after the date on which the 
entity first received funds under this subpart, that the entity 
has failed to make substantial progress in carrying out the 
purposes described in section 10325(a); or 
"(2) all or a portion of the ftinds in a reserve account 
established by an eligible entity under section 10325(a) if the 
Secretary determines that the eligible entity has permanently 
ceased to use all or a portion of the funds in such account 
to accomplish any purpose described in section 10325(a). 
"(b) EXERCISE OF AUTHORITY.—The Secretary shall not exercise 
the authority provided in subsection (a) to collect from any eligible 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-61 
entity any funds that are being properly used to achieve one or 
more of the purposes described in section 10325(a). 
"(c) PROCEDURES.—^The provisions of sections 451, 452, and 
458 of the General Education Provisions Act (20 U.S.C. 1234 et 
seq.) shall apply to the recovery of funds under subsection (a). 
"(d) CONSTRUCTION.—This section shall not be construed to 
impair or affect the authority of the Secretary to recover funds 
under part D of the General Education Provisions Act (20 U.S.C. 
1234 et seq.). 
"SEC. 10330. DEFINrnONS. 
"In this subpart: 
"(1) The term 'charter school' has the meaning given such 
term in section 10310. 
"(2) The term 'eligible entity' means— 
"(A) a public entity, such as a State or local govern-
mental entity; 
"(B) a private nonprofit entity; or 
"(C) a consortium of entities described in subpara-
graphs (A) and (B). 
••SEC. 10331. AUTHORIZATION OF APPROPRIATIONS. 
"For the purpose of carrying out this subpart, there are author-
ized to be appropriated $100,000,000 for fiscal year 2001.". 
(b) Part C of title X of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 8061 et seq.) is amended in each of the 
following provisions by striking "part" each place such term appears 
and inserting "subpart": 
(1) Sections 10301 through 10305. 
(2) Section 10307. 
(3) Sections 10309 through 10311. 
SEC. 323. (a) Section 8003(b)(2)(F) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7703(b)(2)(F)) is 
amended— 
(1) by striking "the Secretary shall use" and inserting "the 
Secretary— 
"(i) shall use"; 
(2) by striking the period at the end and inserting "; and"; 
and 
(3) by adding at the end the following: 
"(ii) except as provided in subparagraph (C)(iXI), 
shall include all of the children described in subpara-
graphs (F) and (G) of subsection (a)(1) enrolled in 
schools of the local educational agency in determining 
(I) the eligibility of the agency for assistance under 
this paragraph, and (II) the amount of such assistance 
if the number of such children meet the requirements 
of subsection (a)(3).". 
(b) Section 8003(bX2) of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7703(b)(2)) is amended by adding 
at the end the following: 
"(G) DETERMINATION OF AVERAGE TAX RATES FOR GEN-
ERAL FUND PURPOSES.—For the purpose of determining 
average tax rates for general fund purposes for local edu-
cational agencies in a State under this paragraph (except 
under subparagraph (C)(i)(II)(bb)), the Secretary shall use 
either— 
114 STAT. 2763A-62 
PUBLIC LAW 106-554—APPENDIX A 
"(i) the average tax rate for general fund purposes 
for comparable local educational agencies, as deter-
mined by the Secretary in regulations; or 
"(ii) the average tax rate of all the local educational 
agencies in the State.". 
This title may be cited as the "Department of Education Appro-
priations Act, 2001". 
TITLE IV—RELATED AGENCIES 
ARMED FORCES RETIREMENT HOME 
For expenses necessary for the Armed Forces Retirement Home 
to operate and maintain the United States Soldiers' and Airmen's 
Home and the United States Naval Home, to be paid from funds 
available in the Armed Forces Retirement Home Trust Fund, 
$69,832,000, of which $9,832,000 shall remain available until 
expended for construction and renovation of the physical plants 
at the United States Soldiers' and Airmen's Home and the United 
States Naval Home: Provided, That, notwithstanding any other 
provision of law, a single contract or related contracts for develop-
ment and construction, to include construction of a long-term care 
facility at the United States Naval Home, may be employed which 
collectively include the full scope of the project: Provided 
further, 
That the solicitation and contract shall contain the clause "availabil-
ity of funds" found at 48 CFR 52.232-18 and 252.232-7007, Limita-
tion of Government Obligations. 
CORPORATION FOR NATIONAL AND COMMUNITY SERVICE 
DOMESTIC VOLUNTEER SERVICE PROGRAMS, OPERATING EXPENSES 
For expenses necessary for the Corporation for National and 
Community Service to carry out the provisions of the Domestic 
Volunteer Service Act of 1973, as amended, $303,850,000: Provided, 
That none of the funds made available to the Corporation for 
National and Community Service in this Act for activities author-
ized by part E of title II of the Domestic Volunteer Service Act 
of 1973 shall be used to provide stipends or other monetary incen-
tives to volunteers or volunteer leaders whose incomes exceed 125 
percent of the national poverty level. 
CORPORATION FOR PUBLIC BROADCASTING 
For payment to the Corporation for Public Broadcasting, as 
authorized by the Communications Act of 1934, an amount which 
shall be available within limitations specified by that Act, for the 
fiscal year 2003, $365,000,000: Provided, That no funds made avail-
able to the Corporation for Public Broadcasting by this Act shall 
be used to pay for receptions, parties, or similar forms of entertain-
ment for G<)vemment officials or employees: Provided further. That 
none of the funds contained in this paragraph shall be available 
or used to aid or support any program or activity from which 
any person is excluded, or is denied benefits, or is discriminated 
against, on the basis of race, color, national origin, religion, or 
sex: Provided further. That in addition to the amounts provided 
above, $20,000,000, to remain available until expended, shall be 
for digitalization, pending enactment of authorizing legislation. 
PUBLIC LAW 106-554^APPENDIX A 
114 STAT. 2763A-63 
FEDERAL MEDIATION AND CONCILIATION SERVICE 
SALARIES AND EXPENSES 
For expenses necessary for the Federal Mediation and Concilia-
tion Service to carry out the functions vested in it by the Labor 
Management Relations Act, 1947 (29 U.S.C. 171-180, 182-183), 
including hire of passenger motor vehicles; for expenses necessary 
for the Labor-Management Cooperation Act of 1978 (29 U.S.C. 
175a); and for expenses necessary for the Service to carry out 
the functions vested in it by the Civil Service Reform Act, Public 
Law 95-454 (5 U.S.C. ch. 71), $38,200,000, including $1,500,000, 
to remain available through September 30, 2002, for activities 
authorized by the Labor-Management Cooperation Act of 1978 (29 
U.S.C. 175a): Provided, That notwithstanding 31 U.S.C. 3302, fees 
charged, up to full-cost recovery, for special training activities smd 
other conflict resolution services and technical assistance, including 
those provided to foreign governments and international organiza-
tions, and for arbitration services shall be credited to and merged 
with this account, and shall remain available until expended: Pro-
vided further. That fees for arbitration services shall be available 
only for education, training, and professional development of the 
agency workforce: Provided further. That the Director of the Service 
is authorized to accept and use on behalf of the United States 
gifts of services and real, personal, or other property in the aid 
of any projects or functions within the Director's jurisdiction. 
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 
SALARIES AND EXPENSES 
For expenses necessary for the Federsd Mine Safety and Health 
Review Commission (30 U.S.C. 801 et seq.), $6,320,000. 
INSTITUTE OF MUSEUM AND LIBRARY SERVICES 
OFFICE OF LIBRARY SERVICES: GRANTS AND ADMINISTRATION 
For carrying out subtitle B of the Museum and Library Services 
Act, $207,219,000: Provided, 
That of the amount 
provided, 
$1,000,000 shall be awarded to the National Museum of Women 
in the Arts in Washington, D.C., $700,000 shall be awarded to 
the University of Idaho Institute for the Historic Study of Jazz, 
$2,600,000 shall be awarded to Southeast Missouri State University 
River Campus and Museum, $900,000 shall be awarded to the 
Heritage Harbor Museum in Rhode Island, $500,000 shall be 
awarded to the Alaska Native Heritage Center, $576,000 shall 
be awarded to the Franklin Institute in Philadelphia, $925,000 
shall be awarded to the Please Touch Museum, $250,000 shall 
be awarded to the Pittsburgh Children's Museum, $510,000 shall 
be awarded to the Temple University Library, $1,800,000 shall 
be awarded to Franklin Pierce College in New Hampshire, $500,000 
shall be awarded to the Louisville Zoo in Kentucky, $150,000 shall 
be awarded to the Oregon Historical Society, $1,200,000 shall be 
awarded to the Mississippi River Museum and Discovery Center 
in Dubuque, Iowa, $650,000 shall be awarded to the Salisbury 
House Foundation in Des Moines, Iowa, $150,000 shall be awarded 
to the History Center for the Linn County Historical Museum 
in Iowa, $4,000,000 shall be awarded to the Newsline for the 
114 STAT. 2763A-64 
PUBLIC LAW 106-554—APPENDIX A 
Blind, of which $100,000 shall be awarded to the Iowa Newshne 
for the Blind and $100,000 shall be awarded to the West Virginia 
Newsline for the Blind, $1,000,000 shall be awarded to the Clay 
Center for the Arts and Sciences, $650,000 shall be awarded to 
Bishops Museum in Hawaii, $500,000 shall be awarded to the 
Wisconsin Maritime Museum, $250,000 shall be awarded to the 
Natural History Museum of Los Angeles, $400,000 shall be awarded 
to the Perkins Geology Museum at the University of Vermont, 
$400,000 shall be awarded to the Walt Whitman Cultural Arts 
Center in Camden, New Jersey, $400,000 shall be awarded to 
the Plainfield Public Library in Plainfield, New Jersey, $150,000 
shall be awarded to the Ducktown Arts District in Atlantic City, 
New Jersey, $400,000 shall be awarded to the Lake Champlain 
Science Center in Vermont, $250,000 shall be awarded to the 
Foundation for the Arts, Music, and Entertainment of Shreveport-
Bossier, Inc., $100,000 shall be awarded to Bryant College in Rhode 
Island, $120,000 shall be awarded to the Fenton Historical Museum 
of Jamestown, New York, $921,000 shall be awarded to the Mari-
ners' Museum in Newport News, Virginia, $461,000 shall be 
awarded to DuPage County Children's Museum in Naperville, 
Illinois, $369,000 shall be awarded to the National Baseball Hall 
of Fame Library in Cooperstown, New York, $92,000 shall be 
awarded to the City of Corona, Riverside, California, $6,000 shall 
be awarded to the City of Murrieta, California Public Library, 
$1,382,000 shall be awarded to the Sierra Madre, California Public 
Library, $23,000 shall be awarded to the Brooklyn Public Library 
in Brooklyn, New York, $46,000 shall be awarded to the New 
York Public Library Staten Island branch, $266,000 shall be 
awarded to the Edward H. Nabb Research Center at Salisbury 
State University in Salisbury, Maryland, $461,000 shall be awarded 
to Texas Tech University, $230,000 shall be awarded to the City 
of Ontario, California Public Library, $461,000 shall be awarded 
to the Southern Oregon University in Ashland, Oregon, $1,106,000 
shall be awarded to Christopher Newport University in Newport 
News, Virginia, $128,000 shall be awarded to the Nassau County 
Museum of Art in Roslyn Harbor, New York, $850,000 shall be 
awarded to the Children's Museum of Los Angeles, $43,000 shall 
be awarded to Sumter County Library in Sumter, South Carolina, 
$298,000 shall be awarded to Columbia College Center for Black 
Music Research in Chicago, Illinois, $723,000 shall be awarded 
to Old Sturbridge Village in Sturbridge, Massachusetts, $723,000 
shall be awarded to New Bedford Whaling Museum in Massachu-
setts, $298,000 shall be awarded to Mystic Seaport Museum of 
America and the Sea in Connecticut, $468,000 shall be awarded 
to the City of Houston Public Library, $128,000 shall be awarded 
to the Roberson Museum and Science Center in Binghampton, 
New York, $850,000 shall be awarded to Berman Museum of Art 
at Ursinus College in Collegeville, Pennsylvania, $680,000 shall 
be awarded to AMISTAD Research Center at Tulane University, 
$2,125,000 shall be awarded to Silas Bronson Library in Waterbury, 
Connecticut, $213,000 shall be awarded to Fitchburg Art Museum 
in Fitchburg, Massachusetts, $128,000 shall be awarded to North 
Carolina Museum of Life and Science, $2,435,000 shall be awarded 
to New York Public Library, $85,000 shall be awarded to the 
New York Botanical Garden in Bronx, New York, $170,000 shall 
be awarded to George Eastman House in Rochester, New York, 
$425,000 shall be awarded to The National Aviary in Pittsburgh, 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-65 
Pennsylvania, $723,000 shall be awarded to the George C. Page 
Museum in Los Angeles, California, $461,000 shall be awarded 
to the Abraham Lincoln Bicentennial Commission, and $410,000 
shall be awarded to the AE Seaman Mineral Museum in Houghton, 
Michigan. 
MEDICARE PAYMENT ADVISORY COMMISSION 
SALARIES AND EXPENSES 
For expenses necessary to carry out section 1805 of the Social 
Security Act, $8,000,000, to be transferred to this appropriation 
from the Federal Hospital Insurance and the Federal Supple-
mentary Medical Insurance Trust Funds. 
NATIONAL COMMISSION ON LIBRARIES AND INFORMATION SCIENCE 
SALARIES AND EXPENSES 
For necessary expenses for the National Commission on Librar-
ies and Information Science, established by the Act of July 20, 
1970 (PubUc Law 91-345, as amended), $1,495,000. 
NATIONAL COUNCIL ON DISABILITY 
SALARIES AND EXPENSES 
For expenses necessary for the National Council on Disability 
as authorized by title IV of the Rehabilitation Act of 1973, as 
amended, $2,615,000. 
NATIONAL EDUCATION GOALS PANEL 
For expenses necessary for the National Education Goals Panel, 
£is authorized by title II, part A of the Goals 2000: Educate America 
Act, $1,500,000. 
NATIONAL LABOR RELATIONS BOARD 
SALARIES AND EXPENSES 
For expenses necessary for the National Labor Relations Board 
to carry out the functions vested in it by the Labor-Management 
Relations Act, 1947, as amended (29 U.S.C. 141-167), and other 
laws, $216,438,000: Provided, That no part of this appropriation 
shall be available to organize or assist in organizing agricultural 
laborers or used in connection with investigations, hearings, direc-
tives, or orders concerning bargaining units composed of agricultural 
laborers as referred to in section 2(3) of the Act of July 5, 1935 
(29 U.S.C. 152), and as amended by the Labor-Management Rela-
tions Act, 1947, as amended, and as defined in section 3(f) of 
the Act of June 25, 1938 (29 U.S.C. 203), and including in said 
definition employees engaged in the maintenance and operation 
of ditches, canals, reservoirs, and waterways when maintained or 
operated on a mutual, nonprofit basis and at least 95 percent 
of the water stored or supplied thereby is used for farming purposes. 
114 STAT. 2763A-66 
PUBLIC LAW 106-554—APPENDIX A 
NATIONAL MEDIATION BOARD 
SALARIES AND EXPENSES 
For expenses necessary to carry out the provisions of the Rail-
way Labor Act, as amended (45 U.S.C. 151-188), including emer-
gency boards appointed by the President, $10,400,000. 
OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 
SALARIES AND EXPENSES 
For expenses necessary for the Occupational Safety and Health 
Review Commission (29 U.S.C. 661), $8,720,000. 
RAILROAD RETIREMENT BOARD 
DUAL B E N E F I T S PAYMENTS ACCOUNT 
For payment to the Dual Benefits Payments Account, author-
ized under section 15(d) of the Railroad Retirement Act of 1974, 
$160,000,000, which shall include amounts becoming available in 
fiscal year 2001 pursuant to section 224(c)(1)(B) of Public Law 
98-76; and in addition, an amoimt, not to exceed 2 percent of 
the amount provided herein, shall be available proportional to the 
amount by which the product of recipients and the average benefit 
received exceeds $160,000,000: Provided, That the total amount 
provided herein shall be credited in 12 approximately equal amounts 
on the first day of each month in the fiscal year. 
FEDERAL PAYMENTS TO THE RAILROAD RETIREMENT ACCOUNTS 
For payment to the accounts established in the Treasury for 
the pajonent of benefits under the Railroad Retirement Act for 
interest earned on unnegotiated checks, $150,000, to remain avail-
able through September 30, 2002, which shall be the maximum 
amount available for payment pursuant to section 417 of Public 
Law 98-76. 
LIMITATION ON ADMINISTRATION 
For necessary expenses for the Railroad Retirement Board for 
administration of the Railroad Retirement Act and the Railroad 
Unemployment Insurance Act, $95,000,000, to be derived in such 
amounts as determined by the Board from the railroad retirement 
accounts and from moneys credited to the railroad unemployment 
insurance administration fund. 
LIMITATION ON THE OFFICE OF INSPECTOR GENERAL 
For expenses necessary for the Office of Inspector General 
for audit, investigatory and review activities, as authorized by the 
Inspector General Act of 1978, as amended, not more than 
$5,700,000, to be derived from the railroad retirement accounts 
and railroad unemployment insurance account: Provided, That none 
of the funds made available in any other paragraph of this Act 
may be transferred to the Office; used to carry out any such transfer; 
used to provide any office space, equipment, office supplies, commu-
nications facilities or services, maintenance services, or administra-
tive services for the Office; used to pay any salary, benefit, or 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-67 
award for any personnel of the Office; used to pay any other 
operating expense of the Office; or used to reimburse the Office 
for any service provided, or expense incurred, by the Office. 
SOCIAL SECURITY ADMINISTRATION 
PAYMENTS TO SOCIAL SECURITY TRUST FUNDS 
For pa3anent to the Federal Old-Age and Survivors Insurance 
and the Federal Disability Insurance trust funds, as provided under 
sections 201(m), 228(g), and 1131(b)(2) of the Social Security Act, 
$20,400,000. 
SPECIAL BENEFITS FOR DISABLED COAL MINERS 
For carrying out title IV of the Federal Mine Safety and Health 
Act of 1977, $365,748,000, to remain available until expended. 
For making, after July 31 of the current fiscal year, benefit 
payments to individuals under title IV of the Federal Mine Safety 
and Health Act of 1977, for costs incurred in the current fiscal 
year, such amounts as may be necessary. 
For making benefit pajonents under title IV of the Federal 
Mine Safety and Health Act of 1977 for the first quarter of fiscal 
year 2002, $114,000,000, to remain available until expended. 
SUPPLEMENTAL SECURITY INCOME PROGRAM 
For carr3dng out titles XI and XVI of the Social Security Act, 
section 401 of Public Law 92-603, section 212 of Public Law 93-
66, as amended, and section 405 of Public Law 95-216, including 
payment to the Social Security trust funds for administrative 
expenses incurred pursuant to section 201(g)(1) of the Social Secu-
rity Act, $23,043,000,000, to remain available until expended: Pro-
vided, That any portion of the funds provided to a State in the 
current fiscal year and not obligated by the State during that 
year shall be returned to the Treasury. 
In addition, $210,000,000, to remain available until September 
30, 2002, for payment to the Social Security trust funds for adminis-
trative expenses for continuing disability reviews as authorized 
by section 103 of Public Law 104-121 and section 10203 of Public 
Law 105-33. The term "continuing disability reviews" means 
reviews and redeterminations as defined under section 201(g)(1)(A) 
of the Social Security Act, as amended. 
For making, after June 15 of the current fiscal year, benefit 
payments to individuals under title XVI of the Social Security 
Act, for unanticipated costs incurred for the current fiscal year, 
such sums as may be necessary. 
For making benefit payments under title XVI of the Social 
Security 
Act 
for 
the 
first 
quarter 
of 
fiscal 
year 
2002, 
$10,470,000,000, to remain available until expended. 
LIMITATION ON ADMINISTRATIVE EXPENSES 
For necessary expenses, including the hire of two passenger 
motor vehicles, and not to exceed $10,000 for official reception 
gmd representation expenses, not more than $6,583,000,000 may 
be expended, as authorized by section 201(g)(1) of the Social Secu-
rity Act, from any one or all of the trust funds referred to therein: 
Provided, That not less than $1,800,000 shall be for the Social 
114 STAT. 2763A-68 
PUBLIC LAW 10&-554—APPENDIX A 
Security Advisory Board: Provided further. That unobligated bal-
ances at the end of fiscal year 2001 not needed for fiscal year 
2001 shall remain available until expended to invest in the Social 
Security Administration information technology and telecommuni-
cations hardware and software infrastructure, including related 
equipment and non-payroll administrative expenses associated 
solely with this information technology and telecommunications 
infrastructure: Provided further, That reimbursement to the trust 
funds under this heading for expenditures for official time for 
employees of the Social Security Administration pursuant to section 
7131 of title 5, United States Code, and for facilities or support 
services for labor organizations pursuant to policies, regulations, 
or procedures referred to in section 7135(b) of such title shall 
be made by the Secretary of the Treasury, with interest, from 
amounts in the general fund not otherwise appropriated, as soon 
as possible after such expenditures are made. 
From funds provided under the previous paragraph, notwith-
standing the provision under this heading in Public Law 106-
113 regarding unobligated balances at the end of fiscal year 2000 
not needed for such fiscal year, an amount not to exceed $50,000,000 
from such unobligated balances shall, in addition to funding already 
available under this heading for fiscal year 2001, be available 
for necessary expenses. 
From funds provided under the first paragraph, not less than 
$200,000,000 shall be available for conducting continuing disability 
reviews. 
In addition to funding already available under this heading, 
and subject to the same terms and conditions, $450,000,000, to 
remain available until September 30, 2002, for continuing disability 
reviews as authorized by section 103 of Public Law 104-121 and 
section 10203 of Public Law 105-33. The term "continuing disability 
reviews" means reviews and redeterminations as defined under 
section 201(g)(1)(A) of the Social Security Act, as amended. 
In addition, $91,000,000 to be derived from administration fees 
in excess of $5.00 per supplementary payment collected pursuant 
to section 1616(d) of the Social Security Act or section 212(b)(3) 
of Public Law 93-66, which shall remain available until expended. 
To the extent that the amounts collected pursuant to such section 
1616(d) or 212(b)(3) in fiscal year 2001 exceed $91,000,000, the 
amounts shall be available in fiscal year 2002 only to the extent 
provided in advance in appropriations Acts. 
From funds previously appropriated for this purpose, any 
unobligated balances at the end of fiscal year 2000 shall be available 
to continue Federal-State partnerships which will evaluate means 
to promote Medicare buy-in programs targeted to elderly and dis-
abled individuals under titles XVIII and XIX of the Social Security 
Act. 
From funds provided under the first paragraph, up to 
$6,000,000 shall be available for implementation, development, 
evaluation, and other costs associated with administration of section 
302 of the Ticket to Work and Work Incentives Improvement Act. 
OFFICE OF INSPECTOR GENERAL 
(INCLUDING TRANSFER OF FUNDS) 
For expenses necessary for the Office of Inspector General 
in carrying out the provisions of the Inspector General Act of 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-69 
1978, as amended, $16,944,000, together with not to exceed 
$52,500,000, to be transferred sind expended as authorized by sec-
tion 201(g)(1) of the Social Security Act from the Federal Old-
Age and Survivors Insurance Trust Fund and the Federal Disability 
Insurance Trust Fund. 
In addition, an amount not to exceed 3 percent of the total 
provided in this appropriation may be transferred from the "Limita-
tion on Administrative Expenses", Social Security Administration, 
to be merged with this account, to be available for the time and 
purposes for which this account is available: Provided, That notice 
of such transfers shall be transmitted promptly to the Committees 
on Appropriations of the House and Senate. 
UNITED STATES INSTITUTE OF PEACE 
OPERATING EXPENSES 
For necessary expenses of the United States Institute of Peace 
as authorized in the United States Institute of Peace Act, 
$15,000,000. 
TITLE V—GENERAL PROVISIONS 
SEC. 501. The Secretaries of Labor, Health and Human Serv-
ices, and Education are authorized to transfer unexpended balgmces 
of prior appropriations to accounts corresponding to current appro-
priations provided in this Act: Provided, That such transferred 
balances are used for the same purpose, and for the same periods 
of time, for which they were originally appropriated. 
SEC. 502. No part of any appropriation contained in this Act 
shall remain available for obligation beyond the current fiscal year 
unless expressly so provided herein. 
SEC. 503. (a) No part of any appropriation contained in this 
Act shall be used, other than for normal and recognized executive-
legislative relationships, for publicity or propaganda purposes, for 
the preparation, distribution, or use of any kit, pamphlet, booklet, 
publication, radio, television, or video presentation designed to sup-
port or defeat legislation pending before the Congress or any State 
legislature, except in presentation to the Congress or any State 
legislature itself. 
(b) No part of any appropriation contained in this Act shall 
be used to pay the salary or expenses of any grant or contract 
recipient, or agent acting for such recipient, related to any activity 
designed to influence legislation or appropriations pending before 
the Congress or any State legislature. 
SEC. 504. The Secretaries of Labor and Education are author-
ized to make available not to exceed $20,000 and $15,000, respec-
tively, from funds available for salaries and expenses under titles 
I and III, respectively, for official reception and representation 
expenses; the Director of the Federal Mediation and Conciliation 
Service is authorized to make available for official reception and 
representation expenses not to exceed $2,500 from the funds avail-
able for "Salaries and expenses. Federal Mediation and Conciliation 
Service"; and the Chairman of the National Mediation Board is 
authorized to make available for official reception and representa-
tion expenses not to exceed $2,500 from funds available for "Salaries 
and expenses, National Mediation Board". 
114 STAT. 2763A-70 
PUBLIC LAW 106-554—APPENDIX A 
SEC. 505. Notwithstanding any other provision of this Act, 
no funds appropriated under this Act shall be used to carry out 
any program of distributing sterile needles or syringes for the 
hypodermic injection of any illegal drug. 
SEC. 506. (a) It is the sense of the Congress that, to the 
greatest extent practicable, all equipment and products purchased 
with funds made available in this Act should be American-made. 
(b) In providing financial assistance to, or entering into any 
contract with, any entity using funds made available in this Act, 
the head of each Federal agency, to the greatest extent practicable, 
shall provide to such entity a notice describing the statement made 
in subsection (a) by the Congress. 
(c) If it has been finally determined by a court or Federal 
agency that any person intentionally affixed a label bearing a 
"Made in America" inscription, or any inscription with the same 
meaning, to £iny product sold in or shipped to the United States 
that is not made in the United States, the person shall be ineligible 
to receive any contract or subcontract made with funds made avail-
able in this Act, pursuant to the debarment, suspension, and ineli-
gibility procedures described in sections 9.400 through 9.409 of 
title 48, Code of Federal Regulations. 
SEC. 507. When issuing statements, press releases, requests 
for proposals, bid solicitations and other documents describing 
projects or programs funded in whole or in part with Federal 
money, all grantees receiving Federal funds included in this Act, 
including but not limited to State and local governments and recipi-
ents of Federal research grants, shall clearly state: (1) the percent-
age of the total costs of the program or project which will be 
financed with Federal money; (2) the dollar amount of Federal 
funds for the project or program; and (3) percentage and dollar 
amount of the total costs of the project or program that will be 
financed by non-governmental sources. 
SEC. 508. (a) None of the funds appropriated under this Act, 
and none of the funds in any trust fund to which funds are appro-
priated under this Act, shall be expended for any abortion. 
(b) None of the funds appropriated under this Act, and none 
of the funds in any trust fund to which funds are appropriated 
under this Act, shall be expended for health benefits coverage 
that includes coverage of abortion. 
(c) The term "health benefits coverage" means the package 
of services covered by a managed care provider or organization 
pursuant to a contract or other arrangement. 
SEC. 509. (a) The limitations established in the preceding sec-
tion shall not apply to an abortion— 
(1) if the pregnancy is the result of an act of rape or 
incest; or 
(2) in the case where a woman suffers from a physical 
disorder, physical injury, or physical illness, including a life-
endangering physical condition caused by or arising from the 
pregnancy itself, that would, as certified by a physician, place 
the woman in danger of death unless an abortion is performed. 
(b) Nothing in the preceding section shall be construed as 
prohibiting the expenditure by a State, locality, entity, or private 
person of State, local, or private funds (other than a State's or 
locality's contribution of Medicaid matching funds). 
(c) Nothing in the preceding section shall be construed as 
restricting the ability of any managed care provider from offering 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-71 
abortion coverage or the ability of a State or locality to contract 
separately with such a provider for such coverage with State funds 
(other than a State's or locality's contribution of Medicaid matching 
funds). 
SEC. 510. (a) None of the funds made available in this Act 
may be used for— 
(1) the creation of a human embryo or embryos for research 
purposes; or 
(2) research in which a human embryo or embryos are 
destroyed, discarded, or knowingly subjected to risk of injury 
or death greater than that allowed for research on fetuses 
in utero under 45 CFR 46.208(a)(2) and section 498(b) of the 
Public Health Service Act (42 U.S.C. 289g(b)). 
(b) For purposes of this section, the term "human embryo 
or embryos" includes any organism, not protected as a human 
subject under 45 CFR 46 as of the date of the enactment of this 
Act, that is derived by fertilization, parthenogenesis, cloning, or 
any other means from one or more human gametes or human 
diploid cells. 
SEC. 511. (a) None of the funds made available in this Act 
may be used for any activity that promotes the legalization of 
any drug or other substance included in schedule I of the schedules 
of controlled substances established by section 202 of the Controlled 
Substances Act (21 U.S.C. 812). 
(b) The limitation in subsection (a) shall not apply when there 
is significant medical evidence of a therapeutic advantage to the 
use of such drug or other substance or that federally sponsored 
clinical trials are being conducted to determine therapeutic advan-
tage. 
SEC. 512. None of the funds made available in this Act may 
be obligated or expended to enter into or renew a contract with 
an entity if— 
(1) such entity is otherwise a contractor with the United 
States and is subject to the requirement in section 4212(d) 
of title 38, United States Code, regarding submission of an 
annual report to the Secretary of Labor concerning employment 
of certain veterans; £ind 
(2) such entity has not submitted a report as required 
by that section for the most recent year for which such require-
ment was applicable to such entity. 
SEC. 513. (a) Section 403(a)(5)(H)(iii) of the Social Security 
Act (42 U.S.C. 603(a)(5)(H)(iii)) is amended by striking "2001" and 
inserting "2005". 
(b) Section 403(a)(5)(H) of such Act (42 U.S.C. 603(a)(5)(G)) 
is amended by adding at the end the following: 
"(iv) INTERIM REPORT.—Not later than January 1, 
2002, the Secretary shall submit to the Congress an 
interim report on the evaluations referred to in clause 
(i).". 
SEC. 514. None of the funds made available in this Act may 
be used to promulgate or adopt any final standard under section 
1173(b) of the Social Security Act (42 U.S.C. 1320d-2(b)) providing 
for, or providing for the assignment of, a unique health identifier 
for an individual (except in an individual's capacity as an employer 
or a health care provider), until legislation is enacted specifically 
approving the standard. 
114 STAT. 2763A-72 
PUBLIC LAW 106-554—APPENDIX A 
SEC. 515. Section 410(b) of The Ticket to Work and Work 
Incentives Improvement Act of 1999 (Public Law 106-170) is amend-
ed by striking "2009" both places it appears and inserting "2001". 
SEC. 516. (a) HUMAN PAPILLOMAVIRUS.—Part B of title III 
of 
the Public Health Services Act (42 U.S.C. 243 et seq.) is amended 
by inserting before section 318 the following section: 
"HUMAN PAPILLOMAVIRUS 
"SEC. 317P. (a) SURVEILLANCE.— 
"(1) IN GENERAL.—^The Secretary, acting through the Cen-
ters for Disease Control and Prevention, shall— 
"(A) enter into cooperative agreements with States and 
other entities to conduct sentinel surveillance or other spe-
cial studies that would determine the prevalence in various 
age groups and populations of specific types of human 
papillomavirus (referred to in this section as *HPV) in 
different sites in various regions of the United States, 
through collection of special specimens for HPV using a 
variety of laboratory-based testing and diagnostic tools; 
and 
"(B) develop and analyze data from the HPV sentinel 
surveillance system described in subparagraph (A). 
"(2) REPORT.—^The Secretary shall make a progress report 
to the Congress with respect to paragraph (1) no later than 
1 year after the effective date of this section. 
"(b) PREVENTION ACTIVITIES; EDUCATION PROGRAM.— 
"(1) IN GENERAL.—^The Secretary, acting through the Cen-
ters for Disease Control and Prevention, shall conduct preven-
tion research on HPV, including— 
"(A) behavioral and other research on the impact of 
HPV-related diagnosis on individuals; 
"(B) formative research to assist with the development 
of educational messages and information for the public, 
for patients, and for their partners about HPV; 
"(C) surveys of physician and public knowledge, atti-
tudes, and practices about genital HPV infection; and 
"(D) upon the completion of and based on the findings 
under subparagraphs (A) through (C), develop and dissemi-
nate educational materials for the public and health care 
providers regarding HPV and its impact and prevention. 
"(2) REPORT; FINAL PROPOSAL.—The Secretary shall make 
a progress report to the Congress with respect to paragraph 
(1) not later than 1 year after the effective date of this section, 
and shall develop a final report not later than 3 years after 
such effective date, including a detailed summary of the signifi-
cant findings and problems and the best strategies to prevent 
future infections, based on available science. 
"(c) HPV EDUCATION AND PREVENTION.— 
"(1) IN GENERAL.—The Secretary shall prepare and distrib-
ute educational materials for health care providers and the 
public that include information on HPV. Such materials shall 
address— 
"(A) modes of transmission; 
"(B) consequences of infection, including the link 
between HPV and cervical cancer; 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-73 
"(C) the available scientific evidence on the effective-
ness or lack of effectiveness of condoms in preventing infec-
tion with HPV; and 
"(D) the importance of regular Pap smears, and other 
diagnostics for early intervention and prevention of cervical 
cancer purposes in preventing cervical cancer. 
"(2) 
MEDICALLY 
ACCURATE 
INFORMATION.—Educational 
material under paragraph (1), and all other relevant edu-
cational and prevention materials prepared and printed from 
this date forward for the public and health care providers 
by the Secretary (including materials prepared through the 
Food and Drug Administration, the Centers for Disease Control 
and Prevention, and the Health Resources and Services 
Administration), or by contractors, grantees, or subgrantees 
thereof, that are specifically designed to address STDs including 
HPV shall contain medically accurate information regarding 
the effectiveness or lack of effectiveness of condoms in prevent-
ing the STD the materials are designed to address. Such 
requirement only applies to materials mass produced for the 
public and health care providers, and not to routine communica-
tions.". 
(b) LABELING OF CONDOMS.—The Secretary of Health and 
Human Services shall reexamine existing condom labels that are 
authorized pursuant to the Federal Food, Drug, and Cosmetic Act 
to determine whether the labels are medically accurate regarding 
the overall effectiveness or lack of effectiveness of condoms in 
preventing sexually transmitted diseases, including HPV. 
SEC. 517. Section 403(o) of the Food, Drug, and Cosmetic Act 
(21 U.S.C. 343(o)) is repealed. Subsections (c) and (d) of section 
4 of the Saccharin Study and Labeling Act are repealed. 
SEC. 518. (a) Title VIII of the Social Security Act is amended 
by inserting after section 810 (42 U.S.C. 1010) the following new 
section: 
"SEC. 810A. OPTIONAL FEDERAL ADMINISTRATION OF STATE REC-
OGNITION PAYMENTS. 
"(a) IN GENERAL.—The Commissioner of Social Security may 
enter into an agreement with any State (or political subdivision 
thereof) that provides cash payments on a regular basis to individ-
uals entitled to benefits under this title under which the Commis-
sioner of Social Security shall make such payments on behalf of 
such State (or subdivision). 
"(b) AGREEMENT TERMS.— 
"(1) IN GENERAL.—Such agreement shall include such terms 
as the Commissioner of Social Security finds necessary to 
achieve efficient and effective administration of both this title 
and the State program. 
"(2) FINANCIAL TERMS.—Such agreement shall provide for 
the State to pay the Commissioner of Social Security, at such 
times and in such installments as the parties may specify— 
"(A) an amount equal to the expenditures made by 
the Commissioner of Social Security pursuant to such 
agreement as pa3anents to individuals on behalf of such 
State; and 
114 STAT. 2763A-74 
PUBLIC LAW 106-554—APPENDIX A 
"(B) an administration fee to reimburse the administra-
tive expenses incurred by the Commissioner of Social Secu-
rity in making payments to individuals on behalf of the 
State. 
"(c) SPECIAL DISPOSITION OF ADMINISTRATION FEES.—Adminis-
tration fees, upon collection, shall be credited to a special fund 
established in the Treasury of the United States for State recogni-
tion payments for certain World War II veterans. The amounts 
so credited, to the extent and in the amounts provided in advance 
in appropriations Acts, shall be available to defray expenses 
incurred in carrying out this title.", 
(b) CONFORMING AMENDMENTS.— 
(1) The table of contents of title VIII of the Social Security 
Act is amended by inserting after 
"Sec. 810. Other administrative provisions." 
the following: 
"Sec. 810A. Optional Federal administration of State recognition pajonents.". 
(2) Section 1129A(e) of the Social Security Act (42 U.S.C. 
1320a-8a(e)) is amended— 
(A) by inserting "VIII or" after "benefits under"; 
(B) by inserting "810A or" after "agreement under sec-
tion"; 
(C) by inserting "lOlOA or" before "1382(e)(a)"; and 
(D) by inserting ", as the case may be" immediately 
before the period. 
SEC. 519. Section 1612(a)(1) of the Social Security Act (42 
U.S.C. 1382(a) is amended— 
(1) in subparagraph (A), by inserting "but without the 
application of section 210(j)(3)" immediately before the semi-
colon; and 
(2) in subparagraph (B), by— 
(A) striking "and the last" and inserting "the last"; 
and 
(B) inserting ", and section 210(j)(3)" after "subsection 
(a)". 
SEC. 520. Amounts made available under this Act for the 
administrative and related expenses for departmental management 
for the Department of Labor, the Department of Health and Human 
Services, and the Department of Education shall be reduced on 
a pro rata basis by $25,000,000: Provided, That this provision 
shall not apply to the Food and Drug Administration and the 
Indian Health Service. 
TITLE VI—ASSETS FOR INDEPENDENCE 
SEC. 601. SHORT TITLE. 
This title may be cited as the "Assets for Independence Act 
Amendments of 2000". 
SEC. 602. MATCHING CONTRIBUTIONS UNAVAILABLE FOR EMERGENCY 
WITHDRAWALS. 
Section 404(5)(A)(v) of the Assets for Independence Act (42 
U.S.C. 604 note) is amended by striking ", or enabling the eligible 
individual to make an emergency withdrawal". 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-75 
SEC. 603. ADDITIONAL QUALIFIED ENTITIES. 
Section 404(7)(A) of the Assets for Independence Act (42 U.S.C. 
604 note) is amended— 
(1) in clause (i), by striking "or" at the end thereof; 
(2) in clause (ii), by striking the period at the end and 
inserting "; or"; and 
(3) by adding at the end the following new clause: 
"(iii) an entity that— 
"(I)is— 
"(aa) a credit union designated as a low-
income credit union by the National Credit 
Union Administration (NCUA); or 
"(bb) an organization designated as a 
community development financial institution 
by the Secretary of the Treasury (or the 
Community Development Financial Institu-
tions Fund); and 
"(II) can demonstrate a collaborative relation-
ship with a local community-based organization 
whose activities are designed to address poverty 
in the community and the needs of community 
members for economic independence and stabil-
ity-". 
SEC. 604. HOME PURCHASE COSTS. 
Section 404(8)(B)(i) of the Assets for Independence Act (42 
U.S.C. 604 note) is amended by striking "100" and inserting "120". 
SEC. 605. mCKEASED SET-ASIDE FOR ECONOMIC LITERACY TRAINING 
AND ADMINISTRATIVE COSTS. 
Section 407(c)(3) of the Assets for Independence Act (42 U.S.C. 
604 note) is amended— 
(1) by striking "9.5" and inserting "15"; and 
(2) by inserting after the first sentence the following: "Of 
the total amount specified in this paragraph, not more than 
7.5 percent shall be used for administrative functions under 
paragraph (1)(C), including program management, reporting 
requirements, recruitment and enrollment of individuals, and 
monitoring. The remainder of the total amount specified in 
this paragraph (not including the amount specified for use 
for the purposes described in paragraph (1)(D)) shall be used 
for nonadministrative functions described in paragraph (1)(A), 
including case management, budgeting, economic literacy, and 
credit counseling. If the cost of nonadministrative functions 
described in paragraph (1)(A) is less than 5.5 percent of the 
total amount specified in this paragraph, such excess funds 
may be used for administrative functions.". 
SEC. 606. ALTERNATIVE ELIGIBILITY CRITERIA. 
Section 408(a)(1) of the Assets for Independence Act (42 U.S.C. 
604 note) is amended by striking "does not exceed" and inserting 
"is equal to or less than 200 percent of the poverty line (as deter-
mined by the Office of Management and Budget) or". 
SEC. 607. REVISED ANNUAL PROGRESS REPORT DEADLINE. 
(a) IN GENERAL.—Section 412(c) of the Assets for Independence 
Act (42 U.S.C. 604 note) is amended by striking "calendar" and 
inserting "project". 
114 STAT. 2763A-76 
PUBLIC LAW 106-554—APPENDIX A 
(b) TRANSITIONAL DEADLINE.—Notwithstanding the amendment 
made by subsection (a), the submission of the initial report of 
a quaHfied entity under section 412(c) shall not be required prior 
to the date that is 90 days after the date of enactment of this 
title. 
SEC. 608. REVISED INTERIM EVALUATION REPORT DEADLINE. 
(a) IN GENERAL.—Section 414(d)(1) of the Assets for Independ-
ence Act (42 U.S.C. 604 note) is amended by striking "calendar" 
and inserting "project". 
(b) TRANSITIONAL DEADLINE.—^Notwithstanding the amendment 
made by subsection (a), the submission of the initial interim report 
of the Secretary under section 412(c) shall not be required prior 
to the date that is 90 days after the date of enactment of this 
title. 
SEC. 
609. 
INCREASED 
APPROPRIATIONS 
FOR 
EVALUATION 
EXPENSES. 
Subsection (e) of section 414 of the Assets for Independence 
Act (42 U.S.C. 604 note) is amended to read as follows: 
"(e) EVALUATION EXPENSES.—Of the amount 
appropriated 
under section 416 for a fiscal year, the Secretary may expend 
not more than $500,000 for such fiscal year to carry out the objec-
tives of this section.". 
SEC. 610. NO REDUCTION IN BENEFITS. 
Section 415 of the Assets for Independence Act (42 U.S.C. 
604 note) is amended to read as follows: 
"SEC. 415. NO REDUCTION IN BENEFITS. 
"Notwithstanding any other provision of Federal law (other 
than the Internal Revenue Code of 1986) that requires consideration 
of one or more financial circumstances of an individual, for the 
purpose of determining eligibility to receive, or the amount of, 
any assistance or benefit authorized by such law to be provided 
to or for the benefit of such individual, funds (including interest 
accruing) in an individual development account under this Act 
shall be disregarded for such purpose with respect to any period 
during which such individual maintains or makes contributions 
into such an account.". 
TITLE VII—PHYSICAL EDUCATION FOR PROGRESS ACT 
SEC. 701. PHYSICAL EDUCATION FOR PROGRESS. Title X of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 8001 
et seq.) is amended by adding at the end the following: 
"PART L—PHYSICAL EDUCATION FOR 
PROGRESS 
"SEC. 10999A. SHORT TITLE. 
"This part may be cited as the 'Physical Education for Progress 
Act'. 
"SEC. 10999B. PURPOSE. 
"The purpose of this part is to award grants and contracts 
to local educational agencies to enable the local educational agencies 
to initiate, expand and improve physical education programs for 
all kindergarten through 12th grade students. 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-77 
"SEC. 10999C. FINDINGS. 
"Congress makes the following findings: 
"(1) Physical education is essential to the development 
of growing children. 
"(2) Physical education helps improve the overall health 
of children by improving their cardiovascular endursmce, mus-
cular strength and power, and flexibility, and by enhsincing 
weight regulation, bone development, posture, skillful moving, 
active lifestyle habits, and constructive use of leisure time. 
"(3) Physical education helps improve the self esteem, inter-
personal relationships, responsible behavior, and independence 
of children. 
"(4) Children who participate in high quality dsdly physical 
education programs tend to be more healthy and physically 
fit. 
"(5) The percentage of young people who are overweight 
has more than doubled in the 30 years preceding 1999. 
"(6) Low levels of activity contribute to the high prevalence 
of obesity among children in the United States. 
"(7) Obesity related diseases cost the United States econ-
omy more than $100,000,000,000 every year. 
"(8) Inactivity and poor diet cause at least 300,000 deaths 
a year in the United States. 
"(9) Physically fit adults have significantly reduced risk 
factors for heart attacks and stroke. 
"(10) Children are not as active as they should be and 
fewer than one in four children get 20 minutes of vigorous 
activity every day of the week. 
"(11) The Surgeon General's 1996 Report on Physical Activ-
ity and Health, and the Centers for Disease Control and Preven-
tion, recommend daily physical education for all students in 
kindergarten through grade 12. 
"(12) Twelve years sifter Congress passed House Concurrent 
Resolution 97, 100th Congress, agreed to December 11, 1987, 
encouraging State and local governments and local educational 
agencies to provide high quality daily physical education pro-
grams for all children in kindergarten through grade 12, little 
progress has been made. 
"(13) Every student in our Nation's schools, from kinder-
garten through grade 12, should have the opportunity to partici-
pate in quality physical education. It is the unique role of 
quality physical education programs to develop the health-
related fitness, physical competence, and cognitive understand-
ing about physical activity for all students so that the students 
can adopt healthy and physically active lifestyles. 
"SEC. 10999D. PROGRAM AUTHORIZED. 
"The Secretary is authorized to award grants to, and enter 
into contracts with, local educational agencies to pay the Federal 
share of the costs of initiating, expanding, and improving physical 
education programs for kindergarten through grade 12 students 
b y -
"(1) providing equipment and support to enable students 
to actively participate in physical education activities; and 
"(2) providing funds for staff and teacher training and 
education. 
114 STAT. 2763A-78 
PUBLIC LAW 106-554—APPENDIX A 
"SEC. 10999E. APPLICATIONS; PROGRAM ELEMENTS. 
"(a) APPLICATIONS.—Each local educational agency desiring a 
grant or contract under this part shall submit to the Secretary 
an application that contains a plan to initiate, expand, or improve 
physical education programs in the schools served by the agency 
in order to make progress toward meeting State standards for 
physical education. 
"(b) PROGRAM ELEMENTS.—^A physical education 
program 
described in any application submitted under subsection (a) may 
provide— 
"(1) fitness education and assessment to help children 
understand, improve, or maintain their physical well-being; 
"(2) instruction in a variety of motor skills and physical 
activities designed to enhance the physical, mental, and social 
or emotional development of every child; 
"(3) development of cognitive concepts about motor skill 
and physical fitness that support a lifelong healthy lifestyle; 
"(4) opportunities to develop positive social and cooperative 
skills through physical activity participation; 
"(5) instruction in healthy eating habits and good nutrition; 
and 
"(6) teachers of physical education the opportunity for 
professional development to stay abreast of the latest research, 
issues, and trends in the field of physical education. 
"(c) SPECIAL RULE.—For the purpose of this part, extra-
curricular activities such as team sports and Reserve Officers' Train-
ing Corps (ROTC) program activities shall not be considered as 
part of the curriculum of a physical education program assisted 
under this part. 
"SEC. 10999F. PROPORTIONALITY. 
"The Secretary shall ensure that grants awarded and contracts 
entered into under this part shall be equitably distributed between 
local educational agencies serving urban and rural areas, and 
between local educational agencies serving large and small numbers 
of students. 
"SEC. 10999G. PRIVATE SCHOOL STUDENTS AND HOME-SCHOOLED STU-
DENTS. 
"An application for funds under this part may provide for 
the participation, in the activities funded under this part, of— 
"(1) home-schooled children, and their parents and teach-
ers; or 
"(2) children enrolled in private nonprofit elementary 
schools or secondary schools, and their parents and teachers. 
"SEC. 10999H. REPORT REQUIRED FOR CONTINUED FUNDING. 
"As a condition to continue to receive grant or contract funding 
after the first year of a multiyear grant or contract under this 
part, the administrator of the grant or contract for the local edu-
cational agency shall submit to the Secretary an annual report 
that describes the activities conducted during the preceding year 
and demonstrates that progress has been made toward meeting 
State standards for physical education. 
"SEC. 109991. REPORT TO CONGRESS. 
"The Secretary shall submit a report to Congress not later 
than June 1, 2003, that describes the programs assisted under 
PUBLIC LAW 106-554r-APPENDIX A 
114 STAT. 2763A-79 
this part, documents the success of such programs in improving 
physical fitness, and makes such recommendations as the Secretary 
determines appropriate for the continuation and improvement of 
the programs assisted under this part. 
"SEC. 10999J. ADMINISTRATIVE COSTS. 
"Not more than 5 percent of the grant or contract funds made 
available to a local educational agency under this part for any 
fiscal year may be used for administrative costs. 
"SEC. 10999K. FEDERAL SHARE; SUPPLEMENT NOT SUPPLANT. 
"(a) FEDERAL SHARE.—The Federal share under this part may 
not exceed— 
"(1) 90 percent of the total cost of a project for the first 
year for which the project receives assistance under this part; 
and 
"(2) 75 percent of such cost for the second and each subse-
quent such year. 
"(b) SUPPLEMENT NOT SUPPLANT.—Funds made available under 
this part shall be used to supplement and not supplant other 
Federal, State and local funds available for physical education 
activities. 
"SEC. 10999L, AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated $30,000,000 for fiscal 
year 2001, $70,000,000 for fiscal year 2002, and $100,000,000 for 
each of the fiscal years 2003 through 2005, to carry out this part. 
Such funds shall remain available until expended.". 
TITLE VIII—EARLY LEARNING OPPORTUNITIES 
SEC. 801. SHORT TITLE; FINDINGS. 
(a) SHORT TITLE.—^This title may be cited as the "Early Learn-
ing Opportunities Act". 
(b) FINDINGS.—Congress finds that— 
(1) medical research demonstrates that adequate stimula-
tion of a young child's brain between birth and age 5 is critical 
to the physical development of the young child's brain; 
(2) parents are the most significant and effective teachers 
of their children, and they alone are responsible for choosing 
the best early learning opportunities for their child; 
(3) parent education and parent involvement are critical 
to the success of any early learning program or activity; 
(4) the more intensively parents are involved in their child's 
early learning, the greater the cognitive and noncognitive bene-
fits to their children; 
(5) many parents have difficulty finding the information 
and support the parents seek to help their children grow to 
their full potential; 
(6) each day approximately 13,000,000 young children, 
including 6,000,000 infants or toddlers, spend some or all of 
their day being cared for by someone other than their parents; 
(7) quality early learning programs, including those 
designed to promote effective parenting, can increase the lit-
eracy rate, the secondary school graduation rate, the employ-
ment rate, and the college enrollment rate for children who 
have participated in voluntary early learning programs and 
activities; 
114 STAT. 2763A-80 
PUBLIC LAW 106-554—APPENDIX A 
(8) early childhood interventions can yield substantial 
advantages to participants in terms of emotional and cognitive 
development, education, economic well-being, and health, with 
the latter two advantages applying to the children's families 
as well; 
(9) participation in quality early learning programs, includ-
ing those designed to promote effective parenting, can decrease 
the future incidence of teenage pregnancy, welfare dependency, 
at-risk behaviors, and juvenile delinquency for children; 
(10) several cost-benefit analysis studies indicate that for 
each $1 invested in quality early learning programs, the Federal 
Government can save over $5 by reducing the number of chil-
dren and families who participate in Federal Government pro-
grams like special education and welfare; 
(11) for children placed in the care of others during the 
workday, the low salaries paid to the child care staff, the 
lack of career progression for the staff, and the lack of child 
development specialists involved in early learning and child 
care programs, make it difficult to attract and retain the quality 
of staff necessary for a positive early learning experience; 
(12) Federal Government support for early learning has 
primarily focused on out-of-home care programs like those 
established under the Head Start Act, the Child Care and 
Development Block Grant of 1990, and part C of the Individuals 
with Disabilities Education Act, and these programs— 
(A) serve far fewer than half of all eligible children; 
(B) are not primarily designed to provide support for 
parents who care for their young children in the home; 
and 
(C) lack a means of coordinating early learning 
opportunities in each community; and 
(13) by helping communities increase, expand, and better 
coordinate early learning opportunities for children and their 
families, the productivity and creativity of future generations 
will be improved, and the Nation will be prepared for continued 
leadership in the 21st century. 
SEC. 802. PURPOSES. 
The purposes of this title are— 
(1) to increase the availability of voluntary programs, serv-
ices, and activities that support early childhood development, 
increase parent effectiveness, and promote the learning readi-
ness of young children so that yoimg children enter school 
ready to learn; 
(2) to support parents, child care providers, and caregivers 
who want to incorporate early learning activities into the daily 
lives of young children; 
(3) to remove barriers to the provision of an accessible 
system of early childhood learning programs in communities 
throughout the United States; 
(4) to increase the availability and affordability of profes-
sional development activities and compensation for caregivers 
and child care providers; and 
(5) to facilitate the development of community-based sys-
tems of collaborative service delivery models characterized by 
resource sharing, linkages between appropriate supports, and 
local planning for services. 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-81 
SEC. 803. DEFINITIONS. 
In this title: 
(1) CAREGIVER.—The term "caregiver" means an individual, 
including a relative, neighbor, or family friend, who regularly 
or frequently provides care, with or without compensation, for 
a child for whom the individual is not the parent. 
(2) CHILD CARE PROVIDER.—The term "child care provider" 
means a provider of non-residential child care services (includ-
ing center-based, family-based, and in-home child care services) 
for compensation who or that is legally operating under State 
law, and complies with applicable State and local requirements 
for the provision of child care services. 
(3) EARLY LEARNING.—^The term "early learning", used with 
respect to a program or activity, mesins learning designed to 
facilitate the development of cognitive, language, motor, and 
social-emotional skills for, and to promote learning readiness 
in, young children. 
(4) EARLY LEARNING PROGRAM.—^The term "early learning 
program" means— 
(A) a program of services or activities that helps par-
ents, caregivers, and child care providers incorporate early 
learning into the daily lives of young children; or 
(B) a program that directly provides early learning 
to young children. 
(5) INDIAN TRIBE.—^The term "Indian tribe" has the meaning 
given the term in section 4 of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 450b). 
(6) LOCAL COUNCIL.—The term "Local Council" means a 
Local Council established or designated under section 814(a) 
that serves one or more localities. 
(7) LOCALITY.—The term "locality" means a city, county, 
borough, township, or area served by another general purpose 
unit of local government, an Indian tribe, a Regional Corpora-
tion, or a Native Hawaiian entity. 
(8) PARENT.—The term "parent" means a biological parent, 
an adoptive parent, a stepparent, a foster parent, or a legal 
guardian of, or a person standing in loco parentis to, a child. 
(9) 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. 
(10) REGIONAL CORPORATION.—The term "Regional Cor-
poration" means an entity listed in section 419(4)(B) of the 
Social Security Act (42 U.S.C. 619(4)(B)). 
(11) SECRETARY.—^The term "Secretary" means the Sec-
retary of Health and Human Services. 
(12) STATE.—The term "State" means each of the several 
States of the United States, the District of Columbia, and 
the Commonwealth of Puerto Rico. 
(13) TRAINING.—The term "training" means instruction in 
early learning that— 
(A) is required for certification under State and local 
laws, regulations, and policies; 
(B) is required to receive a nationally or State recog-
nized credential or its equivalent; 
114 STAT. 2763A-82 
PUBLIC LAW 106-554—APPENDIX A 
(C) is received in a postsecondary education program 
focused on early learning or early childhood development 
in which the individual is enrolled; or 
(D) is provided, certified, or sponsored by an orggmiza-
tion that is recognized for its expertise in promoting early 
learning or early childhood development. 
(14) YOUNG CHILD.—The term "young child" means any 
child from birth to the age of mandatory school attendance 
in the State where the child resides. 
SEC. 804. PROHIBITIONS. 
(a) PARTICIPATION NOT REQUIRED.—No person, including a par-
ent, shall be required to participate in any program of early child-
hood education, early learning, parent education, or developmental 
screening pursuant to the provisions of this title. 
(b) RIGHTS OF PARENTS.—Nothing in this title shall be con-
strued to affect the rights of parents otherwise established in Fed-
eral, State, or local law. 
(c) PARTICULAR METHODS OR SETTINGS.—No entity that receives 
funds under this title shall be required to provide services under 
this title through a particular instructional method or in a particu-
lar instructional setting to comply with this title. 
(d) NONDUPLICATION.—^No funds provided under this title shall 
be used to carry out an activity funded under another provision 
of law providing for Federal child care or early learning programs, 
unless an expansion of such activity is identified in the local needs 
assessment and performance goals luider this title. 
SEC. 805. AUTHORIZATION AND APPROPRIATION OF FUNDS. 
There are authorized to be appropriated to the Department 
of Health and Human Services to carry out this title— 
(1) $750,000,000 for fiscal year 2001; 
(2) $1,000,000,000 for fiscal year 2002; 
(3) $1,500,000,000 for fiscal year 2003; and 
(4) such sums as may be necessary for each of the fiscal 
years 2004 and 2005. 
SEC. 806. COORDINATION OF FEDERAL PROGRAMS. 
(a) COORDINATION.—The Secretary and the Secretary of Edu-
cation shall develop mechanisms to resolve administrative and pro-
grammatic conflicts between Federal programs that would be a 
barrier to parents, caregivers, service providers, or children related 
to the coordination of services and funding for early learning pro-
grams. 
(b) USE OF EQUIPMENT AND SUPPLIES.—In the case of a collabo-
rative activity funded under this title and another provision of 
law providing for Federal child care or early learning programs, 
the use of equipment and nonconsumable supplies purchased with 
funds made available under this title or such provision shall not 
be restricted to children enrolled or otherwise participating in the 
program carried out under this title or such provision, during a 
period in which the activity is predominately funded under this 
title or such provision. 
SEC. 807. PROGRAM AUTHORIZED. 
(a) GRANTS.—From amounts appropriated under section 805 
the Secretary shall award grants to States to enable the States 
to award grants to Local Councils to pay the Federal share of 
PUBLIC LAW 106-554^APPENDIX A 
114 STAT. 2763A-83 
the cost of carrying out early learning programs in the locality 
served by the Local Council. 
(b) FEDERAL SHARE.— 
(1) IN GENERAL.—The Federal share of the cost described 
in subsections (a) and (e) shall be 85 percent for the first 
and second years of the grant, 80 percent for the third and 
fourth years of the grant, and 75 percent for the fifth and 
subsequent years of the grsint. 
(2) NON-FEDERAL SHARE.—The non-Federal share of the 
cost described in subsections (a) and (e) may be contributed 
in cash or in kind, fairly evaluated, including facilities, equip-
ment, or services, which may be provided from State or local 
public sources, or through donations from private entities. For 
the purposes, of this paragraph the term "facilities" includes 
the use of facilities, but the term "equipment" means donated 
equipment and not the use of equipment. 
(c) MAINTENANCE OF EFFORT.—The Secretary shall not award 
a grant under this title to any State unless the Secretary first 
determines that the total expenditures by the State and its political 
subdivisions to support early learning programs (other than funds 
used to pay the non-Federal share under subsection (b)(2)) for 
the fiscal year for which the determination is made is equal to 
or greater than such expenditures for the preceding fiscal year. 
(d) SUPPLEMENT NOT SUPPLANT.—^Amounts received under this 
title shall be used to supplement and not supplant other Federal, 
State, and local public funds expended to promote early learning. 
(e) SPECIAL RULE.—If funds appropriated to carry out this 
title are less than $150,000,000 for any fiscal year, the Secretary 
shall award grants for the fiscal year directly to Local Councils, 
on a competitive basis, to pay the Federal share of the cost of 
carrying out early learning programs in the locsdity served by 
the Local Council. In carr3dng out the preceding sentence— 
(1) subsection (c), subsections (b) and (c) of section 810, 
and paragraphs (1), (2), and (3) of section 811(a) shall not 
apply; 
(2) State responsibilities described in section 811(d) shall 
be carried out by the Local Coimcil with regard to the locality; 
(3) the Secretary shsdl provide such technical assistance 
and monitoring as necessary to ensure that the use of the 
funds by Local Councils and the distribution of the funds to 
Local Councils are consistent with this title; and 
(4) subject to paragraph (1), the Secretary shall assume 
the responsibilities of the Lead State Agency under this title, 
as appropriate. 
SEC. 808. USES OF FUNDS. 
(a) IN GENERAL.—Subject to section 810, grant funds under 
this title shall be used to pay for developing, operating, or enhancing 
voluntary early learning programs that are likely to produce sus-
tained gains in early learning. 
(b) LIMITED USES.—Subject to section 810, Lead State Agencies 
and Local Councils shall ensure that funds made available under 
this title to the agencies and Local Councils are used for three 
or more of the following activities: 
(1) Helping parents, caregivers, child care providers, and 
educators increase their capacity to facilitate the development 
of cognitive, language comprehension, expressive language, 
114 STAT. 2763A-84 
PUBLIC LAW 106-554—APPENDIX A 
social-emotional, and motor skills, and promote learning readi-
ness, 
(2) Promoting effective parenting. 
, (3) Enhancing early childhood literacy. 
(4) Developing linkages among early learning programs 
within a community and between early learning programs and 
health care services for young children. 
(5) Increasing access to early learning opportunities for 
young children with special needs, including developmental 
delays, by facilitating coordination with other programs serving 
such young children. 
(6) Increasing access to existing early learning programs 
by expanding the days or times that the young children are 
served, by expanding the number of young children served, 
or by improving the affordability of the programs for low-
income families. 
(7) Improving the quality of early learning programs 
through professional development and training activities, 
increased compensation, and recruitment and retention incen-
tives, for early learning providers. 
(8) Removing ancillary barriers to early learning, including 
transportation difficulties and absence of programs during non-
traditional work times. 
(c) REQUIREMENTS.—^Each Lead State Agency designated under 
section 810(c) and Local Councils receiving a grant under this 
title shall ensure— 
(1) that Local Councils described in section 814 work with 
local educational agencies to identify cognitive, social, emo-
tional, and motor developmental abilities which are necessary 
to support children's readiness for school; 
(2) that the programs, services, and activities assisted 
under this title will represent developmentally appropriate 
steps toward the acquisition of those abilities; and 
(3) that the programs, services, and activities assisted 
under this title collectively provide benefits for children cared 
for in their own homes as well as children placed in the care 
of others. 
(d) SLIDING SCALE PAYMENTS.—States and Local Councils 
receiving assistance under this title shall ensure that programs, 
services, and activities assisted under this title which customarily 
require a payment for such programs, services, or activities, adjust 
the cost of such programs, services, and activities provided to the 
individual or the individual's child based on the individual's ability 
to pay. 
SEC. 
8
0
9
. 
RESERVATIONS 
AND 
ALLOTMENTS. 
(a) RESERVATION FOR INDL\N TRIBES, ALASKA NATIVES, AND 
NATIVE HAWAIIANS.—^The Secretary shall reserve 1 percent of the 
total amount appropriated under section 805 for each fiscal year, 
to be allotted to Indian tribes. Regional Corporations, and Native 
Hawaiian entities, of which— 
(1) 0.5 percent shall be available to Indian tribes; and 
(2) 0.5 percent shall be available to Regional Corporations 
and Native Hawaiian entities. 
(b) ALLOTMENTS.—From the funds appropriated under this title 
for each fiscal year that are not reserved under subsection (a), 
the Secretary shall allot to each State the sum of— 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-85 
(1) an amount that bears the same ratio to 50 percent 
of such funds as the number of children 4 years of age and 
younger in the State bears to the number of such children 
in all States; and 
(2) an amount that bears the same ratio to 50 percent 
of such funds as the number of children 4 years of age and 
younger living in families with incomes below the poverty line 
in the State bears to the number of such children in all States. 
(c) MINIMUM ALLOTMENT.—No State shall receive an allotment 
under subsection (b) for a fiscal year in an amount that is less 
than .40 percent of the total amount appropriated for the fiscal 
year under this title. 
(d) AVAILABILITY OF FuNDS.^Any portion of the allotment to 
a State that is not expended for activities under this title in the 
fiscal year for which the allotment is made shall remain available 
to the State for two additional years, after which any unexpended 
funds shall be returned to the Secretary. The Secretary shall use 
the returned funds to carry out a discretionary grant program 
for research-based early learning demonstration projects. 
(e) DATA.—The Secretary shall make allotments under this 
title on the basis of the most recent data available to the Secretary. 
SEC. 810. GRANT ADMINISTRATION. 
(a) FEDERAL ADMINISTRATIVE COSTS.—The Secretary may 
use 
not more than 3 percent of the amount appropriated under section 
805 for a fiscal year to pay for the administrative costs of carrying 
out this title, including the monitoring and evaluation of State 
and local efforts. 
(b) STATE ADMINISTRATIVE COSTS.—A State that receives a 
grant under this title may use— 
(1) not more than 2 percent of the funds made available 
through the grant to carry out activities designed to coordinate 
early learning programs on the State level, including programs 
funded or operated by the State educational agency, health, 
children and family, and human service agencies, and any 
State-level collaboration or coordination council involving early 
learning and education, such as the entities funded under sec-
tion 640(a)(5) of the Head Start Act (42 U.S.C. 9835(a)(5)); 
(2) not more than 2 percent of the funds made available 
through the grant for the administrative costs of carrying out 
the grant program and the costs of reporting State and local 
efforts to the Secretary; and 
(3) not more than 3 percent of the funds made available 
through the grant for training, technical assistance, and wage 
incentives provided by the State to Local Councils. 
(c) LEAD STATE AGENCY.— 
(1) IN GENERAL.—To be eligible to receive an allotment 
under this title, the Governor of a State shall appoint, after 
consultation with the leadership of the State legislature, a 
Lead State Agency to carry out the functions described in 
paragraph (2). 
(2) LEAD STATE AGENCY.— 
(A) ALLOCATION OF FUNDS.—^The Lead State Agency 
described in paragraph (1) shall allocate funds to Local 
Councils as described in section 812. 
114 STAT. 2763A-86 
PUBLIC LAW 106-554—APPENDIX A 
(B) FUNCTIONS OF AGENCY.—In addition to allocating 
funds pursuant to subparagraph (A), the Lead State Agency 
shall— 
(i) advise and assist Local Councils in the perform-
ance of their duties under this title; 
(ii) develop and submit the State application; 
(iii) evaluate and approve applications submitted 
by Local Councils under section 813; 
(iv) ensure collaboration with respect to assistance 
provided under this title between the State agency 
responsible for education and the State agency respon-
sible for children and family services; 
(v) prepare and submit to the Secretary, an annual 
report on the activities carried out in the State under 
this title, which shall include a statement describing 
how all funds received under this title are expended 
and documentation of the effects that resources under 
this title have had on— 
(I) parental capacity to improve learning readi-
ness in their young children; 
(II) early childhood literacy; 
(III) linkages among early learning programs; 
(IV) linkages between early learning programs 
and health care services for young children; 
(V) access to early learning activities for young 
children with special needs; 
(VI) access to existing early learning programs 
through expansion of the days or times that chil-
dren are served; 
(VII) access to existing early learning pro-
grams through expansion of the number of young 
children served; 
(VIII) access to and affordability of existing 
early learning programs for low-income families; 
(IX) the quality of early learning programs 
resulting from 
professional 
development, 
and 
recruitment and retention incentives for care-
givers; and 
(X) removal of ancillary barriers to early learn-
ing, 
including 
transportation 
difficulties 
and 
absence of programs daring nontraditional work 
times; and 
(vi) ensure that training and research is made 
available to Local Councils and that such training, and 
research reflects the latest available brain development 
and early childhood development research related to 
early learning. 
SEC. 811. STATE REQUIREMENTS. 
(a) ELIGIBILITY.—To be eligible for a grant imder this title, 
a State shall— 
(1) ensure that funds received by the State under this 
title shall be subject to appropriation by the State legislature, 
consistent with the terms and conditions required under State 
law; 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-87 
(2) designate a Lead State Agency under section 810(c) 
to administer and monitor the grant and ensure State-level 
coordination of early learning programs; 
(3) submit to the Secretary an application at such time, 
in such manner, and accompanied by such information as the 
Secretary may require; 
(4) ensure that funds made available under this title are 
distributed on a competitive basis throughout the State to 
Local Councils serving rural, urban, and suburban areas of 
the State; and 
(5) assist the Secretary in developing mechanisms to ensure 
that Local Councils receiving funds under this title comply 
with the requirements of this title. 
(b) STATE PREFERENCE.—In awarding grants to Local Councils 
under this title, the State, to the maximum extent possible, shall 
ensure that a broad variety of early learning programs that provide 
a continuity of services across the age spectrum assisted under 
this title are funded under this title, and shall give preference 
to supporting— 
(1) a Local Council that meets criteria, that are specified 
by the State and approved by the Secretary, for qualifying 
as serving an area of greatest need for early learning programs; 
and 
(2) a Local Council that demonstrates, in the application 
submitted under section 813, the Local Council's potential to 
increase collaboration as a means of maximizing use of 
resources provided under this title with other resources avail-
able for early learning programs. 
(c) LOCAL PREFERENCE.—In awarding grants under this title. 
Local Councils shall give preference to supporting— 
(1) projects that demonstrate their potential to collaborate 
as a means of maximizing use of resources provided under 
this title with other resources available for early learning pro-
grams; 
(2) programs that provide a continuity of services for young 
children across the age spectrum, individually, or through 
community-based networks or cooperative agreements; and 
(3) programs that help parents and other caregivers pro-
mote early learning with their young children. 
(d) PERFORMANCE GOALS.— 
(1) ASSESSMENTS.—Based on information and data received 
from Local Councils, and information and data available 
through State resources, the State shall biennially assess the 
needs and available resources related to the provision of early 
learning programs within the State. 
(2) 
PERFORMANCE 
GOALS.—Based 
on 
the 
analysis 
of 
information described in paragraph (1), the State shall establish 
measurable performance goals to be achieved through activities 
assisted under this title. 
(3) REQUIREMENT.—^The State shall award grants to Local 
Councils only for purposes that are consistent with the perform-
ance goals established under paragraph (2). 
(4) REPORT.—The State shall report to the Secretsiry 
annually regarding the State's progress toward achieving the 
performance goals established in paragraph (2) and any nec-
essary modifications to those goals, including the rationale 
for the modifications. 
114 STAT. 2763A-88 
PUBLIC LAW 106-554—APPENDIX A 
(5) IMPROVEMENT PLANS.—If the Secretary determines, 
based on the State report submitted under paragraph (4), that 
the State is not making progress toward achieving the perform-
ance goals described in paragraph (2), then the State shall 
submit a performance improvement plan to the Secretary, and 
demonstrate reasonable progress in implementing such plan, 
in order to remain eligible for funding under this title. 
SEC. 812. LOCAL ALLOCATIONS. 
(a) IN GENERAL.—The Lead State Agency shall allocate to Local 
Councils in the State not less than 93 percent of the funds provided 
to the State under this title for a fiscal year. 
(b) LIMITATION.—The Lead State Agency shall allocate funds 
f
)rovided under this title on the basis of the population of the 
ocality served by the Local Council. 
SEC. 813. LOCAL APPLICATIONS. 
(a) IN GENERAL.—^To be eligible to receive assistance under 
this title, the Local Council shall submit an application to the 
Lead State Agency at such time, in such manner, and containing 
such information as the Lead State Agency may require. 
(b) CONTENTS.—Each application submitted pursuant to sub-
section (a) shall include a statement ensuring that the local govern-
ment entity, Indian tribe. Regional Corporation, or Native Hawaiian 
entity has established or designated a Local Council under section 
814, and the Local Council has developed a local plan for carrying 
out early learning programs imder this title that includes— 
(1) a needs and resources assessment concerning early 
learning services and a statement describing how early learning 
programs will be funded consistent with the assessment; 
(2) a statement of how the Local Council will ensure that 
early learning programs will meet the performance goals 
reported by the Lead State Agency under this title; and 
(3) a description of how the Local Council will form 
coUaboratives among local youth, social service, and educational 
providers to maximize resources and concentrate efforts on 
areas of greatest need. 
SEC. 814. LOCAL ADMINISTRATION. 
(a) LOCAL COUNCIL.— 
(1) IN GENERAL.—^To be eligible to receive funds under 
this title, a local government entity, Indian tribe. Regional 
Corporation, or Native Hawaiian entity, as appropriate, shall 
establish or designate a Local Council, which shall be composed 
of— 
(A) representatives of local agencies directly affected 
by early learning programs assisted under this title; 
(B) parents; 
(C) other individuals concerned with early learning 
issues in the locality, such as representative entities provid-
ing elementary education, child care resource and referral 
services, early learning opportunities, child care, and health 
services; and 
(D) other key community leaders. 
(2) DESIGNATING EXISTING ENTITY.—If a local government 
entity, Indian tribe, Regional Corporation, or Native Hawaiian 
entity has, before the date of enactment of the Early Learning 
Opportunities Act, a Local Council or a regional entity that 
PUBLIC LAW 106-554^APPENDIX A 
114 STAT. 2763A-89 
is comparable to the Local Council described in paragraph 
(1), the entity, tribe, or corporation may designate the council 
or entity as a Local Council under this title, and shall be 
considered to have established a Local Council in compliance 
with this subsection. 
(3) FUNCTIONS.—^The Local Council shall be responsible 
for preparing and submitting the application described in sec-
tion 813. 
(b) ADMINISTRATION.— 
(1) ADMINISTRATIVE COSTS.—^Not more than 3 percent of 
. 
the funds received by a Local Coimcil imder this title shall 
be used to pay for the administrative costs of the Local Council 
in carrying out this title. 
(2) FISCAL AGENT.—^A Local Council may designate any 
entity, with a demonstrated capacity for administering grants, 
that is affected by, or concerned with, early learning issues, 
including the State, to serve as fiscal agent for the administra-
tion of grant funds received by the Local Council under this 
title. 
TITLE IX—RURAL EDUCATION ACHIEVEMENT PROGRAM 
SEC. 901. RURAL EDUCATION INITIATIVE. 
Subpart 2 of part J of title X of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 8291 et seq.) is amended to 
read as follows: 
"Subpart 2—Rural Education Initiative 
"SEC 10971. SHORT TITLE. 
"This subpart may be cited as the 'Rural Education Achieve-
ment Program'. 
"SEC. 10972. PURPOSE. 
"It is the purpose of this subpart to address the unique needs 
of rural school districts that frequently— 
"(1) lack the personnel and resources needed to compete 
for Federal competitive grants; and 
"(2) receive formula allocations in amounts too small to 
be effective in meeting their intended purposes. 
"SEC. 10973. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated to carry out this 
subpart $62,500,000 for fiscal year 2001. 
"SEC. 10974. FORMULA GRANT PROGRAM AUTHORIZED. 
"(a) ALTERNATIVE USES.— 
"(1) IN GENERAL.—Notwithstanding any other provision of 
law, an. eligible local educational agency may use the applicable 
funding, that the agency is eligible to receive from the State 
educational agency for a fiscal year, to carry out local activities 
authorized in part A of title I, section 2210(b), section 3134, 
or section 4116. 
"(2) NOTIFICATION.—An eligible local educational agency 
shall notify the State educational agency of the local educational 
agency's intention to use the applicable funding in accordance 
with paragraph (1) not later than a date that is established 
by the State educational agency for the notification. 
79-194 O - 00 - 5: QL 3 Part 5 
114 STAT. 2763A-90 
PUBLIC LAW 106-554-APPENDIX A 
"(b) ELIGIBILITY.—^A local educational agency shall be eligible 
to use the applicable funding in accordance with subsection (a) 
if— 
"(1) the total number of students in average daily attend-
ance at all of the schools served by the local educational agency 
is less than 600; and 
"(2) all of the schools served by the local educational agency 
are designated with a School Locale Code of 7 or 8, as deter-
mined by the Secretary of Education. 
"(c) APPLICABLE FLT^DING.—In this section, the term 'applicable 
funding* means funds provided under each of titles II, IV, and 
VI, except for funds made available under section 321 of the Depart-
ment of Education Appropriations Act, 2001. 
"(d) DiSBURSAL.--Each State educational agency that receives 
applicable funding for a fiscal year shall disburse the applicable 
funding to local educational agencies for alternative uses under 
this section for the fiscal year at the same time that the State 
educational agency disburses the applicable funding to local edu-
cational agencies that do not intend to use the applicable funding 
for such alternative uses for the fiscal year. 
"(e) SUPPLEMENT NOT SUPPLANT.—Funds made available under 
this section shall be used to supplement and not supplant any 
other State or local education funds. 
"(f) SPECIAL RULE.—References in Federal law to funds for 
the provisions of law set forth in subsection (c) may be considered 
to be references to funds for this section. 
"(g) CONSTRUCTION.—^Nothing in this subpart shall be construed 
to prohibit a local educational agency that enters into cooperative 
arrangements with other local educational agencies for the provision 
of special, compensatory, or other education services pursuant to 
State law or a written agreement from entering into similar 
arrangements for the use or the coordination of the use of the 
funds made available under this subpart. 
"SEC. 10975. COMPETITIVE GRANT PROGRAM AUTHORIZED. 
"(a) IN GENERAL.—The Secretary is authorized to award grants 
to eligible local educational agencies to enable the local educational 
agencies to carry out local activities authorized in part A of title 
I, section 2210(b), section 3134, or section 4116. 
"(b) ELIGIBILITY.—^A local educational agency shall be eligible 
to receive a grant under this section if— 
"(1) the total number of students in average daily attend-
ance at all of the schools served by the local educational agency 
is less than 600; and 
"(2) all of the schools served by the local educational agency 
are designated with a School Locale Code of 7 or 8, as deter-
mined by the Secretary of Education. 
"(c) AMOUNT.— 
"(1) IN GENERAL.—The Secretary shall award a grant to 
a local educational agency under this section for a fiscal year 
in an amount equal to the amount determined under paragraph 
(2) for the fiscal year minus the total amount received under 
the provisions of law described under section 10974(c) for the 
fiscal year. 
"(2) DETERMINATION.—The amount referred to in paragraph 
(1) is equal to $100 multiplied by the total number of students 
in excess of 50 students that are in average daily attendance 
PUBLIC LAW 106-554—APPENDIX A 
114 STAT. 2763A-91 
at the schools served by the local educational agency, plus 
$20,000, except that the amount may not exceed $60,000. 
"(3) CENSUS DETERMINATION.— 
"(A) IN GENERAL.—Each local educational agency desir-
ing a grant under this section shall determine for each 
year the number of kindergarten through grade 12 students 
in average daily attendance at the schools served by the 
local educational agency during the period beginning or 
the first day of classes and ending on December 1. 
"(B) SUBMISSION.—Each local educational agency shall 
submit the number described in subparagraph (A) to the 
Secretary not later than March 1 of each year. 
"(4) PENALTY.—If the Secretary determines that a local 
educational agency has knowingly submitted false information 
under paragraph (3) for the purpose of gaining additional funds 
under this section, then the local educational agency shall 
be fined an amount equal to twice the difference between the 
amoiuit the local educational agency received under this section, 
and the correct amount the local educational agency would 
have received imder this section if the agency had submitted 
accurate information under paragraph (3). 
"(d) DiSBURSAL.—The Secretary shall disburse the 
funds 
awarded to a local educational agency under this section for a 
fiscal year not later than July 1 of that year. 
"(e) SUPPLEMENT NOT SUPPLANT.—^Funds made available under 
this section shall be used to supplement and not supplant any 
other State or local education funds. 
"SEC. 10976. ACCOUNTABILITY. 
"(a) ACADEMIC ACHIEVEMENT.— 
"(1) IN GENERAL.—Each local educational agency that uses 
or receives funds under section 10974 or 10975 for a fiscal 
year shall— 
"(A) administer an assessment that is used statewide 
and is consistent with the assessment described in section 
1111(b), to assess the academic achievement of students 
in the schools served by the local educational agency; or 
"(B) in the case of a local educational agency for which 
there is no statewide assessment described in subparagraph 
(A), administer a test, that is selected by the local edu-
cational agency, to assess the academic achievement of 
students in the schools served by the local educational 
agency. 
"(2) SPECIAL RULE.—Each local educational agency that 
uses or receives funds under section 10974 or 10975 shall 
use the same assessment or test described in paragraph (1) 
for each year of participation in the program carried out under 
such section. 
"(b) STATE EDUCATIONAL AGENCY DETERMINATION REGARDING 
CONTINUING PARTICIPATION.—^Each State educational agency that 
receives funding under the provisions of law described in section 
10974(c) shall— 
"(1) after the third year that a local educational agency 
in the State participates in a program authorized under section 
10974 or 10975 and on the basis of the results of the assess-
ments or tests described in subsection (a), determine whether 
114 STAT. 2763A-92 
PUBLIC LAW 106-554—APPENDIX A 
the students served by the local educational agency participat-
ing in the program performed better on the assessments or 
tests after the third year of the participation than the students 
performed on the assessments or tests after the first year 
of the participation; 
"(2) permit only the local educational agencies that partici-
pated in the program and served students that performed better 
on the assessments or tests, as described in paragraph (1), 
to continue to participate in the program for an additional 
period of 3 years; and 
"(3) prohibit the local educational agencies that participated 
in the program and served students that did not perform better 
on the assessments or tests, as described in paragraph (1), 
from participating in the program, for a period of 3 years 
from the date of the determination. 
"SEC. 10977. RATABLE REDUCTIONS IN CASE OF INSUFFICIENT APPRO-
PRIATIONS. 
"(a) IN GENERAL.—If the amount appropriated for any fiscal 
year and made available for grants under this subpart is insufficient 
to pay the full amount for which all agencies are eligible under 
this subpart, the Secretary shall ratably reduce each such amount. 
"(b) ADDITIONAL AMOUNTS.—If additional funds become avail-
able for making payments under paragraph (1) for such fiscal 
year, payments that were reduced under subsection (a) shall be 
increased on the same basis as such payments were reduced. 
"SEC. 10978. APPLICABILITY. 
"Sections 10951 and 10952 shall not apply to this subpart.". 
This Act may be cited as the "Departments of Labor, Health 
and Human Services, and Education, and Related Agencies Appro-
priations Act, 2001". 
PUBLIC LAW 106-554—APPENDIX B 
114 STAT. 2763A-93 
APPENDIX B—H.R. 5657 
That the following sums are appropriated, out of any money in 
the Treasury not otherwise appropriated, for the Legislative Branch 
for the fiscal year ending September 30, 2001, and for other pur-
poses, namely: 
TITLE I—CONGRESSIONAL OPERATIONS 
SENATE 
PAYMENT TO WIDOWS AND HEIRS OF DECEASED MEMBERS OF 
CONGRESS 
For a payment to Nancy Nally Coverdell, widow of Paul D. 
Coverdell, late a Senator from Georgia, $141,300. 
EXPENSE ALLOWANCES 
" 
For expense allowances of the Vice President, $10,000; the 
President Pro Tempore of the Senate, $10,000; Majority Leader 
of the Senate, $10,000; Minority Leader of the Senate, $10,000; 
Majority Whip of the Senate, $5,000; Minority Whip of the Senate, 
$5,000; and Chairmen of the Majority and Minority Conference 
Committees, $3,000 for each Chairman; and Chairmen of the Major-
ity and Minority Policy Committees, $3,000 for each Chairman; 
in all, $62,000. 
REPRESENTATION ALLOWANCES FOR THE MAJORITY AND MINORITY 
LEADERS 
For representation allowances of the Majority and Minority 
Leaders of the Senate, $15,000 for each such Leader; in all, $30,000. 
SALARIES, OFFICERS AND EMPLOYEES 
For compensation of officers, employees, and others as author-
ized by law, including agency contributions, $92,321,000, which 
shall be paid from this appropriation without regard to the below 
limitations, as follows: 
OFFICE OF THE VICE PRESIDENT 
For the Office of the Vice President, $ 1,785,000. 
OFFICE OF T H E PRESIDENT PRO TEMPORE 
For the Office of the President Pro Tempore, $453,000. 
114 STAT. 2763A-94 
PUBLIC LAW 106-554—APPENDIX B 
OFFICES OF THE MAJORITY AND MINORITY LEADERS 
For Offices of the Majority and Minority Leaders, $2,742,000. 
OFFICES OF THE MAJORITY AND MINORITY WHIPS 
For Offices of the Majority and Minority Whips, $1,722,000. 
COMMITTEE ON APPROPRIATIONS 
For salaries of the Committee on Appropriations, $6,917,000. 
CONFERENCE COMMITTEES 
For the Conference of the Majority and the Conference of the 
Minority, at rates of compensation to be fixed by the Chairmgui 
of each such committee, $1,152,000 for each such committee; in 
all, $2,304,000. 
OFFICES 
OF 
THE 
SECRETARIES 
OF 
THE 
CONFERENCE 
OF 
THE 
MAJORITY 
AND 
THE 
CONFERENCE 
OF 
THE 
MINORITY 
For Offices of the Secretaries of the Conference of the Majority 
and the Conference of the Minority, $590,000. 
POLICY COMMITTEES 
For salaries of the Majority Policy Committee and the Minority 
Policy Committee, $1,171,000 for each such committee; in all, 
$2,342,000. 
OFFICE OF THE CHAPLAIN 
For Office of the Chaplain, $288,000. 
OFFICE OF THE SECRETARY 
For Office of the Secretary, $14,738,000. 
OFFICE OF THE SERGEANT AT ARMS AND DOORKEEPER 
For Office 
of the 
Sergeant 
at Arms 
and 
Doorkeeper, 
$34,811,000. 
OFFICES OF THE SECRETARIES FOR THE MAJORITY AND MINORITY 
For Offices of the Secretary for the Majority and the Secretary 
for the Minority, $1,292,000. 
AGENCY CONTRIBUTIONS AND RELATED EXPENSES 
For agency contributions for employee benefits, as authorized 
by law, and related expenses, $22,337,000. 
OFFICE OF THE LEGISLATIVE COUNSEL OF THE SENATE 
For salaries and expenses of the Office of the Legislative Coun-
sel of the Senate, $4,046,000. 
PUBLIC LAW 106-554—APPENDIX B 
114 STAT. 2763A-95 
OFFICE OF SENATE LEGAL COUNSEL 
For salaries and expenses of the Office of Senate Legal Counsel, 
$1,069,000. 
EXPENSE ALLOWANCES OF THE SECRETARY OF THE SENATE, SER-
GEANT AT ARMS AND DOORKEEPER OF THE SENATE, AND SEC-
RETARIES FOR THE MAJORITY AND MINORITY OF THE SENATE 
For expense allowances of the Secretary of the Senate, $3,000; 
Sergeant at Arms and Doorkeeper of the Senate, $3,000; Secretary 
for the Majority of the Senate, $3,000; Secretary for the Minority 
of the Senate, $3,000; in all, $12,000. 
CONTINGENT EXPENSES OF THE SENATE 
INQUIRIES AND INVESTIGATIONS 
For expenses of inquiries and investigations ordered by the 
Senate, or conducted pursuant to section 134(a) of Public Law 
601, Seventy-ninth Congress, as amended, section 112 of Public 
Law 96-304 and Senate Resolution 281, agreed to March 11, 1980, 
$73,000,000. 
EXPENSES OF THE UNITED STATES SENATE CAUCUS ON 
INTERNATIONAL NARCOTICS CONTROL 
For expenses of the United States Senate Caucus on Inter-
national Narcotics Control, $370,000. 
SECRETARY OF THE SENATE 
For expenses of the Office of the Secretary of the Senate, 
$2,077,000. 
SERGEANT 
AT 
ARMS 
AND 
DOORKEEPER 
OF 
THE 
SENATE 
For expenses of the Office of the Sergeant at Arms and Door-
keeper of the Senate, $71,511,000, of which $2,500,000 shall remain 
available until September 30, 2003. 
MISCELLANEOUS ITEMS 
For miscellaneous items, $8,655,000. 
SENATORS' OFFICIAL PERSONNEL AND OFFICE EXPENSE ACCOUNT 
For Senators' Official Personnel and Office Expense Account, 
$253,203,000. 
OFFICIAL MAIL COSTS 
For expenses necessary for official mail costs of the Senate 
$300,000. 
ADMINISTRATIVE PROVISIONS 
SECTION 1. SEMIANNUAL REPORT, (a) IN GENERAL.—Section 
105(a) of the Legislative Branch Appropriations Act, 1965 (2 U.S.C. 
104a) is amended by adding at the end the following: 
114 STAT. 2763A-96 
PUBLIC LAW 106-554—APPENDIX B 
"(5)(A) Notwithstanding the requirements of paragraph (1) 
relating to the level of detail of statement and itemization, each 
report by the Secretary of the Senate required under such para-
graph shall be compiled at a summary level for each office of 
the Senate authorized to obligate appropriated funds. 
"(B) Subparagraph (A) shall not apply to the reporting of 
expenditures relating to personnel compensation, travel and 
transportation of persons, other contractual services, and acquisition 
of assets. 
"(C) In carrying out this paragraph the Secretary of the Senate 
shall apply the Standard Federal Object Classification of Expenses 
as the Secretary determines appropriate.". 
(b) EFFECTIVE DATE AND APPLICATION.— 
(1) IN GENERAL.—Subject to paragraph (2), the amendment 
made by this section shall take effect on the date of enactment 
of this Act. 
(2) FIRST REPORT AFTER ENACTMENT.—^The Secretary of the 
Senate may elect to compile and submit the report for the 
semiannual period during which the date of enactment of this 
section occurs, as if the amendment made by this section had 
not been enacted. 
SEC. 2. SENATE EMPLOYEE PAY ADJUSTMENTS. Section 4 of 
the Federal Pay Comparability Act of 1970 (2 U.S.C. 60a-l) is 
amended— 
(1) in subsection (a)— 
(A) by inserting "(or section 5304 or 5304a of such 
title, as applied to employees employed in the pay locality 
of the Washington, D.C.-Baltimore, Maryland consolidated 
metropolitan statistical area)" after "employees under sec-
tion 5303 of title 5, United States Code,"; and 
(B) by inserting "(and, as the case may be, section 
5304 or 5304a of such title, as applied to employees 
employed in the pay locality of the Washington, D.C.-Balti-
more, Maryland consolidated metropolitan statistical area)" 
after "the President under such section 5303"; 
(2) by redesignating subsection (e) as subsection (f); and 
(3) by inserting after subsection (d) the following: 
"(e) Any percentage used in any statute specifically providing 
for an adjustment in rates of pay in lieu of an adjustment made 
under section 5303 of title 5, United States Code, and, as the 
case may be, section 5304 or 5304a of such title for any calendar 
year shall be treated as the percentage used in an adjustment 
made under such section 5303, 5304, or 5304a, as applicable, for 
purposes of subsection (a).". 
SEC. 3. (a) Section 6(c) of the Legislative Branch Appropriations 
Act, 1999 (2 U.S.C. 121b-l(c)) is amended— 
(1) by striking "and agency contributions" in paragraph 
(2)(A), and 
(2) by adding at the end the following: 
"(3) Agency contributions for employees of Senate Hair 
Care Services shall be paid from the appropriations account 
for 'SALARIES, OFFICERS AND EMPLOYEES'.". 
(b) This section shall apply to pay periods beginning on or 
after October 1, 2000. 
SEC. 4. (a) There is established in the Treasury of the United 
States a revolving fund to be known as the Senate Health and 
Fitness Facility Revolving Fund ("the revolving fund"). 
PUBLIC LAW 106-554—APPENDIX B 
114 STAT. 2763A-97 
(b) The Architect of the Capitol shall deposit in the revolving 
fund— 
(1) any amounts received as dues or other assessments 
for use of the Senate Health and Fitness Facility, and 
(2) any amounts received from the operation of the Senate 
waste recycling program. 
(c) Subject to the approval of the Committee on Appropriations 
of the Senate, amounts in the revolving fund shall be available 
to the Architect of the Capitol, without fiscal year limitation, for 
payment of costs of the Senate Health and Fitness Facility. 
(d) The Architect of the Capitol shall withdraw from the revolv-
ing fimd and deposit in the Treasury of the United States as 
miscellaneous receipts all moneys in the revolving fund that the 
Architect determines are in excess of the current and reasonably 
foreseeable needs of the Senate Health and Fitness Facility. 
(e) Subject to the approval of the Committee on Rules and 
Administration of the Senate, the Architect of the Capitol may 
issue such regulations as may be necessary to carry out the provi-
sions of this section. 
SEC. 5. For each fiscal year (commencing with the fiscal year 
ending September 30, 2001), there is authorized an expense allow-
ance for the Chairmen of the Majority £ind Minority Policy Commit-
tees which shall not exceed $3,000 each fiscal year for each such 
Chairman; and amounts from such allowance shall be paid to either 
of such Chairmen only as reimbursement for actual expenses 
incurred by him and upon certification and documentation of such 
expenses, and amounts so paid shall not be reported as income 
and shall not be allowed as a deduction under the Internal Revenue 
Code of 1986. 
SEC. 6. (a) The head of the employing office of an employee 
of the Senate may, upon termination of employment of the employee, 
authorize payment of a lump sum for the accrued annual leave 
of that employee if— 
(1) the head of the employing office— 
(A) has approved a written leave policy authorizing 
employees to accrue leave and establishing the conditions 
upon which accrued leave may be psiid; and 
(B) submits written certification to the Financial Clerk 
of the Senate of the number of days of annual leave accrued 
by the employee for which pa5Tnent is to be made under 
the written leave policy of the employing office; and 
(2) there are sufficient funds to cover the lump sum pay-
ment. 
(b)(1) A lump sum pa5nnent under this section shall not exceed 
the lesser of— 
(A) twice the monthly rate of pay of the employee; or 
(B) the product of the daily rate of pay of the employee 
and the number of days of accrued annual leave of the 
employee. 
(2) The Secretary of the Senate shall determine the rates of 
pay of an employee under paragraph (1)(A) and (B) on the basis 
of the annual i*ate of pay of the employee in effect on the date 
of termination of employment. 
(c) Any pa5nnent under this section shall be paid from the 
appropriation account or fund used to pay the employee. 
(d) If an individual who received a lump sum payment under 
this section is reemployed as an employee of the Senate before 
114 STAT. 2763A-98 
PUBLIC LAW 106-554—APPENDIX B 
the end of the period covered by the lump sum payment, the 
individual shall refund an amount equal to the applicable pay 
covering the period between the date of reemployment and the 
expiration of the lump sum period. Such amount shall be deposited 
to the appropriation account or fund used to pay the lump sum 
payment. 
(e) The Committee on Rules and Administration of the Senate 
may prescribe regulations to carry out this section. 
(f) In this section, the term— 
(1) "employee of the Senate" means any employee whose 
pay is disbursed by the Secretary of the Senate, except that 
the term does not include a member of the Capitol Police 
or a civilian employee of the Capitol Police; and 
(2) "head of the emplojdng office" means any person with 
the final authority to appoint, hire, discharge, and set the 
terms, conditions, or privileges of the employment of an individ-
ual whose pay is disbursed by the Secretary of the Senate. 
SEC. 7. (a) Agency contributions for employees whose salaries 
are disbursed by the Secretary of the Senate from the appropriations 
account "JOINT ECONOMIC COMMITTEE" under the heading "JOINT 
ITEMS" shall be paid from the Senate appropriations account for 
"SALARIES, OFFICERS AND EMPLOYEES". 
(b) This section shall apply to pay periods beginning on or 
after October 1, 2000. 
SEC. 8. Section 316 of Public Law 101-302 (40 U.S.C. 188b-
6) is amended— 
(1) in the first sentence of subsection (a) by striking "items 
of art, fine art, and historical items" and inserting "works 
of art, historical objects, documents, or material relating to 
historical matters for placement or exhibition"; 
(2) in the second sentence of subsection (a)— 
(A) by striking "such items" each place it appears and 
inserting "such works, objects, documents, or material" in 
each such place; and 
(B) by striking "an item" and inserting "a work, object, 
document, or material"; and 
(3) in subsection (b)— 
(A) by striking "such items of art" and inserting "such 
works, objects, documents, or materials"; and 
(B) by striking "shall" and inserting "may". 
HOUSE OF REPRESENTATIVES 
SALARIES AND EXPENSES 
For salaries and expenses of the House of Representatives, 
$769,551,000, as follows: 
HOUSE LEADERSHIP OFFICES 
For salaries and expenses, as authorized by law, $14,378,000, 
including: Office of the Speaker, $1,759,000, including $25,000 for 
official expenses of the Speaker; Office of the Majority Floor Leader, 
$1,726,000, including $10,000 for official expenses of the Majority 
Leader; Office of the Minority Floor Leader, $2,096,000, including 
$10,000 for official expenses of the Minority Leader; Office of the 
Majority Whip, including the Chief Deputy Majority Whip, 
$1,466,000, including $5,000 for official expenses of the Majority 
PUBLIC LAW 106-554—APPENDIX B 
114 STAT. 2763A-99 
Whip; Office of the Minority Whip, including the Chief Deputy 
Minority Whip, $1,096,000, including $5,000 for official expenses 
of the Minority Whip; Speaker's Office for Legislative Floor Activi-
ties, $410,000; Republican Steering Committee, $765,000; Repub-
lican Conference, $1,255,000; Democratic Steering and Policy 
Committee, $1,352,000; Democratic Caucus, $668,000; nine minority 
employees, $1,229,000; training and program development—major-
ity, $278,000; and training and program development—minority, 
$278,000. 
MEMBERS' REPRESENTATIONAL ALLOWANCES 
INCLUDING MEMBERS' CLERK HIRE, OFFICIAL EXPENSES OF 
MEMBERS, AND OFFICIAL MAIL 
For Members' representational allowances, including Members' 
clerk hire, official expenses, and official mail, $410,182,000. 
COMMITTEE EMPLOYEES 
STANDING COMMITTEES, SPECIAL AND SELECT 
For salaries and expenses of standing committees, special and 
select, authorized by House resolutions, $92,196,000: Provided, That 
such amount shall remain available for such salaries and expenses 
until December 31, 2002. 
COMMITTEE ON APPROPRIATIONS 
For salaries and expenses of the Committee on Appropriations, 
$20,628,000, including studies and examinations of executive agen-
cies and temporary personal services for such committee, to be 
expended in accordance with section 202(b) of the Legislative 
ReorgEinization Act of 1946 and to be available for reimbursement 
to agencies for services performed: Provided, That such amount 
shall remain available for such salaries and expenses until Decem-
ber 31, 2002. 
SALARIES, OFFICERS AND EMPLOYEES 
For compensation and expenses of officers and employees, as 
authorized by law, $90,403,000, including: for salaries and expenses 
of the Office of the Clerk, including not more than $3,500, of 
which not more than $2,500 is for the Family Room, for official 
representation and reception expenses, $14,590,000; for salaries 
and expenses of the Office of the Sergeant at Arms, including 
the position of Superintendent of Garages, and including not more 
than $750 for official representation and reception expenses, 
$3,692,000; for salaries and expenses of the Office of the Chief 
Administrative Officer, $58,550,000, of which $1,054,000 shall 
remain available until expended, including $26,605,000 for salaries, 
expenses and temporary personal services of House Information 
Resources, of which $26,020,000 is provided herein: Provided, That 
of the amount provided for House Information Resources, $6,497,000 
shall be for net expenses of telecommunications: Provided further. 
That House Information 
Resources is authorized to receive 
reimbursement from Members of the House of Representatives and 
other governmental entities for services provided and such 
114 STAT. 2763A-100 
PUBLIC LAW 106-554—APPENDIX B 
reimbursement shall be deposited in the Treasury for credit to 
this account; for salaries and expenses of the Office of the Inspector 
General, $3,249,000; for salaries and expenses of the Office of 
General Counsel, $806,000; for the Office of the Chaplain, $140,000; 
for salaries and expenses of the Office of the Parliamentarian, 
including the Parliamentarian and $2,000 for preparing the Digest 
of Rules, $1,201,000; for salaries and expenses of the Office of 
the Law Revision Counsel of the House, $2,045,000; for salaries 
and expenses of the Office of the Legislative Counsel of the House, 
$5,085,000; for salaries and expenses of the Corrections Calendar 
Office, $832,000; and for other authorized employees, $213,000. 
ALLOWANCES AND EXPENSES 
For allowances and expenses as authorized by House resolution 
or law, $141,764,000, including: supplies, materials, administrative 
costs and Federal tort claims, $2,235,000; official mail for commit-
tees, leadership offices, and administrative offices of the House, 
$410,000; Government contributions for health, retirement, Social 
Security, and other applicable employee benefits, $138,726,000; and 
miscellaneous items including purchase, exchange, maintenance, 
repair, and operation of House motor vehicles, interparliamentary 
receptions, and gratuities to heirs of deceased employees of the 
House, $393,000. 
CHILD CARE CENTER 
For salaries and expenses of the House of Representatives 
Child Care Center, such amounts as are deposited in the account 
established by section 312(d)(1) of the Legislative Branch Appropria-
tions Act, 1992 (40 U.S.C. 184g(d)(l)), subject to the level specified 
in the budget of the Center, as sulDmitted to the Committee on 
Appropriations of the House of Representatives. 
ADMINISTRATIVE PROVISIONS 
SEC. 101. During fiscal year 2001 and any succeeding fiscal 
year, the Chief Administrative Officer of the House of Representa-
tives may— 
(1) enter into contracts for the acquisition of severable 
services for a period that begins in 1 fiscal year and ends 
in the next fiscal year to the same extent as the head of 
an executive agency under the authority of section 303L of 
the Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 2531); and 
(2) enter into multiyear contracts for the acquisitions of 
property and nonaudit-related services to the same extent as 
executive agencies under the authority of section 304B of the 
Federal Property and Administrative Services Act of 1949 (41 
U.S.C. 254c). 
SEC. 102. 
(a) PERMITTING NEW HOUSE EMPLOYEES TO BE 
PLACED ABOVE MINIMUM STEP OF COMPENSATION LEVEL.—The 
House Employees Position Classification Act (2 U.S.C. 291 et seq.) 
is amended by striking section 10 (2 U.S.C. 299). 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
shall apply with respect to employees appointed on or after October 
1, 2000. 
PUBLIC LAW 106-554—APPENDIX B 
114 STAT. 2763A-101 
SEC. 103. (a) REQUIRING AMOUNTS REMAINING IN MEMBERS' 
REPRESENTATIONAL ALLOWANCES TO BE USED FOR DEFICIT REDUC-
TION OR To REDUCE THE FEDERAL DEBT.—Notwithstanding any 
other provision of law, any amounts appropriated under this Act 
for "HOUSE OF REPRESENTATIVES—SALARIES AND E X P E N S E S -
MEMBERS' REPRESENTATIONAL ALLOWANCES" shall be available only 
for fiscal year 2001. Any amount remaining after all payments 
are made under such allowances for fiscal year 2001 shall be 
deposited in the Treasury and used for deficit reduction (or, if 
there is no Federal budget deficit after all such payments have 
been made, for reducing the Federal debt, in such manner as 
the Secretary of the Treasury considers appropriate). 
(b) REGULATIONS.—The Committee on House Administration 
of the House of Representatives shall have authority to prescribe 
regulations to carry out this section. 
(c) DEFINITION.—^As used in this section, the term "Member 
of the House of Representatives" means a Representative in, or 
a Delegate or Resident Commissioner to. Congress. 
SEC. 104. (a) There is hereby appropriated for payment to 
the Prince WilUam County Public Schools $215,000, to be used 
to pay for educational services for the son of Mrs. Evelyn Gibson, 
the widow of Detective John Michael Gibson of the United States 
Capitol Police. 
(b) The payment under subsection (a) shall be made in accord-
ance with terms and conditions established by the Committee on 
House Administration of the House of Representatives. 
(c) The funds used for the payment made under subsection 
(a) shall be derived from the applicable accounts of the House 
of Representatives. 
JOINT ITEMS 
For Joint Committees, as follows: 
JOINT CONGRESSIONAL COMMITTEE ON INAUGURAL CEREMONIES OF 
2001 
For all construction expenses, salaries, and other expenses asso-
ciated with conducting the inaugural ceremonies of the President 
and Vice President of the United States, January 20, 2001, in 
accordance with such program as may be adopted by the joint 
committee authorized by Senate Concurrent Resolution 89, agreed 
to March 14, 2000 (One Hundred Sixth Congress), and Senate 
Concurrent Resolution 90, agreed to March 14, 2000 (One Hundred 
Sixth Congress), $1,000,000 to be disbursed by the Secretary of 
the Senate and to remain available until September 30, 2001. 
Funds made available under this heading shall be available for 
payment, on a direct or reimbursable basis, whether incurred on, 
before, or after, October 1, 2000: Provided, That the compensation 
of any employee of the Committee on Rules and Administration 
of the Senate who has been designated to perform service for 
the Joint Congressional Committee on Inaugural Ceremonies shall 
continue to be paid by the Committee on Rules and Administration, 
but the account from which such staff member is paid may be 
reimbursed for the services of the staff member (including agency 
contributions when appropriate) out of funds made available under 
this heading. 
114 STAT. 2763A-102 
PUBLIC LAW 106-554—APPENDIX B 
ADMINISTRATIVE PROVISION 
SEC. 105. During fiscal year 2001 the Secretary of Defense 
shall provide protective services on a nonreimbursable basis to 
the United States Capitol Police with respect to the following events: 
(1) Upon request of the Chair of the Joint Congressional 
Committee on Inaugural Ceremonies established under Senate 
Concurrent Resolution 89, One Hundred Sixth Congress, agreed 
to March 14, 2000, the proceedings and ceremonies conducted 
for the inauguration of the President-elect and Vice President-
elect of the United States. 
(2) Upon request of the Speaker of the House of Representa-
tives and the President Pro Tempore of the Senate, the joint 
session of Congress held to receive a message from the Presi-
dent of the United States on the State of the Union. 
JOINT ECONOMIC COMMITTEE 
For salaries and expenses of the Joint Economic Committee, 
$3,315,000, to be disbursed by the Secretary of the Senate. 
JOINT COMMITTEE ON TAXATION 
For salaries and expenses of the Joint Committee on Taxation, 
$6,430,000, to be disbursed by the Chief Administrative Officer 
of the House. 
For other joint items, as follows: 
OFFICE OF THE ATTENDING PHYSICIAN 
For medical supplies, equipment, and contingent expenses of 
the emergency rooms, and for the Attending Physician and his 
assistants, including: (1) an allowance of $1,500 per month to the 
Attending Physician; (2) an allowance of $500 per month each 
to three medical officers while on duty in the Office of the Attending 
Physician; (3) an allowance of $500 per month to one assistant 
and $400 per month each not to exceed 11 assistants on the basis 
heretofore provided for such assistants; and (4) $1,159,904 for 
reimbursement to the Department of the Navy for expenses incurred 
for staff and equipment assigned to the Office of the Attending 
Physician, which shall be advanced and credited to the applicable 
appropriation or appropriations from which such salaries, allow-
ances, and other expenses are payable and shall be available for 
all the purposes thereof, $1,835,000, to be disbursed by the Chief 
Administrative Officer of the House. 
CAPITOL POLICE BOARD 
CAPITOL POLICE 
SALARIES 
For the Capitol Police Board for salaries of officers, members, 
Eind employees of the Capitol Police, including overtime, hazardous 
duty pay differential, clothing allowance of not more than $600 
each for members required to wear civilian attire, and Government 
contributions for health, retirement, Social Security, and other 
applicable employee benefits, $97,142,000, of which $47,053,000 
PUBLIC LAW 106-554—APPENDIX B 
114 STAT. 2763A-103 
is provided to the Sergeant at Arms of the House of Representatives, 
to be disbursed by the Chief Administrative Officer of the House, 
and $50,089,000 is provided to the Sergeant at Arms and Door-
keeper of the Senate, to be disbursed by the Secretary of the 
Senate: Provided, That, of the amounts appropriated under this 
heading, such amounts as may be necessary may be transferred 
between the Sergeant at Arms of the House of Representatives 
£ind the Sergeant at Arms and Doorkeeper of the Senate, upon 
approval of the Committee on Appropriations of the House of Rep-
resentatives and the Committee on Appropriations of the Senate. 
GENERAL EXPENSES 
For the Capitol Police Board for necessary expenses of the 
Capitol Police, including motor vehicles, communications and other 
equipment, security equipment and installation, uniforms, weapons, 
supplies, materials, training, medical services, forensic services, 
stenographic services, personal and professional services, the 
employee assistance program, not more than $2,000 for the awards 
program, postage, telephone service, travel advances, relocation of 
instructor and liaison personnel for the Federal Law Enforcement 
Training Center, and $85 per month for extra services performed 
for the Capitol Police Board by an employee of the Sergeant at 
Arms of the Senate or the House of Representatives designated 
by the Chairman of the Board, $6,772,000, to be disbursed by 
the Capitol Police Board or their delegee: Provided, That, notwith-
standing any other provision of law, the cost of basic training 
for the Capitol Police at the Federal Law Enforcement Training 
Center for fiscal year 2001 shall be paid by the Secretary of the 
Treasury from funds available to the Department of the Treasury. 
ADMINISTRATIVE PROVISIONS 
SEC, 106. Amounts appropriated for fiscal year 2001 for the 
Capitol Police Board for the Capitol Police may be transferred 
between the headings "SALARIES" and "GENERAL EXPENSES" upon 
the approval of— 
(1) the Committee on Appropriations of the House of Rep-
resentatives, in the case of amounts transferred from the appro-
priation provided to the Sergeant at Arms of the House of 
Representatives imder the heading "SALARIES"; 
(2) the Committee on Appropriations of the Senate, in 
the case of amounts transferred from the appropriation provided 
to the Sergeant at Arms and Doorkeeper of the Senate under 
the heading "SALARIES"; and 
(3) the Committees on Appropriations of the Senate and 
the House of Representatives, in the case of other transfers. 
SEC. 
107. (a) APPOINTMENT OF CERTIFYING OFFICERS OF THE 
CAPITOL POLICE.—The Chief Administrative Officer of the United 
States Capitol Police, or when there is not a Chief Administrative 
Officer, the Capitol Police Board, shall appoint certifying officers 
to certify all vouchers for payment from funds made available 
to the United States Capitol Police. 
(b) RESPONSIBILITY AND ACCOUNTABILITY OF CERTIFYING OFFI-
CERS.— 
(1) IN GENERAL.—Each officer or employee of the Capitol 
Police who has been duly authorized in writing by the Chief 
Administrative Officer, or the Capitol Police Board if there 
114 STAT. 2763A-104 
PUBLIC LAW 106-554—APPENDIX B 
is not a Chief Administrative Officer, to certify vouchers pursu-
ant to subsection (a) shall— 
(A) be held responsible for the existence and correct-
ness of the facts recited in the certificate or otherwise 
stated on the voucher or its supporting papers and for 
the legality of the proposed payment under the appropria-
tion or fund involved; 
(B) be held responsible and accountable for the correct-
ness of the computations of certified vouchers; and 
(C) be held accountable for and required to make good 
to the United States the amount of any illegal, improper, 
or incorrect payment resulting from any false, inaccurate, 
or misleading certificate made by such officer or employee, 
as well as for any payment prohibited by law or which 
did not represent a legal obligation under the appropriation 
or fund involved. 
(2) RELIEF BY COMPTROLLER GENERAL.—The Comptroller 
Greneral may, at the Comptroller General's discretion, relieve 
such certifying officer or employee of liability for any payment 
otherwise proper if the Comptroller General finds— 
(A) that the certification was based on official records 
and that the certifying officer or employee did not know, 
and by reasonable diligence and inquiry could not have 
ascertained, the actual facts; or 
(B) that the obligation was incurred in good faith, 
that the payment was not contrary to any statutory provi-
sion specifically prohibiting payments of the character 
involved, and the United States has received value for 
such pajonent. 
(c) ENFORCEMENT OF LIABILITY.—The liability of the certifying 
officers of the United States Capitol Police shall be enforced in 
the same manner and to the same extent as currently provided 
with respect to the enforcement of the liability of disbursing and 
other acjcountable officers, and such officers shall have the right 
to apply for and obtain a decision by the Comptroller General 
on any question of law involved in a payment on any vouchers 
presented to them for certification. 
SEC. 108. CHIEF ADMINISTRATIVE OFFICER.—(a) There shall be 
within the Capitol Police an Office of Administration to be headed 
by a Chief Administrative Officer: 
(1) The Chief Administrative Officer shall be appointed 
by the Comptroller General after consultation with the Capitol 
Police Board, and shall report to and serve at the pleasure 
of the Comptroller General. 
(2) The Comptroller General shall appoint as Chief 
Administrative Officer an individual with the knowledge and 
skills necessary to carry out the responsibilities for budgeting, 
financial management, information technology, and human 
resource management described in this section. 
(3) The Chief Administrative Officer shall receive basic 
pay at a rate determined by the Comptroller General, but 
not to exceed the annual rate of basic pay payable for ES-
2 of the Senior Executive Service Basic Rates Schedule estab-
lished for members of the Senior Executive Service of the 
General Accounting Office under section 733 of title 31. 
PUBLIC LAW 106-554—APPENDIX B 
114 STAT. 2763A-105 
(4) The Capitol Police shall reimburse from available appro-
priations any costs incurred by the General Accounting Office 
under this section. 
(b) The Chief Administrative Officer shall have the following 
areas of responsibility: 
(1) BUDGETING.—The Chief Administrative Officer shall— 
(A) after consulting with the Chief of Police on the 
portion of the budget covering uniformed police force 
personnel, prepare and submit to the Capitol Police Board 
an annual budget for the Capitol Police; and 
(B) execute the budget and monitor through periodic 
examinations the execution of the Capitol Police budget 
in relation to actual obligations and expenditures. 
(2) FINANCIAL MANAGEMENT.—^The Chief Administrative 
Officer shall— 
(A) oversee all financial management activities relating 
to the programs and operations of the Capitol Police; 
(B) develop and maintain an integrated accounting 
and financial system for the Capitol Police, including finan-
cial reporting and internal controls, which— 
(i) complies with applicable accounting principles, 
standards, and requirements, and internal control 
standards; 
(ii) 
complies 
with 
any 
other 
requirements 
applicable to such systems; 
(iii) provides for— 
(I) complete, reliable, consistent, and timely 
information which is prepared on a uniform basis 
and which is responsive to financial information 
needs of the Capitol Police; 
(II) the development and reporting of cost 
information; 
(III) the integration of accounting and budget-
ing information; and 
(IV) the systematic measurement of perform-
ance; 
(C) direct, manage, and provide policy guidance and 
oversight of Capitol Police financial management personnel, 
activities, and operations, including— 
(i) the recruitment, selection, and training of 
personnel to carry out Capitol Police financial manage-
ment functions; and 
(ii) the implementation of Capitol Police asset 
management systems, including systems for cash 
management, debt collection, and propert3^ and inven-
tory management and control; and 
(D) the Chief Administrative Officer shall prepare 
annual financial statements for the Capitol Police and pro-
vide for an annual audit of the financial statements by 
an independent public accountant in accordance with gen-
erally accepted government auditing standards. 
(3) INFORMATION TECHNOLOGY.—The Chief Administrative 
Officer shall— 
(A) direct, coordinate, and oversee the acquisition, use, 
and management of information technology by the Capitol 
Police; 
114 STAT. 2763A-106 
PUBLIC LAW 106-554—APPENDIX B 
(B) promote and oversee the use of information tech-
nology to improve the efficiency and effectiveness of pro-
grams of the Capitol Police; and 
(C) establish and enforce information technology prin-
ciples, guidelines, and objectives, including developing and 
maintaining an information technology architecture for the 
Capitol Police. 
(4) HUMAN RESOURCES.—The Chief Administrative Officer 
shall— 
(A) direct, coordinate, and oversee human resource 
management activities of the Capitol Police, except that 
with respect to uniformed police force personnel, the Chief 
Administrative Officer shall perform these activities in 
cooperation with the Chief of the Capitol Police; 
(B) develop and monitor payroll and time and attend-
ance systems and employee services; and 
(C) develop and monitor processes for recruiting, select-
ing, appraising, and promoting employees. 
(c) Administrative provisions with respect to the Office of 
Administration: 
(1) The Chief Administrative Officer is authorized to select, 
appoint, employ, and discharge such officers and employees 
as may be necessary to carry out the functions, powers, and 
duties of the Office of Administration but he shall not have 
the authority to hire or discharge uniformed police force person-
nel. 
(2) The Chief Administrative Officer may utilize resources 
of another agency on a reimbursable basis to be paid from 
available appropriations of the Capitol Police. 
(d) No later than 180 days after appointment, the Chief 
Administrative Officer shall prepare, after consultation with the 
Capitol Police Board and the Chief of the Capitol Police, a plan— 
(1) describing the policies, procedures, and actions the Chief 
Administrative Officer will take in carrying out the responsibil-
ities assigned under this section; 
(2) identifying and defining responsibilities and roles of 
all offices, bureaus, and divisions of the Capitol Police for 
budgeting, financial management, information technology, and 
human resources management; and 
(3) detailing mechanisms for ensuring that the offices, 
bureaus, and divisions perform their responsibilities and roles 
in a coordinated and integrated manner. 
(e) No later than September 30, 2001, the Chief Administrative 
Officer shall prepare, after consultation with the Capitol Police 
Board and the Chief of the Capitol Police, a report on the Chief 
Administrative 
Officer's 
progress 
in implementing the 
plan 
described in subsection (d) and recommendations to improve the 
budgeting, financial, information technology, and human resources 
management of the Capitol Police, including organizational, 
accounting and administrative control, and personnel changes. 
(f) Tlie Chief Administrative Officer shall submit the plan 
required in subsection (d) and the report required in subsection 
(e) to the Committees on Appropriations of the House of Representa-
tives and of the Senate, the Committee on House Administration 
of the House of Representatives, and the Committee on Rules 
and Administration of the Senate. 
PUBLIC LAW 106-554—APPENDIX B 
114 STAT. 2763A-107 
(g) As of October 1, 2002, unless otherwise determined by 
the Comptroller General, the Chief Administrative Officer estab-
lished by section (a) will cease to be an employee of the General 
Accounting Office and will become an employee of the Capitol 
Police, and the Capitol Police Board shall assume all responsibilities 
of the Comptroller Genersil under this section. 
SEC. 109. (a) Section 1(c) of Public Law 96-152 (40 U.S.C. 
206-1) is amended by striking "the annual rate" and all that follows 
and inserting the following: "the rate of basic pay payable for 
level ES-4 of the Senior Executive Service, as established under 
subchapter VIII of chapter 53 of title 5, United States Code (taking 
into account any comparability payments made imder section 
5304(h) of such title).". 
(b) The amendment made by subsection (a) shall apply with 
respect to pay periods beginning on or after the date of the enact-
ment of this Act. 
CAPITOL GUIDE SERVICE AND SPECIAL SERVICES OFFICE 
For salaries and expenses of the Capitol Guide Service and 
Special Services Office, $2,371,000, to be disbursed by the Secretary 
of the Senate: Provided, That no part of such amount may be 
used to employ more than 43 individuals: Provided further. That 
the Capitol Guide Board is authorized, during emergencies, to 
employ not more than two additional individuals for not more 
than 120 days each, and not more than 10 additional individuals 
for not more than 6 months each, for the Capitol Guide Service. 
STATEMENTS OF APPROPRIATIONS 
For the preparation, under the direction of the Committees 
on Appropriations of the Senate and the House of Representatives, 
of the statements for the second session of the One Hundred Sixth 
Congress, showing appropriations made, indefinite appropriations, 
and contracts authorized, together with a chronological history of 
the regular appropriations bills as required by law, $30,000, to 
be paid to the persons designated by the chairmen of such commit-
tees to supervise the work. 
OFFICE OF COMPLIANCE 
SALARIES AND EXPENSES 
For salaries and expenses of the Office of Compliance, as 
authorized by section 305 of the Congressional Accountability Act 
of 1995 (2 U.S.C. 1385), $1,820,000. 
CONGRESSIONAL BUDGET OFFICE 
SALARIES AND EXPENSES 
For salaries and expenses necessary to carry out the provisions 
of the Congressional Budget Act of 1974 (Public Law 93-344), 
including not more than $3,000 to be expended on the certification 
of the Director of the Congressional Budget Office in connection 
with official representation and reception expenses, $28,493,000: 
Provided, That no part of such amount may be used for the purchase 
or hire of a passenger motor vehicle. 
114 STAT. 2763A-108 
PUBLIC LAW 106-554—APPENDIX B 
ADMINISTRATIVE PROVISION 
SEC. 110. Beginning on the date of enactment of this Act 
and hereafter, the Congressional Budget Office may use available 
funds to enter into contracts for the procurement of severable 
services for a period that begins in one fiscal year and ends in 
the next fiscal year and may enter into multi-year contracts for 
the acquisition of property and services, to the same extent as 
executive agencies under the authority of section 303L and 304B, 
respectively, of the Federal Property and Administrative Services 
Act (41 U.S.C. 2531 and 254c). 
AECHITECT OF THE CAPITOL 
CAPITOL BUILDINGS AND GROUNDS 
CAPITOL B U I L D I N G S 
SALARIES AND EXPENSES 
For salaries for the Architect of the Capitol, the Assistant 
Architect of the Capitol, and other personal services, at rates of 
pay provided by law; for surveys and studies in connection with 
activities under the care of the Architect of the Capitol; for all 
necessary expenses for the maintenance, care and operation of 
the Capitol and electrical substations of the Senate and House 
office buildings under the jurisdiction of the Architect of the Capitol, 
including furnishings and office equipment, including not more 
than $1,000 for official reception and representation expenses, to 
be expended as the Architect of the Capitol may approve; for pur-
chase or exchange, maintenance and operation of a passenger motor 
vehicle; and not to exceed $20,000 for attendance, when specifically 
authorized by the Architect of the Capitol, at meetings or conven-
tions in connection with subjects related to work under the Architect 
of the Capitol, $43,689,000, of which $3,843,000 shall remain avail-
able until expended: Provided, That notwithstanding any other 
provision of law, such amount shall be available for the position 
of Project Manager for the Capitol Visitor Center, at a rate of 
compensation which does not exceed the rate of basic pay payable 
for level ES-2 of the Senior Executive Service, as established under 
subchapter VIII of chapter 53 of title 5, United States Code (taking 
into account any comparability payments made under section 
5304(h) of such title): Provided further. That effective on the date 
of the enactment of this Act, any amount made available under 
this heading under the Legislative Branch Appropriations Act, 2000, 
shall be available for such position at such rate of compensation. 
CAPITOL GROUNDS 
For all necessary expenses for care and improvement of grounds 
surrounding the Capitol, the Senate and House office buildings, 
and the Capitol Power Plant, $5,362,000, of which $125,000 shall 
remain available until expended. 
SENATE OFFICE BUILDINGS 
For all necessary expenses for the maintenance, care and oper-
ation of Senate office buildings; and furniture and furnishings to 
PUBLIC LAW 106-554—APPENDIX B 
114 STAT. 2763A-109 
be expended under the control and supervision of the Architect 
of the Capitol, $63,974,000, of which $21,669,000 shall remain 
available until expended. 
HOUSE OFFICE BUILDINGS 
For all necessary expenses for the maintenance, care and oper-
ation of the House office buildings, $32,750,000, of which $123,000 
shall remain available until expended. 
CAPITOL POWER PLANT 
For all necessary expenses for the maintenance, care and oper-
ation of the Capitol Power Plant; lighting, heating, power (including 
the purchase of electrical energy) and water and sewer services 
for the Capitol, Senate and House office buildings. Library of Con-
gress buildings, and the grounds about the same, Botanic Garden, 
Senate garage, and air conditioning refrigeration not supplied from 
plants in any of such buildings; heating the Government Printing 
Office and Washington City Post Office, and heating and chilled 
water for air conditioning for the Supreme Court Building, the 
Union Station complex, the Thurgood Marshall Federal Judiciary 
Building and the Folger Shakespeare Library, expenses for which 
shall be advanced or reimbursed upon request of the Architect 
of the Capitol and amounts so received shall be deposited into 
the Treasury to the credit of this appropriation, $39,415,000, of 
which $523,000 shall remain available until expended: Provided, 
That not more than $4,400,000 of the funds credited or to be 
reimbursed to this appropriation as herein provided shall be avail-
able for obligation during fiscal year 2001. 
LIBRARY OF CONGRESS 
CONGRESSIONAL RESEARCH SERVICE 
SALARIES A N D EXPENSES 
For necessary expenses to carry out the provisions of section 
203 of the Legislative Reorganization Act of 1946 (2 U.S.C. 166) 
and to revise and extend the Annotated Constitution of the United 
States of America, $73,592,000: Provided, That no part of such 
amount may be used to pay any salary or expense in connection 
with any publication, or preparation of material therefor (except 
the Digest of Public General Bills), to be issued by the Library 
of Congress unless such publication has obtained prior approval 
of either the Committee on House Administration of the House 
of Representatives or the Committee on Rules and Administration 
of the Senate. 
GOVERNMENT PRINTING OFFICE 
CONGRESSIONAL PRINTING AND BINDING 
(INCLUDING TRANSFER OF FUNDS) 
For authorized printing and binding for the Congress and the 
distribution of Congressional information in any format; printing 
and binding for the Architect of the Capitol; expenses necessary 
114 STAT. 2763A-110 
PUBLIC LAW 106-554—APPENDIX B 
for preparing the semimonthly and session index to the Congres-
sional Record, as authorized by law (44 U.S.C. 902); printing and 
binding of Government publications authorized by law to be distrib-
uted to Members of Congress; and printing, binding, and distribu-
tion of Government publications authorized by law to be distributed 
without charge to the recipient, $71,462,000: Provided, That this 
appropriation shall not be available for paper copies of the perma-
nent edition of the Congressional Record for individual Representa-
tives, Resident Commissioners or Delegates authorized under 44 
U.S.C. 906: Provided further, That this appropriation shall be avail-
able for the payment of obligations incurred under the appropria-
tions for similar purposes for preceding fiscal years: Provided fur-
ther. That notwithstanding the 2-year limitation imder section 718 
of title 44, United States Code, none of the funds appropriated 
or made available under this Act or any other Act for printing 
and binding and related services provided to Congress under chap-
ter 7 of title 44, United States Code, may be expended to print 
a document, report, or publication after the 27-month period begin-
ning on the date that such document, report, or publication is 
authorized by Congress to be printed, unless Congress reauthorizes 
such printing in accordance with section 718 of title 44, United 
States Code: Provided further, That any unobligated or unexpended 
balances in this account or accounts for similar purposes for preced-
ing fiscal years may be transferred to the Government Printing 
Office revolving fund for carrying out the purposes of this heading, 
subject to the approval of the Committees on Appropriations of 
the House of Representatives and Senate. 
ADMINISTRATIVE PROVISION 
SEC. 111. (a) CONGRESSIONAL PRINTING AND BINDING FOR THE 
HOUSE THROUGH CLERK OF HOUSE.— 
(1) IN GENERAL.—Notwithstanding any provision of title 
44, United States Code, or any other law, there are authorized 
to be appropriated to the Clerk of the House of Representatives 
such sums as may be necessary for congressional printing and 
binding services for the House of Representatives. 
(2) PREPARATION OF ESTIMATES.—Estimated expenditures 
and proposed appropriations for congressional printing and 
binding services shall be prepared and submitted by the Clerk 
of the House of Representatives in accordance with title 31, 
United States Code, in the same manner as estimates and 
requests are prepared for other legislative branch services 
under such title, except that such requests shall be based 
upon the results of the study conducted under subsection (b) 
(with respect to any fiscal year covered by such study). 
(3) EFFECTIVE DATE.—This subsection shall apply with 
respect to fiscal year 2003 and each succeeding fiscal year. 
(b) STUDY.— 
(1) IN GENERAL.—During fiscal year 2001, the Clerk of 
the House of Representatives shall conduct a comprehensive 
study of the needs of the House for congressional printing 
and binding services during fiscal year 2003 and succeeding 
fiscal years (including transitional issues during fiscal year 
2002), and shall include in the study an analysis of the most 
cost-effective program or programs for providing printed or 
other media-based publications for House uses. 
PUBLIC LAW 106-554—APPENDIX B 
114 STAT. 2763A-111 
(2) SUBMISSION TO COMMITTEES.—The Clerk shall submit 
the study conducted under paragraph (1) to the Committee 
on House Administration of the House of Representatives, who 
shall review the study and prepare such regulations or other 
materials (including proposals for legislation) as it considers 
appropriate to enable the Clerk to carry out congressional print-
ing and binding services for the House in accordance with 
this section. 
(c) DEFINITION.—In this section, the term "congressional print-
ing and binding services" means the following services: 
(1) Authorized printing and binding for the Congress and 
the distribution of congressional information in any format. 
(2) Preparing the semimonthly and session index to the 
Congressional Record. 
(3) Printing and binding of Government publications 
authorized by law to be distributed to Members of Congress. 
(4) Printing, binding, and distribution of Government 
publications authorized by law to be distributed without charge 
to the recipient. 
This title may be cited as the "Congressional Operations Appro-
priations Act, 2001". 
TITLE II—OTHER AGENCIES 
BOTANIC GARDEN 
SALARIES AND EXPENSES 
For all necessary expenses for the maintenance, care and oper-
ation of the Botanic Garden and the nurseries, buildings, grounds, 
and collections; and purchase and exchange, maintenance, repair, 
and operation of a passenger motor vehicle; all under the direction 
of the Joint Committee on the Library, $3,328,000, of which $25,000 
shall remain available imtil expended. 
LIBRARY OF CONGRESS 
SALARIES AND EXPENSES 
For necessary expenses of the Library of Congress not otherwise 
provided for, including development and maintenance of the Union 
Catalogs; custody and custodial care of the Library buildings; special 
clothing; cleaning, laundering and repair of uniforms; preservation 
of motion pictures in the custody of the Library; operation and 
maintenance of the American Folklife Center in the Library; 
preparation and distribution of catalog records and other publica-
tions of the Library; hire or purchase of one passenger motor 
vehicle; and expenses of the Library of Congress Trust Fund Board 
not properly chargeable to the income of any trust fund held by 
the Board, $282,838,000, of which not more than $6,500,000 shall 
be derived from collections credited to this appropriation during 
fiscal year 2001, and shall remain available imtil expended, under 
the Act of June 28, 1902 (chapter 1301; 32 Stat. 480; 2 U.S.C. 
150) and not more than $350,0()0 shall be derived from collections 
during fiscal year 2001 and shall remain available until expended 
for the development and maintenance of an international legal 
information database and activities related thereto: Provided, That 
the Library of Congress may not obligate or expend any funds 
114 STAT. 2763A-112 
PUBLIC LAW 106-554—APPENDIX B 
derived from collections under the Act of June 28, 1902, in excess 
of the amount authorized for obligation or expenditure in appropria-
tions Acts: Provided further, That the total amount available for 
obligation shall be reduced by the amoimt by which collections 
are less than the $6,850,000: Provided further, That of the total 
amount appropriated, $10,459,575 is to remain available until 
expended for acquisition of books, periodicals, newspapers, and 
all other materials including subscriptions for bibliographic services 
for the Library, including $40,000 to be available solely for the 
purchase, when specifically approved by the Librarian, of special 
and unique materials for additions to the collections: Provided 
further. That of the total amount appropriated, $2,506,000 is to 
remain available until expended for the acquisition and partial 
support for implementation of an Integrated Library System (ILS): 
Provided 
further, 
That 
of the 
total 
amount 
appropriated, 
$10,000,000 is to remain available until expended for salaries and 
expenses to carry out the Russian Leadership Program enacted 
on May 21, 1999 (113 Stat. 93 et seq.): Provided further. That 
of the total amount appropriated, $5,957,800 is to remain available 
until expended for the purpose of teaching educators how to incor-
porate the Library's digital collections into school curricula, which 
amount shall be transferred to the educational consortium formed 
to conduct the "Joining Hands Across America: Local Community 
Initiative" project as approved by the Library: Provided 
further, 
That of the total amount appropriated, $404,000 is to remain avail-
able until expended for a collaborative digitization and tele-
communications project with the United States Military Academy 
and any remaining balance is available for other Library purposes: 
Provided further. That of the total amount appropriated, $4,300,000 
is to remain available until expended for the purpose of developing 
a high speed data transmission between the Library of Congress 
and educational facilities, libraries, or networks serving western 
North Carolina, and any remaining balance is available for support 
of the Librar^s Digital Futures initiative. 
COPYRIGHT OFFICE 
SALARIES AND EXPENSES 
For necessary expenses of the Copyright Office, $38,523,000, 
of which not more than $23,500,000, to remain available until 
expended, shall be derived from collections credited to this appro-
priation during fiscal year 2001 under 17 U.S.C. 708(d): Provided, 
That the Copyright Office may not obligate or expend any funds 
derived from collections under 17 U.S.C. 708(d), in excess of the 
amount authorized for obligation or expenditure in appropriations 
Acts: Provided further. That not more than $5,783,000 shall be 
derived from collections during fiscal year 2001 under 17 U.S.C. 
111(d)(2), 119(b)(2), 802(h), and 1005: Provided further. That the 
total amount available for obligation shall be reduced by the amount 
by which collections are less than $29,283,000: Provided 
further. 
That not more than $100,000 of the amoimt appropriated is avail-
able for the maintenance of an "International Copyright Institute" 
in the Copyright Office of the Library of Congress for the purpose 
of training nationals of developing countries in intellectual property 
laws and policies: Provided further, That not more than $4,250 
may be expended, on the certification of the Librarian of Congress, 
PUBLIC LAW 106-554--APPENDIX B 
114 STAT. 2763A-113 
in connection with official representation and reception expenses 
for activities of the International Copyright Institute and for copy-
right delegations, visitors, and seminars. 
BOOKS FOR THE BLIND AND PHYSICALLY HANDICAPPED 
SALARIES AND EXPENSES 
For salaries and expenses to carry out the Act of March 3, 
1931 (chapter 400; 46 Stat. 1487; 2 U.S.C. 135a), $48,609,000, 
of which $14,154,000 shall remain available until expended. 
FURNITURE AND FURNISHINGS 
For necessary expenses for the purchase, installation, mainte-
nance, and repair of furniture, furnishings, office and library equip-
ment, $4,892,000. 
ADMINISTRATIVE PROVISIONS 
SEC. 201. Appropriations in this Act available to the Library 
of Congress shall be available, in an amount of not more than 
$199,630, of which $59,300 is for the Congressional Research Serv-
ice, when specifically authorized by the Librarian of Congress, 
for attendance at meetings concerned with the function or activity 
for which the appropriation is made. 
SEC. 202. (a) No part of the funds appropriated in this Act 
shall be used by the Library of Congress to administer any flexible 
or compressed work schedule which— 
(1) applies to any manager or supervisor in a position 
the grade or level of which is equal to or higher than GS-
15; and 
(2) grants such manager or supervisor the right to not 
be at work for all or a portion of a workday because of time 
worked by the manager or supervisor on another workday. 
(b) For purposes of this section, the term "manager or super-
visor" means any management official or supervisor, as such terms 
are defined in section 7103(a)(10) and (11) of title 5, United States 
Code. 
SEC. 203. Appropriated funds received by the Library of Con-
gress from other Federal agencies to cover general and administra-
tive overhead costs generated by performing reimbursable work 
for other agencies under the authority of sections 1535 and 1536 
of title 31, United States Code, shall not be used to employ more 
than 65 employees and may be expended or obligated— 
(1) in the case of a reimbursement, only to such extent 
or in such amounts as are provided in appropriations Acts; 
or 
(2) in the case of an advance payment, only— 
(A) to pay for such general or administrative overhead 
costs as are attributable to the work performed for such 
agency; or 
(B) to such extent or in such amounts as are provided 
in appropriations Acts, with respect to any purpose not 
allowable under subparagraph (A). 
SEC. 204. Of the amounts appropriated to the Library of Con-
gress in this Act, not more than $5,000 may be expended, on 
the certification of the Librarian of Congress, in connection with 
114 STAT. 2763A-114 
PUBLIC LAW 106-554—APPENDIX B 
official representation and reception expenses for the incentive 
awards program. 
SEC. 205. Of the amount appropriated to the Library of Con-
gress in this Act, not more than $12,000 may be expended, on 
the certification of the Librarian of Congress, in connection with 
official representation and reception expenses for the Overseas Field 
Offices. 
SEC. 206. (a) For fiscal year 2001, the obligational authority 
of the Library of Congress for the activities described in subsection 
(b) may not exceed $92,845,000. 
(b) The activities referred to in subsection (a) are reimbursable 
and revolving fund activities that are funded from sources other 
than appropriations to the Library in appropriations Acts for the 
legislative branch. 
SEC. 207. Section 1 of the Act entitled "An Act to authorize 
acquisition of certain real property for the Library of Congress, 
and for other purposes", approved December 15, 1997 (2 U.S.C. 
141 note) is amended by adding at the end the following new 
subsection: 
"(c) TRANSFER PAYMENT BY ARCHITECT.—Notwithstanding the 
limitation on reimbursement or transfer of funds under subsection 
(a) of this section, the Architect of the Capitol may, not later 
than 90 days after acquisition of the property under this section, 
transfer funds to the entity from which the property was acquired 
by the Architect of the Capitol. Such transfers may not exceed 
a total of $16,500,000.". 
SEC. 208. The Librarian of Congress may convert to permanent 
positions 84 indefinite, time-limited positions in the National Digital 
Library Program authorized in the Legislative Branch Appropria-
tions Act, 1996 for the Library of Congress under the heading, 
"Salaries and Expenses" (Public Law 104-53). Notwithstanding any 
other provision of law regarding qualifications and methods of 
appointment of employees of the Library of Congress, the Librarian 
may fill these permanent positions through the non-competitive 
conversion of the incumbents in the "indefinite-not-to-exceed" posi-
tions to "permanent" positions. 
SEC. 209. (a) In addition to any other transfer authority pro-
vided by law, during fiscal year 2001 and fiscal years thereafter, 
the Librarian of Congress may transfer to and among available 
accounts of the Library of Congress amounts appropriated to the 
Librarian from funds for the purchase, installation, maintenance, 
and repair of furniture, furnishings, and office and library equip-
ment. 
(b) Any amounts transferred pursuant to subsection (a) shall 
be merged with and be available for the same purpose and for 
the same period as the appropriation or account to which such 
amounts are transferred. 
(c) The Librarian may transfer amounts pursuant to subsection 
(a) only with the approval of the Committees on Appropriations 
of the House of Representatives and Senate. 
SEC. 210. (a)(1) This subsection shall apply to any individual 
who— 
(A) is employed by the Library of Congress Child Develop-
ment Center (known as the "Little Scholars Child Development 
Center", in this section referred to as the "Center") established 
under section 205(g)(1) of the Legislative Branch Appropriations 
Act, 1991; and 
PUBLIC LAW 106-554—APPENDIX B 
114 STAT. 2763A-115 
(B) makes an election to be covered by this subsection 
with the Librarian of Congress, not later than the later of— 
(i) 60 days after the date of enactment of this Act; 
or 
(ii) 60 days after the date the individual begins such 
employment. 
(2)(A) Any individual described under paragraph (1) may be 
credited, under section 8411 of title 5, United States Code, for 
service as an employee of the Center before the date of enactment 
of this Act, if such employee makes a pajrnent of the deposit 
under section 8411(f)(2) of such title without application of section 
8411(b)(3) of such title. 
(B) An individual described under paragraph (1) shall be cred-
ited under section 8411 of title 5, United States Code, for any 
service as an employee of the Center on or after the date of enact-
ment of this Act, if such employee has such amounts deducted 
and withheld from his pay as determined by the Office of Personnel 
Management which would be deducted and withheld from the basic 
pay of an employee under section 8422 of title 5, United States 
Code. 
(3) Notwithstanding any other provision of this subsection, 
any service performed by an individual described under paragraph 
(1) as an employee of the Center is deemed to be civilian service 
creditable under section 8411 of title 5, United States Code, for 
purposes of qualifying for survivor annuities and disability benefits 
under subchapters IV and V of chapter 84 of such title, if such 
individual makes payment of an amount, determined by the Office 
of Personnel Management, which would have been deducted and 
withheld ft-om the basic pay of such individual if such individual 
had been an employee subject to section 8422 of title 5, United 
States Code, for such period so credited, together with interest 
thereon. 
(4) An individual described under paragraph (1) shall be deemed 
an employee for purposes of chapter 84 of title 5, United States 
Code, including subchapter III of such title, and may make contribu-
tions under section 8432 of such title effective for the first applicable 
pay period beginning on or after the date such individual elects 
coverage under this section. 
(5) The Office of Personnel Management shall accept the certifi-
cation of the Librarian of Congress concerning creditable service 
for purposes of this subsection. 
(b) Any individual who is employed by the Center on or after 
the date of enactment of this Act shall be deemed an employee 
imder section 8901(1) of title 5, United States Code, for purposes 
of health insurance coverage under chapter 89 of such title. An 
individual who is an employee of the Center on the date of enact-
ment of this Act may elect coverage under this subsection before 
the 60th day after the date of enactment of this Act, and during 
such periods as determined by the Office of Personnel Management 
for employees of the Center employed after such date. 
(c) An individual who is employed by the Center shall be 
deemed an employee under section 8701(a) of title 5, United States 
Code, for purposes of life insurance coverage under chapter 87 
of such title. 
(d) Government contributions for individuals receiving benefits 
under this section, as computed under sections 8423, 8432, 8708, 
114 STAT. 2763A-116 
PUBLIC LAW 106-554—APPENDIX B 
and 8906 shall be made by the Librarian of Congress from any 
appropriations available to the Library of Congress. 
(e) The Library of Congress, directly or by agreement with 
its designated representative, shall— 
(1) process payroll for Center employees, including making 
deductions and withholdings from the pay of employees in 
the amounts determined under sections 8422, 8432, 8707, and 
8905 of title 5, United States Code; 
(2) maintain appropriate personnel and payroll records for 
Center employees, and transmit appropriate information and 
records to the Office of Personnel Management; and 
(3) transmit funds for Government and employee contribu-
tions under this section to the Office of Personnel Management. 
(f) The Center shall— 
(1) pay to the Library of Congress funds sufficient to cover 
the gross salary and the employer's share of taxes under section 
3111 of the Internal Revenue Code of 1986 for Center employ-
ees, in amounts computed by the Library of Congress; 
(2) as required by the Library of Congress, reimburse the 
Library of Congress for reasonable 
administrative 
costs 
incurred under subsection (e)(1); 
(3) comply with regulations and procedures prescribed by 
the Librarian of Congress for administration of this section; 
(4) maintain appropriate records on all Center employees, 
as required by the Librarian of Congress; and 
(5) consult with the Librarian of Congress on the adminis-
tration and implementation of this section. 
(g) The Librarian of Congress may prescribe regulations to 
carry out this section. 
ARCHITECT OF THE CAPITOL 
LIBRARY BUILDINGS AND GROUNDS 
STRUCTURAL AND MECHANICAL CARE 
For all necessary expenses for the mechanical and structural 
maintenance, care and operation of the Library buildings and 
grounds, $15,970,000, of which $5,000,000 shall remain available 
until expended. 
GOVERNMENT PRINTING OFFICE 
OFFICE OF SUPERINTENDENT OF DOCUMENTS 
SALARIES AND EXPENSES 
(INCLUDING TRANSFER OF FUNDS) 
For expenses of the Office of Superintendent of Documents 
necessary to provide for the cataloging and indexing of Government 
publications and their distribution to the public. Members of Con-
gress, other Government agencies, and designated depository and 
international exchange libraries as authorized by law, $27,954,000: 
Provided, That travel expenses, including travel expenses of the 
Depository Library Council to the Public Printer, shall not exceed 
$175,000: Provided further, 
That amounts of not more than 
$2,000,000 from current year appropriations are authorized for 
PUBLIC LAW 106-554—APPENDIX B 
114 STAT. 2763A-117 
producing and disseminating Congressional serial sets and other 
related publications for 1999 and 2000 to depository and other 
designated libraries: Provided further, 
That any unobligated or 
unexpended balances in this account or accounts for similar pur-
poses for preceding fiscal years may be transferred to the Govern-
ment Printing Office revolving fund for carrying out the purposes 
of this heading, subject to the approval of the Committees on 
Appropriations of the House of Representatives and Senate. 
GOVERNMENT PRINTING OFFICE REVOLVING FUND 
The Government Printing Office is hereby authorized to make 
such expenditures, within the limits of funds available and in 
accord with the law, and to make such contracts and commitments 
without regard to fiscal year limitations as provided by section 
9104 of title 31, United States Code, as may be necessary in 
carrying out the programs and purposes set forth in the budget 
for the current fiscal year for the Government Printing Office revolv-
ing fund: Provided, That not more than $2,500 may be expended 
on the certification of the Public Printer in connection with official 
representation and reception expenses: Provided further. That the 
revolving fund shall be available for the hire or purchase of not 
more than 12 passenger motor vehicles: Provided further. That 
expenditures in connection with travel expenses of the advisory 
councils to the Public Printer shall be deemed necessary to carry 
out the provisions of title 44, United States Code: Provided further. 
That the revolving fund shall be available for temporary or intermit-
tent services under section 3109(b) of title 5, United States Code, 
but at rates for individuals not more than the daily equivalent 
of the annual rate of basic pay for level V of the Executive Schedule 
under section 5316 of such title: Provided further. That the revolving 
fund and the funds provided under the headings "OFFICE OF SUPER-
INTENDENT OF DOCUMENTS" and "SALARIES AND EXPENSES" together 
may not be available for the full-time equivalent emplojonent of 
more than 3,285 workyears (or such other number of workyears 
as the Public Printer may request, subject to the approval of the 
Committees on Appropriations of the Senate and the House of 
Representatives): Provided further. That activities financed through 
the revolving fund may provide information in any format: Provided 
further. That the revolving fund shall not be used to administer 
any flexible or compressed work schedule which applies to any 
manager or supervisor in a position the grade or level of which 
is equal to or higher than GS-15: Provided further, That expenses 
for attendance at meetings shall not exceed $75,000. 
GENERAL ACCOUNTING OFFICE 
SALARIES AND EXPENSES 
For necessary expenses of the General Accounting Office, 
including not more than $10,000 to be expended on the certification 
of the Comptroller General of the United States in connection 
with official representation and reception expenses; temporary or 
intermittent services under section 3109(b) of title 5, United States 
Code, but at rates for individuals not more than the daily equivalent 
of the annual rate of basic pay for level IV of the Executive Schedule 
under section 5315 of such title; hire of one passenger motor vehicle; 
advance payments in foreign countries in accordance with section 
114 STAT. 2763A-118 
PUBLIC LAW 106-554—APPENDIX B 
3324 of title 31, United States Code; benefits comparable to those 
payable under sections 901(5), 901(6), and 901(8) of the Foreign 
Service Act of 1980 (22 U.S.C. 4081(5), 4081(6), and 4081(8)); and 
under regulations prescribed by the Comptroller General of the 
United States, rental of living quarters in foreign countries, 
$384,867,000: Provided, That not more than $1,900,000 of payments 
received under 31 U.S.C. 782 shall be available for use in fiscal 
year 2001: Provided further. That not more than $1,100,000 of 
reimbursements received under 31 U.S.C. 9105 shall be available 
for use in fiscal year 2001: Provided further, That this appropriation 
and appropriations for administrative expenses of £iny other depart-
ment or agency which is a member of the National Intergovern-
mental Audit Forum or a Regional Intergovernmental Audit Forum 
shall be available to finance an appropriate share of either Forum's 
costs as determined by the respective Forum, including necessary 
travel expenses of non-Federal participants. Payments hereunder 
to the Forum may be credited as reimbursements to any appropria-
tion from which costs involved are initially financed: Provided fur-
ther. That this appropriation and appropriations for administrative 
expenses of any other department or agency which is a member 
of the American Consortium on International Public Administration 
(ACIPA) shall be available to finance an appropriate share of ACIPA 
costs as determined by the ACIPA, including any expenses attrib-
utable to membership of ACIPA in the International Institute of 
Administrative Sciences. 
TITLE III—GENERAL PROVISIONS 
SEC. 301. No part of the fimds appropriated in this Act shall 
be used for the maintenance or care of private vehicles, except 
for emergency assistance and cleaning as may be provided under 
regulations relating to parking facilities for the House of Represent-
atives issued by the Committee on House Administration and for 
the Senate issued by the Committee on Rules and Administration. 
SEC. 302. No part of the funds appropriated in this Act shall 
remain available for obligation beyond fiscal year 2001 unless 
expressly so provided in this Act. 
SEC. 303. Whenever in this Act any office or position not specifi-
cally established by the Legislative Pay Act of 1929 is appropriated 
for or the rate of compensation or designation of any office or 
position appropriated for is different from that specifically estab-
lished by such Act, the rate of compensation and the designation 
in this Act shall be the permanent law with respect thereto: Pro-
vided, That the provisions in this Act for the various items of 
official expenses of Members, officers, and committees of the Senate 
and House of Representatives, and clerk hire for Senators and 
Members of the House of Representatives shall be the permanent 
law with respect thereto. 
SEC. 304. The expenditure of any appropriation under this 
Act for any consulting service through procurement contract, pursu-
ant to section 3109 of title 5, United States Code, shall be limited 
to those contracts where such expenditures are a matter of public 
record and available for public inspection, except where otherwise 
provided under existing law, or under existing Executive order 
issued pursuant to existing law. 
PUBLIC LAW 106-554—APPENDIX B 
114 STAT. 2763A-119 
SEC. 305. (a) It is the sense of the Congress that, to the 
greatest extent practicable, all equipment and products purchased 
with funds made available in this Act should be American-made. 
(b) In providing financial assistance to, or entering into any 
contract with, any entity using funds made available in this Act, 
the head of each Federal agency, to the greatest extent practicable, 
shall provide to such entity a notice describing the statement made 
in subsection (a) by the Congress. 
(c) If it has been finally determined by a court or Federal 
agency that any person intentionally affixed a label bearing a 
"Made in America" inscription, or any inscription with the same 
mesming, to any product sold in or shipped to the United States 
that is not made in the United States, such person shall be ineligible 
to receive any contract or subcontract made with funds provided 
pursuant to this Act, pursuant to the debarment, suspension, and 
ineligibility procedures described in section 9.400 through 9.409 
of title 48, Code of Federal Regulations. 
SEC. 306. Such sums as may be necessary are appropriated 
to the account described in subsection (a) of section 415 of Public 
Law 104—1 to pay awards and settlements as authorized under 
such subsection. 
SEC. 307. Amounts available for administrative expenses of 
any legislative branch entity which participates in the Legislative 
Branch Financial Managers Council (LBFMC) established by char-
ter on March 26, 1996, shall be available to finance an appropriate 
share of LBFMC costs as determined by the LBFMC, except that 
the total LBFMC costs to be shared among all participating legisla-
tive branch entities (in such allocations among the entities as 
the entities may determine) may not exceed $252,000. 
SEC. 308. No part of any appropriation contained in this Act 
under the heading "Architect of the Capitol" or "Botanic Garden" 
shall be obligated or expended for a construction contract in excess 
of $100,000, unless such contract includes a provision that requires 
liquidated damages for contractor caused delay in an amount 
commensurate with the daily net usable square foot cost of leasing 
similar space in a first class office building within two miles of 
the United States Capitol multiplied by the square footage to be 
constructed under the contract. 
SEC. 309. Section 316 of Public Law 101-302 is amended in 
the first sentence of subsection (a) by striking "2000" and inserting 
"2001". 
SEC. 310. RUSSIAN LEADERSHIP PROGRAM. Section 3011 of the 
1999 Emergency Supplemental Appropriations Act (Public Law 106-
31; 113 Stat. 93) is amended— 
(1) by striking "fiscal years 1999 and 2000" in subsections 
(a)(1), (b)(4)(B), (d)(3), and (h)(1)(A) and inserting "fiscal years 
2000 and 2001"; and 
(2) by striking "2001" in subsection (a)(2), (e)(1), and 
(h)(1)(B) and inserting "2002". 
SEC. 311. (a)(1) Any State may request the Joint Committee 
on the Library of Congress to approve the replacement of a statue 
the State has provided for display in Statuary Hall in the Capitol 
of the United States under section 1814 of the Revised Statutes 
(40 U.S.C. 187). 
(2) A request shall be considered under paragraph (1) only 
if— 
114 STAT. 2763A-120 
PUBLIC LAW 106-554—APPENDIX B 
(A) the request has been approved by a resolution adopted 
by the legislature of the State and the request has been 
approved by the Governor of the State, and 
(B) the statue to be replaced has been displayed in the 
Capitol of the United States for at least 10 years as of the 
time the request is made, except that the Joint Committee 
may waive this requirement for cause at the request of a 
State. 
(b) If the Joint Committee on the Library of Congress approves 
a request under subsection (a), the Architect of the Capitol shall 
enter into an agreement with the State to carry out the replacement 
in accordance with the request and any conditions the Joint 
Committee may require for its approval. Such agreement shall 
provide that— 
(1) the new statue shall be subject to the same conditions 
and restrictions as apply to any statue provided by a State 
under section 1814 of the Revised Statutes (40 U.S.C. 187), 
and 
(2) the State shall pay any costs related to the replacement, 
including costs in connection with the design, construction, 
transportation, and placement of the new statue, the removal 
and transportation of the statue being replaced, and any unveil-
ing ceremony. 
(c) Nothing in this section shall be interpreted to permit a 
State to have more than two statues on display in the Capitol 
of the United States. 
(d)(1) Subject to the approval of the Joint Committee on the 
Library, ownership of any statue replaced under this section shall 
be transferred to the State. 
(2) If any statue is removed from the Capitol of the United 
States as part of a transfer of ownership imder paragraph (1), 
then it may not be returned to the Capitol for display unless 
such display is specifically authorized by Federal law. 
(e) The Architect of the Capitol, upon the approval of the 
Joint Committee on the Library and with the advice of the Commis-
sion of Fine Arts as requested, is authorized and directed to relocate 
within the United States Capitol any of the statues received from 
the States under section 1814 of the Raised Statutes (40 U.S.C. 
187) prior to the date of the enactment of this Act, and to provide 
for the reception, location, and relocation of the statues received 
hereafter from the States under such section. 
SEC. 312. (a) Section 201 of the Legislative Branch Appropria-
tions Act, 1993 (40 U.S.C. 216c note) is amended by striking 
"$10,000,000" each place it appears and inserting "$14,500,000". 
(b) Section 201 of such Act is amended— 
(1) by inserting "(a)" before "Pursuant", and 
(2) by adding at the end the following: 
"(b) The Architect of the Capitol is authorized to solicit, receive, 
accept, and hold amounts under section 307E(a)(2) of the Legislative 
Branch Appropriations Act, 1989 (40 U.S.C. 216c(a)(2)) in excess 
of the $14,500,000 authorized under subsection (a), but such 
amounts (and any interest thereon) shall not be expended by the 
Architect without approval in appropriation Acts as required under 
section 307E(b)(3) of such Act (40 U.S.C. 216c(b)(3)).". 
SEC. 313. 
CENTER FOR RUSSIAN LEADERSHIP DEVELOPMENT. 
(a) ESTABLISHMENT.— 
PUBLIC LAW 106-554—APPENDIX B 
114 STAT. 2763A-121 
(1) IN GENERAL.—There is established in the legislative 
branch of the Government a center to be known as the "Center 
for Russian Leadership Development" (the "Center"). 
(2) BOARD OF TRUSTEES.—^The Center shall be subject to 
the supervision and direction of a Board of Trustees which 
shall be composed of nine members as follows: 
(A) Two members appointed by the Speaker of the 
House of Representatives, one of whom shall be designated 
by the Majority Leader of the House of Representatives 
and one of whom shall be designated by the Minority 
Leader of the House of Representatives. 
(B) Two members appointed by the President pro tem-
pore of the Senate, one of whom shall be designated by 
the Majority Leader of the Senate and one of whom shall 
be designated by the Minority Leader of the Senate. 
(C) The Librarian of Congress. 
(D) Four private individuals with interests in improv-
ing United States and Russian relations, designated by 
the Librarian of Congress. 
Each member appointed under this paragraph shall serve for 
a term of 3 years. Any vacancy shall be filled in the same 
manner as the original appointment and the individual so 
appointed shall serve for the remainder of the term. Members 
of the Board shall serve without pay, but shall be entitled 
to reimbursement for travel, subsistence, and other necessary 
expenses incurred in the performance of their duties, 
(b) PURPOSE AND AUTHORITY OF THE CENTER.— 
(1) PURPOSE.—The purpose of the Center is to establish, 
in accordance with the provisions of paragraph (2), a program 
to enable emerging political leaders of Russia at all levels 
of government to gain significant, firsthand exposure to the 
American free market economic system and the operation of 
American democratic institutions through visits to governments 
and communities at comparable levels in the United States. 
(2) GRANT PROGRAM.—Subject to the provisions of para-
graphs (3) and (4), the Center shall establish a program under 
which the Center annually awards grants to government or 
community organizations in the United States that seek to 
establish programs under which those organizations will host 
Russian nationals who are emerging political leaders at any 
level of government. 
(3) RESTRICTIONS.— 
(A) DURATION.—The period of stay in the United States 
for any individual supported with grant funds under the 
program shall not exceed 30 days. 
(B) LIMITATION.—^The number of individuals supported 
with grant funds under the program shall not exceed 3,000 
in any fiscal year. 
(C) USE OF FUNDS.—Grant funds under the program 
shall be used to pay— 
(i) the costs and expenses incurred by each pro-
gram participant in traveling between Russia and the 
United States and in traveling within the United 
States; 
(ii) the costs of providing lodging in the United 
States to each program participant, whether in public 
accommodations or in private homes; and 
79-194 O - 00 - 6 : QL 3 Part 5 
114 STAT. 2763A-122 
PUBLIC LAW 106-554—APPENDIX B 
(iii) 
such 
additional 
administrative 
expenses 
incurred by organizations in carrying out the program 
as the Center may prescribe. 
(4) APPLICATION.— 
(A) IN GENERAL.—Each organization in the United 
States desiring a grant under this section shall submit 
an application to the Center at such time, in such manner, 
and accompanied by such information as the Center may 
reasonably require. 
(B) CONTENTS.—Each application submitted pursuant 
to subparagraph (A) shall— 
(i) describe the activities for which assistance 
under this section is sought; 
(ii) include the number of program participants 
to be supported; 
(iii) describe the qualifications of the individuals 
who will be participating in the program; and 
(iv) provide such additional assurances as the Cen-
ter determines to be essential to ensure compliance 
with the requirements of this section. 
(c) ESTABLISHMENT OF FUND.— 
(1) IN GENERAL.—There is established in the Treasury of 
the United States a trust fund to be known as the "Russian 
Leadership Development Center Trust Fund" (the "Fund") 
which shall consist of amounts which may be appropriated, 
credited, or transferred to it under this section. 
(2) DONATIONS.—^Any money or other property donated, 
bequeathed, or devised to the Center under the authority of 
this section shall be credited to the Fund. 
(3) FUND MANAGEMENT.— 
(A) IN GENERAL.—The provisions of subsections (b), 
(c), and (d) of section 116 of the Legislative Branch Appro-
priations Act, 1989 (2 U.S.C. 1105 (b), (c), and (d)), and 
the provisions of section 117(b) of such Act (2 U.S.C. 
1106(b)), shall apply to the Fund. 
(B) EXPENDITURES.—The Secretary of the Treasury is 
authorized to pay to the Center from amounts in the Fund 
such sums as the Board of Trustees of the Center deter-
mines are necessary and appropriate to enable the Center 
to carry out the provisions of this section. 
(d) EXECUTIVE DIRECTOR.—The Board shall appoint an Execu-
tive Director who shall be the chief executive officer of the Center 
and who shall carry out the functions of the Center subject to 
the supervision and direction of the Board of Trustees. The Execu-
tive Director of the Center shall be compensated at the annual 
rate specified by the Board, but in no event shall such rate exceed 
level III of the Executive Schedule under section 5314 of title 
5, United States Code. 
(e) ADMINISTRATIVE PROVISIONS.— 
(1) IN GENERAL.—The provisions of section 119 of the Legis-
lative Branch Appropriations Act, 1989 (2 U.S.C. 1108) shall 
apply to the Center. 
(2) 
SUPPORT PROVIDED BY LIBRARY OF CONGRESS.—^The 
Library of Congress may disburse funds appropriated to the 
Center, compute and disburse the basic pay for all personnel 
of the Center, provide administrative, legal, financial manage-
ment, and other appropriate services to the Center, and collect 
PUBLIC LAW 106-554—APPENDIX B 
114 STAT. 2763A-123 
from the Fund the full costs of providing services under this 
paragraph, as provided under an agreement for services ordered 
under sections 1535 and 1536 of title 31, United States Code, 
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as may be necessary to carry out 
this section. 
(g) TRANSFER OF FUNDS.—^Any amounts appropriated for use 
in the program established under section 3011 of the 1999 Emer-
gency Supplemental Appropriations Act (Public Law 106-31; 113 
Stat. 93) shall be transferred to the Fund and shall remain available 
without fiscal year limitation. 
(h) EFFECTIVE DATES.— 
(1) IN GENERAL.—This section shall take effect on the date 
of enactment of this Act. 
(2) TRANSFER.—Subsection (g) shall only apply to amounts 
which remain unexpended on and after the date the Board 
of Trustees of the Center certifies to the Librarian of Congress 
that grants are ready to be made under the program established 
under this section. 
SEC. 314. REVIEW OF PROPOSED CHANGES TO EXPORT THRESH-
OLDS FOR COMPUTERS. Not more than 50 days after the date of 
the submission of the report referred to in subsection (d) of section 
1211 of the National Defense Authorization Act for Fiscal Year 
1998 (50 U.S.C. App. 2404 note), the Comptroller General of the 
United States shall submit an assessment to Congress which con-
tains an analysis of the new computer performance levels being 
proposed by the President under such section. 
TITLE IV—EMERGENCY FISCAL YEAR 2000 SUPPLEMENTAL 
APPROPRIATIONS 
The following sums are appropriated out of any money in 
the Treasury not otherwise appropriated, to provide additional 
emergency supplemental appropriations for the Legislative Branch 
for the fiscal year ending September 30, 2000, and for other pur-
poses, namely: 
CAPITOL POLICE BOARD 
SECURITY ENHANCEMENTS 
For an additional amount for the Capitol Police Board for 
costs associated with security enhancements, under the terms and 
conditions of chapter 5 of title II of division B of the Omnibus 
Consolidated and Emergency Supplemental Appropriations Act, 
1999 (PubUc Law 105-277), $2,102,000, to remain available until 
expended, of which— 
(1) $228,000 shall be for the acquisition and installation 
of card readers for four additional access points which are 
not currently funded under the implementation of the security 
enhancement plan; and 
(2) $1,874,000 shall be for security enhancements to the 
buildings and grounds of the Library of Congress: 
Provided, That the entire amount is designated by Congress as 
an emergency requirement pursuant to section 251(b)(2)(A) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended: Provided further. That the entire amount shall be avail-
able only to the extent an official budget request for a specific 
114 STAT. 2763A-124 
PUBLIC LAW 106-554—APPENDIX B 
dollar amount that includes designation of the entire amount of 
the request as an emergency requirement as defined in the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended, 
is transmitted by the President to the Congress. 
ARCHITECT OF THE CAPITOL 
CAPITOL BUILDINGS AND GROUNDS 
HOUSE OFFICE BUILDINGS 
For an additional amount for necessary expenses for urgent 
repairs to the underground garage in the Cannon House Oflfice 
Building, $9,000,000, to remain available until expended: Provided, 
That the entire amount is designated by the Congress as an emer-
gency requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended: 
Provided further, That the entire amount shall be available only 
to the extent an official budget request for a specific dollar amount 
that includes designation of the entire amoimt of the request as 
an emergency requirement as defined in the Balanced Budget and 
Emergency Deficit Control Act of 1985, as amended, is transmitted 
by the President to the Congress. 
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 
FEDERAL HOUSING ADMINISTRATION 
FHA—GENERAL AND SPECIAL RISK PROGRAM ACCOUNT 
For an additional amount for FHA—General and special risk 
program account for the cost of guaranteed loans, as authorized 
by sections 238 and 519 of the National Housing Act (12 U.S.C. 
1715z-3 and 1735c), including the cost of loan modifications (as 
that term is defined in section 502 of the Congressional Budget 
Act of 1974, as amended), $40,000,000, to remain available until 
expended: Provided, That the entire amount shall be available 
only to the extent an official budget request, that includes designa-
tion of the entire amount of the request as an emergency require-
ment as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President 
to the Congress: Provided further. That the entire amount is des-
ignated by the Congress as an emergency requirement pursuant 
to section 251(b)(2)(A) of the Balanced Budget and Emergency Defi-
cit Control Act: Provided further. That the funding under this 
heading shall only be made available upon the submission of a 
certification by the Secretary of Housing and Urban Development 
to the Committees on Appropriations that all funds committed, 
expended, or obligated under this heading in the Departments 
of Veterans Affairs and Housing and Urban Development, Independ-
ent Agencies Appropriations Act, 2000 were committed, expended 
or obligated in compliance with the Antideficiency Act (31 U.S.C. 
1341). 
S E C 401. Appropriations made by this title are available imme-
diately upon enactment of this Act. 
Tliis Act may be cited as the "Legislative Branch Appropriations 
Act, 2001". 
PUBLIC LAW 10&-554-APPENDIX C 
114 STAT. 2763A-125 
APPENDIX C—H.R. 5658 
That the following sums are appropriated, out of any money in 
the Treasury not otherwise appropriated, for the Treasury Depart-
ment, the United States Postal Service, the Executive Office of 
the President, and certain Independent Agencies for the fiscal year 
ending September 30, 2001, and for other purposes, namely: 
TITLE I—DEPARTMENT OF THE TREASURY 
DEPARTMENTAL OFFICES 
SALARIES AND EXPENSES 
For necessary expenses of the Departmental Offices including 
operation and maintenance of the Treasury Building and Annex; 
hire of passenger motor vehicles; maintenance, repairs, and 
improvements of, gmd purchase of commercial insurance policies 
for, real properties leased or owned overseas, when necessary for 
the performance of official business; not to exceed $2,900,000 for 
official travel expenses; not to exceed $3,813,000, to remain avail-
able until expended for information technology modernization 
requirements; not to exceed $150,000 for official reception and rep-
resentation expenses; not to exceed $258,000 for unforeseen emer-
gencies of a confidential nature, to be allocated and expended under 
the direction of the Secretary of the Treasury and to be accounted 
for solely on his certificate, $156,315,000: Provided, That the Office 
of Foreign Assets Control shall be funded at no less than 
$11,439,000: Provided further, That of these amounts $2,900,000 
is available for grants to State and local law enforcement groups 
to help fight money laundering. 
DEPARTMENT-WIDE SYSTEMS AND CAPITAL INVESTMENTS PROGRAMS 
(INCLUDING TRANSFER OF FUNDS) 
For development and acquisition of automatic data processing 
equipment, software, and services for the Department of the Treas-
ury, $47,287,000, to remain available until expended: Provided, 
That these funds shall be transferred to accounts and in amounts 
as necessary to satisfy the requirements of the Department's offices, 
bureaus, and other organizations: Provided further, That this trans-
fer authority shall be in addition to any other transfer authority 
provided in this Act: Provided further. That none of the funds 
appropriated shall be used to support or supplement the Internal 
Revenue Service appropriations for Information Systems. 
114 STAT. 2763A-126 
PUBLIC LAW 106-554—APPENDIX C 
OFFICE OF INSPECTOR GENERAL 
SALARIES AND EXPENSES 
For necessary expenses of the Office of Inspector General in 
carrying out the provisions of the Inspector General Act of 1978, 
as amended, not to exceed $2,000,000 for official travel expenses, 
including hire of passenger motor vehicles; and not to exceed 
$100,000 for unforeseen emergencies of a confidential nature, to 
be allocated and expended under the direction of the Inspector 
General of the Treasury, $32,899,000. 
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION 
SALARIES AND EXPENSES 
For necessary expenses of the Treasury Inspector General for 
Tax Administration in carrying out the Inspector General Act of 
1978, as amended, including purchase (not to exceed 150 for replace-
ment only for police-type use) and hire of passenger motor vehicles 
(31 U.S.C. 1343(b)); services authorized by 5 U.S.C. 3109, at such 
rates as may be determined by the Inspector General for Tax 
Administration; not to exceed $6,000,000 for official travel expenses; 
and not to exceed $500,000 for unforeseen emergencies of a confiden-
tial nature, to be allocated and expended under the direction of 
the Inspector General for Tax Administration, $118,427,000. 
TREASURY BUILDING AND ANNEX REPAIR AND RESTORATION 
For the repair, alteration, and improvement of the Treasury 
Building and Annex, $31,000,000, to remain available until 
expended. 
EXPANDED ACCESS TO FINANCIAL SERVICES 
(INCLUDING TRANSFER OF FUNDS) 
To develop and implement programs to expand access to finan-
cial services for low- and moderate-income individuals, $2,000,000, 
to remain available until expended: Provided, That of these funds, 
such sums as may be necessary may be transferred to accounts 
of the Department's offices, bureaus, and other organizations: Pro-
vided further. That this transfer authority shall be in addition 
to any other transfer authority provided in this Act. 
FINANCIAL CRIMES ENFORCEMENT NETWORK 
SALARIES AND EXPENSES 
For necessary expenses of the Financial Crimes Enforcement 
Network, including hire of passenger motor vehicles; travel expenses 
of non-Federal law enforcement personnel to attend meetings con-
cerned with financial intelligence activities, law enforcement, and 
financial regulation; not to exceed $14,000 for official reception 
and representation expenses; and for assistance to Federal law 
enforcement agencies, with or without reimbursement, $37,576,000, 
of which not to exceed $2,800,000 shall remain available until 
September 30, 2003; and of which $2,275,000 shall remain available 
PUBLIC LAW 106-554—APPENDIX C 
114 STAT. 2763A-127 
until September 30, 2002: Provided, That funds appropriated in 
this account may be used to procure personal services contracts. 
COUNTERTERRORISM FUND 
For necessary expenses, as determined by the Secretary, 
$55,000,000, to remain available until expended, to reimburse any 
Department of the Treasury organization for the costs of providing 
support to counter, investigate, or prosecute terrorism, including 
payment of rewards in connection with these activities: Provided, 
That the entire amount is designated by the Congress as an emer-
gency requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended: 
Provided further. That the entire amount shall be available only 
to the extent that an official budget request for a specific dollar 
amount that includes designation of the entire amount of the 
request as an emergency requirement as defined in such Act is 
transmitted by the President to the Congress. 
FEDERAL LAW ENFORCEMENT TRAINING CENTER 
SALARIES AND EXPENSES 
For necessary expenses of the Federal Law Enforcement Train-
ing Center, as a bureau of the Department of the Treasury, includ-
ing materials and support costs of Federal law enforcement basic 
training; purchase (not to exceed 52 for police-type use, without 
regard to the general purchase price limitation) and hire of pas-
senger motor vehicles; for expenses for student athletic and related 
activities; uniforms without regard to the general purchase price 
limitation for the current fiscal year; the conducting of and partici-
pating in firearms matches and presentation of awards; for public 
awareness and enhancing community support of law enforcement 
training; not to exceed $11,500 for official reception and representa-
tion expenses; room and board for student interns; and services 
as authorized by 5 U.S.C. 3109, $94,483,000, of which up to 
$17,043,000 for materials and support costs of Federal law enforce-
ment basic training shall remain available until September 30, 
2003: Provided, That the Center is authorized to accept and use 
gifts of property, both real and personal, and to accept services, 
for authorized purposes, including funding of a gift of intrinsic 
value which shall be awarded annually by the Director of the 
Center to the outstanding student who graduated from a basic 
training program at the Center during the previous fiscal year, 
which shall be funded only by gifts received through the Center's 
gift authority: Provided further, That notwithstsmding any other 
provision of law, students attending training at any Federal Law 
Enforcement Training Center site shall reside in on-Center or Cen-
ter-provided housing, insofar as available and in accordance with 
Center policy: Provided further, That funds appropriated in this 
account shall be available, at the discretion of the Director, for 
the following: training United States Postal Service law enforcement 
personnel and Postal police officers; State and local government 
law enforcement training on a space-available basis; training of 
foreign law enforcement officials on a space-available basis with 
reimbursement of actual costs to this appropriation, except that 
reimbursement may be waived by the Secretary for law enforcement 
114 STAT. 2763A-128 
PUBLIC LAW 106-554—APPENDIX C 
training activities in foreign countries undertaken pursuant to sec-
tion 801 of the Antiterrorism and Effective Death Penalty Act 
of 1996, Public Law 104—32; training of private sector security 
officials on a space-available basis with reimbursement of actual 
costs to this appropriation; and travel expenses of non-Federal 
personnel to attend course development meetings and training spon-
sored by the Center: Provided further, That the Center is authorized 
to obligate funds in anticipation of reimbursements from agencies 
receiving training sponsored by the Federal Law Enforcement 
Training Center, except that total obligations at the end of the 
fiscal year shall not exceed total budgetary resources available 
at the end of the fiscal year: Provided further. That the Federal 
Law Enforcement Training Center is authorized to provide training 
for the Gang Resistance Education and Training program to Federal 
and non-Federal personnel at any facility in partnership with the 
Bureau of Alcohol, Tobacco and Firearms: Provided further. That 
the Federal Law Enforcement Training Center is authorized to 
provide short-term medical services for students undergoing train-
ing at the Center. 
ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED 
EXPENSES 
For expansion of the Federal Law Enforcement Training Center, 
for acquisition of necessary additional real property and facilities, 
and for ongoing maintenance, facility improvements, and related 
expenses, $29,205,000, to remain available until expended. 
INTERAGENCY LAW ENFORCEMENT 
INTERAGENCY CRIME AND DRUG ENFORCEMENT 
For expenses necessary to conduct investigations and convict 
offenders involved in organized crime drug trafficking, including 
cooperative efforts with State and local law enforcement, as it 
relates to the Treasury Department law enforcement violations 
such 
as 
money 
laundering, 
violent 
crime, 
and 
smuggling, 
$103,476,000, of which $7,827,000 shall remain available until 
expended. 
FINANCIAL MANAGEMENT SERVICE 
SALARIES AND EXPENSES 
For necessary expenses of the Financial Management Service, 
$206,851,000, of which not to exceed $10,635,000 shall remain 
available until September 30, 2003, for information systems mod-
ernization initiatives; and of which not to exceed $2,500 shall be 
available for official reception and representation expenses. 
BUREAU OF ALCOHOL, TOBACCO AND FIREARMS 
SALARIES AND EXPENSES 
For necessary expenses of the Bureau of Alcohol, Tobacco and 
Firearms, including purchase of not to exceed 812 vehicles for 
police-type use, of which 650 shall be for replacement only, and 
hire of passenger motor vehicles; hire of aircraft; services of expert 
witnesses at such rates as may be determined by the Director; 
PUBLIC LAW 106-554—APPENDIX C 
114 STAT. 2763A-129 
for payment of per diem and/or subsistence allowances to employees 
where a major investigative assignment requires an employee to 
work 16 hours or more per day or to remain overnight at his 
or her post of duty; not to exceed $20,000 for official reception 
and representation expenses; for training of State and local law 
enforcement agencies with or without reimbursement, including 
training in connection with the training and acquisition of canines 
for explosives and fire accelerants detection; not to exceed $50,000 
for cooperative research and development programs for Laboratory 
Services and Fire Research Center activities; and provision of lab-
oratory assistance to State and local agencies, with or without 
reimbursement, $768,695,000, of which not to exceed $1,000,000 
shall be available for the payment of attorneys' fees as provided 
by 18 U.S.C. 924(d)(2); of which up to $2,000,000 shall be available 
for the equipping of any vessel, vehicle, equipment, or aircraft 
available for official use by a State or local law enforcement agency 
if the conveyance will be used in joint law enforcement operations 
with the Bureau of Alcohol, Tobacco and Firearms and for the 
payment of overtime salaries including Social Security and Medi-
care, travel, fuel, training, equipment, supplies, and other similar 
costs of State and local law enforcement personnel, including sworn 
officers and support personnel, that are incurred in joint operations 
with the Bureau of Alcohol, Tobacco and Firearms: Provided, That 
no funds made available by this or any other Act may be used 
to transfer the functions, missions, or activities of the Bureau 
of Alcohol, Tobacco and Firearms to other agencies or Departments 
in fiscal year 2001: Provided further. That no funds appropriated 
herein shall be available for salaries or administrative expenses 
in connection with consolidating or centralizing, within the Depart-
ment of the Treasury, the records, or any portion thereof, of acquisi-
tion and disposition of firearms maintained by Federal firearms 
licensees: Provided further, That no funds appropriated herein shall 
be used to pay administrative expenses or the compensation of 
any officer or employee of the United States to implement an 
amendment or amendments to 27 CFR 178.118 or to change the 
definition of "Curios or relics" in 27 CFR 178.11 or remove any 
item from ATF Publication 5300.11 as it existed on January 1, 
1994: Provided further. That none of the funds appropriated herein 
shall be available to investigate or act upon applications for relief 
from Federal firearms disabilities under 18 U.S.C. 925(c): Provided 
further. That such funds shall be available to investigate and act 
upon applications filed by corporations for relief from Federal fire-
arms disabilities under 18 U.S.C. 925(c): Provided further. That 
no funds under this Act may be used to electronically retrieve 
information gathered pursuant to 18 U.S.C. 923(g)(4) by name 
or any personal identification code. 
UNITED STATES CUSTOMS SERVICE 
SALARIES AND EXPENSES 
For necessary expenses of the United States Customs Service, 
including purchase and lease of up to 1,050 motor vehicles of 
which 550 are for replacement only and of which 1,030 are for 
police-type use and commercial operations; hire of motor vehicles; 
contracting with individuals for personal services abroad; not to 
exceed $40,000 for official reception and representation expenses; 
and awards of compensation to informers, as authorized by any 
114 STAT. 2763A-130 
PUBLIC LAW 106-554—APPENDIX C 
Act enforced by the United States Customs Service, $1,863,765,000, 
of which such sums as become available in the Customs User 
Fee Account, except sums subject to section 13031(f)(3) of the 
Consolidated Omnibus Budget Reconciliation Act of 1985, as amend-
ed (19 U.S.C. 58c(f)(3)), shall be derived from that Account; of 
the total, not to exceed $150,000 shall be available for payment 
for rental space in connection with preclearance operations; not 
to exceed $4,000,000 shall be available until expended for research; 
of which not less than $100,000 shall be available to promote 
public awareness of the child pornography tipline; of which not 
less than $200,000 shall be available for Project Alert; not to exceed 
$5,000,000 shall be available until expended for conducting special 
operations pursuant to 19 U.S.C. 2081; not to exceed $8,000,000 
shall be available until expended for the procurement of automation 
infrastructure items, including hardware, software, and installation; 
and not to exceed $5,000,000 shall be available until expended 
for repairs to Customs facilities: Provided, That uniforms may be 
purchased without regard to the general purchase price limitation 
for the current fiscal year: Provided further. That notwithstanding 
any other provision of law, the fiscal year aggregate overtime limita-
tion prescribed in subsection 5(c)(1) of the Act of February 13, 
1911 (19 U.S.C. 261 and 267) shall be $30,000. 
HARBOR MAINTENANCE FEE COLLECTION 
(INCLUDING TRANSFER OF FUNDS) 
For administrative expenses related to the collection of the 
Harbor Maintenance Fee, pursuant to Public Law 103-182, 
$3,000,000, to be derived from the Harbor Maintenance Trust Fund 
and to be transferred to and merged with the Customs "Salaries 
and Expenses" account for such purposes. 
OPERATION, MAINTENANCE AND PROCUREMENT, AIR AND MARINE 
INTERDICTION PROGRAMS 
For expenses, not otherwise provided for, necessary for the 
operation and maintenance of marine vessels, aircraft, and other 
related equipment of the Air and Marine Programs, including oper-
ational training and mission-related travel, and rental payments 
for facilities occupied by the air or marine interdiction and demand 
reduction programs, the operations of which include the following: 
the interdiction of narcotics and other goods; the provision of sup-
port to Customs and other Federal, State, and local agencies in 
the enforcement or administration of laws enforced by the Customs 
Service; smd, at the discretion of the Commissioner of Customs, 
the provision of assistance to Federal, State, and local agencies 
in other law enforcement and emergency humanitarian efforts, 
$133,228,000, which shall remain available until expended: Pro-
vided, That no aircrsift or other related equipment, with the excep-
tion of aircraft which is one of a kind and has been identified 
as excess to Customs requirements and aircraft which has been 
damaged beyond repair, shall be transferred to any other Federal 
agency, department, or office outside of the Department of the 
Treasury, during fiscal year 2001 without the prior approval of 
the Committees on Appropriations. 
PUBLIC LAW 106-554—APPENDIX C 
114 STAT. 2763A-131 
AUTOMATION MODERNIZATION 
For expenses not otherwise provided for Customs automated 
systems, $258,400,000, to remain available until expended, of which 
$5,400,000 shall be for the International Trade Data System, and 
not less than $130,000,000 shall be for the development of the 
Automated Commercial Environment: Provided, That none of the 
funds appropriated under this heading may be obligated for the 
Automated Commercial Environment until the United States Cus-
toms Service prepares and submits to the Committees on Appropria-
tions a final plan for expenditure that: (1) meets the capital plan-
ning and investment control review requirements established by 
the Office of Management and Budget, including 0MB Circular 
A-11, part 3; (2) complies with the United States Customs Service's 
Enterprise Information Systems Architecture; (3) complies with the 
acquisition rules, requirements, guidelines, and systems acquisition 
management practices of the Federal Government; (4) is reviewed 
and approved by the Customs Investment Review Board, the 
Department of the Treasury, and the Office of Management and 
Budget; and (5) is reviewed by the General Accounting Office: 
Provided further. That none of the funds appropriated under this 
heading may be obligated for the Automated Commercial Environ-
ment until that final expenditure plan has been approved by the 
Committees on Appropriations. 
BUREAU OF THE PUBLIC DEBT 
ADMINISTERING THE PUBLIC DEBT 
For necessary expenses connected with smy public-debt issues 
of the United States, $187,301,000, of which not to exceed $2,500 
shall be available for official reception and representation expenses, 
and of which not to exceed $2,000,000 shall remain available until 
expended for systems modernization: Provided, That the sum appro-
priated herein from the General F\md for fiscal year 2001 shall 
be reduced by not more than $4,400,000 as definitive security 
issue fees and Treasury Direct Investor Account Maintenance fees 
are collected, so as to result in a final fiscal year 2001 appropriation 
from the General Fund estimated at $182,901,000. In addition, 
$23,600, to be derived from the Oil Spill Liability Trust Fund 
to reimburse the Bureau for administrative and personnel expenses 
for financial management of the Fund, as authorized by section 
1012 of Public Law 101-380; and in addition, to be appropriated 
from the General Fund, such sums as may be necessary for adminis-
trative expenses in association with the South Dakota Trust Fund 
and the Cheyenne River Sioux Tribe Terrestrial Wildlife Restoration 
and Lower Brule Sioux Tribe Terrestrial Restoration Trust Fund, 
as authorized by sections 603(f) and 604(f) of Public Law 106-
53. 
INTERNAL REVENUE SERVICE 
PROCESSING, ASSISTANCE, AND MANAGEMENT 
For necessary expenses of the Internal Revenue Service for 
tax returns processing; revenue accounting; tax law and account 
assistance to taxpayers by telephone and correspondence; providing 
an independent taxpayer advocate within the Service; programs 
114 STAT. 2763A-132 
PUBLIC LAW 106-554—APPENDIX C 
to match information returns and tax returns; management serv-
ices; rent and utilities; and services as authorized by 5 U.S.C. 
3109, at such rates as may be determined by the Commissioner, 
$3,567,001,000, of which up to $3,950,000 shall be for the Tax 
Counseling for the Elderly Program, and of which not to exceed 
$25,000 shall be for official reception and representation expenses. 
TAX LAW ENFORCEMENT 
For necessary expenses of the Internal Revenue Service for 
determining and establishing tax liabilities; providing litigation sup-
port; issuing technical rulings; providing service to tax exempt 
customers, including employee plans, tax exempt organizations, 
and government entities; examining employee plans and exempt 
organizations; conducting criminal investigation and enforcement 
activities; securing unfiled tax returns; collecting unpaid accounts; 
compiling statistics of income and conducting compliance research; 
purchase (for police-type use, not to exceed 850) and hire of pas-
senger motor vehicles (31 U.S.C. 1343(b)); and services as author-
ized by 5 U.S.C. 3109, at such rates as may be determined by 
the 
Commissioner, 
$3,382,402,000, of which not 
to 
exceed 
$1,000,000 shall remain available until September 30, 2003, for 
research. 
EARNED INCOME TAX CREDIT COMPLIANCE INITIATIVE 
For funding essential earned income tax credit compliance and 
error reduction initiatives pursuant to section 5702 of the Balanced 
Budget Act of 1997 (Public Law 105-33), $145,000,000, of which 
not to exceed $10,000,000 may be used to reimburse the Social 
Security Administration for the costs of implementing section 1090 
of the Taxpayer Relief Act of 1997. 
INFORMATION SYSTEMS 
For necessary expenses of the Internal Revenue Service for 
information systems and telecommunications support, including 
developmental information systems and operational information 
systems; the hire of passenger motor vehicles (31 U.S.C. 1343(b)); 
and services as authorized by 5 U.S.C. 3109, at such rates as 
may be determined by the Commissioner, $1,545,090,000 which 
shall remain available until September 30, 2002. 
ADMINISTRATIVE PROVISIONS—INTERNAL REVENUE SERVICE 
SEC. 101. Not to exceed 5 percent of any appropriation made 
available in this Act to the Internal Revenue Service may be trans-
ferred to any other Internal Revenue Service appropriation upon 
the advance approval of the Committees on Appropriations. 
SEC. 102. The Internal Revenue Service shall maintain a train-
ing program to ensure that Internal Revenue Service employees 
are trained in taxpayers' rights, in dealing courteously with the 
taxpayers, and in cross-cultural relations. 
SEC. 103. The Internal Revenue Service shall institute and 
enforce policies and procedures that will safeguard the confidential-
ity of taxpayer information. 
SEC. 104. Funds made available by this or any other Act to 
the Internal Revenue Service shall be available for improved facili-
ties and increased manpower to provide sufficient and effective 
PUBLIC LAW 106-554^APPENDIX C 
114 STAT. 2763A-133 
1-800 help line service for taxpayers. The Commissioner shall con-
tinue to make the improvement of the Internal Revenue Service 
1-800 help line service a priority and allocate resources necessary 
to increase phone lines and staff to improve the Internal Revenue 
Service 1-800 help line service. 
UNITED STATES SECRET SERVICE 
SALARIES AND EXPENSES 
For necessary expenses of the United States Secret Service, 
including purchase of not to exceed 844 vehicles for police-type 
use, of which 541 shall be for replacement only, and hire of pas-
senger motor vehicles; purchase of American-made side-car compat-
ible motorcycles; hire of aircraft; training and assistance requested 
by State and local governments, which may be provided without 
reimbursement; services of expert witnesses at such rates as may 
be determined by the Director; rental of buildings in the District 
of Columbia, and fencing, lighting, guard booths, and other facilities 
on private or other property not in Government ownership or con-
trol, as may be necessary to perform protective functions; for pay-
ment of per diem and/or subsistence allowances to employees where 
a protective assignment during the actual day or days of the visit 
of a protectee require an employee to work 16 hours per day 
or to remain overnight at his or her post of duty; the conducting 
of and participating in firearms matches; presentation of awards; 
for travel of Secret Service employees on protective missions without 
regard to the limitations on such expenditures in this or any other 
Act if approval is obtained in advance from the Committees on 
Appropriations; for research and development; for making grants 
to conduct behavioral research in support of protective research 
and operations; not to exceed $25,000 for official reception and 
representation expenses; not to exceed $100,000 to provide technical 
assistance and equipment to foreign law enforcement organizations 
in counterfeit investigations; for payment in advance for commercial 
accommodations as may be necessary to perform protective func-
tions; and for uniforms without regard to the general purchase 
price limitation for the current fiscal year, $823,800,000, of which 
$3,633,000 shall be available as a grant for activities related to 
the investigations of exploited children and shall remain available 
until expended: Provided, That up to $18,000,000 provided for 
protective travel shall remain available until September 30, 2002. 
ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED 
EXPENSES 
For necessary expenses of construction, repair, alteration, and 
improvement of facilities, $8,941,000, to remain available until 
expended. 
GENERAL PROVISIONS—^DEPARTMENT OF THE TREASURY 
SEC. 110. Any obligation or expenditure by the Secretary of 
the Treasury in connection with law enforcement activities of a 
Federal agency or a Department of the Treasury law enforcement 
organization in accordance with 31 U.S.C. 9703(g)(4)(B) from unobli-
gated balances remaining in the Fund on September 30, 2001, 
shall be made in compliance with reprogramming guidelines. 
114 STAT. 2763A-134 
PUBLIC LAW 106-554—APPENDIX C 
SEC. 111. Appropriations to the Department of the Treasury 
in this Act shall be available for uniforms or allowances therefor, 
as authorized by law (5 U.S.C. 5901), including maintenance, 
repairs, and cleaning; purchase of insurance for official motor 
vehicles operated in foreign countries; purchase of motor vehicles 
without regard to the general purchase price limitations for vehicles 
purchased and used overseas for the current fiscal year; entering 
into contracts with the Department of State for the furnishing 
of health and medical services to employees and their dependents 
serving in foreign countries; and services authorized by 5 U.S.C. 
3109. 
SEC. 112. The funds provided to the Bureau of Alcohol, Tobacco 
and Firearms for fiscal year 2001 in this Act for the enforcement 
of the Federal Alcohol Administration Act shall be expended in 
a manner so as not to diminish enforcement efforts with respect 
to section 105 of the Federal Alcohol Administration Act. 
SEC. 113. Not to exceed 2 percent of any appropriations in 
this Act made available to the Federal Law Enforcement Training 
Center, Financial Crimes Enforcement Network, Bureau of Alcohol, 
Tobacco and Firearms, United States Customs Service, and United 
States Secret Service may be transferred between such appropria-
tions upon the advance approval of the Committees on Appropria-
tions. No transfer may increase or decrease any such appropriation 
by more than 2 percent. 
SEC. 114. Not to exceed 2 percent of any appropriations in 
this Act made available to the Departmental Offices, Office of 
Inspector General, Treasury Inspector General for Tax Administra-
tion, Financial Management Service, and Bureau of the Public 
Debt, may be transferred between such appropriations upon the 
advance approval of the Committees on Appropriations. No transfer 
may increase or decrease any such appropriation by more than 
2 percent. 
SEC. 115. Not to exceed 2 percent of any appropriation made 
available in this Act to the Internal Revenue Service may be trans-
ferred to the Treasury Inspector General for Tax Administration's 
appropriation upon the advance approval of the Committees on 
Appropriations. No transfer may increase or decrease any such 
appropriation by more than 2 percent. 
SEC. 116. Of the funds available for the purchase of law enforce-
ment vehicles, no funds may be obligated until the Secretary of 
the Treasury certifies that the purchase by the respective Treasury 
bureau is consistent with Departmental vehicle management prin-
ciples: Provided, That the Secretary may delegate this authority 
to the Assistant Secretary for Management. 
SEC. 117. None of the funds appropriated in this Act or other-
wise available to the Department of the Treasury or the Bureau 
of Engraving and Printing may be used to redesign the $1 Federal 
Reserve note. 
SEC. 118. Hereafter, funds made available by this or any other 
Act may be used to pay premium pay for protective services author-
ized by section 3056(a) of title 18, United States Code, without 
regard to the limitation on the rate of pay payable during a pay 
period contained in section 5547(c)(2) of title 5, United States Code, 
except that such premium pay shall not be payable to an employee 
PUBLIC LAW 106-554^APPENDIX C 
114 STAT. 2763A-135 
to the extent that the aggregate of the employee's basic and pre-
mium pay for the year would otherwise exceed the annual equiva-
lent of that limitation. The term premium pay refers to the provi-
sions of law cited in the first sentence of section 5547(a) of title 
5, United States Code. Payment of additional premium pay payable 
under this section may be made in a lump sum on the last payday 
of the calendar year. 
SEC. 119. The Secretary of the Treasury may transfer funds 
from "Salaries and Expenses", Financial Management Service, to 
the Debt Services Account as necessary to cover the costs of debt 
collection: Provided, That such amounts shall be reimbursed to 
such Salaries and Expenses account from debt collections received 
in the Debt Services Account. 
SEC. 120. Under the heading of Treasury Franchise Fund in 
Public Law 104-208, delete the following: the phrases "pilot, as 
authorized by section 403 of Public Law 103-356,"; and "as provided 
in such section"; and the final proviso. After the phrase "to be 
available", insert "without fiscal year limitation,". After the phrase, 
"established in the Treasury a franchise fund", insert, "until October 
1, 2002". 
SEC. 121. Notwithstanding any other provision of law, no 
reorganization of the field operations of the United States Customs 
Service Office of Field Operations shall result in a reduction in 
service to the area served by the Port of Racine, Wisconsin, below 
the level of service provided in fiscal year 2000. 
SEC. 122. Notwithstanding any other provision of law, the 
Bureau of Alcohol, Tobacco and Firearms shall reimburse the sub-
contractor that provided services in 1993 and 1994 pursuant to 
Bureau of Alcohol, Tobacco and Firearms contract number TATF 
93-3 from amounts appropriated for fiscal year 2001 or unobligated 
balances from prior fiscal years, and such reimbursement shall 
cover the cost of all professional services rendered, plus interest 
calculated in accordance with the Contract Dispute Act of 1978 
(41 U.S.C. 601 et seq.). 
This title may be cited as the "Treasury Department Appropria-
tions Act, 2001". 
TITLE II—POSTAL SERVICE 
PAYMENT TO THE POSTAL SERVICE FUND 
For payment to the Postal Service Fund for revenue forgone 
on free and reduced rate mail, pursuant to subsections (c) and 
(d) of section 2401 of title 39, United States Code, $96,093,000, 
of which $67,093,000 shall not be available for obligation until 
October 1, 2001: Provided, That mail for overseas voting and mail 
for the blind shall continue to be free: Provided further, 
That 
6-day delivery and rural delivery of mail shall continue at not 
less than the 1983 level: Provided further. That none of the funds 
made available to the Postal Service by this Act shall be used 
to implement any rule, regulation, or policy of charging any officer 
or employee of any State or local child support enforcement agency, 
or any individual participating in a State or local program of child 
support enforcement, a fee for information requested or provided 
concerning an address of a postal customer: Provided further. That 
none of the funds provided in this Act shall be used to consolidate 
114 STAT. 2763A-136 
PUBLIC LAW 106-554—APPENDIX C 
or close small rural and other small post offices in fiscal year 
2001. 
This title may be cited as the "Postal Service Appropriations 
Act, 2001". 
TITLE III—EXECUTIVE OFFICE OF THE PRESIDENT AND 
FUNDS APPROPRIATED TO THE PRESIDENT 
COMPENSATION OF THE PRESIDENT AND THE WHITE HOUSE OFFICE 
COMPENSATION OF THE PRESIDENT 
For compensation of the President, including an expense allow-
ance at the rate of $50,000 per annum as authorized by 3 U.S.C. 
102, $390,000: Provided, That none of the funds made available 
for official expenses shall be expended for any other purpose and 
any unused amount shall revert to the Treasury pursuant to section 
1552 of title 31, United States Code: Provided further. That none 
of the funds made available for official expenses shall be considered 
as taxable to the President. 
SALARIES AND EXPENSES 
For necessary expenses for the White House as authorized 
by law, including not to exceed $3,850,000 for services as authorized 
by 5 U.S.C. 3109 and 3 U.S.C. 105; subsistence expenses as author-
ized by 3 U.S.C. 105, which shall be expended and accounted 
for as provided in that section; hire of passenger motor vehicles, 
newspapers, periodicals, teletype news service, and travel (not to 
exceed $100,000 to be expended and accounted for as provided 
by 3 U.S.C. 103); and not to exceed $19,000 for official entertain-
ment expenses, to be available for allocation within the Executive 
Office of the President, $53,288,000: Provided, That $9,072,000 
of the funds appropriated shall be available for reimbursements 
to the White House Communications Agency. 
EXECUTIVE RESIDENCE AT THE WHITE HOUSE 
OPERATING EXPENSES 
For the care, maintenance, repair and alteration, refurnishing, 
improvement, heating, and lighting, including electric power and 
fixtures, of the Executive Residence at the White House and official 
entertainment expenses of the President, $10,900,000, to be 
expended and accounted for as provided by 3 U.S.C. 105, 109, 
110, and 112-114. 
REIMBURSABLE EXPENSES 
For the reimbursable expenses of the Executive Residence at 
the White House, such sums as may be necessary: Provided, That 
all reimbursable operating expenses of the Executive Residence 
shall be made in accordance with the provisions of this paragraph: 
Provided further, That, notwithstanding any other provision of law, 
such amount for reimbursable operating expenses shall be the exclu-
sive authority of the Executive Residence to incur obligations and 
to receive offsetting collections, for such expenses: Provided further. 
That the Executive Residence shall require each person sponsoring 
a reimbursable political event to pay in advance an amount equal 
PUBLIC LAW 106-554—APPENDIX C 
114 STAT. 2763A-137 
to the estimated cost of the event, and all such advance payments 
shall be credited to this account and remain available until 
expended: Provided further. That the Executive Residence shall 
require the national committee of the political party of the President 
to maintain on deposit $25,000, to be separately accounted for 
and available for expenses relating to reimbursable political events 
sponsored by such committee during such fiscal year: Provided 
further, That the Executive Residence shall ensure that a written 
notice of any amount owed for a reimbursable operating expense 
under this paragraph is submitted to the person owing such amount 
within 60 days after such expense is incurred, and that such amount 
is collected within 30 days after the submission of such notice: 
Provided further. That the Executive Residence shall charge interest 
and assess penalties and other charges on any such amount that 
is not reimbursed within such 30 days, in accordance with the 
interest and penalty provisions applicable to an outstanding debt 
on a United States Government claim under section 3717 of title 
31, United States Code: Provided further. That each such amount 
that is reimbursed, and any accompanying interest and charges, 
shall be deposited in the Treasury as miscellaneous receipts: Pro-
vided further, That the Executive Residence shall prepare and 
submit to the Committees on Appropriations, by not later than 
90 days after the end of the fiscal year covered by this Act, a 
report setting forth the reimbursable operating expenses of the 
Executive Residence during the preceding fiscal year, including 
the total amount of such expenses, the amount of such total that 
consists of reimbursable official and ceremonial events, the amount 
of such total that consists of reimbursable political events, and 
the portion of each such amount that has been reimbursed as 
of the date of the report: Provided further, That the Executive 
Residence shall msiintain a system for the tracking of expenses 
related to reimbursable events within the Executive Residence that 
includes a standard for the classification of any such expense as 
political or nonpolitical: Provided further. That no provision of this 
paragraph may be construed to exempt the Executive Residence 
from £my other applicable requirement of subchapter I or II of 
chapter 37 of title 31, United States Code. 
WHITE HOUSE REPAIR AND RESTORATION 
For the repair, alteration, and improvement of the Executive 
Residence at the White House, $968,000, to remain available until 
expended, for projects for required maintenance, safety and health 
issues, Presidential transition, telecommunications infrastructure 
repair, and continued preventive maintenance. 
SPECIAL ASSISTANCE TO THE PRESIDENT AND THE OFFICIAL 
RESIDENCE OF THE VICE PRESIDENT 
SALARIES AND EXPENSES 
For necessary expenses to enable the Vice President to provide 
assistance to the President in connection with specially assigned 
functions; services as authorized by 5 U.S.C. 3109 and 3 U.S.C. 
106, including subsistence expenses as authorized by 3 U.S.C. 106, 
which shall be expended and accounted for as provided in that 
section; and hire of passenger motor vehicles, $3,673,000. 
114 STAT. 2763A-138 
PUBLIC LAW 106-554—APPENDIX C 
OPERATING EXPENSES 
(INCLUDING TRANSFER OF FUNDS) 
For the care, operation, refurnishing, improvement, heating 
and lighting, including electric power and fixtures, of the official 
residence of the Vice President; the hire of passenger motor vehicles; 
and not to exceed $90,000 for official entertainment expenses of 
the Vice President, to be accounted for solely on his certificate, 
$354,000: Provided, That advances or repayments or transfers from 
this appropriation may be made to any department or agency for 
expenses of carrying out such activities. 
COUNCIL OF ECONOMIC ADVISERS 
SALARIES AND EXPENSES 
For necessary expenses of the Council of Economic Advisers 
in carrying out its functions under the Employment Act of 1946 
(15 U.S.C. 1021), $4,110,000. 
OFFICE OF POLICY DEVELOPMENT 
SALARIES AND EXPENSES 
For necessary expenses of the Office of Policy Development, 
including services as authorized by 5 U.S.C. 3109 and 3 U.S.C. 
107, $4,032,000. 
NATIONAL SECURITY COUNCIL 
SALARIES AND EXPENSES 
For necessary expenses of the National Security Council, includ-
ing services as authorized by 5 U.S.C. 3109, $7,165,000. 
OFFICE OF ADMINISTRATION 
SALARIES AND EXPENSES 
For necessary expenses of the Office of Administration, includ-
ing services as authorized by 5 U.S.C. 3109 and 3 U.S.C. 107, 
and hire of passenger motor vehicles, $43,737,000, of which 
$9,905,000 shall be available until September 30, 2002 for a capital 
investment plan which provides for the continued modernization 
of the information technology infrastructure. 
OFFICE OF MANAGEMENT AND BUDGET 
SALARIES A N D EXPENSES 
For necessary expenses of the Office of Management and 
Budget, including hire of passenger motor vehicles and services 
as authorized by 5 U.S.C. 3109, $68,786,000, of which not to exceed 
$5,000,000 shall be available to carry out the provisions of chapter 
35 of title 44, United States Code: Provided, That, as provided 
in 31 U.S.C. 1301(a), appropriations shall be applied only to the 
objects for which appropriations were made except as otherwise 
provided by law: Provided further. That none of the funds appro-
priated in this Act for the Office of Management and Budget may 
PUBLIC LAW 106-554—APPENDIX C 
114 STAT. 2763A-139 
be used for the purpose of reviewing any agricultural marketing 
orders or any activities or regulations under the provisions of the 
Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 601 et 
seq.): Provided further, That none of the funds made available 
for the Office of Management and Budget by this Act may be 
expended for the altering of the transcript of actual testimony 
of witnesses, except for testimony of officials of the Office of Manage-
ment and Budget, before the Committees on Appropriations or 
the Committees on Veterans' Affairs or their subcommittees: Pro-
vided further, That the preceding shall not apply to printed hearings 
released by the Committees on Appropriations or the Committees 
on Veterans'Affairs. 
OFFICE OF NATIONAL DRUG CONTROL POLICY 
SALARIES AND EXPENSES 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses of the Office of National Drug Control 
Policy; for research activities pursuant to the Office of National 
Drug Control Policy Reauthorization Act of 1998 (title VII of division 
C of Public Law 105-277); not to exceed $8,000 for official reception 
and representation expenses; and for participation in joint projects 
or in the provision of services on matters of mutual interest with 
nonprofit, research, or public organizations or agencies, with or 
without reimbursement, $24,759,000, of which $2,100,000 shall 
remain available until expended, consisting of $1,100,000 for policy 
research and evaluation, and $1,000,000 for the National Alliance 
for Model State Drug Laws, and up to $600,000 for the evaluation 
of the Drug-Free Communities Act: Provided, That the Office is 
authorized to accept, hold, administer, and utilize gifts, both real 
and personal, public and private, without fiscal year limitation, 
for the purpose of aiding or facilitating the work of the Office. 
COUNTERDRUG TECHNOLOGY ASSESSMENT CENTER 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses for the Coimterdrug Technology Assess-
ment Center for research activities pursuant to the Office of 
National Drug Control Policy Reauthorization Act of 1998 (title 
VII of division C of PubUc Law 105-277), $29,053,000, which shall 
remain available until expended, consisting of $15,803,000 for 
countemarcotics 
research 
and 
development 
projects, 
and 
$13,250,000 for the continued operation of the technology transfer 
program: Provided, 
That the $15,803,000 for counter-narcotics 
research and development projects shall be available for transfer 
to other Federal departments or agencies. 
FEDERAL DRUG CONTROL PROGRAMS 
HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses of the Office of National Drug Control 
Policy's 
High 
Intensity 
Drug 
Trafficking 
Areas 
Program, 
$206,500,000 for drug control activities consistent with the approved 
114 STAT. 2763A-140 
PUBLIC LAW 106-554—APPENDIX C 
strategy for each of the designated High Intensity Drug Trafficking 
Areas, of which no less than 51 percent shall be transferred to 
State and local entities for drug control activities, which shall 
be obligated within 120 days of the date of the enactment of this 
Act: Provided, That up to 49 percent, to remain available until 
September 30, 2002, may be transferred to Federal agencies and 
departments at a rate to be determined by the Director: Provided 
further. That, of this latter amount, $1,800,000 shall be used for 
auditing services: Provided further. That HIDTAs designated as 
of September 30, 2000, shall be funded at fiscal year 2000 levels 
unless the Director submits to the Committees, and the Committees 
approve, justification for changes in those levels based on clearly 
articulated priorities for the HIDTA program, as well as published 
ONDCP performance measures of effectiveness. 
SPECIAL FORFEITURE FUND 
(INCLUDING TRANSFER OF FUNDS) 
For activities to support a national anti-drug campaign for 
youth, and other purposes, authorized by Public Law 105-277, 
$233,600,000, to remain available until expended: Provided, That 
such funds may be transferred to other Federal departments and 
agencies to carry out such activities: Provided further, That of 
the funds provided, $185,000,000 shall be to support a national 
media campaign, as authorized in the Drug-Free Media Campaign 
Act of 1998: Provided further. That of the funds provided, $3,300,000 
shall be made available to the United States Ol5anpic Committee's 
anti-doping program no later than 30 days after the enactment 
of this Act: Provided 
further. 
That of the funds 
provided, 
$40,000,000 shall be to continue a program of matching grants 
to drug-free communities, as authorized in the Drug-Free Commu-
nities Act of 1997: Provided further, That of the funds provided, 
$1,000,000 shall be available to the National Drug Court Institute. 
This title may be cited as the "Executive Office Appropriations 
Act, 2001". 
TITLE IV—INDEPENDENT AGENCIES 
COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR 
SEVERELY DISABLED 
SALARIES AND EXPENSES 
For necessary expenses of the Committee for Purchase From 
People Who Are Blind or Severely Disabled established by the 
Act of June 23, 1971, Pubhc Law 92-28, $4,158,000. 
FEDERAL ELECTION COMMISSION 
SALARIES AND EXPENSES 
For necessary expenses to carry out the provisions of the Fed-
eral Election Campaign Act of 1971, as amended, $40,500,000, 
of which no less than $4,689,500 shall be available for internal 
automated data processing systems, and of which not to exceed 
$5,000 shall be available for reception and representation expenses. 
PUBLIC LAW 106-554—APPENDIX C 
114 STAT. 2763A-141 
FEDERAL LABOR RELATIONS AUTHORITY 
SALARIES AND EXPENSES 
For necessary expenses to carry out functions of the Federal 
Labor Relations Authority, pursuant to Reorganization Plan Num-
bered 2 of 1978, and the Civil Service Reform Act of 1978, including 
services authorized by 5 U.S.C. 3109, including hire of experts 
and consultants, hire of passenger motor vehicles, and rental of 
conference rooms in the District of Columbia and elsewhere, 
$25,058,000: Provided, That public members of the Federal Service 
Impasses Panel may be paid travel expenses and per diem in 
lieu of subsistence as authorized by law (5 U.S.C. 5703) for persons 
employed intermittently in the Government service, and compensa-
tion as authorized by 5 U.S.C. 3109: Provided further, That notwith-
standing 31 U.S.C. 3302, funds received from fees charged to non-
Federal participants at labor-management relations conferences 
shall be credited to and merged with this account, to be available 
without further appropriation for the costs of carrying out these 
conferences. 
GENERAL SERVICES ADMINISTRATION 
REAL PROPERTY ACTIVITIES 
FEDERAL BUILDINGS FUND 
LIMITATIONS ON AVAILABILITY OF REVENUE 
(INCLUDING TRANSFER OF FUNDS) 
For an additional amount to be deposited in, smd to be used 
for the purposes of, the Fund established pursuant to section 210(f) 
of the Federal Property and Administration Act of 1949, as amended 
(40 U.S.C. 490(f)), $464,154,000. The revenues and collections 
deposited into the Fund shall be available for necessary expenses 
of real property management and related activities not otherwise 
provided for, including operation, maintenance, and protection of 
federally-owned and leased buildings; rental of buildings in the 
District of Columbia; restoration of leased premises; moving govern-
mental agencies (including space adjustments and telecommuni-
cations relocation expenses) in connection with the assignment, 
allocation and transfer of space; contractual services incident to 
cleaning or servicing buildings, and moving; repair and alteration 
of federally-owned buildings including grounds, approaches and 
appurtenances; care and safeguarding of sites; maintenance, 
preservation, demolition, and equipment; acquisition of buildings 
and sites by purchase, condemnation, or as otherwise authorized 
by law; acquisition of options to purchase buildings and sites; 
conversion and extension of federally-owned buildings; preliminary 
planning and design of projects by contract or otherwise; construc-
tion of new buildings (including equipment for such buildings); 
and payment of principal, interest, and any other obligations for 
public buildings acquired by installment purchase and purchase 
contract; in the aggregate amount of $5,971,509,000 of which: (1) 
$472,176,000 shall remain available until expended for construction 
(including funds for sites and expenses and associated design and 
construction services) of additional projects at the following loca-
tions: Csilifomia, Los Angeles, United States Courthouse; District 
114 STAT. 2763A-142 
PUBLIC LAW 106-554—APPENDIX C 
of Columbia, Bureau of Alcohol, Tobacco and Firearms Head-
quarters; Florida, Saint Petersburg, Combined Law Enforcement 
Facility; Maryland, Montgomery County, Food and Drug Adminis-
tration Consolidation; Michigan, Sault St. Marie, Border Station; 
Mississippi, Biloxi-Gulfport, United States Courthouse; Montana, 
Eureka/Roosville, Border Station; Virginia, Richmond, United 
States Courthouse; Washington, Seattle, United States Courthouse: 
' 
Provided, That funding for any project identified above may be 
exceeded to the extent that savings are effected in other such 
projects, but not to exceed 10 percent of the amounts included 
in an approved prospectus, if required, unless advance approval 
is obtained from the Committees on Appropriations of a greater 
amount: Provided further. That all funds for direct construction 
projects shall expire on September 30, 2002, and remain in the 
Federal Buildings Fund except for funds for projects as to which 
funds for design or other funds have been obligated in whole or 
in part prior to such date; (2) $671,193,000 shall remain available 
until expended for repairs and alterations which includes associated 
design and construction services: Provided further. That funds in 
the Federal Buildings Fund for Repairs and Alterations shall, for 
prospectus projects, be limited to the amount by project, as follows, 
except each project may be increased by an amount not to exceed 
10 percent unless advance approval is obtained from the Commit-
tees on Appropriations of a greater amount: 
Repairs and alterations: 
Arizona: 
Phoenix, Federal Building Courthouse, $26,962,000 
California: 
Santa Ana, Federal Building, $27,864,000 
District of Columbia: 
Internal Revenue Service Headquarters (Phase 1), 
$31 780 000 
'Main State Building, (Phase 3), $28,775,000 
Maryland: 
Woodlawn, SSA National Computer Center, $4,285,000 
Michigan: 
Detroit, McNamara Federal Building, $26,999,000 
Missouri: 
Kansas 
City, 
Richard 
Boiling Federal 
Building, 
$25,882,000 
Kansas City, Federal Building, 8930 Ward Parkway, 
$8,964,000 
Nebraska: 
Omaha, Zorinsky Federal Building, $45,960,000 
New York: 
New York City, 40 Foley Square, $5,037,000 
Ohio: 
Cincinnati, Potter Stewart United States Courthouse, 
$18,434,000 
Pennsylvania: 
Pittsburgh, United States Post 
Office-Courthouse, 
$54,144,000 
Utah: 
Salt Lake City, Bennett Federal Building, $21,199,000 
Virginia: 
Reston, J.W. Powell Federal Building (Phase 2), 
$22,993,000 
PUBLIC LAW 106-554—APPENDIX C 
114 STAT. 2763A-143 
Nationwide: 
Design Program, $21,915,000 
Energy Program, $5,000,000 
Glass Fragment Retention Program, $5,000,000 
Basic Repairs and Alterations, $290,000,000: 
Provided further. That additional projects for which prospectuses 
have been fully approved may be funded under this category only 
if advance notice is transmitted to the Committees on Appropria-
tions: Provided further, That the amounts provided in this or any 
prior Act for "Repairs and Alterations" may be used to fund costs 
associated with implementing security improvements to buildings 
necessary to meet the minimum standards for security in accordance 
with current law and in compliance with the reprogramming guide-
lines of the appropriate Committees of the House and Senate: 
Provided further. That the difference between the funds appro-
priated and expended on any projects in this or any prior Act, 
under the heading "Repairs and Alterations", may be transferred 
to Basic Repairs and Alterations or used to fund authorized 
increases in prospectus projects: Provided further. That all funds 
for repairs and alterations prospectus projects shall expire on 
September 30, 2002, and remain in the Federal Buildings Fund 
except funds for projects as to which funds for design or other 
funds have been obligated in whole or in part prior to such date: 
Provided further. That the amount provided in this or any prior 
Act for Basic Repairs and Alterations may be used to pay claims 
against the Government arising from any projects under the head-
ing "Repairs and Alterations" or used to fund authorized increases 
in prospectus projects; (3) $185,369,000 for installment acquisition 
pa3mients including payments on purchase contracts which shall 
remain available until expended; (4) $2,944,905,000 for rental of 
space which shall remain available until expended; and (5) 
$1,624,771,000 for building operations which shall remain available 
until expended: Provided firther. That in addition to amounts made 
available herein, $276,400,000 shall be deposited to the Fund, to 
become available on October 1, 2001, and remain available until 
expended for the following constiTiction projects (including funds 
for sites and expenses and associated design and construction serv-
ices): District of Columbia, United States Courthouse Annex; Flor-
ida, Miami, United States Courthouse; Massachusetts, Springfield, 
United States Courthouse; New York, Buffalo, United States Court-
house: Provided further. That funding for any project identified 
above may be exceeded to the extent that savings are effected 
in other such projects, but not to exceed 10 percent of the amounts 
included in an approved prospectus, if required, unless advance 
approval is obtained from the Committees on Appropriations of 
a greater amount: Provided further. That funds available to the 
General Services Administration shall not be available for expenses 
of any construction, repair, alteration and acquisition project for 
which a prospectus, if required by the Public Buildings Act of 
1959, as amended, has not been approved, except that necessary 
funds may be expended for each project for required expenses 
for the development of a proposed prospectus: Provided 
further. 
That funds available in the Federal Buildings Fund may be 
expended for emergency repairs when advance approval is obtained 
from the Committees on Appropriations: Provided further. That 
amounts necessary to provide reimbursable special services to other 
agencies under section 210(f)(6) of the Federal Property and 
114 STAT. 2763A-144 
PUBLIC LAW 106-554—APPENDIX C 
Administrative Services Act of 1949, as amended (40 U.S.C. 
490(f)(6)) and amounts to provide such reimbursable fencing, light-
ing, guard booths, and other facilities on private or other property 
not in Government ownership or control as may be appropriate 
to enable the United States Secret Service to perform its protective 
functions pursuant to 18 U.S.C. 3056, shall be available from such 
revenues and collections: Provided further. That revenues and collec-
tions and any other sums accruing to this Fund during fiscal 
year 2001, excluding reimbursements under section 210(f)(6) of 
the Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 490(f)(6)) in excess of $5,971,509,000 shall remain in the 
Fund and shall not be available for expenditure except as authorized 
in appropriations Acts. 
POLICY AND OPERATIONS 
For expenses authorized by law, not otherwise provided for, 
for Government-wide policy and oversight activities associated with 
asset management activities; utilization and donation of surplus 
personal property; transportation; procurement and supply; Govern-
ment-wide responsibilities relating to automated data management, 
telecommunications, 
information 
resources 
management, 
and 
related technology activities; utilization survey, deed compliance 
inspection, appraisal, environmental and cultural analysis, and land 
use planning functions pertaining to excess and surplus real prop-
erty; agency-wide policy direction; Board of Contract Appeals; 
accounting, records management, and other support services 
incident to adjudication of Indian Tribal Claims by the United 
States Court of Federal Claims; services as authorized by 5 U.S.C. 
3109; and not to exceed $5,000 for official reception and representa-
tion expenses, $123,920,000, of which $27,301,000 shall remain 
available until expended: Provided, That none of the funds appro-
priated from this Act shall be available to convert the Old Post 
Office at 1100 Pennsylvania Avenue in Northwest Washington, 
D.C., from office use to any other use imtil a comprehensive plan, 
which shall include street-level retail use, has been approved by 
the Senate Committee on Appropriations, the House Committee 
on Transportation and Infrastructure, and the Senate Committee 
on Environment and Public Works: Provided further. That no funds 
from this Act shall be available to acquire by purchase, condemna-
tion, or otherwise the leasehold rights of the existing lease with 
private parties at the Old Post Office prior to the approval of 
the comprehensive plan by the Senate Committee on Appropria-
tions, the House Committee on Transportation and Infrastructure, 
and the Senate Committee on Environment and Public Works. 
OFFICE OF INSPECTOR GENERAL 
For necessary expenses of the Office of Inspector General and 
services authorized by 5 U.S.C. 3109, $34,520,000: Provided, That 
not to exceed $15,000 shall be available for payment for information 
and detection of fraud against the Government, including pa3mient 
for recovery of stolen Government property: Provided further. That 
not to exceed $2,500 shall be available for awards to employees 
of other Federal agencies and private citizens in recognition of 
efforts and initiatives resulting in enhanced Office of Inspector 
General effectiveness. 
PUBLIC LAW 106-554—APPENDIX C 
114 STAT. 2763A-145 
ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS 
(INCLUDING TRANSFER OF FUNDS) 
For carrying out the provisions of the Act of August 25, 1958, 
as amended (3 U.S.C. 102 note), and Public Law 95-138, $2,517,000: 
Provided, That the Administrator of General Services shall transfer 
to the Secretary of the Treasury such sums as may be necessary 
to carry out the provisions of such Acts. 
EXPENSES, PRESIDENTIAL TRANSITION 
For expenses necessary to carry out the Presidential Transition 
Act of 1963, as amended, $7,100,000. 
GENERAL SERVICES ADMINISTRATION—GENERAL PROVISIONS 
SEC. 401. The appropriate appropriation or fund available to 
the General Services Administration shall be credited with the 
cost of operation, protection, maintenance, upkeep, repair, and 
improvement, included as part of rentals received from Government 
corporations pursuant to law (40 U.S.C. 129). 
SEC. 402. Funds available to the General Services Administra-
tion shall be available for the hire of passenger motor vehicles. 
SEC. 403. Funds in the Federal Buildings Fund made available 
for fiscal year 2001 for Federal Buildings Fund activities may 
be transferred between such activities only to the extent necessary 
to meet program requirements: Provided, That any proposed trans-
fers shall be approved in advance by the Committees on Appropria-
tions. 
SEC. 404. No funds made available by this Act shall be used 
to transmit a fiscal year 2002 request for United States Courthouse 
construction that: (1) does not meet the design guide standards 
for construction as established and approved by the General Serv-
ices Administration, the Judicial Conference of the United States, 
and the Office of Management and Budget; and (2) does not reflect 
the priorities of the Judicial Conference of the United States as 
set out in its approved 5-year construction plan: Provided, That 
the fiscal year 2002 request must be accompanied by a standardized 
courtroom utilization study of each facility to be constructed, 
replaced, or expanded. 
SEC. 405. None of the funds provided in this Act may be 
used to increase the amount of occupiable square feet, provide 
cleaning services, security enhancements, or any other service usu-
ally provided through the Federal Buildings Fund, to any agency 
that does not pay the rate per square foot assessment for space 
and services as determined by the General Services Administration 
in compliance with the Public Buildings Amendments Act of 1972 
(Public Law 92-313). 
SEC. 406. Funds provided to other Government agencies by 
the Information Technology Fund, General Services Administration, 
under 40 U.S.C. 757 and sections 5124(b) and 5128 of Public Law 
104r-106, Information Technology Management Reform Act of 1996, 
for performance of pilot information technology projects which have 
potential for Govemmentwide benefits and savings, may be repaid 
to this Fund from any savings actually incurred by these projects 
or other funding, to the extent feasible. 
114 STAT. 2763A-146 
PUBLIC LAW 106-554—APPENDIX C 
SEC. 407. From fiinds made available under the heading "Fed-
eral Buildings Fund, Limitations on Availability of Revenue", claims 
against the Government of less than $250,000 arising from direct 
construction projects and acquisition of buildings may be liquidated 
from savings effected in other construction projects with prior 
notification to the Committees on Appropriations. 
SEC. 408. Section 411 of Public Law 106-58 is amended by 
striking "April 30, 2001" each place it appears and inserting "April 
30, 2002". 
SEC. 409. DESIGNATION OF RONALD N . DAVIES FEDERAL BUILD-
ING AND UNITED STATES COURTHOUSE, (a) The Federal building 
and courthouse located at 102 North 4th Street, Grand Forks, 
North Dakota, shall be known and designated as the "Ronald N. 
Davies Federal Building and United States Courthouse". 
(b) Any reference in a law, map, regulation, document, paper, 
or other record of the United States to the Federal building and 
courthouse referred to in section 1 shall be deemed to be a reference 
to the Ronald N. Davies Federal Building and United States Court-
house. 
SEC. 410. From the funds made available under the heading 
"Federal Buildings Fund Limitations on Revenue", in addition to 
amounts provided in budget activities above, up to $2,500,000 shall 
be available for the construction of a road and acquisition of the 
property necessary for construction of said road and associated 
port of entry facilities: Provided, That said property shall include 
a 125 foot wide right-of-way beginning approximately 700 feet east 
of Highway 11 at the northeast comer of the existing port facilities 
and going north approximately 4,750 feet and approximately 10.22 
acres adjacent to the port of entry in Township 29 S. Range 8W., 
Section 14: Provided further. That construction of the road shall 
occur only after this property is deeded and conveyed to the United 
States by and through the Greneral Services Administration without 
reimbursement or cost to the United States at the election of 
its current landholder: Provided further, That notwithstanding any 
other provision of law, and subject to the foregoing conditions, 
the Administrator of General Services shall construct a road to 
the Columbus, New Mexico Port of Entry Station on the property, 
connecting the port with a road to be built by the County of 
Luna, New Mexico to connect to State Highway 11: Provided further. 
That notwithstanding any other provision of law, Luna County 
shall construct the roadway from State Highway 11 to the terminus 
of the northbound road to be constructed by the General Services 
Administration in time for completion of the road to be constructed 
by the General Services Administration in time for completion 
of the road to be constructed by the General Services Administra-
tion: Provided further. That upon completion of the construction 
of the road by the General Services Administration, and notwith-
standing any other provision of law, the Administrator of General 
Services shall convey to the municipality of Luna County, New 
Mexico, without reimbursement, all right, title, and interest of 
the United States to that portion of the property constituting the 
improved road and standard county road right-of-way which is 
not required for the operation of the port of entry: Provided further. 
That the General Services Administration on behalf of the United 
States upon conveyance of the property to the municipality of Luna, 
New Mexico, shall retain the balance of the property located adja-
cent to the port, consisting of approximately 12 acres, to be owned 
PUBLIC LAW 106-554—APPENDIX C 
114 STAT. 2763A-147 
or otherwise managed by the Administrator pursuant to the Federal 
Property and Administrative Services Act of 1949, as amended: 
Provided further, 
That the General Services Administration is 
authorized to acquire such additional real property and rights in 
real property as may be necessary to construct said road and 
provide a contiguous site for the port of entry: Provided 
further, 
That the United States shall incur no liability for any environmental 
laws or conditions existing at the property at the time of conveysmce 
to the United States or in connection with the construction of 
the road: Provided further. That Luna County and the Village 
of Columbus shall be responsible for providing adequate access 
and egress to existing properties east of the port of entry: Provided 
further. That the Bureau of Land Msmagement, the International 
Boundary and Water Commission, the Federal Inspection Agencies 
and the Department of State shall take all actions necessary to 
facilitate the construction of the road and expansion of the port 
facilities. 
SEC. 411. DESIGNATION OF J. BRATTON DAVIS UNITED STATES 
BANKRUPTCY COURTHOUSE, (a) The United States bankruptcy court-
house at 1100 Laurel Street in Columbia, South Carolina, shall 
be known and designated as the "J. Bratton Davis United States 
Bankruptcy Courthouse". 
(b) Any reference in a law, map, regulation, document, paper, 
or other record of the United States to the United States bankruptcy 
courthouse referred to in subsection (a) shall be deemed to be 
a reference to the "J. Bratton Davis United States Bankruptcy 
Courthouse". 
SEC. 412. (a) The United States Courthouse Annex located 
at 901 19th Street in Denver, Colorado is hereby designated as 
the "Alfred A. Arraj United States Courthouse Annex". 
(b) Any reference in a law, map, regulation, document, or 
paper or other record of the United States to the Courthouse Annex 
herein referred to in subsection (a) shall be deemed to be a reference 
to the "Alfred A. Arraj United States Courthouse Annex". 
SEC. 413. DESIGNATION OF THE PAUL COVERDELL DORMITORY. 
The dormitory building currently being constructed on the Core 
Campus of the Federal Law Enforcement Training Center in Gl3aico, 
Georgia, shall be known and designated as the "Paul Coverdell 
Dormitory". 
MERIT SYSTEMS PROTECTION BOARD 
SALARIES AND EXPENSES 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses to carry out functions of the Merit 
Systems Protection Board pursuant to Reorganization Plan Num-
bered 2 of 1978 and the Civil Service Reform Act of 1978, including 
services as authorized by 5 U.S.C. 3109, rental of conference rooms 
in the District of Columbia and elsewhere, hire of passenger motor 
vehicles, and direct procurement of survey printing, $29,437,000 
together with not to exceed $2,430,000 for administrative expenses 
to adjudicate retirement appeals to be transferred from the Civil 
Service Retirement and Disability Fund in amounts determined 
by the Merit Systems Protection Board. 
114 STAT. 2763A-148 
PUBLIC LAW 106-554—APPENDIX C 
FEDERAL PAYMENT TO MORRIS K. UDALL SCHOLARSHIP AND 
EXCELLENCE IN NATIONAL ENVIRONMENTAL POLICY FOUNDATION 
For payment to the Morris K. Udall Scholarship and Excellence 
in National Environmental Trust Fund, to be available for the 
purposes of Public Law 102-252, $2,000,000, to remain available 
until expended. 
ENVIRONMENTAL DISPUTE RESOLUTION FUND 
For payment to the Environmental Dispute Resolution Fund 
to carry out activities authorized in the Environmental Policy and 
Conflict Resolution Act of 1998, $1,250,000, to remain available 
until expended. 
NATIONAL ARCHIVES AND RECORDS 
ADMINISTRATION 
OPERATING EXPENSES 
For necessary expenses in connection with the administration 
of the National Archives (including the Information Security Over-
sight Office) and archived Federal records and related activities, 
as provided by law, and for expenses necessary for the review 
and declassification of documents, and for the hire of passenger 
motor vehicles, $209,393,000: Provided, That the Archivist of the 
United States is authorized to use any excess funds available from 
the amount borrowed for construction of the National Archives 
facility, for expenses necessary to provide adequate storage for 
holdings. 
REPAIRS AND RESTORATION 
For the repair, alteration, and improvement of archives facili-
ties, and to provide adequate storage for holdings, $95,150,000, 
to remain available until expended of which $88,000,000 is to com-
plete renovation of the National Archives Building. 
NATIONAL HISTORICAL PUBLICATIONS AND RECORDS COMMISSION 
GRANTS PROGRAM 
(INCLUDING RESCISSION OF FUNDS) 
For necessary expenses for allocations and grants for historical 
publications and records as authorized by 44 U.S.C. 2504, as amend-
ed, $6,450,000, to remain available until expended. 
OFFICE OF GOVERNMENT ETHICS 
SALARIES AND EXPENSES 
For necessary expenses to carry out functions of the Office 
of Government Ethics pursuant to the Ethics in Government Act 
of 1978, as amended and the Ethics Reform Act of 1989, including 
services as authorized by 5 U.S.C. 3109, rental of conference rooms 
in the District of Columbia and elsewhere, hire of passenger motor 
vehicles, and not to exceed $1,500 for official reception and represen-
tation expenses, $9,684,000. 
PUBLIC LAW 106-554—APPENDIX C 
114 STAT. 2763A-149 
OFFICE OF PERSONNEL MANAGEMENT 
SALARIES AND EXPENSES 
(INCLUDING TRANSFER OF TRUST FUNDS) 
For necessary expenses to carry out functions of the Office 
of Personnel Management pursuant to Reorganization Plan Num-
bered 2 of 1978 and the Civil Service Reform Act of 1978, including 
services as authorized by 5 U.S.C. 3109; medical examinations 
performed for veterans by private physicians on a fee basis; rental 
of conference rooms in the District of Columbia and elsewhere; 
hire of passenger motor vehicles; not to exceed $2,500 for official 
reception and representation expenses; advances for reimburse-
ments to applicable funds of the Office of Personnel Management 
and the Federal Bureau of Investigation for expenses incurred 
under Executive Order No. 10422 of January 9, 1953, as amended; 
and pajmtient of per diem and/or subsistence allowances to employ-
ees where Voting Rights Act activities require an employee to 
remain overnight at his or her post of duty, $94,095,000; and 
in addition $101,986,000 for administrative expenses, to be trans-
ferred from the appropriate trust funds of the Office of Personnel 
Management without regard to other statutes, including direct 
procurement of printed materials, for the retirement and insurance 
programs, of which $10,500,000 shall remain available until 
expended for the cost of automating the retirement recordkeeping 
systems: Provided, That the provisions of this appropriation shall 
not affect the authority to use applicable trust funds as provided 
by sections 8348(a)(1)(B) and 8909(g) of title 5, United States Code: 
Provided further. That no part of this appropriation shall be avail-
able for salaries and expenses of the Legal Examining Unit of 
the Office of Personnel Management established pursuant to Execu-
tive Order No. 9358 of July 1, 1943, or any successor unit of 
like purpose: Provided further. That the President's Commission 
on White House Fellows, established by Executive Order No. 11183 
of October 3, 1964, may, during fiscal year 2001, accept donations 
of money, property, and personal services in connection with the 
development of a publicity brochure to provide information about 
the White House Fellows, except that no such donations shall 
be accepted for travel or reimbursement of travel expenses, or 
for the salaries of employees of such Commission. 
OFFICE OF INSPECTOR GENERAL 
SALARIES AND EXPENSES 
(INCLUDING TRANSFER OF TRUST FUNDS) 
For necessary expenses of the Office of Inspector General in 
carrying out the provisions of the Inspector General Act, as amend-
ed, including services as authorized by 5 U.S.C. 3109, hire of 
passenger motor vehicles, $1,360,000; and in addition, not to exceed 
$9,745,000 for administrative expenses to audit, investigate, and 
provide other oversight of the Office of Personnel Management's 
retirement and insurance programs, to be transferred from the 
appropriate trust funds of the Office of Personnel Management, 
as determined by the Inspector General: Provided, That the Inspec-
tor General is authorized to rent conference rooms in the District 
of Columbia and elsewhere. 
114 STAT. 2763A-150 
PUBLIC LAW 106-554^APPENDIX C 
GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEES HEALTH 
BENEFITS 
For payment of Government contributions with respect to 
retired employees, as authorized by chapter 89 of title 5, United 
States Code, and the Retired Federal Employees Health Benefits 
Act (74 Stat. 849), as amended, such sums as may be necessary. 
GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEE LIFE 
INSURANCE 
For pa5anent of Government contributions with respect to 
employees retiring after December 31, 1989, as required by chapter 
87 of title 5, United States Code, such sums as may be necessary. 
PAYMENT TO CIVIL SERVICE RETIREMENT AND DISABILITY FUND 
For financing the unfunded liability of new and increased annu-
ity benefits becoming effective on or after October 20, 1969, as 
authorized by 5 U.S.C. 8348, and annuities under special Acts 
to be credited to the Civil Service Retirement and Disability Fund, 
such sums as may be necessary: Provided, That annuities author-
ized by the Act of May 29, 1944, as amended, and the Act of 
August 19, 1950, as amended (33 U.S.C. 771-775), may hereafter 
be paid out of the Civil Service Retirement and Disability Fund. 
OFFICE OF SPECIAL COUNSEL 
SALARIES AND EXPENSES 
For necessary expenses to carry out functions of the Office 
of Special Counsel pursuant to Reorganization Plan Numbered 2 
of 1978, the Civil Service Reform Act of 1978 (Public Law 95-
454), the Whistleblower Protection Act of 1989 (Public Law 101-
12), Public Law 103-424, and the Uniformed Services Employment 
and Reemployment Act of 1994 (Public Law 103-353), including 
services as authorized by 5 U.S.C. 3109, payment of fees and 
expenses for witnesses, rental of conference rooms in the District 
of Columbia and elsewhere, and hire of passenger motor vehicles, 
$11,147,000. 
UNITED STATES TAX COURT 
SALARIES AND EXPENSES 
For necessary expenses, including contract reporting and other 
services as authorized by 5 U.S.C. 3109, $37,305,000: Provided, 
That travel expenses of the judges shall be paid upon the written 
certificate of the judge. 
This title may be cited as the "Independent Agencies Appropria-
tions Act, 2001". 
TITLE V—GENERAL PROVISIONS 
THIS ACT 
SEC. 501. No part of any appropriation contained in this Act 
shall remain available for obligation beyond the current fiscal year 
unless expressly so provided herein. 
PUBLIC LAW 106-554^APPENDIX C 
114 STAT. 2763A-151 
SEC. 502. The expenditure of any appropriation under this 
Act for any consulting service through procurement contract, pursu-
ant to 5 U.S.C. 3109, shall be limited to those contracts where 
such expenditures are a matter of public record and available 
for public inspection, except where otherwise provided under exist-
ing law, or under existing Executive order issued pursuant to exist-
ing law. 
SEC. 503. None of the funds made available by this Act shall 
be available for any activity or for paying the salary of any Govern-
ment employee where funding an activity or paying a salary to 
a Government employee would result in a decision, determination, 
rule, regulation, or policy that would prohibit the enforcement of 
section 307 of the Tariff Act of 1930. 
SEC. 504. None of the funds made available by this Act shall 
be available in fiscal year 2001 for the purpose of transferring 
control over the Federal Law Enforcement Training Center located 
at Glynco, Georgia, and Artesia, New Mexico, out of the Department 
of the Treasury. 
SEC. 505. No part of any appropriation contained in this Act 
shall be available to pay the salary for any person filling a position, 
other thsin a temporary position, formerly held by an employee 
who has left to enter the Armed Forces of the United States and 
has satisfactorily completed his period of active military or naval 
service, and has within 90 days after his release from such service 
or from hospitalization continuing after discharge for a period of 
not more than 1 year, made application for restoration to his former 
position and has been certified by the Office of Personnel Manage-
ment as still qualified to perform the duties of his former position 
and has not been restored thereto. 
SEC. 506. No funds appropriated pursuant to this Act may 
be expended by an entity unless the entity agrees that in expending 
the assistance the entity will comply with sections 2 through 4 
of the Act of March 3, 1933 (41 U.S.C. 10a-10c, popularly known 
as the "Buy American Act"). 
SEC. 
507. (a) PURCHASE OF AMERICAN-MADE EQUIPMENT AND 
PRODUCTS.—In the case of any equipment or products that may 
be authorized to be purchased with financial assistance provided 
under this Act, it is the sense of the Congress that entities receiving 
such assistance should, in expending the assistance, purchase only 
American-made equipment and products. 
(b) NOTICE TO RECIPIENTS OF ASSISTANCE.—In providing finan-
cial assistance under this Act, the Secretary of the Treasury shall 
provide to each recipient of the assistance a notice describing the 
statement made in subsection (a) by the Congress. 
SEC. 508. If it has been finally determined by a court or Federal 
agency that any person intentionally affixed a label bearing a 
"Made in America" inscription, or any inscription with the same 
meaning, to any product sold in or shipped to the United States 
that is not made in the United States, such person shall be ineligible 
to receive any contract or subcontract made with funds provided 
pursuant to this Act, pursuant to the debarment, suspension, and 
ineligibility procedures described in sections 9.400 through 9.409 
of title 48, Code of Federal Regulations. 
SEC. 509. No funds appropriated by this Act shall be available 
to pay for an abortion, or the administrative expenses in connection 
with any hesilth plan under the Federal employees health benefit 
program which provides any benefits or coverage for abortions. 
114 STAT. 2763A-152 
PUBLIC LAW 106-554—APPENDIX C 
SEC. 510. The provision of section 509 shall not apply where 
the life of the mother would be endangered if the fetus were carried 
to term, or the pregnancy is the result of an act of rape or incest. 
SEC. 511. Except as otherwise specifically provided by law, 
not to exceed 50 percent of unobligated balances remaining available 
at the end of fiscal year 2001 from appropriations made available 
for salaries and expenses for fiscal year 2001 in this Act, shall 
remain available through September 30, 2002, for each such account 
for the purposes authorized: Provided, That a request shall be 
submitted to the Committees on Appropriations for approval prior 
to the expenditure of such funds: Provided further, That these 
requests shall be made in compliance with reprogramming guide-
lines. 
SEC. 512. None of the funds made available in this Act may 
be used by the Executive Office of the President to request from 
the Federal Bureau of Investigation any official background inves-
tigation report on any individual, except when— 
(1) such individual has given his or her express written 
consent for such request not more than 6 months prior to 
the date of such request and during the same presidential 
administration; or 
(2) such request is required due to extraordinary cir-
cumstances involving national security. 
SEC. 513. The cost accounting standards promulgated under 
section 26 of the Office of Federal Procurement Policy Act (Public 
Law 93-400; 41 U.S.C. 422) shall not apply with respect to a 
contract under the Federal Employees Health Benefits Program 
established under chapter 89 of title 5, United States Code. 
SEC. 514. (a) IN GENERAL.—As soon as practicable after the 
date of the enactment of this Act, the Archivist of the United 
States shall transfer to the Gerald R. Ford Foundation, as trustee, 
all right, title, and interest of the United States in and to the 
approximately 2.3 acres of land located within Grand Rapids, Michi-
gan, and further described in subsection (b), such grant to be 
in trust, with the beneficiary being the National Archives and 
Records Administration, for the purpose of supporting the facilities 
and programs of the Gerald R. Ford Museum in Grand Rapids, 
Michigan, and the Gerald R. Ford Library in Ann Arbor, Michigan, 
in accordance with a trust agreement to be agreed upon by the 
Archivist and the Gerald R. Ford Foundation. 
(b) LAND DESCRIPTION.—^The land to be transferred pursuant 
to subsection (a) is described as follows: 
The following premises in the City of Grand Rapids, County 
of Kent, State of Michigan, described as: 
That part of Block 2, Converse Plat, and that part of Block 
2 of J.W. Converse Replatted Addition, and that part of Government 
Lot 1 of Section 25, T7N, R12W, City of Grand Rapids, Kent 
County, Michigan, described as: BEGINNING at the NE comer 
of Lot 1 of Block 2 of Converse Plat; thence East 245.0 feet along 
the South line of Bridge Street; thence South 230.0 feet along 
a line which is parallel with and 170 feet East from the East 
line of Front Avenue as originally platted; thence West 207.5 feet 
parallel with the South line of Bridge Street; thence South along 
the centerline of vacated Front Avenue 109 feet more or less to 
the extended centerline of vacated Douglas Street; thence West 
along the centerline of vacated Douglas Street 237.5 feet more 
or less to the East line of Scribner Avenue; thence North along 
PUBLIC LAW 106-554^APPENDIX C 
114 STAT. 2763A-153 
the East line of Scribner Avenue 327 feet more or less to a point 
which is 7.0 feet South from the NW comer of Lot 8 of Block 
2 of Converse Plat; thence Easterly 200 feet more or less to the 
place of beginning, also described as: 
Parcel A—Lots 9 & 10, Block 2 of Converse Plat, being the 
subdivision of Government Lots 1 & 2, Section 25, T7N, R12W; 
also Lots 11-24, Block 2 of J.W. Converse Replatted Addition; 
also part of N V2 of Section 25, T7N, R12W, commencing at SE 
comer Lot 24, Block 2 of J.W. Converse Replatted Addition, thence 
N to NE comer of Lot 9 of Converse Plat, thence E 16 feet, 
thence S to SW comer of Lot 23 of J.W. Converse Replatted Addi-
tion, thence W 16 feet to beginning. 
Parcel B—Part of Section 25, T7N, R12W, commencing on 
S line of Bridge Street 50 feet E of E line of Front Avenue, thence 
S 107.85 feet, thence 77 feet, thence N to a point on S line of 
said street which is 80 feet E of beginning, thence W to beginning. 
Parcel C—Part of Section 25, T7N, R12W, commencing at SE 
comer Bridge Street & Front Avenue, thence E 50 feet, thence 
S 107.85 feet to alley, thence W 50 feet to E line Front Avenue, 
thence N 106.81 feet to beginning. 
Parcel D—Part of Govemment Lot 1, Section 25, T7N, R12W, 
commencing at a point on S line of Bridge Street (66' wide) 170 
feet E of E line of Front Avenue (75' wide), thence S 230 feet 
parallel with Front Avenue, thence W 170 feet parallel with Bridge 
Street to E line of Front Avenue, thence N along said line to 
a point 106.81 feet S of intersection of said line with extension 
of N & S line of Bridge Street, thence E 127 feet, thence northerly 
to a point on S line of Bridge Street 130 feet E of E line of 
Front Avenue, thence E along S line of Bridge Street to beginning. 
Parcel E—Lots 1 through 8 of Block 2 of Converse Plat, being 
the subdivision of Govemment Lots 1 and 2, Section 25, T7N, 
R12W. 
Also part of N V2 of Section 25, T7N, R12W, commencing 
at NW comer of Lot 9, Block 2 of J.W. Converse Replatted Addition; 
thence N 15 feet to SW comer of Lot 8; thence E 200 feet to 
SE comer Lot 1; thence S 15 feet to NE comer of Lot 10; thence 
W 200 feet to beginning. 
Together with any portion of vacated streets and alleys that 
have become part of the above property. 
(c) TERMS AND CONDITIONS.— 
(1) COMPENSATION.—^The land transferred pursuant to sub-
section (a) shall be transferred without compensation to the 
United States. 
(2) APPOINTMENT OF SUCCESSOR TRUSTEE.—In the event 
that the Gerald R. Ford Foundation for any reason is unable 
or unwilling to continue to serve as trustee, the Archivist 
of the United States is authorized to appoint a successor 
trustee. 
(3) REVERSIONARY INTEREST.—If the Archivist of the United 
States determines that the Gerald R. Ford Foundation (or a 
successor trustee appointed under paragraph (2)) has breached 
its fiduciary duty under the trust agreement entered into pursu-
ant to this section, the land transferred pursuant to subsection 
(a) shall revert to the United States under the administrative 
jurisdiction of the Archivist. 
SEC. 515. (a) IN GENERAL.—The Director of the Office of 
Management and Budget shall, by not later than September 30, 
79-194 O-00-7:QL3Part5 
114 STAT. 2763A-154 
PUBLIC LAW 106-554—APPENDIX C 
2001, and with public and Federal agency involvement, issue guide-
lines under sections 3504(d)(1) and 3516 of title 44, United States 
Code, that provide policy eind procedural guidance to Federal agen-
cies for ensuring and maximizing the quality, objectivity, utility, 
and integrity of information (including statistical information) 
disseminated by Federal agencies in fulfillment of the purposes 
and provisions of chapter 35 of title 44, United States Code, com-
monly referred to as the Paperwork Reduction Act. 
(b) CONTENT OF GUIDELINES.—^The guidelines under subsection 
(a) shall— 
(1) apply to the sharing by Federal agencies of, and access 
to, information disseminated by Federal agencies; and 
(2) require that each Federal agency to which the guidelines 
apply— 
(A) issue guidelines ensuring and maximizing the qual-
ity, objectivity, utility, and integrity of information (includ-
ing statistical information) disseminated by the agency, 
by not later than 1 year after the date of issuance of 
the guidelines under subsection (a); 
(B) establish administrative mechanisms 
allowing 
affected persons to seek and obtain correction of informa-
tion maintained and disseminated by the agency that does 
not comply with the guidelines issued under subsection 
(a); and 
(C) report periodically to the Director— 
(i) the number and nature of complaints received 
by the agency regarding the accuracy of information 
disseminated by the agency; and 
(ii) how such complaints were handled by the 
agency. 
SEC. 516. For the purpose of resolving litigation and implement-
ing any settlement agreements regarding the nonforeign area cost-
of-living allowance program, the Office of Personnel Management 
may accept and utilize (without regard to any restriction on 
unanticipated travel expenses imposed in an Appropriations Act) 
funds made available to the Office pursuant to court approval. 
SEC. 517. None of the funds appropriated by this Act shall 
be used to propose or issue rules, regulations, decrees, or orders 
for 
the 
purpose 
of implementation, 
or in preparation 
for 
implementation, of the Kyoto Protocol, which was adopted on 
December 11, 1997, in Kyoto, Japan, at the Third Conference of 
the Parties to the United Nations Framework Convention on Cli-
mate Change, which has not been submitted to the Senate for 
advice and consent to ratification pursuant to article II, section 
2, clause 2, of the United States Constitution, and which has 
not entered into force pursuant to article 25 of the Protocol. 
SEC. 518. Not later than July 1, 2001, the Director of the 
Office of Management and Budget shall submit a report to the 
Committee on Appropriations and the Committee on Governmental 
Affairs of the Senate and the Committee on Appropriations and 
the Committee on Government Reform of the House of Representa-
tives that: (1) evaluates, for each agency, the extent to which 
implementation of chapter 35 of title 31, United States Code, as 
amended by the Paperwork Reduction Act of 1995 (Public Law 
104-13), has reduced burden imposed by rules issued by the agency, 
including the burden imposed by each major rule issued by the 
agency; (2) includes a determination, based on such evaluation, 
PUBLIC LAW 106-554^APPENDIX C 
114 STAT. 2763A-155 
of the need for additional procedures to ensure achievement of 
the purposes of that chapter, as set forth in section 3501 of title 
31, United States Code, and evaluates the burden imposed by 
each major rule that imposes more than 10,000,000 hours of burden, 
and identifies specific reductions expected to be achieved in each 
of fiscal years 2001 and 2002 in the burden imposed by all rules 
issued by each agency that issued such a major rule. 
TITLE VI—GENERAL PROVISIONS 
DEPARTMENTS, AGENCIES, AND CORPORATIONS 
SEC. 601. Funds appropriated in this or any other Act may 
be used to pay travel to the United States for the immediate 
family of employees serving abroad in cases of death or life threaten-
ing illness of said employee. 
SEC. 602. No department, agency, or instrumentality of the 
United States receiving appropriated funds under this or any other 
Act for fiscal year 2001 shall obligate or expend any such funds, 
unless such department, agency, or instrumentality has in place, 
and will continue to administer in good faith, a written policy 
designed to ensure that all of its workplaces are free from the 
illegal use, possession, or distribution of controlled substances (as 
defined in the Controlled Substances Act) by the officers and 
employees of such department, agency, or instrumentality. 
SEC. 603. Unless otherwise specifically provided, the maximum 
amount allowable during the current fiscal year in accordance with 
section 16 of the Act of August 2, 1946 (60 Stat. 810), for the 
purchase of any passenger motor vehicle (exclusive of buses, ambu-
lances, law enforcement, and undercover surveillance vehicles), is 
hereby fixed at $8,100 except station wagons for which the maxi-
mum shall be $9,100: Provided, That these limits may be exceeded 
by not to exceed $3,700 for police-type vehicles, and by not to 
exceed $4,000 for special heavy-duty vehicles: Provided 
further. 
That the limits set forth in this section may not be exceeded 
by more than 5 percent for electric or hybrid vehicles purchased 
for demonstration under the provisions of the Electric and Hybrid 
Vehicle Research, Development, and Demonstration Act of 1976: 
Provided further. That the limits set forth in this section may 
be exceeded by the incremental cost of clean alternative fuels 
vehicles acquired pursuant to Public Law 101-549 over the cost 
of comparable conventionally fueled vehicles. 
SEC. 604. Appropriations of the executive departments and 
independent establishments for the current fiscal year available 
for expenses of travel, or for the expenses of the activity concerned, 
are hereby made available for quarters allowances and cost-of-
living allowances, in accordance with 5 U.S.C. 5922-5924. 
SEC. 605. Unless otherwise specified during the current fiscal 
year, no part of any appropriation contained in this or any other 
Act shall be used to pay the compensation of any officer or employee 
of the Government of the United States (including any agency 
the majority of the stock of which is owned by the Government 
of the United States) whose post of duty is in the continental 
United States unless such person: (1) is a citizen of the United 
States; (2) is a person in the service of the United States on 
the date of the enactment of this Act who, being eligible for citizen-
ship, has filed a declaration of intention to become a citizen of 
114 STAT. 2763A-156 
PUBLIC LAW 106-554—APPENDIX C 
the United States prior to such date and is actually residing in 
the United States; (3) is a person who owes allegiance to the 
United States; (4) is an alien from Cuba, Poland, South Vietnam, 
the countries of the former Soviet Union, or the Baltic countries 
lawfully admitted to the United States for permanent residence; 
(5) is a South Vietnamese, Cambodian, or Laotian refugee paroled 
in the United States after January 1, 1975; or (6) is a national 
of the People's Republic of China who qualifies for adjustment 
of status pursuant to the Chinese Student Protection Act of 1992: 
Provided, That for the purpose of this section, an affidavit signed 
by any such person shall be considered prima facie evidence that 
the requirements of this section with respect to his or her status 
have been complied with: Provided further, That any person making 
a false affidavit shall be guilty of a felony, and, upon conviction, 
shall be fined no more than $4,000 or imprisoned for not more 
than 1 year, or both: Provided further, That the above penal clause 
shall be in addition to, and not in substitution for, any other 
provisions of existing law: Provided further. That any payment 
made to any officer or employee contrary to the provisions of this 
section shall be recoverable in action by the Federal Government. 
This section shall not apply to citizens of Ireland, Israel, or the 
Republic of the Philippines, or to nationals of those countries allied 
with the United States in a current defense effort, or to inter-
national broadcasters employed by the United States Information 
Agency, or to temporary employment of translators, or to temporary 
employment in the field service (not to exceed 60 days) as a result 
of emergencies. 
SEC. 606. Appropriations available to any department or agency 
during the current fiscal year for necessary expenses, including 
maintenance or operating expenses, shall also be available for pay-
ment to the General Services Administration for charges for space 
and services and those expenses of renovation £ind alteration of 
buildings and facilities which constitute public improvements per-
formed in accordance with the Public Buildings Act of 1959 (73 
Stat. 749), the Public Buildings Amendments of 1972 (87 Stat. 
216), or other applicable law. 
SEC. 607. In addition to funds provided in this or any other 
Act, all Federal agencies are authorized to receive and use funds 
resulting from the sale of materials, including Federal records dis-
posed of pursuant to a records schedule recovered through recycling 
or waste prevention programs. Such funds shall be available until 
expended for the following purposes: 
(1) Acquisition, waste reduction and prevention, and 
recycling programs as described in Executive Order No. 13101 
(September 14, 1998), including any such programs adopted 
prior to the effective date of the Executive order. 
(2) Other Federal agency environmental management pro-
grams, including, but not limited to, the development and 
implementation of hazardous waste management and pollution 
prevention programs. 
(3) Other employee programs as authorized by law or as 
deemed appropriate by the head of the Federal agency. 
SEC. 608. Funds made available by this or any other Act for 
administrative expenses in the current fiscal year of the corpora-
tions and agencies subject to chapter 91 of title 31, United States 
Code, shall be available, in addition to objects for which such 
funds are otherwise available, for rent in the District of Columbia; 
PUBLIC LAW 106-554^APPENDIX C 
114 STAT. 2763A-157 
services in accordance with 5 U.S.C. 3109; and the objects specified 
under this head, all the provisions of which shall be applicable 
to the expenditure of such funds unless otherwise specified in 
the Act by which they are made available: Provided, That in the 
event any functions budgeted as administrative expenses are subse-
quently transferred to or paid from other funds, the limitations 
on administrative expenses shall be correspondingly reduced. 
SEC. 609. No part of any appropriation for the current fiscal 
year contained in this or any other Act shall be paid to any person 
for the filling of any position for which he or she has been nominated 
after the Senate has voted not to approve the nomination of said 
person. 
SEC. 610. No part of any appropriation contained in this or 
any other Act shall be available for interagency financing of boards 
(except Federal Executive Boards), commissions, councils, commit-
tees, or similar groups (whether or not they are interagency entities) 
which do not have a prior and specific statutory approval to receive 
financial support from more than one agency or instrumentality. 
SEC. 611. Funds made available by this or any other Act to 
the Postal Service Fund (39 U.S.C. 2003) shall be available for 
employment of guards for all buildings and areas owned or occupied 
by the Postal Service and under the charge and control of the 
Postal Service, and such guards shall have, with respect to such 
property, the powers of special policemen provided by the first 
section of the Act of June 1, 1948, as amended (62 Stat. 281; 
40 U.S.C. 318), and, as to property owned or occupied by the 
Postal Service, the Postmaster General may take the same actions 
as the Administrator of General Services may take under the provi-
sions of sections 2 and 3 of the Act of June 1, 1948, as amended 
(62 Stat. 281; 40 U.S.C. 318a and 318b), attaching thereto penal 
consequences under the authority and within the limits provided 
in section 4 of the Act of June 1, 1948, as amended (62 Stat. 
281; 40 U.S.C. 318c). 
SEC. 612. None of the funds made available pursuant to the 
provisions of this Act shall be used to implement, administer, or 
enforce any regulation which has been disapproved pursuant to 
a resolution of disapproval duly adopted in accordance with the 
applicable law of the United States. 
SEC. 613. (a) Notwithstanding any other provision of law, and 
except as otherwise provided in this section, no part of any of 
the funds appropriated for fiscal year 2001, by this or any other 
Act, may be used to pay any prevailing rate employee described 
in section 5342(a)(2)(A) of title 5, United States Code— 
(1) during the period from the date of expiration of the 
limitation imposed by section 613 of the Treasury and General 
Government Appropriations Act, 2000, until the normal effec-
tive date of the applicable wage survey adjustment that is 
to take effect in fiscal year 2001, in an amount that exceeds 
the rate payable for the applicable grade and step of the 
applicable wage schedule in accordance with such section 613; 
and 
(2) during the period consisting of the remainder of fiscal 
' 
year 2001, in an amount that exceeds, as a result of a wage 
survey adjustment, the rate payable under paragraph (1) by 
more than the sum o
f
— 
(A) the percentage adjustment taking effect in fiscal 
year 2001 under section 5303 of title 5, United States 
114 STAT. 2763A-158 
PUBLIC LAW 106-554—APPENDIX C 
Code, in the rates of pay under the General Schedule; 
and 
(B) the difference between the overall average percent-
age of the locality-based comparability pa5nTients taking 
effect in fiscal year 2001 under section 5304 of such title 
(whether by adjustment or otherwise), and the overall aver-
age percentage of such payments which was effective in 
fiscal year 2000 under such section. 
(b) Notwithstanding any other provision of law, no prevailing 
rate employee described in subparagraph (B) or (C) of section 
5342(a)(2) of title 5, United States Code, and no employee covered 
by section 5348 of such title, may be paid during the periods 
for which subsection (a) is in effect at a rate that exceeds the 
rates that would be payable under subsection (a) were subsection 
(a) applicable to such employee. 
(c) For the purposes of this section, the rates payable to an 
employee who is covered by this section and who is paid from 
a schedule not in existence on September 30, 2000, shall be deter-
mined under regulations prescribed by the Office of Personnel 
Management. 
(d) Notwithstanding any other provision of law, rates of pre-
mium pay for employees subject to this section may not be changed 
from the rates in effect on September 30, 2000, except to the 
extent determined by the Office of Personnel Management to be 
consistent with the purpose of this section. 
(e) This section shall apply with respect to pay for service 
performed after September 30, 2000. 
(f) For the purpose of administering any provision of law 
(including any rule or regulation that provides premium pay, retire-
ment, life insurance, or any other employee benefit) that requires 
any deduction or contribution, or that imposes any requirement 
or limitation on the basis of a rate of salary or basic pay, the 
rate of salary or basic pay payable after the application of this 
section shall be treated as the rate of salary or basic pay. 
(g) Nothing in this section shall be considered to permit or 
require the payment to £my employee covered by this section at 
a rate in excess of the rate that would be payable were this section 
not in effect. 
(h) The Office of Personnel Management may provide for excep-
tions to the limitations imposed by this section if the Office deter-
mines that such exceptions are necessary to ensure the recruitment 
or retention of qualified employees. 
SEC. 614. During the period in which the head of any depart-
ment or agency, or any other officer or civilian employee of the 
Government appointed by the President of the United States, holds 
office, no funds may be obligated or expended in excess of $5,000 
to furnish or redecorate the office of such department head, agency 
head, officer, or employee, or to purchase furniture or make 
improvements for any such office, unless advance notice of such 
furnishing or redecoration is expressly approved by the Committees 
on Appropriations. For the purposes of this section, the word "office" 
shall include the entire suite of offices assigned to the individual, 
as well as any other space used primarily by the individual or 
the use of which is directly controlled by the individual. 
SEC. 615. Notwithstanding any other provision of law, no execu-
tive branch agency shall purchase, construct, and/or lease any addi-
tional facilities, except within or contiguous to existing locations. 
PUBLIC LAW 106-554—APPENDIX C 
114 STAT. 2763A-159 
to be used for the purpose of conducting Federal law enforcement 
training without the advance approval of the Committees on Appro-
priations, except that the Federal Law Enforcement Training Center 
is authorized to obtain the temporary use of additional facilities 
by lease, contract, or other agreement for training which cannot 
be accommodated in existing Center facilities. 
SEC. 616. Notwithstanding section 1346 of title 31, United 
States Code, or section 610 of this Act, funds made available for 
fiscal year 2001 by this or any other Act shall be available for 
the interagency funding of national security and emergency 
preparedness telecommunications initiatives which benefit multiple 
Federal departments, agencies, or entities, as provided by Executive 
Order No. 12472 (April 3, 1984). 
SEC. 617. (a) None of the funds appropriated by this or any 
other Act may be obligated or expended by any Federal department, 
agency, or other instrumentality for the salaries or expenses of 
any employee appointed to a position of a confidential or policy-
determining character excepted from the competitive service pursu-
ant to section 3302 of title 5, United States Code, without a certifi-
cation to the Office of Personnel Management from the head of 
the Federal department, agency, or other instrumentality employing 
the Schedule C appointee that the Schedule C position was not 
created solely or primarily in order to detail the employee to the 
White House. 
(b) The provisions of this section shall not apply to Federal 
employees or members of the armed services detailed to or from— 
(1) the Central Intelligence Agency; 
(2) the National Security Agency; 
(3) the Defense Intelligence Agency; 
(4) the offices within the Department of Defense for the 
collection of specialized national foreign intelligence through 
reconnaissance programs; 
(5) the Bureau of Intelligence and Research of the Depart-
ment of State; 
(6) any agency, office, or unit of the Army, Navy, Air 
Force, and Marine Corps, the Federal Bureau of Investigation 
and the Drug Enforcement Administration of the Department 
of Justice, the Department of Transportation, the Department 
of the Treasury, and the Department of Energy performing 
intelligence functions; and 
(7) the Director of Central Intelligence. 
SEC. 618. No department, agency, or instrumentality of the 
United States receiving appropriated funds under this or any other 
Act for fiscal year 2001 shall obligate or expend any such funds, 
unless such department, agency, or instrumentgdity has in place, 
and will continue to administer in good faith, a written policy 
designed to ensure that all of its workplaces are free from discrimi-
nation and sexual harassment and that all of its workplaces are 
not in violation of title VII of the Civil Rights Act of 1964, as 
amended, the Age Discrimination in Emplo3niient Act of 1967, and 
the Rehabilitation Act of 1973. 
SEC. 619. None of the fiinds made available in this Act for 
the United States Customs Service may be used to allow the 
importation into the United States of any good, ware, article, or 
merchandise mined, produced, or manufactured by forced or inden-
tured child labor, as determined pursuant to section 307 of the 
Tariff Act of 1930 (19 US.C. 1307). 
114 STAT. 2763A-160 
PUBLIC LAW 106-554—APPENDIX C 
SEC. 620. No part of any appropriation contained in this or 
any other Act shall be available for the pa3anent of the salary 
of any officer or employee of the Federal Government, who— 
(1) prohibits or prevents, or attempts or threatens to pro-
hibit or prevent, any other officer or employee of the Federal 
Government from having any direct oral or written communica-
tion or contact with any Member, committee, or subcommittee 
of the Congress in connection with any matter pertaining to 
the employment of such other officer or employee or pertaining 
to the department or agency of such other officer or employee 
in any way, irrespective of whether such communication or 
contact is at the initiative of such other officer or employee 
or in response to the request or inquiry of such Member, 
committee, or subcommittee; or 
(2) removes, suspends from duty without pay, demotes, 
reduces in rank, seniority, status, pay, or performance of effi-
ciency rating, denies promotion to, relocates, reassigns, trans-
fers, disciplines, or discriminates in regard to any employment 
right, entitlement, or benefit, or any term or condition of 
employment of, any other officer or employee of the Federal 
Government, or attempts or threatens to commit any of the 
foregoing actions with respect to such other officer or employee, 
by reason of any communication or contact of such other officer 
or employee with any Member, committee, or subcommittee 
of the Congress as described in paragraph (1). 
SEC. 621. (a) None of the funds made available in this or 
any other Act may be obligated or expended for any employee 
training that— 
(1) does not meet identified needs for knowledge, skills, 
and abilities bearing directly upon the performance of official 
duties; 
(2) contains elements likely to induce high levels of emo-
tional response or psychological stress in some participants; 
(3) does not require prior employee notification of the con-
tent and methods to be used in the training and written end 
of course evaluation; 
(4) contains any methods or content associated with reli-
gious or quasi-religious belief systems or "new age" belief sys-
tems as defined in Equal Employment Opportunity Commission 
Notice N-915.022, dated September 2, 1988; or 
(5) is offensive to, or designed to change, participants' 
personal values or lifestyle outside the workplace. 
(b) Nothing in this section shall prohibit, restrict, or otherwise 
preclude an agency from conducting training bearing directly upon 
the performance of official duties. 
SEC. 622. No funds appropriated in this or any other Act 
may be used to implement or enforce the agreements in Standard 
Forms 312 and 4414 of the Government or any other nondisclosure 
policy, form, or agreement if such policy, form, or agreement does 
not contain the following provisions: "These restrictions are consist-
ent with and do not supersede, conflict with, or otherwise alter 
the employee obligations, rights, or liabilities created by Executive 
Order No. 12958; section 7211 of title 5, U.S.C. (governing disclo-
sures to Congress); section 1034 of title 10, United States Code, 
as amended by the Military Whistleblower Protection Act (governing 
disclosure to Congress by members of the military); section 
PUBLIC LAW 106-554—APPENDIX C 
114 STAT. 2763A-161 
2302(b)(8) of title 5, United States Code, as amended by the Whistle-
blower Protection Act (governing disclosures of illegality, waste, 
fraud, abuse or public health or safety threats); the Intelligence 
Identities Protection Act of 1982 (50 U.S.C. 421 et seq.) (governing 
disclosures that could expose confidential Government agents); and 
the statutes which protect against disclosure that may compromise 
the national security, including sections 641, 793, 794, 798, and 
952 of title 18, United States Code, and section 4(b) of the Subver-
sive Activities Act of 1950 (50 U.S.C. 783(b)). The definitions, 
requirements, obligations, rights, sanctions, and liabilities created 
by said Executive order and listed statutes are incorporated into 
this agreement and are controlling.": Provided, That notwithstand-
ing the preceding paragraph, a nondisclosure policy form or agree-
ment that is to be executed by a person connected with the conduct 
of an intelligence or intelligence-related activity, other than an 
employee or ofRcer of the United States Government, may contain 
provisions appropriate to the particular activity for which such 
document is to be used. Such form or agreement shall, at a mini-
mum, require that the person will not disclose any classified 
information received in the course of such activity unless specifically 
authorized to do so by the United States Grovemment. Such non-
disclosure forms shall also make it clear that they do not bar 
disclosures to Congress or to an authorized official of an executive 
agency or the Department of Justice that are essential to reporting 
a substantial violation of law. 
SEC. 623. No part of any funds appropriated in this or any 
other Act shall be used by an agency of the executive branch, 
other than for normal and recognized executive-legislative relation-
ships, for publicity or propaganda purposes, and for the preparation, 
distribution or use of any kit, pamphlet, booklet, publication, radio, 
television or film presentation designed to support or defeat legisla-
tion pending before the Congress, except in presentation to the 
Congress itself. 
SEC. 624. (a) IN GENERAL.—For calendar year 2002 and each 
year thereafter, the Director of the Office of Management and 
Budget shall prepare and submit to Congress, with the budget 
submitted under section 1105 of title 31, United States Code, an 
accounting statement Euid associated report containing— 
(1) an estimate of the total annual costs and benefits 
(including quantifiable and nonquantifiable effects) of Federal 
rules and paperwork, to the extent feasible— 
(A) in the aggregate; 
(B) by agency and agency program; and 
(C) by major rule; 
(2) an analysis of impacts of Federal regulation on State, 
local, and tribal government, small business, wages, and eco-
nomic growth; and 
(3) recommendations for reform. 
(b) NOTICE.—The Director of the Office of Management and 
Budget shall provide public notice and an opportunity to comment 
on the statement and report under subsection (a) before the state-
ment and report are submitted to Congress. 
(c) GUIDELINES.—To implement this section, the Director of 
the Office of Management and Budget shall issue guidelines to 
agencies to standardize— 
(1) measures of costs and benefits; and 
(2) the format of accounting statements. 
114 STAT. 2763A-162 
PUBLIC LAW 106-554^APPENDIX C 
(d) PEER REVIEW.—The Director of the Office of Management 
and Budget shall provide for independent and external peer review 
of the guidelines and each accounting statement and associated 
report under this section. Such peer review shall not be subject 
to the Federal Advisory Committee Act (5 U.S.C. App.). 
SEC. 625. None of the funds appropriated by this or any other 
Act may be used by an agency to provide a Federal employee's 
home address to any labor organization except when the employee 
has authorized such disclosure or when such disclosure has been 
ordered by a court of competent jurisdiction. 
SEC. 626. Hereafter, the Secretary of the Treasury is authorized 
to establish scientific certification standards for explosives detection 
canines, and shall provide, on a reimbursable basis, for the certifi-
cation of explosives detection canines employed by Federal agencies, 
or other agencies providing explosives detection services at airports 
in the United States. 
SEC. 627. None of the funds made available in this Act or 
any other Act may be used to provide any non-public information 
such as mailing or telephone lists to any person or any organization 
outside of the Federal Government without the approval of the 
Committees on Appropriations. 
SEC. 628. No part of any appropriation contained in this or 
any other Act shall be used for publicity or propaganda purposes 
within the United States not heretofore authorized by the Congress. 
SEC. 629. (a) In this section the term "agency"— 
(1) means an Executive agency as defined under section 
105 of title 5, United States Code; 
(2) includes a military department as defined under section 
102 of such title, the Postal Service, and the Postal Rate 
Commission; and 
(3) shall not include the General Accounting Office. 
(b) Unless authorized in accordance with law or regulations 
to use such time for other purposes, an employee of an agency 
shall use official time in an honest effort to perform official duties. 
An employee not under a leave system, including a Presidential 
appointee exempted under section 6301(2) of title 5, United States 
Code, has an obligation to expend an honest effort and a reasonable 
proportion of such employee's time in the performance of official 
duties. 
SEC. 630. (a) None of the funds appropriated by this Act may 
be used to enter into or renew a contract which includes a provision 
providing prescription drug coverage, except where the contract 
also includes a provision for contraceptive coverage. 
(b) Nothing in this section shall apply to a contract with— 
(1) any of the following religious plans: 
(A) Personal Care's HMO; 
(B) Care Choices; 
(C) OSF Health Plans, Inc.; and 
(2) any existing or future plan, if the carrier for the plan 
objects to such coverage on the basis of religious beliefs. 
(c) In implementing this section, any plan that enters into 
or renews a contract under this section may not subject any individ-
ual to discrimination on the basis that the individual refuses to 
prescribe or otherwise provide for contraceptives because such 
activities would be contrary to the individual's religious beliefs 
or moral convictions. 
PUBLIC LAW 106-554—APPENDIX C 
114 STAT. 2763A-163 
(d) Nothing in this section shall be construed to require cov-
erage of abortion or abortion-related services. 
SEC. 631. Notwithstanding 31 U.S.C. 1346 and section 610 
of this Act, funds made available for fiscal year 2001 by this 
or any other Act to any department or agency, which is a member 
of the Joint Financial Management Improvement Program (JFMIP), 
shall be available to finance an appropriate share of JFMIP 
administrative costs, as determined by the JFMIP, but not to exceed 
a total of $800,000 including the salary of the Executive Director 
and staff support. 
SEC. 632. Notwithstanding 31 U.S.C. 1346 and section 610 
of this Act, the head of each Executive department and agency 
is hereby authorized to transfer to the "Policy and Operations" 
account, General Services Administration, with the approval of 
the Director of the Office of Management and Budget, funds made 
available for fiscal year 2001 by this or any other Act, including 
rebates from charge card and other contracts. These funds shall 
be administered by the Administrator of General Services to support 
Government-wide financial, information technology, procurement, 
and other management innovations, initiatives, and activities, as 
approved by the Director of the Office of Management and Budget, 
in consultation with the appropriate interagency groups designated 
by the Director (including the Chief Financial Officers Council 
and the Joint Financial Management Improvement Program for 
financial management initiatives, the Chief Information Officers 
Council for information technology initiatives, and the Procurement 
Executives Council for procurement initiatives). The total funds 
transferred shall not exceed $17,000,000. Such transfers may only 
be made 15 days following notification of the Committees on Appro-
priations by the Director of the Office of Management and Budget. 
SEC. 633. (a) IN GENERAL.—In accordance with regulations 
promulgated by the Office of Personnel Management, an Executive 
agency which provides or proposes to provide child care services 
for Federal employees may use appropriated funds (otherwise avail-
able to such agency for salaries and expenses) to provide child 
care, in a Federal or leased facility, or through contract, for civilian 
employees of such agency. 
(b) AFFORDABILITY.—^Amounts so provided with respect to any 
such facility or contractor shall be applied to improve the afford-
ability of child care for lower income Federal employees using 
or seeking to use the child care services offered by such facility 
or contractor. 
(c) DEFINITION.—For purposes of this section, the term "Execu-
tive agency" has the meaning given such term by section 105 
of title 5, United States Code, but does not include the General 
Accounting Office. 
(d) NOTIFICATION.—None of the funds made available in this 
or any other Act may be used to implement the provisions of 
this section absent advance notification to the Committees on Appro-
priations. 
SEC. 634. Notwithstanding any other provision of law, a woman 
may breastfeed her child at any location in a Federal building 
or on Federal property, if the woman and her child are otherwise 
authorized to be present at the location. 
SEC. 635. Nothwithstanding section 1346 of title 31, United 
States Code, or section 610 of this Act, funds made available for 
fiscal year 2001 by this or any other Act shall be available for 
114 STAT. 2763A-164 
PUBLIC LAW 106-554—APPENDIX C 
the interagency funding of specific projects, workshops, studies, 
and similar efforts to carry out the purposes of the National Science 
and Technology Council (authorized by Executive Order No. 12881), 
which benefit multiple Federal departments, agencies, or entities: 
Provided, That the Office of Management and Budget shall provide 
a report describing the budget of and resources connected with 
the National Science and Technology Council to the Committees 
on Appropriations, the House Committee on Science; and the Senate 
Committee on Commerce, Science, and Transportation 90 days after 
enactment of this Act. 
SEC. 636. RETIREMENT PROVISIONS RELATING TO CERTAIN MEM-
BERS OF THE POLICE FORCE OF THE METROPOLITAN WASHINGTON 
AIRPORTS AUTHORITY.—(a) 
QUALIFIED M W A A 
POLICE OFFICER 
DEFINED.—For purposes of this section, the term "qualified MWAA 
police officer" means any individual who, as of the date of the 
enactment of this Act— 
(1) is employed as a member of the police force of the 
Metropolitan Washington Airports Authority (hereafter in this 
section referred to as an "MWAA police officer"); and 
(2) is subject to the Civil Service Retirement System or 
the Federal Employees' Retirement System by virtue of section 
49107(b) of title 49, United States Code. 
(b) ELIGIBILITY TO B E TREATED AS A LAW ENFORCEMENT OFFI-
CER FOR RETIREMENT PURPOSES.— 
(1) IN GENERAL.—^Any qualified MWAA police officer may, 
by written election submitted in accordance with applicable 
requirements under subsection (c), elect to be treated as a 
law enforcement officer (within the meaning of section 8331 
or 8401 of title 5, United States Code, as applicable), and 
to have all prior service described in paragraph (2) similarly 
treated. 
(2) PRIOR SERVICE DESCRIBED.—The service described in 
this paragraph is all service which an individual performed, 
prior to the effective date of such individual's election under 
this section, as— 
(A) an MWAA police officer; or 
(B) a member of the police force of the Federal Aviation 
Administration (hereafter in this section referred to as 
an "FAA police officer"). 
(c) REGULATIONS.—The Office of Personnel Management shall 
prescribe any regulations necessary to carry out this section, includ-
ing provisions relating to the time, form, and manner in which 
any election under this section shall be made. Such an election 
shall not be effective unless— 
(1) it is made before the employee separates from service 
with the Metropolitan Washington Airports Authority, but in 
no event later than 1 year after the regulations under this 
subsection take effect; and 
(2) it is accompanied by payment of an amount equal 
to, with respect to all prior service of such employee which 
is described in subsection (b)(2)— 
(A) the employee deductions that would have been 
required for such service under chapter 83 or 84 of title 
5, U.S.C. (as the case may be) if such election had then 
been in effect, minus 
PUBLIC LAW 106-554—APPENDIX C 
114 STAT. 2763A-165 
(B) the total employee deductions and contributions 
under such chapter 83 and 84 (as applicable) that were 
actually made for such service, 
taking into account only amounts required to be credited to 
the Civil Service Retirement and Disability Fund. Any amount 
under paragraph (2) shall be computed with interest, in accord-
ance with section 8334(e) of such title 5. 
(d) GOVERNMENT CONTRIBUTIONS.—^Whenever a payment under 
subsection (c)(2) is made by an individual with respect to such 
individual's prior service (as described in subsection (b)(2)), the 
Metropolitan Washington Airports Authority shall pay into the 
Civil Service Retirement and Disability Fund any additional con-
tributions for which it would have been liable, with respect to 
such service, if such individual's election under this section had 
then been in effect (and, to the extent of any prior FAA police 
officer service, as if it had then been the employing agency). Any 
amount under this subsection shall be computed with interest, 
in accordance with section 8334(e) of title 5, United States Code. 
(e) CERTIFICATIONS.—The Office of Personnel Management shall 
accept, for the purpose of this section, the certification o?— 
(1) the Metropolitan Washington Airports Authority (or 
its designee) concerning any service performed by an individual 
as an MWAA police officer; and 
(2) the Federal Aviation Administration (or its designee) 
* concerning any service performed by an individual as an FAA 
police officer. 
(f) REIMBURSEMENT TO COMPENSATE FOR UNFUNDED LIABIL-
ITY.— 
(1) IN GENERAL.—^The Metropolitan Washington Airports 
Authority shall pay into the Civil Service Retirement and 
Disability Fund an amount (as determined by the Director 
of the Office of Personnel Management) equal to the amount 
necessary to reimburse the Fund for any estimated increase 
in the unfunded liability of the Fund (to the extent the Civil 
Service Retirement System is involved), and for any estimated 
increase in the supplemental liability of the Fund (to the extent 
the Federal Employees' Retirement System is involved), result-
ing from the enactment of this section. 
(2) PAYMENT METHOD.—^The Metropolitan Washington Air-
ports Authority shall pay the amount so determined in five 
equal annual installments, with interest (which shall be com-
puted at the rate used in the most recent valuation of the 
Federal Employees' Retirement System). 
SEC. 637. (a) For purposes of this section— 
(1) the term "comparability pajnnent" refers to a locality-
based comparability payment under section 5304 of title 5, 
United States Code; 
(2) the term "President's pay agent" refers to the pay 
agent described in section 5302(4) of such title; and 
(3) the term "pay locality" has the meaning given such 
term by section 5302(5) of such title. 
(b) Notwithstanding any provision of section 5304 of title 5, 
United States Code, for purposes of determining appropriate pay 
localities and making comparability payment recommendations, the 
President's pay agent may, in accordance with succeeding provisions 
of this section, make comparisons of General Schedule pay and 
114 STAT. 2763A-166 
PUBLIC LAW 106-554—APPENDIX C 
non-Federal pay within any of the metropoUtan statistical areas 
described in subsection (d)(3), using— 
(1) data from surveys of the Bureau of Labor Statistics; 
(2) salary data sets obtained under subsection (c); or 
(3) any combination thereof. 
(c) To the extent necessary in order to carry out this section, 
the President's pay agent may obtain any salary data sets (referred 
to in subsection (b)) from any organization or entity that regularly 
compiles similar data for businesses in the private sector. 
(d)(1)(A) This paragraph applies with respect to the five metro-
politan statistical areas described in paragraph (3) which— 
(i) have the highest levels of nonfarm employment (as 
determined based on data made available by the Bureau of 
Labor Statistics); and 
(ii) as of the date of the enactment of this Act, have not 
previously been surveyed by the Bureau of Labor Statistics 
(as discrete pay localities) for purposes of section 5304 of title 
5, United States Code. 
(B) The President's pay agent, based on such comparisons under 
subsection (b) as the pay agent considers appropriate, shall: (i) 
determine whether any of the five areas under subparagraph (A) 
warrants designation as a discrete pay locality; and (ii) if so, make 
recommendations as to what level of comparability payments would 
be appropriate during 2002 for each area so determined. 
(C)(i) Any recommendations imder subparagraph (B)(ii) shall 
be included— 
(I) in the pay agent's report under section 5304(d)(1) of 
title 5, United States Code, submitted for purposes of com-
parability payments scheduled to become payable in 2002; or 
(II) if compliance with subclause (I) is impracticable, in 
a supplementary report which the pay agent shall submit to 
the President and the Congress no later than March 1, 2001. 
(ii) In the event that the recommendations are completed in 
time to be included in the report described in clause (i)(I), a copy 
of those recommendations shall be transmitted by the pay agent 
to the Congress contemporaneous with their submission to the 
President. 
(D) Each of the five areas luider subparagraph (A) that so 
warrants, as determined by the President's pay agent, shall be 
designated as a discrete pay locality under section 5304 of title 
5, United States Code, in time for it to be treated as such for 
purposes of comparability payments becoming payable in 2002. 
(2) The President's pay agent may, at any time after the 180th 
day following the submission of the report under subsection (f), 
make any initial or further determinations or recommendations 
under this section, based on any pay comparisons under subsection 
(b), with respect to any area described in paragraph (3). 
(3) An area described in this paragraph is any metropolitan 
statistical area within the continental United States that (as deter-
mined based on data made available by the Bureau of Labor Statis-
tics and the Office of Personnel Management, respectively) has 
a high level of nonfarm employment and at least 2,500 General 
Schedule employees whose post of duty is within such area. 
(e)(1) The authority under this section to make pay comparisons 
and to make any determinations or recommendations based on 
such comparisons shall be available to the President's pay agent 
only for purposes of comparability payments becoming payable on 
PUBLIC LAW 106-554—APPENDIX C 
114 STAT. 2763A-167 
or after January 1, 2002, and before January 1, 2007, and only 
with respect to areas described in subsection (d)(3). 
(2) Any comparisons and recommendations so made shall, if 
included in the pay agent's report under section 5304(d)(1) of title 
5, United States Code, for any year (or the pay agent's supple-
mentary report, in accordance with subsection (d)(l)(C)(i)(II)), be 
considered and acted on as the pay agent's comparisons and rec-
ommendations under such section 5304(d)(1) for the area and the 
year involved. 
(f)(1) No later than March 1, 2001, the President's pay agent 
shall submit to the Committee on Government Reform of the House 
of Representatives, the Committee on Governmental Affairs of the 
Senate, and the Committees on Appropriations of the House of 
Representatives and of the Senate, a report on the use of pay 
comparison data, as described in subsection (b)(2) or (3) (as appro-
priate), for purposes of comparability payments. 
(2) The report shall include the cost of obtaining such data, 
the rationale underlying the decisions reached based on such data, 
and the relative advantages and disadvantages of using such data 
(including whether the effort involved in analyzing and integrating 
such data is commensurate with the benefits derived from their 
use). The report may include specific recommendations regarding 
the continued use of such data. 
(g)(1) No later than May 1, 2001, the President's pay agent 
shall prepare and submit to the committees specified in subsection 
(f)(1) a report relating to the ongoing efforts of the Office of Person-
nel Management, the Office of Management and Budget, and the 
Bureau of Labor Statistics to revise the methodology currently 
being used by the Bureau of Labor Statistics in performing its 
surveys under section 5304 of title 5, United States Code. 
(2) The report shall include a detailed accounting of any con-
cerns the pay agent may have regarding the current methodology, 
the specific projects the pay agent has directed any of those agencies 
to undertake in order to address those concerns, and a time line 
for the anticipated completion of those projects and for implementa-
tion of the revised methodology. 
(3) The report shall also include recommendations as to how 
those ongoing efforts might be expedited, including any additional 
resources which, in the opinion of the pay agent, are needed in 
order to expedite completion of the activities described in the preced-
ing provisions of this subsection, and the reasons why those addi-
tional resources are needed. 
SEC. 638. FEDERAL FUNDS IDENTIFIED. Any request for propos-
als, solicitation, grant application, form, notification, press release, 
or other publications involving the distribution of Federal funds 
shall indicate the agency providing the fiinds and the amount 
provided. This provision shall apply to direct pajnnents, formula 
funds, and grants received by a State receiving Federal funds. 
SEC. 639. MANDATORY REMOVAL FROM EMPLOYMENT OF FEDERAL 
LAW ENFORCEMENT OFFICERS CONVICTED OF FELO-
NIES. 
(a) IN GENERAL.—Chapter 73 of title 5, United States Code, 
is amended by adding after subchapter VI the following: 
114 STAT. 2763A-168 
PUBLIC LAW 106-554—APPENDIX C 
"SUBCHAPTER VII—MANDATORY REMOVAL FROM EMPLOY-
MENT OF CONVICTED LAW ENFORCEMENT OFFICERS 
"§ 7371. Mandatory removal from employment of law enforce-
ment officers convicted of felonies 
"(a) In this section, the term— 
"(1) 'conviction notice date' means the date on which an 
agency that employs a law enforcement officer has notice that 
the officer has been convicted of a felony that is entered by 
a Federal or State court, regardless of whether that conviction 
is appealed or is subject to appeal; and 
"(2) 'law enforcement officer' has the meaning given that 
term under section 8331(20) or 8401(17). 
"(b) Any law enforcement officer who is convicted of a felony 
shall be removed from employment as a law enforcement officer 
on the last day of the first applicable pay period following the 
conviction notice date. 
"(c)(1) This section does not prohibit the removal of an individ-
ual from employment as a law enforcement officer before a convic-
tion notice date if the removal is properly effected other than 
under this section. 
"(2) This section does not prohibit the employment of any 
individual in any position other than that of a law enforcement 
officer. 
"(d) If the conviction is overturned on appeal, the removal 
shall be set aside retroactively to the date on which the removal 
occurred, with back pay under section 5596 for the period during 
which the removal was in effect, unless the removal was properly 
effected other than under this section. 
"(e)(1) If removal is required under this section, the agency 
shall deliver written notice to the employee as soon as practicable, 
and not later than 5 calendar days after the conviction notice 
date. The notice shall include a description of the specific reasons 
for the removal, the date of removal, and the procedures made 
applicable under paragraph (2). 
"(2) The procedures under section 7513(b)(2), (3), and (4), (c), 
(d), and (e) shall apply to any removal under this section. The 
employee may use the procedures to contest or appeal a removal, 
but only with respect to whether— 
"(A) the employee is a law enforcement officer; 
"(B) the employee was convicted of a felony; or 
"(C) the conviction was overturned on appeal. 
"(3) A removal required under this section shall occur on the 
date specified in subsection (b) regardless of whether the notice 
required under paragraph (1) of this subsection and the procedures 
made applicable under paragraph (2) of this subsection have been 
provided or completed by that date.". 
(b) TECHNICAL AND CONFORMING AMENDMENT.—The table of 
sections for chapter 73 of title 5, United States Code, is amended 
by adding after the item relating to section 7363 the following: 
"SUBCHAPTER VII—MANDATORY REMOVAL FROM EMPLOYMENT OF 
CONVICTED LAW ENFORCEMENT OFFICERS 
"7371. Mandatory removal from employment of law enforcement officers convicted 
of felonies.". 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect 30 days after the date of enactment of this Act 
PUBLIC LAW 106-554—APPENDIX C 
114 STAT. 2763A-169 
and shall apply to any conviction of a felony entered by a Federal 
or State court on or after that date. 
SEC. 640. Section 504 of the Department of Transportation 
and Related Agencies Appropriations Act, 2001 (as enacted into 
law by Public Law 106-346) is repealed. 
SEC. 641. (a) Section 5545b(d) of title 5, United States Code, 
is amended by inserting at the end the following new paragraph: 
"(4) Notwithstanding section 8114(e)(1), overtime pay for 
a firefighter subject to this section for hours in a regular 
tour of duty shall be included in any computation of pay under 
section 8114.". 
(b) The amendment in subsection (a) shall be effective as if 
it had been enacted as part of the Federal Firefighters Overtime 
Pay Reform Act of 1998 (112 Stat. 2681-519). 
SEC. 642. Section 6323(a) of title 5, United States Code, is 
amended by adding at the end the following: 
"(3) The minimum charge for leave under this subsection 
is one hour, and additional charges are in multiples thereof". 
SEC. 643. Section 616 of the Treasury, Postal Service and 
General Government Appropriations Act, 1988, as contained in 
the Act of December 22, 1987 (40 U.S.C. 490b), is amended by 
adding at the end the following: 
"(e)(1) All existing and newly hired workers in any child care 
center located in an executive facility shall undergo a criminal 
history background check as defined in section 231 of the Crime 
Control Act of 1990 (42 U.S.C. 13041). 
"(2) For purposes of this subsection, the term 'executive facility' 
means a facility that is owned or leased by an office or entity 
within the executive branch of the Government (including one that 
is owned or leased by the General Services Administration on 
behalf of an office or entity within the judicial branch of the Govern-
ment). 
"(3) Nothing in this subsection shall be considered to apply 
with respect to a facility owned by or leased on behalf of an 
office or entity within the legislative branch of the Government.". 
SEC. 644. Section 501 of the Department of Transportation 
and Related Agencies Appropriations Act, 2001 (as enacted into 
law by Public Law 106-346) is amended by striking subsection 
(c) and by redesignating subsection (d) as subsection (c). 
SEC. 645. (a)(1) Title 5, United States Code, is amended by 
inserting after section 5372a the following: 
*'§ 5372b. Administrative appeals judges 
"(a) For the purpose of this section— 
"(1) the term 'administrative appeals judge position' means 
a position the duties of which primarily involve reviewing 
decisions of administrative law judges appointed under section 
3105; and 
"(2) the term 'agency' means an Executive agency, as 
defined by section 105, but does not include the General 
Accounting Office. 
"(b) Subject to such regulations as the Office of Personnel 
Management may prescribe, the head of the agency concerned shall 
fix the rate of basic pay for each administrative appeals judge 
position within such agency which is not classified above GS-
15 pursuant to section 5108. 
"(c) A rate of basic pay fixed under this section shall be— 
114 STAT. 2763A-170 
PUBLIC LAW 106-554—APPENDIX C 
"(1) not less than the minimum rate of basic pay for level 
AL-3 under section 5372; and 
"(2) not greater than the maximum rate of basic pay for 
level AI^3 under section 5372.". 
(2) Section 7323(b)(2)(B)(ii) of title 5, United States Code, is 
amended by striking "or 5372a" and inserting "5372a, or 5372b". 
(3) The table of sections for chapter 53 of title 5, United States 
Code, is amended by inserting after the item relating to section 
5372a the following: 
"5372b. Administrative appeals judges.". 
(b) The amendment made by subsection (a)(1) shall apply with 
respect to pay for service performed on or after the first day of 
the first applicable pay period beginning on or after— 
(1) the 120th day after the date of the enactment of this 
Act; or 
(2) if earlier, the effective date of regulations prescribed 
by the Ofiice of Personnel Management to carry out such 
amendment. 
SEC. 646. Not later than 60 days after the date of enactment 
of this Act, the Inspector General of each department or agency 
shall submit to Congress a report that discloses any activity of 
the applicable department or agency relating to— 
(1) the collection or review of singular data, or the creation 
of aggregate lists that include personally identifiable informa-
tion, about individuals who access any Internet site of the 
department or agency; and 
(2) entering into agreements with third parties, including 
other government agencies, to collect, review, or obtain aggre-
gate lists or singular data containing personally identifiable 
information relating to any individual's access or viewing habits 
for governmental and nongovernmental Internet sites. 
This Act may be cited as the "Treasury and General Govern-
ment Appropriations Act, 2001". 
PUBLIC LAW 106-554^APPENDIX D 
114 STAT. 2763A-171 
APPENDIX D—H.R. 5666 
That the following sums are appropriated, out of any money in 
the Treasury not otherwise appropriated, for the fiscal year ending 
September 30, 2001, and for other purposes, namely: 
V 
DIVISION A 
CHAPTER 1 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 101. The Agriculture, Rursil Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 2001, 
is Eimended— 
(1) In title III, under the heading "Rural Utilities Service, 
Rural Electrification and Telecommunications Loans Program 
Account", after "per year" insert ": Provided further. That not 
more than $100,000 shall be available for guarantees of private 
sector loans". 
(2) In title III, at the end of the first proviso under the 
"Rural Housing Assistance Grants" account, insert "in Mis-
sissippi and Alaska". 
(3) In section 724, by striking "to Hispanic-serving institu-
tions" and all that follows through "maintained by such institu-
tions" and inserting "to eligible grantees specified in subsection 
(d)(3) of that section"; 
(4) In title VIII, under the heading "Rural Community 
Advancement Program", by striking "January 1, 2001" and 
inserting "January 1, 2000"; 
(5) In section 806, by inserting ": Provided further. That 
of the funds made available by this section, the Secretary 
shall transfer $5,000,000 to the State of Alabama to be used 
in conjunction with the program administered by the Alabama 
Department of Agriculture and Industries: Provided 
further, 
That of the funds made available by this section, the Secretary 
shall transfer not more than $300,000 to the State of Montana 
for transportation needs associated with emergency haying and 
feeding: Provided further, That of the funds made available 
by this section, the Secretary shall use not more than 
$2,000,000 to carry out a program for income losses sustained 
before April 30, 2001, by individuals who raise poultry owned 
by other individuals as a result of Poult Enteritis Mortality 
Syndrome control programs, as determined by the Secretary" 
after "American Indian Livestock Feed Program"; 
(6) In section 815(d)(3), by inserting "affected" after "all"; 
114 STAT. 2763A-172 
PUBLIC LAW 106-554—APPENDIX D 
(7) In section 830, by striking "section 401" and inserting 
"title IV". 
(8) In section 843, by striking "were unable to market 
the crops" and all that follows through "in this section:" and 
inserting "suffered a loss because of the insolvency of an agri-
culture cooperative in the State of California: Provided, That 
the amount of a payment made to a producer under this section 
shall not exceed 50 percent of the loss referred to in this 
section:"; 
(9) In section 8 4 4 ^ 
(A) in the section heading, by inserting ", FLUE-
CURED, AND CIGAR BINDER TYPE 54-55" after "BUR-
LEY"; and 
(B) in subsection (a)— 
(i) in paragraph (1)— 
(I) by inserting ", without further cost to the 
association," after "settle"; and 
(II) by inserting ", Flue-cured, or Cigar Binder 
Type 54—55" after "Burley" each place it appears; 
(ii) in paragraph (2)(B), by inserting ", Flue-cured, 
Cigar Binder Type 54-55," after "Burley"; and 
(iii) in paragraph (3), by striking subparagraph 
(A) and inserting the following: 
"(A) counted for the purpose of determining the Burley, 
Flue-cured, or Cigar Binder Type 54-55 tobacco quota or 
allotment for any year under part I of subtitle B of title 
III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1311 et seq.); or"; 
(10) Notwithstanding any other provision of law, section 
204(b)(10)(B) of Public Law 106-224 shall not be effective until 
July 1, 2001; and 
(11) The effective date of this section is the date of enact-
ment of the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 2001. 
SEC. 102. The second sentence of section 520 of the Housing 
Act of 1949 (42 U.S.C. 1490) is amended by striking "1990 decennial 
census" and inserting "1990 or 2000 decennial census", and by 
striking "year 2000" and inserting "year 2010". 
SEC. 103. The Secretary of Agriculture, in collaboration with 
the Secretaries of Energy and Interior, shall undertake a study 
of the feasibility of including ethanol, biodiesel, and other bio-
based fuels as part of the Strategic Petroleum Reserve. This study 
shall include a review of legislative and regulatory changes needed 
to allow this inclusion, and those elements necessary to design 
and implement such a program, including cost. The Secretary shall 
provide this study to the House and Senate Appropriations Commit-
tees by February 15, 2001. 
SEC. 104. Notwithstanding section 730 of the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 2000 (Public Law 106-78), the City of Wilson, 
North Carolina, shall be eligible in fiscal year 2001 for the commu-
nity facility loan guarantee program under section 306(a)(1) of 
the Consolidated Farm and Rural Development Act. 
SEC. 105. Title VIII of the Agriculture, Rural Development, 
Food and Drug Administration, and Related Agencies Appropria-
tions Act, 2001, is amended by inserting at the end the following 
new section: 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-173 
"SEC. 778. Notwithstanding section 723 of this Act or any 
other provision of law, there are hereby appropriated $26,000,000, 
to remain available until expended, for the program authorized 
under section 334 of the Federal Agriculture Improvement and 
Reform Act of 1996: Provided, That the entire amount shall be 
available only to the extent an official budget request for 
$26,000,000, that includes designation of the entire amount of the 
request as an emergency requirement as defined in the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended, 
is transmitted by the President to the Congress: Provided 
further, 
That the entire amount is designated by the Congress as an emer-
gency requirement pursuant to section 251(b)(2)(A) of such Act.". 
SEC. 106. In carrying out the bovine tuberculosis eradication 
program covered by the Secretary of Agriculture's emergency dec-
laration effective as of October 11, 2000, the Secretary of Agriculture 
shall pay 100 percent of the amounts of approved claims for mate-
rials affected by or exposed to bovine tuberculosis, and of approved 
claims growing out of the destruction of animals: Provided, That 
in calculating the net present value of the future income portion 
of any claim, the Secretary shall use a discount rate of 7 percent: 
Provided further. That the entire amount necessary to carry out 
this section shall be available only to the extent that an official 
budget request for the entire amount, that includes designation 
of the entire amount of the request as an emergency requirement 
as defined in the Bsdanced Budget and Emergency Deficit Control 
Act of 1985, as amended, is transmitted by the President to the 
Congress: Provided further. That the entire amount is designated 
by the Congress as an emergency requirement pursuant to section 
251(b)(2)(A) of such Act. 
SEC. 107. Section 820(b) of the Agriculture, Rural Development, 
Food and Drug Administration, and Related Agencies Appropria-
tions Act, 2001, is amended by striking "of 1996" and inserting 
the following: "of 1996, and for the Farmland Protection Program 
established under section 388 of the Federal Agriculture Improve-
ment and Reform Act of 1996". 
SEC. 108. For an additional amount for the United States 
Department of Agriculture, Office of the General Counsel, $500,000: 
Provided, That the entire amount shall be available only to the 
extent an official budget request for $500,000, that includes designa-
tion of the entire amount of the request as an emergency require-
ment as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President 
to the Congress: Provided further. That the entire amount is des-
ignated by the Congress as an emergency requirement pursuant 
to section 251(b)(2)(A) of such Act. 
SEC. 109. For an additional amount for Grain Inspection, Pack-
ers and 
Stockyards Administration, 
Salaries 
and 
Expenses, 
$200,000: Provided, That the entire amount shall be available only 
to the extent an official budget request for $200,000, that includes 
designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended, is transmitted by the 
President to the Congress: Provided further. That the entire amount 
is designated by the Congress as an emergency requirement pursu-
ant to section 251(b)(2)(A) of such Act. 
SEC. 110. Notwithstanding any other provision of law, the 
Natural Resources Conservation Service may provide financial and 
114 STAT. 2763A-174 
PUBLIC LAW 106-554—APPENDIX D 
technical assistance to the Hamakua Ditch project in Hawaii from 
funds available for the Emergency Watershed Program, not to 
exceed $3,000,000. 
CHAPTER 2 
DEPARTMENT OF JUSTICE 
FEDERAL PRISON SYSTEM 
SALARIES AND EXPENSES 
For an additional amount for "Salaries and Expenses", 
$500,000, to remain available until expended: Provided, That these 
funds are to be expended by the National Institute of Corrections 
(NIC) for a comprehensive assessment of medical care and incidents 
of inmate mortality in the Wisconsin State Prison System. 
OFFICE OF JUSTICE PROGRAMS 
JUSTICE ASSISTANCE 
For an additional amount for "Justice Assistance", $300,000, 
to remain available until expended: Provided, That these funds 
are to be expended to expand the collection of data on prisoner 
deaths while in law enforcement custody. 
COMMUNITY ORIENTED POLICING SERVICES 
For an additional amount for "Community Oriented Policing 
Services", $3,080,000, to remain available until expended, of which 
$1,880,000 shall be for a grant to the Pasadena, California, Police 
Department for equipment; of which $200,000 shall be for a grant 
to the City of Signal Hill, California, for equipment and technology 
for an emergency operations center; and of which $1,000,000 shall 
be for a grant to the State of Alabama Department of Forensic 
Sciences for equipment. 
JUVENILE JUSTICE PROGRAMS 
For an additional amount for "Juvenile Justice Programs", 
$1,000,000, to remain available until expended, for a grsint to Mobile 
County, Alabama, for a juvenile court network program. 
GENERAL PROVISIONS 
SEC. 201. Chapter 2 of title II of division B of Public Law 
106-246 (114 Stat. 542) is amended in the matter immediately 
under the first heading— 
(1) by inserting, "(or the State, in the case of New Mexico)" 
before "only"; and 
(2) by inserting, "detention costs," after "court costs,". 
SEC. 202. For an additional amount under the heading "United 
States Attorneys, Salaries and Expenses" in the Departments of 
Commerce, Justice, and State, the Judiciary, and Related Agencies 
Appropriations Act, 2001, $10,000,000 for the State of Texas and 
$2,000,000 for the State of Arizona, to reimburse county and munici-
pal governments only for Federal costs associated with the handling 
and processing of illegal immigration and drug and alien smuggling 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-175 
cases, such reimbursements being limited to court costs, detention 
costs, courtroom technology, the building of holding spaces, adminis-
trative staff, and indigent defense costs. 
SEC. 203. In addition to amounts appropriated under the head-
ing "State and Local Law Enforcement Assistance, Office of Justice 
Programs" in the Departments of Commerce, Justice, and State, 
the Judiciary, and Related Agencies Appropriations Act, 2001, 
$9,000,000 is for an award to the Alliance of Boys & Girls of 
South Carolina for the establishment of the Strom Thurmond Boys 
& Girls Club National Training Center. 
SEC. 204. In addition to any amounts made available for "State 
and Local Law Enforcement Assistance" within the Department 
of Justice, $500,000 shall be made available only for the New 
Hampshire Department of Safety to investigate and support the 
prosecution of violations of Federal trucking laws. 
SEC. 205. In addition to other amounts made available for 
the COPS technology program of the Department of Justice, 
$4,000,000 shall be available to the State of South Dakota to 
establish a regional radio system to facilitate communications 
between Federal, State, and local law enforcement agencies, fire-
fighting agencies, and other emergency services agencies. 
DEPARTMENT OF COMMERCE 
^ ^ 
_ 
ECONOMIC AND STATISTICAL ANALYSIS 
SALARIES AND EXPENSES 
For an additional amount for "Salaries and Expenses", 
$200,000, to remain available until expended, for the establishment 
of satellite accounts for the travel and tourism industry. 
NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION 
OPERATIONS, RESEARCH, AND FACILITIES 
For an additional amount for "Operations, Research, and Facili-
ties", $750,000, to remain available until expended, for a study 
by the National Academy of Sciences pursuant to H.R. 2090, as 
passed by the House of Representatives on September 12, 2000. 
GrENERAL PROVISIONS 
SEC. 206. The Departments of Commerce, Justice, and State, 
the Judiciary, and Related Agencies Appropriations Act, 2001, as 
enacted by section 1(a)(2) of the Act entitled "An Act making appro-
priations for the government of the District of Columbia and other 
activities chargeable in whole or in part against revenues of said 
District for the fiscal year ending September 30, 2001, and for 
other purposes" is amended by inserting before the period at the 
end of the paragraph under the heading "National Oceanic and 
Atmospheric Administration, Operations, Research, and Facilities" 
the following new proviso: ": Provided further, That, of the amounts 
made available for the National Marine Fisheries Service under 
this heading, $10,000,000 shall be available only for research 
regarding litigation concerning the Alaska Steller sea lion and 
Bering Sea/Aleutian Islands and Gulf of Alaska groundfish fisheries, 
of which $6,000,000 shall be available only for the Office of Oceanic 
114 STAT. 2763A-176 
PUBLIC LAW 106-554—APPENDIX D 
and Atmospheric Research to study the impact of ocean climate 
shifts on the North Pacific and Bering Sea fish and marine mammal 
species composition, of which $2,000,000 shall be available only 
for the National Ocean Service to study predator/prey relationships 
as they relate to the decline of the western population of Steller 
sea lions, and of which $2,000,000 shall be available only for the 
North Pacific Fishery Management Council for an independent 
analysis of Steller sea lion science and other work related to such 
litigation". 
SEC. 207. (a) In addition to amounts appropriated or otherwise 
made available under the heading "Operations, Research, and 
Facilities, National Oceanic and Atmospheric Administration" in 
the Departments of Commerce, Justice, and State, the Judiciary, 
and Related Agencies Appropriations Act, 2001, $7,500,000 is appro-
priated for disaster assistance for communities affected by the 2000 
western Alaska salmon disaster for which the Secretary of Com-
merce declared a fishery failure under section 312(a) of the Magnu-
son Stevens Fisheries Conservation and Management Act. 
(b) Funds appropriated by this section shall be made available 
as direct lump sum payments no later than 30 days after the 
date of enactment of this Act, as follows: $3,500,000 to the Tanana 
Chiefs Conference, $3,500,000 to the Association of Village Council 
Presidents, and $500,000 to Kawerak. 
(c) Such funds shall be used to provide personal assistance 
with priority given to: (1) food; (2) energy needs; (3) housing assist-
ance; (4) transportation fuel including for subsistence activities; 
and (5) other urgent community needs. 
(d) Not more than 5 percent of such funds may be used for 
administrative expenses. 
(e) The President of the Tanana Chiefs Conference, the Presi-
dent of the Association of Village Council Presidents, and the Presi-
dent of Kawerak shall disburse all funds no later than May 1, 
2000 and shall submit a report to the Secretary of Commerce 
detailing the expenditure of funds, including the number of persons 
and households served and the amount of administrative costs, 
by the end of the fiscal year. 
SEC. 208. In addition to amounts appropriated or otherwise 
made available by this or any other Act, $3,000,000 is appropriated 
to enable the Secretary of Commerce to provide economic assistance 
to fishermen and fishing communities affected by Federal closures 
and fishing restrictions in the Hawaii long line fishery, to remain 
available until expended. 
SEC. 209. IMPLEMENTATION OF STELLER SEA LION PROTECTIVE 
MEASURES.— 
(a) FINDINGS.—The Congress finds that— 
(1) the western population of Steller sea lions has substan-
tially declined over the last 25 years. 
(2) scientists should closely research and analyze all pos-
sible factors relating to such decline, including the possible 
interactions between commercial fishing and Steller sea lions 
and the localized depletion hypothesis; 
(3) the authority to manage commercial fisheries in Federal 
waters lies with the regional councils and the Secretary of 
Commerce (hereafter in this section "Secretary") pursuant to 
the Magnuson-Stevens Fishery Conservation and Management 
Act (hereafter in this section "Magnuson-Stevens Act"); and 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-177 
(4) the Secretary of Commerce shall comply with the 
Magnuson-Stevens Act when using fishery management plans 
and regulations to implement the decisions made pursuant 
to findings under the Endangered Species Act, and shall utilize 
the processes and procedures of the regional fishery manage-
ment councils as required by the Magnuson-Stevens Act. 
(b) INDEPENDENT SCIENTIFIC REVIEW.—The North Pacific Fish-
ery Management Council (hereafter in this section "North Pacific 
Council) shall utilize the expertise of the National Academy of 
Sciences to conduct an independent scientific review of the Novem-
ber 30, 2000 Biological Opinion for the Bering Sea/Aleutian Islands 
and Gulf of Alaska groundfish fisheries (hereafter in this section 
"Biological Opinion"), its underlying hypothesis, and the Reasonable 
and Prudent Alternatives (hereafter in this section "Alternatives") 
contained therein. The Secretary shall cooperate with the independ-
ent scientific review, and the National Academy of Sciences is 
requested to give its highest priority to this review. 
(c) PREPARATION OF FISHERY MANAGEMENT PLANS AND REGULA-
TIONS To 
IMPLEMENT PROTECTIVE MEASURES IN THE NOVEMBER 
30, 2000 BIOLOGICAL OPINION.— 
(1) The Secretary of Commerce shall submit to the North 
Pacific Council proposed conservation and management meas-
ures to implement the Alternatives contained in the November 
30, 2000 Biological Opinion for the Bering Sea/Aleutian Islands 
and Gulf of Alaska groundfish fisheries. The North Pacific 
Council shall prepare and transmit to the Secretary a fishery 
management plan amendment or amendments to implement 
such Alternatives that are consistent with the Magnuson-Ste-
vens Act (including requirements in such Act relating to best 
available science, bycatch reduction, impacting on fishing 
communities, the safety of life at sea, and public comment 
and hearings.) 
(2) The Bering Sea/Aleutian Islands and Gulf of Alaska 
groundfish fisheries shall be managed in a manner consistent 
with the Alternatives contained in the Biological Opinion, 
except as otherwise provided in this section. The Alternatives 
shall become fully effective no later than January 1, 2002, 
as revised if necessary and appropriate based on the independ-
ent scientific review referred to in subsection (b) and other 
new information, and shall be phased in in 2001 as described 
in paragraph (3). 
(3) The 2001 Bering Sea/Aleutian Islands and Gulf of 
Alaska groundfish fisheries shall be managed in accordance 
with the fishery management plan and Federal regulations 
in effect for such fisheries prior to July 15, 2000, including— 
(A) conservative total allowable catch levels; 
(B) no entry zones within three miles of rookeries; 
(C) restricted harvest levels near rookeries and haul-
outs; 
(D) federally-trained observers; 
(E) spatial and temporal harvest restrictions; 
' 
(F) federally-mandated bycatch reduction programs; 
and 
(G) additional conservation benefits provided through 
cooperative fishing arrangements, 
and said regulations are hereby restored to full force and effect. 
114 STAT. 2763A-178 
PUBLIC LAW 106-554—APPENDIX D 
(4) The Secretary shall amend these regulations by January 
20, 2001, after consultation with the North Pacific Council 
and in a manner consistent with all law, including the Magnu-
son-Stevens Act, and consistent with the Alternatives to the 
maximum extent practicable, subject to the other provisions 
of this subsection. 
(5) The harvest reduction requirement ("Global Control 
Rule") shall take effect immediately in any 2001 groundfish 
fishery in which it applies, but shall not cause a reduction 
in the total allowable catch of any fishery of more than 10 
percent. 
(6) In enforcing regulations for the 2001 fisheries, the Sec-
retary, upon recommendation of the North Pacific Council, may 
open critical habitat where needed, adjust seasonal catch levels, 
and take other measures as needed to ensure that harvest 
levels are sufficient to provide income from these fisheries 
for small boats and Alaskan on-shore processors that is no 
less than in 1999. 
(7) The regulations that are promulgated pursuant to para-
graph (4) shall not be modified in any way other than upon 
recommendation of the North Pacific Council, before March 
15, 2001. 
(d) SEA LION PROTECTION MEASURES.—$20,000,000 is hereby 
appropriated to the Secretary of Commerce to remain available 
until expended to develop and implement a coordinated, comprehen-
sive research and recovery program for the Steller sea lion, which 
shall be designed to study— 
(1) available prey species; 
(2) predator/prey relationships; 
(3) predation by other marine mammals; 
(4) interactions between fisheries and Steller sea lions, 
including the localized depletion theory; 
(5) regime shift, climate change, and other impacts associ-
ated with changing environmental conditions in the North 
Pacific and Bering Sea; 
(6) disease; 
(7) juvenile and pup survival rates; 
(8) population counts; 
(9) nutritional stress; 
(10) foreign commercial harvest of sealions outside the 
exclusive economic zone; 
(11) the residual impacts of former government-authorized 
Steller sea lion eradication bounty programs; and 
(12) the residual impacts of intentional lethal takes of 
Steller sea lions. 
Within available funds the Secretary shall implement on a pilot 
basis innovative non-lethal measures to protect Steller sea lions 
from marine mammal predators including killer whales. 
(e) ECONOMIC DISASTER RELIEF.—$30,000,000 is hereby appro-
priated to the Secretary of Commerce to make available as a direct 
payment to the Southwest Alaska Municipal Conference to distrib-
ute to fishing communities, businesses, community development 
quota groups, individuals, and other entities to mitigate the eco-
nomic losses caused by Steller sea lion protection measures here-
tofore incurred; provided that the President of such organization 
shall provide a written report to the Secretary £ind the House 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-179 
and Senate Appropriations Committee within 6 months of receipt 
of these funds. 
DEPAETMENT OF STATE AND RELATED AGENCY 
GENERAL PROVISIONS 
SEC. 210. In addition to any amounts made available for "Edu-
cational and Cultural Exchange Programs within the Department 
of State", $500,000 shall be made available only for the Irish 
Institute. 
SEC. 211. In addition to amounts appropriated under the head-
ing "International Broadcasting Operations, Broadcasting Board of 
Governors" in the Departments of Commerce, Justice, and State, 
the Judiciary, and Related Agencies Appropriations Act, 2001, 
$10,000,000 to remain available until expended, for increased broad-
casting to Russia and surrounding areas, smd to China, by Radio 
Free Europe/Radio Liberty, Radio Free Asia, and the Voice of Amer-
ica: Provided, That any amount of such funds may be transferred 
to the "Broadcasting Capital Improvements" account to carry out 
such purposes. 
RELATED AGENCIES 
COMMISSION ON ONLINE CHILD PROTECTION 
For necessary expenses of the Commission on Online Child 
Protection, $750,000, to remain available until expended. 
SMALL BUSINESS ADMINISTRATION 
SALARIES AND EXPENSES 
For an additional amount for "Salaries and Expenses", 
$1,000,000 shall be available for a grant to the Electronic Commerce 
Resource Center in Scranton, Pennsylvania, to establish an elec-
tronic commerce technology distribution center. 
GENERAL PROVISION 
SEC. 212. For an additional amount for "Small Business 
Administration, Salaries and Expenses", $1,000,000 shall be made 
available only for a grant to the National Museum of Jazz in 
New York, New York. 
GENERAL PROVISION—THIS CHAPTER 
SEC. 213. (a) The provisions of H.R. 5548 (as enacted into 
law by H.R. 4942 of the 106th Congress) are amended as follows: 
(1) In title I, under the heading "Salaries and Expenses, 
United States Marshals Service", by striking "3,947" and insert-
ing "4,034". 
(2) In title I, by redesignating sections 114 through 119 
as sections 113 through 118, respectively. 
(3) In title II, under the heading "National Oceanic and 
Atmospheric Administration—Operations, Research, and Facili-
ties", by striking "$31,439,000" and inserting "$32,054,000". 
(4) In title II, under the heading "National Oceanic and 
Atmospheric Administration—Coastal and Ocean Activities"— 
114 STAT. 2763A-180 
PUBLIC LAW 106-554—APPENDIX D 
(A) by striking "non-contiguous States except Hawaii" 
and inserting "Alaska"; 
(B) by striking "Inc," and inserting "Inc.,"; 
(C) by striking "scrup;" and inserting "scrub;"; and 
(D) by striking "watershed for lower Rouge River res-
toration:" and inserting "watershed:". 
(5) In title IV, by striking section 406 and by redesignating 
sections 407 and 408 as sections 406 and 407, respectively. 
(6) In title VI, by striking sections 635 and 636. 
(7) In title IX, in the first proviso of section 901, by striking 
", territory or an Indian Tribe" and inserting "or territory", 
(b) The amendments made by this section shall take effect 
as if included in H.R. 4942 of the 106th Congress on the date 
of its enactment. 
CHAPTER 3 
DEPARTMENT OF DEFENSE 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 301. In the event that award of the full funding contract 
for low-rate initial production of the F-22 aircraft is delayed beyond 
December 31, 2000 because of inability to complete the requirements 
specified in section 8124 of the Department of Defense Appropria-
tions Act, 2001 (Public Law 106-259), the Secretary of the Air 
Force may obligate up to $353,000,000 of the funds appropriated 
in title III of Public Law 106-259 to continue F-22 Lot 1 (10 
aircraft) advance procurement to protect the supplier base and 
preserve program costs and schedule. 
SEC. 302. (a) Consistent with Executive Order Number 1733, 
dated March 3, 1913, and notwithstanding section 303 of the Alaska 
National Interest Lands Conservation Act, Public Law 96-487, or 
any other law, the Department of the Air Force shall have primary 
jurisdiction, custody, and control over Shemya Island and its appur-
tenant waters (including submerged lands). In exercising such pri-
mary jurisdiction, custody, and control, the Secretary of the Air 
Force may utilize and apply such authorities as are generally 
applicable to a military installation, base, camp, post, or station. 
Shemya Island and its appurtenant waters (including submerged 
lands) shall continue to be included within the Alaska Maritime 
National Wildlife Refuge and the National Wildlife Refuge System 
and the Secretary of the Interior shall have jurisdiction secondary 
to that of the Department of the Air Force. Nothing in this section 
shall prohibit the transfer of jurisdiction, custody, and control over 
Shemya Island by the Department of the Air Force to another 
military department. In the event the military department exercis-
ing such primary jurisdiction, custody, and control no longer has 
a need to exercise such primary jurisdiction, custody, and control 
of Shemya Island and its appurtenant waters (including submerged 
lands), such jurisdiction, custody, and control shall terminate and 
the Secretary of the Interior shall then exercise sole jurisdiction, 
custody, and control over Shemya Island and its appurtenant waters 
(including submerged lands) as part of the Alaska Maritime 
National Wildlife Refuge. 
(b) Any environmental contamination of Shemya Island caused 
by a military department shall be the responsibility of that military 
PUBLIC LAW 106-554^APPENDIX D 
114 STAT. 2763A-181 
department and not the responsibility of the Department of the 
Interior. Any money rentals received by a military department 
from outgrants on Shemya Island will be applied to the environ-
mental restoration of the island in accordance with 10 U.S.C. 2667. 
(c) This section shall not be construed as altering any existing 
property rights of the State of Alaska or any private person. 
(d) The military department exercising primary jurisdiction, 
custody, and control over Shemya Island shall, consistent with 
the accomplishment of the military mission and subject to section 
21 of the Internal Security Act of 1950, Public Law 81-831 (50 
U.S.C. 797) (also known as the Subversive Activities Control Act 
of 1950)— 
(1) work with the United States Fish and Wildlife Service 
to protect and conserve the wildlife and habitat on the island; 
and 
(2) grant access to Shemya Island and its appurtenant 
waters to the United States Fish and Wildlife Service for the 
purpose of management of the Alaska Maritime National Wild-
life Refuge. 
SEC. 303. Within the funds appropriated for the Patriot PAC-
3 program under title III of the Department of Defense Appropria-
tions Act, 2001 (Public Law 106-259), the Ballistic Missile Defense 
Organization shall procure no less than 40 PAC-3 missiles. 
SEC. 304. Section 8133 of Public Law 106-259 (114 Stat. 703) 
is amended by striking "$300,000,000" in the first proviso and 
inserting "$550,000,000". 
(TRANSFER OF FUNDS) 
SEC. 305. Of the total amount appropriated by title II of the 
Department of Defense Appropriations Act, 2001 (Public Law 106-
259) for operation and maintenance for the Armed Force or Armed 
Forces under the jurisdiction of the Secretary of a military depart-
ment, the Secretary of that military department may transfer up 
to $2,000,000 to the central fund established by the Secretary 
under section 2493(d) of title 10, United States Code, for funding 
Fisher Houses and Fisher Suites. Amounts so transferred shall 
be merged with other amounts in the central fimd to which trans-
ferred and shall be avgdlable without fiscal year limitation for 
the purposes for which amounts in that fund are available. 
SEC. 306. FUNDING FOR CERTAIN COSTS OF VESSEL TRANSFERS. 
There is hereby appropriated into the Defense Vessels Transfer 
Program Account such sums as may be necessary for the costs 
(as defined in section 502 of the Congressional Budget Act of 1974 
(2 U.S.C. 661a)) of the lease-sale transfers authorized by the 
National Defense Authorization Act, 2001. Funds in that account 
are available only for the purpose of covering those costs. 
SEC. 307. Of the total amount appropriated by title FV of 
the Department of Defense Appropriations Act, 2001 (Public Law 
106-259) under the heading "Research, Development, Test and 
Evaluation, Defense-Wide", not less than $5,000,000 shall be made 
available only for support of a Gulf War illness research program 
at the University of Texas Southwestern Medical Center. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 308. In addition to amounts appropriated for the Depart-
ment of Defense in the Department of Defense Appropriations Act, 
114 STAT. 2763A-182 
PUBLIC LAW 106-554—APPENDIX D 
2001 (Public Law 106-259), $150,000,000 is hereby appropriated 
for "Operation and Maintenance, Navy" and shall remain available 
until expended, only for costs associated with the repair of the 
U.S.S. COLE: Provided, That the Secretary of Defense may transfer 
these funds to appropriations accounts for procurement: Provided 
further. That the funds transferred shall be merged with and shall 
be available for the same purposes and for the same time period, 
as the appropriation to which transferred: Provided further. That 
the transfer authority provided in this section is in addition to 
any other transfer authority available to the Department of Defense: 
Provided further, That the welfare of the crew, and of the families 
of the crew, of the U.S.S. COLE shall be considered in the Navy's 
selection of the process and location for the repair of the U.S.S. 
COLE: Provided further. That the entire amount made available 
in this section is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2)(A) of the Balanced Budget 
and Emergency Deficit Control Act of 1985, as amended. 
SEC. 309. Notwithstanding any other provision of law, the 
Administrator of the General Services Administration may utilize 
funds available to the National Science and Technology Council 
(authorized by Executive Order No. 12881), or any successor entity 
to the council, under section 635 of the Treasury and General 
Government Appropriations Act, 2001, for payment of any expenses 
of, and shall ensure that administrative services, facilities, staff 
and other support are provided for, the Commission on the Future 
of the United States Aerospace Industry pursuant to section 
1092(e)(1) of the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001 (as enacted by section 1 of the Act to 
authorize appropriations for fiscal year 2001 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe person-
nel strengths for such fiscal year for the Armed Forces, and for 
other purposes). 
SEC. 310. In addition to funds provided elsewhere in this Act, 
or in the Department of Defense Appropriations Act, 2001 (Public 
Law 106-259), $2,000,000 is hereby appropriated to "Operation 
and Maintenance, Marine Corps", only for planning and National 
Environmental Protection Act documentation for the proposed air-
field and heliport at the Marine Corps Air Ground Task Force 
Training Command. 
(TRANSFER OF FUNDS) 
SEC. 311. Of the funds made available in the Department 
of Defense Appropriations Act, 2001 (Public Law 106-259), the 
Secretary of the Air Force shall transfer $5,000,000 of the funds 
provided for "Operation and Maintenance, Air Force" to the Sec-
retary of the Interior for maintenance, protection, or preservation 
of the land and interests in land described in section 3 of the 
Minuteman Missile National Historic Site Establishment Act of 
1999 (Public Law 106-115; 113 Stat. 1540): Provided, That the 
transfer authority provided in this section is in addition to any 
other transfer authority available to the Department of Defense 
for fiscal year 2001. 
SEC. 312. (a) The Secretary of the Air Force is authorized 
to convey to the Roosevelt General Hospital, Portales, New Mexico, 
without consideration, and without regard to title II of the Federal 
Property and Administrative Services Act of 1949, all right, title, 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-183 
and interest of the United States in any personal property of the 
Air Force that the Secretary determines— 
(1) is appropriate for use by the Roosevelt General Hospital 
in the operation of that hospital; and 
(2) is excess to the needs of the Air Force. 
(b) The Secretary may require any additional terms and condi-
tions in connection with any conveyance under subsection (a) that 
the Secretary considers appropriate to protect the interests of the 
United States. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 313. In addition to amounts appropriated for the Depart-
ment of Defense in the Department of Defense Appropriations Act, 
2001 (Public Law 106-259), $100,000,000 is hereby appropriated 
for "Overseas Contingency Operations Transfer Fund" and shall 
remain available until expended: Provided, That the Secretary of 
Defense may trsinsfer the funds provided herein only to appropria-
tions for military personnel; operation and maintenance; procure-
ment; research, development, test and evaluation; and working 
capital funds: Provided further. That the funds transferred shall 
be merged with and shall be available for the same purposes and 
for the same time period, as the appropriation to which transferred: 
Provided further, That upon a determination that all or part of 
the funds transferred from this appropriation are not necessary 
for the purposes provided herein, such amounts may be transferred 
back to this appropriation: Provided further. That the transfer 
authority provided in this section is in addition to any other transfer 
authority contained elsewhere in this Act: Provided further. That 
funds appropriated by this section, or made available by the transfer 
of funds in this section, for intelligence activities are deemed to 
be specifically authorized by the Congress for the purposes of section 
504 of the National Security Act of 1947 (50 U.S.C. 414) during 
fiscal year 2001: Provided further. That the entire amount made 
available in this section is designated by the Congress as an emer-
gency requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended. 
SEC. 314. Of the total amount appropriated by title IV of 
the Department of Defense Appropriations Act, 2001 (Public Law 
106-259) under the heading "Research, Development, Test and 
Evaluation, Navy", up to $3,000,000 shall be made available to 
the Marine Corps to pursue research in Nanotechnology for Con-
sequence Management. 
SEC. 315. Of the total amount appropriated by title IV of 
the Department of Defense Appropriations Act, 2001 (Public Law 
106-259) under the heading "Research, Development, Test and 
Evaluation, Army", not less than $1,500,000 shall be made available 
only for installation of the Medical Area Network for Virtual Tech-
nologies at Fort Detrick and Walter Reed Army Hospital, and 
not less than $1,000,000 shall be made available only to conduct 
a pilot study to determine the feasibility of establishing a Depart-
ment of Defense Information Analysis Center for telemedicine. 
SEC. 316. The Secretary of the Navy shall acquire 50 acres 
of real property located on Reed Island, along the south shore 
of the St. John's River across from Blount Island Command, 
Jacksonville, Florida. The Secretary of the Navy shall pay not 
more than the fair market value of the property, to be determined 
pursuant to an appraisal acceptable to the Secretary of the Navy; 
114 STAT. 2763A-184 
PUBLIC LAW 106-554—APPENDIX D 
but in no case shall the price exceed $4,200,000: Provided, That 
the exact acreage and legal description of the real property to 
be acquired pursuant to this section shall be determined by a 
survey satisfactory to the Secretary of the Navy: Provided further. 
That the Secretary of the Navy may require such additional terms 
and conditions in connection with the land acquisition pursuant 
to this section as the Secretary considers appropriate to protect 
the interests of the United States. 
SEC. 317. Of the total amount appropriated by title IV of 
the Department of Defense Appropriations Act, 2001 (Public Law 
106-259) under the heading "Research, Development, Test, and 
Evaluation, Navy" the Secretary of the Navy may establish Marine 
Fire Training Centers at the Marine and Environmental Research 
and Training Station and Barbers Point by grants or contracts. 
SEC. 318. Notwithstanding any other provision of law, and 
notwithstanding the provisions in section 7306 of title 10, United 
States Code, of the funds provided in the Department of Defense 
Appropriations Act, 2001 (Public Law 106-259) for "Operation and 
Maintenance, Navy", $750,000 shall be available only for repair 
of ex-Turner Joy. 
SEC. 319. In addition to amounts appropriated or otherwise 
made available for the Department of Defense elsewhere in this 
Act or in the Department of Defense Appropriations Act, 2001 
(Public Law 106-259), $2,000,000 is hereby appropriated under 
the heading "Operation and Maintenance, Defense-Wide", to remain 
available for obligation until September 30, 2001, only for the 
Defense Imagery and Mapping Agency Program. 
SEC. 320. None of the funds available in the Department of 
Defense Appropriations Act, 2001 (Public Law 106-259) shall be 
used to consolidate or incorporate Air Force radar operations 
maintenance and support programs or contracts into an Air Force 
SENSOR or a similar acquisition program. 
SEC. 321. In addition to amounts appropriated elsewhere in 
this Act, or in the Department of Defense Appropriations Act, 
2001 (Public Law 106-259), $1,000,000 is hereby appropriated to 
"Research, Development, Test and Evaluation, Air Force", only to 
develop rapid diagnostic and fingerprinting techniques along with 
molecular monitoring systems for the detection of nosocomial infec-
tions. 
SEC. 322. Of the total amount appropriated by title IV of 
the Department of Defense Appropriations Act, 2001 (Public Law 
106-259) under the heading "Research, Development, Test and 
Evaluation, Navy", $1,500,000 shall be made available by grant 
or contract only to the California Central Coast Research Partner-
ship (C3RP). 
SEC. 323. FORT IRWIN NATIONAL TRAINING CENTER EXPANSION. 
(a) FINDINGS.—Congress makes the following findings: 
(1) The National Training Center at Fort Irwin, California, 
is the only instrumented training area in the world suitable 
for live fire training of heavy brigade-sized military forces and 
thus provides the Army with essential training opportunities 
necessary to maintain and improve military readiness and pro-
mote national security. 
(2) The National Training Center must be expanded to 
meet the critical need of the Army for additional training 
lands suitable for the maneuver of large numbers of military 
personnel and equipment, which is necessitated by advances 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-185 
in equipment, by doctrinal changes, and by Force XXI doctrinal 
experimentation requirements. 
(3) The lands being considered for expansion of the National 
Training Center are home to the desert tortoise and other 
species that are protected under the Endangered Species Act 
of 1973, and the Secretary of Defense and the Secretary of 
the Interior, in developing a plan for expansion of the National 
Training Center, must provide for such expansion in a manner 
that complies with the Endangered Species Act of 1973, the 
National Environmental 
Policy Act of 1969, and other 
applicable laws. 
(4) In order for the expansion of the National Training 
Center to be implemented on an expedited basis, the Secretaries 
should proceed without delay to define with specificity the 
key elements of the expansion plan, including obtaining early 
input regarding national security requirements, Endangered 
Species Act of 1973 compliance and mitigation, and National 
Environmental Policy Act of 1969 compliance. 
(b) PURPOSE.—The purpose of this section is to expedite the 
expansion of the National Training Center at Fort Irwin, California, 
in a manner that is fully compliant with environmental laws. 
(c) PREPARATION OF PROPOSED EXPANSION PLAN.— 
(1) PREPARATION REQUIRED.—The Secretary of the Army 
and the Secretary of the Interior (in this section referred to 
as the "Secretaries") shall jointly prepare a proposed plan for 
the expansion of the National Training Center at Fort Irwin, 
California. 
(2) SUBMISSION AND AVAILABILITY.—The plan required by 
paragraph (1) (in this section referred to as the "proposed 
expansion plan") shall be completed not later than 120 days 
after the date of the enactment of this Act. When completed, 
the Secretaries shall make the proposed expansion plan avail-
able to the public and shall publish in the Federal Register 
a "notice of availability" concerning the proposed expansion 
plan. 
(d) KEY ELEMENTS OF PROPOSED EXPANSION PLAN.— 
(1) JOINT REPORT.—Not later than 45 days after the date 
of the enactment of this Act, the Secretaries shall submit to 
Congress a joint report that identifies the key elements of 
the proposed expansion plan. 
(2) LANDS WITHDRAWAL AND RESERVATION.—The proposed 
expansion plan shall include the withdrawal and reservation 
of £in appropriate amount of public lands for— 
(A) the conduct of combined arms military training 
at the National Training Center; 
(B) the development and testing of military equipment 
at the National Training Center; 
(C) other defense-related purposes; and 
(D) conservation and research purposes. 
(3) CONSERVATION MEASURES.—The proposed expansion 
plan shall also include a general description of conservation 
measures, anticipated to cost approximately $75,000,000, that 
may be necessary and appropriate to protect and promote the 
conservation of the desert tortoise and other endangered or 
threatened species and their critical habitats in designated 
wildlife management areas in the West Mojave Desert. The 
conservation measures may include— 
79-194 O - 00 - 8 : QL 3 Part 5 
114 STAT. 2763A-186 
PUBLIC LAW 106-554—APPENDIX D 
(A) the establishment of one or more research natural 
areas, which may include lands both within and outside 
the National Training Center; 
(B) the acquisition of private and State lands within 
the wildlife management areas in the West Mojave Desert; 
(C) the construction of barriers, fences, and other struc-
tures that would promote the conservation of endangered 
or threatened species and their critical habitats; 
(D) the funding of research studies; and 
(E) other conservation measures. 
(d) PRELIMINARY REVIEW OF EXPANSION PLAN.— 
(1) REVIEW REQUIRED.—Not later than 90 days after the 
date of the enactment of this Act, the Director of the United 
States Fish and Wildlife Service shall submit to the Secretaries 
a preliminary review of the proposed expansion plan (as devel-
oped as of that date). In the preliminary review, the Director 
shall identify, with as much specificity as possible, an approach 
for implementing the proposed expansion plan consistent with 
the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.). 
(2) RELATION TO FORMAL REVIEW.—The preliminary review 
under paragraph (1) shall not constitute a formal consultation 
under section 7 of the Endangered Species Act of 1973 (16 
U.S.C. 1536), but shall be used to assist the Secretaries in 
more precisely defining the nature and scope of an expansion 
plan for the National Training Center that is likely to satisfy 
requirements of the Endangered Species Act of 1973 and to 
expedite the formal consultation process under section 7 of 
such Act. 
(3) CONSIDERATION OF PRELIMINARY REVIEW.—In preparing 
the proposed expansion plan, the Secretaries shall take into 
account the content of the preliminary review by the Director 
of the United States Fish and Wildlife Service under paragraph 
(1). 
(e) DRAFT LEGISLATION.—The Secretaries shall submit to Con-
gress with the proposed expansion plan a draft of proposed legisla-
tion providing for the withdrawal and reservation of public lands 
for the expansion of the National Training Center. It is the sense 
of the Congress that the proposed legislation should contain a 
provision that, if enacted, would prohibit ground-disturbing military 
use of the land to be withdrawn and reserved by the legislation 
until the Secretaries have certified that there has been full compli-
ance with the appropriate provisions of the legislation, the Endan-
gered Species Act of 1973, the National Environmental Policy Act 
of 1969, and other applicable laws. 
(f) CONSULTATION UNDER ENDANGERED SPECIES ACT OF 1973.— 
The Secretaries shall initiate the formal consultation required under 
section 7 of the Endangered Species Act of 1973 (16 U.S.C. 1536) 
with respect to expansion of the National Training Center as soon 
as practicable and shall complete such consultation not later than 
2 years after the date of the enactment of this Act. 
(g) ENVIRONMENTAL REVIEW.—Not later than 6 months follow-
ing completion of the formal consultation required under section 
7 of the Endangered Species Act of 1973 with respect to expansion 
of the National Training Center, the Secretaries shall complete 
any analysis required under the National Environmental Policy 
Act of 1969 with respect to the proposed expansion of the National 
Training Center. The analysis shall be coordinated, to the extent 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-187 
practicable and appropriate, with the review of the West Mojave 
Coordinated Management Plan that, as of the date of the enactment 
of this Act, is being undertaken by the Bureau of Land Management, 
(h) FUNDING.— 
(1) IMPLEMENTATION OF CONSERVATION MEASURES.—There 
are authorized to be appropriated $75,000,000 to the Secretary 
of the Army for the implementation of conservation measures 
necessary for the final expansion plan for the National Training 
Center to comply with the Endangered Species Act of 1973. 
(2) 
IMPLEMENTATION 
OF 
SECTION.—The 
amounts 
of 
$2,500,000 for "Operation and Maintenance, Army" and 
$2,500,000 for "Management of Lands and Resources, Bureau 
of Land Management" are hereby appropriated to the Secretary 
of the Army and the Secretary of the Interior, respectively, 
only to undertake and complete on an expedited basis the 
activities specified in this section. 
CHAPTER 4 
DISTRICT OF COLUMBIA FEDERAL FUNDS 
FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA COURTS 
For an additional amount for the District of Columbia courts 
for capital repairs necessitated by the recent fire damage to the 
courthouse facilities, $350,000, to remain available until September 
30, 2002, and for an additional amount for such repairs for the 
Superior Court of the District of Columbia, $50,000: Provided, That 
after providing notice to the Committees on Appropriations of the 
Senate and House of Representatives, the District of Columbia 
courts may reallocate not more than $1,000,000 of the funds pro-
vided under this heading under the District of Columbia Appropria-
tions Act, 2001, among the items and entities funded under such 
heading for the costs of such repairs. 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 401. (a) Section 106(b) of the District of Columbia Public 
Works Act of 1954 (sec. 43-1552(b), D.C. Code), as amended by 
section 133 of the District of Columbia Appropriations Act, 1990, 
is amended— 
(1) in the third sentence of paragraph (1), by striking 
"United States Treasury and" and all that follows through 
"by the"; and 
(2) by adding at the end the following new paragraph: 
"(5) Not later than the 15th day of the month following each 
quarter (beginning with the first quarter of fiscal year 2001), the 
inspector general of each Federal department, establishment, or 
agency receiving water services from the District of Columbia shall 
submit a report to the Committees on Appropriations of the House 
of Representatives and Senate analyzing the promptness of payment 
with respect to the services furnished to such department, establish-
ment, or agency.". 
(b) Section 212(b) of the District of Columbia PubUc Works 
Act of 1954 (sec. 43-1612(b), D.C. Code), as amended by section 
133 of the District of Columbia Appropriations Act, 1990, is 
amended— 
114 STAT. 2763A-188 
PUBLIC LAW 106-554—APPENDIX D 
(1) in the third sentence of paragraph (1), by striking 
"United States Treasury and" and all that follows through 
"by the"; and 
(2) by adding at the end the following new paragraph: 
"(5) Not later than the 15th day of the month following each 
quarter (beginning with the first quarter of fiscal year 2001), the 
inspector general of each Federal department, establishment, or 
agency receiving sanitary sewer services from the District of Colum-
bia shall submit a report to the Committees on Appropriations 
of the House of Representatives and Senate analyzing the prompt-
ness of payment with respect to the services furnished to such 
department, establishment, or agency.". 
(c) The amendments made by this section shall take effect 
as if included in the enactment of section 133 of the District of 
Columbia Appropriations Act, 1990. 
SEC. 402. (a) The Act entitled "An Act donating certain Lots 
in the City of Washington for Schools for Colored Children in 
the District of Columbia", approved July 28, 1866 (14 Stat. 343), 
is amended by striking the second sentence. 
(b) Section 319 of the Revised Statutes of the United States 
relating to the District of Columbia and Post Roads (sec. 31-206, 
D.C. Code) is repealed. 
SEC. 403. RESTRICTIONS ON USE OF ANNUAL UNOBLIGATED BAL-
ANCE IN D.C. 
CRIME VICTIMS COMPENSATION FUND, (a) IN GEN-
ERAL.—Section 16(d) of the Victims of Violent Crime Compensation 
Act of 1996 (sec. 3-435(d), D.C. Code), as added by section 160(d) 
of the District of Columbia Appropriations Act, 2000, is amended 
to read as follows: 
"(d) Any unobligated balance existing in the Fund in excess 
of $250,000 as of the end of each fiscal year (beginning with fiscal 
year 2000) may be used only in accordance with a plan developed 
by the District of Columbia and approved by the Committees on 
Appropriations of the Senate and House of Representatives, the 
Committee on Government Reform of the House of Representatives, 
and the Committee on Governmental Affairs of the Senate, and 
not less than 80 percent of such balance shall be used for direct 
compensation payments to crime victims through the Fund under 
this section and in accordance with this Act.". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall take effect September 30, 2000. 
SEC. 404. (a) Notwithstanding any provision of the District 
of Columbia Appropriations Act, 2001, the District of Columbia 
may fund the programs identified under the heading "Reserve" 
in H.R. 4942, One Hundred Sixth Congress, as introduced, subject 
to the conditions described under such heading and upon certifi-
cation by the District of Columbia Financial Responsibility and 
Management Assistance Authority to the Committees on Appropria-
tions of the Senate and House of Representatives that the Chief 
Financial Officer of the District of Columbia, the Mayor of the 
District of Columbia, and the Council of the District of Columbia 
have identified and implemented such spending reductions as may 
be necessary to ensure that the District of Columbia will not have 
a budget deficit for fiscal year 2001. 
(b)(1) Notwithstanding any provision of the District of Columbia 
Appropriations Act, 2001, the use by the District of the funds 
described in paragraph (2) for Pay-As-You-Go Capital Funds shall 
be optional. 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-189 
(2) The funds described in this paragraph are funds set aside 
for the reserve established by section 202(j) of the District of 
Columbia Financial Responsibility and Management Assistance Act 
of 1995 (as amended by section 148 of the District of Columbia 
Appropriations Act, 2000) which are not used for purposes of any 
reserve funds established under the District of Columbia Appropria-
tions Act, 2001, or any amendments made by such Act. 
(c)(1) The Mayor of the District of Columbia shall deposit the 
annual interest savings resulting from debt reductions using the 
proceeds of the tobacco securitization program into the emergency 
reserve fund established under section 450A of the District of 
Columbia Home Rule Act (as added by section 159 of the District 
of Columbia Appropriations Act, 2001), 
(2) This subsection shall apply with respect to fiscal year 2001 
and each succeeding fiscal year until the requirements of section 
450A of the District of Columbia Home Rule Act have been met. 
SEC. 405. (a) Notwithstanding any provision of the District 
of Columbia Appropriations Act, 2001, quarterly disbursements 
shall be calculated and paid to District of Columbia public charter 
schools during fiscal year 2001 in accordance with section 107a(b) 
of the Uniform Per Student Funding Formula for Public Schools 
and Public Charter Schools and Tax Conformity 
Clarification 
Amendment Act of 1998 (sec. 31-2906.1(b), D.C. Code), as amended 
by the Enrollment Integrity Act. 
SEC. 406. (a) The provisions of H.R. 5547 (as enacted into 
law by H.R. 4942 of the 106th Congress) are repealed and shall 
be deemed for all purposes (including section 1(b) of H.R. 4942) 
to have never been enacted. 
(b) The repeal made by this section shall take effect as if 
included in H.R. 4942 of the 106th Congress on the date of its 
enactment. 
CHAPTER 5 
ENERGY 
AND 
WATER 
DEVELOPMENT 
DEPARTMENT 
OF 
DEFENSE—CIVIL 
DEPARTMENT 
OF 
THE 
ARMY 
CORPS OF ENGINEERS—CIVIL 
GENERAL INVESTIGATIONS 
For 
an 
additional 
amount 
for "General 
Investigations", 
$900,000, to remain available until expended: Provided, 
That 
$100,000 shall be available for a reconnaissance study of shore 
protection needs at North Topsail Beach, North Carolina; $100,000 
shall be available for a reconnaissance study for the Passiac County, 
New Jersey, water infrastructure project; $100,000 shall be avail-
able for a reconnaissance study of flooding, drainage and other 
related problems in the Cayuga Creek Watershed, New York; and 
$600,000 shall be available for a cost-shared feasibility study of 
the restoration of the lower St. Anthony's Falls natural rapids 
in Minnesota. 
114 STAT. 2763A-190 
PUBLIC LAW 106-554—APPENDIX D 
CONSTRUCTION, GENERAL 
For 
an 
additional 
amount 
for 
"Construction, 
General", 
$2,750,000, to remain available until expended: Provided, That 
$75,000 shall be available for planning and design of a project 
to provide for floodplain evacuation in the watershed of Pond Creek, 
Kentucky; $100,000 shall be available for design of recreation and 
access features at the Louisville Waterfront Park in Kentucky; 
$500,000 shall be available for a Limited Reevaluation Report for 
the Central Boca Raton segment of the Palm Beach County, Florida, 
shore protection project; and $75,000 shall be available to conduct 
research on the eradication of Eurasian water milfoil at Houghton 
Lake, Michigan: Provided further, That the Secretary of the Army, 
acting through the Chief of Engineers, is authorized and directed 
to use $2,000,000 of the funds appropriated herein to initiate design 
and construction of the Hawaii Water Management Project, includ-
ing Waiahole Ditch on Oahu, Kau Ditch on Maui, Pioneer Mill 
Ditch on Hawaii, and the complex system on the west side of 
Kauai: Provided further. That the Secretary of the Army may use 
up to $5,000,000 of previously appropriated funds to carry out 
the Abandoned and Inactive Noncoal Mine Restoration program 
authorized by section 560 of Public Law 106-53. 
FLOOD CONTROL, MISSISSIPPI RIVER AND TRIBUTARIES, ARKANSAS, IL-
LINOIS, KENTUCKY, LOUISIANA, MISSISSIPPI, MISSOURI, AND TEN-
NESSEE 
For an additional amount for "Flood Control, Mississippi River 
and Tributaries, Arkansas, Illinois, Kentucky, Louisiana, Mis-
sissippi, Missouri, and Tennessee", $3,500,000, to remain available 
until expended, for prosecuting work of repair, restoration or 
maintenance of the Mississippi River levees, and for the correction 
of deficiencies in the mainline Mississippi River levees. 
DEPARTMENT OF THE INTERIOR 
BUREAU OF RECLAMATION 
WATER AND RELATED RESOURCES 
For an additional amount for "Water and Related Resources", 
$2,000,000, to remain available until expended, for construction 
of the Mid-Dakota Rural Water System, in addition to amounts 
made available under the Energy and Water Appropriations 
Development Act, 2001. 
DEPARTMENT 
OF 
ENERGY 
ENERGY 
PROGRAMS 
ENERGY SUPPLY 
For an additional amount for "Energy Supply, $800,000, to 
remain available until expended, for the Prime, LLC, of central 
South Dakota, for final engineering and project development of 
the integrated ethanol complex, including an ethanol unit, waste 
treatment system, and enclosed cattle feed lot. 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-191 
SCIENCE 
^ 
' 
For an additional amount for "Science", $1,000,000, to remain 
available until expended, for high temperature superconducting 
research and development at Boston College. 
CHAPTER 6 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 601. Of the funds appropriated under the heading Depart-
ment of State, International Narcotics Control and Law Enforce-
ment, in the Foreign Operations, Export Financing, and Related 
Programs Appropriations Act, 2001, not less than $1,350,000 shall 
be available only for the Protection Project to continue its study 
of international trafficking, prostitution, slavery, debt bondage, and 
other abuses of women and children. 
SEC. 602. EMBASSY COMPENSATION AUTHORITY. Funds made 
available under the heading "Other Bilateral Economic Assistance, 
Economic Support Fund" included in the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 2001 (Public 
Law 106-429) may be made available, notwithstanding any other 
provision of law, to provide pa5anent to the Government of the 
People's Republic of China for property loss and damage arising 
out of the May 7, 1999 incident in Belgrade, Federal Republic 
of Yugoslavia. 
CHAPTER 7 
DEPARTMENT OF THE INTERIOR 
BUREAU OF LAND MANAGEMENT 
LAND ACQUISITION 
For an additional amount for "Land Acquisition", $5,000,000, 
to be derived from the Land and Water Conservation Fund and 
to remain available until expended, to carry out the provisions 
of title VI of the Steens Mountain Cooperative Management and 
Protection Act (Public Law 106-399): Provided, That sums nec-
essary to complete the individual land exchanges identified under 
title VI shall be provided within 30 days of each land exchange. 
UNITED STATES FISH AND WILDLIFE SERVICE 
RESOURCE MANAGEMENT 
For an additional amount for "Resource Management", $500,000 
for a grant to the Center for Reproductive Biology at Washington 
State University. 
MULTINATIONAL SPECIES CONSERVATION FUND 
For an additional amount for the "Multinational Species Con-
servation Fund", $750,000, to remain available until expended, 
for Great Ape conservation activities authorized by law. 
114 STAT. 2763A-192 
PUBLIC LAW 106-554—APPENDIX D 
NATIONAL PARK SERVICE 
OPERATION OF THE NATIONAL PARK SYSTEM 
For an additional amount for "Operation of the National Park 
System", $100,000 for completion of studies related to the Arlington 
Boathouse in Virginia. 
NATIONAL RECREATION AND PRESERVATION 
For an additional amount for "National Recreation 
and 
Preservation", $1,600,000, to remain available until expended, of 
which $500,000 is for the National Constitution Center in Philadel-
phia, Pennsylvania and $1,100,000 is for a grant to the Historic 
New Bridge Landing Park Commission. 
HISTORIC PRESERVATION FUND 
For an additional amount for the "Historic Preservation Fund", 
$100,000 for a grant to the Massillon Heritage Foundation, Inc. 
in Massillon, Ohio. 
CONSTRUCTION 
For an additional amount for "Construction", $3,500,000, to 
remain available until expended, of which $1,500,000 is for the 
Stones River National Battlefield and $2,000,000 is for the Millen-
nium Cultural Cooperative Park. 
DEPARTMENT OF ENERGY 
ENERGY CONSERVATION 
For an additional amount for "Energy Conservation", $300,000, 
to remain available until expended, for a grant to the Oak Ridge 
National Laboratory/Nevada Test Site Development Corporation 
for the development of: (1) cooling, refrigeration, and thermal energy 
management equipment capable of using natural gas or hydrogen 
fuels; and (2) improvement of the reliability of heat-activated cool-
ing, refrigeration, and thermal energy management equipment used 
in combined heating, cooling, and power applications. 
RELATED AGENCY 
WooDROw WILSON INTERNATIONAL CENTER FOR SCHOLARS 
PAYMENT TO ENDOWMENT FUND 
For payment to the endowment fund of the Woodrow Wilson 
International Center for Scholars $5,000,000: Provided, That such 
funds may be invested in investments approved by the Board of 
Trustees of the Woodrow Wilson International Center for Scholars 
and the income from such investments may be used to support 
the programs of the Center that the Board of Trustees and the 
Director of the Center determine appropriate. 
GENERAL PROVISION—THIS CHAPTER 
SEC. 701. In addition to amounts appropriated in Public Law 
106-291 to the Indian Health Service under the heading "Indian 
PUBLIC LAW 106-554^APPENDIX D 
114 STAT. 2763A-193 
Health Services", $30,000,000, to remain available until expended, 
is appropriated as follows: 
(1) $15,000,000 shall be provided to the Alaska Federation 
of Natives as a direct lump sum payment within 30 days 
of enactment of this Act for its Alaska Native Sobriety and 
Alcohol Control Program: Provided, That the President of the 
Alaska Federation of Natives shall make grants to each Alaska 
Native regional non-profit corporation (as listed in section 
103(a)(2) of Public Law 104-193 (110 Stat. 2159)) in which 
there are villages, including established villages and organized 
cities under State law, that have voted to ban the sale, importa-
tion, or possession of alcohol pursuant to local option State 
law: Provided further, That such grants shall be used to: (1) 
employ Village Public Safety Officers (hereinafter referred to 
as "VPSO's") under such terms and conditions that encourage 
retention of such VPSO's and that are consistent with agree-
ments with the State of Alaska for the provision of such VPSO 
services; (2) acquisition of law enforcement equipment or serv-
ices; or (3) develop and implement restorative justice programs 
recognized under State sentencing law as a community-based 
complement or alternative to incarceration or other penalty: 
Provided further. That funds may also be used for activities 
and programs to further the sobriety movement including edu-
cation and treatment. The President of the Alaska Federation 
of Natives shall submit a report on its activities and those 
of its grantees including administrative costs and persons 
served by December 31, 2001; and 
(2) $15,000,000 shall be provided to the Indian Health 
Service for drug and alcohol prevention and treatment services 
for non-Alaska tribes. 
CHAPTERS 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 801. There are appropriated to the Health Resources and 
Services Administration in the Department of Health and Human 
Services, for the construction of the Biotechnology Science Center 
at 
the 
Marshall 
University 
in Huntington, 
West 
Virginia, 
$25,000,000, to remain available until expended. 
SEC. 802. There are appropriated to the Health Resources and 
Services Administration in the Department of Health and Human 
Services, for the construction of the Christian Nurses Hospice in 
Brentwood, New York, $400,000. 
SEC. 803. There are appropriated to the Institute of Museum 
and Library Services, for expansion of the marine biology program 
at the Long Island Maritime Museum, $250,000. 
114 STAT. 2763A-194 
PUBLIC LAW 106-554—APPENDIX D 
CHAPTER 9 
LEGISLATIVE BRANCH 
CONGRESSIONAL OPERATIONS 
HOUSE OF REPRESENTATIVES 
PAYMENTS TO WIDOWS AND HEIRS OF DECREASED MEMBERS OF 
CONGRESS 
For payment to Laura Y. Bateman, widow of Herbert H. 
Bateman, late a Representative from the State of Virginia, $141,300. 
For payment to Susan L. Vento, widow of Bruce F. Vento, 
late a Representative from the State of Minnesota, $141,300. 
For payment to Betty Lee Dixon, widow of Julian C. Dixon, 
late a Representative from the State of California, $141,300. 
ARCHITECT OF THE CAPITOL 
CAPITOL BUILDINGS AND GROUNDS 
CAPITOL BUILDINGS 
SALARIES AND EXPENSES 
For an additional amount for "CAPITOL 
BUILDINGS AND 
GROUNDS—CAPITOL BUILDINGS—SALARIES AND EXPENSES" for nec-
essary expenses for construction of emergency egress from the 
fourth floor of the Capitol Building, $1,033,000, to remain available 
until expended: Provided, That the entire amount is designated 
by the Congress as an emergency requirement pursuant to section 
251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control 
Act of 1985, as amended. 
LIBRARY OF CONGRESS 
SALARIES AND EXPENSES 
For the Library of Congress, $25,000,000, to remain available 
until expended, for necessary salaries and expenses of the National 
Digital Information Infrastructure and Preservation Program; and 
an additional $75,000,000, to remain available until expended, for 
such purposes: Provided, 
That the portion of such additional 
$75,000,000, which may be expended shall not exceed an amount 
equal to the matching contributions (including contributions other 
than money) for such purposes that: (1) are received by the Librar-
ian of Congress for the program from non-Federal sources; and 
(2) are received before March 31, 2003: Provided further. 
That 
such program shall be carried out in accordance with a plan or 
plans approved by the Committee on House Administration of the 
House of Representatives, the Committee on Rules and Administra-
tion of the Senate, the Committee on Appropriations of the House 
of Representatives, and the Committee on Appropriations of the 
Senate: Provided further. That of the total amount appropriated, 
$5,000,000 may be expended before the approval of a plan to develop 
such a plan, and to collect or preserve essential digital information 
which otherwise would be uncollectible: Provided further. That the 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-195 
balance in excess of such $5,000,000 shall not be expended without 
approval in advance by the Committee on Appropriations of the 
House of Representatives and the Committee on Appropriations 
of the Senate: Provided further, That the plan under this heading 
shall be developed by the Librarian of Congress jointly with entities 
of the Federal Government with expertise in telecommunications 
technology and electronic commerce policy (including the Secretary 
of Commerce and the Director of the White House Office of Science 
and Technology Policy) and the National Archives and Records 
Administration, and with the participation of representatives of 
other Federal, research, and private libraries and institutions with 
expertise in the collection and maintenance of archives of digital 
materials (including the National Library of Medicine, the National 
Agricultural Library, the National Institute of Standards and Tech-
nology, the Research Libraries Group, the Online Computer Library 
Center, and the Council on Library and Information Resources) 
and representatives of private business organizations which are 
involved in efforts to preserve, collect, and disseminate information 
in digital formats (including the Open e-Book Forum): Provided 
further. That notwithstanding any other provision of law, effective 
with the One Hundred Seventh Congress and each succeeding Con-
gress the chair of the Subcommittee on the Legislative Branch 
of the Committee on Appropriations of the House of Representatives 
shall serve as a member of the Joint Committee on the Library 
with respect to the Library's financial management, organization, 
budget development and implementation, and program development 
and administration, as well as any other element of the mission 
of the Library of Congress which is subject to the requirements 
of Federal law. 
GENERAL PROVISIONS—^THIS CHAPTER 
SEC. 
901. 
RETIREMENT 
CREDIT FOR 
CERTAIN 
LEGISLATIVE 
BRANCH EMPLOYEES, (a) FORMER EMPLOYEES OF CONGRESSIONAL 
CAMPAIGN COMMITTEES.— 
(1) CSRS.—Section 8332(m) of title 5, United States Code, 
as amended by section 312 of the Legislative Branch Appropria-
tions Act, 2000, is amended— 
(A) by redesignating paragraphs (2) and (3) as para-
graphs (3) and (4), respectively; and 
(B) by inserting after paragraph (1) the following new 
paragraph: 
"(2) Upon application to the Office of Personnel Management, 
any individual who was an employee on the date of enactment 
of this paragraph, and who has on such date or thereafter acquires 
5 years or more of creditable civilian service under this section 
(exclusive of service for which credit is allowed under this sub-
section) shall be allowed credit (as service as a congressional 
employee) for service before December 31, 1990, while employed 
by the Democratic Senatorial Campaign Committee, the Republican 
Senatorial Campaign Committee, the Democratic National Congres-
sional Committee, or the Republican National 
Congressional 
Committee, if— 
"(A) such employee has at least 4 years and 6 months 
of service on such committees as of December 31, 1990; and 
"(B) such employee makes a deposit to the Fund in an 
amount equal to the amount which would be required under 
114 STAT. 2763A-196 
PUBLIC LAW 106-554—APPENDIX D 
section 8334(c) if such service were service as a congressional 
employee.". 
(2) FERS.—Section 8411 of title 5, United States Code, 
is amended by adding at the end the following new subsection: 
"(i)(l) Upon application to the Office of Personnel Management, 
any individual who was an employee on the date of enactment 
of this paragraph, and who has on such date or thereafter acquired 
5 years or more of creditable civilian service under this section 
(exclusive of service for which credit is allowed under this sub-
section) shall be allowed credit (as service as a congressional 
employee) for service before December 31, 1990, while employed 
by the Democratic Senatorial Campaign Committee, the Republican 
Senatorial Campaign Committee, the Democratic National Congres-
sional Committee, or the Republican National 
Congressional 
Committee, if— 
"(A) such employee has at least 4 years and 6 months 
of service on such committees as of December 31, 1990; and 
"(B) such employee deposits to the Fund an amount equal 
to 1.3 percent of the base pay for such service, with interest. 
"(2) The Office shall accept the certification of the President 
of the Senate (or the President's designee) or the Speaker of the 
House of Representatives (or the SpeaJ^er's designee), as the case 
may be, concerning the service of, and the amount of compensation 
received by, an employee with respect to whom credit is to be 
sought under this subsection. 
"(3) An individual shall not be granted credit for such service 
under this subsection if eligible for credit under section 8332(m) 
for such service.". 
(b) FORMER EMPLOYEES OF LEGISLATIVE SERVICE ORGANIZA-
TIONS.— 
(1) 
SERVICE 
OF 
EMPLOYEES 
OF 
LEGISLATIVE SERVICE 
ORGANIZATIONS.— 
(A) IN GENERAL.—Subject to succeeding provisions of 
this paragraph, upon application to the Office of Personnel 
Management in such form and manner as the Office shall 
prescribe, any individual who performed service as an 
employee of a legislative service organization of the House 
of Representatives (as defined and authorized in the One 
Hundred Third Congress) and whose pay was paid in whole 
or in part by a source other than the Clerk Hire account 
of a Member of the House of Representatives (other than 
an individual described in paragraph (6)) shall be entitled— 
(i) to receive credit under the provisions of sub-
chapter III of chapter 83 or chapter 84 of title 5, 
United States Code (whichever would be appropriate), 
as congressional employee service, for all such service; 
and 
(ii) to have all pay for such service which was 
so paid by a source other than the Clerk Hire account 
of a Member included (in addition to any amounts 
otherwise included in basic pay) for purposes of 
computing an annuity payable out of the Civil Service 
Retirement and Disability Fund. 
(B) DEPOSIT REQUIREMENT.—In order to be eligible for 
the benefits described in subparagraph (A), an individual 
shall be required to pay into the Civil Service Retirement 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-197 
and Disability Fund an amount equal to the difference 
between— 
(i) the employee contributions that were actually 
made to such Fund under applicable provisions of law 
with respect to the service described in subparagraph 
(A); and 
(ii) the employee contributions that would have 
been required with respect to such service if the 
amounts described in subparagraph (A)(ii) had also 
been treated as basic pay. 
The amount required under this subparagraph shall 
include interest, which shall be computed under section 
8334(e) of title 5, United States Code. 
(C) CERTAIN OFFSETS REQUIRED IN ORDER TO PREVENT 
DOUBLE CONTRIBUTIONS AND BENEFITS.—In the case of any 
period of service as an employee of a legislative service 
organization which constituted emplo5anent for purposes 
of title II of the Social Security Act— 
(i) any pay for such service (as described in 
subparagraph (A)(ii)) with respect to which the deposit 
under subparagraph (B) would otherwise be computed 
by applying the first sentence of section 8334(a)(1) 
of title 5, United States Code, shall instead be com-
puted in a manner based on section 8334(k) of such 
title; and 
(ii) any retirement benefits under subchapter III 
of chapter 83 of title 5, United States Code, shall 
be subject to offset (to reflect that portion of benefits 
under title II of the Social Security Act attributable 
to pay referred to in subparagraph (A)) similar to that 
provided for under section 8349 of such title. 
(2) SURVIVOR ANNUITANTS.—For purposes of survivor annu-
ities, an application authorized by this section may, in the 
case of an individual under paragraph (1) who has died, be 
made by a survivor of such individual. 
(3) RECOMPUTATION OF ANNUITIES.—^Any annuity or sur-
vivor annuity payable as of when an individual makes the 
deposit required under paragraph (1) shall be recomputed to 
take into account the crediting of service under such paragraph 
for purposes of amounts accruing for any period beginning 
on or Eifter the date on which the individual makes the deposit. 
(4) CERTIFICATION OF SPEAKER.—The Office of Personnel 
Management shall accept the certification of the Speaker of 
the House of Representatives (or the Speaker's designee) 
concerning the service of, and the amount of compensation 
received by, an employee with respect to whom credit is to 
be sought under this subsection. 
(5) NOTIFICATION AND OTHER DUTIES OF THE OFFICE OF 
PERSONNEL MANAGEMENT.— 
(A) NOTICE.—The Office of Personnel Management 
shall take such action as may be necessary and appropriate 
to inform individuals of any rights they might have as 
a result of enactment of this subsection. 
(B) ASSISTANCE.—^The Office shall, on request, assist 
any individual in obtaining from any department, agency, 
or other instrumentality of the United States any informa-
tion in the possession of such instrumentality which may 
114 STAT. 2763A-198 
PUBLIC LAW 106-554—APPENDIX D 
be necessary to verify the entitlement of such individual 
to have any service credited under this subsection or to 
have an annuity recomputed under paragraph (3). 
(C) INFORMATION.—^Any department, agency, or other 
instrumentality of the United States which possesses any 
information with respect to an individual's performance 
of any service described in paragraph (1) shall, at the 
request of the office, furnish such information to the Office. 
(6) EXCLUSION OF CERTAIN EMPLOYEES.—An individual is 
not eligible for credit under this subsection if the individual 
served as an employee of the House of Representatives for 
an aggregate period of 5 years or longer after the individual's 
final period of service as an employee of a legislative service 
organization of the House of Representatives. 
(7) MEMBER DEFINED.—In this subsection, the term "Mem-
ber of the House of Representatives" includes a Delegate or 
Resident Commissioner to Congress. 
SEC. 902. (a) The Legislative Branch Appropriations Act, 2001 
is amended under the subheading "MISCELLANEOUS ITEMS" under 
the heading "SENATE" under title I by striking "$8,655,000" and 
inserting "$25,155,000". 
(b) The amendment made by subsection (a) shall take effect 
as if included in the enactment of the Legislative Branch Appropria-
tions Act, 2001. 
S E C 903. Beginning on the first day of the 107th Congress, 
the Presiding Officer of the Senate shall apply all of the precedents 
of the Senate under Rule XXVIII in effect at the conclusion of 
the 103d Congress. Further that there is now in effect a Standing 
order of the Senate that the reading of conference reports is no 
longer required, if the said conference report is available in the 
Senate. 
CHAPTER 10 
GENERAL PROVISIONS—THIS CHAPTER 
S E C 1001. In addition to amounts appropriated or otherwise 
made available in the Military Construction Appropriations Act, 
2001, $43,500,000 is hereby appropriated to the Department of 
Defense, to remain available until September 30, 2005, as follows: 
"Military Construction, Army", $27,000,000; 
"MiUtary Construction, Air Force", $12,000,000; 
"Mihtary Construction, Army National Guard", $4,500,000: 
Provided, That notwithstanding any other provision of law, such 
funds may be obligated or expended to carry out planning and 
design, military construction, and family housing projects not other-
wise authorized by law. 
S E C 
1002. 
TRANSFER OF JURISDICTION, MELROSE AIR FORCE 
RANGE, NEW MEXICO, (a) TRANSFER REQUIRED.—(1) The Secretary 
of the Interior shall transfer, without reimbursement, to the 
administrative jurisdiction of the Secretary of the Air Force the 
surface estate in the real property described in paragraph (2), 
which consists of 6,713.90 acres of public domain lands in Roosevelt 
County, New Mexico. 
(2) The transfer of administrative jurisdiction under paragraph 
(1) encompasses the following sections (or portions thereof): 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-199 
(A) In Township 1 North, Range 30 East, New Mexico 
Prime Meridian: 
(i) Sec. 2 (8^2). 
(ii) Sec. 11. All. 
(iii) Sec. 20 (SV2SEy4). 
(iv) Sec. 28. All. 
(B) In Township 1 South, Range 30 East, New Mexico 
Prime Meridian: 
(i) Sec. 2 (Lots 1-12, 8^2). 
(ii) Sec. 3 (Lots 1-12, SVa). 
(iii) Sec. 4 (Lots 1-12, 8^2). 
(iv) Sec. 6 (Lots 1 and 2). 
(v) Sec. 9 (Ny2, Ny2Sy2). 
(vi) Sec. 10 (Ny2, Ny2Sy2). 
(vii) Sec. 11 (Ny2, NV2Sy2). 
(C) In Township 2 North, Range 30 East, New Mexico 
Prime Meridian: 
(i) Sec. 20 (£^28^4). 
(ii) Sec. 21 (SWV^, Wy28Ey4). 
(iii) Sec. 28 WVz'E.Vi, Wy2). 
(iv) Sec. 29 (Ey2Ey2). 
(v)Sec. 32(Ey2Ey2). 
(vi) Sec. 33 (WV2Ey2, NWy4, SV28WV4). 
(b) STATUS OF SURFACE ESTATE.—Upon transfer under sub-
section (a), the surface estate is deemed to be real property subject 
to the Federal Property and Administrative Services Act of 1949 
(40 U.S.C. 471 et seq.). 
(c) WITHDRAWAL OF MINERAL ESTATE.—Subject to valid existing 
rights, the mineral estate of the lands described in subsection 
(a) are withdrawn from all forms of appropriation under the public 
land laws, including the mining laws and the mineral and geo-
thermal leasing laws, but not the Act of July 31, 1947 (commonly 
known as the Materials Act of 1947; 30 U.S.C. 601 et seq.). 
(d) USE OF MINERAL MATERIALS.—^Notwithstanding subsection 
(c) or the Act of July 31, 1947, the Secretary of the Air Force 
may use, without application to the Secretary of the Interior, the 
sand, gravel, or similar mineral material resources on the lands 
described in subsection (a), of the type subject to disposition under 
the Act of July 31, 1947, when the use of such resources is required 
for construction needs on the Melrose Air Force Range, New Mexico. 
SEC. 1003. TRANSFER OF JURISDICTION, YAKIMA TRAINING CEN-
TER, WASHINGTON, (a) TRANSFER REQUIRED.—(1) The Secretary of 
the Interior shall transfer, without reimbursement, to the adminis-
trative jurisdiction of the Secretary of the Army the surface estate 
in the real property described in paragraph (2), which consists 
of 6,640.02 acres of public domain lands in Kittitas County, 
Washington. 
(2) The transfer of administrative jurisdiction under paragraph 
(1) encompasses the following sections (or portions thereof): 
(A) In Township 17 North, Range 20 East, Willamette 
Meridian: 
(i) Sec. 22 (81/2). 
(ii) Sec. 24 (Sy2SWy4 and that portion of the EV2. 
lying south of the Interstate Highway 90 right-of-way), 
(iii) Sec. 26. All. 
(B) In Township 16 North, Range 21 East, Willamette 
Meridian: 
114 STAT. 2763A-200 PUBLIC LAW 106-554—APPENDIX D 
(i) Sec. 4 (SWy4SWV4). 
(ii) Sec. 12 (SEy4). 
(iii) Sec. 18 (Lots 1, 2, 3, and 4, Ey2 and Y.V2WV2). 
(C) In Township 17 North, Range 21 East, Willamette 
Meridian: 
(i) Sec. 30 (Lots 3 and 4). 
(ii) Sec. 32 (NEy4SEy4). 
(D) In Township 16 North, Range 22 East, Willamette 
Meridian: 
(i) Sec. 2 (Lots 1, 2, 3, and 4, SV^'i^V^ and Sy2). 
(ii) Sec. 4 (Lots 1, 2, 3, and 4, Sy2NV2 and Sy2). 
(iii) Sec. 10. All. 
(iv) Sec. 14. All. 
(v) Sec. 20 (SEV4SWy4). 
(vi) Sec. 22. All. 
(vii) Sec. 26 (NV2). 
(viii) Sec. 28 {^Vi). 
(E) In Township 16 North, Range 23 East, Willamette 
Meridian: 
(i) Sec. 18 (Lots 3 and 4, Ey2SWV4, WV2SEy4, and 
that portion of the Ey2SEy4 lying westerly of the westerly 
right-of-way line of Huntzinger Road). 
(ii) Sec. 20 (That portion of the SWV4 lying westerly 
of the easterly right-of-way line of the railroad). 
(iii) Sec. 30 (Lots 1 and 2, NEy4 and 
Y^V^WNVA). 
(b) STATUS OF SURFACE ESTATE.—Upon transfer under sub-
section (a), the surface estate is deemed to be real property subject 
to the Federal Property and Administrative Services Act of 1949 
(40U.S.C. 471etseq.). 
(c) WITHDRAWAL OF MINERAL ESTATE.—(1) Subject to valid 
existing rights, the mineral estate of the lands described in sub-
section (a), as well as the additional lands described in paragraph 
(2), are withdrawn from all forms of appropriation under the public 
land laws, including the mining laws and the geothermal leasing 
laws, but not the Act of July 31, 1947 (commonly known as the 
Materials Act of 1947; 30 U.S.C. 601, et seq.) and the Mineral 
Leasing Act (30 U.S.C. 181 et seq.). 
(2) The additional lands referred to in paragraph (1) consist 
of 3,090.80 acres in the following sections (or portions thereof): 
(A) In Township 16 North, Range 20 East, Willamette 
Meridian: 
(i) Sec. 12. All. 
(ii) Sec. 18 (Lot 4 and SEy4). 
(iii) Sec. 20 (SV2). 
(B) In Township 16 North, Range 21 East, Willamette 
Meridian: 
(i) Sec. 4 (Lots 1, 2, 3, and 4, Sy2NEy4). 
(ii) Sec. 8. All. 
(C) In Township 16 North, Range 22 East, Willamette 
Meridian: 
(i) Sec. 12. All. 
(D) In Township 17 North, Range 21 East, Willamette 
Meridian: 
(i) Sec. 32 (SV2SEy4). 
(ii) Sec. 34 (Wy2). 
(d) USE OF MINERAL MATERIALS.—Notwithstanding subsection 
(c) or the Act of July 31, 1947, the Secretary of the Army may 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-201 
use, without application to the Secretary of the Interior, the sand, 
gravel, or similar mineral material resources on the lands described 
in subsections (a) and (c), of the type subject to disposition under 
the Act of July 31, 1947, when the use of such resources is required 
for construction needs on the Yakima Training Center, Washington. 
CHAPTER 11 
DEPARTMENT OF TRANSPORTATION 
GENERAL PROVISIONS—THIS CHAPTER 
SEC. 1101. Section 5309(g)(4)(D)(2) of title 49, United States 
Code, is amended by striking "light". 
SEC. 1102. Item number 630 of the table contained in section 
1602 of the Transportation Act for the 21st Century (112 Stat. 
280), relating to Buffalo, New York, is amended by striking "Design 
and construct Outer Harbor Bridge in Buffalo" and inserting 
"Transportation 
infrastructure 
improvements, 
Inner 
Harbor/ 
Redevelopment project, Buffalo". 
SEC. 1103. If the State of Arkansas incorporates into the reloca-
tion of U.S. Route 71 through Fort Chaffee, Arkansas, land obtained 
by the State from the Federal Government as a result of the 
closure of a military installation, the Secretary of Transportation 
shall credit to the State share of the cost of the relocation the 
fair market value of such land . 
SEC. 1104. For an additional amount to enable the Secretary 
of Transportation to make a grant to the Huntsville International 
Airport, $2,500,000, to be derived from the airport and airway 
trust fund, to remain available until expended. 
SEC. 1105. Notwithstanding any other provision of law, for 
necessary expenses for the Southeast Light Rail Extension Project 
in Dallas, Texas, $1,000,000, to be derived from the Mass Transit 
Account of the Highway Trust Fund and to remain available until 
expended. 
SEC. 1106. Section 1105(c) of the Intermodal Surface Transpor-
tation Efficiency Act of 1991 (105 Stat. 2032-2033) is amended 
by striking paragraph (38) and replacing it with the following— 
"(38) The Ports-to-Plains Corridor from Laredo, Texas, via 
1-27 to Denver, Colorado, shall include: 
"(A) In the State of Texas the Ports-to-Plains Corridor 
shall generally follow— 
"(i) 1-35 from Laredo to United States Route 83 
at Exit 18; 
"(ii) United States Route 83 from Exit 18 to Carrizo 
Springs; 
"(iii) United States Route 277 from Carrizo Springs 
to San Angelo; 
"(iv) United States Route 87 from San Angelo to 
Sterling City; 
"(v) From Sterling City to Lamesa, the Corridor 
shall follow United States Route 87 and, the Corridor 
shall also follow Texas Route 158 from Sterling City 
to 1-20, then via 1-20 West to Texas Route 349 and, 
Texas Route 349 from Midland to Lamesa; 
"(vi) United States Route 87 from Lamesa to Lub-
bock; 
114 STAT. 2763A-202 
PUBLIC LAW 106-554—APPENDIX D 
"(vii) 1-27 from Lubbock to Amarillo; and 
"(viii) United States Route 287 from Amarillo to 
Dumas. 
"(B) The corridor designation contained in paragraph 
(A) shall take effect only if the Texas Transportation 
Commission has not designated the Ports-to-Plains Cor-
ridor in Texas by June 30, 2001.". 
SEC. 1107. For an additional amount to enable the Secretary 
of Transportation to make a grant for the Newark-Elizabeth rail 
link project, New Jersey, $3,000,000, to be derived from the Mass 
Transit Account of the Highway Trust Fund and to remain available 
until expended. 
SEC. 1108. Section 5309(m)(3)(C) of title 49 United States Code, 
shall not apply to the funds made available in the Department 
of Transportation and Related Agencies Appropriations Act, 2001: 
Provided, That notwithstanding any other provision of law, the 
14th Street Bridge, Virginia; Chouteau Bridge, Jackson County, 
Missouri; Clement C. Clay Bridge replacement, Morgan/Madison 
counties, Alabama; Fairfield-Benton-Kennebec River Bridge, Maine; 
Florida Memorial Bridge, Florida; Historic Woodrow Wilson Bridge, 
Mississippi; Missisquoi Bay Bridge, Vermont; Oaklawn Bridge, 
South Pasadena, California; Pearl Harbor Memorial Bridge replace-
ment, Connecticut; Powell County Bridge, Montana; Santa Clara 
Bridge, Oxnard, California; Star City Bridge, West Virginia; US 
231 Bridge over Tennessee River, Alabama; US 54/US 69 Bridge, 
Kansas; Waimalu Bridge replacement on I-l, Hawaii; Washington 
Bridge, Rhode Island are eligible in fiscal year 2001 under section 
144(g)(2) of title 23, United States Code: Provided further. That 
section 378 of Public Law 106-346 is amended by inserting after 
"US 101" the following: "and Interstate 5 Trade Corridor". 
SEC. 1109. Notwithstanding any other provision of law, in addi-
tion to funds otherwise appropriated in this or any other Act for 
fiscal year 2001, $4,000,000 is hereby appropriated from the High-
way Trust Fund for Commercial Remote Sensing Products and 
Spatial Information Technologies under section 5113 of Public Law 
105-178, as amended: Provided, That such funds are used to study 
the creation of a new highway right-of-way south of I-10 along 
the Mississippi Gulf Coast by relocating the existing railroad right-
of-way out of downtown areas. 
SEC. 1110. Amtrak is authorized to obtain services from the 
Administrator of General Services, and the Administrator is author-
ized to provide services to Amtrak, under sections 201(b) and 211(b) 
of the Federal Property and Administrative Services Act of 1949 
(40 U.S.C. 481(b) and 491(b)) for fiscal year 2001 and each fiscal 
year thereafter until the fiscal year that Amtrak operates without 
Federal operating grant funds appropriated for its benefit, as 
required by sections 24101(d) and 24104(a) of title 49, United States 
Code. 
SEC. 1111. Of the funds made available in the "Alteration 
of bridges" account of the Department of Transportation and Related 
Agencies Appropriations Act, 2001 for the Fox River Bridge, 
$575,000 shall be transferred by the Secretary of Transportation 
to the City of Oshkosh for removal of the bridge located at mile 
point 56.9 of the Fox River in Oshkosh, Wisconsin. The United 
States shall assume no responsibility for project management relat-
ing to removal of the bridge. 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-203 
SEC. 1112. Notwithstanding section 27 of the Merchant Marine 
Act, 1920 (46 App. U.S.C. 883), section 8 of the Act of June 19, 
1886 (46 App. U.S.C. 289), and section 12106 of title 46, United 
States Code, the Secretary of Transportation may issue a certificate 
of documentation with appropriate endorsement for employment 
in the coastwise trade for the following vessels: 
(1) MA^ WELLS GRAY (State of Alaska registration num-
ber AK 9452 N; former Canadian registration number 154661); 
and 
(2) ANNANDALE (United States official number 519434). 
SEC. 1113. CONVEYANCE OF COAST GUARD PROPERTY IN MIDDLE-
TOWN, CALIFORNIA, (a) AUTHORITY TO CONVEY.— 
(1) IN GENERAL.—The Administrator of General Services 
(in this section referred to as the "Administrator") may 
promptly convey to Lake County, California (in this section 
referred to as the "County"), without consideration, all right, 
title, and interest of the United States (subject to subsection 
(c)) in and to the property described in subsection (b). 
(2) IDENTIFICATION OF PROPERTY.—^The Administrator, in 
consultation with the Commandant of the Coast Guard, may 
identify, describe, and determine the property to be conveyed 
under this section. 
(b) PROPERTY DESCRIBED.— 
(1) IN GENERAL.—The property referred to in subsection 
(a) is such portion of the Coast Guard LORAN Station Middle-
town as has been reported to the General Services Administra-
tion to be excess property, consisting of approximately 733.43 
acres, and is comprised of all or part of tracts A-101, A-
102, A-104, A-105, A-106, A-107, A-108, and A-111. 
(2) SURVEY.—The exact acreage and legal description of 
the property conveyed under subsection (a), and any easements 
or rights-of-way reserved by the United States under subsection 
(c)(1), shall be determined by a survey satisfactory to the 
Administrator. The cost of the survey shall be borne by the 
County. 
(c) CONDITIONS.— 
(1) IN GENERAL.—In meiking the conveyance under sub-
section (a), the Administrator shall— 
(A) reserve for the United States such existing rights-
of-way for access and such easements as are necessary 
for continued operation of the LORAN station; 
(B) preserve other existing easements for public roads 
and highways, public utilities, irrigation ditches, railroads, 
and pipelines; and 
(C) impose such other restrictions on use of the prop-
erty conveyed as are necessary to protect the safety, secu-
rity, and continued operation of the LORAN station. 
(2) FIREBREAKS AND FENCE.—(A) The Administrator may 
not convey any property under this section unless the County 
£ind the Commandant of the Coast Guard enter into an agree-
ment with the Administrator under which the County is 
required, in accordance with design specifications and mainte-
nance standards established by the Commandant— 
(i) to establish and construct within 6 months after 
the date of the conveyance, and thereafter to maintain, 
firebreaks on the property to be conveyed; and 
114 STAT. 2763A-204 PUBLIC LAW 106-554--APPENDIX D 
(ii) construct within 6 months after the date of convey-
ance, and thereafter maintain, a fence approved by the 
Commandant along the property Hne between the property 
conveyed and adjoining Coast Guard property. 
(B) The agreement shall require that— 
(i) the County shall pay all costs of establishment, 
construction, and maintenance of firebreaks under subpara-
graph (A)(i); and 
(ii) the Commandant shall provide all materials needed 
to construct a fence under subparagraph (A)(ii), and the 
County shall pay all other costs of construction and mainte-
nance of the fence. 
(3) COVENANTS APPURTENANT.^The Administrator shall 
take actions necessary to render the requirement to establish, 
construct, and maintain firebreaks and a fence under paragraph 
(2) and other requirements and conditions under paragraph 
(1), under the deed conveying the property to the County, 
covenants that run with the land for the benefit of land retained 
by the United States. 
(d) REVERSIONARY INTEREST.—During the 5-year period begin-
ning on the date the Administrator makes the conveyance author-
ized by subsection (a), the real property conveyed pursuant to 
this section, at the option of the Administrator, shall revert to 
the United States and be placed under the administrative control 
of the Administrator, if— 
(1) the County sells, conveys, assigns, exchanges, or encum-
bers the property conveyed or any part thereof; 
(2) the County fails to maintain the property conveyed 
in a manner consistent with the terms and conditions in sub-
section (c); 
(3) the County conducts any commercial activities at the 
property conveyed, or any part thereof, without approval of 
the Secretary; or 
(4) at least 30 days before the reversion, the Administrator 
provides written notice to the owner that the property or any 
part thereof is needed for national security purposes. 
SEC. 1114. CONVEYANCE OF COAST GUARD PROPERTY TO TOWN 
OF NANTUCKET, MASSACHUSETTS, (a) AUTHORITY TO CONVEY.— 
(1) IN GENERAL.—Notwithstanding any other law, the 
Administrator of the General Services Administration (Adminis-
trator) or the Commandant of the Coast Guard (Commandant), 
as appropriate, shall convey to the Town of Nantucket, 
Massachusetts (Town), without monetary consideration, all 
right, title, and interest of the United States of America (United 
States) in and to a certain parcel of land located in Nantucket, 
Massachusetts, and part of the United States Coast Guard 
LORAN Station Nantucket, together with any improvements 
thereon in their then current condition, 
(2) IDENTIFICATION OF PROPERTY.—The Administrator or 
the Commandant, as appropriate, shall identify, describe, and 
determine the property to be conveyed under this section. The 
Town shall bear all monetary costs associated with any survey 
required to describe the property to be conveyed under this 
section and any easements reserved by the United States under 
subsection (b)(1). 
(b) TERMS AND CONDITIONS OF CONVEYANCE.— 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-205 
(1) The conveyance of property under this section shall 
be made subject to any terms and conditions the Administrator 
or the Commandant, as appropriate, considers necessary, 
including the reservation of easements and other rights on 
behalf of the United States, to ensure that— 
(A) there is reserved to the United States the right 
to remove, relocate, or replace any aid to navigation located 
upon, or install or construct any aid to navigation upon, 
property conveyed under this section as may be necessary 
for navigational purposes; 
(B) the United States shall have the right to enter 
property conveyed under this section at any time, without 
notice, for purposes of operating, maintaining, and inspect-
ing any aid to navigation and for the purposes of exercising 
any of the rights set forth in paragraph (1)(A) of this 
subsection; and 
(C) the Town shall not interfere or allow interference, 
in any manner, with any aid to navigation, whether located 
upon the property conveyed under this section or upon 
any portion of LORAN Station Nantucket retained by the 
United States, nor hinder activities required for the inspec-
tion, operation, and maintenance of any such aid to naviga-
tion without the Commandant's express written permission. 
(2) The Town shall not convey, assign, exchange, or in 
any way encumber the property conveyed under this section, 
unless approved by the Administrator. 
(3) The Town shall not conduct any commercial activities 
at or upon the property conveyed under this section, unless 
approved by the Administrator. 
(4) The Town shall not be required to maintain any active 
aid to navigation associated with the property conveyed under 
this section except for private aids to navigation permitted 
under 14 U.S.C. 83. 
(5) The United States shall not convey any property under 
this section, nor grant any real property license under sub-
section (d), until the Town enters into an agreement with 
the United States to relocate the Coast Guard receiving antenna 
and associated equipment, as identified by the Commandant, 
at the Town's sole cost and expense, and subject to the Com-
mandant's design specifications, project schedule, and final 
project approval. 
(6) The United States shall not convey any property under 
this section, nor grant any real property license under sub-
section (d), until the Town enters into an agreement with 
the United States that provides that the Town will immediately 
cease construction or operation of the waste water treatment 
facility upon notification by the Commandant that the Town's 
construction or operation of the facility interferes with any 
Coast Guard aid to navigation. The agreement shall provide 
that construction or operation shall not be resumed until the 
conditions causing the interference are corrected, and the Com-
mandant authorizes the construction or operation to resume. 
(7) All conditions placed with the deed of title shall be 
construed as covenants running with the land. 
(c) REVERSIONARY INTEREST.—-In addition to any term or condi-
tion established pursuant to this section, the conveyance of property 
114 STAT. 2763A-206 
PUBLIC LAW 106-554—APPENDIX D 
under this section shall include a condition that the property con-
veyed, at the option of the Administrator, shall revert to the United 
States and be placed under the administrative control of the 
Administrator, if— 
(1) the Town conveys, assigns, exchanges, or in any manner 
encumbers the property conveyed for consideration, unless 
otherwise approved by the Administrator; 
. 
(2) the Town conducts any commercial activities at or upon 
the property conveyed, unless otherwise approved by the 
Administrator; 
(3) the Town interferes or allows interference, in any man-
ner, with any aid to navigation, whether located upon the 
property conveyed under this section or upon any portion of 
LORAN Station Nantucket retained by the United States, nor 
hinder activities required for the inspection, operation, and 
maintenance of any such aid to navigation without the Com-
mandant's express written permission; or 
(4) at least 30 days before the reversion, the Administrator 
provides written notice to the grantee that property conveyed 
under this section, or any portion thereof, is needed for national 
security purposes. 
(d) REAL PROPERTY LICENSE.—Prior to the conveyance of any 
property under this section, the Commandant may grant a real 
property license to the Town for the purpose of allowing the Town 
to enter upon LORAN Station Nantucket and commence construc-
tion of a waste water treatment facility and for other site prepara-
tion activities. 
(e) DEFINITIONS.—For purposes of this section: 
(1) AID TO NAVIGATION.—The term "aid to navigation" 
means equipment used for navigation purposes, including but 
not limited to, a light, antenna, sound signal, electronic and 
radio navigation equipment and signals, cameras, sensors, or 
other equipment operated or maintained by the United States. 
(2) TOWN.—The term "Town" includes the successors and 
assigns of the Town of Nantucket, Massachusetts. 
SEC. 
1115. 
CONVEYANCE 
OF 
PLUM 
ISLAND 
LIGHTHOUSE, 
NEWBURYPORT, MASSACHUSETTS, (a) AUTHORITY TO CONVEY.— 
(1) IN GENERAL.—Notwithstanding any other law, the 
Administrator of the General Services Administration (Adminis-
trator) or the Commandant of the Coast Guard (Commandant), 
as appropriate, shall convey to the City of Newburyport, 
Massachusetts (City), without monetary consideration, all right, 
title, and interest of the United States of America (United 
States) in and to two certain parcels of land upon which the 
Plum Island Boat House and the Plum Island Lighthouse (also 
known as the Newburyport Harbor Light), are situated, respec-
tively, located in Essex County, Massachusetts, together with 
any improvements thereon in their then current condition. 
(2) IDENTIFICATION OF PROPERTY.—The Administrator or 
the Commandant, as appropriate, shall identify, describe, and 
determine the property to be conveyed under this section, 
including the right to retain all right, title, and interest of 
the United States to any portion of either parcel described 
in paragraph (a)(1) of this section. The Administrator or Com-
mandant, as appropriate, may retain all right, title, and interest 
of the United States in and to any historical artifact, including 
any lens or lantern, that is associated with and located at 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-207 
the property conveyed under this section at the time of convey-
ance. Artifacts associated with, but not located at, the property 
conveyed under this section at the time of conveyance, shall 
remain the personal property of the United States under the 
administrative control of the Commandant. No submerged lands 
shall be conveyed under this section, 
(b) TERMS AND CONDITIONS OF CONVEYANCE.— 
(1) The conveyance of property under this section shall 
be made subject to any terms and conditions the Administrator 
or the Commandant, as appropriate, considers necessary, 
including but not limited to, the reservation of easements £ind 
other rights on behalf of the United States, to ensure that— 
(A) the aids to navigation located at property conveyed 
under this section shall remain the personal property of 
the United States and continue to be operated and main-
tained by the United States for as long as needed for 
navigational purposes; 
(B) there is reserved to the United States the right 
to remove, relocate, or replace any aid to navigation located 
upon, or install or construct any aid to navigation upon, 
property conveyed under this section as may be necessary 
for navigational purposes; 
(C) the United States shall have the right to enter 
property conveyed under this section at any time, without 
notice, for purposes of operating, maintaining, and inspect-
ing any aid to navigation, for the purposes of exercising 
any of the rights set forth in paragraph (1)(B) of this 
subsection, and for the purposes of ingress and egress 
to any land retained by the United States; and 
(D) the City shall not, without the Commandant's 
express written permission, interfere or allow interference, 
in any manner, with any aid to navigation, nor hinder 
activities required 
(i) for the inspection, operation, and maintenance 
of any aid to navigation; or 
(ii) for the exercise of any of the rights set forth 
in paragraph (1)(B) of this subsection. 
(2) The City shall, at its own cost and expense, maintain 
the property conveyed under this section in a proper, substan-
tial, and workmanlike manner. 
(3) The City shall ensure that the property conveyed is 
available and accessible to the public, on a reasonable basis 
for educational, park, recreational, cultural, historic preserva-
tion or similar purposes. 
(4) The City shall not be required to maintain any active 
aid to navigation associated with the property conveyed under 
this section except for private aids to navigation permitted 
under 14 U.S.C. 83. 
(5) All conditions placed with the deed of title for property 
conveyed under this section shall be construed as covenants 
running with the land. 
(6) The Administrator or the Commandant, as appropriate, 
may require such additional terms and conditions with respect 
to the conveyance of property under this section, as the 
Administrator or the Commandant considers appropriate to 
protect the interests of the United States. 
114 STAT. 2763A-208 
PUBLIC LAW 106-554—APPENDIX D 
(c) REVERSIONARY INTEREST.—In addition to any term or condi-
tion established pursuant to this section, any property conveyed 
under this section, at the option of the Administrator, shall revert 
to the United States and be placed under the administrative control 
of the Administrator, if— 
(1) the property conveyed under this section, or any part 
thereof, ceases to be maintained in a manner that ensures 
its present or future use as a site for an aid to navigation 
as determined by the Commandant; 
(2) the property conveyed under this section, or any part 
thereof, ceases to be available and accessible to the public, 
on a reasonable basis, for educational, park, recreational, cul-
tural, historic preservation or similar purposes; or 
(3) at least 30 days before the reversion, the Administrator 
provides written notice to the grantee that property conveyed 
under this section, or any portion thereof, is needed for national 
security purposes. 
(d) DEFINITIONS.—For purposes of this section: 
(1) AID TO NAVIGATION.—The term "aid to navigation" 
means equipment used for navigation purposes, including but 
not limited to, a light, antenna, sound signal, electronic and 
radio navigation equipment and signals, cameras, sensors, or 
other equipment operated or maintained by the United States. 
(2) CITY.—The term "City" includes the successors and 
assigns of the City of Newburyport, Massachusetts. 
SEC. 1116. TRANSFER OF COAST GUARD STATION SCITUATE TO 
THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION, (a) 
AUTHORITY TO TRANSFER.— 
(1) IN GENERAL.—The Administrator of the General Serv-
ices Administration, in consultation with the Commandant, 
United States Coast Guard, may transfer without consideration 
administrative jurisdiction, custody, and control over the Fed-
eral property known as Coast Guard Station Scituate to the 
National Oceanic and Atmospheric Administration (hereinafter 
referred to as "NOAA"). 
(2) IDENTIFICATION OF PROPERTY.—^The Administrator, in 
consultation with the Commandant, may identify, describe, and 
determine the property to be transferred under this section, 
(b) TERMS OF TRANSFER.— 
(1) The transfer of the property shall be made subject 
to any conditions and reservations the Commandant considers 
necessary to ensure that— 
(A) the transfer of the property to NOAA is contingent 
upon the relocation of Coast Guard Station Scituate to 
a suitable site; 
(B) there is reserved to the Coast Guard the right 
to remove, relocate, or replace any aid to navigation located 
upon, or install any aid to navigation upon, the property 
transferred under this section as may be necessary for 
navigational purposes; and 
(C) the Coast Guard shall have the right to enter 
the property transferred under this section at any time, 
without notice, for purposes of operating, maintaining, and 
inspecting any aid to navigation. 
(2) The transfer of the property shall be made subject 
to the review and acceptance of the property by NOAA. 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-209 
(c) RELOCATION OF STATION SCITUATE.—The Coast Guard 
may— 
(1) lease land, including unimproved or vacant land, for 
a term not to exceed 20 years, for the purpose of relocating 
Coast Guard Station Scituate; and 
(2) improve the land leased under this subsection. 
SEC. 1117. EXTENSION OF INTERIM AUTHORITY FOR DRY BULK 
CARGO RESIDUE DISPOSAL, (a) Section 415(b)(2) of the Coast Guard 
Authorization Act of 1998 is amended by striking "2002" and insert-
ing "2004". 
(b) The Secretary shall conduct a study of the effectiveness 
of the United States 1997 Enforcement Policy for Cargo Residues 
on the Great Lakes ("Policy") by September 30, 2002. 
(c) The Secretary is authorized to promulgate regulations to 
implement and enforce a program to regulate incidental discharges 
from vessels of residues of non-hazardous and non-toxic dry bulk 
cargo into the waters of the Great Lakes, which takes into account 
the finding in the study required under subsection (b). This program 
shall be consistent with the Policy. 
SEC. 1118. GREAT LAKES PILOTAGE ADVISORY COMMITTEE. Sec-
tion 9307 of title 46, United States Code, is amended— 
(1) by amending subparagraph (A) of subsection (b)(2) to 
read as follows: 
"(A) The President of each of the 3 Great Lakes pilotage 
districts, or the President's representative;"; 
(2) by amending subparagraph (E) of subsection (b)(2) to 
read as follows: 
"(E) a member with a background in finance or account-
ing, who— 
"(i) must have been recommended to the Secretary 
by a unanimous vote of the other members of the 
Committee, and 
"(ii) may be appointed without regard to require-
ment in paragraph (1) that each member have 5 years 
of practical experience in maritime operations."; 
(3) in subsection (C)(2) by striking the second sentence; 
(4) by adding at the end of subsection (d) the following 
new paragraph: 
"(3) Any recommendations to the Secretary under sub-
section (a)(2) must have been approved by at least all but 
one of the members then serving on the committee."; and 
(5) in subsection (f)(1) by striking "September 30, 2003" 
and inserting "September 30, 2005". 
SEC. 1119. VESSEL ESCORT OPERATIONS AND TOWING ASSIST-
ANCE, (a) IN GENERAL.—Except in the case of a vessel in distress, 
only a vessel of the United States (as that term is defined in 
section 2101 of title 46, United States Code) may perform the 
following vessel escort operations and vessel towing assistance 
within the navigable waters of the United States: 
(1) Operations or assistance that commences or terminates 
at a port or place in the United States. 
(2) Operations or assistance required by United States 
law or regulation. 
(3) Operations provided in whole or in part for the purpose 
of escorting or assisting a vessel within or through navigation 
facilities owned, maintained, or operated by the United States 
Government or the approaches to such facilities, other than 
114 STAT. 2763A-210 
PUBLIC LAW 106-554—APPENDIX D 
facilities operated by the St. Lawrence Seaway Development 
Corporation on the St. Lawrence River portion of the Seaway. 
(b) DEFINITIONS.—^Unless otherwise defined by a provision of 
law or regulation requiring that towing assistance or escort be 
rendered to vessels transiting United States waters or navigation 
facilities, for purposes of this section— 
(1) the term "towing assistance" means operations by an 
assisting vessel in direct contact with an assisted vessel (includ-
ing hull-to-hull, by towline, including if only pre-tethered, or 
made fast to that vessel by one or more lines) for purposes 
of exerting force on the assisted vessel to control or to assist 
in controlling the movement of the assisted vessel; and 
(2) the term "escort operations" means accompanying a 
vessel for the purpose of providing towing or towing assistance 
to the vessel. 
SEC. 1120. Notwithstanding any other provision of law, the 
Commandant of the United States Coast Guard is hereby authorized 
to utilize $100,000 of the amounts made available for fiscal year 
2001 for environmental compliance and restoration of Coast Guard 
facilities to reimburse the owner of the former Coast Guard light-
house facility at Cape May, New Jersey, for costs incurred for 
clean-up of lead contaminated soil at that facility. 
SEC. 1121. Notwithstanding any other provision of law, 
$2,400,000, to be derived from the Highway Trust Fund, shall 
be available for planning, development and construction of rural 
farm-to-market roads in Tulare County, California: Provided, That 
the non-Federal share of such improvements shall be 20 percent. 
SEC. 1122. Notwithstanding any other provision of law, and 
subject to the availability of fiinds appropriated specifically for 
the project, the Coast Guard is authorized to transfer funds in 
an amount not to exceed $200,000 and project management author-
ity to the Traverse City Area Public School District for the purposes 
of demolition and removal of the structure commonly known as 
"Building 402" at former Coast Guard property located in Traverse 
City, Michigan, and associated site work. No such funds shall 
be transferred until the Coast Guard receives a detailed, fixed 
price estimate from the School District describing the nature and 
cost of the work to be performed, and the Coast Guard shall transfer 
only that amount of funds it and the School District consider 
necessary to complete the project. 
SEC. 1123. Notwithstanding any other provision of law, for 
necessary expenses for Alabama A&M University buses and bus 
facilities, $500,000, to be derived from the Mass Transit Account 
of the Highway Trust Fund and to remain available until expended. 
SEC. 1124. Notwithstanding any other provision of law, prior 
to the fiscal year 2002 apportionment of "Fixed Guideway Mod-
ernization" funds authorized under section 5309(a)(1)(E) of title 
49, United States Code, $7,047,502 of funds made available in 
fiscal year 2002 by section 5338(b) of title 49, United States Code, 
for the "Fixed Guideway Modernization" program shall be distrib-
uted by the Federal Transit Administration to an urbanized area 
over 200,000 that did not receive amounts of fixed guideway mod-
ernization formula grants to which such area was lawfully entitled 
for fiscal years 1999-2001 in view of eligibility determinations 
made under chapter 53 of title 49, United States Code, during 
the 6 months prior to the effective date of this Act: Provided, 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-211 
That such sums shall not reduce a grantee's fiscal year 2002 appor-
tionment level of "Fixed Guideway Modernization" funds: Provided 
further, That such sum remain available until expended. 
SEC. 1125. Notwithstanding any other provision of law, Airport 
Improvement Program Formula Changes provided in Public Law 
106-181 and defined in section 104 of that Act shall be applied 
regardless of funding levels made available under section 48103 
of title 49, United States Code. 
SEC. 1126. Item number 473 contained in section 1602 of the 
Transportation Equity Act for the 21st Century (112 Stat. 274), 
relating to Minnesota, is amended by striking "between I-35W 
and 24th Avenue to four lanes in Richfield" and inserting 
"reconstruction project from Penn Avenue to 24th Avenue, including 
the Penn Avenue Bridge over 1-494". 
SEC. 1127. The Secretary of Transportation shall not issue 
final regulations under section 20153 of title 49, United States 
Code, before July 1, 2001. 
SEC. 1128. Notwithstanding any other provision of law, in addi-
tion to amounts made available in this Act or any other Act, 
the following sums shall be made available from the Highway 
Trust Fund (other thsin the Mass Transit Account): 
$1,700,000 for transportation and community preservation 
projects along the Main Street Corridor in Houston, Texas; 
$5,000,000 for rehabilitation, repair, and restoration of the 
historic Stillwater Lift Bridge between Stillwater, Minnesota 
and Houlton, Wisconsin; 
$1,000,000 for improvements to McClung Road, Boston 
Street, Larson Street and Whirlpool Drive in the City of 
LaPorte, Indiana; and 
$1,000,000 for design, environmental mitigation, engineer-
ing, and construction of, and improvements to, the US 36/ 
Wadsworth interchange (Broomfield interchange) in Broomfield 
County, Colorado: 
Provided, That the amounts appropriated in this section shall 
remain available until expended and shall not be subject to, or 
computed against, siny obligation limitation or contract authority 
set forth in this or any other Act. 
, 
CHAPTER 12 
GENERAL SERVICES ADMINISTRATION 
REAL PROPERTY ACTIVITIES 
FEDERAL BUILDINGS FUND 
For an additional amount to be deposited in, and to be used 
for the purposes of, the Federal Buildings Fund of the General 
Services Administration, $2,070,000: Provided, That this amount 
shall be available for the purpose of renovating and redeveloping 
portions of the historic Federal building located at 30 North Seventh 
Street in Terre Haute, Indiana, to accommodate the needs of Fed-
eral tenants: Provided farther. That use of these funds is subject 
to authorization including the preparation and approval of a 
prospectus as required by the Public Buildings Act of 1959, as 
amended. 
114 STAT. 2763A-212 
PUBLIC LAW 106-554—APPENDIX D 
DEPARTMENT OF THE TREASURY 
UNITED STATES CUSTOMS SERVICE 
OPERATIONS, MAINTENANCE AND PROCUREMENT, AIR AND MARINE 
INTERDICTION PROGRAMS 
For an additional amount of $7,000,000, to remain available 
until expended, for necessary expenses associated with procurement 
of two aircraft and related equipment expenses associated with 
aviation standardization and training at the Customs National 
Aviation Center in Oklahoma City, Oklahoma: Provided, That none 
of the funds provided shall be available for obligation until an 
expenditure plan is submitted for approval to the Committees on 
Appropriations. 
CHAPTER 13 
DEPARTMENT 
OF 
VETERANS 
AFFAIRS 
DEPARTMENTAL ADMINISTRATION 
CONSTRUCTION, MINOR PROJECTS 
For an additional amount for "Construction, minor projects", 
$8,840,000, to remain available until expended. 
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 
COMMUNITY PLANNING AND DEVELOPMENT 
EMPOWERMENT Z O N E S / E N T E R P R I S E COMMUNITIES 
For an additional amount for "Empowerment zones and enter-
prise communities", $110,000,000, to remain available 
until 
expended: Provided, That $185,000,000 shall be available for urban 
empowerment zones, as authorized by the Taxpayer Relief Act 
of 1997, including $12,333,333 for each empowerment zone. 
COMMUNITY DEVELOPMENT FUND 
For an additional amount for "Community development fund", 
$66,128,000 to remain available until September 30, 2003. 
The referenced statement of the managers in the seventh 
undesignated paragraph under this heading in title II of the Depart-
ments of Veterans Affairs and Housing and Urban Development, 
and Independent Agencies Appropriations Act, 2001 (Public Law 
106-377) is deemed to be amended by striking "West Dallas 
neighborhoods" in reference to improvement efforts by the Pleasant 
Wood/Pleasant Grove Community Development Corporation, and 
inserting "the Pleasant Grove area" in lieu thereof. 
The unobligated amount appropriated in the third paragraph 
under the heading "Community development block grants" in chap-
ter 8 of title II of the Emergency Supplemental Act, 2000 (Public 
Law 106-246) for a grant to the City of Hamlet, North Carolina, 
for demolition and removal of buildings and equipment destroyed 
by fire shall remain available until September 30, 2002, for a 
grant for such purpose to the County of Richmond, North Carolina. 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-213 
The seventh paragraph under this heading in title II of Pubhc 
Law 106-377 is amended by striking "$292,000,000" and inserting 
in Heu thereof "$358,128,000": Provided, That such funds shall 
be available for grants for the Economic Development Initiative 
(EDI) to finance a variety of targeted economic investments in 
accordance with the terms and conditions specified in the statement 
of managers accompanying this conference report. 
DEPARTMENT OF THE TREASURY 
COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS 
COMMUNITY D E V E L O P M E N T FINANCLVL INSTITUTIONS 
F U N D PROGRAM ACCOUNT 
Under this heading in PubUc Law 106-377, strike "$8,750,000 
may be used for administrative expenses," and insert "$9,750,000 
may be used for administrative expenses, including administration 
of the New Markets Tax Credit and Individual Development 
Accounts,". 
ENVIRONMENTAL PROTECTION AGENCY 
SCIENCE AND TECHNOLOGY 
For an additional amount for "Science and technology", 
$1,000,000 for continuation of the South Bronx Air Pollution Study 
being conducted by New York University. 
ENVIRONMENTAL PROGRAMS AND MANAGEMENT 
The statement of the managers under this heading in title 
III of the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 2001 
(Public Law 106-377) is deemed to be amended by inserting the 
word "Valley" after the words "San Bernardino" in reference to 
a project identified as number 104 in such statement of the man-
agers. 
STATE AND TRIBAL ASSISTANCE GRANTS 
Grants appropriated binder this heading in Public Law 106-
74 and Public Law 106-377 for drinking water infrastructure needs 
in the New York City watershed shall be awarded under section 
1443(d) of the Safe Drinking Water Act, as amended. 
The referenced statement of the managers under this heading 
in Public Law 106-377 is deemed to be amended by striking all 
after the words "City of Liberty" in reference to item number 
78, and inserting the words "Town of Versailles, Indiana for waste-
water infrastructure improvements". 
Under this heading in title III of Public Law 106-377, strike 
"$335,740,000" and insert "$356,370,000": Provided, That such 
funds shall be for making grants for the construction of wastewater 
and water treatment facilities and groundwater protection infra-
structure in accordance with the terms and conditions specified 
for such grants in the statement of managers accompanying Public 
Law 106-377 and this conference report. 
114 STAT. 2763A-214 
PUBLIC LAW 10&-554—APPENDIX D 
FEDERAL EMERGENCY MANAGEMENT AGENCY 
EMERGENCY MANAGEMENT PLANNING AND ASSISTANCE 
For an additional amount for "Emergency management plan-
ning and assistance", $100,000,000, to remain available through 
September 30, 2001, for programs as authorized by section 33 
of the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 
2201 et seq.), as amended. 
CHAPTER 14 
GENERAL PROVISIONS—THIS DIVISION 
SEC. 1401. H. Con. Res. 234 of the 106th Congress, as adopted 
by the House of Representatives on November 18, 1999, shall be 
considered to have been adopted by the Senate. 
SEC. 1402. Section 3003(a)(1) of the Federal Reports Elimi-
nation and Sunset Act of 1995 (31 U.S.C. 1113 note) does not 
apply to any report required to be submitted under any of the 
following provisions of law: 
(1) Sections 1105(a), 1106(a) and (b), and 1109(a) of title 
31, United States Code, and any other law relating to the 
budget of the United States Government. 
(2) The Balanced Budget and Emergency Deficit Control 
Act of 1985 (2 U.S.C. 900 et seq.). 
(3) Sections 202(e)(1) and (3) of the Congressional Budget 
Act of 1974 (2 U.S.C. 602(e)(1) and (3)). 
(4) Section 1014(e) of the Congressional Budget and 
Impoundment Control Act of 1974 (2 U.S.C. 685(e)). 
SEC. 
1403, 
(a) 
GOVERNMENT-WIDE RESCISSIONS.—There 
is 
hereby rescinded an amount equal to 0.22 percent of the discre-
tionary budget authority provided (or obligation limit imposed) for 
fiscal year 2001 in this or any other Act for each department, 
agency, instrumentality, or entity of the Federal Government, 
except for those programs, projects, and activities which are specifi-
cally exempted elsewhere in this provision: Provided, That this 
exact reduction percentage shall be applied on a pro rata basis 
only to each program, project, and activity subject to the rescission. 
(b) RESTRICTIONS.—This reduction shall not be applied to the 
amounts appropriated in title I of Public Law 106-259: Provided, 
That this reduction shall not be applied to the amounts appropriated 
in division B of Public Law 106-246: Provided further. That this 
reduction shall not be applied to the amoimts appropriated under 
the Departments of Labor, Health and Human Services, and Edu-
cation, and Related Agencies Appropriations Act, 2001, as contained 
in this Act, or in prior Acts. 
(c) REPORT.—The Director of the Office of Management and 
Budget shall include in the President's budget submitted for fiscal 
year 2002 a report specifying the reductions made to each account 
pursuant to this section. 
DIVISION B 
TITLE I 
SEC. 101. ELIGIBILITY OF PRIVATE ORGANIZATIONS UNDER CHILD 
AND ADULT CARE FOOD PROGRAM, (a) Section 17(a)(2)(B) of the 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-215 
Richard B. Russell National School Lunch Act (42 U.S.C. 
1766(a)(2)(B)) is amended by striking "children for which the" and 
inserting "children, i
f
— 
"(i) during the period beginning on the date of 
enactment of this clause and ending on September 
30, 2001, at least 25 percent of the children served 
by the organization meet the income eligibility criteria 
established under section 9(b) for free or reduced price 
meals; or 
"(ii) the", 
(b) EMERGENCY REQUIREMENT.— 
(1) IN GENERAL.—The entire amount necessary to carry 
out this section shall be available only to the extent that 
an official budget request for the entire amount, that includes 
designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended, is transmitted by 
the President to the Congress. 
(2) DESIGNATION.—The entire amount necessary to carry 
out this section is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2)TA) of such Act. 
SEC. 102. SUMMER FOOD PILOT PROJECTS, (a) Section 18 of 
the Richard B. Russell National School Lunch Act (42 U.S.C. 1769) 
is amended by adding at the end the following: 
"(f) SUMMER FOOD PILOT PROJECTS.— 
"(1) DEFINITION OF ELIGIBLE STATE.—In this subsection, 
the term 'eligible State' means a State in which (based on 
data available in July 2000)— 
"(A) the percentage obtained by dividing— 
"(i) the sum of— 
"(I) the average daily number of children 
attending the summer food service program in the 
State in July 1999; and 
"(II) the average daily number of children 
receiving free or reduced price meals under the 
school lunch program in the State in July 1999; 
by 
"(ii) the average daily number of children receiving 
free or reduced price meals under the school lunch 
program in the State in March 1999; is less than 
50 percent of 
"(B) the percentage obtained by dividing— 
"(i) the sum of— 
"(I) the average daily number of children 
attending the summer food service program in all 
States in July 1999; and 
"(II) the average daily number of children 
receiving free or reduced price meals under the 
school lunch program in all States in July 1999; 
by 
"(ii) the average daily number of children receiving 
free or reduced price meals under the school lunch 
program in all States in March 1999. 
"(2) PILOT PROJECTS.—During the period of fiscal years 
2001 through 2003, the Secretary shall carry out a summer 
food pilot project in each eligible State to increase the number 
114 STAT. 2763A-216 
PUBLIC LAW 106-554—APPENDIX D 
of children participating in the summer food service program 
in the State. 
"(3) SUPPORT LEVELS FOR SERVICE INSTITUTIONS.— 
"(A) FOOD SERVICE.—Under the pilot project, a service 
institution (other than a service institution described in 
section 13(a)(7)) in an eligible State shall receive the maxi-
mum amounts for food service under section 13(b)(1) with-
out regard to the requirement under section 13(b)(1)(A) 
that payments shall equal the full cost of food service 
operations. 
"(B) ADMINISTRATIVE COSTS.—^Under the pilot project, 
a service institution (other than a service institution 
described in section 13(a)(7)) in an eligible State shall 
receive the maximum amounts for administrative costs 
determined by the Secretary under section 13(b)(4) without 
regard to the requirement under section 13(b)(3) that pay-
ments to service institutions shall equal the full amount 
of State-approved administrative costs incurred. 
"(C) COMPLIANCE.—^A service institution that receives 
assistance under this subsection shall comply with all 
provisions of section 13 other than subsections (b)(1)(A) 
and (b)(3) of section 13. 
"(4) MAINTENANCE OF EFFORT.—^Expenditures of funds from 
State and local sources for maintenance of a summer food 
service program shall not be diminished as a result of assistance 
from the Secretary received under this subsection. 
"(5) EVALUATION OF PILOT PROJECTS.— 
"(A) IN GENERAL.—The Secretary, acting through the 
Administrator of the Food and Nutrition Service, shall 
conduct an evaluation of the pilot project. 
"(B) CONTENT.—An evaluation under this paragraph 
shall describe— 
"(i) any effect on participation by children and 
service institutions in the summer food service program 
in the eligible State in which the pilot project is carried 
out; 
"(ii) any effect of the pilot project on the quality 
of the meals and supplements served in the eligible 
State in which the pilot project is carried out; and 
"(iii) any effect of the pilot project on program 
integrity. 
"(6) REPORTS.— 
"(A) INTERIM REPORT.—Not later than December 1, 
2002, the Secretary shall submit to the Committee on Edu-
cation and the Workforce of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry 
of the Senate an interim report that describes the status 
of, and any progress made by, each pilot project being 
carried out under this subsection as of the date of submis-
sion of the report. 
"(B) FINAL REPORT.—Not later than April 30, 2004, 
the Secretary shall submit to the Committee on Education 
and the Workforce of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of 
the Senate a final report that includes— 
"(i) the evaluations completed by the Secretary 
under paragraph (5); and 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-217 
"(ii) 
any 
recommendations 
of the 
Secretary 
concerning the pilot projects.", 
(b) EMERGENCY REQUIREMENT.— 
(1) IN GENERAL.—^The entire amount necessary to carry 
out this section shall be available only to the extent that 
an official budget request for the entire amount, that includes 
designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended, is transmitted by 
the President to the Congress. 
(2) DESIGNATION.—^The entire amount necessary to carry 
out this section is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2XA) of such Act. 
SEC. 103. (a) IN GENERAL.—^The Secretary of the Interior shall 
conduct a feasibility study for a Sacramento River, California, diver-
sion project that is consistent with the Water Forum Agreement 
among the members of the Sacramento, California, Water Forum 
dated April 24, 2000, and that considers— 
(1) consolidation of several of the Natomas Central Mutual 
Water Company's diversions; 
(2) upgrading fish screens at the consolidated diversion; 
(3) the diversion of 35,000 acre feet of water by the Placer 
County Water Agency; 
(4) the diversion of 29,000 acre feet of water for delivery 
to the Northridge Water District; 
(5) the potential to accommodate other diversions of water 
from the Sacramento River, subject to additional negotiations 
and agreement among Water Forum signatories and potentially 
affected parties upstream on the Sacramento River; and 
(6) an inter-tie between the diversions referred to in para-
graphs (3), (4), and (5) with the Northridge Water District's 
pipeline that delivers water from the American River. 
(b) 
REQUIRED 
COMPONENTS.—The 
feasibility 
study 
shall 
include— 
(1) the development of a range of reasonable options; 
(2) an environmental evaluation; and 
(3) consultation with Federal and State resource manage-
ment agencies regarding potential impacts and mitigation 
measures. 
(c) WATER SUPPLY IMPACT ALTERNATIVES.—The study author-
ized by this section shall include a range of alternatives, all of 
which would investigate options that could reduce to insignificance 
any water supply impact on water users in the Sacramento River 
watershed, including Central Valley Project contractors, from any 
delivery of water out of the Sacramento River as referenced in 
subsection (a). In evaluating the alternatives, the study shall con-
sider water supply alternatives that would increase water supply 
for, or in, the Sacramento River watershed. The study should be 
coordinated with the CALFED program and take advantage of 
information already developed within that program to investigate 
water supply increase alternatives. Where the alternatives evalu-
ated are in addition to or different from the existing CALFED 
alternatives, such information should be clearly identified. 
(d) HABITAT MANAGEMENT PLANNING GRANTS.—The Secretary 
of the Interior, subject to the availability of appropriations, is 
authorized and directed to provide grants to support local habitat 
management planning efforts undertaken as part of the consultation 
79-194 O-00-9:QL3Part5 
114 STAT. 2763A-218 
PUBLIC LAW 106-554—APPENDIX D 
described in subsection (b)(3) in the form of matching funds up 
to $5,000,000. 
(e) REPORT.—The Secretary of the Interior shall provide a report 
to the Committee on Resources of the United States House of 
Representatives and to the Committee on Energy and Natural 
Resources of the United States Senate within 24 months from 
the date of enactment of this Act on the results of the study 
identified in subsection (a). 
(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to the Secretary of the Interior to carry out 
this section $10,000,000, which may remain available 
until 
expended, of which— 
(1) $5,000,000 shall be for the feasibility study under sub-
section (a); and 
(2) $5,000,000 shall be for the habitat management plan-
ning grants under subsection (d). 
(g) LIMITATION ON CONSTRUCTION.—This section does not and 
shall not be interpreted to authorize construction of any facilities. 
SEC. 
104. 
TEN- AND FIFTEEN-MILE BAYOUS, ARKANSAS. 
The 
project for flood control. Saint Francis River Basin, Missouri and 
Arkansas, authorized by section 204 of the Flood Control Act of 
1950 (64 Stat. 172), is modified to expand the boundaries of the 
project to include Ten- and Fifteen-Mile Bayous near West Mem-
phis, Arkansas. Notwithstanding section 103(f) of the Water 
Resources Development Act of 1986 (100 Stat. 4086), the flood 
control work at Ten- and Fifteen-Mile Bayous shall not be consid-
ered separable elements of the project. 
SEC. 105. In accordance with section 102(1) of the Water 
Resources Development Act of 1990 (104 Stat. 4613), the Secretary 
of the Army, acting through the Chief of Engineers, is authorized 
and directed to enter into an agreement to permit the City of 
Alton, Illinois to construct the authorized recreational facilities 
and to reimburse the City of Alton, Illinois for the Federal share 
of these cost-shared recreation facilities as usable segments are 
completed. 
SEC. 
106. 
TRUCKEE WATERSHED RECLAMATION PROJECT, 
(a) 
AUTHORIZATION.—The Secretary of the Interior, in cooperation with 
Washoe County, Nevada, may participate in the design, planning, 
and construction of the Truckee watershed reclamation project, 
consisting of the North Valley reuse project and the Spanish Springs 
Valley septic conversion project, to reclaim and reuse wastewater 
(including degraded groundwater) within and without the service 
area of Washoe County, Nevada. 
(b) COST SHARE.—The Federal share of the cost of the project 
described in subsection (a) shall not exceed 25 percent of the total 
cost of the project. 
(c) LIMITATION.—Funds provided by the Secretary shall not 
be used for the operation or maintenance of the project described 
in subsection (a). 
(d) RECLAMATION WASTEWATER AND GROUNDWATER STUDY AND 
FACILITIES ACT.— 
(1) DESIGN, PLANNING, AND CONSTRUCTION.—Design, plan-
ning, and construction of the project described in subsection 
(a) shall be in accordance with, and subject to the limitations 
contained in, the Reclamation Wastewater and Groundwater 
Study and Facilities Act (43 U.S.C. 390h et seq.). 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-219 
(2) FUNDING.—Funds made available under section 1631 
of the Reclamation Wastewater and Groundwater Study and 
Facilities Act (43 U.S.C. 390h-13) may be used to pay the 
Federal share of the cost of the project. 
SEC. 107. The project for navigation, Tampa Harbor, Florida, 
authorized by section 4 of the Rivers and Harbors Act of September 
22, 1922 (42 Stat. 1042), is modified to authorize the Secretary 
of the Army to deepen and widen the Alafia Channel in accordance 
with the plans described in the Draft Feasibility Report, Alafia 
River, Tampa Harbor, Florida, dated May 2000, at a total cost 
of $61,592,000, with an estimated Federal cost of $39,621,000 and 
an estimated non-Federal cost of $21,971,000. 
SEC. 108. ENVIRONMENTAL INFRASTRUCTURE, (a) TECHNICAL, 
PLANNING, AND DESIGN ASSISTANCE.—Section 219(c) of the Water 
Resources Development Act of 1992 (106 Stat. 4835) is amended 
by adding at the end the following: 
"(19) MARANA, ARIZONA.—^Wastewater treatment and dis-
tribution infrastructure, Marana, Arizona. 
"(20) 
EASTERN 
ARKANSAS 
ENTERPRISE 
COMMUNITY, 
ARKANSAS.—^Water-related infrastructure, Eastern Arkansas 
Enterprise Community, Cross, Lee, Monroe, and St. Francis 
Counties, Arkansas. 
"(21) CHINO HILLS, CALIFORNIA.—Storm water and sewage 
collection infrastructure, Chino Hills, California. 
"(22) CLEAR LAKE BASIN, CALIFORNIA.—^Water-related infra-
structure and resource protection, Clear Lake Basin, California. 
"(23) DESERT HOT SPRINGS, CALIFORNIA.—Resource protec-
tion and wastewater infrastructure, 
Desert Hot Springs, 
California. 
"(24) EASTERN MUNICIPAL WATER DISTRICT, CALIFORNIA.— 
Regional water-related infrastructure. Eastern Municipal Water 
District, California. 
"(25) HUNTINGTON BEACH, CALIFORNIA.—^Water supply and 
wastewater infrastructure, Huntington Beach, California. 
"(26) 
INGLEWOOD, 
CALIFORNIA.—^Water 
infrastructure, 
Inglewood, California. 
"(27) Los OSOS COMMUNITY SERVICE DISTRICT, CALIFOR-
NIA.—^Wastewater infrastructure, Los Osos Community Service 
District, California. 
"(28) NORWALK, CALIFORNIA.—^Water-related infrastructure, 
Norwalk, California. 
"(29) KEY BISCAYNE, FLORIDA.—Sanitary sewer infrastruc-
ture. Key Biscayne, Florida. 
"(30) SOUTH TAMPA, FLORIDA.—Water supply and aquifer 
storage and recovery infrastructure, South Tampa, Florida. 
"(31) FORT WAYNE, INDIANA.—Combined sewer overflow 
infrastructure and wetlands protection. Fort Wayne, Indiana. 
"(32) INDIANAPOLIS, INDIANA.—Combined sewer overflow 
infrastructure, Indianapolis, Indiana. 
"(33) ST. CHARLES, ST. BERNARD, AND PLAQUEMINES PAR-
ISHES, LOUISIANA.—^Water and wastewater infrastructure, St. 
Charles, St. Bernard, and Plaquemines Parishes, Louisiana. 
"(34) ST. JOHN THE BAPTIST AND ST. JAMES PARISHES, LOUISI-
ANA.—^Water and sewer improvements, St. John the Baptist 
and St. James Parishes, Louisiana. 
"(35) UNION COUNTY, NORTH CAROLINA.—^Water infrastruc-
ture. Union County, North Carolina. 
114 STAT. 2763A-220 PUBLIC LAW 106-554—APPENDIX D 
"(36) HOOD RIVER, OREGON.—Water transmission infra-
structure, Hood River, Oregon. 
"(37) MEDFORD, OREGON.—Sewer collection infrastructure, 
Medford, Oregon. 
"(38) 
PORTLAND, 
OREGON.—Water 
infrastructure 
and 
resource protection, Portland, Oregon. 
"(39) COUDERSPORT, PENNSYLVANIA.—Sewer system exten-
sions and improvements, Coudersport, Pennsylvania. 
"(40) PARK CITY, UTAH.—Water supply infrastructure. Park 
City, Utah.". 
(b) AUTHORIZATION OF APPROPRIATIONS FOR TECHNICAL, PLAN-
NING, AND DESIGN ASSISTANCE.—Section 219(d) of the Water 
Resources Development Act of 1992 (106 Stat. 4836) is amended 
by striking "$5,000,000" and inserting "$30,000,000". 
(c) MODIFICATION OF AUTHORIZATIONS FOR ENVIRONMENTAL 
PROJECTS.—Section 219 of the Water Resources Development Act 
of 1992 (106 Stat. 4835; 106 Stat. 3757; 113 Stat. 334) is amended— 
(1) in subsection (e)(6) by striking "$20,000,000" and insert-
ing "$30,000,000"; 
(2) in subsection (f)(4) by striking "$15,000,000" and insert-
ing "$35,000,000"; 
(3) in subsection (f)(21) by striking "$10,000,000" and 
inserting "$20,000,000"; 
(4) in subsection (f )(25) by striking "$5,000,000" and insert-
ing "$15,000,000"; 
(5) in subsection (f)(30) by striking "$10,000,000" and 
inserting "$20,000,000"; 
(6) in subsection (f)(43) by striking "$15,000,000" and 
inserting "$35,000,000". 
(d) 
ADDITIONAL 
ASSISTANCE 
FOR 
CRITICAL 
RESOURCE 
PROJECTS.—Section 219(f) of the Water Resources Development 
Act of 1992 (106 Stat. 4835; 113 Stat. 335) is amended by adding 
at the end the following: 
"(45) WASHINGTON, D.C, AND MARYLAND.—$15,000,000 for 
the project described in subsection (c)(1), modified to include 
measures to eliminate or control combined sewer overflows 
in the Anacostia River watershed. 
"(46) 
DUCK RIVER, CULLMAN, ALABAMA.—$5,000,000 
for 
water supply infrastructure. Duck River, Cullman, Alabama. 
"(47) UNION COUNTY, ARKANSAS.—$52,000,000 for water 
supply infrastructure, including facilities for withdrawal, treat-
ment, and distribution. Union County, Arkansas. 
"(48) CAMBRIA, CALIFORNIA.—$10,300,000 for desalination 
infrastructure, Cambria, California. 
"(49) Los ANGELES HARBOR/TERMINAL ISLAND, CALIFOR-
NIA.—$6,500,000 for wastewater recycling infrastructure, Los 
Angeles Harbor/Terminal Island, California. 
"(50) 
NORTH VALLEY REGION, LANCASTER, CALIFORNIA.— 
$14,500,000 for water infrastructure, North Valley Region, Lan-
caster, California. 
"(51) SAN DIEGO COUNTY, CALIFORNIA.—$10,000,000 for 
water-related infrastructure, San Diego County, California. 
"(52) SOUTH PERRIS, CALIFORNIA.—$25,000,000 for water 
supply desalination infrastructure. South Perris, California. 
"(53) AURORA, ILLINOIS.—$8,000,000 for wastewater infra-
structure to reduce or eliminate combined sewer overflows, 
Aurora, Illinois. 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-221 
"(54) COOK 
COUNTY, ILLINOIS.—$35,000,000 for water-
related infrastructure and resource protection and development, 
Cook County, Illinois. 
"(55) 
MADISON 
AND 
ST. 
GLAIR 
COUNTIES, 
ILLINOIS.— 
$10,000,000 for water and wastewater assistance, Madison and 
St. Clair Counties, Illinois. 
"(56) IBERIA PARISH, LOUISIANA.—$5,000,000 for water and 
wastewater infrastructure, Iberia Parish, Louisiana. 
"(57) 
KENNER, LOUISIANA.—$5,000,000 for 
wastewater 
infrastructure, Kenner, Louisiana. 
"(58) BENTON HARBOR, MICHIGAN.—$1,500,000 for water-
related infrastructure, City of Benton Harbor, Michigan. 
"(59) GENESEE COUNTY, MICHIGAN.—$6,700,000 for waste-
water infrastructure assistance to reduce or eliminate sewer 
overflows, Genesee County, Michigan. 
"(60) NEGAUNEE, MICHIGAN.—$10,000,000 for wastewater 
infrastructure assistance. City of Negaunee, Michigan. 
"(61) 
GARRISON AND KATHIO TOWNSHIP, 
MINNESOTA.— 
$11,000,000 for a wastewater infrastructure project for the 
city of Garrison and Kathio Township, Minnesota. 
"(62) NEWTON, NEW JERSEY.—$7,000,000 for water filtration 
infrastructure, Newton, New Jersey. 
"(63) LIVERPOOL, NEW YORK.—$2,000,000 for water infra-
structure, including a pump station, Liverpool, New York. 
"(64) 
STANLY COUNTY, NORTH CAROLINA.—$8,900,000 
for 
wastewater infrastructure, Stanly County, North Carolina. 
"(65) 
YUKON, 
OKLAHOMA.—$5,500,000 for water-related 
infrastructure, including wells, booster stations, storage tanks, 
and transmission lines, Yukon, Oklahoma. 
"(66) ALLEGHENY COUNTY, PENNSYLVANIA.—$20,000,000 for 
water-related environmental infrastructure, Allegheny County, 
Pennsylvania. 
"(67) 
MOUNT JOY TOWNSHIP AND CONEWAGO TOWNSHIP, 
PENNSYLVANIA.—$8,300,000 for water and wastewater infra-
structure. Mount Joy Township and Conewago Township, 
Pennsylvania. 
"(68) PHOENIXVILLE BOROUGH, CHESTER COUNTY, PENNSYL-
VANIA.—$2,400,000 
for 
water 
and 
sewer 
infrastructure, 
Phoenixville Borough, Chester County, Pennsylvania. 
"(69) TiTUSVlLLE, PENNSYLVANIA.—$7,300,000 for storm 
water separation and treatment plant upgrades, Titusville, 
Pennsylvania. 
"(70) WASHINGTON, GREENE, WESTMORELAND, AND FAYETTE 
COUNTIES, PENNSYLVANIA.—$8,000,000 for water and waste-
water infrastructure, Washington, Greene, Westmoreland, and 
Fayette Counties, Pennsylvania.". 
SEC. 
109. FLORIDA KEYS WATER QUALITY IMPROVEMENTS, (a) 
IN GENERAL.—In coordination with the Florida Keys Aqueduct 
Authority, appropriate agencies of municipalities of Monroe County, 
Florida, and other appropriate public agencies of the State of Florida 
or Monroe County, the Secretary of the Army may provide technical 
and financial assistance to carry out projects for the planning, 
design, and construction of treatment works to improve water qual-
ity in the Florida Keys National Marine Sanctuary. 
(b) CRITERIA FOR PROJECTS.—Before entering into a cooperation 
agreement to provide assistance with respect to a project under 
this section, the Secretary shall ensure that— 
114 STAT. 2763A-222 
PUBLIC LAW 106-554—APPENDIX D 
(1) the non-Federal sponsor has completed adequate plan-
ning and design activities, as applicable; 
(2) the non-Federal sponsor has completed a financial plan 
identifying sources of non-Federal funding for the project; 
(3) the project complies with— 
(A) applicable growth management ordinances of Mon-
roe County, Florida; 
(B) applicable agreements between Monroe County, 
Florida, and the State of Florida to manage growth in 
Monroe County, Florida; and 
(C) applicable water quality standards; and 
(4) the project is consistent with the master wastewater 
and storm water plans for Monroe County, Florida. 
(c) CONSIDERATION.—In selecting projects under subsection (a), 
the Secretary shall consider whether a project will have substantial 
water quality benefits relative to other projects under consideration. 
(d) CONSULTATION.—In carrying out this section, the Secretary 
shall consult with— 
(1) the Water Quality Steering Committee established 
under section 8(d)(2)(A) of the Florida Keys National Marine 
Sanctuary and Protection Act (106 Stat. 5054); 
(2) the South Florida Ecosystem Restoration Task Force 
established by section 528(f) of the Water Resources Develop-
ment Act of 1996 (110 Stat. 3771-3773); 
(3) the Commission on the Everglades established by execu-
tive order of the Grovemor of the State of Florida; and 
(4) other appropriate State and local government officials. 
(e) NON-FEDERAL SHARE.— 
(1) IN GENERAL.—The non-Federal share of the cost of 
a project carried out under this section shall be 35 percent. 
(2) CREDIT.— 
(A) IN GENERAL.—The Secretary may provide the non-
Federal 
interest 
credit 
toward 
cash 
contributions 
required— 
(i) before and during the construction of the 
project, for the costs of planning, engineering, and 
design, and for the construction management work 
that is performed by the non-Federal interest and that 
the Secretary determines is necessary to implement 
the project; and 
(ii) during the construction of the project, for the 
construction that the non-Federal interest carries out 
on behalf of the Secretary and that the Secretary deter-
mines is necessary to carry out the project. 
(B) TREATMENT OF CREDIT BETWEEN PROJECTS.—^Any 
credit provided under this paragraph may be carried over 
between authorized projects. 
(f) AUTHORIZATION OF APPROPRL\TIONS.—There is authorized 
to be appropriated to carry out this section $100,000,000. Such 
sums shall remain available until expended. 
SEC. 
110. SAN GABRIEL BASIN, CALIFORNIA, (a) SAN GABRIEL 
BASIN RESTORATION.— 
(1) ESTABLISHMENT OF FUND.—There shall be established 
within the Treasury of the United States an interest bearing 
account to be known as the San Gabriel Basin Restoration 
Fund (in this section referred to as the "Restoration Fund"). 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-223 
(2) ADMINISTRATION OF FUND.—The Restoration Fund shall 
be administered by the Secretary of the Army, in cooperation 
with the San Gabriel Basin Water Quality Authority or its 
successor agency. 
(3) PURPOSES OF FUND.— 
(A) IN GENERAL.—Subject to subparagraph (B), the 
amounts in the Restoration Fund, including interest 
accrued, shall be utilized by the Secretary— 
(i) to design and construct water quality projects 
to be administered by the San Gabriel Basin Water 
Quality Authority and the Central Basin Water Quality 
Project to be administered by the Central Basin 
Municipal Water District; and 
(ii) to operate and maintain any project constructed 
under this section for such period as the Secretary 
determines, but not to exceed 10 years, following the 
initial date of operation of the project. 
(B) COST-SHARING LIMITATION.— 
(i) IN GENERAL.—The Secretary may not obligate 
any funds appropriated to the Restoration Fund in 
a fiscal year until the Secretary has deposited in the 
Fund an amount provided by non-Federal interests 
sufficient to ensure that at least 35 percent of any 
funds obligated by the Secretary are from funds pro-
vided to the Secretary by the non-Federal interests. 
(ii) 
NON-FEDERAL 
RESPONSIBILITY.—The 
San 
Gabriel Basin Water Quality Authority shall be respon-
sible for providing the non-Federal amount required 
by clause (i). The State of California, local government 
agencies, and private entities may provide all or any 
portion of such amount. 
(b) COMPLIANCE WITH APPLICABLE LAW.—In carrying out 
the 
activities described in this section, the Secretary shall comply with 
any applicable Federal and State laws. 
(c) RELATIONSHIP TO OTHER ACTIVITIES.—Nothing in this sec-
tion shall be construed to affect other Federal or State authorities 
that are being used or may be used to facilitate the cleanup and 
protection of the San Gabriel and Central groundwater basins. 
In carrying out the activities described in this section, the Secretary 
shall integrate such activities with ongoing Federal and State 
projects and activities. None of the funds made available for such 
activities pursuant to this section shall be counted against any 
Federal authorization ceiling established for any previously author-
ized Federal projects or activities. 
(d) AUTHORIZATION OF APPROPRL\TIONS.— 
(1) IN GENERAL.—^There is authorized to be appropriated 
to the Restoration Fund established under subsection (a) 
$85,000,000. Such funds shall remain available imtil expended. 
(2) SET-ASIDE.—Of the amounts appropriated under para-
graph (1), no more than $10,000,000 shall be available to carry 
out the Central Basin Water Quality Project. 
(e) ADJUSTMENT.—Of the $25,000,000 made available for San 
Gabriel Basin Groundwater Restoration, California, under the head-
ing "Construction, General" in title I of the Energy and Water 
Development Appropriations Act, 2001— 
(1) $2,000,000 shall be available only for studies and other 
investigative activities and planning and design of projects 
114 STAT. 2763A-224 
PUBLIC LAW 106-554—APPENDIX D 
determined by the Secretary to offer a long-term solution to 
the problem of groundwater contamination caused by per-
chlorates at sites located in the city of Santa Clarita, California; 
and 
(2) $23,000,000 shall be deposited in the Restoration Fund, 
of which $4,000,000 shall be used for remediation in the Central 
Basin, California. 
SEC. 111. PERCHLORATE. (a) IN GENERAL.—The Secretary of 
the Army, in cooperation with Federal, State, and local government 
agencies, may participate in studies and other investigative activi-
ties and in the planning and design of projects determined by 
the Secretary to offer a long-term solution to the problem of ground-
water contamination caused by perchlorates. 
(b) INVESTIGATIONS AND PROJECTS.— 
(1) BOSQUE AND LEON RIVERS.—The Secretary, in coordina-
tion with other Federal agencies and the Brazos River Author-
ity, shall participate under subsection (a) in investigations and 
projects in the Bosque and Leon Rivers watersheds in Texas 
to assess the impact of the perchlorate associated with the 
former Naval "Weapons Industrial Reserve Plant" at McGregor, 
Texas. 
(2) CADDO LAKE.—^The Secretary, in coordination with other 
Federal agencies and the Northeast Texas Municipal Water 
District, shall participate under subsection (a) in investigations 
and projects relating to perchlorate contamination in Caddo 
Lake, Texas. 
(3) 
EASTERN 
SANTA CLARA BASIN.—The Secretary, in 
coordination with other Federal, State, and local government 
agencies, shall participate under subsection (a) in investigations 
and projects related to sites that are sources of perchlorates 
and that are located in the city of Santa Clarita, California. 
(c) AUTHORIZATION OF APPROPRIATIONS.—For the purposes of 
carrying out this section, there is authorized to be appropriated 
to the Secretary $25,000,000, of which not to exceed $8,000,000 
shall be available to carry out subsection (b)(1), not to exceed 
$3,000,000 shall be available to carry out subsection (b)(2), and 
not to exceed $7,000,000 shall be available to carry out subsection 
(b)(3). 
SEC. 112. WET WEATHER WATER QUALITY, (a) COMBINED SEWER 
OVERFLOWS.—Section 402 of the Federal Water Pollution Control 
Act (33 U.S.C. 1342) is amended by adding at the end the following: 
"(q) COMBINED SEWER OVERFLOWS.— 
"(1) REQUIREMENT FOR PERMITS, ORDERS, AND DECREES.— 
Each permit, order, or decree issued pursuant to this Act after 
the date of enactment of this subsection for a discharge from 
a municipal combined storm and sanitary sewer shall conform 
to the Combined Sewer Overflow Control Policy signed by the 
Administrator on April 11, 1994 (in this subsection referred 
to as the *CSO control policy'). 
"(2) WATER QUALITY AND DESIGNATED USE REVIEW GUID-
ANCE.—Not later than July 31, 2001, and after providing notice 
and opportunity for public comment, the Administrator shall 
issue guidance to facilitate the conduct of water quality and 
designated use reviews for municipal combined sewer overflow 
receiving waters. 
"(3) REPORT.—Not later than September 1, 2001, the 
Administrator shall transmit to Congress a report on the 
PUBLIC LAW 106-55^^^-APPENDIX D 
114 STAT. 2763A-225 
progress made by the Environmental Protection Agency, States, 
and municipalities in implementing and enforcing the CSO 
control policy.". 
(b) WET WEATHER PILOT PROGRAM.—^Title I of the 
Federal 
Water Pollution Control Act (33 U.S.C. 1251 et seq.) is amended 
by adding at the end the following: 
"SEC. 
1
2
1
. 
WET 
WEATHER 
WATERSHED 
PH^OT 
PROJECTS. 
"(a) IN GENERAL.—^The Administrator, in coordination with the 
States, may provide technical assistance and grants for treatment 
works to carry out pilot projects relating to the following areas 
of wet weather discharge control: 
"(1) 
WATERSHED MANAGEMENT OF WET WEATHER DIS-
CHARGES.—^The management of municipal combined sewer over-
flows, sanitary sewer overflows, and stormwater discharges, 
on an integrated watershed or subwatershed basis for the pur-
pose of demonstrating the effectiveness of a unified wet weather 
approach. 
"(2) STORMWATER BEST MANAGEMENT PRACTICES.—The con-
trol of pollutants from municipal separate storm sewer systems 
for the purpose of demonstrating and determining controls that 
are cost-effective and that use innovative technologies in reduc-
ing such pollutants from stormwater discharges. 
"(b) ADMINISTRATION.—The Administrator, in coordination with 
the States, shall provide municipalities participating in a pilot 
project under this section the ability to engage in innovative prac-
tices, including the ability to unify separate wet weather control 
efforts under a single permit. 
"(c) FUNDING.— 
"(1) IN GENERAL.—There is authorized to be appropriated 
to carry out this section $10,000,000 for fiscal year 2002, 
$15,000,000 for fiscal year 2003, and $20,000,000 for fiscal 
year 2004. Such funds shall remain available until expended. 
"(2) STORMWATER.—The Administrator shall make avail-
able not less than 20 percent of amounts appropriated for 
a fiscal year pursuant to this subsection to carry out the pur-
poses of subsection (a)(2). 
"(3) ADMINISTRATIVE EXPENSES.—The Administrator may 
retain not to exceed 4 percent of any amounts appropriated 
for a fiscal year pursuant to this subsection for the reasonable 
and necessary costs of administering this section. 
"(d) REPORT TO CONGRESS.—Not later than 5 years after the 
date of enactment of this section, the Administrator shall transmit 
to Congress a report on the results of the pilot projects conducted 
under this section and their possible application nationwide.". 
(c) SEWER OVERFLOW CONTROL GRANTS.—Title II of the Federal 
Water Pollution Control Act (33 U.S.C. 1342 et seq.) is amended 
by adding at the end the following: 
"SEC. 
221. 
SEWER 
OVERFLOW 
CONTROL 
GRANTS. 
"(a) IN GENERAL.—In any fiscal year in which the Administrator 
has available for obligation at least $1,350,000,000 for the purposes 
of section 601— 
"(1) the Administrator may make grants to States for the 
purpose of providing grants to a municipality or municipal 
entity for planning, design, and construction of treatment works 
to intercept, transport, control, or treat municipal combined 
sewer overflows and sanitary sewer overflows; and 
114 STAT. 2763A-226 
PUBLIC LAW 106-554—APPENDIX D 
"(2) subject to subsection (g), the Administrator may make 
a direct grant to a municipality or municipal entity for the 
purposes described in paragraph (1). 
"(b) PRIORITIZATION.—In selecting from among municipalities 
applying for grants under subsection (a), a State or the Adminis-
trator shall give priority to an applicant that— 
"(1) is a municipality that is a financially distressed 
community under subsection (c); 
"(2) has implemented or is complying with an implementa-
tion schedule for the nine minimum controls specified in the 
CSO control policy referred to in section 402(q)(l) and has 
begun implementing a long-term municipal combined sewer 
overflow control plan or a separate sanitary sewer overflow 
control plan; 
"(3) is requesting a grant for a project that is on a State's 
intended use plan pursuant to section 606(c); or 
"(4) is an Alaska Native Village. 
"(c) FINANCIALLY DISTRESSED COMMUNITY.— 
"(1) DEFINITION.—In subsection (b), the term 'financially 
distressed community' means a community that meets afford-
ability criteria established by the State in which the community 
is located, if such criteria are developed after public review 
and comment. 
"(2) CONSIDERATION OF IMPACT ON WATER AND SEWER 
RATES.—In determining if a community is a distressed commu-
nity for the purposes of subsection (b), the State shall consider, 
among other factors, the extent to which the rate of growth 
of a community's tax base has been historically slow such 
that implementing a plan described in subsection (b)(2) would 
result in a significant increase in any water or sewer rate 
charged by the community's publicly owned wastewater treat-
ment facility. 
"(3) INFORMATION TO ASSIST STATES.—The Administrator 
may publish information to assist States in establishing afford-
ability criteria under paragraph (1). 
"(d) COST-SHARING.—The Federal share of the cost of activities 
carried out using amounts from a grant made under subsection 
(a) shall be not less than 55 percent of the cost. The non-Federal 
share of the cost may include, in any amount, public and private 
funds and in-kind services, and may include, notwithstanding sec-
tion 603(h), financial assistance, including loans, from a State water 
pollution control revolving fund. 
"(e) ADMINISTRATIVE REPORTING REQUIREMENTS.—If a project 
receives grant assistance under subsection (a) and loan assistance 
from a State water pollution control revolving fund and the loan 
assistance is for 15 percent or more of the cost of the project, 
the project may be administered in accordance with State water 
pollution control revolving fund administrative reporting require-
ments for the purposes of streamlining such requirements. 
"(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section $750,000,000 for each 
of fiscal years 2002 and 2003. Such sums shall remain available 
until expended. 
"(g) ALLOCATION OF FUNDS.— 
"(1) FISCAL YEAR 2002.—Subject to subsection (h), the 
Administrator shall use the amounts appropriated to carry 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-227 
out this section for fiscal year 2002 for making grants to munici-
palities and municipal entities under subsection (a)(2), in 
accordance with the criteria set forth in subsection (b). 
"(2) FISCAL YEAR 2003.—Subject to subsection (h), the 
Administrator shall use the amounts appropriated to carry 
out this section for fiscal year 2003 as follows: 
"(A) Not to exceed $250,000,000 for making grants 
to municipalities and municipal entities under subsection 
(a)(2), in accordance with the criteria set forth in subsection 
(b). 
"(B) All remaining amounts for making grants to States 
under subsection (a)(1), in accordance with a formula to 
be established by the Administrator, after providing notice 
and an opportunity for public comment, that allocates to 
each State a proportional share of such amounts based 
on the total needs of the State for municipal combined 
sewer overflow controls and sanitary sewer overflow con-
trols identified in the most recent survey conducted pursu-
ant to section 516(b)(1). 
"(h) ADMINISTRATIVE EXPENSES.—Of the amounts appropriated 
to carry out this section for each fiscal year— 
"(1) the Administrator may retain an amount not to exceed 
1 percent for the reasonable and necessary costs of administer-
ing this section; and 
"(2) the Administrator, or a State, may retain am amount 
not to exceed 4 percent of any grant made to a municipality 
or municipal entity under subsection (a), for the reasonable 
and necessary costs of administering the grant. 
"(i) REPORTS.—Not later than December 31, 2003, and periodi-
cally thereafter, the Administrator shall transmit to Congress a 
report containing recommended funding levels for grants under 
this section. The recommended funding levels shall be sufficient 
to ensure the continued expeditious implementation of municipal 
combined sewer overflow and sanitary sewer overflow controls 
nationwide.". 
(d) INFORMATION ON C S O S AND S S O S . — 
(1) REPORT TO CONGRESS.—Not later than 3 years after 
the date of enactment of this Act, the Administrator of the 
Environmental Protection Agency shall transmit to Congress 
a report summarizing— 
(A) the extent of the human health and environmental 
impacts caused by municipal combined sewer overflows 
and sanitary sewer overflows, including the location of 
discharges causing such impacts, the volume of pollutants 
discharged, and the constituents discharged; 
(B) the resources spent by municipalities to address 
these impacts; and 
(C) an evaluation of the technologies used by munici-
palities to address these impacts. 
(2) TECHNOLOGY CLEARINGHOUSE.—After transmitting a 
report under paragraph (1), the Administrator shall maintain 
a clearinghouse of cost-effective and efficient technologies for 
addressing human health and environmental impacts due to 
municipal combined sewer overflows and sanitary sewer over-
flows. 
114 STAT. 2763A-228 
PUBLIC LAW 106-554—APPENDIX D 
SEC. 113. FISH PASSAGE DEVICES AT NEW SAVANNAH BLUFF 
LOCK AND DAM, SOUTH CAROLINA. Section 348(1)(2) of the Water 
Resources Development Act of 2000 is amended— 
(1) in subparagraph (A), by striking "Dam, at Federal 
expense of an estimated $5,300,000" and inserting "Dam and 
construct appropriate fish passage devices at the Dam, at Fed-
eral expense"; and 
(2) in subparagraph (B), by striking "after repair and 
rehabilitation," and inserting "after carrying out subparagraph 
(A),". 
SEC. 
114. (a) EXTINGUISHMENT OF REVERSIONARY INTERESTS 
AND USE RESTRICTIONS.—With respect to the lands described in 
the deed described in subsection (b)— 
(1) the reversionary interests and the use restrictions relat-
ing to port or industrial purposes are extinguished; 
(2) the human habitation or other building structure use 
restriction is extinguished in each area where the elevation 
is above the standard project flood elevation; and 
(3) the use of fill material to raise areas above the standard 
project flood elevation, without increasing the risk of flooding 
in or outside of the floodplain, is authorized, except in any 
area constituting wetland for which a permit under section 
404 of the Federal Water Pollution Control Act (33 U.S.C. 
1344) would be required. 
(b) AFFECTED DEED.—The deed referred to is the deed recorded 
October 17, 1967, in book 291, page 148, Deed of Records of Umatilla 
County, Oregon, executed by the United States. 
SEC. 115. MURRIETA CREEK, CALIFORNL^. Section 101(b)(6) of 
the Water Resources Development Act of 2000 is repealed. 
SEC. 
116. PENN MINE, CALAVERAS COUNTY, CALIFORNLV. (a) 
IN GENERAL.—The Secretary of the Army shall reimburse East 
Bay Municipal Water District for the project for aquatic ecosystem 
restoration, Penn Mine, Calaveras County, California, carried out 
under section 206 of the Water Resources Development Act of 
1996 (33 U.S.C. 2330), $4,100,000 for the Federal share of costs 
incurred by East Bay Municipal Utility District for work carried 
out by East Bay Municipal Utility District for the project. Such 
amounts shall be made available within 90 days of enactment 
of this provision. 
(b) SOURCE OF FUNDING.—Reimbursement under subsection (a) 
shall be from amounts appropriated before the date of enactment 
of this Act for the project described in subsection (a). 
SEC. 117. The project for flood control, Greers Ferry Lake, 
Arkansas, authorized by the Rivers and Harbors Act of June 28, 
1938 (52 Stat. 1218), is modified to authorize the Secretary of 
the Army to construct intake facilities for the benefit of Lonoke 
and White Counties, Arkansas. 
SEC. 118. The project for flood control, Chehalis River and 
Tributaries, Washington, authorized by section 401(a) of the Water 
Resources Development Act of 1986 (100 Stat. 4126), is modified 
to authorize the Secretary of the Army to provide the non-Federal 
interest credit toward the non-Federal share of the cost of the 
project the cost of planning, design, and construction work carried 
out by the non-Federal interest before the date of execution of 
a cooperation agreement for the project if the Secretary determines 
that the work is integral to the project. 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-229 
SEC. 119. Within the funds appropriated to the National Park 
Service under the heading "Operation of the National Park System" 
in Public Law 106-291, the Secretary of the Interior shall provide 
a grant of $75,000 to the City of Ocean Beach, New York, for 
repair of facilities at the Ocean Beach Pavilion at Fire Island 
National Seashore. 
SEC. 120. The National Park Service is directed to work with 
Fort Sumter Tours, Inc., the concessionaire currently providing 
services at Fort Sumter National Monument in South Carolina, 
on an amicable solution of the current legal dispute between the 
two parties. The Director of the Service is directed to extend imme-
diately the current contract through March 15, 2001, to facilitate 
further negotiations and for 180 days if final settlement of all 
disputes is agreed to by both parties. 
SEC. 121. Title VIII—Land Conservation, Preservation, and 
Infrastructure Improvement of Public Law 106-291 is amended 
as follows: after the first dollar amount insert: ", to be derived 
from the Land and Water Conservation Fund". 
SEC. 122. GAS TO LIQUIDS. Section 301(2) of the Energy Policy 
Act of 1992 (Public Law 102-486; 42 U.S.C. 13211(2)) is amended 
by inserting ", including liquid fuels domestically produced from 
natural gas" after "natural gas". 
SEC. 124. APPALACHIAN NATIONAL SCENIC TRAIL, (a) ACQUISI-
TIONS.— 
(1) IN GENERAL.—The Secretary of the Interior shall— 
(A) negotiate agreements with landowners setting 
terms and conditions for the acquisition of parcels of land 
and interests in land totaling approximately 580 acres at 
Saddleback Mountain near Rangeley, Maine, for the benefit 
of the Appalachian National Scenic Trail; 
(B) complete the pending environmental compliance 
process for the acquisitions; and 
(C) acquire the parcels of land and interests in land 
for consideration in the amount of $4,000,000 plus closing 
costs customarily paid by the United States. 
(2) ACCEPTANCE OF DONATIONS.—The Secretary may accept 
as donations parcels of land and interests in land at Saddleback 
Mountain, in addition to those acquired by purchase under 
paragraph (1), for the benefit of the Appalachian National 
Scenic TVail. 
(b) CONVEYANCE TO THE STATE.—^The Secretary shall convey 
to the State of Maine a portion of the land and interests in land 
acquired under subsection (a) without consideration, subject to such 
terms and conditions as the Secretary and the State of Maine 
agree are necessary to ensure the protection of the Appalachian 
National Scenic Trail. 
SEC. 125. The provisions of S. 2273, as passed in the United 
States Senate on October 5, 2000 and engrossed, are hereby enacted 
into law. 
SEC. 126. Section 116(a)(1)(A) of the Illinois and Michigan 
Canal National Heritage Corridor Act of 1984 (98 Stat. 1467) is 
amended by striking "$250,000" and inserting "$1,000,000". 
SEC. 127. The provisions of S. 2885, as passed in the United 
States Senate on October 5, 2000 and engrossed, are hereby enacted 
into law. 
SEC. 128. None of the funds provided in this or any other 
Act may be used prior to July 31, 2001, to promulgate or enforce 
114 STAT. 2763A-230 
PUBLIC LAW 106-554—APPENDIX D 
a final rule to reduce during the 2000-2001 or 2001-2002 winter 
seasons the use of snowmobiles below current use patterns at 
a unit in the National Park System: Provided, That nothing in 
this section shall be interpreted as amending any requirement 
of the Clean Air Act: Provided further, That nothing in this section 
shall preclude the Secretary from taking emergency actions related 
to snowmobile use in any National Park based on authorities which 
existed to permit such emergency actions as of the date of enactment 
of this Act. 
SEC. 129. The Secretary of the Interior shall extend until March 
31, 2001, the "Extension of Standstill Agreement," entered into 
on November 22, 1999, by the United States of America and the 
holders of interests in seven campsite leases in Biscajnie Bay, 
Miami-Dade County, Florida collectively known as "Stiltsville". 
SEC. 130. The Secretary of the Interior is authorized to make 
a grant of $1,300,000 to the State of Minnesota or its political 
subdivision from funds available to the National Park Service under 
the heading "Land Acquisition and State Assistance" in Public 
Law 106-291 to cover the cost of acquisition of land in Lower 
Phalen Creek near St. Paul, Minnesota in the Mississippi National 
River and Recreation Area. 
SEC. 131. Notwithstanding any provision of law or regulation, 
funds appropriated in Public Law 106-291 for a cooperative agree-
ment for management of George Washington's Boyhood Home, Ferry 
Farm, shall be transferred to the George Washington's Fredericks-
burg Foundation, Inc. (formerly known as Kenmore Association, 
Inc.) immediately upon signing of the cooperative agreement. 
SEC. 132. During the period beginning on the date of the 
enactment of this Act and ending on June 1, 2001, funds made 
available to the Secretary of the Interior may not be used to 
pay salaries or expenses related to the issuance of a request for 
proposal related to a light rail system to service Grand Canyon 
National Park. 
SEC. 133. None of the funds in this or any other Act may 
be used by the Secretary of the Interior to remove the five-foot-
tall white cross located within the boundary of the Mojave National 
Preserve in southern California first erected in 1934 by the Veterans 
of Foreign Wars along Cima Road approximately 11 miles south 
of Interstate 15. 
SEC. 134. Section 6(g) of the Chesapeake and Ohio Canal 
Development Act (16 U.S.C. 410y-4(g)) is amended by striking 
"thirty" and inserting "40". 
SEC. 135. Funds provided in Public Law 106-291 for Federal 
land acquisition by the National Park Service in Fiscal Year 2001 
for Brand3rwine Battlefield, Ice Age National Scenic Trail, Mis-
sissippi National River and Recreation Area, Shenandoah National 
Heritage Area, Fallen Timbers Battlefield and Fort Miamis National 
Historic Site may be used for a grant to a State, local government, 
or to a land management entity for the acquisition of lands without 
regard to any restriction on the use of Federal land acquisition 
funds provided through the Land and Water Conservation Act 
of 1965. 
SEC. 136. Notwithstanding any other provision of law, in accord-
ance with title rV—^Wildland Fire Emergency Appropriations, Public 
Law 106-291, from the $35,000,000 provided for community and 
private land fire assistance, the Secretary of Agriculture, may use 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-231 
up to $9,000,000 for advance, direct lump sum payments for assist-
ance to eligible individuals, businesses, or other entities, to accom-
plish the purposes of providing assistance to non-Federal entities 
most affected by fire. To expedite such financial assistance being 
provided to eligible recipients, the lump sum payments shall not 
be subject to 7 CFR 3015, 3019, and 3052 related to the administra-
tion of Federal financial assistance. 
SEC. 137. (a) IN GENERAL.—The first section of Public Law 
91-660 (16 U.S.C. 459h) is amended— 
(1) in the first sentence, by striking "That, in" and inserting 
the following: 
"SECTION 1. GULF ISLANDS NATIONAL SEASHORE. 
"(a) ESTABLISHMENT.—In"; and 
-
(2) in the second sentence— 
(A) by redesignating paragraphs (1) through (6) as 
subparagraphs (A) through (F), respectively, and indenting 
appropriately; 
(B) by striking "The seashore shall comprise" and 
inserting the following: 
"(b) COMPOSITION.— 
"(1) IN GENERAL.—^The seashore shall comprise the areas 
described in paragraphs (2) and (3). 
"(2) AREAS INCLUDED IN BOUNDARY PLAN NUMBERED N S -
GI-7100J.—The areas described in this paragraph are": and 
(C) by adding at the end the following: 
' 
"(3) CAT ISLAND.—^Upon its acquisition by the Secretary, 
the area described in this paragraph is the parcel consisting 
of approximately 2,000 acres of land on Cat Island, Mississippi, 
as generally depicted on the map entitled 'Boundary Map, 
Gulf Islands National Seashore, Cat Island, Mississippi', num-
bered 635/80085, and dated November 9, 1999 (referred to 
in this title as the 'Cat Island Map'). 
"(4) AVAILABILITY OF MAP.—The Cat Island Map shall be 
on file and available for public inspection in the appropriate 
offices of the National Park Service.". 
(b) ACQUISITION AUTHORITY.—Section 2 of Public Law 91-660 
(16 U.S.C. 459h-l) is amended— 
(1) in the first sentence of subsection (a), by striking 
"lands," and inserting "submerged land, land,"; and 
(2) by adding at the end the following: 
"(e) ACQUISITION AUTHORITY.— 
"(1) IN GENERAL.—^The Secretary may acquire, from a will-
ing seller only— 
"(A) all land comprising the parcel described in sub-
section (b)(3) that is above the mean line of ordinary high 
tide, lying and being situated in Harrison County, Mis-
sissippi; 
"(B) an easement over the approximately 150-acre par-
cel depicted as the 'Boddie Family Tract' on the Cat Island 
Map for the purpose of implementing an agreement with 
the owners of the parcel concerning the development and 
use of the parcel; and 
"(C)(i) land and interests in land on Cat Island outside 
the 2,000-acre area depicted on the Cat Island Map; and 
"(ii) submerged land that lies within 1 mile seaward 
of Cat Island (referred to in this title as the 'buffer zone'), 
114 STAT. 2763A-232 
PUBLIC LAW 106-554—APPENDIX D 
except that submerged land owned by the State of Mis-
sissippi (or a subdivision of the State) may be acquired 
only by donation. 
"(2) ADMINISTRATION.— 
"(A) IN GENERAL.—Land and interests in land acquired 
under this subsection shall be administered by the Sec-
retary, acting through the Director of the National Park 
Service. 
"(B) BUFFER ZONE.—Nothing in this title or any other 
provision of law shall require the State of Mississippi to 
convey to the Secretary any right, title, or interest in 
or to the buffer zone as a condition for the establishment 
of the buffer zone. 
"(3) MODIFICATION OF BOUNDARY.—The boundary of the 
seashore shall be modified to reflect the acquisition of land 
under this subsection only after completion of the acquisition.". 
(c) REGULATION OF FISHING.—Section 3 of Public Law 91-660 
(16 U.S.C. 459h-2) is amended— 
(1) by inserting "(a) IN GENERAL.—" before "The Secretary"; 
and 
(2) by adding at the end the following: 
"(b) NO AUTHORITY TO REGULATE MARITIME ACTIVITIES.—Noth-
ing in this title or any other provision of law shall affect any 
right of the State of Mississippi, or give the Secretary any authority, 
to regulate maritime activities, including nonseashore fishing activi-
ties (including shrimping), in any area that, on the date of enact-
ment of this subsection, is outside the designated boundary of 
the seashore (including the buffer zone).". 
(d) AUTHORIZATION OF MANAGEMENT AGREEMENTS.—Section 5 
of Public Law 91-660 (16 U.S.C. 459h-4) is amended— 
(1) by inserting "(a) IN GENERAL.—" before "Except"; and 
(2) by adding at the end the following: 
"(b) AGREEMENTS.— 
"(1) 
IN GENERAL.—The 
Secretary 
may enter 
into 
agreements— 
"(A) with the State of Mississippi for the purposes 
of managing resources and providing law enforcement 
assistance, subject to authorization by State law, and emer-
gency services on or within any land on Cat Island and 
any water and submerged land within the buffer zone; 
and 
"(B) with the owners of the approximately 150-acre 
parcel depicted as the 'Boddie Family Tract' on the Cat 
Island Map concerning the development and use of the 
land. 
"(2) NO AUTHORITY TO ENFORCE CERTAIN REGULATIONS.— 
Nothing in this subsection authorizes the Secretary to enforce 
Federal regulations outside the land area within the designated 
boundary of the seashore.". 
(e) AUTHORIZATION OF APPROPRIATIONS.—Section 11 of Public 
Law 91-660 (16 U.S.C. 459h-10) is amended— 
(1) by inserting "(a) IN GENERAL.—" before "There"; and 
(2) by adding at the end the following: 
"(b) AUTHORIZATION FOR ACQUISITION OF LAND.—In addition 
to the funds authorized by subsection (a), there are authorized 
to be appropriated such sums as are necessary to acquire land 
and submerged land on and adjacent to Cat Island, Mississippi.". 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-233 
SEC. 138. PERCENTAGE LIMITATIONS ON FEDERAL THRIFT SAV-
INGS PLAN CONTRIBUTIONS, (a) AMENDMENTS RELATING TO F E R S . — 
(1) IN GENERAL.—Subsection (a) of section 8432 of title 
5, United States Code, is amended— 
(A) by striking "(a)" and inserting "(a)(1)"; 
(B) by striking "10 percent" and all that follows through 
"period." and inserting "the maximum percentage of such 
employee's or Member's basic pay for such pay period allow-
able under paragraph (2)."; £ind 
(C) by adding at the end the following: 
"(2) The maximum percentage allowable under this paragraph 
shall be determined in accordance with the following table: 
''In the case of a pay period beginning in flscal year: 
The maximum 
{jercenta^e 
lowable is: 
2001 
11 
2002 
12 
2003 
13 
2004 
14 
2005 
15 
2006 or thereafter 
100.". 
(2) JUSTICES 
AND JUDGES.—Paragraph (2) of section 
8440a(b) of title 5, United States Code, is amended to read 
as follows: 
"(2) The amount contributed by a justice or judge for any 
pay period shall not exceed the maximum percentage of such jus-
tice's or judge's basic pay for such pay period allowable under 
section 8440f.". 
(3) BANKRUPTCY JUDGES AND MAGISTRATES.—Paragraph (2) 
of section 8440b(b) of title 5, United States Code, is amended 
by striking "5 percent" and all that follows through "period." 
and inserting "the maximum percentage of such bankruptcy 
judge's or magistrate's basic pay for such pay period allowable 
under section 8440f.". 
(4) COURT OF FEDERAL CLAIMS JUDGES.—Paragraph (2) of 
section 8440c(b) of title 5, United States Code, is amended 
by striking "5 percent" and all that follows through "period." 
and inserting "the maximum percentage of such judge's basic 
pay for such pay period allowable under section 8440f.". 
(5) JUDGES OF THE UNITED STATES COURT OF APPEALS FOR 
VETERANS CLAIMS.—The first sentence of section 8440d(b)(2) 
of title 5, United States Code, is amended to read as follows: 
"The amount contributed by a judge of the United States Court 
of Appeals for Veterans Claims for any pay period may not 
exceed the maximum percentage of such judge's basic pay for 
such pay period allowable under section 8440f.". 
(6) MEMBERS OF THE UNIFORMED SERVICES.— 
(A) 
BASIC 
PAY.—Subparagraph 
(A) 
of 
section 
8440e(d)(l) of title 5, United States Code, is amended by 
striking "5 percent" and all that follows through "period." 
and inserting "the maximum percentage of such member's 
basic pay for such pay period allowable under section 
8440f.". 
(B) COMPENSATION.—Subparagraph (B) of section 
8440e(d)(l) of title 5, United States Code, is amended by 
striking "5 percent" and all that follows through "period." 
and inserting "the maximum percentage of such member's 
114 STAT. 2763A-234 
PUBLIC LAW 106-554—APPENDIX D 
compensation for such pay period (received under such 
section 206) allowable under section 8440f.". 
(7) MAXIMUM PERCENTAGE ALLOWABLE.— 
(A) IN GENERAL.—Title 5, United States Code, is 
amended by inserting after section 8440e the following: 
"§8440f. Maximum percentage allowable for certain partici-
pants 
"The maximum percentage allowable under this section shall 
be determined in accordance with the following table: 
"In the case of a pay period beginning in flscal year: 
The maximum 
percentage 
allowable is: 
2001 
6 
2002 
7 
2003 
8 
2004 
9 
2005 
10 
2006 or thereafter 
100.". 
(B) CONFORMING AMENDMENT.—The table of sections 
for chapter 84 of title 5, United States Code, is amended 
by inserting after the item relating to section 8440e the 
following: 
"8440f. Maximum percentage allowable for certain participants.". 
(b) AMENDMENTS RELATING TO CSRS.—Paragraph (2) of section 
8351(b) of title 5, United States Code, is amended— 
(1) by striking "(2)" and inserting "(2)(A)"; 
(2) by striking "5 percent" and all that follows through 
"period." and inserting "the maximum percentage of such 
employee's or Member's basic pay for such pay period allowable 
under subparagraph (B)."; and 
(3) by adding at the end the following: 
"(B) The maximum percentage allowable under this subpara-
graph shall be determined in accordance with the following table: 
"In the case of a pay period beginning in fiscal year: 
The maximum 
E
ercenta^e 
owable is: 
2001 
6 
2002 
7 
2003 
8 
2004 
9 
2005 
10 
2006 or thereafter 
100.". 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by this, section 
shall take effect on the date of enactment of this Act. 
(2) COORDINATION WITH ELECTION PERIODS.—The Executive 
Director shall by regulation determine the first election period 
in which elections may be made consistent with the amend-
ments made by this section. 
(3) DEFINITIONS.—For purposes of this section— 
(A) the term "election period" means a period afforded 
under section 8432(b) of title 5, United States Code; and 
(B) the term "Executive Director" has the meaning 
given such term by section 8401(13) of title 5, United 
States Code. 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-235 
SEC. 139. EXCLUSION OF ELEMENTS OF UNITED STATES SECRET 
SERVICE FROM CERTAIN ACTIVITIES. Section 7103(a)(3) of title 5, 
United States Code, is amended— 
(1) in subparagraph (F), by striking "or" at the end; 
(2) in subparagraph (G), by striking the period and insert-
ing "; or"; and 
(3) by adding at the end the following new subparagraph: 
"(H) the United States Secret Service and the United 
States Secret Service Uniformed Division.". 
SEC. 140. (a) The adjustment in rates of basic pay for the 
statutory pay systems that takes effect in fiscal year 2001 under 
sections 5303 and 5304 of title 5, United States Code, shall be 
an increase of 3.7 percent. 
(b) Funds used to carry out this section shall be paid from 
appropriations which are made to each applicable department or 
agency for salaries and expenses for fiscal year 2001. 
SEC. 
141. REPEAL OF MANDATORY SEPARATION REQUIREMENT. 
(a) IN GENERAL.—Section 8335 of title 5, United States Code, is 
amended— 
(1) by striking subsection (c); and 
(2) by redesignating subsections (d) and (e) as subsections 
(c) and (d), respectively. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Section 8339(q) 
of title 5, United States Code, is amended by striking "8335(d)" 
and inserting "8335(c)". 
SEC. 142. Section 223(a)(14) of the Juvenile Justice and Delin-
quency Prevention Act of 1974 (42 U.S.C. 5633(a)(14) as amended, 
is hereby amended by inserting after the phrase "twenty-four hours" 
the following new phrase: "(except in the case of Alaska where 
such time limit may be forty-eight hours in fiscal years 2000 through 
2002)". 
SEC. 143. (a) Section 336 of the Communications Act of 1934 
(47 U.S.C. 336) is amended— 
(1) by redesignating subsection (h) as subsection (i); and 
(2) by inserting after subsection (g) the following: 
"(h)(1) Within 60 days after receiving a request (made in such 
form and manner and containing such information as the Commis-
sion may require) under this subsection from a low-power television 
station to which this subsection applies, the Commission shall 
authorize the licensee or permittee of that station to provide digital 
data service subject to the requirements of this subsection as a 
pilot project to demonstrate the feasibility of using low-power tele-
vision stations to provide high-speed wireless digital data service, 
including Internet access to unserved areas. 
"(2) The low-power television stations to which this sub-
section applies are as follows: 
"(A) KHLM-LP, Houston, Texas. 
"(B) WTAM-LP, Tampa, Florida. 
"(C) WWRJ-LP, Jacksonville, Florida. 
"(D) WVBG-LP, Albany, New York. 
"(E) KHHI-LP, Honolulu, Hawaii. 
"(F) KPHE-LP (K19DD), Phoenix, Arizona. 
"(G) K34FI, Bozeman, Montana. 
"(H) K65GZ, Bozeman, Montana. 
"(I) WXOB-LP, Richmond, Virginia. 
"(J) WIIW-LP, Nashville, Tennessee. 
114 STAT. 2763A-236 
PUBLIC LAW 106-554~APPENDIX D 
"(K) A station and repeaters to be determined by the 
Federal Communications Commission for the sole purpose 
of providing service to communities in the Kenai Peninsula 
Borough and Matanuska Susitna Borough. 
"(L) WSPY-LP, Piano, Illinois. 
"(M) W24AJ, Aurora, Illinois. 
"(3) Notwithstanding any requirement of section 553 of 
title 5, United States Code, the Commission shall promulgate 
regulations establishing the procedures, consistent with the 
requirements of paragraphs (4) and (5), governing the pilot 
projects for the provision of digital data services by certain 
low power television licensees within 120 days after the date 
of enactment of LPTV Digital Data Services Act. The regula-
tions shall set forth— 
"(A) requirements as to the form, manner, and informa-
tion required for submitting requests to the Commission 
to provide digital data service as a pilot project; 
"(B) procedures for testing interference to digital tele-
vision receivers caused by any pilot project station or 
remote transmitter; 
"(C) procedures for terminating any pilot project station 
or remote transmitter or both that causes interference to 
any analog or digital full-power television stations, class 
A television station, television translators or any other 
users of the core television band; 
"(D) specifications for reports to be filed quarterly by 
each low power television licensee participating in a pilot 
project; 
"(E) procedures by which a low power television 
licensee participating in a pilot project shall notify tele-
vision broadcast stations in the same market upon 
commencement of digital data services and for ongoing 
coordination with local broadcasters during the test period; 
and 
"(F) procedures for the receipt and review of inter-
ference complaints on an expedited basis consistent with 
paragraph (5)(D). 
"(4) A low-power television station to which this subsection 
applies may not provide digital data service unless— 
"(A) the provision of that service, including any remote 
return-path transmission in the case of 2-way digital data 
service, does not cause any interference in violation of 
the Commission's existing rules, regarding interference 
caused by low power television stations to full-service ana-
log or digital television stations, class A television stations, 
or television translator stations; and 
"(B) the station complies with the Commission's regula-
tions governing safety, environmental, and sound engineer-
ing practices, and any other Commission regulation under 
paragraph (3) governing pilot program operations. 
"(5)(A) The Commission may limit the provision of digital 
data service by a low-power television station to which this 
subsection applies if the Commission finds that— 
"(i) the provision of 2-way digital data service by that 
station causes any interference that cannot otherwise be 
remedied; or 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-237 
"(ii) the provision of 1-way digital data service by that 
station causes any interference. 
"(B) The Commission shall grant any such station, upon 
application (made in such form and manner and containing 
such information as the Commission may require) by the 
licensee or permittee of that station, authority to move the 
station to another location, to modify its facilities to operate 
on a different channel, or to use booster or auxiliary transmit-
ting locations, if the grant of authority will not cause inter-
ference to the allowable or protected service areas of full service 
digital television 
stations. National Television 
Standards 
Committee assignments, or television translator stations, and 
provided, however, no such authority shall be granted unless 
it is consistent with existing Commission regulations relating 
to the movement, modification, and use of non-class A low 
power television transmission facilities in order— 
"(i) to operate within television channels 2 through 
51, inclusive; or 
"(ii) to demonstrate the utility of low-power television 
stations to provide high-speed 2-way wireless digital data 
service. 
"(C) The Commission shall require quarterly reports from 
each station authorized to provide digital data services under 
this subsection that include— 
"(i) information on the station's experience with inter-
ference complaints and the resolution thereof; 
"(ii) information on the station's market success in 
providing digital data service; and 
"(iii) such other information as the Commission may 
require in order to administer this subsection. 
"(D) The Commission shall resolve any complaints of inter-
ference with television reception caused by any station provid-
ing digital data service authorized under this subsection within 
60 days after the complaint is received by the Commission. 
"(6) The Commission shall assess and collect from any 
low-power television station authorized to provide digital data 
service under this subsection an annual fee or other schedule 
or method of payment comparable to any fee imposed under 
the authority of this Act on providers of similar services. 
Amounts received by the Commission under this paragraph 
may be retained by the Commission as an offsetting collection 
to the extent necessary to cover the costs of developing and 
implementing the pilot program authorized by this subsection, 
and regulating and supervising the provision of digital data 
service by low-power television stations under this subsection. 
Amounts received by the Commission under this paragraph 
in excess of any amount retained under the preceding sentence 
shall be deposited in the Treasury in accordance with chapter 
33 of title 31, United States Code. 
"(7) In this subsection, the term 'digital data service' 
includes— 
"(A) digitally-based interactive broadcast service; and 
"(B) wireless Internet access, without regard to— 
"(i) whether such access is— 
"(I) provided on a one-way or a two-way basis; 
"(II) portable or fixed; or 
114 STAT. 2763A-238 
PUBLIC LAW 106-554—APPENDIX D 
"(HI) connected to the Internet via a band 
allocated to Interactive Video and Data Service; 
and 
"(ii) the technology employed in delivering such 
service, including the delivery of such service via mul-
tiple transmitters at multiple locations. 
"(8) Nothing in this subsection limits the authority of the 
Commission under any other provision of law.", 
(b) The Federal Communications Commission shall submit a 
report to the Congress on June 30, 2001, and June 30, 2002, 
evaluating the utility of using low-power television stations to pro-
vide high-speed digital data service. The reports shall be based 
on the pilot projects authorized by section 336(h) of the Communica-
tions Act of 1934 (47 U.S.C. 336(h)). 
SEC. 144. (a) The Magnuson-Stevens Fishery Conservation and 
Management Act (16 U.S.C. 1801 et. seq.) is amended— 
(1) in section 303(d)(1)(A) by striking "October 1, 2000," 
and inserting "October 1, 2002,"; 
(2) in section 303(d)(5) by striking "October 1, 2000," and 
inserting "October 1, 2002,"; 
(3) in section 407(b) by striking "October 1, 2000," and 
inserting "October 1, 2002,"; and 
(4) in section 407(c)(1) by striking "October 1, 2000," and 
inserting "October 1, 2002,". 
(b) Notwithstanding sections 303(d)(1)(A) and 303(d)(1)(B) of 
the Magnuson-Stevens Fishery Conservation and Management Act, 
as amended by this section, the Pacific Fishery Management Council 
may recommend and the Secretary of Commerce may approve and 
implement any fishery management plan, plan amendment, or regu-
lation, for fixed gear sablefish subject to the jurisdiction of such 
Coimcil, that— 
(1) allows the use of more than one groundfish fishing 
permit by each fishing vessel; and/or 
(2) sets cumulative trip limit periods, up to 12 months 
in any calendar year, that allow fishing vessels a reasonable 
opportunity to harvest the full amount of the associated trip 
limits. 
Notwithstanding subsection (a), the Gulf of Mexico Fishery Manage-
ment Council may develop a biological, economic, and social profile 
of any fishery under its jurisdiction that may be considered for 
management under a quota management system, including the 
benefits and consequences of the quota management systems consid-
ered. The North Pacific Fishery Management Council shall examine 
the fisheries under its jurisdiction, particularly the Gulf of Alaska 
groundfish and Bering Sea crab fisheries, to determine whether 
rationalization is needed. In particular, the North Pacific Council 
shall analyze individual fishing quotas, processor quotas, coopera-
tives, and quotas held by communities. The analysis should include 
an economic analysis of the impact of all options on communities 
and processors as well as the fishing fleets. The North Pacific 
Council shall present its analysis to the appropriations and 
authorizing committees of the Senate and House of Representatives 
in a timely manner. 
(c)(1) Public Law 101-380, as amended by section 2204 of 
chapter 2 of title II of Public Law 106-246, is amended further— 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-239 
(A) by striking the second sentence of section 5008(c) and 
inserting in lieu thereof "The Federal Advisory Committee Act 
(5 U.S.C. App. 2) shall not apply to the Institute."; 
(B) by inserting the following sentence at the end of section 
5008(e): "The administrative funds of the Institute and the 
administrative funds of the North Pacific Research Board cre-
ated under Public Law 105-83 may be used to jointly admin-
ister such programs at the discretion of the North Pacific 
Research Board."; and 
(C) in section 5006(c), as amended by this Act or any 
other Act making appropriations for fiscal year 2001, by striking 
the colon immediately before the first proviso and inserting 
in lieu thereof, "of which up to $3,000,000 may be used for 
the lease payment to the Alaska SeaLife Center under section 
5008(b)(2):". 
(2) Section 401(e) of Public Law 105-83 is amended— 
(A) in paragraph (2) by striking "and recommended for 
Secretarial approval"; 
(B) in paragraph (3)(A) by striking ", who shall be a co-
chair of the Board"; 
(C) in paragraph (3)(F) by striking ", who shall be a co-
chair of the Board"; 
(D) in paragraph (4)(A) by striking "and administer"; 
(E) in paragraph (4)(B) by striking the first sentence; 
(F) by adding at the end the following new paragraph: 
"(5) All decisions of the Board, including grant rec-
ommendations, shall be by majority vote of the members listed 
in paragraphs (3)(A), (3)(F), (3)(G), (3)(J), and (3)(N), in con-
sultation with the other members. The five voting members 
may act on behalf of the Board in all matters of administration, 
including the disposition of research funds not made available 
by this section, at any time on or after October 1, 2000."; 
and 
(G) in paragraph (3) by adding at the end the following: 
"(N) one member who shall represent fishing interests 
and shall be nominated by the Board and appointed by 
the Secretary.". 
(3) Funds made available for the construction of the NCAA 
laboratory at Lena Point shall be considered incremental funding 
for the initial phase of construction at Lena Point for site work 
and related infrastructure and systems installation. 
(4) Notwithstanding any other provision of law, funds made 
available by this Act or any other Act for the Alaska SeaLife 
Center shall be considered direct payments for all purposes of 
applicable law. 
(5) Public Law 99-5 is amended— 
(A) by inserting after section 3(e) the following: 
"(f) 
The 
United 
States 
shall 
be 
represented 
on 
the 
Transboundary Panel by seven panel members, of whom— 
"(1) one shall be an official of the United States Govern-
ment, with salmon fishery management responsibility and 
expertise; 
"(2) one shall be an official of the State of Alaska, with 
salmon fishery management responsibility and expertise; and 
"(3) five shall be individuals knowledgeable and experi-
enced in the salmon fisheries for which the Transboundary 
Panel is responsible."; 
114 STAT. 2763A-240 
PUBLIC LAW 106-554—APPENDIX D 
(B) by renumbering the remaining subsections; 
(C) in section 3(g), as redesignated by this subsection, 
by striking "The appointing authorities" and inserting in Ueu 
thereof "For the northern, southern, and Fraser River panels, 
the appointing authorities"; and 
(D) in section 3(h)(3), as redesignated by this subsection, 
by striking "northern and southern" and inserting in lieu 
thereof "northern, southern, and transboundary". 
(6) The fishery research vessel for which funds were appro-
priated in Public Law 106-113 shall be homeported in Kodiak, 
Alaska, and is hereby named "OSCAR DYSON". 
(d)(1) The Secretary of Commerce (hereinafter "the Secretary") 
shall, after notice and opportunity for public comment, adopt final 
regulations not later than May 1, 2001 to implement a fishing 
capacity reduction program for crab fisheries included in the Fishery 
Management Plan for Commercial King and Tanner Crab Fisheries 
in the Bering Sea and Aleutian Islands (hereinafter "BSAI crab 
fisheries"). In implementing the program the Secretary shall— 
(A) reduce the fishing capacity in the BSAI crab fisheries 
by permanently reducing the number of license limitation pro-
gram crab licenses; 
(B) permanently revoke all fishery licenses, fishery permits, 
area and species endorsements, and any other fishery privi-
leges, for all fisheries subject to the jurisdiction of the United 
States, issued to a vessel or vessels (or to persons on the 
basis of their operation or ownership of that vessel or vessels) 
for which a BSAI crab fisheries reduction permit is surrendered 
and revoked under section 6011(b) of title 50, Code of Federal 
Regulations; 
(C) ensure that the Secretary of Transportation is notified 
of each vessel for which a reduction permit is surrendered 
and revoked under the program, with a request that such 
Secretary permanently revoke the fishery endorsement of each 
such vessel and refuse permission to transfer any such vessel 
to a foreign flag under paragraph (5); 
(D) ensure that vessels removed from the BSAI crab fish-
eries under the program are made permanently ineligible to 
participate in any fishery worldwide, and that the owners of 
such vessels contractually agree that such vessels will operate 
only under the United States flag or be scrapped as a reduction 
vessel pursuant to section 600.1011(c) of title 50, Code of Fed-
eral Regulations; 
(E) ensure that vessels removed from the BSAI crab fish-
eries, the owners of such vessels, and the holders of fishery 
permits for such vessels forever relinquish any claim associated 
with such vessel, permits, and any catch history associated 
with such vessel or permits that could qualify such vessel, 
vessel owner, or permit holder for any present or future limited 
access system fishing permits in the United States fisheries 
based on such vessel, permits, or catch history; 
(F) not include the purchase of Norton Sound red king 
crab or Norton Sound blue king crab endorsements in the 
program, though any such endorsements associated with a 
reduction permit or vessel made ineligible or scrapped under 
the program shall also be surrendered and revoked as if surren-
dered and revoked pursuant to section 600.1011(b) of title 50, 
Code of Federal Regulations; 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-241 
(G) seek to obtain the maximum sustained reduction in 
fishing capacity at the least cost by establishing bidding proce-
dures that— 
(i) assign a bid score to each bid by dividing the price 
bid for each reduction permit by the total value of the 
crab landed in the most recent 5-year period in each crab 
fishery from 1990 through 1999 under that permit, with 
the value for each year determined by multiplying the 
average price per pound published by the State of Alaska 
in each year for each crab fishery included in such reduction 
permit by the total pounds landed in each crab fishery 
under that permit in that year; and 
(ii) use a reverse auction in which the lowest bid score 
ranks first, followed by each bid with the next lowest 
bid score, until the total bid amount of all bids equals 
a reduction cost that the next lowest bid would cause 
to exceed $100,000,000; 
(H) not waive or otherwise make inapplicable any require-
ments of the License Limitation Program applicable to such 
crab fisheries, in particular any requirements in sections 
679.4(k) and (1) of title 50, Code of Federal Regulations; 
(I) not waive or otherwise make inapplicable any catcher 
vessel sideboards implemented under the American Fisheries 
Act (AFA), except that the North Pacific Fishery Management 
Council shall recommend to the Secretary and to the State 
of Alaska, not later than February 16, 2001, and the Secretary 
and the State of Alaska shall implement as appropriate, modi-
fications to such sideboards to the extent necessary to permit 
AFA catcher vessels that remain in the crab fisheries to share 
proportionately in any increase in crab harvest opportunities 
that accrue to all remaining AFA and non-AFA catcher vessels 
if the fishing capacity reduction program required by this sec-
tion is implemented; 
(J) establish sub-amounts and repayment fees for each 
BSAI crab fishery prosecuted under a separate endorsement 
for repayment of the reduction loan, such that— 
(i) a reduction loan sub-amount is established for each 
separate BSAI crab fishery (other than Norton Sound red 
king crab or Norton Sound blue king crab) by dividing 
the total value of the crab landed in that fishery under 
all reduction permits by the total value of all crab landed 
under such permits in the BSAI crab fisheries (determined 
using the same average prices and years used under 
subparagraph (G)(i) of this paragraph), and multiplying 
the reduction loan amount by the percentage expressed 
by such ratio; and 
(ii) fish sellers who participate in the crab fishery 
under each endorsement repay the reduction loan sub-
amount attributable to that fishery; and 
(K) notwithstanding section 1111(b) of the Merchant 
Marine Act, 1936 (46 U.S.C. App. 1279flb)(4)), establish a repay-
ment period for the reduction loan of not less than 30 years. 
(2)(A) Only persons to whom a non-interim BSAI crab 
license and an area/species endorsement have been issued 
(other than persons to whom only a license and an area/species 
endorsement for Norton Sound red king crab or Norton Sound 
blue king crab have been issued) for vessels that— 
114 STAT. 2763A-242 
PUBLIC LAW 106-554—APPENDIX D 
(i) qualify under the License Limitation Program cri-
teria set forth in section 679.4 of title 50, Code of Federal 
Regulations, and 
(ii) have made at least one landing of BSAI crab in 
either 1996, 1997, or prior to February 7 in 1998, may 
submit a bid in the fishing capacity reduction program 
established by this section. 
(B) After the date of enactment of this section— 
(i) no vessel 60 feet or greater in length overall may 
participate in any BSAI crab fishery (other than for Norton 
Sound red king crab or Norton Sound blue king crab) 
unless such vessel meets the requirements set forth in 
subparagraphs (A)(i) and (A)(ii) of this paragraph; and 
(ii) no vessel between 33 and 60 feet in length overall 
may participate in any BSAI crab fishery (other than for 
Norton Sound red king crab or Norton Sound blue king 
crab) unless such vessel meets the requirements set forth 
in subparagraph (A)(i) of this paragraph. Nothing in this 
paragraph shall be construed to affect the requirements 
for participation in the fisheries for Norton Sound red 
king crab or Norton Sound blue king crab. The Secretary 
may, on a case by case basis and after notice and oppor-
tunity for public comment, waive the application of 
subparagraph (A)(ii) of this paragraph if the Secretary 
determines such waiver is necessary to implement one 
of the specific exemptions to the recent participation 
requirement that were recommended by the North Pacific 
Fishery Management Council in the record of its October, 
1998 meeting. 
(3) The fishing capacity reduction program required under 
this subsection shall be implemented under this subsection 
and sections 312(b)-(e) of the Magnuson-Stevens Fishery Con-
servation and Management Act (16 U.S.C. 1861a(b)-(e)). Section 
312 and the regulations found in Subpart L of Part 600 of 
title 50, Code of Federal Regulations, shall apply only to the 
extent such section or regulations are not inconsistent with 
or made inapplicable by the specific provisions of this sub-
section. Sections 600.1001, 600.1002, 600.1003, 600.1005, 
600.1010(b), 600.1010(d)(1), 600.1011(d), the last sentence of 
600.1011(a), and the last sentence of 600.1014(f) of such Sub-
part shall not apply to the program implemented under this 
subsection. The program shall be deemed accepted under sec-
tion 600.1004, and any time period specified in Subpart L 
that would prevent the Secretary from complying with the 
May 1, 2001 date required by this subsection shall be modified 
as appropriate to permit compliance with that date. The ref-
erendum required for the program under this subsection shall 
be a post-bidding referendum under section 600.1010 of title 
50, Code of Federal Regulations. 
(4)(A) The fishing capacity reduction program required 
under this subsection is authorized to be financed in equal 
parts through a reduction loan of $50,000,000 under sections 
1111 and 1112 of title XI of the Merchant Marine Act, 1936 
(46 U.S.C. App. 1279f and 1279g) and $50,000,000 which is 
authorized to be appropriated for the purposes of such program. 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-243 
(B) Of the $1,000,000 appropriated in section 120 of division 
A of Public Law 105-277 for the cost of a direct loan in 
the Bering Sea and Aleutian Islands crab fisheries— 
(i) $500,000 shall be for the cost of guaranteeing the 
reduction loan required under subparagraph (A) of this 
paragraph in accordance with the requirements of the Fed-
eral Credit Reform Act; and 
(ii) $500,000 shall be available to the Secretary to 
pay for the cost of implementing the fishing capacity reduc-
tion program required by this subsection. 
(C) The funds described in this subsection shall remain 
available, without fiscal year limitation, until expended. Any 
funds not used for the fishing capacity reduction program 
required by this subsection, whether due to a rejection by 
referendum or otherwise, shall be available on or after October 
15, 2002, without fiscal year limitation, for assistance to fisher-
men or fishing communities. 
(5)(A) The Secretary of Transportation shall, upon notifica-
tion and request by the Secretary, for each vessel identified 
in such notification and request— 
(i) permanently revoke any fishery endorsement issued 
to such vessel under section 12108 of title 46, United 
States Code; and 
(ii) refuse to grant the approval required under section 
9(c)(2) of the Shipping Act, 1916 (46 U.S.C. App. 808(c)(2)) 
for the placement of such vessel under foreign registry 
or the operation of such vessel under the authority of 
a foreign country. 
(B) The Secretary shall, after notice and opportunity for 
public comment, adopt final regulations not later than May 
1, 2001, to prohibit any vessel for which a reduction permit 
is surrendered and revoked under the fishing capacity reduction 
program required by this section from engaging in fishing 
activities on the high seas or under the jurisdiction of any 
foreign country while operating under the United States flag. 
(6) The purpose of this subsection is to implement a fishing 
capacity reduction program for the BSAI crab fisheries that 
results in final action to permanently remove harvesting capac-
ity from such fisheries prior to December 31, 2001. In 
implementing this subsection the Secretary is directed to use, 
to the extent practicable, information collected and maintained 
by the State of Alaska. Any requirements of the Paperwork 
Reduction Act, the Regulatory Flexibility Act, or any Executive 
order that would, in the opinion of the Secretary, prevent 
the Secretary from meeting the deadlines set forth in this 
subsection shall not apply to the fishing capacity reduction 
program or the promulgation of regulations to implement such 
program required by this subsection. Nothing in this subsection 
shall be construed to prohibit the North Pacific Fishery 
Management Council from recommending, or the Secretary 
from approving, changes to any Fishery Management Plan, 
License Limitation Program, or American Fisheries Act provi-
sions affecting catcher vessel sideboards in accordance with 
applicable law: Provided, That except as specifically provided 
in this subsection, such Council may not recommend, and the 
Secretary may not approve, any action that would have the 
114 STAT. 2763A-244 
PUBLIC LAW 106-554—APPENDIX D 
effect of increasing the number of vessels eligible to participate 
in the BSAI crab fisheries after March 1, 2001. 
(e)(1) This subsection may be referred to as the "Pribilof Islands 
Transition Act". 
(2) The purpose of this subsection is to complete the orderly 
withdrawal of the National Oceanic and Atmospheric Administra-
tion from the civil administration of the Pribilof Islands, Alaska. 
(3) Public Law 89-702 (16 U.S.C. 1151 et seq.), popularly known 
and referred to in this subsection as the Fur Seal Act of 1966, 
is amended by amending section 206 (16 U.S.C. 1166) to read 
as follows: 
"SEC. 206. (a)(1) Subject to the availability of appropriations, 
the Secretary shall provide financial assistance to any city govern-
ment, village corporation, or tribal council of St. George, Alaska, 
or St. Paul, Alaska. 
"(2) Notwithstanding any other provision of law relating to 
matching funds, funds provided by the Secretary as assistance 
under this subsection may be used by the entity as non-Federal 
matching funds under any Federal program that requires such 
matching funds. 
"(3) The Secretary may not use financial assistance authorized 
by this Act— 
"(A) to settle any debt owed to the United States; 
"(B) for administrative or overhead expenses; or 
"(C) for contributions sought or required from any person 
for costs or fees to clean up any matter that was caused or 
contributed to by such person on or after March 15, 2000. 
"(4) In providing assistance under this subsection the Secretary 
shall transfer any funds appropriated to carry out this section 
to the Secretary of the Interior, who shall obligate such funds 
through instruments and procedures that are equivalent to the 
instruments and procedures required to be used by the Bureau 
of Indian Affairs pursuant to title IV of the Indian Self-Determina-
tion and Education Assistance Act (25 U.S.C. 450 et seq.). 
"(5) In any fiscal year for which less than all of the funds 
authorized under subsection (c)(1) are appropriated, such funds 
shall be distributed under this subsection on a pro rata basis 
among the entities referred to in subsection (c)(1) in the same 
proportions in which amounts are authorized by that subsection 
for grants to those entities. 
"(b)(1) Subject to the availability of appropriations, the Sec-
retary shall provide assistance to the State of Alaska for designing, 
locating, constructing, redeveloping, permitting, or certifying solid 
waste management facilities on the Pribilof Islands to be operated 
under permits issued to the City of St. George and the City of 
St. Paul, Alaska, by the State of Alaska under section 46.03.100 
of the Alaska Statutes. 
"(2) The Secretary shall transfer any appropriations received 
under paragraph (1) to the State of Alaska for the benefit of rural 
and Native villages in Alaska for obligation under section 303 
of Public Law 104-182, except that subsection (b) of that section 
shall not apply to those funds. 
"(3) In order to be eligible to receive financial assistance under 
this subsection, not later than 180 days after the date of enactment 
of this paragraph, each of the Cities of St. Paul and St. George 
shall enter into a written agreement with the State of Alaska 
under which such City shall identify by its legal boundaries the 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-245 
tract or tracts of land that such City has selected as the site 
for its solid waste management facility and any supporting infra-
structure. 
"(c) There are authorized to be appropriated to the Secretary 
for fiscal years 2001, 2002, 2003, 2004, and 2005— 
"(1) for assistance under subsection (a) a total not to 
exceed 
"(A) $9,000,000, for grants to the City of St. Paul; 
"(B) $6,300,000, for grants to the Tanadgusix Corpora-
tion; 
"(C) $1,500,000, for grants to the St. Paul Tribal Coun-
cil; 
"(D) $6,000,000, for grants to the City of St. George; 
"(E) $4,200,000, for grants to the St. George Tanaq 
Corporation; and 
"(F) $1,000,000, for grants to the St. George Tribal 
Council; and 
"(2) for assistance under subsection (b), for fiscal years 
2001, 2002, 2003, 2004, and 2005 a total not to exceed— 
"(A) $6,500,000 for the City of St. Paul; and 
"(B) $3,500,000 for the City of St. George. 
"(d) None of the funds authorized by this section may be avail-
able for any activity a purpose of which is to influence legislation 
pending before the Congress, except that this subsection shall not 
prevent officers or employees of the United States or of its depart-
ments, agencies, or commissions from communicating to Members 
of Congress, through proper channels, requests for legislation or 
appropriations that they consider necessary for the efficient conduct 
of public business. 
"(e) Neither the United States nor any of its agencies, officers, 
or employees shall have any liability under this Act or any other 
law associated with or resulting from the designing, locating, 
contracting for, redeveloping, permitting, certifying, operating, or 
maintaining any solid waste management facility on the Pribilof 
Islands as a consequence of— 
"(1) having provided assistance to the State of Alaska under 
subsection (b); or 
"(2) providing funds for, or planning, constructing, or 
operating, any interim solid waste management facilities that 
may be required by the State of Alaska before permanent 
solid waste management facilities constructed with assistance 
provided under subsection (b) are complete and operational. 
"(f) Each entity which receives assistance authorized under 
subsection (c) shall submit an audited statement listing the expendi-
ture of that assistance to the Committee on Appropriations and 
the Committee on Resources of the House of Representatives and 
the Committee on Appropriations and the Committee on Commerce, 
Science, and Transportation of the Senate, on the last day of fiscal 
years 2002, 2004, and 2006. 
"(g) Amounts authorized under subsection (c) are intended by 
Congress to be provided in addition to the base funding appropriated 
to the National Oceanic and Atmospheric Administration in fiscal 
year 2000.". 
(4) Section 205 of the Fur Seal Act of 1966 (16 U.S.C. 1165) 
is amended— 
(A) by amending subsection (c) to read as follows: 
114 STAT. 2763A-246 
PUBLIC LAW 106-554—APPENDIX D 
"(c) Not later than 3 months after the date of the enactment 
of the Pribilof Islands Transition Act, the Secretary shall submit 
to the Committee on Commerce, Science, and Transportation of 
the Senate and the Committee on Resources of the House of Rep-
resentatives a report that includes— 
"(1) a description of all property specified in the document 
referred to in subsection (a) that has been conveyed under 
that subsection; 
"(2) a description of all Federal property specified in the 
document referred to in subsection (a) that is going to be 
conveyed under that subsection; and 
"(3) an identification of all Federal property on the Pribilof 
Islands that will be retained by the Federal Government to 
meet its responsibilities under this Act, the Convention, and 
any other applicable law."; and 
(B) by striking subsection (g). 
(5)(A)(i) The Secretary of Commerce shall not be considered 
to have any obligation to promote or otherwise provide for the 
development of any form of an economy not dependent on sealing 
on the Pribilof Islands, Alaska, including any obligation under 
section 206 of the Fur Seal Act of 1966 (16 U.S.C. 1166) or section 
3(c)(1)(A) of Public Law 104-91 (16 U.S.C. 1165 note). 
(ii) This subparagraph shall not affect any cause of action 
under section 206 of the Fur Seal Act of 1966 (16 U.S.C. 1166) 
or section 3(c)(1)(A) of Public Law 104-91 (16 U.S.C. 1165 note)— 
(I) that arose before the date of the enactment of this 
title; and 
(II) for which a judicial action is filed before the expiration 
of the 5-year period beginning on the date of the enactment 
of this title. 
(iii) Nothing in this subsection shall be construed to imply 
that— 
(I) any obligation to promote or otherwise provide for the 
development in the Pribilof Islands of any form of an economy 
not dependent on sealing was or was not established by section 
206 of the Fur Seal Act of 1966 (16 U.S.C. 1166), section 
3(c)(1)(A) of Public Law 104-91 (16 U.S.C. 1165 note), or any 
other provision of law; or 
(II) any cause of action could or could not arise with respect 
to such an obligation. 
(iv) Section 3(c)(1) of Public Law 104-91 (16 U.S.C. 1165 note) 
is amended by striking subparagraph (A) and redesignating sub-
paragraphs (B) through (D) in order as subparagraphs (A) through 
(C). 
(B)(i) Subject to paragraph (5)(B)(ii), there are terminated all 
obligations of the Secretary of Commerce and the United States 
to— 
(I) convey property under section 205 of the Fur Seal Act 
of 1966 (16 U.S.C. 1165); and 
(II) carry out cleanup activities, including assessment, 
response, remediation, and monitoring, except for postremedial 
measures such as monitoring and operation and maintenance 
activities 
related 
to National 
Oceanic and 
Atmospheric 
Administration administration of the Pribilof Islands, Alaska, 
under section 3 of Public Law 104^91 (16 U.S.C. 1165 note) 
and the Pribilof Islands Environmental Restoration Agreement 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-247 
between the National Oceanic and Atmospheric Administration 
and the State of Alaska, signed January 26, 1996. 
(ii) Paragraph (5)(B)(i) shall apply on and after the date on 
which the Secretary of Commerce certifies that— 
(I) the State of Alaska has provided written confirmation 
that no further corrective action is required at the sites and 
operable units covered by the Pribilof Islands Environmental 
Restoration Agreement between the National Oceanic and 
Atmospheric Administration and the State of Alaska, signed 
January 26, 1996, with the exception of postremedial measures, 
such as monitoring and operation and maintenance activities; 
(II) the cleanup required under section 3(a) of Public Law 
104-91 (16 U.S.C. 1165 note) is complete; 
(III) the properties specified in the document referred to 
in subsection (a) of section 205 of the Fur Seal Act of 1966 
(16 U.S.C. 1165(a)) can be unconditionally offered for convey-
ance under that section; and 
(IV) all amounts appropriated under section 206(c)(1) of 
the Fur Seal Act of 1966, as amended by this title, have 
been obligated. 
(iii)(I) On and after the date on which section 3(b)(5) of Public 
Law 104-91 (16 U.S.C. 1165 note) is repealed pursuant to subpara-
graph (C), the Secretary of Commerce may not seek or require 
financial contribution by or from any local governmental entity 
of the Pribilof Islands, any official of such an entity, or the owner 
of land on the Pribilof Islands, for cleanup costs incurred pursuant 
to section 3(a) of Public Law 104-91 (as in effect before such 
repeal), except as provided in subparagraph (B)(iii)(II). 
(II) Subparagraph (B)(iii)(I) shall not limit the authority 
of the Secretary of Commerce to seek or require financial con-
tribution from any person for costs or fees to clean up any 
matter that was caused or contributed to by such person on 
or after March 15, 2000. 
(iv) For purposes of paragraph (2)(C), the following require-
ments shall not be considered to be conditions on conveyance of 
property: 
(I) Any requirement that a potential transferee must allow 
the National Oceanic and Atmospheric Administration contin-
ued access to the property to conduct environmental monitoring 
following remediation activities. 
(II) Any requirement that a potential transferee must allow 
the National Oceanic and Atmospheric Administration access 
to the property to continue the operation, and eventual closure, 
of treatment facilities. 
(III) Any requirement that a potential transferee must 
comply with institutional controls to ensure that an environ-
mental cleanup remains protective of human health or the 
environment that do not unreasonably affect the use of the 
property. 
(IV) Valid existing rights in the property, including rights 
granted by contract, permit, right-of-way, or easement. 
(V) The terms of the documents described in subparagraph 
(D)(ii). 
(C) Effective on the date on which the Secretary of Commerce 
makes the certification described in subparagraph (b)(2), the follow-
ing provisions are repealed: 
114 STAT. 2763A-248 
PUBLIC LAW 106-554—APPENDIX D 
(i) Section 205 of the Fur Seal Act of 1966 (16 U.S.C. 
1165). 
(ii) Section 3 of Public Law 104-91 (16 U.S.C. 1165 note). 
(D)(i) Nothing in this subsection shall affect any obligation 
of the Secretary of Commerce, or of any Federal department or 
agency, under or with respect to any document described in subpara-
graph (D)(ii) or with respect to any lands subject to such a docu-
ment. 
(ii) The documents referred to in subparagraph (D)(i) are the 
following: 
(I) The Transfer of Property on the Pribilof Islands: Descrip-
tion, Terms, and Conditions, dated February 10, 1984, between 
the Secretary of Commerce and various Pribilof Island entities. 
(II) The Settlement Agreement between Tanadgusix Cor-
poration and the City of St. Paul, dated January 11, 1988, 
and approved by the Secretary of Commerce on February 23, 
1988. 
(III) 
The 
Memorandum 
of 
Understanding 
between 
Tanadgusix Corporation, Tanaq Corporation, and the Secretary 
of Commerce, dated December 22, 1976. 
(E)(i) Except as provided in subparagraph (E)(ii), the definitions 
set forth in section 101 of the Fur Seal Act of 1966 (16 U.S.C. 
1151) shall apply to this paragraph. 
(ii) For purposes of this paragraph, the term "Natives of the 
Pribilof Islands" includes the Tanadgusix Corporation, the St. 
George Tanaq Corporation, and the city governments and tribal 
councils of St. Paul and St. George, Alaska. 
(6)(A) Section 3 of Pubhc Law 104-91 (16 U.S.C. 1165 note) 
and the Fur Seal Act of 1966 (16 U.S.C. 1151 et seq.) are amended 
b y -
(i) striking "(d)" and all that follows through the heading 
for subsection (d) of section 3 of Public Law 104-91 and insert-
ing "SEC. 212."; and 
(ii) moving and redesignating such subsection so as to 
appear as section 212 of the Fur Seal Act of 1966. 
(B) Section 201 of the Fur Seal Act of 1966 (16 U.S.C. 1161) 
is amended by striking "on such Islands" and insert "on such 
property". 
(C) The Fur Seal Act of 1966 (16 U.S.C. 1151 et seq.) is 
amended by inserting before title I the following: 
"SECTION 1. This Act may be cited as the 'Fur Seal Act of 
1966'.". 
(7) Section 3 of PubUc Law 104-91 (16 U.S.C. 1165 note) 
is amended— 
(A) by striking subsection (f) and inserting the following: 
"(f)(1) There are authorized to be appropriated $10,000,000 
for each of fiscal years 2001, 2002, 2003, 2004, and 2005 for the 
purposes of carrying out this section. 
"(2) None of the funds authorized by this subsection may be 
expended for the purpose of cleaning up or remediating any land-
fills, wastes, dumps, debris, storage tanks, property, hazardous 
or unsafe conditions, or contaminants, including petroleum products 
and their derivatives, left by the Department of Defense or any 
of its components on lands on the Pribilof Islands, Alaska."; and 
(B) by adding at the end the following: 
"(g)(1) Of amounts authorized under subsection (f) for each 
of fiscal years 2001, 2002, 2003, 2004, and 2005, the Secretary 
PUBLIC LAW 106-554—APPENDDC D 
114 STAT. 2763A-249 
may provide to the State of Alaska up to $2,000,000 per fiscal 
year to capitalize a revolving fund to be used by the State for 
loans under this subsection. 
"(2) The Secretary shall require that any revolving fund estab-
lished with amounts provided under this subsection shall be used 
only to provide low-interest loans to Natives of the Pribilof Islands 
to assess, respond to, remediate, and monitor contamination from 
lead paint, asbestos, and petroleum from underground storage 
tanks. 
"(3) The definitions set forth in section 101 of the Fur Seal 
Act of 1966 (16 U.S.C. 1151) shall apply to this section, except 
that the term 'Natives of the Pribilof Islands' includes the 
Tanadgusix and Tanaq Corporations. 
"(4) Before the Secretary may provide any funds to the State 
of Alaska under this section, the State of Alaska and the Secretary 
must agree in writing that, on the last day of fiscal year 2011, 
and of each fiscal year thereafter until the full amount provided 
to the State of Alaska by the Secretary under this section has 
been repaid to the United States, the State of Alaska shall transfer 
to the Treasury of the United States monies remaining in the 
revolving fund, including principal and interest paid into the revolv-
ing fund as repayment of loans.". 
(f)(1) The President, after consultation with the Governor of 
the State of Hawaii, may designate any Northwestern Hawaiian 
Islands coral reef or coral reef ecosystem as a coral reef reserve 
to be managed by the Secretary of Commerce. 
(2) Upon the designation of a reserve under paragraph (1) 
by the President, the Secretary shall— 
(A) take action to initiate the designation of the reserve 
as a National Marine Sanctuary under sections 303 and 304 
of the National Marine Sanctuaries Act (16 U.S.C. 1433); 
(B) establish a Northwestern Hawaiian Islands Reserve 
Advisory Council under section 315 of that Act (16 U.S.C. 
1445a), the membership of which shall include at least one 
representative from Native Hawaiian groups; and 
(C) until the reserve is designated as a National Marine 
Sanctuary, manage the reserve in a manner consistent with 
the purposes and policies of that Act. 
(3) Notwithstanding any other provision of law, no closure 
areas around the Northwestern Hawaiian Islands shall become 
permanent without adequate review and comment. 
(4) The Secretary shall work with other Federal agencies and 
the Director of the National Science Foundation, to develop a coordi-
nated plan to make vessels and other resources available for con-
servation or research activities for the reserve. 
(5) If the Secretary has not designated a national marine sanc-
tuary in the Northwestern Hawaiian Islands under sections 303 
and 304 of the National Marine Sanctuaries Act (16 U.S.C. 1433, 
1434) before October 1, 2005, the Secretary shall conduct a review 
of the management of the reserve under section 304(e) of that 
Act (16 U.S.C. 1434(e)). 
(6) No later than 6 months after the date of enactment of 
this Act, the Secretary shall submit a report to the Senate Commit-
tee on Commerce, Science, and Transportation and the House of 
Representatives Committee on Resources, describing actions taken 
to implement this subsection, including costs of monitoring, enforc-
ing, and addressing marine debris, and the extent to which the 
79-194 O - 00 - 10: QL 3 Part 5 
114 STAT. 2763A-250 
PUBLIC LAW 106-554—APPENDIX D 
fiscal or other resources necessary to carry out this subsection 
are reflected in the Budget of the United States Government submit-
ted by the President under section 1104 of title 31, United States 
Code. 
(7) There are authorized to be appropriated to the Secretary 
of Commerce to carry out the provisions of this subsection such 
sums, not exceeding $4,000,000 for each of fiscal years 2001, 2002, 
2003, 2004, and 2005, as are reported under paragraph (5) to 
be reflected in the Budget of the United States Government. 
(g) Section 111(b)(1) of the Sustainable Fisheries Act (16 U.S.C. 
1855 nt) is amended by striking the last sentence and inserting, 
"There are authorized to be appropriated to carry out this subsection 
$500,000 for each fiscal year.". 
SEC. 145. (a) Section 4(b)(1) of the Department of State Special 
Agents Retirement Act of 1998 (22 U.S.C. 4044 note; PubHc Law 
105-382; 112 Stat. 3409) is amended by inserting "or participant 
who was serving as of January 1, 1997" after "employed partici-
pant". 
(b) The amendment made by this section shall take effect 
on January 1, 2001. 
SEC. 146. (a) Congress makes the following findings: 
(1) Total steel imports in 2000 will be over 2V2 times 
higher than in 1991, continuing the alarming trend of sharply 
increasing steel imports over the past decade. 
(2) Unprecedented levels of steel imports flooded the United 
States market in 1998 and 1999, causing a crisis in which 
thousands of steelworkers were laid off and six steel companies 
went bankrupt. 
(3) The domestic steel industry still has not had an oppor-
tunity to recover from the 1998-1999 steel import crisis, and 
steel imports are again causing serious injury to United States 
steel producers and workers. 
(4) Total steel imports through August 2000 are 17 percent 
higher than over the same period in 1999 and greater even 
than imports over the same period in 1998, a record year. 
(5) Steel prices continue to be depressed, with hot-rolled 
steel prices 12 percent lower in August 2000 than in the first 
quarter of 1998, and average import customs values for all 
steel products more than 15 percent lower over the same period. 
(6) The United States Government must maintain and 
fully enforce all existing relief against foreign unfair trade. 
(7) The United States steel industry is a clean, highly 
efficient industry having modernized itself at great human 
and financial cost, shedding over 330,000 jobs and investing 
more than $50,000,000,000 over the last 20 years. 
(8) Capacity utilization in the United States steel industry 
has fallen sharply since the beginning of the year and the 
market capitalization and debt ratings of the major United 
States steel firms are at precarious levels. 
(9) The Department of Commerce recently documented the 
underlying market-distorting practices and longstanding struc-
tural problems that plague the global steel trade with excess 
capacity and cause diversion of unfairly traded foreign steel 
to the United States. 
(10) The President recognized that unfair trade played 
a significant role in the devastating import surge of steel and 
recognized the need to vigorously enforce the trade laws. 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-251 
(b) Congress calls upon the President— 
(1) to take all appropriate action within his power to pro-
vide relief from injury caused by steel imports; and 
(2) to immediately request the United States International 
Trade Commission to commence £in expedited investigation for 
positive adjustment under section 201 of the Trade Act of 
1974 of such steel imports. 
SEC. 147. Section 5(b)(1) of the Act of January 2, 1951 (15 
U.S.C. 1175(b)(1); popularly known as the "Johnson Act") is amend-
ed by inserting "for a voyage or a segment of a voyage that begins 
and ends in the State of Hawaii, or" after "Except". 
SEC. 148. (a) Section 312(a)(7) of the Communications Act of 
1934 (47 U.S.C. 312(a)(7)) is amended by inserting ", other than 
a non-commercial educational broadcast station," after "use of a 
broadcasting station". 
(b) The Federal Communications Commission shall take no 
action against any non-commercial educational broadcast station 
which declines to carry a political advertisement. 
SEC. 149. The Small Business Innovation Research program, 
otherwise expiring at the end of fiscal year 2000, is authorized 
to continue in effect during fiscal year 2001. 
SEC. 150. There is hereby appropriated for payment to the 
Ricky Ray Hemophilia Relief Fimd, as provided by Public Law 
105-369, $105,000,000, of which notwithstanding any other provi-
sion of law $10,000,000 shall be for program management of the 
Health Resources and Services Administration, to remain available 
until expended. 
SEC. 151. (a) There is hereby appropriated to a separate account 
to be established in the Department of Labor for expenses of admin-
istering the Energy Employees Occupational Illness Compensation 
Act, $60,400,000, to remain available until expended: Provided, 
That the Secretary of Labor is authorized to transfer to any Execu-
tive agency with authority under the Energy Employees Occupa-
tional Illness Compensation Act, such sums as may be necessary 
in FY 2001 to carry out those authorities. 
(b) For purposes of the Balanced Budget and Emergency Deficit 
Control Act of 1985, amounts appropriated under subsection (a) 
shall be direct spending: Provided, That amounts appropriated 
annually thereafter for such administrative expenses shall be direct 
spending. 
SEC. 
152. TREATMENT OF CERTAIN CANCER HOSPITALS, (a) IN 
GENERAL.—Section 1886(d)(l)(B)(v) of the Social Security Act (42 
U.S.C. 1395ww(d)(l)(B)(v)) is amended— 
(1) in subclause (I) by striking "or" at the end; 
(2) in subclause (II) by striking the semicolon at the end 
and inserting ", or"; and 
(3) by adding at the end the following: 
"(III) a hospital that was recognized as a clinical cancer 
research center by the National Cancer Institute of the National 
Institutes of Health as of February 18, 1998, that has never 
been reimbursed for inpatient hospital services pursuant to 
a reimbursement system under a demonstration project under 
section 1814(b), that is a freestanding facility organized pri-
marily for treatment of and research on cancer and is not 
a unit of another hospital, that as of the date of the enactment 
of this subclause, is licensed for 162 acute care beds, and 
that demonstrates for the 4-year period ending on June 30, 
114 STAT. 2763A-252 PUBLIC LAW 106-554—APPENDIX D 
1999, that at least 50 percent of its total discharges have 
a principal finding of neoplastic disease, as defined in subpara-
graph (E);" and 
(b) CONFORMING AMENDMENT.—Section 1886(d)(1)(E) of the 
Social Security Act (42 U.S.C. 1395ww(d)(l)(E)) is amended by 
striking "For purposes of subparagraph (B)(v)(II)" and inserting 
"For purposes of subclauses (II) and (III) of subparagraph (B)(v)". 
(c) PAYMENT.— 
(1) APPLICATION TO COST REPORTING PERIODS.—^Any classi-
fication by reason of section 1886(d)(l)(B)(v)(III) of the Social 
Security Act (as added by subsection (a)) shall apply to 12-
month cost reporting periods beginning on or after July 1, 
1999. 
(2) BASE YEAR.—Notwithstanding the provisions of section 
1886(b)(3)(E) of such Act (42 U.S.C. 1395ww(b)(3)(E)) or other 
provisions to the contrary, the base cost reporting period for 
purposes of determining the target amount for any hospital 
classified by reason of section 1886(d)(l)(B)(v)(III) of such Act 
(as added by subsection (a)) shall be the 12-month cost reporting 
period beginning on July 1, 1995. 
(3) DEADLINE FOR PAYMENTS.—^Any payments owed to a 
hospital by reason of this subsection shall be made expedi-
tiously, but in no event later than 1 year after the date of 
the enactment of this Act. 
SEC. 153. (a) Section 4(2) of the Delta Development Act (42 
U.S.C. 3121 note; Public Law 100-460) is amended— 
(1) by inserting "Alabama," before "Arkansas"; 
(2) in paragraph (G), by striking "and" at the end; 
(3) in paragraph (H.)— 
(A) by striking "and" before "such"; and 
(B) by inserting "and" after the semicolon at the end; 
and 
(4) by adding at the end the following: 
"(I) the Alabama counties of Pickens, Greene, Sumter, 
Choctaw, Clarke, Washington, Marengo, Hale, Perry, 
Wilcox, Lowndes, Bullock, Macon, Barbour, Russell, and 
Dallas;"; 
(b) At the end of section 382A of "The Delta Regional Authority 
Act of 2000" as incorporated in this Act, insert the following: 
"(4) Notwithstanding any other provision of law, the State 
of Alabama shall be a full member of the Delta Regional Author-
ity and shall be entitled to all rights and privileges that said 
membership affords to all other participating States in the 
Delta Regional Authority.". 
SEC. 154. NORTHERN WISCONSIN. 
(a) DEFINITION OF NORTHERN WISCONSIN.—In this section, the 
term "northern Wisconsin" means the counties of Douglas, Ashland, 
Bayfield, and Iron, Wisconsin. 
(b) ESTABLISHMENT OF PROGRAM.—The Secretary of the Army 
may establish a pilot program to provide environmental assistance 
to non-Federal interests in northern Wisconsin. 
(c) FORM OF ASSISTANCE.—^Assistsince under this section may 
be in the form of design and reconstruction assistance or water-
related environmental infrastructure and resource protection and 
development projects in northern Wisconsin, including projects for 
wastewater treatment and related facilities, water supply and 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-253 
related facilities, environmental restoration, and surface water 
resource protection and development. 
(d) PUBLIC OWNEIISHIP REQUIREMENT,—The Secretary may pro-
vide assistance for a project under this section only if the project 
is publicly owned. 
(e) LOCAL COOPERATION AGREEMENT.— 
(1) IN GENERAL.—Before providing assistance under this 
section, the Secretary shall enter into a local cooperation agree-
ment with a non-Federal interest to provide for design and 
construction of the project to be carried out with the assistance. 
(2) REQUIREMENTS.—Each local cooperation agreement 
entered into under this subsection shall provide for the follow-
ing: 
(A) PLAN.—Development by the Secretary, in consulta-
tion with appropriate Federal and State officials, of a facili-
ties or restructure protection and development plan, includ-
ing appropriate engineering plans and specifications. 
(B) 
LEGAL 
AND 
INSTITUTIONAL 
STRUCTURES.— 
Establishment of such legal and institutional structures 
as are necessary to ensure the effective long-term operation 
of the project by the non-Federal interest. 
(3) COST SHARING.— 
(A) IN GENERAL.—The Federal share of project costs 
under each local cooperation agreement entered into under 
this subsection shall be 75 percent. The Federal share 
may be in the form of grants or reimbursements of project 
costs. 
(B) 
CREDIT 
FOR DESIGN 
WORK.—The non-Federal 
interest shall receive credit for the reasonable costs of 
design work completed by the non-Federal interest before 
entering into a local cooperation agreement with the Sec-
retary for a project. The credit for the design work shall 
not exceed 6 percent of the local construction costs of the 
project. 
(C) CREDIT FOR INTEREST.—In case of a delay in the 
funding of the non-Federal share of the costs of a project 
that is the subject of an agreement under this subsection, 
the non-Federal interest shall receive credit for reasonable 
interest incurred in providing the non-Federal share of 
the project's costs. 
(D) LAND, EASEMENTS, AND RIGHTS-OF-WAY CREDIT.— 
The non-Federal interest shall receive credit for land, ease-
ments, rights-of-way, and reductions toward the non-Fed-
eral share of project costs (including all reasonable costs 
associated with obtaining permits necessary for the 
construction, operation, £ind maintenance of the project 
on publicly owned or controlled land), but not to exceed 
25 percent of the total project costs. 
(E) OPERATION AND MAINTENANCE.—The non-Federal 
share of operation and maintenance costs for projects con-
structed with assistance provided under this section shall 
be 100 percent. 
(f) APPLICABILITY OF OTHER FEDERAL AND STATE LAWS.—Noth-
ing in this section waives, limits, or otherwise affects the applicabil-
ity of any provision of Federal or State law that would otherwise 
apply to a project to be carried out with assistance provided under 
this section. 
114 STAT. 2763A-254 
PUBLIC LAW 106-554—APPENDIX D 
(g) REPORT.—Not later than December 31, 2001, the Secretary 
shall transmit to Congress a report on the results of the pilot 
program carried out under this section, including recommendations 
concerning whether the program should be implemented on a 
national basis. 
(h) AUTHORIZATION OF APPROPRIATIONS.—^There is authorized 
to be appropriated to carry out this section $40,000,000. Such 
sums shall remain available imtil expended. 
TITLE II—VIETNAM EDUCATION FOUNDATION ACT OF 2000 
SEC. 201. SHORT TITLE. 
This title may be cited as the "Vietnam Education Foundation 
Act of 2000". 
SEC. 202. PURPOSES. 
The purposes of this title are the following: 
(1) To establish an international fellowship program under 
which— 
(A) Vietnamese nationals can undertake graduate and 
post-graduate level studies in the sciences (natural, phys-
ical, and environmental), mathematics, medicine, and tech-
nology (including information technology); and 
(B) United States citizens can teach in the fields speci-
fied in subparagraph (A) in appropriate Vietnamese institu-
tions. 
(2) To further the process of reconciliation between the 
United States and Vietnam and the building of a bilateral 
relationship serving the interests of both countries. 
SEC. 203. DEFINITIONS. 
In this title: 
(1) BOARD.—^The term "Board" mesins the Board of Direc-
tors of the Foundation. 
(2) FOUNDATION.—The term "Foundation" means the Viet-
nam Education Foundation established in section 204. 
(3) INSTITUTION OF HIGHER EDUCATION.—The term "institu-
tion of higher education" has the meaning given the term 
in section 101(a) of the Higher Education Act of 1965 (20 
U.S.C. 1001(a)). 
(4) UNITED STATES-VIETNAM DEBT AGREEMENT.—The term 
"United States-Vietnam debt agreement" means the Agreement 
Between the Government of the United States of America and 
the Government of the Socialist Republic of Vietnam Regarding 
the Consolidation and Rescheduling of Certain Debts Owed 
to. Guaranteed by, or Insured by the United States Government 
and the Agency for International Development, dated April 
7, 1997. 
SEC. 204. ESTABLISHMENT. 
There is established the Vietnam Education Foundation as 
an independent establishment of the executive branch under section 
104 of title 5, United States Code. 
SEC. 205. BOARD OF DIRECTORS. 
(a) IN GENERAL.—^The Foundation shall be subject to the super-
vision and direction of the Board of Directors, which shall consist 
of 13 members, as follows: 
PUBLIC LAW 106-554-APPENDIX D 
114 STAT. 2763A-255 
(1) Two members of the House of Representatives appointed 
by the Speaker of the House of Representatives, one of whom 
shall be appointed upon the recommendation of the Majority 
Leader and one of whom shall be appointed upon the rec-
ommendation of the Minority Leader, and who shall serve 
as ex officio, nonvoting members. 
(2) Two members of the Senate, appointed by the President 
pro tempore, one of whom shall be appointed upon the rec-
ommendation of the Majority Leader and one of whom shall 
be appointed upon the recommendation of the Minority Leader, 
and who shall serve as ex officio, nonvoting members. 
(3) Secretary of State. 
(4) Secretary of Education. 
(5) Secretary of Treasury. 
(6) Six members to be appointed by the President from 
among individuals in the nongovernmental sector who have 
academic excellence or experience in the fields of concentration 
specified in section 202(1)(A) or a general knowledge of Viet-
nam, not less than three of whom shall be drawn from academic 
life. 
(b) ROTATION OF MEMBERSHIP.—(1) The term of office of each 
member appointed under subsection (a)(6) shall be 3 years, except 
that of the members initially appointed under that subsection, 
two shall serve for terms of 1 year, two shall serve for terms 
of 2 years, and two shall serve for terms of 3 years. 
(2) A member of Congress appointed under subsection (a)(1) 
or (2) shall not serve as a member of the Board for more than 
a total of 6 years. 
(c) CHAIR.—The Board shall elect one of the members appointed 
under subsection (a)(6) to serve as Chair. 
(d) MEETINGS.—The Board shall meet upon the call of the 
Chair but not less frequently than twice each year. A majority 
of the voting members of the Board shall constitute a quorum. 
(e) DUTIES.—The Board shall— 
(1) select the individuals who will be eligible to serve 
as Fellows; and 
(2) provide overall supervision and direction of the Founda-
tion. 
(f) COMPENSATION.— 
(1) IN GENERAL.—Except as provided in paragraph (2), each 
member of the Board shall serve without compensation, and 
members who are officers or employees of the United States 
shall serve without compensation in addition to that received 
for their services as officers or employees of the United States. 
(2) TRAVEL EXPENSES.—The members of the Board shall 
be allowed travel expenses, including per diem in lieu of subsist-
ence, at rates authorized for employees of agencies under sub-
chapter I of chapter 57 of title 5, United States Code, while 
away from their homes or regular places of business in the 
performance of service for the Board. 
SEC. 206. FELLOWSHIP PROGRAM. 
(a) AWARD OF FELLOWSHIPS.— 
(1) IN GENERAL.—^To carry out the purposes of this title, 
the Foundation shall award fellowships to— 
(A) Vietnamese nationals to study at institutions of 
' 
higher education in the United States at graduate and 
114 STAT. 2763A-256 PUBLIC LAW 106-554—APPENDIX D 
post-graduate levels in the following fields: physical 
sciences, natural sciences, mathematics, environmental 
sciences, medicine, technology, and computer sciences; and 
(B) United States citizens to teach in Vietnam in appro-
priate Vietnamese institutions in the fields of study 
described in subparagraph (A). 
(2) 
SPECIAL 
EMPHASIS ON SCIENTIFIC AND TECHNICAL 
VOCABULARY IN ENGLISH.—^Fellowships awarded under para-
graph (1) may include funding for the study of scientific and 
technical vocabulary in English. 
(b) CRITERIA FOR SELECTION.—Fellowships under this title shall 
be awarded to persons who meet the minimum criteria established 
by the Foundation, including the following: 
(1) VIETNAMESE NATIONALS.—^Vietnamese candidates for 
fellowships shall have basic English proficiency and must have 
the ability to meet the criteria for admission into graduate 
or post-graduate programs in United States institutions of 
higher learning. 
(2) UNITED STATES CITIZEN TEACHERS.—American teaching 
candidates shall be highly competent in their fields and be 
experienced and proficient teachers. 
(c) IMPLEMENTATION.—The Foundation may provide, directly 
or by contract, for the conduct of nationwide competition for the 
purpose of selecting recipients of fellowships awarded under this 
section. 
(d) 
AUTHORITY TO AWARD FELLOWSHIPS ON A MATCHING 
BASIS.—^The Foundation may require, as a condition of the availabil-
ity of funds for the award of a fellowship under this title, that 
an institution of higher education make available funds for such 
fellowship on a matching basis. 
(e) FELLOWSHIP CONDITIONS.—^A person awarded a fellowship 
under this title may receive pa5ntnents authorized under this title 
only during such periods as the Foundation finds that the person 
is maintaining satisfactory proficiency and devoting full time to 
study or teaching, as appropriate, and is not engaging in gainful 
employment other than employment approved by the Foundation 
pursuant to regulations of the Board. 
(f) FUNDING.— 
(1) FISCAL YEAR 2001.— 
(A) AUTHORIZATION OF APPROPRIATIONS.—^There 
are 
authorized to be appropriated to the Foundation $5,000,000 
for fiscal year 2001 to carry out the activities of the Founda-
tion. 
(B) AVAILABILITY OF FUNDS.—^Amounts appropriated 
pursuant to subparagraph (A) are authorized to remain 
available until expended. 
(2) FISCAL YEAR 2002 AND SUBSEQUENT FISCAL YEARS.— 
Effective October 1, 2001, the Foundation shall utilize funds 
transferred to the Foundation under section 207. 
SEC. 207. VIETNAM DEBT REPAYMENT FUND. 
(a) ESTABLISHMENT.—Notwithstanding any other provision of 
law, there is established in the Treasury a separate account which 
shall be known as the Vietnam Debt Repayment Fund (in this 
subsection referred to as the "Fund"). 
(b) DEPOSITS.—There shall be deposited as offsetting receipts 
into the Fund all pa5mrients (including interest payments) made 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-257 
by the Socialist Republic of Vietnam under the United States-
Vietnam debt agreement. 
(c) AVAILABILITY OF THE FUNDS.— 
(1) FISCAL YEAR LIMITATION.—Beginning with fiscal year 
2002, and each subsequent fiscal year through fiscal year 2018, 
$5,000,000 of the amounts deposited into the Fund (or accrued 
interest) each fiscal year shall be available to the Foundation, 
without fiscal year limitation, under paragraph (2). 
(2) DISBURSEMENT OF FUNDS.—^The Secretary of the Treas-
ury, at least on a quarterly basis, shall transfer to the Founda-
tion amounts allotted to the Foundation under paragraph (1) 
for the purpose of carrying out its activities. 
(3) 
TRANSFER 
OF 
EXCESS 
FUNDS 
TO MISCELLANEOUS 
RECEIPTS.—Beginning with fiscal year 2002, and each subse-
quent fiscal year through fiscal year 2018, the Secretary of 
the Treasury shall withdraw from the Fund and deposit in 
the Treasury of the United States as miscellaneous receipts 
all moneys in the Fund in excess of amounts made available 
to the Foundation under paragraph (1). 
(d) ANNUAL REPORT.—^The Board shall prepare and submit 
annually to Congress statements of financial condition of the Fund, 
including the beginning balance, receipts, refunds to appropriations, 
transfers to the general fund, and the ending balance. 
SEC. 208. FOUNDATION PERSONNEL MATTERS. 
(a) APPOINTMENT BY BOARD.—^There shall be an Executive Sec-
retary of the Foundation who shall be appointed by the Board 
without regard to the provisions of title 5, United States Code, 
or any regulation thereunder, governing appointment in the 
competitive service. The Executive Director shall be the Chief 
Executive Officer of the Foundation and shall carry out the func-
tions of the Foundation subject to the supervision and direction 
of the Board. The Executive Director shall carry out such other 
functions consistent with the provisions of this title as the Board 
shall prescribe. The decision to employ or terminate an Executive 
Director shall be made by an affirmative vote of at least six of 
the nine voting members of the Board. 
(b) PROFESSIONAL STAFF.—The Executive Director shall hire 
Foundation staff on the basis of professional and nonpartisan quali-
fications. 
(c) EXPERTS AND CONSULTANTS.—^The Executive Director may 
procure temporary and intermittent services of experts and consult-
ants as are necessary to the extent authorized by section 3109 
of title 5, United States Code to carry out the purposes of the 
Foundation. 
(d) COMPENSATION.—^The Board may fix the compensation of 
the Executive Director and other personnel without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of title 
V, United States Code, relating to classification of positions and 
General Schedule pay rates, except that the rate of pay for the 
Executive Director and other personnel may not exceed the rate 
payable for level V of the Executive Schedule under section 5316 
of such title. 
SEC. 209. ADMINISTRATIVE PROVISIONS. 
(a) IN GENERAL.—In order to carry out this title, the Foundation 
may— 
114 STAT. 2763A-258 
PUBLIC LAW 106-554—APPENDIX D 
(1) prescribe such regulations as it considers necessary 
governing the manner in which its functions shall be carried 
out; 
(2) receive money and other property donated, bequeathed, 
or devised, without condition or restriction other than it be 
used for the purposes of the Foundation, and to use, sell, 
or otherwise dispose of such property for the purpose of carrying 
out its functions; 
(3) accept and use the services of voluntary and noncom-
pensated personnel; 
(4) enter into contracts or other arrangements, or make 
grants, to carry out the provisions of this title, and enter 
into such contracts or other arrangements, or make such grants, 
with the concurrence of a majority of the members of the 
Board, without performance or other bonds and without regard 
to section 3709 of the Revised Statutes (41 U.S.C. 5); 
(5) rent office space in the District of Columbia; and 
(6) make other necessary expenditures. 
(b) ANNUAL REPORT.—The Foundation shall submit to the Presi-
dent and to the Committee on Foreign Relations of the Senate 
and the Committee on International Relations of the House of 
Representatives an annual report of its operations under this title. 
SEC. 210. TERMINATION. 
(a) IN GENERAL.—The Foundation may not award any new 
fellowship, or extend any existing fellowship, after September 30, 
2016. 
(b) ABOLISHMENT.—Effective 120 days after the expiration of 
the last fellowship in effect under this title, the Foundation is 
abolished. 
TITLE III—COLORADO UTE SETTLEMENT ACT 
AMENDMENTS OF 2000 
SEC. 301. SHORT TITLE; FINDINGS; DEFINITIONS. 
(a) SHORT TITLE.—This title may be cited as the "Colorado 
Ute Settlement Act Amendments of 2000". 
(b) FINDINGS.—Congress makes the following findings: 
(1) In order to provide for a full and final settlement 
of the claims of the Colorado Ute Indian Tribes on the Animas 
and La Plata Rivers, the Tribes, the State of Colorado, and 
certain of the non-Indian parties to the Agreement have pro-
posed certain modifications to the Colorado Ute Indian Water 
Rights Settlement Act of 1988 (Public Law 100-585; 102 Stat. 
2973). 
(2) The claims of the Colorado Ute Indian Tribes on all 
rivers in Colorado other than the Animas and La Plata Rivers 
have been settled in accordance with the provisions of the 
Colorado Ute Indian Water Rights Settlement Act of 1988 (Pub-
lic Law 100-585; 102 Stat. 2973). 
(3) The Indian and non-Indian communities of southwest 
Colorado and northwest New Mexico will be benefited by a 
settlement of the tribal claims on the Animas and La Plata 
Rivers that provides the Tribes with a firm water supply with-
out taking water away from existing uses. 
(4) The Agreement contemplated a specific timetable for 
the delivery of irrigation and municipal and industrial water 
PUBLIC LAW 106-554^APPENDIX D 
114 STAT. 2763A-259 
and other benefits to the Tribes from the Animas-La Plata 
Project, which timetable has not been met. The provision of 
irrigation water can not presently be satisfied under the current 
implementation of the Federal Water Pollution Control Act 
(33 U.S.C. 1251 et seq.) and the Endangered Species Act of 
1973 (16 U.S.C. 1531 et seq.). 
(5) In order to meet the requirements of the Endangered 
Species Act of 1973 (16 U.S.C. 1531 et seq.), and in particular 
the various biological opinions issued by the Fish and Wildlife 
Service, the amendments made by this title are needed to 
provide for a significant reduction in the facilities and water 
supply contemplated under the Agreement. 
(6) The substitute benefits provided to the Tribes under 
the amendments made by this title, including the waiver of 
capital costs and the provisions of funds for natural resource 
enhancement, result in a settlement that provides the Tribes 
with benefits that are equivalent to those that the Tribes would 
have received under the Colorado Ute Indian Water Rights 
Settlement Act of 1988 (Public Law 100-585; 102 Stat. 2973). 
(7) The requirement that the Secretary of the Interior 
comply with the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.) and other national environmental laws 
before implementing the proposed settlement will ensure that 
the satisfaction of the tribal water rights is accomplished in 
an environmentally responsible fashion. 
(8) In considering the full range of alternatives for satisfy-
ing the water rights claims of the Southern Ute Indian Tribe 
and Ute Mountain Ute Indian Tribe, Congress has held numer-
ous legislative hearings and deliberations, and reviewed the 
considerable record including the following documents: 
(A) The Final EIS No. INT-FES-80-18, dated July 
1, 1980. 
(B) The Draft Supplement to the FES No. INT-DES-
92-41, dated October 13, 1992. 
(C) The Final Supplemental to the FES No. 96-23, 
dated April 26, 1996; 
(D) The Draft Supplemental EIS, dated January 14, 
2000. 
(E) The Final Supplemental EIS, dated July 2000. 
(F) The Record of Decision for the Settlement of the 
Colorado Ute Indian Waters, September 25, 2000. 
(9) In the Record of Decision referred to in paragraph 
(8)(F), the Secretary determined that the preferred alternative 
could only proceed if Congress amended the Colorado Ute 
Indian Water Rights Settlement Act of 1988 (Public Law 100-
585; 102 Stat. 2973) so as to satisfy the Tribal water rights 
claim through the construction of the features authorized by 
this title. The amendments to the Colorado Ute Indian Water 
Rights Settlement Act of 1988 set forth in this title will provide 
the Ute Tribes "with substitute benefits equivalent to those 
that the Tribes would have received under the Colorado Ute 
Indian Water Rights Settlement Act of 1988, in a manner 
consistent with paragraph (8) and the Federal Government's 
trust obligation. 
(10) Based upon paragraph (8), it is the intent of Congress 
to enact legislation that implements the Record of Decision 
referred to in paragraph (8)(F). 
114 STAT. 2763A-260 
PUBLIC LAW 106-554—APPENDIX D 
(c) DEFINITIONS.—In this title: 
(1) AGREEMENT.—The term "Agreement" has the meaning 
given that term in section 3(1) of the Colorado Ute Indian 
Water Rights Settlement Act of 1988 (Public Law 100-585; 
102 Stat. 2973). 
(2) ANIMAS-LA PLATA PROJECT.—^The term "Animas-La Plata 
Project" has the meaning given that term in section 3(2) of 
the Colorado Ute Indian Water Rights Settlement Act of 1988 
(Public Law 100-585; 102 Stat. 2973). 
(3) DOLORES PROJECT.—The term "Dolores Project" has the 
meaning given that term in section 3(3) of the Colorado Ute 
Indian Water Rights Settlement Act of 1988 (Public Law 100-
585; 102 Stat. 2974). 
(4) TRIBE; TRIBES.—The term "Tribe" or "Tribes" has the 
meaning given that term in section 3(6) of the Colorado Ute 
Indian Water Rights Settlement Act of 1988 (Public Law 100-
585; 102 Stat. 2974). 
SEC. 302. AMENDMENTS TO SECTION 6 OF THE COLORADO UTE INDIAN 
WATER RIGHTS SETTLEMENT ACT OF 1988. 
Subsection (a) of section 6 of the Colorado Ute Indian Water 
Rights Settlement Act of 1988 (Public Law 100-585; 102 Stat. 
2975) is amended to read as follows: 
"(a) RESERVOIR; MUNICIPAL AND INDUSTRIAL WATER.— 
"(1) FACILITIES.— 
"(A) IN GENERAL.—^After the date of enactment of this 
subsection, but prior to January 1, 2005, or the date estab-
lished in the Amended Final Decree described in section 
18(c), the Secretary, in order to settle the outstanding 
claims of the Tribes on the Animas and La Plata Rivers, 
acting through the Bureau of Reclamation, is specifically 
authorized to— 
"(i) complete construction of, and operate and 
maintain, a reservoir, a pumping plant, a reservoir 
inlet conduit, and appurtenant facilities with sufficient 
capacity to divert and store water from the Animas 
River to provide for an average annual depletion of 
57,100 acre-feet of water to be used for a municipal 
and industrial water supply, which facilities shall— 
"(I) be designed and operated in accordance 
with the hydrologic regime necessary for the recov-
ery of the endangered fish of the San JuEin River 
as determined by the San Juan River Recovery 
Implementation Program; 
"(II) be operated in accordance with the 
Animas-La Plata Project Compact as approved by 
Congress in Public Law 90-537; 
"(III) include an inactive pool of an appropriate 
size to be determined by the Secretary following 
the completion of required environmental compli-
ance activities; and 
"(IV) include those recreation facilities deter-
mined to be appropriate by agreement between 
the State of Colorado and the Secretary that shall 
address the payment of any of the costs of such 
facilities by the State of Colorado in addition to 
the costs described in paragraph (3); and 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-261 
"(ii) deliver, through the use of the project compo-
nents referred to in clause (i), municipal and industrial 
water allocations— 
"(I) with an average annual depletion not to 
exceed 16,525 acre-feet of water, to the Southern 
Ute Indian Tribe for its present and future needs; 
"(II) with an average annual depletion not to 
exceed 16,525 acre-feet of water, to the Ute Moun-
tain Ute Indian Tribe for its present and future 
needs; 
"(III) with an average annual depletion not 
to exceed 2,340 acre-feet of water, to the Navajo 
Nation for its present and future needs; 
"(IV) with an average annual depletion not 
to exceed 10,400 acre-feet of water, to the San 
Juan Water Commission for its present and future 
needs; 
"(V) with an average annual depletion of an 
amount not to exceed 2,600 acre-feet of water, 
to the Animas-La Plata Conservancy District for 
its present and future needs; 
"(VI) with an average annual depletion of an 
amount not to exceed 5,230 acre-feet of water, 
to the State of Colorado for its present and future 
needs; and 
"(VII) with an average annual depletion of 
an amount not to exceed 780 acre-feet of water, 
to the La Plata Conservancy District of New Mex-
ico for its present and future needs. 
"(B) 
APPLICABILITY OF OTHER 
FEDERAL LAW.—The 
responsibilities of the Secretary described in subparagraph 
(A) are subject to the requirements of Federal laws related 
to the protection of the environment and otherwise 
applicable to the construction of the proposed facilities, 
including the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.), the Clean Water Act (42 U.S.C. 
7401 et seq.), and the Endangered Species Act of 1973 
(16 U.S.C. 1531 et seq.). Nothing in this Act shall be 
construed to predetermine or otherwise affect the outcome 
of any analysis conducted by the Secretary or any other 
Federal official under applicable laws. 
"(C) LIMITATION.— 
"(i) IN GENERAL.—If constructed, the facilities 
described in subparagraph (A) shall constitute the 
Animas-La Plata Project. Construction of any other 
project features authorized by Public Law 90-537 shall 
not be commenced without further express authoriza-
tion from Congress. 
"(ii) CONTINGENCY IN APPLICATION.—If the facili-
ties described in subparagraph (A) are not constructed 
and operated, clause (i) shall not take effect. 
"(2) 
TRIBAL 
CONSTRUCTION COSTS.—Construction costs 
allocable to the facilities that are required to deliver the munici-
pal and industrial water allocations described in subclauses 
(I), (II) and (III) of paragraph (l)(A)(ii) shall be nonreimbursable 
to the United States. 
"(3) NONTRIBAL WATER CAPITAL OBLIGATIONS.— 
114 STAT. 2763A-262 
PUBLIC LAW 106-554—APPENDIX D 
"(A) IN GENERAL.—^Under the provisions of section 9 
of the Act of August 4, 1939 (43 U.S.C. 485h), the nontribal 
municipal and industrial water capital repayment obliga-
tions for the facilities described in paragraph (l)(A)(i) may 
be satisfied upon the payment in full of the nontribal 
water capital obligations prior to the initiation of construc-
tion. The amount of the obligations described in the preced-
ing sentence shall be determined by agreement between 
the Secretary of the Interior and the entity responsible 
for such repayment as to the appropriate reimbursable 
share of the construction costs allocated to that entity's 
municipal water storage. Such repayment shall be consist-
ent with Federal reclamation law, including the Colorado 
River Storage Project Act of 1956 (43 U.S.C. 620 et seq.). 
Such agreement shall take into account the fact that the 
construction of certain project facilities, including those 
facilities required to provide irrigation water supplies from 
the Animas-La Plata Project, is not authorized under para-
graph (l)(A)(i) and no costs associated with the design 
or development of such facilities, including costs associated 
with environmental compliance, shall be allocable to the 
municipal and industrial users of the facilities authorized 
under such paragraph. 
"(B) NONTRIBAL REPAYMENT OBLIGATION SUBJECT TO 
FINAL COST ALLOCATION.—The nontribal repajonent obliga-
tion set forth in subparagraph (A) shall be subject to a 
final cost allocation by the Secretary upon project comple-
tion. In the event that the final cost allocation indicates 
that additional repayment is warranted based on the 
applicable entity's share of project water storage and deter-
mination of overall reimbursable cost, that entity may elect 
to enter into a new agreement to make the additionsil 
payment necessary to secure the full water supply identi-
fied in paragraph (l)(A)(ii). If the repayment entity elects 
not to enter into a new agreement, the portion of project 
storage relinquished by such election shall be available 
to the Secretary for allocation to other project purposes. 
Additional repayment shall only be warranted for reason-
able and unforeseen costs associated with project construc-
tion as determined by the Secretary in consultation with 
the relevant repayment entities. 
"(C) REPORT.—Not later than April 1, 2001, the Sec-
retary shall report to Congress on the status of the cost-
share agreements contemplated in subparagraph (A). In 
the event that no agreement is reached with either the 
Animas-La Plata Conservancy District or the State of Colo-
rado for the water allocations set forth in subclauses (V) 
and (VI) of paragraph (l)(A)(ii), those allocations shall be 
reallocated equally to the Colorado Ute Tribes. 
"(4) TRIBAL WATER ALLOCATIONS.— 
"(A) IN GENERAL.—^With respect to municipal and 
industrial water allocated to a Tribe from the Animas-
La Plata Project or the Dolores Project, until that water 
is first used by a Tribe or used pursuant to a water use 
contract with the Tribe, the Secretary shall pay the annual 
operation, maintenance, and replacement costs allocable 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-263 
to that municipal and industrial water allocation of the 
Tribe. 
"(B) TREATMENT OF COSTS.—A Tribe shall not be 
required to reimburse the Secretary for the payment of 
any cost referred to in subparagraph (A). 
"(5) REPAYMENT OF PRO RATA SHARE.—Upon a Tribe's first 
use of an increment of a municipal and industrial water alloca-
tion described in paragraph (4), or the Tribe's first use of 
such water pursuant to the terms of a water use contract— 
"(A) repayment of that increment's pro rata share of 
those allocable construction costs for the Dolores Project 
shall be made by the Tribe; and 
"(B) the Tribe shall bear a pro rata share of the alloca-
ble annual operation, maintenance, and replacement costs 
of the increment as referred to in paragraph (4).". 
SEC, 303. MISCELLANEOUS. 
The Colorado Ute Indian Water Rights Settlement Act of 1988 
(Public Law 100-585; 102 Stat. 2973) is amended by adding at 
the end the following: 
"SEC. 15. NEW MEXICO AND NAVAJO NATION WATER MATTERS. 
"(a) ASSIGNMENT OF WATER PERMIT.—^Upon the request of the 
State Engineer of the State of New Mexico, the Secretary shall, 
as soon as practicable, in a manner consistent with applicable 
law, assign, without consideration, to the New Mexico Animas-
La Plata Project beneficiaries or to the New Mexico Interstate 
Stream Commission in accordance with the request of the State 
Engineer, the Department of the Interior's interest in New Mexico 
State Engineer Permit Number 2883, dated May 1, 1956, in order 
to fulfill the New Mexico non-Navajo purposes of the Animas-
La Plata Project, so long as the permit assignment does not affect 
the application of the Endangered Species Act of 1973 (16 U.S.C. 
1531 et seq.) to the use of the water involved. 
"(b) NAVAJO NATION MUNICIPAL PIPELINE.—^The Secretary is 
specifically authorized to construct a water line to augment the 
existing system that conveys the municipal water supplies, in an 
amount not less than 4,680 acre-feet per year, to the Navajo Indian 
Reservation at or near Shiprock, New Mexico. The Secretary shall 
comply with all applicable environmental laws with respect to such 
water line. Construction costs allocated to the Navajo Nation for 
such water line shall be nonreimbursable to the United States. 
"(c) PROTECTION OF NAVAJO WATER CLAIMS.—Nothing in this 
Act, including the permit assignment authorized by subsection (a), 
shall be construed to quantify or otherwise adversely affect the 
water rights and the claims of entitlement to water of the Navajo 
Nation. 
"SEC. 16. RESOURCE FUNDS. 
"(a) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section, $8,000,000 for each 
of fiscal years 2002 through 2006. Not later than 60 days after 
amounts are appropriated and available to the Secretary for a 
fiscal year under this paragraph, the Secretary shall make a pay-
ment to each of the Tribal Resource Funds established under sub-
section (b). Each such payment shall be equal to 50 percent of 
the amount appropriated for the fiscal year involved. 
"(b) FUNDS.—The Secretary shall establish a— 
114 STAT. 2763A-264 
PUBLIC LAW 106-554—APPENDIX D 
"(1) Southern Ute Tribal Resource Fund; and 
"(2) Ute Mountain Ute Tribal Resource Fund. 
"(c) TRIBAL DEVELOPMENT,— 
"(1) INVESTMENT.—The Secretary shall, in the absence of 
an approved tribal investment plan provided for under para-
graph (2), invest the amount in each Tribal Resource Fund 
established under subsection (b) in accordance with the Act 
entitled, 'An Act to authorize the deposit and investment of 
Indian funds' approved June 24, 1938 (25 U.S.C. 162a). With 
the exception of the funds referred to in paragraph (3)(B)(i), 
the Secretary shall disburse, at the request of a Tribe, the 
principal and income in its Resource Fund, or any part thereof, 
in accordance with a resource acquisition and enhancement 
plan approved under paragraph (3). 
"(2) INVESTMENT PLAN.— 
"(A) IN GENERAL.—In lieu of the investment provided 
for in paragraph (1), a Tribe may submit a tribal invest-
ment plan applicable to all or part of the Tribe's Tribal 
Resource Fund, except with respect to the funds referred 
to in paragraph (3)(B)(i). 
"(B) APPROVAL.—^Not later than 60 days after the date 
on which an investment plan is submitted under subpara-
graph (A), the Secretary shall approve such investment 
plan if the Secretary finds that the plan is reasonable 
and sound. If the Secretary does not approve such invest-
ment plan, the Secretary shall set forth in writing and 
with particularity the reasons for such disapproval. If such 
investment plan is approved by the Secretary, the Tribal 
Resource Fund involved shall be disbursed to the Tribe 
to be invested by the Tribe in accordance with the approved 
investment plan, subject to subsection (d). 
"(C) COMPLIANCE.—The Secretary may take such steps 
as the Secretary determines to be necessary to monitor 
the compliance of a Tribe with an investment plan approved 
under subparagraph (B). The United States shall not be 
responsible for the review, approval, or audit of £iny individ-
ual investment under the plan. The United States shall 
not be directly or indirectly liable with respect to any 
such investment, including any act or omission of the Tribe 
in managing or investing such funds. 
"(D) 
ECONOMIC DEVELOPMENT PLAN.—The principal 
and income derived from tribal investments under an 
investment plan approved under subparagraph (B) shall 
he subject to the provisions of this section and shall be 
expended only in accordance with an economic development 
plan approved under paragraph (3)(B). 
"(3) ECONOMIC DEVELOPMENT PLAN.— 
"(A) IN GENERAL.—Each Tribe shall submit to the Sec-
retary a resource acquisition and enhancement plan for 
all or any portion of its Tribal Resource Fund. 
"(B) APPROVAL.—^Not later than 60 days after the date 
on which a plan is submitted under subparagraph (A), 
the Secretary shall approve such plan if it is consistent 
with the following requirements: 
"(i) With respect to at least three-fourths of the 
funds appropriated pursuant to this section and 
consistent with the long-standing practice of the Tribes 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-265 
and other local entities and communities to work 
together to use their respective water rights and 
resources for mutual benefit, at least three-fourths of 
the funds appropriated pursuant to this section shall 
be utilized to enhance, restore, and utilize the Tribes' 
natural resources in partnership with adjacent non-
Indian communities or entities in the area. 
"(ii) The plan must be reasonably related to the 
protection, acquisition, enhancement, or development 
of natural resources for the benefit of the Tribe and 
its members. 
"(iii) Notwithstanding any other provision of law 
and in order to ensure that the Federal Government 
fulfills the objectives of the Record of Decision referred 
to in section 301(b)(8)(F) of the Colorado Ute Settle-
ment Act Amendments of 2000 by requiring that the 
funds referred to in clause (i) are expended directly 
by employees of the Federal Government, the Secretary 
acting through the Bureau of Reclamation shall expend 
not less than one-third of the funds referred to in 
clause (i) for municipal or rural water development 
and not less than two-thirds of the funds referred 
to such clause for resource acquisition and enhance-
ment. 
"(C) MODIFICATION.—Subject to the provisions of this 
Act and the approval of the Secretary, each Tribe may 
modify a plan approved under subparagraph (B). 
"(D) LIABILITY.—The United States shall not be directly 
or indirectly liable for any claim or cause of action arising 
from the approval of a plan under this paragraph, or from 
the use and expenditure by the Tribe of the principal 
or interest of the Funds. 
"(d) LIMITATION ON PER CAPITA DISTRIBUTIONS.—No part of 
the principal contained in the Tribal Resource Fund, or of the 
income accruing to such funds, or the revenue from any water 
use contract, shall be distributed to any member of either Tribe 
on a per capita basis. 
"(e) LIMITATION ON SETTING ASIDE FINAL CONSENT DECREE.— 
Neither the Tribes nor the United States shall have the right 
to set aside the final consent decree solely because the requirements 
of subsection (c) are not complied with or implemented. 
"(f) 
LIMITATION ON DISBURSEMENT OF TRIBAL RESOURCE 
FUNDS.—^Any funds appropriated under this section shall be placed 
into the Southern Ute Tribal Resource Fund and the Ute Mountain 
Ute Tribal Resource Fund in the Treasury of the United States 
but shall not be available for disbursement under this section 
until the final settlement of the tribal claims as provided in section 
18. The Secretary of the Interior may, in the Secretary's sole discre-
tion, authorize the disbursement of funds prior to the final settle-
ment in the event that the Secretary determines that substantial 
portions of the settlement have been completed. In the event that 
the funds are not disbursed under the terms of this section by 
December 31, 2012, such funds shall be deposited in the general 
fund of the Treasury. 
114 STAT. 2763A-266 
PUBLIC LAW 106-554—APPENDIX D 
"SEC. 17. COLORADO UTE SETTLEMENT FUND. 
"(a) ESTABLISHMENT OF FUND.—There is hereby established 
within the Treasury of the United States a fund to be known 
as the 'Colorado Ute Settlement Fund'. 
"(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to the Colorado Ute Settlement Fund such funds 
as are necessary to complete the construction of the facilities 
described in sections 6(a)(1)(A) smd 15(b) within 7 years of the 
date of enactment of this section. Such funds are authorized to 
be appropriated for each of the first 5 fiscal years beginning with 
the first full fiscal year following the date of enactment of this 
section. 
"SEC. 18. FINAL SETTLEMENT. 
"(a) IN GENERAL.—The construction of the facilities described 
in section 6(a)(1)(A), the allocation of the water supply from those 
facilities to the Tribes as described in that section, and the provision 
of funds to the Tribes in accordance with section 16 and the issuance 
of an amended final consent decree as contemplated in subsection 
(c) shall constitute final settlement of the tribal claims to water 
rights on the Animas and La Plata Rivers in the State of Colorado. 
"(b) STATUTORY CONSTRUCTION.—Nothing in this section shall 
be construed to affect the right of the Tribes to water rights on 
the streams and rivers described in the Agreement, other than 
the Animas and La Plata Rivers, to receive the amounts of water 
dedicated to tribal use under the Agreement, or to acquire water 
rights under the laws of the State of Colorado. 
"(c) ACTION BY THE ATTORNEY GENERAL.—The Attorney General 
shall file with the District Court, Water Division Number 7, of 
the State of Colorado, such instruments as may be necessary to 
request the court to amend the final consent decree to provide 
for the amendments made to this Act under the Colorado Ute 
Indian Water Rights Settlement Act Amendments of 2000. The 
amended final consent decree shall specify terms and conditions 
to provide for an extension of the current January 1, 2005, deadline 
for the Tribes to commence litigation of their reserved rights claims 
on the Animas and La Plata Rivers. 
"SEC. 19. STATUTORY CONSTRUCTION; TREATMENT OF CERTAIN 
FUNDS. 
"(a) IN GENERAL.—^Nothing in the amendments made by the 
Colorado Ute Settlement Act Amendments of 2000 shall be con-
strued to affect the applicability of any provision of this Act. 
"(b) TREATMENT OF UNCOMMITTED PORTION OF COST-SHARING 
OBLIGATION.—The uncommitted portion of the cost-sharing obliga-
tion of the State of Colorado referred to in section 6(a)(3) shall 
be made available, upon the request of the State of Colorado, 
to the State of Colorado after the date on which payment is made 
of the amount specified in that section.". 
TITLE IV 
SEC. 401. DESIGNATION OF AMERICAN MUSEUM OF SCIENCE AND 
ENERGY. 
(a) IN GENERAL.—The Museum— 
(1) is designated as the "American Museum of Science 
and Energy"; and 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-267 
(2) shall be the official museum of science and energy 
of the United States. 
(b) REFERENCES.—^Any reference in a law, map, regulation, 
document, paper, or other record of the United States to the 
Museum is deemed to be a reference to the "American Museum 
of Science and Energy". 
(c) PROPERTY OF THE UNITED STATES.— 
(1) IN GENERAL.—The name "American Museum of Science 
and Energy" is declared the property of the United States. 
(2) USE.—^The Museum shall have the sole right throughout 
the United States and its possessions to have and use the 
name "American Museum of Science and Energy". 
(3) EFFECT ON OTHER RIGHTS.—This subsection shall not 
be construed to conflict or interfere with established or vested 
rights. 
SEC. 402. AUTHORITY. 
To carry out the activities of the Museum, the Secretary may— 
(1) accept and dispose of 2iny gift, devise, or bequest of 
services or property, real or personal, that is— 
(A) designated in a written document by the person 
making the gift, devise, or bequest as intended for the 
Museum; and 
(B) determined by the Secretary to be suitable and 
beneficial for use by the Museum; 
(2) operate a retail outlet on the premises of the Museum 
for the purpose of selling or distributing items (including 
mementos, food, educational materials, replicas, and literature) 
that are— 
(A) relevant to the contents of the Museum; and 
(B) informative, educational, and tasteful; 
(3) collect reasonable fees where feasible and appropriate; 
(4) exhibit, perform, display, and publish materials and 
information of or relating to the Museum in any media or 
place; 
(5) consistent with guidelines approved by the Secretary, 
lease space on the premises of the Museum at reasonable 
rates and for uses consistent with such guidelines; and 
(6) use the proceeds of activities authorized imder this 
section to pay the costs of the Museum. 
SEC. 403. MUSEUM VOLUNTEERS. 
(a) 
AUTHORITY TO USE VOLUNTEERS.—The Secretary 
may 
recruit, train, and accept the services of individuals or entities 
as volunteers for services or activities related to the Museum. 
(b) STATUS OF VOLUNTEERS.— 
(1) IN GENERAL.—Except as provided in paragraph (2), serv-
ice by a volunteer under subsection (a) shall not be considered 
Federal emplojnnent. 
(2) EXCEPTIONS.— 
(A) FEDERAL TORT CLAIMS ACT.—For purposes of chap-
ter 171 of title 28, United States Code, a volunteer under 
subsection (a) shall be treated as an employee of the 
Government (as defined in section 2671 of that title). 
(B) COMPENSATION FOR WORK INJURIES.—^For purposes 
of subchapter I of chapter 81 of title 5, United States 
114 STAT. 2763A-268 
PUBLIC LAW 106-554—APPENDIX D 
Code, a volunteer described in subsection (a) shall be treat-
ed as an employee (as defined in section 8101 of title 
5, United States Code). 
(c) COMPENSATION.—^A volunteer under subsection (a) shall 
serve without pay, but may receive nominal awards and reimburse-
ment for incidental expenses, including expenses for a uniform 
or transportation in furtherance of Museum activities. 
SEC. 404. DEFINITIONS. 
For purposes of this Act: 
(1) MUSEUM.—The term "Museum" means the museum 
operated by the Secretary of Energy and located at 300 South 
Tulane Avenue in Oak Ridge, Tennessee. 
(2) SECRETARY.—The term "Secretary" means the Secretary 
of Energy or a designated representative of the Secretary. 
TITLE V—LOWER MISSISSIPPI RIVER 
REGION 
SEC. 501. SHORT TITLE. 
This title may be cited as the "Delta Regional Authority Act 
of 2000". 
SEC. 502. FINDINGS AND PURPOSES. 
(a) FINDINGS.—Congress finds that— 
(1) the lower Mississippi River region (referred to in this 
title as the "region"), though rich in natural and human 
resources, lags behind the rest of the United States in economic 
growth and prosperity; 
(2) the region suffers from a greater proportion of measur-
able poverty and unemployment than any other region of the 
United States; 
(3) the greatest hope for economic growth and revitalization 
in the region lies in the development of transportation infra-
structure, creation of 
jobs, expansion of businesses, and develop-
ment of entrepreneurial local economies; 
(4) the economic progress of the region requires an adequate 
transportation and physical infrastructure, a skilled and 
trained workforce, and greater opportunities for enterprise 
development and entrepreneurship; 
(5) a concerted and coordinated effort among Federal, State, 
and local agencies, the private sector, and nonprofit groups 
is needed if the region is to achieve its full potential for eco-
nomic development; 
(6) economic development planning on a regional or multi-
county basis offers the best prospect for achieving the maximum 
benefit from public and private investments; and 
(7) improving the economy of the region requires a special 
emphasis on areas of the region that are most economically 
distressed. 
(b) PURPOSES.—The purposes of this title are— 
(1) to promote and encourage the economic development 
of the region— 
(A) to ensure that the communities and people in the 
region have the opportunity for economic development; and 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-269 
(B) to ensure that the economy of the region reaches 
economic parity with that of the rest of the United States; 
(2) to estabUsh a formal framework for joint Federal-State 
collaboration in meeting and focusing national attention on 
the economic development needs of the region; 
(3) to assist the region in obtaining the transportation 
and basic infrastructure, skills training, and opportunities for 
economic development that are essential for strong local econo-
mies; 
(4) to foster coordination among all levels of government, 
the private sector, and nonprofit groups in crafting common 
regional strategies that will lead to broader economic growth; 
(5) 
to 
strengthen 
efforts 
that 
emphasize 
regional 
approaches to economic development and planning; 
(6) to encourage the participation of interested citizens, 
public officials, 
agencies, and others in developing and 
implementing local and regional plans for broad-based economic 
and community development; and 
(7) to focus special attention on areas of the region that 
suffer from the greatest economic distress. 
SEC. 
503. 
DELTA 
REGIONAL 
AUTHORITY. 
The Consolidated Farm and Rural Development Act (7 U.S.C. 
1921 et seq.) is amended by adding at the end the following: 
"Subtitle F—Delta Regional Authority 
"SEC. 382A. DEFINITIONS. 
"In this subtitle: 
"(1) AUTHORITY.—^The term Authority' means the Delta 
Regional Authority established by section 382B. 
"(2) REGION.—The term 'region' means the Lower Mis-
sissippi (as defined in section 4 of the Delta Development 
Act (42 U.S.C. 3121 note; Public Law 100-460)). 
"(3) FEDERAL GRANT PROGRAM.—The term 'Federal grant 
program' means a Federal grant program to provide assistance 
in— 
"(A) acquiring or developing land; 
"(B) constructing or equipping a highway, road, bridge, 
or facility; or 
"(C) carrying out other economic development activi-
ties. 
"SEC. 382B. DELTA REGIONAL AUTHORITY. 
"(a) ESTABLISHMENT.— 
"(1) IN GENERAL.—^There is established the Delta Regional 
Authority. 
"(2) COMPOSITION.—The Authority shall be composed of— 
"(A) a Federal member, to be appointed by the Presi-
dent, with the advice and consent of the Senate; and 
"(B) the Governor (or a designee of the Governor) of 
each State in the region that elects to participate in the 
Authority. 
"(3) COCHAIRPERSONS.—The Authority shall be headed by— 
"(A) the Federal member, who shall serve— 
"(i) as the Federal cochairperson; and 
"(ii) as a liaison between the Federal Government 
and the Authority; and 
114 STAT. 2763A-270 
PUBLIC LAW 106-554—APPENDIX D 
"(B) a State cochairperson, who— 
"(i) shall be a Governor of a participating State 
in the region; and 
"(ii) shall be elected by the State members for 
a term of not less than 1 year. 
"(b) ALTERNATE MEMBERS.— 
"(1) STATE ALTERNATES.—The State member of a participat-
ing State may have a single alternate, who shall be— 
"(A) a resident of that State; and 
"(B) appointed by the Governor of the State. 
"(2) ALTERNATE FEDERAL COCHAIRPERSON.—^The President 
shall appoint an alternate Federal cochairperson. 
"(3) QUORUM.—^A State alternate shall not be counted 
toward the establishment of a quorum of the Authority in 
any instance in which a quorum of the State members is 
required to be present. 
"(4) DELEGATION OF POWER.—No power or responsibility 
of the Authority specified in paragraphs (2) and (3) of subsection 
(c), and no voting right of any Authority member, shall be 
delegated to any person— 
"(A) who is not an Authority member; or 
"(B) who is not entitled to vote in Authority meetings. 
"(c) VOTING.— 
"(1) IN GENERAL.—^A decision by the Authority shall require 
a majority vote of the Authority (not including any member 
representing a State that is delinquent under subsection 
(g)(2)(C)) to be effective. 
"(2) QUORUM.—^A quorum of State members shall be 
required to be present for the Authority to make any policy 
decision, including— 
"(A) a modification or revision of an Authority policy 
decision; 
"(B) approval of a State or regional development plan; 
and 
"(C) any allocation of funds among the States. 
"(3) PROJECT AND GRANT PROPOSALS.—The approval of 
project and grant proposals shall be— 
"(A) a responsibility of the Authority; and 
"(B) conducted in accordance with section 3821. 
"(4) VOTING BY ALTERNATE MEMBERS.—^An alternate mem-
ber shall vote in the case of the absence, death, disability, 
removal, or resignation of the Federal or State representative 
for which the alternate member is an alternate. 
"(d) DUTIES.—The Authority shall— 
"(1) develop, on a continuing basis, comprehensive and 
coordinated plans and programs to establish priorities and 
approve grants for the economic development of the region, 
giving due consideration to other Federal, State, and local 
planning and development activities in the region; 
"(2) not later than 220 days after the date of enactment 
of this subtitle, establish priorities in a development plan for 
the region (including 5-year regional outcome targets); 
"(3) assess the needs and assets of the region based on 
available research, demonstrations, investigations, 
assess-
ments, and evaluations of the region prepared by Federal, 
State, and local agencies, universities, local development dis-
tricts, and other nonprofit groups; 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-271 
"(4) formulate and recommend to the Governors and legisla-
tures of States that participate in the Authority forms of inter-
state cooperation; 
"(5) work with State and local agencies in developing appro-
priate model legislation; 
"(6)(A) enhance the capacity of, and provide support for, 
local development districts in the region; or 
"(B) if no local development district exists in an area in 
a participating State in the region, foster the creation of a 
local development district; 
"(7) encourage private investment in industrial, commer-
cial, and other economic development projects in the region; 
and 
"(8) cooperate with and assist State governments with eco-
nomic development programs of participating States. 
"(e) ADMINISTRATION.—In carrying out subsection (d), the 
Authority may— 
"(1) hold such hearings, sit and act at such times and 
places, take such testimony, receive such evidence, and print 
or otherwise reproduce and distribute a description of the 
proceedings and reports on actions by the Authority as the 
Authority considers appropriate; 
"(2) authorize, through the Federal or State cochairperson 
or any other member of the Authority designated by the Author-
ity, the administration of oaths if the Authority determines 
that testimony should be taken or evidence received under 
oath; 
"(3) request from any Federal, State, or local department 
or agency such information as may be available to or procurable 
by the department or agency that may be of use to the Authority 
in carrying out duties of the Authority; 
"(4) adopt, amend, and repeal bylaws and rules governing 
the conduct of Authority business and the performance of 
Authority duties; 
"(5) request the head of any Federal department or agency 
to detail to the Authority such personnel as the Authority 
requires to carry out duties of the Authority, each such detail 
to be without loss of seniority, pay, or other employee status; 
"(6) request the head of any State department or agency 
or local government to detail to the Authority such personnel 
as the Authority requires to carry out duties of the Authority, 
each such detail to be without loss of seniority, pay, or other 
employee status; 
"(7) provide for coverage of Authority employees in a suit-
able retirement and employee benefit system by— 
"(A) making arrangements or entering into contracts 
with any participating State government; or 
"(B) 
otherwise 
providing 
retirement 
and 
other 
employee benefit coverage; 
"(8) accept, use, and dispose of gifts or donations of services 
or real, personal, tangible, or intangible property; 
"(9) enter into and perform such contracts, leases, coopera-
tive agreements, or other transactions as are necessary to carry 
out Authority duties, including any contracts, leases, or coopera-
tive agreements with— 
"(A) any department, agency, or instrumentality of the 
United States; 
114 STAT. 2763A-272 
PUBLIC LAW 106-554—APPENDIX D 
"(B) any State (including a political subdivision, 
agency, or instrumentality of the State); or 
"(C) any person, firm, association, or corporation; and 
"(10) establish and maintain a central office and field offices 
at such locations as the Authority may select. 
"(f) FEDERAL AGENCY COOPERATION.—A Federal agency shall— 
"(1) cooperate with the Authority; and 
"(2) provide, on request of the Federal cochairperson, appro-
priate assistance in carrying out this subtitle, in accordance 
with applicable Federal laws (including regulations). 
"(g) ADMINISTRATIVE EXPENSES.— 
"(1) IN GENERAL.—^Administrative expenses of the Authority 
(except for the expenses of the Federal cochairperson, including 
expenses of the alternate and staff of the Federal cochairperson, 
which shall be paid solely by the Federal Government) shall 
be paid— 
"(A) by the Federal Government, in an amount equal 
to 50 percent of the administrative expenses; and 
"(B) by the States in the region participating in the 
Authority, in an amount equal to 50 percent of the adminis-
trative expenses. 
"(2) STATE SHARE.— 
"(A) 
IN GENERAL.—^The 
share 
of 
administrative 
expenses of the Authority to be paid by each State shall 
be determined by the Authority. 
"(B) No FEDERAL PARTICIPATION.—^The Federal cochair-
person shall not participate or vote in any decision luider 
subparagraph (A). 
"(C) DELINQUENT STATES.—If a State is delinquent in 
payment of the State's share of administrative expenses 
of the Authority under this subsection— 
"(i) no assistance under this subtitle shall be fur-
nished to the State (including assistance to a political 
subdivision or a resident of the State); and 
"(ii) no member of the Authority from the State 
shall participate or vote in any action by the Authority. 
"(h) COMPENSATION.— 
"(1) FEDERAL COCHAIRPERSON.—The Federal cochairperson 
shall be compensated by the Federal Government at level III 
of the Executive Schedule in subchapter II of chapter 53 of 
title 5, United States Code. 
"(2) ALTERNATE FEDERAL COCHAIRPERSON.—^The alternate 
Federal cochairperson— 
"(A) shall be compensated by the Federal Government 
at level V of the Executive Schedule described in paragraph 
(1); and 
"(B) when not actively serving as an alternate for the 
Federal cochairperson, shall perform such functions and 
duties as are delegated by the Federal cochairperson. 
"(3) STATE MEMBERS AND ALTERNATES.— 
"(A) IN GENERAL.—^A State shall compensate each mem-
ber and alternate representing the State on the Authority 
at the rate established by law of the State. 
"(B) No ADDITIONAL COMPENSATION.—^No State member 
or alternate member shall receive any salary, or any con-
tribution to or supplementation of salary from any source 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-273 
other than the State for services provided by the member 
or alternate to the Authority, 
"(4) DETAILED EMPLOYEES.— 
"(A) IN GENERAL.—No person detailed to serve the 
Authority under subsection (e)(6) shall receive any salary 
or any contribution to or supplementation of salary for 
services provided to the Authority from— 
"(i) any source other than the State, local, or inter-
governmental department or agency from which the 
person was detailed; or 
"(ii) the Authority. 
"(B) VIOLATION.—^Any person that violates this para-
graph shall be fined not more than $5,000, imprisoned 
not more than 1 year, or both. 
"(C) APPLICABLE LAW.—The Federal cochairperson, the 
alternate Federal cochairperson, and any Federal officer 
or employee detailed to duty on the Authority under sub-
section (e)(5) shall not be subject to subparagraph (A), 
but shall remain subject to sections 202 through 209 of 
title 18, United States Code. 
"(5) ADDITIONAL PERSONNEL.— 
"(A) COMPENSATION.— 
"(i) IN GENERAL.—^The Authority may appoint and 
fix the compensation of an executive director and such 
other personnel as are necessary to enable the Author-
ity to carry out the duties of the Authority. 
"(ii) EXCEPTION.—Compensation under clause (i) 
shall not exceed the maximum rate for the Senior 
Executive Service under section 5382 of title 5, United 
States Code, including any applicable locality-based 
comparability payment that may be authorized under 
section 5304(h)(2)(C) of that title. 
"(B) EXECUTIVE DIRECTOR.—The executive director 
shall be responsible for— 
"(i) the carrying out of the administrative duties 
of the Authority; 
"(ii) direction of the Authority staff; and 
"(iii) such other duties as the Authority may 
assign. 
"(C) No FEDERAL EMPLOYEE STATUS.—No member, 
alternate, officer, or employee of the Authority (except the 
Federal cochairperson of the Authority, the alternate and 
staff for the Federal cochairperson, and any Federal 
employee detailed to the Authority under subsection (e)(5)) 
shall be considered to be a Federal employee for any pur-
pose. 
"(i) CONFLICTS OF INTEREST.— 
"(1) IN GENERAL.—Except as provided under paragraph 
(2), no State member, alternate, officer, or employee of the 
Authority shall participate personally and substantially as a 
member, alternate, officer, or employee of the Authority, 
through decision, approval, disapproval, recommendation, the 
rendering of advice, investigation, or otherwise, in any proceed-
ing, application, request for a ruling or other determination, 
contract, claim, controversy, or other matter in which, to knowl-
edge of the member, alternate, officer, or employee— 
"(A) the member, alternate, officer, or employee; 
114 STAT. 2763A-274 
PUBLIC LAW 106-554—APPENDIX D 
"(B) the spouse, minor child, partner, or organization 
(other than a State or political subdivision of the State) 
of the member, alternate, officer, or employee, in which 
the member, alternate, officer, or employee is serving as 
officer, director, trustee, partner, or employee; or 
"(C) any person or organization with whom the mem-
ber, alternate, officer, or employee is negotiating or has 
any arrangement concerning prospective employment; 
has a financial interest. 
"(2) DISCLOSURE.—Paragraph (1) shall not apply if the 
State member, alternate, officer, or employee— 
"(A) immediately advises the Authority of the nature 
and circumstances of the proceeding, application, request 
for a ruling or other determination, contract, claim, con-
troversy, or other particular matter presenting a potential 
conflict of interest; 
"(B) makes full disclosure of the financial interest; 
and 
"(C) before the proceeding concerning the matter 
presenting the conflict of interest, receives a written deter-
mination by the Authority that the interest is not so 
substantial as to be likely to affect the integrity of the 
services that the Authority may expect from the State 
member, alternate, officer, or employee. 
"(3) VIOLATION.—^Any person that violates this subsection 
shall be fined not more than $10,000, imprisoned not more 
than 2 years, or both. 
"(j) 
VALIDITY OF Co>rrRACTS, LOANS, AND GRANTS.—The 
Authority may declare void any contract, loan, or grant of or by 
the Authority in relation to which the Authority determines that 
there has been a violation of any provision under subsection (h)(4), 
subsection (i), or sections 202 through 209 of title 18, United States 
Code. 
"SEC. 382C. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS. 
"(a) IN GENERAL.—^The Authority may approve grants to States 
and public and nonprofit entities for projects, approved in accord-
ance with section 3821— 
"(1) to develop the transportation infrastructure of the 
region for the purpose of facilitating economic development 
in the region (except that grants for this purpose may only 
be made to a State or local government); 
"(2) to assist the region in obtaining the job training, 
employment-related education, and business development (with 
an emphasis on entrepreneurship) that are needed to build 
and maintain strong local economies; 
"(3) to provide assistance to severely distressed and under-
developed areas that lack financial resources for improving 
basic public services; 
"(4) to provide assistance to severely distressed and under-
developed areas that lack financial resources for equipping 
industrial parks and related facilities; and 
"(5) to otherwise achieve the purposes of this subtitle. 
"(b) FUNDING.— 
"(1) IN GENERAL.—Funds for grants under subsection (a) 
may be provided— 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-275 
"(A) entirely from appropriations to carry out this sec-
tion; 
"(B) in combination with funds available under another 
Federal or Federal grant program; or 
"(C) from any other source. 
"(2) PRIORITY OF FUNDING.—To best build the foundations 
for long-term economic development and to complement other 
Federal and State resources in the region, Federal funds avail-
able under this subtitle shall be focused on the activities in 
the following order or priority: 
"(A) Basic public infrastructure in distressed counties 
and isolated areas of distress. 
"(B) Transportation infrastructure for the purpose of 
facilitating economic development in the region. 
"(C) 
Business 
development, 
with 
emphasis 
on 
entrepreneurship. 
"(D) Job training or emplojonent-related education, 
with emphasis on use of existing public educational institu-
tions located in the region. 
"(3) FEDERAL SHARE IN GRANT PROGRAMS.—Notwithstand-
ing any provision of law limiting the Federal share in any 
grant program, funds appropriated to carry out this section 
may be used to increase a Federal share in a grant program, 
as the Authority determines appropriate. 
"SEC. 382D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS. 
"(a) FINDING.—Congress finds that certain States and local 
communities of the region, including local development districts, 
may be unable to take maximum advantage of Federal grant pro-
grams for which the States and communities are eligible because— 
"(1) they lack the economic resources to meet the required 
matching share; or 
"(2) there are insufficient funds available under the 
applicable Federal grant law authorizing the program to meet 
pressing needs of the region. 
"(b) FEDERAL GRANT PROGRAM FUNDING.—In accordance with 
subsection (c), the Federal cochairperson may use amounts made 
available to carry out this subtitle, without regard to any limitations 
on areas eligible for assistance or authorizations for appropriation 
under any other Act, to fund all or any portion of the basic Federal 
contribution to a project or activity under a Federal grant program 
in the region in an amount that is above the fixed maximum 
portion of the cost of the project otherwise authorized by applicable 
law, but not to exceed 90 percent of the costs of the project (except 
as provided in section 382F(b)). 
"(c) CERTIFICATION.— 
"(1) IN GENERAL.—In the case of any program or project 
for which all or any portion of the basic Federal contribution 
to the project under a Federal grant program is proposed to 
be made imder this section, no Federal contribution shall be 
made until the Federal official administering the Federal law 
authorizing the contribution certifies that the program or 
project— 
"(A) meets 
the 
applicable 
requirements 
of the 
applicable Federal grant law; and 
114 STAT. 2763A-276 
PUBLIC LAW 106-554—APPENDIX D 
"(B) could be approved for Federal contribution under 
the law if funds were available under the law for the 
program or project. 
"(2) CERTIFICATION BY AUTHORITY.— 
"(A) IN GENERAL.—The certifications and determina-
tions required to be made by the Authority for approval 
of projects under this subtitle in accordance with section 
3821— 
"(i) shall be controlling; and 
"(ii) shall be accepted by the Federal agencies. 
"(B) ACCEPTANCE BY FEDERAL COCHAIRPERSON.—Any 
finding, report, certification, or documentation required to 
be submitted to the head of the department, agency, or 
instrumentality of the Federal Government responsible for 
the administration of any Federal grant program shall 
be accepted by the Federal cochairperson with respect to 
a supplemental grant for any project under the program. 
"SEC. 382E. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND 
ADMINISTRATIVE EXPENSES. 
"(a) DEFINITION OF LOCAL DEVELOPMENT DISTRICT.—In this 
section, the term 'local development district' means an entity that— 
"(1) is— 
"(A) a planning district in existence on the date of 
enactment of this subtitle that is recognized by the Eco-
nomic Development Administration of the Department of 
Commerce; or 
"(B) where an entity described in subparagraph (A) 
does not exist— 
"(i) organized and operated in a manner that 
ensures broad-based community participation and an 
effective opportunity for other nonprofit groups to 
contribute to the development and implementation of 
programs in the region; 
"(ii) governed by a policy board with at least a 
simple majority of members consisting of elected offi-
cials or employees of a general purpose unit of local 
government who have been appointed to represent the 
government; 
"(iii) certified to the Authority as having a charter 
or authority that includes the economic development 
of counties or parts of counties or other political sub-
divisions within the region— 
"(I) by the Governor of each State in which 
the entity is located; or 
"(II) by the State officer designated by the 
appropriate State law to make the certification; 
and 
"(iv)(I) a nonprofit incorporated body organized or char-
tered under the law of the State in which the entity is 
located; 
"(II) a nonprofit agency or instrumentality of a State 
or local government; 
"(III) a public organization established before the date 
of enactment of this subtitle under State law for creation 
of multi-jurisdictional, area-wide planning organizations; 
or 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-277 
"(IV) a nonprofit association or combination of bodies, 
agencies, and instrumentalities described in subclauses (I) 
through (III); and 
"(2) has not, as certified by the Federal cochairperson— 
"(A) inappropriately used Federal grant fimds fi*om 
any Federal source; or 
"(B) appointed an officer who, during the period in 
which another entity inappropriately used Federal grant 
fiinds firom any Federal source, was an officer of the other 
entity. 
"(b) GRANTS TO LOCAL DEVELOPMENT DISTRICTS.— 
"(1) IN GENERAL.—^The Authority may make grants for 
administrative expenses under this section. 
"(2) CONDITIONS FOR GRANTS.— 
"(A) MAXIMUM AMOUNT.—The amount of any grant 
awarded under paragraph (1) shall not exceed 80 percent 
of the administrative expenses of the local development 
district receiving the grant. 
"(B) MAXIMUM PERIOD.—No grant described in para-
graph (1) shall be awarded to a State agency certified 
as a local development district for a period greater than 
3 years. 
"(C) LOCAL SHARE.—The contributions of a local 
development district for administrative expenses may be 
in cash or in kind, fairly evaluated, including space, equip-
ment, and services. 
"(c) DUTIES OF LOCAL DEVELOPMENT DISTRICTS.—^A local 
development district shall— 
"(1) operate as a lead organization serving multicounty 
areas in the region at the local level; and 
"(2) serve as a liaison between State and local governments, 
nonprofit organizations (including community-based groups and 
educationgil institutions), the business community, and citizens 
that— 
"(A) are involved in multijurisdictional planning; 
"(B) provide technical assistance to local jurisdictions 
and potential grantees; and 
"(C) provide leadership and civic development assist-
ance. 
"SEC. 382F. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED 
COUNTIES. 
"(a) DESIGNATIONS.—Not later than 90 days after the date 
of enactment of this subtitle, and annually thereafter, the Authority, 
in accordance with such criteria as the Authority may establish, 
shall designate— 
"(1) as distressed counties, counties in the region that 
are the most severely and persistently distressed and under-
developed and have high rates of poverty or unemployment; 
"(2) as nondistressed counties, counties in the region that 
are not designated as distressed counties under paragraph (1); 
and 
"(3) as isolated areas of distress, areas located in nondis-
tressed counties (as designated under paragraph (2)) that have 
high rates of poverty or unemployment. 
"(b) DISTRESSED COUNTIES.— 
114 STAT. 2763A-278 
PUBLIC LAW 106-554—APPENDIX D 
"(1) IN GENERAL.—The Authority shall allocate at least 
75 percent of the appropriations made available under section 
382M for programs and projects designed to serve the needs 
of distressed counties and isolated areas of distress in the 
region. 
"(2) FUNDING LIMITATIONS.—The funding limitations under 
section 382D(b) shall not apply to a project providing transpor-
tation or basic public services to residents of one or more 
distressed counties or isolated areas of distress in the region. 
"(c) NONDISTRESSED COUNTIES.— 
"(1) IN GENERAL.—Except as provided in this subsection, 
no funds shall be provided under this subtitle for a project 
located in a county designated as a nondistressed county under 
subsection (a)(2). 
"(2) EXCEPTIONS.— 
"(A) IN GENERAL.—The funding prohibition under para-
graph (1) shall not apply to grants to fund the administra-
tive expenses of local development districts under section 
382E(b). 
"(B) MULTICOUNTY PROJECTS.—^The Authority may 
waive the application of the funding prohibition imder para-
graph (1) to— 
"(i) a multicounty project that includes participa-
tion by a nondistressed coiinty; or 
"(ii) any other type of project; 
if the Authority determines that the project could bring 
significant benefits to areas of the region outside a nondis-
tressed county. 
"(C) ISOLATED AREAS OF DISTRESS.—For a designation 
of an isolated area of distress for assistance to be effective, 
the designation shall be supported— 
"(i) by the most recent Federal data available; 
or 
"(ii) if no recent Federal data are available, by 
the most recent data available through the government 
of the State in which the isolated area of distress 
is located. 
"(d) TRANSPORTATION AND BASIC PUBLIC INFRASTRUCTURE.— 
The Authority shall allocate at least 50 percent of any funds made 
available under section 382M for transportation and basic public 
infrastructure projects authorized under paragraphs (1) and (3) 
of section 382C(a). 
"SEC. 382G. DEVELOPMENT PLANNING PROCESS. 
"(a) STATE DEVELOPMENT PLAN.—In accordance with policies 
established by the Authority, each State member shall submit a 
development plan for the area of the region represented by the 
State member. 
"(b) CONTENT OF PLAN.—^A State development plan submitted 
under subsection (a) shall reflect the goals, objectives, and priorities 
identified in the regional development plan developed under section 
382B(d)(2). 
"(c) 
CONSULTATION WITH 
INTERESTED LOCAL PARTIES.—In 
carrying out the development planning process (including the selec-
tion of programs and projects for assistance), a State may— 
"(1) consult with— 
"(A) local development districts; and 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-279 
"(B) local units of government; and 
"(2) take into consideration the goals, objectives, priorities, 
and recommendations of the entities described in paragraph 
(1). 
"(d) PUBLIC PARTICIPATION.— 
"(1) IN GENERAL.—The Authority and applicable State and 
local development districts shall encourage and assist, to the 
maximum extent practicable, public participation in the 
development, revision, and implementation of all plans and 
programs under this subtitle. 
"(2) REGULATIONS.—^The Authority shall develop guidelines 
for providing public participation described in paragraph (1), 
including public hearings. 
"SEC. 382H. PROGRAM DEVELOPMENT CRITERIA. 
"(a) IN GENERAL.—In considering programs and projects to 
be provided assistance under this subtitle, and in establishing a 
priority ranking of the requests for assistance provided by the 
Authority, the Authority shall follow procedures that ensure, to 
the maximum extent practicable, consideration of— 
"(1) the relationship of the project or class of projects to 
overall regional development; 
"(2) the per capita income and poverty and unemployment 
rates in an area; 
"(3) the financial resources available to the applicants for 
assistance seeking to carry out the project, with emphasis on 
ensuring that projects are adequately financed to maximize 
the probability of successful economic development; 
"(4) the importance of the project or class of projects in 
relation to other projects or classes of projects that may be 
in competition for the same funds; 
"(5) the prospects that the project for which assistance 
is sought will improve, on a continuing rather than a temporary 
basis, the opportunities for employment, the average level of 
income, or the economic development of the area served by 
the project; and 
"(6) the extent to which the project design provides for 
detailed outcome measurements by which grant expenditures 
and the results of the expenditures may be evaluated. 
"(b) No RELOCATION ASSISTANCE.—^No financial assistance 
authorized by this subtitle shall be used to assist a person or 
entity in relocating from one area to another, except that financial 
assistance may be used as otherwise authorized by this title to 
attract businesses from outside the region to the region. 
"(c) REDUCTION OF FUNDS.—^Funds may be provided for a pro-
gram or project in a State under this subtitle only if the Authority 
determines that the level of Federal or State financial assistance 
provided under a law other than this subtitle, for the same type 
of program or project in the same area of the State within the 
region, will not be reduced as a result of funds made available 
by this subtitle. 
"SEC 3821. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS. 
"(a) IN GENERAL.—^A State or regional development plan or 
any multistate subregional plan that is proposed for development 
under this subtitle shall be reviewed by the Authority. 
"(b) EVALUATION BY STATE MEMBER.—^An application for a grant 
or any other assistance for a project under this subtitle shall be 
114 STAT. 2763A-280 
PUBLIC LAW 106-554—APPENDIX D 
made through and evaluated for approval by the State member 
of the Authority representing the applicant. 
"(c) CERTIFICATION.—^An application for a grant or other assist-
ance for a project shall be approved only on certification by the 
State member that the application for the project— 
"(1) describes ways in which the project complies with 
any applicable State development plan; 
"(2) meets applicable criteria under section 382H; 
"(3) provides adequate assurance that the proposed project 
will be properly administered, operated, and maintained; and 
"(4) otherwise meets the requirements of this subtitle. 
"(d) VOTES FOR DECISIONS.—On certification by a State member 
of the Authority of an application for a grant or other assistance 
for a specific project under this section, an affirmative vote of 
the Authority imder section 382B(c) shall be required for approval 
of the application. 
"SEC. 382J. CONSENT OF STATES. 
"Nothing in this subtitle requires any State to engage in or 
accept any program imder this subtitle without the consent of 
the State. 
"SEC. 382K. RECORDS. 
"(a) RECORDS OF THE AUTHORITY.— 
"(1) IN GENERAL.—^The Authority shall maintain accurate 
and complete records of all transactions and activities of the 
Authority. 
"(2) AVAILABILITY.—All records of the Authority shall be 
available for audit and examination by the Comptroller General 
of the United States and the Inspector General of the Depart-
ment of Agriculture (including authorized representatives of 
the Comptroller General and the Inspector General of the 
Department of Agriculture). 
"(b) RECORDS OF RECIPIENTS OF FEDERAL ASSISTANCE.— 
"(1) IN GENERAL.—^A recipient of Federal funds under this 
subtitle shall, as required by the Authority, maintain accurate 
and complete records of transactions and activities financed 
with Federal funds and report on the transactions and activities 
to the Authority. 
"(2) AVAILABILITY.—^All records required under paragraph 
(1) shall be available for audit by the Comptroller General 
of the United States, the Inspector General of the Department 
of Agriculture, and the Authority (including authorized rep-
resentatives of the Comptroller General, the Inspector General 
of the Department of Agriculture, and the Authority). 
"(c) ANNUAL AUDIT.—Tlie Inspector General of the Department 
of Agriculture shall audit the activities, transactions, and records 
of the Authority on an annual basis. 
"SEC. 382L. ANNUAL REPORT. 
"Not later than 180 days after the end of each fiscal year, 
the Authority shall submit to the President and to Congress a 
report describing the activities carried out under this subtitle. 
"SEC. 382M. AUTHORIZATION OF APPROPRIATIONS. 
"(a) IN GENERAL.—There is authorized to be appropriated to 
the Authority to carry out this subtitle $30,000,000 for each of 
fiscal years 2001 through 2002, to remain available until expended. 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-281 
"(b) ADMINISTRATIVE EXPENSES.—Not more than 5 percent of 
the amount appropriated under subsection (a) for a fiscal year 
shall be used for administrative expenses of the Authority. 
"SEC. 382N. TERMINATION OF AUTHORITY. 
"This subtitle and the authority provided under this subtitle 
expire on October 1, 2002.". 
SEC. 504. AREA COVERED BY LOWER MISSISSIPPI DELTA DEVELOP-
MENT COMMISSION. 
(a) IN GENERAL.—Section 4(2)(D) of the Delta Development 
Act (42 U.S.C. 3121 note; 102 Stat. 2246) is amended by inserting 
"Natchitoches," after "Winn,". 
(b) CONFORMING AMENDMENT.—The matter under the heading 
"SALARIES AND EXPENSES" under the heading "FARMERS HOME 
ADMINISTRATION" in title II of Public Law 100-460 (102 Stat. 2246) 
is amended in the fourth proviso by striking "carry out" and all 
that follows through "bills are hereby" and inserting "carry out 
S. 2836, the Delta Development Act, as introduced in the Senate 
on September 27, 1988, and that bill is". 
TITLE VI—DAKOTA WATER RESOURCES ACT OF 2000 
SEC. 601. SHORT TITLE. 
This title may be cited as the "Dakota Water Resources Act 
of 2000". 
SEC. 602. PURPOSES AND AUTHORIZATION. 
Section 1 of Public Law 89-108 (79 Stat. 433; 100 Stat. 418) 
is amended— 
(1) in subsection (a)— 
(A) in paragraph (2), by striking "of and inserting 
"within"; 
(B) in paragraph (5), by striking "more timel}^' and 
inserting "appropriate"; and 
(C) in paragraph (7), by striking "federally-assisted 
water resource development project providing irrigation for 
130,940 acres of land" and inserting "multipurpose feder-
ally assisted water resource project providing irrigation, 
municipal, rural, and industrial water systems, fish, wild-
life, and other natural resource conservation and develop-
ment, recreation, flood control, ground water recharge, and 
augmented stream flows"; 
(2) in subsection (b)— 
(A) by inserting ", jointly with the State of North 
Dakota," after "construct"; 
(B) by striking "the irrigation of 130,940 acres" and 
inserting "irrigation"; 
(C) by striking "fish and wildlife conservation" and 
inserting "fish, wildlife, and other natural resource con-
servation"; 
(D) by inserting "augmented stream flows, ground 
water recharge," sifter "flood control,"; and 
(E) by inserting "(as modified by the Dakota Water 
Resources Act of 2000)" before the period at the end; 
(3) in subsection (e), by striking "terminated" and all that 
follows and inserting "terminated."; and 
79-194 O - 00 - 11: QL 3 Part 5 
114 STAT. 2763A-282 
PUBLIC LAW 106-554—APPENDIX D 
(4) by striking subsections (f) and (g) and inserting the 
following: 
"(f) COSTS.— 
"(1) ESTIMATE.—The Secretary shall estimate— 
"(A) the actual construction costs of the facilities 
(including mitigation facilities) in existence as of the date 
of enactment of the Dakota Water Resources Act of 2000; 
and 
"(B) the annual operation, maintenance, and replace-
ment costs associated with the used and unused capacity 
of the features in existence as of that date. 
"(2) REPAYMENT CONTRACT.—^An appropriate repayment 
contract shall be negotiated that provides for the making of 
a payment for each payment period in an amount that is 
commensurate with the percentage of the total capacity of 
the project that is in actual use during the payment period. 
"(3) OPERATION AND MAINTENANCE COSTS.—Except as other-
wise provided in this Act or Reclamation Law— 
"(A) The Secretary shall be responsible for the costs 
of operation and maintenance of the proportionate share 
of unit facilities in existence on the date of enactment 
of the Dakota Water Resources Act of 2000 attributable 
to the capacity of the facilities (including mitigation facili-
ties) that remain unused; 
"(B) The State of North Dakota shall be responsible 
for costs of operation and maintenance of the proportionate 
share of existing unit facilities that are used and shall 
be responsible for the full costs of operation and mainte-
nance of any facility constructed after the date of enactment 
of the Dakota Water Resources Act of 2000; and 
"(C) The State of North Dakota shall be responsible 
for the costs of providing energy to authorized unit facili-
ties. 
"(g) AGREEMENT BETWEEN THE SECRETARY AND THE STATE.— 
The Secretary shall enter into one or more agreements with the 
State of North Dakota to carry out this Act, including operation 
and maintenance of the completed unit facilities and the design 
and construction of authorized new unit facilities by the State. 
"(h) BOUNDARY WATERS TREATY OF 1909.— 
"(1) DELIVERY OF WATER INTO THE HUDSON BAY BASIN.— 
Prior to construction of any water systems authorized under 
this Act to deliver Missouri River water into the Hudson Bay 
basin, the Secretary, in consultation with the Secretary of State 
and the Administrator of the Environmental Protection Agency, 
must determine that adequate treatment can be provided to 
meet the requirements of the Treaty between the United States 
and Great Britain relating to Boundary Waters Between the 
United States and Canada, signed at Washington, January 
11, 1909 (26 Stat. 2448; TS 548) (commonly known as the 
Boundary Waters Treaty of 1909). 
"(2) COSTS.—^All costs of construction, operation, mainte-
nance, and replacement of water treatment and related facilities 
authorized by this Act and attributable to meeting the require-
ments of the treaty referred to in paragraph (1) shall be non-
reimbursable.". 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-283 
SEC. 603. FISH AND WILDLIFE. 
Section 2 of Public Law 89-108 (79 Stat. 433; 100 Stat. 419) 
is amended— 
(1) by striking subsections (b), (c), and (d) and inserting 
the following: 
"(b) FISH AND WILDLIFE COSTS.—^All fish and wildlife enhance-
ment costs incurred in connection with waterfowl refiiges, waterfowl 
production areas, and wildlife conservation areas proposed for Fed-
eral or State administration shall be nonreimbursable. 
"(c) RECREATION AREAS.— 
"(1) COSTS.—If non-Federal public bodies continue to agree 
to administer land and water areas approved for recreation 
and agree to bear not less than 50 percent of the separable 
costs of the unit allocated to recreation and attributable to 
those areas and all the costs of operation, maintenance, and 
replacement incurred in connection therewith, the remainder 
of the separable capital costs so allocated and attributed shall 
be nonreimbursable. 
"(2) APPROVAL.—^The recreation areas shall be approved 
by the Secretary in consultation and coordination with the 
State of North Dakota. 
"(d) NON-FEDERAL SHARE.—The non-Federal share of the sepa-
rable capital costs of the unit allocated to recreation shall be borne 
by non-Federal interests, using the following methods, as the Sec-
retary may determine to be appropriate: 
"(1) Services in kind. 
"(2) Payment, or provision of lands, interests therein, or 
facilities for the unit. 
"(3) Repayment, with interest, within 50 years of first 
use of unit recreation facilities."; 
(2) in subsection (e)— 
(A) by redesignating paragraphs (1) and (2) as para-
graphs (2) and (3), respectively; 
(B) by inserting "(1)" after "(e)"; 
(C) in paragraph (2) (as redesignated by subparagraph 
(A))-
(i) in the first sentence— 
(I) by striking "within ten years after initial 
unit operation to administer for recreation and 
fish and wildlife enhancement" and inserting "to 
administer for recreation"; and 
(II) by striking "which are not included within 
Federal waterfowl refuges and waterfowl produc-
tion areas"; and 
(ii) in the second sentence, by striking "or fish 
and wildlife enhancement"; and 
(D) in the first sentence of paragraph (3) (as redesig-
nated by subparagraph (A))— 
(i) by striking ", within ten years after initial oper-
ation of the unit,"; and 
(ii) by striking "paragraph (1) of this subsection" 
and inserting "paragraph (2)"; 
(3) in subsection (f), by striking "and fish and wildlife 
enhancement"; and 
(4) in subsection (j)— 
(A) in paragraph (1), by striking "prior to the comple-
tion of construction of Lonetree Dam and Reservoir"; and 
114 STAT. 2763A-284 
PUBLIC LAW 106-554—APPENDIX D 
(B) by adding at the end the following: 
"(4) TAAYER RESERVOIR.—Taayer Reservoir is deauthorized 
as a project feature. The Secretary, acting through the Commis-
sioner of Reclamation, shall acquire (including acquisition 
through donation or exchange) up to 5,000 acres in the Kraft 
and Pickell Slough areas and to manage the area as a compo-
nent of the National Wildlife Refuge System giving consider-
ation to the unique wildlife values of the area. In acquiring 
the lands which comprise the Kraft and Pickell Slough complex, 
the Secretary shall acquire wetlands in the immediate vicinity 
which may be hydrologically related and nearby uplands as 
may be necessary to provide for proper management of the 
complex. The Secretary shall provide for appropriate visitor 
access and control at the refuge. 
"(5) DEAUTHORIZATION OF LONETREE DAM AND RESERVOIR.— 
The Lonetree Dam and Reservoir is deauthorized, and the 
Secretary shall designate the lands acquired for the former 
reservoir site as a wildlife conservation area. The Secretary 
shall enter into an agreement with the State of North Dakota 
providing for the operation and maintenance of the wildlife 
conservation area as an enhancement feature, the costs of 
which shall be paid by the Secretary.". 
SEC. 604. INTEREST CALCULATION. 
Section 4 of PubUc Law 89-108 (100 Stat. 435) is amended 
by adding at the end the following: "Interest during construction 
shall be calculated only until such date as the Secretary declares 
any particular feature to be substantially complete, regardless of 
whether the feature is placed into service.". 
SEC. 605. IRRIGATION FACILITIES. 
Section 5 of Public Law 89-108 (100 Stat. 419) is amended— 
(1) by striking "SEC. 5. (a)(1)" and all that follows through 
subsection (c) and inserting the following: 
"SEC. 5. IRRIGATION FACILITIES. 
"(a) IN GENERAL.— 
"(1) AUTHORIZED DEVELOPMENT.—In addition to the 5,000-
acre Oakes Test Area in existence on the date of enactment 
of the Dakota Water Resources Act of 2000, the Secretary 
may develop irrigation in— 
"(A) the Turtle Lake service area (13,700 acres); 
"(B) the McClusky Canal service area (10,000 acres); 
and 
"(C) if the investment costs are fully reimbursed with-
out aid to irrigation from the Pick-Sloan Missouri Basin 
Program, the New Rockford Canal service area (1,200 
acres). 
"(2) DEVELOPMENT NOT AUTHORIZED.—None of the irriga-
tion authorized by this section may be developed in the Hudson 
Bay/Devils Lake Basin. 
"(3) No EXCESS DEVELOPMENT.—The Secretary shall not 
develop irrigation in the service areas described in paragraph 
(1) in excess of the acreage specified in that paragraph, except 
that the Secretary shall develop up to 28,000 acres of irrigation 
in other areas of North Dakota (such as the Elk/Charbonneau, 
Mon-Dak, Nesson Valley, Horsehead Flats, and Oliver-Mercer 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-285 
areas) that are not located in the Hudson Bay/Devils Lake 
drainage basin or James River drainage basin. 
"(4) PUMPING POWER.—Irrigation development authorized 
by this section shall be considered authorized units of the 
Pick-Sloan Missouri Basin Program and eligible to receive 
project pumping power. 
"(5) PRINCIPAL SUPPLY WORKS.—The Secretary shall main-
tain the Snake Creek Pumping Plant, New Rockford Canal, 
and McClusky Canal features of the principal supply works. 
Subject to the provisions of section (8) of this Act, the Secretary 
shall select a preferred alternative to implement the Dakota 
Water Resources Act of 2000. In making this selection, one 
of the alternatives the Secretary shall consider is whether 
to connect the principal supply works in existence on the date 
of enactment."; 
(2) by redesignating subsections (d), (e), and (f) as sub-
sections (b), (c), and (d), respectively; 
(3) in the first sentence of subsection (b) (as redesignated 
by paragraph (2)), by striking "(a)(1)" and inserting "(a)"; 
(4) in the first sentence of subsection (c) (as redesignated 
by paragraph (2)), by striking "Lucky Moimd (7,700 acres). 
Upper Six Mile Creek (7,500 acres)" and inserting "Lucky 
Mound (7,700 acres) and Upper Six Mile Creek (7,500 acres), 
or such other lands at Fort Berthold of equal acreage as may 
be selected by the tribe and approved by the Secretary,"; and 
(5) by adding at the end the following: 
"(e) IRRIGATION REPORT TO CONGRESS.— 
"(1) IN GENERAL.—^The Secretary shall investigate and pre-
pare a detailed report on the undesignated 28,000 acres in 
subsection (a)(3) as to costs and benefits for any irrigation 
units to be developed under Reclamation law. 
"(2) FINDING.—The report shall include a finding on the 
economic, financial and engineering feasibility of the proposed 
irrigation unit, but shall be limited to the undesignated 28,000 
acres. 
"(3) AUTHORIZATION.—If the Secretary finds that the pro-
posed construction is feasible, such irrigation units are author-
ized without further Act of Congress. 
"(4) DOCUMENTATION.—No expenditure for the construction 
of facilities authorized under this section shall be made until 
after the Secretary, in cooperation with the State of North 
Dakota, has prepared the appropriate documentation in accord-
ance with section 1 and pursuant to the National Environ-
mental PoHcy Act of 1969 (42 U.S.C. 4321 et seq.) analyzing 
the direct and indirect impacts of implementing the report.". 
SEC. 606. POWER. 
Section 6 of Pubhc Law 89-108 (79 Stat. 435; 100 Stat. 421) 
is amended— 
(1) in subsection (b)— 
(A) by striking "Notwithstanding the provisions of 
and inserting "Pursuant to the provisions of; and 
(B) by striking "revenues," and all that follows and 
inserting "revenues."; and 
(2) by striking subsection (c) and inserting the following: 
"(c) No INCREASE IN RATES OR EFFECT ON REPAYMENT METH-
ODOLOGY.—In accordance with the last sentence of section 302(a)(3) 
114 STAT. 2763A-286 
PUBLIC LAW 106-554—APPENDIX D 
of the Department of Energy Organization Act (42 U.S.C. 
7152(a)(3)), section 1(e) shall not result in any reallocation of project 
costs and shall not result in increased rates to Pick-Sloan Missouri 
Basin Program customers. Nothing in the Dakota Water Resources 
Act of 2000 alters or affects in any way the repayment methodology 
in effect as of the date of enactment of that Act for other features 
of the Pick-Sloan Missouri Basin Program.". 
SEC. 607. MUNICIPAL, RURAL, AND INDUSTRIAL WATER SERVICE. 
Section 7 of PubUc Law 89-108 (100 Stat. 422) is amended— 
(1) in subsection (a)(3)— 
(A) in the second sentence— 
(i) by striking "The non-Federal share" and insert-
ing "Unless otherwise provided in this Act, the non-
Federal share"; 
(ii) by striking "each water system" and inserting 
"water systems"; 
(iii) by inserting after the second sentence the 
following: "The State may use the Federal and non-
Federal funds to provide grants or loans for municipal, 
rural, and industrial water systems. The State shall 
use the proceeds of repaid loans for municipal, rural, 
and industrial water systems. Proceeds from loan 
repayments and any interest thereon shall be treated 
as Federal funds."; and 
(iv) by striking the last sentence and inserting 
the following: "The Southwest Pipeline Project, the 
Northwest Area Water Supply Project, the Red River 
Valley Water Supply Project, and other municipal, 
industrial, and rural water systems in the State of 
North Dakota shall be eligible for funding imder the 
terms of this section. Funding provided under this 
section for the Red River Valley Water Supply Project 
shall be in addition to funding for that project under 
section 10(a)(1)(B). The amount of non-Federal con-
tributions made after May 12, 1986, that exceeds the 
25 percent requirement shall be credited to the State 
for future use in municipal, rural, and industrial 
projects under this section."; and 
(2) by striking subsections (b), (c), and (d) and inserting 
the following: 
"(b) WATER CONSERVATION PROGRAM.—The State of North 
Dsikota may use funds provided under subsections (a) and (b)(1)(A) 
of section 10 to develop and implement a water conservation pro-
gram. The Secretary and the State shall jointly establish water 
conservation goals to meet the purposes of the State program and 
to improve the availability of water supplies to meet the purposes 
of this Act. If the State achieves the established water conservation 
goals, the non-Federal cost share for future projects under sub-
section (a)(3) shall be reduced to 24.5 percent. 
"(c) 
NONREIMBURSABILITY OF COSTS.—With respect to 
the 
Southwest Pipeline Project, the Northwest Area Water Supply 
Project, the Red River Valley Water Supply Project, and other 
municipal, industrial, and rural water systems in North Dakota, 
the costs of the features constructed on the Missouri River by 
the Secretary of the Army before the date of enactment of the 
Dakota Water Resources Act of 2000 shall be nonreimbursable. 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-287 
"(d) INDIAN MUNICIPAL RURAL AND INDUSTRIAL WATER SUP-
PLY.—^The Secretary shall construct, operate, and maintain such 
municipal, rural, and industrial water systems as the Secretary 
determines to be necessary to meet the economic, public health, 
and environmental needs of the Fort Berthold, Standing Rock, 
Turtle Mountain (including the Trenton Indian Service Area), and 
Fort Totten Indian Reservations and adjacent areas.". 
SEC. 608. SPECIFIC FEATURES. 
(a) SYKESTON CANAL.—Sykeston Canal is hereby deauthorized. 
(b) IN GENERAL.—Pubhc Law 89-108 (100 Stat. 423) is amended 
by striking section 8 and inserting the following: 
"SEC. 8. SPECIFIC FEATURES. 
"(a) RED RIVER VALLEY WATER SUPPLY PROJECT.— 
"(1) IN GENERAL.—Subject to the requirements of this sec-
tion, the Secretary shall construct a feature or features to 
provide water to the Sheyenne River water supply and release 
facility or such other feature or features as are selected under 
subsection (d). 
"(2) DESIGN AND CONSTRUCTION.—^The feature or features 
shall be designed and constructed to meet only the following 
water supply requirements as identified in the report prepared 
pursuant to subsection (b) of this section: Municipal, rural, 
and industrial water supply needs; ground water recharge; 
and streamflow augmentation. 
"(3) COMMENCEMENT OF CONSTRUCTION.—(A) If the Sec-
retary selects a project feature under this section that would 
provide water from the Missouri River or its tributaries to 
the Sheyenne River water supply and release facility or from 
the Missouri River or its tributaries to such other conveyance 
facility as the Secretary selects under this section, no later 
than 90 days after the completion of the final environmental 
impact statement, the Secretary shall transmit to Congress 
a comprehensive report which provides— 
"(i) a detailed description of the proposed project fea-
ture; 
"(ii) a summary of major issues addressed in the 
environmental impact statement; 
"(iii) likely effects, if any, on other States bordering 
the Missouri River and on the State of Minnesota; and 
"(iv) a description of how the project feature complies 
with the requirements of section 1(h)(1) of this Act (relating 
to the Boundary Waters Treaty of 1909). 
"(B) No project feature or features that would provide water 
from the Missouri River or its tributaries to the Sheyenne 
River water supply and release facility or from the Missouri 
River or its tributaries to such other conveyance facility as 
the Secretary selects under this section shall be constructed 
unless such feature is specifically authorized by an Act of 
Congress approved subsequent to the Secretary's transmittal 
of the report required in subparagraph (A). If, after complying 
with subsections (b) through (d) of this section, the Secretary 
selects a feature or features using only in-basin sources of 
water to meet the water needs of the Red River Valley identified 
in subsection (b), such features are authorized without further 
114 STAT. 2763A-288 
PUBLIC LAW 106-554—APPENDIX D 
Act of Congress. The Act of Congress referred to in this subpara-
graph must be an authorization bill, and shall not be a bill 
making appropriations. 
"(C) The Secretary may not commence construction on the 
feature until a master repayment contract or water service 
agreement consistent with this Act between the Secretary and 
the appropriate non-Federal entity has been executed. 
"(b) 
REPORT ON RED 
RIVER VALLEY WATER NEEDS AND 
OPTIONS.— 
"(1) IN GENERAL.—The Secretary of the Interior shall con-
duct a comprehensive study of the water quality and quantity 
needs of the Red River Valley in North Dakota and possible 
options for meeting those needs. 
"(2) NEEDS.—^The needs addressed in the report shall 
include such needs as— 
"(A) municipal, rural, and industrial water supplies; 
"(B) water quality; 
"(C) aquatic environment; 
"(D) recreation; and 
"(E) water conservation measures. 
"(3) PROCESS.—In conducting the study, the Secretary 
through an open and public process shall solicit input from 
gubernatorial designees from States that may be affected by 
possible options to meet such needs as well as designees from 
other Federal agencies with relevant expertise. For any option 
that includes an out-of-basin solution, the Secretary shall con-
sider the effect of the option on other States that may be 
affected by such option, as well as other appropriate consider-
ations. Upon completion, a draft of the study shall be provided 
by the Secretary to such States and Federal agencies. Such 
States and agencies shall be given not less than 120 days 
to review and comment on the study method, findings and 
conclusions leading to any alternative that may have an impact 
on such States or on resources subject to such Federal agencies' 
jurisdiction. The Secretary shall receive and take into consider-
ation any such comments and produce a final report and trans-
mit the final report to Congress. 
"(4) LIMITATION.—No design or construction of any feature 
or features that facilitate an out-of-basin transfer from the 
Missouri River drainage basin shall be authorized under the 
provisions of this subsection. 
"(c) ENVIRONMENTAL IMPACT STATEMENT.— 
"(1) IN GENERAL.—Nothing in this section shall be con-
strued to supersede any requirements under the National 
Environmental Policy Act or the Administrative Procedures 
Act. 
' "(2) DRAFT.— 
"(A) DEADLINE.—^Pursusint to an agreement between 
the Secretary and State of North Dakota as authorized 
under section 1(g), not later thsin 1 year after the date 
of enactment of the Dakota Water Resources Act of 2000, 
the Secretary and the State of North Dakota shall jointly 
prepare and complete a draft environmental impact state-
ment concerning all feasible options to meet the comprehen-
sive water quality and quantity needs of the Red River 
Valley and the options for meeting those needs, including 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-289 
the delivery of Missouri River water to the Red River 
Valley. 
"(B) REPORT ON STATUS.—If the Secretary and State 
of North Dakota cannot prepare and complete the draft 
environmental impact statement within 1 year after the 
date of enactment of the Dakota Water Resources Act of 
2000, the Secretary, in consultation and coordination with 
the State of North Dakota, shall report to Congress on 
the status of this activity, including an estimate of the 
date of completion. 
"(3) FINAL.— 
"(A) DEADLINE.—Not later than 1 year after filing the 
draft environmental impact statement, a final environ-
mental impact statement shall be prepared and published. 
"(B) REPORT ON STATUS.—If the Secretary and State 
of North Dakota cannot prepare and complete a final 
environmental impact statement within 1 year of the 
completion of the draft environmental impact statement, 
the Secretary, in consultation and coordination with the 
State of North Dakota, shall report to Congress on the 
status of this activity, including an estimate of the date 
of completion. 
"(d) PROCESS FOR SELECTION.— 
"(1) IN GENERAL.—^After reviewing the final report required 
by subsection (b)(1) and complying with subsection (c), the 
Secretary, in consultation and coordination with the State of 
North Dakota in coordination with affected local communities, 
shall select one or more project features described in subsection 
(a) that will meet the comprehensive water quality and quantity 
needs of the Red River Valley. The Secretary's selection of 
an alternative shall be subject to judicial review. 
"(2) AGREEMENTS.—If the Secretary selects an option under 
paragraph (1) that uses only in-basin sources of water, not 
later than 180 days after the record of decision has been 
executed, the Secretary shall enter into a cooperative agreement 
with the State of North Dakota to construct the feature or 
features selected. If the Secretary selects an option under para-
graph (1) that would require a further act of Congress imder 
the provisions of subsection (a), not later than 180 days after 
the date of enactment of legislation required under subsection 
(a) the Secretary shall enter into a cooperative agreement with 
the State of North Dakota to construct the feature or features 
authorized by that legislation. 
"(e) SHEYENNE RIVER WATER SUPPLY AND RELEASE OR ALTER-
NATE FEATURES.—The Secretary shall construct, operate, and main-
tain a Sheyenne River water supply and release feature (including 
a water treatment plant) capable of delivering 100 cubic feet per 
second of water or any other amount determined in the reports 
under this section, for the cities of Fargo and Grand Forks and 
surrounding communities, or such other feature or features as 
may be selected under subsection (d). 
"(f) DEVILS LAKE.—^No funds authorized under this Act may 
be used to carry out the portion of the feasibility study of the 
Devils Lake basin, North Dakota, authorized under the Energy 
and Water Development Appropriations Act of 1993 (Public Law 
102-377), that addresses the needs of the area for stabilized lake 
levels through inlet controls, or to otherwise study any facility 
114 STAT. 2763A-290 
PUBLIC LAW 106-554—APPENDIX D 
or carry out any activity that would permit the transfer of water 
from the Missouri River drainage basin into Devils Lake, North 
Dakota.". 
SEC. 609. OAKES TEST AREA TITLE TRANSFER. 
Public Law 89-108 (100 Stat. 423) is amended by striking 
section 9 and inserting the following: 
"SEC. 9. OAKES TEST AREA TITLE TRANSFER 
"(a) IN GENERAL.—^Not later than 2 years after execution of 
a record of decision under section 8(d) on whether to use the 
New Rockford Canal as a means of delivering water to the Red 
River Basin as described in section 8, the Secretary shall enter 
into an agreement with the State of North Dsikota, or its designee, 
to convey title and all or any rights, interests, and obligations 
of the United States in and to the Oakes Test Area as constructed 
and operated under Public Law 99-294 (100 Stat. 418) under such 
terms and conditions as the Secretary believes would fully protect 
the public interest. 
"(b) TERMS AND CONDITIONS.—^The agreement shall define the 
terms and conditions of the transfer of the facilities, lands, mineral 
estate, easements, rights-of-way and water rights including the 
avoidance of costs that the Federal Government would otherwise 
incur in the case of a failure to agree under subsection (d). 
"(c) COMPLIANCE.—The action of the Secretary under this sec-
tion shall comply with all applicable requirements of Federal, State, 
and local law. 
"(d) FAILURE TO AGREE.—If an agreement is not reached within 
the time limit specified in subsection (a), the Secretary shall dispose 
of the Oakes Test Area facilities under the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 471 et seq.).". 
SEC. 610. AUTHORIZATION OF APPROPRIATIONS. 
Section 10 of Public Law 89-108 (100 Stat. 424; 106 Stat. 
4669, 4739) is amended— 
(1) in subsection (a)— 
(A) by striking "(a)(1) There are authorized" and insert-
ing the following: 
"(a) WATER DISTRIBUTION FEATURES.— 
"(1) IN GENERAL.— 
"(A) MAIN STEM SUPPLY WORKS.—There is authorized"; 
(B) in paragraph (1)— 
(i) in the first sentence, by striking "$270,395,000 
for carrying out the provisions of section 5(a) through 
5(c) and section 8(a)(1) of this Act" and inserting 
"$164,000,000 to carry out section 5(a)"; 
(ii) by inserting after subparagraph (A) (as des-
ignated by clause (i)) the following: 
"(B) RED RIVER VALLEY WATER SUPPLY PROJECT.—^There 
is authorized to be appropriated to carry out section 8(a)(1) 
$200,000,000."; and 
(iii) by striking "Such sums" and inserting the 
following: 
"(C) AVAILABILITY.—Such sums"; and 
(C) in paragraph (2)— 
(i) by striking "(2) There is" and inserting the 
following: 
"(2) INDIAN IRRIGATION.— 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-291 
"(A) IN GENERAL.—There is"; 
(ii) by striking "for carrying out section 5(e) of 
this Act" and inserting "to carry out section 5(c)"; and 
(iii) by striking "Such sums" and inserting the 
following: 
"(B) AVAILABILITY.—Such sums"; 
(2) in subsection (b)— 
(A) by striking "(b)(1) There is" and inserting the fol-
lowing: 
"(b) MUNICIPAL, RURAL, AND INDUSTRIAL WATER SUPPLY.— 
"(1) STATEWIDE.— 
"(A) INITIAL AMOUNT.—There is"; 
(B) in paragraph (1)— 
(i) by inserting before "Such sums" the following: 
"(B) ADDITIONAL AMOUNT.—In addition to the amount 
under subparagraph (A), there is authorized to be appro-
priated to cany out section 7(a) $200,000,000."; and 
(ii) by striking "Such sums" and inserting the fol-
lowing: 
"(C) AVAILABILITY.—Such sums"; and 
(C) in paragraph (2)— 
(i) by striking "(2) There are authorized to be 
appropriated $61,000,000" and all that follows through 
"Act." and inserting the following: 
"(2) INDIAN MUNICIPAL, RURAL, AND INDUSTRIAL AND OTHER 
DELIVERY FEATURES.— 
"(A) INITIAL AMOUNT.—There is authorized to be 
appropriated— 
"(i) to carry out section 8(a)(1), $40,500,000; and 
"(ii) to carry out section 7(d), $20,500,000."; 
(ii) by inserting before "Such sums" the following: 
"(B) ADDITIONAL AMOUNT.— 
"(i) IN GENERAL.—In addition to the amount under 
subparagraph (A), there is authorized to be appro-
priated to carry out section 7(d) $200,000,000. 
"(ii) ALLOCATION.—^The amount under clause (i) 
shall be allocated as follows: 
"(I) $30,000,000 to the Fort Totten Indian Res-
ervation. 
"(II) $70,000,000 to the Fort Berthold Indian 
Reservation. 
"(IV) $80,000,000 to the Standing Rock Indian 
Reservation. 
"(V) $20,000,000 to the Turtle Mountain 
Indian Reservation."; and 
(iii) by striking "Such sums" and inserting the 
following: 
"(C) AVAILABILITY.—Such sums"; 
(3) in subsection (c)— 
(A) by striking "(c) There is" and inserting the follow-
ing: 
"(c) RESOURCES TRUST AND OTHER PROVISIONS.— 
"(1) INITIAL AMOUNT.—^There is"; and 
(B) by striking the second and third sentences and 
inserting the following: 
"(2) ADDITIONAL AMOUNT.—In addition to amount under 
paragraph (1), there are authorized to be appropriated— 
114 STAT. 2763A-292 
PUBLIC LAW 106-554—APPENDIX D 
"(A) $6,500,000 to carry out recreational projects; and 
"(B) an additional $25,000,000 to carry out section 
11; 
to remain available until expended. 
"(3) RECREATIONAL PROJECTS.—Of the funds authorized 
under paragraph (2) for recreational projects, up to $1,500,000 
may be used to fund a wetland interpretive center in the 
State of North Dakota. 
"(4) OPERATION AND MAINTENANCE.— 
"(A) IN GENERAL.—^There are authorized to be appro-
priated such sums as are necessary for operation and 
maintenance of the unit (including the mitigation and 
enhancement features). 
"(B) AUTHORIZATION LIMITS.—^Expenditures for oper-
ation and maintenance of features substantially completed 
and features constructed before the date of enactment of 
the Dakota Water Resources Act of 2000, including funds 
expended for such purposes since the date of enactment 
of Public Law 99-294, shall not be counted against the 
authorization limits in this section. 
"(5) MITIGATION AND ENHANCEMENT LAND.—On or about 
the date on which the features authorized by section 8(a) are 
operational, a separate account in the Natural Resources Trust 
authorized by section 11 shall be established for operation 
and maintenance of the mitigation and enhancement land asso-
ciated with the unit."; and 
(4) by striking subsection (e) and inserting the following: 
"(e) INDEXING.—^The $200,000,000 amount under subsection 
(b)(1)(B), the $200,000,000 amount under subsection (a)(1)(B), and 
the funds authorized under subsection (b)(2) shall be indexed as 
necessary to allow for ordinary fluctuations of construction costs 
incurred after the date of enactment of the Dakota Water Resources 
Act of 2000 as indicated by engineering cost indices applicable 
for the type of construction involved. All other authorized cost 
ceilings shall remain unchanged.". 
SEC. 
611. 
NATURAL 
RESOURCES 
TRUST. 
Section 11 of Public Law 89-108 (100 Stat. 424) is amended— 
(1) by striking subsection (a) and inserting the following: 
"(a) CONTRIBUTION.— 
"(1) INITIAL AUTHORIZATION.— 
"(A) IN GENERAL.—From the sums appropriated under 
section 10 for the Garrison Diversion Unit, the Secretary 
shall make an annual Federal contribution to a Natural 
Resources Trust established by non-Federal interests in 
accordance with subsection (b) and operated in accordance 
with subsection (c). 
"(B) AMOUNT.—The total amount of Federal contribu-
tions under subparagraph (A) shall not exceed $12,000,000. 
"(2) ADDITIONAL AUTHORIZATION.— 
"(A) IN GENERAL.—In addition to the amount author-
ized in paragraph (1), the Secretary shall make annual 
Federal contributions to the Natural Resources Trust imtil 
the amount authorized by section 10(c)(2)(B) is reached, 
in the manner stated in subparagraph (B). 
"(B) ANNUAL AMOUNT.—The amount of the contribution 
under subparagraph (A) for each fiscal year shall be the 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-293 
amount that is equal to 5 percent of the total amount 
that is appropriated for the fiscal year under subsections 
(a)(1)(B) and (b)( 1)(B) of section 10.". 
(2) in subsection (b), by striking 'Wetlands Trust" and 
inserting "Natural Resources Trust"; and 
(3) in subsection (c)— 
(A) by striking "Wetland Trust" and inserting "Natural 
Resources Trust"; 
(B) by striking "are met" and inserting "is met"; 
(C) in paragraph (1), by inserting ", grassland conserva-
tion and riparian areas" after "habitat"; and 
(D) in paragraph (2), by adding at the end the follow-
ing: 
"(C) The power to fund incentives for conservation 
practices by landowners.". 
TITLE VII 
SEC. 701. FINDINGS. 
Congress finds that— 
(1) there is a continuing need for reconciliation between 
Indians and non-Indians; 
(2) the need may be met partially through the promotion 
of the understanding of the history and culture of Sioux Indian 
tribes; 
(3) the establishment of a Sioux Nation Tribal Supreme 
Court will promote economic development on reservations of 
the Sioux Nation and provide investors that contribute to that 
development a greater degree of certainty and confidence by— 
(A) reconciling conflicting tribal laws; and 
(B) strengthening tribal court systems; 
(4) the reservations of the Sioux Nation— 
(A) contain the poorest counties in the United States; 
and 
(B) lack adequate tools to promote economic develop-
ment and the creation of 
jobs; 
(5) the establishment of a Native American Economic 
Development Council will assist in promoting economic growth 
and reducing poverty on reservations of the Sioux Nation by— 
(A) coordinating economic development efforts; 
(B) centrgJizing expertise concerning Federal assist-
ance; and 
(C) facilitating the raising of fiinds from private dona-
tions to meet matching requirements under certain Federal 
assistance programs; 
(6) there is a need to enhance and strengthen the capacity 
of Indian tribal governments and tribal justice systems to 
address conflicts which impair relationships within Indian 
communities and between Indian and non-Indian communities 
and individuals; and 
(7) the establishment of the National Native American 
Mediation Training Center, with the technical assistance of 
tribal and Federal agencies, including the Community Relations 
Service of the Department of Justice, would enhance and 
strengthen the mediation skills that are useful in reducing 
tensions and resolving conflicts in Indian communities and 
between Indian and non-Indian communities and individuals. 
114 STAT. 2763A-294 
PUBLIC LAW 106-554—APPENDIX D 
SEC. 702. DEFINITIONS. 
In this title: 
(1) INDIAN TRIBE.—^The term "Indian tribe" has the meaning 
given that term in section 4(e) of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 450b(e)). 
(2) SECRETARY.—The term "Secretary" means the Secretary 
of the Interior. 
(3) SIOUX NATION.—The term "Sioux Nation" means the 
Indian tribes comprising the Sioux Nation. 
SEC. 703. RECONCILIATION CENTER. 
(a) ESTABLISHMENT.—^The Secretary of Housing and Urban 
Development, in cooperation with the Secretary, shall establish, 
in accordance with this section, a reconciliation center, to be known 
as "Reconciliation Place". 
(b) LOCATION.—^Notwithstanding any other provision of law, 
the Secretary shall take into trust for the benefit of the Sioux 
Nation the parcel of land in Stanley County, South Dakota, that 
is described as "The Reconciliation Place Addition" that is owned 
on the date of enactment of this Act by the Wakpa Sica Historical 
Society, Inc., for the purpose of establishing and operating The 
Reconciliation Place. 
(c) PURPOSES.—The purposes of Reconciliation Place shall be 
as follows: 
(1) To enhance the knowledge and understanding of the 
history of Native Americans by— 
(A) displaying and interpreting the history, art, and 
culture of Indian tribes for Indians and non-Indians; and 
(B) providing an accessible repository for— 
(i) the history of Indian tribes; and 
(ii) the family history of members of Indian tribes. 
(2) To provide for the interpretation of the encounters 
between Lewis and Clark and the Sioux Nation. 
(3) To house the Sioux Nation Tribal Supreme Court. 
(4) To house the Native American Economic Development 
Council. 
(5) To house the National Native American Mediation 
Training Center to train tribal personnel in conflict resolution 
and alternative dispute resolution. 
(d) GRANT.— 
(1) IN GENERAL.—^The Secretary of Housing and Urban 
Development shall offer to award a grant to the Wakpa Sica 
Historical Society of Fort Pierre, South Dakota, for the construc-
tion of Reconciliation Place. 
(2) GRANT AGREEMENT.— 
(A) IN GENERAL.—^As a condition to receiving the grant 
under this subsection, the appropriate official of the Wakpa 
Sica Historical Society shall enter into a grant agreement 
with the Secretary of Housing and Urban Development. 
(B) CONSULTATION.—Before entering into a grant 
agreement under this paragraph, the Secretary of Housing 
and Urban Development shall consult with the Secretary 
concerning the contents of the agreement. 
(C) DUTIES OF THE WAKPA SICA HISTORICAL SOCIETY.— 
The grant agreement under this paragraph shall specify 
the duties of the Wakpa Sica Historical Society under this 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-295 
section and arrangements for the maintenance of Reconcili-
ation Place. 
(3) AUTHORIZATION OF APPROPRIATIONS.—There are author-
ized to be appropriated to the Department of Housing and 
Urban Development $18,258,441, to be used for the grant under 
this section. 
SEC, 704. SIOUX NATION SUPREME COURT AND NATIONAL NATIVE 
AMERICAN MEDIATION TRAINING CENTER. 
(a) IN GENERAL.—To ensure the development and operation 
of the Sioux Nation Tribal Supreme Court and the National Native 
American Mediation Training Center, the Attorney General of the 
United States shall use available funds to provide technical and 
financial assistance to the Sioux Nation. 
(b) AUTHORIZATION OF APPROPRIATIONS.—^To cany out this sec-
tion, there are authorized to be appropriated to the Department 
of Justice such sums as are necessary. 
TITLE VIII—ERIE CANALWAY NATIONAL HERITAGE 
CORRIDOR 
SEC. 801. SHORT TITLE; DEFINITIONS. 
(a) SHORT TITLE.—^This title may be cited as the "Erie Canalway 
National Heritage Corridor Act". 
(b) DEFINITIONS.—For the purposes of this title, the following 
definitions shall apply: 
(1) ERIE CANALWAY.—The term "Erie Canalway" means 
the 524 miles of navigable canal that comprise the New York 
State Canal System, including the Erie, Ca3aiga and Seneca, 
Oswego, and Champlain Canals and the historic alignments 
of these canals, including the cities of Albany and Buffalo. 
(2) CANALWAY PLAN.—The term "Canalway Plan" means 
the comprehensive preservation and management plan for the 
Corridor required under section 806. 
(3) COMMISSION.—^The term "Commission" means the Erie 
Canalway National Heritage Corridor Commission established 
under section 804. 
(4) CORRIDOR.—The term "Corridor" means the Erie 
Canalway National Heritage Corridor established under section 
803. 
(5) GOVERNOR.—The term "Governor" means the Grovemor 
of the State of New York. 
(6) SECRETARY.—The term "Secretary" means the Secretary 
of the Interior. 
SEC. 802. FINDINGS AND PURPOSES. 
(a) FINDINGS.—Congress finds that— 
(1) the year 2000 marks the 175th Anniversary of New 
York State's creation and stewardship of the Erie Canalway 
for commerce, transportation, 
and recreational 
purposes, 
establishing the network which made New York the "Empire 
State" and the Nation's premier commercial and financial cen-
ter; 
(2) the canals and adjacent areas that comprise the Erie 
Canalway are a nationally significant resource of historic and 
recreational value, which merit Federal recognition and assist-
ance; 
114 STAT. 2763A-296 
PUBLIC LAW 106-554—APPENDIX D 
(3) the Erie Canalway was instrumental in the estabUsh-
ment of strong poHtical and cultural ties between New England, 
upstate New York, and the old Northwest and facilitated the 
movement of ideas and people ensuring that social reforms 
like the abolition of slavery and the women's rights movement 
spread across upstate New York to the rest of the country; 
(4) the construction of the Erie Canalway was considered 
a supreme engineering feat, and most American canals were 
modeled after New York State's canal; 
(5) at the time of construction, the Erie Canalway was 
the largest public works project ever undertaken by a State, 
resulting in the creation of critical transportation and commer-
cial routes to transport passengers and goods; 
(6) the Erie Canalway played a key role in turning New 
York City into a major port and New York State into the 
preeminent center for commerce, industry, and finance in North 
America and provided a permanent commercial link between 
the Port of New York and the cities of eastern Canada, a 
cornerstone of the peaceful relationship between the two coim-
tries; 
(7) the Erie Canalway proved the depth and force of Amer-
ican ingenuity, solidified a national identity, and found an 
enduring place in American legend, song, and art; 
(8) there is national interest in the preservation and 
interpretation of the Erie Canalway's important historical, 
natural, cultural, and scenic resources; and 
(9) partnerships among Federal, State, and local govern-
ments and their regional entities, nonprofit organizations, and 
the private sector offer the most effective opportunities for 
the preservation and interpretation of the Erie Canalway. 
(b) PURPOSES.—The purposes of this title are— 
(1) to designate the Erie Canalway National Heritage Cor-
ridor; 
(2) to provide for and assist in the identification, preserva-
tion, promotion, maintenance, and interpretation of the histori-
cal, natural, cultural, scenic, and recreational resources of the 
Erie Canalway in ways that reflect its national significance 
for the benefit of current and future generations; 
(3) to promote and provide access to the Erie Canalwa3^s 
historical, natural, cultural, scenic, and recreational resources; 
(4) to provide a framework to assist the State of New 
York, its units of local government, and the communities within 
the Erie Canalway in the development of integrated cultural, 
historical, recreational, economic, and community development 
programs in order to enhance and interpret the unique and 
nationally significant resources of the Erie Canalway; and 
(5) to authorize Federal financial and technical assistance 
to the Commission to serve these purposes for the benefit 
of the people of the State of New York and the Nation. 
SEC. 803. THE ERIE CANALWAY NATIONAL HERITAGE CORRIDOR. 
(a) ESTABLISHMENT.—To carry out the purposes of this title 
there is established the Erie Canalway National Heritage Corridor 
in the State of New York. 
(b) BOUNDARIES.—The boundaries of the Corridor shall include 
those lands generally depicted on a map entitled "Erie Canalway 
National Heritage Area" numbered ERIE/80,000 and dated October 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-297 
2000. This map shall be on file and available for public inspection 
in the appropriate office of the National Park Service, the office 
of the Commission, and the office of the New York State Canal 
Corporation in Albany, New York. 
(c) OWNERSHIP AND OPERATION OF THE NEW YORK STATE CANAL 
SYSTEM.—The New York State Canal System shall continue to 
be owned, operated, and managed by the State of New York. 
SEC. 804. THE ERIE CANALWAY NATIONAL HERITAGE CORRIDOR 
COMMISSION. 
(a) ESTABLISHMENT.—There is established the Erie Canalway 
National Heritage Corridor Commission. The purpose of the 
Commission shall be— 
(1) to work with Federal, State, and local authorities to 
develop and implement the Canalway Plan; and 
(2) to foster the integration of canal-related historical, cul-
tural, recreational, scenic, economic, and community develop-
ment initiatives within the Corridor. 
(b) MEMBERSHIP.—^The Commission shall be composed of 27 
members as follows: 
(1) The Secretary of the Interior, ex officio or the Secretary's 
designee. 
(2) Seven members, appointed by the Secretary after consid-
eration of recommendations submitted by the Governor and 
other appropriate officials, with knowledge and experience of 
the following agencies or those agencies' successors: The New 
York State Secretary of State, the New York State Department 
of Environment Conservation, the New York State Office of 
Parks, Recreation and Historic Preservation, the New York 
State Department of Agriculture and Markets, the New York 
State Department of Transportation, and the New York State 
Canal Corporation, and the Empire State Development Cor-
poration. 
(3) The remaining 19 members who reside within the Cor-
ridor and are geographically dispersed throughout the Corridor 
shall be from local governments and the private sector with 
knowledge of tourism, economic and community development, 
regional planning, historic preservation, cultural or natural 
resource management, conservation, recreation, and education 
or museum services. These members will be appointed by the 
Secretary as follows: 
(A) Eleven members based on a recommendation from 
each member of the United States House of Representatives 
whose district shall encompass the Corridor. Each shall 
be a resident of the district from which they shall be 
recommended. 
(B) Two members based on a recommendation from 
each United States Senator from New York State. 
(C) Six members who shall be residents of any county 
constituting the Corridor. One such member shall have 
knowledge and experience of the Canal Recreationway 
Commission. 
(c) APPOINTMENTS AND VACANCIES.—Members of the Commis-
sion other than ex officio members shall be appointed for terms 
of 3 years. Of the original appointments, six shall be for a term 
of 1 year, six shall be for a term of 2 years, and seven shall 
be for a term of 3 years. Any member of the Commission appointed 
114 STAT. 2763A-298 
PUBLIC LAW 106-554—APPENDIX D 
for a definite term may serve after expiration of the term until 
the successor of the member is appointed. Any member appointed 
to fill a vacancy shall serve for the remainder of the term for 
which the predecessor was appointed. Any vacancy on the Commis-
sion shall be filled in the same manner in which the original 
appointment was made. 
(d) COMPENSATION.—Members of the Commission shall receive 
no compensation for their service on the Commission. Members 
of the Commission, other than employees of the State and Canal 
Corporation, while away from their homes or regular places of 
business to perform services for the Commission, shall be allowed 
travel expenses, including per diem in lieu of subsistence, in the 
same manner as persons employed intermittently in Government 
service are allowed under section 5703 of title 5, United States 
Code. 
(e) ELECTION OF OFFICES.—^The Commission shall elect the 
chairperson and the vice chairperson on an annual basis. The 
vice chairperson shall serve as the chairperson in the absence 
of the chairperson. 
(f) QUORUM AND VOTING.—^Fourteen members of the Commis-
sion shall constitute a quorum but a lesser number may hold 
hearings. Any member of the Commission may vote by means 
of a signed proxy exercised by another member of the Commission, 
however, any member voting by proxy shall not be considered 
present for purposes of establishing a quorum. For the transaction 
of any business or the exercise of any power of the Commission, 
the Commission shall have the power to act by a majority vote 
of the members present at any meeting at which a quorum is 
in attendance. 
(g) MEETINGS.—The Commission shall meet at least quarterly 
at the call of the chairperson or 14 of its members. Notice of 
Commission meetings £ind agendas for the meeting shall be pub-
lished in local newspapers throughout the Corridor. Meetings of 
the Commission shall be subject to section 552b of title 5, United 
States Code (relating to open meetings). 
(h) POWERS OF THE COMMISSION.—To the extent that Federal 
funds are appropriated, the Commission is authorized— 
(1) to procure temporary and intermittent services and 
administrative facilities at rates determined to be reasonable 
by the Commission to carry out the responsibilities of the 
Commission; 
(2) to request and accept the services of personnel detailed 
from the State of New York or £iny political subdivision, £ind 
to reimburse the State or political subdivision for such services; 
(3) to request and accept the services of any Federal agency 
personnel, and to reimburse the Federal agency for such serv-
ices; 
(4) to appoint and fix the compensation of staff to carry 
out its duties; 
(5) to enter into cooperative agreements with the State 
of New York, with any political subdivision of the State, or 
any person for the purposes of carrying out the duties of the 
Commission; 
(6) to make grants to assist in the preparation and 
implementation of the Canalway Plan; 
(7) to seek, accept, and dispose of gifts, bequests, grants, 
or donations of money, personal property, or services, received 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-299 
from any source. For purposes of section 170(c) of the Internal 
Revenue Code of 1986, any gift to the Commission shall be 
deemed to be a gift to the United States; 
(8) to assist others in developing educational, informational, 
and interpretive programs and facilities, and other such activi-
ties that may promote the implementation of the Canalway 
Plan; 
(9) to hold hearings, sit and act at such times and places, 
take such testimony, and receive such evidence, as the Commis-
sion may consider appropriate; the Commission may not issue 
subpoenas or exercise any subpoena authority; 
(10) to use the United States mails in the same manner 
as other departments or agencies of the United States; 
(11) to request and receive from the Administrator of Gen-
eral Services, on a reimbursable basis, such administrative 
support services as the Commission may request; and 
(12) to establish such advisory groups as the Commission 
deems necessary. 
(i) ACQUISITION OF PROPERTY.—^Except as provided for leasing 
administrative facilities under section 804(h)(1), the Commission 
may not acquire any real property or interest in real property. 
(j) TERMINATION.—The Commission shall terminate on the day 
occurring 10 years after the date of enactment of this title. 
SEC. 805. DUTIES OF THE COMMISSION. 
(a) PREPARATION OF CANALWAY PLAN.—^Not later than 3 years 
after the Commission receives Federal funding for this purpose, 
the Commission shall prepare and submit a comprehensive 
preservation and management Canalway Plan for the Corridor to 
the Secretary and the Governor for review and approval. In addition 
to the requirements outlined for the Canalway Plan in section 
806, the Canalway Plan shall incorporate and integrate existing 
Federal, State, and local plans to the extent appropriate regarding 
historic preservation, conservation, education and interpretation, 
community development, and tourism-related economic development 
for the Corridor that are consistent with the purpose of this title. 
The Commission shall solicit public comment on the development 
of the Canalway Plan. 
(b) IMPLEMENTATION OF CANALWAY PLAN.—^After the Commis-
sion receives Federal funding for this purpose, and after review 
and upon approval of the Canalway Plan by the Secretary and 
the Governor, the Commission shall— 
(1) undertake action to implement the Canalway Plan so 
as to assist the people of the State of New York in enhancing 
and interpreting the historical, cultural, educational, natural, 
scenic, and recreational potential of the Corridor identified 
in the Canalway Plan; and 
(2) support public and private efforts in conservation and 
preservation of the Canalway's cultural and natural resources 
and economic revitalization consistent with the goals of the 
Canalway Plan. 
(c) PRIORITY ACTIONS.—Priority actions which may be carried 
out by the Commission under section 805(b), include— 
(1) assisting in the appropriate preservation treatment of 
the remaining elements of the original Erie Canal; 
114 STAT. 2763A-300 
PUBLIC LAW 106-554—APPENDIX D 
(2) assisting State, local governments, and nonprofit 
organizations in designing, establishing, and maintaining visi-
tor centers, museums, and other interpretive exhibits in the 
Corridor; 
(3) assisting in the public awareness and appreciation for 
the historic, cultural, natural, scenic, and recreational resources 
and sites in the Corridor; 
(4) assisting the State of New York, local governments, 
and nonprofit organizations in the preservation and restoration 
of any historic building, site, or district in the Corridor; 
(5) encouraging, by appropriate means, enhanced economic 
development in the Corridor consistent with the goals of the 
Canalway Plan and the purposes of this title; and 
(6) ensuring that clear, consistent signs identifying access 
points and sites of interest are put in place in the Corridor. 
(d) ANNUAL REPORTS AND AUDITS.—For any year in which 
Federal funds have been received under this title, the Commission 
shall submit an smnual report and shall make available an audit 
of all relevant records to the Governor and the Secretary identifying 
its expenses and any income, the entities to which any grants 
or technical assistance were made during the year for which the 
report was made, and contributions by other parties toward achiev-
ing Corridor purposes. 
SEC. 806. CANALWAY PLAN. 
(a) CANALWAY PLAN REQUIREMENTS.—The Canalway Plan 
shall— 
(1) include a review of existing plans for the Corridor, 
including the Canal Recreationway Plan and Canal Revitaliza-
tion Program, and incorporate them to the extent feasible to 
ensure consistence with local, regional, and State planning 
efforts; 
(2) provide a thematic inventory, survey, and evaluation 
of historic properties that should be conserved, restored, devel-
oped, or maintained because of their natural, cultural, or his-
toric significance within the Corridor in accordance with the 
regulations for the National Register of Historic Places; 
(3) identify public and private-sector preservation goals 
and strategies for the Corridor; 
(4) include a comprehensive interpretive plan that identi-
fies, develops, supports, and enhances interpretation and edu-
cation programs within the Corridor that may include— 
(A) research related to the construction and history 
of the canals and the cultural heritage of the canal workers, 
their families, those that traveled along the canals, the 
associated farming activities, the landscape, and the 
communities; 
(B) documentation of and methods to support the 
perpetuation of music, art, poetry, literature and folkways 
associated with the canals; and 
(C) educational and interpretative programs related 
to the Erie Canalway developed in cooperation with State 
and local governments, educational institutions, and non-
profit institutions; 
(5) include a strategy to further the recreational develop-
ment of the Corridor th^t will enable users to uniquely experi-
ence the canal system; 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-301 
(6) propose programs to protect, interpret, and promote 
the Corridor's historical, cultural, recreational, educational, sce-
nic, and natural resources; 
(7) include an inventory of canal-related natural, cultural 
and historic sites and resources located in the Area; 
(8) recommend Federal, State, and local strategies and 
policies to support economic development, especially tourism-
related development and recreation, consistent with the pur-
poses of the Corridor; 
(9) develop criteria and priorities for financial preservation 
assistance; 
(10) identify and foster strong cooperative relationships 
between the National Park Service, the New York State Canal 
Corporation, other Federal and State agencies, and nongovern-
mental organizations; 
(11) recommend specific areas for development of interpre-
tive, educational, and technical assistance centers associated 
with the Corridor; and 
(12) contain a program for implementation of the Csmalway 
Plan by all necessary parties. 
(b) APPROVAL OF THE CANALWAY PLAN.—The Secretary and 
the Governor shall approve or disapprove the Canalway Plan not 
later than 90 days after receiving the Canalway Plan. 
(c) CRITERM..—The Secretary may not approve the plan unless 
the Secretary finds that the plan, if implemented, would adequately 
protect the significant historical, cultural, natural, and recreational 
resources of the Corridor and consistent with such protection pro-
vide adequate and appropriate outdoor recreational opportunities 
and economic activities within the Corridor. In determining whether 
or not to approve the Canalway Plan, the Secretary shall consider 
whether— 
(1) the Commission has afforded adequate opportunity, 
including public hearings, for public and governmental involve-
ment in the preparation of the Canalway Plan; and 
(2) the Secretary has received adequate assurances from 
the Governor and appropriate State officials that the rec-
ommended implementation program identified in the plan will 
be initiated within a reasonable time after the date of approval 
of the Canalway Plan and such program will ensure effective 
implementation of State and local aspects of the Canalway 
Plan. 
(d) DISAPPROVAL OF CANALWAY PLAN.—If the Secretary or the 
Governor do not approve the Canalway Plan, the Secretary or 
the Governor shall advise the Commission in writing within 90 
days the reasons therefore and shall indicate any recommendations 
for revisions. Following completion of any necessary revisions of 
the Canalway Plan, the Secretary and the Governor shall have 
90 days to either approve or disapprove of the revised Canalway 
Plan. 
(e) AMENDMENTS TO CANALWAY PLAN.—The Secretary and the 
Governor shall review substantial amendments to the Canalway 
PlEin. Funds appropriated pursuant to this title may not be 
expended to implement the changes made by such amendments 
until the Secretary and the Governor approve the amendments. 
114 STAT. 2763A-302 
PUBLIC LAW 106-554~APPENDIX D 
SEC. 807. DUTIES OF THE SECRETARY. 
(a) IN GENERAL.—The Secretary is authorized to assist the 
Commission in the preparation of the Canalway Plan. 
(b) 
TECHNICAL 
ASSISTANCE.—^Pursuant 
to an 
approved 
Canalway Plan, the Secretary is authorized to enter into cooperative 
agreements with, provide technical assistance to and award grants 
to the Commission to provide for the preservation and interpretation 
of the natural, cultural, historical, recreational, and scenic resources 
of the Corridor, if requested by the Commission. 
(c) EARLY ACTIONS.—Prior to approval of the Canalway Plan, 
with the approval of the Commission, the Secretary may provide 
technical and plgmning assistance for early actions that are impor-
tant to the purposes of this title and that protect and preserve 
resources. 
(d) CANALWAY PLAN IMPLEMENTATION.—^Upon approval of the 
Canalway Plan, the Secretary is authorized to implement those 
activities that the Canalway Plan has identified that are the respon-
sibility of the Secretary or agent of the Secret£iry to undertake 
in the implementation of the Canalway Plan. 
(e) DETAIL.—Each fiscal year during the existence of the 
Commission and upon the request of the Commission, the Secretary 
shall detail to the Commission, on a nonreimbursable basis, two 
employees of the Department of the Interior to enable the Commis-
sion to carry out the Commission's duties with regard to the 
preparation and approval of the Canalway Plan. Such detail shall 
be without interruption or loss of civil service status, benefits, 
or privileges. 
SEC. 808. DUTIES OF OTHER FEDERAL ENTITIES. 
Any Federal entity conducting or supporting any activity 
directly affecting the Corridor, and any unit of Government acting 
pursuant to a grant of Federal funds or a Federal permit or agree-
ment conducting or supporting such activities may— 
(1) consult with the Secretary and the Commission with 
respect to such activities; 
(2) cooperate with the Secretary and the Commission in 
carrying out their duties under this title and coordinate such 
activities with the carrying out of such duties; and 
(3) conduct or support such activities in a manner consist-
ent with the Canalway Plan unless the Federal entity, after 
consultation with the Secretary and the Commission, deter-
mines there is no practicable alternative. 
SEC. 809. SAVINGS PROVISIONS. 
(a) AUTHORITY OF GOVERNMENTS.—^Nothing in this title shall 
be construed to modify, enlarge, or diminish any authority of the 
Federal, State, or local governments to regulate any use of land 
as provided for by law or regulation. 
(b) ZONING OR LAND.—^Nothing in this title shall be construed 
to grant powers of zoning or land use to the Commission. 
(c) LOCAL AUTHORITY AND PRIVATE PROPERTY.—^Nothing in this 
title shall be construed to affect or to authorize the Commission 
to interfere with— 
(1) the rights of any person with respect to private property; 
(2) any local zoning ordinance or land use plan of the 
State of New York or political subdivision thereof; or 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-3()3 
(3) any State or local canal-related development plans 
including but not limited to the Canal Recreationway Plan 
and the Canal Revitalization Program. 
(d) FISH AND WILDLIFE.—The designation of the Corridor shall 
not be diminish the authority of the State of New York to manage 
fish and wildlife, including the regulation of fishing and hunting 
within the Corridor. 
SEC. 810. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.— 
(1) CORRIDOR.—There is authorized to be appropriated for 
the Corridor not more than $1,000,000 for any fiscal year. 
Not more than a total of $10,000,000 may be appropriated 
for the Corridor under this title. 
(2) MATCHING REQUIREMENT.—Federal funding provided 
under this paragraph may not exceed 50 percent of the total 
cost of any activity carried out with such funds. The non-
Federal share of such support may be in the form of cash, 
services, or in-kind contributions, fairly valued. 
(b) OTHER FUNDING.—In addition to the sums authorized in 
subsection (a), there are authorized to be appropriated to the Sec-
retary of the Interior such sums as are necessary for the Secretary 
for planning and technical assistance. 
TITLE IX—LAW ENFORCEMENT PAY EQUITY 
SEC. 901. SHORT TITLE. 
This title may be cited as the "Law Enforcement Pay Equity 
Act of 2000". 
SEC. 902. ESTABLISHMENT OF UNIFORM SALARY SCHEDULE FOR 
UNITED STATES SECRET SERVICE UNIFORMED DIVISION 
AND UNITED STATES PARK POLICE. 
(a) IN GENERAL.—Section 501(c)(1) of the District of Columbia 
Police and Firemen's Salary Act of 1958 (sec. 4^416(c)(1), D.C. 
Code) is amended to read as follows: 
"(c)(1) The annual rates of basic compensation of officers and 
members of the United States Secret Service Uniformed Division 
and the United States Park Police, serving in classes corresponding 
or similar to those in the salary schedule in section 101, shall 
be fixed in accordance with the following schedule of rates: 
"Salary 
class and 
title 
Time 
be-
tween 
steps 
Years in 
service 
1: Private ... 
3: Detective 
4: Sergeant 
5: Lieuten-
ant 1 
7: Captain i 
8: Inspector/ 
Mayor' .... 
9: Deputy 
Chiefi 
Stepl 
32,623 
Step 2 
52 weeks 
1 
34,587 
Step 3 
2 
36,626 
42,378 
Step 4 
3 
38,306 
44,502 
46,151 
Steps 
104 1
) 
5 
41,001 
46,620 
48,446 
50,910 
Step 6 
treeks 
7 
43,728 
48,746 
50,746 
53,462 
59,802 
69,163 
79,768 
Step? 
9 
45,407 
50,837 
53,056 
56,545 
62,799 
72,760 
85,158 
114 STAT. 2763A-304 
PUBLIC LAW 106-554—APPENDIX D 
"Salary 
class and 
title 
10: Assist-
ant 
Chief2 
11: Chief, 
United 
States Se-
cret Serv-
ice Uni-
formed 
Division, 
United 
States 
Park Po-
lice* 
S t e p l 
Step 2 
Step 3 
Step 4 
Step 5 
Step 6 
S t e p ? 
iThe rate of basic pay for positions in Salaiy Class 5, 7, 8, and 9 is limited to 95 percent of the 
rate of pay for level V of the Executive Schedule. 
2 The rate of basic pay for positions in Salary Class 10 will be equal to 95 percent of the rate of 
pay for level V of the Executive Schedule. 
^The rate of basic pay for positions in Salary Class 11 will be equal to the rate of pay for level V 
of the Executive Schedule. 
"Salary 
class and 
title 
Time 
be-
tween 
steps 
Years in 
service 
1: Private ... 
3: Detective 
4: Sergeant 
5: Lieuten-
ant 1 
7: Captain i 
8: Inspector/ 
Major' .... 
9: Deputy 
Chief! 
10: Assist-
ant 
Chief* 
11: Chief, 
United 
States Se-
cret Serv-
ice Uni-
formed 
Division, 
United 
States 
Park Po-
lice* 
Steps 
Step 9 
104 weeks 
11 
47,107 
52,972 
55,372 
59,120 
65,797 
76,542 
90,578 
13 
48,801 
55,086 
57,691 
61,688 
68,757 
80,524 
95,980 
Step 10 
156 weeks 
15 
50,498 
57,204 
59,999 
64,258 
71,747 
83,983 
99,968 
Step 11 
Step 12 
Step 13 
Step 14 
208 weeks 
18 
53,448 
61,212 
63,558 
68,197 
76,292 
87,645 
103,957 
22 
55,394 
63,337 
65,867 
70,744 
79,309 
91,827 
107,945 
26 
57,036 
65,462 
68,176 
73,290 
82,325 
95,464 
111,933 
30 
58,746 
67,426 
70,221 
75,489 
84,796 
99,075 
115,291 
1 The rate of basic pay for positions in Salary Class 5, 7, 8, and 9 is limited to 95 percent of the 
rate of pay for level V of the Executive Schedule. 
2 The rate of basic pay for positions in Salary Class 10 will be equal to 95 percent of the rate of 
pay for level V of the Executive Schedule. 
^The rate of basic pay for positions in Salary Class 11 will be equal to the rate of pay for level V 
of the Executive Schedule. 
(b) FREEZE OF CURRENT RATE FOR LOCALITY-BASED COM-
PARABILITY ADJUSTMENTS.—Notwithstanding any other provision 
of law, including this title or any provision of law amended by 
this title, no officer or member of the United States Secret Service 
Uniformed Division or the United States Park Police may be paid 
locality pay under section 5304 or section 5304a of title 5, United 
States Code, at a percentage rate for the applicable locality in 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-305 
excess of the rate in effect for pay periods during calendar year 
2000. 
(c) CONFORMING AMENDMENTS.— 
(1) APPLICATION OF PROVISIONS TO PARK POLICE.—Section 
501(c) of such Act (sec. 4-416(c), D.C. Code) is amended— 
(A) in paragraph (2), by striking "Treasury" and insert-
ing the following: "Treasury, and the annual rates of basic 
compensation of officers and members of the United States 
Park Police shall be adjusted by the Secretary of the 
Interior,"; 
(B) in paragraph (5), by inserting after "Uniformed 
Division" the following: "or officers and members of the 
United States Park Police"; 
(C) in paragraph (6)(A), by inserting after "Uniformed 
Division" the following: "or the United States Park Police"; 
and 
(D) in paragraph (7)(A), by inserting after "Uniformed 
Division" the following: "or the United States Park Police". 
(2) TERMINATION OF CURRENT ADJUSTMENT AUTHORITY.— 
Section 501(b) of such Act (sec. 4-416(b), D.C. Code) is amended 
by adding at the end the following new paragraph: 
"(4) This subsection shall not apply with respect to any pay 
period for which the salary schedule under subsection (c) applies 
to the United States Park Police.". 
SEC. 903. REVISION OF CAPS ON MAXIMUM COMPENSATION. 
(a) ANNUAL SALARY UNDER SCHEDULE.—Section 501(c)(2) of 
the District of Columbia Police and Firemen's Salary Act of 1958 
(sec. 4-416(c)(2), D.C. Code) is amended by striking the period 
at the end and inserting the following: ", except that in no case 
may the annual rate of basic compensation for any such officer 
or member exceed the rate of basic pay payable for level IV of 
the Executive Schedule contained in subchapter II of chapter 53 
of title 5, United States Code.". 
(b) REPEAL OF CAP ON COMBINED BASIC PAY AND LONGEVITY 
PAY.—Section 501(c) of such Act (sec. 4-416(c), D.C. Code) is amend-
ed by striking paragraph (4). 
(c) LIMITATION ON PAY PERIOD EARNINGS FOR COMP TIME.— 
Section 1(h) of the Act entitled "An Act to provide a 5-day week 
for officers and members of the Metropolitan Police force, the United 
States Park Police force, and the White House Police force, and 
for other purposes", approved August 15, 1950 (sec. 4-1104(h), 
D.C. Code), is amended— 
(1) in paragraphs (1) and (2), by striking "Metropolitan 
Police force; or of the Fire Department of the District of Colum-
bia; or of the United States Park Police" each place it appears 
and inserting "Metropolitan Police force or of the Fire Depart-
ment of the District of Columbia"; and 
(2) in paragraph (3), by inserting after "United States 
Secret Service Uniformed Division" each place it appears the 
following: "or of the United States Park Police". 
SEC. 904. DETERMINATION OF SERVICE STEP ADJUSTMENTS. 
(a) METHOD FOR DETERMINATION OF ADJUSTMENTS.—Section 
303(a) of the District of Columbia Police and Firemen's Salary 
Act of 1958 (sec. 4-412(a), D.C. Code) is amended— 
(1) in the matter preceding paragraph (1), by "Each" and 
inserting "Except as provided in paragraph (5), each"; and 
114 STAT. 2763A-306 
PUBLIC LAW 106-554—APPENDIX D 
(2) by adding at the end the following new paragraph: 
"(5) Each officer and member of the United States Secret 
Service Uniformed Division and the United States Park Police 
with a current performance rating of 'satisfactory' or better, 
shall have a service step adjustment in the following manner: 
"(A) Each officer and member in service step 1, 2, 
or 3 shall be advanced in compensation successively to 
the next higher service step at the beginning of the 1st 
pay period immediately subsequent to the completion of 
52 calendar weeks of active service in the officer's or mem-
ber's service step. 
"(B) Each officer and member in service step 4, 5, 
6, 7, 8, or 9 shall be advanced in compensation successively 
to the next higher service step at the beginning of the 
1st pay period immediately subsequent to the completion 
of 104 calendar weeks of active service in the officer's 
or member's service step. 
"(C) Each officer and member in service step 10 shall 
be advanced in compensation successively to the next 
higher service step at the beginning of the 1st pay period 
immediately subsequent to the completion of 156 calendar 
weeks of active service in the officer's or member's service 
step. 
"(D) Each officer and member in service steps 11, 12, 
or 13 shall be advanced in compensation successively to 
the next higher service step at the beginning of the 1st 
pay period immediately subsequent to the completion of 
208 calendar weeks of active service in the officer's or 
member's service step.". 
(b) U S E OF TOTAL CREDITABLE SERVICE TO DETERMINE STEP 
PLACEMENT.—Section 304 of such Act (sec. 4^-413, D.C. Code) is 
amended— 
(1) in subsection (a), by striking "(b)" and inserting "(b) 
or (c)"; and 
(2) by adding at the end the following new subsection: 
"(c)(1) Each officer and member of the United States Secret 
Service Uniformed Division or the United States Park Police who 
is promoted or transferred to a higher salary shall receive basic 
compensation in accordance with the officer's or member's total 
creditable service. 
"(2) For purposes of this subsection, an officer's or member's 
creditable service is any police service in pay status with the United 
States Secret Service Uniformed Division, United States Park 
Police, or Metropolitan Police Department.". 
(c) CONFORMING AMENDMENT.—Section 401(a) of such Act (sec. 
4-415(a), D.C. Code) is amended by adding at the end the following 
new paragraph: 
"(4) This subsection shall not apply to officers and members 
of the United States Secret Service Uniformed Division or the 
United States Park PoUce.". 
SEC. 
9
0
5
. 
CONVERSION 
TO 
NEW 
SALARY 
SCHEDULE. 
(a) IN GENERAL.— 
(1) DETERMINATION OF RATES OF BASIC PAY.—Effective on 
the first day of the 1st pay period beginning 6 months after 
the date of enactment of this Act, the Secretary of the Treasury 
shall fix the rates of basic pay for officers and members of 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-307 
the United States Secret Service Uniformed Division, and the 
Secretary of the Interior shall fix the rates of basic pay for 
officers and members of the United States Park Police, in 
accordance with this subsection. 
(2) PLACEMENT ON REVISED SALARY SCHEDULE.— 
(A) IN GENERAL.—Each officer and member shall be 
placed in and receive basic compensation at the correspond-
ing scheduled service step of the salary schedule under 
section 501(c) of the District of Columbia Police and Fire-
men's Salary Act of 1958 (as amended by section 902(a)) 
in accordance with the member's total years of creditable 
service, receiving credit for all service step adjustments. 
If the scheduled rate of pay for the step to which the 
officer or member would be assigned in accordance with 
this paragraph is lower than the officer's or member's 
salary immediately prior to the enactment of this para-
graph, the officer or member will be placed in and receive 
compensation at the next higher service step. 
(B) CREDIT FOR INCREASES DURING TRANSITION.—Each 
member whose position is to be converted to the sal£iry 
schedule under section 501(b) of the District of Columbia 
Police and Firemen's Salary Act of 1958 (as amended by 
subsection (a)) and who, prior to the effective date of this 
section has earned, but has not been credited with, an 
increase in his or her rate of pay shall be afforded that 
increase before such member is placed in the corresponding 
service step in the SEilary schedule under section 501(b). 
(C) CREDITABLE SERVICE DESCRIBED.—^For purposes of 
this paragraph, an officer's or member's creditable service 
is any police service in pay status with the United States 
Secret Service Uniformed Division, United States Park 
Police, or Metropolitan Police Department. 
(b) HOLD HARMLESS FOR CURRENT TOTAL COMPENSATION.— 
Notwithstanding any other provision of law, if the total rate of 
compensation for an officer or employee for any pay period occurring 
after conversion to the salary schedule pursuant to subsection (a) 
(determined by taking into account any locality-based comparability 
adjustments, longevity pay, and other adjustments paid in addition 
to the rate of basic compensation) is less than the officer's or 
employee's total rate of compensation (as so determined) on the 
date of enactment, the rate of compensation for the officer or 
employee for the pay period shall be equal to— 
(1) the rate of compensation on the date of enactment 
(as so determined); increased by 
(2) a percentage equal to 50 percent of sum of the percent-
age adjustments made in the rate of basic compensation under 
section 501(c) of the District of Columbia Police and Firemen's 
Salary Act of 1958 (as amended by subsection (a)) for pay 
periods occurring after the date of enactment and prior to 
the pay period involved. 
(c) CONVERSION NOT TREATED AS TRANSFER OR PROMOTION.— 
The conversion of positions and individuals to appropriate classes 
of the salary schedule under section 501(c) of the District of Colum-
bia Police £ind Firemen's Salary Act of 1958 (as amended by section 
902(a)) and the initial adjustments of rates of basic pay of those 
positions and individuals in accordance with subsection (a) shall 
not be considered to be transfers or promotions within the meaning 
114 STAT. 2763A-308 
PUBLIC LAW 106-554—APPENDIX D 
of section 304 of the District of Columbia Police and Firemen's 
Salary Act of 1958 (sec. 4-413, D.C. Code). 
(d) TRANSFER OF CREDIT FOR SATISFACTORY SERVICE.—Each 
individual whose position is converted to the salary schedule under 
section 501(c) of the District of Columbia Police and Firemen's 
Salary Act of 1958 (as amended by section 902(a)) in accordance 
with subsection (a) shall be granted credit for purposes of such 
individual's first service step adjustment under the salary schedule 
in such section 501(c) for all satisfactory service performed by 
the individual since the individual's last increase in basic pay 
prior to the adjustment under that section. 
(e) ADJUSTMENT TO TAKE INTO ACCOUNT GENERAL SCHEDULE 
ADJUSTMENTS DURING TRANSITION.—The rates provided under the 
salary schedule under section 501(c) of the District of Columbia 
Police and Firemen's Salary Act of 1958 (as amended by section 
902(a)) shall be increased by the percentage of any annual adjust-
ment applicable to the General Schedule authorized under section 
5303 of title 5, United States Code, which takes effect during 
the period which begins on the date of the enactment of this 
Act and ends on the first day of the first pay period beginning 
6 months after the date of enactment of this Act. 
(f) CONVERSION NOT TREATED AS SALARY INCREASE FOR PUR-
POSES OF CERTAIN PENSIONS AND ALLOWANCES.—The conversion 
of positions and individuals to appropriate classes of the salary 
schedule under section 501(c) of the District of Columbia Police 
and Firemen's Salary Act of 1958 (as amended by section 2(a)) 
£ind the initial adjustments of rates of basic pay of those positions 
and individuals in accordance with subsection (a) shall not be 
treated as an increase in salary for purposes of section 3 of the 
Act entitled "An Act to provide increased pensions for widows 
and children of deceased members of the Police Department and 
the Fire Department of the District of Columbia", approved August 
4, 1949 (sec. 4-604, D.C. Code), or section 301 of the District 
of Columbia Police and Firemen's Salary Act of 1953 (sec. 4-605, 
D.C. Code). 
SEC. 906. PAY ADJUSTMENTS FOR CERTAIN POSITIONS. 
(a) TECHNICIAN DUTY.—Section 302 of the District of Columbia 
Police and Firemen's Salary Act of 1958 (sec. 4^411, D.C. Code) 
is amended— 
(1) in subsection (b), by striking "$810 per annum" and 
inserting the following: "$810 per annum, except in the case 
of an officer or member of the United States Secret Service 
Uniformed Division or the United States Park Police, who 
shall receive a per sinnum amount equal to 6 percent of the 
sum of such officer's or member's rate of basic compensation 
plus locality pay adjustments"; 
(2) in subsection (c), by striking "$595 per annum" each 
place it appears and inserting the following: "$595 per annum, 
except in the case of an officer or member of the United States 
Park Police, who shall receive a per annum amount equal 
to 6 percent of the sum of such officer's or member's rate 
of basic compensation plus locality pay adjustments"; and 
(3) in subsection (e), by inserting after "Whenever any 
officer or member" the following: "(other than an officer or 
member of the United States Secret Service Uniformed Division 
or the United States Park Police)". 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-309 
(b) 
HELICOPTER PILOT, BOMB DISPOSAL, OR SCUBA DIVING 
DUTY.—Section 202 of such Act (sec. 4-408, D.C. Code) is amended 
by striking "$2,270 per annum" and inserting the following: "$2,270 
per annum, except in the case of an officer or member of the 
United States Park Police, who shall receive a per annum amount 
equal to 7 percent of the sum of such officer's or member's rate 
of basic compensation plus locality pay adjustments". 
SEC. 907. CONFORMING PROVISIONS RELATING TO FEDERAL LAW 
ENFORCEMENT PAY REFORM ACT. 
(a) 
TERMINATION OF EXISTING SPECLVL SALARY RATES AND 
ADJUSTMENTS.—Beginning on the effective date of this Act— 
(1) no existing special salary rates shall be authorized 
for members of the United States Park Police under section 
5305 of title 5, United States Code (or any previous similar 
provision of law); and 
(2) no special rates of pay or special pay adjustments 
shall be applicable to members of the United States Park 
Police pursuant to section 405 of the Federal Law Enforcement 
Pay Reform Act of 1990. 
(b) CONFORMING AMENDMENTS.—(1) Section 405(b) of the Fed-
eral Law Enforcement Pay Reform Act of 1990 (5 U.S.C. 5303 
note) is amended to read as follows: 
"(b) This subsection applies with respect to any— 
"(1) special agent within the Diplomatic Security Service; 
"(2) probation officer (referred to in section 3672 of title 
18, United States Code); or 
"(3) pretrial services officer (referred to in section 3153 
of title 18, United States Code).". 
(2) Section 405(c) of such Act (5 U.S.C. 5303 note) is amended 
to read as follows: 
"(c) For purposes of this section, the term 'appropriate agency 
head' means— 
"(1) with respect to any individual under subsection (b)(1), 
the Secretary of State; or 
"(2) with respect to any individual under subsection (b)(2) 
or (b)(3), the Director of the Administrative Office of the United 
States Courts.". 
SEC. 908. 
SERVICE LONGEVITY PAYMENTS FOR METROPOLITAN 
POLICE 
DEPARTMENT. 
(a) INCLUSION OF SERVICE LONGEVITY PAYMENTS IN AMOUNT 
OF FEDERAL BENEFIT PAYMENTS MADE TO METROPOLITAN POLICE 
DEPARTMENT OFFICERS AND MEMBERS.—Section 11012 of the Dis-
trict of Columbia Retirement Protection Act of 1997 (Public Law 
105-33; 111 Stat. 718; D.C. Code, sec. 1-762.2) is amended by 
adding at the end the following new subsection: 
"(e) 
TREATMENT OF INCREASES IN CERTAIN POLICE SERVICE 
LONGEVITY PAYMENTS.—For purposes of subsection (a), in determin-
ing the amount of a Federal benefit pa5anent made to an officer 
or member of the Metropolitan Police Department, the benefit pay-
ment to which the officer or member is entitled under the District 
Retirement Program shall include any amounts which would have 
been included in the benefit payment under such Program if the 
amendments made by the Police Recruiting and Retention Enhance-
ment Amendment Act of 1999 had taken effect prior to the freeze 
date.". 
114 STAT. 2763A-310 
PUBLIC LAW 106-554—APPENDIX D 
(b) CONFORMING AMENDMENT.—Section 11003(5) of such Act 
(Public Law 105-33; 111 Stat. 717; D.C. Code, sec. 1-761.2(5)) 
is amended by inserting after "except as" the following: "provided 
under section 11012(e) and as". 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply with respect to Federal benefit payments made after 
the date of the enactment of this Act. 
SEC. 909. EFFECTIVE DATE. 
Except as provided in section 908(c), this title and the amend-
ments made by this title shall become effective on the first day 
of the first pay period beginning 6 months after the date of enact-
ment. 
TITLE X 
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 
ADMINISTRATIVE PROVISIONS 
SEC. 1001. Section 206(d) of the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 2000 (42 U.S.C. 12701 note) is 
amended— 
(1) in paragraph (1), by striking "V" and inserting "III"; 
and 
(2) in paragraph (4), by striking "reimbursable" and insert-
ing "non-reimbursable". 
SEC. 1002. For purposes of part 2, subpart B of the Federal 
Housing Enterprises Financial Safety and Soundness Act of 1992 
(Public Law 102-550), notwithstanding any other provision of law 
or regulation, for purposes of measuring the extent of compliance 
with the housing goals for the years 2001, 2002, and 2003, the 
Secretary of Housing and Urban Development shall assign, in the 
case of the Federal Home Loan Mortgage Corporation, 1.35 units 
of credit toward achievement of each housing goal for each unit 
of multifamily housing (excepting units located in properties having 
between 5 £md 50 units) qualifying as affordable under such housing 
goal. 
SEC. 1003. Notwithstanding any other provision of law, neither 
the City of Toledo, Ohio, nor the Secretary of Housing and Urban 
Development (HUD) is required to enforce any requirements associ-
ated with Housing Development Grant number 00H006H6402 pro-
vided to the City of Toledo, Ohio, that prohibit or restrict the 
conversion of the rental units in the Beacon Place project to con-
dominium ownership: Provided, That the City of Toledo and the 
Secretary of HUD are authorized to take any actions necessary 
to cause any such prohibition or restriction to be removed from 
the appropriate land records and otherwise terminated: Provided 
further. That converted units shall remain available as rental hous-
ing to those persons, including low- and very-low-income persons 
who presently reside in the units: Provided further. That the conver-
sion proposal for Beacon Place apartments shall not reduce the 
number of affordable housing units in Toledo: Provided 
further, 
That any and all proceeds from such conversion are used to retire 
debt associated with the Beacon Place project or to rehabilitate 
the properties known as the Cubbon Properties. 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-311 
SEC. 1004. The Comptroller General of the United States shall 
conduct a study on the following topics— 
(a)(1) The adequacy of the capital structure of the Federal 
Home Loan Bank (FHLB) System as it relates to the risks 
posed by: (A) the traditional advances business of the FHLB 
System; (B) the expanded collateral provisions and permissible 
uses of advances under the Gramm-Leach-Bliley Act of 1999; 
and (C) the MPF, and other programs providing for the direct 
acquisition of mortgages. The analysis should examine the 
credit risk, interest rate risk, and operations risk associated 
with each structure; 
(2) The risks associated with further growth in the direct 
acquisition of mortgages by the Federal Home Loan Bank Sys-
tem; and 
(3) A comparison of the risk-based capital standard pro-
posed by the Federal Housing Finance Board for the Federal 
Home Loan Bank System to the standard proposed by the 
Office of Federal Housing Enterprise Oversight for the Federal 
National Mortgage Association and the Federal Home Loan 
Mortgage Corporation. 
(b) Not later than 6 months after the date of the enactment 
of this Act, the Comptroller General shall submit to the 
Committee on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Banking and Financial Services 
of the House of Representatives a report on the study required 
under subsection (a). 
TITLE XI 
DEPARTMENT 
OF 
THE 
TREASURY 
ADMINISTRATIVE PROVISION 
SEC. 1101. HONORING THE NAVAJO CODE TALKERS. 
(a) Congress finds that— 
(1) on December 7, 1941, the Japanese Empire attacked 
Pearl Harbor and war was declared by Congress the following 
day; 
(2) the military code, developed by the United States for 
transmitting messages, had been deciphered by the Japanese, 
and a search by United States intelligence w£is made to develop 
new means to counter the enemy; 
(3) the United States Government called upon the Navajo 
Nation to support the military effort by recruiting and enlisting 
29 Navajo men to serve as Marine Corps Radio Operators; 
(4) the number of Navajo enlistees later increased to more 
than 350; 
(5) at the time, the Navajos were often treated as second-
class citizens, and they were a people who were discouraged 
from using their own native language; 
(6) the Navajo Marine Corps Radio Operators, who became 
known as the "Navajo Code Talkers", were used to develop 
a code using their native language to communicate military 
messages in the Pacific; 
(7) to the enemy's frustration, the code developed by these 
Native Americans proved to be unbreakable, and was used 
extensively throughout the Pacific theater; 
114 STAT. 2763A-312 
PUBLIC LAW 106-554r-APPENDIX D 
(8) the Navajo language, discouraged in the past, was 
instrumental in developing the most significant and successful 
military code of the time; 
(9) at Iwo Jima alone, the Navajo Code Talkers passed 
over 800 error-free messages in a 48-hour period; 
(10) use of the Navajo Code was so successful, that— 
(A) military commanders credited it in saving the lives 
of countless American soldiers and in the success of the 
engagements of the United States in the battles of Guadal-
canal, Tarawa, Saipan, Iwo Jima, and Okinawa; 
(B) some Code Talkers were guarded by fellow marines, 
whose role was to kill them in case of imminent capture 
by the enemy; and 
(C) the Navajo Code was kept secret for 23 years 
after the end of World War II; 
(11) following the conclusion of World War II, the Depart-
ment of Defense maintained the secrecy of the Navajo code 
until it was declassified in 1968; and 
(12) only then did a realization of the sacrifice and valor 
of these brave Native Americans emerge from history. 
(b)(1) To express recognition by the United States and its 
citizens in honoring the Navajo Code Talkers, who distinguished 
themselves in performing a unique, highly successful communica-
tions operation that greatly assisted in saving countless lives and 
hastening the end of World War II in the Pacific, the President 
is authorized— 
(A) to award to each of the original 29 Navajo Code Talkers, 
or a surviving family member, on behalf of the Congress, a 
gold medal of appropriate design, honoring the Navajo Code 
Talkers; and 
(B) to award to each person who qualified as a Navajo 
Code Talker (MOS 642), or a surviving family member, on 
behalf of the Congress, a silver medal of appropriate design, 
honoring the Navajo Code Talkers. 
(2) For purposes of the awards authorized by paragraph (1), 
the Secretary of the Treasury (in this section referred to as the 
"Secretary") shall strike gold and silver medals with suitable 
emblems, devices, and inscriptions, to be determined by the Sec-
retary. 
(c) The Secretary may strike and sell duplicates in bronze 
of the medals struck pursuant to this section, under such regula-
tions as the Secretary may prescribe, and a price sufficient to 
cover the costs thereof, including labor, materials, dies, use of 
machinery, and overhead expenses, and the cost of the medals. 
(d) The medals struck pursuant to this section are national 
medals for purposes of chapter 51, of title 31, United States Code. 
(e)(1) There is authorized to be charged against the United 
States Mint Public Enterprise Fund, such sums as may be necessary 
to pay for the costs of the medals authorized by this section. 
(2) Amounts received from the sale of duplicate medals under 
this section shall be deposited in the United States Mint Public 
Enterprise Fund. 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-313 
TITLE XII 
ENVIRONMENTAL PROTECTION AGENCY 
ADMINISTRATIVE PROVISION 
SEC. 1201. ABOVEGROUND STORAGE TANK GRANT PROGRAM. 
(a) DEFINITIONS.—In this provision: 
(1) ABOVEGROUND STORAGE TANK.—The term "abovegroiind 
storage tank" means any tank or combination of tanks (includ-
ing any connected pipe)— 
(A) that is used to contain an accumulation of regulated 
substances; and 
(B) the volume of which (including the volume of any 
connected pipe) is located wholly above the surface of the 
ground. 
(2) ADMINISTRATOR.—^The term "Administrator" means the 
Administrator of the Environmental Protection Agency. 
(3) DENALI COMMISSION.—^The term "Denali Commission" 
means the commission established by section 303(a) of the 
Denali Commission Act of 1998 (42 U.S.C. 3121 note). 
(4) FEDERAL ENVIRONMENTAL LAW.—The term "Federal 
environmental law" means— 
(A) the Oil Pollution Control Act of 1990 (33 U.S.C. 
2701 et seq.); 
(B) the Comprehensive Environmental Response, Com-
pensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
seq.); 
(C) the Solid Waste Disposal Act (42 U.S.C. 6901 et 
seq.); 
(D) the Federal Water Pollution Control Act (33 U.S.C. 
1251 et seq.); or 
(E) any other Federal law that is applicable to the 
release into the environment of a regulated substance, 
as determined by the Administrator. 
(5) NATIVE VILLAGE.—The term "Native village" has the 
meaning given the term in section 11(b) in Public Law 92-
203 (85 Stat. 688). 
(6) PROGRAM.—^The term "program" means the Above-
ground Storage Tank Grant Program established by subsection 
(b)(1). 
(7) REGULATED SUBSTANCE.—The term "regulated sub-
stance" has the meaning given the term in section 9001 of 
the Solid Waste Disposal Act (42 U.S.C. 6991). 
(8) STATE.—The term "State" means the State of Alaska. 
(b) ESTABLISHMENT.— 
(1) IN GENERAL.—There is established a grant program 
to be known as the "Aboveground Storage Tank Grant Pro-
gram". 
(2) GRANTS.—^Under the program, the Administrator shall 
award a grant to— 
(A) the State, on behalf of a Native village; or 
(B) the Denali Commission. 
(c) USE OF GRANTS.—The State or the Denali Commission 
shall use the funds of a grant under subsection (b) to repair, 
upgrade, or replace one or more aboveground storage tanks that— 
79-194 O - 00 - 12 : QL 3 Part 5 
114 STAT. 2763A-314 
PUBLIC LAW 106-554—APPENDIX D 
(1) leaks or poses an imminent threat of leaking, as certified 
by the Administrator, the Commandant of the Coast Guard, 
or any other appropriate Federal or State agency (as determined 
by the Administrator); and 
(2) is located in a Native village— 
(A) the medisin household income of which is less than 
80 percent of the median household income in the State; 
(B) that is located— 
(i) within the boundaries o
f
— 
(I) a unit of the National Park System; 
(II) a unit of the National Wildlife Refuge 
System; or 
(III) a National Forest; or 
(ii) on public land under the administrative juris-
diction of the Bureau of Land Management; or 
(C) that receives payments from the Federal Govern-
ment under chapter 69 of title 31, United States Code 
(commonly known as "payments in lieu of taxes"). 
(d) REPORTS.—Not later than 1 year after the date on which 
the State or the Denali Commission receives a grant under sub-
section (c), and annually thereafter, the State or the Denali Commis-
sion, as the case may be, shall submit a report describing each 
project completed with grant funds and any projects planned for 
the following year, to— 
(1) the Administrator; 
(2) the Committee on Resources of the House of Representa-
tives; 
(3) the Committee on Environment and Public Works of 
the Senate; 
(4) the Committee on Appropriations of the House of Rep-
resentatives; and 
(5) the Committee on Appropriations of the Senate. 
(e) AUTHORIZATION OF APPROPRIATIONS.—^There are authorized 
to be appropriated to carry out this Act, to remain available until 
expended— 
(1) $20,000,000 for fiscal year 2001; and 
(2) such sums as are necessary for each fiscal year there-
after. 
TITLE XIII 
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 
ADMINISTRATIVE PROVISION 
SEC. 1301. Of the proceeds in any fiscal year from the sale 
of timber on Federal property at the John C. Stennis Space Center, 
or on additional real property within the restricted easement area 
adjacent to the Center, any ftinds that are in excess of the amount 
necessary for the expenses of commonly accepted forest management 
practices on such properties may be retained and used by the 
National Aeronautics and Space Administration for the acquisition 
from willing sellers of up to a total of 500 acres of real property 
to establish education and visitor programs and facilities that pro-
mote and preserve the regional and national history of the area, 
including the contributions of Stennis Space Center, and, as nec-
essary, for wetlands mitigation. 
PUBLIC LAW 106-554^APPENDIX D 
114 STAT. 2763A-315 
TITLE XIV—CERTAIN ALASKAN CRUISE SHIP OPERATIONS 
SEC. 1401. PURPOSE. 
The purpose of this title is to: 
(1) Ensure that cruise vessels operating in the waters of 
the Alexander Archipelago and the navigable waters of the 
United States within the State of Alaska and within the 
Kachemak Bay National Estuarine Research Reserve comply 
with all applicable environmental laws, including, but not lim-
ited to, the Federal Water Pollution Control Act, as amended 
(33 U.S.C. 1251 et seq.), the Act to Prevent Pollution from 
Ships, as amended (33 U.S.C. 1901 et seq.), and the protections 
contained within this title. 
(2) Ensure that cruise vessels do not discharge untreated 
sewage within the waters of the Alexander Archipelago, the 
navigable waters of the United States in the State of Alaska, 
or within the Kachemak Bay National Estuarine Research 
Reserve. 
(3) Prevent the unregulated discharge of treated sewage 
and graywater while in ports in the State of Alaska or traveling 
near the shore in the Alexander Archipelago and the navigable 
waters of the United States in the State of Alaska or within 
the Kachemak Bay National Estuarine Research Reserve. 
(4) Ensure that discharges of sewage and gra3rwater from 
cruise vessels operating in the Alexander Archipelago and the 
navigable waters of the United States in the State of Alaska 
or within the Kachemak Bay National Estuarine Research 
Reserve can be monitored for compliance with the requirements 
contained in this title. 
SEC. 1402. APPLICABILITY. 
This title applies to all cruise vessels authorized to carry 500 
or more passengers for hire. 
SEC. 1403. PROHIBITION ON DISCHARGE OF UNTREATED SEWAGE. 
No person shall discharge any untreated sewage from a cruise 
vessel into the waters of the Alexander Archipelago or the navigable 
waters of the United States within the State of Alaska or within 
the Kachemak Bay National Estuarine Research Reserve. 
SEC. 1404. LIMITATIONS ON DISCHARGE OF TREATED SEWAGE OR 
GRAYWATER. 
(a) No person shall discharge any treated sewage or graywater 
from a cruise vessel into the waters of the Alexander Archipelago 
or the navigable waters of the United States within the State 
of Alaska or within the Kachemak Bay National Estuarine Research 
Reserve unless— 
(1) the cruise vessel is underway and proceeding at a 
speed of not less than six knots; 
(2) the cruise vessel is not less than one nautical mile 
from the nearest shore, except in areas designated by the 
Secretary, in consultation with the State of Alaska; 
(3) the discharge complies with all applicable cruise vessel 
effluent standards established pursuant to this title and any 
other applicable law; and 
(4) the cruise vessel is not in an area where the discharge 
of treated sewage or graywater is prohibited. 
114 STAT. 2763A-316 
PUBLIC LAW 106-554—APPENDIX D 
(b) The Administrator, in consultation with the Secretary, may 
promulgate regulations allowing the discharge of treated sewage 
or graywater, otherwise prohibited under paragraphs (a)(1) and 
(a)(2) of this section, where the discharge meets effluent standards 
determined by the Administrator as appropriate for discharges into 
the marine environment. In promulgating such regulations, the 
Administrator shall take into account the best available scientific 
information on the environmental effects of the regulated dis-
charges. The effluent discharge standards promulgated under this 
section shall, at a minimum, be consistent with all relevant State 
of Alaska water quality standards in force at the time of the 
enactment of this title. 
(c) Until such time as the Administrator promulgates regula-
tions under paragraph (b) of this section, treated sewage and 
graywater may be discharged from vessels subject to this title 
in circumstances otherwise prohibited under paragraphs (a)(1) and 
(a)(2) of this section, provided that— 
(1) the discharge satisfies the minimum level of effluent 
quality specified in 40 CFR 133.102, as in effect on the date 
of enactment of this section; 
(2) the geometric mean of the samples from the discharge 
during any 30-day period does not exceed 20 fecal coliform/ 
100 ml and not more than 10 percent of the samples exceed 
40 fecEil coliform/100 ml; 
(3) concentrations of total residual chlorine may not exceed 
10.0 ng/1; and 
(4) prior to any such discharge occurring, the owner, opera-
tor or master, or other person in charge of a cruise vessel, 
can demonstrate test results from at least five samples taken 
from the vessel representative of the effluent to be discharged, 
on different days over a 30-day period, conducted in accordance 
with the guidelines promulgated by the Administrator in 40 
CFR Part 136, which confirm that the water qusJity of the 
effluents proposed for discharge is in compliance with para-
graphs (1), (2), and (3) of this subsection. To the extent not 
otherwise being done by the owner, operator, master or other 
person in charge of a cruise vessel pursuant to section 1406, 
the owner, operator, master or other person in charge of a 
cruise vessel shall demonstrate continued compliance through 
periodic sampling. Such sampling and test results shall be 
considered environmental compliance records that must be 
made available for inspection pursuant to section 1406(d) of 
this title. 
SEC. 1405. SAFETY EXCEPTION. 
Sections 1403 and 1404 of this title shall not apply to discharges 
made for the purpose of securing the safety of the cruise vessel 
or saving life at sea, provided that all reasonable precautions have 
been taken for the purpose of preventing or minimizing the dis-
charge. 
SEC. 1406. INSPECTION AND SAMPLING REGIME. 
(a) The Secretary shall incorporate into the commercial vessel 
examination program an inspection regime sufficient to verify that 
cruise vessels visiting ports in the State of Alaska or operating 
in the waters of the Alexander Archipelago or the navigable waters 
of the United States within the State of Alaska or within the 
Kachemak Bay National Estuarine Research Reserve are in full 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-317 
compliance with this title, the Federal Water Pollution Control 
Act, as amended, and any regulations issued thereunder, other 
applicable Federal laws and regulations, and all applicable inter-
national treaty requirements. 
(b) The inspection regime shall, at a minimum, include— 
(1) examination of environmental compliance records and 
procedures; and 
(2) inspection of the functionality and proper operation 
of installed equipment for abatement and control of any dis-
charge. 
(c) The inspection regime may— 
(1) include unannounced inspections of any aspect of cruise 
vessel operations, equipment or discharges pertinent to the 
verification under subsection (a) of this section; and 
(2) require the owner, operator or master, or other person 
in charge of a cruise vessel subject to this title to maintain 
and produce a logbook detailing the times, t3T)es, volumes or 
flow rates and locations of any discharges of sewage or 
graywater under this title. 
(d) The inspection regime shall incorporate a plan for sampling 
and testing cruise vessel discharges to ensure that any discharges 
of sewage or graywater are in compliance with this title, the Federal 
Water Pollution Control Act, as amended, and any other applicable 
laws and regulations, and may require the owner, operator or 
master, or other person in charge of a cruise vessel subject to 
this title to conduct such samples or tests, and to produce any 
records of such sampling or testing at the request of the Secretary 
or Administrator. 
SEC. 1407. CRUISE VESSEL EFFLUENT STANDARDS. 
Pursuant to this title and the authority of the Federal Water 
Pollution Control Act, as amended, the Administrator may promul-
gate effluent standards for treated sewage and graywater from 
cruise vessels operating in the waters of the Alexander Archipelago 
or the navigable waters of the United States within the State 
of Alaska or within the Kachemak Bay National Estuarine Research 
Reserve. Regulations implementing such standards shall take into 
account the best available scientific information on the environ-
mental effects of the regulated discharges and the availability of 
new technologies for wastewater treatment. Until such time as 
the Administrator promulgates such effluent standards, treated 
sewage effluent discharges shall not have a fecal coliform bacterial 
count of greater than 200 per 100 milliliters nor suspended solids 
greater than 150 milligrams per liter. 
SEC. 1408. REPORTS. 
(a) Any owner, operator or master, or other person in charge 
of a cruise vessel who has knowledge of a discharge from the 
cruise vessel in violation of section 1403 or 1404 or pursuant to 
section 1405 of this title, or any regulations promulgated there-
under, shall immediately report that discharge to the Secretary, 
who shall provide a copy to the Administrator upon request. 
(b) The Secretary may prescribe the form of reports required 
under this section. 
SEC. 1409. ENFORCEMENT. 
(a) ADMINISTRATIVE PENALTIES.— 
i 
114 STAT. 2763A-318 
PUBLIC LAW 106-554—APPENDIX D 
(1) VIOLATIONS.—^Any person who violates section 1403, 
1404, 1408, or 1413 of this title, or any regulations promulgated 
pursuant to this title may be assessed a class I or class II 
civil penalty by the Secretary or Administrator. 
(2) CLASSES OF PENALTIES.— 
(A) CLASS I.—The amount of a class I civil penalty 
under this section may not exceed $10,000 per violation, 
except that the maximum amount of any class I civil pen-
alty under this section shall not exceed $25,000. Before 
assessing a civil penalty under this clause, the Secretary 
or Administrator, as the case may be, shall give to the 
person to be assessed such penalty written notice of the 
Secretary's or Administrator's proposal to assess the pen-
alty and the opportunity to request, within 30 days of 
the date the notice is received by such person, a hearing 
on the proposed penalty. Such hearing shall not be subject 
to section 554 or 556 of title 5, but shall provide a reason-
able opportunity to be heard and to present evidence. 
(B) CLASS II.—The amount of a class II civil penalty 
under this section may not exceed $10,000 per day for 
each day during which the violation continues, except that 
the maximum amount of any class II civil penalty under 
this section shall not exceed $125,000. Except as otherwise 
provided in this subsection, a class II civil penalty shall 
be assessed and collected in the same manner, and subject 
to the same provisions as in the case of civil penalties 
assessed and collected after notice and an opportunity for 
a hearing on the record in accordance with section 554 
of title 5, United States Code. The Secretary and Adminis-
trator may issue rules for discovery procedures for hearings 
under this paragraph. 
(3) RIGHTS OF INTERESTED PERSONS.— 
(A) PUBLIC NOTICE.—Before issuing an order assessing 
a class II civil penalty under this section, the Secretary 
or Administrator, as the case may be, shall provide public 
notice of and reasonable opportunity to comment on the 
proposed issuance of each order. 
(B) PRESENTATION OF EVIDENCE.—^Any person who com-
ments on a proposed assessment of a class II civil penalty 
under this section shall be given notice of any hearing 
held under this paragraph and of the order assessing such 
penalty. In any hearing held under this paragraph, such 
person shall have a reasonable opportunity to be heard 
and present evidence. 
(C) RIGHTS OF INTERESTED PERSONS TO A HEARING.— 
If no hearing is held under subsection (2) before issuance 
of an order assessing a class II civil penalty under this 
section, any person who commented on the proposed assess-
ment may petition, within 30 days after the issuance of 
such order, the Administrator or Secretary, as the case 
may be, to set aside such order and to provide a hearing 
on the penalty. If the evidence presented by the petitioner 
in support of the petition is material and was not consid-
ered in the issuance of the order, the Administrator or 
Secretary shall immediately set aside such order and pro-
vide a hearing in accordance with subsection (2)(B). If 
the Administrator or Secretary denies a hearing under 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-319 
this clause, the Administrator or Secretary shall provide 
to the petitioner, and publish in the Federal Register, notice 
of and the reasons for such denial. 
(4) FINALITY OF ORDER.—^An order assessing a class II 
civil penalty under this paragraph shall become final 30 days 
after its issuance unless a petition for judicial review is filed 
under subparagraph (6) or a hearing is requested under sub-
section (3)(C). If such a hearing is denied, such order shall 
become final 30 days after such denial. 
(5) EFFECT OF ACTION ON COMPLIANCE.—'No action by 
the 
Administrator or Secretary under this paragraph shall affect 
any person's obligation to comply with any section of this title. 
(6) JUDICIAL REVIEW.—^Any person against whom a civil 
penalty is assessed under this paragraph or who commented 
on the proposed assessment of such penalty in accordance with 
subsection (3) may obtain review of such assessment— 
(A) in the case of assessment of a class I civil penalty, 
in the United States District Court for the District of 
Columbia or in the District of Alaska; or 
(B) in the case of assessment of a class II civil penalty, 
in the United States Court of Appeals for the District 
of Columbia Circuit or for any other circuit in which such 
person resides or transacts business, by filing a notice 
of appeal in such court within the 30-day period beginning 
on the date the civil penalty order is issued and by simulta-
neously sending a copy of such notice by certified mail 
to the Administrator or Secretary, as the case may be, 
and the Attorney General. The Administrator or Secretary 
shall promptly file in such court a certified copy of the 
record on which the order was issued. Such court shall 
not set aside or remand such order unless there is not 
substantial evidence in the record, taken as a whole, to 
support the finding of a violation or unless the Administra-
tor's or Secretary's assessment of the penalty constitutes 
an abuse of discretion and shall not impose additional 
civil penalties for the same violation unless the Administra-
tor's or Secretary's assessment of the penalty constitutes 
an abuse of discretion. 
(7) COLLECTION.—If any person fails to pay an assessment 
of a civil penalty— 
(A) after the assessment has become final, or 
(B) after a court in an action brought under subsection 
(6) has entered a final judgment in favor of the Adminis-
trator or Secretary, as the case may be, the Administrator 
or Secretary shall request the Attorney General to bring 
a civil action in an appropriate district court to recover 
the amount assessed (plus interest at currently prevailing 
rates from the date of the final order or the date of the 
final judgment, as the case may be). In such an action, 
the validity, amount, and appropriateness of such penalty 
shall not be subject to review. Any person who fails to 
pay on a timely basis the amount of an assessment of 
a civil penalty as described in the first sentence of this 
subparagraph shall be required to pay, in addition to such 
amount and interest, attorneys fees and costs for collection 
proceedings and a quarterly nonpayment penalty for each 
quarter during which such failure to pay persists. Such 
114 STAT. 2763A-320 
PUBLIC LAW 106-554—APPENDIX D 
nonpayment penalty shall be in an amount equal to 20 
percent of the aggregate amount of such person's penalties 
and nonpayment penalties which are unpaid as of the 
beginning of such quarter. 
(8) SUBPOENAS.—The Administrator or Secretary, as the 
case may be, may issue subpoenas for the attendance and 
testimony of witnesses and the production of relevant papers, 
books, or documents in connection with hearings under this 
section. In case of contumacy or refusal to obey a subpoena 
issued pursuant to this subsection and served upon any person, 
the district court of the United States for Einy district in which 
such person is found, resides, or transacts business, upon 
application by the United States and after notice to such person, 
shall have jurisdiction to issue an order requiring such person 
to appear and give testimony before the Administrator or Sec-
retary or to appear and produce documents before the Adminis-
trator or Secretary, or both, and any failure to obey such 
order of the court may be punished by such court as a contempt 
thereof. 
(b) CIVIL PENALTIES.— 
(1) IN GENERAL.—^Any person who violates section 1403, 
1404, 1408, or 1413 of this title, or any regulations promulgated 
pursuant to this title shall be subject to a civil penalty not 
to exceed $25,000 per day for each violation. Each day a viola-
tion continues constitutes a separate violation. 
(2) JURISDICTION.—^An action to impose a civil penalty 
under this section may be brought in the district court of 
the United States for the district in which the defendant is 
located, resides, or transacts business, and such court shall 
have jurisdiction to assess such penalty. 
(3) LIMITATION.—^A person is not liable for a civil judicial 
penalty under this paragraph for a violation if the person 
has been assessed a civil administrative penalty under para-
graph (a) for the violation. 
(c) DETERMINATION OF AMOUNT.—In determining the amount 
of a civil penalty under paragraphs (a) or (b) of this section, the 
court, the Secretary or the Administrator, as the case may be, 
shall consider the seriousness of the violation or violations, the 
economic benefit (if any) resulting from the violation, any history 
of such violations, any good-faith efforts to comply with the 
applicable requirements, the economic impact of the penalty on 
the violator, and other such matters as justice may require. 
(d) CRIMINAL PENALTIES.— 
(1) NEGLIGENT VIOLATIONS.—^Any person who negligently 
violates section 1403, 1404, 1408, or 1413 of this title, or 
any regulations promulgated pursuant to this title commits 
a Class A misdemeanor. 
(2) KNOWING VIOLATIONS.—^Any person who knowingly vio-
lates section 1403, 1404, 1408, or 1413 of this title, or any 
regulations promulgated pursuant to this title commits a Class 
D felony. 
(3) FALSE STATEMENTS.—^Any person who knowingly makes 
any false statement, representation, or certification in any 
record, report or other document filed or required to be main-
tained under this title or the regulations issued thereunder, 
or who falsifies, tampers with, or knowingly renders inaccurate 
any testing or monitoring device or method required to be 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-321 
maintained under this title, or the regulations issued there-
under, commits a Class D felony. 
(e) AWARDS.— 
(1) The Secretary, the Administrator, or the court, when 
assessing any fines or civil penalties, as the case may be, 
may pay from any fines or civil penalties collected under this 
section an amount not to exceed one-half of the penalty or 
fine collected, to any individual who furnishes information 
which leads to the payment of the penalty or fine. If several 
individuals provide such information, the amount shall be 
divided equitably among such individuals. No officer or 
employee of the United States, the State of Alaska or any 
federally recognized Tribe who furnishes information or renders 
service in the performance of his or her official duties shall 
be eligible for payment under this subsection. 
(2) The Secretary, Administrator or the court, when assess-
ing any fines or civil penalties, as the case may be, may pay, 
from any fines or civil penalties collected under this section, 
to the State of Alaska or to any federally recognized Tribe 
providing information or investigative assistance which leads 
to payment of the penalty or fine, an amount which reflects 
the level of information or investigative assistance provided. 
Should the State of Alaska or a federally recognized Tribe 
and an individual under paragraph (1) of this section be eligible 
for an award, the Secretary, the Administrator, or the court, 
as the case may be, shall divide the amount equitably. 
(f) LIABILITY IN REM.—A cruise vessel operated in violation 
of this title or the regulations issued thereunder is liable in rem 
for any fine imposed under subsection (d) of this section or for 
any civil penalty imposed under subsections (a) or (b) of this section, 
and may be proceeded against in the United States district court 
of any district in which the cruise vessel may be found. 
(g) COMPLIANCE ORDERS.— 
(1) IN GENERAL.—^Whenever on the basis of any information 
available to him the Administrator finds that any person is 
in violation of section 1403, 1404, 1408, or 1413 of this title, 
or any regulations promulgated pursuant to this title, the 
Administrator shall issue an order requiring such person to 
comply with such section or requirement, or shall bring a 
civil action in accordance with subsection (b). 
(2) COPIES OF ORDERS, SERVICE.—^A copy of any order issued 
under this subsection shall be sent immediately by the Adminis-
trator to the State of Alaska. In any case in which an order 
under this subsection is issued to a corporation, a copy of 
such order shall be served on any appropriate corporate officer. 
Any order issued under this subsection shall be by personal 
service, shall state with reasonable specificity the nature of 
the violation, and shall specify a time for compliance not to 
exceed 30 days in the case of a violation of an interim compli-
ance schedule or operation and maintenance requirement and 
not to exceed a time the Administrator determines to be reason-
able in the case of a violation of a final deadline, taking into 
account the seriousness of the violation and any good faith 
efforts to comply with applicable requirements. 
(h) CIVIL ACTIONS.—The Administrator is authorized to com-
mence a civil action for appropriate relief, including a permanent 
or temporary injunction, for any violation for which he is authorized 
114 STAT. 2763A-322 
PUBLIC LAW 106-554—APPENDIX D 
to issue a compliance order under this subsection. Any action under 
subsection (h) may be brought in the district court of the United 
States for the district in which the defendant is located or resides 
or is doing business, and such court shall have jurisdiction to 
restrain such violation and to require compliance. Notice of the 
commencement of such action shall be given immediately to the 
State of Alaska. 
SEC. 1410. DESIGNATION OF CRUISE VESSEL NO-DISCHARGE ZONES. 
If the State of Alaska determines that the protection and 
enhancement of the quality of some or all of the waters of the 
Alexander Archipelago or the navigable waters of the United States 
within the State of Alaska or within the Kachemak Bay National 
Estuarine Research Reserve require greater environmental protec-
tion, the State of Alaska may petition the Administrator to prohibit 
the discharge of gra3rwater and sewage from cruise vessels operating 
in such waters. The establishment of such a prohibition shall be 
achieved in the same manner as the petitioning process and prohibi-
tion of the discharge of sewage pursuant to section 312(f) of the 
Federal Water Pollution Control Act, as amended, and the regula-
tions promulgated thereunder. 
SEC. 1411. SAVINGS CLAUSE. 
(a) Nothing in this title shall be construed as restricting, affect-
ing, or amending any other law or the authority of any department, 
instrumentality, or agency of the United States. 
(b) Nothing in this title shall in any way affect or restrict, 
or be construed to affect or restrict, the authority of the State 
of Alaska or any political subdivision thereof— 
(1) to impose additional liability or additional requirements; 
or 
(2) to impose, or determine the amount of a fine or penalty 
(whether criminal or civil in nature) for any violation of law; 
relating to the discharge of sewage (whether treated or 
untreated) or gra5rwater in the waters of the Alexander 
Archipelago and the navigable waters of the United States 
within the State of Alaska or within the Kachemsik Bay 
National Estuarine Research Reserve. 
SEC. 1412. REGULATIONS. 
The Secretary and the Administrator each may prescribe any 
regulations necessary to carry out the provisions of this title. 
SEC. 1413. INFORMATION GATHERING AUTHORITY. 
The authority of sections 308(a) and (b) of the Federal Water 
Pollution Control Act, as amended, shall be available to the 
Administrator to carry out the provisions of this title. The Adminis-
trator and the Secretary shall minimize, to the extent practicable, 
duplication of or inconsistency with the inspection, sampling, test-
ing, recordkeeping, and reporting requirements established by the 
Secretary under section 1406 of this title. 
SEC. 1414. DEFINITIONS. 
In this title: 
(1) ADMINISTRATOR.—The term "Administrator" means the 
Administrator of the United States Environmental Protection 
Agency. 
PUBLIC LAW 106-554^APPENDIX D 
114 STAT. 2763A-323 
(2) CRUISE VESSEL.—The term "cruise vessel" means a pas-
senger vessel as defined in section 2101(22) of title 46, United 
States Code. The term "cruise vessel" does not include a vessel 
of the United States operated by the Federal Government or 
a vessel owned and operated by the government of a State. 
(3) DISCHARGE.—The term "discharge" means any release 
however caused from a cruise vessel, and includes any escape, 
disposal, spilling, leaking, pumping, emitting, or emptying. 
(4) GRAYWATER.—The term "graywater" means only galley, 
dishwasher, bath, and laundry waste water. The term does 
not include other wastes or waste streams. 
(5) NAVIGABLE WATERS.—^The term "navigable waters" has 
the same meaning as in section 502 of the Federal Water 
Pollution Control Act, as amended. 
(6) PERSON.—The term "person" means an individual, cor-
poration, partnership, limited liability company, association. 
State, municipality, commission, or political subdivision of a 
State, or any federally recognized tribe. 
(7) SECRETARY.—The term "Secretary" means the Secretary 
of the department in which the United States Coast Guard 
is operating. 
(8) SEWAGE.—The term "sewage" means human body 
wastes and the wastes from toilets and other receptacles 
intended to receive or retain body waste. 
(9) TREATED SEWAGE.—^The term "treated sewage" means 
sewage meeting all applicable effluent limitation standards and 
processing requirements of the Federal Water Pollution Control 
Act, as amended and of this title, and regulations promulgated 
under either. 
(10) UNTREATED SEWAGE.—The term "untreated sewage" 
means sewage that is not treated sewage. 
(11) WATERS OF THE ALEXANDER ARCHIPELAGO.—^The term 
"waters of the Alexander Archipelago" means all waters under 
the sovereignty of the United States within or near Southeast 
Alaska, beginning at a point 58°11'41"N, 136°39'25"W [near 
Cape Spencer Light], thence southeasterly along a line three 
nautical miles seaward of the baseline from which the breadth 
of the territorial sea is measured in the Pacific Ocean and 
-•^ the Dixon Entrance, except where this line intersects geodesies 
connecting the following five pairs of points: 
(1) 
58°05'17"N, 
136°33'49"W 
and 
58°11'41"N, 
136°39'25"W [Cross Sound]. 
(2) 
56°09'40"N, 
134°40'00"W 
and 
55°49'15"N, 
134°17'40"W [Chatham Strait]. 
(3) 
55°49'15"N, 
134°17'40"W 
and 
55°50'30"N, 
133°54'15"W [Sumner Strait]. 
(4) 
54°41'30"N, 
132°01'00"W 
and 
54°51"30"N, 
13 r20'45"W [Clarence Strait]. 
(5) 
54°51'30"N, 
131°20'45"W 
and 
54°46'15"N, 
130°52'00"W [Revillagigedo Channel]. 
The portion of each such geodesic situated beyond three nautical 
miles from the baseline from which the breadth of the territorial 
sea is measured forms the outer limit of the waters of the Alexander 
Archipelago in those five locations. 
114 STAT. 2763A-324 PUBLIC LAW 106-554^APPENDIX D 
TITLE XV—LIFE ACT AMENDMENTS 
SEC. 1501. SHORT TITLE. 
This title may be cited as the "LIFE Act Amendments of 2000". 
SEC. 1502. SUBSTITUTION OF ALTERNATIVE ADJUSTMENT PROVISION. 
(a) EXTENDED APPLICATION OF SECTION 245(i).— 
(1) IN GENERAL.—Paragraph (1) of section 245(i) of the 
Immigration 
and NationaUty Act (8 U.S.C. 
1255(i)) is 
amended— 
(A) in subparagraph (A), by striking "and" at the end; 
(B) in subparagraph (B)(i), by striking "January 14, 
1998" and inserting "April 30, 2001"; 
(C) in subparagraph (B), by adding "and" at the end; 
and 
(D) by inserting after subparagraph (B) the following 
new subparagraph: 
"(C) who, in the case of a beneficiary of a petition for 
classification, or an application for labor certification, described 
in subparagraph (B) that was filed after January 14, 1998, 
is physically present in the United States on the date of the 
enactment of the LIFE Act Amendments of 2000;". 
(2) MODIFICATION IN USE OF FUNDS.—Paragraph (3)(B) of 
such section is amended by inserting before the period the 
following: ", except that in the case of fees attributable to 
applications for a beneficiary with respect to whom a petition 
for classification, or an application for labor certification, 
described in paragraph (1)(B) was filed after January 14, 1998, 
one-half of such remaining portion shall be deposited by the 
Attorney General into the Immigration Examinations Fee 
Account established under section 286(m)". 
(b) CONFORMING AMENDMENTS.— 
(1) Subsection (m) of section 245 of the Immigration and 
Nationality Act, as added by section 1102(c) of the Legal 
Immigration Family Equity Act, is repealed. 
(2) Section 245 of the Immigration and Nationality Act, 
as amended by section 1102(d)(2) of the Legal Immigration 
Family Equity Act, is amended by striking "or (m)" each place 
it appears. 
SEC. 1503. MODIFICATION OF SECTION 1104 ADJUSTMENT PROVISIONS. 
(a) INCLUSION OF ADDITIONAL CLASS.—Section 1104(b) of the 
Legal Immigration Family Equity Act is amended— 
(1) in paragraph (1), by striking "or" at the end; 
(2) in paragraph (2), by striking the period at the end 
and inserting "; or"; and 
(3) by adding at the end the following new paragraph: 
"(3) Zambrano v. INS, vacated sub nom. Immigration and 
NaturaHzation Service v. Zambrano, 509 U.S. 918 (1993).". 
(b) CONFORMING APPLICATION OF CONSENT PROVISION.—Section 
1104(c) of the Legal Immigration Family Equity Act is amended 
by adding at the end the following new paragraph: 
"(10) CONFORMING APPLICATION OF CONSENT PROVISION.— 
In addition to the waivers provided in subsection (d)(2) of 
such section 245A of the Immigration and Nationality Act, 
the Attorney General may grant the alien a waiver of the 
grounds of inadmissibility under subparagraphs (A) and (C) 
PUBLIC LAW 10&-554—APPENDIX D 
114 STAT. 2763A-325 
of section 212(a)(9) of such Act (8 U.S.C. 1182(a)(9)). In granting 
such waivers, the Attorney General shall use standards used 
in granting consent under subparagraphs (A)(iii) and (C)(ii) 
of such section.". 
(c) INAPPLICABILITY OF REMOVAL ORDER REINSTATEMENT.—Sec-
tion 1104 of such Act is further amended— 
(1) by redesignating subsection (g) as subsection (h); and 
(2) by inserting after subsection (f) the following new sub-
section: 
"(g) 
INAPPLICABILITY OF REMOVAL ORDER REINSTATEMENT.— 
Section 241(a)(5) of the Immigration and Nationality Act shall 
not apply with respect to an alien who is applying for adjustment 
of status under this section.". 
SEC. 1504. APPLICATION OF FAMILY UNITY PROVISIONS TO SPOUSES 
AND 
UNMARRIED CHILDREN OF CERTAIN LIFE ACT 
BENEFICIARIES. 
(a) IMMIGRATION BENEFITS.—Except as provided in subsection 
(d), in the case of an eligible spouse or child (as described in 
subsection (b)), the Attorney General— 
(1) shall not remove the alien on a ground specified in 
paragraph (1)(A), (1)(B), (1)(C), or (3)(A) of section 237(a) of 
the Immigration and Nationality Act (8 U.S.C. 1227(a)), other 
than so much of paragraph (1)(A) of such section as relates 
to a ground of inadmissibility described in paragraph (2) or 
(3) of section 212(a) of such Act (8 U.S.C. 1182(a)); and 
(2) shall authorize the alien to engage in employment in 
the United States during the period of time in which protection 
is provided under paragraph (1) and shall provide the alien 
with an "employment authorized" endorsement or other appro-
priate document signifying authorization of employment. 
(b) ELIGIBLE SPOUSES AND CHILDREN.—For purposes of this 
section, the term "eligible spouse or child" means an alien who 
is the spouse or unmarried child of an alien described in section 
1104(b) of the Legal Immigration Family Equity Act if the spouse 
or child— 
(1) entered the United States before December 1, 1988; 
and 
(2) resided in the United States on such date. 
(c) PROCESS FOR RELIEF FOR ELIGIBLE SPOUSES AND CHILDREN 
OUTSIDE THE UNITED STATES.—If an alien has obtained lawful 
permanent resident status under section 1104 of the Legal Immigra-
tion Family Equity Act and the alien has an eligible spouse or 
child who is no longer physically present in the United States, 
the Attorney General shall establish a process under which the 
eligible spouse or child may be paroled into the United States 
in order to obtain the benefits of subsection (a) unless the Attorney 
General finds that the spouse or child would be inadmissible or 
deportable on any ground, other than a ground for which the 
alien would not be subject to removal under subsection (a)(1). An 
alien so paroled shall not be treated as paroled into the United 
States for purposes of section 201(c)(4) of the Immigration and 
Nationality Act (8 U.S.C. 1151(c)(4)). 
(d) EXCEPTION.—^An alien is not eligible for the benefits of 
this section if the Attorney General finds that— 
(1) the alien has been convicted of a felony or three or 
more misdemeanors in the United States; or 
114 STAT. 2763A-326 
PUBLIC LAW 106-554—APPENDIX D 
(2) the alien is described in section 241(b)(3)(B) of the 
Immigration and Nationality Act (8 U.S.C. 1231(b)(3)(B)). 
(e) APPLICATION OF DEFINITIONS.—Except as otherwise specifi-
cally provided in this section, the definitions contained in the 
Immigration and Nationality Act shall apply in the administration 
of this section. 
SEC. 1505. MISCELLANEOUS AMENDMENTS TO VARIOUS ADJUSTMENT 
AND RELIEF ACTS. 
(A) NICARAGUAN ADJUSTMENT AND CENTRAL AMERICAN RELIEF 
ACT.— 
(1) IN GENERAL.—Section 202(a) of the Nicaraguan Adjust-
ment and Central American Relief Act is amended— 
(A) by redesignating paragraph (2) as paragraph (3); 
and 
(B) by inserting after paragraph (1) the following new 
paragraph: 
"(2) RULES IN APPLYING CERTAIN PROVISIONS.—In the case 
of an alien described in subsection (b) or (d) who is applying 
for adjustment of status under this section— 
"(A) the provisions of section 241(a)(5) of the Immigra-
tion and Nationality Act shall not apply; and 
"(B) the Attorney General may grant the alien a waiver 
on the grounds of inadmissibility under subparagraphs (A) 
and (C) of section 212(a)(9) of such Act. 
In granting waivers under subparagraph (B), the Attorney Gen-
eral shall use standards used in granting consent under sub-
paragraphs (A)(iii) and (C)(ii) of such section 212(a)(9).". 
(2) PERMITTING MOTION TO REOPEN.—Notwithstanding any 
time and number limitations imposed by law on motions to 
reopen exclusion, removal, or deportation proceedings (except 
limitations premised on an alien's conviction of an aggravated 
felony (as defined by section 101(a) of the Immigration and 
Nationality Act)), a national of Cuba or Nicaragua who has 
become eligible for adjustment of status under the Nicaraguan 
Adjustment and Central American Relief Act as a result of 
the amendments made by paragraph (1), may file one motion 
to reopen exclusion, deportation, or removal proceedings to 
apply for such adjustment under that Act. The scope of any 
proceeding reopened on this basis shall be limited to a deter-
mination of the alien's eligibility for adjustment of status under 
that Act. All such motions shall be filed within 180 days of 
the date of the enactment of this Act. 
(b) HAITIAN REFUGEE IMMIGRATION FAIRNESS ACT OF 1998.— 
(1) 
INAPPLICABILITY 
OF 
CERTAIN 
PROVISIONS.—Section 
902(a) of the Haitian Refugee Immigration Fairness Act of 
1998 is amended— 
(A) by redesignating paragraph (2) as paragraph (3); 
and 
(B) by inserting after paragraph (1) the following new 
paragraph: 
"(2) INAPPLICABILITY OF CERTAIN PROVISIONS.—In the case 
of an alien described in subsection (b) or (d) who is applying 
for adjustment of status under this section— 
"(A) the provisions of section 241(a)(5) of the Immigra-
tion and Nationality Act shall not apply; and 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-327 
"(B) the Attorney General may grant the alien a waiver 
on the grounds of inadmissibility under subparagraphs (A) 
and (C) of section 212(a)(9) of such Act. 
In granting waivers under subparagraph (B), the Attorney Gen-
eral shall use standards used in granting consent under sub-
paragraphs (A)(iii) and (C)(ii) of such section 212(a)(9).". 
(2) PERMITTING MOTION TO REOPEN.—Notwithstanding any 
time and number limitations imposed by law on motions to 
reopen exclusion, removal, or deportation proceedings (except 
limitations premised on an alien's conviction of an aggravated 
felony (as defined by section 101(a) of the Immigration and 
Nationality Act)), a national of Haiti who has become eligible 
for adjustment of status under the Haitian Refugee Immigra-
tion Fairness Act of 1998 as a result of the amendments made 
by paragraph (1), may file one motion to reopen exclusion, 
deportation, or removal proceedings to apply for such adjust-
ment under that Act. The scope of any proceeding reopened 
on this basis shall be limited to a determination of the alien's 
eligibility for adjustment of status under that Act. All such 
motions shall be filed within 180 days of the date of the enact-
ment of this Act. 
(c) SECTION 309 OF IIRIRA.—Section 309 of the Illegal Immigra-
tion Reform and Immigrant Responsibility Act of 1996 is amended 
by adding at the end the following new subsection: 
"(h) RELIEF AND MOTIONS TO REOPEN.— 
"(1) RELIEF.—^An alien described in subsection (c)(5)(C)(i) 
who is otherwise eligible for— 
"(A) suspension of deportation pursuant to section 
244(a) bf the Immigration and Nationality Act, as in effect 
before the title III-A effective date; or 
"(B) cancellation of removal, pursuant to section 
* 
240A(b) of the Immigration and Nationality Act and sub-
section (f) of this section; 
shall not be barred from applying for such relief by operation 
of section 241(a)(5) of the Immigration and Nationality Act, 
as in effect after the title III-A effective date. 
"(2) ADDITIONAL MOTION TO REOPEN PERMITTED.—Notwith-
standing any limitation imposed by law on motions to reopen 
removal or deportation proceedings (except limitations premised 
on an alien's conviction of an aggravated felony (as defined 
by section 101(a) of the Immigration and Nationality Act)), 
any alien who is described in subsection (c)(5)(C)(i) and who 
has become eligible for cancellation of removal or suspension 
of deportation as a result of the enactment of paragraph (1) 
may file one motion to reopen removal or deportation proceed-
ings in order to apply for cancellation of removal or suspension 
of deportation. The scope of any proceeding reopened on this 
basis shall be limited to a determination of the alien's eligibility 
for cancellation of removal or suspension of deportation. The 
Attorney General shall designate a specific time period in which 
all such motions to reopen are required to be filed. The period 
shall begin not later than 60 days after the date of the enact-
ment of this subsection and shall extend for a period not to 
exceed 240 days. 
"(3) CONSTRUCTION.—Nothing in this subsection shall pre-
clude an alien from filing a motion to reopen pursuant to 
section 240(b)(5)(C)(ii) of the Immigration and Nationality Act, 
114 STAT. 2763A-328 
PUBLIC LAW 106-554—APPENDIX D 
or section 242B(c)(3)(B) of such Act (as in effect before the 
title III-A effective date).". 
SEC. 1506. EFFECTIVE DATE, 
This title shall take effect as if included in the enactment 
of the Legal Immigration Family Equity Act. 
TITLE XVI—IMPROVING LITERACY THROUGH FAMILY 
LITERACY PROJECTS 
SEC. 1601. SHORT TITLE. 
This title may be cited as the "Literacy Involves Families 
Together Act". 
SEC. 1602. AUTHORIZATION OF APPROPRIATIONS. 
Section 1002(b) of the Elementary and Secondary Education 
Act of 
1965 (20 U.S.C. 6302(b)) is amended 
by 
striking 
"$118,000,000 for fiscal year 1995" and inserting "$250,000,000 
for fiscal year 2001". 
SEC. 1603. IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDU-
CATIONAL AGENCIES. 
Section 1111(c) of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6311(c)) is amended— 
(1) in paragraph (5), by striking "smd" at the end; 
(2) in paragraph (6), by striking the period at the end 
and inserting "; and"; and 
(3) by adding at the end the following: 
"(7) the State educational agency will encourage local edu-
cational agencies and individual schools participating in a pro-
» 
gram assisted under this part to offer family literacy services 
(using funds under this part), if the agency or school determines 
that a substantial number of students served under this part 
by the agency or school have parents who do not have a high 
school diploma or its recognized equivalent or who have low 
levels of literacy.". 
SEC. 1604. EVEN START FAMILY LITERACY PROGRAMS. 
(a) PART HEADING.—The part heading for part B of title I 
of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
6361 et seq.) is amended to read as follows: 
"PART B—WILLIAM F. GOODLING EVEN START 
FAMILY LITERACY PROGRAMS". 
(b) STATEMENT OF PURPOSE.—Section 1201 of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 6361) is amended— 
(1) in paragraph (1), by inserting "high quality" after "build 
on"; and 
(2) by amending paragraph (2) to read as follows: 
"(2) promote the academic achievement of children and 
adults;"; 
(3) by striking the period at the end of paragraph (3) 
and inserting "; and"; and 
(4) by adding at the end the following: 
"(4) use instructional programs based on scientifically based 
reading research (as defined in section 2252) and the prevention 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-329 
of reading difficulties for children and adults, to the extent 
such research is available.". 
(c) PROGRAM AUTHORIZED.— 
(1) RESERVATION FOR MIGRANT PROGRAMS, OUTLYING AREAS, 
AND INDIAN TRIBES.—Section 1202(a) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6362(a)) is 
amended— 
(A) in paragraph (1), in the matter preceding subpara-
graph (A), by inserting "(or, if such appropriated amount 
exceeds $200,000,000, 6 percent of such amount)" after 
"1002(b)"; 
(B) in paragraph (2), by striking "If the amount of 
funds 
made available under this subsection exceeds 
$4,600,000," and inserting "After the date of the enactment 
of the Literacy Involves Families Together Act,"; and 
(C) by adding at the end the following: 
"(3) COORDINATION OF PROGRAMS FOR AMERICAN INDIANS.— 
The Secretary shall ensure that programs under paragraph 
(1)(C) are coordinated with family literacy programs operated 
by the Bureau of Indian Affairs in order to avoid duplication 
and to encourage the dissemination of information on high 
quality family literacy programs serving American Indians.". 
(2) RESERVATION FOR FEDERAL ACTIVITIES.—Section 1202(b) 
of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6362(b)) is amended to read as follows: 
"(b) RESERVATION FOR FEDERAL ACTIVITIES.— 
"(1) 
EVALUATION, 
TECHNICAL 
ASSISTANCE, 
PROGRAM 
IMPROVEMENT, AND REPLICATION ACTIVITIES.—^From amounts 
appropriated under section 1002(b), the Secretary may reserve 
not more than 3 percent of such amounts for purposes of— 
"(A) carrying out the evaluation required by section 
1209; and 
"(B) providing, through grants or contracts with eligible 
organizations, technical assistance, program improvement, 
and replication activities. 
"(2) RESEARCH.—In the case of fiscal years 2001 through 
2004, if the amount appropriated under section 1002(b) for 
any of such years— 
"(A) is equal to or less than the amounts appropriated 
for the preceding fiscal year, the Secretary may reserve 
from such amount only the amount necessary to continue 
multiyear activities carried out pursuant to section 1211(b) 
that began during or prior to the preceding fiscal year; 
or 
"(B) exceeds the amount appropriated for the preceding 
fiscal year, the Secretary shall reserve from such excess 
amount $2,000,000 or 50 percent, whichever is less, to 
carry out section 1211(b).". 
(d) RESERVATION FOR GRANTS.—Section 1202(c)(1) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 
6362(c)(1)) is amended— 
(1) by striking "From funds reserved under section 
2260(b)(3), the Secretary shall award grants," and inserting 
"For any fiscal year for which at least one State applies and 
submits an application that meets the requirements and goals 
of this subsection and for which the amount appropriated under 
section 1002(b) exceeds the amount appropriated under such 
114 STAT. 2763A-330 
PUBLIC LAW 106-554—APPENDIX D 
section for the preceding fiscal year, the Secretary shall reserve, 
from the amount of such excess remaining after the application 
of subsection (b)(2), the amount of such remainder or 
$1,000,000, whichever is less, to award grants,"; and 
(2) by adding at the end "No State may receive more 
than one grant under this subsection.", 
(e) ALLOCATIONS.—Section 1202(d)(2) of the Elementary and 
. i 
Secondary Education Act of 1965 (20 U.S.C. 6362(d)(2)) is amended 
by striking "that section" and inserting "that part". 
(f) STATE LEVEL ACTIVITIES.—Section 1203(a) of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 6363(a)) is 
amended— 
(1) by striking "5 percent" and inserting "a total of 6 
percent"; and 
(2) in paragraph (1), by inserting before the semicolon 
the following: ", not to exceed half of such total". 
(g) SUBGRANTS FOR LOCAL PROGRAMS.—Section 1203(b)(2) of 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
6363(b)(2)) is amended to read as follows: 
"(2) MINIMUM SUBGRANT AMOUNTS.— 
"(A) IN GENERAL.—Except as provided in subpara-
graphs (B) and (C), no State shall award a subgrant under 
paragraph (1) in an amount less than $75,000. 
"(B) SUBGRANTEES IN NINTH AND SUCCEEDING YEARS.— 
No State shall award a subgrant under paragraph (1) in 
an amount less than $52,500 to an eligible entity for a 
fiscal year to carry out an Even Start program that is 
receiving assistance under this part or its predecessor 
authority for the ninth (or any subsequent) fiscal year. 
"(C) EXCEPTION FOR SINGLE SUBGRANT.—A State may 
award one subgrant in each fiscal year of sufficient size, 
scope, and quality to be effective in an amount less than 
$75,000 if, after awarding subgrants under paragraph (1) 
for such fiscal year in accordance with subparagraphs (A) 
and (B), less than $75,000 is available to the State to 
award such subgrants.". 
(h) USES OF FUNDS.—Section 1204 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6364) is amended— 
(1) in subsection (a), by striking "family-centered education 
programs" and inserting "family literacy services"; and 
(2) by adding at the end the following: 
"(c) USE OF FUNDS FOR FAMILY LITERACY SERVICES.— 
"(1) IN GENERAL.—From funds reserved under section 
1203(a), a State may use a portion of such funds to assist 
eligible entities receiving a subgrant under section 1203(b) in 
improving the quality of family literacy services provided under 
Even Start programs under this part, except that in no case 
may a State's use of funds for this purpose for a fiscal year 
result in a decrease from the level of activities and services 
provided to program participants in the preceding year. 
"(2) PRIORITY.—In carrying out paragraph (1), a State shall 
give priority to programs that were of low quality, as evaluated 
based on the indicators of program quality developed by the 
State under section 1210. 
"(3) TECHNICAL ASSISTANCE TO HELP LOCAL PROGRAMS RAISE 
ADDITIONAL FUNDS.—In carrying out paragraph (1), a State 
may use the funds referred to in such paragraph to provide 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-331 
technical assistance to help local programs of demonstrated 
effectiveness to access and leverage additional funds for the 
purpose of expanding services and reducing waiting lists, 
including requesting and applying for non-Federal resources. 
"(4) 
TECHNICAL ASSISTANCE AND TRAINING.—Assistance 
under paragraph (1) shall be in the form of technical assistance 
and training, provided by a State through a grant, contract, 
or cooperative agreement with an entity that has experience 
in offering high quality training and technical assistance to 
family literacy providers.". 
(i) PROGRAM ELEMENTS.—Section 1205 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6365) is amended— 
(1) by redesignating paragraphs (9) and (10) as paragraphs 
(14) and (15), respectively; 
(2) by redesignating paragraphs (5) through (8) as para-
graphs (6) through (9), respectively; 
(3) by inserting after paragraph (4) the following: 
"(5) with respect to the qualifications of staff the cost 
of whose salaries are paid, in whole or in part, with Federal 
funds provided under this part, ensure that— 
"(A) not later than 4 years after the date of the enact-
ment of the Literacy Involves Families Together Act— 
"(i) a majority of the individuals providing aca-
demic instruction— 
"(I) shall have obtained an associate's, bach-
elor's, or graduate degree in a field related to 
early childhood education, elementary or secondary 
school education, or adult education; and 
"(II) if applicable, shall meet qualifications 
established by the State for early childhood edu-
cation, elementary or secondary school education, 
or adult education provided as part of an Even 
Start program or another family literacy program; 
"(ii) the individual responsible for administration 
of family literacy services under this part has received 
training in the operation of a family literacy program; 
and 
"(iii) paraprofessionals who provide support for 
academic instruction have a high school diploma or 
its recognized equivalent; and 
"(B) beginning on the date of the enactment of the 
Literacy Involves Families Together Act, all new personnel 
hired to provide academic instruction— 
"(i) have obtained an associate's, bachelor's, or 
graduate degree in a field related to early childhood 
education, elementary or secondary school education, 
or adult education; and 
"(ii) if applicable, meet qualifications established 
by the State for early childhood education, elementary 
or secondary school education, or adult education pro-
vided as part of an Even Start program or another 
family literacy program;"; 
(4) in paragraph (8) (as so redesignated by paragraph (2), 
by striking "or enrichment" and inserting "and enrichment". 
(5) by inserting after paragraph (9) (as so redesignated 
by paragraph (2)) the following: 
114 STAT. 2763A-332 PUBLIC LAW 106-554—APPENDIX D 
"(10) use instructional programs based on scientifically 
based reading research (as defined in section 2252) for children 
and adults, to the extent such research is available; 
"(11) encourage participating families to attend regularly 
and to remain in the program a sufficient time to meet their 
program goals; 
"(12) include reading readiness activities for preschool chil-
dren based on scientifically based reading research (as defined 
in section 2252), to the extent available, to ensure children 
enter school ready to learn to read; 
"(13) if applicable, promote the continuity of family literacy 
to ensure that individuals retain and improve their educational 
outcomes"; and 
(5) in paragraph (14) (as so redesignated), by striking "pro-
gram." and inserting "program to be used for program improve-
ment.". 
(j) ELIGIBLE PARTICIPANTS.—Section 1206 of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 6366) is amended— 
(1) in subsection (a)(1)(B) by striking "part;" and inserting 
"part, or who are attending secondary school;"; and 
(2) in subsection (b), by adding at the end the following: 
"(3) CHILDREN 8 YEARS OF AGE OR OLDER.—If an Even 
Start program assisted under this part collaborates with a 
program under part A, and funds received under such part 
A program contribute to paying the cost of providing programs 
under this part to children 8 years of age or older, the Even 
Start program, notwithstanding subsection (a)(2), may permit 
* 
the participation of children 8 years of age or older if the 
focus of the program continues to remain on families with 
young children.". 
(k) PLAN.—Section 1207(c) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6367(c)) is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph (A), by 
inserting "and continuous improvement" after "plan of oper-
ation"; 
(B) in subparagraph (A), by striking "goals;" and insert-
ing "objectives, strategies to meet such objectives, and how 
they are consistent with the program indicators established 
by the State;"; 
(C) in subparagraph (E), by striking "and" at the end; 
(D) in subparagraph (F)— 
(i) by striking "Act, the Goals 2000: Educate Amer-
ica Act," and inserting "Act"; and 
(ii) by striking the period at the end and inserting 
"; and"; and 
(E) by adding at the end the following: 
"(G) a description of how the plan provides for rigorous 
and objective evaluation of progress toward the program 
objectives described in subparagraph (A) and for continuing 
use of evaluation data for program improvement."; and 
(2) in paragraph (2), in the matter preceding subparagraph 
(A), by striking "(1)(A)" and inserting "(1)". 
(1) AWARD OF SUBGRANTS.—Section 1208 of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 6368) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)(B)— 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-333 
(i) by striking "including a high" and inserting 
"such as a high"; and 
(ii) by striking "part A;" and inserting "part A, 
a high number or percentage of parents who have 
been victims of domestic violence, or a high number 
or percentage of parents who are receiving assistance 
under a State program funded under part A of title 
IV of the Social Security Act (42 U.S.C. 601 et seq.);"; 
(B) in paragraph (1)(F), by striking "Federal" and 
inserting "non-Federal"; 
(C) in paragraph (1)(H), by inserting "family literacy 
projects and other" before "local educational agencies"; and 
(D) in paragraph (3), in the matter preceding subpara-
graph (A), by striking "one or more of the following individ-
uals:" and inserting "one individual with expertise in family 
literacy programs, and may include other individuals, such 
as one or more of the following:"; and 
(2) in subsection (b)— 
(A) by striking paragraph (3) and inserting the follow-
ing: 
"(3) CONTINUING ELIGIBILITY.—In awarding subgrant funds 
to continue a program under this part after the first year, 
the State educational agency shall review the progress of each 
eligible entity in meeting the objectives of the program referred 
to in section 1207(c)(1)(A) and shall evaluate the program based 
on the indicators of program quality developed by the State 
under section 1210."; and 
(B) by amending paragraph (5)(B) to read as follows: 
"(B) The Federal share of any subgrant renewed under 
subparagraph (A) shall be limited in accordance with section 
1204(b).". 
(m) RESEARCH.—Section 1211 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6369b) is amended— 
(1) in subsection (b), by striking "subsection (a)" and insert-
ing "subsections (a) and (b)"; 
(2) by redesignating subsection (b) as subsection (c); and 
(3) by inserting after subsection (a) the following: 
"(b) SCIENTIFICALLY BASED RESEARCH ON FAMILY LITERACY.— 
"(1) IN GENERAL.—From amounts reserved under section 
1202(b)(2), the National Institute for Literacy, in consultation 
with the Secretary, shall carry out research that— 
"(A) is scientifically based reading research (as defined 
in section 2252); and 
"(B) determines— 
"(i) the most effective ways of improving the lit-
eracy skills of adults with reading difficulties; and 
"(ii) how family literacy services can best provide 
parents with the knowledge and skills they need to 
support their children's literacy development. 
"(2) USE OF EXPERT ENTITY.—The National Institute for 
Literacy, in consultation with the Secretary, shall carry out 
the research under paragraph (1) through an entity, including 
a Federal agency, that has expertise in carrying out longitudinal 
studies of the development of literacy slalls in children and 
has developed effective interventions to help children with read-
ing difficulties.". 
114 STAT. 2763A-334 
PUBLIC LAW 106-554—APPENDIX D 
(n) INDICATORS OF PROGRAM QUALITY.—Not later than 30 days 
after the date of the enactment of this Act, the Secretary shall 
notify each State that receives funds under part B of title I of 
the Elementary and Secondary Education Act of 1965 that to be 
eligible to receive fiscal year 2001 fiinds under part B, such State 
shall submit to the Secretary, not later than June 30, 2001, its 
indicators of program quality as described in section 1210 of the 
Elementary and Secondary Education Act of 1965. A State that 
fails to comply with this subsection shall be ineligible to receive 
funds under such part in subsequent years unless such State sub-
mits to the Secretary, not later than June 30 of the year in which 
funds are requested, its indicators of program quality as described 
in section 1210 of the Elementary and Secondary Education Act 
of 1965. 
SEC. 1605. EDUCATION OF MIGRATORY CHILDREN. 
Section 1304(b) of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6394(b)) is amended— 
(1) in paragraph (5), by striking "and" at the end; 
(2) in paragraph (6), by striking the period at the end 
and inserting "; and"; and 
(3) by adding at the end the following: 
"(7) a description of how the State will encourage programs 
and projects assisted under this part to offer family literacy 
services if the program or project serves a substantial number 
of migratory children who have parents who do not have a 
high school diploma or its recognized equivalent or who have 
low levels of literacy.". 
SEC. 1606. DEFINITIONS. 
(a) IN GENERAL.—Section 14101 of the Elementary and Second-
ary Education Act of 1965 (20 U.S.C. 8801) is amended— 
(1) by redesignating paragraphs (15) through (29) as para-
graphs (16) through (30), respectively; and 
(2) by inserting after paragraph (14) the following: 
"(15) FAMILY LITERACY SERVICES.—The term 'family literacy 
services' means services provided to participants on a voluntary 
basis that are of sufficient intensity in terms of hours, and 
of sufficient duration, to make sustainable changes in a family, 
and that integrate all of the following activities: 
"(A) Interactive literacy activities between parents and 
their children. 
"(B) Training for parents regarding how to be the pri-
mary teacher for their children and ftill partners in the 
education of their children. 
"(C) Parent literacy training that leads to economic 
self-sufficiency. 
"(D) An age-appropriate education to prepare children 
for success in school and life experiences.". 
(b) CONFORMING AMENDMENTS.— 
(1) 
EVEN 
START FAMILY LITERACY PROGRAMS.—Section 
1202(e) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6362(e)) is amended— 
(A) by striking paragraph (3); and 
(B) by redesignating paragraphs (4) and (5) as para-
graphs (3) and (4), respectively. 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-335 
(2) READING AND LITERACY GRANTS.—(A) Section 2252 of 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
6661a) is amended— 
(i) by striking paragraph (2); and 
(ii) by redesignating paragraphs (3) through (5) as 
paragraphs (2) through (4), respectively. 
(B) Section 2260 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 66611) is amendmed— 
(i) in subsection (a), by striking "and section 1202(c)" 
each place it appears, and 
(ii) in subsection (b)— 
(I) in paragraph (1), by inserting "and" after the 
semicolon; 
(II) in paragraph (2), by striking "; and " and 
inserting a period; and 
(III) by striking paragraph (3). 
i 
SEC. 1607. INDIAN EDUCATION. 
(a) EARLY CHILDHOOD DEVELOPMENT PROGRAM.—Section 
1143 
of the Education Amendments of 1978 (25 U.S.C. 2023) is 
amended— 
(1) in subsection (b)(1), in the matter preceding subpara-
graph (A)— 
(A) by striking "(f)" and inserting "(g)"; and 
(B) by striking "(e))" and inserting "(f))"; 
(2) in subsection (d)(1)— 
(A) by redesignating subparagraphs (D) and (E) as 
subparagraphs (E) and (F), respectively; and 
(B) by inserting after subparagraph (C) the following: 
"(D) family literacy services,"; 
(3) in subsection (e), by striking "(f)," and inserting "(g),"; 
(4) by redesignating subsections (e) and (f) as subsections 
(f) and (g), respectively; and 
(5) by inserting after subsection (d) the following: 
"(e) Family literacy programs operated under this section, and 
other family literacy programs operated by the Bureau of Indian 
Affairs, shall be coordinated with family literacy programs for Amer-
ican Indian children under part B of title I of the Elementary 
and Secondary Education Act of 1965 in order to avoid duplication 
and to encourage the dissemination of information on quality family 
literacy programs serving American Indians.". 
(b) DEFINITIONS.—Section 1146 of the Education Amendments 
of 1978 (25 U.S.C. 2026) is amended— 
(1) by redesignating paragraphs (7) through (14) as para-
graphs (8) through (15), respectively; and 
(2) Ijy inserting after paragraph (6) the following: 
"(7) the term 'family literacy services' has the meaning 
given such term in section 14101 of the Elementary and Second-
ary Education Act of 1965 (20 U.S.C. 8801);". 
TITLE XVII—CHILDREN'S INTERNET 
PROTECTION 
SEC. 1701. SHORT TITLE. 
This title may be cited as the "Children's Internet Protection 
Act". 
114 STAT. 2763A-336 
PUBLIC LAW 106-554—APPENDIX D 
SEC. 1702. DISCLAIMERS. 
(a) DISCLAIMER REGARDING CONTENT.—Nothing in this title 
or the amendments made by this title shall be construed to prohibit 
a local educational agency, elementary or secondary school, or 
library from blocking access on the Internet on computers owned 
or operated by that agency, school, or library to amy content other 
than content covered by this title or the amendments made by 
this title. 
(b) DISCLAIMER REGARDING PRIVACY.—Nothing in this title or 
the amendments made by this title shall be construed to require 
the tracking of Internet use by any identifiable minor or adult 
user. 
SEC. 1703. STUDY OF TECHNOLOGY PROTECTION MEASURES. 
(a) IN GENERAL.—^Not later than 18 months after the date 
of the enactment of this Act, the National Telecommunications 
and Information Administration shall initiate a notice and comment 
proceeding for purposes o
f
— 
(1) evaluating whether or not currently available technology 
protection measures, including commercial Internet blocking 
and filtering software, adequately addresses the needs of edu-
cational institutions; 
(2) making recommendations on how to foster the develop-
ment of measures that meet such needs; and 
(3) evaluating the development and effectiveness of local 
Internet safety policies that are currently in operation after 
community input. 
(b) DEFINITIONS.—In this section: 
(1) TECHNOLOGY PROTECTION MEASURE.—The term "tech-
nology protection measure" means a specific technology that 
blocks or filters Internet access to visual depictions that are— 
(A) obscene, as that term is defined in section 1460 
of title 18, United States Code; 
(B) child pornography, as that term is defined in section 
2256 of title 18, United States Code; or 
(C) harmful to minors. 
(2) HARMFUL TO MINORS.—The term "harmful to minors" 
means any picture, image, graphic image file, or other visual 
depiction that— 
(A) taken as a whole and with respect to minors, 
appeals to a prurient interest in nudity, sex, or excretion; 
(B) depicts, describes, or represents, in a patently offen-
sive way with respect to what is suitable for minors, an 
actual or simulated sexual act or sexual contact, actual 
or simulated normal or perverted sexual acts, or a lewd 
exhibition of the genitals; and 
(C) taken as a whole, lacks serious literary, artistic, 
political, or scientific value as to minors. 
(3) SEXUAL ACT; SEXUAL CONTACT.—The terms "sexual act" 
and "sexual contact" have the meanings given such terms in 
section 2246 of title 18, United States Code. 
PUBLIC LAW 106-554r-APPENDIX D 
114 STAT. 2763A-337 
Subtitle A—Federal Funding for 
Educational Institution Computers 
SEC. 1711. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR 
SCHOOLS. 
Title III of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6801 et seq.) is amended by adding at the end 
the following: 
"PART F—LIMITATION ON AVAILABILITY OF 
CERTAIN FUNDS FOR SCHOOLS 
"SEC. 3601. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR 
SCHOOLS. 
"(a) INTERNET SAFETY.— 
"(1) IN GENERAL.—No funds made available under this 
title to a local educational agency for an elementary or second-
ary school that does not receive services at discount rates 
under section 254(h)(5) of the Communications Act of 1934, 
as added by section 1721 of Children's Internet Protection 
Act, may be used to purchase computers used to access the 
Internet, or to pay for direct costs associated with accessing 
the Internet, for such school unless the school, school board, 
local educational agency, or other authority with responsibility 
for administration of such school both— 
"(A)(i) has in place a policy of Internet safety for minors 
that includes the operation of a technology protection meas-
ure with respect to any of its computers with Internet 
access that protects against access through such computers 
to visual depictions that are— 
"(I) obscene; 
"(II) child pornography; or 
' 
"(III) harmful to minors; and 
"(ii) is enforcing the operation of such technology 
protection measure during any use of such computers by 
minors; and 
"(B)(i) has in place a policy of Internet safety that 
includes the operation of a technology protection measure 
with respect to any of its computers with Internet access 
that protects against access through such computers to 
visual depictions that are— 
"(I) obscene; or 
"(II) child pornography; and 
"(ii) is enforcing the operation of such technology 
protection measure during any use of such computers. 
"(2) TIMING AND APPLICABILITY OF IMPLEMENTATION.— 
"(A) IN GENERAL.—The local educational agency with 
responsibility for a school covered by paragraph (1) shall 
certify the compliance of such school with the requirements 
of paragraph (1) as part of the application process for 
the next program funding year under this Act following 
the effective date of this section, and for each subsequent 
program funding year thereafter. 
"(B) PROCESS.— 
114 STAT. 2763A-338 
PUBLIC LAW 106-554—APPENDIX D 
"(i) SCHOOLS WITH INTERNET SAFETY POLICIES AND 
TECHNOLOGY PROTECTION MEASURES IN PLACE.—A local 
educational agency with responsibility for a school cov-
ered by paragraph (1) that has in place an Internet 
safety policy meeting the requirements of paragraph 
(1) shall certify its compliance with paragraph (1) dur-
ing each annual program application cycle under this 
Act. 
"(ii) SCHOOLS WITHOUT INTERNET SAFETY POLICIES 
AND TECHNOLOGY PROTECTION MEASURES IN PLACE.— 
A local educational agency with responsibility for a 
school covered by paragraph (1) that does not have 
in place an Internet safety policy meeting the require-
ments of paragraph (1)— 
"(I) for the first program year after the effec-
tive date of this section in which the local edu-
cational agency is applying for funds for such 
school under this Act, shall certify that it is under-
taking such actions, including any necessary 
procurement procedures, to put in place an Inter-
net safety policy that meets such requirements; 
and 
"(II) for the second program year after the 
effective date of this section in which the local 
educational agency is applying for funds for such 
school under this Act, shall certify that such school 
is in compliance with such requirements. 
Any school covered by paragraph (1) for which the 
local educational agency concerned is unable to certify 
compliance with such requirements in such second pro-
gram year shall be ineligible for all funding under 
this title for such second program year and all subse-
quent program years until such time as such school 
comes into compliance with such requirements. 
"(iii) WAIVERS.—^Any school subject to a certifi-
cation under clause (ii)(II) for which the local edu-
cational agency concerned cannot make the certifi-
cation otherwise required by that clause may seek 
a waiver of that clause if State or local procurement 
rules or regulations or competitive bidding require-
ments prevent the making of the certification otherwise 
required by that clause. The local educational agency 
concerned shall notify the Secretary of the applicability 
of that clause to the school. Such notice shall certify 
that the school will be brought into compliance with 
the requirements in paragraph (1) before the start 
of the third program year after the effective date of 
this section in which the school is applying for funds 
under this title. 
"(3) DISABLING DURING CERTAIN USE.—^An administrator, 
supervisor, or person authorized by the responsible authority 
under paragraph (1) may disable the technology protection 
measure concerned to enable access for bona fide research 
or other lawful purposes. 
"(4) NONCOMPLIANCE.— 
"(A) USE OF GENERAL EDUCATION PROVISIONS ACT REM-
EDIES.—^Whenever the Secretary has reason to believe that 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-339 
any recipient of funds under this title is failing to comply 
substantially with the requirements of this subsection, the 
Secretary may— 
"(i) withhold further payments to the recipient 
under this title, 
"(ii) issue a complaint to compel compliance of 
the recipient through a cease and desist order, or 
"(iii) enter into a compliance agreement with a 
recipient to bring it into compliance with such require-
ments, 
in same manner as the Secretary is authorized to take 
such actions under sections 455, 456, and 457, respectively, 
of the General Education Provisions Act (20 U.S.C. 1234d). 
"(B) RECOVERY OF FUNDS PROHIBITED.—The actions 
authorized by subparagraph (A) are the exclusive remedies 
available with respect to the failure of a school to comply 
substantially with a provision of this subsection, and the 
Secretary shall not seek a recovery of funds from the recipi-
ent for such failure. 
"(C) RECOMMENCEMENT OF PAYMENTS.—^Whenever the 
Secretary determines (whether by certification or other 
appropriate evidence) that a recipient of funds who is sub-
ject to the withholding of pa5anents under subparagraph 
(A)(i) has cured the failure providing the basis for the 
withholding of payments, the Secretary shall cease the 
withholding of payments to the recipient under that 
subparagraph. 
"(5) DEFINITIONS.—In this section: 
"(A) COMPUTER.—The term 'computer' includes any 
hardware, software, or other technology attached or con-
nected to, installed in, or otherwise used in connection 
with a computer. 
"(B) ACCESS TO INTERNET.—^A computer shall be consid-
ered to have access to the Internet if such computer is 
equipped with a modem or is connected to a computer 
network which has access to the Internet. 
"(C) ACQUISITION OR OPERATION.—^A elementary or 
secondary school shall be considered to have received funds 
under this title for the acquisition or operation of any 
computer if such funds are used in any manner, directly 
or indirectly— 
"(i) to purchase, lease, or otherwise acquire or 
obtain the use of such computer; or 
"(ii) to obtain services, supplies, software, or other 
actions or materials to support, or in connection with, 
the operation of such computer. 
"(D) MINOR.—The term 'minor' means an individual 
who has not attained the age of 17. 
"(E) CHILD PORNOGRAPHY.—The term 'child pornog-
raphy' has the meaning given such term in section 2256 
of title 18, United States Code. 
"(F) HARMFUL TO MINORS.—The term 'harmful to 
minors' means any picture, image, graphic image file, or 
other visual depiction that— 
"(i) taken as a whole and with respect to minors, 
appeals to a prurient interest in nudity, sex, or excre-
tion; 
114 STAT. 2763A-340 
PUBLIC LAW 106-554^APPENDIX D 
"(ii) depicts, describes, or represents, in a patently 
offensive way with respect to what is suitable for 
minors, an actual or simulated sexual act or sexual 
contact, actual or simulated normal or perverted sexual 
acts, or a lewd exhibition of the genitals; and 
"(iii) taken as a whole, lacks serious literary, artis-
tic, political, or scientific value as to minors. 
"(G) OBSCENE.—The term 'obscene' has the meaning 
given such term in section 1460 of title 18, United States 
Code. 
"(H) SEXUAL ACT; SEXUAL CONTACT.—The terms 'sexual 
act' and 'sexual contact' have the meanings given such 
terms in section 2246 of title 18, United States Code. 
"(b) EFFECTIVE DATE.—^This section shall take effect 120 days 
after the date of the enactment of the Children's Internet Protection 
Act. 
"(c) SEPARABILITY.—If any provision of this section is held 
invalid, the remainder of this section shall not be affected thereby.". 
SEC. 1712. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR 
LIBRARIES. 
(a) AMENDMENT.—Section 224 of the Museum and Library Serv-
ices Act (20 U.S.C. 9134(b)) is amended— 
(1) in subsection (b)— 
(A) by redesignating paragraph (6) as paragraph (7); 
and 
(B) by inserting after paragraph (5) the following new 
paragraph: 
"(6) provide assurances that the State will comply with 
subsection (f); and"; and 
(2) by adding at the end the following new subsection: 
"(f) INTERNET SAFETY.— 
"(1) IN GENERAL.—No funds made available under this 
Act for a library described in section 213(2)(A) or (B) that 
does not receive services at discount rates under section 
254(h)(6) of the Communications Act of 1934, as added by 
section 1721 of this Children's Internet Protection Act, may 
be used to purchase computers used to access the Internet, 
or to pay for direct costs associated with accessing the Internet, 
for such library unless— 
"(A) such library— 
"(i) has in place a policy of Internet safety for 
minors that includes the operation of a technology 
protection measure with respect to any of its computers 
with Internet access that protects against access 
through such computers to visual depictions that are— 
"(I) obscene; 
"(II) child pornography; or 
"(III) harmful to minors; and 
"(ii) is enforcing the operation of such technology 
protection measure during any use of such computers 
by minors; and 
"(B) such library— 
"(i) has in place a policy of Internet safety that 
includes the operation of a technology protection meas-
ure with respect to any of its computers with Internet 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-341 
access that protects against access through such 
computers to visual depictions that are— 
"(I) obscene; or 
"(II) child pornography; and 
"(ii) is enforcing the operation of such technology 
protection measure during any use of such computers. 
"(2) ACCESS TO OTHER MATERIALS.—Nothing in this sub-
section shall be construed to prohibit a library from limiting 
Internet access to or otherwise protecting against materials 
other than those referred to in subclauses (I), (II), and (III) 
of paragraph (l)(A)(i). 
"(3) DISABLING DURING CERTAIN USE.—An administrator, 
supervisor, or other authority may disable a technology protec-
tion measure under paragraph (1) to enable access for bona 
fide research or other lawful purposes. 
"(4) TIMING AND APPLICABILITY OF IMPLEMENTATION.— 
"(A) IN GENERAL.—A library covered by paragraph (1) 
shall certify the compliance of such library with the require-
ments of paragraph (1) as part of the application process 
for the next program funding year under this Act following 
the effective date of this subsection, and for each subse-
quent program funding year thereafter. 
"(B) PROCESS.— 
"(i) LIBRARIES WITH INTERNET SAFETY POLICIES AND 
TECHNOLOGY 
PROTECTION MEASURES IN PLACE.—^A 
library covered by paragraph (1) that has in place 
an Internet safety policy meeting the requirements 
of paragraph (1) shall certify its compliance with para-
graph (1) during each annual program application cycle 
under this Act. 
"(ii) LIBRARIES WITHOUT INTERNET SAFETY POLICIES 
AND TECHNOLOGY PROTECTION MEASURES IN PLACE.— 
A library covered by paragraph (1) that does not have 
in place an Internet safety policy meeting the require-
ments of paragraph (1)— 
"(I) for the first program year after the effec-
tive date of this subsection in which the library 
applies for funds under this Act, shall certify that 
it is undertaking such actions, including any nec-
essary procurement procedures, to put in place 
an Internet safety policy that meets such require-
ments; and 
"(II) for the second program year after the 
effective date of this subsection in which the 
library applies for funds under this Act, shall cer-
tify that such library is in compliance with such 
requirements. 
Any library covered by paragraph (1) that is unable 
to certify compliance with such requirements in such 
second program year shall be ineligible for all funding 
under this Act for such second program year and all 
subsequent program years until such time as such 
library comes into compliance with such requirements, 
"(iii) WAIVERS.—^Any library subject to a certifi-
cation luider clause (ii)(II) that cannot make the certifi-
cation otherwise required by that clause may seek 
a waiver of that clause if State or local procurement 
114 STAT. 2763A-342 
PUBLIC LAW 106-554—APPENDIX D 
rules or regulations or competitive bidding require-
ments prevent the making of the certification otherwise 
required by that clause. The library shall notify the 
Director of the Institute of Museum and Library Serv-
ices of the applicability of that clause to the library. 
Such notice shall certify that the library will comply 
with the requirements in paragraph (1) before the start 
of the third program year after the effective date of 
this subsection for which the library is applying for 
funds under this Act. 
"(5) NONCOMPLIANCE.— 
"(A) USE OF GENERAL EDUCATION PROVISIONS ACT REM-
EDIES.—^Whenever the Director of the Institute of Museum 
and Library Services has reason to believe that any recipi-
ent of funds this Act is failing to comply substantially 
with the requirements of this subsection, the Director 
may— 
"(i) withhold further payments to the recipient 
under this Act, 
"(ii) issue a complaint to compel compliance of 
the recipient through a cease and desist order, or 
"(iii) enter into a compliance agreement with a 
recipient to bring it into compliance with such require-
ments. 
"(B) RECOVERY OF FUNDS PROHIBITED.—^The actions 
authorized by subparagraph (A) are the exclusive remedies 
available with respect to the failure of a library to comply 
substantially with a provision of this subsection, and the 
Director shall not seek a recovery of funds from the recipi-
ent for such failure. 
"(C) RECOMMENCEMENT OF PAYMENTS.—^Whenever the 
Director determines (whether by certification or other 
appropriate evidence) that a recipient of funds who is sub-
ject to the withholding of payments under subparagraph 
(A)(i) has cured the failure providing the basis for the 
withholding of payments, the Director shall cease the 
withholding of payments to the recipient under that 
subparagraph. 
"(6) SEPARABILITY.—If any provision of this subsection is 
held invalid, the remainder of this subsection shall not be 
affected thereby. 
"(7) DEFINITIONS.—In this section: 
"(A) CHILD PORNOGRAPHY.—^The term 'child pornog-
raphy' has the meaning given such term in section 2256 
of title 18, United States Code. 
"(B) HARMFUL TO MINORS.—The term 'harmful to 
minors' means any picture, image, graphic image file, or 
other visual depiction that— 
"(i) taken as a whole and with respect to minors, 
appeals to a prurient interest in nudity, sex, or excre-
tion; 
"(ii) depicts, describes, or represents, in a patently 
offensive way with respect to what is suitable for 
minors, an actual or simulated sexual act or sexual 
contact, actual or simulated normal or perverted sexual 
acts, or a lewd exhibition of the genitals; and 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-343 
"(iii) taken as a whole, lacks serious literary, artis-
tic, political, or scientific value as to minors. 
"(C) MINOR.—The term 'minor' means an individual 
who has not attained the age of 17. 
"(D) OBSCENE.—The term 'obscene' has the meaning 
given such term in section 1460 of title 18, United States 
Code. 
"(E) SEXUAL ACT; SEXUAL CONTACT.—The terms 'sexual 
• 
act' and 'sexual contact' have the meanings given such 
terms in section 2246 of title 18, United States Code.". 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect 120 days after the date of the enactment of this 
Act. 
Subtitle B—Universal Service Discounts 
SEC. 1721. REQUIREMENT FOR SCHOOLS AND LIBRARIES TO ENFORCE 
INTERNET 
SAFETY 
POLICIES 
WITH 
TECHNOLOGY 
PROTECTION MEASURES FOR COMPUTERS WITH INTER-
NET ACCESS AS CONDITION OF UNIVERSAL SERVICE DIS-
COUNTS. 
(a) SCHOOLS.—Section 254(h) of the Communications Act of 
1934 (47 U.S.C. 254(h)) is amended— 
(1) by redesignating paragraph (5) as paragraph (7); and 
(2) by inserting after paragraph (4) the following new para-
graph (5): 
"(5) REQUIREMENTS FOR CERTAIN SCHOOLS WITH COMPUTERS 
HAVING INTERNET ACCESS.— 
"(A) INTERNET SAFETY.— 
"(i) IN GENERAL.—Except as provided in clause 
(ii), an elementary or secondary school having comput-
ers with Internet access may not receive services at 
discount rates under paragraph (1)(B) unless the 
school, school board, local educational agency, or other 
authority with responsibility for administration of the 
school— 
"(I) submits to the Commission the certifi-
cations described in subparagraphs (B) and (C); 
"(II) submits to the Commission a certification 
that an Internet safety policy has been adopted 
and implemented for the school under subsection 
(1); and 
"(III) ensures the use of such computers in 
accordance with the certifications, 
"(ii) APPLICABILITY.—^The prohibition in clause (i) 
shall not apply with respect to a school that receives 
services at discount rates under paragraph (1)(B) only 
for purposes other than the provision of Internet access, 
Internet service, or internal connections. 
"(iii) PUBLIC NOTICE; HEARING.—An elementary or 
secondary school described in clause (i), or the school 
board, local educational agency, or other authority with 
responsibility for administration of the school, shall 
provide reasonable public notice and hold at least one 
public hearing or meeting to address the proposed 
Internet safety policy. In the case of an elementary 
114 STAT. 2763A-344 
PUBLIC LAW 106-554—APPENDIX D 
or secondary school other than an elementary or 
secondary school as defined in section 14101 of the 
Elementary and Secondary Education Act of 1965 (20 
U.S.C. 8801), the notice and hearing required by this 
clause may be limited to those members of the public 
with a relationship to the school. 
"(B) CERTIFICATION WITH RESPECT TO MINORS.—A cer-
tification under this subparagraph is a certification that 
the school, school board, local educational agency, or other 
authority with responsibility for administration of the 
school— 
"(i) is enforcing a policy of Internet safety for 
minors that includes monitoring the online activities 
of minors and the operation of a technology protection 
measure with respect to any of its computers with 
Internet access that protects against access through 
such computers to visual depictions that are— 
"(I) obscene; 
"(II) child pornography; or 
"(III) harmful to minors; and 
"(ii) is enforcing the operation of such technology 
protection measure during any use of such computers 
by minors. 
"(C) CERTIFICATION WITH RESPECT TO ADULTS.—A cer-
tification under this paragraph is a certification that the 
school, school board, local educational agency, or other 
authority with responsibility for administration of the 
school— 
"(i) is enforcing a policy of Internet safety that 
includes the operation of a technology protection meas-
ure with respect to any of its computers with Internet 
access that protects against access through such 
computers to visual depictions that are— 
"(I) obscene; or 
"(II) child pornography; and 
"(ii) is enforcing the operation of such technology 
protection measure during any use of such computers. 
"(D) DISABLING DURING ADULT USE.—An administrator, 
supervisor, or other person authorized by the certifying 
authority under subparagraph (A)(i) may disable the tech-
nology protection measure concerned, during use by an 
adult, to enable access for bona fide research or other 
lawful purpose. 
"(E) TIMING OF IMPLEMENTATION.— 
"(i) IN GENERAL.—Subject to clause (ii) in the case 
of any school covered by this paragraph as of the 
effective date of this paragraph under section 1721(h) 
of the Children's Internet Protection Act, the certifi-
cation under subparagraphs (B) and (C) shall be 
made— 
"(I) with respect to the first program funding 
year under this subsection following such effective 
date, not later than 120 days after the beginning 
of such program funding year; and 
"(II) with respect to any subsequent program 
funding year, as part of the application process 
for such program funding year. 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-345 
"(ii) PROCESS.— 
"(I) SCHOOLS WITH INTERNET SAFETY POLICY 
AND TECHNOLOGY 
PROTECTION 
MEASURES IN 
PLACE.—^A school covered by clause (i) that has 
in place an Internet safety policy and technology 
protection measures meeting the requirements 
necessary for certification under subparagraphs (B) 
and (C) shall certify its compliance with subpara-
graphs (B) and (C) during each annual program 
application cycle under this subsection, except that 
with respect to the first program funding year 
after the effective date of this paragraph under 
section 1721(h) of the Children's Internet Protec-
tion Act, the certifications shall be made not later 
than 120 days after the beginning of such first 
program funding year. 
"(II) SCHOOLS WITHOUT INTERNET SAFETY POL-
ICY AND TECHNOLOGY PROTECTION MEASURES IN 
PLACE.—^A school covered by clause (i) that does 
not have in place an Internet safety policy and 
technology 
protection 
measures 
meeting 
the 
requirements necessary for certification under sub-
paragraphs (B) and (C)— 
"(aa) for the first program year after the 
effective date of this subsection in which it 
is applying for funds under this subsection, 
shall certify that it is undertaking such 
actions, including any necessary procurement 
procedures, to put in place an Internet safety 
policy and technology protection measures 
meeting the requirements necessary for certifi-
cation under subparagraphs (B) and (C); and 
"(bb) for the second program year after 
the effective date of this subsection in which 
it is applying for funds under this subsection, 
shall certify that it is in compliance with sub-
paragraphs (B) and (C). 
Any school that is unable to certify compliance 
with such requirements in such second program 
year shall be ineligible for services at discount 
rates or funding in lieu of services at such rates 
under this subsection for such second year and 
all subsequent program years under this sub-
section, until such time as such school comes into 
compliance with this paragraph. 
"(Ill) WAIVERS.—Any school subject to sub-
clause (II) that cannot come into compliance with 
subparagraphs (B) and (C) in such second year 
program may seek a waiver of subclause (II)(bb) 
if State or local procurement rules or regulations 
or competitive bidding requirements prevent the 
making of the certification otherwise required by 
such subclause. A school, school board, local edu-
cational agency, or other authority with respon-
sibility for administration of the school shall notify 
the Commission of the applicability of such sub-
clause to the school. Such notice shall certify that 
79-194 O - 00 - 13: QL 3 Part 5 
114 STAT. 2763A-346 
PUBLIC LAW 106-554—APPENDIX D 
the school in question will be brought into compli-
ance before the start of the third program year 
after the effective date of this subsection in which 
the school*is applying for funds under this sub-
section. 
"(F) NONCOMPLIANCE.— 
"(i) 
FAILURE 
TO 
SUBMIT 
CERTIFICATION.—^Any 
school that knowingly fails to comply with the applica-
tion guidelines regarding the annual submission of 
certification required by this paragraph shall not be 
eligible for services at discount rates or funding in 
lieu of services at such rates under this subsection, 
"(ii) 
FAILURE TO COMPLY WITH CERTIFICATION.— 
Any school that knowingly fails to ensure the use of 
its computers in accordance with a certification under 
subparagraphs (B) and (C) shall reimburse any funds 
and discounts received under this subsection for the 
period covered by such certification, 
"(iii) REMEDY OF NONCOMPLIANCE.— 
"(I) FAILURE TO SUBMIT.—A school that has 
failed to submit a certification under clause (i) 
may remedy the failure by submitting the certifi-
cation to which the failure relates. Upon submittal 
of such certification, the school shall be eligible 
for services at discount rates under this subsection. 
"(II) FAILURE TO COMPLY.—A school that has 
failed to comply with a certification as described 
in clause (ii) may remedy the failure by ensuring 
the use of its computers in accordance with such 
certification. Upon submittal to the Commission 
of a certification or other appropriate evidence of 
such remedy, the school shall be eligible for serv-
ices at discount rates under this subsection.", 
(b) LIBRARIES.—Such section 254(h) is further amended by 
inserting after paragraph (5), as amended by subsection (a) of 
this section, the following new paragraph: 
"(6) REQUIREMENTS FOR CERTAIN LIBRARIES WITH COMPUT-
ERS HAVING INTERNET ACCESS.— 
"(A) INTERNET SAFETY.— 
"(i) IN GENERAL.—Except as provided in clause 
(ii), a library having one or more computers with Inter-
net access may not receive services at discount rates 
under paragraph (1)(B) unless the library— 
"(I) submits to the Commission the certifi-
cations described in subparagraphs (B) and (C); 
and 
"(II) submits to the Commission a certification 
that an Internet safety policy has been adopted 
and implemented for the library under subsection 
(1); and 
"(III) ensures the use of such computers in 
accordance with the certifications, 
"(ii) APPLICABILITY.—^The prohibition in clause (i) 
shall not apply with respect to a library that receives 
services at discount rates under paragraph (1)(B) only 
for purposes other than the provision of Internet access, 
Internet service, or internal connections. 
PUBLIC LAW 106-554^APPENDIX D 
114 STAT. 2763A-347 
"(iii) 
PUBLIC 
NOTICE; 
HEARING.—A 
library 
described in clause (i) shall provide reasonable public 
notice and hold at least one public hearing or meeting 
to address the proposed Internet safety policy. 
"(B) CERTIFICATION WITH RESPECT TO MINORS.—A cer-
tification under this subparagraph is a certification that 
the library— 
"(i) is enforcing a policy of Internet safety that 
includes the operation of a technology protection meas-
ure with respect to any of its computers with Internet 
access that protects against access through such 
computers to visual depictions that are— 
"(I) obscene; 
"(II) child pornography; or 
"(III) harmful to minors; and 
"(ii) is enforcing the operation of such technology 
protection measure during any use of such computers 
by minors. 
"(C) CERTIFICATION WITH RESPECT TO ADULTS.—^A cer-
tification under this paragraph is a certification that the 
library— 
"(i) is enforcing a policy of Internet safety that 
includes the operation of a technology protection meas-
ure with respect to any of its computers with Internet 
access that protects against access through such com-
puters to visual depictions that are— 
"(I) obscene; or 
"(II) child pornography; and 
"(ii) is enforcing the operation of such technology 
protection measure during any use of such computers. 
"(D) DISABLING DURING ADULT USE —An administrator, 
supervisor, or other person authorized by the certifying 
authority under subparagraph (A)(i) may disable the tech-
nology protection measure concerned, during use by an 
adult, to enable access for bona fide research or other 
lawful purpose. 
"(E) TIMING OF IMPLEMENTATION.— 
"(i) IN GENERAL.—Subject to clause (ii) in the case 
of any library covered by this paragraph as of the 
effective date of this paragraph under section 1721(h) 
of the Children's Internet Protection Act, the certifi-
cation under subparagraphs (B) and (C) shall be 
made— 
"(I) with respect to the first program funding 
year under this subsection following such effective 
date, not later than 120 days after the beginning 
of such program funding year; and 
"(II) with respect to any subsequent program 
funding year, as part of the application process 
for such program funding year, 
"(ii) PROCESS.— 
"(I) LIBRARIES WITH INTERNET SAFETY POLICY 
AND 
TECHNOLOGY 
PROTECTION 
MEASURES 
IN 
PLACE.—^A library covered by clause (i) that has 
in place an Internet safety policy and technology 
protection measures meeting the requirements 
necessary for certification under subparagraphs (B) 
114 STAT. 2763A-348 
PUBLIC LAW 106-554—APPENDIX D 
and (C) shall certify its compliance with subpara-
graphs (B) and (C) during each annual program 
application cycle under this subsection, except that 
with respect to the first program funding year 
£ifter the effective date of this paragraph under 
section 1721(h) of the Children's Internet Protec-
tion Act, the certifications shall be made not later 
than 120 days after the beginning of such first 
program funding year. 
"(II) 
LIBRARIES WITHOUT INTERNET SAFETY 
POLICY AND TECHNOLOGY PROTECTION MEASURES 
IN PLACE.—A library covered by clause (i) that 
does not have in place an Internet safety policy 
and technology protection measures meeting the 
requirements necessary for certification under sub-
paragraphs (B) and (C)— 
"(aa) for the first program year after the 
effective date of this subsection in which it 
is applying for funds under this subsection, 
shall certify that it is undertaking such 
actions, including any necessary procurement 
procedures, to put in place an Internet safety 
policy and technology protection measures 
meeting the requirements necessary for certifi-
cation under subparagraphs (B) and (C); and 
"(bb) for the second program year after 
the effective date of this subsection in which 
it is applying for funds under this subsection, 
shall certify that it is in compliance with sub-
paragraphs (B) and (C). 
Any library that is unable to certify compliance 
with such requirements in such second program 
year shall be ineligible for services at discount 
rates or funding in lieu of services at such rates 
under this subsection for such second year and 
all subsequent program years under this sub-
section, until such time as such library comes into 
compliance with this paragraph. 
"(Ill) WAIVERS.—^Any library subject to sub-
clause (II) that cannot come into compliance with 
subparagraphs (B) and (C) in such second year 
may seek a waiver of subclause (II)(bb) if State 
or local procurement rules or regulations or 
competitive bidding requirements prevent the 
making of the certification otherwise required by 
such subclause. A library, library board, or other 
authority with responsibility for administration of 
the library shall notify the Commission of the ap-
plicability of such subclause to the library. Such 
notice shall certify that the library in question 
will be brought into compliance before the start 
of the third program year after the effective date 
of this subsection in which the library is applying 
for funds under this subsection. 
"(F) NONCOMPLLVNCE.— 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-349 
"(i) 
FAILURE 
TO 
SUBMIT 
CERTIFICATION.—Any 
library that knowingly fails to comply with the applica-
tion guidelines regarding the annual submission of 
certification required by this paragraph shall not be 
eligible for services at discount rates or funding in 
lieu of services at such rates under this subsection. 
"(ii) FAILURE TO COMPLY WITH CERTIFICATION.— 
Any library that knowingly fails to ensure the use 
of its computers in accordance with a certification 
under subparagraphs (B) and (C) shall reimburse all 
funds and discounts received under this subsection 
for the period covered by such certification, 
"(iii) REMEDY OF NONCOMPLIANCE.— 
"(I) FAILURE TO SUBMIT.—^A library that has 
failed to submit a certification under clause (i) 
may remedy the failure by submitting the certifi-
cation to which the failure relates. Upon submittal 
of such certification, the library shall be eligible 
for services at discount rates under this subsection. 
"(II) FAILURE TO COMPLY.—A library that has 
failed to comply with a certification as described 
in clause (ii) may remedy the failure by ensuring 
the use of its computers in accordance with such 
certification. Upon submittal to the Commission 
of a certification or other appropriate evidence of 
such remedy, the library shall be eligible for serv-
ices at discount rates under this subsection.". 
(c) DEFINITIONS.—Paragraph (7) of such section, as redesignated 
by suljsection (a)(1) of this section, is amended by adding at the 
end the following: 
"(D) MINOR.—^The term 'minor* means any individual 
who has not attained the age of 17 years. 
"(E) OBSCENE.—^The term 'obscene' has the meaning 
given such term in section 1460 of title 18, United States 
Code. 
"(F) CHILD PORNOGRAPHY.—^The term 'child pornog-
raphy' has the meeining given such term in section 2256 
of title 18, United States Code. 
"(G) HARMFUL TO MINORS.—The term 'harmful to 
minors' means any picture, image, graphic image file, or 
other visual depiction that— 
"(i) taken as a whole and with respect to minors, 
appeals to a prurient interest in nudity, sex, or excre-
tion; 
"(ii) depicts, describes, or represents, in a patently 
offensive way with respect to what is suitable for 
minors, an actual or simulated sexual act or sexual 
contact, actual or simulated normal or perverted sexual 
acts, or a lewd exhibition of the genitals; and 
"(iii) taken as a whole, lacks serious literary, artis-
tic, political, or scientific value as to minors. 
"(H) SEXUAL ACT; SEXUAL CONTACT.—The terms 'sexual 
act' and 'sexual contact' have the meanings given such 
terms in section 2246 of title 18, United States Code. 
"(I) TECHNOLOGY PROTECTION MEASURE.—The term 
'technology protection measure' means a specific technology 
that blocks or filters Internet access to the material covered 
114 STAT. 2763A-350 
PUBLIC LAW 106-554—APPENDIX D 
by a certification under paragraph (5) or (6) to which such 
certification relates.". 
(d) CONFORMING AMENDMENT.—Paragraph (4) of such section 
is amended by striking "paragraph (5)(A)" and inserting "paragraph 
(7)(A)". 
(e) SEPARABILITY,—If any provision of paragraph (5) or (6) 
of section 254(h) of the Communications Act of 1934, as amended 
by this section, or the application thereof to any person or cir-
cumstance is held invalid, the remainder of such paragraph and 
the application of such paragraph to other persons or circumstances 
shall not be affected thereby. 
(f) REGULATIONS.— 
(1) REQUIREMENT.—The Federal Communications Commis-
sion shall prescribe regulations for purposes of administering 
the provisions of paragraphs (5) and (6) of section 254(h) of 
the Communications Act of 1934, as amended by this section. 
(2) DEADLINE.—^Notwithstanding any other provision of 
law, the Commission shall prescribe regulations under para-
graph (1) so as to ensure that such regulations take effect 
120 days after the date of the enactment of this Act. 
(g) AVAILABILITY OF CERTAIN FUNDS FOR ACQUISITION OF TECH-
NOLOGY PROTECTION MEASURES.— 
(1) IN GENERAL.—^Notwithstanding any other provision of 
law, funds available under section 3134 or part A of title 
VI of the Elementary and Secondary Education Act of 1965, 
or under section 231 of the Library Services and Technology 
Act, may be used for the purchase or acquisition of technology 
protection measures that are necessary to meet the require-
ments of this title and the amendments made by this title. 
No other sources of funds for the purchase or acquisition of 
such measures are authorized by this title, or the amendments 
made by this title. 
(2) TECHNOLOGY PROTECTION MEASURE DEFINED.—In this 
section, the term "technology protection measure" has the 
meaning given that term in section 1703. 
(h) EFFECTIVE DATE.—^The amendments made by this section 
shall take effect 120 days after the date of the enactment of this 
Act. 
Subtitle C—Neighborhood Children's 
Internet Protection 
SEC. 1731. SHORT TITLE. 
This subtitle may be cited as the "Neighborhood Children's 
Internet Protection Act". 
SEC, 1732. INTERNET SAFETY POLICY REQUIRED. 
Section 254 of the Communications Act of 1934 (47 U.S.C. 
254) is amended by adding at the end the following: 
"(1) INTERNET SAFETY POLICY REQUIREMENT FOR SCHOOLS AND 
LIBRARIES.— 
"(1) IN GENERAL.—In carrying out its responsibilities under 
subsection (h), each school or library to which subsection (h) 
applies shall— 
"(A) adopt and implement an Internet safety policy 
that addresses— 
PUBLIC LAW 106-554—APPENDIX D 
114 STAT. 2763A-351 
"(i) access by minors to inappropriate matter on 
the Internet and World Wide Web; 
"(ii) the safety and security of minors when using 
electronic mail, chat rooms, and other forms of direct 
electronic communications; 
"(iii) unauthorized 
access, including so-c£Jled 
'hacking*, and other unlawful activities by minors 
online; 
"(iv) unauthorized disclosure, use, and dissemina-
tion of personal identification information regarding 
minors; and 
"(v) measures designed to restrict minors' access 
to materials harmful to minors; and 
"(B) provide reasonable public notice and hold at least 
one public hearing or meeting to address the proposed 
Internet safety policy. 
"(2) LOCAL DETERMINATION OF CONTENT.—^A determination 
regarding what matter is inappropriate for minors shall be 
made by the school board, loc^ educational agency, library, 
or other authority responsible for making the determination. 
No agency or instrumentality of the United States Government 
may— 
"(A) establish criteria for making such determination; 
"(B) review the determination made by the certifying 
school, school board, local educational agency, library, or 
other authority; or 
"(C) consider the criteria employed by the certifying 
school, school board, local educational agency, library, or 
other 
authority in the administration of subsection 
(h)(1)(B). 
"(3) AVAILABILITY FOR REVIEW.—Each Internet safety policy 
adopted under this subsection shall be made available to the 
Commission, upon request of the Commission, by the school, 
school board, local educational agency, library, or other author-
ity responsible for adopting such Internet safety policy for 
purposes of the review of such Internet safety policy by the 
Commission. 
"(4) EFFECTIVE DATE.—^This subsection shall apply with 
respect to schools and libraries on or after the date that is 
120 days after the date of the enactment of the Children's 
Internet Protection Act.". 
SEC. 1733. IMPLEMENTING REGULATIONS. 
Not later than 120 days after the date of enactment of this 
Act, the Federal Communications Commission shall prescribe regu-
lations for purposes of section 254(1) of the Communications Act 
of 1934, as added by section 1732 of this Act. 
Subtitle D—^Expedited Review 
SEC. 1741. EXPEDITED REVIEW. 
(a) THREE-JUDGE DISTRICT COURT HEARING.—^Notwithstanding 
any other provision of law, any civil action challenging the constitu-
tionality, on its face, of this title or any amendment made by 
this title, or any provision thereof, shall be heard by a district 
114 STAT. 2763A-352 
PUBLIC LAW 106-554—APPENDIX D 
court of three judges convened pursuant to the provisions of section 
2284 of title 28, United States Code. 
(b) APPELLATE REVIEW.—Notwithstanding any other provision 
of law, an interlocutory or final judgment, decree, or order of the 
court of three judges in an action under subsection (a) holding 
this title or an amendment made by this title, or any provision 
thereof, unconstitutional shall be reviewable as a matter of right 
by direct appeal to the Supreme Court. Any such appeal shall 
be filed not more than 20 days after entry of such judgment, 
decree, or order. 
This Act may be cited as the "Miscellaneous Appropriations 
Act, 2001". 
ENDNOTE: Appendixes D-1 and D-2 were added pursuant to the provisions of sections 125 
and 127 of this Appendix (114 Stat. 2763A-229). 
PUBLIC LAW 106-554—APPENDIX D-1 114 STAT. 2763A-353 
APPENDIX D-1—S. 2273 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Black Rock Desert-High Rock 
Canyon Emigrant Trails National Conservation Area Act of 2000". 
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) TTie areas of northwestern Nevada known as the Black 
Rock Desert and High Rock Canyon contain and surround 
the last nationally significant, untouched segments of the his-
toric California emigrant Trails, including wagon ruts, historic 
inscriptions, and a wilderness landscape largely unchanged 
since the days of the pioneers. 
(2) The relative absence of development in the Black Rock 
Desert and high Rock Canyon areas from emigrant times to 
the present day offers a unique opportunity to capture the 
terrain, sights, and conditions of the overland trails as they 
were experienced by the emigrants and to make available to 
both present and future generations of Americans the oppor-
tunity of experiencing emigrant conditions in an unaltered set-
ting. 
(3) The Black Rock Desert and High Rock Canyon areas 
are unique segments of the Northern Great Basin and contain 
broad representation of the Great Basin's land forms and plant 
and animal species, including golden eagles and other birds 
of prey, sage grouse, mule deer, pronghom antelope, bighorn 
sheep, free roaming horses and burros, threatened fish and 
sensitive plants. 
(4) The Black Rock-High Rock region contains a number 
of cultural and natural resources that have been declared 
eligible for National Historic Landmark and Natural Landmark 
status, including a portion of the 1843-44 John Charles Fre-
mont exploration route, the site of the death of Peter Lassen, 
early military facilities, and examples of early homesteading 
and mining. 
(5) The archeological, paleontological, and geographical 
resources of the Black Rock-High Rock region include numerous 
prehistoric and historic Native American sites, wooly mammoth 
sites, some of the largest natural potholes of North America, 
and a remnant dry Pleistocene lakebed (playa) where the cur-
vature of the Earth may be observed. 
(6) The two large wilderness mosaics that frame the con-
servation area offer exceptional opportunities for solitude and 
serve to protect the integrity of the viewshed of the historic 
emigrant trails. 
114 STAT. 2763A-354 PUBLIC LAW 106-554—APPENDIX D-1 
(7) Public lands in the conservation area have been used 
for domestic livestock grazing for over a century, with resultant 
benefits to community stability and contributions to the local 
and State economies. It has not been demonstrated that 
continuation of this use would be incompatible with appropriate 
protection and sound management of the resource values of 
these Ismds; therefore, it is expected that such grazing will 
continue in accordance with the management plan for the con-
servation area and other applicable laws and regulations. 
(8) The Black Rock Desert playa is a unique natural 
resource that serves as the primary destination for the majority 
of visitors to the conservation area, including visitors associated 
with large-scale permitted events. It is expected that such 
permitted events will continue to be administered in accordance 
with the management plsm for the conservation area and other 
applicable laws and regulations. 
SEC. 3. DEFINITIONS. 
As used in this Act: 
(1) The term "Secretary" means the Secretary of the 
Interior. 
(2) The term "public lands" has the meaning stated in 
section 103(e) of the Federal Land Policy and Management 
Act of 1976 (43 U.S.C. 1702(e)). 
(3) The term "conservation area" means the Black Rock 
Desert-High Rock Canyon Emigrant Trails National Conserva-
tion Area established pursuant to section 4 of this Act. 
SEC. 4. ESTABLISHMENT OF THE CONSERVATION AREA. 
(a) ESTABLISHMENT AND PURPOSES.—In order to conserve, pro-
tect, and enhance for the benefit and enjoyment of present and 
future generations the unique and nationally important historical, 
cultural, paleontological, scenic, scientific, biological, educational, 
wildlife, riparian, wilderness, endangered species, and recreational 
values and resources associated with the Applegate-Lassen and 
Nobles Trails corridors and surrounding areas, there is hereby 
established the Black Rock Desert-High Rock Canyon Emigrant 
Trails National Conservation Area in the State of Nevada. 
(b) AREAS INCLUDED.—^The conservation area shall consist of 
approximately 797,100 acres of public lands as generally depicted 
on the map entitled "Black Rock Desert Emigrant Trail National 
Conservation Area" and dated July 19, 2000. 
(c) MAPS AND LEGAL DESCRIPTION.—^As soon as practicable after 
the date of the enactment of this Act, the Secretary shall submit 
to Congress a map and legal description of the conservation area. 
The map and legal description shall have the same force and 
effect as if included in this Act, except the Secretary may correct 
clerical and typographical errors in such map and legal description. 
Copies of the map and legal description shall be on file and available 
for public inspection in the appropriate offices of the Bureau of 
Land Management. 
SEC. 
5
. 
MANAGEMENT. 
(a) MANAGEMENT.—^The Secretary, acting through the Bureau 
of Land Management, shall manage the conservation area in a 
manner that conserves, protects, and enhances its resources and 
values, including those resources and values specified in subsection 
4(a), in accordance with this Act, the Federal Land Policy and 
PUBLIC LAW 106-554^APPENDIX D-1 114 STAT. 2763A-355 
Management Act of 1976 (43 U.S.C. 1701 et seq.), and other 
applicable provisions of law. 
(b) ACCESS.— 
(1) IN GENERAL.—The Secretary shall maintain adequate 
access for the reasonable use and enjoyment of the conservation 
area. 
(2) PRIVATE LAND.—The Secretary shall provide reasonable 
access to privately owned land or interests in land within 
the boundaries of the conservation area. 
(3) EXISTING PUBLIC ROADS.—The Secretary is authorized 
i to maintain existing public access within the boundaries of 
the conservation area in a manner consistent with the purposes 
for which the conservation area was established. 
(c) USES.— 
(1) IN GENERAL.—The Secretary shall only allow such uses 
of the conservation area as the Secretary finds will further 
the purposes for which the conservation area is established. 
(2) OFF-HIGHWAY VEHICLE USE.—^Except where needed for 
administrative purposes or to respond to an emergency, use 
of motorized vehicles in the conservation area shall be per-
mitted only on roads and trails and in other areas designated 
for use of motorized vehicles as part of the management plan 
prepared pursuant to subsection (e). 
(3) PERMITTED EVENTS.—The Secretary may continue to 
permit large-scale events in defined, low impact areas of the 
Black Rock Desert playa in the conservation area in accordance 
with the management plan prepared pursuant to subsection 
(e). 
(d) HUNTING, TRAPPING, AND FISHING.—Nothing in this Act 
shall be deemed to diminish the jurisdiction of the State of Nevada 
with respect to fish and wildlife management, including regulation 
of hunting and fishing, on public lands within the conservation 
area. 
(e) MANAGEMENT PLAN.—^Within three years following the date 
of enactment of this Act, the Secretary shall develop a comprehen-
sive resource management plan for the long-term protection and 
management of the conservation area. The plan shall be developed 
with full public participation and shall describe the appropriate 
uses and management of the conservation area consistent with 
the provisions of this Act. The plan may incorporate appropriate 
decisions contained in any current management or activity plan 
for the area and may use information developed in previous studies 
of the lands within or adjacent to the conservation area. 
(f) GRAZING.—^Where the Secretary of the Interior currently 
permits livestock grazing in the conservation area, such grazing 
shall be allowed to continue subject to all applicable laws, regula-
tions, and executive orders. 
(g) VISITOR SERVICE FACILITIES.—^The Secretary is authorized 
to establish, in cooperation with other public or private entities 
as the Secretary may deem appropriate, visitor service facilities 
for the purpose of providing information about the historical, cul-
tural, ecological, recreational, and other resources of the conserva-
tion area. 
SEC. 6. WITHDRAWAL. 
Subject to valid existing rights, all Federal lands within the 
conservation area and all lands and interests therein which are 
114 STAT. 2763A-356 PUBLIC LAW 106-554—APPENDIX D-1 
hereafter acquired by the United States are hereby withdrawn 
from all forms of entry, appropriation, or disposal under the public 
land laws, from location, entry, and patent under the mining laws, 
from operation of the mineral leasing and geothermal leasing laws 
and from the minerals materials laws and all amendments thereto. 
SEC. 7. NO BUFFER ZONES. 
The Congress does not intend for the establishment of the 
conservation area to lead to the creation of protective perimeters 
or buffer zones around the conservation area. The fact that there 
may be activities or uses on lands outside the conservation area 
that would not be permitted in the conservation area shall not 
preclude such activities or uses on such lands up to the boundary 
of the conservation area consistent with other applicable laws. 
SEC. 8. WILDERNESS. 
(a) DESIGNATION.—In furtherance of the purposes of the Wilder-
ness Act of 1964 (16 U.S.C. 1131 et seq.), the following lands 
in the State of Nevada are designated as wilderness, and, therefore, 
as components of the National Wilderness Preservation System: 
(1) Certain lands in the Black Rock Desert Wilderness 
Study Area comprised of approximately 315,700 acres, as gen-
erally depicted on a map entitled "Black Rock Desert Wilder-
ness—Proposed" and dated July 19, 2000, and which shall 
be known as the Black Rock Desert Wilderness. 
(2) Certain lands in the Pahute Peak Wilderness Study 
Area comprised of approximately 57,400 acres, as generally 
depicted on a map entitled "Pahute Peak Wilderness—Pro-
posed" and dated July 19, 2000, and which shall be known 
as the Pahute Peak Wilderness. 
(3) Certain lands in the North Black Rock Range Wilder-
ness Study Area comprised of approximately 30,800 acres, as 
generally depicted on a map entitled "North Black Rock Range 
Wilderness—Proposed" and dated July 19, 2000, and which 
shall be known as the North Black Rock Range Wilderness. 
(4) Certain lands in the East Fork High Rock Canyon 
Wilderness Study Area comprised of approximately 52,800 
acres, as generally depicted on a map entitled "East Fork 
High Rock Canyon Wilderness—Proposed" and dated July 19, 
2000, and which shall be known as the East Fork High Rock 
Canyon Wilderness. 
(5) Certain lands in the High Rock Lake Wilderness Study 
Area comprised of approximately 59,300 acres, as generally 
depicted on a map entitled "High Rock Lake Wilderness— 
Proposed" and dated July 19, 2000, and which shall be known 
as the High Rock Lake Wilderness. 
(6) Certain lands in the Little High Rock Canyon Wilder-
ness Study Area comprised of approximately 48,700 acres, as 
generally depicted on a map entitled "Little High Rock Canyon 
Wilderness—^Proposed" and dated July 19, 2000, and which 
shall be known as the Little High Rock Canyon Wilderness. 
(7) Certain lands in the High Rock Canyon Wilderness 
Study Area and Yellow Rock Canyon Wilderness Study Area 
comprised of approximately 46,600 acres, as generally depicted 
on a map entitled "High Rock Canyon Wilderness—Proposed" 
and dated July 19, 2000, and which shall be known as the 
High Rock Canyon Wilderness. 
PUBLIC LAW 106-554—APPENDIX D-1 114 STAT. 2763A-357 
(8) Certain lands in the Calico Mountains Wilderness Study 
Area comprised of approximately 65,400 acres, as generally 
depicted on a map entitled "Calico Mountains Wilderness— 
Proposed" and dated July 19, 2000, and which shall be known 
as the Calico Mountains Wilderness. 
(9) Certain lands in the South Jackson Mountains Wilder-
ness Study Area comprised of approximately 56,800 acres, as 
generally depicted on a map entitled "South Jackson Mountains 
Wilderness—Proposed" and dated July 19, 2000, and which 
shall be known as the South Jackson Mountains Wilderness. 
(10) Certain lands in the North Jackson Mountains Wilder-
ness Study Area comprised of approximately 24,000 acres, as 
generally depicted on a map entitled "North Jackson Mountains 
Wilderness—Proposed" and dated July 19, 2000, and which 
shall be known as the North Jackson Mountains Wilderness. 
(b) ADMINISTRATION OF WILDERNESS AREAS.—Subject to valid 
existing rights, each wilderness area designated by this Act shall 
be administered by the Secretary in accordance with the provisions 
of the Wilderness Act, except that any reference in such provisions 
to the effective date of the Wilderness Act shall be deemed to 
be a reference to the date of enactment of this Act and any reference 
to the Secretary of Agriculture shall be deemed to be a reference 
to the Secretary of the Interior. 
(c) MAPS AND LEGAL DESCRIPTION.—^As soon as practicable after 
the date of the enactment of this Act, the Secretary shall submit 
to Congress a map and legal description of the wilderness areas 
designated under this Act. The map and legal description shall 
have the same force and effect as if included in this Act, except 
the Secretary may correct clerical and typographical errors in such 
map and legal description. Copies of the map and legal description 
shall be on file and available for public inspection in the appropriate 
offices of the Bureau of Land Management. 
(d) GRAZING.—^Within the wilderness areas designated under 
subsection (a), the grazing of livestock, where established prior 
to the date of enactment of this Act, shall be permitted to continue 
subject to such reasonable regulations, policies, and practices as 
the Secretary deems necessary, as long as such regulations, policies, 
and practices fully conform with and implement the intent of Con-
gress regarding grazing in such areas as such intent is expressed 
in the Wilderness Act and section 101(f) of Public Law 101-628. 
SEC. 9. AUTHORIZATION OF APPROPRIATIONS. 
There is hereby authorized to be appropriated such sums as 
may be necessary to carry out the provisions of this Act. 
PUBLIC LAW 106-554-APPENDIX D-2 
114 STAT. 2763A-359 
APPENDIX D-2—S. 2885 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Jamestown 400th Commemora-
tion Commission Act of 2000". 
SEC. 2. FINDINGS AND PURPOSE. 
(a) FINDINGS.—Congress finds that— 
(1) the founding of the colony at Jamestown, Virginia in 
1607, the first permanent English colony in the New World, 
and the capital of Virginia for 92 years, has major significance 
in the history of the United States; 
(2) the settlement brought people from throughout the 
Atlantic Basin together to form a multicultural society, includ-
ing English, other Europeans, Native Americans, and Africans; 
(3) the economic, political, religious, and social institutions 
that developed during the first 9 decades of the existence of 
Jamestown continue to have profound effects on the United 
States, particularly in English common law and language, cross 
cultural relationships, and economic structure and status; 
(4) the National Park Service, the Association for the 
Preservation of Virginia Antiquities, and the Jamestown-York-
town Foundation of the Commonwealth of Virginia collectively 
own and operate significant resources related to the early his-
tory of Jamestown; and 
(5) in 1996— 
(A) the Commonwealth of Virginia designated the 
Jamestown-Yorktown Foundation as the State agency 
responsible for planning and implementing the Common-
wealth's portion of the commemoration of the 400th 
anniversary of the founding of the Jamestown settlement; 
(B) the Foundation created the Celebration 2007 Steer-
ing Committee, known as the Jamestown 2007 Steering 
Committee; and 
(C) planning for the commemoration beg£in. 
(b) PURPOSE.—^The purpose of this Act is to establish the James-
town 400th Commemoration Commission to— 
(1) ensure a suitable national observance of the Jamestown 
2007 anniversary by complementing the programs and activities 
of the Commonwealth of Virginia; 
(2) cooperate with and assist the programs and activities 
of the State in observance of the Jamestown 2007 anniversary; 
(3) assist in ensuring that Jamestown 2007 observances 
provide an excellent visitor experience and beneficial interaction 
between visitors and the natural and cultural resources of 
the Jamestown sites; 
114 STAT. 2763A-360 PUBLIC LAW 106-554—APPENDIX D-2 
(4) assist in ensuring that the Jamestown 2007 observances 
are inclusive and appropriately recognize the experiences of 
all people present in 17th century Jamestown; 
(5) provide assistance to the development of Jamestown-
related programs and activities; 
(6) facilitate international involvement in the Jamestown 
2007 observances; 
(7) support and facilitate marketing efforts for a commemo-
rative coin, stamp, and related activities for the Jamestown 
2007 observances; and 
(8) assist in the appropriate development of heritage tour-
ism and economic benefits to the United States. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) COMMEMORATION.—^The term "commemoration" means 
the commemoration of the 400th anniversary of the founding 
of the Jamestown settlement. 
(2) COMMISSION.—The term "Commission" means the 
Jamestown 400th Commemoration Commission established by 
section 4(a). 
(3) GOVERNOR.—The term "Governor" means the Governor 
of Virginia. 
(4) SECRETARY.—The term "Secretary" means the Secretary 
of the Interior. 
(5) STATE.—The term "State" means the Commonwealth 
of Virginia, including agencies and entities of the Common-
wealth. 
SEC. 4. JAMESTOWN 400TH COMMEMORATION COMMISSION. 
(a) IN GENERAL.—There is established a commission to be 
known as the "Jamestown 400th Commemoration Commission". 
(b) MEMBERSHIP.— 
(1) IN GENERAL.—^The Commission shall be composed of 
15 members, of whom— 
(A) 4 members shall be appointed by the Secretary, 
taking into consideration the recommendations of the 
Chairperson of the Jamestown 2007 Steering Committee; 
(B) 4 members shall be appointed by the Secretary, 
taking into consideration the recommendations of the Gov-
ernor; 
(C) 2 members shall be employees of the National 
Park Service, of which— 
(i) 1 shall be the Director of the National Park 
Service (or a designee); and 
(ii) 1 shall be an employee of the National Park 
Service having experience relevant to the commemora-
tion, to be appointed by the Secretary; and 
(D) 5 members shall be individuals that have an 
interest in, support for, and expertise appropriate to, the 
commemoration, to be appointed by the Secretary. 
(2) TERM; VACANCIES.— 
(A) TERM.—^A member of the Commission shall be 
appointed for the life of the Commission. 
(B) VACANCIES.— 
(i) IN GENERAL.—^A vacancy on the Commission 
shall be filled in the same manner in which the original 
appointment was made. 
PUBLIC LAW 106-554—APPENDIX D-2 114 STAT. 2763A-361 
(ii) PARTIAL TERM.—^A member appointed to fill 
a vacancy on the Commission shall serve for the 
remainder of the term for which the predecessor of 
the member was appointed. 
(3) MEETINGS.— 
(A) IN GENERAL.—^The Commission shall meet— 
(i) at least twice each year; or 
(ii) at the call of the Chairperson or the majority 
of the members of the Commission. 
(B) INITIAL MEETING.—Not later than 30 days after 
the date on which all members of the Commission have 
been appointed, the Commission shall hold the initial meet-
ing of the Commission. 
(4) VOTING.— 
(A) IN GENERAL.—The Commission shall act only on 
an affirmative vote of a majority of the members of the 
Commission. 
(B) QUORUM.—^A majority of the Commission shall con-
stitute a quorum. 
(5) CHAIRPERSON.—The Secretary shall appoint a Chair-
person of the Commission, taking into consideration any rec-
ommendations of the Governor. 
(c) DUTIES.— 
(1) IN GENERAL.—The Commission shall— 
(A) plan, develop, and execute programs and activities 
appropriate to commemorate the 400th anniversary of the 
founding of Jamestown; 
(B) generally facilitate Jamestown-related activities 
throughout the United States; 
(C) encourage civic, patriotic, historical, educational, 
religious, economic, and other organizations throughout the 
United States to organize and participate in anniversary 
activities to expand the understanding and appreciation 
of the significance of the founding and early history of 
Jamestown; 
(D) coordinate and facilitate for the public scholarly 
research on, publication about, and interpretation of, 
Jamestown; and 
(E) ensure that the 400th anniversary of Jamestown 
provides a lasting legacy and long-term public benefit by 
assisting in the development of appropriate programs and 
facilities. 
(2) PLANS; REPORTS.— 
(A) STRATEGIC PLAN; ANNUAL PERFORMANCE PLANS.— 
In accordance with the Government Performance and 
Results Act of 1993 (Public Law 103-62; 107 Stat. 285), 
the Commission shall prepare a strategic plan and annual 
performance plans for the activities of the Commission 
carried out under this Act. 
(B) FINAL REPORT.—Not later than September 30, 2008, 
the Commission shall complete a 
final 
report 
that 
contains— 
(i) a summary of the activities of the Commission; 
(ii) a final accounting of funds received and 
expended by the Commission; and 
(iii) the findings and recommendations of the 
Commission. 
114 STAT. 2763A-362 PUBLIC LAW 106-554^APPENDIX D-2 
(d) POWERS OF THE COMMISSION.—The Commission may— 
(1) accept donations and make dispersions of money, per-
sonal services, and real and personal property related to James-
town and of the significance of Jamestown in the history of 
the United States; 
(2) appoint such advisory committees as the Commission 
determines to be necessary to carry out this Act; 
(3) authorize any member or employee of the Commission 
to take any action that the Commission is authorized to take 
by this Act; 
(4) procure supplies, services, and property, and make or 
enter into contracts, leases or other legal agreements, to carry 
out this Act (except that any contracts, leases or other legal 
agreements made or entered into by the Commission shall 
not extend beyond the date of termination of the Commission); 
(5) use the United States mails in the same manner and 
under the same conditions as other Federal agencies; 
(6) subject to approval by the Commission, make grants 
in amounts not to exceed $10,000 to communities and nonprofit 
organizations to develop programs to assist in the commemora-
tion; 
(7) make grants to research and scholarly organizations 
to research, publish, or distribute information relating to the 
early history of Jamestown; and 
(8) provide technical assistance to States, locsJities, and 
nonprofit organizations to further the commemoration. 
(e) COMMISSION PERSONNEL MATTERS.— 
(1) COMPENSATION OF MEMBERS OF THE COMMISSION.— 
(A) IN GENERAL.—Except as provided in subparagraph 
(B), a member of the Commission shall serve without com-
pensation. 
(B) FEDERAL EMPLOYEES.—^A member of the Commis-
sion who is an officer or employee of the Federal Grovem-
ment shall serve without compensation in addition to the 
compensation received for the services of the member as 
an officer or employee of the Federal Government. 
(C) TRAVEL EXPENSES.—^A member of the Commission 
shall be allowed travel expenses, including per diem in 
lieu of subsistence, at rates authorized for an employee 
of an agency under subchapter I of chapter 57 of title 
5, United States Code, while away from the home or regular 
place of business of the member in the performance of 
the duties of the Commission. 
(2) STAFF.— 
(A) IN GENERAL.—The Chairperson of the Commission 
may, without regard to the civil service laws (including 
regulations), appoint and terminate an executive director 
and such other additional personnel as are necessary to 
enable the Commission to perform the duties of the 
Commission. 
(B) 
CONFIRMATION 
OF 
EXECUTIVE 
DIRECTOR.—The 
employment of an executive director shall be subject to 
confirmation by the Commission. 
(3) COMPENSATION.— 
(A) IN GENERAL.—Except as provided in subparagraph 
(B), the Chairperson of the Commission may fix the com-
pensation of the executive director and other personnel 
PUBLIC LAW 106-554-APPENDIX D-2 
114 STAT. 2763A-363 
without regard to the provisions of chapter 51 and sub-
chapter III of chapter 53 of title 5, United States Code, 
relating to classification of positions and General Schedule 
pay rates. 
(B) MAXIMUM RATE OF PAY.—The rate of pay for the 
executive director and other personnel shall not exceed 
the rate payable for level V of the Executive Schedule 
under section 5316 of title 5, United States Code. 
(4) DETAIL OF GOVERNMENT EMPLOYEES.— 
(A) FEDERAL EMPLOYEES.— 
(i) IN GENERAL.—On the request of the Commis-
sion, the head of any Federal agency may detail, on 
a reimbursable or nonreimbursable basis, any of the 
personnel of the agency to the Commission to assist 
the Commission in carrying out the duties of the 
Commission under this Act. 
(ii) CIVIL 
SERVICE STATUS.—The detail of an 
employee under clause (i) shall be without interruption 
or loss of civil service status or privilege. 
(B) STATE EMPLOYEES.—The Commission may— 
(i) accept the services of personnel detailed from 
States (including subdivisions of States); and 
(ii) reimburse States for services of detailed person-
nel. 
(5) VOLUNTEER AND UNCOMPENSATED SERVICES.—Notwith-
standing section 1342 of title 31, United States Code, the 
Commission may accept and use voluntary and uncompensated 
services as the Commission determines necessary. 
(6) SUPPORT SERVICES.—The Director of the National Park 
Service shall provide to the Commission, on a reimbursable 
basis, such administrative support services as the Commission 
may request. 
(f) 
PROCUREMENT OF TEMPORARY AND INTERMITTENT SERV-
ICES.—The Chairperson of the Commission may procure temporary 
and intermittent services in accordance with section 3109(b) of 
title 5, United States Code, at rates for individuals that do not 
exceed the daily equivalent of the annual rate of basic pay pre-
scribed for level V of the Executive Schedule under section 5316 
of that title. 
(g) FACA NONAPPLICABILITY.—Section 14(b) of the Federal 
Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
Commission. 
(h) No EFFECT ON AUTHORITY.—Nothing in this section super-
sedes the authority of the State, the National Park Service, or 
the Association for the Preservation of Virginia Antiquities, concern-
ing the commemoration. 
(i) TERMINATION.—The Commission shall terminate on Decem-
ber 31, 2008. 
SEC. 5. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated such sums as are 
necessary to carry out this Act. 
PUBLIC LAW 106-554^APPENDIX E 
114 STAT. 2763A-365 
APPENDIX E—H.R. 5660 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE,—^This Act may be cited as the "Commodity 
Futures Modernization Act of 2000". 
(b) TABLE OF CONTENTS.—The table of contents of this Act 
is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Purposes. 
TITLE I—COMMODITY FUTURES MODERNIZATION 
Sec. 101. Definitions. 
Sec. 102. Agreements, contracts, and transactions in foreign currency, government 
seciuities, and certain other commodities. 
Sec. 103. Legal certainty for excluded derivative transactions. 
Sec. 104. Excluded electronic trading facilities. 
Sec. 105. Hybrid instruments; swap transactions. 
Sec. 106. Transactions in exempt commodities. 
Sec. 107. Application of commodity futures laws. 
Sec. 108. Protection of the public interest. 
Sec. 109. Prohibited transactions. 
Sec. 110. Designation of boards of trade as contract markets. 
Sec. 111. Derivatives transaction execution facilities. 
Sec. 112. Derivatives clearing. 
Sec. 113. Common provisions applicable to registered entities. 
Sec. 114. Exempt boards of trade. 
Sec. 115. Suspension or revocation of designation as contract market. 
Sec. 116. Authorization of appropriations. 
Sec. 117. Preemption. 
Sec. 118. Predispute resolution agreements for institutional customers. 
Sec. 119. Consideration of costs and benefits and antitrust laws. 
Sec. 120. Contract enforcement between eligible counterparties. 
Sec. 121. Special procedures to encourage and faciUtate bona fide hedging by agri-
cultural producers. 
Sec. 122. Rule of construction. 
Sec. 123. Technical and conforming amendments. 
Sec. 124. Privacy. 
Sec. 125. Report to Congress. 
Sec. 126. International activities of the Commodity Futiires Trading Commission. 
TITLE II—COORDINATED REGULATION OF SECURITY FUTURES PRODUCTS 
Subtitle A—Securities Law Amendments 
Sec. 201. Definitions under the Securities Exchange Act of 1934. 
Sec. 202. Regulatory relief for markets trading security futures products. 
Sec. 203. Regulatory relief for intermediaries trading security futures products. 
Sec. 204. Special provisions for interagency cooperation. 
Sec. 205. Maintenance of market integrity for security fixtures products. 
Sec. 206. Special provisions for the trading of security futures products. 
Sec. 207. Clearance and settlement. 
Sec. 208. Amendments relating to registration and disclosure issues under the Se-
curities Act of 1933 and the Securities Exchange Act of 1934. 
Sec. 209. Amendments to the Investment Company Act of 1940 and the Investment 
Advisers Act of 1940. 
Sec. 210. Preemption of State laws. 
Subtitle B—^Amendments to the Commodity Exchange Act 
Sec. 251. Jurisdiction of Securities and Exchange Commission; other provisions. 
114 STAT. 2763A-366 
PUBLIC LAW 106-554—APPENDIX E 
Sec. 252. Application of the Commodity Exchange Act to national securities ex-
changes and national securities associations that trade security futures. 
Sec. 253. Notification of investigations and enforcement actions. 
TITLE III—LEGAL CERTAINTY FOR SWAP AGREEMENTS 
Sec. 301. Swap agreement. 
Sec. 302. Amendments to the Securities Act of 1933. 
Sec. 303. Amendments to the Securities Exchange Act of 1934. 
Sec. 304. Savings provision. 
TITLE IV—REGULATORY RESPONSIBILITY FOR BANK PRODUCTS 
Sec. 401. Short title. 
Sec. 402. Definitions. 
Sec. 403. Exclusion of identified banking products commonly offered on or before 
December 5, 2000. 
Sec. 404. Exclusion of certain identified banking products offered by banks after 
December 5, 2000. 
Sec. 405. Exclusion of certain other identified banking products. 
Sec. 406. Administration of the predominance test. 
Sec. 407. Exclusion of covered swap agreements. 
Sec. 408. Contract enforcement. 
SEC. 2. PURPOSES. 
The purposes of this Act are— 
(1) to reauthorize the appropriation for the Commodity 
Futures Trading Commission; 
(2) to streamhne and eUminate unnecessary regulation for 
the commodity futures exchanges and other entities regulated 
under the Commodity Exchange Act; 
(3) to transform the role of the Commodity Futures Trading 
Commission to oversight of the futures markets; 
(4) to provide a statutory and regulatory framework for 
allowing the trading of futures on securities; 
(5) to clarify the jurisdiction of the Commodity Futures 
Trading Commission over certain retail foreign exchange trans-
actions and bucket shops that may not be otherwise regulated; 
(6) to promote innovation for futures and derivatives and 
to reduce systemic risk by enhancing legal certainty in the 
markets for certain futures and derivatives transactions; 
(7) to reduce systemic risk and provide greater stability 
to markets during times of market disorder by allowing the 
clearing of trsinsactions in over-the-counter derivatives through 
appropriately regulated clearing organizations; and 
(8) to enhance the competitive position of United States 
financial institutions and financial markets. 
TITLE I—COMMODITY FUTURES 
MODERNIZATION 
SEC. 101. DEFINITIONS. 
Section la of the Commodity Exchange Act (7 U.S.C. la) is 
amended— 
(1) by redesignating paragraphs (1) through (7), (8) through 
(12), (13) through (15), and (16) as paragraphs (2) through 
(8), (16) through (20), (22) through (24), and (28), respectively; 
(2) by inserting before paragraph (2) (as redesignated by 
paragraph (1)) the following: 
"(1) ALTERNATIVE TRADING SYSTEM.—^The term 'alternative 
trading system' means an organization, association, or group 
of persons that— 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-367 
"(A) is registered as a broker or dealer pursuant to 
section 15(b) of the Securities Exchange Act of 1934 (except 
paragraph (11) thereof); 
"(B) performs the functions commonly performed by 
an exchange (as defined in section 3(a)(1) of the Securities 
Exchange Act of 1934); 
"(C) does not— 
"(i) set rules governing the conduct of subscribers 
other than the conduct of such subscribers' trading 
on the alternative trading system; or 
"(ii) discipline subscribers other than by exclusion 
from trading; and 
"(D) is exempt from the definition of the term 
'exchange' under such section 3(a)(1) by rule or regulation 
of the Securities and Exchange Commission on terms that 
require compliance with regulations of its trading func-
tions."; 
(3) by striking paragraph (2) (as redesignated by paragraph 
(1)) and inserting the following: 
"(2) BOARD OF TRADE.—^The term 'board of trade' means 
any organized exchange or other trading facility."; 
(4) by inserting after paragraph (8) (as redesignated by 
paragraph (1)) the following: 
"(9) DERIVATIVES CLEARING ORGANIZATION.— 
"(A) IN GENERAL.—The term 'derivatives clearing 
organization' means a clearinghouse, clearing association, 
clearing corporation, or similar entity, facility, system, or 
organization that, with respect to an agreement, contract, 
or transaction— 
"(i) enables each party to the agreement, contract, 
or transaction to substitute, through novation or other-
wise, the credit of the derivatives clearing organization 
for the credit of the parties; 
"(ii) arranges or provides, on a multilateral basis, 
for the settlement or netting of obligations resulting 
from 
such agreements, contracts, or transactions 
executed by participants in the derivatives clearing 
organization; or 
"(iii) otherwise provides clearing services or 
arrangements that mutualize or transfer 
among 
participants in the derivatives clearing organization 
the credit risk arising from such agreements, contracts, 
or transactions executed by the participants. 
"(B) EXCLUSIONS.—^The term 'derivatives 
clearing 
organization' does not include an entity, facility, system, 
or organization solely because it arranges or provides for— 
"(i) settlement, netting, or novation of obligations 
resulting from agreements, contracts, or transactions, 
on a bilateral basis and without a central counterparty; 
"(ii) settlement or netting of cash payments 
through an interbank payment system; or 
"(iii) settlement, netting, or novation of obligations 
resulting from a sale of a commodity in a transaction 
in the spot market for the commodity. 
"(10) ELECTRONIC TRADING FACILITY.—The term 'electronic 
trading facility' means a trading facility that— 
114 STAT. 2763A-368 
PUBLIC LAW 106-554—APPENDIX E 
"(A) operates by means of an electronic or telecommuni-
cations network; and 
"(B) maintains an automated audit trail of bids, offers, 
and the matching of orders or the execution of transactions 
on the facility. 
"(11) ELIGIBLE COMMERCIAL ENTITY.—The term 'eligible 
commercial entity' means, with respect to an agreement, con-
tract or transaction in a commodity— 
"(A) an eligible contract participant described in clause 
(i), (ii), (v), (vii), (viii), or (ix) of paragraph (12)(A) that, 
in connection with its business— 
"(i) has a demonstrable ability, directly or through 
separate contractual arrangements, to make or take 
delivery of the underlying commodity; 
"(ii) incurs risks, in addition to price risk, related 
to the commodity; or 
"(iii) is a dealer that regularly provides risk 
management or hedging services to, or engages in mar-
ket-making activities with, the foregoing 
entities 
involving transactions to purchase or sell the commod-
ity or derivative agreements, contracts, or transactions 
in the commodity; 
"(B) an eligible contract participant, other than a natu-
ral person or an instrumentality, department, or agency 
of a State or local governmental entity, that— 
"(i) regularly enters into transactions to purchase 
or sell the commodity or derivative agreements, con-
tracts, or transactions in the commodity; and 
"(ii) either— 
"(I) in the case of a collective investment 
vehicle whose participants include persons other 
than— 
"(aa) qualified eligible persons, as defined 
in Commission rule 4.7(a) (17 CFR 4.7(a)); 
"(bb) accredited investors, as defined in 
Regulation D of the Securities and Exchange 
Commission imder the Securities Act of 1933 
(17 CFR 230.501(a)), with total assets of 
$2,000,000; or 
"(cc) qualified purchasers, as defined in 
section 2(a)(51)(A) of the Investment Company 
Act of 1940; 
in each case as in effect on the date of the enact-
ment of the Commodity Futures Modernization Act 
of 2000, has, or is one of a group of vehicles under 
common control or management having in the 
aggregate, $1,000,000,000 in total assets; or 
"(II) in the case of other persons, has, or is 
one of a group of persons under common control 
or 
management 
having 
in 
the 
aggregate, 
$100,000,000 in total assets; or 
"(C) such other persons as the Commission shall deter-
mine appropriate and shall designate by rule, regulation, 
or order. 
"(12) ELIGIBLE CONTRACT PARTICIPANT.—The term 'eligible 
contract participant' means— 
"(A) acting for its own account— 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-369 
"(i) a financial institution; 
"(ii) an insurance company that is regulated by 
a State, or that is regulated by a foreign government 
and is subject to comparable regulation as determined 
by the Commission, including a regulated subsidiary 
or affiliate of such an insurance company; 
"(iii) an investment company subject to regulation 
under the Investment Company Act of 1940 (15 U.S.C. 
80a-l et seq.) or a foreign person performing a similar 
role or function subject as such to foreign regulation 
(regardless of whether each investor in the investment 
company or the foreign person is itself an eligible con-
tract participant); 
"(iv) a commodity pool that— 
"(I) has total assets exceeding $5,000,000; and 
"(II) is formed and operated by a person sub-
ject to regulation under this Act or a foreign person 
performing a similar role or function subject as 
such to foreign regulation (regardless of whether 
each investor in the commodity pool or the foreign 
person is itself an eligible contract participant); 
"(v) a corporation, partnership, proprietorship, 
organization, trust, or other entity— 
"(I) 
that 
has 
total 
assets 
exceeding 
$10,000,000; 
"(II) the obligations of which under an agree-
ment, contract, or transaction are guaranteed or 
otherwise supported by a letter of credit or 
keepwell, support, or other agreement by an entity 
described in subclause (I), in clause (i), (ii), (iii), 
(iv), or (vii), or in subparagraph (C); or 
"(III) that— 
"(aa) 
has 
a 
net 
worth 
exceeding 
$1,000,000; and 
"(bb) enters into an agreement, contract, 
or trsinsaction in connection with the conduct 
of the entity's business or to manage the risk 
associated with an asset or liability owned 
or incurred or reasonably likely to be owned 
or incurred by the entity in the conduct of 
the entity's business; 
"(vi) an employee benefit plan subject to the 
Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1001 et seq.), a governmental employee benefit 
plan, or a foreign person performing a similar role 
or function subject as such to foreign regulation— 
"(I) that has total assets exceeding $5,000,000; 
or 
"(II) the investment decisions of which are 
made by— 
"(aa) an investment adviser or commodity 
trading advisor subject to regulation under the 
Investment Advisers Act of 1940 (15 U.S.C. 
80b-1 et seq.) or this Act; 
"(bb) a foreign person performing a similar 
role or function subject as such to foreign regu-
lation; 
114 STAT. 2763A-370 
PUBLIC LAW 106-554—APPENDIX E 
"(cc) a financial institution; or 
"(dd) an insurance company described in 
clause (ii), or a regulated subsidiary or affiliate 
of such an insurance company; 
"(vii)(I) a governmental entity (including the 
United States, a State, or a foreign government) or 
political subdivision of a governmental entity; 
"(II) a multinational or supranational government 
entity; or 
"(III) an instrumentality, agency, or department 
of an entity described in subclause (I) or (II); 
except that such term does not include an entity, 
instrumentality, agency, or department referred to in 
subclause (I) or (III) of this clause unless (aa) the 
entity, instrumentality, agency, or department is a per-
son described in clause (i), (ii), or (iii) of section 
la(ll)(A); (bb) the entity, instrumentality, agency, or 
department owns and invests on a discretionary basis 
$25,000,000 or more in investments; or (cc) the agree-
ment, contract, or transaction is offered by, and entered 
into with, an entity that is listed in any of subclauses 
(I) through (VI) of section 2(c)(2)(B)(ii); 
"(viii)(I) a broker or dealer subject to regulation 
under the Securities Exchange Act of 1934 (15 U.S.C. 
78a et seq.) or a foreign person performing a similar 
role or function subject as such to foreign regulation, 
except that, if the broker or dealer or foreign person 
is a natural person or proprietorship, the broker or 
dealer or foreign person shall not be considered to 
be an eligible contract participant unless the broker 
or dealer or foreign person also meets the requirements 
of clause (v) or (xi); 
"(II) an associated person of a registered broker 
or dealer concerning the financial or securities activi-
ties of which the registered person makes and keeps 
records under section 15C(b) or 17(h) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78o-5(b), 78q(h)); 
"(III) an investment bank holding company (as 
defined in section 17(i) of the Securities Exchange Act 
of 1934 (15 U.S.C. 78q(i)); 
"(ix) a futures commission merchant subject to 
regulation under this Act or a foreign person perform-
ing a similar role or function subject as such to foreign 
regulation, except that, if the futures commission mer-
chant or foreign person is a natural person or 
proprietorship, the futures commission merchant or 
foreign person shall not be considered to be an eligible 
contract participant unless the futures commission 
merchant or foreign person also meets the require-
ments of clause (v) or (xi); 
"(x) a floor broker or floor trader subject to regula-
tion under this Act in connection with any transaction 
that takes place on or through the facilities of a reg-
istered entity or an exempt board of trade, or any 
affiliate thereof, on which such person regularly trades; 
or 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-371 
"(xi) an individual who has total assets in an 
amount in excess of— 
"(I) $10,000,000; or 
"(II) $5,000,000 and who enters into the agree-
ment, contract, or transaction in order to manage 
the risk associated with an asset owned or liability 
incurred, or reasonably likely to be owned or 
incurred, by the individual; 
"(B)(i) a person described in clause (i), (ii), (iv), (v), 
(viii), (ix), or (x) of subparagraph (A) or in subparagraph 
(C), acting as broker or performing an equivalent agency 
function on behalf of another person described in subpara-
graph (A) or (C); or 
"(ii) an investment adviser subject to regulation under 
the Investment Advisers Act of 1940, a commodity trading 
advisor subject to regulation under this Act, a foreign per-
son performing a similar role or function subject as such 
to foreign regulation, or a person described in clause (i), 
(ii), (iv), (v), (viii), (ix), or (x) of subparagraph (A) or in 
subparagraph (C), in any such case acting as investment 
manager or fiduciary (but excluding a person acting as 
broker or performing an equivalent agency function) for 
another person described in subparagraph (A) or (C) and 
who is authorized by such person to commit such person 
to the transaction; or 
"(C) any other person that the Commission determines 
to be eligible in light of the financial or other qualifications 
of the person. 
"(13) EXCLUDED COMMODITY.—The term 'excluded commod-
ity' means— 
"(i) an interest rate, exchange rate, currency, secu-
rity, security index, credit risk or measure, debt or 
equity instrument, index or measure of inflation, or 
other macroeconomic index or measure; 
"(ii) any other rate, differential, index, or measure 
of economic or commercial risk, return, or value that 
is— 
"(I) not based in substantial part on the value 
of a narrow group of commodities not described 
in clause (i); or 
"(II) based solely on one or more commodities 
that have no cash market; 
"(iii) any economic or commercial index based on 
prices, rates, values, or levels that are not within the 
control of any party to the relevant contract, agree-
ment, or transaction; or 
"(iv) an occurrence, extent of an occurrence, or 
contingency (other than a change in the price, rate, 
value, or level of a commodity not described in clause 
(i)) that is— 
"(I) beyond the control of the parties to the 
relevant contract, agreement, or transaction; and 
"(II) associated with a financial, commercial, 
or economic consequence. 
"(14) EXEMPT COMMODITY.—The term 'exempt commodity' 
means a commodity that is not an excluded commodity or 
an agricultural commodity. 
114 STAT. 2763A-372 
PUBLIC LAW 106-554—APPENDIX E 
"(15) FINANCIAL INSTITUTION.—The term 'financial institu-
tion' means— 
"(A) a corporation operating under the fifth undesig-
nated paragraph of section 25 of the Federal Reserve Act 
(12 U.S.C. 603), commonly known as 'an agreement corpora-
tion'; 
"(B) a corporation organized under section 25A of the 
Federal Reserve Act (12 U.S.C. 611 et seq.), commonly 
known as an 'Edge Act corporation'; 
"(C) an institution that is regulated by the Farm Credit 
Administration; 
"(D) a Federal credit union or State credit union (as 
defined in section 101 of the Federal Credit Union Act 
(12 U.S.C. 1752)); 
"(E) a depository institution (as defined in section 3 
of the Federal Deposit Insurance Act (12 U.S.C. 1813)); 
"(F) a foreign bank or a branch or agency of a foreign 
bank (each as defined in section 1(b) of the International 
Banking Act of 1978 (12 U.S.C. 3101(b))); 
"(G) any financial holding company (as defined in sec-
tion 2 of the Bank Holding Company Act of 1956); 
"(H) a trust company; or 
"(I) a similarly regulated subsidiary or affiliate of an 
entity described in any of subparagraphs (A) through (H)."; 
(5) by inserting after paragraph (20) (as redesignated by 
paragraph (1)) the following: 
"(21) HYBRID INSTRUMENT.—The term 'hybrid instrument' 
means a security having one or more payments indexed to 
the value, level, or rate of, or providing for the delivery of, 
one or more commodities."; 
(6) by striking paragraph (24) (as redesignated by para-
graph (1)) and inserting the following: 
"(24) 
MEMBER OF A CONTRACT MARKET; MEMBER OF A 
DERIVATIVES TRANSACTION EXECUTION FACILITY.—The 
term 
'member* means, with respect to a contract market or deriva-
tives transaction execution facility, an individual, association, 
partnership, corporation, or trust— 
"(A) owning or holding membership in, or admitted 
to membership representation on, the contract market or 
derivatives transaction execution facility; or 
"(B) having trading privileges on the contract market 
or derivatives transaction execution facility. 
"(25) NARROW-BASED SECURITY INDEX.— 
"(A) The term 'narrow-based security index' means an 
index— 
"(i) that has 9 or fewer component securities; 
"(ii) in which a component security comprises more 
than 30 percent of the index's weighting; 
"(iii) in which the five highest weighted component 
securities in the aggregate comprise more than 60 per-
cent of the index's weighting; or 
"(iv) in which the lowest weighted component secu-
rities comprising, in the aggregate, 25 percent of the 
index's weighting have an aggregate dollar value of 
average daily trading volume of less than $50,000,000 
(or in the case of an index with 15 or more component 
securities, $30,000,000), except that if there are two 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-373 
or more securities with equal weighting that could 
be included in the calculation of the lowest weighted 
component securities comprising, in the aggregate, 25 
percent of the index's weighting, such securities shall 
be ranked from lowest to highest dollar value of aver-
age daily trading volume and shall be included in 
the calculation based on their ranking starting with 
the lowest ranked security. 
"(B) Notwithstanding subparagraph (A), an index is 
not a narrow-based security index if— 
"(i)(I) it has at least 9 component securities; 
"(II) no component security comprises more than 
30 percent of the index's weighting; and 
"(III) each component security is— 
"(aa) registered pursuant to section 12 of the 
Securities Exchange Act of 1934; 
"(bb) one of 750 securities with the largest 
market capitalization; and 
"(cc) one of 675 securities with the largest 
dollar value of average daily trading volume; 
"(ii) a board of trade was designated as a contract 
market by the Commodity Futures Trading Commis-
sion with respect to a contract of sale for future deliv-
ery on the index, before the date of the enactment 
of the Commodity Futures Modernization Act of 2000; 
"(iii)(I) a contract of sale for future delivery on 
the index traded on a designated contract market or 
registered derivatives transaction execution facility for 
at least 30 days as a contract of sale for future delivery 
on an index that was not a narrow-based security 
index; and 
"(II) it has been a narrow-based security index 
for no more than 45 business days over 3 consecutive 
calendar months; 
"(iv) a contract of sale for future delivery on the 
index is traded on or subject to the rules of a foreign 
board of trade and meets such requirements as are 
jointly established by rule or regulation by the Commis-
sion and the Securities and Exchange Commission; 
"(v) no more than 18 months have passed since 
the date of the enactment of the Commodity Futures 
Modernization Act of 2000 and— 
"(I) it is traded on or subject to the rules 
of a foreign board of trade; 
"(II) the offer and sale in the United States 
of a contract of sale for future delivery on the 
index was authorized before the date of the enact-
ment of the Commodity Futures Modernization Act 
of 2000; and 
"(III) the conditions of such authorization con-
tinue to be met; or 
"(vi) a contract of sale for future delivery on the 
index is traded on or subject to the rules of a board 
of trade and meets such requirements as are jointly 
established by rule, regulation, or order by the 
Commission and the Securities and Exchange Commis-
sion. 
114 STAT. 2763A-374 
PUBLIC LAW 106-554—APPENDIX E 
"(C) Within 1 year after the date of the enactment 
of the Commodity Futures Modernization Act of 2000, the 
Commission and the Securities and Exchange Commission 
jointly shall adopt rules or regulations that set forth the 
requirements under subparagraph (B)(iv). 
"(D) An index that is a narrow-based security index 
solely because it was a narrow-based security index for 
more than 45 business days over 3 consecutive calendar 
months pursuant to clause (iii) of subparagraph (B) shall 
not be a narrow-based security index for the 3 following 
calendar months. 
"(E) For purposes of subparagraphs (A) and (B)— 
"(i) the dollar value of average daily trading vol-
ume and the market capitalization shall be calculated 
as of the preceding 6 full calendar months; and 
"(ii) the Commission and the Securities and 
Exchange Commission shall, by rule or regulation, 
jointly specify the method to be used to determine 
market capitalization and dollar value of average daily 
trading volume. 
"(26) OPTION.—The term 'option' means an agreement, con-
tract, or transaction that is of the character of, or is commonly 
known to the trade as, an 'option', 'privilege', 'indemnity', 'bid', 
'offer', 'put', 'call', 'advance guaranty', or 'decline guaranty'. 
"(27) 
ORGANIZED 
EXCHANGE.—The 
term 
'organized 
exchange' means a trading facility that— 
"(A) permits trading— 
"(i) by or on behalf of a person that is not an 
eligible contract participant; or 
"(ii) by persons other than on a principal-to-prin-
cipal Ijasis; or 
"(B) has adopted (directly or through another non-
governmental entity) rules that— 
"(i) govern the conduct of participants, other than 
rules that govern the submission of orders or execution 
of transactions on the trading facility; and 
"(ii) include disciplinary sanctions other than the 
exclusion of participants from trading."; and 
(7) by adding at the end the following: 
"(29) REGISTERED ENTITY.—^The term 'registered entity' 
means— 
"(A) a board of trade designated as a contract market 
under section 5; 
"(B) a derivatives transaction execution facility reg-
istered imder section 5a; 
"(C) a derivatives clearing organization registered 
under section 5b; and 
"(D) a board of trade designated as a contract market 
under section 5f. 
"(30) SECURITY.—The term 'security' means a security as 
defined in section 2(a)(1) of the Securities Act of 1933 (15 
U.S.C. 77b(a)(l)) or section 3(a)(10) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78c(a)(10)). 
"(31) SECURITY FUTURE.—The term 'security future' means 
a contract of sale for future delivery of a single security or 
of a narrow-based security index, including any interest therein 
or based on the value thereof, except an exempted security 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-375 
under section 3(a)(12) of the Securities Exchange Act of 1934 
as in effect on the date of the enactment of the Futures Trading 
Act of 1982 (other than any municipal security as defined 
in section 3(a)(29) of the Securities Exchange Act of 1934 as 
in effect on the date of the enactment of the Futures Trading 
Act of 1982). The term 'security future' does not include any 
agreement, contract, or transaction excluded from this Act 
under section 2(c), 2(d), 2(f), or 2(g) of this Act (as in effect 
on the date of the enactment of the Commodity Futures Mod-
ernization Act of 2000) or title IV of the Commodity Futures 
Modernization Act of 2000. 
"(32) SECURITY FUTURES PRODUCT.—The term 'security 
futures product' means a security future or any put, call, strad-
dle, option, or privilege on any security future. 
"(33) TRADING FACILITY.— 
"(A) IN GENERAL.—The term 'trading facility' means 
a person or group of persons that constitutes, maintains, 
or provides a physical or electronic facility or system in 
which multiple participants have the ability to execute 
or trade agreements, contracts, or transactions by accepting 
bids and offers made by other participants that are open 
to multiple participants in the facility or system. 
"(B) EXCLUSIONS.—^The term 'trading facility' does not 
include— 
"(i) a person or group of persons solely because 
the person or group of persons constitutes, maintains, 
or provides an electronic facility or system that enables 
participants to negotiate the terms of and enter into 
bilateral transactions as a result of communications 
exchanged by the parties and not from interaction 
of multiple bids and multiple offers within a predeter-
mined, nondiscretionary automated trade matching 
and execution algorithm; 
"(ii) a government securities dealer or government 
securities broker, to the extent that the dealer or 
broker executes or trades agreements, contracts, or 
transactions in government securities, or assists per-
sons in communicating about, negotiating, entering 
into, executing, or trading an agreement, contract, or 
transaction in government securities (as the terms 
'government securities dealer', 'government securities 
broker', and 'government securities' are defined in sec-
tion 3(a) of the Securities Exchange Act of 1934 (15 
U.S.C. 78c(a))); or 
"(iii) facilities on which bids and offers, and accept-
ances of bids and offers effected on the facility, are 
not binding. 
Any person, group of persons, dealer, broker, or facility 
described in clause (i) or (ii) is excluded from the meaning 
of the term 'trading facility' for the purposes of this Act 
without any prior specific approval, certification, or other 
action by the Commission. 
"(C) SPECIAL RULE.—^A person or group of persons that 
would not otherwise constitute a trading facility shall not 
be considered to be a trading facility solely as a result 
of the submission to a derivatives clearing organization 
114 STAT. 2763A-376 
PUBLIC LAW 106-554—APPENDIX E 
of transactions executed on or through the person or group 
of persons.". 
SEC. 102. AGREEMENTS, CONTRACTS, AND TRANSACTIONS IN FOREIGN 
CURRENCY, GOVERNMENT SECURITIES, AND CERTAIN 
OTHER COMMODITIES. 
Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 
3, 4, 4a) is amended by adding at the end the following: 
"(c) AGREEMENTS, CONTRACTS, AND TRANSACTIONS IN FOREIGN 
CURRENCY, 
GOVERNMENT 
SECURITIES, 
AND 
CERTAIN 
OTHER 
COMMODITIES.— 
"(1) IN GENERAL.—Except as provided in paragraph (2), 
nothing in this Act (other than section 5a (to the extent provided 
in section 5a(g)), 5b, 5d, or 12(e)(2)(B)) governs or applies 
to an agreement, contract, or transaction in— 
"(A) foreign currency; 
"(B) government securities; 
"(C) security warrants; 
"(D) security rights; 
"(E) resales of installment loan contracts; 
"(F) repurchase transactions in an excluded commodity; 
or 
"(G) mortgages or mortgage purchase commitments. 
"(2) COMMISSION JURISDICTION.— 
"(A) 
AGREEMENTS, 
CONTRACTS, 
AND 
TRANSACTIONS 
TRADED ON AN ORGANIZED EXCHANGE,—This Act 
applies 
to, and the Commission shall have jurisdiction over, an 
agreement, contract, or transaction described in paragraph 
(1) that is— 
"(i) a contract of sale of a commodity for future 
delivery (or an option on such a contract), or an option 
on a commodity (other than foreign currency or a secu-
rity or a group or index of securities), that is executed 
or traded on an organized exchange; or 
"(ii) an option on foreign currency executed or 
traded on an organized exchange that is not a national 
securities exchange registered pursuant to section 6(a) 
of the Securities Exchange Act of 1934. 
"(B) AGREEMENTS, CONTRACTS, AND TRANSACTIONS IN 
RETAIL FOREIGN CURRENCY.—^This Act applies to, and the 
Commission shall have jurisdiction over, an agreement, 
contract, or transaction in foreign currency that— 
"(i) is a contract of sale of a commodity for future 
delivery (or an option on such a contract) or an option 
(other than an option executed or traded on a national 
securities exchange registered pursuant to section 6(a) 
of the Securities Exchange Act of 1934); and 
"(ii) is offered to, or entered into with, a person 
that is not an eligible contract participant, unless the 
counterparty, 
or the person offering 
to be the 
counterparty, of the person is— 
"(I) a financial institution; 
"(II) a broker or dealer registered under sec-
tion 15(b) or 15C of the Securities Exchsinge Act 
of 1934 (15 U.S.C. 78o(b), 78o-5) or a futures 
commission merchant registered under this Act; 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-377 
"(III) an associated person of a broker or dealer 
registered under section 15(b) or 15C of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78o(b), 78o-
5), or an affiHated person of a futures commission 
merchant registered under this Act, concerning the 
financial or securities activities of which the reg-
istered person makes and keeps records under sec-
tion 15C(b) or 17(h) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78o-5(b). 78q(h)) or section 
4f(c)(2)(B)ofthisAct; 
"(IV) an insurance company described in sec-
tion la(12)(A)(ii) of this Act, or a regulated subsidi-
ary or affiliate of such an insurance company; 
"(V) a financial holding company (as defined 
in section 2 of the Bank Holding Company Act 
of 1956); or 
"(VI) an investment bank holding company (as 
defined in section 17(i) of the Securities Exchange 
Act of 1934). 
"(C) Notwithstanding subclauses (II) and (III) of 
subparagraph (B)(ii), agreements, contracts, or transactions 
described in subparagraph (B) shall be subject to sections 
4b, 4c(b), 6(c) and 6(d) (to the extent that sections 6(c) 
and 6(d) prohibit manipulation of the market price of any 
commodity, in interstate commerce, or for future delivery 
on or subject to the rules of any market), 6c, 6d, and 
8(a) if they are entered into by a futures commission mer-
chant or an afiiliate of a futures commission merchant 
that is not also an entity described in subparagraph (B)(ii) 
of this paragraph.". 
SEC. 1
0
3
. 
LEGAL CERTAINTY FOR 
EXCLUDED DERIVATIVE 
TRANS-
ACTIONS. 
Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 
3, 4, 4a) is further amended by adding at the end the following: 
"(d) EXCLUDED DERIVATIVE TRANSACTIONS.— 
"(1) IN GENERAL.—Nothing in this Act (other than section 
5b or 12(e)(2)(B) governs or applies to an agreement, contract, 
or transaction in an excluded commodity if— 
"(A) the agreement, contract, or transaction is entered 
into only between persons that are eligible contract partici-
pants at the time at which the persons enter into the 
agreement, contract, or transaction; and 
"(B) the agreement, contract, or transaction is not 
executed or traded on a trading facility. 
"(2) ELECTRONIC TRADING FACILITY EXCLUSION.—Nothing 
in this Act (other than section 5a (to the extent provided 
in section 5a(g)), 5b, 5d, or 12(e)(2)(B)) governs or applies 
to an agreement, contract, or transaction in an excluded 
commodity if— 
"(A) the agreement, contract, or transaction is entered 
into on a principal-to-principal basis between parties trad-
ing for their own accounts or as described in section 
la(12)(B)(ii); 
79-194 O - 00 A14: QL 3 Part 5 
114 STAT. 2763A-378 
PUBLIC LAW 106-554—APPENDIX E 
"(B) the agreement, contract, or transaction is entered 
into only between persons that are eligible contract partici-
pants described in subparagraph (A), (B)(ii), or (C) of sec-
tion la(12)) at the time at which the persons enter into 
the agreement, contract, or transaction; and 
"(C) the agreement, contract, or transaction is executed 
or traded on an electronic trading facility.". 
SEC. 104. EXCLUDED ELECTRONIC TRADING FACILITIES. 
Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 
3, 4, 4a) is further amended by adding at the end the following: 
"(e) EXCLUDED ELECTRONIC TRADING FACILITIES.— 
"(1) IN GENERAL.—Nothing in this Act (other than section 
12(e)(2)(B)) governs or is applicable to an electronic trading 
facility that limits transactions authorized to be conducted on 
its facilities to those satisfying the requirements of section 
2(d)(2), 2(g), or 2(h)(3). 
"(2) EFFECT ON AUTHORITY TO ESTABLISH AND OPERATE.— 
Nothing in this Act shall prohibit a board of trade designated 
by the Commission as a contract market or derivatives trans-
action execution facility, or operating as an exempt board of 
trade from establishing and operating an electronic trading 
facility excluded under this Act pursuant to paragraph (1). 
"(3) EFFECT ON TRANSACTIONS.—No failure by an electronic 
trading facility to limit transactions as required by paragraph 
(1) of this subsection or to comply with section 2(h)(5) shall 
in itself affect the legality, validity, or enforceability of an 
agreement, contract, or transaction entered into or traded on 
the electronic trading facility or cause a participant on the 
system to be in violation of this Act. 
"(4) SPECIAL RULE.—^A person or group of persons that 
would not otherwise constitute a trading facility shall not be 
considered to be a trading facility solely as a result of the 
submission to a derivatives clearing organization of transactions 
executed on or through the person or group of persons.". 
SEC. 105. HYBRID INSTRUMENTS; SWAP TRANSACTIONS. 
(a) 
HYBRID 
INSTRUMENTS.—Section 
2 
of 
the 
Commodity 
Exchange Act (7 U.S.C. 2, 2a, 3, 4, 4a) is further amended by 
adding at the end the following: 
"(f) EXCLUSION FOR QUALIFYING HYBRID INSTRUMENTS.— 
"(1) IN GENERAL.—^Nothing in this Act (other than section 
12(e)(2)(B)) governs or is applicable to a hybrid instrument 
that is predominantly a security. 
"(2) PREDOMINANCE.—^A hybrid instrument shall be consid-
ered to be predominantly a security i
f
— 
"(A) the issuer of the hybrid instrument receives pay-
ment in full of the purchase price of the hybrid instrument, 
substantially contemporaneously with delivery of the 
hybrid instrument; 
"(B) the purchaser or holder of the hybrid instrument 
is not required to make any payment to the issuer in 
addition to the purchase price paid under subparagraph 
(A), whether as margin, settlement payment, or otherwise, 
during the life of the hybrid instrument or at maturity; 
"(C) the issuer of the hybrid instrument is not subject 
by the terms of the instrument to mark-to-market margin-
ing requirements; and 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-379 
"(D) the hybrid instrument is not marketed as a con-
tract of sale of a commodity for future dehvery (or option 
on such a contract) subject to this Act. 
"(3) MARK-TO-MARKET MARGINING REQUIREMENTS.—For the 
purposes of paragraph 
(2)(C), mark-to-market 
margining 
requirements do not include the obligation of an issuer of 
a secured debt instrument to increase the amount of collateral 
held in pledge for the benefit of the purchaser of the secured 
debt instrument to secure the repayment obligations of the 
issuer under the secured debt instrument.". 
(b) 
SWAP 
TRANSACTIONS.—Section 
2 
of 
the 
Commodity 
Exchange Act (7 U.S.C. 2, 2a, 3, 4, 4a) is further amended by 
adding at the end the following: 
"(g) EXCLUDED SWAP TRANSACTIONS.—No provision of this Act 
(other than section 5a (to the extent provided in section 5a(g)), 
5b, 5d, or 12(e)(2)) shall apply to or govern any agreement, contract, 
or transaction in a commodity other than an agricultural commodity 
if the agreement, contract, or transaction is— 
"(1) entered into only between persons that are eligible 
contract participants at the time they enter into the agreement, 
contract, or transaction; 
"(2) subject to individual negotiation by the parties; and 
"(3) not executed or traded on a trading facility.". 
(c) STUDY REGARDING RETAIL SWAPS.— 
(1) IN GENERAL.—^The Board of Governors of the Federal 
Reserve System, the Secretary of the Treasury, the Commodity 
Futures Trading Commission, and the Securities and Exchange 
Commission shall conduct a study of issues involving the offer-
ing of swap agreements to persons other than eligible contract 
participants (as defined in section la of the Commodity 
Exchange Act). 
(2) MATTERS TO BE ADDRESSED.—^The study shall address— 
(A) the potential uses of swap agreements by persons 
other than eligible contract participants; 
(B) the extent to which financial institutions are willing 
to offer swap agreements to persons other than eligible 
contract participants; 
(C) the appropriate regulatory structure to address 
customer protection issues that may arise in connection 
with the offer of swap agreements to persons other than 
eligible contract participants; and 
(D) such other relevant matters deemed necessary or 
appropriate to address. 
(3) REPORT.—Before the end of the 1-year period beginning 
on the date of the enactment of this Act, a report on the 
findings and conclusions of the study required by paragraph 
(1) shall be submitted to Congress, together with such rec-
ommendations for legislative action as are deemed necessary 
and appropriate. 
SEC. 106. TRANSACTIONS IN EXEMPT COMMODITIES. 
Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 
3, 4, 4a) is further amended by adding at the end the following: 
"(h) LEGAL CERTAINTY FOR CERTAIN TRANSACTIONS IN EXEMPT 
COMMODITIES.— 
114 STAT. 2763A-380 
PUBLIC LAW 106-554—APPENDIX E 
"(1) Except as provided in paragraph (2), nothing in this 
Act shall apply to a contract, agreement, or transaction in 
an exempt commodity which— 
"(A) is entered into solely between persons that are 
eligible contract participants at the time the persons enter 
into the agreement, contract, or transaction; and 
"(B) is not entered into on a trading facility. 
"(2) An agreement, contract, or transaction described in 
paragraph (1) of this subsection shall be subject to— 
"(A) sections 5b and 12(e)(2)(B); 
"(B) sections 4b, 4o, 6(c), 6(d), 6c, 6d, and 8a, and 
the regulations of the Commission pursuant to section 4c(b) 
proscribing fraud in connection with commodity option 
transactions, to the extent the agreement, contract, or 
transaction is not between eligible commercial entities 
(unless one of the entities is an instrumentality, depart-
ment, or agency of a State or local governmental entity) 
and would otherwise be subject to such sections and regula-
tions; and 
"(C) sections 6(c), 6(d), 6c, 6d, 8a, and 9(a)(2), to the 
extent such sections prohibit manipulation of the market 
price of any commodity in interstate commerce and the 
agreement, contract, or transaction would otherwise be sub-
ject to such sections. 
"(3) Except as provided in paragraph (4), nothing in this 
Act shall apply to an agreement, contract, or transaction in 
an exempt commodity which is— 
"(A) entered into on a principal-to-principal basis solely 
between persons that are eligible commercigil entities at 
the time the persons enter into the agreement, contract, 
or transaction; and 
"(B) executed or traded on an electronic trading facility. 
"(4) An agreement, contract, or transaction described in 
paragraph (3) of this subsection shall be subject to— 
"(A) sections 5a (to the extent provided in section 5a(g)), 
5b, 5d, and 12(e)(2)(B); 
"(B) sections 4b and 4o and the regulations of the 
Commission pursuant to section 4c(b) proscribing fraud 
in connection with commodity option transactions to the 
extent the agreement, contract, or transaction would other-
wise be subject to such sections and regulations; 
"(C) sections 6(c) and 9(a)(2), to the extent such sections 
prohibit manipulation of the market price of any commodity 
in interstate commerce and to the extent the agreement, 
contract, or transaction would otherwise be subject to such 
sections; and 
"(D) such rules and regulations as the Commission 
may prescribe if necessary to ensure timely dissemination 
by the electronic trading facility of price, trading volume, 
and other trading data to the extent appropriate, if the 
Commission determines that the electronic trading facility 
performs a significant price discovery function for trans-
actions in the cash market for the commodity underlying 
any agreement, contract, or transaction executed or traded 
on the electronic trading facility. 
"(5) An electronic trading facility relying on the exemption 
provided in paragraph (3) shall— 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-381 
"(A) notify the Commission of its intention to operate 
an electronic trading facility in reliance on the exemption 
set forth in paragraph (3), which notice shall include— 
"(i) the name and address of the facility and a 
person designated to receive communications from the 
Commission; 
"(ii) the commodity categories that the facility 
intends to list or otherwise make available for trading 
on the facility in reliance on the exemption set forth 
in paragraph (3); 
"(iii) certifications that— 
"(I) no executive officer or member of the 
governing board of, or any holder of a 10 percent 
or greater equity interest in, the facility is a person 
described in any of subparagraphs (A) through 
(H) of section 8a(2); 
"(II) the facility will comply with the condi-
tions for exemption under this paragraph; and 
"(III) the facility will notify the Commission 
of any material change in the information pre-
viously provided by the facility to the Commission 
pursuant to this paragraph; and 
"(iv) the identity of any derivatives clearing 
organization to which the facility transmits or intends 
to transmit transaction data for the purpose of facilitat-
ing the clearance and settlement of transactions con-
ducted on the facility in reliance on the exemption 
set forth in paragraph (3); 
"(B)(i)(I) provide the Commission with access to the 
facilitys trading protocols and electronic access to the facil-
ity with respect to transactions conducted in reliance on 
the exemption set forth in paragraph (3); or 
"(II) provide such reports to the Commission regarding 
transactions executed on the facility in reliance on the 
exemption set forth in paragraph (3) as the Commission 
may from time to time request to enable the Commission 
to satisfy its obligations under this Act; 
"(ii) maintain for 5 years, and make available for 
inspection by the Commission upon request, records of 
activities related to its business as an electronic trading 
facility exempt under paragraph (3), including— 
"(I) information relating to data entry and trans-
action details sufficient to enable the Commission to 
reconstruct trading activity on the facility conducted 
in reliance on the exemption set forth in paragraph 
(3); and 
"(II) the name and address of each participant 
on the facility authorized to enter into transactions 
in reliance on the exemption set forth in paragraph 
(3); and 
"(iii) upon special call by the Commission, provide to 
the Commission, in a form and manner and within the 
period specified in the special call, such information related 
to its business as an electronic trading facility exempt 
under paragraph (3), including information relating to data 
entry and transaction details in respect of transactions 
entered into in reliance on the exemption set forth in 
114 STAT. 2763A-382 
PUBLIC LAW 106-554—APPENDIX E 
paragraph 
(3), 
as 
the 
Commission 
may 
determine 
appropriate— 
"(I) to enforce the provisions specified in subpara-
graphs (B) and (C) of paragraph (4); 
"(II) to evaluate a systemic market event; or 
"(III) to obtain information requested by a Federal 
financial regulatory authority in order to enable the 
regulator to fulfill its regulatory or supervisory respon-
sibilities; 
"(C)(i) upon receipt of any subpoena issued by or on 
behalf of the Commission to any foreign person who the 
Commission believes is conducting or has conducted trans-
actions in reliance on the exemption set forth in paragraph 
(3) on or through the electronic trading facility relating 
to the transactions, promptly notify the foreign person o
f
^ 
and transmit to the foreign person, the subpoena in a 
manner reasonable under the circumstances, or as specified 
by the Commission; and 
"(ii) if the Commission has reason to believe that a 
person has not timely complied with a subpoena issued 
by or on behalf of the Commission pursuant to clause 
(i), and the Commission in writing has directed that a 
facility relying on the exemption set forth in paragraph 
(3) deny or limit further transactions by the person, the 
facility shall deny that person further trading access to 
the facility or, as applicable, limit that person's access 
to the facility for liquidation trading only; 
"(D) comply with the requirements of this paragraph 
applicable to the facility and require that each participant, 
as a condition of trading on the facility in reliance on 
the exemption set forth in paragraph (3), agree to comply 
with all applicable law; 
"(E) have a reasonable basis for believing that partici-
pants authorized to conduct transactions on the facility 
in reliance on the exemption set forth in paragraph (3) 
are eligible commercial entities; and 
"(F) not represent to any person that the facility is 
registered with, or designated, recognized, licensed, or 
approved by the Commission. 
"(6) A person named in a subpoena referred to in paragraph 
(5)(C) that believes the person is or may be adversely affected 
or aggrieved by action taken by the Commission under this 
section, shall have the opportunity for a prompt hearing after 
the Commission acts under procedures that the Commission 
shall establish by rule, regulation, or order.". 
SEC. 107. APPLICATION OF COMMODITY FUTURES LAWS. 
Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 
3, 4, 4a) is further amended by adding at the end the following: 
"(i) APPLICATION OF COMMODITY FUTURES LAWS.— 
"(1) No provision of this Act shall be construed as implying 
or creating any presumption that— 
"(A) any agreement, contract, or transaction that is 
excluded from this Act under section 2(c), 2(d), 2(e), 2(f), 
or 2(g) of this Act or title IV of the Commodity Futures 
Modernization Act of 2000, or exempted under section 2(h) 
or 4(c) of this Act; or 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-383 
"(B) any agreement, contract, or transaction, not other-
wise subject to this Act, that is not so excluded or exempted, 
is or would otherwise be subject to this Act. 
"(2) No provision of, or amendment made by, the Commod-
ity Futures Modernization Act of 2000 shall be construed as 
conferring jurisdiction on the Commission with respect to any 
such agreement, contract, or transaction, except as expressly 
provided in section 5a of this Act (to the extent provided in 
section 5a(g) of this Act), 5b of this Act, or 5d of this Act.". 
SEC. 108. PROTECTION OF THE PUBLIC INTEREST. 
The Commodity Exchange Act is amended by striking section 
3 (7 U.S.C. 5) and inserting the following: 
"SEC. 3. FINDINGS AND PURPOSE. 
"(a) FINDINGS.—The transactions subject to this Act are entered 
into regularly in interstate and international commerce and are 
affected with a national public interest by providing a means for 
managing and assuming price risks, discovering prices, or dissemi-
nating pricing information through trading in liquid, fair and finan-
cially secure trading facilities. 
"(b) PURPOSE.—It is the purpose of this Act to serve the public 
interests described in subsection (a) through a system of effective 
self-regulation of trading facilities, clearing systems, market partici-
pants and market professionals under the oversight of the Commis-
sion. To foster these public interests, it is further the purpose 
of this Act to deter and prevent price manipulation or any other 
disruptions to market integrity; to ensure the financial integrity 
of all transactions subject to this Act and the avoidance of systemic 
risk; to protect all market participants from fraudulent or other 
abusive sales practices and misuses of customer assets; and to 
promote responsible innovation and fair competition among boards 
of trade, other markets and market participants.". 
SEC. 109. PROHIBITED TRANSACTIONS. 
Section 4c of the Commodity Exchange Act (7 U.S.C. 6c) is 
amended by striking "SEC. 4C." and all that follows through sub-
section (a) and inserting the following: 
"SEC. 4c. PROHIBITED TRANSACTIONS. 
"(a) IN GENERAL.— 
"(1) PROHIBITION.—It shall be unlawful for any person to 
offer to enter into, enter into, or confirm the execution of 
a transaction described in paragraph (2) involving the purchase 
or sale of any commodity for future delivery (or any option 
on such a transaction or option on a commodity) if the tr£ins-
action is used or may be used to— 
"(A) hedge any transaction in interstate commerce in 
the commodity or the product or byproduct of the commod-
ity; 
"(B) determine the price basis of any such transaction 
in interstate commerce in the commodity; or 
"(C) deliver any such commodity sold, shipped, or 
received in interstate commerce for the execution of the 
transaction. 
"(2) TRANSACTION.—^A transaction referred to in paragraph 
(1) is a transaction that— 
114 STAT. 2763A-384 
PUBLIC LAW 106-554—APPENDIX E 
"(A)(i) is, of the character of, or is commonly known 
to the trade as, a 'wash sale' or 'accommodation trade'; 
or 
"(ii) is a fictitious sale; or 
"(B) is used to cause any price to be reported, reg-
istered, or recorded that is not a true and bona fide price.". 
SEC. 110. 
DESIGNATION 
OF 
BOARDS 
OF 
TRADE 
AS 
CONTRACT 
MAR-
KETS. 
The Commodity Exchange Act is amended— 
(1) by redesignating section 5b (7 U.S.C. 7b) as section 
5e; and 
(2) by striking sections 5 and 5a (7 U.S.C. 7, 7a) and 
inserting the following: 
"SEC. 
5
. 
DESIGNATION 
OF 
BOARDS 
OF 
TRADE 
AS 
CONTRACT 
MARKETS. 
"(a) APPLICATIONS.—^A board of trade applying to the Commis-
sion for designation as a contract market shall submit an application 
to the Commission that includes any relevant materials and records 
the Commission may require consistent with this Act. 
"(b) CRITERIA FOR DESIGNATION.— 
"(1) IN GENERAL.—To be designated as a contract market, 
the board of trade shall demonstrate to the Commission that 
the board of trade meets the criteria specified in this subsection. 
"(2) PREVENTION OF MARKET MANIPULATION.—^The board 
of trade shall have the capacity to prevent market manipulation 
through market surveillance, compliance, and enforcement 
practices and procedures, including methods for conducting 
real-time monitoring of trading and comprehensive 
and 
accurate trade reconstructions. 
"(3) FAIR AND EQUITABLE TRADING.—^The board of trade 
shall establish and enforce trading rules to ensure fair and 
equitable trading through the facilities of the contract market, 
and the capacity to detect, investigate, and discipline any per-
son that violates the rules. The rules may authorize— 
"(A) transfer trades or office trades; 
"(B) an exchange of— 
"(i) futures in connection with a cash commodity 
transaction; 
"(ii) futures for cash commodities; or 
"(iii) futures for swaps; or 
"(C) a futures commission merchant, acting as principal 
or agent, to enter into or confirm the execution of a contract 
for the purchase or sale of a commodity for future delivery 
if the contract is reported, recorded, or cleared in accord-
ance with the rules of the contract market or a derivatives 
clearing organization. 
"(4) TRADE 
EXECUTION FACILITY.—The board of trade 
shall— 
"(A) establish and enforce rules defining, or specifica-
tions detailing, the manner of operation of the trade execu-
tion facility maintained by the board of trade, including 
rules or specifications describing the operation of any elec-
tronic matching platform; and 
"(B) demonstrate that the trade execution facility oper-
ates in accordance with the rules or specifications. 
"(5) FiNANCLVL INTEGRITY OF TRANSACTIONS.—The board 
of trade shall establish and enforce rules and procedures for 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-385 
ensuring the financial integrity of transactions entered into 
by or through the facihties of the contract market, including 
the clearance and settlement of the transactions with a deriva-
tives clearing organization. 
"(6) DISCIPLINARY PROCEDURES.—The board of trade shall 
establish and enforce disciplinary procedures that authorize 
the board of trade to discipline, suspend, or expel members 
or market participants that violate the rules of the board of 
trade, or similar methods for performing the same functions, 
including delegation of the functions to third parties. 
"(7) PUBLIC ACCESS.—The board of trade shall provide the 
public with access to the rules, regulations, and contract speci-
fications of the board of trade. 
"(8) ABILITY TO OBTAIN INFORMATION.—The board of trade 
shall establish and enforce rules that will allow the board 
of trade to obtain any necessary information to perform any 
of the functions described in this subsection, including the 
capacity to carry out such international information-sharing 
agreements as the Commission may require. 
"(c) EXISTING CONTRACT MARKETS.—^A board of trade that is 
designated as a contract market on the date of the enactment 
of the Commodity Futures Modernization Act of 2000 shall be 
considered to be a designated contract market under this section. 
"(d) CORE PRINCIPLES FOR CONTRACT MARKETS.— 
"(1) IN GENERAL.—^To maintain the designation of a board 
of trade as a contract market, the board of trade shall comply 
with the core principles specified in this subsection. The board 
of trade shall have reasonable discretion in establishing the 
manner in which it complies with the core principles. 
"(2) COMPLIANCE WITH RULES.—The board of trade shall 
monitor and enforce compliance with the rules of the contract 
market, including the terms and conditions of any contracts 
to be traded and any limitations on access to the contract 
market. 
"(3) CONTRACTS NOT READILY SUBJECT TO MANIPULATION.— 
The board of trade shall list on the contract market only con-
tracts that are not readily susceptible to manipulation. 
"(4) MONITORING OF TRADING.—The board of trade shall 
monitor trading to prevent manipulation, price distortion, and 
disruptions of the delivery or cash-settlement process. 
"(5) POSITION LIMITATIONS OR ACCOUNTABILITY.—To reduce 
the potential threat of market manipulation or congestion, espe-
cially during trading in the delivery month, the board of trade 
shall adopt position limitations or position accountability for 
speculators, where necessary and appropriate. 
"(6) EMERGENCY AUTHORITY.—The board of trade shall 
adopt rules to provide for the exercise of emergency authority, 
in consultation or cooperation with the Commission, where 
necessary and appropriate, including the authority to— 
"(A) liquidate or transfer open positions in any contract; 
"(B) suspend or curtail trading in any contract; and 
"(C) require market participants in any contract to 
meet special margin requirements. 
"(7) AVAILABILITY OF GENERAL INFORMATION.—^The board 
of trade shall make available to market authorities, market 
participants, and the public information concerning— 
114 STAT. 2763A-386 
PUBLIC LAW 106-554—APPENDIX E 
"(A) the terms and conditions of the contracts of the 
contract market; and 
"(B) the mechanisms for executing transactions on or 
through the faciUties of the contract market. 
"(8) 
DAILY PUBLICATION OF TRADING INFORMATION.—The 
board of trade shall make public daily information on settle-
ment prices, volume, open interest, and opening and closing 
ranges for actively traded contracts on the contract market. 
"(9) EXECUTION OF TRANSACTIONS.—The board of trade 
shall provide a competitive, open, and efficient market and 
mechanism for executing transactions. 
"(10) TRADE INFORMATION.—^The board of trade shall main-
tain rules and procedures to provide for the recording and 
safe storage of all identifying trade information in a manner 
that enables the contract market to use the information for 
purposes of assisting in the prevention of customer and market 
abuses and providing evidence of any violations of the rules 
of the contract market. 
"(11) FINANCIAL INTEGRITY OF CONTRACTS.—The board of 
trade shall establish and enforce rules providing for the finan-
cial integrity of any contracts traded on the contract market 
(including the clearance £ind settlement of the transactions 
with a derivatives clearing organization), and rules to ensure 
the financial integrity of any futures commission merchants 
and introducing brokers and the protection of customer funds. 
"(12) PROTECTION OF MARKET PARTICIPANTS.—The board 
of trade shall establish and enforce rules to protect market 
participants from abusive practices committed by any party 
acting as an agent for the participants. 
"(13) DISPUTE RESOLUTION.—The board of trade shall estab-
lish and enforce rules regarding and provide facilities for alter-
native dispute resolution as appropriate for market participants 
and any market intermediaries. 
"(14) GOVERNANCE FITNESS STANDARDS.—The board of trade 
shall establish and enforce appropriate fitness standards for 
directors, members of any disciplinary committee, members 
of the contract market, and any other persons with direct 
access to the facility (including any parties affiliated with any 
of the persons described in this paragraph). 
"(15) CONFLICTS OF INTEREST.—The board of trade shall 
establish and enforce rules to minimize conflicts of interest 
in the decisionmaking process of the contract market and estab-
lish a process for resolving such conflicts of interest. 
"(16) COMPOSITION OF BOARDS OF MUTUALLY OWNED CON-
TRACT MARKETS.—In the case of a mutually owned contract 
market, the board of trade shall ensure that the composition 
of the governing board reflects market participants. 
"(17) RECORDKEEPING.—The board of trade shall maintain 
records of all activities related to the business of the contract 
market in a form and manner acceptable to the Commission 
for a period of 5 years. 
"(18) 
ANTITRUST CONSIDERATIONS.—Unless necessary 
or 
appropriate to achieve the purposes of this Act, the board 
of trade shall endeavor to avoid— 
"(A) adopting any rules or taking any actions that 
result in £iny unreasonable restraints of trade; or 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-387 
"(B) imposing any material anticompetitive burden on 
trading on the contract market. 
"(e) CURRENT AGRICULTURAL COMMODITIES.— 
"(1) Subject to paragraph (2) of this subsection, a contract 
for purchase or sale for future delivery of an agricultural 
commodity enumerated in section la(4) that is available for 
trade on a contract market, as of the date of the enactment 
of this subsection, may be traded only on a contract market 
designated under this section. 
"(2) In order to promote responsible economic or financial 
innovation and fair competition, the Commission, on application 
by any person, after notice and public comment and opportunity 
for hearing, may prescribe rules and regulations to provide 
for the offer and sale of contracts for future delivery or options 
on such contracts to be conducted on a derivatives transaction 
execution facility.". 
SEC. 111. DERIVATIVES TRANSACTION EXECUTION FACILITIES. 
The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended 
by inserting after section 5 (as amended by section 110(2)) the 
following: 
"SEC. 5a. DERIVATIVES TRANSACTION EXECUTION FACILITIES. 
"(a) IN GENERAL.—In lieu of compliance with the contract mar-
ket designation requirements of sections 4(a) and 5, a board of 
trade may elect to operate as a registered derivatives transaction 
execution facility if the facility is— 
"(1) designated as a contract market and meets the require-
ments of this section; or 
"(2) registered as a derivatives transaction execution facil-
ity under subsection (c) of this section. 
"(b) REQUIREMENTS FOR TRADING.— 
"(1) IN GENERAL.—^A registered derivatives trsmsaction 
execution facility under subsection (a) may trade any contract 
of sale of a commodity for future delivery (or option on such 
a contract) on or through the facility only by satisfying the 
requirements of this section. 
"(2) REQUIREMENTS FOR UNDERLYING COMMODITIES.—A reg-
istered derivatives transaction execution facility may trade any 
contract of sale of a commodity for future delivery (or option 
on such a contract) only if— 
"(A) the underlying commodity has a nearly inexhaust-
ible deliverable supply; 
"(B) the underlying commodity has a deliverable supply 
that is sufficiently large that the contract is highly unlikely 
to be susceptible to the threat of manipulation; 
"(C) the underlying commodity has no cash market; 
"(D)(i) the contract is a security futures product, and 
(ii) the registered derivatives transaction execution facility 
is a national securities exchange registered under the Secu-
rities Exchange Act of 1934; 
"(E) the Commission determines, based on the market 
characteristics, surveillance history, self-regulatory record, 
and capacity of the facility that trading in the contract 
(or option) is highly unlikely to be susceptible to the threat 
of manipulation; or 
"(F) except as provided in section 5(e)(2), the underly-
ing commodity is a commodity other than an agricultural 
114 STAT. 2763A-388 
PUBLIC LAW 106-554—APPENDIX E 
commodity enumerated in section la(4), and trading access 
to the facility is limited to eligible commercial entities 
trading for their own account. 
"(3) ELIGIBLE TRADERS.—To trade on a registered deriva-
tives transaction execution facility, a person shall— 
"(A) be an eligible contract participant; or 
"(B) be a person trading through a futures commission 
merchant that— 
"(i) is registered with the Commission; 
"(ii) is a member of a futures 
self-regulatory 
organization or, if the person trades only security 
futures products on the facility, a national securities 
association registered under section 15A(a) of the Secu-
rities Exchsinge Act of 1934; 
"(iii) is a clearing member of a derivatives clearing 
organization; and 
"(iv) has net capital of at least $20,000,000. 
"(4) TRADING BY CONTRACT MARKETS.—^A board of trade 
that is designated as a contract market shall, to the extent 
that the contract market also operates a registered derivatives 
transaction execution facility— 
"(A) provide a physical location for the contract market 
trading of the board of trade that is separate from trading 
on the derivatives transaction execution facility of the board 
of trade; or 
"(B) if the board of trade uses the same electronic 
trading system for trading on the contract market and 
derivatives transaction execution facility of the board of 
trade, identify whether the electronic trading is taking 
place on the contract market or the derivatives transaction 
execution facility. 
"(c) CRITERIA FOR REGISTRATION.— 
"(1) IN GENERAL,—^To be registered as a registered deriva-
tives transaction execution facility, the board of trade shall 
be required to demonstrate to the Commission only that the 
board of trade meets the criteria specified in subsection (b) 
and this subsection. 
"(2) DETERRENCE OF ABUSES.—^The board of trade shall 
establish and enforce trading and participation rules that will 
deter abuses and has the capacity to detect, investigate, and 
enforce those rules, including means to— 
"(A) obtain information necessary to perform the func-
tions required under this section; or 
"(B) use technological means to— 
"(i) provide market participants with impartial 
access to the market; and 
"(ii) capture information that may be used in 
establishing whether rule violations have occurred. 
"(3) TRADING PROCEDURES.—The board of trade shall estab-
lish and enforce rules or terms and conditions defining, or 
specifications detailing, trading procedures to be used in enter-
ing and executing orders traded on the facilities of the board 
of trade. The rules may authorize— 
"(A) transfer trades or office trades; 
"(B) an exchange of— 
"(i) futures in connection with a cash commodity 
transaction; 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-389 
"(ii) futures for cash commodities; or 
"(iii) futures for swaps; or 
"(C) a futures commission merchant, acting as principal 
or agent, to enter into or confirm the execution of a contract 
for the purchase or sale of a commodity for future delivery 
if the contract is reported, recorded, or cleared in accord-
ance with the rules of the registered derivatives transaction 
execution facility or a derivatives clearing organization. 
"(4) FINANCIAL INTEGRITY OF TRANSACTIONS.—The board 
of trade shall establish and enforce rules or terms and condi-
tions providing for the financial integrity of transactions 
entered on or through the facilities of the board of trade, 
and rules or terms and conditions to ensure the financial integ-
rity of any futures commission merchants and introducing bro-
kers and the protection of customer funds. 
"(d) CORE PRINCIPLES FOR REGistERED DERIVATIVES TRANS-
ACTION EXECUTION FACILITIES.— 
"(1) IN GENERAL.—To maintain the registration of a board 
of trade as a derivatives transaction execution facility, a board 
of trade shall comply with the core principles specified in this 
subsection. The board of trade shall have reasonable discretion 
in establishing the manner in which the board of trade complies 
with the core principles. 
"(2) COMPLIANCE WITH RULES.—The board of trade shall 
monitor and enforce the rules of the facility, including any 
terms and conditions of any contracts traded on or through 
the facility and any limitations on access to the facility. 
"(3) MONITORING OF TRADING.—The board of trade shall 
monitor trading in the contracts of the facility to ensure orderly 
trading in the contract and to maintain an orderly market 
while providing any necessary trading information to the 
Commission to allow the Commission to discharge the respon-
sibilities of the Commission under the Act. 
"(4) DISCLOSURE OF GENERAL INFORMATION.—The board of 
trade shall disclose publicly and to the Commission information 
concerning— 
"(A) contract terms and conditions; 
"(B) trading conventions, mechanisms, and practices; 
"(C) financial integrity protections; and 
"(D) other information relevant to participation in trad-
ing on the facility. 
"(5) 
DAILY PUBLICATION OF TRADING INFORMATION.—^The 
board of trade shall make public daily information on settle-
ment prices, volume, open interest, and opening and closing 
ranges for contracts traded on the facility if the Commission 
determines that the contracts perform a significant price discov-
ery function for transactions in the cash market for the 
commodity underlying the contracts. 
"(6) FITNESS STANDARDS.—The board of trade shall estab-
lish and enforce appropriate fitness standards for directors, 
members of any disciplinary committee, members, and any 
other persons with direct access to the facility, including any 
parties affiliated with any of the persons described in this 
paragraph. 
"(7) CONFLICTS OF INTEREST.—The board of trade shall 
establish and enforce rules to minimize conflicts of interest 
in the decision making process of the derivatives transaction 
114 STAT. 2763A-390 
PUBLIC LAW 106-554—APPENDIX E 
execution facility and establish a process for resolving such 
conflicts of interest. 
"(8) RECORDKEEPING.—The board of trade shall maintain 
records of all activities related to the business of the derivatives 
transaction execution facility in a form and manner acceptable 
to the Commission for a period of 5 years. 
"(9) 
ANTITRUST CONSIDERATIONS.—Unless necessary 
or 
appropriate to achieve the purposes of this Act, the board 
of trade shall endeavor to avoid— 
"(A) adopting any rules or taking any actions that 
result in any unreasonable restraint of trade; or 
"(B) imposing any material anticompetitive burden on 
trading on the derivatives transaction execution facility. 
"(e) USE OF BROKER-DEALERS, DEPOSITORY INSTITUTIONS, AND 
FARM CREDIT SYSTEM INSTITUTIONS AS INTERMEDIARIES.— 
"(1) IN GENERAL.—^With respect to transactions other than 
transactions in security futures products, a registered deriva-
tives transaction execution facility may by rule allow a broker-
dealer, depository institution, or institution of the Farm Credit 
System that meets the requirements of paragraph (2) to— 
"(A) act as an intermediary in transactions executed 
on the facility on behalf of customers of the broker-dealer, 
depository institution, or institution of the Farm Credit 
System; and 
"(B) receive funds of customers to serve as margin 
or security for the transactions. 
"(2) REQUIREMENTS.—^The requirements referred to in para-
graph (1) are that— 
"(A) the broker-dealer be in good standing with the 
Securities and Exchange Commission, or the depository 
institution or institution of the Farm Credit System be 
in good standing with Federal bank regulatory agencies 
(including the Farm Credit Administration), as applicable; 
and 
"(B) if the broker-dealer, depository institution, or 
institution of the Farm Credit System carries or holds 
customer accounts or funds for transactions on the deriva-
tives transaction execution facility for more than 1 business 
day, the broker-dealer, depository institution, or institution 
of the Farm Credit System is registered as a futures 
commission merchant and is a member of a registered 
futures association. 
"(3) IMPLEMENTATION,—The Commission shall cooperate 
and coordinate with the Securities and Exchange Commission, 
the Secretary of the Treasury, and Federal banking regulatory 
agencies (including the Farm Credit Administration) in adopt-
ing rules and taking any other appropriate action to facilitate 
the implementation of this subsection. 
"(f) SEGREGATION OF CUSTOMER FUNDS.—Not later than 180 
days after the date of the enactment of the Commodity Futures 
Modernization Act of 2000, consistent with regulations adopted 
by the Commission, a registered derivatives transaction execution 
facility may authorize a futures commission merchant to offer any 
customer of the futures commission merchant that is an eligible 
contract participant the right to not segregate the customer funds 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-391 
of the customer that are carried with the futures commission mer-
chant for purposes of trading on or through the facihties of the 
registered derivatives transaction execution faciUty. 
"(g) 
ELECTION TO TRADE EXCLUDED AND EXEMPT COMMOD-
ITIES.— 
"(1) IN GENERAL.—Notwithstanding subsection (b)(2) of this 
section, a board of trade that is or elects to become a registered 
derivatives transaction execution facihty may trade on the facil-
ity any agreements, contracts, or transactions 
involving 
excluded or exempt commodities other than securities, except 
contracts of sale for future delivery of exempt securities under 
section 3(a)(12) of the Securities Exchange Act of 1934 as 
in effect on the date of the enactment of the Futures Trading 
Act of 1982, that are otherwise excluded from this Act under 
section 2(c), 2(d), or 2(g) of this Act, or exempt under section 
2(h) of this Act. 
"(2) 
EXCLUSIVE JURISDICTION OF THE COMMISSION,—The 
Commission shall have exclusive jurisdiction over agreements, 
contracts, or transactions described in paragraph (1) to the 
extent that the agreements, contracts, or transactions are 
traded on a derivatives transaction execution facility.". 
SEC. 112. DERIVATIVES CLEARING. 
(a) IN GENERAL.—Subtitle A of title IV of the Federal Deposit 
Insurance Corporation Improvement Act of 1991 is amended— 
(1) by inserting before the section heading for section 401, 
the following new heading: 
"CHAPTER 1—BILATERAL AND CLEARING 
ORGANIZATION NETTING"; 
(2) in section 402, by striking "this subtitle" and inserting 
"this chapter"; and 
(3) by inserting after section 407, the following new chapter: 
"CHAPTER 2—MULTILATERAL CLEARING 
ORGANIZATIONS 
"SEC. 408. DEFINITIONS. 
For purposes of this chapter, the following definitions shall 
apply: 
"(1) MULTILATERAL CLEARING ORGANIZATION.—The term 
'multilateral clearing organization' means a system utilized 
by more than two participants in which the bilateral credit 
exposures of participants arising from the transactions cleared 
are effectively eliminated and replaced by a system of guaran-
tees, insurance, or mutualized risk of loss. 
"(2) 
OVER-THE-COUNTER 
DERIVATIVE 
INSTRUMENT.—The 
term 'over-the-counter derivative instrument' includes— 
"(A) any agreement, contract, or transaction, including 
the terms and conditions incorporated by reference in any 
such agreement, contract, or transaction, which is an 
interest rate swap, option, or forward agreement, including 
a rate floor, rate cap, rate collar, cross-currency rate swap, 
basis swap, and forward rate agreement; a same day-tomor-
row, tomorrow-next, forward, or other foreign exchange 
or precious metals agreement; a currency swap, option, 
or forward agreement; an equity index or equity swap, 
114 STAT. 2763A-392 
PUBLIC LAW 106-554—APPENDIX E 
option, or forward agreement; a debt index or debt swap, 
option, or forward agreement; a credit spread or credit 
swap, option, or forward agreement; a commodity index 
or commodity swap, option, or forward agreement; and 
a weather swap, weather derivative, or weather option; 
"(B) any agreement, contract or transaction similar 
to any other agreement, contract, or transaction referred 
to in this clause that is presently, or in the future becomes, 
regularly entered into by parties that participate in swap 
transactions (including terms and conditions incorporated 
by reference in the agreement) and that is a forward, 
swap, or option on one or more occurrences of any event, 
rates, currencies, commodities, equity securities or other 
equity 
instruments, 
debt 
securities 
or other 
debt 
instruments, economic or other indices or measures of eco-
nomic or other risk or value; 
"(C) any agreement, contract, or transaction excluded 
from the Commodity Exchange Act under section 2(c), 2(d), 
2(f), or 2(g) of such Act, or exempted under section 2(h) 
or 4(c) of such Act; and 
"(D) any option to enter into any, or any combination 
of, agreements, contracts or transactions referred to in 
this subparagraph. 
"(3) OTHER DEFINITIONS.—The terms 'insured State non-
member bank', 'State member bank', and 'affiliate' have the 
same meanings as in section 3 of the Federal Deposit Insurance 
Act. 
"SEC. 409. MULTILATERAL CLEARING ORGANIZATIONS. 
"(a) IN GENERAL.—Except with respect to clearing organizations 
described in subsection (b), no person may operate a multilateral 
clearing organization for over-the-counter derivative instruments, 
or otherwise engage in activities that constitute such a multilateral 
clearing organization unless the person is a national bank, a State 
member bank, an insured State nonmember bank, an affiliate of 
a national bank, a State member bank, or an insured State non-
member bank, or a corporation chartered under section 25A of 
the Federal Reserve Act. 
"(b) CLEARING ORGANIZATIONS.—Subsection (a) shall not apply 
to any clearing organization that— 
"(1) is registered as a clearing agency under the Securities 
Exchange Act of 1934; 
"(2) is registered as a derivatives clearing organization 
under the Commodity Exchange Act; or 
"(3) is supervised by a foreign financial regulator that 
the Comptroller of the Currency, the Board of Governors of 
the Federal Reserve System, the Federal Deposit Insurance 
Corporation, the Securities and Exchange Commission, or the 
Commodity Futures Trading Commission, as applicable, has 
determined satisfies appropriate standards.". 
(b) RESOLUTION OF CLEARING BANKS.—The Federal Reserve 
Act (12 U.S.C. 221 et seq.) is amended by inserting after section 
9A the following new section: 
"SEC. 
9B. 
RESOLUTION 
OF 
CLEARING 
BANKS. 
"(a) CONSERVATORSHIP OR RECEIVERSHIP.— 
"(1) APPOINTMENT.—The Board may appoint a conservator 
or receiver to take possession and control of any uninsured 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-393 
State member bank which operates, or operates as, a multilat-
eral clearing organization pursuant to section 409 of the Federal 
Deposit Insurance Corporation Improvement Act of 1991 to 
the same extent and in the same manner as the Comptroller 
of the Currency may appoint a conservator or receiver for 
a national bank. 
"(2) POWERS.—The conservator or receiver for an uninsured 
State member bank referred to in paragraph (1) shall exercise 
the same powers, functions, and duties, subject to the same 
limitations, as a conservator or receiver for a national bank. 
"(b) BOARD AUTHORITY.—The Board shall have the same 
authority with respect to any conservator or receiver appointed 
under subsection (a), and the uninsured State member bank for 
which the conservator or receiver has been appointed, as the 
Comptroller of the Currency has with respect to a conservator 
or receiver for a national bank and the national bank for which 
the conservator or receiver has been appointed. 
"(c) BANKRUPTCY PROCEEDINGS.—The Board (in the case of 
an uninsured State member hank which operates, or operates as, 
such a multilateral clearing organization) may direct a conservator 
or receiver appointed for the bank to file a petition pursuant to 
title 11, United States Code, in which case, title 11, United States 
Code, shall apply to the bank in lieu of otherwise applicable Federal 
or State insolvency law.". 
(c) TECHNICAL AND CONFORMING AMENDMENTS TO TITLE 11, 
^ 
UNITED STATES CODE.— 
* 
(1) BANKRUPTCY CODE DEBTORS.—Section 109(b)(2) of title 
11, United States Code, is amended by striking "; or" and 
inserting the following: ", except that an uninsured State mem-
ber bank, or a corporation organized under section 25A of 
the Federal Reserve Act, which operates, or operates as, a 
multilateral clearing organization pursuant to section 409 of 
the Federal Deposit Insurance Corporation Improvement Act 
of 1991 may be a debtor if a petition is filed at the direction 
of the Board of Governors of the Federal Reserve System; 
or". 
(2) CHAPTER 7 DEBTORS.—Section 109(d) of title 11, United 
States Code, is amended to read as follows: 
"(d) Only a railroad, a person that may be a debtor under 
chapter 7 of this title (except a stockbroker or a commodity broker), 
and an uninsured State member bank, or a corporation organized 
under section 25A of the Federal Reserve Act, which operates, 
or operates as, a multilateral clearing organization pursuant to 
section 409 of the Federal Deposit Insurance Corporation Improve-
ment Act of 1991 may be a debtor under chapter 11 of this title.". 
(3) DEFINITION OF FINANCIAL INSTITUTION.—Section 101(22) 
of title 11, United States Code, is amended to read as follows: 
"(22) the term 'financial institution'— 
"(A) means— 
"(i) a Federal reserve bank or an entity (domestic 
or foreign) that is a commercial or savings bank, indus-
trial savings bank, savings and loan association, trust 
company, or receiver or conservator for such entity 
and, when any such Federal reserve bank, receiver, 
conservator, or entity is acting as agent or custodian 
for a customer in connection with a securities contract. 
114 STAT. 2763A-394 
PUBLIC LAW 106-554—APPENDIX E 
as defined in section 741 of this title, the customer; 
or 
"(ii) in connection with a securities contract, as 
defined in section 741 of this title, an investment com-
pany registered under the Investment Company Act 
of 1940; and 
"(B) includes any person described in subparagraph 
(A) which operates, or operates as, a multilateral clearing 
organization pursuant to section 409 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991;". 
(4) DEFINITION OF UNINSURED STATE MEMBER BANK.—Sec-
tion 101 of title 11, United States Code, is amended by inserting 
after paragraph (54) the following new paragraph— 
"(54A) the term 'uninsured State member bank' means a State 
member bank (as defined in section 3 of the Federal Deposit Insur-
ance Act) the deposits of which are not insured by the Federal 
Deposit Insurance Corporation; and". 
(5) SUBCHAPTER V OF CHAPTER 7.— 
(A) IN GENERAL.—Section 103 of title 11, United States 
Code, is amended— 
(i) by redesignating subsections (e) through (i) as 
subsections (f) through (j), respectively; and 
(ii) by inserting after subsection (d) the following 
new subsection: 
"(e) SCOPE OF APPLICATION.—Subchapter V of chapter 7 of 
this title shall apply only in a case under such chapter concerning 
the liquidation of an uninsured State member bank, or a corporation 
organized under section 25A of the Federal Reserve Act, which 
operates, or operates as, a multilateral clearing organization pursu-
ant to section 409 of the Federal Deposit Insurance Corporation 
Improvement Act of 1991.". 
(B) CLEARING BANK LIQUIDATION.—Chapter 7 of title 
11, United States Code, is amended by adding at the end 
the following new subchapter: 
"SUBCHAPTER V—CLEARING BANK LIQUIDATION 
"§ 781. DelRnitions 
"For purposes of this subchapter, the following definitions shall 
apply: 
"(1) BOARD.—^The term 'Board' means the Board of Gov-
ernors of the Federal Reserve System, 
"(2) 
DEPOSITORY 
INSTITUTION.—The 
term 
'depository 
institution' has the same meaning as in section 3 of the Federal 
Deposit Insurance Act. 
"(3) CLEARING BANK.—The term 'clearing bank' means an 
uninsured State member bank, or a corporation organized 
under section 25A of the Federal Reserve Act, which operates, 
or operates as, a multilateral clearing organization pursuant 
to section 409 of the Federal Deposit Insurance Corporation 
Improvement Act of 1991. 
"§ 782. Selection of trustee 
"(a) IN GENERAL.— 
"(1) APPOINTMENT.—Notwithstanding any other provision 
of this title, the conservator or receiver who files the petition 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-395 
shall be the trustee under this chapter, unless the Board des-
ignates an alternative trustee. 
"(2) SUCCESSOR.—The Board may designate a successor 
trustee if required. 
"(b) AUTHORITY OF TRUSTEE.—^Whenever the Board appoints 
or designates a trustee, chapter 3 and sections 704 and 705 of 
this title shall apply to the Board in the same way and to the 
same extent that they apply to a United States trustee. 
''§ 783. Additional powers of trustee 
"(a) 
DISTRIBUTION OF PROPERTY NOT OF THE ESTATE.—The 
trustee under this subchapter has power to distribute property 
not of the estate, including distributions to customers that are 
mandated by subchapters III and IV of this chapter. 
"(b) DISPOSITION OF INSTITUTION.—The trustee under this sub-
chapter may, after notice and a hearing— 
"(1) sell the clearing bank to a depository institution or 
consortium of depository institutions (which consortium may 
agree on the allocation of the clearing bank among the consor-
tium); 
"(2) merge the clearing bank with a depository institution; 
"(3) transfer contracts to the same extent as could a receiver 
for a depository institution under paragraphs (9) and (10) of 
section 11(e) of the Federal Deposit Insurance Act; 
"(4) transfer assets or liabilities to a depository institution; 
and 
"(5) transfer assets and liabilities to a bridge bank as 
provided in paragraphs (1), (3)(A), (5), and (6) of section ll(n) 
of the Federal Deposit Insurance Act, paragraphs (9) through 
(13) of such section, and subparagraphs (A) through (H) and 
subparagraph (K) of paragraph (4) of such section ll(n), except 
that— 
"(A) the bridge bank to which such assets or liabilities 
are transferred shall be treated as a clearing bank for 
the purpose of this subsection; and 
"(B) any references in any such provision of law to 
the Federal Deposit Insurance Corporation shall be con-
strued to be references to the appointing agency and that 
references to deposit insurance shall be omitted. 
"(c) CERTAIN TRANSFERS INCLUDED.—^Any reference in this sec-
tion to transfers of liabilities includes a ratable transfer of liabilities 
within a priority class. 
'<§ 784. Right to be heard 
"The Board or a Federal reserve bank (in the case of a clearing 
bank that is a member of that bank) may raise and may appear 
and be heard on any issue in a case under this subchapter.". 
(6) 
DEFINITIONS OF CLEARING ORGANIZATION, CONTRACT 
MARKET, AND RELATED DEFINITIONS.— 
(A) Section 761(2) of title 11, United States Code, is 
amended to read as follows: 
"(2) 'clearing organization' means a derivatives clearing 
organization registered under the Act;". 
(B) Section 761(7) of title 11, United States Code, is 
amended to read as follows: 
"(7) 'contract market' means a registered entity;". 
114 STAT. 2763A-396 
PUBLIC LAW 106-554—APPENDIX E 
(C) Section 761(8) of title 11, United States Code, is 
amended to read as follows: 
"(8) 'contract of sale', 'commodity', 'derivatives clearing 
organization', 'future delivery', 'board of trade', 'registered 
entity', and 'futures commission merchant' have the meanings 
assigned to those terms in the Act;". 
(d) CLERICAL AMENDMENT.—The table of sections for chapter 
7 of title 11, United States Code, is amended by adding at the 
end the following new items: 
"SUBCHAPTER V—CLEARING BANK LIQUIDATION 
"Sec. 
"781. Definitions. 
"782. Selection of trustee. 
"783. Additional powers of trustee. 
"784. Right to be heard.". 
(e) 
RESOLUTION OF EDGE ACT CORPORATIONS.—The 
16th 
undesignated paragraph of section 25A of the Federal Reserve 
Act (12 U.S.C. 624) is amended to read as follows: 
"(16) APPOINTMENT OF RECEIVER OR CONSERVATOR.— 
"(A) IN GENERAL.—The Board may appoint a conserva-
tor or receiver for a corporation organized under the provi-
sions of this section to the same extent and in the same 
manner as the Comptroller of the Currency may appoint 
a conservator or receiver for a national bank, and the 
conservator or receiver for such corporation shall exercise 
the same powers, functions, and duties, subject to the same 
limitations, as a conservator or receiver for a national 
bank. 
"(B) EQUIVALENT AUTHORITY.—The Board shall have 
the same authority with respect to any conservator or 
receiver appointed for a corporation organized under the 
provisions of this section under this paragraph and any 
such corporation as the Comptroller of the Currency has 
with respect to a conservator or receiver of a national 
bank and the national bank for which a conservator or 
receiver has been appointed. 
"(C) TITLE ii PETITIONS.—The Board may direct the 
conservator or receiver of a corporation organized under 
the provisions of this section to file a petition pursuant 
to title 11, United States Code, in which case, title 11, 
United States Code, shall apply to the corporation in lieu 
of otherwise applicable Federal or State insolvency law,". 
(f) DERIVATIVES CLEARING ORGANIZATIONS.—The Commodity 
Exchange Act (7 U.S.C. 1 et seq.) is amended by inserting after 
section 5a, as added by section 111 of this Act, the following: 
"SEC. 5b. DERIVATIVES CLEARING ORGANIZATIONS. 
"(a) REGISTRATION REQUIREMENT.—It shall be unlawful for a 
derivatives clearing organization, unless registered with the 
Commission, directly or indirectly to make use of the mails or 
any means or instrumentality of interstate commerce to perform 
the functions of a derivatives clearing organization described in 
section la(9) of this Act with respect to a contract of sale of a 
commodity for future delivery (or option on such a contract) or 
option on a commodity, in each case unless the contract or option— 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-397 
"(1) is excluded from this Act by section 2(a)(l)(C)(i), 2(c), 
2(d), 2(f), or 2(g) of this Act or title IV of the Commodity 
Futures Modernization Act of 2000, or exempted under section 
2(h) or 4(c) of this Act; or 
"(2) is a security futures product cleared by a clearing 
agency registered under the Securities Exchange Act of 1934. 
"(b) 
VOLUNTARY 
REGISTRATION.—^A 
derivatives 
clearing 
organization that clears agreements, contracts, or transactions 
excluded from this Act by section 2(c), 2(d), 2(f), or 2(g) of this 
Act or title IV of the Commodity Futures Modernization Act of 
2000, or exempted under section 2(h) or 4(c) of this Act, or other 
over-the-counter derivative instruments (as defined in the Federal 
Deposit Insurance Corporation Improvement Act of 1991) may reg-
ister with the Commission as a derivatives clearing organization. 
"(c) REGISTRATION OF DERIVATIVES CLEARING ORGANIZATIONS.— 
"(1) APPLICATION.—^A person desiring to register as a 
derivatives clearing organization shall submit to the Commis-
sion an application in such form and containing such informa-
tion as the Commission may require for the purpose of making 
the determinations required for approval under paragraph (2). 
"(2) CORE PRINCIPLES.— 
"(A) IN GENERAL.—To be registered and to maintain 
registration as a derivatives clearing organization, an 
applicant shall demonstrate to the Commission that the 
applicant complies with the core principles specified in 
this paragraph. The applicant shall have reasonable discre-
tion in establishing the manner in which it complies with 
the core principles. 
"(B) FINANCIAL RESOURCES.—The applicant shall dem-
onstrate that the applicant has adequate finsmcial, oper-
ational, and managerial resources to discharge the respon-
sibilities of a derivatives clearing organization. 
"(C) 
PARTICIPANT AND 
PRODUCT ELIGIBILITY.—The 
applicant shall establish— 
"(i) appropriate admission and continuing eligi-
bility standards (including appropriate minimum finan-
cial requirements) for members of and participants 
in the organization; and 
"(ii) appropriate standards for determining eligi-
bility of agreements, contracts, or transactions submit-
ted to the applicant. 
"(D) RISK MANAGEMENT,—The applicant shall have the 
ability to manage the risks associated with discharging 
the responsibilities of a derivatives clearing organization 
through the use of appropriate tools and procedures. 
"(E) SETTLEMENT PROCEDURES.—The applicant shall 
have the ability to— 
"(i) complete settlements on a timely basis under 
varying circumstances; 
"(ii) maintain an adequate record of the flow of 
funds 
associated with each treinsaction that 
the 
applicant clears; and 
"(iii) comply with the terms and conditions of any 
permitted netting or offset arrangements with other 
clearing organizations. 
114 STAT. 2763A-398 
PUBLIC LAW 106-554—APPENDIX E 
"(F) TREATMENT OF FUNDS.—The applicant shall have 
standards and procedures designed to protect and ensure 
the safety of member and participant funds. 
"(G) DEFAULT RULES AND PROCEDURES.—The applicant 
shall have rules and procedures designed to allow for effi-
cient, fair, and safe management of events when members 
or participants become insolvent or otherwise default on 
their obligations to the derivatives clearing organization. 
"(H) RULE ENFORCEMENT.—^The applicant shall— 
"(i) 
maintain 
adequate 
arrangements 
and 
resources for the effective monitoring and enforcement 
of compliance with rules of the applicant and for resolu-
tion of disputes; and 
"(ii) have the authority and ability to discipline, 
limit, suspend, or terminate a member's or partici-
pant's activities for violations of rules of the applicant. 
"(I) SYSTEM SAFEGUARDS.—The applicant shall dem-
onstrate that the applicant— 
"(i) has established and will maintain a program 
of oversight and risk analysis to ensure that the auto-
mated systems of the applicant function properly and 
have adequate capacity and security; and 
"(ii) has established and will maintain emergency 
procedures and a plan for disaster recovery, and will 
periodically test backup facilities sufficient to ensure 
daily processing, clearing, and settlement of trans-
actions. 
"(J) REPORTING.—The applicant shall provide to the 
Commission all information necessary for the Commission 
to conduct the oversight function of the applicant with 
respect to the activities of the derivatives clearing organiza-
tion. 
"(K) RECORDKEEPING.—^The applicant shall maintain 
records of all activities related to the business of the 
applicant as a derivatives clearing organization in a form 
and manner acceptable to the Commission for a period 
of 5 years. 
"(L) PUBLIC INFORMATION.—The applicant shall make 
information concerning the rules and operating procedures 
governing the clearing and settlement systems (including 
default procedures) available to market participants. 
"(M) INFORMATION-SHARING.—The applicant shall— 
"(i) enter into and abide by the terms of all appro-
priate and applicable domestic and international 
information-sharing agreements; and 
"(ii) use relevant information obtained from the 
agreements in carrying out the clearing organization's 
risk management program. 
"(N) ANTITRUST CONSIDERATIONS.—Unless appropriate 
to achieve the purposes of this Act, the derivatives clearing 
organization shall avoid— 
"(i) adopting any rule or taking any action that 
results in any unreasonable restraint of trade; or 
"(ii) imposing any material anticompetitive burden 
on trading on the contract market. 
"(3) ORDERS 
CONCERNING 
COMPETITION.—^A derivatives 
clearing organization may request the Commission to issue 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-399 
an order concerning whether a rule or practice of the applicant 
is the least anticompetitive means of achieving the objectives, 
purposes, and policies of this Act. 
"(d) 
EXISTING 
DERIVATIVES 
CLEARING 
ORGANIZATIONS.—A 
derivatives clearing organization shall be deemed to be registered 
under this section to the extent that the derivatives clearing 
organization clears agreements, contracts, or transactions for a 
board of trade that has been designated by the Commission as 
a contract market for such agreements, contracts, or transactions 
before the date of the enactment of this section. 
"(e) APPOINTMENT OF TRUSTEE.— 
"(1) IN GENERAL.—If a proceeding under section 5e results 
in the suspension or revocation of the registration of a deriva-
tives clearing organization, or if a derivatives clearing organiza-
tion withdraws from registration, the Commission, on notice 
to the derivatives clearing organization, may apply to the appro-
priate United States district court where the derivatives clear-
ing organization is located for the appointment of a trustee. 
"(2) ASSUMPTION OF JURISDICTION.—If the Commission 
applies for appointment of a trustee under paragraph (1)— 
"(A) the court may take exclusive jurisdiction over 
the derivatives clearing organization and the records and 
assets of the derivatives clearing orgsmization, wherever 
located; and 
"(B) if the court takes jurisdiction under subparagraph 
(A), the court shall appoint the Commission, or a person 
designated by the Commission, as trustee with power to 
take possession and continue to operate or terminate the 
operations of the derivatives clearing organization in an 
orderly manner for the protection of participants, subject 
to such terms and conditions as the court may prescribe. 
"(f) LINKING OF REGULATED CLEARING FACILITIES.— 
"(1) IN GENERAL.—The Commission shall facilitate the link-
ing or coordination of derivatives clearing organizations reg-
istered under this Act with other regulated clearance facilities 
for the coordinated settlement of cleared transactions. 
"(2) COORDINATION.—In carrying out paragraph (1), the 
Commission shall coordinate with the Federal banking agencies 
and the Securities and Exchange Commission.". 
SEC. 113. COMMON PROVISIONS APPLICABLE TO REGISTERED ENTI-
TIES. 
The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended 
by inserting after section 5b (as added by section 112(f)) the follow-
ing: 
"SEC. 5c. COMMON PROVISIONS APPLICABLE TO REGISTERED ENTI-
TIES. 
"(a) 
ACCEPTABLE 
BUSINESS PRACTICES UNDER 
CORE 
PRIN-
CIPLES.— 
"(1) IN GENERAL.—Consistent with the purposes of this 
Act, the Commission may issue interpretations, or approve 
interpretations submitted to the Commission, of sections 5(d), 
5a(d), and 5b(d)(2) to describe what would constitute an accept-
able business practice under such sections. 
"(2) EFFECT OF INTERPRETATION.—^An interpretation issued 
under paragraph (1) shall not provide the exclusive means 
for complying with such sections. 
114 STAT. 2763A-400 
PUBLIC LAW 106-554—APPENDIX E 
"(b) DELEGATION OF FUNCTIONS UNDER CORE PRINCIPLES.— 
"(1) IN GENERAL.—^A contract market or derivatives trans-
action execution facility may comply with any applicable core 
principle through delegation of any relevant function to a reg-
istered futures association or another registered entity. 
"(2) RESPONSIBILITY.—^A contract market or derivatives 
transaction execution facility that delegates a function under 
paragraph (1) shall remain responsible for carrying out the 
function. 
"(3) NONCOMPLIANCE.—If a contract market or derivatives 
transaction execution facility that delegates a function under 
paragraph (1) becomes aware that a delegated function is not 
being performed as required under this Act, the contract market 
or derivatives transaction execution facility shall promptly take 
steps to address the noncompliance. 
"(c) NEW CONTRACTS, NEW RULES, AND RULE AMENDMENTS.— 
"(1) IN GENERAL,—Subject to paragraph (2), a registered 
entity may elect to list for trading or accept for clearing any 
new contract or other instrument, or may elect to approve 
and implement any new rule or rule amendment, by providing 
to the Commission (and the Secretary of the Treasury, in the 
case of a contract of sale of a government security for future 
delivery (or option on such a contract) or a rule or rule amend-
ment specifically related to such a contract) a written certifi-
cation that the new contract or instrument or clearing of the 
new contract or instrument, new rule, or rule amendment com-
plies with this Act (including regulations under this Act). 
"(2) PRIOR APPROVAL.— 
"(A) IN GENERAL.—^A registered entity may request that 
the Commission grant prior approval to any new contract 
or other instrument, new rule, or rule amendment. 
"(B) PRIOR APPROVAL REQUIRED.—Notwithstanding any 
other provision of this section, a designated contract market 
shall submit to the Commission for prior approval each 
rule amendment that materially changes the terms and 
conditions, as determined by the Commission, in any con-
tract of sale for future delivery of a commodity specifically 
enumerated in section la(4) (or any option thereon) traded 
through its facilities if the rule amendment applies to 
contracts and delivery months which have already been 
listed for trading and have open interest. 
"(C) DEADLINE.—If prior approval is requested under 
subparagraph (A), the Commission shall take final action 
on the request not later than 90 days after submission 
of the request, unless the person submitting the request 
agrees to an extension of the time limitation established 
under this subparagraph. 
"(3) APPROVAL.—The Commission shall approve any such 
new contract or instrument, new rule, or rule amendment 
unless the Commission finds that the new contract or 
instrument, new rule, or rule amendment would violate this 
Act. 
"(d) VIOLATION OF CORE PRINCIPLES.— 
"(1) IN GENERAL.—If the Commission determines, on the 
basis of substantial evidence, that a registered entity is violat-
ing any applicable core principle specified in section 5(d), 5a(d), 
or 5b(d)(2), the Commission shall— 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-401 
"(A) notify the registered entity in writing of the deter-
mination; and 
"(B) afford the registered entity an opportunity to make 
appropriate changes to bring the registered entity into 
comphance with the core principles. 
"(2) FAILURE TO MAKE CHANGES.—If, not later than 30 
days after receiving a notification under paragraph (1), a reg-
istered entity fails to make changes that, in the opinion of 
the Commission, are necessary to comply with the core prin-
ciples, the Commission may take further action in accordance 
with this Act. 
"(e) RESERVATION OF EMERGENCY AUTHORITY.—^Nothing in this 
section shall limit or in any way affect the emergency powers 
of the Commission provided in section 8a(9).". 
SEC. 
1
1
4
. 
EXEMPT 
BOARDS 
OF 
TRADE. 
The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended 
by inserting after section 5c (as added by section 113) the following: 
"SEC. 
5
d
. 
EXEMPT 
BOARDS 
OF 
TRADE. 
"(a) ELECTION TO REGISTER WITH THE COMMISSION.—A board 
of trade that meets the requirements of subsection (b) of this 
section may operate as an exempt board of trade on receipt from 
the board of trade of a notice, provided in such manner as the 
Commission may by rule or regulation prescribe, that the board 
of trade elects to operate as an exempt board of trade. Except 
as otherwise provided in this section, no provision of this Act 
(other than subparagraphs (C) and (D) of sections 2(a)(1) and 
12(e)(2)(B)) shall apply with respect to a contract of sale of a 
commodity for future delivery (or option on such a contract) traded 
on or through the facilities of an exempt board of trade. 
"(b) CRITERIA FOR EXEMPTION.—To qualify for an exemption 
under subsection (a), a board of trade shall limit trading on or 
through the facilities of the board of trade to contracts of sale 
of a commodity for future delivery (or options on such contracts 
or on a commodity)— 
"(1) for which the underlying commodity has— 
"(A) a nearly inexhaustible deliverable supply; 
"(B) a deliverable supply that is sufficiently large, and 
a cash market sufficiently liquid, to render any contract 
traded on the commodity highly unlikely to be susceptible 
to the threat of manipulation; or 
"(C) no cash market; 
"(2) that are entered into only between persons that are 
eligible contract participants at the time at which the persons 
enter into the contract; and 
"(3) that are not contracts of sale (or options on such 
a contract or on a commodity) for future delivery of any security, 
including any group or index of securities or any interest in, 
or based on the value of, any security or any group or index 
of securities. 
"(c) ANTIMANIPULATION REQUIREMENTS.—A party to a contract 
of sale of a commodity for future delivery (or option on such a 
contract or on a commodity) that is traded on an exempt board 
of trade shall be subject to sections 4b, 4c(b), 4o, 6(c), and 9(a)(2), 
and the Commission shall enforce those provisions with respect 
to any such trading. 
114 STAT. 2763A-402 
PUBLIC LAW 106-554—APPENDIX E 
"(d) PRICE DISCOVERY.—If the Commission finds that an exempt 
board of trade is a significant source of price discovery for trans-
actions in the cash market for the commodity underlying any con-
tract, agreement, or transaction traded on or through the facihties 
of the board of trade, the board of trade shall disseminate publicly 
on a daily basis trading volume, opening and closing price ranges, 
open interest, and other trading data as appropriate to the market. 
"(e) JURISDICTION.—The Commission shall have exclusive juris-
diction over any account, agreement, contract, or transaction involv-
ing a contract of sale of a commodity for future delivery, or option 
on such a contract or on a commodity, to the extent that the 
account, agreement, contract, or transaction is traded on an exempt 
board of trade. 
"(f) SUBSIDIARIES.—^A board of trade that is designated as a 
contract market or registered as a derivatives transaction execution 
facility may operate an exempt board of trade by establishing a 
separate subsidiary or other legal entity and otherwise satisfying 
the requirements of this section. 
"(g) An exempt board of trade that meets the requirements 
of subsection (b) shall not represent to any person that the board 
of trade is registered with, or designated, recognized, licensed, 
or approved by the Commission.". 
SEC. 115. SUSPENSION OR REVOCATION OF DESIGNATION AS CON-
TRACT MARKET. 
Section 5e of the Commodity Exchange Act (7 U.S.C. 7b) (as 
redesignated by section 20(1)) is amended to read as follows: 
"SEC. 5e. SUSPENSION OR REVOCATION OF DESIGNATION AS REG-
ISTERED ENTITY. 
"The failure of a registered entity to comply with any provision 
of this Act, or any regulation or order of the Commission under 
this Act, shall be cause for the suspension of the registered entity 
for a period not to exceed 180 days, or revocation of designation 
as a registered entity in accordance with the procedures and subject 
to the judicial review provided in section 6(b).". 
SEC. 116. AUTHORIZATION OF APPROPRIATIONS. 
Section 12(d) of the Commodity Exchange Act (7 U.S.C. 16(d)) 
is amended by striking "2000" and inserting "2005". 
SEC. 117. PREEMPTION. 
Section 12 of the Commodity Exchange Act (7 U.S.C. 16(e)) 
is amended by striking subsection (e) and inserting the following: 
"(e) RELATION TO OTHER LAW, DEPARTMENTS, OR AGENCIES.— 
"(1) Nothing in this Act shall supersede or preempt— 
"(A) criminal prosecution under any Federal criminal 
statute; 
"(B) the application of any Federal or State statute 
(except as provided in paragraph (2)), including any rule 
or regulation thereunder, to any transaction in or involving 
any commodity, product, right, service, or interest— 
"(i) that is not conducted on or subject to the 
rules of a registered entity or exempt board of trade; 
"(ii) (except as otherwise specified by the- Commis-
sion by rule or regulation) that is not conducted on 
or subject to the rules of any board of trade, exchange, 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-403 
or market located outside the United States, its terri-
tories or possessions; or 
"(iii) that is not subject to regulation by the 
Commission under section 4c or 19; or 
"(C) the application of any Federal or State statute, 
including any rule or regulation thereunder, to any person 
required to be registered or designated under this Act 
who shall fail or refuse to obtain such registration or des-
ignation. 
"(2) This Act shall supersede and preempt the application 
of any State or local law that prohibits or regulates gaming 
or the operation of bucket shops (other than antifraud provi-
sions of general applicability) in the case o
f
— 
"(A) an electronic trading facility excluded under sec-
tion 2(e) of this Act; and 
"(B) an agreement, contract, or transaction that is 
excluded from this Act under section 2(c), 2(d), 2(f), or 
2(g) of this Act or title IV of the Commodity Futures 
Modernization Act of 2000, or exempted under section 2(h) 
or 4(c) of this Act (regardless of whether any such agree-
ment, contract, or transaction is otherwise subject to this 
Act).". 
SEC. 118. PREDISPUTE RESOLUTION AGREEMENTS FOR INSTITU-
TIONAL CUSTOMERS. 
Section 14 of the Commodity Exchange Act (7 U.S.C. 18) is 
amended by striking subsection (g) and inserting the following: 
"(g) PREDISPUTE RESOLUTION AGREEMENTS FOR INSTITUTIONAL 
CUSTOMERS.—Nothing in this section prohibits a registered futures 
commission merchant from requiring a customer that is an eligible 
contract participant, as a condition to the commission merchant's 
conducting a transaction for the customer, to enter into an agree-
ment waiving the right to file a claim under this section.". 
SEC. 119. CONSIDERATION OF COSTS AND BENEFITS AND ANTITRUST 
LAWS. 
Section 15 of the Commodity Exchange Act (7 U.S.C. 19) is 
amended by striking "SEC. 15. The Commission" and inserting 
the following: 
"SEC. 15. CONSIDERATION OF COSTS AND BENEFITS AND ANTITRUST 
LAWS. 
"(a) COSTS AND BENEFITS.— 
"(1) IN GENERAL.—Before promulgating a regulation under 
this Act or issuing an order (except as provided in paragraph 
(3)), the Commission shall consider the costs and benefits of 
the action of the Commission. 
"(2) CONSIDERATIONS.—The costs and benefits of the pro-
posed Commission action shall be evaluated in light of— 
"(A) considerations of protection of market participants 
and the public; 
"(B) considerations of the efficiency, competitiveness, 
and financial integrity of futures markets; 
"(C) considerations of price discovery; 
"(D) considerations of sound risk management prac-
tices; and 
"(E) other public interest considerations. 
114 STAT. 2763A-404 
PUBLIC LAW 106-554—APPENDIX E 
"(3) APPLICABILITY.—This subsection does not apply to the 
following actions of the Commission: 
"(A) An order that initiates, is part of, or is the result 
of an adjudicatory or investigative process of the Commis-
sion. 
"(B) An emergency action. 
"(C) A finding of fact regarding compliance with a 
requirement of the Commission. 
"(b) ANTITRUST LAWS.—The Commission". 
SEC. 
120. 
CONTRACT 
ENFORCEMENT 
BETWEEN 
ELIGIBLE 
COUNTERPARTIES. 
Section 22(a) of the Commodity Exchange Act (7 U.S.C. 25(a)) 
is amended by adding at the end the following: 
"(4) 
CONTRACT 
ENFORCEMENT 
BETWEEN 
ELIGIBLE 
COUNTERPARTIES.—No agreement, 
contract, or 
transaction 
between eligible contract participants or persons reasonably 
believed to be eligible contract participants, and no hybrid 
instrument sold to any investor, shall be void, voidable, or 
unenforceable, and no such party shall be entitled to rescind, 
or recover any payment made with respect to, such an agree-
ment, contract, transaction, or instrument under this section 
or any other provision of Federal or State law, based solely 
on the failure of the agreement, contract, transaction, or 
instrument to comply with the terms or conditions of an exemp-
tion or exclusion from any provision of this Act or regulations 
of the Commission.". 
SEC. 121. SPECIAL PROCEDURES TO ENCOURAGE AND FACILITATE 
BONA FIDE HEDGING BY AGRICULTURAL PRODUCERS. 
The Commodity Exchange Act, as otherwise amended by this 
Act, is amended by inserting after section 4o the following: 
"SEC. 4p. SPECIAL PROCEDURES TO ENCOURAGE AND FACILITATE 
BONA FIDE HEDGING BY AGRICULTURAL PRODUCERS. 
"(a) AUTHORITY.—The Commission shall consider issuing rules 
or orders which— 
"(1) prescribe procedures under which each contract market 
is to provide for orderly delivery, including temporary storage 
costs, of any agricultural commodity enumerated in section 
la(4) which is the subject of a contract for purchase or sale 
for future delivery; 
"(2) increase the ease with which domestic agricultural 
producers may participate in contract markets, including by 
addressing cost and margin requirements, so as to better enable 
the producers to hedge price risk associated with their produc-
tion; 
"(3) provide flexibility in the minimum quantities of such 
agricultural commodities that may be the subject of a contract 
for purchase or sale for future delivery that is traded on a 
contract market, to better allow domestic agricultural producers 
to hedge such price risk; and 
"(4) encourage contract markets to provide information and 
otherwise facilitate the participation of domestic agricultural 
producers in contract markets. 
"(b) REPORT.—^Within 1 year after the date of the enactment 
of this section, the Commission shall submit to the Committee 
on Agriculture of the House of Representatives and the Committee 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-405 
on Agriculture, Nutrition, and Forestry of the Senate a report 
on the steps it has taken to implement this section and on the 
activities of contract markets pursuant to this section.". 
SEC. 122. RULE OF CONSTRUCTION. 
Except as expressly provided in this Act or an amendment 
made by this Act, nothing in this Act or an amendment made 
by this Act supersedes, affects, or otherwise limits or expands 
the scope and applicability of laws governing the Securities and 
Exchange Commission. 
SEC. 123. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) COMMODITY EXCHANGE ACT.— 
(1) Section la of the Commodity Exchange Act (7 U.S.C. 
la) (as amended by section 101) is amended— 
(A) in paragraphs (5), (6), (16), (17), (20), and (23), 
by inserting "or derivatives transaction execution facility" 
after "contract market" each place it appears; and 
(B) in paragraph (24)— 
(i) in the paragraph heading, by striking "CON-
TRACT MARKET" and inserting "REGISTERED ENTITY"; 
(ii) by striking "contract market" each place it 
appears and inserting "registered entity"; and 
(iii) by adding at the end the following: 
"A participant in an alternative trading system that is des-
ignated as a contract market pursuant to section 5f is deemed 
a member of the contract market for purposes of transactions 
in security futures products through the contract market.". 
(2) Section 2 of the Commodity Exchange Act (7 U.S.C. 
2, 2a, 4, 4a, 3) is amended— 
(A) by striking " S E C 2. (a)(l)(A)(i) The" and inserting 
the following: 
"SEC. 2. JURISDICTION OF COMMISSION; LIABILITY OF PRINCIPAL FOR 
ACT OF AGENT; COMMODITY FUTURES TRADING COMMIS-
SION; TRANSACTION IN INTERSTATE COMMERCE. 
"(a) JURISDICTION OF COMMISSION; COMMODITY FUTURES TRAD-
ING COMMISSION.— 
"(1) JURISDICTION OF COMMISSION.— 
"(A) IN GENERAL.—^The"; and 
(B) in subsection (a)(1)— 
(i) in subparagraph (A) (as amended by subpara-
graph (A) of this paragraph)— 
(I) by striking "subparagraph (B) of this 
subparagraph" and inserting "subparagraphs (C) 
and (D) of this paragraph and subsections (c) 
through (i) of this section"; 
(II) by striking "contract market designated 
pursuant to section 5 of this Act" and inserting 
"contract market designated or derivatives trans-
action execution facility registered pursuant to sec-
tion 5 or 5a"; 
(III) by striking clause (ii); and 
(IV) in clause (iii), by striking "(iii) The" and 
inserting the following: 
"(B) LIABILITY OF PRINCIPAL FOR ACT OF AGENT.—The"; 
and 
(ii) in subparagraph (B)— 
114 STAT. 2763A-406 
PUBLIC LAW 106-554—APPENDIX E 
(I) by striking "(B)" and inserting "(C)"; 
(II) in clause (v)— 
(aa) by striking "section 3 of the Securities 
Act of 1933"; and 
(bb) by inserting "or subparagraph (D)" 
after "subparagraph"; and 
(III) by moving clauses (i) through (v) 4 ems 
to the right; 
(C) in subsection (a)(7), by striking "contract market" 
and inserting "registered entity"; 
(D) in subsection (a)(8)(B)(ii)— 
(i) in the first sentence, by striking "designation 
as a contract market" and inserting "designation or 
registration as a contract market or derivatives trans-
action execution facility"; 
(ii) in the second sentence, by striking "designate 
a board of trade as a contract market" and inserting 
"designate or register a board of trade as a contract 
market or derivatives transaction execution facility"; 
and 
(iii) in the fourth sentence, by striking "designat-
ing, or refusing, suspending, or revoking the designa-
tion of, a board of trade as a contract market involving 
transactions for future delivery referred to in this 
clause or in considering possible emergency action 
under section 8a(9) of this Act" and inserting "designat-
ing, registering, or refusing, suspending, or revoking 
the designation or registration of, a board of trade 
as a contract market or derivatives transaction execu-
tion facility involving transactions for future delivery 
referred to in this clause or in considering any possible 
action under this Act (including without limitation 
emergency action under section 8a(9))", and by striking 
"designation, suspension, revocation, or emergency 
action" 
and 
inserting 
"designation, 
registration, 
suspension, revocation, or action"; and 
(E) in subsection (a), by moving paragraphs (2) through 
(9) 2 ems to the right. 
(3) Section 4 of the Commodity Exchange Act (7 U.S.C. 
6) is amended— 
(A) in subsection (a)— 
(i) in paragraph (1), by striking "designated by 
the Commission as a 'contract market' for" and insert-
ing "designated or registered by the Commission as 
a contract market or derivatives transaction execution 
facility for"; 
(ii) in paragraph (2), by striking "member of such"; 
and 
(iii) in paragraph (3), by inserting "or derivatives 
transaction execution facility" after "contract market"; 
and 
(B) in subsection (c)— 
(i) in paragraph (1)— 
(I) by striking "designated as a contract mar-
ket" and inserting "designated or registered as 
a contract market or derivatives transaction execu-
tion facility"; and 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-407 
(II) by striking "section 2(a)(1)(B)" and insert-
ing "subparagraphs (C)(ii) and (D) of section 
2(a)(1), except that the Commission and the Securi-
ties and Exchange Commission may by rule, regu-
lation, or order jointly exclude any agreement, con-
tract, or transaction from section 2(a)(1)(D)"; and 
(ii) in paragraph (2)(B)(ii), by inserting "or deriva-
tives transaction execution facility" after "contract mar-
ket". 
(4) Section 4a of the Commodity Exchange Act (7 U.S.C. 
6a) is amended— 
(A) in subsection (a)— 
(i) in the first sentence, by inserting "or derivatives 
transaction execution facilities" after "contract mar-
kets"; and 
(ii) in the second sentence, by inserting "or deriva-
tives transaction execution facility" after "contract mar-
ket"; 
(B) in subsection (b)— 
(i) in paragraph (1), by inserting ", or derivatives 
transaction execution facility or facilities," after "mar-
kets"; and 
(ii) in paragraph (2), by inserting "or derivatives 
transaction execution facility" after "contract market"; 
and 
(C) in subsection (e)— 
(i) by striking "contract market or" each place it 
appears and inserting "contract market, derivatives 
transaction execution facility, or"; 
(ii) by striking "licensed or designated" each place 
it appears and inserting "licensed, designated, or reg-
istered"; and 
(iii) by striking "contract market, or" and inserting 
"contract market or derivatives transaction execution 
facility, or". 
(5) Section 4b(a) of the Commodity Exchange Act (7 U.S.C. 
6b(a)) is amended by striking "contract market" each place 
it appears and inserting "registered entity". 
(6) Sections 4c(g), 4d, 4e, and 4f of the Commodity 
Exchange Act (7 U.S.C. 6c(g), 6d, 6e, 6f) are amended by 
inserting "or derivatives transaction execution facility" after 
"contract market" each place it appears. 
(7) Section 4g of the Commodity Exchange Act (7 U.S.C. 
6g) is amended— 
(A) in subsection (b), by striking "clearinghouse and 
contract market" and inserting "registered entity"; and 
(B) in subsection (f), by striking "clearinghouses, con-
tract markets, and exchanges" and inserting "registered 
entities". 
(8) Section 4h of the Commodity Exchange Act (7 U.S.C. 
6h) is amended by striking "contract market" each place it 
appears and inserting "registered entity". 
(9) Section 4i of the Commodity Exchange Act (7 U.S.C. 
6i) is amended in the first sentence by inserting "or derivatives 
transaction execution facility" after "contract market". 
114 STAT. 2763A-408 
PUBLIC LAW 106-554—APPENDIX E 
(10) Section 41 of the Commodity Exchange Act (7 U.S.C. 
61) is amended by inserting "or derivatives transaction execu-
tion facilities" after "contract markets" each place it appears. 
(11) Section 4p of the Commodity Exchange Act (7 U.S.C. 
6p) is amended— 
(A) in the third sentence of subsection (a), by striking 
"Act or contract markets" and inserting "Act, contract mar-
kets, or derivatives transaction execution facilities"; and 
(B) in subsection (b), by inserting "derivatives trans-
action execution facility," after "contract market,". 
(12) Section 6 of the Commodity Exchange Act (7 U.S.C. 
8, 9, 9a, 9b, 13b, 15) is amended— 
(A) in subsection (a)— 
(i) in the first sentence— 
(I) by striking "board of trade desiring to be 
designated a 'contract market' shall make applica-
tion to the Commission for such designation" and 
inserting "person desiring to be designated or reg-
istered as a contract market or derivatives trans-
action execution facility shall make application to 
the Commission for the designation or registra-
tion"; 
(II) by striking "above conditions" and insert-
ing "conditions set forth in this Act"; and 
(III) by striking "above requirements" and 
inserting "the requirements of this Act"; 
(ii) in the second sentence, by striking "designation 
as a contract market within one year" and inserting 
"designation or registration as a contract market or 
derivatives transaction execution facility within 180 
days"; 
(iii) in the third sentence— 
(I) by striking "board of trade" and inserting 
"person"; and 
(II) by striking "one-year period" and inserting 
"180-day period"; and 
(iv) in the last sentence, by striking "designate 
as a 'contract market' any board of trade that has 
made application therefor, such board of trade" and 
inserting "designate or register as a contract market 
or derivatives transaction execution facility any person 
that has made application therefor, the person"; 
(B) in subsection (b)— 
(i) in the first sentence— 
(I) by striking "designation of any board of 
trade as a 'contract market' upon" and inserting 
"designation or registration of any contract market 
or derivatives transaction execution facility on"; 
(II) by striking "board of trade" each place 
it appears and inserting "contract market or 
derivatives transaction execution facility"; and 
(III) by striking "designation as set forth in 
section 5 of this Act" and inserting "designation 
or registration as set forth in sections 5 through 
5b or section 5f'; 
(ii) in the second sentence— 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-409 
(I) by striking "board of trade" the first place 
it appears and inserting "contract market or 
derivatives transaction execution facility"; and 
(II) by striking "board of trade" the second 
and third places it appears and inserting "person"; 
and 
(iii) in the last sentence, by striking "board of 
trade" each place it appears and inserting "person"; 
(C) in subsection (c)— 
(i) by striking "contract market" each place it 
appears and inserting "registered entity"; 
(ii) by striking "contract markets" each place it 
appears and inserting "registered entities"; and 
(iii) by striking "trading privileges" each place it 
appears and inserting "privileges"; 
(D) in subsection (d), by striking "contract market" 
each place it appears and inserting "registered entity"; 
and 
(E) in subsection (e), by striking "trading on all contract 
markets" each place it appears and inserting "the privileges 
of all registered entities". 
(13) Section 6a of the Commodity Exchange Act (7 U.S.C. 
10a) is amended— 
(A) in the first sentence of subsection (a), by striking 
"designated as a 'contract market' shall" and inserting "des-
ignated or registered as a contract market or a derivatives 
transaction execution facility"; and 
(B) in subsection (b), by striking "designated as a con-
tract market" and inserting "designated or registered as 
a contract market or a derivatives transaction execution 
facility". 
(14) Section 6b of the Commodity Exchange Act (7 U.S.C. 
13a) is amended— 
(A) by striking "contract market" each place it appears 
and inserting "registered entity"; 
(B) in the first sentence, by striking "designation as 
set forth in section 5 of this Act" and inserting "designation 
or registration as set forth in sections 5 through 5c"; and 
(C) in the last sentence, by striking "the contract mar-
ket's ability" and inserting "the ability of the registered 
entity". 
(15) Section 6c(a) of the Commodity Exchange Act (7 U.S.C. 
13a-l(a)) by striking "contract market" and inserting "reg-
istered entit}^'. 
(16) Section 6d(l) of the Commodity Exchange Act (7 U.S.C. 
13a-2(l)) is amended by inserting "derivatives transaction 
execution facility," after "contract market,". 
(17) Section 7 of the Commodity Exchange Act (7 U.S.C. 
11) is amended— 
(A) in the first sentence— 
(i) by striking "board of trade" and inserting "per-
son"; 
(ii) by inserting "or registered" after "designated"; 
(iii) by inserting "or registration" after "designa-
tion" each place it appears; and 
(iv) by striking "contract market" each place it 
appears and inserting "registered entity"; 
79-194 O-00-15:QL3Part5 
114 STAT. 2763A-410 
PUBLIC LAW 106-554—APPENDIX E 
(B) in the second sentence— 
(i) by striking "designation of such board of trade 
as a contract market" and inserting "designation or 
registration of the registered entity"; and 
(ii) by striking "contract markets" and inserting 
"registered entities"; and 
(C) in the last sentence— 
(i) by striking "board of trade" and inserting "per-
son"; and 
(ii) by striking "designated again a contract mar-
ket" and inserting "designated or registered again a 
registered entity". 
(18) Section 8(c) of the Commodity Exchange Act (7 U.S.C. 
12(c)) is amended in the first sentence by striking "board of 
trade" and inserting "registered entity". 
(19) Section 8a of the Commodity Exchange Act (7 U.S.C. 
12a) is amended— 
(A) by striking "contract market" each place it appears 
and inserting "registered entity"; and 
(B) in paragraph (2)(F), by striking "trading privileges" 
and inserting "privileges". 
(20) Sections 8b and 8c(e) of the Commodity Exchange 
Act (7 U.S.C. 12b, 12c(e)) are amended by striking "contract 
market" each place it appears and inserting "registered entity". 
(21) Section 8e of the Commodity Exchange Act (7 U.S.C. 
12e) is repealed. 
(22) Section 9 of the Commodity Exchange Act (7 U.S.C. 
13) is amended by striking "contract market" each place it 
appears and inserting "registered entity". 
(23) Section 14 of the Commodity Exchange Act (7 U.S.C. 
18) is amended— 
(A) in subsection (a)(1)(B), by striking "contract mar-
ket" and inserting "registered entity"; and 
(B) in subsection (f), by striking "contract markets" 
and inserting "registered entities". 
(24) Section 17 of the Commodity Exchange Act (7 U.S.C. 
21) is amended by striking "contract market" each place it 
appears and inserting "registered entity". 
(25) Section 22 of the Commodity Exchange Act (7 U.S.C. 
25) is amended— 
(A) in subsection (a)— 
(i) in paragraph (1)— 
(I) by striking "contract market, clearing 
organization of a contract market, licensed board 
of trade," and inserting "registered entity"; and 
(II) in subparagraph (C)(i), by striking "con-
tract market" and inserting "registered entity"; 
(ii) in paragraph (2), by striking "sections 5a(ll)," 
and inserting "sections 5(d)(13), 5b(b)(l)(E),"; and 
(iii) in paragraph (3), by striking "contract market" 
and inserting "registered entity"; and 
(B) in subsection (b)— 
Ci) in paragraph (1)— 
(I) by striking "contract market or clearing 
organization of a contract market" and inserting 
"registered entity"; 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-411 
(II) by striking "section 5a(8) and section 5a(9) 
of this Act" and inserting "sections 5 through 5c"; 
(III) by striking "contract market, clearing 
organization of a contract market, or licensed 
board of trade" and inserting "registered entity"; 
and 
(IV) by striking "contract market or licensed 
board of trade" and inserting "registered entity"; 
(ii) in paragraph (3)— 
(I) by striking "a contract market, clearing 
organization, licensed board of trade," and insert-
ing "registered entity"; and 
(II) by striking "contract market, licensed 
board of trade" and inserting "registered entity"; 
(iii) in paragraph (4), by striking "contract market, 
licensed board of trade, clearing organization," and 
inserting "registered entity"; and 
(iv) in paragraph (5), by striking "contract market, 
licensed board of trade, clearing organization," and 
inserting "registered entity", 
(b) FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT 
ACT OF 1991.—Section 402(2) of the Federal Deposit Insurance 
Corporation Improvement Act of 1991 (12 U.S.C. 4402(2)) is amend-
ed by striking subparagraph (B) and inserting the following: 
"(B) that is registered as a derivatives clearing 
organization under section 5b of the Commodity Exchange 
Act.". 
SEC. 124. PRIVACY. 
The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended 
by inserting after section 5f (as added by section 252) the following: 
"SEC. 5g. PRIVACY. 
"(a) TREATMENT AS FINANCIAL INSTITUTIONS.—^Notwithstanding 
section 509(3 )(B) of the Gramm-Leach-Bliley Act, any futures 
commission merchant, commodity trading advisor, commodity pool 
operator, or introducing broker that is subject to the jurisdiction 
of the Commission under this Act with respect to any financial 
activity shall be treated as a financial institution for purposes 
of title V of such Act with respect to such financial activity. 
"(b) TREATMENT OF C F T C AS FEDERAL FUNCTIONAL REGU-
LATOR.—For purposes of title V of such Act, the Commission shall 
be treated as a Federal functional regulator within the meaning 
of section 509(2) of such Act and shall prescribe regulations under 
such title within 6 months after the date of the enactment of 
this section.". 
SEC. 125. REPORT TO CONGRESS. 
(a) The Commodity Futures Trading Commission (in this sec-
tion referred to as the "Commission") shall undertake and complete 
a study of the Commodity Exchange Act (in this section referred 
to as "the Act") and the Commission's rules, regulations and orders 
governing the conduct of persons required to be registered under 
the Act, not later than 1 year after the date of the enactment 
of this Act. The study shall identify— 
(1) the core principles and interpretations of acceptable 
business practices that the Commission has adopted or intends 
114 STAT. 2763A-412 
PUBLIC LAW 106-554—APPENDIX E 
to adopt to replace the provisions of the Act and the Commis-
sion's rules and regulations thereunder; 
(2) the rules and regulations that the Commission has 
determined must be retained and the reasons therefor; 
(3) the extent to which the Commission believes it can 
effect the changes identified in paragraph (1) of this subsection 
through its exemptive authority under section 4(c) of the Act; 
and 
(4) the regulatory functions the Commission currently per-
forms that can be delegated to a registered futures association 
(within the meaning of the Act) and the regulatory functions 
that the Commission has determined must be retained £md 
the reasons therefor. 
(b) In conducting the study, the Commission shall solicit the 
views of the public as well as Commission registrants, registered 
entities, and registered futures associations (all within the meaning 
of the Act). 
(c) The Commission shall transmit to the Committee on Agri-
culture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report of the 
results of its study, which shall include an analysis of comments 
received. 
SEC. 126. INTERNATIONAL ACTIVITIES OF THE COMMODITY FUTURES 
TRADING COMMISSION. 
(a) FINDINGS.—^The Congress finds that— 
(1) derivatives markets serving United States industry are 
increasingly global in scope; 
(2) developments in data processing and communications 
technologies enable users of risk management services to ana-
lyze and compare those services on a worldwide basis; 
(3) financial services regulatory policy must be flexible 
to account for rapidly changing derivatives industry business 
practices; 
(4) regulatory impediments to the operation of global busi-
ness interests can compromise the competitiveness of United 
States businesses; 
(5) events that disrupt financial markets and economies 
are often global in scope, require rapid regulatory response, 
and coordinated regulatory effort across international jurisdic-
tions; 
(6) 
through 
its 
membership 
in the 
International 
Organisation of Securities 
Commissions, the Commodity 
Futures Trading Commission has promoted beneficial commu-
nication among market regulators and international regulatory 
cooperation; and 
(7) the Commodity Futures Trading Commission and other 
United States financial regulators and self-regulatory organiza-
tions should continue to foster productive and cooperative work-
ing relationships with their counterparts in foreign jurisdic-
tions. 
(b) SENSE OF THE CONGRESS.—It is the sense of the Congress 
that, consistent with its responsibilities under the Commodity 
Exchange Act, the Commodity Futures Trading Commission should, 
as part of its international activities, continue to coordinate with 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-413 
foreign regulatory authorities, to participate in international regu-
latory organizations and forums, and to provide technical assistance 
to foreign government authorities, in order to encourage— 
(1) the facilitation of cross-border transactions through the 
removal or lessening of any unnecessary legal or practical 
obstacles; 
(2) the development of internationally accepted regulatory 
standards of best practice; 
(3) the enhancement of international supervisory coopera-
tion and emergency procedures; 
(4) the strengthening of international cooperation for cus-
tomer and market protection; and 
(5) improvements in the quality and timeliness of inter-
national information sharing. 
TITLE II—COORDINATED REGULATION 
OF SECURITY FUTURES PRODUCTS 
Subtitle A—Securities Law Amendments 
SEC. 201. DEFINITIONS UNDER THE SECURITIES EXCHANGE ACT OF 
1934. 
Section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 
78c(a)) is amended— 
(1) in paragraph (10), by inserting "security future," after 
"treasury stock,"; 
(2) by striking paragraph (11) and inserting the following: 
"(11) The term 'equity security' means any stock or similar 
security; or any security future on any such security; or any 
security convertible, with or without consideration, into such 
a security, or carrying any warrant or right to subscribe to 
or purchase such a security; or any such warrant or right; 
or any other security which the Commission shall deem to 
be of similar nature and consider necessary or appropriate, 
by such rules and regulations as it may prescribe in the public 
interest or for the protection of investors, to treat as an equity 
security."; 
(3) in paragraph (13), by adding at the end the following: 
"For security futures products, such term includes any contract, 
agreement, or transaction for ftiture delivery."; 
(4) in paragraph (14), by adding at the end the following: 
"For security futures products, such term includes any contract, 
agreement, or transaction for ftiture delivery."; and 
(5) by adding at the end the following: 
"(55)(A) The term 'security future' means a contract of 
sale for ftiture delivery of a single security or of a narrow-
based security index, including any interest therein or based 
on the value thereof, except an exempted security under section 
3(a)(12) of the Securities Exchange Act of 1934 as in effect 
on the date of the enactment of the Futures Trading Act of 
1982 (other than any municipal security as defined in section 
3(a)(29) as in effect on the date of the enactment of the Futures 
Trading Act of 1982). The term 'security future' does not include 
any agreement, contract, or transaction excluded from the 
Commodity Exchange Act under section 2(c), 2(d), 2(f), or 2(g) 
114 STAT. 2763A-414 
PUBLIC LAW 106-554—APPENDIX E 
of the Commodity Exchange Act (as in effect on the date of 
the enactment of the Commodity Futures Modernization Act 
of 2000) or title IV of the Commodity Futures Modernization 
Act of 2000. 
"(B) The term 'narrow-based security index' means an 
index— 
"(i) that has 9 or fewer component securities; 
"(ii) in which a component security comprises more 
than 30 percent of the index's weighting; 
"(iii) in which the five highest weighted component 
securities in the aggregate comprise more than 60 percent 
of the index's weighting; or 
"(iv) in which the lowest weighted component securities 
comprising, in the aggregate, 25 percent of the index's 
weighting have an aggregate dollar value of average daily 
trading volume of less than $50,000,000 (or in the case 
of an index with 15 or more component securities, 
$30,000,000), except that if there are two or more securities 
with equal weighting that could be included in the calcula-
tion of the lowest weighted component securities compris-
ing, in the aggregate, 25 percent of the index's weighting, 
such securities shall be ranked from lowest to highest 
dollar value of average daily trading volume and shall 
be included in the calculation based on their ranking start-
ing with the lowest ranked security. 
"(C) Notwithstanding subparagraph (B), an index is not 
a narrow-based security index if— 
"(i)(I) it has at least nine component securities; 
"(II) no component security comprises more than 30 
percent of the index's weighting; and 
"(III) each component security is— 
"(aa) registered pursuant to section 12 of the Secu-
rities Exchange Act of 1934; 
"(bb) one of 750 securities with the largest market 
capitalization; and 
"(cc) one of 675 securities with the largest dollar 
value of average daily trading volume; 
"(ii) a board of trade was designated as a contract 
market by the Commodity Futures Trading Commission 
with respect to a contract of sale for future delivery on 
the index, before the date of the enactment of the Commod-
ity Futures Modernization Act of 2000; 
"(iii)(I) a contract of sale for future delivery on the 
index traded on a designated contract market or registered 
derivatives transaction execution facility for at least 30 
days as a contract of sale for future delivery on an index 
that was not a narrow-based security index; and 
"(II) it has been a narrow-based security index for 
no more than 45 business days over 3 consecutive calendar 
months; 
"(iv) a contract of sale for future delivery on the index 
is traded on or subject to the rules of a foreign board 
of trade and meets such requirements as are jointly estab-
lished by rule or regulation by the Commission and the 
Commodity Futures Trading Commission; 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-415 
"(v) no more than 18 months have passed since the 
date of the enactment of the Commodity Futures Mod-
ernization Act of 2000 and— 
"(I) it is traded on or subject to the rules of a 
foreign board of trade; 
"(II) the offer and sale in the United States of 
a contract of sale for future delivery on the index 
was authorized before the date of the enactment of 
the Commodity Futures Modernization Act of 2000; 
and 
"(III) the conditions of such authorization continue 
to be met; or 
"(vi) a contract of sale for future delivery on the index 
is traded on or subject to the rules of a board of trade 
and meets such requirements as are jointly established 
by rule, regulation, or order by the Commission and the 
Commodity Futures Trading Commission. 
"(D) Within 1 year after the enactment of the Commodity 
Futures Modernization Act of 2000, the Commission and the 
Commodity Futures Trading Commission jointly shall adopt 
rules or regulations that set forth the requirements under 
clause (iv) of subparagraph (C). 
"(E) An index that is a narrow-based security index solely 
because it was a narrow-based security index for more than 
45 business days over 3 consecutive calendar months pursuant 
to clause (iii) of subparagraph (C) shall not be a narrow-based 
security index for the 3 following calendar months. 
"(F) For purposes of subparagraphs (B) and (C) of this 
paragraph— 
"(i) the dollar value of average daily trading volume 
and the market capitalization shall be calculated as of 
the preceding 6 full calendar months; and 
"(ii) the Commission and the Commodity Futures Trad-
ing Commission shall, by rule or regulation, jointly specify 
the method to be used to determine market capitalization 
and dollar value of average daily trading volume. 
"(56) The term 'security futures product' means a security 
future or any put, call, straddle, option, or privilege on any 
security future. 
"(57)(A) The term 'margin', when used with respect to 
a security futures product, means the amount, tjrpe, and form 
of collateral required to secure any extension or maintenance 
of credit, or the amount, type, and form of collateral required 
as a performance bond related to the purchase, sale, or carrying 
of a security futures product. 
"(B) The terms 'margin level' and 'level of margin', when 
used with respect to a security futures product, mean the 
amount of margin required to secure any extension or mainte-
nance of credit, or the amount of margin required as a perform-
ance bond related to the purchase, sale, or carrying of a security 
futures product. 
"(C) The terms 'higher margin level' and 'higher level of 
margin', when used with respect to a security futures product, 
mean a margin level established by a national securities 
exchange registered pursuant to section 6(g) that is higher 
than the minimum amount established and in effect pursuant 
to section 7(c)(2)(B).". 
114 STAT. 2763A-416 
PUBLIC LAW 106-554—APPENDIX E 
SEC. 202. REGULATORY RELIEF FOR MARKETS TRADING SECURITY 
FUTURES PRODUCTS. 
(a) EXPEDITED REGISTRATION AND EXEMPTION.—Section 6 of 
the Securities Exchange Act of 1934 (15 U.S.C. 78f) is amended 
by adding at the end the following: 
"(g) NOTICE REGISTRATION OF SECURITY FUTURES PRODUCT 
EXCHANGES.— 
"(1) REGISTRATION REQUIRED.—An exchange that lists or 
trades security futures products may register as a national 
securities exchange solely for the purposes of trading security 
futures products if— 
"(A) the exchange is a board of trade, as that term 
is defined by the Commodity Exchange Act (7 U.S.C. la(2)), 
t h a l ^ 
"(i) has been designated a contract market by the 
Commodity Futures Trading Commission and such des-
ignation is not suspended by order of the Commodity 
Futures Trading Commission; or 
"(ii) is registered as a derivative transaction execu-
tion facility under section 5a of the Commodity 
Exchange Act and such registration is not suspended 
by the Commodity Futures Trading Commission; and 
"(B) such exchange does not serve as a market place 
for transactions in securities other than— 
"(i) security futures products; or 
"(ii) futures on exempted securities or groups or 
indexes of securities or options thereon that have been 
authorized under section 2(a)(1)(C) of the Commodity 
Exchange Act. 
"(2) REGISTRATION BY NOTICE FILING.— 
"(A) FORM AND CONTENT.—^An exchange required to 
register only because such exchange lists or trades security 
futures products may register for purposes of this section 
by filing with the Commission a written notice in such 
form as the Commission, by rule, may prescribe containing 
the rules of the exchange and such other information and 
documents concerning such exchange, comparable to the 
information and documents required for national securities 
exchanges under section 6(a), as the Commission, by rule, 
may prescribe as necessary or appropriate in the public 
interest or for the protection of investors. If such exchange 
has filed documents with the Commodity Futures Trading 
Commission, to the extent that such documents contain 
information satisfying the Commission's 
informational 
requirements, copies of such documents may be filed with 
the Commission in lieu of the required written notice. 
"(B) 
IMMEDIATE EFFECTIVENESS.—Such registration 
shall be effective contemporaneously with the submission 
of notice, in written or electronic form, to the Commission, 
except that such registration shall not be effective if such 
registration would be subject to suspension or revocation, 
"(C) TERMINATION.—Such registration shall be termi-
nated immediately if any of the conditions for registration 
set forth in this subsection are no longer satisfied. 
"(3) PUBLIC AVAILABILITY.—The Commission shall promptly 
publish in the Federal Register an acknowledgment of receipt 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-417 
of all notices the Commission receives under this subsection 
and shall make all such notices available to the public. 
"(4) 
EXEMPTION OF EXCHANGES FROM SPECIFIED PROVI-
SIONS.— 
"(A) TRANSACTION EXEMPTIONS.—^An exchange that is 
registered under paragraph (1) of this subsection shall 
be exempt from, and shall not be required to enforce compli-
ance by its members with, and its members shall not, 
solely with respect to those transactions effected on such 
exchange in security futures products, be required to com-
ply with, the following provisions of this title and the 
rules thereunder: 
"(i) Subsections (b)(2), (b)(3), (b)(4), (b)(7), (b)(9), 
(c), (d), and (e) of this section. 
"(ii) Section 8. 
"(iii) Section 11. 
"(iv) Subsections (d), (f), and (k) of section 17. 
"(v) Subsections (a), (f), and (h) of section 19. 
"(B) RULE CHANGE EXEMPTIONS.—^An exchange that 
registered under paragraph (1) of this subsection shall 
also be exempt from submitting proposed rule changes 
pursuant to section 19(b) of this title, except that— 
"(i) such exchange shall file proposed rule changes 
related to higher margin levels, fraud or manipulation, 
recordkeeping, reporting, listing standards, or decimal 
pricing for security futures products, sales practices 
for security futures products for persons who effect 
transactions in security futures products, or rules effec-
tuating such exchange's obligation to enforce the secu-
rities laws pursuant to section 19(b)(7); 
"(ii) such exchange shall file pursuant to sections 
19(b)(1) £ind 19(b)(2) proposed rule changes related 
to margin, except for changes resulting in higher mar-
gin levels; and 
"(iii) such exchange shall file pursuant to section 
19(b)(1) proposed rule changes that have been abro-
gated 
by 
the 
Commission 
pursuant 
to 
section 
19(b)(7)(C). 
"(5) TRADING IN SECURITY FUTURES PRODUCTS.— 
"(A) IN GENERAL.^^ubject to subparagraph (B), it shall 
be unlawful for any person to execute or trade a security 
futures product until the later o
f
— 
"(i) 1 year after the date of the enactment of the 
Commodity Futures Modernization Act of 2000; or 
"(ii) such date that a futures association registered 
under section 17 of the Commodity Exchange Act has 
met the requirements set forth in section 15A(k)(2) 
of this title. 
"(B) PRINCIPAL-TO-PRINCIPAL TRANSACTIONS.—Notwith-
standing subparagraph (A), a person may execute or trade 
a security futures product transaction if— 
"(i) the transaction is entered into— 
"(I) on a principal-to-principal basis between 
parties trading for their own accounts or as 
described in section la(12)(B)(ii) of the Commodity 
Exchange Act; and 
114 STAT. 2763A-418 
PUBLIC LAW 106-554—APPENDIX E 
"(11) only between eligible contract partici-
pants (as defined in subparagraphs (A), (B)(ii), 
and (C) of such section la(12)) at the time at 
which the persons enter into the agreement, con-
tract, or transaction; and 
"(ii) the transaction is entered into on or after 
the later of— 
"(I) 8 months after the date of the enactment 
of the Commodity Futures Modernization Act of 
2000; or 
"(II) such date that a futures association reg-
istered under 
section 
17 of the 
Commodity 
Exchange Act has met the requirements set forth 
in section 15A(k)(2) of this title.", 
(b) COMMISSION REVIEW OF PROPOSED RULE CHANGES.— 
(1) EXPEDITED REVIEW.—Section 19(b) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended by adding 
at the end the following: 
"(7) SECURITY FUTURES PRODUCT RULE CHANGES.— 
"(A) FILING REQUIRED.—^A self-regulatory organization 
that is an exchange registered with the Commission pursu-
ant to section 6(g) of this title or that is a national securities 
association registered pursuant to section 15A(k) of this 
title shall file with the Commission, in accordance with 
such rules as the Commission may prescribe, copies of 
any proposed rule change or any proposed change in, addi-
tion to, or deletion from the rules of such self-regulatory 
organization (hereinafter in this paragraph collectively 
referred to as a 'proposed rule change') that relates to 
higher margin levels, fraud or manipulation, recordkeeping, 
reporting, listing standards, or decimal pricing for security 
futures products, sales practices for security futures prod-
ucts for persons who effect transactions in security futures 
products, 
or 
rules 
effectuating 
such 
self-regulatory 
organization's obligation to enforce the securities laws. 
Such proposed rule change shall be accompanied by a con-
cise general statement of the basis and purpose of such 
proposed rule change. The Commission shall, upon the 
filing of any proposed rule change, promptly publish notice 
thereof together with the terms of substance of the proposed 
rule change or a description of the subjects and issues 
involved. The Commission shall give interested persons 
an opportunity to submit data, views, and arguments 
concerning such proposed rule change. 
"(B) FILING WITH CFTC.—^A proposed rule change filed 
with the Commission pursuant to subparagraph (A) shall 
be filed concurrently with the Commodity Futures Trading 
Commission. Such proposed rule chsmge may take effect 
upon filing of a written certification with the Commodity 
Futures Trading Commission under section 5c(c) of the 
Commodity Exchange Act, upon a determination by the 
Commodity Futures Trading Commission that review of 
the proposed rule change is not necessary, or upon approval 
of the proposed rule change by the Commodity Futures 
Trading Commission. 
"(C) ABROGATION OF RULE CHANGES.—Any proposed 
rule change of a self-regulatory organization that has taken 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-419 
effect pursuant to subparagraph (B) may be enforced by 
such self-regulatory organization to the extent such rule 
is not inconsistent with the provisions of this title, the 
rules and regulations thereunder, and applicable Federal 
law. At any time within 60 days of the date of the filing 
of a written certification with the Commodity Futures Trad-
ing Commission under section 5c(c) of the Commodity 
Exchange Act, the date the Commodity Futures Trading 
Commission determines that review of such proposed rule 
change is not necessary, or the date the Commodity Futures 
Trading Commission approves such proposed rule change, 
the Commission, after consultation with the Commodity 
Futures Trading Commission, may summarily abrogate the 
proposed rule change and require that the proposed rule 
change be refiled in accordance with the provisions of para-
graph (1), if it appears to the Commission that such pro-
posed rule change unduly burdens competition or efficiency, 
conflicts with the securities laws, or is inconsistent with 
the public interest and the protection of investors. Commis-
sion action pursuant to the preceding sentence shall not 
affect the validity or force of the rule change during the 
period it was in effect and shall not be reviewable under 
section 25 of this title nor deemed to be a final agency 
action for purposes of section 704 of title 5, United States 
Code. 
"(D) REVIEW OF RESUBMITTED ABROGATED RULES.— 
"(i) PROCEEDINGS.—^Within 35 days of the date of 
publication of notice of the filing of a proposed rule 
change that is abrogated in accordance with subpara-
graph (C) and refiled in accordance with paragraph 
(1), or within such longer period as the Commission 
may designate up to 90 days after such date if the 
Commission finds such longer period to be appropriate 
and publishes its reasons for so finding or as to which 
the self-regulatory organization consents, the Commis-
sion shall— 
"(I) by order approve such proposed rule 
change; or 
"(II) after consultation with the Commodity 
Futures Trading Commission, institute proceed-
ings to determine whether the proposed rule 
change should be disapproved. Proceedings under 
subclause (II) shall include notice of the grounds 
for disapproval under consideration and oppor-
tunity for hearing and be concluded within 180 
days after the date of publication of notice of the 
filing of the proposed rule change. At the conclu-
sion of such proceedings, the Commission, by order, 
shall approve or disapprove such proposed rule 
change. The Commission may extend the time for 
conclusion of such proceedings for up to 60 days 
if the Commission finds good cause for such exten-
sion and publishes its reasons for so finding or 
for such longer period as to which the self-regu-
latory organization consents. 
114 STAT. 2763A-420 
PUBLIC LAW 106-554—APPENDIX E 
"(ii) GROUNDS FOR APPROVAL.—The Commission 
shall approve a proposed rule change of a self-regu-
latory organization under this subparagraph if the 
Commission finds that such proposed rule change does 
not unduly burden competition or efficiency, does not 
conflict with the securities laws, and is not inconsistent 
with the public interest or the protection of investors. 
The Commission shall disapprove such a proposed rule 
change of a self-regulatory organization if it does not 
make such finding. The Commission shall not approve 
any proposed rule change prior to the 30th day after 
the date of publication of notice of the filing thereof, 
unless the Commission finds good cause for so doing 
and publishes its reasons for so finding.". 
(2) 
DECIMAL PRICING PROVISIONS.—Section 19(b) 
of 
the 
Securities Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended 
by inserting after paragraph (7), as added by paragraph (1), 
the following: 
"(8) DECIMAL PRICING.—^Not later than 9 months after the 
date on which trading in any security futures product com-
mences under this title, all self-regulatory organizations listing 
or trading security futures products shall file proposed rule 
changes necessary to implement decimal pricing of security 
futures products. The Commission may not require such rules 
to contain equal minimum increments in such decimal pricing.". 
(3) CONSULTATION PROVISIONS.—Section 19(b) of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended by 
inserting after paragraph (8), as added by paragraph (2), the 
following: 
"(9) CONSULTATION WITH CFTC.— 
"(A) CONSULTATION REQUIRED.—^The Commission shall 
consult with and consider the views of the Commodity 
Futures Trading Commission prior to approving or dis-
approving a proposed rule change filed by a national securi-
ties association registered pursuant to section 15A(a) or 
a national securities exchange subject to the provisions 
of subsection (a) that primarily concerns conduct related 
to transactions in security futures products, except where 
the Commission determines that an emergency exists 
requiring expeditious or summary action and publishes 
its reasons therefor. 
"(B) RESPONSES TO CFTC COMMENTS AND FINDINGS.— 
If the Commodity Futures Trading Commission comments 
in writing to the Commission on a proposed rule that 
has been published for comment, the Commission shall 
respond in writing to such written comment before approv-
ing or disapproving the proposed rule. If the Commodity 
Futures Trading Commission determines, and notifies the 
Commission, that such rule, if implemented or as applied, 
would— 
"(i) adversely affect the liquidity or efficiency of 
the market for security futures products; or 
"(ii) impose any burden on competition not nec-
essary or appropriate in furtherance of the purposes 
of this section, 
the Commission shall, prior to approving or disapproving 
the proposed rule, find that such rule is necessary and 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-421 
appropriate in furtherance of the purposes of this section 
notwithstanding the Commodity Futures Trading Commis-
sion's determination.". 
(c) REVIEW OF DISCIPLINARY PROCEEDINGS.—Section 19(d) of 
the Securities Exchange Act of 1934 (15 U.S.C. 78s(d)) is amended 
by adding at the end the following: 
"(3) The provisions of this subsection shall apply to an exchange 
registered pursuant to section 6(g) of this title or a national securi-
ties association registered pursuant to section 15A(k) of this title 
only to the extent that such exchange or association imposes any 
final disciplinary sanction for— 
"(A) a violation of the Federal securities laws or the rules 
and regulations thereunder; or 
"(B) a violation of a rule of such exchange or association, 
as to which a proposed change would be required to be filed 
under section 19 of this title, except that, to the extent that 
the exchange or association rule violation relates to any 
account, agreement, contract, or transaction, this subsection 
shall apply only to the extent such violation involves a security 
futures product.". 
SEC. 203. REGULATORY RELIEF FOR INTERMEDIARIES TRADING SECU-
RITY FUTURES PRODUCTS. 
(a) EXPEDITED REGISTRATION AND EXEMPTIONS.— 
(1) AMENDMENT.—Section 15(b) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78o(b)) is amended by adding at the 
end the following: 
"(11) 
BROKER/DEALER 
REGISTRATION 
WITH 
RESPECT TO 
TRANSACTIONS 
IN 
SECURITY 
FUTURES 
PRODUCTS.— 
"(A) NOTICE REGISTRATION.— 
"(i) CONTENTS OF NOTICE.—Notwithstanding para-
graphs (1) and (2), a broker or dealer required to 
register only because it effects transactions in security 
futures products on an exchange registered pursuant 
to section 6(g) may register for purposes of this section 
by filing with the Commission a written notice in such 
form and containing such information concerning such 
broker or dealer and any persons associated with such 
broker or dealer as the Commission, by rule, may 
prescribe as necessary or appropriate in the public 
interest or for the protection of investors. A broker 
or dealer may not register under this paragraph unless 
that broker or dealer is a member of a national securi-
ties association registered under section 15A(k). 
"(ii) IMMEDIATE EFFECTIVENESS.—Such registration 
shall be effective contemporaneously with the submis-
sion of notice, in written or electronic form, to the 
Commission, except that such registration shall not 
be effective if the registration would be subject to 
suspension or revocation under paragraph (4). 
"(iii) SUSPENSION.—Such registration shall be sus-
pended immediately if a national securities association 
registered pursuant to section 15A(k) of this title sus-
pends the membership of that broker or dealer. 
"(iv) TERMINATION.—Such registration shall be 
terminated immediately if any of the above stated 
114 STAT. 2763A-422 
PUBLIC LAW 106-554—APPENDIX E 
conditions for registration set forth in this paragraph 
are no longer satisfied. 
"(B) 
EXEMPTIONS 
FOR REGISTERED 
BROKERS AND 
DEALERS.—^A broker or dealer registered pursuant to the 
requirements of subparagraph (A) shall be exempt from 
the following provisions of this title and the rules there-
under with respect to transactions in security futures prod-
ucts: 
"(i) Section 8. 
"(ii) Section 11. 
"(iii) Subsections (c)(3) and (c)(5) of this section. 
"(iv) Section 15B. 
"(v) Section 15C. 
"(vi) Subsections (d), (e), (f), (g), (h), and (i) of 
section 17.". 
(2) CONFORMING AMENDMENT.—Section 28(e) of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78bb(e)) is amended 
by adding at the end the following: 
"(4) The provisions of this subsection shall not apply with 
regard to securities that are security futures products.". 
(b) FLOOR BROKERS AND FLOOR TRADERS.—Section 15(b) of 
the Securities Exchange Act of 1934 (15 U.S.C. 78o(b)) is amended 
by inserting after paragraph (11), as added by subsection (a), the 
following: 
"(12) 
EXEMPTION 
FOR 
SECURITY 
FUTURES 
PRODUCT 
EXCHANGE MEMBERS.— 
"(A) REGISTRATION EXEMPTION.—A natural person shall 
be exempt from the registration requirements of this sec-
tion if such person— 
"(i) is a member of a designated contract market 
registered with the Commission as an exchange pursu-
ant to section 6(g); 
"(ii) effects transactions only in securities on the 
exchange of which such person is a member; and 
"(iii) does not directly accept or solicit orders from 
public customers or provide advice to public customers 
in connection with the trading of security futures prod-
ucts. 
"(B) OTHER EXEMPTIONS.—^A natural person exempt 
from registration pursuant to subparagraph (A) shall also 
be exempt from the following provisions of this title and 
the rules thereunder: 
"(i) Section 8. 
"(ii) Section 11. 
"(iii) Subsections (c)(3), (c)(5), and (e) of this sec-
tion. 
"(iv) Section 15B. 
"(v) Section 15C. 
"(vi) Subsections (d), (e), (f), (g), (h), and (i) of 
section 17.". 
(c) LIMITED PURPOSE NATIONAL SECURITIES ASSOCL^TION.—Sec-
tion 15A of the Securities Exchange Act of 1934 (15 U.S.C. 78o-
3) is amended by adding at the end the following: 
"(k) LIMITED PURPOSE NATIONAL SECURITIES ASSOCLVTION.— 
"(1) REGULATION OF MEMBERS WITH RESPECT TO SECURITY 
FUTURES PRODUCTS.—^A futures association registered under 
section 17 of the Commodity Exchange Act shall be a registered 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-423 
national securities association for the limited purpose of regu-
lating the activities of members who are registered as brokers 
or dealers in security futures products pursuant to section 
15(b)(ll). 
"(2) REQUIREMENTS FOR REGISTRATION.—Such a securities 
association shall— 
"(A) be so organized and have the capacity to carry 
out the purposes of the securities laws applicable to security 
futures products and to comply, and (subject to any rule 
or order of the Commission pursuant to section 19(g)(2)) 
to enforce compliance by its members and persons associ-
ated with its members, with the provisions of the securities 
laws applicable to security futures products, the rules and 
regulations thereunder, and its rules; 
"(B) have rules t h a t -
'll) are designed to prevent fraudulent 
and 
manipulative acts and practices, to promote just and 
equitable principles of trade, and, in general, to protect 
investors and the public interest, including rules 
governing sales practices and the advertising of secu-
rity futures products reasonably comparable to those 
of other national securities associations registered 
pursuant to subsection (a) that are applicable to secu-
rity futures products; and 
"(ii) are not designed to regulate by virtue of any 
authority conferred by this title matters not related 
to the purposes of this title or the administration of 
the association; 
"(C) have rules that provide that (subject to any rule 
or order of the Commission pursuant to section 19(g)(2)) 
its members and persons associated with its members shall 
be appropriately disciplined for violation of any provision 
of the securities laws applicable to security futures prod-
ucts, the rules or regulations thereunder, or the rules of 
the association, by expulsion, suspension, limitation of 
activities, functions, and operations, fine, censure, being 
suspended or barred from being associated with a member, 
or any other fitting sanction; and 
"(D) have rules that ensure that members and natural 
persons associated with members meet such standards of 
training, experience, and competence necessary to effect 
transactions in security futures products and are tested 
for their knowledge of securities and security futures prod-
ucts. 
"(3) EXEMPTION FROM RULE CHANGE SUBMISSION.—Such a 
securities association shall be exempt from submitting proposed 
rule changes pursuant to section 19(b) of this title, except 
that— 
"(A) the association shall file proposed rule changes 
related to higher margin levels, fraud or manipulation, 
recordkeeping, reporting, listing standards, or decimal pric-
ing for security futures products, sales practices for, 
advertising of, or standards of training, experience, com-
petence, or other qualifications for security futures products 
for persons who effect transactions in security futures prod-
ucts, or rules effectuating the association's obligation to 
enforce the securities laws pursuant to section 19(b)(7); 
114 STAT. 2763A-424 
PUBLIC LAW 106-554—APPENDIX E 
"(B) the association shall file pursuant to sections 
19(b)(1) and 19(b)(2) proposed rule changes related to mar-
gin, except for changes resulting in higher margin levels; 
and 
"(C) the association shall file pursuant to section 
19(b)(1) proposed rule changes that have been abrogated 
by the Commission pursuant to section 19(b)(7)(C). 
"(4) OTHER EXEMPTIONS.—Such a securities association 
shall be exempt from and shall not be required to enforce 
compliance by its members, and its members shall not, solely 
with respect to their transactions effected in security futures 
products, be required to comply, with the following provisions 
of this title and the rules thereunder: 
"(A) Section 8. 
"(B) Subsections (b)(1), (b)(3), (b)(4), (b)(5), (b)(8), 
(b)(10), (b)(ll), (b)(12), (b)(13), (c), (d), (e), (f), (g), (h), 
and (i) of this section. 
"(C) Subsections (d), (f), and (k) of section 17. 
"(D) Subsections (a), (f), and (h) of section 19.". 
(d) EXEMPTION UNDER THE SECURITIES INVESTOR PROTECTION 
ACT OF 1970.— 
(1) Section 16(14) of the Securities Investor Protection Act 
of 1970 (15 U.S.C. 78111(14)) is amended by inserting "or any 
security future as that term is defined in section 3(a)(55)(A) 
of the Securities Exchange Act of 1934," after "certificate of 
deposit for a security,". 
(2) Section 3(a)(2)(A) of the Securities Investor Protection 
Act of 1970 (15 U.S.C. 78ccc(a)(2)(A)) is amended— 
(A) in clause (i), by striking "and" after the semicolon; 
(B) in clause (ii), by striking the period and inserting 
"; and"; and 
(C) by adding at the end the following: 
"(iii) persons who are registered as a broker or 
dealer pursuant to section 15(b)(ll)(A) of the Securities 
Exchange Act of 1934.". 
SEC. 204. SPECIAL PROVISIONS FOR INTERAGENCY COOPERATION. 
Section 17(b) of the Securities Exchange Act of 1934 (15 U.S.C. 
78q(b)) is amended— 
(1) by striking "(b) All" and inserting the following: 
"(b) RECORDS SUBJECT TO EXAMINATION.— 
"(1) PROCEDURES FOR COOPERATION WITH OTHER AGEN-
CIES.—All"; 
(2) by striking "prior to conducting any such examination 
of a registered clearing" and inserting the following: "prior 
to conducting any such examination of a— 
"(A) registered clearing"; 
(3) by redesignating the last sentence as paragraph (4)(C); 
(4) by striking the period at the end of the first sentence 
and inserting the following: "; or 
"(B) broker or dealer registered pursuant to section 
15(b)(ll), exchange registered pursuant to section 6(g), or 
national securities association registered pursuant to sec-
tion 15A(k) gives notice to the Commodity Futures Trading 
Commission of such proposed examination and consults 
with the Commodity Futures Trading Commission concern-
ing the feasibility and desirability of coordinating such 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-425 
examination with examinations conducted by the Commod-
ity Futures Trading Commission in order to avoid unneces-
sary regulatory dupHcation or undue regulatory burdens 
for such broker or dealer or exchange."; 
(5) by adding at the end the following new paragraphs: 
"(2) 
FURNISHING 
DATA AND 
REPORTS 
TO 
CFTC.—The 
Commission shall notify the Commodity Futures Trading 
Commission of any examination conducted of any broker or 
dealer registered pursuant to section 15(b)(ll), exchange reg-
istered pursuant to section 6(g), or national securities associa-
tion registered pursuant to section 15A(k) and, upon request, 
furnish to the Commodity Futures Trading Commission any 
examination report and data supplied to, or prepared by, the 
Commission in connection with such examination. 
"(3) USE OF CFTC REPORTS.—Prior to conducting an exam-
ination under paragraph (1), the Commission shall use the 
reports of examinations, if the information available therein 
is sufficient for the purposes of the examination, of— 
"(A) any broker or dealer registered pursuant to section 
15(b)(ll); 
"(B) exchange registered pursuant to section 6{g); or 
"(C) national securities association registered pursuant 
to section 15A(k); 
that is made by the Commodity Futures Trading Commission, 
a national securities association registered pursuant to section 
15A(k), or an exchange registered pursuant to section 6(g). 
"(4) RULES OF CONSTRUCTION.— 
"(A) Notwithstanding any other provision of this sub-
section, the records of a broker or dealer registered pursu-
ant to section 15(b)(ll), an exchange registered pursuant 
to section 6(g), or a national securities association reg-
istered pursuant to section 15A(k) described in this 
subparagraph shall not be subject to routine periodic 
examinations by the Commission. 
"(B) Any recordkeeping rules adopted under this sub-
section for a broker or dealer registered pursuant to section 
15(b)(ll), an exchange registered pursuant to section 6(g), 
or a national securities association registered pursuant to 
section 15A(k) shall be limited to records with respect 
to persons, accounts, agreements, contracts, and trans-
actions involving security futures products."; and 
(6) in paragraph (4)(C) (as redesignated by paragraph (3) 
of this section), by striking "Nothing in the proviso to the 
preceding sentence" and inserting "Nothing in the proviso in 
paragraph (1)". 
SEC. 205. MAINTENANCE OF MARKET INTEGRITY FOR SECURITY 
FUTURES PRODUCTS. 
(a) ADDITION OF SECURITY FUTURES PRODUCTS TO OPTION-SPE-
CIFIC ENFORCEMENT PROVISIONS.— 
(1) PROHIBITION AGAINST MANIPULATION.—Section 9(b) 
of 
the Securities Exchange Act of 1934 (15 U.S.C. 78i(b)) is 
amended— 
(A) in paragraph (1)— 
(i) by inserting "(A)" after "acquires"; and 
(ii) by striking "; or" and inserting "; or (B) any 
security futures product on the security; or"; 
114 STAT. 2763A-426 
PUBLIC LAW 106-554—APPENDIX E 
(B) in paragraph (2)— 
(i) by inserting "(A)" after "interest in any"; and 
(ii) by striking "; or" and inserting "; or (B) such 
security futures product; or"; and 
(C) in paragraph (3)— 
(i) by inserting "(A)" after "interest in any"; and 
(ii) by inserting "; or (B) such security futures 
product" after "privilege". 
(2) MANIPULATION IN OPTIONS AND OTHER DERIVATIVE PROD-
UCTS.—Section 9(g) of the Securities Exchange Act of 1934 
(15 U.S.C. 78i(g)) is amended— 
(A) by inserting "(1)" after "(g)"; 
(B) by inserting "other than a security futures product" 
after "future delivery"; and 
(C) by adding at the end the following: 
"(2) Notwithstanding the Commodity Exchange Act, the 
Commission shall have the authority to regulate the trading of 
any security futures product to the extent provided in the securities 
laws.". 
(3) LIABILITY OF CONTROLLING PERSONS AND PERSONS WHO 
AID AND ABET VIOLATIONS.—Section 20(d) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78t(d)) is amended by striking 
"or privilege" and inserting ", privilege, or security futures 
product". 
(4) LLVBILITY TO CONTEMPORANEOUS TRADERS FOR INSIDER 
TRADING.—Section 21A(a)(l) of the Securities Exchange Act 
of 1934 (15 U.S.C. 78u-1(a)(1)) is amended by striking 
"standardized 
options, the Commission—" and 
inserting 
"standardized options or security futures products, the Commis-
sion—". 
(5) ENFORCEMENT CONSULTATION.—Section 21 of the Secu-
rities Exchange Act of 1934 (15 U.S.C. 78u) is amended by 
adding at the end the following: 
"(i) INFORMATION TO CFTC.—The Commission shall provide 
the Commodity Futures Trading Commission with notice of the 
commencement of any proceeding and a copy of any order entered 
by the Commission against any broker or dealer registered pursuant 
to section 15(b)(ll), any exchange registered pursuant to section 
6(g), or any national securities association registered pursuant to 
section 15A(k).". 
SEC. 206. SPECIAL PROVISIONS FOR THE TRADING OF SECURITY 
FUTURES PRODUCTS. 
(a) LISTING STANDARDS AND CONDITIONS FOR TRADING.—Section 
6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f) is amended 
by inserting after subsection (g), as added by section 202, the 
following: 
"(h) TRADING IN SECURITY FUTURES PRODUCTS.— 
"(1) TRADING ON EXCHANGE OR ASSOCIATION REQUIRED.— 
It shall be unlawful for any person to effect transactions in 
security futures products that are not listed on a national 
securities exchange or a national securities association reg-
istered pursuant to section 15A(a). 
"(2) LISTING STANDARDS REQUIRED.—Except as otherwise 
provided in paragraph (7), a national securities exchange or 
a national securities association registered pursuant to section 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-427 
15A(a) may trade only security futures products that (A) con-
form with Hsting standards that such exchange or association 
files with the Commission under section 19(b) and (B) meet 
the criteria specified in section 2(a)(l)(D)(i) of the Commodity 
Exchange Act. 
"(3) 
REQUIREMENTS FOR LISTING STANDARDS AND CONDI-
TIONS FOR TRADING.—Such listing standards shall— 
"(A) except as otherwise provided in a rule, regulation, 
or order issued pursuant to paragraph (4), require that 
any security underlying the security future, including each 
component security of a narrow-based security index, be 
registered pursuant to section 12 of this title; 
"(B) require that if the security futures product is 
not cash settled, the market on which the security futures 
product is traded have arrangements in place with a reg-
istered clearing agency for the payment and delivery of 
the securities underlying the security futures product; 
"(C) be no less restrictive than comparable listing 
standards for options traded on a national securities 
exchange or national securities association 
registered 
pursuant to section 15A(a) of this title; 
"(D) except as otherwise provided in a rule, regulation, 
or order issued pursuant to paragraph (4), require that 
the security future be based upon common stock and such 
other equity securities as the Commission and 
the 
Commodity Futures Trading Commission jointly determine 
appropriate; 
"(E) require that the security futures product is cleared 
by a clearing agency that has in place provisions for linked 
and coordinated clearing with other clearing agencies that 
clear security futures products, which permits the security 
futures product to be purchased on one market and offset 
on another market that trades such product; 
"(F) require that only a broker or dealer subject to 
suitability rules comparable to those of a national securities 
association registered pursuant to section 15A(a) effect 
transactions in the security futures product; 
"(G) require that the security futures product be subject 
to the prohibition against dual trading in section 4j of 
the Commodity Exchange Act (7 U.S.C. 6j) and the rules 
and regulations thereunder or the provisions of section 
11(a) of this title and the rules and regulations thereunder, 
except to the extent otherwise permitted under this title 
and the rules and regulations thereunder; 
"(H) require that trading in the security futures prod-
uct not be readily susceptible to manipulation of the price 
of such security futures product, nor to causing or being 
used in the manipulation of the price of any underlying 
security, option on such security, or option on a group 
or index including such securities; 
"(I) require that procedures be in place for coordinated 
surveillance among the market on which the security 
futures product is traded, any market on which any security 
underlying the security futures product is traded, and other 
markets on which any related security is traded to detect 
manipulation and insider trading; 
114 STAT. 2763A-428 
PUBLIC LAW 106-554—APPENDIX E 
"(J) require that the market on which the security 
futures product is traded has in place audit trails necessary 
or appropriate to facilitate the coordinated surveillance 
required in subparagraph (I); 
"(K) require that the market on which the security 
futures product is traded has in place procedures to coordi-
nate trading halts between such market and any market 
on which any security underlying the security futures prod-
uct is traded and other markets on which any related 
security is traded; and 
"(L) require that the margin requirements for a secu-
rity futures product comply with the regulations prescribed 
pursuant to section 7(c)(2)(B), except that nothing in this 
subparagraph shall be construed to prevent a national 
securities exchange or national securities association from 
requiring higher margin levels for a security futures prod-
uct when it deems such action to be necessary or appro-
priate. 
"(4) 
AUTHORITY TO MODIFY CERTAIN LISTING STANDARD 
REQUIREMENTS.— 
"(A) AUTHORITY TO MODIFY.—^The Commission and the 
Commodity Futures Trading Commission, by rule, regula-
tion, or order, may jointly modify the listing standard 
requirements specified in subparagraph (A) or (D) of para-
graph (3) to the extent such modification fosters the 
development of fair and orderly markets in security futures 
products, is necessary or appropriate in the public interest, 
and is consistent with the protection of investors. 
"(B) AUTHORITY TO GRANT EXEMPTIONS.—The Commis-
sion and the Commodity Futures Trading Commission, by 
order, may jointly exempt any person from compliance 
with the listing standard requirement specified in subpara-
graph (E) of paragraph (3) to the extent such exemption 
fosters the development of fair and orderly markets in 
security futures products, is necessary or appropriate in 
the public interest, and is consistent with the protection 
of investors. 
"(5) REQUIREMENTS FOR OTHER PERSONS TRADING SECURITY 
FUTURE PRODUCTS.—It shall be unlawful for any person (other 
than a national securities exchange or a national securities 
association registered pursuant to section 15A(a)) to constitute, 
maintain, or provide a marketplace or facilities for bringing 
together purchasers and sellers of security future products or 
to otherwise perform with respect to security future products 
the functions commonly performed by a stock exchange as 
that term is generally understood, unless a national securities 
association registered pursuant to section 15A(a) or a national 
securities exchange of which such person is a member— 
"(A) has in place procedures for coordinated surveil-
lance among such person, the market trading the securities 
underlying the security future products, and other markets 
trading related securities to detect manipulation and 
insider trading; 
"(B) has rules to require audit trails necessary or 
appropriate to facilitate 
the coordinated 
surveillance 
required in subparagraph (A); and 
PUBLIC LAW 106-554^APPENDIX E 
114 STAT. 2763A-429 
"(C) has rules to require such person to coordinate 
trading halts with markets trading the securities underly-
ing the security future products and other markets trading 
related securities. 
"(6) DEFERRAL OF OPTIONS ON SECURITY FUTURES TRAD-
ING.—No person shall offer to enter into, enter into, or confirm 
the execution of any put, call, straddle, option, or privilege 
on a security future, except that, after 3 years after the date 
of the enactment of this subsection, the Commission and the 
Commodity Futures Trading Commission may by order jointly 
determine to permit trading of puts, calls, straddles, options, 
or privileges on any security future authorized to be traded 
under the provisions of this Act and the Commodity Exchange 
Act. 
"(7) DEFERRAL OF LINKED AND COORDINATED CLEARING.— 
"(A) Notwithstanding paragraph (2), until the compli-
ance date, a national securities exchange or nationgJ securi-
ties association registered pursuant to section 15A(a) may 
trade a security futures product that does not— 
"(i) conform with any listing standard promulgated 
to meet the requirement specified in subparagraph 
(E) of paragraph (3); or 
"(ii) meet 
the 
criterion 
specified 
in 
section 
2(a)(l)(D)(i)(IV) of the Commodity Exchange Act. 
"(B) The Commission and the Commodity Futures 
Trading Commission shall jointly publish in the Federal 
Register a notice of the compliance date no later than 
165 days before the compliance date. 
"(C) For purposes of this paragraph, the term 'compli-
ance date' means the later of— 
"(i) 180 days after the end of the first full calendar 
month period in which the average aggregate com-
parable share volume for all security futures products 
based on single equity securities traded on all national 
securities exchanges, any national securities associa-
tions registered pursuant to section 15A(a), and all 
other persons equals or exceeds 10 percent of the aver-
age aggregate comparable share volume of options on 
single equity securities traded on all national securities 
exchanges and any national securities associations reg-
istered pursuant to section 15A(a); or 
"(ii) 2 years after the date on which trading in 
any security futures product commences under this 
title.", 
(b) MARGIN.—Section 7 of the Securities Exchange Act of 1934 
(15 U.S.C. 78g) is amended— 
(1) in subsection (a), by inserting "or a security futures 
product" after "exempted security"; 
(2) in subsection (c)(1)(A), by inserting "except as provided 
in paragraph (2)," after "security),"; 
(3) by redesignating paragraph (2) of subsection (c) as 
paragraph (3) of such subsection; and 
(4) by inserting after paragraph (1) of such subsection 
the following: 
"(2) MARGIN REGULATIONS.— 
"(A) COMPLIANCE WITH MARGIN RULES REQUIRED.—It 
shall be unlawful for suiy broker, dealer, or member of 
114 STAT. 2763A-430 
PUBLIC LAW 106-554—APPENDIX E 
a national securities exchange to, directly or indirectly, 
extend or maintain credit to or for, or collect margin from 
any customer on, any security futures product unless such 
activities comply with the regulations— 
"(i) which the Board shall prescribe pursuant to 
subparagraph (B); or 
"(ii) if the Board determines to delegate the author-
ity to prescribe such regulations, which the Commis-
sion and the Commodity Futures Trading Commission 
shall jointly prescribe pursuant to subparagraph (B). 
If the Board delegates the authority to prescribe such regu-
lations under clause (ii) and the Commission and the 
Commodity Futures Trading Commission have not jointly 
prescribed such regulations within a reasonable period of 
time after the date of such delegation, the Board shall 
prescribe such regulations pursuant to subparagraph (B). 
"(B) CRITERIA FOR ISSUANCE OF RULES.—The Board 
shall prescribe, or, if the authority is delegated pursuant 
to subparagraph (A)(ii), the Commission and the Commod-
ity Futures Trading Commission shall jointly prescribe, 
such regulations to establish margin requirements, includ-
ing the establishment of levels of margin (initial and 
maintenance) for security futures products under such 
terms, and at such levels, as the Board deems appropriate, 
or as the Commission and the Commodity Futures Trading 
Commission jointly deem appropriate— 
"(i) to preserve the financial integrity of markets 
trading security futures products; 
"(ii) to prevent systemic risk; 
"(iii) to require that— 
"(I) the margin requirements for a security 
future product be consistent with the margin 
requirements for comparable option 
contracts 
traded on any exchange registered pursuant to 
section 6(a) of this title; and 
"(II) initial and maintenance margin levels for 
a security future product not be lower than the 
lowest level of margin, exclusive of premium, 
required for any comparable option contract traded 
on any exchange registered pursuant to section 
6(a) of this title, other than an option on a security 
future; 
except that nothing in this subparagraph shall be con-
strued to prevent a national securities exchange or 
national securities association from requiring higher 
margin levels for a security future product when it 
deems such action to be necessary or appropriate; and 
"(iv) to ensure that the margin requirements (other 
than levels of margin), including the type, form, and 
use of collateral for security futures products, are and 
remain consistent with the requirements established 
by the Board, pursuant to subparagraphs (A) and (B) 
of paragraph (1).". 
(c) INCORPORATION OF SECURITY FUTURES PRODUCTS INTO THE 
NATIONAL 
MARKET 
SYSTEM.—Section 
llA 
of the 
Securities 
Exchange Act of 1934 (15 U.S.C. 78k-l) is amended by adding 
at the end the following: 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-431 
"(e) NATIONAL MARKETS SYSTEM FOR SECURITY FUTURES PROD-
UCTS.— 
"(1) 
CONSULTATION AND COOPERATION REQUIRED.—With 
respect to security futures products, the Commission and the 
Commodity Futures Trading Commission shall consult and 
cooperate so that, to the maximum extent practicable, their 
respective regulatory responsibilities may be fulfilled and the 
rules and regulations applicable to security futures products 
may foster a national market system for security futures prod-
ucts if the Commission and the Commodity Futures Trading 
Commission jointly determine that such a system would be 
consistent with the congressional findings in subsection (a)(1). 
In accordance with this objective, the Commission shall, at 
least 15 days prior to the issuance for public comment of 
any proposed rule or regulation under this section concerning 
security futures products, consult and request the views of 
the Commodity Futures Trading Commission. 
"(2) APPLICATION OF RULES BY ORDER OF CFTC.—No rule 
adopted pursuant to this section shall be applied to any person 
with respect to the trading of security futures products on 
an exchange that is registered under section 6(g) unless the 
Commodity Futures Trading Commission has issued an order 
directing that such rule is applicable to such persons.". 
(d) INCORPORATION OF SECURITY FUTURES PRODUCTS INTO THE 
NATIONAL SYSTEM FOR CLEARANCE AND SETTLEMENT.—Section 
17A(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78q-
1(b)) is amended by adding at the end the following: 
"(7)(A) A clearing agency that is regulated directly or indirectly 
by the Commodity Futures Trading Commission through its associa-
tion with a designated contract market for security futures products 
that is a national securities exchange registered pursuant to section 
6(g), and that would be required to register pursuant to paragraph 
(1) of this subsection only because it performs the functions of 
a clearing agency with respect to security futures products effected 
pursuant to the rules of the designated contract market with which 
such agency is associated, is exempted from the provisions of this 
section and the rules and regulations thereunder, except that if 
such a clearing agency performs the functions of a clearing agency 
with respect to a security futures product that is not cash settled, 
it must have arrangements in place with a registered clearing 
agency to effect the payment and delivery of the securities underly-
ing the security futures product. 
"(B) Any clearing agency that performs the functions of a clear-
ing agency with respect to security futures products must coordinate 
with and develop fair and reasonable links with any and all other 
clearing agencies that perform the functions of a clearing agency 
with respect to security futures products, in order to permit, as 
of the compliance date (as defined in section 6(h)(6)(C)), security 
futures products to be purchased on one market and offset on 
another market that trades such products.". 
(e) MARKET EMERGENCY POWERS AND CIRCUIT BREAKERS.— 
Section 12(k) of the Securities Exchange Act of 1934 (15 U.S.C. 
781(k)) is amended— 
(1) in paragraph (1), by adding at the end the following: 
"If the actions described in subparagraph (A) or (B) involve 
a security futures product, the Commission shall consult with 
114 STAT. 2763A-432 
PUBLIC LAW 106-554—APPENDIX E 
and consider the views of the Commodity Futures Trading 
Commission."; and 
(2) in paragraph (2)(B), by inserting after the first sentence 
the following: "If the actions described in subparagraph (A) 
involve a security futures product, the Commission shall consult 
with and consider the views of the Commodity Futures Trading 
Commission.". 
(f) TRANSACTION FEES.—Section 31 of the Securities Exchange 
Act of 1934 (15 U.S.C. 78ee) is amended— 
(1) in subsection (a), by inserting "and assessments" after 
"fees"; 
(2) in subsections (b), (c), and (d)(1), by striking "and other 
evidences of indebtedness" and inserting "other evidences of 
indebtedness, and security futures products"; 
(3) in subsection (f), by inserting "or assessment" after 
"fee"; 
(4) in subsection (g), by inserting "and assessment" after 
"fee"; 
(5) by redesignating subsections (e), (f), and (g) as sub-
sections (f), (g), and (h), respectively; and 
(6) by inserting after subsection (d) the following new sub-
section: 
"(e) ASSESSMENTS ON SECURITY FUTURES TRANSACTIONS.—Each 
national securities exchange and national securities association 
shall pay to the Commission an assessment equal to $0.02 for 
each round turn transaction (treated as including one purchase 
and one sale of a contract of sale for future delivery) on a security 
future traded on such national securities exchange or by or through 
any member of such association otherwise than on a national securi-
ties exchange, except that for fiscal year 2007 or any succeeding 
fiscal year such assessment shall be equal to $0.0075 for each 
such transaction. Assessments collected pursuant to this subsection 
shall be deposited and collected as general revenue of the Treas-
ury.". 
(g) EXEMPTION FROM SHORT SALE PROVISIONS.—Section 10(a) 
of the Securities Exchange Act of 1934 (15 U.S.C 78j(a)) is 
amended— 
(1) by inserting "(1)" after "(a)"; and 
(2) by adding at the end the following: 
"(2) Paragraph (1) of this subsection shall not apply to security 
futures products.". 
(h) RULEMAKING AUTHORITY TO ADDRESS DUPLICATIVE REGULA-
TION OF DUAL REGISTRANTS.—Section 15(c)(3) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78o(c)(3)) is amended— 
(1) by inserting "(A)" after "(3)"; and 
(2) by adding at the end the following: 
"(B) Consistent with this title, the Commission, in consultation 
with the Commodity Futures Trading Commission, shall issue such 
rules, regulations, or orders as are necessary to avoid duplicative 
or conflicting regulations applicable to any broker or dealer reg-
istered with the Commission pursuant to section 15(b) (except para-
graph (11) thereof), that is also registered with the Commodity 
Futures Trading Commission pursuant to section 4f(a) of the 
Commodity Exchange Act (except paragraph (2) thereof), with 
respect to the application of: (i) the provisions of section 8, section 
15(c)(3), and section 17 of this title and the rules and regulations 
thereunder related to the treatment of customer funds, securities. 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-433 
or property, maintenance of books and records, financial reporting, 
or other financial responsibility rules, involving security fiitures 
products; and (ii) similar provisions of the Commodity Exchange 
Act and rules and regulations thereunder involving security futures 
products.". 
(i) OBLIGATION TO ADDRESS DUPLICATIVE REGULATION OF DUAL 
REGISTRANTS.—Section 6 of the Securities Exchange Act of 1934 
(15 U.S.C. 78f) is amended by inserting after subsection (h), as 
added by subsection (a) of this section, the following: 
"(i) Consistent with this title, each national securities exchange 
registered pursuant to subsection (a) of this section shall issue 
such rules as are necessary to avoid duplicative or conflicting rules 
applicable to any broker or dealer registered with the Commission 
pursuant to section 15(b) (except paragraph (11) thereof), that 
is also registered with the Commodity Futures Trading Commission 
pursuant to section 4fta) of the Commodity Exchange Act (except 
paragraph (2) thereof), with respect to the application o
f
— 
(1) rules of such national securities exchange of the type 
specified in section 15(c)(3)(B) involving security futures prod-
ucts; and 
(2) similar rules of national securities exchanges registered 
pursuant to section 6(g) smd national securities associations 
registered pursuant to section 15A(k) involving security futures 
products.". 
(j) OBLIGATION TO ADDRESS DUPLICATIVE REGULATION OF DUAL 
REGISTRANTS.—Section 15A of the Securities Exchange Act of 1934 
(15 U.S.C. 78o-3) is amended by inserting after subsection (k), 
as added by section 203, the following: 
"(1) Consistent with this title, each national securities associa-
tion registered pursuant to subsection (a) of this section shall issue 
such rules as are necessary to avoid duplicative or conflicting rules 
applicable to any broker or dealer registered with the Commission 
pursuant to section 15(b) (except paragraph (11) thereof), that 
is also registered with the Commodity Futures Trading Commission 
pursuant to section 4f(a) of the Commodity Exchange Act (except 
paragraph (2) thereof), with respect to the application o
f
— 
"(1) rules of such national securities association of the 
type specified in section 15(c)(3)(B) involving security futures 
products; and 
"(2) similar rules of national securities associations reg-
istered pursuant to subsection (k) of this section £ind national 
securities exchanges registered pursuant to section 6(g) involv-
ing security futures products.". 
(k) OBLIG^.TION TO PUT IN PLACE PROCEDURES AND ADOPT 
RULES.— 
(1) NATIONAL SECURITIES ASSOCIATIONS.—Section 15A 
of 
the Securities Exchange Act of 1934 (15 U.S.C. 78o-3) is amend-
ed by inserting after subsection (1), as added by subsection 
(j) of this section, the following new subsection: 
"(m) 
PROCEDURES AND RULES FOR SECURITY FUTURE PROD-
UCTS.—^A national securities association registered pursuant to sub-
section (a) shall, not later than 8 months after the date of the 
enactment of the Commodity Futures Modernization Act of 2000, 
implement the procedures specified in section 6(h)(5)(A) of this 
title and adopt the rules specified in subparagraphs (B) and (C) 
of section 6(h)(5) of this title.". 
114 STAT. 2763A-434 
PUBLIC LAW 106-554—APPENDIX E 
(2) NATIONAL SECURITIES EXCHANGES.—Section 6 of 
the 
Securities Exchange Act of 1934 (15 U.S.C. 78f) is amended 
by inserting after subsection (i), as added by subsection (i) 
of this section, the following new subsection: 
"(j) PROCEDURES AND RULES FOR SECURITY FUTURE PROD-
UCTS.—A national securities exchange registered pursuant to sub-
section (a) shall implement the procedures specified in section 
6(h)(5)(A) of this title and adopt the rules specified in subparagraphs 
(B) and (C) of section 6(h)(5) of this title not later than 8 months 
after the date of receipt of a request from an alternative trading 
system for such implementation and rules.". 
(1) OBLIGATION TO ADDRESS SECURITY FUTURES PRODUCTS 
TRADED ON FOREIGN EXCHANGES.—Section 6 of the Securities 
Exchange Act of 1934 (15 U.S.C. 78f) is amended by adding after 
subsection (j), as added by subsection (k) of this section, the follow-
ing: 
"(k)(l) TO the extent necessary or appropriate in the public 
interest, to promote fair competition, and consistent with the pro-
motion of market efficiency, innovation, and expansion of invest-
ment opportunities, the protection of investors, and the maintenance 
of fair and orderly markets, the Commission and the Commodity 
Futures Trading Commission shall jointly issue such rules, regula-
tions, or orders as are necessary and appropriate to permit the 
offer and sale of a security futures product traded on or subject 
to the rules of a foreign board of trade to United States persons. 
"(2) The rules, regulations, or orders adopted under paragraph 
(1) shall take into account, as appropriate, the nature and size 
of the markets that the securities underlying the security futures 
product reflect.". 
SEC. 207. CLEARANCE AND SETTLEMENT. 
Section 17A(b) of the Securities Exchange Act of 1934 (15 
U.S.C. 78q-l(b)) is amended— 
(1) in paragraph (3)(A), by inserting "and derivative agree-
ments, contracts, and transactions" after "prompt and accurate 
clearance and settlement of securities transactions"; 
(2) in paragraph (3)(F), by inserting "and, to the extent 
applicable, derivative agreements, contracts, and transactions" 
after "designed to promote the prompt and accurate clearance 
and settlement of securities transactions"; and 
(3) by inserting after paragraph (7), as added by section 
206(d), the following: 
"(8) A registered clearing agency shall be permitted to provide 
facilities for the clearance and settlement of any derivative agree-
ments, contracts, or transactions that are excluded from the 
Commodity Exchange Act, subject to the requirements of this sec-
tion and to such rules and regulations as the Commission may 
prescribe as necessary or appropriate in the public interest, for 
the protection of investors, or otherwise in furtherance of the pur-
poses of this title.". 
SEC. 208. AMENDMENTS RELATING TO REGISTRATION AND DISCLO-
SURE ISSUES UNDER THE SECURITIES ACT OF 1933 AND 
THE SECURITIES EXCHANGE ACT OF 1934. 
(a) AMENDMENTS TO THE SECURITIES ACT OF 1933.— 
(1) TREATMENT OF SECURITY FUTURES PRODUCTS.—Section 
2(a) of the Securities Act of 1933 (15 U.S.C. 77b(a)) is 
amended— 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-435 
(A) in paragraph (1), by inserting "security future," 
after "treasury stock,"; 
(B) in paragraph (3), by adding at the end the following: 
"Any offer or sale of a security futures product by or on 
behalf of the issuer of the securities underlying the security 
futures product, an affiliate of the issuer, or an under-
writer, shall constitute a contract for sale of, sale of, offer 
for sale, or offer to sell the underlying securities."; and 
(C) by adding at the end the following: 
"(16) The terms 'security future', 'narrow-based security 
index', and 'security futures product' have the same meanings 
as provided in section 3(a)(55) of the Securities Exchange Act 
of 1934.". 
(2) EXEMPTION FROM REGISTRATION.—Section 3(a) of 
the 
Securities Act of 1933 (15 U.S.C. 77c(a)) is amended by adding 
at the end the following: 
"(14) Any security futures product that is— 
"(A) cleared by a clearing agency registered under sec-
tion 17A of the Securities Exchange Act of 1934 or exempt 
from registration under subsection (b)(7) of such section 
17A; and 
"(B) traded on a national securities exchange or a 
national securities association registered pursuant to sec-
tion 15A(a) of the Securities Exchange Act of 1934.". 
(3) CONFORMING AMENDMENT.—Section 12(a)(2) of the Secu-
rities Act of 1933 (15 U.S.C. 771(a)(2)) is amended by striking 
"paragraph (2)" and inserting "paragraphs (2) and (14)". 
(b) AMENDMENTS TO THE SECURITIES EXCHANGE ACT OF 1934.— 
(1) EXEMPTION FROM REGISTRATION.—Section 12(a) of the 
Securities Exchange Act of 1934 (15 U.S.C. 781(a)) is amended 
by adding at the end the following: "The provisions of this 
subsection shall not apply in respect of a security futures prod-
uct traded on a national securities exchange.". 
(2) EXEMPTIONS FROM REPORTING REQUIREMENT.—Section 
12(g)(5) of the Securities Exchange Act of 1934 (15 U.S.C. 
781(g)(5)) is amended by adding at the end the following: "For 
purposes of this subsection, a security futures product shall 
not be considered a class of equity security of the issuer of 
the securities underlying the security futures product.". 
(3) TRANSACTIONS BY CORPORATE INSIDERS.—Section 16 of 
the Securities Exchange Act of 1934 (15 U.S.C. 78p) is amended 
by adding at the end the following: 
"(f) TREATMENT OF TRANSACTIONS IN SECURITY FUTURES PROD-
UCTS.—^The provisions of this section shall apply to ownership of 
and transactions in security futures products.". 
SEC. 209. AMENDMENTS TO THE INVESTMENT COMPANY ACT OF 1940 
AND THE INVESTMENT ADVISERS ACT OF 1940. 
(a) DEFINITIONS UNDER THE INVESTMENT COMPANY ACT OF 
1940 AND THE INVESTMENT ADVISERS ACT OF 1940.— 
(1) Section 2(a)(36) of the Investment Company Act of 
1940 (15 U.S.C. 80a-2(a)(36)) is amended by inserting "security 
future," after "treasury stock,". 
(2) Section 202(a)(18) of the Investment Advisers Act of 
1940 (15 U.S.C. 80b-2(a)(18)) is amended by inserting "security 
future," after "treasury stock,". 
114 STAT. 2763A-436 
PUBLIC LAW 106-554—APPENDIX E 
(3) Section 2(a) of the Investment Company Act of 1940 
(15 U.S.C. 80a-2(a)) is amended by adding at the end the 
following: 
"(52) The terms 'security future' and 'narrow-based security 
index' have the same meanings as provided in section 3(a)(55) 
of the Securities Exchange Act of 1934.". 
(4) Section 202(a) of the Investment Advisers Act of 1940 
(15 U.S.C. 80b-2(a)) is amended by adding at the end the 
following: 
"(27) The terms 'security future' and 'narrow-based security 
index' have the same meanings as provided in section 3(a)(55) 
of the Securities Exchange Act of 1934.". 
(b) OTHER PROVISION.—Section 203(b) of the Investment Advis-
ers Act of 1940 (15 U.S.C. 80b-3(b)) is amended— 
(1) by striking "or" at the end of paragraph (4); 
(2) by striking the period at the end of paragraph (5) 
and inserting "; or"; and 
(3) by adding at the end the following: 
"(6) any investment adviser that is registered with the 
Commodity Futures Trading Commission as a commodity trad-
ing advisor whose business does not consist primarily of acting 
as an investment adviser, as defined in section 202(a)(ll) of 
this title, and that does not act as an investment adviser 
to— 
"(A) an investment company registered under title I 
of this Act; or 
"(B) a company which has elected to be a business 
development company pursuant to section 54 of title I 
of this Act and has not withdrawn its election.". 
SEC. 210. PREEMPTION OF STATE LAWS. 
Section 28(a) of the Securities Exchange Act of 1934 (15 U.S.C. 
78bb(a)) is amended— 
(1) in the last sentence— 
(A) by inserting "subject to this title" after "privilege, 
or other security"; and 
(B) by striking "any such instrument, if such 
instrument is traded pursuant to rules and regulations 
of a self-regulatory organization that are filed with the 
Commission pursuant to section 19(b) of this Act" and 
inserting "any such security"; and 
(2) by adding at the end the following new sentence: "No 
provision of State law regarding the offer, sale, or distribution 
of securities shall apply to any transaction in a security futures 
product, except that this sentence shall not be construed as 
limiting any State antifraud law of general applicability.". 
Subtitle B—^Amendments to the 
Commodity Exchange Act 
SEC. 251. JURISDICTION OF SECURITIES AND EXCHANGE COMMISSION; 
OTHER PROVISIONS. 
(a) JURISDICTION OF SECURITIES AND EXCHANGE COMMISSION.— 
(1) Section 2(a)(1)(C) of the Commodity Exchange Act (7 
U.S.C. 2a) (as redesignated by section 34(a)(2)(C)) is amended— 
(A) in clause (ii)— 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-437 
(i) by inserting "or register a derivatives trans-
action execution facility that trades or executes," after 
"contract market in,"; 
(ii) by inserting after "contracts) for future deliv-
e r y the following: ", and no derivatives transaction 
execution facility shall trade or execute such contracts 
of sale (or options on such contracts) for future deliv-
ery, ; 
(iii) by striking "making such application dem-
onstrates and the Commission expressly finds that the 
specific contract (or option on such contract) with 
respect to which the application has been made meets" 
Eind inserting "or the derivatives transaction execution 
facility, and the applicable contract, meet"; and 
(iv) by striking subclause (III) of clause (ii) and 
inserting the following: 
"(III) Such group or index of securities shall not con-
stitute a narrow-based security index."; 
(B) by striking clause (iii); 
(C) by striking clause (iv) and inserting the following: 
"(iii) If, in its discretion, the Commission determines that 
a stock index futures contract, notwithstanding its conformance 
with the requirements in clause (ii) of this subparagraph, can 
reasonably be used as a surrogate for trading a security (includ-
ing a security futures product), it may, by order, require such 
contract and any option thereon be traded and regulated as 
security futures products as defined in section 3(a)(56) of the 
Securities Exchange Act of 1934 and section la of this Act 
subject to all rules and regulations applicable to security futures 
products under this Act and the securities laws as defined 
in section 3(a)(47) of the Securities Exchange Act of 1934."; 
and 
(D) by redesignating clause (v) as clause (iv). 
(2) Section 2(a)( 1) of the Commodity Exchange Act (7 U.S.C. 
2, 2a, 4) is amended by adding at the end the following: 
"(D)(i) Notwithstanding any other provision of this Act, the 
Securities and Exchange Commission shall have jurisdiction and 
authority over security futures as defined in section 3(a)(55) of 
the Securities Exchange Act of 1934, section 2(a)(16) of the Securi-
ties Act of 1933, section 2(a)(52) of the Investment Company Act 
of 1940, and section 202(a)(27) of the Investment Advisers Act 
of 1940, options on security futures, and persons effecting trans-
actions in security futures and options thereon, and this Act shall 
apply to and the Commission shall have jurisdiction with respect 
to accounts, agreements (including any transaction which is of 
the character of, or is commonly known to the trade as, an 'option', 
'privilege', 'indemnity', 'bid', 'offer', 'put', 'call', 'advance guaranty', 
or 'decline guaranty'), contracts, and transactions involving, and 
may designate a board of trade as a contract market in, or register 
a derivatives transaction execution facility that trades or executes, 
a security futures product as defined in section la of this Act: 
Provided, however, That, except as provided in clause (vi) of this 
subparagraph, no board of trade shall be designated as a contract 
market with respect to, or registered as a derivatives transaction 
execution facility for, any such contracts of sale for future delivery 
unless the board of trade and the applicable contract meet the 
following criteria: 
114 STAT. 2763A-438 
PUBLIC LAW 106-554-APPENDIX E 
"(I) Except as otherwise provided in a rule, regulation, 
or order issued pursuant to clause (v) of this subparagraph, 
any security underlying the security future, including each 
component security of a narrow-based security index, is reg-
istered pursuant to section 12 of the Securities Exchange Act 
of 1934. 
"(II) If the security futures product is not cash settled, 
the board of trade on which the security futures product is 
traded has arrsmgements in place with a clearing agency reg-
istered pursuant to section 17A of the Securities Exchange 
Act of 1934 for the payment and delivery of the securities 
underlying the security futures product. 
"(Ill) Except as otherwise provided in a rule, regulation, 
or order issued pursuant to clause (v) of this subparagraph, 
the security future is based upon common stock and such 
other equity securities as the Commission and the Securities 
and Exchange Commission jointly determine appropriate. 
"(IV) The security futures product is cleared by a clearing 
agency that has in place provisions for linked and coordinated 
clearing with other clearing agencies that clear security futures 
products, which permits the security futures product to be 
purchased on a designated contract market, registered deriva-
tives transaction execution facility, national securities exchange 
registered under section 6(a) of the Securities Exchange Act 
of 1934, or national securities association registered pursuant 
to section 15A(a) of the Securities Exchange Act of 1934 and 
offset on another designated contract market, registered deriva-
tives transaction execution facility, national securities exchange 
registered under section 6(a) of the Securities Exchange Act 
of 1934, or national securities association registered pursuant 
to section 15A(a) of the Securities Exchange Act of 1934. 
"(V) Only futures commission merchants, introducing bro-
kers, commodity trading advisors, commodity pool operators 
or associated persons subject to suitability rules comparable 
to those of a national securities association registered pursuant 
to section 15A(a) of the Securities Exchange Act of 1934 solicit, 
accept any order for, or otherwise deal in any transaction 
in or in connection with the security futures product. 
"(VI) The security futures product is subject to a prohibition 
against dual trading in section 4j of this Act and the rules 
and regulations thereunder or the provisions of section 11(a) 
of the Securities Exchange Act of 1934 and the rules and 
regulations thereunder, except to the extent otherwise per-
mitted under the Securities Exchange Act of 1934 and the 
rules and regulations thereunder. 
"(VII) Trading in the security futures product is not readily 
susceptible to manipulation of the price of such security futures 
product, nor to causing or being used in the manipulation 
of the price of any underlying security, option on such security, 
or option on a group or index including such securities; 
"(VIII) The board of trade on which the security futures 
product is traded has procedures in place for coordinated 
surveillance among such board of trade, any market on which 
any security underlying the security futures product is traded, 
and other markets on which any related security is traded 
to detect manipulation and insider trading, except that, if the 
board of trade is an alternative trading system, a national 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-439 
securities association registered pursuant to section 15A(a) of 
the Securities Exchange Act of 1934 or national securities 
exchange registered pursuant to section 6(a) of the Securities 
Exchange Act of 1934 of which such alternative trading system 
is a member has in place such procedures. 
"(IX) The board of trade on which the security futures 
product is traded has in place audit trails necessary or appro-
priate to facilitate the coordinated surveillance required in sub-
clause (VIII), except that, if the board of trade is an alternative 
trading system, a national securities association registered 
pursuant to section 15A(a) of the Securities Exchange Act of 
1934 or national securities exchange registered pursuant to 
section 6(a) of the Securities Exchange Act of 1934 of which 
such alternative trading system is a member has rules to 
require such audit trails. 
"(X) The board of trade on which the security futures 
product is traded has in place procedures to coordinate trading 
halts between such board of trade and markets on which any 
security underlying the security futures product is traded and 
other markets on which any related security is traded, except 
that, if the board of trade is an alternative trading system, 
a national securities association registered pursuant to section 
15A(a) of the Securities Exchange Act of 1934 or national 
securities exchange registered pursuant to section 6(a) of the 
Securities Exchange Act of 1934 of which such alternative 
trading system is a member has rules to require such coordi-
nated trading halts. 
"(XI) The margin requirements for a security futures prod-
uct comply with the regulations prescribed pursuant to section 
7(c)(2)(B) of the Securities Exchange Act of 1934, except that 
nothing in this subclause shall be construed to prevent a board 
of trade from requiring higher margin levels for a security 
futures product when it deems such action to be necessary 
or appropriate. 
"(ii) It shall be unlawful for any person to offer, to enter 
into, to execute, to confirm the execution of, or to conduct any 
office or business an3rwhere in the United States, its territories 
or possessions, for the purpose of soliciting, or accepting any order 
for, or otherwise dealing in, any transaction in, or in connection 
with, a security futures product unless— 
"(I) the transaction is conducted on or subject to the rules 
of a board of trade that— 
"(aa) has been designated by the Commission as a 
contract market in such security futures product; or 
"(bb) is a registered derivatives transaction execution 
facility for the security futures product that has provided 
a certification with respect to the security futures product 
pursuant to clause (vii); 
"(II) the contract is executed or consummated by, through, 
or with a member of the contract market or registered deriva-
tives transaction execution facility; and 
"(III) the security futures product is evidenced by a record 
in writing which shows the date, the parties to such security 
futures product and their addresses, the property covered, and 
its price, and each contract market member or registered 
derivatives transaction execution facility member shall keep 
114 STAT. 2763A-440 
PUBLIC LAW 106-554—APPENDIX E 
the record for a period of 3 years from the date of the trans-
action, or for a longer period if the Commission so directs, 
which record shall at all times be open to the inspection of 
any duly authorized representative of the Commission. 
"(iii)(I) Except as provided in subclause (II) but notwithstanding 
any other provision of this Act, no person shall offer to enter 
into, enter into, or confirm the execution of any option on a security 
future. 
"(II) After 3 years after the date of the enactment of the 
Commodity Futures Modernization Act of 2000, the Commission 
and the Securities and Exchange Commission may by order jointly 
determine to permit trading of options on any security future 
authorized to be traded imder the provisions of this Act and the 
Securities Exchange Act of 1934. 
"(iv)(I) All relevant records of a futures commission merchant 
or introducing broker registered pursuant to section 4f(a)(2), floor 
broker or floor trader exempt from registration pursuant to section 
4f(a)(3), associated person exempt from registration pursuant to 
section 4k(6), or board of trade designated as a contract market 
in a security futures product pursuant to section 5f shall be subject 
to such reasonable periodic or special examinations by representa-
tives of the Commission as the Commission deems necessary or 
appropriate in the public interest, for the protection of investors, 
or otherwise in furtherance of the purposes of this Act, and the 
Commission, before conducting any such examination, shall give 
notice to the Securities and Exchange Commission of the proposed 
examination and consult with the Securities and Exchange Commis-
sion concerning the feasibility and desirability of coordinating the 
examination with examinations conducted by the Securities and 
Exchange Commission in order to avoid unnecessary regulatory 
duplication or undue regulatory burdens for the registrant or board 
of trade. 
"(II) The Commission shall notify the Securities and Exchange 
Commission of any examination conducted of any futures commis-
sion merchant or introducing broker registered pursuant to section 
4f(a)(2), floor broker or floor trader exempt from registration pursu-
ant to section 4f(a)(3), associated person exempt from registration 
pursuant to section 4k(6), or board of trade designated as a contract 
market in a security futures product pursuant to section 5f, and, 
upon request, furnish to the Securities and Exchange Commission 
any examination report and data supplied to or prepared by the 
Commission in connection with the examination. 
"(Ill) Before conducting an examination under subclause (I), 
the Commission shall use the reports of examinations, unless the 
information sought is unavailable in the reports, of any futures 
commission merchant or introducing broker registered pursuant 
to section 4f(a)(2), floor broker or floor trader exempt from registra-
tion pursuant to section 4f(a)(3), associated person exempt from 
registration pursuant to section 4k(6), or board of trade designated 
as a contract market in a security futures product pursuant to 
section 5f that is made by the Securities and Exchange Commission, 
a national securities association registered pursuant to section 
15A(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78o-
3(a)), or a national securities exchange registered pursuant to sec-
tion 6(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78f(a)). 
"(IV) Any records required under this subsection for a futures 
commission merchant or introducing broker registered pursuant 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-441 
to section 4fla)(2), floor broker or floor trader exempt from registra-
tion pursuant to section 4f(a)(3), associated person exempt from 
registration pursuant to section 4k(6), or board of trade designated 
as a contract market in a security futures product pursuant to 
section 5f, shall be limited to records with respect to accounts, 
agreements, contracts, and transactions involving security futures 
products. 
"(v)(I) The Commission and the Securities and Exchange 
Commission, by rule, regulation, or order, may jointly modify the 
criteria specified in subclause (I) or (III) of clause (i), including 
the trading of security futures based on securities other than equity 
securities, to the extent such modification fosters the development 
of fair and orderly markets in security futures products, is necessary 
or appropriate in the public interest, and is consistent with the 
protection of investors. 
"(II) The Commission and the Securities and Exchange Commis-
sion, by order, may jointly exempt any person from compliance 
with the criterion specified in clause (i)(IV) to the extent such 
exemption fosters the development of fair and orderly markets 
in security futures products, is necessary or appropriate in the 
public interest, and is consistent with the protection of investors. 
"(vi)(I) Notwithstanding clauses (i) and (vii), until the compli-
ance date, a board of trade shall not be required to meet the 
criterion specified in clause (i)(IV). 
"(II) The Commission and the Securities and Exchange Commis-
sion shall jointly publish in the Federal Register a notice of the 
compliance date no later than 165 days before the compliance 
date. 
"(Ill) For purposes of this clause, the term 'compliance date' 
means the later o
f
— 
"(aa) 180 days after the end of the first full calendar 
month period in which the average aggregate comparable share 
volume for all security futures products based on single equity 
securities traded on all designated contract markets and reg-
istered derivatives transaction execution facilities equals or 
exceeds 10 percent of the average aggregate comparable share 
volume of options on single equity securities traded on all 
national securities exchanges registered pursuant to section 
6(a) of the Securities Exchange Act of 1934 and any national 
securities associations registered pursuant to section 15A(a) 
of such Act; or 
"(bb) 2 years after the date on which trading in any security 
futures product commences under this Act. 
"(vii) It shall be unlawful for a board of trade to trade or 
execute a security futures product unless the board of trade has 
provided the Commission with a certification that the specific secu-
rity futures product and the board of trade, as applicable, meet 
the criteria specified in subclauses (I) through (XI) of clause (i), 
except as otherwise provided in clause (vi).". 
(b) MARGIN ON SECURITY FUTURES.—Section 2(a)(l)(C)(vi) of 
the Commodity Exchange Act (7 U.S.C. 2a(vi)) (as redesignated 
by section 34) is amended— 
(1) by redesignating subclause (V) as subclause (VI); and 
(2) by striking "(viXI)" and all that follows through sub-
clause (IV) and inserting the following: 
"(v)(I) Notwithstanding any other provision of this Act, 
any contract market in a stock index futures contract (or option 
79-194 O-00-16:QL3Part5 
114 STAT. 2763A-442 
PUBLIC LAW 106-554—APPENDIX E 
thereon) other than a security futures product, or any deriva-
tives transaction execution faciUty on which such contract or 
option is traded, shall file with the Board of Governors of 
the Federal Reserve System any rule establishing or changing 
the levels of margin (initial and maintenance) for such stock 
index futures contract (or option thereon) other than security 
futures products. 
"(II) The Board may at any time request any contract 
market or derivatives transaction execution facility to set the 
margin for any stock index futures contract (or option thereon), 
other than for any security futures product, at such levels 
as the Board in its judgment determines are appropriate to 
preserve the financial integrity of the contract market or deriva-
tives transaction execution facility, or its clearing system, or 
to prevent systemic risk. If the contract market or derivatives 
transaction execution facility fails to do so within the time 
specified by the Board in its request, the Board may direct 
the contract market or derivatives transaction execution facility 
to alter or supplement the rules of the contract market or 
derivatives transaction execution facility as specified in the 
request. 
"(Ill) Subject to such conditions as the Board may deter-
mine, the Board may delegate any or all of its authority, 
relating to margin for any stock index futures contract (or 
option thereon), other than security futures products, under 
this clause to the Commission. 
"(IV) It shall be unlawful for any futures commission mer-
chant to, directly or indirectly, extend or maintain credit to 
or for, or collect margin from any customer on any security 
futures product unless such activities comply with the regula-
tions prescribed pursuant to section 7(c)(2)(B) of the Securities 
Exchange Act of 1934. 
"(V) Nothing in this clause shall supersede or limit the 
authority granted to the Commission in section 8a(9) to direct 
a contract market or registered derivatives transaction execu-
tion facility, on finding an emergency to exist, to raise tem-
porary margin levels on any futures contract, or option on 
the contract covered by this clause, or on any security futures 
product.". 
(c) DUAL TRADING.—Section 4j of the Commodity Exchange 
Act (7 U.S.C. 6j) is amended to read as follows: 
"SEC. 4j. RESTRICTIONS ON DUAL TRADING IN SECURITY FUTURES 
PRODUCTS ON DESIGNATED CONTRACT MARKETS AND 
REGISTERED DERIVATIVES TRANSACTION EXECUTION 
FACILITIES. 
"(a) The Commission shall issue regulations to prohibit the 
privilege of dual trading in security futures products on each con-
tract market and registered derivatives transaction execution facil-
ity. The regulations issued by the Commission under this section— 
"(1) shall provide that the prohibition of dual trading there-
under shall take effect upon issuance of the regulations; and 
"(2) shall provide exceptions, as the Commission determines 
appropriate, to ensure fairness and orderly trading in security 
futures product markets, including— 
"(A) exceptions for spread transactions Euid the correc-
tion of trading errors; 
PUBLIC LAW 106-554-APPENDIX E 
114 STAT. 2763A-443 
"(B) allowance for a customer to designate in writing 
not less than once annually a named floor broker to execute 
orders for such customer, notwithstanding the regulations 
to prohibit the privilege of dual trading required under 
this section; and 
"(C) other measures reasonably designed to accommo-
date unique or special characteristics of individual boards 
of trade or contract markets, to address emergency or 
unusual market conditions, or otherwise to further the 
public interest consistent with the promotion of market 
efficiency, 
innovation, 
and 
expansion 
of 
investment 
opportunities, the protection of investors, and with the 
purposes of this section. 
"(b) As used in this section, the term 'dual trading* means 
the execution of customer orders by a floor broker during the 
same trading session in which the floor broker executes any trade 
in the same contract market or registered derivatives transaction 
execution facility for— 
"(1) the account of such floor broker; 
"(2) an accoiuit for which such floor broker has trading 
discretion; or 
"(3) an account controlled by a person with whom such 
floor broker has a relationship through membership in a broker 
association. 
"(c) As used in this section, the term 'broker association' shall 
include two or more contract market members or registered deriva-
tives transaction execution facility members with floor trading privi-
leges of whom at least one is acting as a floor broker, who— 
"(1) engage in floor brokerage activity on behalf of the 
same employer, 
"(2) have an employer and employee relationship which 
relates to floor brokerage activity, 
"(3) share profits and losses associated with their brokerage 
or trading activity, or 
"(4) regularly share a deck of orders.". 
(d) EXEMPTION FROM REGISTRATION FOR INVESTMENT ADVIS-
ERS.—Section 4m of the Commodity Exchange Act (7 U.S.C. 6m) 
is amended by adding at the end the following: 
"(3) Subsection (1) of this section shall not apply to any commod-
ity trading advisor that is registered with the Securities and 
Exchange Commission as an investment adviser whose business 
does not consist primarily of acting as a commodity trading advisor, 
as defined in section la(6), and that does not act as a commodity 
trading advisor to any investment trust, syndicate, or similar form 
of enterprise that is engaged primarily in trading in any commodity 
for future delivery on or subject to the rules of any contract market 
or registered derivatives transaction execution facility.". 
(e) EXEMPTION FROM INVESTIGATIONS OF MARKETS IN UNDERLY-
ING SECURITIES.—Section 16 of the Commodity Exchange Act (7 
U.S.C. 20) is amended by adding at the end the following: 
"(e) This section shall not apply to investigations involving 
any security underlying a security futures product.". 
(f) RULEMAKING AUTHORITY TO ADDRESS DUPLICATIVE REGULA-
TION 
OF 
DUAL 
REGISTRANTS.—Section 
4d 
of 
the 
Commodity 
Exchange Act (7 U.S.C. 6d) is amended— 
(1) by inserting "(a)" before the first undesignated para-
graph; 
114 STAT. 2763A-444 
PUBLIC LAW 106-554—APPENDIX E 
(2) by inserting "(b)" before the second undesignated para-
graph; and 
(3) by adding at the end the following: 
"(c) Consistent with this Act, the Commission, in consultation 
with the Securities and Exchange Commission, shall issue such 
rules, regulations, or orders as are necessary to avoid duplicative 
or conflicting regulations applicable to any futures commission mer-
chant registered with the Commission pursuant to section 4f(a) 
(except paragraph (2) thereof), that is also registered with the 
Securities and Exchange Commission pursuant to section 15(b) 
of the Securities Exchange Act (except paragraph (11) thereof), 
involving the application of— 
"(1) section 8, section 15(c)(3), and section 17 of the Securi-
ties Exchange Act of 1934 and the rules and regulations there-
under related to the treatment of customer funds, securities, 
or property, maintensince of books and records, financial report-
ing or other financial responsibility rules (as defined in section 
3(a)(40) of the Securities Exchange Act of 1934), involving secu-
rity futures products; and 
"(2) similar provisions of this Act and the rules and regula-
tions thereunder involving security futures products.", 
(g) OBLIGATION TO ADDRESS DUPLICATIVE REGULATION OF DUAL 
REGISTRANTS.—Section 17 of the Commodity Exchange Act (7 U.S.C. 
21) is amended by adding at the end the following: 
"(r) Consistent with this Act, each futures association registered 
under this section shall issue such rules as are necessary to avoid 
duplicative or conflicting rules applicable to any futures commission 
merchant registered with the Commission pursuant to section 4f(a) 
of this Act (except paragraph (2) thereof), that is also registered 
with the Securities and Exchange Commission pursuant to section 
15(b) of the Securities and Exchange Act of 1934 (except paragraph 
(11) thereof), with respect to the application of— 
"(1) rules of such futures association of the type specified 
in section 4d(3) of this Act involving security futures products; 
£md 
"(2) similar rules of national securities associations reg-
istered pursuant to section 15A(a) of the Securities and 
Exchange Act of 1934 involving security futures products.", 
(h) OBLIGATION TO ADDRESS DUPLICATIVE REGULATION OF DUAL 
REGISTRANTS.—Section 5c of the Commodity Exchange Act (as 
added by section 114) is amended by adding at the end the following: 
"(f) Consistent with this Act, each designated contract market 
and registered derivatives transaction execution facility shall issue 
such rules as are necessary to avoid duplicative or conflicting rules 
applicable to any futures commission merchant registered with 
the Commission pursuant to section 4f(a) of this Act (except para-
graph (2) thereof), that is also registered with the Securities and 
Exchange Commission pursuant to section 15(b) of the Securities 
Exchange Act of 1934 (except paragraph (11) thereof) with respect 
to the application o
f
— 
"(1) rules of such designated contract market or registered 
derivatives transaction execution facility of the type specified 
in section 4d(3) of this Act involving security futures products; 
and 
"(2) similar rules of national securities associations reg-
istered pursuant to section 15A(a) of the Securities Exchange 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-445 
Act of 1934 and national securities exchanges registered pursu-
ant to section 6(g) of such Act involving security futures prod-
ucts.". 
(i) OBLIGATION TO ADDRESS SECURITY FUTURES PRODUCTS 
TRADED ON FOREIGN EXCHANGES.—Section 2(a)(1) of the Commodity 
Exchange Act (7 U.S.C. 2, 2a, and 4) is amended by adding at 
the end the following: 
"(E)(i) To the extent necessary or appropriate in the public 
interest, to promote fair competition, and consistent with promotion 
of market efficiency, innovation, and expansion of investment 
opportunities, the protection of investors, and the maintenance 
of fair and orderly markets, the Commission and the Securities 
and Exchange Commission shall jointly issue such rules, regula-
tions, or orders as are necessary and appropriate to permit the 
offer and sale of a security futures product traded on or subject 
to the rules of a foreign board of trade to United States persons. 
"(ii) The rules, regulations, or orders adopted under clause 
(i) shall take into account, as appropriate, the nature and size 
of the markets that the securities underlying the security futures 
product reflects.". 
(j) SECURITY FUTURES PRODUCTS TRADED ON FOREIGN BOARDS 
OF 'rtlADE.—Section 2(a)(1) of the Commodity Exchange Act (7 
U.S.C. 2, 2a, and 4) is amended by adding at the end the following: 
"(F)(i) Nothing in this Act is intended to prohibit a futures 
commission merchant from carrying security futures products 
traded on or subject to the rules of a foreign board of trade in 
the accounts of persons located outside of the United States. 
"(ii) Nothing in this Act is intended to prohibit any eligible 
contract participant located in the United States from purchasing 
or carrying securities futures products traded on or subject to 
the rules of a foreign board of trade, exchange, or market to the 
same extent such person may be authorized to purchase or carry 
other securities traded on a foreign board of trade, exchange, or 
market so long as any underlying security for such security futures 
products is traded principally on, by, or through any exchange 
or market located outside the United States.". 
SEC. 252. APPLICATION OF THE COMMODITY EXCHANGE ACT TO 
NATIONAL 
SECURITIES EXCHANGES AND NATIONAL 
SECURITIES 
ASSOCIATIONS THAT TRADE 
SECURITY 
FUTURES. 
(a) NOTICE DESIGNATION OF NATIONAL SECURITIES EXCHANGES 
AND 
NATIONAL 
SECURITIES 
ASSOCL^TIONS.—The 
Commodity 
Exchange Act is amended by inserting after section 5e (7 U.S.C. 
7b), as redesignated by section 21(1), the following: 
"SEC. 5f. DESIGNATION OF SECURITIES EXCHANGES AND ASSOCIA-
TIONS AS CONTRACT MARKETS. 
"(a) Any board of trade that is registered with the Securities 
and Exchange Commission as a national securities exchange, is 
a national securities association registered pursuant to section 
15A(a) of the Securities Exchange Act of 1934, or is an alternative 
trading system shall be a designated contract market in security 
futures products if— 
"(1) such national securities exchange, national securities 
association, or alternative trading system lists or trades no 
other contracts of sale for future delivery, except for security 
futures products; 
114 STAT. 2763A-446 
PUBLIC LAW 106-554—APPENDIX E 
"(2) such national securities exchange, national securities 
association, or alternative trading system files written notice 
with the Commission in such form as the Commission, by 
rule, may prescribe containing such information as the Commis-
sion, by rule, may prescribe as necessary or appropriate in 
the public interest or for the protection of customers; and 
"(3) the registration of such national securities exchange, 
national securities association, or alternative trading system 
is not suspended pursuant to an order by the Securities and 
Exchange Commission. 
Such designation shall be effective contemporaneously with the 
submission of notice, in written or electronic form, to the Commis-
sion. 
"(b)(1) A national securities exchange, national securities 
association, or alternative trading system that is designated as 
a contract market pursuant to section 5f shall be exempt from 
the following provisions of this Act and the rules thereunder: 
"(A) Subsections (c), (e), and (g) of section 4c. 
"(B) Section 4j. 
"(C) Section 5. 
"(D) Section 5c. 
"(E) Section 6a. 
"(F) Section 8(d). 
"(G) Section 9(f). 
"(H) Section 16. 
"(2) An alternative trading system that is a designated contract 
market under this section shall be required to be a member of 
a futures association registered under section 17 and shall be 
exempt from any provision of this Act that would require such 
alternative trading system to— 
"(A) set rules governing the conduct of subscribers other 
than the conduct of such subscribers' trading on such alter-
native trading system; or 
"(B) discipline subscribers other than by exclusion from 
trading. 
"(3) To the extent that an alternative trading system is exempt 
from any provision of this Act pursuant to paragraph (2) of this 
subsection, the futures association registered under section 17 of 
which the alternative trading system is a member shall set rules 
governing the conduct of subscribers to the alternative trading 
system and discipline the subscribers. 
"(4)(A) Except as provided in subparagraph (B), but notwith-
standing any other provision of this Act, the Commission, by rule, 
regulation, or order, may conditionally or unconditionally exempt 
any designated contract market in security futures subject to the 
designation requirement of this section from any provision of this 
Act or of any rule or regulation thereunder, to the extent such 
exemption is necessary or appropriate in the public interest and 
is consistent with the protection of investors. 
"(B) The Commission shall, by rule or regulation, determine 
the procedures under which an exemptive order under this section 
is granted and may, in its sole discretion, decline to entertain 
any application for an order of exemption under this section. 
"(C) An alternative trading system shall not be deemed to 
be an exchange for any purpose as a result of the designation 
of such alternative trading system as a contract market under 
this section.". 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-447 
(b) NOTICE REGISTRATION OF CERTAIN SECURITIES BROKER-
DEALERS; EXEMPTION FROM REGISTRATION FOR CERTAIN SECURITIES 
BROKER-DEALERS.—Section 4fl^a) of the Commodity Exchange Act 
(7 U.S.C. 6Ka)) is amended— 
(1) by inserting "(1)" after "(a)"; and 
(2) by adding at the end the following: 
"(2) Notwithstanding paragraph (1), and except as provided 
in paragraph (3), any broker or dealer that is registered with 
the Securities and Exchange Commission shall be registered as 
a futures commission merchant or introducing broker, as applicable, 
if— 
"(A) the broker or dealer limits its solicitation of orders, 
acceptance of orders, or execution of orders, or placing of orders 
on behalf of others involving any contracts of sale of any 
commodity for future delivery, on or subject to the rules of 
any contract market or registered derivatives transaction execu-
tion facility to security futures products; 
"(B) the broker or dealer files written notice with the 
Commission in such form as the Commission, by rule, may 
prescribe containing such information as the Commission, by 
rule, may prescribe as necessary or appropriate in the public 
interest or for the protection of investors; 
"(C) the registration of the broker or dealer is not sus-
pended pursuant to an order of the Securities and Exchange 
Commission; and 
"(D) the broker or dealer is a member of a national securi-
ties association registered pursuant to section 15A(a) of the 
Securities Exchange Act of 1934. 
The registration shall be effective contemporaneously with the 
submission of notice, in written or electronic form, to the Commis-
sion. 
"(3) A floor broker or floor trader shall be exempt from the 
registration requirements of section 4e and paragraph (1) of this 
subsection if— 
"(A) the floor broker or floor trader is a broker or dealer 
registered with the Securities smd Exchange Commission; 
"(B) the floor broker or floor trader limits its solicitation 
of orders, acceptance of orders, or execution of orders, or placing 
of orders on behalf of others involving any contracts of sale 
of any commodity for future delivery, on or subject to the 
rules of any contract market to security futures products; and 
"(C) the registration of the floor broker or floor trader 
is not suspended pursuant to an order of the Securities and 
Exchange Commission.". 
(c) EXEMPTION FOR SECURITIES BROKER-DEALERS FROM CER-
TAIN PROVISIONS OF THE COMMODITY EXCHANGE ACT.—Section 4^a) 
of the Commodity Exchange Act (7 U.S.C. 6fTa)) is amended by 
inserting after paragraph (3), as added by subsection (b) of this 
section, the following: 
"(4)(A) A broker or dealer that is registered as a futures commis-
sion merchant or introducing broker pursuant to paragraph (2), 
or that is a floor broker or floor trader exempt from registration 
pursuant to paragraph (3), shall be exempt from the following 
provisions of this Act and the rules thereunder: 
"(i) Subsections (b), (d), (e), and (g) of section 4c. 
"(ii) Sections 4d, 4e, and 4h. 
"(iii) Subsections (b) and (c) of this section. 
114 STAT. 2763A-448 
PUBLIC LAW 106-554—APPENDIX E 
"(iv) Section 4j. 
"(v) Section 4k(l). 
"(vi) Section 4p. 
"(vii) Section 6d. 
"(viii) Subsections (d) ar 1 (g) of section 8. 
"(ix) Section 16. 
"(B)(i) Except as provided in clause (ii) of this subparagraph, 
but notwithstanding any other provision of this Act, the Commis-
sion, by rule, regulation, or order, may conditionally or uncondition-
ally exempt any broker or dealer subject to the registration require-
ment of paragraph (2), or any broker or dealer exempt from registra-
tion pursuant to paragraph (3), from any provision of this Act 
or of any rule or regulation thereunder, to the extent the exemption 
is necessary or appropriate in the public interest and is consistent 
with the protection of investors. 
"(ii) The Commission shall, by rule or regulation, determine 
the procedures under which an exemptive order under this section 
shall be granted and may, in its sole discretion, decline to entertain 
any application for an order of exemption under this section. 
"(C)(i) A broker or dealer that is registered as a futures commis-
sion merchant or introducing broker pursuant to paragraph (2) 
or an associated person thereof, or that is a floor broker or floor 
trader exempt from registration pursuant to paragraph (3), shall 
not be required to become a member of any futures association 
registered under section 17. 
"(ii) No futures association registered under section 17 shall 
limit its members from carrying an account, accepting an order, 
or trsmsacting business with a broker or dealer that is registered 
as a futures commission merchant or introducing broker pursuant 
to paragraph (2) or an associated person thereof, or that is a 
floor broker or floor trader exempt from registration pursuant to 
paragraph (3).". 
(d) 
EXEMPTIONS FOR ASSOCIATED PERSONS OF SECURITIES 
BROKER-DEALERS.—Section 4k of the Commodity Exchange Act (7 
U.S.C. 6k), is amended by inserting after paragraph (4), as added 
by subsection (c) of this section, the following: 
"(5) Any associated person of a broker or dealer that is reg-
istered with the Securities and Exchange Commission, and who 
limits its solicitation of orders, acceptance of orders, or execution 
of orders, or placing of orders on behalf of others involving any 
contracts of sale of any commodity for future delivery or any option 
on such a contract, on or subject to the rules of any contract 
market or registered derivatives transaction execution facility to 
security futures products, shall be exempt from the following provi-
sions of this Act and the rules thereunder: 
"(A) Subsections (b), (d), (e), and (g) of section 4c. 
"(B) Sections 4d, 4e, and 4h. 
"(C) Subsections (b) and (c) of section 4f. 
"(D) Section 4j. 
"(E) Paragraph (1) of this section. 
"(F) Section 4p. 
"(G) Section 6d. 
"(H) Subsections (d) and (g) of section 8. 
"(I) Section 16.". 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-449 
SEC. 253. NOTIFICATION OF INVESTIGATIONS AND ENFORCEMENT 
ACTIONS. 
(a) Section 8(a) of the Commodity Exchange Act (7 U.S.C. 
12(a)) is amended by adding at the end the following: 
"(3) The Commission shall provide the Securities and Exchange 
Commission with notice of the commencement of any proceeding 
and a copy of any order entered by the Commission against any 
futures commission merchant or introducing broker registered 
pursuant to section 4f(a)(2), any floor broker or floor trader exempt 
from registration pursuant to section 4f(a)(3), any associated person 
exempt from registration pursuant to section 4k(6), or any board 
of trade designated as a contract market pursuant to section 5f.". 
(b) Section 6 of the Commodity Exchange Act (7 U.S.C. 8, 
9, 9a, 9b, 13b, 15) is amended by adding at the end the following: 
"(g) The Commission shall provide the Securities and Exchange 
Commission with notice of the commencement of any proceeding 
and a copy of any order entered by the Commission pursuant 
to subsections (c) and (d) of this section against any futures commis-
sion merchant or introducing broker registered pursuant to section 
4f^a)(2), any floor broker or floor trader exempt from registration 
pursuant to section 4f(a)(3), any associated person exempt from 
registration pursuant to section 4k(6), or any board of trade des-
ignated as a contract market pursuant to section 5f". 
(c) Section 6c of the Commodity Exchange Act (7 U.S.C. 13a-
1) is amended by adding at the end the following: 
"(h) The Commission shall provide the Securities and Exchange 
Commission with notice of the commencement of any proceeding 
and a copy of any order entered by the Commission against any 
futures commission merchant or introducing broker registered 
pursuant to section 4f(a)(2), any floor broker or floor trader exempt 
from registration pursuant to section 4f(a)(3), any associated person 
exempt from registration pursuant to section 4k(6), or any board 
of trade designated as a contract market pursuant to section 5f.". 
TITLE III—LEGAL CERTAINTY FOR 
SWAP AGREEMENTS 
SEC. 301. SWAP AGREEMENT. 
(a) AMENDMENT.—Title II of the Gramm-Leach-Bliley Act (Pub-
lic Law 106-102) is amended by inserting after section 206 the 
following new sections: 
"SEC. 206A- SWAP AGREEMENT. 
"(a) IN GENERAL.—Except as provided in subsection (b), as 
used in this section, the term 'swap agreement' means any agree-
ment, contract, or transaction between eligible contract participants 
(as defined in section la(12) of the Commodity Exchange Act as 
in effect on the date of the enactment of this section), other than 
a person that is an eligible contract participant under section 
la(12)(C) of the Commodity Exchange Act, the material terms of 
which (other than price and quantity) are subject to individual 
negotiation, and that— 
"(1) is a put, call, cap, floor, collar, or similar option of 
any kind for the purchase or sale of, or based on the value 
of, one or more interest or other rates, currencies, commodities, 
114 STAT. 2763A-450 
PUBLIC LAW 106-554—APPENDIX E 
indices, quantitative measures, or other financial or economic 
interests or property of any kind; 
"(2) provides for any purchase, sale, pa3anent or delivery 
(other than a dividend on an equity security) that is dependent 
on the occurrence, non-occurrence, or the extent of the occur-
rence of an event or contingency associated with a potential 
financial, economic, or commercial consequence; 
"(3) provides on an executory basis for the exchange, on 
a fixed or contingent basis, of one or more payments based 
on the value or level of one or more interest or other rates, 
currencies, commodities, securities, instruments of indebted-
ness, indices, quantitative measures, or other financial or eco-
nomic interests or property of any kind, or any interest therein 
or based on the value thereof, and that transfers, as between 
the parties to the transaction, in whole or in part, the financial 
risk associated with a future change in any such value or 
level without also conveying a current or future direct or 
indirect ownership interest in an asset (including any enterprise 
or investment pool) or liability that incorporates the financial 
risk so transferred, including any such agreement, contract, 
or transaction commonly known as an interest rate swap, 
including a rate floor, rate cap, rate collar, cross-currency rate 
swap, basis swap, currency swap, equity index swap, equity 
swap, debt index swap, debt swap, credit spread, credit default 
swap, credit swap, weather swap, or commodity swap; 
"(4) provides for the purchase or sale, on a fixed or contin-
gent basis, of any commodity, currency, instrument, interest, 
right, service, good, article, or property of any kind; or 
"(5) is any combination or permutation of, or option on, 
any agreement, contract, or transaction described in any of 
paragraphs (1) through (4). 
"(b) 
EXCLUSIONS.—The term 'swap agreement' 
does 
not 
include— 
"(1) any put, call, straddle, option, or privilege on any 
security, certificate of deposit, or group or index of securities, 
including any interest therein or based on the value thereof; 
"(2) any put, call, straddle, option, or privilege entered 
into on a national securities exchange registered pursuant to 
section 6(a) of the Securities Exchange Act of 1934 relating 
to foreign currency; 
"(3) any agreement, contract, or transaction providing for 
the purchase or sale of one or more securities on a fixed 
basis; 
"(4) any agreement, contract, or transaction providing for 
the purchase or sale of one or more securities on a contingent 
basis, unless such agreement, contract, or transaction predi-
cates such purchase or sale on the occurrence of a bona fide 
contingency that might reasonably be expected to affect or 
be affected by the creditworthiness of a party other than a 
party to the agreement, contract, or transaction; 
"(5) any note, bond, or evidence of indebtedness that is 
a security as defined in section 2(a)(1) of the Securities Act 
of 1933 or section 3(a)(10) of the Securities Exchange Act of 
1934;or 
"(6) any agreement, contract, or transaction that is— 
"(A) based on a security; and 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-451 
"(B) entered into directly or through an underwriter 
(as defined in section 2(a) of the Securities Act of 1933) 
by the issuer of such security for the purposes of raising 
capital, unless such agreement, contract, or transaction 
is entered into to manage a risk associated with capital 
raising. 
"(c) 
RULE OF CONSTRUCTION 
REGARDING 
MASTER 
AGREE-
MENTS.—As used in this section, the term 'swap agreement' shall 
be construed to include a master agreement that provides for an 
agreement, contract, or transaction that is a swap agreement pursu-
ant to subsections (a) and (b), together with all supplements to 
any such master agreement, without regard to whether the master 
agreement contains an agreement, contract, or transaction that 
is not a swap agreement pursuant to subsections (a) and (b), except 
that the master agreement shall be considered to be a swap agree-
ment only with respect to each agreement, contract, or transaction 
imder the master agreement that is a swap agreement pursuant 
to subsections (a) and (b). 
"SEC. 20eB. SECURITY-BASED SWAP AGREEMENT. 
"As used in this section, the term 'security-based swap agree-
ment' means a swap agreement (as defined in section 206A) of 
which a material term is based on the price, yield, value, or vola-
tility of any security or any group or index of securities, or any 
interest therein. 
"SEC. 206C. NON-SECURITY-BASED SWAP AGREEMENT. 
"As used in this section, the term 'non-security-based swap 
agreement' means any swap agreement (as defined in section 206A) 
that is not a security-based swap agreement (as defined in section 
206B).". 
(b) SECURITY DEFINITION.—^As used in the amendment made 
by subsection (a), the term "security" has the same meaning as 
in section 2(a)(1) of the Securities Act of 1933 or section 3(aX10) 
of the Securities Exchange Act of 1934. 
SEC. 302. AMENDMENTS TO THE SECURITIES ACT OF 1933. 
(a) ENFORCEMENT FOCUS.—^The Securities Act of 1933 is amend-
ed by inserting after section 2 (15 U.S.C. 77b) the following new 
section: 
"SEC. 2A. SWAP AGREEMENTS. 
"(a) NON-SECURITY-BASED SWAP AGREEMENTS.—^The definition 
of 'security' in section 2(a)(1) of this title does not include any 
non-security-based swap agreement (as defined in section 206C 
of the Gramm-Leach-Bliley Act). 
"(b) SECURITY-BASED SWAP AGREEMENTS.-— 
"(1) The definition of 'security' in section 2(a)(1) of this 
title does not include any security-based swap agreement (as 
defined in section 206B of the Gramm-Leach-Bliley Act). 
"(2) The Commission is prohibited from registering, or 
requiring, recommending, or suggesting, the registration under 
this title of any security-based swap agreement (as defined 
in section 206B of the Gramm-Leach-Bliley Act). If the Commis-
sion becomes aware that a registrant has filed a registration 
114 STAT. 2763A-452 
PUBLIC LAW 106-554—APPENDIX E 
statement with respect to such a swap agreement, the Commis-
sion shall promptly so notify the registrant. Any such registra-
tion statement with respect to such a swap agreement shall 
be void and of no force or effect. 
"(3) The Commission is prohibited from— 
"(A) promulgating, interpreting, or enforcing rules; or 
"(B) issuing orders of general applicability; 
under this title in a manner that imposes or specifies reporting 
or recordkeeping requirements, procedures, or standards as 
prophylactic measures against fraud, manipulation, or insider 
trading with respect to any security-based swap agreement 
(as defined in section 206B of the Gramm-Leach-Bliley Act). 
"(4) References in this title to the 'purchase' or 'sale' of 
a security-based swap agreement shall be deemed to mean 
the execution, termination (prior to its scheduled maturity 
date), assignment, exchange, or similar transfer or conveyance 
of, or extinguishing of rights or obligations under, a security-
based swap agreement (as defined in section 206B of the 
Gramm-Leach-Bliley Act), as the context may require.". 
(b) 
ANTI-FRAUD 
AND 
ANTI-MANIPULATION 
ENFORCEMENT 
AUTHORITY.—Section 17(a) of the Securities Act of 1933 (15 U.S.C. 
77q(a)) is amended to read as follows: 
"(a) It shall be unlawful for any person in the offer or sale 
of any securities or any security-based swap agreement (as defined 
in section 206B of the Gramm-Leach-Bliley Act) by the use of 
any means or instruments of transportation or communication in 
interstate commerce or by use of the mails, directly or indirectly— 
"(1) to employ any device, scheme, or artifice to defraud, 
or 
"(2) to obtain money or property by means of any untrue 
statement of a material fact or any omission to state a material 
fact necessary in order to make the statements made, in light 
of the circumstances under which they were made, not mislead-
ing; or 
"(3) to engage in any transaction, practice, or course of 
business which operates or would operate as a fraud or deceit 
upon the purchaser.". 
(c) LIMITATION.—Section 17 of the Securities Act 
of 1933 
is 
amended by adding at the end the following new subsection: 
"(d) The authority of the Commission under this section with 
respect to security-based swap agreements (as defined in section 
206B of the Gramm-Leach-Bliley Act) shall be subject to the restric-
tions and limitations of section 2A(b) of this title.". 
SEC. 303. AMENDMENTS TO THE SECURITIES EXCHANGE ACT OF 1934. 
(a) ENFORCEMENT FOCUS.—^The Securities Exchange Act of 1934 
is amended by inserting after section 3 (15 U.S.C. 78c) the following 
new section: 
"SEC. 3A. SWAP AGREEMENTS. 
"(a) NON-SECURITY-BASED SWAP AGREEMENTS.—The definition 
of 'security' in section 3(a)(10) of this title does not include any 
non-security-based swap agreement (as defined in section 206C 
of the Gramm-Leach-Bliley Act). 
"(b) SECURITY-BASED SWAP AGREEMENTS.— 
"(1) The definition of 'security' in section 3(a)(10) of this 
title does not include any security-based swap agreement (as 
defined in section 206B of the Gramm-Leach-Bliley Act). 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-453 
"(2) The Commission is prohibited from registering, or 
requiring, recommending, or suggesting, the registration under 
this title of any security-based swap agreement (as defined 
in section 206B of the Gramm-Leach-BHley Act). If the Commis-
sion becomes aware that a registrant has filed a registration 
application with respect to such a swap agreement, the Commis-
sion shall promptly so notify the registrant. Any such registra-
tion with respect to such a swap agreement shall be void 
and of no force or effect. 
"(3) Except as provided in section 16(a) with respect to 
reporting requirements, the Commission is prohibited from— 
"(A) promulgating, interpreting, or enforcing rules; or 
"(B) issuing orders of general applicability; 
under this title in a manner that imposes or specifies reporting 
or recordkeeping requirements, procedures, or standards as 
prophylactic measures against fraud, manipulation, or insider 
trading with respect to any security-based swap agreement 
(as defined in section 206B of the Gramm-Leach-Bliley Act). 
"(4) References in this title to the 'purchase' or 'sale' of 
a security-based swap agreement (as defined in section 206B 
of the Gramm-Leach-Bliley Act) shall be deemed to mean the 
execution, termination (prior to its scheduled maturity date), 
assignment, exchange, or similar transfer or conveyance of, 
or extinguishing of rights or obligations under, a security-based 
swap agreement, as the context may require.". 
(b) ANTI-FRAUD, ANTI-MANIPULATION ENFORCEMENT AUTHOR-
ITY.—Paragraphs (2) through (5) of section 9(a) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78i(a)(2)-(5)) are amended to 
read as follows: 
"(2) To effect, alone or with one or more other persons, a 
series of transactions in any security registered on a national securi-
ties exchange or in connection with any security-based swap agree-
ment (as defined in section 206B of the Gramm-Leach-Bliley Act) 
with respect to such security creating actual or apparent active 
trading in such security, or raising or depressing the price of such 
security, for the purpose of inducing the purchase or sale of such 
security by others. 
"(3) If a dealer or broker, or other person selling or offering 
for sale or purchasing or offering to purchase the security or a 
security-based swap agreement (as defined in section 206B of the 
Gramm-Leach-Bliley Act) with respect to such security, to induce 
the purchase or sale of any security registered on a national securi-
ties exchange or any security-based swap agreement (as defined 
in section 206B of the Gramm-Leach-Bliley Act) with respect to 
such security by the circulation or dissemination in the ordinary 
course of business of information to the effect that the price of 
any such security will or is likely to rise or fall because of market 
operations of any one or more persons conducted for the purpose 
of raising or depressing the price of such security. 
"(4) If a dealer or broker, or the person selling or offering 
for sale or purchasing or offering to purchase the security or a 
security-based swap agreement (as defined in section 206B of the 
Gramm-Leach-Bliley Act) with respect to such security, to make, 
regarding any security registered on a national securities exchange 
or any security-based swap agreement (as defined in section 206B 
of the Gramm-Leach-Bliley Act) with respect to such security, for 
the purpose of inducing the purchase or sale of such security or 
114 STAT. 2763A-454 
PUBLIC LAW 106-554—APPENDIX E 
such security-based swap agreement, any statement which was 
at the time and in the Ught of the circumstances under which 
it was made, false or misleading with respect to any material 
fact, and which he knew or had reasonable ground to believe was 
so false or misleading. 
"(5) For a consideration, received directly or indirectly from 
a dealer or broker, or other person selling or offering for sale 
or purchasing or offering to purchase the security or a security-
based swap agreement (as defined in section 206B of the Gramm-
Leach-Bliley Act) with respect to such security, to induce the pur-
chase of any security registered on a national securities exchange 
or any security-based swap agreement (as defined in section 206B 
of the Gramm-Leach-Bliley Act) with respect to such security by 
the circulation or dissemination of information to the effect that 
the price of any such security will or is likely to rise or fall 
because of the market operations of any one or more persons con-
ducted for the purpose of raising or depressing the price of such 
security.". 
(c) LIMITATION.—Section 9 of the Securities Exchange Act of 
1934 is amended by adding at the end the following new subsection: 
"(i) The authority of the Commission under this section with 
respect to security-based swap agreements (as defined in section 
206B of the Gramm-Leach-Bliley Act) shall be subject to the restric-
tions and limitations of section 3A(b) of this title.". 
(d) REGULATIONS ON THE USE OF MANIPULATIVE AND DECEPTIVE 
DEVICES.—Section 10 of the Securities Exchange Act of 1934 (15 
U.S.C. 78j) is amended— 
(1) in subsection (b), by inserting "or any securities-based 
swap agreement (as defined in section 206B of the Gramm-
Leach-Bliley Act)," before "any manipulative or deceptive 
device"; and 
(2) by adding at the end the following: 
"Rules promulgated under subsection (b) that prohibit fraud, 
manipulation, or insider trading (but not rules imposing or specify-
ing reporting or recordkeeping requirements, procedures, or stand-
ards as prophylactic measures against fraud, manipulation, or 
insider trading), and judicial precedents decided under subsection 
(b) and rules promulgated thereunder that prohibit fraud, manipula-
tion, or insider trading, shall apply to security-based swap agree-
ments (as defined in section 206B of the Gramm-Leach-Bliley Act) 
to the same extent as they apply to securities. Judicial precedents 
decided under section 17(a) of the Securities Act of 1933 and sections 
9, 15, 16, 20, and 21A of this title, and judicial precedents decided 
under applicable rules promulgated under such sections, shall apply 
to security-based swap agreements (as defined in section 206B 
of the Gramm-Leach-Bliley Act) to the same extent as they apply 
to securities.". 
(e) 
BROKER, 
DEALER 
ANTI-FRAUD, 
ANTI-MANIPULATION 
ENFORCEMENT 
AUTHORITY.—Section 15(c)(1) of the 
Securities 
Exchange Act of 1934 (15 U.S.C. 78o(c)(l)) is amended to read 
as follows: 
"(c)(1)(A) No broker or dealer shall make use of the mails 
or any means or instrumentality of interstate commerce to effect 
any transaction in, or to induce or attempt to induce the purchase 
or sale of, any security (other than commercial paper, bankers' 
acceptances, or commercial bills) otherwise than on a national secu-
rities exchange of which it is a member, or any security-based 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-455 
swap agreement (as defined in section 206B of the Gramm-Leach-
Bliley Act), by means of any manipulative, deceptive, or other 
fraudulent device or contrivance. 
"(B) No municipal securities dealer shall make use of the mails 
or any means or instrumentality of interstate commerce to effect 
any transaction in, or to induce or attempt to induce the purchase 
or sale of, any municipal security or any security-based swap agree-
ment (as defined in section 206B of the Gramm-Leach-Bliley Act) 
involving a municipal security by means of any manipulative, decep-
tive, or other fraudulent device or contrivance. 
"(C) No government securities broker or government securities 
dealer shall make use of the mails or any means or instrumentality 
of interstate commerce to effect any transaction in, or to induce 
or to attempt to induce the purchase or sale of, any government 
security or any security-based swap agreement (as defined in section 
206B of the Gramm-Leach-Bliley Act) involving a government secu-
rity by means of any manipulative, deceptive, or other fraudulent 
device or contrivance.". 
(f) LIMITATION.—Section 15 of the Securities Exchange Act 
of 1934 (15 U.S.C. 78o) is amended by adding at the end the 
following new subsection: 
"(i) The authority of the Commission under this section with 
respect to security-based swap agreements (as defined in section 
206B of the Gramm-Leach-Bliley Act) shall be subject to the restric-
tions and limitations of section 3A(b) of this title.". 
(g) ANTI-INSIDER TRADING ENFORCEMENT AUTHORITY.—Sub-
sections (a) and (b) of section 16 (15 U.S.C. 78p(a), (b)) of the 
Securities Exchange of 1934 are amended to read as follows: 
"(a) Every person who is directly or indirectly the beneficial 
owner of more than 10 per centum of any class of any equity 
security (other than an exempted security) which is registered 
pursuant to section 12 of this title, or who is a director or an 
officer of the issuer of such security, shall file, at the time of 
the registration of such security on a national securities exchange 
or by the effective date of a registration statement filed pursuant 
to section 12(g) of this title, or within ten days after he becomes 
such beneficial owner, director, or officer, a statement with the 
Commission (and, if such security is registered on a national securi-
ties exchange, also with the exchange) of the amount of all equity 
securities of such issuer of which he is the beneficial owner, and 
within ten days after the close of each calendar month thereafter, 
if there has been a change in such ownership or if such person 
shall have purchased or sold a security-based swap agreement 
(as defined in section 206B of the Gramm-Leach-Bliley Act) involv-
ing such equity security during such month, shall file with the 
Commission (and if such security is registered on a national securi-
ties exchange, shall also file with the exchange), a statement 
indicating his ownership at the close of the calendar month and 
such changes in his ownership and such purchases and sales of 
such security-based swap agreements as have occurred during such 
calendar month. 
"(b) For the purpose of preventing the unfair use of information 
which may have been obtained by such beneficial owner, director, 
or officer by reason of his relationship to the issuer, any profit 
realized by him from any purchase and sale, or any sale and 
purchase, of any equity security of such issuer (other than an 
exempted security) or a security-based swap agreement (as defined 
114 STAT. 2763A-456 
PUBLIC LAW 106-554—APPENDIX E 
in section 206B of the Gramm-Leach-Bliley Act) involving any such 
equity security within any period of less than six months, unless 
such security or security-based swap agreement was acquired in 
good faith in connection with a debt previously contracted, shall 
inure to and be recoverable by the issuer, irrespective of any 
intention on the part of such beneficial owner, director, or officer 
in entering into such transaction of holding the security or security-
based swap agreement purchased or of not repurchasing the security 
or security-based swap agreement sold for a period exceeding six 
months. Suit to recover such profit may be instituted at law or 
in equity in any court of competent jurisdiction by the issuer, 
or by the owner of any security of the issuer in the name and 
in behalf of the issuer if the issuer shall fail or refuse to bring 
such suit within sixty days after request or shall fail diligently 
to prosecute the same thereafter; but no such suit shall be brought 
more than two years after the date such profit was realized. This 
subsection shall not be construed to cover any transaction where 
such beneficial owner was not such both at the time of the purchase 
and sale, or the sale and purchase, of the security or security-
based swap agreement (as defined in section 206B of the Gramm-
Leach-Bliley Act) involved, or any transaction or transactions which 
the Commission by rules and regulations may exempt as not com-
prehended within the purpose of this subsection.". 
(h) LIMITATION.—Section 16 of the Securities Exchange Act 
of 1934 (15 U.S.C. 78p) is amended by adding at the end the 
following new subsection: 
"(g) The authority of the Commission under this section with 
respect to security-based swap agreements (as defined in section 
206B of the Gramm-Leach-Bliley Act) shall be subject to the restric-
tions and limitations of section 3A(b) of this title.". 
(i) MATERIAL NONPUBLIC INFORMATION.—Section 20(d) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78t(d)) is amended 
to read as follows: 
"(d) Wherever communicating, or purchasing or selling a secu-
rity while in possession of, material nonpublic information would 
violate, or result in liability to any purchaser or seller of the 
security under any provisions of this title, or any rule or regulation 
thereunder, such conduct in connection with a purchase or sale 
of a put, call, straddle, option, privilege or security-based swap 
agreement (as defined in section 206B of the Gramm-Leach-Bliley 
Act) with respect to such security or with respect to a group or 
index of securities including such security, shall also violate and 
result in comparable liability to any purchaser or seller of that 
security under such provision, rule, or regulation.". 
(j) LIMITATION.—Section 20 of the Securities Exchange Act 
of 1934 (15 U.S.C. 78t) is amended by adding at the end the 
following new subsection: 
"(f) The authority of the Commission under this section with 
respect to security-based swap agreements (as defined in section 
206B of the Gramm-Leach-Bliley Act) shall be subject to the restric-
tions and limitations of section 3A(b) of this title.". 
(k) 
CIVIL PENALTIES.—Section 21A(a)(l) of the 
Securities 
Exchange Act of 1934 (15 U.S.C. 78u-1(a)(1)) is amended by insert-
ing after "purchasing or selling a security" the following: "or secu-
rity-based swap agreement (as defined in section 206B of the 
Gramm-Leach-Bliley Act)". 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-457 
(1) LIMITATION.—Section 21A of the Securities Exchange Act 
of 1934 (15 U.S.C. 78u-l) is amended by adding at the end the 
following new subsection: 
"(g) The authority of the Commission under this section with 
respect to security-based swap agreements (as defined in section 
206B of the Gramm-Leach-Bliley Act) shall be subject to the restric-
tions and limitations of section 3A(b) of this title.". 
SEC. 304. SAVINGS PROVISIONS. 
Nothing in this Act or the amendments made by this Act 
shall be construed as finding or implying that any swap agreement 
is or is not a security for any purpose under the securities laws. 
Nothing in this Act or the amendments made by this Act shall 
be construed as finding or implying that any swap agreement 
is or is not a futures contract or commodity option for any purpose 
under the Commodity Exchange Act. 
TITLE IV—REGULATORY 
RESPONSIBILITY FOR BANK PRODUCTS 
SEC. 401. SHORT TITLE. 
This title may be cited as the "Legal Certainty for Bank Prod-
ucts Act of 2000". 
SEC. 402. DEFINITIONS. 
(a) BANK.—In this title, the term "bank" means— 
(1) any depository institution (as defined in section 3(c) 
of the Federal Deposit Insurance Act); 
(2) any foreign bank or branch or agency of a foreign 
bank (each as defined in section 1(b) of the International Bank-
ing Act of 1978); 
(3) any Federal or State credit union (as defined in section 
101 of the Federal Credit Union Act); 
(4) any corporation organized under section 25A of the 
Federal Reserve Act; 
(5) any corporation operating under section 25 of the Fed-
eral Reserve Act; 
(6) any trust compeiny; or 
(7) any subsidiary of any entity described in paragraph 
(1) through (6) of this subsection, if the subsidiary is regulated 
as if the subsidiary were part of the entity and is not a broker 
or dealer (as such terms are defined in section 3 of the Securi-
ties Exchange Act of 1934) or a futures commission merchant 
(as defined in section la(20) of the Commodity Exchange Act). 
(b) IDENTIFIED BANKING PRODUCT.—In this title, the term 
"identified banking product" shall have the same meaning as in 
paragraphs (1) through (5) of section 206(a) of the Gramm-Leach-
Bliley Act, except that in applying such section for purposes of 
this title— 
(1) the term "bank" shall have the meaning given in sub-
section (a) of this section; and 
(2) the term "qualified investor" means eligible contract 
participant (as defined in section la(12) of the Commodity 
Exchange Act, as in effect on the date of the enactment of 
the Commodity Futures Modernization Act of 2000). 
114 STAT. 2763A-458 
PUBLIC LAW 106-554—APPENDIX E 
(c) HYBRID INSTRUMENT.—In this title, the term "hybrid 
instrument" means an identified banking product not excluded by 
section 403 of this Act, offered by a bank, having one or more 
payments indexed to the value, level, or rate of, or providing for 
the delivery of, one or more commodities (as defined in section 
la(4) of the Commodity Exchange Act). 
(d) COVERED SWAP AGREEMENT.—In this title, the term "covered 
swap agreement" means a swap agreement (as defined in section 
206(b) of the Gramm-Leach-Bliley Act), including a credit or equity 
swap, based on a commodity other than an agricultural commodity 
enumerated in section la(4) of the Commodity Exchange Act if— 
(1) the swap agreement— 
(A) is entered into only between persons that are 
eligible contract participants (as defined in section la(12) 
of the Commodity Exchange Act, as in effect on the date 
of the enactment of the Commodity Futures Modernization 
Act of 2000) at the time the persons enter into the swap 
agreement; and 
(B) is not entered into or executed on a trading facility 
(as defined in section la(33) of the Commodity Exchange 
Act); or 
(2) the swap agreement— 
(A) is entered into or executed on an electronic trading 
facility (as defined in section la(lO) of the Commodity 
Exchange Act); 
(B) is entered into on a principal-to-principal basis 
between parties trading for their own accounts or as 
described 
in section 
la(12)(B)(ii) of the 
Commodity 
Exchange Act; 
(C) is entered into only between persons that are 
eligible contract participants as described in subparagraph 
(A), (B)(ii), or (C) of section la(12) of the Commodity 
Exchange Act, as in effect on the date of the enactment 
of the Commodity Futures Modernization Act of 2000, at 
the time the persons enter into the swap agreement; and 
(D) is an agreement, contract or transaction in an 
excluded commodity (as defined in section la(13) of the 
Commodity Exchange Act). 
SEC. 403. EXCLUSION OF IDENTIFIED BANKING PRODUCTS COMMONLY 
OFFERED ON OR BEFORE DECEMBER 5,2000. 
No provision of the Commodity Exchange Act shall apply to, 
and the Commodity Futures Trading Commission shall not exercise 
regulatory authority with respect to, an identified banking product 
if— 
(1) an appropriate banking agency certifies that the product 
has been commonly offered, entered into, or provided in the 
United States by any bank on or before December 5, 2000, 
under applicable banking law; and 
(2) the product was not prohibited by the Commodity 
Exchange Act and not regulated by the Commodity Futures 
Trading Commission as a contract of sale of a commodity for 
future delivery (or an option on such a contract) or an option 
on a commodity, on or before December 5, 2000. 
PUBLIC LAW 106-554—APPENDIX E 
114 STAT. 2763A-459 
SEC. 404. EXCLUSION OF CERTAIN IDENTIFIED BANKING PRODUCTS 
OFFERED BY BANKS AFTER DECEMBER 5,2000. 
No provision of the Commodity Exchange Act shall apply to, 
and the Commodity Futures Trading Commission shall not exercise 
regulatory authority with respect to, an identified banking product 
which had not been commonly offered, entered into, or provided 
in the United States by any bank on or before December 5, 2000, 
under applicable banking law if— 
(1) the product has no payment indexed to the value, level, 
or rate of, and does not provide for the delivery of, any commod-
ity (as defined in section la(4) of the Commodity Exchange 
Act); or 
(2) the product or commodity is otherwise excluded from 
the Commodity Exchange Act. 
SEC. 405. EXCLUSION OF CERTAIN OTHER IDENTIFIED BANKING PROD-
UCTS. 
(a) IN GENERAL.—No provision of the Commodity Exchange 
Act shall apply to, and the Commodity Futures Trading Commission 
shall not exercise regulatory authority with respect to, a banking 
product if the product is a hybrid instrument that is predominantly 
a banking product under the predominance test set forth in sub-
section (b). 
(b) PREDOMINANCE TEST.—A hybrid instrument shall be consid-
ered to be predominantly a banking product for purposes of this 
section i
f
— 
(1) the issuer of the hybrid instrument receives payment 
in full of the purchase price of the hybrid instrument substan-
tially 
contemporaneously 
with 
delivery 
of 
the 
hybrid 
instrument; 
(2) the purchaser or holder of the hybrid instrument is 
not required to make under the terms of the instrument, or 
any arrangement referred to in the instrument, any payment 
to the issuer in addition to the purchase price referred to 
in paragraph (1), whether as margin, settlement payment, or 
otherwise during the life of the hybrid instrument or at matu-
rity; 
(3) the issuer of the hybrid instrument is not subject by 
the terms of the instrument to mark-to-market margining 
requirements; and 
(4) the hybrid instrument is not marketed as a contract 
of sale of a commodity for future delivery (or option on such 
a contract) subject to the Commodity Exchange Act. 
(c) MARK-TO-MARKET MARGINING REQUIREMENT.—For purposes 
of subsection (b)(3), mark-to-market margining requirements shall 
not include the obligation of an issuer of a secured debt instrument 
to increase the amount of collateral held in pledge for the benefit 
of the purchaser of the secured debt instrument to secure the 
repayment obligations of the issuer under the secured debt 
instrument. 
SEC. 406. ADMINISTRATION OF THE PREDOMINANCE TEST. 
(a) IN GENERAL.—No provision of the Commodity Exchange 
Act shall apply to, and the Commodity Futures Trading Commission 
shall not regulate, a hybrid instrument, unless the Commission 
determines, by or under a rule issued in accordance with this 
section, that— 
114 STAT. 2763A-460 
PUBLIC LAW 106-554—APPENDIX E 
(1) the action is necessary and appropriate in the public 
interest; 
(2) the action is consistent with the Commodity Exchange 
Act and the purposes of the Commodity Exchange Act; and 
(3) the hybrid instrument is not predominantly a banking 
product under the predominance test set forth in section 405(b) 
of this Act. 
(b) CONSULTATION.—Before commencing a rulemaking or mak-
ing a determination pursuant to a rule issued under this title, 
the Commodity Futures Trading Commission shall consult with 
and seek the concurrence of the Board of Governors of the Federal 
Reserve System concerning— 
(1) the nature of the hybrid instrument; and 
(2) the history, purpose, extent, and appropriateness of 
the regulation of the hybrid instrument under the Commodity 
Exchange Act and under appropriate banking laws. 
(c) OBJECTION TO COMMISSION REGULATION.— 
(1) FILING OF PETITION FOR REVIEW.—The Board of Gov-
ernors of the Federal Reserve System may obtain review of 
any rule or determination referred to in subsection (a) in the 
United States Court of Appeals for the District of Columbia 
Circuit by filing in the court, not later than 60 days after 
the date of publication of the rule or determination, a written 
petition requesting that the rule or determination be set aside. 
Any proceeding to challenge any such rule or determination 
shall be expedited by the court. 
(2) TRANSMITTAL OF PETITION AND RECORD.—^A copy of a 
petition described in paragraph (1) shall be transmitted as 
soon as possible by the Clerk of the court to an officer or 
employee of the Commodity Futures Trading Commission des-
ignated for that purpose. Upon receipt of the petition, the 
Commission shall file with the court the rule or determination 
under review and £my documents referred to therein, and any 
other relevant materials prescribed by the court. 
(3) EXCLUSIVE JURISDICTION.—On the date of the filing 
of a petition under paragraph (1), the court shall have jurisdic-
tion, which shall become exclusive on the filing of the materials 
set forth in paragraph (2), to affirm and enforce or to set 
aside the rule or determination at issue. 
(4) STANDARD OF REVIEW.—The court shall determine to 
affirm and enforce or set aside a rule or determination of 
the Commodity Futures Trading Commission under this sec-
tion, based on the determination of the court as to whether— 
(A) the subject product is predominantly a banking 
product; and 
(B) making the provision or provisions of the Commod-
ity Exchange Act at issue applicable to the subject 
instrument is appropriate in light of the history, purpose, 
and extent of regulation under such Act, this title, and 
under the appropriate banking laws, giving deference nei-
ther to the views of the Commodity Futures Trading 
Commission nor the Board of Governors of the Federal 
Reserve System. 
(5) JUDICIAL STAY.—The filing of a petition by the Board 
pursuant to paragraph (1) shall operate as a judicial stay, 
until the date on which the determination of the court is 
final (including any appeal of the determination). 
PUBLIC LAW 106-554^APPENDIX E 
114 STAT. 2763A-461 
(6) OTHER AUTHORITY TO CHALLENGE.—Any aggrieved party 
may seek judicial review pursuant to section 6(c) of the 
Commodity Exchange Act of a determination or rulemaking 
by the Commodity Futures Trading Commission under this 
section. 
SEC. 407. EXCLUSION OF COVERED SWAP AGREEMENTS. 
No provision of the Commodity Exchange Act (other than sec-
tion 5b of such Act with respect to the clearing of covered swap 
agreements) shall apply to, and the Commodity Futures Trading 
Commission shall not exercise regulatory authority with respect 
to, a covered swap agreement offered, entered into, or provided 
by a bank. 
SEC. 408. CONTRACT ENFORCEMENT. 
(a) HYBRID INSTRUMENTS.—No hybrid instrument shall be void, 
voidable, or unenforceable, and no party to a hybrid instrument 
shall be entitled to rescind, or recover any payment made with 
respect to, a hybrid instrument under any provision of Federal 
or State law, based solely on the failure of the hybrid instrument 
to satisfy the predominance test set forth in section 405(b) of 
this Act or to comply with the terms or conditions of an exemption 
or exclusion from any provision of the Commodity Exchange Act 
or any regulation of the Commodity Futures Trading Commission. 
(b) COVERED SWAP AGREEMENTS.—No covered swap agreement 
shall be void, voidable, or unenforceable, and no party to a covered 
swap agreement shall be entitled to rescind, or recover any payment 
made with respect to, a covered swap agreement under any provi-
sion of Federal or State law, based solely on the failure of the 
covered swap agreement to comply with the terms or conditions 
of an exemption or exclusion from any provision of the Commodity 
Exchange Act or any regulation of the Commodity Futures Trading 
Commission. 
(c) PREEMPTION.—This title shall supersede and preempt the 
application of any State or local law that prohibits or regulates 
gaming or the operation of bucket shops (other than antifraud 
provisions of general applicability) in the case of— 
(1) a hybrid instrument that is predominantly a banking 
product; or 
(2) a covered swap agreement. 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-463 
APPENDIX F—H.R. 5661 
SECTION 1. SHORT TITLE; AMENDMENTS TO SOCIAL SECURITY ACT; 
REFERENCES TO OTHER ACTS; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the "Medicare, 
Medicaid, and SCHIP Benefits Improvement and Protection Act 
of 2000". 
(b) AMENDMENTS TO SOCIAL SECURITY ACT.—Except as other-
wise specifically provided, whenever in this Act an amendment 
is expressed in terms of an amendment to or repeEil of a section 
or other provision, the reference shall be considered to be made 
to that section or other provision of the Social Security Act. 
(c) REFERENCES TO OTHER ACTS.—In this Act: 
(1) BALANCED BUDGET ACT OF 1997.—The term "BBA" means 
the Balanced Budget Act of 1997 (Pubhc Law 105-33; 111 
Stat. 251). 
(2) 
MEDICARE, MEDICAID, AND SCHIP BALANCED BUDGET 
REFINEMENT ACT OF 1999.—The term "BBRA" means the Medi-
care, Medicaid, and SCHIP Balanced Budget Refinement Act 
of 1999 (Appendix F, 113 Stat. 1501A-321), as enacted into 
law by section 1000(a)(6) of Pubhc Law 106-113. 
(d) TABLE OF CONTENTS.—The table of contents of this Act 
is as follows: 
Sec. 1. Short title; amendments to Social Security Act; references to other Acts; 
table of contents. 
TITLE I—MEDICARE BENEFICIARY IMPROVEMENTS 
Subtitle A—Improved Preventive Benefits 
Sec. 101. Coverage of biennial screening pap smear and pelvic exams. 
Sec. 102. Coverage of screening for glaucoma. 
Sec. 103. Coverage of screening colonoscopy for average risk individuals. 
Sec. 104. Modernization of screening mammography benefit. 
Sec. 105. Coverage of medical nutrition therapy services for beneficiaries with dia-
betes or a renal disease. 
Subtitle B—Other Beneficiary Improvements 
Sec. 111. Acceleration of reduction of beneficiary copayment for hospital outpatient 
department services. 
Sec. 112. Preservation of coverage of drugs and biologicals under part B of the 
medicare program. 
Sec. 113. EUmination or time limitation on medicare benefits for immuno-
suppressive drugs. 
Sec. 114. Imposition of billing hmits on drugs. 
Sec. 115. Wsiiver of 24-montn waiting period for medicare coverage of individuals 
disabled with amyotrophic lateral sclerosis (ALS). 
Subtitle C—Demonstration Projects and Studies 
Sec. 121. Demonstration project for disease management for severely chronically iU 
medicare beneficiaries. 
Sec. 122. Cancer prevention and treatment demonstration for ethnic and racial mi-
norities. 
114 STAT. 2763A-464 
PUBLIC LAW 106-554—APPENDIX F 
Sec. 123. Study on medicare coverage of routine thyroid screening. 
Sec. 124. MedPAC study on consumer coalitions. 
Sec. 125. Study on limitation on State payment for medicare cost-sharing affecting 
access to services for qualified medicare beneficiaries. 
Sec. 126. Studies on preventive interventions in primary care for older Americans. 
Sec. 127. MedPAC study and report on medicare coverage of cardiac and pul-
monary rehabilitation therapy services. 
Sec. 128. Lifestyle modification program demonstration. 
TITLE II—RURAL HEALTH CARE IMPROVEMENTS 
Subtitle A—Critical Access Hospital Provisions 
Sec. 201. Clarification of no beneficiary cost-sharing for clinical diagnostic labora-
tory tests fiimished by critical access hospitals. 
Sec. 202. Assistance with fee schedule pajmient for professional services under all-
inclusive rate. 
Sec. 203. Exemption of critical access hospital swing beds from SNF PPS. 
Sec. 204. Payment in critical access hospitals for emergency room on-call physi-
cians. 
Sec. 205. Treatment of ambulance services furnished by certain critical access hos-
pitals. 
Sec. 206. GAO study on certain eligibility requirements for critical access hospitals. 
Subtitle B—Other Rural Hospitals Provisions 
Sec. 211. Treatment of rural disproportionate share hospitals. 
Sec. 212. Option to base eligibility for medicare dependent, small rural hospital 
program on discharges during two of the three most recently audited 
cost reporting periods. 
Sec. 213. Extension of option to use rebased target amounts to all sole community 
hospitals. 
Sec. 214. MedPAC analysis of impact of volume on per unit cost of rural hospitals 
with psychiatric units. 
Subtitle C—Other Rural Provisions 
Sec. 221. Assistance for providers of ambulance services in rural areas. 
Sec. 222. Payment for certain physician assistant services. 
Sec. 223. Revision of medicare reimbursement for telehealth services. 
Sec. 224. Expanding access to rural health cUnics. 
Sec. 225. MedPAC study on low-volume, isolated rural health care providers. 
TITLE III—PROVISIONS RELATING TO PART A 
Subtitle A—Inpatient Hospital Services 
Sec. 301. Revision of acute care hospital payment update for 2001. 
Sec. 302. Additional modification in transition for indirect medical education (IME) 
percentage adjustment. 
Sec. 303. Decrease in reductions for disproportionate share hospital (DSH) pay-
ments. 
Sec. 304. Wage index improvements. 
Sec. 305. Payment for inpatient services of rehabilitation hospitals. 
Sec. 306. Pa3anent for inpatient services of psychiatric hospitals. 
Sec. 307. Payment for inpatient services of long-term care nospitals. 
Subtitle B—^Adjustments to PPS Payments for Skilled Nursing Facilities 
Sec. 311. Elimination of reduction in skilled nursing facility (SNF) market basket 
update in 2001. 
Sec. 312. Increase in nursing component of PPS Federal rate. 
Sec. 313. Application of SNF consolidated billing requirement limited to part A cov-
ered stays. 
Sec. 314. Adjustment of rehabilitation RUGs to correct anomaly in payment rates. 
Sec. 315. Establishment of process for geographic reclassification. 
Subtitle C—Hospice Care 
Sec. 321. Five percent increase in payment base. 
Sec. 322. Clarification of physician certification. 
Sec. 323. MedPAC report on access to, and use of, hospice benefit. 
Subtitle D—Other Provisions 
Sec. 331. Relief fi-om medicare part A late enrollment penalty for group buy-in for 
State and local retirees. 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-465 
TITLE IV—PROVISIONS RELATING TO PART B 
Subtitle A—Hospital Outpatient Services 
Sec. 401. Revision of hospital outpatient PPS pavment update. 
Sec. 402. Clarifying process and standards for distermimng eligibility of devices for 
pass-through payments under hospital outpatient PPS. 
Sec. 403. Application of OPD PPS transitional corridor payments to certain hos-
pitals that did not submit a 1996 cost report. 
Sec. 404. Application of rules for determining provider-based status for certain enti-
ties. 
Sec. 405. Treatment of children's hospitals under prospective payment system. 
Sec. 406. Inclusion of temperature monitored cryoafalation in transitional pass-
through for certain medical devices, drugs, and biologicals under OPD 
PPS. 
Subtitle B—Provisions Relating to Physicians' Services 
Sec. 411. GAO studies relating to physicians' services. 
Sec. 412. Physician group practice demonstration. 
Sec. 413. Study on enrollment procedures for groups that retain independent con-
tractor physicians. 
Subtitle C—Other Services 
Sec. 421. One-year extension of moratorium on therapy caps; report on standards 
for supervision of physical therapy assistants. 
Sec. 422. Update in renal dialysis composite rate. 
Sec. 423. Payment for ambulance services. 
Sec. 424. Ambulatory surgical centers. 
Sec. 425. Full update for durable medical equipment. 
Sec. 426. Full update for orthotics and prosthetics. 
Sec. 427. Establishment of special payment provisions and requirements for pros-
thetics and certain custom-fabricated orthotic items. 
Sec. 428. Replacement of prosthetic devices and parts. 
Sec. 429. Revised part B payment for drugs and oiologicals and related services. 
Sec. 430. Contrast enhanced diagnostic procedures under hospital prospective pay-
ment system. 
Sec. 431. Qualifications for community mental health centers. 
Sec. 432. Payment of physician and nonphysician services in certain Indian provid-
ers. 
Sec. 433. GAO study on coverage of surgical first assisting services of certified reg-
istered nurse first assistants. 
Sec. 434. MedPAC study and report on medicare reimbursement for services pro-
vided by certain providers. 
Sec. 435. MedPAC study and report on medicare coverage of services provided by 
certain nonphysician providers. 
Sec. 436. GAO study and report on the costs of emergency and medical transpor-
tation services. 
Sec. 437. GAO studies and reports on mediceire payments. 
Sec. 438. MedPAC study on access to outpatient pain management services. 
TITLE V—PROVISIONS RELATING TO PARTS A AND B 
Subtitle A—^Home Health Services 
Sec. 501. One-year additional delay in application of 15 percent reduction on pay-
ment limits for home health services. 
Sec. 502. Restoration of full home health market basket update for home health 
services for fiscal year 2001. 
Sec. 503. Temporary two-month periodic interim payment. 
Sec. 504. Use of telehealth in delivery of home health services. 
Sec. 505. Study on costs to home health agencies of purchasing nonroutine medical 
supplies. 
Sec. 506. Treatment of branch offices; GAO study on supervision of home health 
care provided in isolated rural areas. 
Sec. 507. Clarification of the homebound definition under the medicare home 
health benefit. 
Sec. 508. Temporary increase for home health services furnished in a rural area. 
Subtitle B—Direct Graduate Medical Education 
Sec. 511. Increase in floor for direct graduate medical education payments. 
Sec. 512. Change in distribution formula for Medicare+Choice-related nursing and 
allied health education costs. 
Subtitle C—Changes in Medicare Coverage and Appeals Process 
Sec. 521. Revisions to medicare appeals process. 
114 STAT. 2763A-466 
PUBLIC LAW 106-554—APPENDIX F 
Sec. 522. Revisions to medicare coverage process. 
Subtitle D—Improving Access to New Technologies 
Sec. 531. Reimbursement improvements for new clinical laboratory tests and dura-
ble medical equipment. 
Sec. 532. Retention of HCPCS level III codes. 
Sec. 533. Recognition of new medical technologies under inpatient hospital PPS. 
Subtitle E—Other Provisions 
Sec. 541. Increase in reimbursement for bad debt. 
Sec. 542. Treatment of certain physician pathology services under medicare. 
Sec. 543. Extension of advisory opinion authority. 
Sec. 544. Change in annual MedPAC reporting. 
Sec. 545. Development of patient assessment instruments. 
Sec. 546. GAO report on impact of the Emergency Medical Treatment and Active 
Labor Act (EMTALA) on hospital emergency departments. 
Sec. 547. Clarification of application of temporary payment increases for 2001. 
TITLE VI—PROVISIONS RELATING TO PART C (MEDICARE+CHOICE 
PROGRAM) AND OTHER MEDICARE MANAGED CARE PROVISIONS 
Subtitle A—^Medicare+Choice Payment Reforms 
Sec. 601. Increase in minimum payment amount. 
Sec. 602. Increase in minimum percentage increase. 
Sec. 603. Phase-in of risk adjustment. 
Sec. 604. Transition to revised Medicare+Choice payment rates. 
Sec. 605. Revision of payment rates for ESRD patients enrolled in Medicare+Choice 
plans. 
Sec. 606. Permitting 
premium 
reductions 
as 
additional 
benefits 
under 
Medicare+Choice plans. 
Sec. 607. Full implementation of risk adjustment for congestive heart failure enroU-
ees for 2001. 
Sec. 608. Expansion of application of Medicare+Choice new entry bonus. 
Sec. 609. Report on inclusion of certain costs of the Department of Veterans Affairs 
and military faciUty services in calculating Medicare+Choice payment 
rates. 
Subtitle B—Other Medicare+Choice Reforms 
Sec. 611. Payment of additional amounts for new benefits covered during a contract 
term. 
Sec. 612. Restriction on implementation of significant new regulatory requirements 
midyear. 
Sec. 613. Timely approval of marketing material that follows model marketing lan-
guage. 
Sec. 614. Avoiding duplicative regulation. 
Sec. 615. Election of uniform local coverage policy for Medicare+Choice plan cover-
ing multiple localities. 
Sec. 616. Eliminating health disparities in Medicare+Choice program. 
Sec. 617. Medicare+Choice program compatibility with employer or union group 
health plans. 
Sec. 618. Special medigap enrollment antidiscrimination provision for certain bene-
ficiaries. 
Sec. 619. Restoring effective date of elections and changes of elections of 
Medicare+Choice plans. 
Sec. 620. Permitting ESRD beneficiaries to enroll in another Medicare+Choice plan 
if the plan in which they are enrolled is terminated. 
Sec. 621. Providing 
choice for 
skilled 
nursing 
facility 
services under 
the 
Medicare+Choice program. 
Sec. 622. Providing for accountability of Medicare+Choice plans. 
Sec. 623. Increased civil money penalty for Medicare+Choice organizations that ter-
minate contracts mid-year. 
Subtitle C—Other Managed Care Reforms 
Sec. 631. One-year extension of social health maintenance organization (SHMO) 
demonstration project. 
Sec. 632. Revised terms and conditions for extension of medicare community nurs-
ing organization (CNO) demonstration project. 
Sec. 633. Extension of medicare municipal health services demonstration projects. 
Sec. 634. Service area expansion for medicare cost contracts during transition pe-
riod. 
PUBLIC LAW 106-554^APPENDIX F 
114 STAT. 2763A-467 
TITLE VII—MEDICAID 
Sec. 701. DSH payments. 
Sec. 702. New prospective payment system for Federally-qualified health centers 
and rural health clinics. 
Sec. 703. Streamlined approval of continued State-wide section 1115 medicaid 
waivers. 
Sec. 704. Medicaid county-organized health systems. 
Sec. 705. Deadline for issuance of final regulation relating to medicaid upper pay-
ment limits. 
Sec. 706. Alaska FMAP. 
Sec. 707. One-year extension of welfare-to-work transition. 
Sec. 708. Additional entities qualified to determine medicaid presumptive eligibility 
for low-income children. 
Sec. 709. Development of uniform QMB/SLMB application form. 
Sec. 710. Technical corrections. 
TITLE VIII—STATE CHILDREN'S HEALTH INSURANCE PROGRAM 
Sec. 801. Special rule for redistribution and availability of unused fiscal year 1998 
and 1999 SCHIP allotments. 
Sec. 802. Authority to pay medicaid expansion SCHIP costs from title XXI appro-
priation. 
Sec. 803. Application of medicaid child presumptive eligibility provisions. 
TITLE IX—OTHER PROVISIONS 
Subtitle A—PACE Program 
Sec. 901. Extension of transition for ciurent waivers. 
Sec. 902. Continuing of certain operating arrangements permitted. 
Sec. 903. Flexibility in exercising waiver authority. 
Subtitle B—Outreach to Eligible Low-Income Medicare Beneficiaries 
Sec. 911. Outreach on availability of medicare cost-sharing assistance to eligible 
low-income medicare beneficiaries. 
Subtitle C—Maternal and Child Health Block Grant 
Sec. 921. Increase in authorization of appropriations for the maternal and child 
health services block grant. 
Subtitle D—Diabetes 
Sec. 931. Increase in appropriations for special diabetes programs for type I diabe-
tes and Indians. 
Sec. 932. Appropriations for Ricky Ray Hemophilia Relief Fund. 
Subtitle E—Information on Nursing Facility Staffing 
Sec. 941. Posting of information on nursing facility staffing. 
Subtitle F—^Adjustment of Multiemployer Plan Benefits Guaranteed 
Sec. 951. Multiemployer plan benefits guairanteed. 
TITLE I—MEDICARE BENEFICIARY 
IMPROVEMENTS 
Subtitle A—Improved Preventive Benefits 
SEC. 101. COVERAGE OF BIENNIAL SCREENING PAP SMEAR AND PEL-
VIC EXAMS. 
(a) IN GENERAL.— 
(1) BIENNIAL SCREENING PAP SMEAR.—Section 1861(nn)(l) 
(42 U.S.C. 1395x(nn)(l)) is amended by striking "3 years" and 
inserting "2 years". 
(2) BIENNIAL SCREENING PELVIC EXAM.—Section 1861(nn)(2) 
(42 U.S.C. 1395x(nn)(2)) is amended by striking "3 years" and 
inserting "2 years". 
114 STAT. 2763A-468 
PUBLIC LAW 106-554—APPENDIX F 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall apply to items and services furnished on or after July 
1, 2001. 
SEC. 102. COVERAGE OF SCREENING FOR GLAUCOMA. 
(a) COVERAGE.—Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)) is 
amended— 
(1) by striking "and" at the end of subparagraph (S); 
(2) by inserting "and" at the end of subparagraph (T); 
and 
(3) by adding at the end the following: 
"(U) screening for glaucoma (as defined in subsection (uu)) 
for individuals determined to be at high risk for glaucoma, 
individuals with a family history of glaucoma and individuals 
with diabetes;". 
(b) SERVICES DESCRIBED.—Section 1861 (42 U.S.C. 1395x) is 
amended by adding at the end the following new subsection: 
"Screening for Glaucoma 
"(uu) The term 'screening for glaucoma' means a dilated eye 
examination with an intraocular pressure measurement, and a 
direct ophthalmoscopy or a slit-lamp biomicroscopic examination 
for the early detection of glaucoma which is furnished by or under 
the direct supervision of an optometrist or ophthalmologist who 
is legally authorized to furnish such services under State law (or 
the State regulatory mechanism provided by State law) of the 
State in which the services are furnished, as would otherwise be 
covered if furnished by a physician or as an incident to a physician's 
professional service, if the individual involved has not had such 
an examination in the preceding year.". 
(c) CONFORMING AMENDMENT.—Section 1862(a)(1)(F) (42 U.S.C. 
1395y(a)(l)(F)) is amended— 
(1) by striking "and,"; and 
(2) by adding at the end the following: "and, in the case 
of screening for glaucoma, which is performed more frequently 
than is provided under section 1861(uu),". 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to services furnished on or after January 1, 2002. 
SEC. 103. COVERAGE OF SCREENING COLONOSCOPY FOR AVERAGE 
RISK INDIVIDUALS. 
(a) IN GENERAL.—Section 1861(pp) (42 U.S.C. 1395x(pp)) is 
amended— 
(1) in paragraph (1)(C), by striking "In the case of an 
individual at high risk for colorectal cancer, 
screening 
colonoscopy" and inserting "Screening colonoscopy"; and 
(2) in paragraph (2), by striking "In paragraph (1)(C), an" 
and inserting "An". 
(b) FREQUENCY LIMITS FOR SCREENING COLONOSCOPY.—Section 
1834(d) (42 U.S.C. 1395m(d)) is amended— 
(1) in paragraph (2)(E)(ii), by inserting before the period 
at the end the following: "or, in the case of an individual 
who is not at high risk for colorectal cancer, if the procedure 
is performed within the 119 months after a previous screening 
colonoscopy"; and 
(2) in paragraph (3)— 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-469 
(A) in the heading by striking "FOR INDIVIDUALS AT 
HIGH RISK FOR COLORECTAL CANCER"; 
(B) in subparagraph (A), by striking "for individuals 
at high risk for colorectal cancer (as defined in section 
1861(pp)(2))"; and 
(C) in subparagraph (E), by inserting before the period 
at the end the following: "or for other individuals if the 
procedure is performed within the 119 months after a 
previous screening colonoscopy or within 47 months after 
a previous screening flexible sigmoidoscopy". 
(c) EFFECTIVE DATE.—^The amendments made by this section 
shall apply to colorectal cancer screening services provided on or 
afterJuly 1,200 L 
SEC. 104. MODERNIZATION OF SCREENING MAMMOGRAPHY BENEFIT. 
(a) INCLUSION IN PHYSICIAN FEE SCHEDULE.—Section 1848(j)(3) 
(42 U.S.C. 1395w-4(j)(3)) is amended by inserting "(13)," after 
"(4),". 
(b) CONFORMING AMENDMENT.—Section 1834(c) (42 U.S.C. 
1395m(c)) is amended to read as follows: 
"(c) PAYMENT AND STANDARDS FOR SCREENING MAMMOG-
RAPHY.— 
"(1) IN GENERAL.—^With respect to expenses incurred for 
screening mammography (as defined in section 1861(jj)), pay-
ment may be made only— 
"(A) for screening mammography conducted consistent 
with the frequency permitted under paragraph (2); and 
"(B) if the screening mammography is conducted by 
a facility that has a certificate (or provisional certificate) 
issued under section 354 of the Public Health Service Act. 
"(2) FREQUENCY COVERED.— 
"(A) IN GENERAL.—Subject to revision by the Secretary 
under subparagraph (B)— 
"(i) no payment may be made under this part 
for screening mammography performed on a woman 
under 35 years of age; 
"(ii) payment may be made under this part for 
only one screening mammography performed on a 
woman over 34 years of age, but under 40 years of 
age; and 
"(iii) in the case of a woman over 39 years of 
age, payment may not be made under this part for 
screening mammography performed within 11 months 
following the month in which a previous screening 
mammography was performed. 
"(B) REVISION OF FREQUENCY.— 
"(i) REVIEW.—The Secretary, in consultation with 
the Director of the National Cancer Institute, shall 
review periodically the appropriate frequency for 
performing screening mammography, based on age and 
such other factors as the Secretary believes to be perti-
nent. 
"(ii) REVISION OF FREQUENCY.—The Secretary, tak-
ing into consideration the review made under clause 
(i), may revise from time to time the frequency with 
which screening mammography may be paid for under 
this subsection.". 
114 STAT. 2763A-470 
PUBLIC LAW 106-554—APPENDIX F 
(c) EFFECTIVE DATE.—The amendments made by subsections 
(a) and (b) shall apply with respect to screening mammographies 
furnished on or after January 1, 2002. 
(d) PAYMENT FOR NEW TECHNOLOGIES.— 
(1) TESTS FURNISHED IN 2001.— 
(A) SCREENING.—For a screening mammography (as 
defined in section 1861(jj) of the Social Security Act (42 
U.S.C. 1395x(jj))) furnished during the period beginning 
on April 1, 2001, and ending on December 31, 2001, that 
uses a new technology, payment for such screening 
mammography shall be made as follows: 
(i) In the case of a technology which directly takes 
a digital image (without involving film), in an amount 
equal to 150 percent of the amount of pa3anent under 
section 1848 of such Act (42 U.S.C. 1395w-4) for a 
bilateral diagnostic mammography (under HCPCS code 
76091) for such year. 
(ii) In the case of a technology which allows conver-
sion of a standard film mammogram into a digital 
image and subsequently analyzes such resulting image 
with software to identify possible problem areas, in 
an amount equal to the limit that would otherwise 
be applied under section 1834(c)(3) of such Act (42 
U.S.C. 1395m(c)(3)) for 2001, increased by $15. 
(B) 
BILATERAL DIAGNOSTIC MAMMOGRAPHY.—For 
a 
bilateral diagnostic mammography furnished during the 
period beginning on April 1, 2001, and ending on December 
31, 2001, that uses a new technology described in subpara-
graph (A), payment for such mammography shall be the 
amount of payment provided for under such subparagraph. 
(C) ALLOCATION OF AMOUNTS.—The Secretary shall pro-
vide for an appropriate allocation of the amounts under 
subparagraphs (A) and (B) between the professional and 
technical components. 
(D) IMPLEMENTATION OF PROVISION.—The Secretary of 
Health and Human Services may implement the provisions 
of this paragraph by program memorandum or otherwise. 
(2) CONSIDERATION OF NEW HCPCS CODE FOR NEW TECH-
NOLOGIES AFTER 2001.—The Secretary shall determine, for such 
mammographies performed after 2001, whether the assignment 
of a new HCPCS code is appropriate for mammography that 
uses a new technology. If the Secretary determines that a 
new code is appropriate for such mammography, the Secretary 
shall provide for such new code for such tests furnished after 
2001. 
(3) NEW TECHNOLOGY DESCRIBED.—For purposes of this 
subsection, a new technology with respect to a mammography 
is an advance in technology with respect to the test or equip-
ment that results in the following: 
(A) A significant increase or decrease in the resources 
used in the test or in the manufacture of the equipment. 
(B) A significant improvement in the performance of 
the test or equipment. 
(C) A significant advance in medical technology that 
is expected to significantly improve the treatment of medi-
care beneficiaries. 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-47] 
(4) HCPCS CODE DEFINED.—The term "HCPCS code" means 
a code under the Health Care Financing Administration Com-
mon Procedure Coding System (HCPCS). 
SEC. 105. COVERAGE OF MEDICAL NUTRITION THERAPY SERVICES 
FOR BENEFICIARIES WITH DIABETES OR A RENAL DIS-
EASE. 
(a) COVERAGE.—Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)), as 
amended by section 102(a), is amended— 
(1) in subparagraph (T), by striking "and" at the end; 
(2) in subparagraph (U), by inserting "and" at the end; 
and 
(3) by adding at the end the following new subparagraph: 
"(V) medical nutrition therapy services (as defined in sub-
section (w)(l)) in the case of a beneficiary with diabetes or 
a renal disease who— 
"(i) has not received diabetes outpatient self-manage-
ment training services within a time period determined 
by the Secretary; 
"(ii) is not receiving maintenance dialysis for which 
payment is made under section 1881; and 
"(iii) meets such other criteria determined by the Sec-
retary after consideration of protocols established by dieti-
tian or nutrition professional orgsinizations;". 
(b) SERVICES DESCRIBED.—Section 1861 (42 U.S.C. 1395x), as 
amended by section 102(b), is amended by adding at the end the 
following: 
"Medical Nutrition Therapy Services; Registered Dietitian or 
Nutrition Professional 
"(w)(l) The term 'medical nutrition therapy services' means 
nutritional diagnostic, therapy, and counseling services for the pur-
pose of disease management which are furnished by a registered 
dietitian or nutrition professional (as defined in paragraph (2)) 
pursuant to a referral by a physician (as defined in subsection 
(r)(l)). 
"(2) Subject to paragraph (3), the term 'registered dietitian 
or nutrition professional' means an individual who— 
"(A) holds a baccalaureate or higher degree granted by 
a regionally accredited college or university in the United States 
(or an equivalent foreign degree) with completion of the aca-
demic requirements of a program in nutrition or dietetics, as 
accredited by an appropriate national accreditation organization 
recognized by the Secretary for this purpose; 
"(B) has completed at least 900 hours of supervised dietetics 
practice under the supervision of a registered dietitian or nutri-
. tion professional; and 
"(C)(i) is licensed or certified as a dietitian or nutrition 
professional by the State in which the services are performed; 
or 
"(ii) in the case of an individual in a State that does 
not provide for such licensure or certification, meets such other 
criteria as the Secretary establishes. 
"(3) Subparagraphs (A) and (B) of paragraph (2) shall not 
apply in the case of an individual who, as of the date of the 
enactment of this subsection, is licensed or certified as a dietitian 
114 STAT. 2763A-472 
PUBLIC LAW 106-554-APPENDIX F 
or nutrition professional by the State in which medical nutrition 
therapy services are performed.". 
(c) PAYMENT.—Section 1833(a)(1) (42 U.S.C. 13951(a)(1)) is 
amended— 
(1) by striking "and" before "(S)"; and 
(2) by inserting before the semicolon at the end the follow-
ing: ", and (T) with respect to medical nutrition therapy services 
(as defined in section 186 l(w)), the amount paid shall be 
80 percent of the lesser of the actual charge for the services 
or 85 percent of the amount determined under the fee schedule 
established under section 1848(b) for the same services if fur-
nished by a physician". 
(d) APPLICATION OF LIMITS ON BILLING.—Section 1842(b)(18)(C) 
(42 U.S.C. 1395u(b)(18)(C)) is amended by adding at the end the 
following new clause: 
"(vi) A registered dietitian or nutrition professional.". 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to services furnished on or after January 1, 2002. 
(f) STUDY.—Not later than July 1, 2003, the Secretary of Health 
and Human Services shall submit to Congress a report that contains 
recommendations with respect to the expansion to other medicare 
beneficiary populations of the medical nutrition therapy services 
benefit (furnished under the amendments made by this section). 
Subtitle B—Other Beneficiary 
Improvements 
SEC. 
111. ACCELERATION 
OF REDUCTION 
OF 
BENEFICIARY 
COPAYMENT FOR HOSPITAL OUTPATIENT DEPARTMENT 
SERVICES. 
(a) REDUCING THE UPPER LIMIT ON BENEFICL\RY COPAYMENT.— 
(1) 
IN GENERAL.—Section 
1833(t)(8)(C) 
(42 
U.S.C. 
13951(t)(8)(C)) is amended to read as follows: 
"(C) LIMITATION ON COPAYMENT AMOUNT.— 
"(i) To INPATIENT HOSPITAL DEDUCTIBLE AMOUNT.— 
In no case shall the copayment amount for a procedure 
performed in a year exceed the amount of the inpatient 
hospital deductible established under section 1813(b) 
for that year. 
"(ii) To SPECIFIED PERCENTAGE.—^The Secretary 
shall reduce the national unadjusted 
copayment 
amount for a covered OPD service (or group of such 
services) furnished in a year in a manner so that 
the effective copayment rate (determined on a national 
unadjusted basis) for that service in the year does 
not exceed the following percentage: 
"(I) For procedures performed in 2001, on or 
after April 1, 2001, 57 percent. 
"(II) For procedures performed in 2002 or 
2003, 55 percent. 
"(Ill) For procedures performed in 2004, 50 
percent. 
"(IV) For procedures performed in 2005, 45 
percent. 
"(V) For procedures performed in 2006 and 
thereafter, 40 percent.". 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-473 
(2) EFFECTIVE DATE.—The amendment made by paragraph 
(1) shall apply with respect to services furnished on or after 
April 1, 2001. 
(b) CONSTRUCTION REGARDING LIMITING INCREASES IN COST-
SHARING.—^Nothing in this Act or the Social Security Act shall 
be construed as preventing a hospital from waiving the amount 
of any coinsursmce for outpatient hospital services under the medi-
care program under title XVIII of the Social Security Act that 
may have been increased as a result of the implementation of 
the prospective payment system under section 1833(t) of the Social 
Security Act (42 U.S.C. 13951(t)). 
(c) GAO STUDY OF REDUCTION IN MEDIGAP PREMIUM LEVELS 
RESULTING FROM REDUCTIONS IN COINSURANCE.—The Comptroller 
General of the United States shall work, in concert with the 
National Association of Insurance Commissioners, to evaluate the 
extent to which the premium levels for medicare supplemental 
policies reflect the reductions in coinsurance resulting from the 
amendment made by subsection (a). Not later than April 1, 2004, 
the Comptroller General shall submit to Congress a report on 
such evaluation and the extent to which the reductions in bene-
ficiary coinsurance effected by such amendment have resulted in 
actual savings to medicare beneficiaries. 
SEC. 112. PRESERVATION OF COVERAGE OF DRUGS AND BIOLOGICALS 
UNDER PART B OF THE MEDICARE PROGRAM. 
(a) IN GENERAL.—Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)) is 
amended, in each of subparagraphs (A) and (B), by striking "(includ-
ing drugs and biologicals which cannot, as determined in accordance 
with regulations, be self-administered)" and inserting "(including 
drugs and biologicals which are not usually self-administered by 
the patient)". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to drugs and biologicals administered on or after the 
date of the enactment of this Act. 
SEC. 113. ELIMINATION OF TIME LIMITATION ON MEDICARE BENEFITS 
FOR IMMUNOSUPPRESSIVE DRUGS. 
(a) IN GENERAL.—Section 1861(s)(2)(J) (42 U.S.C. 1395x(s)(2)(J)) 
is amended by striking ", but only" and all that follows up to 
the semicolon at the end. 
(b) CONFORMING AMENDMENTS.— 
(1) EXTENDED COVERAGE.—Section 1832 (42 U.S.C. 1395k) 
is amended— 
(A) by striking subsection (b); and 
(B) by redesignating subsection (c) as subsection (b). 
(2) PASS-THROUGH; REPORT.—Section 227 of BBRA is 
amended by striking subsection (d). 
(c) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to drugs furnished on or after the date of the enactment 
of this Act. 
SEC. 114. IMPOSITION OF BILLING LIMITS ON DRUGS. 
(a) IN GENERAL.—Section 1842(o) (42 U.S.C. 1395u(o)) is 
amended by adding at the end the following new paragraph: 
"(3)(A) Payment for a charge for any drug or biological for 
which payment may be made under this part may be made only 
on an assignment-related basis. 
79-194 O - 00 - 17 : QL 3 Part 5 
114 STAT. 2763A-474 
PUBLIC LAW 106-554-APPENDIX F 
"(B) The provisions of subsection (b)(18)(B) shall apply to 
charges for such drugs or biologicals in the same manner as they 
apply to services furnished by a practitioner described in subsection 
(b)(18)(C).". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to items furnished on or after January 1, 2001. 
SEC. 115. WAIVER OF 24-MONTH WATTING PERIOD FOR MEDICARE COV-
ERAGE OF INDIVIDUALS DISABLED WTTH AMYOTROPHIC 
LATERAL SCLEROSIS (ALS). 
(a) IN GENERAL.—Section 226 (42 U.S.C. 426) is amended— 
(1) by redesignating subsection (h) as subsection (j) and 
by moving such subsection to the end of the section; and 
(2) by inserting after subsection (g) the following new sub-
section: 
"(h) For purposes of applying this section in the case of an 
individual medically determined to have amyotrophic lateral sclero-
sis (ALS), the following special rules apply: 
"(1) Subsection (b) shall be applied as if there were no 
requirement for any entitlement to benefits, or status, for a 
period longer than 1 month. 
"(2) The entitlement under such subsection shall begin 
with the first month (rather than twenty-fifth month) of entitle-
ment or status. 
"(3) Subsection (f) shall not be applied.". 
(b) CONFORMING AMENDMENT.—Section 1837 (42 U.S.C. 1395p) 
is amended by adding at the end the following new subsection: 
"(j) In applying this section in the case of an individual who 
is entitled to benefits under part A pursuant to the operation 
of section 226(h), the following special rules apply: 
"(1) The initial enrollment period under subsection (d) shall 
begin on the first day of the first month in which the individual 
satisfies the requirement of section 1836(1). 
"(2) In applying subsection (g)(1), the initial enrollment 
period shall begin on the first day of the first month of entitle-
ment to disability insurance benefits referred to in such sub-
section.". 
(c) EFFECTIVE DATE.—^The amendments made by this section 
shall apply to benefits for months beginning July 1, 2001. 
Subtitle C—Demonstration Projects and 
Studies 
SEC. 121. DEMONSTRATION PROJECT FOR DISEASE MANAGEMENT FOR 
SEVERELY 
CHRONICALLY 
ILL 
MEDICARE 
BENE-
FICIARIES. 
(a) IN GENERAL.—The Secretary of Health and Human Services 
shall conduct a demonstration project under this section (in this 
section referred to as the "project") to demonstrate the impact 
on costs and health outcomes of applying disease management 
to medicare beneficiaries with diagnosed, advanced-stage congestive 
heart failure, diabetes, or coronary heart disease. In no case may 
the number of participants in the project exceed 30,000 at any 
time. 
(b) VOLUNTARY PARTICIPATION.— 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-475 
(1) ELIGIBILITY.—Medicare beneficiaries are eligible to 
participate in the project only if— 
(A) they meet specific medical criteria demonstrating 
the appropriate diagnosis and the advanced nature of their 
disease; 
(B) their physicians approve of participation in the 
project; and 
(C) they are not enrolled in a Medicare+Choice plan. 
(2) BENEFITS.—^A beneficiary who is enrolled in the project 
shall be eligible— 
(A) for disease management services related to their 
chronic health condition; and 
(B) for payment for all costs for prescription drugs 
without regard to whether or not they relate to the chronic 
health condition, except that the project may provide for 
modest cost-sharing with respect to prescription drug cov-
erage. 
(c) CONTRACTS WITH DISEASE MANAGEMENT ORGANIZATIONS.— 
(1) IN GENERAL.—^The Secretary of Health and Human 
Services shall carry out the project through contracts with 
up to three disease management organizations. The Secretary 
shall not enter into such a contract with an organization unless 
the organization demonstrates that it can produce improved 
health outcomes and reduce aggregate medicare expenditures 
consistent with paragraph (2). 
(2) CONTRACT PROVISIONS.—^Under such contracts— 
(A) such an organization shall be required to provide 
for prescription drug coverage described in subsection 
(b)(2)(B); 
(B) such an organization shall be paid a fee negotiated 
and established by the Secretary in a manner so that 
(taking into account savings in expenditures under parts 
A and B of the medicare program under title XVIII of 
the Social Security Act) there will be a net reduction in 
expenditures under the medicare program as a result of 
the project; and 
(C) such an organization shall guarantee, through an 
appropriate arrangement with a reinsurance company or 
otherwise, the net reduction in expenditures described in 
subparagraph (B). 
(3) PAYMENTS.—Payments to such organizations shall be 
made in appropriate proportion from the Trust Funds estab-
lished under title XVIII of the Social Security Act. 
(d) APPLICATION OF MEDIGAP PROTECTIONS TO DEMONSTRATION 
PROJECT ENROLLEES.—(1) Subject to paragraph (2), the provisions 
of section 1882(s)(3) (other than clauses (i) through (iv) of subpara-
graph (B)) and 1882(s)(4) of the Social Security Act shall apply 
to enrollment (and termination of enrollment) in the demonstration 
project under this section, in the same manner as they apply 
to 
enrollment 
(and 
termination 
of 
enrollment) 
with 
a 
Medicare+Choice organization in a Medicare+Choice plan. 
(2) In applying paragraph (1)— 
(A) any reference in clause (v) or (vi) of section 1882(s)(3)(B) 
of such Act to 12 months is deemed a reference to the period 
of the demonstration project; and 
114 STAT. 2763A-476 
PUBLIC LAW 106-554—APPENDIX F 
(B) the notification required under section 1882(s)(3)(D) 
of such Act shall be provided in a manner specified by the 
Secretary of Health and Human Services. 
(e) DURATION.—The project shall last for not longer than 3 
years. 
(f) WAIVER.—The Secretary of Health and Human Services 
shall waive such provisions of title XVIII of the Social Security 
Act as may be necessary to provide for pa)Tnent for services under 
the project in accordance with subsection (c)(3). 
(g) REPORT.—^The Secretary of Health and Human Services 
shall submit to Congress an interim report on the project not 
later than 2 years after the date it is first implemented and a 
final report on the project not later than 6 months after the date 
of its completion. Such reports shall include information on the 
impact of the project on costs and health outcomes and recommenda-
tions on the cost-effectiveness of extending or expanding the project. 
SEC. 122. CANCER PREVENTION AND TREATMENT DEMONSTRATION 
FOR ETHNIC AND RACIAL MINORITIES. 
(a) DEMONSTRATION.— 
(1) IN GENERAL.—The Secretary of Health and Human 
Services (in this section referred to as the "Secretary") shall 
conduct demonstration projects (in this section referred to as 
"demonstration projects") for the purpose of developing models 
and evaluating methods that— 
(A) improve the quality of items and services provided 
to target individuals in order to facilitate reduced dispari-
ties in early detection and treatment of cancer; 
(B) improve clinical outcomes, satisfaction, quality of 
life, and appropriate use of medicare-covered services and 
referral patterns among those target individuals with can-
cer; 
(C) eliminate disparities in the rate of preventive can-
cer screening measures, such as pap smears and prostate 
cancer screenings, among target individuals; and 
(D) promote 
collaboration 
with 
community-based 
organizations to ensure cultural competency of health care 
professionals and linguistic access for persons with limited 
English proficiency. 
(2) TARGET INDIVIDUAL DEFINED.—In this section, the term 
"target individual" means an individual of a racial and ethnic 
minority group, as defined by section 1707 of the Public Health 
Service Act, who is entitled to benefits under part A, and 
enrolled under part B, of title XVIII of the Social Security 
Act. 
(b) PROGRAM DESIGN.— 
(1) INITIAL DESIGN.—Not later than 1 year after the date 
of the enactment of this Act, the Secretary shall evaluate best 
practices in the private sector, community programs, and aca-
demic research of methods that reduce disparities among 
individuals of racial and ethnic minority groups in the preven-
tion and treatment of cancer smd shall design the demonstration 
projects based on such evaluation. 
(2) NUMBER AND PROJECT AREAS.—^Not later than 2 years 
after the date of the enactment of this Act, the Secretary 
shall implement at least nine demonstration projects, including 
the following: 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-477 
i K f 
(A) Two projects for each of the four following major 
racial and ethnic minority groups: 
(i) American Indians, including Alaska Natives, 
Eskimos, and Aleuts. 
(ii) Asian Americans and Pacific Islanders, 
(iii) Blacks. 
(iv) Hispanics. 
The two projects must target different ethnic subpopula-
tions. 
(B) One project within the Pacific Islands. 
(C) At least one project each in a rural area and 
inner-city area. 
(3) EXPANSION OF PROJECTS; IMPLEMENTATION OF DEM-
ONSTRATION PROJECT RESULTS.—If the initial report under sub-
section (c) contains an evaluation that demonstration projects— 
(A) reduce expenditures under the medicare program 
under title XVIII of the Social Security Act; or 
(B) do not increase expenditures under the medicare 
program and reduce racial and ethnic health disparities 
in the quality of health care services provided to target 
individuals and increase satisfaction of beneficiaries and 
health care providers; 
the Secretary shall continue the existing demonstration projects 
and may expand the number of demonstration projects. 
(c) REPORT TO CONGRESS.— 
(1) IN GENERAL.—^Not later than 2 years after the date 
the Secretary implements the initial demonstration projects, 
and biannually thereafter, the Secretary shall submit to Con-
gress a report regarding the demonstration projects. 
(2) CONTENTS OF REPORT.—Each report under paragraph 
(1) shall include the following: 
(A) A description of the demonstration projects. 
(B) An evaluation of— 
(i) the cost-effectiveness of the demonstration 
projects; 
(ii) the quality of the health care services provided 
to target individuals under the demonstration projects; 
and 
(iii) beneficiary and health care provider satisfac-
tion under the demonstration projects. 
(C) Any other information regarding the demonstration 
projects that the Secretary determines to be appropriate. 
(d) WAIVER AUTHORITY.—The Secretary shall waive compliance 
with the requirements of title XVIII of the Social Security Act 
to such extent and for such period as the Secretary determines 
is necessary to conduct demonstration projects. 
(e) FUNDING.— 
(1) DEMONSTRATION PROJECTS.— 
(A) STATE PROJECTS.—Except as provided in subpara-
graph (B), the Secretary shall provide for the transfer 
from the Federal Hospital Insurance Trust Fund and the 
Federal Supplementary Insurance Trust Fund under title 
XVIII of the Social Security Act, in such proportions as 
the Secretary determines to be appropriate, of such funds 
as are necessary for the costs of carrying out the demonstra-
tion projects. 
114 STAT. 2763A-478 
PUBLIC LAW 106-554—APPENDIX F 
(B) TERRITORY PROJECTS.—In the case of a demonstra-
tion project described in subsection (b)(2)(B), amounts shall 
be available only as provided in any Federal law making 
appropriations for the territories. 
(2) LIMITATION.—In conducting demonstration projects, the 
Secretary shall ensure that the aggregate payments made by 
the Secretary do not exceed the sum of the amount which 
the Secretary would have paid under the program for the 
prevention and treatment of cancer if the demonstration 
projects were not implemented, plus $25,000,000. 
SEC. 123. STUDY ON MEDICARE COVERAGE OF ROUTINE THYROID 
SCREENING. 
(a) STUDY.—^The Secretary of Health and Human Services shall 
request the National Academy of Sciences, and as appropriate in 
conjunction with the United States Preventive Services Task Force, 
to conduct a study on the addition of coverage of routine thyroid 
screening using a thyroid stimulating hormone test as a preventive 
benefit provided to medicare beneficiaries under title XVIII of the 
Social Security Act for some or all medicare beneficiaries. In 
conducting the study, the Academy shall consider the short-term 
and long-term benefits, and costs to the medicare program, of 
such addition. 
(b) REPORT.—Not later than 2 years after the date of the 
enactment of this Act, the Secretary of Health and Human Services 
shall submit a report on the findings of the study conducted under 
subsection (a) to the Committee on Ways and Means and the 
Committee on Commerce of the House of Representatives and the 
Committee on Finance of the Senate. 
SEC. 124. MEDPAC STUDY ON CONSUMER COALITIONS. 
(a) STUDY.—The Medicare Payment Advisory Commission shall 
conduct a study that examines the use of consumer coalitions in 
the marketing of Medicare+Choice plans under the medicare pro-
gram under title XVIII of the Social Security Act. The study shall 
examine— 
(1) the potential for increased efficiency in the medicare 
program through greater beneficiary knowledge of their health 
care options, decreased marketing costs of Medicare+Choice 
organizations, and creation of a group market; 
(2) the implications of Medicare+Choice plans and medicare 
supplemental policies (under section 1882 of the Social Security 
Act (42 U.S.C. 1395ss)) offering medicare beneficiaries in the 
same geographic location different benefits and premiums based 
on their affiliation with a consumer coalition; 
(3) how coalitions should be governed, how they should 
be accountable to the Secretary of Health and Human Services, 
and how potential conflicts of interest in the activities of con-
sumer coalitions should be avoided; and 
(4) how such coalitions should be funded. 
(b) REPORT.—Not later than 1 year after the date of the enact-
ment of this Act, the Commission shall submit to Congress a report 
on the study conducted under subsection (a). The report shall 
include a recommendation on whether and how a demonstration 
project might be conducted for the operation of consumer coalitions 
under the medicare program. 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-479 
(c) CONSUMER COALITION DEFINED.—^For purposes of this sec-
tion, the term "consumer coahtion" means a nonprofit, community-
based group of organizations that— 
(1) provides information to medicare beneficiaries about 
their health care options under the medicare program; and 
(2) negotiates benefits and premiums for medicare bene-
ficiaries who are members or otherwise affiUated with the 
group of organizations with Medicare+Choice organizations 
offering Medicare+Choice plans, issuers of medicare supple-
mental policies, issuers of long-term care coverage, and phar-
macy benefit managers. 
SEC. 125, STUDY ON LIMITATION ON STATE PAYMENT FOR MEDICARE 
COST-SHARING AFFECTING ACCESS TO SERVICES FOR 
QUALIFIED MEDICARE BENEFICIARIES. 
(a) IN GENERAL.—The Secretary of Health and Human Services 
shall conduct a study to determine if access to certain services 
(including mental health services) for qualified medicare bene-
ficiaries has been affected by limitations on a State's pajnnent 
for medicare cost-sharing for such beneficiaries under section 
1902(n) of the Social Security Act (42 U.S.C. 1396a(n)). As part 
of such study, the Secretary shall analyze the effect of such payment 
limitation on providers who serve a disproportionate share of such 
beneficiaries. 
(b) REPORT.—Not later than 1 year after the date of the enact-
ment of this Act, the Secretary shall submit to Congress a report 
on the study under subsection (a). The report shall include rec-
ommendations regarding any changes that should be made to the 
State payment limits under section 1902(n) for qualified medicare 
beneficiaries to ensure appropriate access to services. 
SEC. 126. STUDIES ON PREVENTIVE INTERVENTIONS IN PRIMARY CARE 
FOR OLDER AMERICANS. 
(a) STUDIES.—The Secretary of Health and Human Services, 
acting through the United States Preventive Services Task Force, 
shall conduct a series of studies designed to identify preventive 
interventions that can be delivered in the primary care setting 
and that are most valuable to older Americans. 
(b) MISSION STATEMENT.—^The mission statement of the United 
States Preventive Services Task Force is amended to include the 
evaluation of services that are of particular relevance to older 
Americans. 
(c) REPORT.—Not later than 1 year after the date of the enact-
ment of this Act, and annually thereafter, the Secretary of Health 
and Human Services shall submit to Congress a report on the 
conclusions of the studies conducted under subsection (a), together 
with recommendations for such legislation and administrative 
actions as the Secretary considers appropriate. 
SEC. 
1
2
7
. 
MEDPAC 
STUDY 
AND 
REPORT 
ON 
MEDICARE 
COVERAGE 
OF 
CARDIAC 
AND PULMONARY 
REHABILITATION 
THERAPY 
SERVICES. 
(a) STUDY.— 
(1) IN GENERAL.—The Medicare Payment Advisory Commis-
sion shall conduct a study on coverage of cardiac and pulmonary 
rehabilitation therapy services under the medicare program 
under title XVIII of the Social Security Act. 
114 STAT. 2763A-480 
PUBLIC LAW 106-554—APPENDIX F 
(2) Focus.—In conducting the study under paragraph (1), 
the Commission shall focus on the appropriate— 
(A) qualifying diagnoses required for coverage of car-
diac and pulmonary rehabilitation therapy services; 
(B) level of physician direct involvement and super-
vision in furnishing such services; and 
(C) level of reimbursement for such services. 
(b) REPORT.—^Not later than 18 months after the date of the 
enactment of this Act, the Commission shall submit to Congress 
a report on the study conducted under subsection (a) together 
with such recommendations for legislation and administrative 
action as the Commission determines appropriate. 
SEC. 128. LIFESTYLE MODIFICATION PROGRAM DEMONSTRATION. 
(a) IN GENERAL.—^The Secretary of Health and Human Services 
shall carry out the demonstration project known as the Lifestyle 
Modification Program Demonstration, as described in the Health 
Care Financing Administration Memorandum of Understanding 
entered into on November 13, 2000, and as subsequently modified, 
(in this section referred to as the "project") in accordance with 
the following requirements: 
(1) The project shall include no fewer than 1,800 medicare 
beneficiaries who complete under the project the entire course 
of treatment under the Lifestyle Modification Program. 
(2) The project shall be conducted over a course of 4 years. 
(b) STUDY ON COST-EFFECTIVENESS.— 
(1) STUDY.—The Secretary shall conduct a study on the 
cost-effectiveness of the Lifestyle Modification Program as con-
ducted under the project. In determining whether such Program 
is cost-effective, the Secretary shall determine (using a control 
group imder a matched paired experimental design) whether 
expenditures incurred for medicare beneficiaries enrolled under 
the project exceed expenditures for the control group of medi-
care beneficiaries with similar health conditions who are not 
enrolled under the project. 
(2) REPORTS.— 
(A) INITIAL REPORT.—Not later that 1 year after the 
date on which 900 medicare beneficiaries have completed 
the entire course of treatment under the Lifestyle Modifica-
tion Program under the project, the Secretary shall submit 
to Congress an initial report on the study conducted under 
paragraph (1). 
(B) FINAL REPORT.—Not later that 1 year after the 
date on which 1,800 medicare beneficiaries have completed 
the entire course of treatment under such Program under 
the project, the Secretary shall submit to Congress a final 
report on the study conducted under paragraph (1). 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-481 
TITLE II—RURAL HEALTH CARE 
IMPROVEMENTS 
Subtitle A—Critical Access Hospital 
Provisions 
SEC. 201. CLARIFICATION OF NO BENEFICIARY COST-SHARING FOR 
CLINICAL DIAGNOSTIC LABORATORY TESTS FURNISHED 
BY CRITICAL ACCESS HOSPITALS. 
(a) 
PAYMENT 
CLARIFICATION.—Section 
1834(g) 
(42 
U.S.C. 
1395m(g)) is amended by adding at the end the following new 
paragraph: 
"(4) N o BENEFICIARY COST-SHARING FOR CLINICAL DIAG-
NOSTIC LABORATORY SERVICES.—No coinsurance, 
deductible, 
copayment, or other cost-sharing otherwise applicable under 
this part shall apply with respect to clinical diagnostic labora-
tory services furnished as an outpatient critical access hospital 
service. Nothing in this title shall be construed as providing 
for payment for clinical diagnostic laboratory services furnished 
as part of outpatient critical access hospital services, other 
than on the basis described in this subsection.". 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) Paragraphs (l)(D)(i) and (2)(D)(i) of section 1833(a) (42 
U.S.C. 13951(a)) are each amended by striking "or which are 
furnished on an outpatient basis by a critical access hospital". 
(2) Section 403(d)(2) of BBRA (113 Stat. 1501A.-371) is 
amended by striking "The amendment made by subsection (a) 
shall apply" and inserting "Paragraphs (1) through (3) of section 
1834(g) of the Social Security Act (as amended by paragraph 
(D) apply". 
(c) EFFECTIVE DATES.—The amendment made— 
(1) by subsection (a) shall apply to services furnished on 
or after the date of the enactment of BBRA; 
(2) by subsection (b)(1) shall apply as if included in the 
enactment of section 403(e)(1) of BBRA (113 Stat. 1501A-371); 
and 
(3) by subsection (b)(2) shall apply as if included in the 
enactment of section 403(d)(2) of BBRA (113 Stat. 
150lA-
371). 
SEC. 202. ASSISTANCE WITH FEE SCHEDULE PAYMENT FOR PROFES-
SIONAL SERVICES UNDER ALL-INCLUSIVE RATE. 
(a) 
I N 
GENERAL.—Section 
1834(g)(2)(B) 
(42 
U.S.C. 
1395m(g)(2)(B)) is amended by inserting "115 percent o f before 
"such amounts". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply with respect to items and services furnished on or 
afterJuly 1,2001. 
SEC. 203. EXEMPTION OF CRITICAL ACCESS HOSPITAL SWING BEDS 
FROM SNF PPS. 
(a) I N GENERAL.—Section 1888(e)(7) (42 U.S.C. 1395yy(e)(7)) 
is amended— 
(1) in the heading, by striking "TRANSITION FOR" and insert-
ing "TREATMENT OF"; 
114 STAT. 2763A-482 
PUBLIC LAW 106-554—APPENDIX F 
(2) in subparagraph (A), by striking "IN GENERAL.—The" 
and inserting "TRANSITION.—Subject to subparagraph (C), the"; 
(3) in subparagraph (A), by inserting "(other than critical 
access hospitals)" after "facilities described in subparagraph 
(B)"; 
(4) in subparagraph (B), by striking ", for which payment" 
and all that follows before the period; and 
(5) by adding at the end the following new subparagraph: 
"(C) EXEMPTION FROM PPS OF SWING-BED SERVICES FUR-
NISHED IN CRITICAL ACCESS HOSPITALS.—The prospective 
payment system established under this subsection shall 
not apply to services furnished by a critical access hospital 
pursuant to an agreement under section 1883.". 
(b) PAYMENT ON A REASONABLE COST BASIS FOR SWING BED 
SERVICES FURNISHED BY CRITICAL ACCESS HOSPITALS.—Section 
1883(a) (42 U.S.C. 1395tt(a)) is amended— 
(1) in paragraph (2)(A), by inserting "(other than a critical 
access hospital)" after "any hospital"; and 
(2) by adding at the end the following new paragraph: 
"(3) Notwithstanding any other provision of this title, a critical 
access hospital shall be paid for covered skilled nursing facility 
services furnished under an agreement entered into under this 
section on the basis of the reasonable costs of such services (as 
determined under section 186 l(v)).", 
(c) EFFECTIVE DATE.—^The amendments made by this section 
shall apply to cost reporting periods beginning on or after the 
date of the enactment of this Act. 
SEC. 204. PAYMENT IN CRITICAL ACCESS HOSPITALS FOR EMERGENCY 
ROOM ON-CALL PHYSICIANS. 
(a) IN GENERAL.—Section 1834(g) (42 U.S.C. 1395m(g)), as 
amended by section 201(a), is further amended by adding at the 
end the following new paragraph: 
"(5) COVERAGE OF COSTS FOR EMERGENCY ROOM ON-CALL 
PHYSICIANS.—In determining the reasonable costs of outpatient 
critical access hospital services under paragraphs (1) and (2)(A), 
the Secretary shall recognize as allowable costs, amounts (as 
defined by the Secretary) for reasonable compensation and 
related costs for emergency room physicians who are on-call 
(as defined by the Secretary) but who are not present on the 
premises of the critical access hospital involved, and are not 
otherwise furnishing physicians' services and are not on-call 
at any other provider or facility.". 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
shall apply to cost reporting periods beginning on or after October 
1, 2001. 
SEC. 205. TREATMENT OF AMBULANCE SERVICES FURNISHED BY CER-
TAIN CRITICAL ACCESS HOSPITALS. 
(a) IN GENERAL.—Section 1834(1) (42 U.S.C. 1395m(l)) is amend-
ed by adding at the end the following new paragraph: 
"(8) SERVICES FURNISHED BY CRITICAL ACCESS HOSPITALS.— 
Notwithstanding any other provision of this subsection, the 
Secretary shall pay the reasonable costs incurred in furnishing 
ambulance services if such services are furnished— 
"(A) by a critical access hospital (as defined in section 
1861(mm)(l)), or 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-483 
"(B) by an entity that is owned and operated by a 
critical access hospital, 
but only if the critical access hospital or entity is the only 
provider or supplier of ambulance services that is located within 
a 35-mile drive of such critical access hospital.". 
(b) CONFORMING AMENDMENT.—Section 1833(a)(l)(R) (42 U.S.C. 
13951(a)(l)(R)) is amended— 
(1) by striking "ambulance service," and inserting "ambu-
lance services, (i)"; and 
(2) by inserting before the comma at the end the following: 
"and (ii) with respect to ambulance services described in section 
1834(1)(8), the amounts paid shall be the amounts determined 
under section 1834(g) for outpatient critical access hospital 
services". 
(c) EFFECTIVE DATE.—^The amendments made by this section 
shall apply to services furnished on or after the date of the enact-
ment of this Act. 
SEC. 206. GAG STUDY ON CERTAIN ELIGIBILITY REQUIREMENTS FOR 
CRITICAL ACCESS HOSPITALS. 
(a) STUDY.—^The Comptroller General of the United States shall 
conduct a study on the eligibility requirements for critical access 
hospitals under section 1820(c) of the Social Security Act (42 U.S.C. 
1395i-4(c)) with respect to limitations on average length of stay 
and number of beds in such a hospital, including an analysis of— 
(1) the feasibility of having a distinct part unit as part 
of a critical access hospital for purposes of the medicare pro-
gram under title XVIII of such Act; and 
(2) the effect of seasonal variations in patient admissions 
on critical access hospital eligibility requirements with respect 
to limitations on average annual length of stay and number 
of beds. 
(b) REPORT.—Not later than 1 year after the date of the enact-
ment of this Act, the Comptroller General shall submit to Congress 
a report on the study conducted under subsection (a) together 
with recommendations regarding— 
(1) whether distinct part units should be permitted as 
part of a critical access hospital under the medicare program; 
(2) if so permitted, the payment methodologies that should 
apply with respect to services provided by such units; 
(3) whether, and to what extent, such units should be 
included in or excluded from the bed limits applicable to critical 
access hospitals under the medicare program; and 
(4) any adjustments to such eligibility requirements to 
account for seasonal variations in patient admissions. 
Subtitle B—Other Rural Hospitals 
Provisions 
SEC. 211. TREATMENT OF RURAL DISPROPORTIONATE SHARE HOS-
PITALS. 
(a) 
APPLICATION 
OF 
UNIFORM 
THRESHOLD.—Section 
1886(d)(5)(F)(v) (42 U.S.C. 1395ww(d)(5)(F)(v)) is amended— 
(1) in subclause (II), by inserting "(or 15 percent, for dis-
charges occurring on or after April 1, 2001)" after "30 percent"; 
114 STAT. 2763A-484 
PUBLIC LAW 106-554—APPENDIX F 
(2) in subclause (III), by inserting "(or 15 percent, for 
discharges occurring on or after April 1, 2001)" after "40 per-
cent"; and 
(3) in subclause (IV), by inserting "(or 15 percent, for dis-
charges occurring on or after April 1, 2001)" after "45 percent". 
(b) ADJUSTMENT OF PAYMENT FORMULAS.— 
(1) SOLE COMMUNITY HOSPITALS.—Section 1886(d)(5)(F) (42 
U.S.C. 1395ww(d)(5)(F)) is amended— 
(A) in clause (iv)(VI), by inserting after "10 percent" 
the following: "or, for discharges occurring on or after April 
1, 2001, is equal to the percent determined in accordance 
with clause (x)"; and 
(B) by adding at the end the following new clause: 
"(x) For purposes of clause (iv)(VI) (relating to sole community 
hospitals), in the case of a hospital for a cost reporting period 
with a disproportionate patient percentage (as defined in clause 
(vi)) that— 
"(I) is less than 19.3, the disproportionate share adjustment 
percentage is determined in accordance with the following for-
mula: (P-15)(.65) + 2.5; 
"(II) is equal to or exceeds 19.3, but is less than 30.0, 
such adjustment percentage is equal to 5.25 percent; or 
"(III) is equal to or exceeds 30, such adjustment percentage 
is equal to 10 percent, 
where T' is the hospital's disproportionate patient percentage (as 
defined in clause (vi)).". 
(2) RURAL REFERRAL CENTERS.—Such section is further 
amended— 
(A) in clause (iv)(V), by inserting after "clause (viii)" 
the following: "or, for discharges occurring on or after April 
1, 2001, is equal to the percent determined in accordance 
with clause (xi)"; and 
(B) by adding at the end the following new clause: 
"(xi) For purposes of clause (iv)(V) (relating to rural referral 
centers), in the case of a hospital for a cost reporting period with 
a disproportionate patient percentage (as defined in clause (vi)) 
tha1>-
"(I) is less than 19.3, the disproportionate share adjustment 
percentage is determined in accordance with the following for-
mula: (P-15)(.65) + 2.5; 
"(II) is equal to or exceeds 19.3, but is less than 30.0, 
such adjustment percentage is equal to 5.25 percent; or 
"(III) is equal to or exceeds 30, such adjustment percentage 
is determined in accordance with the following formula: (P-
30)(.6) + 5.25, 
where T' is the hospital's disproportionate patient percentage (as 
defined in clause (vi)).". 
(3) SMALL RURAL HOSPITALS GENERALLY.—Such section is 
further amended— 
(A) in clause (iv)(III), by inserting after "4 percent" 
the following: "or, for discharges occurring on or after April 
1, 2001, is equal to the percent determined in accordance 
with clause (xii)"; and 
(B) by adding at the end the following new clause: 
"(xii) For purposes of clause (iv)(III) (relating to small rural 
hospitals generally), in the case of a hospital for a cost reporting 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-485 
period with a disproportionate patient percentage (as defined in 
clause (vi)) that— 
"(I) is less than 19.3, the disproportionate share adjustment 
percentage is determined in accordance with the following for-
mula: (P-15)(.65) + 2.5; or 
"(II) is equal to or exceeds 19.3, such adjustment percentage 
is equal to 5.25 percent, 
where T' is the hospital's disproportionate patient percentage (as 
defined in clause (vi)).". 
(4) HOSPITALS THAT ARE BOTH SOLE COMMUNITY HOSPITALS 
AND RURAL REFERRAL CENTERS.—Such section is further amend-
ed, in clause (iv)(IV), by inserting after "clause (viii)" the follow-
ing: "or, for discharges occurring on or after April 1, 2001, 
the greater of the percentages determined under clause (x) 
or (xi)". 
(5) URBAN HOSPITALS WITH LESS THAN loo BEDS.—Such 
section is further amended— 
(A) in clause (iv)(II), by inserting after "5 percent" 
the following: "or, for discharges occurring on or after April 
1, 2001, is equal to the percent determined in accordance 
with clause (xiii)"; and 
(B) by adding at the end the following new clause: 
"(xiii) For purposes of clause (iv)(II) (relating to urban hospitals 
with less than 100 beds), in the case of a hospital for a cost 
reporting period with a disproportionate patient percentage (as 
defined in clause (vi)) that— 
"(I) is less than 19.3, the disproportionate share adjustment 
percentage is determined in accordance with the following for-
mula: (P-15)(.65) + 2.5; or 
"(II) is equal to or exceeds 19.3, such adjustment percentage 
is equal to 5.25 percent, 
where T' is the hospital's disproportionate patient percentage (as 
defined in clause (vi)).". 
SEC. 212. OPTION TO BASE ELIGffilLITY FOR MEDICARE DEPENDENT, 
SMALL RURAL HOSPITAL PROGRAM ON DISCHARGES 
DURING TWO OF THE THREE MOST RECENTLY AUDITED 
COST REPORTING PERIODS. 
(a) IN GENERAL.—Section 
1886(d)(5)(G)(iv)(IV) (42 U.S.C. 
1395ww(d)(5)(G)(iv)(IV)) is amended by inserting ", or two of the 
three most recently audited cost reporting periods for which the 
Secretary has a settled cost report," after "1987". 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply with respect to cost reporting periods beginning on 
or after April 1,200 L 
SEC. 213. EXTENSION OF OPTION TO USE REBASED TARGET AMOUNTS 
TO ALL SOLE COMMUNITY HOSPITALS. 
(a) 
IN 
GENERAL.—Section 
1886(b)(3)(I)(i) 
(42 
U.S.C. 
1395ww(b)(3)(I)(i)) is amended— 
(1) in the matter preceding subclause (I), by striking "that 
for its cost reporting period beginning during 1999" and all 
that follows through "for such target amount" and inserting 
"there shall be substituted for the amount otherwise determined 
under subsection (d)(5)(D)(i), if such substitution results in 
a greater amount of payment under this section for the hos-
pital"; 
114 STAT. 2763A-486 
PUBLIC LAW 106-554—APPENDIX F 
(2) in subclause (I), by striking "target amount otherwise 
applicable" and all that follows through "target amount')" and 
inserting "the amount otherwise applicable to the hospital 
under subsection (d)(5)(D)(i) (referred to in this clause as the 
'subsection (d)(5)(D)(i) amount')"; and 
(3) in each of subclauses (II) and (III), by striking "subpara-
graph (C) target amount" and inserting "subsection (d)(5)(D)(i) 
amount". 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in the enactment of section 405 
of BBRA(113 Stat. 1501A-372). 
SEC. 214. MEDPAC ANALYSIS OF IMPACT OF VOLUME ON PER UNIT 
COST OF RURAL HOSPITALS WITH PSYCHIATRIC UNITS. 
The Medicare Payment Advisory Commission, in its study con-
ducted pursuant to subsection (a) of section 411 of BBRA (113 
Stat. 1501A-377), shall include— 
(1) in such study an analysis of the impact of volume 
on the per unit cost of rural hospitals with psychiatric units; 
and 
(2) in its report under subsection (b) of such section a 
recommendation on whether special treatment for such hos-
pitals may be warranted. 
Subtitle C—Other Rural Provisions 
SEC. 221. ASSISTANCE FOR PROVIDERS OF AMBULANCE SERVICES IN 
RURAL AREAS. 
(a) TRANSITIONAL ASSISTANCE IN CERTAIN MILEAGE RATES.— 
Section 1834(1) (42 U.S.C. 1395m(l)) is amended by adding at the 
end the following new paragraph: 
"(8) TRANSITIONAL ASSISTANCE FOR RURAL PROVIDERS.—In 
the case of ground ambulance services furnished on or after 
July 1, 2001, and before January 1, 2004, for which the 
transportation originates in a rural area (as defined in section 
1886(d)(2)(D)) or in a rural census tract of a metropolitan 
statistical area (as determined under the most recent modifica-
tion of the Goldsmith Modification, originally published in the 
Federal Register on February 27, 1992 (57 Fed. Reg. 6725)), 
the fee schedule established under this subsection shall provide 
that, with respect to the payment rate for mileage for a trip 
above 17 miles, and up to 50 miles, the rate otherwise estab-
lished shall be increased by not less than Vi of the additional 
payment per mile established for the first 17 miles of such 
a trip originating in a rural area.". 
(b) GAO STUDIES ON THE COSTS OF AMBULANCE SERVICES FUR-
NISHED IN RURAL AREAS.— 
(1) STUDY.—The Comptroller General of the United States 
shall conduct a study on each of the matters described in 
paragraph (2). 
(2) MATTERS DESCRIBED.—The matters referred to in para-
graph (1) are the following: 
(A) The cost of efficiently providing ambulance services 
for trips originating in rural areas, with special emphasis 
on collection of cost data from rural providers. 
PUBLIC LAW 106-554^APPENDIX F 
114 STAT. 2763A-487 
(B) The means by which rural areas with low popu-
lation densities can be identified for the purpose of des-
ignating areas in which the cost of providing ambulance 
services would be expected to be higher than similar serv-
ices provided in more heavily populated areas because of 
low usage. Such study shall also include an analysis of 
the additional costs of providing ambulance services in 
areas designated under the previous sentence. 
(3) REPORT.—Not later than June 30, 2002, the Comptroller 
GrenerEil shall submit to Congress a report on the results of 
the studies conducted under paragraph (1) and shall include 
recommendations on steps that should be taken to assure access 
to ambulance services in rural areas. 
(c) ADJUSTMENT IN RURAL RATES.—In providing for adjustments 
under subparagraph (D) of section 1834(1)(2) of the Social Security 
Act (42 U.S.C. 1395m(l)(2)) for years beginning with 2004, the 
Secretary of Health and Human Services shall take into consider-
ation the recommendations contained in the report under subsection 
(b)(2) £md shall adjust the fee schedule payment rates under such 
section for ambulance services provided in low density rural areas 
based on the increased cost (if any) of providing such services 
in such areas. 
(d) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to services furnished on or after July 1, 2001. In applying 
such amendment to services furnished on or after such date and 
before January 1, 2002, the amount of the rate increase provided 
under such amendment shall be equal to $1.25 per mile. 
SEC. 222. PAYMENT FOR CERTAB^ PHYSICIAN ASSISTANT SERVICES. 
(a) PAYMENT FOR CERTAIN PHYSICIAN ASSISTANT SERVICES.— 
Section 1842(b)(6)(C) (42 U.S.C. 1395u(b)(6)(C)) is amended— 
(1) by striking "for such services provided before January 
1, 2003,"; and 
(2) by striking the semicolon at the end and inserting 
a comma. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect on the date of the enactment of this Act. 
SEC. 223. REVISION OF MEDICARE REIMBURSEMENT FOR TELE-
HEALTH SERVICES. 
(a) TIME LIMIT FOR B B A PROVISION.—Section 4206(a) of BBA 
(42 U.S.C. 13951 note) is amended by striking "Not later than 
January 1, 1999" and inserting "For services furnished on and 
after January 1, 1999, and before October 1, 2001". 
(b) EXPANSION OF MEDICARE PAYMENT FOR TELEHEALTH SERV-
ICES.—Section 1834 (42 U.S.C. 1395m) is amended by adding at 
the end the following new subsection: 
"(m) PAYMENT FOR TELEHEALTH SERVICES.— 
"(1) IN GENERAL.—The Secretary shall pay for telehealth 
services that are furnished via a telecommunications system 
by a physician (as defined in section 186 l(r)) or a practitioner 
(described in section 1842(b)(18)(C)) to an eligible telehealth 
individual enrolled imder this part notwithstanding that the 
individual physician or practitioner providing the telehealth 
, service is not at the same location as the beneficiary. For 
purposes of the preceding sentence, in the case of any Federal 
telemedicine demonstration program conducted in Alaska or 
Hawaii, the term 'telecommunications system' includes store-
114 STAT. 2763A-488 
PUBLIC LAW 106-554—APPENDIX F 
and-forward technologies that provide for the asynchronous 
transmission of health care information in single or multimedia 
formats. 
"(2) PAYMENT AMOUNT.— 
"(A) DISTANT SITE.—The Secretary shall pay to a physi-
cian or practitioner located at a distant site that furnishes 
a telehealth service to an eligible telehealth individual 
an amount equal to the amount that such physician or 
practitioner would have been paid under this title had 
such service been furnished without the use of a tele-
communications system. 
"(B) FACILITY FEE FOR ORIGINATING SITE.—With respect 
to a telehealth service, subject to section 1833(a)(l)(U), 
there shall be paid to the originating site a facility fee 
equal to— 
"(i) for the period beginning on October 1, 2001, 
and ending on December 31, 2001, and for 2002, $20; 
and 
"(ii) for a subsequent year, the facility fee specified 
in clause (i) or this clause for the preceding year 
increased by the percentage increase in the MEI (as 
defined in section 1842(i)(3)) for such subsequent year. 
"(C) TELEPRESENTER NOT REQUIRED.—^Nothing in this 
subsection shall be construed as requiring an eligible tele-
health individual to be presented by a physician or practi-
tioner at the originating site for the furnishing of a service 
via a telecommunications system, unless it is medically 
necessary (as determined by the physician or practitioner 
at the distant site). 
"(3) LIMITATION ON BENEFICIARY CHARGES.— 
"(A) PHYSICIAN AND PRACTITIONER.—The provisions of 
section 1848(g) and subparagraphs (A) and (B) of section 
1842(b)(18) shall apply to a physician or practitioner receiv-
ing payment under this subsection in the same manner 
as they apply to physicians or practitioners under such 
sections. 
"(B) ORIGINATING SITE.—The provisions of section 
1842(b)(18) shall apply to originating sites receiving a facil-
ity fee in the same manner as they apply to practitioners 
under such section. 
"(4) DEFINITIONS.—For purposes of this subsection: 
"(A) DISTANT SITE.—The term 'distant site' means the 
site at which the physician or practitioner is located at 
the time the service is provided via a telecommunications 
system. 
"(B) ELIGIBLE TELEHEALTH INDIVIDUAL.—The term 
'eligible telehealth individual' means an individual enrolled 
under this part who receives a telehealth service furnished 
at an originating site. 
"(C) ORIGINATING SITE.— 
"(i) IN GENERAL.—^The term 'originating site' means 
only those sites described in clause (ii) at which the 
eligible telehealth individual is located at the time 
the service is furnished via a telecommunications sys-
tem and only if such site is located— 
"(I) in an area that is designated as a rural 
health professional shortage area under section 
PUBLIC LAW 106-554^APPENDIX F 
114 STAT. 2763A-489 
332(a)(1)(A) of the Public Health Service Act (42 
U.S.C. 254e(a)(l)(A)); 
"(II) in a county that is not included in a 
Metropolitan Statistical Area; or 
"(III) from an entity that participates in a 
Federal telemedicine demonstration project that 
has been approved by (or receives funding from) 
the Secretary of Health and Human Services as 
ofDecember31, 2000. 
"(ii) SITES DESCRIBED.—^The sites referred to in 
clause (i) are the following sites: 
"(I) The office of a physician or practitioner. 
"(II) A critical access hospital (as defined in 
section 1861(mm)(l)). 
"(Ill) A rural health clinic (as defined in sec-
tion 1861(aa)(s)). 
"(IV) A Federally qualified health center (as 
defined in section 186 l(aa)(4)). 
"(V) A hospital (as defined in section 1861(e)). 
"(D) PHYSICIAN.—^The term 'physician' has the meaning 
given that term in section 186 l(r). 
"(E) PRACTITIONER.—^The term 'practitioner' has the 
meaning given that term in section 1842(b)(18)(C). 
"(F) TELEHEALTH SERVICE.— 
"(i) IN GENERAL.—The term 'telehealth service' 
means professional consultations, office visits, and 
office psychiatry services (identified as of July 1, 2000, 
by HCPCS codes 99241-99275, 99201-99215, 90804-
90809, and 90862 (and as subsequently modified by 
the Secretary)), and any additional service specified 
by the Secretary. 
"(ii) YEARLY UPDATE.—^The Secretary shall estab-
lish a process that provides, on an annual basis, for 
the addition or deletion of services (and HCPCS codes), 
as appropriate, to those specified in clause (i) for 
authorized pa5anent under paragraph (1).". 
(c) CONFORMING AMENDMENT.—Section 1833(a)(1) (42 U.S.C. 
13951(1)), as amended by section 105(c), is further amended— 
(1) by striking "and (T)" and inserting "(T)"; and 
(2) by inserting before the semicolon at the end the follow-
ing: ", and (U) with respect to facility fees described in section 
1834(m)(2)(B), the amounts paid shall be 80 percent of the 
lesser of the actual charge or the amounts specified in such 
section". 
(d) STUDY AND REPORT ON ADDITIONAL COVERAGE.— 
(1) STUDY.—^The Secretary of Health and Human Services 
shall conduct a study to identify— 
(A) settings and sites for the provision of telehealth 
services that are in addition to those permitted under 
section 1834(m) of the Social Security Act, as added by 
subsection (b); 
(B) practitioners that may be reimbursed under such 
section for furnishing telehealth services that are in addi-
tion to the practitioners that may be reimbursed for such 
services under such section; and 
114 STAT. 2763A-490 
PUBLIC LAW 106-554-APPENDEX: F 
(C) geographic areas in which telehealth services may 
be reimbursed that are in addition to the geographic areas 
where such services may be reimbursed under such section. 
(2) REPORT.—Not later than 2 years after the date of the 
enactment of this Act, the Secretary shall submit to Congress 
a report on the study conducted under paragraph (1) together 
with such recommendations for legislation that the Secretary 
determines are appropriate. 
(e) EFFECTIVE DATE.—The amendments made by subsections 
(b) and (c) shall be effective for services furnished on or after 
October 1, 200 L 
SEC. 224. EXPANDING ACCESS TO RURAL HEALTH CLINICS. 
(a) IN GENERAL.—The matter in section 1833(f) (42 U.S.C. 
13951(f)) preceding paragraph (1) is amended by striking "rural 
hospitals" and inserting "hospitals". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to services furnished on or after July 1, 2001. 
SEC. 225. MEDPAC STUDY ON LOW-VOLUME, ISOLATED RURAL HEALTH 
CARE PROVIDERS. 
(a) STUDY.—The Medicare Payment Advisory Commission shall 
conduct a study on the effect of low patient and procedure volume 
on the financial status of low-volume, isolated rural health care 
providers participating in the medicare program under title XVIII 
of the Social Security Act. 
(b) REPORT.—Not later than 18 months after the date of the 
enactment of this Act, the Commission shall submit to Congress 
a report on the study conducted under subsection (a) indicating— 
(1) whether low-volume, isolated rural health care providers 
are having, or may have, significantly decreased medicare mar-
gins or other financial difficulties resulting from any of the 
payment methodologies described in subsection (c); 
(2) whether the status as a low-volume, isolated rural 
health care provider should be designated under the medicare 
program and any criteria that should be used to qualify for 
such a status; and 
(3) any changes in the payment methodologies described 
in subsection (c) that are necessary to provide appropriate 
reimbursement under the medicare program to low-volume, 
isolated rural health care providers (as designated pursuant 
to paragraph (2)). 
(c) PAYMENT METHODOLOGIES DESCRIBED.—The payment meth-
odologies described in this subsection are the following: 
(1) The prospective payment system for hospital outpatient 
department services under section 1833(t) of the Social Security 
Act (42 U.S.C. 13951(t)). 
(2) The fee schedule for ambulance services under section 
1834(1) of such Act (42 U.S.C. 1395m(l)). 
(3) The prospective payment system for inpatient hospital 
services under section 1886 of such Act (42 U.S.C. 1395ww). 
(4) The prospective payment system for routine service 
costs of skilled nursing facilities under section 1888(e) of such 
Act (42 U.S.C. 1395yy(e)). 
(5) The prospective payment system for home health serv-
ices under section 1895 of such Act (42 U.S.C. 1395fff). 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-491 
TITLE III—PROVISIONS RELATING TO 
:,...., .,,..,. ,......,,,„ „
. PART A , 
Subtitle A—Inpatient Hospital Services 
SEC. 301. REVISION OF ACUTE CARE HOSPITAL PAYMENT UPDATE 
FOR 2001. 
(a) 
IN 
GENERAL.—Section 
1886(b)(3)(B)(i) 
(42 
U.S.C. 
1395ww(b)(3)(B)(i)) is amended— 
(1) in subclause (XVI), by striking "minus 1.1 percentage 
points for hospitals (other than sole community hospitals) in 
all areas, and the market basket percentage increase for sole 
community hospitals," and inserting "for hospitals in all areas,"; 
(2) in subclause (XVII)— 
(A) by striking "minus 1.1 percentage points" and 
inserting "minus 0.55 percentage points; and 
(B) by striking "and" at the end; 
' 
(3) by redesignating subclause (XVIII) as subclause (XIX); 
(4) in subclause (XIX), as so redesignated, by striking "fiscal 
year 2003" and inserting "fiscal year 2004"; and 
(5) by inserting after subclause (XVII) the following new 
subclause: 
"(XVIII) for fiscal year 2003, the market basket percentage 
increase minus 0.55 percentage points for hospitals in all areas, 
and". 
(b) SPECIAL RULE FOR PAYMENT FOR FISCAL YEAR 2001.—Not-
withstanding the amendment made by subsection (a), for purposes 
of making payments for fiscal year 2001 for inpatient hospital 
services furnished by subsection (d) hospitals (as defined in section 
1886(d)(1)(B) of the Social Security Act (42 U.S.C. 1395ww(d)(l)(B)), 
the 
"applicable 
percentage 
increase" referred 
to in section 
1886(b)(3)(B)(i) of such Act (42 U.S.C. 1395ww(b)(3)(B)(i))— 
(1) for discharges occurring on or after October 1, 2000, 
and before April 1, 2001, shall be determined in accordance 
with subclause (XVI) of such section as in effect on the day 
before the date of the enactment of this Act; and 
^ 
(2) for discharges occurring on or after April 1, 2001, and 
before October 1, 2001, shall be equal to— 
(A) the market basket percentage increase plus 1.1 
percentage points for hospitals (other than sole community 
hospitals) in all areas; and 
(B) the market basket percentage increase for sole 
community hospitals. 
(c) CONSIDERATION OF PRICE OF BLOOD AND BLOOD PRODUCTS 
IN MARKET BASKET INDEX.—^The Secretary of Health and Human 
Services shall, when next (after the date of the enactment of this 
Act) rebasing and revising the hospital market basket index (as 
defined in section 1886(b)(3)(B)(iii) of the Social Security Act (42 
U.S.C. 1395ww(b)(3)(B)(iii))), consider the prices of blood and blood 
products purchased by hospitals and determine whether those prices 
are adequately reflected in such index. 
(d) MEDPAC STUDY AND REPORT REGARDING CERTAIN HOSPITAL 
COSTS.— 
(1) STUDY.—The Medicare Payment Advisory Commission 
shall conduct a study on— 
114 STAT. 2763A-492 
PUBLIC LAW 106-554—APPENDIX F 
* ; 
(A) any increased costs incurred by subsection (d) hos-
pitals (as defined in paragraph (1)(B) of section 1886(d) 
of the Social Security Act (42 U.S.C. 1395ww(d))) in provid-
ing inpatient hospital services to medicare beneficiaries 
under title XVIII of such Act during the period beginning 
on October 1, 1983, and ending on September 30, 1999, 
that were attributable to— 
(i) complying with new blood safety measure 
requirements; and 
(ii) providing such services using new technologies; 
(B) the extent to which the prospective payment system 
for such services under such section provides adequate 
and timely recognition of such increased costs; 
(C) the prospects for (and to the extent practicable, 
the magnitude of) cost increases that hospitals will incur 
in providing such services that are attributable to comply-
ing with new blood safety measure requirements and 
providing such services using new technologies during the 
10 years after the date of the enactment of this Act; and 
(D) the feasibility and advisability of establishing 
mechanisms under such payment system to provide for 
more timely and accurate recognition of such cost increases 
in the future. 
(2) CONSULTATION.—In conducting the study under this 
subsection, the Commission shall consult with representatives 
of the blood community, including— 
(A) hospitals; 
(B) organizations involved in the collection, processing, 
and delivery of blood; and 
(C) organizations involved in the development of new 
blood safety technologies. 
(3) REPORT.—Not later than 1 year after the date of the 
enactment of this Act, the Commission shall submit to Congress 
a report on the study conducted under paragraph (1) together 
with such recommendations for legislation and administrative 
action as the Commission determines appropriate. 
(e) ADJUSTMENT FOR INPATIENT CASE MIX CHANGES.— 
(1) 
IN 
GENERAL.—Section 
1886(d)(3)(A) 
(42 
U.S.C. 
1395ww(d)(3)(A)) is amended by adding at the end the following 
new clause: 
"(vi) Insofar as the Secretary determines that the adjust-
ments under paragraph (4)(C)(i) for a previous fiscal year (or 
estimates that such adjustments for a future fiscal year) did 
(or are likely to) result in a change in aggregate payments 
under this subsection during the fiscal year that are a result 
of changes in the coding or classification of discharges that 
do not reflect real changes in case mix, the Secretary may 
adjust the average standardized amounts computed under this 
paragraph for subsequent fiscal years so as to eliminate the 
effect of such coding or classification changes.". 
(2) EFFECTIVE DATE.—^The amendment made by paragraph 
(1) shall apply to discharges occurring on or after October 
1, 2001. 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-493 
SEC. 302. ADDITIONAL MODIFICATION IN TRANSITION FOR INDIRECT 
MEDICAL EDUCATION (IME) PERCENTAGE ADJUSTMENT. 
(a) 
IN 
GENERAL.—Section 
1886(d)(5)(B)(ii) 
(42 
U.S.C. 
1395ww(d)(5)(B)(ii)) is amended— 
(1) in subclause (V) by striking "and" at the end; 
(2) by redesignating subclause (VI) as subclause (VII); 
(3) in subclause (VII) as so redesignated, by striking "2001" 
and inserting "2002"; and 
(4) by inserting after subclause (V) the following new sub-
clause: 
"(VI) during fiscal year 2002, 'c' is equal to 1.6; and". 
(b) SPECLIVL RULE FOR PAYMENT FOR FISCAL YEAR 2001.—Not-
withstanding paragraph (5)(B)(ii)(V) of section 1886(d) of the Social 
Security Act (42 U.S.C. 1395ww(d)(5)(BXii)(V)), for purposes of mak-
ing payments for subsection (d) hospitals (as defined in paragraph 
(1)(B) of such section) with indirect costs of medical education, 
the indirect teaching adjustment factor referred to in paragraph 
(5)(B)(ii) of such section shall be determined, for discharges occur-
ring on or after April 1, 2001, and before October 1, 2001, as 
if "c" in paragraph (5)(B)(ii)(V) of such section equalled 1.66 rather 
than 1.54. 
(c) CONFORMING AMENDMENT RELATING TO DETERMINATION OF 
STANDARDIZED 
AMOUNT.—Section 
1886(d)(2)(C)(i) 
(42 
U.S.C. 
1395ww(d)(2)(C)(i)) is amended by inserting "or of section 302 of 
the Medicare, Medicaid, and SCHIP Benefits Improvement and 
Protection Act of 2000" after "Balanced Budget Refinement Act 
of 1999". 
(d) CLERICAL AMENDMENTS.—Section 1886(d)(5)(B) (42 U.S.C. 
1395ww(d)(5)(B)), as amended by subsection (a), is further amended 
by moving the indentation of each of the following 2 ems to the 
left: 
(1) Clauses (ii), (v), and (vi). 
(2) Subclauses (I) (II), (III), (IV), (V), and (VII) of clause 
(ii). 
(3) Subclauses (I) and (II) of clause (vi) and the flush 
sentence at the end of such clause. 
SEC. 303. DECREASE IN REDUCTIONS FOR DISPROPORTIONATE SHARE 
HOSPITAL (DSH) PAYMENTS. 
(a) 
IN 
GENERAL.—Section 
1886(d)(5)(F)(ix) 
(42 
U.S.C. 
1395ww(d)(5)(F)(ix)) is amended— 
(1) in subclause (III), by striking "each of and by inserting 
"and 2 percent, respectively" after "3 percent"; and 
(2) in subclause (IV), by striking "4 percent" and inserting 
"3 percent". 
(b) SPECIAL RULE FOR PAYMENT FOR FISCAL YEAR 2001.—Not-
withstanding the amendment made by subsection (a)(1), for pur-
poses of making disproportionate share payments for subsection 
(d) hospitals (as defined in section 1886(d)(1)(B) of the Social Secu-
rity Act (42 U.S.C. 1395ww(d)(l)(B)) for fiscal year 2001, the addi-
tional payment amount otherwise determined under clause (ii) of 
section 
1886(d)(5)(F) of the Social Security Act (42 U.S.C. 
1395ww(d)(5)(F))— 
(1) for discharges occurring on or after October 1, 2000, 
and before April 1, 2001, shall be adjusted as provided by 
clause (ix)(III) of such section as in effect on the day before 
the date of the enactment of this Act; and 
114 STAT. 2763A-494 
PUBLIC LAW 106-554^APPENDIX F 
(2) for discharges occurring on or after April 1, 2001, and 
before October 1, 2001, shall, instead of being reduced by 3 
percent as provided by clause (ix)(III) of such section as in 
effect after the date of the enactment of this Act, be reduced 
by 1 percent. 
(c) CONFORMING AMENDMENTS REI^TING TO DETERMINATION 
OF STANDARDIZED AMOUNT.—Sectibn 1886(d)(2)(C)(iv) (42 U.S.C. 
1395ww(dX2)(C)(iv)), is amended— 
(1) by striking "1989 or" and inserting "1989,"; and 
(2) by inserting ", or the enactment of section 303 of the 
Medicare, Medicaid, and SCHIP Benefits Improvement and 
Protection Act of 2000" after "Omnibus Budget Reconciliation 
Act of 1990". 
(d) TECHNICAL AMENDMENT.— 
(1) IN GENERAL.—Section 
1886(d)(5)(F)(i) (42 U.S.C. 
1395ww(d)(5)(F)(i)) is amended by striking "and before October 
1, 1997,". 
(2) EFFECTIVE DATE.—The amendment made by paragraph 
(1) is effective as if included in the enactment of BBA. 
(e) REFERENCE TO CHANGES IN D S H FOR RURAL HOSPITALS.— 
For additional changes in the DSH program for rural hospitals, 
see section 211. 
SEC. 304. WAGE INDEX IMPROVEMENTS. 
(a) DURATION OF WAGE INDEX RECLASSIFICATION; USE OF 3-
YEAR 
WAGE 
DATA.—Section 
1886(d)(10)(D) 
(42 
U.S.C. 
1395ww(d)(10)(D)) is amended by adding at the end the following 
new clauses: 
"(v) Any decision of the Board to reclassify a subsection (d) 
hospital for purposes of the adjustment factor described in subpara-
graph (C)(i)(II) for fiscal year 2001 or any fiscal year thereafter 
shall be effective for a period of 3 fiscal years, except that the 
Secretary shall establish procedures under which a subsection (d) 
hospital may elect to terminate such reclassification before the 
end of such period. 
"(vi) Such guidelines shall provide that, in making decisions 
on applications for reclassification for the purposes described in 
clause (v) for fiscal year 2003 and any succeeding fiscal year, 
the Board shall base any comparison of the average hourly wage 
for the hospital with the average hourly wage for hospitals in 
an area on— 
"(I) an average of the average hourly wage amount for 
the hospital from the most recently published hospital wage 
survey data of the Secretary (as of the date on which the 
hospital applies for reclassification) and such amount from 
each of the two immediately preceding surveys; and 
"(II) an average of the average hourly wage amount for 
hospitals in such area from the most recently published hospital 
wage survey data of the Secretary (as of the date on which 
the hospital applies for reclassification) and such amount from 
each of the two immediately preceding surveys.". 
(b) PROCESS TO PERMIT STATEWIDE WAGE INDEX CALCULATION 
AND APPLICATION.— 
(1) IN GENERAL.—^The Secretary of Health and Human 
Services shall establish a process (based on the voluntary proc-
ess utilized by the Secretary of Health and Human Services 
under section 1848 of the Social Security Act (42 U.S.C. 1395w-
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-495 
4) for purposes of computing and applying a statewide 
geographic adjustment factor) under which an appropriate 
statewide entity may apply to have all the geographic areas 
in a State treated as a single geographic area for purposes 
of computing and applying the area wage index under section 
1886(d)(3)(E) of such Act (42 U.S.C. 1395ww(d)(3)(E)). Such 
process shall be established by October 1, 2001, for reclassifica-
tions beginning in fiscal year 2003. 
(2) PROHIBITION ON INDIVIDUAL HOSPITAL RECLASSIFICA-
TION.—Notwithstanding any other provision of law, if the Sec-
retary applies a statewide geographic wage index under para-
graph (1) with respect to a State, any application submitted 
by a hospital in that State under section 1886(d)(10) of the 
Social Security Act (42 U.S.C. 1395ww(d)(10)) for geographic 
reclassification shall not be considered. 
(c) COLLECTION OF INFORMATION ON OCCUPATIONAL MIX.— 
(1) IN GENERAL.—The Secretary of Health and Human 
Services shall provide for the collection of data every 3 years 
on occupational mix for employees of each subsection (d) hos-
pital (as defined in section 1886(d)(1)(D) of the Social Security 
Act (42 U.S.C. 1395ww(d)(l)(D))) in the provision of inpatient 
hospital services, in order to construct an occupational mix 
adjustment in the hospital area wage index applied under 
section 1886(d)(3)(E) of such Act (42 U.S.C. 1395ww(d)(3)(E)). 
(2) 
APPLICATION.—The 
third 
sentence 
of 
section 
1886(d)(3j(E) (42 U.S.C. 1395ww(d)(3)(E)) is amended by strik-
ing "To the extent determined feasible by the Secretary, such 
survey shall measure" and inserting "Not less often than once 
every 3 years the Secretary (through such survey or otherwise) 
shall measure". 
(3) EFFECTIVE DATE.—By not later than September 30, 
2003, for application beginning October 1, 2004, the Secretary 
shall first complete— 
(A) the collection of data under paragraph (1); and 
(B) the measurement under the third sentence of sec-
tion 1886(d)(3)(E), as amended by paragraph (2). 
SEC. 305. PAYMENT FOR INPATIENT SERVICES OF REHABILITATION 
HOSPITALS. 
(a) ASSISTANCE WITH ADMINISTRATIVE COSTS ASSOCIATED WITH 
COMPLETION OF PATIENT ASSESSMENT.—Section 1886(j)(3)(B) (42 
U.S.C. 1395ww(j)(3)(B)) is amended by striking "98 percent" and 
inserting "98 percent for fiscal year 2001 and 100 percent for 
fiscal year 2002". 
(b) ELECTION TO APPLY FULL PROSPECTIVE PAYMENT RATE 
WITHOUT PHASE-IN.— 
(1) IN GENERAL.—Paragraph (1) of section 1886(j) (42 
U.S.C. 1395ww(j)) is amended— 
(A) in subparagraph (A), by inserting "other than a 
facility making an election under subparagraph (F)" before 
"in a cost reporting period"; 
(B) in subparagraph (B), by inserting "or, in the case 
of a facility making an election under subparagraph (F), 
for any cost reporting period described in such subpara-
graph," after "2002,"; and 
(C) by adding at the end the following new subpara-
graph: 
114 STAT. 2763A-496 
PUBLIC LAW 106-554—APPENDIX F 
"(F) ELECTION TO APPLY FULL PROSPECTIVE PAYMENT 
SYSTEM.—^A rehabilitation facility may elect, not later than 
30 days before its first cost reporting period for which 
the payment methodology under this subsection applies 
to the facility, to have payment made to the facility under 
this subsection under the provisions of subparagraph (B) 
(rather than subparagraph (A)) for each cost reporting 
period to which such payment methodology applies.". 
(2) CLARIFICATION.—Paragraph (3)(B) of such section is 
amended by inserting "but not taking into account any payment 
adjustment resulting from an election permitted under para-
graph (1)(F)" after "paragraphs (4) and (6)". 
(c) EFFECTIVE DATE.—The amendments made by this section 
take effect as if included in the enactment of BBA. 
SEC. 306. PAYMENT FOR INPATIENT SERVICES OF PSYCHIATRIC HOS-
PITALS. 
With respect to hospitals described in clause (i) of section 
1886(d)(1)(B) of the Social Security Act (42 U.S.C. 1395ww(d)(l)(B)) 
and psychiatric units described in the matter following clause (v) 
of such section, in making incentive payments to such hospitals 
under section 1886(b)(1)(A) of such Act (42 U.S.C. 1395ww(b)(l)(A)) 
for cost reporting periods beginning on or after October 1, 2000, 
and before October 1, 2001, the Secretary of Health and Human 
Services, in clause (ii) of such section, shall substitute "3 percent" 
for "2 percent". 
SEC. 307. PAYMENT FOR INPATIENT SERVICES OF LONG-TERM CARE 
HOSPITALS. 
(a) INCREASED TARGET AMOUNTS AND CAPS FOR LONG-TERM 
CARE HOSPITALS BEFORE IMPLEMENTATION OF THE PROSPECTIVE 
PAYMENT SYSTEM.— 
(1) 
IN 
GENERAL.—Section 
1886(b)(3) 
(42 
U.S.C. 
1395ww(b)(3)) is amended— 
(A) in subparagraph (H)(ii)(III), by inserting "subject 
to subparagraph (J)," after "2002,"; and 
(B) by adding at the end the following new subpara-
graph: 
"(J) For cost reporting periods beginning during fiscal year 
2001, for a hospital described in subsection (d)(l)(B)(iv)— 
"(i) the limiting or cap amount otherwise determined under 
subparagraph (H) shall be increased by 2 percent; and 
"(ii) the target amount otherwise determined 
under 
subparagraph (A) shall be increased by 25 percent (subject 
to the limiting or cap amount determined under subparagraph 
(H), as increased by clause (i)).". 
(2) APPLICATION.—The amendments made by subsection 
(a) and by section 122 of BBRA (113 Stat. 1501A-331) shall 
not be taken into account in the development and implementa-
tion of the prospective pa3niient system under section 123 of 
BBRA (113 Stat. 1501A-331). 
(b) IMPLEMENTATION OF PROSPECTIVE PAYMENT SYSTEM FOR 
LONG-TERM CARE HOSPITALS.— 
(1) MODIFICATION OF REQUIREMENT.—In developing the 
prospective payment system for payment for inpatient hospital 
services provided in long-term care hospitals described in sec-
tion 1886(d)(l)(B)(iv) of the Social Security Act (42 U.S.C. 
1395ww(d)(l)(B)(iv)) under the medicare program under title 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-497 
XVIII of such Act required under section 123 of BBRA, the 
Secretary of Health and Human Services shall examine the 
feasibility and the impact of basing payment under such a 
system on the use of existing (or refined) hospital diagnosis-
related groups (DRGs) that have been modified to account 
for different resource use of long-term care hospital patients 
as well as the use of the most recently available hospital 
discharge data. The Secretary shall examine and may provide 
for appropriate adjustments to the long-term hospital payment 
system, including adjustments to DRG weights, area wage 
adjustments, geographic reclassification, outliers, updates, and 
a disproportionate share adjustment consistent with section 
1886(d)(5)(F) 
of 
the 
Social 
Security 
Act 
(42 
U.S.C. 
1395ww(d)(5)(F)). 
(2) DEFAULT IMPLEMENTATION OF SYSTEM BASED ON EXIST-
ING DRG METHODOLOGY.—If the Secretary is unable to imple-
ment the prospective payment system under section 123 of 
the BBRA by October 1, 2002, the Secretary shall implement 
a prospective pajonent system for such hospitals that bases 
pajonent under such a system using existing hospital diagnosis-
related groups (DRGs), modified where feasible to account for 
resource use of long-term care hospital patients using the most 
recently available hospital discharge data for such services 
furnished on or afl;er that date. 
Subtitle B—^Adjustments to PPS Payments 
for Skilled Nursing Facilities 
SEC. 311. ELIMINATION OF REDUCTION IN SKILLED NURSING FACILITY 
(SNF) MARKET BASKET UPDATE IN 2001. 
(a) 
IN 
GENERAL.^ection 
1888(e)(4)(EXii) 
(42 
U.S.C. 
1395yy(e)(4)(E)(ii)) is amended— 
(1) by redesignating subclauses (II) and (III) as subclauses 
(III) and (IV), respectively; 
(2) in subclause (III), as so redesignated— 
(A) by striking "each of fiscal years 2001 and 2002" 
and inserting "each of fiscal years 2002 and 2003"; and 
(B) by striking "minus 1 percentage point" and insert-
ing "minus 0.5 percentage points"; and 
(3) by inserting after subclause (I) the following new sub-
clause: 
"(II) for fiscal year 2001, the rate computed 
for the previous fiscal year increased by the skilled 
nursing facility market basket percentage change 
for the fiscal year;". 
(b) SPECIAL RULE FOR PAYMENT FOR FISCAL YEAR 2001.—Not-
withstanding the amendments made by subsection (a), for purposes 
of making payments for covered skilled nursing facility services 
under section 1888(e) of the Social Security Act (42 U.S.C. 
1395yy(e)) for fiscal year 2001, the Federal per diem rate referred 
to in paragraph (4)(E)(ii) of such section— 
(1) for the period beginning on October 1, 2000, and ending 
on March 31, 2001, shall be the rate determined in accordance 
with the law as in effect on the day before the date of the 
enactment of this Act; and 
114 STAT. 2763A-498 
PUBLIC LAW 106-554—APPENDIX F 
(2) for the period beginning on April 1, 2001, and ending 
on September 30, 2001, shall be the rate that would have 
been determined under such section if "plus 1 percentage point" 
had been substituted for "minus 1 percentage point" under 
subclause (II) of such paragraph (as in effect on the day before 
the date of the enactment of this Act). 
(c) 
RELATION 
TO TEMPORARY 
INCREASE 
IN 
BBRA.—The 
increases provided under section 101 of BBRA (113 Stat. 150 lA-
325) shall be in addition to any increase resulting from the amend-
ments made by subsection (a). 
(d) GAO REPORT ON ADEQUACY OF S N F PAYMENT RATES.— 
Not later than July 1, 2002, the Comptroller Greneral of the United 
States shall submit to Congress a report on the adequacy of medi-
care pajmient rates to skilled nursing facilities and the extent 
to which medicare contributes to the financial viability of such 
facilities. Such report shall take into account the role of private 
payors, medicaid, and case mix on the financial performance of 
these facilities, and shall include an analysis (by specific RUG 
classification) of the number and characteristics of such facilities. 
(e) HCFA STUDY OF CLASSIFICATION SYSTEMS FOR SNF RESI-
DENTS.— 
(1) STUDY.—The Secretary of Health and Human Services 
shall conduct a study of the different systems for categorizing 
patients in medicare skilled nursing facilities in a manner 
that accounts for the relative resource utilization of different 
patient t3T)es. 
(2) REPORT.—^Not later than January 1, 2005, the Secretary 
shall submit to Congress a report on the study conducted under 
subsection (a). Such report shall include such recommendations 
regarding changes in law as may be appropriate. 
SEC. 312. INCREASE IN NURSING COMPONENT OF PPS FEDERAL RATE. 
(a) IN GENERAL.—^The Secretary of Health and Human Services 
shall increase by 16.66 percent the nursing component of the case-
mix adjusted Federal prospective payment rate specified in Tables 
3 and 4 of the final rule published in the Federal Register by 
the Health Care Financing Administration on July 31, 2000 (65 
Fed. Reg. 46770) and as subsequently updated, effective for services 
furnished on or after April 1, 2001, and before October 1, 2002. 
(b) GAO AUDIT OF NURSING STAFF RATIOS.— 
(1) AUDIT.—The Comptroller General of the United States 
shall conduct an audit of nursing staffing ratios in a representa-
tive sample of medicare skilled nursing facilities. Such sample 
shall cover selected States and shall include broad representa-
tion with respect to size, ownership, location, and medicare 
volume. Such audit shall include an examination of payroll 
records and medicaid cost reports of individual facilities. 
(2) REPORT.—Not later than August 1, 2002, the Comptrol-
ler General shall submit to Congress a report on the audits 
conducted under paragraph (1). Such report shall include an 
assessment of the impact of the increased payments under 
this subtitle on increased nursing staff ratios and shall make 
recommendations as to whether increased payments under sub-
section (a) should be continued. 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-499 
SEC. 313. APPLICATION OF SNF CONSOLIDATED BILLING REQUIRE-
MENT LIMITED TO PART A COVERED STAYS. 
(a) IN GENERAL.—Section 1862(a)(18) (42 U.S.C. 1395y(a)(18)) 
is amended by striking "or of a part of a facility that includes 
a skilled nursing facility (as determined under regulations)," and 
inserting "during a period in which the resident is provided covered 
post-hospital extended care services (or, for services described in 
section 1861(s)(2)(D), which are furnished to such an individual 
without regard to such period),". 
(b) CONFORMING AMENDMENTS.—(1) Section 1842(b)(6)(E) (42 
U.S.C. 1395u(b)(6)(E)) is amended— 
(A) by inserting "by, or under arrangements made by, a 
skilled nursing facility" after "furnished"; 
(B) by striking "or of a part of a facility that includes 
a skilled nursing facility (as determined under regulations)"; 
and 
(C) by striking "(without regard to whether or not the 
item or service was furnished by the facility, by others under 
arrangement with them made by the facility, under any other 
contracting or consulting arrangement, or otherwise)". 
(2) Section 1842(t) (42 U.S.C. 1395u(t)) is amended by striking 
"by a physician" and "or of a part of a facility that includes a 
sMlled nursing facility (as determined under regulations),". 
(3) Section 1866(a)(l)(H)(ii)(I) (42 U.S.C. 1395cc(a)(l)(H)(ii)(I)) 
is amended by inserting after "who is a resident of the skilled 
nursing facility" the following: "during a period in which the resi-
dent is provided covered post-hospital extended care services (or, 
for services described in section 1861(s)(2)(D), that are furnished 
to such an individual without regard to such period)". 
(c) EFFECTIVE DATE.—The amendments made by subsections 
(a) and (b) shall apply to services furnished on or after January 
1, 2001. 
(d) OVERSIGHT.—The Secretary of Health and Human Services, 
through the Office of the Inspector General in the Department 
of Health and Human Services or otherwise, shall monitor pa5anents 
made under part B of the title XVIII of the Social Security Act 
for items and services furnished to residents of skilled nursing 
facilities during a time in which the residents are not being provided 
medicare covered post-hospital extended care services to ensure 
that there is not duplicate billing for services or excessive services 
provided. 
SEC. 314. ADJUSTMENT OF REHABILITATION RUGS TO CORRECT 
ANOMALY IN PAYMENT RATES. 
(a) ADJUSTMENT FOR REHABILITATION RUGS.— 
(1) IN GENERAL.—For purposes of computing payments for 
covered skilled nursing facility services under paragraph (1) 
of section 1888(e) of the Social Security Act (42 U.S.C. 
13953^(e)) for such services furnished on or after April 1, 2001, 
and before the date described in section 101(c)(2) of BBRA 
(113 Stat. 1501A-324), the Secretary of Health and Human 
Services shall increase by 6.7 percent the adjusted Federal 
per diem rate otherwise determined under paragraph (4) of 
such section (but for this section) for covered skilled nursing 
facility services for RUG-III rehabilitation groups described 
in paragraph (2) furnished to an individual during the period 
114 STAT. 2763A-500 
PUBLIC LAW 106-554—APPENDIX F 
in which such individual is classified in such a RUG-III cat-
egory. 
(2) REHABILITATION 
GROUPS DESCRIBED.—The RUGr-III 
rehabilitation groups for which the adjustment described in 
paragraph (1) appHes are RUC, RUB, RUA, RVC, RVB, RVA, 
RHC, RHB, RHA, RMC, RMB, RMA, RLB, and RLA, as speci-
fied in Tables 3 and 4 of the final rule published in the Federal 
Register by the Health Care Financing Administration on July 
31, 2000 (65 Fed. Reg. 46770). 
(b) CORRECTION WITH RESPECT TO REHABILITATION RUGS.— 
(1) IN GENERAL.—Section 101(b) of BBRA (113 Stat. 150 lA-
324) is amended by striking "CAl, RHC, RMC, and RMB" 
and inserting "and CAl". 
(2) EFFECTIVE DATE.—The amendment made by paragraph 
(1) shall apply to services furnished on or after April 1, 2001. 
(c) REVIEW BY OFFICE OF INSPECTOR GENERAL.—^The Inspector 
General of the Department of Health and Human Services shall 
review the medicare payment structure for services classified within 
rehabilitation resource utilization groups (RUGs) (as in effect after 
the date of the enactment of the BBRA) to assess whether payment 
incentives exist for the delivery of inadequate care. Not later than 
October 1, 2001, the Inspector General shall submit to Congress 
a report on such review. 
SEC. 315. ESTABLISHMENT OF PROCESS FOR GEOGRAPHIC RECLASSI-
FICATION. 
(a) IN GENERAL.—^The Secretary of Health and Human Services 
may establish a procedure for the geographic reclassification of 
a skilled nursing facility for purposes of payment for covered skilled 
nursing facility services under the prospective pa5anent system 
established under section 1888(e) of the Social Security Act (42 
U.S.C. 1395yy(e)). Such procedure may be based upon the method 
for geographic reclassifications for inpatient hospitals established 
under section 1886(d)(10) of the Social Security Act (42 U.S.C. 
1395ww(d)(10)). 
(b) 
REQUIREMENT FOR SKILLED 
NURSING 
FACILITY 
WAGE 
DATA,—In no case may the Secretary implement the procedure 
under subsection (a) before such time as the Secretary has collected 
data necessary to establish an area wage index for skilled nursing 
facilities based on wage data from such facilities. 
Subtitle C—^Hospice Care 
SEC. 321. FIVE PERCENT INCREASE IN PAYMENT BASE. 
(a) IN GENERAL.—Section 
1814(i)(l)(C)(ii)(VI) (42 U.S.C. 
1395f(i)(l)(C)(ii)(VI)) is amended by inserting ", plus, in the case 
of fiscal year 2001, 5.0 percentage points" before the semicolon 
at the end. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to hospice care furnished on or after April 1, 2001. 
In applying clause (ii) of section 1814(i)(l)(C) of the Social Security 
Act (42 U.S.C. 1395fli)(l)(C)) beginning with fiscal year 2002, the 
pa3anent rates in effect under such section during the period begin-
ning on April 1, 2001, and ending on September 30, shall be 
treated as the payment rates in effect during fiscal year 2001. 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-501 
(c) No EFFECT ON BBRA TEMPORARY INCREASE.—The provisions 
of this section shall have no effect on the application of section 
131 of BBRA. 
(d) APPLICATION OF WAGE INDEX.—Notwithstanding section 
1814(i) of the Social Security Act (42 U.S.C. 1395fli)), the Secretary 
of Health and Human Services shall use 1.0043 as the hospice 
wage index value for the Wichita, Kansas Metropolitan Statistical 
Area in calculating pa3nnents under such section for a hospice 
program providing hospice care in such area during fiscal year 
2000. The Secretary may provide for an appropriate timely lump 
sum payment to reflect the application of the previous sentence. 
(e) 
TECHNICAL AMENDMENT.—Section 
1814(a)(7)(A)(ii) (42 
U.S.C. 1395f(a)(7)(A)(ii)) is amended by striking the period at the 
end and inserting a semicolon. 
SEC. 322. CLARIFICATION OF PHYSICIAN CERTIFICATION. 
(a) CERTIFICATION BASED ON NORMAL COURSE OF ILLNESS.— 
(1) IN GENERAL.—Section 1814(a) (42 U.S.C. 1395fla)) is 
amended by adding at the end the following new sentence: 
"The certification regarding terminal illness of an individual 
under paragraph (7) shall be based on the physician's or medical 
director's clinical judgment regarding the normal course of the 
individual's illness.". 
(2) EFFECTIVE DATE.—^The amendment made by paragraph 
(1) shall apply to certifications made on or after the date 
of the enactment of this Act. 
(b) STUDY AND REPORT ON PHYSICIAN CERTIFICATION REQUIRE-
MENT FOR HOSPICE BENEFITS.— 
(1) STUDY.—^The Secretary of Health and Human Services 
shall conduct a study to examine the appropriateness of the 
certification regarding terminal illness of an individual under 
section 1814(a)(7) of the Social Security Act (42 U.S.C. 
1395f(a)(7)) that is required in order for such individual to 
receive hospice benefits under the medicare program under 
title XVIII of such Act. In conducting such study, the Secretary 
shall take into account the effect of the amendment made 
by subsection (a). 
(2) REPORT.—Not later than 2 years after the date of the 
enactment of this Act, the Secretary of Health and Human 
Services shall submit to Congress a report on the study con-
ducted under paragraph (1), together with any recommenda-
tions for legislation that the Secretary deems appropriate. 
SEC. 323. MEDPAC REPORT ON ACCESS TO, AND USE OF, HOSPICE 
BENEFIT. 
(a) IN GENERAL.—^The Medicare Payment Advisory Commission 
shall conduct a study to examine the factors affecting the use 
of hospice benefits under the medicare program imder title XVIII 
of the Social Security Act, including a delay in the time (relative 
to death) of entry into a hospice program, and differences in such 
use between urban and rural hospice programs and based upon 
the presenting condition of the patient. 
(b) REPORT.—^Not later than 18 months after the date of the 
enactment of this Act, the Commission shall submit to Congress 
a report on the study conducted under subsection (a), together 
with any recommendations for legislation that the Commission 
deems appropriate. 
114 STAT. 2763A-502 
PUBLIC LAW 106-554—APPENDIX F 
Subtitle D—Other Provisions 
SEC. 331. RELIEF FROM MEDICARE PART A LATE ENROLLMENT PEN-
ALTY FOR GROUP BUY-IN FOR STATE AND LOCAL RETIR-
EES. 
(a) IN GENERAL.—Section 
1818 (42 U.S.C. 
1395i-2) 
is 
amended— 
(1) in subsection (c)(6), by inserting before the semicolon 
at the end the following: "and shall be subject to reduction 
in accordance with subsection (d)(6)"; and 
(2) by adding at the end of subsection (d) the following 
new paragraph: 
"(6)(A) In the case where a State, a political subdivision of 
a State, or an agency or instrumentality of a State or political 
subdivision thereof determines to pay, for the life of each individual, 
the monthly premiums due under paragraph (1) on behalf of each 
of the individuals in a qualified State or local government retiree 
group who meets the conditions of subsection (a), the amount of 
any increase otherwise applicable under section 1839(b) (as applied 
and modified by subsection (c)(6) of this section) with respect to 
the monthly premium for benefits under this part for an individual 
who is a member of such group shall be reduced by the total 
amount of taxes paid under section 3101(b) of the Internal Revenue 
Code of 1986 by such individual and under section 3111(b) by 
the employers of such individual on behalf of such individual with 
respect to employment (as defined in section 3121(b) of such Code). 
"(B) For purposes of this paragraph, the term 'qualified State 
or local government retiree group' means all of the individuals 
who retire prior to a specified date that is before January 1, 2002, 
from employment in one or more occupations or other broad classes 
of employees of— 
"(i) the State; 
"(ii) a political subdivision of the State; or 
"(iii) an agency or instrumentality of the State or political 
subdivision of the State.". 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall apply to premiums for months beginning with January 
1, 2002. 
TITLE IV—PROVISIONS RELATING TO 
PARTE 
Subtitle A—Hospital Outpatient Services 
SEC. 401. REVISION OF HOSPITAL OUTPATIENT PPS PAYMENT UPDATE. 
(a) 
IN 
GENERAL.—Section 
1833(t)(3)(C)(iii) 
(42 
U.S.C. 
13951(t)(3)(C)(iii)) is amended by striking "in each of 2000, 2001, 
and 2002" and inserting "in each of 2000 and 2002". 
(b) ADJUSTMENT FOR CASE MIX CHANGES.— 
(1) 
IN 
GENERAL.—Section 
1833(t)(3)(C) 
(42 
U.S.C. 
13951(t)(3)(C)) is amended— 
(A) by redesignating clause (iii) as clause (iv); and 
(B) by inserting after clause (ii) the following new 
clause: 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-503 
"(iii) ADJUSTMENT FOR SERVICE MIX CHANGES.— 
Insofar as the Secretary determines that the adjust-
ments for service mix under paragraph (2) for a pre-
vious year (or estimates that such adjustments for 
a future year) did (or are Hkely to) result in a change 
in aggregate payments under this subsection during 
the year that are a result of changes in the coding 
or classification of covered OPD services that do not 
reflect real changes in service mix, the Secretary may 
adjust the conversion factor computed under this 
subparagraph for subsequent years so as to eliminate 
the effect of such coding or classification changes.". 
(2) EFFECTIVE DATE.—^The amendments made by paragraph 
(1) shall take effect as if included in the enactment of BBA. 
(c) SPECIAL RULE FOR PAYMENT FOR 2001.—Notwithstanding 
the amendment made by subsection (a), for purposes of making 
payments under section 1833(t) of the Social Security Act (42 U.S.C. 
13951(t)) for covered OPD services furnished during 2001, the medi-
care OPD fee schedule amount under such section— 
(1) for services furnished on or after January 1, 2001, 
and before April 1, 2001, shall be the medicare OPD fee sched-
ule amount for 2001 as determined under the provisions of 
law in effect on the day before the date of the enactment 
of this Act; and 
(2) for services furnished on or after April 1, 2001, and 
before January 1, 2002, shall be the fee schedule amount (as 
determined taking into account the amendment made by sub-
section (a)), increased by a transitional percentage allowance 
equal to 0.32 percent (to account for the timing of implementa-
tion of the full market basket update). 
SEC. 402. CLARIFYING PROCESS AND STANDARDS FOR DETERMINING 
ELIGIBILITY OF DEVICES FOR PASS-THROUGH 
PAY-
MENTS UNDER HOSPITAL OUTPATIENT PPS. 
(a) IN GENERAL.—Section 1833(t)(6) (42 U.S.C. 13951(t)(6)) is 
amended— 
(1) by redesignating subparagraphs (C) and (D) as subpara-
graphs (D) and (E), respectively; and 
(2) by striking subparagraph (B) and inserting the following 
new subparagraphs: 
"(B) USE OF CATEGORIES IN DETERMINING ELIGIBILITY 
OF A DEVICE FOR PASS-THROUGH PAYMENTS.—The following 
provisions apply for purposes of determining whether a 
medical device qualifies for additional payments under 
clause (ii) or (iv) of subparagraph (A): 
"(i) ESTABLISHMENT OF INITIAL CATEGORIES.— 
"(I) IN GENERAL.—The Secretary shall initially 
establish under this clause categories of medical 
devices based on type of device by April 1, 2001. 
Such categories shall be established in a manner 
such that each medical device that meets the 
requirements of clause (ii) or (iv) of subparagraph 
(A) as of January 1, 2001, is included in such 
a category and no such device is included in more 
than one category. For purposes of the preceding 
sentence, whether a medical device meets such 
requirements as of such date shall be determined 
114 STAT. 2763A-504 
PUBLIC LAW 106-554—APPENDIX F 
on the basis of the program memoranda issued 
before such date. 
"(II) 
AUTHORIZATION 
OF IMPLEMENTATION 
OTHER THAN THROUGH REGULATIONS.—^The cat-
egories may be established under this clause by 
program memorandum or otherwise, after con-
sultation 
with 
groups 
representing 
hospitals, 
manufacturers of medical devices, and other 
affected parties. 
"(ii) ESTABLISHING CRITERIA FOR ADDITIONAL CAT-
EGORIES.— 
"(I) IN GENERAL.—The Secretary shall estab-
lish criteria that will be used for creation of addi-
tional categories (other than those established 
under clause (i)) through rulemaking (which may 
include use of an interim final rule with comment 
period). 
"(II) STANDARD.—Such categories shall be 
established under this clause in a manner such 
that no medical device is described by more than 
one category. Such criteria shall include a test 
of whether the average cost of devices that would 
be included in a category and are in use at the 
time the category is established is not insignifi-
cant, as described in subparagraph (A)(iv)(II). 
"(Ill) DEADLINE.—Criteria shall first be estab-
lished under this clause by July 1, 2001. The Sec-
retary may establish in compelling circumstances 
categories under this clause before the date such 
criteria are established. 
"(IV) 
ADDING 
CATEGORIES.—^The 
Secretary 
shall promptly establish a new category of medical 
devices under this clause for any medical device 
that meets the requirements of subparagraph 
(A)(iv) and for which none of the categories in 
effect (or that were previously in effect) is appro-
priate. 
"(iii) PERIOD FOR WHICH CATEGORY IS IN EFFECT,— 
A category of medical devices established under clause 
(i) or (ii) shall be in effect for a period of at least 
2 years, but not more than 3 years, that begins— 
"(I) in the case of a category established under 
clause (i), on the first date on which pa3niient 
was made under this paragraph for any device 
described by such category (including payments 
made during the period before April 1, 2001); and 
"(II) in the case of any other category, on 
the first date on which payment is made under 
this paragraph for any medical device that is 
described by such category. 
"(iv) REQUIREMENTS TREATED AS MET.—^A medical 
device shall be treated as meeting the requirements 
of subparagraph (A)(iv), regardless of whether the 
device meets the requirement of subclause (I) of such 
subparagraph, if— 
"(I) the device is described by a category estab-
lished and in effect under clause (i); or 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-505 
"(II) the device is described by a category 
established and in effect under clause (ii) and an 
application under section 515 of the Federal Food, 
Drug, and Cosmetic Act has been approved with 
respect to the device, or the device has been cleared 
for market under section 510(k) of such Act, or 
the device is exempt from the requirements of 
section 510(k) of such Act pursuant to subsection 
(1) or (m) of section 510 of such Act or section 
520(g) of such Act. 
Nothing in this clause shall be construed as requiring 
an application or prior approval (other than that 
described in subclause (II)) in order for a covered device 
described by a category to qualify for payment under 
this paragraph. 
"(C) LIMITED PERIOD OF PAYMENT.— 
"(i) DRUGS AND BIOLOGICALS.—The payment under 
this paragraph with respect to a drug or biological 
shall only apply during a period of at least 2 years, 
but not more than 3 years, that begins— 
"(I) on the first date this subsection is imple-
mented in the case of a drug or biological described 
in clause (i), (ii), or (iii) of subparagraph (A) and 
in the case of a drug or biological described in 
subparagraph (A)(iv) and for which payment under 
this part is made as an outpatient hospital service 
before such first date; or 
"(II) in the case of a drug or biological 
described in subparagraph (A)(iv) not described 
in subclause (I), on the first date on which payment 
is made under this part for the drug or biological 
as an outpatient hospital service, 
"(ii) MEDICAL DEVICES.—Pajnnent shall be made 
under this paragraph with respect to a medical device 
only if such device— 
"(I) is described by a category of medical 
devices established and in effect under subpara-
graph (B); and 
"(II) is provided as part of a service (or group 
of services) paid for under this subsection and 
provided during the period for which such category 
is in effect under such subparagraph.". 
(b) CONFORMING AMENDMENTS.—Section 1833(t) (42 U.S.C. 
13951(t)) is further amended— 
(1) in paragraph (6XA)(iv)(II), by striking "the cost of the 
device, drug, or biological" and inserting "the cost of the drug 
or biological or the average cost of the category of devices"; 
(2) in paragraph (6XD) (as redesignated by subsection 
(a)(1)), by striking "subparagraph (D)(iii)" in the matter preced-
ing clause (i) and inserting "subparagraph (E)(iii)"; and 
(3) in paragraph (12)(E), by striking "additional pa5mfients 
(consistent with paragraph (6)(B))" and inserting "additional 
pa3mients, the determination and deletion of initial and new 
categories (consistent with subparagraphs (B) and (C) of para-
graph (6))" 
(c) EFFECTIVE DATE.—The amendments made by this section 
take effect on the date of the enactment of this Act. 
7&-194 O - 00 - 18: QL 3 Part 5 
114 STAT. 2763A-506 
PUBLIC LAW 106-554—APPENDIX F 
(d) TRANSITION.— 
(1) IN GENERAL.—In the case of a medical device provided 
as part of a service (or group of services) furnished during 
the period before initial categories are implemented under 
subparagraph (B)(i) of section 1833(t)(6) of the Social Security 
Act (as amended by subsection (a)), payment shall be made 
for such device under such section in accordance with the 
provisions in effect before the date of the enactment of this 
Act. In addition, beginning on the date that is 30 days after 
the date of the enactment of this Act, payment shall be made 
for such a device that is not included in a program memoran-
dum described in such subparagraph if the Secretary of Health 
and Human Services determines that the device (including 
a device that would have been included in such program memo-
randa but for the requirement of subparagraph (A)(iv)(I) of 
that section) is likely to be described by such an initial category. 
(2) APPLICATION OF CURRENT PROCESS.—Notwithstanding 
any other provision of law, the Secretary shall continue to 
accept applications with respect to medical devices under the 
process established pursuant to paragraph (6) of section 1833(t) 
of the Social Security Act (as in effect on the day before the 
date of the enactment of this Act) through December 1, 2000, 
and any device— 
(A) with respect to which an application was submitted 
(pursuant to such process) on or before such date; and 
(B) that meets the requirements of clause (ii) or (iv) 
of subparagraph (A) of such paragraph (as determined 
pursuant to such process), 
shall be treated as a device with respect to which an initial 
category is required to be established under subparagraph (B)(i) 
of such paragraph (as amended by subsection (a)(2)). 
SEC. 403. APPLICATION OF OPD PPS TRANSITIONAL CORRIDOR PAY-
MENTS TO CERTAIN HOSPITALS THAT DID NOT SUBMIT 
A1996 COST REPORT. 
(a) 
IN GENERAL.—Section 
1833(t)(7)(F)(ii)(I) 
(42 U.S.C. 
13951(t)(7)(F)(ii)(I)) is amended by inserting "(or in the case of 
a hospital that did not submit a cost report for such period, during 
the first subsequent cost reporting period ending before 2001 for 
which the hospital submitted a cost report)" after "1996". 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
shall take effect as if included in the enactment of BBRA. 
SEC. 404. APPLICATION OF RULES FOR DETERMINING PROVIDER-
BASED STATUS FOR CERTAIN ENTITIES. 
(a) GRANDFATHER.—Notwithstanding any other provision of 
law, effective October 1, 2000, for purposes of provider-based status 
under title XVIII of the Social Security Act— 
(1) any facility or organization that is treated as provider-
based in relation to a hospital or critical access hospital under 
such title as of such date shall continue to be treated as 
provider-based in relation to such hospital or critical access 
hospital under such title until October 1, 2002; sind 
(2) the requirements, limitations, and exclusions specified 
in subsections (d), (e), (f), and (h) of section 413.65 of title 
42, Code of Federal Regulations, shall not apply to such facility 
or organization in relation to such hospital or critical access 
hospital until October 1, 2002. 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-507 
(b) CoNTI^^JING CRITERIA FOR MEETING GEOGRAPHIC LOCATION 
REQUIREMENT.—Except as provided in subsection (a), in making 
determinations of provider-based status on or after October 1, 2000, 
the following rules shall apply: 
(1) The facility or organization shall be treated as satisfying 
any requirements and standards for geographic location in rela-
tion to a hospital or a critical access hospital if the facility 
or organization— 
(A) satisfies the requirements of section 413.65(d)(7) 
of title 42, Code of Federal Regulations; or 
(B) is located not more than 35 miles from the main 
campus of the hospital or critical access hospital. 
(2) The facility or organization shall be treated as satisfying 
any of the requirements and standards for geographic location 
in relation to a hospital or a critical access hospital if the 
facility or organization is owned and operated by a hospital 
or critical access hospital that— 
(A) is owned or operated by a unit of State or local 
, 
government, is a public or private nonprofit corporation 
that is formally granted governmental powers by a unit 
of State or local government, or is a private hospital that 
has a contract with a State or local government that 
includes the operation of clinics located off the main campus 
of the hospital to assure access in a well-defined service 
area to health care services for low-income individuals 
who are not entitled to benefits under title XVIII (or medi-
cal assistance under a State plan under title XIX) of the 
Social Security Act; and 
(B) has a disproportionate share adjustment percentage 
(as determined under section 1886(d)(5)(F) of such Act (42 
U.S.C. 1395ww(d)(5)(F))) greater than 11.75 percent or is 
described in clause (i)(II) of such section. 
(c) TEMPORARY CRITERIA.—^For purposes of title XVIII of the 
Social Security Act, a facility or organization for which a determina-
tion of provider-based status in relation to a hospital or critical 
access hospital is requested on or after October 1, 2000, and before 
October 1, 2002, shall be treated as having provider-based status 
in relation to such a hospital or a critical access hospital for any 
period before a determination is made with respect to such status 
pursuant to such request. 
(d) DEFINITIONS.—For purposes of this section, the terms "hos-
pital" and "critical access hospital" have the meanings given such 
terms in subsections (e) and (mm)(l), respectively, of section 1861 
of the Social Security Act (42 U.S.C. 1395x). 
SEC. 405. TREATMENT OF CHILDREN'S HOSPITALS UNDER PROSPEC-
TIVE PAYMENT SYSTEM. 
(a) IN GENERAL.—Section 1833(t) (42 U.S.C. 13951(t)) is 
amended— 
(1) in the heading of paragraph (7)(D)(ii), by inserting 
"AND CHILDREN'S HOSPITALS" after "CANCER HOSPITALS"; and 
(2) in paragraphs (7)(D)(ii) and (11), by striking "section 
1886(d)(l)(B)(v)" and inserting "clause (iii) or (v) of section 
1886(d)(1)(B)". 
(b) EFFECTIVE DATE.—^The amendments made by subsection 
(a) shall apply as if included in the enactment of section 202 
of BBRA (113 Stat. 150 LA.-342). 
114 STAT. 2763A-508 
PUBLIC LAW 106-554—APPENDIX F 
SEC. 406. INCLUSION OF TEMPERATURE MONITORED CRYOABLATION 
IN TRANSITIONAL PASS-THROUGH FOR CERTAIN MEDI-
CAL DEVICES, DRUGS, AND BIOLOGICALS UNDER OPD 
PPS. 
(a) 
IN 
GENERAL.-^ection 
1833(t)(6)(A)(ii) 
(42 
U.S.C. 
13951(t)(6)(A)(ii)) is amended by inserting "or temperature mon-
itored cryoablation" after "device of brachytherapy". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to devices furnished on or after April 1, 2001. 
Subtitle B—Provisions Relating to 
Physicians' Services 
SEC. 411. GAO STUDIES RELATING TO PHYSICIANS' SERVICES. 
(a) STUDY OF SPECIALIST PHYSICIANS' SERVICES FURNISHED IN 
PHYSICIANS' OFFICES AND HOSPITAL 
OUTPATIENT 
DEPARTMENT 
SERVICES.— 
(1) STUDY.—The Comptroller General of the United States 
shall conduct a study to examine the appropriateness of furnish-
ing in physicians' offices specialist physicians' services (such 
as gastrointestinal endoscopic physicians' services) which are 
ordinarily furnished in hospital outpatient departments. In 
conducting this study, the Comptroller General shall— 
(A) review avEiilable scientific and clinical evidence 
about the safety of performing procedures in physicians' 
offices and hospital outpatient departments; 
(B) assess whether resource-based practice expense rel-
ative values established by the Secretary of Health and 
Human Services under the medicare physician fee schedule 
under section 1848 of the Social Security Act (42 U.S.C. 
1395w-4) for such specialist physicians' services furnished 
in physicians' offices and hospital outpatient departments 
create an incentive to furnish such services in physicians' 
offices instead of hospital outpatient departments; and 
(C) assess the implications for access to care for medi-
care beneficiaries if the medicare program were not to 
cover such services in physicians' offices. 
(2) REPORT.—Not later than July 1, 2001, the Comptroller 
General shall submit to Congress a report on such study and 
include such recommendations as the Comptroller General 
determines to be appropriate. 
(b) STUDY OF THE RESOURCE-BASED PRACTICE EXPENSE SYS-
TEM.— 
(1) STUDY.—The Comptroller General of the United States 
shall conduct a study on the refinements to the practice expense 
relative value iinits during the transition to a resource-based 
practice expense system for physician payments under the 
medicare program under title XVIII of the Social Security Act. 
Such study shall examine how the Secretary of Health and 
Human Services has accepted and used the practice expense 
data submitted under section 212 of BBRA (113 Stat. 150 lA-
350). 
PUBLIC LAW 106-554^APPENDIX F 
114 STAT. 2763A-509 
(2) REPORT.—Not later than July 1, 2001, the Comptroller 
General shall submit to Congress a report on the study con-
ducted under paragraph (1) together with recommendations 
regarding— 
(A) improvements in the process for acceptance and 
use of practice expense data under section 212 of BBRA; 
(B) any change or adjustment that is appropriate to 
ensure full access to a spectrum of care for beneficiaries 
under the medicare program; and 
(C) the appropriateness of payments to physicians. 
SEC. 412. PHYSICIAN GROUP PRACTICE DEMONSTRATION. 
(a) IN GENERAL.—^Title XVIII is amended by inserting after 
section 1866 the following new sections: 
"DEMONSTRATION OF APPLICATION OF PHYSICIAN VOLUME INCREASES 
TO GROUP PRACTICES 
"SEC. 1866A. (a) DEMONSTRATION PROGRAM AUTHORIZED.— 
"(1) IN GENERAL.—The Secretary shall conduct demonstra-
tion projects to test and, if proven effective, expand the use 
of incentives to health care groups participating in the program 
under this title that— 
"(A) encourage coordination of the care furnished to 
individuals under the programs under parts A and B by 
institutional and other providers, practitioners, and suppli-
ers of health care items and services; 
"(B) encourage investment in administrative structures 
and processes to ensure efficient service delivery; and 
"(C) reward physicians for improving health outcomes. 
Such projects shall focus on the efficiencies of furnishing health 
care in a group-practice setting as compared to the efficiencies 
of furnishing health care in other health care delivery systems. 
"(2) ADMINISTRATION BY CONTRACT.—Except as otherwise 
specifically provided, the Secretary may administer the program 
under this section in accordance with section 1866B. 
"(3) DEFINITIONS.—For purposes of this section, terms have 
the following meanings: 
"(A) PHYSICIAN.—Except as the Secretary may other-
wise provide, the term 'physician' means any individual 
who famishes services which may be paid for as physicians' 
services under this title. 
"(B) HEALTH CARE GROUP.—The term 'health care 
group' means a group of physicians (as defined in subpara-
graph (A)) organized at least in part for the purpose of 
providing physicians' services under this title. As the Sec-
retary finds appropriate, a health care group may include 
a hospital and any other individual or entity furnishing 
items or services for which payment may be made under 
this title that is affiliated with the health care group under 
an arrangement structured so that such individual or entity 
participates in a demonstration under this section and 
will share in any bonus earned under subsection (d). 
"(b) ELIGIBILITY CRITERIA.— 
114 STAT. 2763A-510 
PUBLIC LAW 106-554—APPENDIX F 
"(1) IN GENERAL.—The Secretary is authorized to estabUsh 
criteria for health care groups eUgible to participate in a dem-
onstration under this section, including criteria relating to num-
bers of health care professionals in, and of patients served 
by, the group, scope of services provided, and quality of care. 
"(2) PAYMENT METHOD.—^A health care group participating 
in the demonstration under this section shall agree with respect 
to services furnished to beneficiaries within the scope of the 
demonstration (as determined under subsection (c))— 
"(A) to be paid on a fee-for-service basis; and 
"(B) that payment with respect to all such services 
furnished by members of the health care group to such 
beneficiaries shall (where determined appropriate by the 
Secretary) be made to a single entity. 
"(3) DATA REPORTING.—^A health care group participating 
in a demonstration under this section shall report to the Sec-
retary such data, at such times and in such format as the 
Secretary requires, for purposes of monitoring and evaluation 
of the demonstration under this section. 
"(c) PATIENTS WITHIN SCOPE OF DEMONSTRATION.— 
"(1) IN GENERAL.—The Secretary shall specify, in accord-
ance with this subsection, the criteria for identifying those 
patients of a health care group who shall be considered within 
the scope of the demonstration under this section for purposes 
of application of subsection (d) and for assessment of the 
effectiveness of the group in achieving the objectives of this 
section. 
"(2) OTHER CRITERL\.—^The Secretary may establish addi-
tional criteria for inclusion of beneficiaries within a demonstra-
tion under this section, which may include frequency of contact 
with physicians in the group or other factors or criteria that 
the Secretary finds to be appropriate. 
"(3) NOTICE REQUIREMENTS.—In the case of each beneficiary 
determined to be within the scope of a demonstration under 
this section with respect to a specific health care group, the 
Secretary shall ensure that such beneficiary is notified of the 
incentives, and of any waivers of coverage or payment rules, 
applicable to such group under such demonstration. 
"(d) INCENTIVES.— 
"(1) PERFORMANCE TARGET.—The Secretary shall establish 
for each health care group participating in a demonstration 
under this section— 
"(A) a base expenditure amount, equal to the average 
total payments under parts A and B for patients served 
by the health care group on a fee-for-service basis in a 
base period determined by the Secretary; and 
"(B) an Einnual per capita expenditure target for 
patients determined to be within the scope of the dem-
onstration, reflecting the base expenditure amount adjusted 
for risk and expected growth rates. 
"(2) INCENTIVE BONUS.—The Secretary shall pay to each 
participating health care group (subject to paragraph (4)) a 
bonus for each year under the demonstration equal to a portion 
of the medicare savings realized for such year relative to the 
performance target. 
"(3) 
ADDITIONAL 
BONUS FOR PROCESS AND OUTCOME 
IMPROVEMENTS.—^At such time as the Secretary has established 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-511 
appropriate criteria based on evidence the Secretary determines 
to be sufficient, the Secretary shall also pay to a participating 
health care group (subject to paragraph (4)) an additional bonus 
for a year, equal to such portion as the Secretary may designate 
of the saving to the program under this title resulting from 
process improvements made by and patient outcome improve-
ments attributable to activities of the group. 
"(4) LIMITATION.—The Secretary shall limit bonus pay-
ments under this section as necessary to ensure that the aggre-
gate expenditures under this title (inclusive of bonus payments) 
with respect to patients within the scope of the demonstration 
do not exceed the amount which the Secretary estimates would 
be expended if the demonstration projects under this section 
were not implemented. 
'PROVISIONS FOR ADMINISTRATION OF DEMONSTRATION PROGRAM 
"SEC. 1866B. (a) GENERAL ADMINISTRATIVE AUTHORITY.— 
"(1) BENEFICIARY ELIGIBILITY.—Except as otherwise pro-
vided by the Secretary, an individual shall only be eligible 
to receive benefits under the program under section 1866A 
(in this section referred to as the 'demonstration program') 
if such individual— 
"(A) is enrolled under the program under part B and 
entitled to benefits under part A; and 
"(B) is not enrolled in a Medicare+Choice plan under 
part C, an eligible organization under a contract under 
section 1876 (or a similar organization operating under 
a demonstration project authority), an organization with 
an agreement under section 1833(a)(1)(A), or a PACE pro-
gram under section 1894. 
"(2) SECRETARY'S DISCRETION AS TO SCOPE OF PROGRAM.— 
The Secretary may limit the implementation of the demonstra-
tion program to— 
"(A) a geographic area (or areas) that the Secretary 
designates for purposes of the program, based upon such 
criteria as the Secretary finds appropriate; 
"(B) a subgroup (or subgroups) of beneficiaries or 
individuals and entities furnishing items or services (other-
wise eligible to participate in the program), selected on 
the basis of the number of such participants that the Sec-
retary finds consistent with the effective and efficient 
implementation of the program; 
"(C) an element (or elements) of the program that 
the Secretary determines to be suitable for implementation; 
or 
"(D) any combination of any of the limits described 
in subparagraphs (A) through (C). 
"(3) VOLUNTARY RECEIPT OF ITEMS AND SERVICES.—Items 
and services shall be furnished to an individual under the 
demonstration program only at the individual's election. 
"(4) AGREEMENTS.—The Secretary is authorized to enter 
into agreements with individuals and entities to furnish health 
care items and services to beneficiaries under the demonstra-
tion program. 
"(5) 
PROGRAM STANDARDS AND CRITERIA.—The Secretary 
shall establish performance standards for the demonstration 
program including, as applicable, standards for quality of health 
114 STAT. 2763A-512 
PUBLIC LAW 106-554—APPENDIX F 
care items and services, cost-effectiveness, beneficiary satisfac-
tion, and such other factors as the Secretary finds appropriate. 
The eUgibihty of individuals or entities for the initial award, 
continuation, and renewal of agreements to provide health care 
items and services under the program shall be conditioned, 
at a minimum, on performance that meets or exceeds such 
standards. 
"(6) ADMINISTRATIVE REVIEW OF DECISIONS AFFECTING 
INDIVIDUALS AND ENTITIES FURNISHING SERVICES.—An individ-
ual or entity furnishing services under the demonstration pro-
gram shall be entitled to a review by the program administrator 
(or, if the Secretary has not contracted with a program adminis-
trator, by the Secretary) of a decision not to enter into, or 
to terminate, or not to renew, an agreement with the entity 
to provide health care items or services under the program. 
"(7) SECRETARY'S REVIEW OF MARKETING MATERIALS.—An 
agreement with an individual or entity furnishing services 
under the demonstration program shall require the individual 
or entity to guarantee that it will not distribute materials 
that market items or services under the program without the 
Secretary's prior review and approval. 
"(8) PAYMENT IN FULL.— 
"(A) IN GENERAL.—^Except as provided in subparagraph 
(B), an individual or entity receiving payment from the 
Secretary under a contract or agreement under the dem-
onstration program shall agree to accept such payment 
as pajnnent in full, and such payment shall be in lieu 
of any payments to which the individual or entity would 
otherwise be entitled under this title. 
"(B) COLLECTION OF DEDUCTIBLES AND COINSURANCE.— 
Such individual or entity may collect any applicable deduct-
ible or coinsurance amount from a beneficiary. 
"(b) CONTRACTS FOR PROGRAM ADMINISTRATION.— 
"(1) IN GENERAL.—^The Secretary may administer the dem-
onstration program through a contract with a program adminis-
trator in accordance with the provisions of this subsection. 
"(2) SCOPE OF PROGRAM ADMINISTRATOR CONTRACTS.—The 
Secretary may enter into such contracts for a limited geographic 
area, or on a regional or national basis. 
"(3) ELIGIBLE CONTRACTORS.—The Secretary may contract 
for the administration of the program with— 
"(A) an entity that, under a contract under section 
1816 or 1842, determines the amount of and makes pay-
ments for health care items and services furnished under 
this title; or 
"(B) any other entity with substantial experience in 
managing the type of program concerned. 
"(4) CONTRACT AWARD, DURATION, AND RENEWAL.— 
"(A) IN GENERAL.—^A contract under this subsection 
shall be for an initial term of up to three years, renewable 
for additional terms of up to three years. 
"(B) NONCOMPETITIVE AWARD AND RENEWAL FOR ENTI-
TIES ADMINISTERING PART A OR PART B PAYMENTS.—The 
Secretary may enter or renew a contract under this sub-
section with an entity described in paragraph (3)(A) without 
regard to the requirements of section 5 of title 41, United 
States Code. 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-513 
"(5) APPLICABILITY OF FEDERAL ACQUISITION REGULATION.— 
The Federal Acquisition Regulation shall apply to program 
administration contracts under this subsection. 
"(6) PERFORMANCE STANDARDS.—The Secretary shall estab-
lish performance standards for the program administrator 
including, as applicable, standards for the quality and cost-
effectiveness of the program administered, and such other fac-
tors as the Secretary finds appropriate. The eligibility of entities 
for the initial award, continuation, and renewal of program 
administration contracts shall be conditioned, at a minimum, 
on performance that meets or exceeds such standards. 
"(7) FUNCTIONS OF PROGRAM ADMINISTRATOR.—^A program 
administrator shall perform any or all of the following functions, 
as specified by the Secretary: 
"(A) AGREEMENTS WITH ENTITIES FURNISHING HEALTH 
CARE ITEMS AND SERVICES.—Determine the qualifications 
of entities seeking to enter or renew agreements to provide 
services under the demonstration program, and as appro-
priate enter or renew (or refuse to enter or renew) such 
agreements on behalf of the Secretary. 
"(B) 
ESTABLISHMENT OF PAYMENT RATES.—Negotiate 
or otherwise establish, subject to the Secretary's approval, 
payment rates for covered health care items and services. 
"(C) PAYMENT OF CLAIMS OR FEES.—^Administer pay-
ments for health care items or services furnished under 
the program. 
"(D) PAYMENT OF BONUSES.—^Using such guidelines as 
the Secretary shall establish, and subject to the approval 
of the Secretary, make bonus payments as described in 
subsection (c)(2)(A)(ii) to entities furnishing items or serv-
ices for which payment may be made under the program. 
"(E) OVERSIGHT.—^Monitor the compliance of individ-
uals and entities with agreements under the program with 
the conditions of participation. 
"(F) 
ADMINISTRATIVE REVIEW.—Conduct reviews of 
adverse determinations specified in subsection (a)(6). 
"(G) 
REVIEW OF MARKETING MATERIALS.—Conduct a 
review of marketing materials proposed by an entity fur-
nishing services under the program. 
"(H) 
ADDITIONAL FUNCTIONS.—Perform such other 
functions as the Secretary may specify. 
"(8) LIMITATION OF LIABILITY.—The provisions of section 
1157(b) shall apply with respect to activities of contractors 
and their officers, employees, and agents under a contract 
under this subsection. 
"(9) INFORMATION SHARING.—Notwithstanding section 1106 
and section 552a of title 5, United States Code, the Secretary 
is authorized to disclose to an entity with a program administra-
tion contract under this subsection such information (including 
medical information) on individuals receiving health care items 
and services under the program as the entity may require 
to carry out its responsibilities under the contract. 
"(c) RULES APPLICABLE TO BOTH PROGRAM AGREEMENTS AND 
PROGRAM ADMINISTRATION CONTRACTS.— 
"(1) 
RECORDS, REPORTS, AND AUDITS.—The Secretary is 
authorized to require entities with agreements to provide health 
care items or services under the demonstration program, and 
114 STAT. 2763A-514 
PUBLIC LAW 106-554—APPENDIX F 
entities with program administration contracts under sub-
section (b), to maintain adequate records, to afford the Secretary 
access to such records (including for audit purposes), and to 
furnish such reports and other materials (including audited 
financial statements and performance data) as the Secretary 
may require for purposes of implementation, oversight, and 
evaluation of the program and of individuals' and entities' 
effectiveness in performance of such agreements or contracts. 
"(2) BONUSES.—Notwithstanding any other provision of 
law, but subject to subparagraph (B)(ii), the Secretary may 
maijie bonus payments under the demonstration program from 
the Federal Health Insurance Trust Fund and the Federal 
Supplementary Medical Insurance Trust Fund in amounts that 
do not exceed the amounts authorized under the program in 
accordance with the following: 
"(A) 
PAYMENTS TO PROGRAM ADMINISTRATORS.—The 
Secretary may make bonus payments under the program 
to program administrators. 
"(B) PAYMENTS TO ENTITIES FURNISHING SERVICES.— 
"(i) IN GENERAL.—Subject to clause (ii), the Sec-
retary may make bonus payments to individuals or 
entities furnishing items or services for which payment 
may be made under the demonstration program, or 
may authorize the program administrator to make such 
bonus payments in accordance with such guidelines 
as the Secretary shall establish and subject to the 
Secretar^s approval. 
"(ii) LIMITATIONS.—The Secretary may condition 
such payments on the achievement of such standards 
related to efficiency, improvement in processes or out-
comes of care, or such other factors as the Secretary 
determines to be appropriate. 
"(3) ANTIDISCRIMINATION LIMITATION.—The Secretary shall 
not enter into an agreement with an entity to provide health 
care items or services under the demonstration program, or 
with an entity to administer the program, unless such entity 
guarantees that it will not deny, limit, or condition the coverage 
or provision of benefits under the program, for individuals 
eligible to be enrolled under such program, based on any health 
status-related factor described in section 2'702(a)(l) of the Public 
Health Service Act. 
"(d) LIMITATIONS ON JUDICIAL REVIEW.—The following actions 
and determinations with respect to the demonstration program 
shall not be subject to review by a judicial or administrative tribu-
nal: 
"(1) Limiting the implementation of the program under 
subsection (a)(2). 
"(2) Establishment of program participation standards 
under subsection (a)(5) or the denial or termination of, or 
refusal to renew, an agreement with an entity to provide health 
care items and services under the program. 
"(3) Establishment of program administration contract 
performance standards under subsection (b)(6), the refusal to 
renew a program administration contract, or the noncompetitive 
award or renewal of a program administration contract under 
subsection (b)(4)(B). 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-515 
"(4) Establishment of payment rates, through negotiation 
or otherwise, under a program agreement or a program 
administration contract. 
"(5) A determination with respect to the program (where 
specifically authorized by the program authority or by sub-
section (c)(2))— 
"(A) as to whether cost savings have been achieved, 
and the amount of savings; or 
"(B) as to whether, to whom, and in what amounts 
bonuses will be paid. 
"(e) APPLICATION LIMITED TO PARTS A AND B.—None of the 
provisions of this section or of the demonstration program shall 
apply to the programs under part C. 
"(f) REPORTS TO CONGRESS.—^Not later than two years after 
the date of the enactment of this section, and biennially thereafter 
for six years, the Secretary shall report to Congress on the use 
of authorities under the demonstration program. Each report shall 
address the impact of the use of those authorities on expenditures, 
access, and quality under the programs under this title.". 
(b) GAG REPORT.—Not later than 2 years after the date on 
which the demonstration project under section 1866A of the Social 
Security Act, as added by subsection (a), is implemented, the 
Comptroller General of the United States shall submit to Congress 
a report on such demonstration project. The report shall include 
such recommendations with respect to changes to the demonstration 
project that the Comptroller General determines appropriate. 
SEC. 413. STUDY ON ENROLLMENT PROCEDURES FOR GROUPS THAT 
RETAIN INDEPENDENT CONTRACTOR PHYSICIANS. 
(a) IN GENERAL.—The Comptroller General of the United States 
shall conduct a study of the current medicare enrollment process 
for groups that retain independent contractor physicians with 
particular emphasis on hospital-based physicians, such as emer-
gency department staffing groups. In conducting the evaluation, 
the Comptroller General shall consult with groups that retain 
independent contractor physicians and shall— 
(1) review the issuance of individual medicare provider 
numbers 
and 
the 
possible 
medicare 
program 
integrity 
vulnerabilities of the current process; 
(2) review direct and indirect costs associated with the 
current process incurred by the medicare program and groups 
that retain independent contractor physicians; 
(3) assess the effect on program integrity by the enrollment 
of groups that retain independent contractor hospital-based 
physicians; and 
(4) develop suggested procedures for the enrollment of these 
groups. 
(b) REPORT.—Not later than 1 year after the date of the enact-
ment of this Act, the Comptroller General shall submit to Congress 
a report on the study conducted under subsection (a). 
114 STAT. 2763A-516 
PUBLIC LAW 106-554—APPENDIX F 
Subtitle C—Other Services 
SEC. 421. ONE-YEAR EXTENSION OF MORATORIUM ON THERAPY CAPS; 
REPORT ON STANDARDS FOR SUPERVISION OF PHYSICAL 
THERAPY ASSISTANTS. 
(a) IN GENERAL.—Section 1833(g)(4) (42 U.S.C. 13951(g)(4)) is 
amended by striking "2000 and 2001." and inserting "2000, 2001, 
and 2002.". 
(b) CONFORMING AMENDMENT TO CONTINUE FOCUSED MEDICAL 
REVIEWS 
OF CLAIMS 
DURING 
MORATORIUM PERIOD.—Section 
221(a)(2) of BBRA (113 Stat. 1501^-351) is amended by striking 
"(under the amendment made by paragraph (1)(B))". 
(c) STUDY ON STANDARDS FOR SUPERVISION OF PHYSICAL THERA-
PIST ASSISTANTS.— 
(1) STUDY.—^The Secretary of Health and Human Services 
shall conduct a study of the implications— 
(A) of eliminating the "in the room" supervision 
requirement for medicare payment for services of physical 
therapy assistants who are supervised by physical thera-
pists; and 
(B) of such requirement on the cap imposed under 
section 1833(g) of the Social Security Act (42 U.S.C. 
13951(g)) on physical therapy services. 
(2) REPORT.—Not later than 18 months after the date of 
the enactment of this Act, the Secretary shall submit to Con-
gress a report on the study conducted under paragraph (1). 
SEC. 422. UPDATE IN RENAL DIALYSIS COMPOSITE RATE. 
(a) UPDATE.— 
(1) IN GENERAL.—The last sentence of section 1881(b)(7) 
(42 U.S.C. 1395rr(b)(7)) is amended by striking "for such serv-
ices furnished on or after Jginuary 1, 2001, by 1.2 percent" 
and inserting "for such services furnished on or after January 
1, 2001, by 2.4 percent". 
(2) PROHIBITION ON EXCEPTIONS.— 
(A) IN GENERAL.—Subject to subparagraphs (B) and 
(C), the Secretary of Health and Human Services may 
not provide for an exception under section 1881(b)(7) of 
the Social Security Act (42 U.S.C. 1395rr(b)(7)) on or after 
December 31, 2000. 
(B) DEADLINE FOR NEW APPLICATIONS.—In the case 
of a facility that during 2000 did not file for an exception 
rate under such section, the facility may submit an applica-
tion for an exception rate by not later than July 1, 2001. 
(C) PROTECTION OF APPROVED EXCEPTION RATES.—^Any 
exception rate under such section in effect on December 
31, 2000 (or, in the case of an application under subpara-
graph (B), as approved imder such application) shall con-
tinue in effect so long as such rate is greater than the 
composite rate as updated by the amendment made by 
paragraph (1). 
(b) DEVELOPMENT OF E S R D MARKET BASKET.— 
(1) DEVELOPMENT.—^The Secretary of Health and Human 
Services shall collect data and develop an ESRD market basket 
whereby the Secretary can estimate, before the beginning of 
a year, the percentage by which the costs for the year of 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-517 
the mix of labor and nonlabor goods and services included 
in the ESRD composite rate under section 1881(b)(7) of the 
Social Security Act (42 U.S.C. 1395rr(b)(7)) will exceed the 
costs of such mix of goods and services for the preceding year. 
In developing such index, the Secretary may take into account 
measures of changes in— 
(A) technology used in furnishing dialysis services; 
(B) the manner or method of furnishing dialysis serv-
ices; and 
(C) the amounts by which the payments under such 
section for all services billed by a facility for a year exceed 
the aggregate allowable audited costs of such services for 
such facility for such year. 
(2) REPORT.—The Secretary of Health and Human Services 
shall submit to Congress a report on the index developed under 
paragraph (1) no later than July 1, 2002, and shall include 
in the report recommendations on the appropriateness of an 
annual or periodic update mechanism for renal dialysis services 
under the medicare program under title XVIII of the Social 
Security Act based on such index. 
(c) INCLUSION OF ADDITIONAL SERVICES IN COMPOSITE RATE.— 
(1) DEVELOPMENT.—^The Secretary of Health and Human 
Services shall develop a system which includes, to the maximum 
extent feasible, in the composite rate used for payment under 
section 1881(b)(7) of the Social Security Act (42 U.S.C. 
1395rr(b)(7)), payment for clinical diagnostic laboratory tests 
and drugs (including drugs paid under section 1881(b)(ll)(B) 
of such Act (42 U.S.C. 1395rr(b)(ll)(B)) that are routinely used 
in furnishing dialysis services to medicare beneficiaries but 
which are currently separately billable by renal dialysis facili-
ties. 
(2) REPORT.—The Secretary shall include, as part of the 
report submitted under subsection (b)(2), a report on the system 
developed under paragraph (1) and recommendations on the 
appropriateness of incorporating the system into medicare pay-
ment for renal dialysis services. 
(d) GAO STUDY ON ACCESS TO SERVICES.— 
(1) STUDY.—The Comptroller General of the United States 
shall study access of medicare beneficiaries to renal dialysis 
services. Such study shall include whether there is a sufficient 
supply of facilities to furnish needed renal dialysis services, 
whether medicare payment levels are appropriate, taking into 
account audited costs of facilities for all services furnished, 
to ensure continued access to such services, and improvements 
in access (and quality of care) that may result in the increased 
use of long nightly and short daily hemodialysis modalities. 
(2) REPORT.—Not later than January 1, 2003, the Comptrol-
ler General shall submit to Congress a report on the study 
conducted under paragraph (1). 
(e) SPECLVL RULE FOR PAYMENT FOR 2001.—^Notwithstanding 
the amendment made by subsection (a)(1), for purposes of making 
pajmients under section 1881(b) of the Social Security Act (42 
U.S.C. 1395rr(b)) for dialysis services furnished during 2001, the 
composite rate pajonent under paragraph (7) of such section— 
(1) for services furnished on or after January 1, 2001, 
and before April 1, 2001, shall be the composite rate payment 
114 STAT. 2763A-518 
PUBLIC LAW 106-554—APPENDIX F 
determined under the provisions of law in effect on the day 
before the date of the enactment of this Act; and 
(2) for services furnished on or after April 1, 2001, and 
before January 1, 2002, shall be the composite rate payment 
(as determined taking into account the amendment made by 
subsection (a)(1)) increased by a transitional percentage allow-
ance equal to 0.39 percent (to account for the timing of 
implementation of the CPI update). 
SEC. 423. PAYMENT FOR AMBULANCE SERVICES. 
(a) RESTORATION OF FULL CPI INCREASE FOR 2001.— 
(1) IN GENERAL.—Section 1834(1)(3) (42 U.S.C. 1395m(l)(3)) 
is amended by striking "reduced in the case of 2001 and 2002" 
each place it appears and inserting "reduced in the case of 
2002". 
(2) SPEcmL RULE FOR PAYMENT FOR 2001.—Notwithstanding 
the amendment made by paragraph (1), for purposes of making 
payments for ambulance services under part B of title XVIII 
of the Social Security Act, for services furnished during 2001, 
the "percentage increase in the consumer price index" specified 
in section 1834(1)(3)(B) of such Act (42 U.S.C. 1395m(l)(3)(B))— 
(A) for services furnished on or after January 1, 2001, 
and before July 1, 2001, shall be the percentage increase 
for 2001 as determined under the provisions of law in 
effect on the day before the date of the enactment of this 
Act; and 
(B) for services furnished on or after July 1, 2001, 
and before Jsuiuary 1, 2002, shall be equal to 4.7 percent. 
(b) MILEAGE PAYMENTS.— 
(1) 
IN GENERAL.—Section 
1834(1)(2)(E) 
(42 U.S.C. 
1395m(l)(2)(E)) is amended by inserting before the period at 
the end the following: ", except that such phase-in shall provide 
for full payment of any national mileage rate for ambulance 
services provided by suppliers that are paid by carriers in 
any of the 50 States where payment by a carrier for such 
services for all such suppliers in such State did not, prior 
to the implementation of the fee schedule, include a separate 
amount for all mileage within the county from which the bene-
ficiary is transported". 
(2) EFFECTIVE DATE.—^The amendment made by paragraph 
(1) shall apply to services furnished on or after July 1, 2001. 
SEC. 424. AMBULATORY SURGICAL CENTERS. 
(a) DELAY IN IMPLEMENTATION OF PROSPECTIVE PAYMENT SYS-
TEM.—^The Secretary of Health and Human Services may not imple-
ment a revised prospective payment system for services of ambula-
tory surgical facilities under section 1833(i) of the Social Security 
Act (42 U.S.C. 13951(i)) before January 1, 2002. 
(b) EXTENDING PHASE-IN TO 4 YEARS.—Section 226 of the BBRA 
(113 Stat. 1501A-354) is amended by striking paragraphs (1) and 
(2) and inserting the following: 
"(1) in the first year of its implementation, only a proportion 
(specified by the Secretary and not to exceed one-fourth) of 
the payment for such services shall be made in accordance 
with such system and the remainder shall be made in accord-
ance with current regulations; and 
"(2) in each of the following 2 years a proportion (specified 
by the Secretary and not to exceed one-half and three-fourths. 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-519 
respectively) of the payment for such services shall be made 
under such system and the remainder shall be made in accord-
ance with current regulations.". 
(c) DEADLINE FOR USE OF 1999 
OR LATER COST SURVEYS.— 
Section 226 of BBRA (113 Stat. 1501A-354) is amended by adding 
at the end the following: 
"By not later than January 1, 2003, the Secretary shall incorporate 
data from a 1999 medicare cost survey or a subsequent cost survey 
for purposes of implementing or revising such system.". 
SEC. 
425. 
FULL 
UPDATE 
FOR 
DURABLE 
MEDICAL 
EQUIPMENT. 
(a) IN GENERAL.—Section 1834(a)(14) (42 U.S.C. 1395m(a)(14)) 
is amended— 
(1) by redesignating subparagraph (D) as subparagraph 
(F); 
(2) in subparagraph (C)— 
(A) by striking "through 2002" and inserting "through 
2000"; and 
(B) by striking "and" at the end; and 
(3) by inserting after subparagraph (C) the following new 
subparagraphs: 
"(D) for 2001, the percentage increase in the consumer 
price index for all urban consumers (U.S. city average) 
for the 12-month period ending with June 2000; 
"(E) for 2002, 0 percentage points; and". 
(b) SPECIAL RULE FOR PAYMENT FOR 2001.—^Notwithstanding 
the amendments made by subsection (a), for purposes of making 
pa5nnents for durable medical equipment under section 1834(a) 
of the Social Security Act (42 U.S.C. 1395m(a)), other than for 
oxygen and oxygen equipment specified in paragraph (9) of such 
section, the pa3nnent basis recognized for 2001 under such section— 
(1) for items furnished on or after January 1, 2001, and 
before July 1, 2001, shall be the payment basis for 2001 as 
determined under the provisions of law in effect on the day 
before the date of the enactment of this Act (including the 
application of section 228(a)(1) of BBRA); £ind 
(2) for items furnished on or after July 1, 2001, and before 
January 1, 2002, shall be the payment basis that is determined 
under such section 1834(a) if such section 228(a)(1) did not 
apply and taking into account the amendment made by sub-
section (a), increased by a transitional percentage allowance 
equal to 3.28 percent (to account for the timing of implementa-
tion of the CPI update). 
SEC. 
426. 
FULL 
UPDATE 
FOR 
ORTHOTICS 
AND 
PROSTHETICS. 
(a) 
IN 
GENERAL.—Section 
1834(h)(4XA) 
(42 
U.S.C. 
1395m(h)(4)(A)) is amended— 
(1) by redesignating clause (vi) as clause (viii); 
(2) in clause (v)— 
(A) by striking "through 2002" and inserting "through 
2000"; and 
(B) by striking "and" at the end; and 
(3) by inserting after clause (v) the following new clause: 
"(vi) for 2001, the percentage increase in the con-
sumer price index for all urban consumers (U.S. city 
average) for the 12-month period ending with June 
2000; 
"(vii) for 2002, 1 percent; and". 
114 STAT. 2763A-520 
PUBLIC LAW 106-554—APPENDIX F 
(b) SPECIAL RULE FOR PAYMENT FOR 2001.—Notwithstanding 
the amendments made by subsection (a), for purposes of making 
payments for prosthetic devices and orthotics and prosthetics (as 
defined in subparagraphs (B) and (C) of paragraph (4) of section 
1834(h) of the Social Security Act (42 U.S.C. 1395m(h)) under 
such section, the payment basis recognized for 2001 under para-
graph (2) of such section— 
(1) for items furnished on or after January 1, 2001, and 
before July 1, 2001, shall be the payment basis for 2001 as 
determined under the provisions of law in effect on the day 
before the date of the enactment of this Act; and 
(2) for items furnished on or after July 1, 2001, and before 
January 1, 2002, shall be the pa3mnent basis that is determined 
under such section taking into account the amendments made 
by subsection (a), increased by a transitional percentage allow-
ance equal to 2.6 percent (to account for the timing of 
implementation of the CPI update). 
SEC. 427. ESTABLISHMENT OF SPECIAL PAYMENT PROVISIONS AND 
REQUIREMENTS FOR PROSTHETICS AND CERTAIN CUS-
TOM-FABRICATED ORTHOTIC ITEMS. 
(a) IN GENERAL.—Section 1834(h)(1) (42 U.S.C. 1395m(h)(l)) 
is amended by adding at the end the following: 
"(F) SPECIAL PAYMENT RULES FOR CERTAIN PROSTHETICS 
AND CUSTOM-FABRICATED ORTHOTICS.— 
"(i) IN GENERAL.—No payment shall be made under 
this subsection for an item of custom-fabricated 
orthotics described in clause (ii) or for an item of 
prosthetics unless such item is— 
"(I) furnished by a qualified practitioner; and 
"(II) fabricated by a qualified practitioner or 
a qualified supplier at a facility that meets such 
criteria as the Secretary determines appropriate, 
"(ii) DESCRIPTION OF CUSTOM-FABRICATED ITEM.— 
"(I) IN GENERAL.—An item described in this 
clause is an item of custom-fabricated orthotics 
that requires education, training, and experience 
to custom-fabricate and that is included in a list 
established by the Secretary in subclause (II). Such 
an item does not include shoes and shoe inserts. 
"(II) LIST OF ITEMS.—^The Secretary, in con-
sultation with appropriate experts in orthotics 
(including national 
organizations 
representing 
manufacturers of orthotics), shall establish and 
update as appropriate a list of items to which 
this subparagraph applies. No item may be 
included in such list unless the item is individually 
fabricated for the patient over a positive model 
of the patient. 
"(iii) QUALIFIED PRACTITIONER DEFINED.—In this 
subparagraph, the term 'qualified practitioner* means 
a physician or other individual who— 
"(I) is a qualified physiceJ therapist or a quali-
fied occupational therapist; 
"(II) in the case of a State that provides for 
the licensing of orthotics and prosthetics, is 
PUBLIC LAW 106-554^APPENDIX F 
114 STAT. 2763A-521 
licensed in orthotics or prosthetics by the State 
in which the item is suppUed; or 
"(III) in the case of a State that does not 
provide for the Ucensing of orthotics and prosthet-
ics, is specifically trsiined and educated to provide 
or manage the provision of prosthetics and custom-
designed or -fabricated orthotics, and is certified 
by the American 
Board for Certification 
in 
Orthotics and Prosthetics, Inc. or by the Board 
for 
Orthotist/Prosthetist 
Certification, 
or 
is 
credentialed and approved by a program that the 
Secretary determines, in consultation with appro-
priate experts in orthotics and prosthetics, has 
training and education standards that are nec-
essary to provide such prosthetics and orthotics. 
"(iv) 
QUALIFIED 
SUPPLIER 
DEFINED.—In 
this 
subparagraph, the term 'qualified supplier* means any 
entity that is accredited by the American Board for 
Certification in Orthotics and Prosthetics, Inc. or by 
the Board for Orthotist/Prosthetist Certification, or 
accredited and approved by a program that the Sec-
retary determines has accreditation and approval 
standards that are essentially equivalent to those of 
such Board.". 
(b) EFFECTIVE DATE.—Not later than 1 year after the date 
of the enactment of this Act, the Secretary of Health and Human 
Services shall promulgate revised regulations to carry out the 
amendment made by subsection (a) using a negotiated rulemaking 
process under subchapter III of chapter 5 of title 5, United States 
Code. 
(c) GAO STUDY AND REPORT.— 
Jl) STUDY.—The Comptroller General of the United States 
shall conduct a study on HCFA Ruling 96-1, issued on Septem-
ber 1, 1996, with respect to distinguishing orthotics from dura-
ble medical equipment luider the medicare program under title 
XVIII of the Social Security Act. The study shall assess the 
following matters: 
(A) The compliance of the Secretary of Health and 
Human Services with the Administrative Procedures Act 
(under chapter 5 of title 5, United States Code) in making 
such ruling. 
(B) The potential impact of such ruling on the health 
care furnished to medicare beneficiaries under the medicare 
program, especially those beneficiaries with degenerative 
musculoskeletal conditions. 
(C) The potential for fraud and abuse under the medi-
care progr£im if payment were provided for orthotics used 
as a component of durable medical equipment only when 
made under the special payment provision for certain 
prosthetics and custom-fabricated orthotics under section 
1834(h)(1)(F) of the Social Security Act, as added by sub-
section (a) and furnished by qualified practitioners under 
that section. 
(D) The impact on payments under titles XVIII and 
XIX of the Social Security Act if such ruling were over-
turned. 
114 STAT. 2763A-522 
PUBLIC LAW 106-554—APPENDIX F 
(2) REPORT.—^Not later than 6 months after the date of 
the enactment of this Act, the Comptroller General shall submit 
to Congress a report on the study conducted under paragraph 
(1). 
SEC. 428. REPLACEMENT OF PROSTHETIC DEVICES AND PARTS. 
(a) IN GENERAL.—Section 1834(h)(1) (42 U.S.C. 1395m(h)(l)), 
as amended by section 427(a), is ftirther amended by adding at 
the end the following new subparagraph: 
"(G) 
REPLACEMENT 
OF 
PROSTHETIC 
DEVICES AND 
PARTS.— 
"(i) IN GENERAL.—^Pa5nnent shall be made for the 
replacement of prosthetic devices which are artificial 
limbs, or for the replacement of any part of such 
devices, without regard to continuous use or useful 
lifetime restrictions if an ordering physician deter-
mines that the provision of a replacement device, or 
a replacement part of such a device, is necessary 
because of any of the following: 
"(I) A change in the physiological condition 
of the patient. 
"(II) An irreparable change in the condition 
of the device, or in a part of the device. 
"(Ill) The condition of the device, or the part 
of the device, requires repairs and the cost of such 
repairs would be more than 60 percent of the 
cost of a replacement device, or, as the case may 
^e, of the part being replaced. 
(ii) CONFIRMATION MAY BE REQUIRED IF DEVICE 
OR PART BEING REPLACED IS LESS THAN 3 YEARS OLD.— 
If a physician determines that a replacement device, 
or a replacement part, is necessary pursuant to clause 
(i>-
"(I) such determination shall be controlling; 
and 
J 
"(II) such replacement device or part shall be 
deemed to be reasonable and necessary for pur-
poses of section 1862(a)(lXA); 
except that if the device, or part, being replaced is 
less than 3 years old (calculated from the date on 
which the beneficiary began to use the device or part), 
the Secretary may also require confirmation of neces-
sity of the replacement device or replacement part, 
as the case may be.". 
(b) 
PREEMPTION 
OF 
RULE.—The 
provisions 
of 
section 
1834(h)(1)(G) as added by subsection (a) shall supersede any rule 
that as of the date of the enactment of this Act may have applied 
a 5-year replacement rule with regard to prosthetic devices. 
(c) EFFECTIVE DATE.—^The amendment made by subsection (a) 
shall apply to items replaced on or after April 1, 2001. 
SEC. 429. REVISED PART B PAYMENT FOR DRUGS AND BIOLOGICALS 
AND RELATED SERVICES. 
(a) RECOMMENDATIONS FOR REVISED PAYMENT METHODOLOGY 
FOR DRUGS AND BIOLOGICALS.— 
(1) STUDY.— 
(A) IN GENERAL.—^The Comptroller General of the 
United States shall conduct a study on the reimbursement 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-523 
for drugs and biologicals under the current medicare pay-
ment methodology (provided under section 1842(o) of the 
Social Security Act (42 U.S.C. 1395u(o))) and for related 
services under part B of title XVIII of such Act. In the 
study, the Comptroller General shall— 
(i) identify the average prices at which such drugs 
and biologicals are acquired by physicians and other 
suppliers; 
(ii) quantify the difference between such average 
prices and the reimbursement amount under such sec-
tion; and 
(iii) determine the extent to which (if any) payment 
under such part is adequate to compensate physicians, 
providers of services, or other suppliers of such drugs 
and biologicals for costs incurred in the administration, 
handling, or storage of such drugs or biologicals. 
(B) CONSULTATION.—In conducting the study under 
subparagraph (A), the Comptroller Greneral shall consult 
with physicians, providers of services, and suppliers of 
drugs and biologicals under the medicare program under 
title XVIII of such Act, as well as other organizations 
involved in the distribution of such drugs and biologicals 
to such physicians, providers of services, and suppliers. 
(2) REPORT.—Not later than 9 months after the date of 
the enactment of this Act, the Comptroller General shall submit 
to Congress and to the Secretary of Health and Human Services 
a report on the study conducted under this subsection, and 
shall include in such report recommendations for revised pay-
ment methodologies described in paragraph (3). 
(3) RECOMMENDATIONS FOR REVISED PAYMENT METHODOLO-
GIES.— 
(A) IN GENERAL.—The Comptroller General shall pro-
vide specific recommendations for revised pa3anent meth-
odologies for reimbursement for drugs and biologicals and 
for related services under the medicare program. The 
Comptroller 
General 
may 
include 
in 
the 
recommendations— 
(i) proposals to make adjustments under subsection 
(c) of section 1848 of the Social Security Act (42 U.S.C. 
1395w-4) for the practice expense component of the 
physician fee schedule under such section for the costs 
incurred in the administration, handling, or storage 
of certain categories of such drugs and biologicals, if 
appropriate; and 
(ii) proposals for new pa3mnents to providers of 
services or suppliers for such costs, if appropriate. 
(B) ENSURING PATIENT ACCESS TO CARE.—In making 
recommendations under this paragraph, the Comptroller 
General shall ensure that any proposed revised payment 
methodology is designed to ensure that medicare bene-
ficiaries continue to have appropriate access to health care 
services under the medicare program. 
(C) MATTERS CONSIDERED.—In making recommenda-
tions under this paragraph, the Comptroller General shall 
consider— 
114 STAT. 2763A-524 
PUBLIC LAW 106-554—APPENDIX F 
(i) the method and amount of reimbursement for 
similar drugs and biologicals made by large group 
health plans; 
(ii) as a result of any revised payment methodol-
ogy, the potential for patients to receive inpatient or 
outpatient hospital services in lieu of services in a 
physician's office; and 
(iii) the effect of any revised pajonent methodology 
on the delivery of drug therapies by hospital outpatient 
departments. 
(D) COORDINATION WITH BBRA STUDY.—In making rec-
ommendations under this paragraph, the Comptroller Gen-
eral shall conclude and take into account the results of 
the study provided for under section 213(a) of BBRA (113 
Stat. 1501A-350). 
(b) IMPLEMENTATION OF NEW PAYMENT METHODOLOGY.— 
(1) IN GENERAL.—^Notwithstanding any other provision of 
law, based on the recommendations contained in the report 
under subsection (a), the Secretary of Health and Human Serv-
ices, subject to paragraph (2), shall revise the payment meth-
odology under section 1842(o) of the Social Security Act (42 
U.S.C. 1395u(o)) for drugs and biologicals furnished under part 
B of the medicare program. To the extent the Secretary deter-
mines appropriate, the Secretary may provide for the adjust-
ments to payments amounts referred to in subsection (a)(3)(A)(i) 
or additional payments referred to in subsection (a)(2)(A)(ii). 
(2) LIMITATION.—In revising the pa3mient methodology 
under paragraph (1), in no case may the estimated aggregate 
payments for drugs and biologicals under the revised system 
(including additional payments referred to in subsection 
(a)(3)(A)(ii)) exceed the aggregate amount of pajmnent for such 
drugs and biologicals, as projected by the Secretary, that would 
have been made under the payment methodology in effect under 
such section 1842(o). 
(c) MORATORIUM ON DECREASES IN PAYMENT RATES.—^Notwith-
standing any other provision of law, effective for drugs and 
biologicals furnished on or after January 1, 2001, the Secretary 
may not directly or indirectly decrease the rates of reimbursement 
(in effect as of such date) for drugs and biologicals under the 
current medicare payment methodology (provided under section 
1842(o) of the Social Security Act (42 U.S.C. 1395u(o))) until such 
time as the Secretary has reviewed the report submitted under 
subsection (a)(2). 
SEC. 430. CONTRAST ENHANCED DIAGNOSTIC PROCEDURES UNDER 
HOSPITAL PROSPECTIVE PAYMENT SYSTEM. 
(a) SEPARATE CLASSIFICATION.—Section 1833(t)(2) (42 U.S.C. 
13951(t)(2)) is amended— 
(1) by striking "and" at the end of subparagraph (E); 
(2) by striking the period at the end of subparagraph (F) 
and inserting "; and"; and 
(3) by inserting after subparagraph (F) the following new 
subparagraph: 
"(G) the Secretary shall create additional groups of 
covered OPD services that classify separately those proce-
dures that utilize contrast agents from those that do not.". 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-525 
(b) CONFORMING AMENDMENT,—Section 1861(t)(l) (42 U.S.C. 
1395x(t)(l)) is amended by inserting "(including contrast agents)" 
after "only such drugs". 
(c) EFFECTIVE DATE.—^The amendments made by this section 
apply to items and services furnished on or after July 1, 2001. 
SEC. 431. QUALIFICATIONS FOR COMMUNITY MENTAL HEALTH CEN-
TERS. 
(a) MEDICARE PROGRAM.—Section 1861(ff)(3)(B) (42 U.S.C. 
1395x(fF)(3)(B)) is amended by striking "entity" and all that follows 
and inserting the following: "entity that— 
"(i)(I) provides the mental health services described in sec-
tion 1913(c)(1) of the Public Health Service Act; or 
"(II) in the case of an entity operating in a State that 
by law precludes the entity from providing itself the service 
described in subparagraph (E) of such section, provides for 
such service by contract with an approved organization or entity 
(as determined by the Secretary); 
"(ii) meets applicable licensing or certification requirements 
for community mental health centers in the State in which 
it is located; and 
"(iii) meets such additional conditions as the Secretary 
shall specify to ensure (I) the health and safety of individuals 
being furnished such services, (II) the effective and efficient 
furnishing of such services, and (III) the compliance of such 
entity with the criteria described in section 1931(c)(1) of the 
Public Health Service Act.". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply with respect to community mental health centers with 
respect to services furnished on or after the first day of the third 
month beginning after the date of the enactment of this Act. 
SEC. 432. PAYMENT OF PHYSICIAN AND NONPHYSICIAN SERVICES IN 
CERTAIN INDIAN PROVIDERS. 
(a) IN GENERAL.—Section 1880 (42 U.S.C. 1395qq) is amended— 
(1) by redesignating subsection (e), as added by section 
3(b)(1) of the Alaska Native and American Indian Direct 
Reimbursement Act of 2000 (Public Law 106-417), as sub-
section (f); and 
(2) by inserting after subsection (d) the following new sub-
section: 
"(e)(1)(A) Notwithstanding section 1835(d), subject to subpara-
graph (B), the Secretary shall make payment under part B to 
a hospital or an ambulatory care clinic (whether provider-based 
or freestanding) that is operated by the Indian Health Service 
or by an Indian tribe or tribal organization (as defined for purposes 
of subsection (a)) for services described in paragraph (2) furnished 
in or at the direction of the hospital or clinic under the same 
situations, terms, and conditions as would apply if the services 
were furnished in or at the direction of such a hospital or clinic 
that was not operated by such Service, tribe, or organization. 
"(B) Payment shall not be made for services under subpara-
graph (A) to the extent that payment is otherwise made for such 
services under this title. 
"(2) The services described in this paragraph are the following: 
"(A) Services for which payment is made under section 
1848. 
114 STAT. 2763A-526 
PUBLIC LAW 106-554—APPENDIX F 
"(B) Services furnished by a practitioner described in sec-
tion 1842(b)(18)(C) for which payment under part B is made 
under a fee schedule. 
"(C) Services furnished by a physical therapist or occupa-
tional therapist as described in section 186 l(p) for which pay-
ment under part B is made under a fee schedule. 
"(3) Subsection (c) shall not apply to payments made under 
this subsection.". 
(b) CONFORMING AMENDMENTS.— 
(1) COVERAGE AMENDMENT.—Section 1862(a)(3) (42 U.S.C. 
1395y(a)(3)) is amended— 
(A) by striking the second comma after "1861(aa)(l)"; 
and 
(B) by inserting "in the case of services for which 
payment may be made under section 1880(e)," after "as 
defined in section 1861(aa)(3),". 
(2) DIRECT PAYMENT AMENDMENT.—^The first sentence of 
section 1842(b)(6) (42 U.S.C. 1395u(b)(6)) is amended— 
(A) by striking "and (F)" and inserting "(F)"; and 
(B) by inserting before the period the following: ", 
and (G) in the case of services in a hospital or clinic 
to which section 1880(e) applies, pajnnent shall be made 
to such hospital or clinic". 
(c) EFFECTIVE DATE.—^The amendments made by this section 
shall apply to services furnished on or after July 1, 2001. 
SEC. 433. GAG STUDY ON COVERAGE OF SURGICAL FIRST ASSISTING 
SERVICES OF CERTIFIED REGISTERED NURSE FIRST 
ASSISTANTS. 
(a) STUDY.—The Comptroller General of the United States shall 
conduct a study on the effect on the medicare program under 
title XVIII of the Social Security Act and on medicare beneficiaries 
of coverage under the program of surgical first assisting services 
of certified registered nurse first assistants. The Comptroller Gen-
eral shall consider the following when conducting the study: 
(1) Any impact on the quality of care furnished to medicare 
beneficiaries by reason of such coverage. 
(2) Appropriate education and training requirements for 
certified registered nurse first assistants who furnish such first 
assisting services. 
(3) Appropriate rates of payment under the program to 
such certified registered nurse first assistants for furnishing 
such services, taking into account the costs of compensation, 
overhead, and supervision attributable to certified registered 
nurse first assistants. 
(b) REPORT.—Not later than 1 year after the date of the enact-
ment of this Act, the Comptroller General shall submit to Congress 
a report on the study conducted under subsection (a). 
SEC. 434. MEDPAC STUDY AND REPORT ON MEDICARE REIMBURSE-
MENT FOR SERVICES PROVIDED BY CERTAIN PROVID-
ERS. 
(a) STUDY.—^The Medicare Payment Advisory Commission shall 
conduct a study on the appropriateness of the current payment 
rates under the medicare program under title XVIII of the Social 
Security Act for services provided by a— 
(1) certified nurse-midwife (as defined in subsection (gg)(2) 
of section 1861 of such Act (42 U.S.C. 1395x)); 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-527 
(2) physician assistant (as defined in subsection (aa)(5)(A) 
of such section); 
(3) nurse practitioner (as defined in such subsection); and 
(4) clinical nurse specialist (as defined in subsection 
(aa)(5)(B) of such section). 
The study shall separately examine the appropriateness of such 
payment rates for orthopedic physician assistants, taking into 
consideration the requirements for accreditation, training, and edu-
cation. 
(b) REPORT.—^Not later than 18 months after the date of the 
enactment of this Act, the Commission shall submit to Congress 
a report on the study conducted under subsection (a), together 
with any recommendations for legislation that the Commission 
determines to be appropriate as a result of such study. 
SEC. 435. MEDPAC STUDY AND REPORT ON MEDICARE COVERAGE OF 
SERVICES 
PROVIDED 
BY CERTAIN 
NONPHYSICIAN 
PROVIDERS. 
(a) STUDY.— 
(1) IN GENERAL.—The Medicare Payment Advisory Commis-
sion shall conduct a study to determine the appropriateness 
of providing coverage under the medicare program under title 
XVIII of the Social Security Act for services provided by a— 
(A) surgical technologist; 
(B) marriage counselor; 
(C) marriage and family therapist; 
(D) pastoral care counselor; and 
(E) licensed professional counselor of mental health. 
(2) COSTS TO PROGRAM.—The study shall consider the short-
term and long-term benefits, and costs to the medicare program, 
of providing the coverage described in paragraph (1). 
(b) REPORT.—Not later than 18 months after the date of the 
enactment of this Act, the Commission shall submit to Congress 
a report on the study conducted under subsection (a), together 
with any recommendations for legislation that the Commission 
determines to be appropriate as a result of such study. 
SEC. 436. GAO STUDY AND REPORT ON THE COSTS OF EMERGENCY 
AND MEDICAL TRANSPORTATION SERVICES. 
(a) STUDY.—The Comptroller General of the United States shall 
conduct a study on the costs of providing emergency and medical 
transportation services across the range of acuity levels of conditions 
for which such transportation services are provided. 
(b) REPORT.—Not later than 18 months after the date of the 
enactment of this Act, the Comptroller General shall submit to 
Congress a report on the study conducted under subsection (a), 
together with recommendations for any changes in methodology 
or pa5mient level necessary to fairly compensate suppliers of emer-
gency and medical transportation services and to ensure the access 
of beneficiaries under the medicare program under title XVIII of 
the Social Security Act. 
SEC. 437. GAO STUDIES AND REPORTS ON MEDICARE PAYMENTS. 
(a) GAO STUDY ON H C F A POST-PAYMENT AUDIT PROCESS.— 
(1) STUDY.—The Comptroller General of the United States 
shall conduct a study on the post-payment audit process under 
the medicare program under title XVIII of the Social Security 
Act as such process applies to physicians, including the proper 
114 STAT. 2763A-528 
PUBLIC LAW 106-554^APPENDIX F 
level of resources that the Health Care Financing Administra-
tion should devote to educating physicians regarding— 
(A) coding and billing; 
(B) documentation requirements; and 
(C) the calculation of overpayments. 
(2) REPORT.—Not later than 18 months after the date of 
the enactment of this Act, the Comptroller General shall submit 
to Congress a report on the study conducted under paragraph 
(1) together with specific recommendations for changes or 
improvements in the post-pajnnent audit process described in 
such paragraph, 
(b) GAO STUDY ON ADMINISTRATION AND OVERSIGHT.— 
(1) STUDY.—The Comptroller General of the United States 
shall conduct a study on the aggregate effects of regulatory, 
audit, oversight, and paperwork burdens on physicians and 
other health care providers participating in the medicare pro-
gram under title XVIII of the Social Security Act. 
(2) REPORT.—Not later than 18 months after the date of 
the enactment of this Act, the Comptroller General shall submit 
to Congress a report on the study conducted under paragraph 
(1) together with recommendations regarding any area in 
which— 
(A) a reduction in paperwork, an ease of administra-
tion, or an appropriate change in oversight and review 
may be accomplished; or 
(B) additional pajonents or education are needed to 
assist physicians and other health care providers in under-
standing and complying with any legal or regulatory 
requirements. 
SEC. 438. MEDPAC STUDY ON ACCESS TO OUTPATIENT PAIN MANAGE-
MENT SERVICES. 
(a) STUDY.—The Medicare Pa5anent Advisory Commission shall 
conduct a study on the barriers to coverage and payment for out-
patient interventional pain medicine procedures under the medicare 
program under title XVIII of the Social Security Act. Such study 
shall examine— 
(1) the specific barriers imposed under the medicare pro-
gram on the provision of pain management procedures in hos-
pital outpatient departments, ambulatory surgery centers, and 
physicians' offices; and 
(2) the consistency of medicare payment policies for pain 
management procedures in those different settings. 
(b) REPORT.—Not later than 1 year after the date of the enact-
ment of this Act, the Commission shall submit to Congress a report 
on the study. 
PUBLIC LAW 106-554^APPENDIX F 
114 STAT. 2763A-529 
TITLE V—PROVISIONS RELATING TO 
PARTS A AND B 
Subtitle A—^Home Health Services 
SEC. 501. ONE-YEAR ADDITIONAL DELAY IN APPLICATION OF 15 PER-
CENT REDUCTION ON PAYMENT LIMITS FOR HOME 
HEALTH SERVICES. 
(a) 
IN 
GENERAL.—Section 
1895(b)(3)(A)(i) 
(42 
U.S.C. 
1395ffiR:b)(3)(A)(i)) is amended— 
(1) by redesignating subclause (II) as subclause (III); 
(2) in subclause 
(III), as redesignated, by 
striking 
"described in subclause (I)" and inserting "described in sub-
clause (II)"; and 
(3) by inserting after subclause (I) the following new sub-
clause: 
"(II) For the 12-month period beginning after 
the period described in subclause (I), such amount 
(or amounts) shall be equal to the amount (or 
amounts) determined under subclause (I), updated 
under subparagraph (B).". 
(b) CHANGE IN REPORT.—Section 302(c) of BBRA (113 Stat. 
1501A-360) is amended— 
(1) by striking "Not later than" and all that follows through 
"(42 U.S.C. 1395fff)" and inserting "Not later than April 1, 
2002"; and 
(2) by striking "Secretary" and inserting "Comptroller Gen-
eral of the United States". 
(c) CASE MIX ADJUSTMENT CORRECTIONS.— 
(1) 
IN GENERAL.—Section 
1895(b)(3)(B) 
(42 
U.S.C. 
1395fHlb)(3)(B)) is amended by adding at the end the following 
new clause: 
"(iv) ADJUSTMENT FOR CASE MIX CHANGES.—Insofar 
as the Secretary determines that the adjustments 
under paragraph (4)(A)(i) for a previous fiscal year 
(or estimates that such adjustments for a future fiscal 
year) did (or are likely to) result in a change in aggre-
gate pajonents under this subsection during the fiscal 
year that are a result of changes in the coding or 
classification of different units of services that do not 
reflect real changes in case mix, the Secretary may 
adjust the standard prospective pa3mient amount (or 
amounts) under paragraph (3) for subsequent fiscal 
years so as to eliminate the effect of such coding or 
classification changes.". 
(2) EFFECTIVE DATE.—^The amendment made by paragraph 
(1) shall apply to episodes concluding on or after October 1, 
2001. 
SEC. 502. RESTORATION OF FULL HOME HEALTH MARKET BASKET 
UPDATE FOR HOME HEALTH SERVICES FOR FISCAL YEAR 
2001. 
(a) 
IN 
GENERAL.—Section 
1861(v)(l)(L)(x) 
(42 
U.S.C. 
1395x(vXl)(L)(x)) is amended— 
(1) by striking "2001,"; and 
114 STAT. 2763A-530 
PUBLIC LAW 106-554—APPENDIX F 
(2) by adding at the end the following: "With respect to 
cost reporting periods beginning during fiscal year 2001, the 
update to any limit under this subparagraph shall be the home 
health market basket index.". 
(b) SPECIAL RULE FOR PAYMENT FOR FISCAL YEAR 2001 BASED 
ON ADJUSTED PROSPECTIVE PAYMENT AMOUNTS.— 
(1) IN GENERAL.—Notwithstanding the amendments made 
by subsection (a), for purposes of making payments under sec-
tion 1895(b) of the Social Security Act (42 U.S.C. 1395ffilb)) 
for home health services furnished during fiscal year 2001, 
the Secretary of Health and Human Services shall— 
(A) with respect to episodes and visits ending on or 
after October 1, 2000, and before April 1, 2001, use the 
final standardized and budget neutral prospective payment 
amounts for 60-day episodes and standardized average per 
visit amounts for fiscal year 2001 as published by the 
Secretary in the Federal Register on July 3, 2000 (65 
Fed. Reg. 41128-41214); and 
(B) with respect to episodes and visits ending on or 
after April 1, 2001, and before October 1, 2001, use such 
amounts increased by 2.2 percent. 
(2) No EFFECT ON OTHER PAYMENTS OR DETERMINATIONS.— 
The Secretary shall not take the provisions of paragraph (1) 
into account for purposes of payments, determinations, or 
budget neutrality adjustments under section 1895 of the Social 
Security Act. 
SEC. 503. TEMPORARY TWO-MONTH PERIODIC INTERIM PAYMENT. 
(a) IN GENERAL.—Notwithstanding the amendments made by 
section 4603(b) of BBA (42 U.S.C. 1395fff note), in the case of 
a home health agency that was receiving periodic interim payments 
under section 1815(e)(2) of the Social Security Act (42 U.S.C. 
1395g(e)(2)) as of September 30, 2000, and that is not described 
in subsection (b), the Secretary of Health and Human Services 
shall, as soon as practicable, make a single periodic interim payment 
to such agency in an amount equal to four times the last full 
fortnightly periodic interim pa5anent made to such agency under 
the payment system in effect prior to the implementation of the 
prospective payment system under section 1895(b) of such Act (42 
U.S.C. 1395fff(b)). Such amount of such periodic interim payment 
shall be included in the tentative settlement of the last cost report 
for the home health agency under the pa3anent system in effect 
prior to the implementation of such prospective payment system, 
regardless of the ending date of such cost report. 
(b) EXCEPTIONS.—The Secretary shall not make an additional 
periodic interim payment under subsection (a) in the case of a 
home health agency (determined as of the day that such payment 
would otherwise be made) that— 
(1) notifies the Secretary that such agency does not want 
to receive such payment; 
(2) is not receiving payments pursuant to section 405.371 
of title 42, Code of Federal Regulations; 
(3) is excluded from the medicare program under title 
XI of the Social Security Act; 
(4) no longer has a provider agreement under section 1866 
of such Act (42 U.S.C. 1395cc); 
(5) is no longer in business; or 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-531 
(6) is subject to a court order providing for the withholding 
of medicare payments under title XVIII of such Act. 
SEC. 504. USE OF TELEHEALTH IN DELIVERY OF HOME HEALTH SERV-
ICES. 
Section 1895 (42 U.S.C. 1395fff) is amended by adding at 
the end the following new subsection: 
"(e) CONSTRUCTION RELATED TO HOME HEALTH SERVICES.— 
"(1) TELECOMMUNICATIONS.—^Nothing in this section shall 
be construed as preventing a home health agency furnishing 
a home health unit of service for which payment is made 
under the prospective payment system established by this sec-
tion for such units of service from furnishing services via a 
telecommunication system if such services— 
"(A) do not substitute for in-person home health serv-
ices ordered as part of a plan of care certified by a physician 
pursuant to section 1814(a)(2)(C) or 1835(a)(2XA); and 
"(B) are not considered a home health visit for purposes 
of eligibility or payment under this title. 
"(2) PHYSICIAN CERTIFICATION.—Nothing in this section 
shall be construed as waiving the requirement for a physician 
certification under section 1814(a)(2)(C) or 1835(a)(2)(A) of such 
Act (42 U.S.C. 1395fla)(2)(C), 1395n(a)(2)(A)) for the payment 
for home health services, whether or not furnished via a tele-
communications system.". 
SEC. 505. STUDY ON COSTS TO HOME HEALTH AGENCIES OF PURCHAS-
ING NONROUTINE MEDICAL SUPPLIES. 
(a) STUDY.—The Comptroller General of the United States shall 
conduct a study on variations in prices paid by home health agencies 
furnishing home health services under the medicare program under 
title XVIII of the Social Security Act in purchasing nonroutine 
medical supplies, including ostomy supplies, and volumes of such 
supplies used, shall determine the effect (if any) of variations on 
prices and volumes in the provision of such services. 
(b) REPORT.—^Not later than August 15, 2001, the Comptroller 
General shall submit to Congress a report on the study conducted 
under subsection (a), and shall include in the report recommenda-
tions respecting whether payment for nonroutine medical supplies 
furnished in connection with home health services should be made 
separately from the prospective pa5nnent system for such services. 
SEC. 506. TREATMENT OF BRANCH OFFICES; GAO STUDY ON SUPER-
VISION OF HOME HEALTH CARE PROVIDED IN ISOLATED 
RURAL AREAS. 
(a) TREATMENT OF BRANCH OFFICES.— 
(1) IN GENERAL.—^Notwithstanding any other provision of 
law, in determining for purposes of title XVIII of the Social 
Security Act whether an office of a home health agency con-
stitutes a branch office or a separate home health agency, 
neither the time nor distance between a parent office of the 
home health agency and a branch office shall be the sole 
determinant of a home health agenc^s branch office status. 
(2) CONSIDERATION OF FORMS OF TECHNOLOGY IN DEFINI-
TION OF SUPERVISION.—The Secretary of Health and Human 
Services may include forms of technology in determining what 
constitutes "supervision" for purposes of determining a home 
heath agency's branch office status under paragraph (1). 
114 STAT. 2763A-532 
PUBLIC LAW 106-554—APPENDIX F 
(b) GAO STUDY.— 
(1) STUDY.—The Comptroller General of the United States 
shall conduct a study of the provision of adequate supervision 
to maintain quality of home health services delivered under 
the medicare program under title XVIII of the Social Security 
Act in isolated rural areas. The study shall evaluate the meth-
ods that home health agency branches and subunits use to 
maintain adequate supervision in the delivery of services to 
clients residing in those areas, how these methods of super-
vision compare to requirements that subunits independently 
meet medicare conditions of participation, and the resources 
utilized by subunits to meet such conditions. 
(2) REPORT.—Not later than January 1, 2002, the Comptrol-
ler General shall submit to Congress a report on the study 
conducted under paragraph (1). The report shall include rec-
ommendations on whether exceptions are needed for subunits 
and branches of home health agencies under the medicare 
program to maintain access to the home health benefit or 
whether alternative policies should be developed to assure ade-
quate supervision and access and recommendations on whether 
a national standard for supervision is appropriate. 
SEC. 507. CLARIFICATION OF THE HOMEBOUND DEFINITION UNDER 
THE MEDICARE HOME HEALTH BENEFIT. 
(a) CLARIFICATION.— 
(1) IN GENERAL.—Sections 1814(a) and 1835(a) (42 U.S.C. 
1395f(a) and 1395n(a)) are each amended— 
(A) in the last sentence, by striking ", and that absences 
of the individual from home are infrequent or of relatively 
short duration, or are attributable to the need to receive 
medical treatment"; and 
(B) by adding at the end the following new sentences: 
"Any absence of an individual from the home attributable 
to the need to receive health care treatment, including 
regular absences for the purpose of participating in thera-
peutic, psychosocial, or medical treatment in an adult day-
care program that is licensed or certified by a State, or 
accredited, to furnish adult day-care services in the State 
shall not disqualify an individual from being considered 
to be 'confined to his home'. Any other absence of an 
individual from the home shall not so disqualify an individ-
ual if the absence is of infrequent or of relatively short 
duration. For purposes of the preceding sentence, any 
absence for the purpose of attending a religious service 
shall be deemed to be an absence of infrequent or short 
duration.". 
(2) EFFECTIVE DATE.—^The amendments made by paragraph 
(1) shall apply to home health services furnished on or after 
the date of the enactment of this Act. 
(b) STUDY.— 
(1) IN GENERAL.—The Comptroller General of the United 
States shall conduct an evaluation of the effect of the amend-
ment on the cost of and access to home health services under 
the medicare program under title XVIII of the Social Security 
Act. 
(2) REPORT.—^Not later than 1 year after the date of the 
enactment of this Act, the Comptroller General shall submit 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-533 
to Congress a report on the study conducted under paragraph 
(1). 
SEC. 508. TEMPORARY INCREASE FOR HOME HEALTH SERVICES FUR-
NISHED IN A RURAL AREA. 
(a) 24-MoNTH INCREASE BEGINNING APRIL 1, 2001.—In the 
case of home health services furnished in a rural area (as defined 
in section 1886(d)(2)(D) of the Social Security Act (42 U.S.C. 
1395ww(d)(2)(D))) on or after April 1, 2001, and before April 1, 
2003, the Secretary of Health and Human Services shall increase 
the pa5mient amount otherwise made under section 1895 of such 
Act (42 U.S.C. 1395fff) for such services by 10 percent. 
(b) WAIVING BUDGET NEUTRALITY.—^The Secretary shall not 
reduce the standard prospective payment amount (or amounts) 
under section 1895 of the Social Security Act (42 U.S.C. 1395ffr) 
applicable to home health services furnished during a period to 
offset the increase in payments resulting from the application of 
subsection (a). 
Subtitle B—^Direct Graduate Medical 
Education 
SEC. 511. INCREASE IN FLOOR FOR DIRECT GRADUATE MEDICAL EDU-
CATION PAYMENTS. 
Section 1886(h)(2)(D)(iii) (42 U.S.C. 1395ww(h)(2XD)(iii)) is 
amended— 
(1) in the heading, by striking "IN FISCAL YEAR 2001 AT 
70 PERCENT OF" and inserting "FOR"; and 
(2) by inserting after "70 percent" the following: ", and 
for the cost reporting period beginning during fiscal year 2002 
shall not be less than 85 percent,". 
SEC. 
512. 
CHANGE 
IN 
DISTRIBUTION 
FORMULA FOR 
MEDICARE+CHOICE-RELATED NURSING AND ALLIED 
HEALTH EDUCATION COSTS. 
(a) 
IN 
GENERAL.—Section 
1886(1)(2)(C) 
(42 
U.S.C. 
1395ww(l)(2)(C)) is amended by striking all that follows "multiplied 
by" and inserting the following: "the ratio of— 
"(i) the product of (I) the Secretary's estimate of 
the ratio of the amount of payments made under sec-
tion 186 l(v) to the hospital for nursing and allied 
health education activities for the hospital's cost report-
ing period ending in the second preceding fiscal year, 
to the hospital's total inpatient days for such period, 
and (II) the total number of inpatient days (as estab-
lished by the Secretary) for such period which are 
attributable to services furnished to individuals who 
are enrolled under a risk sharing contract with an 
eligible organization under section 1876 and who are 
entitled to benefits under part A or who are enrolled 
with a Medicare+Choice organization under part C; 
to 
"(ii) the sum of the products determined under 
clause (i) for such cost reporting periods.". 
114 STAT. 2763A-534 
PUBLIC LAW 106-554—APPENDIX F 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to portions of cost reporting periods occurring on or 
after January 1, 2001. 
Subtitle C—Changes in Medicare Coverage 
and Appeals Process 
SEC. 521. REVISIONS TO MEDICARE APPEALS PROCESS. 
(a) CONDUCT OF RECONSIDERATIONS OF DETERMINATIONS BY 
INDEPENDENT CONTRACTORS.—Section 1869 (42 U.S.C. 1395ff) is 
amended to read as follows: 
"DETERMINATIONS; APPEALS 
"SEC. 1869. (a) INITIAL DETERMINATIONS.— 
"(1) PROMULGATIONS OF REGULATIONS.—^The Secretary shall 
promulgate regulations and make initial determinations with 
respect to benefits under part A or part B in accordance with 
those regulations for the following: 
"(A) The initial determination of whether an individual 
is entitled to benefits under such parts. 
"(B) The initial determination of the amount of benefits 
available to the individual under such parts. 
"(C) Any other initial determination with respect to 
a claim for benefits under such parts, including an initial 
determination by the Secretary that payment may not be 
made, or may no longer be made, for an item or service 
under such parts, an initial determination made by a utili-
zation and quality control peer review organization under 
section 1154(a)(2), and an initial determination made by 
an entity pursuant to a contract (other than a contract 
under section 1852) with the Secretary to administer provi-
sions of this title or title XI. 
"(2) DEADLINES FOR MAKING INITIAL DETERMINATIONS.— 
"(A) IN GENERAL.—Subject to subparagraph (B), in 
promulgating regulations under paragraph (1), initial 
determinations shall be concluded by not later than the 
45-day period beginning on the date the fiscal intermediary 
or the carrier, as the case may be, receives a claim for 
benefits from an individual as described in paragraph (1). 
Notice of such determination shall be mailed to the individ-
ual filing the claim before the conclusion of such 45-day 
period. 
"(B) CLEAN CLAIMS.—Subparagraph (A) shall not apply 
with respect to any claim that is subject to the require-
ments of section 1816(c)(2) or 1842(c)(2). 
"(3) REDETERMINATIONS.— 
"(A) IN GENERAL.—In promulgating regulations imder 
paragraph (1) with respect to initial determinations, such 
regulations shall provide for a fiscal intermediary or a 
carrier to make a redetermination with respect to a claim 
for benefits that is denied in whole or in part. 
"(B) LIMITATIONS.— 
"(i) APPEAL RIGHTS.—^No initial determination may 
be reconsidered or appealed under subsection (b) unless 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-535 
the fiscal intermediary or carrier has made a redeter-
mination of that initial determination under this para-
graph. 
"(ii) DECISIONMAKER.—No redetermination may be 
made by any individual involved in the initial deter-
mination. 
"(C) DEADLINES.— 
"(i) FILING FOR REDETERMINATION.—^A redeter-
mination under subparagraph (A) shall be available 
only if notice is filed with the Secretary to request 
the redetermination by not later than the end of the 
120-day period beginning on the date the individual 
receives notice of the initial determination under para-
graph (2). 
"(ii) 
CONCLUDING 
REDETERMINATIONS.—Redeter-
minations shall be concluded by not later than the 
30-day period beginning on the date the fiscal inter-
mediary or the carrier, as the case may be, receives 
a request for a redetermination. Notice of such deter-
mination shall be mailed to the individual filing the 
claim before the conclusion of such 30-day period. 
"(D) CONSTRUCTION.—For purposes of the succeeding 
provisions of this section a redetermination under this 
paragraph shall be considered to be part of the initial 
determination, 
"(b) APPEAL RIGHTS.— 
"(1) IN GENERAL.— 
"(A) RECONSIDERATION OF INITIAL DETERMINATION.— 
Subject to subparagraph (D), any individual dissatisfied 
with any initial determination under subsection (a)(1) shall 
be entitled to reconsideration of the determination, and, 
subject to subparagraphs (D) and (E), a hearing thereon 
by the Secretary to the same extent as is provided in 
section 205(b) and to judicial review of the Secretary's 
final decision after such hearing as is provided in section 
205(g). For purposes of the preceding sentence, any ref-
erence to the 'Commissioner of Social Security' or the 'Social 
Security Administration' in subsection (g) or (1) of section 
205 shall be considered a reference to the 'Secretary' or 
the 'Department of Health and Human Services', respec-
tively. 
"(B) REPRESENTATION BY PROVIDER OR SUPPLIER.— 
"(i) IN GENERAL.—Sections 206(a), 1102, and 1871 
shall not be construed as authorizing the Secretary 
to prohibit an individual from being represented under 
this section by a person that furnishes or supplies 
the individual, directly or indirectly, with services or 
items, solely on the basis that the person furnishes 
or supplies the individual with such a service or item. 
"(ii) MANDATORY WAIVER OF RIGHT TO PAYMENT 
FROM BENEFICIARY.—^Aay person that furnishes serv-
ices or items to an individual may not represent an 
individual under this section with respect to the issue 
described in section 1879(a)(2) unless the person has 
waived any rights for payment from the beneficiary 
with respect to the services or items involved in the 
appeal. 
114 STAT. 2763A-536 
PUBLIC LAW 106-554—APPENDIX F 
"(iii) PROHIBITION ON PAYMENT FOR REPRESENTA-
TION.—If a person furnishes services or items to an 
individual and represents the individual under this 
section, the person may not impose any financial liabil-
ity on such individual in connection with such rep-
resentation. 
"(iv) REQUIREMENTS FOR REPRESENTATIVES OF A 
BENEFICIARY.—The provisions of section 205(j) and of 
section 206 (other than subsection (a)(4) of such sec-
tion) regarding representation of claimants shall apply 
to representation of an individual with respect to 
appeals under this section in the same manner as 
they apply to representation of an individual under 
those sections. 
"(C) SUCCESSION OF RIGHTS IN CASES OF ASSIGNMENT.— 
The right of an individual to an appeal under this section 
with respect to an item or service may be assigned to 
the provider of services or supplier of the item or service 
upon the written consent of such individual using a stand-
ard form established by the Secretary for such an assign-
ment. 
"(D) TIME LIMITS FOR FILING APPEALS.— 
"(i) RECONSIDERATIONS.—^Reconsideration 
under 
subparagraph (A) shall be available only if the individ-
u£d described in subparagraph (A) files notice with 
the Secretary to request reconsideration by not later 
than the end of the 180-day period beginning on the 
date the individual receives notice of the redetermina-
tion under subsection (a)(3), or within such additional 
time as the Secretary may allow. 
"(ii) HEARINGS CONDUCTED BY THE SECRETARY.— 
The Secretary shall establish in regulations time limits 
for the filing of a request for a hearing by the Secretary 
in accordance with provisions in sections 205 and 206. 
"(E) AMOUNTS IN CONTROVERSY.— 
"(i) IN GENERAL.—A hearing (by the Secretary) 
shall not be available to an individual under this sec-
tion if the amount in controversy is less than $100, 
and judicial review shall not be available to the individ-
ual if the amount in controversy is less than $1,000. 
"(ii) AGGREGATION OF CLAIMS.—In determining the 
amount in controversy, the Secretary, under regula-
tions, shall allow two or more appeals to be aggregated 
if the appeals involve— 
"(I) the delivery of similar or related services 
to the same individual by one or more providers 
of services or suppliers, or 
"(II) common issues of law and fact arising 
from services furnished to two or more individuals 
by one or more providers of services or suppliers. 
"(F) EXPEDITED PROCEEDINGS.— 
"(i) EXPEDITED DETERMINATION.—In the case of an 
individual who has received notice from a provider 
of services that such provider plans— 
"(I) to terminate services provided to an 
individual and a physician certifies that failure 
to continue the provision of such services is likely 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-537 
to place the individual's health at significant risk, 
or 
"(11) to discharge the individual from the pro-
vider of services, 
the individual may request, in writing or orally, an 
expedited determination or an expedited reconsider-
ation of an initial determination made under sub-
section (a)(1), as the case may be, and the Secretary 
shall provide such expedited determination or expe-
dited reconsideration. 
"(ii) EXPEDITED HEARING.—In a hearing by the Sec-
retary under this section, in which the moving party 
alleges that no material issues of fact are in dispute, 
the Secretary shall make an expedited determination 
as to whether any such facts are in dispute and, if 
not, shall render a decision expeditiously. 
"(G) REOPENING AND REVISION OF DETERMINATIONS.— 
The Secretary may reopen or revise any initial determina-
tion or reconsidered determination described in this sub-
section under guidelines established by the Secretary in 
regulations. 
"(c) 
CONDUCT OF RECONSIDERATIONS BY INDEPENDENT CON-
TRACTORS.— 
"(1) IN GENERAL.—The Secretary shall enter into contracts 
with qualified independent contractors to conduct reconsider-
ations of initial determinations made under subparagraphs (B) 
and (C) of subsection (a)(1). Contracts shall be for an initial 
term of three years and shall be renewable on a triennial 
basis thereafter. 
"(2) QUALIFIED INDEPENDENT CONTRACTOR.—For purposes 
of this subsection, the term 'qualified independent contractor' 
means an entity or organization that is independent of any 
organization under contract with the Secretary that makes 
initial determinations under subsection (a)(1), and that meets 
the requirements established by the Secretary consistent with 
paragraph (3). 
; 
"(3) REQUIREMENTS.—^Any qualified independent contractor 
j 
entering into a contract with the Secretary under this sub- 
i 
section shall meet all of the following requirements: 
"(A) IN GENERAL.—The qualified independent contrac- 
I 
tor shall perform such duties and functions and assume 
such responsibilities as may be required by the Secretary 
to carry out the provisions of this subsection, and shall 
have sufficient training and expertise in medical science 
and legal matters to make reconsiderations under this sub-
section. 
"(B) RECONSIDERATIONS.— 
"(i) IN GENERAL.—The qualified independent con-
tractor shall review initial determinations. Where an 
initial determination is made with respect to whether 
an item or service is reasonable and necessary for 
the diagnosis or treatment of illness or injury (under 
section 1862(a)(1)(A)), such review shall include consid-
eration of the facts and circumstances of the initial 
determination by a panel of physicians or other appro-
priate health care professionals and any decisions with 
respect to the reconsideration shall be based on 
79-194 O - 00 - 19: QL 3 Part 5 
114 STAT. 2763A-538 
PUBLIC LAW 106-554—APPENDIX F 
applicable information, including clinical experience 
and medical, technical, and scientific evidence. 
"(ii) EFFECT OF NATIONAL AND LOCAL COVERAGE 
DETERMINATIONS.— 
"(I) NATIONAL COVERAGE DETERMINATIONS.— 
If the Secretary has made a national coverage 
determination pursuant to the requirements estab-
lished under the third sentence of section 1862(a), 
such determination shall be binding on the quali-
fied independent contractor in making a decision 
with respect to a reconsideration under this sec-
tion. 
"(II) 
LOCAL COVERAGE DETERMINATIONS.—If 
the Secretary has made a local coverage deter-
mination, such determination shall not be binding 
on the qualified independent contractor in making 
a decision with respect to a reconsideration under 
this section. Notwithstanding the previous sen-
tence, the qualified independent contractor shall 
consider the local coverage determination in mak-
ing such decision. 
"(Ill) ABSENCE OF NATIONAL OR LOCAL COV-
ERAGE DETERMINATION.—In the absence of such 
a national coverage determination or local coverage 
determination, the qualified independent contrac-
tor shall make a decision with respect to the 
reconsideration based on applicable information, 
including clinical experience and medical, tech-
nical, and scientific evidence. 
"(C) DEADLINES FOR DECISIONS.— 
"(i) RECONSIDERATIONS.—Except as provided in 
clauses (iii) and (iv), the qualified independent contrac-
tor shall conduct and conclude a reconsideration under 
subparagraph (B), and mail the notice of the decision 
with respect to the reconsideration by not later than 
the end of the 30-day period beginning on the date 
a request for reconsideration has been timely filed, 
"(ii) CONSEQUENCES OF FAILURE TO MEET DEAD-
LINE.—In the case of a failure by the qualified 
independent contractor to mail the notice of the deci-
sion by the end of the period described in clause (i) 
or to provide notice by the end of the period described 
in clause (iii), as the case may be, the party requesting 
the reconsideration or appeal may request a hearing 
before the Secretary, notwithstanding any require-
ments for a reconsidered determination for purposes 
of the party's right to such hearing. 
"(iii) EXPEDITED RECONSIDERATIONS.—The quali-
fied independent contractor shall perform an expedited 
reconsideration under subsection (b)(1)(F) as follows: 
"(I) DEADLINE FOR DECISION.—^Notwithstand-
ing section 216(j) and subject to clause (iv), not 
later than the end of the 72-hour period beginning 
on the date the qualified independent contractor 
has received a request for such reconsideration 
and has received such medical or other records 
needed for such reconsideration, the qualified 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-539 
independent contractor shall provide notice (by 
telephone and in writing) to the individual and 
the provider of services and attending physician 
of the individual of the results of the reconsider-
ation. Such reconsideration shall be conducted 
regardless of whether the provider of services or 
supplier will charge the individual for continued 
services or whether the individual will be liable 
for payment for such continued services. 
"(II) 
CONSULTATION WITH BENEFICIARY.—In 
such reconsideration, the qualified independent 
contractor shall solicit the views of the individual 
involved. 
"(Ill) 
SPECIAL 
RULE 
FOR 
HOSPITAL 
DIS-
CHARGES.—^A reconsideration of a discharge from 
a hospital shall be conducted iinder this clause 
in accordance with the provisions of paragraphs 
(2), (3), and (4) of section 1154(e) as in effect on 
the date that precedes the date of the enactment 
of this subparagraph. 
"(iv) EXTENSION.—An individual requesting 
a 
reconsideration under this subparagraph may be 
granted such additional time as the individual specifies 
(not to exceed 14 days) for the qualified independent 
contractor to conclude the reconsideration. The individ-
ual may request such additional time orally or in writ-
ing. 
"(D) LIMITATION ON INDIVIDUAL REVIEWING DETERMINA-
TIONS.— 
"(i) PHYSICIANS AND HEALTH CARE PROFESSIONAL.— 
No physician or health care professional under the 
employ of a qualified independent contractor may 
review— 
"(I) determinations regarding health care serv-
ices furnished to a patient if the physician or 
health care professional was directly responsible 
for furnishing such services; or 
"(II) determinations regarding health care 
services provided in or by an institution, organiza-
tion, or agency, if the physician or any member 
of the family of the physician or health care profes-
sional has, directly or indirectly, a significant 
financial interest in such institution, organization, 
or agency. 
"(ii) FAMILY DESCRIBED.—^For purposes of this 
paragraph, the family of a physician or health care 
professional includes the spouse (other than a spouse 
who is legally separated from the physician or health 
care professional under a decree of divorce or separate 
maintenance), children (including stepchildren and 
legally adopted children), grandchildren, parents, and 
grandparents of the physician or health care profes-
sional. 
"(E) EXPLANATION OF DECISION.—Any decision with 
respect to a reconsideration of a qualified independent con-
tractor shall be in writing, and shall include a detailed 
explanation of the decision as well as a discussion of the 
114 STAT. 2763A-540 
PUBLIC LAW 106-554—APPENDIX F 
pertinent facts and applicable regulations applied in mak-
ing such decision, and in the case of a determination of 
whether an item or service is reasonable and necessary 
for the diagnosis or treatment of illness or injury (under 
section 1862(a)(1)(A)) an explanation of the medical and 
scientific rationale for the decision. 
"(F) NOTICE REQUIREMENTS.—Whenever a qualified 
independent contractor makes a decision with respect to 
a reconsideration under this subsection, the qualified 
independent contractor shall promptly notify the entity 
responsible for the pa)anent of claims under part A or 
part B of such decision. 
"(G) DISSEMINATION OF DECISIONS ON RECONSIDER-
ATIONS.—Each qualified independent contractor shall make 
available all decisions with respect to reconsiderations of 
such qualified independent contractors to fiscal inter-
mediaries (under section 1816), carriers (under section 
1842), peer review organizations (under part B of title 
XI), 
Medicare+Choice 
organizations 
offering 
Medicare+Choice plans under part C, other entities under 
contract with the Secretary to make initial determinations 
under part A or part B or title XI, and to the public. 
The Secretary shall establish a methodology under which 
qualified independent contractors shall carry out this 
subparagraph. 
"(H) 
ENSURING 
CONSISTENCY IN DECISIONS.—^Each 
qualified independent contractor shall monitor its decisions 
with respect to reconsiderations to ensure the consistency 
of such decisions with respect to requests for reconsider-
ation of similar or related matters. 
"(I) DATA COLLECTION.— 
"(i) IN GENERAL.—Consistent with the require-
ments of clause (ii), a qualified independent contractor 
shall collect such information relevant to its functions, 
£ind keep and maintain such records in such form 
and manner as the Secretary may require to carry 
out the purposes of this section and shall permit access 
to and use of any such information and records as 
the Secretary may require for such purposes. 
"(ii) TYPE OF DATA COLLECTED.—Each qualified 
independent contractor shall keep accurate records of 
each decision made, consistent with standards estab-
lished by the Secretary for such purpose. Such records 
shall be maintained in an electronic database in a 
manner that provides for identification of the following: 
"(I) Specific claims that give rise to appeals. 
"(II) Situations 
suggesting the need for 
increased education for providers of services, physi-
cians, or suppliers. 
"(Ill) Situations 
suggesting the need for 
changes in national or local coverage policy. 
"(IV) Situations 
suggesting the need for 
changes in local medical review policies. 
"(iii) 
ANNUAL 
REPORTING.—^Each 
qualified 
independent contractor shall submit annually to the 
Secretary (or otherwise as the Secretary may request) 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-541 
records maintained under this paragraph for the pre-
vious year. 
"(J) 
HEARINGS BY THE SECRETARY.—^The quaUfied 
independent contractor shall (i) prepare such information 
as is required for an appeal of a decision of the contractor 
with respect to a reconsideration to the Secretary for a 
hearing, including as necessary, explanations of issues 
involved in the decision and relevant policies, and (ii) 
participate in such hearings as required by the Secretary. 
"(4) NUMBER OF QUALIFIED INDEPENDENT CONTRACTORS.— 
The Secretary shall enter into contracts with not fewer than 
12 qualified independent contractors under this subsection. 
"(5) LIMITATION ON QUALIFIED INDEPENDENT CONTRACTOR 
LIABILITY.—No qualified independent contractor having a con-
tract with the Secretary xuider this subsection and no person 
who is employed by, or who has a fiduciary relationship with, 
any such qualified independent contractor or who furnishes 
professional services to such qualified independent contractor, 
shall be held by reason of the performance of any duty, function, 
or activity required or authorized pursuant to this subsection 
or to a valid contract entered into under this subsection, to 
have violated any criminal law, or to be civilly liable under 
any law of the United States or of any State (or political 
subdivision thereof) provided due care was exercised in the 
performance of such duty, function, or activity. 
"(d) DEADLINES FOR HEARINGS BY THE SECRETARY.— 
"(1) HEARING BY ADMINISTRATIVE LAW JUDGE.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), an administrative law judge shall conduct and conclude 
a hearing on a decision of a qualified independent contrac-
tor under subsection (c) and render a decision on such 
hearing by not later than the end of the 90-day period 
beginning on the date a request for hearing has been 
timely filed. 
"(B) 
WAIVER OF DEADLINE BY PARTY SEEKING HEAR-
ING.—TTie 90-day period under subparagraph (A) shall not 
apply in the case of a motion or stipulation by the party 
requesting the hearing to waive such period. 
"(2) DEPARTMENTAL APPEALS BOARD REVIEW.— 
"(A) IN GENERAL.—^The Departmental Appeals Board 
of the Department of Health and Humgin Services shall 
conduct Eind conclude a review of the decision on a hearing 
described in paragraph (1) and make a decision or remand 
the case to the administrative law judge for reconsideration 
by not later than the end of the 90-day period beginning 
on the date a request for review has been timely filed. 
"(B) DAB HEARING PROCEDURE.—In reviewing a deci-
sion on a hearing imder this paragraph, the Departmental 
Appeals Board shall review the case de novo. 
"(3) CONSEQUENCES OF FAILURE TO MEET DEADLINES.— 
"(A) HEARING BY ADMINISTRATIVE LAW JUDGE.—In the 
case of a failure by an administrative law judge to render 
a decision by the end of the period described in paragraph 
(1), the party requesting the hearing may request a review 
by the Departmental Appeals Board of the Department 
of Health and Human Services, notwithstanding any 
114 STAT. 2763A-542 
PUBLIC LAW 106-554^APPENDIX F 
requirements for a hearing for purposes of the party's 
right to such a review. 
"(B) DEPARTMENTAL APPEALS BOARD REVIEW.—In 
the 
case of a failure by the Departmental Appeals Board to 
render a decision by the end of the period described in 
paragraph (2), the party requesting the hearing may seek 
judicial review, notwithstEinding any requirements for a 
hearing for purposes of the party's right to such judicial 
review. 
"(e) ADMINISTRATIVE PROVISIONS.— 
"(1) 
LIMITATION ON REVIEW OF CERTAIN REGULATIONS.— 
A regulation or instruction that relates to a method for deter-
mining the amount of payment under part B and that was 
initially issued before January 1, 1981, shall not be subject 
to judicial review. 
"(2) OUTREACH.—^The Secretary shall perform such out-
reach activities as are necessary to inform individuals entitled 
to benefits under this title and providers of services and suppli-
ers with respect to their rights of, and the process for, appeals 
made under this section. The Secretary shall use the toll-
free telephone number maintained by the Secretary under sec-
tion 1804(b) to provide information regarding appeal rights 
and respond to inquiries regarding the status of appeals. 
"(3) CONTINUING EDUCATION REQUIREMENT FOR QUALIFIED 
INDEPENDENT 
CONTRACTORS 
AND 
ADMINISTRATIVE 
LAW 
JUDGES.—^The Secretary 
shall provide to each 
qualified 
independent contractor, and, in consultation with the Commis-
sioner of Social Security, to administrative law judges that 
decide appeals of reconsiderations of initial determinations or 
other decisions or determinations under this section, such 
continuing education with respect to coverage of items and 
services under this title or policies of the Secretary with respect 
to part B of title XI as is necessary for such qualified independ-
ent contractors and administrative law judges to make informed 
decisions with respect to appeals. 
"(4) REPORTS.— 
"(A) 
ANNUAL REPORT TO CONGRESS.—The Secretary 
shall submit to Congress an annual report describing the 
number of appeals for the previous year, identifying issues 
that require administrative or legislative actions, and 
including any recommendations of the Secretary with 
respect to such actions. The Secretary shall include in 
such report an analysis of determinations by qualified 
independent 
contractors with respect to 
inconsistent 
decisions and an analysis of the causes of any such 
inconsistencies. 
"(B) SURVEY.—Not less frequently than every 5 years, 
the Secretary shall conduct a survey of a valid sample 
of individuals entitled to benefits under this title who have 
filed appeals of determinations under this section, providers 
of services, and suppliers to determine the satisfaction 
of such individuals or entities with the process for appeals 
of determinations provided for under this section and edu-
cation and training provided by the Secretary with respect 
to that process. The Secretary shall submit to Congress 
a report describing the results of the survey, and shall 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-543 
include any recommendations for administrative or legisla-
tive actions that the Secretary determines appropriate.". 
(b) APPLICABILITY OF REQUIREMENTS AND LIMITATIONS ON 
LIABILITY 
OF 
QUALIFIED 
INDEPENDENT 
CONTRACTORS 
TO 
MEDICARE+CHOICE INDEPENDENT APPEALS CONTRACTORS.—Section 
1852(g)(4) (42 U.S.C. 1395w-22(g)(4)) is amended by adding at 
the end the following: "The provisions of section 1869(c)(5) shall 
apply to independent outside entities under contract with the Sec-
retary under this paragraph.". 
(c) CONFORMING AMENDMENT.—Section 1154(e) (42 U.S.C. 
1320c-3(e)) is amended by striking paragraphs (2), (3), and (4). 
(d) EFFECTIVE DATE.—^The amendments made by this section 
shall apply with respect to initial determinations made on or after 
October 1, 2002. 
SEC. 522. REVISIONS TO MEDICARE COVERAGE PROCESS. 
(a) REVIEW OF DETERMINATIONS.—Section 1869 (42 U.S.C. 
1395ff), as amended by section 521, is further amended by adding 
at the end the following new subsection: 
"(f) REVIEW OF COVERAGE DETERMINATIONS.— 
"(1) NATIONAL COVERAGE DETERMINATIONS.— 
"(A) IN GENERAL.—Review of any national coverage 
determination shall be subject to the following limitations: 
"(i) Such a determination shall not be reviewed 
by any administrative law judge. 
"(ii) Such a determination shall not be held unlaw-
ful or set aside on the ground that a requirement 
of section 553 of title 5, United States Code, or section 
1871(b) of this title, relating to publication in the Fed-
eral Register or opportunity for public cormnent, was 
not satisfied. 
"(iii) Upon the filing of a complaint by an aggrieved 
party, such a determination shall be reviewed by the 
Departmental Appeals Board of the Department of 
Health and Human Services. In conducting such a 
review, the Departmental Appeals Board— 
"(I) shall review the record and shall permit 
discovery and the taking of evidence to evaluate 
the reasonableness of the determination, if the 
Board determines that the record is incomplete 
or lacks adequate information to support the valid-
ity of the determination; 
"(II) may, as appropriate, consult with appro-
priate scientific and clinical experts; and 
"(III) shall defer only to the reasonable find-
ings of fact, reasonable interpretations of law, and 
reasonable applications of fact to law by the Sec-
' 
retary. 
"(iv) The Secretary shall implement a decision of 
the Departmental Appeals Board within 30 days of 
receipt of such decision. 
"(v) A decision of the Departmental Appeals Board 
constitutes a final agency action and is subject to 
judicial review. 
114 STAT. 2763A-544 
PUBLIC LAW 106-554—APPENDIX F 
"(B) DEFINITION OF NATIONAL COVERAGE DETERMINA-
TION.—For purposes of this section, the term 'national cov-
erage determination' means a determination by the Sec-
retary with respect to whether or not a particular item 
or service is covered nationally under this title, but does 
not include a determination of what code, if any, is assigned 
to a particular item or service covered under this title 
or a determination with respect to the amount of payment 
made for a particular item or service so covered. 
"(2) LOCAL COVERAGE DETERMINATION.— 
"(A) IN GENERAL.—Review of any local coverage deter-
mination shall be subject to the following limitations: 
"(i) Upon the filing of a complaint by an aggrieved 
party, such a determination shall be reviewed by an 
administrative 
law judge of the Social Security 
Administration. The administrative law judge— 
"(I) shall review the record and shall permit 
discovery and the taking of evidence to evaluate 
the reasonableness of the determination, if the 
administrative law judge determines that the 
record is incomplete or lacks adequate information 
to support the validity of the determination; 
"(II) may, as appropriate, consult with appro-
priate scientific and clinical experts; and 
"(III) shall defer only to the reasonable find-
ings of fact, reasonable interpretations of law, and 
reasonable applications of fact to law by the Sec-
retary. 
"(ii) Upon the filing of a complaint by an aggrieved 
party, a decision of an administrative law judge under 
clause (i) shall be reviewed by the Departmental 
Appeals Board of the Department of Health and 
Human Services. 
"(iii) The Secretary shall implement a decision of 
the administrative law judge or the Departmental 
Appeals Board within 30 days of receipt of such deci-
sion. 
"(iv) A decision of the Departmental Appeals Board 
constitutes a final agency action and is subject to 
judicial review. 
"(B) 
DEFINITION OF LOCAL COVERAGE DETERMINA-
TION.—For purposes of this section, the term 'local coverage 
determination' means a determination by a fiscal inter-
mediary or a carrier under part A or part B, as applicable, 
respecting whether or not a particular item or service is 
covered on an intermediary- or carrier-wide basis under 
such parts, in accordance with section 1862(a)(1)(A). 
"(3) No MATERIAL ISSUES OF FACT IN DISPUTE.—In the case 
of a determination that may otherwise be subject to review 
under paragraph (l)(A)(iii) or paragraph (2)(A)(i), where the 
moving party alleges that— 
"(A) there are no material issues of fact in dispute, 
and 
"(B) the only issue of law is the constitutionality of 
a provision of this title, or that a regulation, determination, 
or ruling by the Secretary is invalid, 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-545 
the moving party may seek review by a court of competent 
jurisdiction without filing a complaint under such paragraph 
and without otherwise exhausting other administrative rem-
edies. 
"(4) PENDING NATIONAL COVERAGE DETERMINATIONS.— 
"(A) IN GENERAL.—In the event the Secretary has not 
issued a national coverage or noncoverage determination 
with respect to a particular type or class of items or serv-
ices, an aggrieved person (as described in paragraph (5)) 
may submit to the Secretary a request to make such a 
determination with respect to such items or services. By 
not later than the end of the 90-day period beginning 
on the date the Secretary receives such a request (notwith-
standing the receipt by the Secretary of new evidence (if 
any) during such 90-day period), the Secretary shall take 
one of the following actions: 
"(i) Issue a national coverage determination, with 
or without limitations. 
"(ii) Issue a national noncoverage determination, 
"(iii) Issue a determination that no national cov-
erage or noncoverage determination is appropriate as 
of the end of such 90-day period with respect to 
national coverage of such items or services. 
"(iv) Issue a notice that states that the Secretary 
has not completed a review of the request for a national 
coverage determination and that includes an identifica-
tion of the remaining steps in the Secretary's review 
process and a deadline by which the Secretary will 
complete the review and take an action described in 
subclause (I), (II), or (III). 
"(B) DEEMED ACTION BY THE SECRETARY.—In the case 
of an action described in clause (i)(IV), if the Secretary 
fails to take an action referred to in such clause by the 
deadline specified by the Secretary under such clause, then 
the Secretary is deemed to have taken an action described 
in clause (i)(III) as of the deadline. 
"(C) EXPLANATION OF DETERMINATION.—^When issuing 
a determination under clause (i), the Secretary shall include 
an explanation of the basis for the determination. An action 
taken under clause (i) (other than subclause (IV)) is deemed 
to be a national coverage determination for purposes of 
review under subparagraph (A). 
"(5) STANDING.—^An action under this subsection seeking 
review of a national coverage determination or local coverage 
determination may be initiated only by individuals entitled 
to benefits under part A, or enrolled under part B, or both, 
who are in need of the items or services that are the subject 
of the coverage determination. 
"(6) PUBLICATION ON THE INTERNET OF DECISIONS OF HEAR-
INGS OF THE SECRETARY.—Each decision of a hearing by the 
Secretary with respect to a national coverage determination 
shall be made public, and the Secretary shall publish each 
decision on the Medicare Internet site of the Department of 
Health and Human Services. The Secretary shall remove from 
such decision any information that would identify any individ-
ual, provider of services, or supplier. 
114 STAT. 2763A-546 
PUBLIC LAW 106-554—APPENDIX F 
"(7) ANNUAL REPORT ON NATIONAL COVERAGE DETERMINA-
TIONS.— 
"(A) IN GENERAL.—^Not later than December 1 of each 
year, beginning in 2001, the Secretary shall submit to 
Congress a report that sets forth a detailed compilation 
of the actual time periods that were necessary to complete 
and fully implement national coverage determinations that 
were made in the previous fiscal year for items, services, 
or medical devices not previously covered as a benefit under 
this title, including, with respect to each new item, service, 
or medical device, a statement of the time taken by the 
Secretary to make and implement the necessary coverage, 
coding, and payment determinations, including the time 
taken to complete each significant step in the process of 
making and implementing such determinations. 
"(B) PUBLICATION OF REPORTS ON THE INTERNET.—The 
Secretary shall publish each report submitted under clause 
(i) on the medicare Internet site of the Department of 
Health and Human Services. 
"(8) CONSTRUCTION.—Nothing in this subsection shall be 
construed as permitting administrative or judicial review pursu-
ant to this section insofar as such review is explicitly prohibited 
or restricted under another provision of law.". 
(b) ESTABLISHMENT OF A PROCESS FOR COVERAGE DETERMINA-
TIONS.—Section 1862(a) (42 U.S.C. 1395y(a)) is amended by adding 
at the end the following new sentence: "In making a nation^ 
coverage determination (as defined in paragraph (1)(B) of section 
1869(f)) the Secretary shall ensure that the public is afforded 
notice and opportunity to comment prior to implementation by 
the Secretary of the determination; meetings of advisory committees 
established under section 1114(f) with respect to the determination 
are made on the record; in making the determination, the Secretary 
has considered applicable information (including clinical experience 
and medical, technical, and scientific evidence) with respect to 
the subject matter of the determination; and in the determination, 
provide a clear statement of the basis for the determination (includ-
ing responses to comments received from the public), the assump-
tions underlying that basis, and make available to the public the 
data (other than proprietary data) considered in making the deter-
mination.". 
(c) IMPROVEMENTS TO THE MEDICARE ADVISORY COMMITTEE 
PROCESS.—Section 1114 (42 U.S.C. 1314) is amended by adding 
at the end the following new subsection: 
"(i)(l) Any advisory committee appointed under subsection (f) 
to advise the Secretary 6n matters relating to the interpretation, 
application, or implementation of section 1862(a)(1) shall assure 
the full participation of a nonvoting member in the deliberations 
of the advisory committee, and shall provide such nonvoting member 
access to all information and data made available to voting members 
of the advisory committee, other than information that— 
"(A) is exempt from disclosure pursuant to subsection (a) 
of section 552 of title 5, United States Code, by reason of 
subsection (b)(4) of such section (relating to trade secrets); 
or 
"(B) the Secretary determines would present a conflict of 
interest relating to such nonvoting member. 
PUBLIC LAW 106-554-APPENDIX F 
114 STAT. 2763A-547 
"(2) If an advisory committee described in paragraph (1) 
organizes into panels of experts according to types of items or 
services considered by the advisory committee, any such panel 
of experts may report any recommendation with respect to such 
items or services directly to the Secretary without the prior approval 
of the advisory committee or an executive committee thereof". 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply with respect to— 
(1) a review of any national or local coverage determination 
filed, 
(2) a request to make such a determination made, and 
(3) a national coverage determination made, 
on or after October 1, 2001. 
Subtitle D—Improving Access to New 
Technologies 
SEC. 531. REIMBURSEMENT IMPROVEMENTS FOR NEW CLINICAL LAB-
ORATORY TESTS AND DURABLE MEDICAL EQUIPMENT. 
(a) 
PAYMENT RULE FOR NEW LABORATORY TESTS.—Section 
1833(h)(4)(B)(viii) (42 U.S.C. 13951(h)(4)(B)(viii)) is amended by 
inserting before the period at the end the following: "(or 100 percent 
of such median in the case of a clinical diagnostic laboratory test 
performed on or after January 1, 2001, that the Secretary deter-
mines is a new test for which no limitation amount has previously 
been established under this subparagraph)". 
(b) ESTABLISHMENT OF CODING AND PAYMENT PROCEDURES FOR 
NEW CLINICAL DIAGNOSTIC LABORATORY TESTS AND OTHER ITEMS 
ON A FEE SCHEDULE.—^Not later than 1 year after the date of 
the enactment of this Act, the Secretary of Health and Human 
Services shall establish procedures for coding £ind payment deter-
minations for the categories of new clinical diagnostic laboratory 
tests and new durable medical equipment luider part B of title 
XVIII of the Social Security Act that permit public consultation 
in a manner consistent with the procedures established for 
implementing coding modifications for ICD-9-CM. 
(c) REPORT ON PROCEDURES USED FOR ADVANCED, IMPROVED 
TECHNOLOGIES.—Not later than 1 year after the date of the enact-
ment of this Act, the Secretary of Health and Human Services 
shall submit to Congress a report that identifies the specific proce-
dures used by the Secretary under part B of title XVIII of the 
Social Security Act to adjust payments for clinical diagnostic labora-
tory tests and durable medical equipment which are classified to 
existing codes where, because of an advance in technology with 
respect to the test or equipment, there has been a significant 
increase or decrease in the resources used in the test or in the 
manufacture of the equipment, and there has been a significant 
improvement in the performance of the test or equipment. The 
report shall include such recommendations for changes in law as 
may be necessary to assure fair and appropriate payment levels 
under such part for such improved tests and equipment as reflects 
increased costs necessary to produce improved results. 
SEC. 532. RETENTION OF HCPCS LEVEL ID CODES. 
(a) IN GENERAL.—^The Secretary of Health and Human Services 
shall maintain and continue the use of level III codes of the HCPCS 
114 STAT. 2763A-548 
PUBLIC LAW 106-554—APPENDIX F 
coding system (as such system was in effect on August 16, 2000) 
through December 31, 2003, and shall make such codes available 
to the public. 
(b) DEFINITION.—^For purposes of this section, the term "HCPCS 
Level III codes" means the alphanumeric codes for local use under 
the Health Care Financing Administration Common Procedure Cod-
ing System (HCPCS). 
SEC. 533. RECOGNITION OF NEW MEDICAL TECHNOLOGIES UNDER 
INPATIENT HOSPITAL PPS. 
(a) 
EXPEDITING RECOGNITION OF NEW TECHNOLOGIES INTO 
INPATIENT PPS CODING SYSTEM.— 
(1) REPORT.—Not later than April 1, 2001, the Secretary 
of Health and Human Services shall submit to Congress a 
report on methods of expeditiously incorporating new medical 
services and technologies into the clinical coding system used 
with respect to pajnnent for inpatient hospital services fur-
nished under the medicare program under title XVIII of the 
Social Security Act, together with a detailed description of 
the Secretary's preferred methods to achieve this purpose. 
(2) IMPLEMENTATION.—^Not later than October 1, 2001, the 
Secretary shall implement the preferred methods described in 
the report transmitted pursuant to paragraph (1). 
(b) ENSURING APPROPRIATE PAYMENTS FOR HOSPITALS INCOR-
PORATING NEW MEDICAL SERVICES AND TECHNOLOGIES.— 
(1) ESTABLISHMENT OF MECHANISM.—Section 1886(d)(5) (42 
U.S.C. 1395ww(d)(5)) is amended by adding at the end the 
following new subparagraphs: 
"(K)(i) Effective for discharges beginning on or after October 
1, 2001, the Secretary shall establish a mechanism to recognize 
the costs of new medical services and technologies under the pay-
ment system established under this subsection. Such mechanism 
shall be established after notice and opportunity for public comment 
(in the publications required by subsection (e)(5) for a fiscal year 
or otherwise). 
"(ii) The mechanism established pursuant to clause (i) shall— 
"(I) apply to a new medical service or technology if, based 
on the estimated costs incurred with respect to discharges 
involving such service or technology, the DRG prospective pay-
ment rate otherwise applicable to such discharges under this 
subsection is inadequate; 
"(II) provide for the collection of data with respect to the 
costs of a new medical service or technology described in sub-
clause (I) for a period of not less than two years and not 
more than three years beginning on the date on which an 
inpatient hospital code is issued with respect to the service 
or technology; 
"(III) subject to paragraph (4)(C)(iii), provide for additional 
payment to be made under this subsection with respect to 
discharges involving a new medical service or technology 
described in subclause (I) that occur during the period described 
in subclause (II) in an amount that adequately reflects the 
estimated average cost of such service or technology; and 
"(IV) provide that discharges involving such a service or 
technology that occur after the close of the period described 
in subclause (II) will be classified within a new or existing 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-549 
diagnosis-related group with a weighting factor under para-
graph (4)(B) that is derived from cost data collected with respect 
to cUscharges occurring during such period. 
"(iii) For purposes of clause (ii)(II), the term 'inpatient hospital 
code' means any code that is used with respect to inpatient hospital 
services for which payment may be made under this subsection 
and includes an alphanumeric code issued under the International 
Classification of Diseases, 9th Revision, Clinical Modification CICD-
9-CM') and its subsequent revisions. 
"(iv) For purposes of clause (ii)(III), the term 'additional pay-
ment' means, with respect to a discharge for a new medical service 
or technology described in clause (iiXD, an amount that exceeds 
the prospective payment rate otherwise applicable under this sub-
section to discharges involving such service or technology that would 
be made but for this subparagraph. 
"(v) The requirement imder clause (iiXIII) for an additional 
pa5anent may be satisfied by means of a new-technology group 
(described in subparagraph (L)), an add-on payment, a pajnnent 
adjustment, or any other similar mechanism for increasing the 
amount otherwise payable with respect to a discharge imder this 
subsection. The Secretary may not establish a separate fee schedule 
for such additional pajonent for such services and technologies, 
by utilizing a methodology established under subsection (a) or (h) 
of section 1834 to determine the amount of such additional payment, 
or by other similar mechanisms or methodologies. 
"(vi) For purposes of this subparagraph and subparagraph (L), 
a medical service or technology will be considered a 'new medical 
service or technology* if the service or technology meets criteria 
established by the Secretary after notice and an opportunity for 
public comment. 
"(L)(i) In establishing the mechanism under subparagraph (K), 
the Secretary may establish new-technology groups into which a 
new medical service or technology will be classified if, based on 
the estimated average costs incurred with respect to discharges 
involving such service or technology, the DRG prospective payment 
rate otherwise applicable to such discharges under this subsection 
is inadequate. 
"(ii) Such groups— 
"(I) shall not be based on the costs associated with a 
specific new medical service or technology; but 
"(II) shall, in combination with the applicable standardized 
amounts and the weighting factors assigned to such groups 
under paragraph (4)(B), reflect such cost cohorts as the Sec-
retary determines are appropriate for all new medical services 
and technologies that are likely to be provided as inpatient 
hospital services in a fiscal year. 
"(iii) The methodology for classifying specific hospital discharges 
within a diagnosis-related group under paragraph (4)(A) or a new-
technology group shall provide that a specific hospital discharge 
may not be classified within both a diagnosis-related group and 
a new-technology group.". 
(2) PRIOR CONSULTATION.—The Secretary of Health and 
Human Services shall consult with groups representing hos-
pitals, physicians, and manufacturers of new medical tech-
nologies before publishing the notice of proposed rulemaking 
required by section 1886(d)(5)(K)(i) of the Social Security Act 
(as added by paragraph (1)). 
114 STAT. 2763A-550 
PUBLIC LAW 106-554—APPENDIX F 
(3) CONFORMING AMENDMENT.—Section 1886(d)(4)(C)(i) (42 
U.S.C. 1395ww(d)(4)(C)(i)) is amended by striking "technology," 
and inserting "technology (including a new medical service 
or technology under paragraph (5)(K)),". 
Subtitle E—Other Provisions 
SEC. 541. INCREASE IN REIMBURSEMENT FOR BAD DEBT. 
Section 1861(v)(l)(T) (42 U.S.C. 1395x(v)(l)(T)) is amended— 
(1) in clause (ii), by striking "and" at the end; 
(2) in clause (iii)— 
(A) by striking "during a subsequent fiscal year" and 
inserting "during fiscal year 2000"; and 
(B) by strifing the period at the end and inserting 
", and"; and 
(3) by adding at the end the following new clause: 
"(iv) for cost reporting periods beginning during a subse-
quent fiscal year, by 30 percent of such amount otherwise 
allowable.". 
SEC. 542. TREATMENT OF CERTAIN PHYSICIAN PATHOLOGY SERVICES 
UNDER MEDICARE. 
(a) IN GENERAL.—^When an independent laboratory furnishes 
the technical component of a physician pathology service to a fee-
for-service medicare beneficiary who is an inpatient or outpatient 
of a covered hospital, the Secretary of Health and Human Services 
shall treat such component as a service for which payment shall 
be made to the laboratory under section 1848 of the Social Security 
Act (42 U.S.C. 1395W-4) and not as an inpatient hospital service 
for which payment is made to the hospital under section 1886(d) 
of such Act (42 U.S.C. 1395ww(d)) or as an outpatient hospital 
service for which pa3mient is made to the hospital under section 
1833(t) of such Act (42 U.S.C. 13951(t)). 
(b) DEFINITIONS.—^For purposes of this section: 
(1) 
COVERED 
HOSPITAL.—^The term "covered hospital" 
means, with respect to an inpatient or an outpatient, a hospital 
that had an arrangement with an independent laboratory that 
was in effect as of July 22, 1999, under which a laboratory 
furnished the technical component of physician pathology serv-
ices to fee-for-service medicare beneficiaries who were hospital 
inpatients or outpatients, respectively, and submitted claims 
for payment for such component to a medicare carrier (that 
has a contract with the Secretary under section 1842 of the 
Social Security Act, 42 U.S.C. 1395u) and not to such hospital. 
(2) FEE-FOR-SERVICE MEDICARE BENEFICIARY.—The term 
"fee-for-service medicare beneficiary" means an individual 
who— 
(A) is entitled to benefits under part A, or enrolled 
under part B, or both, of such title; and 
(B) is not enrolled in any of the following: 
(i) A Medicare+Choice plan under part C of such 
title. 
(ii) A plan offered by an eligible organization under 
section 1876 of such Act (42 U.S.C. 1395mm). 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-551 
(iii) A program of all-inclusive care for the elderly 
(PACE) under section 1894 of such Act (42 U.S.C. 
1395eee). 
(iv) A social health maintenance organization 
(SHMO) demonstration project established under sec-
tion 4018(b) of the Omnibus Budget Reconciliation Act 
of 1987 (Public Law 100-203). 
(c) EFFECTIVE DATE.—This section shall apply to services fur-
nished during the 2-year period beginning on January 1, 2001. 
(d) GAO REPORT.— 
(1) STUDY.—The Comptroller General of the United States 
shall conduct a study of the effects of the previous provisions 
of this section on hospitals and laboratories and access of fee-
for-service medicare beneficiaries to the technical component 
of physician pathology services. 
(2) REPORT.—Not later than April 1, 2002, the Comptroller 
General shall submit to Congress a report on such study. The 
report shall include recommendations about whether such 
provisions should be extended after the end of the period speci-
fied in subsection (c) for either or both inpatient and outpatient 
hospital services, and whether the provisions should be 
extended to other hospitals. 
SEC. 543. EXTENSION OF ADVISORY OPINION AUTHORITY. 
Section 1128D(b)(6) (42 U.S.C. 1320a-7d(b)(6)) is amended by 
striking "and before the date which is 4 years after such date 
of enactment". 
SEC. 
544. 
CHANGE 
IN 
ANNUAL 
MEDPAC 
REPORTING. 
(a) REVISION OF DEADLINES FOR SUBMISSION OF REPORTS.— 
(1) IN GENERAL.—Section 1805(b)(1)(D) (42 U.S.C. 1395b-
6(b)(1)(D)) is amended by striking "June 1 of each year (begin-
ning with 1998)," and inserting "June 15 of each year,". 
(2) EFFECTIVE DATE.—^The amendment made by paragraph 
(1) shall apply beginning with 2001. 
(b) REQUIREMENT FOR ON THE RECORD VOTES ON RECOMMENDA-
TIONS.—Section 1805(b) (42 U.S.C. 1395b-6(b)) is amended by add-
ing at the end the following new paragraph: 
"(7) VOTING AND REPORTING REQUIREMENTS.—^With respect 
to each recommendation contained in a report submitted under 
paragraph (1), each member of the Commission shall vote on 
the recommendation, and the Commission shall include, by 
member, the results of that vote in the report containing the 
recommendation.". 
SEC. 545. DEVELOPMENT OF PATIENT ASSESSMENT INSTRUMENTS. 
(a) DEVELOPMENT.— 
(1) IN GENERAL.—Not later than January 1, 2005, the Sec-
retary of Health and Human Services shall submit to the 
Committee on Ways and Means and the Committee on Com-
merce of the House of Representatives and the Committee 
on Finance of the Senate a report on the development of stand-
ard instruments for the assessment of the health and functional 
status of patients, for whom items and services described in 
subsection (b) are furnished, and include in the report a rec-
ommendation on the use of such standard instruments for 
pa3anent purposes. 
114 STAT. 2763A-552 
PUBLIC LAW 106-554—APPENDIX F 
(2) DESIGN FOR COMPARISON OF COMMON ELEMENTS.—The 
Secretary shall design such standard instruments in a manner 
such that— 
(A) elements that are common to the items and services 
described in subsection (b) may be readily comparable and 
are statistically compatible; 
(B) only elements necessary to meet program objectives 
are collected; and 
(C) the standard instruments supersede any other 
assessment instrument used before that date. 
(3) 
CONSULTATION.—In 
developing 
an 
assessment 
instrument under paragraph (1), the Secretary shall consult 
with the Medicare Payment Advisory Commission, the Agency 
for Healthcare Research and Quality, and qualified organiza-
tions representing providers of services and suppliers under 
title XVIII. 
(b) DESCRIPTION OF SERVICES.—For purposes of subsection (a), 
items and services described in this subsection are those items 
and services furnished to individuals entitled to benefits under 
part A, or enrolled under part B, or both of title XVIII of the 
Social Security Act for which payment is made under such title, 
and include the following: 
(1) Inpatient and outpatient hospital services. 
(2) Inpatient and outpatient rehabilitation services. 
(3) Covered skilled nursing facility services. 
(4) Home health services. 
(5) Physical or occupational therapy or speech-language 
pathology services. 
(6) Items and services furnished to such individuals deter-
mined to have end stage renal disease. 
(7) Partial hospitalization services and other mental health 
services. 
(8) Any other service for which payment is made under 
such title as the Secretary determines to be appropriate. 
SEC. 546. GAG REPORT ON IMPACT OF THE EMERGENCY MEDICAL 
TREATMENT AND ACTIVE LABOR ACT (EMTALA) ON HOS-
PITAL EMERGENCY DEPARTMENTS. 
(a) REPORT.—^The Comptroller General of the United States 
shall submit a report to the Committee on Commerce and the 
Committee on Ways and Means of the House of Representatives 
and the Committee on Finance of the Senate by May 1, 2001, 
on the effect of the Emergency Medical Treatment and Active 
Labor Act on hospitals, emergency physicians, and physicians cover-
ing emergency department call throughout the United States. 
(b) REPORT REQUIREMENTS.—The report should evaluate— 
(1) the extent to which hospitals, emergency physicians, 
and physicians covering emergency department call provide 
uncompensated services in relation to the requirements of 
EMTALA; 
(2) the extent to which the regulatory requirements and 
enforcement of EMTALA have expanded beyond the legisla-
tion's original intent; 
(3) estimates for the total dollar amount of EMTALA-
related care uncompensated costs to emergency physicians, 
physicians covering emergency department caJl, hospital emer-
gency departments, and other hospital services; 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-553 
(4) the extent to which different portions of the United 
States may be experiencing different levels of uncompensated 
EMTALA-related care; 
(5) the extent to which EMTALA would be classified as 
an unfunded mandate if it were enacted today; 
(6) the extent to which States have programs to provide 
financial support for such uncompensated care; 
(7) possible sources of funds, including medicare hospital 
bad debt accounts, that are available to hospitals to assist 
with the cost of such uncompensated care; and 
(8) the financial strain that illegal immigration populations, 
the uninsured, and the underinsured place on hospital emer-
gency departments, other hospital services, emergency physi-
cians, and physicians covering emergency department call. 
(c) DEFINITION.—In this section, the terms "Emergency Medical 
Treatment and Active Labor Act" and "EMTALA" mean section 
1867 of the Social Security Act (42 U.S.C. 1395dd). 
SEC. 547. CLARIFICATION OF APPLICATION OF TEMPORARY PAYMENT 
INCREASES FOR 2001. 
(a) INPATIENT HOSPITAL SERVICES.—^The pa3nnent increase pro-
vided under the following sections shall not apply to discharges 
occurring after fiscal year 2001 and shall not be taken into account 
in calculating the payment amounts applicable for discharges occur-
ring after such fiscal year: 
(1) Section 301(b)(2)(A) (relating to acute care hospital pay-
ment update). 
(2) Section 302(b) (relating to IME percentage adjustment). 
(3) Section 303(b)(2) (relating to DSH payments). 
(b) 
SKILLED 
NURSING 
FACILITY 
SERVICES.—The 
payment 
increase provided under section 311(b)(2) (relating to covered skilled 
nursing facility services) shall not apply to services furnished after 
fiscal year 20()1 and shall not be taken into account in calculating 
the payment amounts applicable for services furnished after such 
fiscal year. 
(c) HOME HEALTH SERVICES.— 
(1) 
TRANSITIONAL ALLOWANCE FOR FULL MARKETBASKET 
INCREASE.—The pa3nnent increase provided under section 
502(b)(1)(B) shall not apply to episodes and visits ending after 
fiscal year 2001 and shall not be taken into account in calculat-
ing the payment amounts applicable for subsequent episodes 
and visits. 
(2) TEMPORARY INCREASE FOR RURAL HOME HEALTH SERV-
ICES.—The payment increase provided under section 508(a) for 
the period beginning on April 1, 2001, and ending on September 
30, 2002, shall not apply to episodes and visits ending after 
such period, and shall not be taken into account in calculating 
the payment amounts applicable for episodes and visits occur-
ring after such period. 
(d) CALENDAR YEAR 2001 PROVISIONS.—The payment increase 
provided under the following sections shall not apply after calendar 
year 2001 and shall not be tsiken into account in calculating the 
payment amounts applicable for items and services furnished after 
such year: 
(1) Section 401(c)(2) (relating to covered OPD services). 
(2) Section 422(e)(2) (relating to renal dialysis services 
paid for on a composite rate basis). 
114 STAT. 2763A-554 
PUBLIC LAW 106-554—APPENDIX F 
(3) Section 423(a)(2)(B) (relating to ambulance services). 
(4) Section 425(b)(2) (relating to durable medical equip-
ment). 
(5) Section 426(b)(2) (relating to prosthetic devices and 
orthotics and prosthetics). 
TITLE VI—PROVISIONS RELATING TO 
PART C (MEDICARE+CHOICE PRO-
GRAM) AND OTHER MEDICARE MAN-
AGED CARE PROVISIONS 
Subtitle A—Medicare+Choice Payment 
Reforms 
SEC. 601. INCREASE IN MINIMUM PAYMENT AMOUNT. 
(a) IN GENERAL.—Section 1853(c)(1)(B) (42 U.S.C. 1395w-
23(c)(1)(B)) is amended— 
(1) by redesignating clause (ii) as clause (iv); 
(2) by inserting after clause (i) the following new clauses: 
"(ii) For 1999 and 2000, the minimum amount 
determined under clause (i) or this clause, respectively, 
for the preceding year, increased by the national per 
capita Medicare+Choice growth percentage described 
in paragraph (6)(A) applicable to 1999 or 2000, respec-
tively. 
"(iii)(I) Subject to subclause (II), for 2001, for any 
area in a Metropolitan Statistical Area with a popu-
lation of more than 250,000, $525, and for any other 
area $475. 
"(II) In the case of an area outside the 50 States 
and the District of Columbia, the amount specified 
in this clause shall not exceed 120 percent of the 
amount determined under clause (ii) for such area 
for 2000."; and 
(3) in clause (iv), as so redesignated— 
(A) by striking "a succeeding year" and inserting "2002 
and each succeeding year"; and 
(B) by striking "clause (i)" and inserting "clause (iii)". 
(b) SPECIAL RULE FOR JANUARY AND FEBRUARY OF 2001.— 
(1) IN GENERAL.—Notwithstanding the amendments made 
by subsection (a), for purposes of making payments under sec-
tion 1853 of the Social Security Act (42 U.S.C. 1395w-23) 
for January and February 2001, the annual Medicare+Choice 
capitation rate for a Medicare+Choice pa5mrient area shall be 
calculated, and the excess amount under section 1854(f)(1)(B) 
of such Act (42 U.S.C. 1395w-24(f )(1)(B)) shall be determined, 
as if such amendments had not been enacted. 
(2) CONSTRUCTION.—^Paragraph (1) shall not be taken into 
account in computing such capitation rate for 2002 and subse-
quent years. 
SEC. 602. INCREASE IN MINIMUM PERCENTAGE INCREASE. 
(a) IN GENERAL.-^ection 1853(c)(1)(C) (42 U.S.C. 1395w-
23(c)(1)(C)) is amended— 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-555 
(1) by redesignating clause (ii) as clause (iv); 
(2) by inserting after clause (i) the following new clauses: 
"(ii) For 1999 and 2000, 102 percent of the annual 
Medicare+Choice capitation rate under this paragraph 
for the area for the previous year. 
"(iii) For 2001, 103 percent 
of the 
annual 
Medicare+Choice capitation rate under this paragraph 
for the area for 2000."; and 
(3) in clause (iv), as so redesignated, by striking "a subse-
quent year" and inserting "2002 and each succeeding year". 
(b) APPLICATION OF SPECIAL RULE FOR JANUARY AND FEBRUARY 
OF 2001.—^The provisions of section 601(b) shall apply with respect 
to the amendments made by subsection (a) in the same manner 
as they apply to the amendments made by section 601(a). 
SEC. 603. PHASE-IN OF RISK ADJUSTMENT. 
Section 
1853(a)(3)(C) 
(42 
U.S.C. 
1395w-23(a)(3)(C)) 
is 
amended— 
(1) in clause (ii)— 
(A) in subclause (I), by striking "and 2001" and insert-
ing "and each succeeding year through 2003" and by strik-
ing "and" at the end; and 
(B) by striking subclause (II) and inserting the follow-
ing new subclauses: 
"(II) 30 percent of such capitation rate in 2004; 
"(III) 50 percent of such capitation rate in 
2005; 
"(IV) 75 percent of such capitation rate in 
2006; and 
"(V) 100 percent of such capitation rate in 
2007 and succeeding years."; and 
(2) by adding at the end the following new clause: 
"(iii) DATA FOR RISK ADJUSTMENT METHODOLOGY.— 
Such risk adjustment methodology for 2004 and each 
succeeding year, shsill be based on data from inpatient 
hospital and ambulatory settings.". 
SEC. 604. TRANSITION TO REVISED MEDICARE+CHOICE PAYMENT 
RATES. 
(a) ANNOUNCEMENT OF REVISED MEDICARE+CHOICE PAYMENT 
RATES.—^Within 2 weeks after the date of the enactment of this 
Act, the Secretary of Health sind Human Services shall determine, 
and shall announce (in a manner intended to provide notice to 
interested parties) Medicare+Choice capitation rates under section 
1853 of the Social Security Act (42 U.S.C. 1395w-23) for 2001, 
revised in accordance with the provisions of this Act. 
(b) REENTRY INTO PROGRAM PERMITTED FOR MEDICARE+CHOICE 
PROGRAMS.—A Medicare+Choice organization that provided notice 
to the Secretary of Health and Human Services before the date 
of the enactment of this Act that it was terminating its contract 
under part C of title XVIII of the Social Security Act or was 
reducing the service area of a Medicare+Choice plan offered under 
such part shall be permitted to continue participation under such 
part, or to maintain the service area of such plan, for 2001 if 
it submits the Secretary with the information described in section 
1854(a)(1) of the Social Security Act (42 U.S.C. 1395w-24(a)(l)) 
within 2 weeks after the date revised rates are annoimced by 
the Secretary under subsection (a). 
114 STAT. 2763A-556 
PUBLIC LAW 106-554—APPENDIX F 
(c) REVISED SUBMISSION OF PROPOSED PREMIUMS AND RELATED 
INFORMATION.—If— 
(1) a Medicare+Choice organization provided notice to the 
Secretary of Health and Human Services as of July 3, 2000, 
that it was renewing its contract under part C of title XVIII 
of the Social Security Act for all or part of the service area 
or areas served under its current contract, and 
(2) any part of the service area or areas addressed in 
such 
notice 
includes 
a 
payment 
area 
for 
which 
the 
Medicare+Choice capitation rate under section 1853(c) of such 
Act (42 U.S.C. 1395w-23(c)) for 2001, as determined under 
subsection (a), is higher than the rate previously determined 
for such year, 
such organization shall revise its submission of the information 
described in section 1854(a)(1) of the Social Security Act (42 U.S.C. 
1395w-24(a)(l)), and shall submit such revised information to the 
Secretary, within 2 weeks after the date revised rates are 
announced by the Secretary under subsection (a). In making such 
submission, the organization may only reduce beneficiary premiums, 
reduce beneficiary cost-sharing, enhance benefits, utilize the sta-
bilization fiind described in section 1854(f)(2) of such Act (42 U.S.C. 
1395w-24(f )(2)), or stabilize or enhance beneficiary access to provid-
ers (so long as such stabilization or enhancement does not result 
in increased beneficiary premiums, increased beneficiary cost-shar-
ing, or reduced benefits). 
(d) WAIVER OF LIMITS ON STABILIZATION FuND.^Any regulatory 
provision that limits the proportion of the excess amount that 
can be withheld in such stabilization fund for a contract period 
shall not apply with respect to submissions described in subsections 
(b) and (c). 
(e) DISREGARD OF NEW RATE ANNOUNCEMENT IN APPLYING 
PASS-THROUGH FOR NEW NATIONAL COVERAGE DETERMINATIONS.— 
For purposes of applying section 1852(a)(5) of the Social Security 
Act (42 U.S.C. 1395w-22(a)(5)), the announcement of revised rates 
under subsection (a) shall not be treated as an announcement 
under section 1853(b) of such Act (42 U.S.C. 1395w-23(b)). 
SEC. 
605. REVISION OF PAYMENT RATES FOR ESRD PATIENTS 
ENROLLED IN MEDICARE+CHOICE PLANS. 
(a) IN GENERAL.—Section 1853(a)(1)(B) (42 U.S.C. 1395w-
23(a)(1)(B)) is amended by adding at the end the following: "In 
establishing such rates, the Secretary shall provide for appropriate 
adjustments to increase each rate to reflect the demonstration rate 
(including the risk adjustment methodology associated with such 
rate) of the social health maintenance organization end-stage renal 
disease capitation demonstrations (established by section 2355 of 
the Deficit Reduction Act of 1984, as amended by section 13567(b) 
of the Omnibus Budget Reconciliation Act of 1993), and shall com-
pute such rates by taking into account such factors as renal treat-
ment modality, age, and the underlying cause of the end-stage 
renal disease.". 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
shall apply to payments for months beginning with January 2002. 
(c) PUBLICATION.—Not later than 6 months sifter the date of 
the enactment of this Act, the Secretary of Health and Human 
Services shall publish for public comment a description of the 
appropriate adjustments described in the last sentence of section 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-557 
1853(a)(1)(B) of the Social Security Act (42 U.S.C. 1395w-
23(a)(1)(B)), as added by subsection (a). The Secretary shall publish 
such adjustments in final form by not later than July 1, 2001, 
so that the amendment made by subsection (a) is implemented 
on a timely basis consistent with subsection (b). 
SEC. 606. PERMITTING PREMIUM REDUCTIONS AS ADDITIONAL BENE-
FITS UNDER MEDICARE+CHOICE PLANS. 
(a) IN GENERAL.— 
(1) AUTHORIZATION OF PART B PREMIUM REDUCTIONS.—Sec-
tion 1854(f)(1) (42 U.S.C. 1395w-24(f )(1)) is amended— 
(A) by redesignating subparagraph (E) as subpara-
graph (F); and 
(B) by inserting after subparagraph (D) the following 
new subparagraph: 
"(E) PREMIUM REDUCTIONS.— 
"(i) IN GENERAL.—Subject to clause (ii), as part 
of providing any additional benefits required under 
subparagraph (A), a Medicare+Choice organization 
may elect a reduction in its payments under section 
1853(a)(1)(A) with respect to a Medicare+Choice plan 
and the Secretary shall apply such reduction to reduce 
the premium under section 1839 of each enrollee in 
such plan as provided in section 1840(i). 
"(ii) AMOUNT OF REDUCTION.—The amount of the 
reduction under clause (i) with respect to any enrollee 
,, 
in a Medicare+Choice plan— 
"(I) may not exceed 125 percent of the pre-
mium described under section 1839(a)(3); and 
"(II) shall apply uniformly to each enrollee 
of the Medicare+Choice plan to which such reduc-
tion applies.". 
(2) CONFORMING AMENDMENTS.— 
(A) ADJUSTMENT OF PAYMENTS TO MEDICARE+CHOICE 
ORGANIZATIONS.—Section 1853(a)(1)(A) (42 U.S.C. 1395w-
23(a)(1)(A)) is amended by inserting "reduced by the 
amount of any reduction elected under section 1854(f)(1)(E) 
and" after "for that area,". 
(B) ADJUSTMENT AND PAYMENT OF PART B PREMIUMS.— 
(i) ADJUSTMENT OF PREMIUMS.—Section 1839(a)(2) 
(42 U.S.C. 1395r(a)(2)) is amended by striking "shall" 
and all that follows and inserting the following: "shall 
be the amount determined under paragraph (3), 
adjusted as required in accordance with subsections 
(b), (c), and (f), and to reflect 80 percent of any reduc-
tion elected under section 1854(f)(1)(E).". 
(ii) 
PAYMENT OF PREMIUMS.—Section 1840 
(42 
U.S.C. 1395s) is amended by adding at the end the 
following new subsection: 
"(i) In the case of an individual enrolled in a Medicare+Choice 
plan, the Secretary shall provide for necessary adjustments of the 
monthly beneficiary premium to reflect 80 percent of any reduction 
elected under section 1854(f)(1)(E). To the extent to which the 
Secretary determines that such an adjustment is appropriate, with 
the concurrence of any agency responsible for the administration 
of such benefits, such premium adjustment may be provided 
114 STAT. 2763A-558 
PUBLIC LAW 106-554-APPENDIX F 
directly, as an adjustment to any social security, railroad retire-
ment, or civil service retirement benefits, or, in the case of an 
individual who receives medical assistance under title XIX for medi-
care costs described in section 1905(p)(3)(A)(ii), as an adjustment 
to the amount otherwise owed by the State for such medical assist-
ance.". 
(C) INFORMATION COMPARING PLAN PREMIUMS UNDER 
PART 
c—Section 
1851(d)(4)(B) 
(42 
U.S.C. 
1395w-
21(d)(4)(B)) is amended— 
(i) by striking "PREMIUMS.—The" and inserting 
"PREMIUMS.— 
"(i) IN GENERAL.—The"; and 
(ii) by adding at the end the following new clause: 
"(ii) REDUCTIONS.—The reduction in part B pre-
miums, if any.". 
(D) TREATMENT OF REDUCTION FOR PURPOSES OF DETER-
MINING GOVERNMENT CONTRIBUTION UNDER PART B.—Sec-
tion 1844 (42 U.S.C. 1395w) is amended by adding at 
the end the following new subsection: 
"(c) The Secretary shall determine the Government contribution 
under subparagraphs (A) and (B) of subsection (aXD without regard 
to any premium reduction resulting from an election under section 
1854(f)(1)(E).". 
(b) EFFECTIVE DATE.—^The amendments made by subsection 
(a) shall apply to years beginning with 2003. 
SEC. 607. FULL IMPLEMENTATION OF RISK ADJUSTMENT FOR CONGES-
TIVE HEART FAILURE ENROLLEES FOR 2001. 
(a) IN GENERAL.—Section 1853(a)(3)(C) (42 U.S.C. 1395w-
23(a)(3)(C)) is amended— 
(1) in clause (ii), by striking "Such risk adjustment" and 
inserting "Except as provided in clause (iii), such risk adjust-
ment"; and 
(2) by adding at the end the following new clause: 
"(iii) FULL IMPLEMENTATION OF RISK ADJUSTMENT 
FOR CONGESTIVE HEART FAILURE ENROLLEES FOR 2001.— 
"(I) EXEMPTION FROM PHASE-IN.—Subject to 
subclause (II), the Secretary shall fully implement 
the risk adjustment methodology described in 
clause (i) with respect to each individual who has 
had a qualifying congestive heart failure inpatient 
diagnosis (as determined by the Secretary under 
such risk adjustment methodology) during the 
period beginning on July 1, 1999, and ending on 
June 30, 2000, and who is enrolled in a coordinated 
care plan that is the only coordinated care plan 
offered on January 1, 2001, in the service area 
of the individual. 
"(II) PERIOD OF APPLICATION.—Subclause (I) 
shall only apply during the 1-year period beginning 
on January 1,2001.". 
(b) EXCLUSION FROM DETERMINATION OF THE BUDGET NEUTRAL-
ITY FACTOR.—Section 1853(c)(5) (42 U.S.C. 1395w-23(c)(5)) is 
amended by striking "subsection (i)" and inserting "subsections 
(a)(3)(C)(iii)and(i)". 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-559 
SEC. 608. EXPANSION OF APPLICATION OF MEDICARE+CHOICE NEW 
ENTRY BONUS. 
(a) IN GENERAL.—Section 1853(i)(l) (42 U.S.C. 1395w-23(i)(l)) 
is amended in the matter preceding subparagraph (A) by inserting 
", or filed notice with the Secretary as of October 3, 2000, that 
they will not be offering such a plan as of January 1, 2001" after 
"January 1, 2000". 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
shall apply as if included in the enactment of BBRA. 
SEC. 609. REPORT ON INCLUSION OF CERTAIN COSTS OF THE DEPART-
MENT OF VETERANS AFFAIRS AND MILITARY FACILITY 
SERVICES IN CALCULATING MEDICARE+CHOICE PAY-
MENT RATES. 
The Secretary of Health and Human Services shall report to 
Congress by not later than January 1, 2003, on a method to phase-
in the costs of military facility services furnished by the Department 
of Veterans Affairs, and the costs of military facility services fur-
nished by the Department of Defense, to medicare-eligible bene-
ficiaries in the calculation of an area's Medicare-i-Choice capitation 
payment. Such report shall include on a county-by-county basis— 
(1) the actual or estimated cost of such services to medicare-
eligible beneficiaries; 
(2) the chEinge in Medicare-i-Choice capitation payment 
rates if such costs are included in the calculation of payment 
rates; 
(3) one or more proposals for the implementation of pay-
• ment adjustments to Medicare+Choice plans in counties where 
the payment rate has been affected due to the failure to cal-
culate the cost of such services to medicare-eligible bene-
ficiaries; and 
(4) a system to ensure that when a Medicare+Choice 
enrollee receives covered services through a facility of the 
Department of Veterans Affairs or the Department of Defense 
there is an appropriate payment recovery to the medicare pro-
gram under title XVIII of the Social Security Act. 
Subtitle B—Other Medicare+Choice 
Reforms 
SEC. 611. PAYMENT OF ADDITIONAL AMOUNTS FOR NEW BENEFITS 
COVERED DURING A CONTRACT TERM. 
(a) IN GENERAL.—Section 1853(c)(7) (42 U.S.C. 1395w-23(c)(7)) 
is amended to read as follows: 
"(7) ADJUSTMENT FOR NATIONAL COVERAGE DETERMINATIONS 
AND LEGISLATIVE CHANGES IN BENEFITS.—If the Secretary 
makes a determination with respect to coverage under this 
title or there is a change in benefits required to be provided 
under this part that the Secretary projects will result in a 
significant increase in the costs to Medicare+Choice of providing 
benefits under contracts under this part (for periods after any 
period described in section 1852(a)(5)), the Secretary shall 
adjust appropriately the pajonents to such organizations under 
this part. Such projection and adjustment shall be based on 
an analysis by the Chief Actuary of the Health Care Financing 
114 STAT. 2763A-560 
PUBLIC LAW 106-554—APPENDIX F 
Administration of the actuarial costs associated with the new 
benefits.". 
(b) CONFORMING AMENDMENT.—Section 1852(a)(5) (42 U.S.C. 
1395w-22(a)(5)) is amended— 
(1) in the heading, by inserting "AND LEGISLATIVE CHANGES 
IN BENEFITS" after "NATIONAL COVERAGE DETERMINATIONS"; 
(2) by inserting "or legislative change in benefits required 
to be provided under this part" after "national coverage deter-
mination"; 
(3) in subparagraph (A), by inserting "or legislative change 
in benefits" after "such determination"; 
(4) in subparagraph (B), by inserting "or legislative change" 
after "if such coverage determination"; and 
(5) by adding at the end the following: 
"The projection under the previous sentence shall be based 
on an analysis by the Chief Actuary of the Health Care Financ-
ing Administration of the actuarial costs associated with the 
coverage determination or legislative change in benefits.". 
(c) EFFECTIVE DATE.—The amendments made by this section 
are effective on the date of the enactment of this Act and shall 
apply to national coverage determinations and legislative changes 
in benefits occurring on or after such date. 
SEC. 612. RESTRICTION ON IMPLEMENTATION OF SIGNIFICANT NEW 
REGULATORY REQUIREMENTS MIDYEAR. 
(a) IN GENERAL.—Section 1856(b) (42 U.S.C. 1395w-26(b)) is 
amended by adding at the end the following new paragraph: 
"(4) PROHIBITION OF MIDYEAR IMPLEMENTATION OF SIGNIFI-
CANT NEW REGULATORY REQUIREMENTS.—The Secretary may 
not implement, other than at the beginning of a calendar year, 
regulations under this section that impose new, significant 
regulatory requirements on a Medicare+Choice organization 
or plan.". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
takes effect on the date of the enactment of this Act. 
SEC. 613. TIMELY APPROVAL OF MARKETING MATERIAL THAT FOL-
LOWS MODEL MARKETING LANGUAGE. 
(a) IN GENERAL.—Section 1851(h) (42 U.S.C. 1395w-21(h)) is 
amended— 
(1) in paragraph (1)(A), by inserting "(or 10 days in the 
case described in paragraph (5))" after "45 days"; and 
(2) by adding at the end the following new paragraph: 
"(5) SPECIAL TREATMENT OF MARKETING MATERIAL FOLLOW-
ING MODEL MARKETING LANGUAGE.—In the case of marketing 
material of an organization that uses, without modification, 
proposed model language specified by the Secretary, the period 
specified in paragraph (1)(A) shall be reduced from 45 days 
to 10 days.". 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall apply to marketing material submitted on or adfter January 
1, 2001. 
SEC. 614. AVOIDING DUPLICATIVE REGULATION. 
(a) IN GENERAL.—Section 1856(b)(3)(B) (42 U.S.C. 1395w-
26(b)(3)(B)) is amended— 
(1) in clause (i), by inserting "(including cost-sharing 
requirements)" after "Benefit requirements"; and 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-561 
(2) by adding at the end the following new clause: 
"(iv) Requirements relating to marketing materials 
and summaries and schedules of benefits regarding 
a Medicare+Choice plan.", 
(b) EFFECTIVE DATE.—^The amendments made by subsection 
(a) take effect on the date of the enactment of this Act. 
SEC. 615. ELECTION OF UNIFORM LOCAL COVERAGE POLICY FOR 
MEDICARE+CHOICE PLAN COVERING MULTIPLE LOCAL-
ITIES. 
Section 1852(a)(2) (42 U.S.C. 1395w-22(a)(2)) is amended by 
adding at the end the following new subparagraph: 
"(C) ELECTION OF UNIFORM COVERAGE POLICY.—In the 
case of a Medicare+Choice organization that offers a 
Medicare+Choice plan in an area in which more than one 
local coverage policy is applied with respect to different 
parts of the area, the organization may elect to have the 
local coverage policy for the part of the area that is most 
beneficial to Medicare+Choice enroUees (as identified by 
the Secretary) apply with respect to all Medicare+Choice 
enroUees enrolled in the plan.". 
SEC. 616. ELIMINATING HEALTH DISPARITIES IN MEDICARE+CHOICE 
PROGRAM. 
(a) QUALITY ASSURANCE PROGRAM FOCUS ON RACIAL AND ETH-
NIC MINORITIES.—Subparagraphs (A) and (B) of section 1852(e)(2) 
(42 U.S.C. 1395w-22(e)(2)) are each amended by adding at the 
end the following: 
"Such program shall include a separate focus (with respect 
to all the elements described in this subparagraph) on 
racial and ethnic minorities.". 
(b) REPORT.—Section 1852(e) (42 U.S.C. 1395w-22(e)) is amend-
ed by adding at the end the following new paragraph: 
"(5) REPORT TO CONGRESS.— 
"(A) IN GENERAL.—Not later than 2 years after the 
date of the enactment of this paragraph, and biennially 
thereafter, the Secretary shall submit to Congress a report 
regarding how quality assurance programs conducted under 
this subsection focus on racial and ethnic minorities. 
"(B) CONTENTS OF REPORT.—^Each such report shall 
include the following: 
"(i) A description of the means by which such 
programs focus on such racial and ethnic minorities. 
"(ii) An evaluation of the impact of such programs 
on eliminating health disparities and on improving 
health outcomes, continuity and coordination of care, 
management of chronic conditions, and consumer satis-
faction. 
"(iii) Recommendations on ways to reduce clinical 
outcome disparities among racial and ethnic minori-
ties.". 
SEC. 
617. 
MEDICARE+CHOICE 
PROGRAM 
COMPATIBILITY 
WITH 
EMPLOYER OR UNION GROUP HEALTH PLANS. 
(a) IN GENERAL.—Section 1857 (42 U.S.C. 1395w-27) is amend-
ed by adding at the end the following new subsection: 
114 STAT. 2763A-562 
PUBLIC LAW 106-554—APPENDIX F 
"(i) 
MEDICARE+CHOICE 
PROGRAM 
COMPATIBILITY 
WITH 
EMPLOYER OR UNION GROUP HEALTH PLANS.—To facilitate the offer-
ing 
of 
Medicare+Choice 
plans 
under 
contracts 
between 
Medicare+Choice organizations and employers, labor organizations, 
or the trustees of a fund established by one or more employers 
or labor organizations (or combination thereof) to furnish benefits 
to the entity's employees, former employees (or combination thereof) 
or members or former members (or combination thereof) of the 
labor organizations, the Secretary may waive or modify require-
ments that hinder the design of, the offering of, or the enrollment 
in such Medicare+Choice plans.". 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
shall apply with respect to years beginning with 2001. 
SEC. 618. SPECIAL MEDIGAP ENROLLMENT ANTIDISCRIMINATION 
PROVISION FOR CERTAIN BENEFICIARIES. 
(a) DiSENROLLMENT WINDOW IN ACCORDANCE WiTH BENE-
FICIARY'S 
CIRCUMSTANCE.—Section 
1882(s)(3) 
(42 
U.S.C. 
1395ss(s)(3)) is amended— 
(1) in subparagraph (A), in the matter following clause 
(iii), by striking ", subject to subparagraph (E), seeks to enroll 
under the policy not later than 63 days after the date of 
the termination of enrollment described in such subparagraph" 
and inserting "seeks to enroll under the policy during the 
period specified in subparagraph (E)"; and 
(2) by striking subparagraph (E) and inserting the following 
new subparagraph: 
"(E) For purposes of subparagraph (A), the time period specified 
in this subparagraph is— 
"(i) in the case of an individual described in subparagraph 
(B)(i), the period beginning on the date the individual receives 
a notice of termination or cessation of all supplemental health 
benefits (or, if no such notice is received, notice that a claim 
has been denied because of such a termination or cessation) 
and ending on the date that is 63 days after the applicable 
notice; 
"(ii) in the case of an individual described in clause (ii), 
(iii), (v), or (vi) of subparagraph (B) whose enrollment is termi-
nated involuntarily, the period beginning on the date that 
the individual receives a notice of termination and ending on 
the date that is 63 days after the date the applicable coverage 
is terminated; 
"(iii) in the case of an individual described in subparagraph 
(B)(iv)(I), the period beginning on the earlier of (I) the date 
that the individual receives a notice of termination, a notice 
of the issuer's bankruptcy or insolvency, or other such similar 
notice, if any, and (II) the date that the applicable coverage 
is terminated, and ending on the date that is 63 days after 
the date the coverage is terminated; 
"(iv) in the case of an individual described in clause (ii), 
(iii), (iv)(II), (iv)(III), (v), or (vi) of subparagraph (B) who 
disenrolls voluntarily, the period beginning on the date that 
is 60 days before the effective date of the disenroUment and 
ending on the date that is 63 days after such effective date; 
and 
"(v) in the case of an individual described in subparagraph 
(B) but not described in the preceding provisions of this 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-563 
subparagraph, the period beginning on the effective date of 
the disenroUment and ending on the date that is 63 days 
after such effective date.". 
(b) EXTENDED MEDIGAP ACCESS FOR INTERRUPTED TRIAL PERI-
ODS.—Section 1882(s)(3) (42 U.S.C. 1395ss(s)(3)), as amended by 
subsection (a), is further amended by adding at the end the following 
new subparagraph: 
"(F)(i) Subject to clause (ii), for purposes of this paragraph— 
"(I) in the case of an individual described in subparagraph 
(B)(v) (or deemed to be so described, pursuant to this subpara-
graph) whose enrollment with an organization or provider 
described in subclause (II) of such subparagraph is involuntarily 
terminated within the first 12 months of such enrollment, and 
who, without an intervening enrollment, enrolls with another 
such organization or provider, such subsequent enrollment shall 
be deemed to be an initial enrollment described in such 
subparagraph; and 
"(II) in the case of an individual described in clause (vi) 
of subparagraph (B) (or deemed to be so described, pursuant 
to this subparagraph) whose enrollment with a plsm or in 
a program described in such clause is involuntarily terminated 
within the first 12 months of such enrollment, and who, without 
an intervening enrollment, enrolls in another such plan or 
program, such subsequent enrollment shall be deemed to be 
an initial enrollment described in such clause. 
"(ii) For purposes of clauses (v) and (vi) of subparagraph (B), 
no enrollment of an individual with an organization or provider 
described in clause (v)(II), or with a plan or in a program described 
in clause (vi), may be deemed to be an initial enrollment under 
this clause after the 2-year period beginning on the date on which 
the individual first enrolled with such an organization, provider, 
plan, or program.". 
SEC. 619. RESTORING EFFECTIVE DATE OF ELECTIONS AND CHANGES 
OF ELECTIONS OF MEDICARE+CHOICE PLANS. 
(a) OPEN ENROLLMENT.—Section 1851(f)(2) (42 U.S.C. 1395w-
21(f)(2)) is amended by striking ", except that if such election 
or change is made after the 10th day of any calendar month, 
then the election or change shall not take effect until the first 
day of the second calendar month following the date on which 
the election or change is made". 
(b) EFFECTIVE DATE.—^The amendment made by this section 
shall apply to elections and changes of coverage made on or after 
June 1, 2001. 
SEC. 620. PERMITTING ESRD BENEFICIARIES TO ENROLL IN ANOTHER 
MEDICARE+CHOICE PLAN IF THE PLAN IN WHICH THEY 
ARE ENROLLED IS TERMINATED. 
(a) IN GENERAL.—Section 1851(a)(3)(B) (42 U.S.C. 1395w-
21(a)(3)(B)) is amended by striking "except that" and all that follows 
and inserting the following: "except that— 
"(i) an individual who develops end-stage renal 
disease while enrolled in a Medicare+Choice plan may 
continue to be enrolled in that plan; and 
"(ii) in the case of such an individual who is 
enrolled in a Medicare+Choice plan under clause (i) 
(or subsequently under this clause), if the enrollment 
114 STAT. 2763A-564 
PUBLIC LAW 106-554—APPENDIX F 
is discontinued under circumstances described in sec-
tion 1851(e)(4)(A), then the individual will be treated 
as a 'Medicare+Choice eligible individual' for purposes 
of 
electing 
to 
continue 
enrollment 
in 
another 
Medicare+Choice plan.", 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendment made by subsection (a) 
shall apply to terminations and discontinuations occurring on 
or after the date of the enactment of this Act. 
(2) APPLICATION TO PRIOR PLAN TERMINATIONS.—Clause (ii) 
of section 1851(a)(3)(B) of the Social Security Act (as inserted 
by subsection (a)) shall also apply to individuals whose enroll-
ment in a Medicare+Choice plan was terminated or discon-
tinued after December 31, 1998, and before the date of the 
enactment of this Act. In applying this paragraph, such an 
individual shall be treated, for purposes of part C of title 
XVIII of the Social Security Act, as having discontinued enroll-
ment in such a plan as of the date of the enactment of this 
Act. 
SEC. 621. PROVIDING CHOICE FOR SKILLED NURSING FACILITY SERV-
ICES UNDER THE MEDICARE+CHOICE PROGRAM. 
(a) IN GENERAL.—Section 1852 (42 U.S.C. 1395w-22) is amend-
ed by adding at the end the following new subsection: 
"(1) RETURN TO HOME SKILLED NURSING FACILITIES FOR COV-
ERED POST-HOSPITAL EXTENDED CARE SERVICES.— 
"(1) ENSURING RETURN TO HOME SNF.— 
"(A) IN GENERAL.—In providing coverage of post-hos-
pital extended care services, a Medicare+Choice pl£in shall 
provide for such coverage through a home skilled nursing 
facility if the following conditions are met: 
"(i) ENROLLEE ELECTION.—^The enrollee elects to 
receive such coverage through such facility. 
"(ii) SNF AGREEMENT.—^The facility has a contract 
with the Medicare+Choice organization for the provi-
sion of such services, or the facility agrees to accept 
substantially similar payment under the same terms 
and conditions that apply to similarly situated skilled 
' 
nursing facilities that are under contract with the 
Medicare+Choice organization for the provision of such 
services and through which the enrollee would other-
wise receive such services. 
"(B) 
MANNER 
OF 
PAYMENT 
TO 
HOME 
SNF.—The 
organization shall provide payment to the home skilled 
nursing facility consistent with the contract or the agree-
ment described in subparagraph (A)(ii), as the case may 
be. 
"(2) No LESS FAVORABLE COVERAGE.—The coverage provided 
under paragraph (1) (including scope of services, cost-sharing, 
and other criteria of coverage) shall be no less favorable to 
the enrollee than the coverage that would be provided to the 
enrollee with respect to a skilled nursing facility the post-
hospital extended care services of which are otherwise covered 
under the Medicare+Choice plan. 
"(3) RULE OF CONSTRUCTION.—Nothing in this subsection 
shall be construed to do the following: 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-565 
"(A) To require coverage through a skilled nursing 
facility that is not otherwise qualified to provide benefits 
under part A for medicare beneficiaries not enrolled in 
a Medicare+Choice plan. 
"(B) To prevent a skilled nursing facility from refusing 
to accept, or imposing conditions upon the acceptance of, 
an enrollee for the receipt of post-hospital extended care 
services. 
"(4) DEFINITIONS.—In this subsection: 
"(A) HOME 
SKILLED NURSING FACILITY.—^The term 
'home skilled nursing facility' means, with respect to an 
enrollee who is entitled to receive post-hospital extended 
care services under a Medicare+Choice plan, any of the 
following skilled nursing facilities: 
"(i) SNF RESIDENCE AT TIME OF ADMISSION.—The 
skilled nursing facility in which the enrollee resided 
at the time of admission to the hospital preceding 
the receipt of such post-hospital extended care services. 
"(ii) SNF IN CONTINUING CARE RETIREMENT COMMU-
NITY.—^A skilled nursing facility that is providing such 
services through a continuing care retirement commu-
nity (as defined in subparagraph (B)) which provided 
residence to the enrollee at the time of such admission. 
"(iii) SNF RESIDENCE OF SPOUSE AT TIME OF DIS-
CHARGE.—The skilled nursing facility in which the 
spouse of the enrollee is residing at the time of dis-
charge from such hospital. 
"(B) CONTINUING CARE RETIREMENT COMMUNITY.—The 
term 'continuing care retirement community' means, with 
respect to an enrollee in a Medicare+Choice plan, an 
arrangement under which housing and health-related serv-
ices are provided (or arranged) through an organization 
for the enrollee under an agreement that is effective for 
the life of the enrollee or for a specified period.". 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
shall apply with respect to contracts entered into or renewed on 
or after the date of the enactment of this Act. 
(c) MEDPAC STUDY.— 
(1) STUDY.—The Medicare Payment Advisory Commission 
shall conduct a study analyzing the effects of the amendment 
made by subsection (a) on Medicare+Choice organizations. In 
conducting such study, the Commission shall examine the 
effects (if any) such amendment has had— 
(A) on the scope of additional benefits provided under 
the Medicare+Choice program; 
(B) on the administrative and other costs incurred 
by Medicare+Choice organizations; and 
(C) on the contractual relationships between such 
organizations and skilled nursing facilities. 
(2) REPORT.—Not later than 2 years after the date of the 
enactment of this Act, the Commission shall submit to Congress 
a report on the study conducted under paragraph (1). 
114 STAT. 2763A-566 
PUBLIC LAW 106-554—APPENDIX F 
SEC. 622. PROVIDING FOR ACCOUNTABILITY OF MEDICARE+CHOICE 
PLANS. 
(a) MANDATORY REVIEW OF A C R SUBMISSIONS BY THE CHIEF 
ACTUARY OF THE HEALTH CARE FINANCING ADMINISTRATION.—Sec-
tion 1854(a)(5)(A) (42 U.S.C. 1395w-24(a)(5)(A)) is amended— 
(1) by striking "value" and inserting "values"; and 
(2) by adding at the end the following: "The Chief Actuary 
of the Health Care Financing Administration shall review the 
actuarial assumptions and data used by the Medicare+Choice 
organization with respect to such rates, amounts, and values 
so submitted to determine the appropriateness of such assump-
tions and data.". 
(b) EFFECTIVE DATE.—^The amendments made by subsection 
(a) shall apply to submissions made on or after May 1, 2001. 
SEC. 623. INCREASED CIVIL MONEY PENALTY FOR MEDICARE+CHOICE 
ORGANIZATIONS THAT TERMINATE CONTRACTS MID-
YEAR. 
(a) IN GENERAL.—Section 1857(g)(3) (42 U.S.C. 1395w-27(g)(3)) 
is amended by adding at the end the following new subparagraph: 
"(D) Civil monetary penalties of not more than 
$100,000, or such higher amount as the Secretary may 
establish by regulation, where the finding under subsection 
(c)(2)(A) is based on the organization's termination of its 
contract under this section other than at a time and in 
a manner provided for under subsection (a).". 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
shall apply to terminations occurring after the date of the enactment 
of this Act. 
Subtitle C—Other Managed Care Reforms 
SEC. 631. ONE-YEAR EXTENSION OF SOCIAL HEALTH MAINTENANCE 
ORGANIZATION (SHMO) DEMONSTRATION PROJECT. 
Section 4018(b)(1) of the Omnibus Budget Reconciliation Act 
of 1987, as amended by section 531(a)(1) of BBRA (113 Stat. 150 lA-
388), is amended by striking "18 months" and inserting "30 months". 
SEC. 632. REVISED TERMS AND CONDITIONS FOR EXTENSION OF MEDI-
CARE COMMUNITY NURSING ORGANIZATION (CNO) DEM-
ONSTRATION PROJECT, 
(a) IN GENERAL.—Section 532 of BBRA (113 Stat. 1501A-388) 
is amended— 
(1) in subsection (a), by striking the second sentence; and 
(2) by striking subsection (b) and inserting the following 
new subsection: 
"(b) TERMS AND CONDITIONS.— 
"(1) JANUARY THROUGH SEPTEMBER 2000.—^For the 9-month 
period beginning with January 2000, any such demonstration 
project shall be conducted under the same terms and conditions 
as applied to such demonstration during 1999. 
"(2) OCTOBER 2000 THROUGH DECEMBER 2001.—^For the 15-
month period beginning with October 2000, any such dem-
onstration project shall be conducted under the same terms 
and conditions as applied to such demonstration during 1999, 
except that the following modifications shall apply: 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-567 
"(A) BASIC CAPITATION RATE.—The basic capitation rate 
paid for services covered under the project (other than 
case management services) per enrollee per month and 
furnished during— 
"(i) the period beginning with October 1, 2000, 
and ending with December 31, 2000, shall be deter-
mined by actuarially adjusting the actual capitation 
rate paid for such services in 1999 for inflation, utiliza-
tion, and other changes to the CNO service package, 
and by reducing such adjusted capitation rate by 10 
percent in the case of the demonstration sites located 
in Arizona, Minnesota, and Illinois, and 15 percent 
for the demonstration site located in New York; and 
"(ii) 2001 shall be determined by actuarially 
adjusting the capitation rate determined under clause 
(i) for inflation, utilization, and other changes to the 
CNO service package. 
"(B) 
TARGETED 
CASE 
MANAGEMENT FEE.—Effective 
October 1, 2000— 
"(i) the case management fee per enrollee per 
month for— 
"(I) the period described in subparagraph (A)(i) 
shall be determined by actuarially adjusting the 
case management fee for 1999 for inflation; and 
"(II) 2001 shall be determined by actuarially 
adjusting the amount determined under subclause 
(I) for inflation; and 
"(ii) such case management fee shall be paid only 
for enroUees who are classified as moderately frail 
or frail pursuant to criteria established by the Sec-
retary. 
"(C) 
GREATER 
UNIFORMITY IN CLINICAL FEATURES 
AMONG SITES.—^Each project shall implement for each site— 
"(i) protocols for periodic telephonic contact with 
enrollees based on— 
"(I) the results of such standardized written 
health assessment; and 
"(II) the application of appropriate care plan-
ning approaches; 
"(ii) disease management programs for targeted 
diseases (such as congestive heart failure, arthritis, 
diabetes, and hypertension) that are highly prevalent 
in the enrolled populations; 
"(iii) systems and protocols to track enrollees 
through hospitalizations, including pre-admission plan-
ning, concurrent management during inpatient hos-
pital stays, and post-discharge assessment, planning, 
and follow-up; and 
"(iv) standardized patient educational materials for 
specified diseases and health conditions. 
"(D) QUALITY IMPROVEMENT.—Each project shall imple-
ment at each site once during the 15-month period— 
"(i) enrollee satisfaction surveys; and 
"(ii) reporting on specified quality indicators for 
the enrolled population. 
"(c) EVALUATION.— 
114 STAT. 2763A-568 
PUBLIC LAW 106-554—APPENDIX F 
"(1) PRELIMINARY REPORT.—Not later than July 1, 2001, 
the Secretary of Health and Human Services shall submit 
to the Committees on Ways and Means and Commerce of 
the House of Representatives and the Committee on Finance 
of the Senate a preliminary report that— 
"(A) evaluates such demonstration projects for the 
period beginning July 1, 1997, and ending December 31, 
1999, on a site-specific basis with respect to the impact 
on per beneficiary spending, specific health utilization 
measures, and enrollee satisfaction; and 
"(B) includes a similar evaluation of such projects for 
the portion of the extension period that occurs after 
September 30, 2000. 
"(2) FINAL REPORT.—The Secretary shall submit a final 
report to such Committees on such demonstration projects not 
later than July 1, 2002. Such report shall include the same 
elements as the preliminary report required by paragraph (1), 
but for the period after December 31, 1999. 
"(3) 
METHODOLOGY FOR SPENDING COMPARISONS.—Any 
evaluation of the impact of the demonstration projects on per 
beneficiary spending included in such reports shall include 
a comparison of— 
"(A) data for all individuals who— 
"(i) were enrolled in such demonstration projects 
as of the first day of the period under evaluation; 
and 
"(ii) were enrolled for a minimum of 6 months 
thereafter; with 
"(B) data for a matched sample of individuals who 
are enrolled under part B of title 3^nil of the Social Secu-
rity Act and are not enrolled in such a project, or in 
a Medicare+Choice plan under part C of such title, a plan 
offered by an eligible organization under section 1876 of 
such Act, or a health care prepayment plan under section 
1833(a)(1)(A) of such Act.", 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall be effective as if included in the enactment of section 
532 of BBRA (113 Stat. 1501A-388). 
SEC. 633. EXTENSION OF MEDICARE MUNICIPAL HEALTH SERVICES 
DEMONSTRATION PROJECTS. 
Section 9215(a) of the Consolidated Omnibus Budget Reconcili-
ation Act of 1985 (42 U.S.C. 1395b-l note), as amended by section 
6135 of the Omnibus Budget Reconciliation Act of 1989, section 
13557 of the Omnibus Budget Reconciliation Act of 1993, section 
4017 of BBA, and section 534 of BBRA (113 Stat. 1501A-390), 
is amended by striking "December 31, 2002" and inserting "Decem-
ber 31, 2004". 
SEC, 634, SERVICE AREA EXPANSION FOR MEDICARE COST CON-
TRACTS DURING TRANSITION PERIOD, 
Section 1876(h)(5) (42 U.S.C. 1395mm(h)(5)) is amended— 
(1) by redesignating subparagraph (B) as subparagraph 
(C); and 
(2) by inserting after subparagraph (A), the following new 
subparagraph: 
"(B) Subject to subparagraph (C), the Secretary shall approve 
an application for a modification to a reasonable cost contract 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-569 
under this section in order to expand the service area of such 
contract if— 
"(i) such appHcation is submitted to the Secretary on or 
before September 1, 2003; and 
"(ii) the Secretary determines that the organization with 
the contract continues to meet the requirements appUcable 
to such organizations and contracts under this section.". 
TITLE VII—MEDICAID 
SEC. 701. DSH PAYMENTS. 
(a) MODIFICATIONS TO DSH ALLOTMENTS.— 
(1) 
INCREASED ALLOTMENTS FOR FISCAL YEARS 2001 
AND 
2002.— 
(A) IN GENERAL.—Section 1923(f) (42 U.S.C. 1396r-
4(f)) is amended— 
(i) in paragraph (2), by striking "The DSH allot-
ment" and inserting "Subject to paragraph (4), the 
DSH allotment"; 
(ii) by redesignating paragraph (4) as paragraph 
(6); and 
(iii) by inserting after paragraph (3) the following 
new paragraph: 
"(4) SPECIAL RULE FOR FISCAL YEARS 2001 AND 2002.— 
"(A) IN GENERAL.—Notwithstanding paragraph (2), the 
DSH allotment for any State for— 
"(i) fiscal year 2001, shall be the DSH allotment 
determined under paragraph (2) for fiscal year 2000 
increased, subject to subparagraph (B) and paragraph 
(5), by the percentage change in the consumer price 
index for all urban consumers (all items; U.S. city 
average) for fiscal year 2000; and 
"(ii) fiscal year 2002, shall be the DSH allotment 
determined under clause (i) increased, subject to 
subparagraph (B) and paragraph (5), by the percentage 
change in the consumer price index for all urban 
consumers (all items; U.S. city average) for fiscal year 
2001. 
"(B) LIMITATION.—Subparagraph (B) of paragraph (3) 
shall apply to subparagraph (A) of this paragraph in the 
same manner as that subparagraph (B) applies to para-
graph (3)(A). 
"(C) 
No 
APPLICATION TO ALLOTMENTS AFTER FISCAL 
YEAR 2002.—The DSH allotment for any State for fiscal 
year 2003 or any succeeding fiscal year shall be determined 
under paragraph (3) without regard to the DSH allotments 
determined under subparagraph (A) of this paragraph.". 
(2) SPECLy;. RULE FOR MEDICAID DSH ALLOTMENT FOR 
EXTREMELY 
LOW 
DSH 
STATES.— 
(A) IN GENERAL.—Section 1923(f) (42 U.S.C. 1396r-
4(f)), as amended by paragraph (1), is amended by inserting 
after paragraph (4) the following new paragraph: 
"(5) SPECIAL RULE FOR EXTREMELY LOW DSH STATES.—In 
the case of a State in which the total expenditures under 
the State plan (including Federal and State shares) for dis-
proportionate share hospital adjustments under this section 
79-194 O-00-20:QL3Part5 
114 STAT. 2763A-570 
PUBLIC LAW 106-554—APPENDIX F 
for fiscal year 1999, as reported to the Administrator of the 
Health Care Financing Administration as of August 31, 2000, 
is greater than 0 but less than 1 percent of the State's total 
amount of expenditures under the State plan for medical assist-
ance during the fiscal year, the DSH allotment for fiscal year 
2001 shall be increased to 1 percent of the State's total amount 
of expenditures under such plan for such assistance during 
such fiscal year. In subsequent fiscal years, such increased 
allotment is subject to an increase for inflation as provided 
in paragraph (3)(A).". 
(B) CONFORMING AMENDMENT.—Section 1923(f)(3)(A) 
(42 U.S.C. 1396r-4(f )(3)(A)) is amended by inserting "and 
paragraph (5)" after "subparagraph (B)". 
(3) EFFECTIVE DATE.—The amendments made by para-
graphs (1) and (2) take effect on the date the final regulation 
required under section 705(a) (relating to the application of 
an aggregate upper payment limit test for State medicaid 
spending for inpatient hospital services, outpatient hospital 
services, nursing facility services, intermediate care facility 
services for the mentally retarded, and clinic services provided 
by government facilities that are not State-owned or operated 
facilities) is published in the Federal Register, 
(b) ASSURING IDENTIFICATION OF MEDICAID MANAGED CARE 
PATIENTS.— 
(1) IN GENERAL.—Section 1932 (42 U.S.C. 1396u-2) is 
amended by adding at the end the following new subsection: 
"(g) IDENTIFICATION OF PATIENTS FOR PURPOSES OF MAKING 
DSH PAYMENTS.—^Each contract with a managed care entity under 
section 1903(m) or under section 1905(t)(3) shall require the entity 
either— 
"(1) to report to the State information necessary to deter-
mine the hospital services provided under the contract (and 
the identity of hospitals providing such services) for purposes 
of applying sections 1886(d)(5)(F) and 1923; or 
"(2) to include a sponsorship code in the identification 
card issued to individuals covered under this title in order 
that a hospital may identify a patient as being entitled to 
benefits under this title.". 
(2) CLARIFICATION OF COUNTING MANAGED CARE MEDICAID 
PATIENTS.—Section 1923 (42 U.S.C. 1396r-4) is amended— 
(A) in subsection (a)(2)(D), by inserting after "the 
proportion of low-income and medicaid patients" the follow-
ing: "(including such patients who receive benefits through 
a managed care entity)"; 
(B) in subsection (b)(2), by inserting after "a State 
plan approved under this title in a period" the following: 
"(regardless of whether such patients receive medical 
assistance on a fee-for-service basis or through a managed 
care entity)"; and 
(C) in subsection (b)(3)(A)(i), by inserting after "under 
a State plan under this title" the following: "(regardless 
of whether the services were furnished on a fee-for-service 
basis or through a managed care entity)". 
(3) EFFECTIVE DATES.— 
(A) The amendment made by paragraph (1) shall apply 
to contracts as of January 1, 2001. 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-571 
(B) The amendments made by paragraph (2) shall 
apply to payments made on or after January 1, 2001. 
(c) APPLICATION OF MEDICAID D S H TRANSITION RULE TO PUBLIC 
HOSPITALS IN ALL STATES.— 
(1) IN GENERAL.—During the period described in paragraph 
(3), with respect to a State, section 4721(e) of the Balanced 
Budget Act of 1997 (PubUc Law 105-33; 111 Stat. 514), as 
amended by section 607 of BBRA (113 Stat. 1501A-396), shall 
be applied as though— 
(A) "September 30, 2002" were substituted for "July 
1, 1997" each place it appears; 
(B) "hospitals owned or operated by a State (as defined 
for purposes of title XIX of such Act), or by an instrumental-
ity or a unit of government within a State (as so defined)" 
were substituted for "the State of California"; 
(C) paragraph (3) were redesignated as paragraph (4); 
(D) "and" were omitted from the end of paragraph 
(2); and 
(E) the following new paragraph were inserted after 
paragraph (2): 
"(3) '(as defined in subparagraph (B) but without regard 
to clause (ii) of that subparagraph and subject to subsection 
(d))' were substituted for '(as defined in subparagraph (B))' 
in subparagraph (A) of such section; and". 
(2) SPECIAL RULE.—^With respect to California, section 
4721(e) of the Balanced Budget Act of 1997 (Public Law 105-
33; 111 Stat. 514), as so amended, shall be applied without 
regard to paragraph (1). 
(3) PERIOD DESCRIBED.—The period described in this para-
graph is the period that begins, with respect to a State, on 
the first day of the first State fiscal year that begins after 
September 30, 2002, and ends on the last day of the succeeding 
State fiscal year. 
(4) APPLICATION TO WAIVERS.—With respect to a State 
operating under a waiver of the requirements of title XIX 
of the Social Security Act (42 U.S.C. 1396 et seq.) under section 
1115 of such Act (42 U.S.C. 1315), the amount by which any 
payment adjustment made by the State under title XIX of 
such Act (42 U.S.C. 1396 et seq.), after the application of 
section 4721(e) of the Balanced Budget Act of 1997 under 
paragraph (1) to such State, exceeds the costs of furnishing 
hospital services provided by hospitals described in such section 
shall be fully reflected as an increase in the baseline expendi-
ture limit for such waiver. 
(d) ASSISTANCE FOR CERTAIN PUBLIC HOSPITALS.— 
(1) IN GENERAL.—Beginning with fiscal year 2002, notwith-
standing section 1923(f) of the Social Security Act (42 U.S.C. 
1396r-4(f)) and subject to paragraph (3), with respect to a 
State, payment adjustments made under title XIX of the Social 
Security Act (42 U.S.C. 1396 et seq.) to a hospital described 
in paragraph (2) shall be made without regard to the DSH 
allotment limitation for the State determined under section 
1923(f) of that Act (42 U.S.C. 1396r-4(f)). 
(2) HOSPITAL DESCRIBED.—A hospital is described in this 
paragraph if the hospital— 
(A) is owned or operated by a State (as defined for 
" 
purposes of title XIX of the Social Security Act), or by 
114 STAT. 2763A-572 
PUBLIC LAW 106-554—APPENDIX F 
an instrumentality or a unit of government within a State 
(as so defined); 
(B) as of October 1, 2000— 
(i) is in existence and operating as a hospital 
described in subparagraph (A); and 
(ii) is not receiving disproportionate share hospital 
payments from the State in which it is located under 
title XIX of such Act; and 
(C) has a low-income utilization rate (as defined in 
section 1923(b)(3) of the Social Security Act (42 U.S.C. 
1396r-4(b)(3))) in excess of 65 percent. 
(3) LIMITATION ON EXPENDITURES.— 
(A) IN GENERAL.—^With respect to any fiscal year, the 
aggregate amount of Federal financial participation that 
may be provided for payment adjustments described in 
paragraph (1) for that fiscal year for all States may not 
exceed the amount described in subparagraph (B) for the 
fiscal year. 
(B) AMOUNT DESCRIBED.—^The amount described in this 
subparagraph for a fiscal year is as follows: 
(i) For fiscal year 2002, $15,000,000. 
(ii) For fiscal year 2003, $176,000,000. 
(iii) For fiscal year 2004, $269,000,000. 
(iv) For fiscal year 2005, $330,000,000. 
(v) For fiscal year 2006 and each fiscal year there-
after, $375,000,000. 
(e) DSH PAYMENT ACCOUNTABILITY STANDARDS.—Not later 
than September 30, 2002, the Secretary of Health and Human 
Services shall implement accountability standards to ensure that 
Federal funds provided with respect to disproportionate share hos-
pital adjustments made under section 1923 of the Social Security 
Act (42 U.S.C. 1396r-4) are used to reimburse States and hospitals 
eligible for such payment adjustments for providing uncompensated 
health care to low-income patients and are otherwise made in 
accordance with the requirements of section 1923 of that Act. 
SEC. 702. NEW PROSPECTIVE PAYMENT SYSTEM FOR FEDERALLY-
QUALIFIED HEALTH CENTERS AND RURAL HEALTH CLIN-
ICS. 
(a) IN GENERAL.—Section 1902(a) (42 U.S.C. 1396a(a)) is 
amended— 
(1) in paragraph (13)— 
(A) in subparagraph (A), by adding "and" at the end; 
(B) in subparagraph (B), by striking "and" at the end; 
and 
(C) by striking subparagraph (C); and 
(2) by inserting after paragraph (14) the following new 
paragraph: 
"(15) provide for payment for services described in clause 
(B) or (C) of section 1905(a)(2) under the plan in accordance 
with subsection (aa);". 
(b) NEW PROSPECTIVE PAYMENT SYSTEM.—Section 1902 
(42 
U.S.C. 1396a) is amended by adding at the end the following: 
"(aa) PAYMENT FOR SERVICES PROVIDED BY FEDERALLY-QUALI-
FIED HEALTH CENTERS AND RURAL HEALTH CLINICS.— 
"(1) IN GENERAL.—Beginning with fiscal year 2001 with 
respect to services furnished on or after January 1, 2001, and 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-573 
each succeeding fiscal year, the State plan shall provide for 
pa5niient for services described in section 1905(a)(2)(C) fur-
nished by a Federally-qualified health center and services 
described in section 1905(a)(2)(B) furnished by a rural health 
clinic in accordance with the provisions of this subsection. 
"(2) FISCAL YEAR 2001.—Subject to paragraph (4), for serv-
ices furnished on and after January 1, 2001, during fiscal 
year 2001, the State plan shall provide for payment for such 
services in an amount (calculated on a per visit basis) that 
is equal to 100 percent of the average of the costs of the 
center or clinic of furnishing such services during fiscal years 
1999 and 2000 which are reasonable and related to the cost 
of furnishing such services, or based on such other tests of 
reasonableness as the Secretary prescribes in regulations under 
section 1833(a)(3), or, in the case of services to which such 
regulations do not apply, the same methodology used under 
section 1833(a)(3), adjusted to take into account any increase 
or decrease in the scope of such services furnished by the 
center or clinic during fiscal year 2001. 
"(3) FISCAL YEAR 2002 AND SUCCEEDING FISCAL YEARS.— 
Subject to paragraph (4), for services furnished during fiscal 
year 2002 or a succeeding fiscal year, the State plan shall 
provide for payment for such services in an amount (calculated 
on a per visit basis) that is equal to the amount calculated 
for such services under this subsection for the preceding fiscal 
year— 
"(A) increased by the percentage increase in the MEI 
(as defined in section 1842(i)(3)) applicable to primary care 
services (as defined in section 1842(i)(4)) for that fiscal 
year; and 
"(B) adjusted to take into account any increase or 
decrease in the scope of such services furnished by the 
center or clinic during that fiscal year. 
"(4) ESTABLISHMENT OF INITIAL YEAR PAYMENT AMOUNT FOR 
NEW CENTERS OR CLINICS.—In any case in which an entity 
first qualifies as a Federally-qualified health center or rural 
health clinic after fiscal year 2000, the State plan shall provide 
for payment for services described in section 1905(a)(2)(C) fur-
nished 
by the 
center 
or services 
described 
in 
section 
1905(a)(2)(B) furnished by the clinic in the first fiscal year 
in which the center or clinic so qualifies in an amount (cal-
culated on a per visit basis) that is equal to 100 percent 
of the costs of furnishing such services during such fiscal year 
based on the rates established under this subsection for the 
fiscal year for other such centers or clinics located in the 
same or adjacent area with a similar case load or, in the 
absence of such a center or clinic, in accordance with the 
regulations and methodology referred to in paragraph (2) or 
based on such other tests of reasonableness as the Secretary 
may specify. For each fiscal year following the fiscal year in 
which the entity first qualifies as a Federally-qualified health 
center or rural health clinic, the State plan shall provide for 
the payment amount to be calculated in accordance with para-
graph (3). 
"(5) ADMINISTRATION IN THE CASE OF MANAGED CARE.— 
"(A) IN GENERAL.—In the case of services furnished 
by a Federally-qualified health center or rural health clinic 
114 STAT. 2763A-574 
PUBLIC LAW 106-554—APPENDIX F 
pursuant to a contract between the center or clinic and 
a managed care entity (as defined in section 1932(a)(1)(B)), 
the State plan shall provide for payment to the center 
or clinic by the State of a supplemental payment equal 
to the amount (if any) by which the amount determined 
under paragraphs (2), (3), and (4) of this subsection exceeds 
the amount of the payments provided under the contract. 
"(B) PAYMENT SCHEDULE.—^The supplemental payment 
required under subparagraph (A) shall be made pursuant 
to a payment schedule agreed to by the State £ind the 
Federally-qualified health center or rural health clinic, but 
in no case less frequently than every 4 months. 
"(6) 
ALTERNATIVE 
PAYMENT 
METHODOLOGIES.—^Notwith-
standing any other provision of this section, the State plan 
may provide for payment in any fiscal year to a Federally-
qualified health center for services described in section 
1905(a)(2)(C) or to a rural health clinic for services described 
in section 1905(a)(2)(B) in an amount which is determined 
under an alternative payment methodology that— 
"(A) is agreed to by the State and the center or clinic; 
and 
"(B) results in payment to the center or clinic of an 
amount which is at least equal to the amount otherwise 
required to be paid to the center or clinic under this sec-
tion.". 
(c) CONFORMING AMENDMENTS.— 
(1) Section 4712 of the BBA (Public Law 105-33; 111 Stat. 
508) is amended by striking subsection (c). 
(2) Section 1915(b) (42 U.S.C. 1396n(b)) is amended by 
striking "1902(a)(13)(C)" and inserting "1902(a)(15), 1902(aa),". 
(d) GAG STUDY OF FUTURE REBASING.—The Comptroller Gen-
eral of the United States shall provide for a study on the need 
for, and how to, rebase or refine costs for making payment under 
the medicaid program for services provided by Federally-qualified 
health centers and rural health clinics (as provided under the 
amendments made by this section). The Comptroller General shall 
provide for submittal of a report on such study to Congress by 
not later than 4 years after the date of the enactment of this 
Act. 
(e) EFFECTIVE DATE.—The amendments made by this section 
take effect on Jsmuary 1, 2001, and shall apply to services furnished 
on or after such date. 
SEC. 703. STREAMLINED APPROVAL OF CONTINirED STATE-WmE SEC-
TION 1115 MEDICAID WAIVERS. 
(a) IN GENERAL.—Section 1115 (42 U.S.C. 1315) is amended 
by adding at the end the following new subsection: 
"(f) An application by the chief executive officer of a State 
for an extension of a waiver project the State is operating under 
an extension under subsection (e) (in this subsection referred to 
as the 'waiver project') shall be submitted and approved or dis-
approved in accordance with the following: 
"(1) The application for an extension of the waiver project 
shall be submitted to the Secretary at least 120 days prior 
to the expiration of the current period of the waiver project. 
"(2) Not later than 45 days after the date such application 
is received by the Secretary, the Secretary shall notify the 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-575 
State if the Secretary intends to review the terms and condi-
tions of the waiver project. A failure to provide such notification 
shall be deemed to be an approval of the application. 
"(3) Not later than 45 days after the date a notification 
is made in accordance with paragraph (2), the Secretary shall 
inform the State of proposed changes in the terms and condi-
tions of the waiver project. A failure to provide such information 
shall be deemed to be an approval of the application. 
"(4) During the 30-day period that begins on the date 
information described in paragraph (3) is provided to a State, 
the Secretary shall negotiate revised terms and conditions of 
the waiver project with the State. 
"(5)(A) Not later than 120 days after the date an application 
for an extension of the waiver project is submitted to the 
Secretary (or such later date agreed to by the chief executive 
officer of the State), the Secretary shall— 
"(i) approve the application subject to such modifica-
tions in the terms and conditions— 
"(I) as have been agreed to by the Secretary and 
the State; or 
"(II) in the absence of such agreement, as are 
determined by the Secretary to be reasonable, consist-
ent with the overall objectives of the waiver project, 
and not in violation of applicable law; or 
"(ii) disapprove the application. 
"(B) A failure by the Secretary to approve or disapprove 
an application submitted under this subsection in accordance 
with the requirements of subparagraph (A) shall be deemed 
to be an approval of the application subject to such modifica-
tions in the terms and conditions as have been agreed to 
(if any) by the Secretary and the State. 
"(6) An approval of an application for an extension of 
a waiver project under this subsection shall be for a period 
not to exceed 3 years. 
"(7) An extension of a waiver project under this subsection 
shall be subject to the final reporting and evaluation require-
ments of paragraphs (4) and (5) of subsection (e) (taking into 
account the extension under this subsection with respect to 
any timing requirements imposed under those paragraphs).", 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
shall apply to requests for extensions of demonstration projects 
pending or submitted on or after the date of the enactment of 
this Act. 
SEC. 704. MEDICAID COUNTY-ORGANIZED HEALTH SYSTEMS. 
(a) IN GENERAL.—Section 9517(c)(3)(C) of the Comprehensive 
Omnibus Budget Reconciliation Act of 1985 is amended by striking 
"10 percent" and inserting "14 percent". 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
takes effect on the date of the enactment of this Act. 
SEC. 705. DEADLINE FOR ISSUANCE OF FINAL REGULATION RELATING 
TO MEDICAID UPPER PAYMENT LIMITS. 
(a) IN GENERAL.—Not later than December 31, 2000, the Sec-
retary of Health and Human Services (in this section referred 
to as the "Secretary"), notwithstanding any requirement of the 
Administrative Procedures Act under chapter 5 of title 5, United 
States Code, or any other provision of law, shall issue under sections 
114 STAT. 2763A-576 
PUBLIC LAW 106-554—APPENDIX F 
447.272, 447.304, and 447.321 of title 42, Code of Federal Regula-
tions (and any other section of part 447 of title 42, Code of Federal 
Regulations that the Secretary determines is appropriate), a final 
regulation based on the proposed rule announced on October 5, 
2000, that— 
(1) modifies the upper payment limit test applied to State 
medicaid spending for inpatient hospital services, outpatient 
hospital services, nursing facility services, intermediate care 
facility services for the mentally retarded, and clinic services 
by applying an aggregate upper payment limit to payments 
made to government facilities that are not State-owned or oper-
ated facilities; and 
(2) provides for a transition period in accordance with 
subsection (b). 
(b) TRANSITION PERIOD.— 
(1) IN GENERAL.—^The final regulation required under sub-
section (a) shall provide that, with respect to a State described 
in paragraph (3), the State shall be considered to be in compli-
ance with the final regulation required under subsection (a) 
so long as, for each State fiscal year during the period described 
in paragraph (4), the State reduces payments under a State 
medicaid plan pa5mfient provision or methodology described in 
paragraph (3) (including a payment provision or methodology 
described in that paragraph that was approved under a waiver 
of such plan), or reduces the actual dollar payment levels 
described in paragraph (3)(B), so that the amount of the pay-
ments that would otherwise have been made under such provi-
sion, methodology, or payment levels by the State for any 
State fiscal year during such period is reduced by 15 percent 
in the first such State fiscal year, and by an additional 15 
percent in each of the next 5 State fiscal years. 
(2) REQUIREMENT.—Notwithstsmding paragraph (1), the 
final regulation required under subsection (a) shall provide 
that, for any period (or portion of a period) that occurs on 
or after October 1, 2008, medicaid payments made by a State 
described in paragraph (3) shall comply with such final regula-
tion. 
(3) STATE DESCRIBED.—^A State described in this paragraph 
is a State with a State medicaid plan payment provision or 
methodology (including a payment provision or methodology 
approved under a waiver of such plan) which— 
(A) was approved, deemed to have been approved, or 
was in effect on or before October 1, 1992 (including any 
subsequent amendments or successor provisions or meth-
odologies and whether or not a State plan amendment 
was made to carry out such provision or methodology after 
such date) or under which claims for Federal financial 
participation were filed and paid on or before such date; 
and 
(B) provides for payments that are in excess of the 
upper pa5anent limit test established under the final regu-
lation required under subsection (a) (or which would be 
noncompliant with such final regulation if the actual dollar 
payment levels made under the payment provision or meth-
odology in the State fiscal year which begins during 1999 
were continued). 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-577 
(4) PERIOD DESCRIBED.—The period described in this para-
graph is the period that begins on the first State fiscal year 
that begins after September 30, 2002, and ends on September 
30, 2008. 
SEC. 706. ALASKA FMAP. 
Notwithstanding the first sentence of section 1905(b) of the 
Social Security Act (42 U.S.C. 1396d(b)), only with respect to each 
of fiscal years 2001 through 2005, for purposes of titles XIX and 
XXI of the Social Security Act, the State percentage used to deter-
mine the Federal medical assistance percentage for Alaska shall 
be that percentage which bears the same ratio to 45 percent as 
the square of the adjusted per capita income of Alaska (determined 
by dividing the State's 3-year average per capita income by 1.05) 
bears to trie square of the per capita income of the 50 States. 
SEC. 707. ONE-YEAR EXTENSION OF WELFARE-TO-WORK TRANSITION. 
(a) IN GENERAL.—Section 1925(f) (42 U.S.C. 1396r-6(f)) is 
amended by striking "2001" and inserting "2002". 
(b) CONFORMING AMENDMENT.—Section 1902(e)(1)(B) (42 U.S.C. 
1396a(e)(l)(B)) is amended by striking "2001" and inserting "2002". 
SEC. 708. ADDITIONAL ENTITIES QUALIFIED TO DETERMINE MEDICAID 
PRESUMPTIVE ELIGIBILITY FOR LOW-INCOME CHIL-
DREN. 
(a) IN GENERAL.—Section 1920A(b)(3)(A)(i) (42 U.S.C. 1396r-
la(b)(3)(A)(i)) is amended— 
(1) by striking "or (II)" and inserting ", (II)"; and 
(2) by inserting "eligibility of a child for medical assistance 
under the State plan under this title, or eligibility of a child 
for child health assistance under the program funded under 
title XXI, (III) is an elementary school or secondary school, 
as such terms are defined in section 14101 of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 8801), an 
elementary or secondary school operated or supported by the 
Bureau of Indian Affairs, a State or tribal child support enforce-
ment agency, an organization that is providing emergency food 
and shelter under a grant under the Stewart B. McRinney 
Homeless Assistance Act, or a State or tribal office or entity 
involved in enrollment in the program under this title, under 
part A of title IV, under title XXI, or that determines eligibility 
for any assistance or benefits provided under any program 
of public or assisted housing that receives Federal funds, includ-
ing the program under section 8 or any other section of the 
United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) 
or under the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4101 et seq.), or (IV) 
any other entity the State so deems, as approved by the Sec-
retary" before the semicolon. 
(b) TECHNICAL AMENDMENTS.—Section 1920A (42 U.S.C. 1396r-
la) is amended— 
(1) in subsection (b)(3)(A)(i), by striking "42 U.S.C. 9821" 
and inserting "42 U.S.C. 9831"; 
(2) in subsection (b)(3)(A)(ii), by striking "paragraph (1)(A)" 
and inserting "paragraph (2)"; and 
(3) in subsection (c)(2), in the matter preceding subpara-
graph (A), by striking "subsection (b)(1)(A)" and inserting "sub-
section (b)(2)". 
114 STAT. 2763A-578 
PUBLIC LAW 106-554—APPENDIX F 
SEC. 709. DEVELOPMENT OF UNIFORM QMB/SLMB APPLICATION FORM. 
(a) IN GENERAL.—Section 1905(p) (42 U.S.C. 1396d(p)) is 
amended by adding at the end the following new paragraph: 
"(5)(A) The Secretary shall develop and distribute to States 
a simplified application form for use by individuals (including both 
qualified medicare beneficiaries and specified low-income medicare 
beneficiaries) in applying for medical assistance for medicare cost-
sharing under this title in the States which elect to use such 
form. Such form shall be easily readable by applicants and uniform 
nationally. 
"(B) In developing such form, the Secretary shall consult with 
beneficiary groups and the States.". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall take effect 1 year after the date of the enactment of this 
Act, regardless of whether regulations have been promulgated to 
carry out such amendment by such date. The Secretary of Health 
and Human Services shall develop the uniform application form 
under such amendment by not later than 9 months after the date 
of the enactment of this Act. 
SEC. 710. TECHNICAL CORRECTIONS. 
(a) IN GENERAL.—Section 1903(f)(4) (42 U.S.C. 1396b(f)(4)) is 
amended— 
(1) 
by 
inserting 
"1902(a)(10)(A)(ii)(XVII)," 
after 
"1902(a)(10)(A)(ii)(XVI),"; and 
(2) 
by 
inserting 
"1902(a)(10)(A)(ii)(XVIII)," 
after 
"1902(a)(10)(A)(ii)(XVII),". 
(b) EFFECTIVE D A T E S . ^ 1 ) The amendment made by subsection 
(a)(1) shall be effective as if included in the enactment of section 
121 of the Foster Care Independence Act of 1999 (Public Law 
106-169). 
(2) The amendment made by subsection (a)(2) shall be effective 
as if included in the enactment of the Breast and Cervical Cancer 
Prevention and Treatment Act of 2000 (Public Law 106-354). 
TITLE VIII—STATE CHILDREN'S 
HEALTH INSURANCE PROGRAM 
SEC. 801. SPECIAL RULE FOR REDISTRIBUTION AND AVAILABILITY 
OF UNUSED FISCAL YEAR 1998 AND 1999 SCHIP ALLOT-
MENTS. 
(a) CHANGE IN RULES FOR REDISTRIBUTION AND RETENTION 
OF UNUSED SCHIP ALLOTMENTS FOR FISCAL YEARS 1998 AND 
1999.—Section 2104 (42 U.S.C. 1397dd) is amended by adding at 
the end the following new subsection: 
"(g) RULE FOR REDISTRIBUTION AND EXTENDED AVAILABILITY 
OF FISCAL YEARS 1998 AND 1999 ALLOTMENTS.— 
"(1) AMOUNT REDISTRIBUTED.— 
"(A) IN GENERAL.—In the case of a State that expends 
all of its allotment under subsection (b) or (c) for fiscal 
year 1998 by the end of fiscal year 2000, or for fiscal 
year 1999 by the end of fiscal year 2001, the Secretary 
shall redistribute to the State under subsection (f) (from 
the fiscal year 1998 or 1999 allotments of other States, 
PUBLIC LAW 10&-554—APPENDIX F 
114 STAT. 2763A-579 
respectively, as determined by the application of para-
graphs (2) and (3) with respect to the respective fiscal 
year) the following amount: 
"(i) STATE.—In the case of one of the 50 States 
or the District of Columbia, with respect to— 
"(I) the fiscal year 1998 allotment, the amount 
by which the State's expenditures under this title 
in fiscal years 1998, 1999, and 2000 exceed the 
State's allotment for fiscal year 1998 under sub-
section (b); or 
"(11) the fiscal year 1999 allotment, the amount 
by which the State's expenditures under this title 
in fiscal years 1999, 2000, and 2001 exceed the 
State's allotment for fiscal year 1999 under sub-
section (b). 
"(ii) TERRITORY.—In the case of a commonwealth 
or territory described in subsection (c)(3), an amount 
that bears the same ratio to 1.05 percent of the total 
amount described in paragraph (2)(B)(i)(I) as the ratio 
of the commonwealth's or territory's fiscal year 1998 
or 1999 allotment under subsection (c) (as the case 
may be) bears to the total of all such allotments for 
such fiscal year under such subsection. 
"(B) EXPENDITURE RULES.—^An amount redistributed 
to a State under this paragraph with respect to fiscal 
year 1998 or 1999— 
"(i) shall not be included in the determination of 
the State's allotment for any fiscal year under this 
section; 
"(ii) notwithstanding subsection (e), shall remain 
available for expenditure by the State through the 
end of fiscal year 2002; and 
"(iii) shall be counted as being expended with 
respect to a fiscal year allotment in accordance with 
applicable regulations of the Secretary. 
"(2) EXTENSION OF AVAILABILITY OF PORTION OF UNEX-
PENDED FISCAL YEARS 1998 AND 1999 ALLOTMENTS.— 
"(A) IN GENERAL.—Notwithstanding subsection (e): 
"(i) FISCAL YEAR 1998 ALLOTMENT.—Of the amounts 
allotted to a State pursuant to this section for fiscal 
year 1998 that were not expended by the State by 
the end of fiscal year 2000, the amount specified in 
subparagraph (B) for fiscal year 1998 for such State 
shall remain available for expenditure by the State 
through the end of fiscal year 2002. 
"(ii) 
FISCAL 
YEAR 
1999 
ALLOTMENT.—Of 
the 
amounts allotted to a State pursuant to this subsection 
for fiscal year 1999 that were not expended by the 
State by the end of fiscal year 2001, the amount speci-
fied in subparagraph (B) for fiscal year 1999 for such 
State shall remain available for expenditure by the 
State through the end of fiscal year 2002. 
"(B) AMOUNT REMAINING AVAILABLE FOR EXPENDI-
TURE.—The amount specified in this subparagraph for a 
State for a fiscal year is equal to— 
"(i) the amount by which (I) the total amount 
available for redistribution under subsection (f) from 
114 STAT. 2763A-580 
PUBLIC LAW 106-554—APPENDIX F 
the allotments for that fiscal year, exceeds (II) the 
total amounts redistributed under paragraph (1) for 
that fiscal year; multiplied by 
"(ii) the ratio of the amount of such State's unex-
pended allotment for that fiscal year to the total 
amount described in clause (i)(I) for that fiscal year. 
"(C) USE OF UP TO lo PERCENT OF RETAINED 1998 ALLOT-
MENTS FOR OUTREACH ACTIVITIES.—Notwithstanding sec-
tion 2105(c)(2)(A), with respect to any State described in 
subparagraph (A)(i), the State may use up to 10 percent 
of the amount specified in subparagraph (B) for fiscal year 
1998 for expenditures for outreach activities approved by 
the Secretary. 
"(3) DETERMINATION OF AMOUNTS.—For purposes of cal-
culating the amounts described in paragraphs (1) and (2) relat-
ing to the allotment for fiscal year 1998 or fiscal year 1999, 
the Secretary shall use the amounts reported by the States 
not later than December 15, 2000, or November 30, 2001, 
respectively, on HCFA Form 64 or HCFA Form 21, as approved 
by the Secretary.". 
(b) EFFECTIVE DATE.—^The amendments made by this section 
shall take effect as if included in the enactment of section 4901 
o f B B A d l l Stat. 552). 
SEC. 802. AUTHORITY TO PAY MEDICAID EXPANSION SCHIP COSTS 
FROM TITLE XXI APPROPRIATION. 
(a) AUTHORITY TO PAY MEDICAID EXPANSION SCHIP COSTS 
FROM TITLE XXI APPROPRIATION.—Section 2105(a) (42 U.S.C. 
1397ee(a)) is amended— 
(1) by redesignating subparagraphs (A) through (D) of para-
graph (2) as clauses (i) through (iv), respectively, and indenting 
appropriately; 
(2) by redesignating paragraph (1) as subparagraph (C), 
and indenting appropriately; 
(3) by redesignating paragraph (2) as subparagraph (D), 
and indenting appropriately; 
(4) by striking "(a) IN GENERAL.—" and the remainder 
of the text that precedes subparagraph (C), as so redesignated, 
and inserting the following: 
"(a) PAYMENTS.— 
"(1) IN GENERAL.—Subject to the succeeding provisions of 
this section, the Secretary shall pay to each State with a 
plan approved under this title, from its allotment under section 
2104, an amount for each quarter equal to the enhanced FMAP 
(or, in the case of expenditures described in subparagraph 
(B), the Federal medical assistance percentage (as defined in 
the first sentence of section 1905(b))) of expenditures in the 
quarter— 
"(A) for child health assistance under the plan for 
targeted low-income children in the form of providing medi-
cal assistance for which payment is made on the basis 
of an enhanced FMAP under the fourth sentence of section 
1905(b); 
"(B) for the provision of medical assistance on behalf 
of a child during a presumptive eligibility period under 
section 1920A;"; and 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-581 
(5) by adding after subparagraph (D), as so redesignated, 
the following new paragraph: 
"(2) ORDER OF PAYMENTS.—Payments under paragraph (1) 
from a State's allotment shall be made in the following order: 
"(A) First, for expenditures for items described in para-
graph (1)(A). 
"(B) Second, for expenditures for items described in 
paragraph (1)(B). 
"(C) Third, for expenditures for items described in para-
graph (1)(C). 
"(D) Fourth, for expenditures for items described in 
paragraph (1)(D).". 
(b) 
ELIMINATION OF REQUIREMENT TO REDUCE TITLE 
XXI 
ALLOTMENT BY MEDICAID EXPANSION S C H I P COSTS.—Section 2104 
(42 U.S.C. 1397dd) is amended by striking subsection (d). 
(c) AUTHORITY TO TRANSFER TITLE XXI APPROPRL\TIONS TO 
TITLE XIX 
APPROPRIATION 
ACCOUNT AS REIMBURSEMENT FOR 
MEDICAID EXPENDITURES FOR MEDICAID EXPANSION SCHIP SERV-
ICES.—Notwithstanding any other provision of law, all amounts 
appropriated under title XXI and allotted to a State pursuant 
to subsection (b) or (c) of section 2104 of the Social Security Act 
(42 U.S.C. 1397dd) for fiscal years 1998 through 2000 (including 
any amounts that, but for this provision, would be considered to 
have expired) and not expended in providing child health assistance 
or related services for which payment may be made pursuant to 
subparagraph (C) or (D) of section 2105(a)(1) of such Act (42 U.S.C. 
1397ee(a)(l)) (as amended by subsection (a)), shall be available 
to reimburse the Grants to States for Medicaid account in an 
amount equal to the total payments made to such State under 
section 1903(a) of such Act (42 U.S.C. 1396b(a)) for expenditures 
in such years for medical assistance described in subparagraphs 
(A) and (B) of section 2105(a)(1) of such Act (42 U.S.C. 1397ee(a)(l)) 
(as so amended). 
(d) CONFORMING AMENDMENTS.— 
(1) Section 1905(b) (42 U.S.C. 1396d(b)) is amended in 
the fourth sentence by striking "the State's allotment under 
section 2104 (not taking into account reductions under section 
2104(d)(2)) for the fiscal year reduced by the amount of any 
payments made under section 2105 to the State from such 
allotment for such fiscal year" and inserting "the State's avail-
able allotment under section 2104". 
(2) Section 1905(u)(l)(B) (42 U.S.C. 1396d(u)(l)(B)) is 
amended by striking "and section 2104(d)". 
(3) Section 2104 (42 U.S.C. 1397dd), as amended by sub-
section (b), is further amended— 
(A) in subsection (b)(1), by striking "and subsection 
(d)"; and 
(B) in subsection (c)(1), by striking "subject to sub-
section (d),". 
(4) Section 2105(c) (42 U.S.C. 1397ee(c)) is amended— 
" 
(A) in paragraph (2)(A), by striking all that follows 
"Except as provided in this paragraph," and inserting "the 
amount of payment that may be made under subsection 
(a) for a fiscal year for expenditures for items described 
in paragraph (1)(D) of such subsection shall not exceed 
10 percent of the total amount of expenditures for which 
114 STAT. 2763A-582 
PUBLIC LAW 106-554—APPENDIX F 
payment is made under subparagraphs (A), (C), and (D) 
of paragraph (1) of such subsection."; 
(B) in paragraph (2)(B), by striking "described in sub-
section (a)(2)" and inserting "described in subsection 
(a)(1)(D)''; and 
(C) in paragraph (6)(B), by striking "Except as other-
wise provided by law," and inserting "Except as provided 
in subparagraph (A) or (B) of subsection (a)(1) or any 
other provision of law,". 
(5) Section 2110(a) (42 U.S.C. 1397jj(a)) is amended by 
striking 
"section 
2105(a)(2)(A)" 
and 
inserting 
"section 
2105(a)(l)(D)(i)". 
(e) 
TECHNICAL 
AMENDMENT.—Section 
2105(d)(2)(B)(ii) (42 
U.S.C. 1397ee(d)(2)(B)(ii)) is amended by striking "enhanced FMAP 
under section 1905(u)" and inserting "enhanced FMAP under the 
fourth sentence of section 1905(b)". 
(f) EFFECTIVE DATE.—The amendments made by this section 
shall be effective as if included in the enactment of section 4901 
of the BBA (111 Stat. 552). 
SEC. 803. APPLICATION OF MEDICAID CHILD PRESUMPTIVE ELIGI-
BILITY PROVISIONS. 
Section 2107(e)(1) (42 U.S.C. 1397gg(e)(l)) is amended by add-
ing at the end the following new subparagraph: 
"(D) Section 1920A (relating to presumptive eligibility 
for children).". 
TITLE IX—OTHER PROVISIONS 
Subtitle A—PACE Program 
SEC. 901. EXTENSION OF TRANSITION FOR CURRENT WAIVERS. 
Section 4803(d)(2) of BBA is amended— 
(1) in subparagraph (A), by striking "24 months" and insert-
ing "36 months"; 
(2) in subparagraph (A), by striking "the initial effective 
date of regulations described in subsection (a)" and inserting 
"July 1, 2000"; and 
(3) in subparagraph (B), by striking "3 years" and inserting 
"4 years". 
SEC. 902. CONTINUING OF CERTAIN OPERATING ARRANGEMENTS PER-
MITTED. 
(a) IN GENERAL.—Section 1894(f)(2) (42 U.S.C. 1395eee(f)(2)) 
is amended by adding at the end the following new subparagraph: 
"(C) CONTINUATION OF MODIFICATIONS OR WAIVERS OF 
OPERATIONAL REQUIREMENTS UNDER DEMONSTRATION STA-
TUS.—If a PACE program operating under demonstration 
authority has contractual or other operating arrangements 
which are not otherwise recognized in regulation and which 
were in effect on July 1, 2000, the Secretary (in close 
consultation with, and with the concurrence of, the State 
^administering agency) shall permit any such program to 
- 
-c&ntinue such arrangements so long as such arrangements 
are found by the Secretary and the State to be reasonably 
consistent with the objectives of the PACE program.". 
PUBLIC LAW 106-554-APPENDIX F 
114 STAT. 2763A-583 
(b) CONFORMING AMENDMENT.—Section 1934(f)(2) (42 U.S.C. 
1396u-4(f )(2)) is amended by adding at the end the following new 
subparagraph: 
"(C) CONTINUATION OF MODIFICATIONS OR WAIVERS OF 
OPERATIONAL REQUIREMENTS UNDER DEMONSTRATION STA-
TUS.—If a PACE program operating under demonstration 
authority has contractual or other operating arrangements 
which are not otherwise recognized in regulation and which 
were in effect on July 1 2000, the Secretary (in close 
consultation with, and with the concurrence of, the State 
. administering agency) shall permit any such program to 
continue such arrangements so long as such arrangements 
are found by the Secretary and the State to be reasonably 
consistent with the objectives of the PACE program.". 
(c) EFFECTIVE DATE.—^The amendments made by this section 
shall be effective as included in the enactment of BBA. 
SEC. 903. FLEXIBILITY IN EXERCISING WAIVER AUTHORITY. 
In applying sections 1894(f)(2)(B) and 1934(f)(2)(B) of the Social 
Security Act (42 U.S.C. 1395eee(f )(2)(B), 1396u-4(f )(2)(B)), the Sec-
retary of Health and Human Services— 
(1) shall approve or deny a request for a modification 
or a waiver of provisions of the PACE protocol not later than 
90 days after the date the Secretary receives the request; 
and 
(2) may exercise authority to modify or waive such provi-
sions in a manner that responds promptly to the needs of 
PACE programs relating to areas of emplojnnent and the use 
of community-based primary care physicians. 
Subtitle B—Outreach to Eligible Low-
Income Medicare Beneficiaries 
SEC. 911. OUTREACH ON AVAILABILITY OF MEDICARE COST-SHARING 
ASSISTANCE 
TO ELIGIBLE 
LOW-INCOME MEDICARE 
BENEFICIARIES. 
(a) OUTREACH.— 
(1) IN GENERAL.—Title XI (42 U.S.C. 1301 et seq.) is amend-
ed by inserting after section 1143 the following new section: 
"OUTREACH EFFORTS TO INCREASE AWARENESS OF THE AVAILABILITY 
OF MEDICARE COST-SHARING 
"SEC 1144. (a) OUTREACH.— 
"(1) IN GENERAL.—^The Commissioner of Social Security 
(in this section referred to as the 'Commissioner') shall conduct 
outreach efforts to— 
"(A) identify individuals entitled to benefits under the 
medicare program under title XVIII who may be eligible 
for medical assistance for pa5nTient of the cost of medicare 
cost-sharing under the medicaid program pursuant to sec-
tions 1902(a)(10)(E) and 1933; and 
"(B) notify such individuals of the availability of such 
medical assistance under such sections. 
114 STAT. 2763A-584 
PUBLIC LAW 106-554—APPENDIX F 
"(2) CONTENT OF NOTICE.—^Any notice furnished under 
paragraph (1) shall state that eligibility for medicare cost-
sharing assistance under such sections is conditioned upon— 
"(A) the individual providing to the State information 
about income and resources (in the case of an individual 
residing in a State that imposes an assets test for such 
eligibility); and 
"(B) meeting the applicable eligibility criteria. 
"(b) COORDINATION WITH STATES.— 
"(1) IN GENERAL.—In conducting the outreach efforts under 
this section, the Commissioner shall— 
"(A) furnish the agency of each State responsible for 
the administration of the medicaid program and any other 
appropriate State agency with information consisting of 
the name and address of individuals residing in the State 
that the Commissioner determines may be eligible for medi-
cal assistance for payment of the cost of medicare cost-
sharing under the medicaid program pursuant to sections 
1902(a)(10)(E) and 1933; and 
"(B) update any such information not less frequently 
than once per year. 
"(2) 
INFORMATION IN PERIODIC UPDATES.—^The periodic 
updates described in paragraph (1)(B) shall include information 
on individuals who are or may be eligible for the medical 
assistance described in paragraph (1)(A) because such individ-
uals have experienced reductions in benefits under title IL". 
(2) AMENDMENT TO TITLE XIX.—Section 1905(p) (42 U.S.C. 
1396d(p)), as amended by section 710(a), is amended by adding 
at the end the following new paragraph: 
"(6) For provisions relating to outreach efforts to increase 
awareness of the availability of medicare cost-sharing, see section 
1144.". 
(b) GAG REPORT.—The Comptroller General of the United 
States shall conduct a study of the impact of section 1144 of the 
Social Security Act (as added by subsection (a)(1)) on the enrollment 
of individuals for medicare cost-sharing under the medicaid pro-
gram. Not later than 18 months after the date that the Commis-
sioner of Social Security first conducts outreach under section 1144 
of such Act, the Comptroller General shall submit to Congress 
a report on such study. The report shall include such recommenda-
tions for legislative changes as the Comptroller General deems 
appropriate. 
(c) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect one year after the date of the enactment 
of this Act. 
Subtitle C—Maternal and Child Health 
Block Grant 
SEC. 921. INCREASE EV AUTHORIZATION OF APPROPRIATIONS FOR 
THE MATERNAL AND CHILD HEALTH SERVICES BLOCK 
GRANT. 
(a) IN GENERAL.—Section 501(a) (42 U.S.C. 701(a)) is amended 
in the matter preceding paragraph (1) by striking "$705,000,000 
for fiscal year 1994" and inserting "$850,000,000 for fiscal year 
2001". 
PUBLIC LAW 106-554—APPENDIX F 
114 STAT. 2763A-585 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
takes effect on October 1, 2000. 
Subtitle D—Diabetes 
SEC. 931. INCREASE IN APPROPRIATIONS FOR SPECIAL DIABETES PRO-
GRAMS FOR TYPE I DIABETES AND INDIANS. 
(a) SPECIAL DIABETES PROGRAMS FOR TYPE I DIABETES.—Sec-
tion 330B(b) of the Public Health Service Act (42 U.S.C. 254c-
2(b)) is amended— 
(1) by striking "Notwithstanding" and inserting the follow-
ing: 
"(1) TRANSFERRED FUNDS.—Notwithstanding"; and 
(2) by adding at the end the following: 
"(2) APPROPRIATIONS.—For the purpose of making grants 
under this section, there is appropriated, out of any funds 
in the Treasury not otherwise appropriated— 
"(A) $70,000,000 for each of fiscal years 2001 and 2002 
(which shall be combined with amounts transferred under 
paragraph (1) for each such fiscal years); and 
"(B) $100,000,000 for fiscal year 2003.". 
(b) SPECIAL DIABETES PROGRAMS FOR INDIANS.—Section 330C(c) 
of such Act (42 U.S.C. 254c-3(c)) is amended— 
(1) by striking "Notwithstanding" and inserting the follow-
ing: 
"(1) TRANSFERRED FUNDS.—^Notwithstanding"; and 
(2) by adding at the end the following: 
"(2) APPROPRIATIONS.—For the purpose of making grants 
under this section, there is appropriated, out of any money 
in the Treasury not otherwise appropriated— 
"(A) $70,000,000 for each of fiscal years 2001 and 2002 
(which shall be combined with amounts transferred under 
paragraph (1) for each such fiscal years); and 
"(B) $100,000,000 for fiscal year 2003.". 
(c) EXTENSION OF FINAL REPORT ON GRANT PROGRAMS.—Section 
4923(b)(2) of BBA is amended by striking "2002" and inserting 
"2003". 
SEC. 932. APPROPRIATIONS FOR RICKY RAY HEMOPHILIA RELIEF 
FUND. 
Section 101(e) of the Ricky Ray Hemophilia Relief Fund Act 
of 1998 (42 U.S.C. 300c-22 note) is amended by adding at the 
end the following: "There is appropriated to the Fund $475,000,000 
for fiscal year 2001, to remain available until expended.". 
Subtitle E—Information on Nurse Staffing 
SEC. 941. POSTING OF INFORMATION ON NURSING FACILITY STAFF-
ING. 
(a) MEDICARE.—Section 1819(b) (42 U.S.C. 1395i-3(b)) is 
amended by adding at the end the following new paragraph: 
"(8) INFORMATION ON NURSE STAFFING.— 
"(A) IN GENERAL.—^A skilled nursing facility shall post 
daily for each shift the current number of licensed and 
unlicensed nursing staff directly responsible for resident 
care in the facility. The information shall be displayed 
114 STAT. 2763A-586 
PUBLIC LAW 106-554—APPENDIX F 
in a uniform manner (as specified by the Secretary) and 
in a clearly visible place. 
"(B) PUBLICATION OF DATA.—^A skilled nursing facility 
shall, upon request, make available to the public the nurs-
ing staff data described in subparagraph (A).". 
(b) MEDICAID.—Section 1919(b) (42 U.S.C. 1395r(b)) is amended 
by adding at the end the following new paragraph: 
"(8) INFORMATION ON NURSE STAFFING.— 
"(A) IN GENERAL.—^A nursing facility shall post daily 
for each shift the current number of licensed and unlicensed 
nursing staff directly responsible for resident care in the 
facility. The information shall be displayed in a uniform 
manner (as specified by the Secretary) and in a clearly 
visible place. 
"(B) PUBLICATION OF DATA.^A nursing facility shall, 
upon request, make available to the public the nursing 
staff data described in subparagraph (A).". 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on January 1, 2003. 
Subtitle F—^Adjustment of Multiemployer 
Plan Benefits Guaranteed 
SEC. 951. MULTIEMPLOYER PLAN BENEFITS GUARANTEED. 
(a) IN GENERAL.—Section 4022A(c) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1322a(c)) is amended— 
(1) by striking "$5" each place it appears in paragraph 
(1) and inserting "$11"; 
(2) by striking "$15" in paragraph (l)(A)(i) and inserting 
"$33"; and 
(3) by striking paragraphs (2), (5), and (6) and by 
redesignating paragraphs (3) and (4) as paragraphs (2) and 
(3), respectively. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to any multiemployer plan that has not received finan-
cial assistance (within the meaning of section 4261 of the Employee 
Retirement Income Security Act of 1974) within the 1-year period 
ending on the date of the enactment of this Act. 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-587 
APPENDIX G—H.R. 5662 
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE. 
(a) SHORT TITLE.—This Act may be cited as the "Community 
Renewal Tax Rehef Act of 2000". 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed 
in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a section 
or other provision of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for this Act 
is as follows: 
Sec. 1. Short title; amendment of 1986 Code. 
TITLE I—COMMUNITY RENEWAL AND NEW MARKETS 
Subtitle A—^Tax Incentives for Renewal Communities 
Sec. 101. Designation of and tax incentives for renewal communities. 
Sec. 102. Work opportunity credit for hiring youth residing in renewal commu-
nities. 
Subtitle B—Extension and Expansion of Empowerment Zone Incentives 
Sec. 111. Authority to designate nine additional empowerment zones. 
Sec. 112. Extension of empowerment zone treatment through 2009. 
Sec. 113. Twenty percent employment credit for all empowerment zones. 
Sec. 114. Increased expensing under section 179. 
Sec. 115. Higher limits on tax-exempt empowerment zone facility bonds. 
Sec. 116. Nonrecognition of gain on rollover of empowerment zone investments. 
Sec. 117. Increased exclusion of gain on sale of empowerment zone stock. 
Subtitle C—New Markets Tax Credit 
Sec. 121. New markets tax credit. 
Subtitle D—Improvements in Low-Income Housing Credit 
Sec. 131. Modification of State ceiling on low-income housing credit. 
Sec. 132. Modification of criteria for allocating housing credits among projects. 
Sec. 133. Additional responsibilities of housing credit agencies. 
Sec. 134. Modifications to rules relating to basis of building which is eligible for 
credit. 
Sec. 135. Other modifications. 
Sec. 136. Carryforward rules. 
Sec. 137. Effective date. 
Subtitle E—Other Community Renewal and New Markets Assistance 
PART I—PROVISIONS RELATING TO HOUSING AND SUBSTANCE ABUSE PREVENTION AND 
TREATMENT 
Sec. 141. Transfer of unoccupied and substandard HUD-held housing to local 
governments and community development corporations. 
Sec. 142. Transfer of HUD assets in revitalization areas. 
Sec. 143. Risk-sharing demonstration. 
Sec. 144. Prevention and treatment of substance abuse; services provided through 
religious organizations. 
PART II—^ADVISORY COUNCIL ON COMMUNITY RENEWAL 
Sec. 151. Short title. 
114 STAT. 2763A-588 
PUBLIC LAW 106-554^APPENDIX G 
Sec. 152. Establishment. 
Sec. 153. Duties of Advisory Council. 
Sec. 154. Membership. 
Sec. 155. Powers of Advisory Council. 
Sec. 156. Reports. 
Sec. 157. Termination. 
Sec. 158. Applicability of Federal Advisory Committee Act. 
Sec. 159. Resources. 
Sec. 160. Effective date. 
Subtitle F—Other Provisions 
Sec. 161. Acceleration of phase-in of increase in volume cap on private activity 
bonds. 
Sec. 162. Modifications to expensing of environmental remediation costs. 
Sec. 163. Extension of DC homebuyer tax credit. 
Sec. 164. Extension of DC Zone through 2003. 
Sec. 165. Extension of enhanced deduction for corporate donations of computer 
technology. 
Sec. 166. Treatment of Indian tribal governments under Federal Unemployment 
Tax Act. 
TITLE II—TWO-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS 
ACCOUNTS 
Sec. 201. Two-year extension of availability of medical savings accounts. 
Sec. 202. Medical savings accounts renamed as Archer MSAs. 
TITLE III—ADMINISTRATIVE AND TECHNICAL PROVISIONS 
Subtitle A—^Administrative Provisions 
Sec. 301. Exemption of certain reporting requirements. 
Sec. 302. Extension of deadlines for IRS compliance with certain notice require-
ments. 
Sec. 303. Extension of authority for undercover operations. 
Sec. 304. Confidentiality of certain documents relating to closing and similar agree-
ments and to agreements with foreign governments. 
Sec. 305. Increase in threshold for Joint Committee reports on refunds and credits. 
Sec. 306. Treatment of missing children with respect to certain tax benefits. 
Sec. 307. Amendments to statutes referencing yield on 52-week Treasiuy bills. 
Sec. 308. Adjustments for Consumer Price Index error. 
Sec. 309. Prevention of duplication of loss through assumption of liabilities giving 
rise to a deduction. 
Sec. 310. Disclosure of certain information to Congressional Budget Office. 
Subtitle B—^Technical Corrections 
Sec. 311. Amendments related to Ticket to Work and Work Incentives Improve-
ment Act of 1999. 
Sec. 312. Amendments related to Tax and Trade Relief Extension Act of 1998. 
Sec. 313. Amendments related to Internal Revenue Service Restructuring and 
Reform Act of 1998. 
Sec. 314. Amendments related to Taxpayer Relief Act of 1997. 
Sec. 315. Amendments related to Balanced Budget Act of 1997. 
Sec. 316. Amendments related to Small Business Job Protection Act of 1996. 
Sec. 317. Amendment related to Revenue Reconciliation Act of 1990. 
Sec. 318. Other technical corrections. 
Sec. 319. Clerical changes. 
TITLE rV—TAX TREATMENT OF SECURITIES FUTURES CONTRACTS 
Sec. 401. Tax treatment of securities futures contracts. 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-589 
TITLE I—COMMUNITY RENEWAL AND 
NEWMARKETS 
Subtitle A—Tax Incentives for Renewal 
Communities 
SEC. 101. DESIGNATION OF AND TAX INCENTIVES FOR RENEWAL 
COMMUNITIES. 
(a) IN GENERAL.—Chapter 1 is amended by adding at the 
end the following new subchapter: 
"Subchapter X—Renewal Communities 
"Part 
I. Designation. 
"Part 
II. Renewal community capital gain; renewal community business. 
"Part III. Additional incentives. 
"PART I—DESIGNATION 
"Sec. 1400E. Designation of renewal communities. 
"SEC. 1400E. DESIGNATION OF RENEWAL COMMUNITIES. 
"(a) DESIGNATION.— 
"(1) DEFINITIONS.—For purposes of this title, the term 
'renewal community' means any area— 
"(A) which is nominated by 1 or more local governments 
and the State or States in which it is located for designation 
as a renewal community (hereafter in this section referred 
to as a 'nominated area'), and 
"(B) which the Secretary of Housing and Urban 
Development designates as a renewal community, after 
consultation with— 
"(i) the Secretaries of Agriculture, Commerce, 
Labor, and the Treasury; the Director of the Office 
of Management and Budget, and the Administrator 
of the Small Business Administration, and 
"(ii) in the case of an area on an Indian reservation, 
the Secretary of the Interior. 
"(2) NUMBER OF DESIGNATIONS.— 
"(A) IN GENERAL.—Not more than 40 nominated areas 
may be designated as renewal communities. 
"(B) MINIMUM DESIGNATION IN RURAL AREAS.—Of the 
areas designated under paragraph (1), at least 12 must 
be areas— 
"(i) which are within a local government jurisdic-
tion or jurisdictions with a population of less than 
50,000, 
"(ii) which are outside of a metropolitan statistical 
area (within the meaning of section 143(k)(2)(B)), or 
"(iii) which are determined by the Secretary of 
Housing and Urban Development, after consultation 
with the Secretary of Commerce, to be rural areas. 
"(3) 
AREAS DESIGNATED BASED ON DEGREE OF POVERTY, 
ETC.— 
"(A) IN GENERAL.—Except as otherwise provided in 
this section, the nominated areas designated as renewal 
114 STAT. 2763A-590 
PUBLIC LAW 106-554—APPENDIX G 
communities under this subsection shall be those nomi-
nated areas with the highest average ranking with respect 
to the criteria described in subparagraphs (B), (C), and 
(D) of subsection (c)(3). For purposes of the preceding sen-
tence, an area shall be ranked within each such criterion 
on the basis of the amount by which the area exceeds 
such criterion, with the area which exceeds such criterion 
by the greatest amount given the highest ranking. 
"(B) EXCEPTION WHERE INADEQUATE COURSE OF ACTION, 
ETC.—^An area shall not be designated under subparagraph 
(A) if the Secretary of Housing and Urban Development 
determines that the course of action described in subsection 
(d)(2) with respect to such area is inadequate. 
"(C) PREFERENCE FOR ENTERPRISE COMMUNITIES AND 
EMPOWERMENT ZONES.—With respect to the first 20 des-
ignations made under this section, a preference shall be 
provided to those nominated areas which are enterprise 
communities or empowerment zones (and are otherwise 
eligible for designation under this section). 
"(4) LIMITATION ON DESIGNATIONS.— 
"(A) PUBLICATION OF REGULATIONS.—The Secretary of 
Housing and Urban Development shall prescribe by regula-
tion no later than 4 months after the date of the enactment 
of this section, after consultation with the officials described 
in paragraph (1)(B)— 
"(i) the procedures for nominating an area under 
paragraph (1)(A), 
"(ii) the parameters relating to the size and popu-
lation characteristics of a renewal community, and 
"(iii) the manner in which nominated areas will 
be evaluated based on the criteria specified in sub-
section (d). 
"(B) TIME LIMITATIONS.—The Secretary of Housing and 
Urban Development may designate nominated areas as 
renewal communities only during the period beginning on 
the first day of the first month following the month in 
which the regulations described in subparagraph (A) are 
prescribed and ending on December 31, 2001. 
"(C) PROCEDURAL RULES.—^The Secretary of Housing 
and Urban Development shall not make any designation 
of a nominated area as a renewal community under para-
graph (2) unless— 
"(i) the local governments and the States in which 
the nominated area is located have the authority— 
"(I) to nominate such area for designation as 
a renewal community, 
"(II) to make the State and local commitments 
described in subsection (d), and 
"(III) to provide assurances satisfactory to the 
Secretary of Housing and Urban Development that 
such commitments will be fulfilled, 
"(ii) a nomination regarding such area is submitted 
in such a manner and in such form, and contains 
such information, as the Secretary of Housing and 
Urban Development shall by regulation prescribe, and 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 27(33A-591 
"(iii) the Secretary of Housing and Urban Develop-
ment determines that any information furnished is 
reasonably accurate. 
"(5) NOMINATION PROCESS FOR INDIAN RESERVATIONS.—^For 
purposes of this subchapter, in the case of a nominated area 
on an Indian reservation, the reservation governing body (as 
determined by the Secretary of the Interior) shall be treated 
as being both the State and local governments with respect 
to such area. 
"(b) PERIOD FOR WHICH DESIGNATION IS IN EFFECT.— 
"(1) IN GENERAL.—^Any designation of an area as a renewal 
community shall remain in effect during the period beginning 
on January 1, 2002, and ending on the earliest of— 
"(A) December 31, 2009, 
"(B) the termination date designated by the State and 
local governments in their nomination, or 
"(C) the date the Secretary of Housing and Urban 
Development revokes such designation. 
"(2) REVOCATION OF DESIGNATION.—The Secretary of Hous-
ing and Urban Development may revoke the designation under 
this section of an area if such Secretary determines that the 
local government or the State in which the area is located— 
"(A) has modified the boundaries of the area, or 
"(B) is not complying substantially with, or fails to 
make progress in achieving, the State or local commit-
ments, respectively, described in subsection (d). 
"(3) EARLIER TERMINATION OF CERTAIN BENEFITS IF EARLIER 
TERMINATION OF DESIGNATION.—If the designation of an area 
as a renewal community terminates before December 31, 2009, 
the day after the date of such termination shall be substituted 
for 'January 1, 2010' each place it appears in sections 1400F 
and 1400J with respect to such area. 
"(c) AREA AND ELIGIBILITY REQUIREMENTS.— 
"(1) IN GENERAL.—The Secretary of Housing and Urban 
Development may designate a nominated area as a renewal 
community under subsection (a) only if the area meets the 
requirements of paragraphs (2) and (3) of this subsection. 
"(2) AREA REQUIREMENTS.—^A nominated area meets the 
requirements of this paragraph if— 
"(A) the area is within the jurisdiction of one or more 
local governments, 
"(B) the boundary of the area is continuous, and 
"(C) the area— 
"(i) has a population of not more than 200,000 
and at least— 
"(I) 4,000 if any portion of such area (other 
than 
a 
rural 
area 
described 
in 
subsection 
(a)(2)(B)(i)) is located within a metropolitan statis-
tical 
area 
(within 
the 
meaning 
of 
section 
143(k)(2)(B)) which has a population of 50,000 or 
greater, or 
"(II) 1,000 in any other case, or 
"(ii) is entirely within an Indian reservation (as 
determined by the Secretary of the Interior). 
"(3) ELIGIBILITY REQUIREMENTS.—^A nominated area meets 
the requirements of this paragraph if the State and the local 
governments in which it is located certify in writing (and the 
114 STAT. 2763A-592 
PUBLIC LAW 106-554—APPENDIX G 
Secretary of Housing and Urban Development, after such 
review of supporting data as he deems appropriate, accepts 
such certification) that— 
"(A) the area is one of pervasive poverty, unemploy-
ment, and general distress, 
"(B) the unemployment rate in the area, as determined 
by the most recent available data, was at least iy2 times 
the national unemployment rate for the period to which 
such data relate, 
"(C) the poverty rate for each population census tract 
within the nominated area is at least 20 percent, and 
"(D) in the case of an urban area, at least 70 percent 
of the households living in the area have incomes below 
80 percent of the median income of households within 
the jurisdiction of the local government (determined in 
the same manner as imder section 119(b)(2) of the Housing 
and Community Development Act of 1974). 
"(4) 
CONSIDERATION OF OTHER FACTORS.—The Secretary 
of Housing and Urban Development, in selecting any nominated 
area for designation as a renewal community under this 
section— 
"(A) shall take into account— 
"(i) the extent to which such area has a high 
incidence of crime, or 
"(ii) if such area has census tracts identified in 
the May 12, 1998, report of the General Accounting 
Office regarding the identification of economically dis-
tressed areas, and 
"(B) with respect to 1 of the areas to be designated 
under subsection (a)(2)(B), may, in lieu of any criteria 
described in paragraph (3), take into account the existence 
of outmigration from the area. 
"(d) REQUIRED STATE AND LOCAL COMMITMENTS.— 
"(1) IN GENERAL.—The Secretary of Housing and Urban 
Development may designate any nominated area as a renewal 
community imder subsection (a) only if— 
"(A) the local government and the State in which the 
area is located agree in writing that, during any period 
during which the area is a renewal community, such 
governments will follow a specified course of action which 
meets the requirements of paragraph (2) and is designed 
to reduce the various burdens borne by employers or 
employees in such area, and 
"(B) the economic growth promotion requirements of 
paragraph (3) are met. 
"(2) COURSE OF ACTION.— 
"(A) IN GENERAL.—^A course of action meets the require-
ments of this paragraph if such course of action is a written 
document, signed by a State (or local government) and 
neighborhood organizations, which evidences a partnership 
between such State or government and community-based 
organizations and which commits each signatory to specific 
and measurable goals, actions, and timetables. Such course 
of action shall include at least 4 of the following: 
"(i) A reduction of tax rates or fees applying within 
the renewal community. 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-593 
"(ii) An increase in the level of efficiency of local 
services within the renewal community. 
"(iii) Crime reduction strategies, such as crime 
prevention (including the provision of crime prevention 
services by nongovernmental entities). 
"(iv) Actions to reduce, remove, simplify, or stream-
line governmental requirements applying within the 
renewal community. 
"(v) Involvement in the program by private enti-
ties, organizations, neighborhood organizations, and 
community groups, particularly those in the renewal 
community, including a commitment from such private 
entities to provide jobs and job training for, and tech-
nical, financial, or other assistance to, employers, 
employees, and residents from the renewal community. 
"(vi) The gift (or sale at below fair market value) 
of surplus real property (such as land, homes, and 
commercial or industrial structures) in the renewal 
community to neighborhood organizations, community 
development corporations, or private companies. 
"(B) RECOGNITION OF PAST EFFORTS.—For purposes of 
this section, in evaluating the course of action agreed to 
by any State or local government, the Secretary of Housing 
and Urban Development shall take into account the past 
efforts of such State or local government in reducing the 
various burdens borne by employers and employees in the 
area involved. 
"(3) ECONOMIC GROWTH PROMOTION REQUIREMENTS.—The 
economic growth promotion requirements of this paragraph 
are met with respect to a nominated area if the local govern-
ment and the State in which such area is located certify in 
writing that such government and State (respectively) have 
repealed or reduced, will not enforce, or will reduce within 
the nominated area at least 4 of the following: 
"(A) Licensing requirements for occupations that do 
not ordinarily require a professional degree. 
"(B) Zoning restrictions on home-based businesses 
which do not create a public nuisance. 
"(C) Permit requirements for street vendors who do 
not create a public nuisance. 
"(D) Zoning or other restrictions that impede the forma-
tion of schools or child care centers. 
"(E) Franchises or other restrictions on competition 
for businesses providing public services, including taxicabs, 
jitneys, cable television, or trash hauling. 
This paragraph shall not apply to the extent that such regula-
tion of businesses and occupations is necessary for and well-
tailored to the protection of health and safety. 
"(e) COORDINATION WITH TREATMENT OF EMPOWERMENT ZONES 
AND ENTERPRISE COMMUNITIES.—For purposes of this title, the des-
ignation under section 1391 of any area as an empowerment zone 
or enterprise community shall cease to be in effect as of the date 
that the designation of any portion of such area as a renewal 
community takes effect. 
"(f) DEFINITIONS AND SPECIAL RULES.—For purposes of this 
subchapter— 
114 STAT. 2763A-594 
PUBLIC LAW 106-554—APPENDIX G 
"(1) GOVERNMENTS.—If more than one government seeks 
to nominate an area as a renewal community, any reference 
to, or requirement of, this section shall apply to all such govern-
ments. 
"(2) LOCAL GOVERNMENT.—The term 'local government' 
means— 
"(A) any county, city, town, township, parish, village, 
or other general purpose political subdivision of a State, 
and 
"(B) any combination of political subdivisions described 
in subparagraph (A) recognized by the Secretary of Housing 
and Urban Development. 
"(3) APPLICATION OF RULES RELATING TO CENSUS TRACTS.— 
The rules of section 1392(b)(4) shall apply. 
"(4) CENSUS DATA.—Population and poverty rate shall be 
determined by using 1990 census data. 
"PART II—RENEWAL COMMUNITY CAPITAL 
GAIN; RENEWAL COMMUNITY BUSINESS 
"Sec. 1400F. Renewal community capital gain. 
"Sec. 1400G. Renewal community business defined. 
«SEC. 1400F. RENEWAL COMMUNITY CAPITAL GAIN. 
"(a) GENERAL RULE.—Gross income does not include any quali-
fied capital gain from the sale or exchange of a qualified community 
asset held for more than 5 years. 
"(b) QUALIFIED 
COMMUNITY ASSET.—^For purposes of this 
section— 
"(1) IN GENERAL.—The term 'qualified community asset' 
means— 
"(A) any qualified community stock, 
"(B) any qualified community partnership interest, and 
"(C) any qualified community business property. 
"(2) QUALIFIED COMMUNITY STOCK.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), the term 'qualified community stock' means any stock 
in a domestic corporation if— 
"(i) such stock is acquired by the taxpayer after 
December 31, 2001, and before January 1, 2010, at 
its original issue (directly or through an underwriter) 
from the corporation solely in exchange for cash, 
"(ii) as of the time such stock was issued, such 
corporation was a renewal community business (or, 
in the case of a new corporation, such corporation 
was being organized for purposes of being a renewal 
community business), and 
"(iii) during substantially all of the taxpayer's hold-
ing period for such stock, such corporation qualified 
as a renewal community business. 
"(B) REDEMPTIONS.—^A rule similar to the rule of sec-
tion 1202(c)(3) shall apply for purposes of this paragraph. 
"(3) 
QUALIFIED COMMUNITY PARTNERSHIP INTEREST.—The 
term 'qualified community partnership interest' means any cap-
ital or profits interest in a domestic partnership if— 
"(A) such interest is acquired by the taxpayer after 
December 31, 2001, and before January 1, 2010, from the 
partnership solely in exchange for cash. 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-595 
"(B) as of the time such interest was acquired, such 
partnership was a renewal community business (or, in 
the case of a new partnership, such partnership was being 
organized for purposes of being a renewal community busi-
ness), and 
"(C) during substantially all of the taxpayer's holding 
period for such interest, such partnership qualified as a 
renewal community business. 
A rule similar to the rule of paragraph (2)(B) shall apply 
for purposes of this paragraph. 
"(4) QUALIFIED COMMUNITY BUSINESS PROPERTY.— 
"(A) IN GENERAL.—The term 'qualified community busi-
ness property' means tangible property i
f
— 
"(i) such property was acquired by the taxpayer 
by purchase (as defined in section 179(d)(2)) after 
December 31, 2001, and before January 1, 2010, 
"(ii) the original use of such property in the 
renewal community commences with the taxpayer, and 
"(iii) during substantially all of the taxpayer's hold-
ing period for such property, substantially all of the 
use of such property was in a renewal community 
business of the taxpayer. 
"(B) SPECLy;. RULE FOR SUBSTANTIAL IMPROVEMENTS.— 
The requirements of clauses (i) and (ii) of subparagraph 
(A) shall be treated as satisfied with respect to— 
"(i) property which is substantially improved by 
the taxpayer before January 1, 2010, and 
"(ii) any land on which such property is located. 
The determination of whether a property is substantially 
improved shall be made under clause (ii) of section 
1400B(b)(4)(B), except that 'December 31, 2001' shall be 
substituted for 'December 31, 1997' in such clause. 
"(c) QUALIFIED CAPITAL GAIN.—For purposes of this section— 
"(1) IN GENERAL.—^Except as otherwise provided in this 
subsection, the term 'qualified capital gain' means any gain 
recognized on the sale or exchange of— 
"(A) a capital asset, or 
"(B) property used in the trade or business (as defined 
in section 1231(b)). 
"(2) GAIN BEFORE 2002 OR AFTER 2014 NOT QUALIFIED.— 
The term 'qualified capital gain' shall not include any gain 
attributable to periods before January 1, 2002, or after Decem-
ber 31,2014. 
"(3) CERTAIN RULES TO APPLY.—Rules similar to the rules 
of paragraphs (3), (4), and (5) of section 1400B(e) shall apply 
for purposes of this subsection. 
"(d) CERTAIN RULES TO APPLY.—For purposes of this section, 
rules similar to the rules of paragraphs (5), (6), and (7) of subsection 
(b), and subsections (f) and (g), of section 1400B shall apply; except 
that for such purposes section 1400B(g)(2) shall be applied by 
substituting 'January 1, 2002' for 'January 1, 1998' and 'December 
31, 2014' for 'December 31, 2008'. 
"(e) REGULATIONS.—The Secretary shall prescribe such regula-
tions as may be appropriate to carry out the purposes of this 
section, including regulations to prevent the abuse of the purposes 
of this section. 
114 STAT. 2763A-596 
PUBLIC LAW 106-554—APPENDIX G 
"SEC. 1400G. RENEWAL COMMUNITY BUSINESS DEFINED. 
"For purposes of this subchapter, the term 'renewal community 
business' means any entity or proprietorship which would be a 
qualified business entity or qualified proprietorship under section 
1397C if references to renewal communities were substituted for 
references to empowerment zones in such section. 
"PART III—ADDITIONAL INCENTIVES 
"Sec. 1400H. Renewal community employment credit. 
"Sec. 14001. Commercial revitalization deduction. 
"Sec. 1400J. Increase in expensing under section 179. 
"SEC. 1400H. RENEWAL COMMUNITY EMPLOYMENT CREDIT. 
"(a) IN GENERAL.—Subject to the modification in subsection 
(b), a renewal community shall be treated as an empowerment 
zone for purposes of section 1396 with respect to wages paid or 
incurred after December 31, 2001. 
"(b) MODIFICATION.—In applying section 1396 with respect to 
renewal communities— 
"(1) the applicable percentage shall be 15 percent, and 
"(2) subsection (c) thereof shall be applied by substituting 
'$10,000' for '$15,000' each place it appears. 
"SEC. 14001. COMMERCIAL REVITALIZATION DEDUCTION. 
"(a) GENERAL RULE.—^At the election of the taxpayer, either— 
"(1) one-half of any qualified revitalization expenditures 
chargeable to capital account with respect to any qualified 
revitalization building shall be allowable as a deduction for 
the taxable year in which the building is placed in service, 
or 
"(2) a deduction for all such expenditures shall be allowable 
ratably over the 120-month period beginning with the month 
in which the building is placed in service. 
"(b) 
QUALIFIED REVITALI2ATION BUILDINGS AND EXPENDI-
TURES.—For purposes of this section— 
"(1) QUALIFIED REVITALIZATION BUILDING.—The term 'quali-
fied revitalization building' means any building (and its struc-
tural components) if— 
"(A) the building is placed in service by the taxpayer 
in a renewal community and the original use of the building 
begins with the taxpayer, or 
"(B) in the case of such building not described in 
subparagraph (A), such building— 
"(i) is substantially rehabilitated (within the mean-
ing of section 47(c)(1)(C)) by the taxpayer, and 
"(ii) is placed in service by the taxpayer after the 
rehabilitation in a renewal community. 
"(2) QUALIFIED REVITALIZATION EXPENDITURE.— 
"(A) IN GENERAL.—The term 'qualified revitalization 
expenditure' means any amount properly chargeable to cap-
ital account for property for which depreciation is allowable 
under section 168 (without regard to this section) and 
which is— 
"(i) nonresidential real property (as defined in sec-
tion 168(e)), or 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-597 
"(ii) section 1250 property (as defined in section 
1250(c)) which is functionally related and subordinate 
to property described in clause (i). 
"(B) CERTAIN EXPENDITURES NOT INCLUDED.— 
"(i) ACQUISITION COST.—In the case of a building 
described in paragraph (1)(B), the cost of acquiring 
the building or interest therein shall be treated as 
a qualified revitalization expenditure only to the extent 
that such cost does not exceed 30 percent of the aggre-
gate qualified revitalization expenditures (determined 
without regard to such cost) with respect to such build-
ing. 
"(ii) CREDITS.—^The term 'qualified revitalization 
expenditure' does not include any expenditure which 
the taxpayer may take into account in computing any 
credit allowable under this title unless the taxpayer 
elects to take the expenditure into account only for 
purposes of this section. 
"(c) DOLLAR LIMITATION.—The aggregate amount which may 
be treated as qualified revitalization expenditures with respect to 
any qualified revitalization building shall not exceed the lesser 
of— 
"(1) $10,000,000, or 
"(2) the commercial revitalization expenditure amount allo-
cated to such building under this section by the commercial 
revitalization agency for the State in which the building is 
located. 
"(d) COMMERCIAL REVITALIZATION EXPENDITURE AMOUNT.— 
"(1) IN GENERAL.—The aggregate commercial revitalization 
expenditure amount which a commercial revitalization agency 
may allocate for any calendar year is the amount of the State 
commercial revitalization expenditure ceiling determined under 
this paragraph for such calendar year for such agency. 
"(2) STATE COMMERCIAL REVITALIZATION EXPENDITURE CEIL-
ING.—^The State commercial revitalization expenditure ceiling 
applicable to any State— 
"(A) for each calendar year after 2001 and before 2010 
is $12,000,000 for each renewal community in the State, 
and 
"(B) for each calendar year thereafter is zero. 
"(3) COMMERCIAL REVITALIZATION AGENCY.—For purposes 
of this section, the term 'commercial revitalization agenc/ 
means any agency authorized by a State to carry out this 
section. 
"(4) TIME AND MANNER OF ALLOCATIONS.—^Allocations under 
this section shall be made at the same time and in the same 
manner as under paragraphs (1) and (7) of section 42(h). 
"(e) RESPONSIBILITIES OF COMMERCLVL REVITALIZATION AGEN-
CIES.— 
"(1) PLANS FOR ALLOCATION.—Notwithstanding any other 
provision of this section, the commercial revitalization expendi-
ture amount with respect to any building shall be zero unless— 
"(A) such amount was allocated pursuant to a qualified 
allocation plan of the commercial revitalization agency 
which is approved (in accordance with rules similar to 
the rules of section 147(f)(2) (other than subparagraph 
114 STAT. 2763A-598 
PUBLIC LAW 106-554—APPENDIX G 
(B)(ii) thereof)) by the governmental unit of which such 
agency is a part, and 
"(B) such agency notifies the chief executive officer 
(or its equivalent) of the local jurisdiction within which 
the building is located of such allocation and provides such 
individual a reasonable opportunity to comment on the 
allocation. 
"(2) QUALIFIED ALLOCATION PLAN.—For purposes of this 
subsection, the term 'qualified allocation plan' means any 
plan— 
"(A) which sets forth selection criteria to be used to 
determine priorities of the commercial revitalization agency 
which are appropriate to local conditions, 
"(B) which considers— 
"(i) the degree to which a project contributes to 
the implementation of a strategic plan that is devised 
for a renewal community through a citizen participa-
tion process, 
"(ii) the amount of any increase in permanent, 
full-time employment by reason of any project, and 
"(iii) the active involvement of residents and non-
profit groups within the renewal community, and 
"(C) which provides a procedure that the agency (or 
its agent) will follow in monitoring compliance with this 
section. 
"(f) SPECLVL RULES.— 
"(1) DEDUCTION IN LIEU OF DEPRECL^TION.—The deduction 
provided by this section for qualified revitalization expenditures 
shall— 
"(A) with respect to the deduction determined under 
subsection (a)(1), be in lieu of any depreciation deduction 
otherwise allowable on account of one-half of such expendi-
tures, and 
"(B) with respect to the deduction determined under 
subsection (a)(2), be in lieu of any depreciation deduction 
otherwise allowable on account of all of such expenditures. 
"(2) BASIS ADJUSTMENT, ETC.—For purposes of sections 1016 
and 1250, the deduction under this section shall be treated 
in the same manner as a depreciation deduction. For purposes 
of section 1250(b)(5), the straight line method of adjustment 
shall be determined without regard to this section. 
"(3) SUBSTANTIAL REHABILITATIONS TREATED AS SEPARATE 
BUILDINGS.—^A substantial rehabilitation (within the meaning 
of section 47(c)(1)(C)) of a building shall be treated as a separate 
building for purposes of subsection (a). 
"(4) CLARIFICATION OF ALLOWANCE OF DEDUCTION UNDER 
MINIMUM TAX.—Notwithstanding section 56(a)(1), the deduction 
under this section shall be allowed in determining alternative 
minimum taxable income under section 55. 
"(g) TERMINATION.—This section shall not apply to any building 
placed in service after December 31, 2009. 
"SEC. 1400J. INCREASE IN EXPENSING UNDER SECTION 179. 
"(a) IN GENERAL.—For purposes of section 1397A— 
"(1) a renewal community shall be treated as an empower-
ment zone. 
PUBLIC LAW 106-554^APPENDIX G 
114 STAT. 2763A-599 
"(2) a renewal community business shall be treated as 
an enterprise zone business, and 
"(3) qualified renewal property shall be treated as qualified 
zone property. 
"(b) QUALIFIED RENEWAL PROPERTY.—^For purposes of this 
section— 
"(1) IN GENERAL.—The term 'qualified renewal property' 
means any property to which section 168 applies (or would 
apply but for section 179) if— 
"(A) such property was acquired by the taxpayer by 
purchase (as defined in section 179(d)(2)) after December 
31, 2001, and before January 1, 2010, and 
"(B) such property would be qualified zone property 
(as defined in section 1397D) if references to renewal 
communities were substituted for references to empower-
ment zones in section 1397D. 
"(2) CERTAIN RULES TO APPLY.—The rules of subsections 
(a)(2) and (b) of section 1397D shall apply for purposes of 
this section.". 
(b) EXCEPTION FOR COMMERCIAL REVITALIZATION DEDUCTION 
FROM PASSIVE LOSS RULES.— 
(1) Paragraph (3) of section 469(i) is amended by 
redesignating subparagraphs (C), (D), and (E) as subparagraphs 
(D), (E), and (F), respectively, and by inserting after subpara-
graph (B) the following new subparagraph: 
"(C) 
EXCEPTION FOR COMMERCIAL REVITALIZATION 
DEDUCTION.—Subparagraph (A) shall not apply to any por-
tion of the passive activity loss for any taxable year which 
is attributable to the commercial revitalization deduction 
under section 14001.". 
(2) Subparagraph (E) of section 469(i)(3), as redesignated 
by subparagraph (A), is amended to read as follows: 
"(E) ORDERING RULES TO REFLECT EXCEPTIONS AND 
SEPARATE PHASE-OUTS.—If subparagraph (B), (C), or (D) 
applies for a taxable year, paragraph (1) shall be applied— 
"(i) first to the portion of the passive activity loss 
to which subparagraph (C) does not apply, 
"(ii) second to the portion of the passive activity 
credit to which subparagraph (B) or (D) does not apply, 
"(iii) third to the portion of such credit to which 
subparagraph (B) applies, 
"(iv) fourth to the portion of such loss to which 
subparagraph (C) applies, and 
"(v) then to the portion of such credit to which 
subparagraph (D) applies.". 
(3)(A) Subparagraph (B) of section 469(i)(6) is amended 
by striking "or" at the end of clause (i), by striking the period 
at the end of clause (ii) and inserting ", or", and by adding 
at the end the following new clause: 
"(iii) any deduction under section 14001 (relating 
to commercial revitalization deduction).". 
(B) The heading for such subparagraph (B) is amended 
by striking "OR REHABILITATION CREDIT" and inserting ", 
REHABILITATION 
CREDIT, 
OR COMMERCIAL 
REVITALIZATION 
DEDUCTION". 
(c) AUDIT AND REPORT.—Not later than January 31 of 2004, 
2007, and 2010, the Comptroller General of the United States 
114 STAT. 2763A-600 
PUBLIC LAW 106-554—APPENDIX G 
shall, pursuant to an audit of the renewal community program 
established under section 1400E of the Internal Revenue Code 
of 1986 (as added by subsection (a)) and the empowerment zone 
and enterprise community program under subchapter U of chapter 
1 of such Code, report to Congress on such program and its effect 
on poverty, unemployment, and economic growth within the des-
ignated renewal communities, empowerment zones, and enterprise 
communities. 
(d) CLERICAL AMENDMENT.—The table of subchapters for chap-
ter 1 is amended by adding at the end the following new item: 
"Subchapter X. Renewal Communities.". 
SEC. 102. WORK OPPORTUNITY CREDIT FOR HIRING YOUTH RESIDING 
IN RENEWAL COMMUNITIES. 
(a) HiGH-RiSK YOUTH.—Subparagraphs (A)(ii) and (B) of section 
51(d)(5) are each amended by striking "empowerment zone or enter-
prise community" and inserting "empowerment zone, enterprise 
community, or renewal community". 
(b) QUALIFIED SUMMER YOUTH EMPLOYEE.—Clause (iv) of sec-
tion 51(d)(7)(A) is amended by striking "empowerment zone or 
enterprise community" and inserting "empowerment zone, enter-
prise community, or renewal community". 
(c) HEADINGS.—Paragraphs (5)(B) and (7)(C) of section 51(d) 
are each amended by inserting "OR COMMUNITY" in the heading 
after "ZONE". 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to individuals who begin work for the employer after 
December 31, 200 L 
Subtitle B—Extension and Expansion of 
Empowerment Zone Incentives 
SEC. 111. AUTHORITY TO DESIGNATE 9 ADDITIONAL EMPOWERMENT 
ZONES. 
Section 1391 is amended by adding at the end the following 
new subsection: 
"(h) ADDITIONAL DESIGNATIONS PERMITTED.— 
"(1) IN GENERAL.—In addition to the areas designated under 
subsections (a) and (g), the appropriate Secretaries may des-
ignate in the aggregate an additional 9 nominated areas as 
empowerment zones under this section, subject to the availabil-
ity of eligible nominated areas. Of that number, not more 
than seven may be designated in urban areas and not more 
than 2 may be designated in rural areas. 
"(2) 
PERIOD 
DESIGNATIONS 
MAY BE 
MADE 
AND TAKE 
EFFECT.—^A designation may be made under this subsection 
after the date of the enactment of this subsection and before 
January 1, 2002. Subject to subparagraphs (B) and (C) of sub-
section (d)(1), such designations shall remain in effect during 
the period beginning on January 1, 2002, and ending on Decem-
ber 31, 2009. 
"(3) 
MODIFICATIONS TO ELIGIBILITY CRITERL\, ETC—The 
rules of subsection (g)(3) shall apply to designations under 
this subsection. 
PUBLIC LAW 106-554—APPENDIX G 114 STAT. 2763A-601 
"(4) 
EMPOWERMENT 
ZONES 
WHICH 
BECOME 
RENEWAL 
COMMUNITIES.—The number of areas which may be designated 
as empowerment zones under this subsection shall be increased 
by 1 for each area which ceases to be an empowerment zone 
by reason of section 1400E(e). Each additional area designated 
by reason of the preceding sentence shall have the same urban 
or rural character as the area it is replacing.". 
SEC. 112. EXTENSION OF EMPOWERMENT ZONE TREATMENT THROUGH 
2009. 
Subparagraph (A) of section 1391(d)(1) (relating to period for 
which designation is in effect) is amended to read as follows: 
"(A)(i) in the case of an empowerment zone, December 
31, 2009, or 
"(ii) in the case of an enterprise community, the close 
of the 10th calendar year beginning on or after such date 
of designation,". 
SEC. 113. 20 PERCENT EMPLOYMENT CREDIT FOR ALL EMPOWERMENT 
ZONES. 
(a) 20 PERCENT CREDIT.—Subsection (b) of section 1396 (relat-
ing to empowerment zone employment credit) is amended to read 
as follows: 
"(b) APPLICABLE PERCENTAGE.—For purposes of this section, 
the applicable percentage is 20 percent.". 
(b) ALL EMPOWERMENT ZONES ELIGIBLE FOR CREDIT.—Section 
1396 is amended by striking subsection (e). 
(c) CONFORMING AMENDMENT.—Subsection (d) of section 1400 
is amended to read as follows: 
"(d) SPECIAL RULE FOR APPLICATION OF EMPLOYMENT CREDIT.— 
With respect to the DC Zone, section 1396(d)(1)(B) (relating to 
empowerment zone employment credit) shall iDe applied by 
substituting 'the District of Columbia' for 'such empowerment 
zone. . 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to wages paid or incurred after December 31, 2001. 
SEC. 114. INCREASED EXPENSING UNDER SECTION 179. 
(a) IN GENERAL.—Subparagraph (A) of section 1397A(a)(l) is 
amended by striking "$20,000" and inserting "$35,000". 
(b) EXPENSING FOR PROPERTY USED IN DEVELOPABLE SITES.— 
Section 1397A is amended by striking subsection (c). 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2001. 
SEC. 115. HIGHER LIMITS ON TAX-EXEMPT EMPOWERMENT ZONE 
FACILITY BONDS. 
(a) IN GENERAL.—Paragraph (3) of section 1394(f) (relating 
to bonds for empowerment zones designated under section 1391(g)) 
is amended to read as follows: 
"(3) EMPOWERMENT ZONE FACILITY BOND.—For purposes 
of this subsection, the term 'empowerment zone facility bond' 
means Einy bond which would be described in subsection (a) 
if— 
"(A) in the case of obligations issued before January 
1, 2002, only empowerment zones designated under section 
1391(g) were taken into account under sections 1397C and 
1397D, and 
79-194 O - 00 - 21: QL 3 Part 5 
114 STAT. 2763A-602 
PUBLIC LAW 106-554—APPENDIX G 
"(B) in the case of obligations issued after December 
31, 2001, all empowerment zones (other than the District 
of Columbia Enterprise Zone) were taken into account 
under sections 1397C and 1397D.". 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to obligations issued after December 31, 2001. 
SEC. 116. NONRECOGNITION OF GAIN ON ROLLOVER OF EMPOWER-
MENT ZONE INVESTMENTS. 
(a) IN GENERAL.—Part III of subchapter U of chapter 1 is 
amended— 
(1) by redesignating subpart C as subpart D, 
(2) by redesignating sections 1397B and 1397C as sections 
1397C and 1397D, respectively, and 
(3) by inserting after subpart B the following new subpart: 
"Subpart C—Nonrecognition of Gain on Rollover 
of Empowerment Zone Investments 
"Sec. 1397B. Nonrecognition of gain on rollover of empowerment zone in-
vestments. 
"SEC. 1397B. NONRECOGNITION OF GAIN ON ROLLOVER OF EMPOWER-
MENT ZONE INVESTMENTS. 
"(a) NONRECOGNITION OF GAIN.—In the case of any sale of 
a qualified empowerment zone asset held by the taxpayer for more 
than 1 year and with respect to which such taxpayer elects the 
application of this section, gain from such sale shall be recognized 
only to the extent that the amount realized on such sale exceeds— 
"(1) the cost of any qualified empowerment zone asset 
(with respect to the same zone as the asset sold) purchased 
by the taxpayer during the 60-day period beginning on the 
date of such sale, reduced by 
"(2) any portion of such cost previously taken into account 
under this section. 
"(b) DEFINITIONS AND SPECIAL RULES.—For purposes of this 
section— 
"(1) QUALIFIED EMPOWERMENT ZONE ASSET.— 
"(A) IN GENERAL.—^The term 'qualified empowerment 
zone asset' means any property which would be a qualified 
community asset (as defined in section 1400F) if in section 
1400F— 
"(i) references to empowerment zones were sub-
stituted for references to renewal communities, 
"(ii) references to enterprise zone businesses (as 
defined in section 1397C) were substituted for ref-
erences to renewal community businesses, and 
"(iii) the date of the enactment of this paragraph 
were substituted for 'December 31, 2001' each place 
it appears. 
"(B) TREATMENT OF DC ZONE.—The District of Columbia 
Enterprise Zone shall not be treated as an empowerment 
zone for purposes of this section. 
"(2) CERTAIN GAIN NOT ELIGIBLE FOR ROLLOVER.—This sec-
tion shall not apply to— 
"(A) any gain which is treated as ordinary income 
for purposes of this subtitle, and 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-603 
"(B) any gain which is attributable to real property, 
or an intangible asset, which is not an integral part of 
an enterprise zone business. 
"(3) PURCHASE.—^A taxpayer shall be treated as having 
purchased any property if, but for paragraph (4), the unadjusted 
basis of such property in the hands of the taxpayer would 
be its cost (within the meaning of section 1012). 
"(4) BASIS ADJUSTMENTS.—If gain from any sale is not 
recognized by reason of subsection (a), such gain shall be 
applied to reduce (in the order acquired) the basis for determin-
ing gain or loss of any qualified empowerment zone asset which 
is purchased by the taxpayer during the 60-day period described 
in subsection (a). This paragraph shall not apply for purposes 
of section 1202. 
"(5) 
HOLDING 
PERIOD.—For purposes 
of 
determining 
whether the nonrecognition of gain under subsection (a) applies 
to any qualified empowerment zone asset which is sold— 
"(A) the taxpayer's holding period for such asset and 
the asset referred to in subsection (a)(1) shall be determined 
without regard to section 1223, and 
"(B) only the first year of the taxpayer's holding period 
for the asset referred to in subsection (a)(1) shall be taken 
into account for purposes of paragraphs (2)(A)(iii), (3)(C), 
and (4)(A)(iii) of section 1400F(b).". 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (23) of section 1016(a) is amended— 
(A) by striking "or 1045" and inserting "1045, or 
1397B", and 
(B) by striking "or 1045(b)(4)" and inserting "1045(b)(4), 
or 1397B(b)(4)". 
(2) Paragraph (15) of section 1223 is amended to read 
as follows: 
"(15) 
Except 
for 
purposes 
of 
sections 
1202(a)(2), 
1202(c)(2)(A), 1400B(b), and 1400F(b), in determining the period 
for which the taxpayer has held property the acquisition of 
which resulted under section 1045 or 139 7B in the nonrecogni-
tion of any part of the gain realized on the sale of other 
property, there shall be included the period for which such 
other property has been held as of the date of such sale.". 
(3) Paragraph (2) of section 1394(b) is amended— 
(A) by striking "section 1397C" and inserting "section 
1397D", and 
(B) by striking "section 1397C(a)(2)" and inserting "sec-
tion 1397D(a)(2)". 
(4) Paragraph (3) of section 1394(b) is amended— 
(A) by striking "section 1397B" each place it appears 
and inserting "section 1397C", and 
(B) by striking "section 1397B(d)" and inserting "sec-
tion 1397C(d)". 
(5) Sections 1400(e) and 1400B(c) are each amended by 
striking "section 1397B" each place it appears and inserting 
"section 1397C". 
114 STAT. 2763A-604 PUBLIC LAW 106-554—APPENDIX G 
(6) The table of subparts for part III of subchapter U 
of chapter 1 is amended by striking the last item and inserting 
the following new items: 
"Subpart C. Nonrecognition of gain on rollover of empowerment zone invest-
ments. 
"Subpart D. General provisions.". 
(7) The table of sections for subpart D of such part III 
is amended to read as follows: 
"Sec. 1397C. Enterprise zone business defined. 
"Sec. 1397D. Qualified zone property defined.". 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to qualified empowerment zone assets acquired after 
the date of the enactment of this Act. 
SEC. 117. INCREASED EXCLUSION OF GAIN ON SALE OF EMPOWER-
MENT ZONE STOCK. 
(a) IN GENERAL.—Subsection (a) of section 1202 is amended 
to read as follows: 
"(a) EXCLUSION.— 
"(1) IN GENERAL.—^In the case of a taxpayer other than 
a corporation, gross income shall not include 50 percent of 
any gain from the sale or exchange of qualified small business 
stock held for more than 5 years. 
"(2) EMPOWERMENT ZONE BUSINESSES.— 
"(A) IN GENERAL.—In the case of qualified small busi-
ness stock acquired after the date of the enactment of 
this paragraph in a corporation which is a qualified busi-
ness entity (as defined in section 1397C(b)) during substan-
tially all of the taxpayer's holding period for such stock, 
paragraph (1) shall be applied by substituting '60 percent' 
for '50 percent'. 
"(B) CERTAIN RULES TO APPLY.—Rules similar to the 
rules of paragraphs (5) and (7) of section 1400B(b) shall 
apply for purposes of this paragraph. 
"(C) GAIN AFTER 2014 NOT QUALIFIED.—Subparagraph 
(A) shall not apply to gain attributable to periods after 
December 31, 2014. 
"(D) TREATMENT OF DC ZONE.—The District of Colum-
bia Enterprise Zone shall not be treated as an empower-
ment zone for purposes of this paragraph.". 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (8) of section 1(h) is amended by striking 
"means" and all that follows and inserting "means the excess 
of— 
"(A) the gain which would be excluded from gross 
income under section 1202 but for the percentage limitation 
in section 1202(a), over 
"(B) the gain excluded from gross income under section 
1202.". 
(2) The section heading for section 1202 is amended by 
striking "50-PERCENT" and inserting "PARTIAL". 
(3) The table of sections for part I of subchapter P of 
chapter 1 is amended by striking "50-percent" and inserting 
"Partial". 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-605 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to stock acquired after the date of the enactment of 
this Act. 
Subtitle C—New Markets Tax Credit 
SEC. 121. NEW MARKETS TAX CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of subchapter A of 
chapter 1 (relating to business-related credits) is amended by adding 
at the end the following new section: 
"SEC. 45D. NEW MARKETS TAX CREDIT. 
"(a) ALLOWANCE OF CREDIT.— 
"(1) IN GENERAL.—For purposes of section 38, in the case 
of a taxpayer who holds a qualified equity investment on a 
credit allowance date of such investment which occurs during 
the taxable year, the new markets tax credit determined under 
this section for such taxable year is an amount equal to the 
applicable percentage of the amount paid to the qualified 
community development entity for such investment at its origi-
nal issue. 
"(2) APPLICABLE PERCENTAGE.—For purposes of paragraph 
(1), the applicable percentage is— 
"(A) 5 percent with respect to the first 3 credit allow-
ance dates, and 
"(B) 6 percent with respect to the remainder of the 
credit allowance dates. 
"(3) CREDIT ALLOWANCE DATE.—^For purposes of paragraph 
(1), the term 'credit allowance date' means, with respect to 
any qualified equity investment— 
"(A) the date on which such investment is initially 
made, and 
"(B) each of the 6 anniversary dates of such date there-
after. 
"(b) QUALIFIED EQUITY INVESTMENT.—^For purposes of this 
section— 
"(1) IN GENERAL.—The term 'qualified equity investment' 
means any equity investment in a qualified community develop-
ment entity if— 
"(A) such investment is acquired by the taxpayer at 
its original issue (directly or through an underwriter) solely 
in exchange for cash, 
"(B) substantially all of such cash is used by the quali-
fied community development entity to make qualified low-
income community investments, and 
"(C) such investment is designated for purposes of this 
section by the qualified community development entity. 
Such term shall not include any equity investment issued by 
a qualified community development entity more than 5 years 
after the date that such entity receives an allocation under 
subsection (f). Any allocation not used within such 5-year period 
may be reallocated by the Secretary under subsection (f). 
"(2) LIMITATION.—The maximum amount of equity invest-
ments issued by a qualified community development entity 
which may be designated under paragraph (1)(C) by such entity 
114 STAT. 2763A-606 
PUBLIC LAW 106-554—APPENDIX G 
shall not exceed the portion of the limitation amount allocated 
under subsection (f) to such entity. 
"(3) 
SAFE HARBOR FOR DETERMINING USE OF CASH.—The 
requirement of paragraph (1)(B) shall be treated as met if 
at least 85 percent of the aggregate gross assets of the qualified 
community development entity are invested in qualified low-
income community investments. 
"(4) TREATMENT OF SUBSEQUENT PURCHASERS.—^The term 
'qualified equity investment' includes any equity investment 
which would (but for paragraph (1)(A)) be a qualified equity 
investment in the hands of the taxpayer if such investment 
was a qualified equity investment in the hands of a prior 
holder. 
"(5) REDEMPTIONS.—^A rule similar to the rule of section 
1202(c)(3) shall apply for purposes of this subsection. 
"(6) EQUITY INVESTMENT.—The term 'equity investment' 
means— 
"(A) any stock (other than nonqualified preferred stock 
as defined in section 351(g)(2)) in an entity which is a 
corporation, and 
"(B) any capital interest in an entity which is a partner-
ship. 
"(c) QUALIFIED COMMUNITY DEVELOPMENT ENTITY.—For pur-
poses of this section— 
"(1) IN GENERAL.—The term 'qualified community develop-
ment entity means any domestic corporation or partnership 
if— 
"(A) the primary mission of the entity is serving, or 
providing investment capital for, low-income communities 
or low-income persons, 
"(B) the entity maintains accountability to residents 
of low-income communities through their representation 
on any governing board of the entity or on any advisory 
board to the entity, and 
"(C) the entity is certified by the Secretary for purposes 
of this section as being a qualified community development 
entity. 
"(2) 
SPECIAL RULES FOR CERTAIN ORGANIZATIONS.—The 
requirements of paragraph (1) shall be treated as met by— 
"(A) any specialized small business investment com-
pany (as defined in section 1044(c)(3)), and 
"(B) any community development financial institution 
(as defined in section 103 of the Community Development 
Banking and Financial Institutions Act of 1994 (12 U.S.C. 
4702)). 
"(d) 
QUALIFIED LOW-INCOME COMMUNITY INVESTMENTS.—For 
purposes of this section— 
"(1) IN GENERAL.—The term 'qualified low-income commu-
nity investment' means— 
"(A) any capital or equity investment in, or loan to, 
any qualified active low-income community business, 
"(B) the purchase from another qualified community 
development entity of any loan made by such entity which 
is a qualified low-income community investment, 
"(C) financial counseling and other services specified 
in regulations prescribed by the Secretary to businesses 
located in, and residents of, low-income communities, and 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-607 
"(D) any equity investment in, or loan to, any qualified 
community development entity. 
"(2) 
QUALIFIED ACTIVE 
LOW-INCOME COMMUNITY BUSI-
NESS.— 
"(A) IN GENERAL.—For purposes of paragraph (1), the 
term 'qualified active low-income community business' 
means, with respect to any taxable year, any corporation 
(including a nonprofit corporation) or partnership if for 
such year— 
"(i) at least 50 percent of the total gross income 
of such entity is derived from the active conduct of 
a qualified business within any low-income community, 
"(ii) a substantial portion of the use of the tangible 
property of such entity (whether owned or leased) is 
within any low-income community, 
"(iii) a substantial portion of the services per-
formed for such entity by its employees are performed 
in any low-income community, 
"(iv) less than 5 percent of the average of the 
aggregate unadjusted bases of the property of such 
entity is attributable to collectibles (as defined in sec-
tion 408(m)(2)) other than collectibles that are held 
primarily for sale to customers in the ordinary course 
of such business, and 
"(v) less than 5 percent of the average of the aggre-
gate unadjusted bases of the property of such entity 
is attributable to nonqualified financial property (as 
defined in section 1397C(e)). 
"(B) PROPRIETORSHIP.—Such term shall include any 
business carried on by an individual as a proprietor if 
such business would meet the requirements of subpara-
graph (A) were it incorporated. 
"(C) PORTIONS OF BUSINESS MAY BE QUALIFIED ACTIVE 
LOW-INCOME COMMUNITY BUSINESS.—The term 'qualified 
active low-income community business' includes any trades 
or businesses which would qualify as a qualified active 
low-income 
community 
business 
if 
such 
trades 
or 
businesses were separately incorporated. 
"(3) QUALIFIED BUSINESS.—For purposes of this subsection, 
the term 'qualified business' has the meaning given to such 
term by section 1397C(d); except that— 
"(A) in lieu of applying paragraph (2)(B) thereof, the 
rental to others of real property located in any low-income 
community shall be treated as a qualified business if there 
are substantial improvements located on such property, 
and 
"(B) paragraph (3) thereof shall not apply. 
"(e) LOW-INCOME COMMUNITY.—For purposes of this section— 
"(1) IN GENERAL.—The term 'low-income community' means 
any population census tract if— 
"(A) the poverty rate for such tract is at least 20 
percent, or 
"(B)(i) in the case of a tract not located within a metro-
politan area, the median family income for such tract does 
not exceed 80 percent of statewide median family income, 
or 
114 STAT. 2763A-608 
PUBLIC LAW 106-554—APPENDIX G 
"(ii) in the case of a tract located within a metropoHtan 
area, the median family income for such tract does not 
exceed 80 percent of the greater of statewide median family 
income or the metropolitan area median family income. 
Subparagraph (B) shall be applied using possessionwide median 
family income in the case of census tracts located within a 
possession of the United States. 
"(2) TARGETED AREAS.—The Secretary may designate any 
area within any census tract as a low-income community if— 
"(A) the boundary of such area is continuous, 
"(B) the area would satisfy the requirements of para-
graph (1) if it were a census tract, and 
"(C) an inadequate access to investment capital exists 
in such area. 
"(3) AREAS NOT WITHIN CENSUS TRACTS.—In the case of 
an area which is not tracted for population census tracts, the 
equivalent county divisions (as defined by the Bureau of the 
Census for purposes of defining poverty areas) shall be used 
for purposes of determining poverty rates and median family 
income. 
"(f) NATIONAL LIMITATION ON AMOUNT OF INVESTMENTS DES-
IGNATED.— 
"(1) IN GENERAL.—There is a new markets tax credit limita-
tion for each calendar year. Such limitation is— 
"(A) $1,000,000,000 for 2001, 
"(B) $1,500,000,000 for 2002 and 2003, 
"(C) $2,000,000,000 for 2004 and 2005, and 
"(D) $3,500,000,000 for 2006 and 2007. 
"(2) ALLOCATION OF LIMITATION.—The limitation under 
paragraph (1) shall be allocated by the Secretary among quali-
fied community development entities selected by the Secretary. 
In making allocations under the preceding sentence, the Sec-
retary shall give priority to any entity— 
"(A) with a record of having successfully provided cap-
ital or technical assistance to disadvantaged businesses 
or communities, or 
"(B) which intends to satisfy the requirement under 
subsection 
(b)(1)(B) by 
making 
qualified 
low-income 
community investments in 1 or more businesses in which 
persons unrelated to such entity (within the meaning of 
section 267(b) or 707(b)(1)) hold the majority 
equity 
interest. 
"(3) CARRYOVER OF UNUSED LIMITATION.—If the new mar-
kets tax credit limitation for any calendar year exceeds the 
aggregate amount allocated under paragraph (2) for such year, 
such limitation for the succeeding calendar year shall be 
increased by the amount of such excess. No amount may be 
carried under the preceding sentence to any calendar year 
after 2014. 
"(g) RECAPTURE OF CREDIT IN CERTAIN CASES.— 
"(1) IN GENERAL.—If, at any time during the 7-year period 
beginning on the date of the original issue of a qualified equity 
investment in a qualified community development entity, there 
is a recapture event with respect to such investment, then 
the tax imposed by this chapter for the taxable year in which 
such event occurs shall be increased by the credit recapture 
amount. 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-609 
"(2) CREDIT RECAPTURE AMOUNT.—For purposes of para-
graph (1), the credit recapture amount is an amount equal 
to the sum of— 
"(A) the aggregate decrease in the credits allowed to 
the taxpayer under section 38 for all prior taxable years 
which would have resulted if no credit had been determined 
under this section with respect to such investment, plus 
"(B) interest at the underpayment rate established 
under section 6621 on the amount determined under 
subparagraph (A) for each prior taxable year for the period 
beginning on the due date for filing the return for the 
prior taxable year involved. 
No deduction shall be allowed under this chapter for interest 
described in subparagraph (B). 
"(3) RECAPTURE EVENT.—^For purposes of paragraph (1), 
there is a recapture event with respect to an equity investment 
in a qualified community development entity i
f
— 
"(A) such entity ceases to be a qualified community 
development entity, 
"(B) the proceeds of the investment cease to be used 
as required of subsection (b)(1)(B), or 
"(C) such investment is redeemed by such entity. 
"(4) SPECIAL RULES.— 
"(A) TAX BENEFIT RULE.—The tax for the taxable year 
shall be increased under paragraph (1) only with respect 
to credits allowed by reason of this section which were 
used to reduce tax liability. In the case of credits not 
so used to reduce tax liability, the carryforwards and 
carrybacks 
under 
section 39 shall be appropriately 
adjusted. 
"(B) No CREDITS AGAINST TAX.—Any increase in tax 
under this subsection shall not be treated as a tax imposed 
by this chapter for purposes of determining the amount 
of any credit under this chapter or for purposes of section 
55. 
"(h) BASIS REDUCTION.—The basis of any qualified equity 
investment shall be reduced by the amount of any credit determined 
under this section with respect to such investment. This subsection 
shall not apply for purposes of sections 1202, 1400B, and 1400F. 
"(i) REGULATIONS.—The Secretary shall prescribe such regula-
tions as may be appropriate to carry out this section, including 
regulations— 
"(1) which limit the credit for investments which are 
directly or indirectly subsidized by other Federal tax benefits 
(including the credit under section 42 and the exclusion from 
gross income under section 103), 
"(2) which prevent the abuse of the purposes of this section, 
"(3) which provide rules for determining whether the 
requirement of subsection (b)(1)(B) is treated as met, 
"(4) which impose appropriate reporting requirements, and 
"(5) which apply the provisions of this section to newly 
formed entities.", 
(b) CREDIT MADE PART OF GENERAL BUSINESS CREDIT.— 
(1) IN GENERAL.—Subsection (b) of section 38 is amended 
by striking "plus" at the end of paragraph (11), by striking 
the period at the end of paragraph (12) and inserting ", plus", 
and by adding at the end the following new paragraph: 
114 STAT. 2763A-610 PUBLIC LAW 106-554—APPENDIX G 
"(13) the new markets tax credit determined under section 
45D(a).". 
(2) LIMITATION ON CARRYBACK.—Subsection (d) of section 
39 is amended by adding at the end the following new para-
graph: 
"(9) No CARRYBACK OF NEW MARKETS TAX CREDIT BEFORE 
JANUARY 1, 2001.—No portion of the unused business credit 
for any taxable year which is attributable to the credit under 
section 45D may be carried back to a taxable year ending 
before January 1, 2001.". 
(c) DEDUCTION FOR UNUSED CREDIT.—Subsection (c) of section 
196 is amended by striking "and" at the end of paragraph (7), 
by striking the period at the end of paragraph (8) and inserting 
", and", and by adding at the end the following new paragraph: 
"(9) the new markets tax credit determined under section 
45D(a).". 
(d) CLERICAL AMENDMENT.—The table of sections for subpart 
D of part IV of subchapter A of chapter 1 is amended by adding 
at the end the following new item: 
"Sec. 45D. New markets tax credit.". 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to investments made after December 31, 2000. 
(f) GUIDANCE ON ALLOCATION OF NATIONAL LIMITATION.—Not 
later than 120 days after the date of the enactment of this Act, 
the Secretary of the Treasury or the Secretary's delegate shall 
issue guidance which specifies— 
(1) how entities shall apply for an allocation under section 
45D(f )(2) of the Internal Revenue Code of 1986, as added by 
this section; 
(2) the competitive procedure through which such alloca-
tions are made; and 
(3) the actions that such Secretary or delegate shall take 
to ensure that such allocations are properly made to appropriate 
entities. 
(g) AUDIT AND REPORT.—^Not later than January 31 of 2004, 
2007, and 2010, the Comptroller General of the United States 
shall, pursuant to an audit of the new markets tax credit program 
established under section 45D of the Internal Revenue Code of 
1986 (as added by subsection (a)), report to Congress on such 
program, including all qualified community development entities 
that receive an allocation under the new markets credit under 
such section. 
Subtitle D—Improvements in Low-Income 
Housing Credit 
SEC. 131. MODIFICATION OF STATE CEILING ON LOW-INCOME HOUS-
ING CREDIT. 
(a) IN GENERAL.—Clauses (i) and (ii) of section 42(h)(3)(C) 
(relating to State housing credit ceiling) are amended to read as 
follows: 
"(i) the unused State housing credit ceiling (if any) 
of such State for the preceding calendar year, 
"(ii) the greater of— 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-611 
"(I) $1.75 ($1.50 for 2001) multiplied by the 
State population, or 
"(II) $2,000,000,". 
(b) ADJUSTMENT OF STATE CEILING FOR INCREASES IN COST-
OF-LiviNG.—Paragraph (3) of section 42(h) (relating to housing 
credit dollar amount for agencies) is amended by adding at the 
end the following new subparagraph: 
"(H) COST-OF-LIVING ADJUSTMENT.— 
"(i) IN GENERAL.—In the case of a calendar year 
after 2002, the $2,000,000 and $1.75 amounts in 
subparagraph (C) shall each be increased by an amount 
equal to— 
"(I) such dollar amount, multiplied by 
"(II) the cost-of-living adjustment determined 
under section 1(f)(3) for such calendar year by 
substituting 'calendar year 2001' for 'calendar year 
1992' in subparagraph (B) thereof 
"(ii) ROUNDING.— 
"(I) In the case of the $2,000,000 amount, any 
increase under clause (i) which is not a multiple 
of $5,000 shall be rounded to the next lowest mul-
tiple of $5,000. 
"(II) In the case of the $1.75 amount, any 
increase under clause (i) which is not a multiple 
of 5 cents shall be rounded to the next lowest 
multiple of 5 cents.". 
(c) CONFORMING AMENDMENTS.— 
(1) Section 42(h)(3)(C), as amended by subsection (a), is 
amended— 
(A) by striking "clause (ii)" in the matter following 
clause (iv) and inserting "clause (i)"; and 
(B) by striking "clauses (i)" in the matter following 
clause (iv) and inserting "clauses (ii)". 
(2) Section 42(h)(3)(D)(ii) is amended— 
(A) by striking "subparagraph (C)(ii)" and inserting 
"subparagraph (C)(i)"; and 
(B) by striking "clauses (i)" in subclause (II) and insert-
ing "clauses (ii)". 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to calendar years after 2000. 
SEC. 132. MODIFICATION OF CRITERIA FOR ALLOCATING HOUSING 
CREDITS AMONG PROJECTS. 
(a) SELECTION CRITERIA.—Subparagraph (C) of section 42(m)(l) 
(relating to certain selection criteria must be used) is amended— 
(1) by inserting ", including whether the project includes 
the use of existing housing as part of a community revitalization 
plan" before the comma at the end of clause (iii); and 
(2) by striking clauses (v), (vi), and (vii) and inserting 
the following new clauses: 
"(v) tenant populations with special housing needs, 
"(vi) public housing waiting lists, 
"(vii) tenant populations of individuals with chil-
dren, and 
"(viii) projects intended for eventual tenant owner-
ship.". 
114 STAT. 2763A-612 
PUBLIC LAW 106-554—APPENDIX G 
(b) PREFERENCE FOR COMMUNITY REVITALIZATION PROJECTS 
LOCATED IN QUALIFIED CENSUS TRACTS.—Clause (ii) of section 
42(m)(l)(B) is amended by striking "and" at the end of subclause 
(I), by adding "and" at the end of subclause (II), and by inserting 
after subclause (II) the following new subclause: 
"(III) projects which are located in qualified 
census tracts (as defined in subsection (d)(5)(C)) 
and the development of which contributes to a 
concerted community revitalization plan,". 
SEC. 133. ADDITIONAL RESPONSIBILITIES OF HOUSING CREDIT AGEN-
CIES. 
(a) MARKET STUDY; PUBLIC DISCLOSURE OF RATIONALE FOR 
NOT 
FOLLOWING CREDIT ALLOCATION PRIORITIES.—Subparagraph 
(A) of section 42(m)(l) (relating to responsibilities of housing credit 
agencies) is amended l3y striking "and" at the end of clause (i), 
by striking the period at the end of clause (ii) and inserting a 
comma, and by adding at the end the following new clauses: 
"(iii) a comprehensive market study of the housing 
needs of low-income individuals in the area to be served 
by the project is conducted before the credit allocation 
is made and at the developer's expense by a disin-
terested party who is approved by such agency, and 
"(iv) a written explanation is available to the gen-
eral public for any allocation of a housing credit dollar 
amount which is not made in accordance with estab-
lished priorities and selection criteria of the housing 
credit agency.". 
(b) SITE VISITS.—Clause (iii) of section 42(m)(l)(B) (relating 
to qualified allocation plan) is amended by inserting before the 
period "and in monitoring for noncompliance with habitability 
standards through regular site visits". 
SEC. 134. MODIFICATIONS TO RULES RELATING TO BASIS OF BUILDING 
WHICH IS ELIGIBLE FOR CREDIT. 
(a) ADJUSTED BASIS TO INCLUDE PORTION OF CERTAIN BUILD-
INGS USED BY LOW-INCOME INDIVIDUALS WHO ARE NOT TENANTS 
AND BY PROJECT EMPLOYEES.—Paragraph (4) of section 42(d) (relat-
ing to special rules relating to determination of adjusted basis) 
is amended— 
(1) by striking "subparagraph (B)" in subparagraph (A) 
and inserting "subparagraphs (B) and (C)"; 
(2) by redesignating subparagraph (C) as subparagraph 
(D); and 
(3) by inserting after subparagraph (B) the following new 
subparagraph: 
"
(
C
) 
INCLUSION 
OF 
BASIS 
OF 
PROPERTY 
USED 
TO 
PROVIDE 
SERVICES FOR CERTAIN NONTENANTS.— 
"(i) IN GENERAL.—The adjusted basis of any build-
ing located in a qualified census tract (as defined in 
paragraph (5)(C)) shall be determined by taking into 
account the adjusted basis of property (of a character 
subject to the allowance for depreciation and not other-
wise taken into account) used throughout the taxable 
year in providing any community service facility. 
"(ii) LIMITATION.—The increase in the adjusted 
basis of any building which is taken into account by 
reason of clause (i) shall not exceed 10 percent of 
PUBLIC LAW 106-554—APPENDIX G 114 STAT. 2763A-613 
the eligible basis of the qualified low-income housing 
project of which it is a part. For purposes of the preced-
ing sentence, all community service facilities which 
are part of the same qualified low-income housing 
project shall be treated as one facility. 
"(iii) COMMUNITY SERVICE FACILITY.—^For purposes 
of this subparagraph, the term 'community service 
facility' means any facility designed to serve primarily 
individuals whose income is 60 percent or less of area 
median income (within the meaning of subsection 
(g)(1)(B)).". 
(b) 
CERTAIN NATIVE AMERICAN HOUSING ASSISTANCE DIS-
REGARDED IN DETERMINING WHETHER BUILDING IS FEDERALLY SUB-
SIDIZED FOR PURPOSES OF THE LOW-INCOME HOUSING CREDIT.— 
Subparagraph (E) of section 42(i)(2) (relating to determination of 
whether building is federally subsidized) is amended— 
(1) in clause (i), by inserting "or the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4101 et seq.) (as in effect on October 1, 1997)" after 
"this subparagraph)"; and 
(2) in the subparagraph heading, by inserting "OR NATIVE 
AMERICAN HOUSING ASSISTANCE" after "HOME ASSISTANCE". 
SEC. 135. OTHER MODIFICATIONS. 
(a) ALLOCATION OF CREDIT LIMIT TO CERTAIN BUILDINGS.— 
(1) The first sentence of section 42(h)(l)(E)(ii) is amended 
by striking "(as of the first place it appears and inserting 
"(as of the later of the date which is 6 months after the 
date that the allocation was made or". 
(2) The last sentence of section 42(h)(3)(C) is amended 
by striking "project which" and inserting "project which fails 
to meet the 10 percent test under paragraph (l)(E)(ii) on a 
date after the close of the calendar year in which the allocation 
was made or which". 
(b) DETERMINATION OF WHETHER BUILDINGS ARE LOCATED IN 
HIGH COST AREAS.—The first sentence of section 42(d)(5)(C)(ii)(I) 
is amended— 
(1) by inserting "either" before "in which 50 percent"; and 
(2) by inserting before the period "or which has a poverty 
rate of at least 25 percent". 
SEC. 136. CARRYFORWARD RULES. 
(a) IN GENERAL.—Clause (ii) of section 42(h)(3)(D) (relating 
to unused housing credit carryovers allocated among certain States) 
is amended by striking "the excess" and all that follows and insert-
ing "the excess (if any) of— 
"(I) the unused State housing credit ceiling 
for the year preceding such year, over 
"(II) the aggregate housing credit 
dollar 
amount allocated for such year.". 
(b) CONFORMING AMENDMENT.—The second sentence of section 
42(h)(3)(C) (relating to State housing credit ceiling) is amended 
by striking "clauses (i) and (iii)" and inserting "clauses (i) through 
(iv)". 
SEC. 137. EFFECTIVE DATE. 
Except as otherwise provided in this subtitle, the amendments 
made by this subtitle shall apply to— 
114 STAT. 2763A-614 PUBLIC LAW 106-554—APPENDIX G 
(1) housing credit dollar amounts allocated after December 
31, 2000; and 
(2) buildings placed in service after such date to the extent 
paragraph (1) of section 42(h) of the Internal Revenue Code 
of 1986 does not apply to any building by reason of paragraph 
(4) thereof, but only with respect to bonds issued after such 
date. 
Subtitle E—Other Community Renewal 
and New Markets Assistance 
PART I—PROVISIONS RELATING TO HOUSING 
AND SUBSTANCE ABUSE PREVENTION AND 
TREATMENT 
SEC. 141. TRANSFER OF UNOCCUPIED AND SUBSTANDARD HUD-HELD 
HOUSING TO LOCAL GOVERNMENTS AND COMMUNITY 
DEVELOPMENT CORPORATIONS. 
Section 204 of the Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations 
Act, 1997 (12 U.S.C. 1715z-lla) is amended— 
(1) by striking "FLEXIBLE AUTHORITY.—" and inserting 
"DISPOSITION 
OF HUD-OWNED 
PROPERTIES, 
(a) 
FLEXIBLE 
AUTHORITY FOR MULTIFAMILY PROJECTS.—"; and 
(2) by adding at the end the following new subsection: 
"(b) TRANSFER OF UNOCCUPIED AND SUBSTANDARD HOUSING 
TO LOCAL GOVERNMENTS AND COMMUNITY DEVELOPMENT CORPORA-
TIONS.— 
"(1) TRANSFER AUTHORITY.—Notwithstanding the authority 
under subsection (a) and the last sentence of section 204(g) 
of the National Housing Act (12 U.S.C. 1710(g)), the Secretary 
of Housing and Urban Development shall transfer ownership 
of any qualified HUD property, subject to the requirements 
of this section, to a unit of general local government having 
jurisdiction for the area in which the property is located or 
to a community development corporation which operates within 
such a unit of general local government in accordance with 
this subsection, but only to the extent that units of general 
local government and community development corporations con-
sent to transfer and the Secretary determines that such transfer 
is practicable. 
"(2) QUALIFIED HUD PROPERTIES.—For purposes of this sub-
section, the term 'qualified HUD property' means any property 
for which, as of the date that notification of the property is 
first made under paragraph (3)(B), not less than 6 months 
have elapsed since the later of the date that the property 
was acquired by the Secretary or the date that the property 
was determined to be unoccupied or substandard, that is owned 
by the Secretary and is— 
"(A) an unoccupied multifamily housing project; 
"(B) a substandard multifamily housing project; or 
"(C) an unoccupied single family property that— 
"(i) has been determined by the Secretary not to 
be an eligible asset under section 204(h) of the National 
Housing Act (12 U.S.C. 1710(h)); or 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-615 
"(ii) is an eligible asset under such section 204(h), 
but— 
"(I) is not subject to a specific sale agreement 
under such section; and 
"(II) has been determined by the Secretary 
to be inappropriate for continued inclusion in the 
program under such section 204(h) pursuant to 
paragraph (10) of such section. 
"(3) TIMING.—The Secretary shall establish procedures that 
provide for— 
"(A) time deadlines for transfers under this subsection; 
"(B) notification to units of general local government 
and community development corporations of qualified HUD 
properties in their jurisdictions; 
"(C) such units and corporations to express interest 
in the transfer under this subsection of such properties; 
"(D) a right of first refusal for transfer of qualified 
HUD properties to units of general local government and 
community development corporations, under which— 
"(i) the Secretary shall establish a period during 
which the Secretary may not transfer such properties 
except to such units and corporations; 
"(ii) the Secretary shall offer qualified HUD prop-
erties that are single family properties for purchase 
by units of general local government at a cost of $1 
for each property, but only to the extent that the 
costs to the Federal Government of disposal at such 
price do not exceed the costs to the Federal Govern-
ment of disposing of property subject to the procedures 
for single family property established by the Secretary 
pursuant to the authority under the last sentence of 
section 204(g) of the National Housing Act (12 U.S.C. 
1710(g)); 
"(iii) the Secretary may accept an offer to purchase 
a property made by a community development corpora-
tion only if the offer provides for purchase on a cost 
recovery basis; and 
"(iv) the Secretary shall accept an offer to purchase 
such a property that is made during such period by 
such a unit or corporation and that complies with 
the requirements of this paragraph; and 
"(E) a written explanation, to any unit of general local 
government or community development corporation making 
an offer to purchase a qualified HUD property under this 
subsection that is not accepted, of the reason that such 
offer was not acceptable. 
"(4) OTHER DISPOSITION.—^With respect to any qualified 
HUD property, if the Secretary does not receive an acceptable 
offer to purchase the property pursuant to the procedure estab-
lished under paragraph (3), the Secretary shall dispose of the 
property to the unit of general local government in which 
property is located or to community development corporations 
located in such unit of general local government on a negotiated, 
competitive bid, or other basis, on such terms as the Secretary 
deems appropriate. 
"(5) SATISFACTION OF INDEBTEDNESS.—Before transferring 
ownership of any qualified HUD property pursuant to this 
114 STAT. 2763A-616 
PUBLIC LAW 106-554—APPENDIX G 
subsection, the Secretary shall satisfy any indebtedness 
incurred in connection with the property to be transferred, 
by canceling the indebtedness. 
"(6) DETERMINATION OF STATUS OF PROPERTIES.—^To ensure 
compliance with the requirements of this subsection, the Sec-
retary shall take the following actions: 
"(A) UPON ENACTMENT.—Upon the enactment of this 
subsection, the Secretary shall promptly assess each resi-
dential property owned by the Secretary to determine 
whether such property is a qualified HUD property. 
"(B) UPON ACQUISITION.—Upon acquiring any residen-
tial property, the Secretary shall promptly determine 
whether the property is a qualified HUD property. 
"(C) 
UPDATES.—The 
Secretary 
shall 
periodically 
reassess the residential properties owned by the Secretary 
to determine whether any such properties have become 
qualified HUD properties. 
"(7) TENANT LEASES.—This subsection shall not affect the 
terms or the enforceability of any contract or lease entered 
into with respect to any residential property before the date 
that such property becomes a qualified HUD property. 
"(8) USE OF PROPERTY.—Property transferred under this 
subsection shall be used only for appropriate neighborhood 
revitalization efforts, including homeownership, rental units, 
commercial space, and parks, consistent with local zoning regu-
lations, local building codes, and subdivision regulations and 
restrictions of record. 
"(9) INAPPLICABILITY TO PROPERTIES MADE AVAILABLE FOR 
HOMELESS.—Notwithstanding any other provision of this sub-
section, this subsection shall not apply to any properties that 
the Secretary determines are to be made available for use 
by the homeless pursuant to subpart E of part 291 of title 
24, Code of Federal Regulations, during the period that the 
properties are so available. 
"(10) PROTECTION OF EXISTING CONTRACTS.—This sub-
section may not be construed to alter, affect, or annul any 
legally binding obligations entered into with respect to a quali-
fied HUD property before the property becomes a qualified 
HUD property. 
"(11) DEFINITIONS.—For purposes of this subsection, the 
following definitions shall apply: 
"(A) COMMUNITY DEVELOPMENT CORPORATION.—The 
term 'community development corporation' means a non-
profit organization whose primary purpose is to promote 
community development by providing housing opportunities 
for low-income families. 
"(B) COST RECOVERY BASIS.—The term 'cost recovery 
basis' means, with respect to any sale of a residential 
property by the Secretary, that the purchase price paid 
by the purchaser is equal to or greater than the sum 
of: (i) the appraised value of the property, as determined 
in accordance with such requirements as the Secretary 
shall establish; and (ii) the costs incurred by the Secretary 
in connection with such property during the period begin-
ning on the date on which the Secretary acquires title 
to the property and ending on the date on which the 
sale is consummated. 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-617 
"(C) MULTIFAMILY HOUSING PROJECT.—^The term 'multi-
family housing project' has the meaning given the term 
in section 203 of the Housing and Community Development 
Amendments of 1978. 
"(D) RESIDENTIAL PROPERTY.—The term 'residential 
property' means a property that is a multifamily housing 
project or a single family property. 
"(E) SECRETARY.—The term 'Secretary' means the Sec-
retary of Housing and Urban Development. 
"(F) SEVERE PHYSICAL PROBLEMS.—^The term 'severe 
physical problems' means, with respect to a dwelling unit, 
that the unit— 
"(i) lacks hot or cold piped water, a flush toilet, 
or both a bathtub and a shower in the unit, for the 
exclusive use of that unit; 
"(ii) on not less than three separate occasions dur-
ing the preceding winter months, was uncomfortably 
cold for a period of more than 6 consecutive hours 
due to a malfunction of the heating system for the 
unit; 
"(iii) has no functioning electrical service, exposed 
wiring, any room in which there is not a functioning 
electrical outlet, or has experienced three or more 
blown fuses or tripped circuit breakers during the 
preceding 90-day period; 
"(iv) is accessible through a public hallway in 
which there are no working light fixtures, loose or 
missing steps or railings, and no elevator; or 
"(v) has severe maintenance problems, including 
water leaks involving the roof, windows, doors, base-
ment, or pipes or plumbing fixtures, holes or open 
cracks in walls or ceilings, severe paint peeling or 
broken plaster, and signs of rodent infestation. 
"(G) SINGLE FAMILY PROPERTY.—^The term 'single fam-
ily property' means a 1- to 4-family residence. 
"(H) SUBSTANDARD.—^The term 'substandard' means, 
with respect to a multifamily housing project, that 25 per-
cent or more of the dwelling units in the project have 
severe physical problems. 
"(I) UNIT OF GENERAL LOCAL GOVERNMENT.—The term 
'unit of general local government' has the meaning given 
such term in section 102(a) of the Housing and Community 
Development Act of 1974. 
"(J) UNOCCUPIED.—The term 'unoccupied' means, with 
respect to a residential property, that the unit of general 
local government having jurisdiction over the area in which 
the project is located has certified in writing that the 
property is not inhabited. 
"(12) REGULATIONS.— 
"(A) INTERIM.—Not later than 30 days after the date 
of the enactment of this subsection, the Secretary shall 
issue such interim regulations as are necessary to carry 
out this subsection. 
"(B) FINAL.—Not later than 60 days after the date 
of the enactment of this subsection, the Secretary shall 
issue such final regulations as are necessary to carry out 
this subsection.". 
114 STAT. 2763A-618 
PUBLIC LAW 106-554—APPENDIX G 
SEC. 142. TRANSFER OF HUD ASSETS IN REVITALIZATION AREAS. 
In carrying out the program under section 204(h) of the 
National Housing Act (12 U.S.C. 1710(h)), upon the request of 
the chief executive officer of a county or the government of appro-
priate jurisdiction and not later than 60 days after such request 
is made, the Secretary of Housing and Urban Development shall 
designate as a revitalization area all portions of such county that 
meet the criteria for such designation under paragraph (3) of such 
section. 
SEC. 143. RISK-SHARING DEMONSTRATION. 
Section 249 of the National Housing Act (12 U.S.C. 1715z-
14) is amended— 
(1) by striking the section heading and inserting the follow-
ing: 
"RISK-SHARING DEMONSTRATION"; 
(2) by striking "reinsurance" each place such term appears 
and insert "risk-sharing"; 
(3) in subsection (a)— 
(A) in the first sentence, by inserting "and with insured 
community development financial institutions" after "pri-
vate mortgage insurers"; 
(B) in the second sentence— 
(i) by striking "two" and inserting "four"; and 
(ii) by striking "March 15, 1988" and inserting 
"the expiration of the 5-year period beginning on the 
date of the enactment of the Community Renewal Tax 
Relief Act of 2000"; and 
(C) in the third sentence— 
(i) by striking "insured" and inserting "for which 
risk of nonpayment is shared"; and 
(ii) by striking "10 percent" and inserting "20 per-
cent"; 
(4) in subsection (b)— 
(A) in the first sentence— 
(i) by striking "to provide" and inserting ", in 
providing"; 
(ii) by striking "through" and inserting ", to enter 
into"; and 
(iii) by inserting "and with insured community 
development financial institutions" before the period 
at the end; 
(B) in the second sentence, by inserting "and insured 
community development financial institutions" after "pri-
vate mortgage insurance companies"; 
(C) by striking paragraph (1) and inserting the follow-
ing new paragraph: 
"(1) assume a secondary percentage of loss on any mortgage 
insured pursuant to section 203(b), 234, or 245 covering a 
one- to four-family dwelling, which percentage of loss shall 
be set forth in the risk-sharing contract, with the first percent-
age of loss to be borne by the Secretary;"; and 
(D) in paragraph (2)— 
(i) by striking "carry out (under appropriate dele-
gation) such" and inserting "perform or delegate under-
writing,"; 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-619 
(ii) by striking "function as the Secretary pursuant 
to regulations," and inserting "functions as the Sec-
retary"; and 
(iii) by inserting before the period at the end the 
following: "and shall set forth in the risk-sharing con-
tract"; 
(5) in subsection (c)— 
(A) in the first sentence— 
(i) by striking "of the first place it appears and 
inserting "for"; 
(ii) by inserting "received by the Secretary with 
a private mortgage insurer or insured community 
development financial institution" after "sharing of pre-
miums"; 
(iii) by striking "insurance reserves" and inserting 
"loss reserves"; 
(iv) by striking "such insurance" and inserting 
"such risk-sharing contract"; and 
(v) by striking "right" and inserting "rights"; and 
(B) in the second sentence— 
(i) by inserting "or insured community develop-
ment financial institution" after "private mortgage 
insurance company"; and 
(ii) by striking "for insurance" and inserting "for 
risk-sharing"; 
(6) in subsection (d), by inserting "or insured community 
development financial institution" after "private mortgage 
insurance company"; and 
(7) by adding at the end the following new subsection: 
"(e) 
INSURED COMMUNITY DEVELOPMENT FINANCIAL INSTITU-
TION.—^For purposes of this section, the term 'insured community 
development financial institution' means a community development 
financial institution, as such term is defined in section 103 of 
Reigle Community Development and Regulatory Improvement Act 
of 1994 (12 U.S.C. 4702) that is an insured depository institution 
(as such term is defined in section 3 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813)) or an insured credit union (as such 
term is defined in section 101 of the Federal Credit Union Act 
(12 U.S.C. 1752)).". 
SEC. 144. PREVENTION AND TREATMENT OF SUBSTANCE ABUSE; SERV-
ICES PROVIDED THROUGH RELIGIOUS ORGANIZATIONS. 
Title V of the Public Health Service Act (42 U.S.C. 290aa 
et seq.) is amended by adding at the end the following part: 
"PART G—SERVICES PROVIDED THROUGH RELIGIOUS ORGANIZATIONS 
"SEC. 581. APPLICABILITY TO DESIGNATED PROGRAMS. 
"(a) DESIGNATED PROGRAMS.—Subject to subsection (b), this 
part applies to discretionary and formula grant programs adminis-
tered by the Substance Abuse and Mental Health Services Adminis-
tration that make awards of financial assistance to public or private 
entities for the purpose of carrying out activities to prevent or 
treat substance abuse (in this part referred to as a 'designated 
program'). Designated programs include the program under subpart 
II of part B of title XIX (relating to formula grants to the States). 
114 STAT. 2763A-620 
PUBLIC LAW 106-554—APPENDIX G 
"(b) LIMITATION.—This part does not apply to any award of 
financial assistance under a designated program for a purpose 
other than the purpose specified in subsection (a). 
"(c) DEFINITIONS.—For purposes of this part (and subject to 
subsection (b)): 
"(1) The term 'designated program' has the meaning given 
such term in subsection (a). 
"(2) The term 'financial assistance' means a grant, coopera-
tive agreement, or contract. 
"(3) The term 'program beneficiary' means an individual 
who receives program services. 
"(4) The term 'program participant' means a public or pri-
vate entity that has received financial assistance under a des-
ignated program. 
"(5) The term 'program services' means treatment for sub-
stance abuse, or preventive services regarding such abuse, pro-
vided pursuant to an award of financial assistance under a 
designated program. 
"(6) The term 'religious organization' means a nonprofit 
religious organization. 
-SEC. 582. RELIGIOUS ORGANIZATIONS AS PROGRAM PARTICIPANTS. 
"(a) IN GENERAL.—Notwithstanding any other provision of law, 
a religious organization, on the same basis as any other nonprofit 
private provider— 
"(1) may receive financial assistance under a designated 
program; and 
"(2) may be a provider of services under a designated 
program. 
"(b) RELIGIOUS ORGANIZATIONS.—The purpose of this section 
is to allow religious organizations to be program participants on 
the same basis as any other nonprofit private provider without 
impairing the religious character of such organizations, and without 
diminishing the religious freedom of program beneficiaries. 
"(c) NONDISCRIMINATION AGAINST RELIGIOUS ORGANIZATIONS.— 
"(1) 
ELIGIBILITY AS PROGRAM 
PARTICIPANTS.—Religious 
orgEinizations are eligible to be program participants on the 
same basis as any other nonprofit private organization as long 
as the programs are implemented consistent with the Establish-
ment Clause and Free Exercise Clause of the First Amendment 
to the United States Constitution. Nothing in this Act shall 
be construed to restrict the ability of the Federal Government, 
or a State or local government receiving funds under such 
programs, to apply to religious organizations the same eligi-
bility conditions in designated programs as are applied to any 
other nonprofit private organization. 
"(2) NONDISCRIMINATION.—Neither the Federal Govern-
ment nor a State or local government receiving funds under 
designated programs shall discriminate against an organization 
that is or applies to be a program participant on the basis 
that the organization has a religious character. 
"(d) RELIGIOUS CHARACTER AND FREEDOM.— 
"(1) RELIGIOUS ORGANIZATIONS.—Except as provided in this 
section, any religious organization that is a program participant 
shall retain its independence from Federal, State, and local 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-621 
government, including such organization's control over the defi-
nition, development, practice, and expression of its religious 
beliefs. 
"(2) 
ADDITIONAL 
SAFEGUARDS.—^Neither 
the 
Federal 
Grovemment nor a State shall require a religious organization 
to— 
"(A) alter its form of internal governance; or 
"(B) remove religious art, icons, scripture, or other 
symbols, 
in order to be a program participant. 
"(e) EMPLOYMENT PRACTICES.—Nothing in this section shall 
be construed to modify or affect the provisions of any other Federal 
or State law or regulation that relates to discrimination in employ-
ment. A religious organization's exemption provided under section 
702 of the Civil Rights Act of 1964 regarding employment practices 
shall not be affected by its participation in, or receipt of funds 
from, a designated program. 
"(f) RIGHTS OF PROGRAM BENEFICIARIES.— 
"(1) IN GENERAL.—If an individual who is a program bene-
ficiary or a prospective program beneficiary objects to the reli-
gious character of a program participgmt, within a reasonable 
period of time after the date of such objection such program 
participant shall refer such individual to, and the appropriate 
Federal, State, or local government that administers a des-
ignated program or is a program participant shall provide to 
such individual (if otherwise eligible for such services), program 
services that— 
"(A) are from an alternative provider that is accessible 
to, and has the capacity to provide such services to, such 
individual; and 
"(B) have a value that is not less than the value 
of the services that the individual would have received 
from the program participant to which the individual had 
such objection. 
Upon referring a program beneficiary to an alternative provider, 
the program participant shall notify the appropriate Federal, 
State, or local government agency that administers the program 
of such referral. 
"(2) NOTICES.—Program participants, public agencies that 
refer individuals to designated programs, and the appropriate 
Federal, State, or local governments that administer designated 
programs or are program participants shall ensure that notice 
is provided to program beneficiaries or prospective program 
beneficiaries of their rights under this section. 
"(3) ADDITIONAL REQUIREMENTS.—^A program participant 
making a referral pursuant to paragraph (1) shall— 
"(A) prior to making such referral, consider any list 
that the State or local government makes available of 
entities in the geographic area that provide program serv-
ices; and 
"(B) ensure that the individual makes contact with 
the alternative provider to which the individual is referred. 
"(4) NONDISCRIMINATION.—^A religious organization that is 
a program participant shall not in providing program services 
or engaging in outreach activities under designated programs 
discriminate against a program beneficiary or prospective pro-
gram beneficiary on the basis of religion or religious belief. 
114 STAT. 2763A-622 
PUBLIC LAW 106-554—APPENDIX G 
"(g) FISCAL ACCOUNTABILITY.— 
"(1) IN GENERAL.—Except as provided in paragraph (2), 
any religious organization that is a program participant shall 
be subject to the same regulations as other recipients of awards 
of Federal financial assistance to account, in accordance with 
generally accepted auditing principles, for the use of the funds 
provided under such awards. 
"(2) LIMITED AUDIT.—^With respect to the award involved, 
a religious organization that is a program participant shall 
segregate Federal amounts provided under award into a sepa-
rate account from non-Federal funds. Only the award funds 
shall be subject to audit by the government. 
"(h) COMPLIANCE.—^With respect to compliance with this section 
by an agency, a religious organization may obtain judicial review 
of agency action in accordance with chapter 7 of title 5, United 
States Code. 
"SEC. 583. LIMITATIONS ON USE OF FUNDS FOR CERTAIN PURPOSES. 
"No funds provided under a designated program shall be 
expended for sectarian worship, instruction, or prosel5^ization. 
"SEC. 584. EDUCATIONAL REQUIREMENTS FOR PERSONNEL IN DRUG 
TREATMENT PROGRAMS. 
"(a) FINDINGS.—The Congress finds that— 
"(1) establishing unduly rigid or uniform educational quali-
fication for counselors and other personnel in drug treatment 
programs may undermine the effectiveness of such programs; 
and 
"(2) such educational requirements for counselors and other 
personnel may hinder or prevent the provision of needed drug 
treatment services. 
"(b) NONDISCRIMINATION.—In determining whether personnel 
of a program participant that has a record of successful drug treat-
ment for the preceding three years have satisfied State or local 
requirements for education and training, a State or local govern-
ment shall not discriminate against education and training provided 
to such personnel by a religious organization, so long as such 
education and training includes basic content substantially equiva-
lent to the content provided by nonreligious organizations that 
the State or local government would credit for purposes of determin-
ing whether the relevant requirements have been satisfied.". 
PART II—ADVISORY COUNCIL ON COMMUNITY 
RENEWAL 
SEC. 151. SHORT TITLE. 
This part may be cited as the "Advisory Council on Community 
Renewal Act". 
SEC. 152. ESTABLISHMENT. 
There is established an advisory council to be known as the 
"Advisory Council on Community Renewal" (in this part referred 
to as the "Advisory Council"). 
SEC. 153. DUTIES OF ADVISORY COUNCIL. 
The Advisory Council shall advise the Secretary of Housing 
and Urban Development (in this part referred to as the "Secretary") 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-623 
on the designation of renewal communities pursuant to the amend-
ment made by section 101 and on the exercise of any other authority 
granted to the Secretary pursuant to the amendments made by 
this title. 
SEC. 154. MEMBERSHIP. 
(a) NUMBER AND APPOINTMENT.—The Advisory Council shall 
be composed of 7 members appointed by the Secretary. 
(b) CHAIRPERSON.—The Chairperson of the Advisory Council 
(in this part referred to as the "Chairperson") shall be designated 
by the Secretary at the time of the appointment. 
(c) TERMS.—Each member shall be appointed for the life of 
the Advisory Council. 
(d) BASIC PAY.— 
(1) CHAIRPERSON.—The Chairperson shall be paid at a 
rate equal to the daily rate of basic pay for level III of the 
Executive Schedule for each day (including travel time) during 
which the Chairperson is engaged in the actual performance 
of duties vested in the Advisory Council. 
(2) OTHER MEMBERS.—Members other than the Chairperson 
shall each be paid at a rate equal to the daily rate of basic 
pay for level IV of the Executive Schedule for each day (includ-
ing travel time) during which they are engaged in the actual 
performance of duties vested in the Advisory Council. 
(e) TRAVEL EXPENSES.—Each member shall receive travel 
expenses, including per diem in lieu of subsistence, in accordance 
with applicable provisions under subchapter I of chapter 57 of 
title 5, United States Code. 
(f) QUORUM.—Four members of the Advisory Council shall con-
stitute a quorum but a lesser number may hold hearings. 
(g) MEETINGS.—The Advisory Council shall meet at the call 
of the Secretary or the Chairperson. 
SEC. 155. POWERS OF ADVISORY COUNCIL. 
(a) HEARINGS AND SESSIONS.—^The Advisory Council may, for 
the purpose of carrying out this part, hold hearings, sit and act 
at times and places, take testimony, and receive evidence as the 
Advisory Council considers appropriate. The Advisory Council may 
administer oaths or affirmations to witnesses appearing before it. 
(b) POWERS OF MEMBERS AND AGENTS.—^Any member or agent 
of the Advisory Council may, if authorized by the Advisory Council, 
take any action which the Advisory Council is authorized to take 
by this section. 
(c) OBTAINING OFFICIAL DATA.—^The Advisory Council may 
secure directly from any department or agency of the United States 
information necessary to enable it to carry out this part. Upon 
request of the Chairperson of the Advisory Council, the head of 
that department or agency shall furnish that information to the 
Advisory Council. 
SEC. 156. REPORTS. 
(a) ANNUAL REPORTS.—^The Advisory Council shall submit to 
the Secretary an annual report for each fiscal year. 
(b) INTERIM REPORTS.—The Advisory Council may submit to 
the Secretary such interim reports as the Advisory Council considers 
appropriate. 
(c) FINAL REPORT.—The Advisory Council shall transmit a final 
report to the Secretary not later September 30, 2003. The final 
114 STAT. 2763A-624 
PUBLIC LAW 106-554—APPENDIX G 
report shall contain a detailed statement of the findings and conclu-
sions of the Advisory Council, together with any recommendations 
for legislative or administrative action that the Advisory Council 
considers appropriate. 
SEC. 157. TERMINATION. 
(a) IN GENERAL.—The Advisory Council shall terminate 30 
days after submitting its final report under section 156(c). 
(b) EXTENSION.—Notwithstanding subsection (a), the Secretary 
may postpone the termination of the Advisory Council for a period 
not to exceed 3 years after the Advisory Council submits its final 
report under section 156(c). 
SEC. 158. APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT. 
The Federal Advisory Committee Act (5 U.S.C. App.) shall 
not apply to the Advisory Council. 
SEC. 159. RESOURCES. 
The Secretary shall provide to the Advisory Council appropriate 
resources so that the Advisory Council may carry out its duties 
and factions under this part. 
SEC. 160. EFFECTIVE DATE. 
This part shall be effective 30 days after the date of its enact-
ment. 
Subtitle F—Other Provisions 
SEC. 161. ACCELERATION OF PHASE-IN OF INCREASE IN VOLUME CAP 
ON PRIVATE ACTIVITY BONDS. 
(a) IN GENERAL.—Paragraphs (1) and (2) of section 146(d) (relat-
ing to State ceiling) are amended to read as follows: 
"(1) IN GENERAL.—The State ceiling applicable to any State 
for any calendar year shall be the greater of— 
"(A) an amount equal to $75 ($62.50 in the case of 
calendar year 2001) multiplied by the State population, 
or 
"(B) $225,000,000 ($187,500,000 in the case of calendar 
year 2001). 
"(2) COST-OF-LIVING ADJUSTMENT.—In the case of a calendar 
year after 2002, each of the dollar amounts contained in para-
graph (1) shall be increased by an amount equal to— 
"(A) such dollar amount, multiplied by 
"(B) the cost-of-living adjustment determined under 
section 1(f)(3) for such calendar year by substituting 'cal-
endar year 2001' for 'calendar year 1992' in subparagraph 
(B) thereof. 
If any increase determined under the preceding sentence is 
not a multiple of $5 ($5,000 in the case of the dollar amount 
in paragraph (1)(B)), such increase shall be rounded to the 
nearest multiple thereof.". 
(b) EFFECTIVE DATE.—^The amendment made by this section 
shall apply to calendar years after 2000. 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-625 
SEC. 
162. MODIFICATIONS TO EXPENSING OF ENVIRONMENTAL 
REMEDIATION COSTS. 
(a) EXPENSING NOT LIMITED TO SITES IN TARGETED AREAS.— 
Subsection (c) of section 198 is amended to read as follows: 
"(c) QUALIFIED CONTAMINATED SITE.—For purposes of this 
section— 
"(1) IN GENERAL.—The term 'qualified contaminated site' 
means any area— 
"(A) which is held by the taxpayer for use in a trade 
or business or for the production of income, or which is 
property described in section 1221(a)(1) in the hands of 
the taxpayer, and 
"(B) at or on which there has been a release (or threat 
of release) or disposal of any hazardous substance. 
"(2) NATIONAL PRIORITIES LISTED SITES NOT INCLUDED.— 
Such term shall not include any site which is on, or proposed 
for, the national priorities list under section 105(a)(8)(B) of 
the Comprehensive Environmental Response, Compensation, 
and Liability Act of 1980 (as in effect on the date of the 
enactment of this section). 
"(3) 
TAXPAYER MUST RECEIVE STATEMENT FROM STATE 
ENVIRONMENTAL AGENCY.—^An area shall be treated as a quali-
fied contaminated site with respect to expenditures paid or 
incurred during any taxable year only if the taxpayer receives 
a statement from the appropriate agency of the State in which 
such area is located that such area meets the requirement 
of paragraph (1)(B). 
"(4) APPROPRIATE STATE AGENCY.—For purposes of para-
graph (3), the chief executive officer of each State may, in 
consultation with the Administrator of the Environmental 
Protection Agency, designate the appropriate State environ-
mental agency within 60 days of the date of the enactment 
of this section. If the chief executive officer of a State has 
not designated an appropriate environmental agency within 
such 60-day period, the appropriate environmental agency for 
such State shall be designated by the Administrator of the 
Environmental Protection Agency.". 
(b) EXTENSION OF TERMINATION DATE.—Subsection (h) of sec-
tion 198 is amended by striking "2001" and inserting "2003". 
(c) EFFECTIVE DATE.—^The amendments made by this section 
shall apply to expenditures paid or incurred after the date of the 
enactment of this Act. 
SEC. 163. EXTENSION OF DC HOMEBUYER TAX CREDIT. 
Section 1400C(i) (relating to application of section) is amended 
by striking "2002" and inserting "2004". 
SEC. 164. EXTENSION OF DC ZONE THROUGH 2003. 
(a) IN GENERAL.—The following provisions are amended by 
striking "2002" each place it appears and inserting "2003": 
(1) Section 1400(f). 
(2) Section 1400A(b). 
(b) ZERO CAPITAL GAINS RATE.—Section 1400B (relating to zero 
percent capital gains rate) is amended— 
(1) by striking "2003" each place it appears and inserting 
"2004", and 
114 STAT. 2763A-626 
PUBLIC LAW 106-554—APPENDIX G 
(2) by striking "2007" each place it appears and inserting 
"2008". 
SEC. 1
6
5
. 
EXTENSION OF ENHANCED DEDUCTION FOR CORPORATE 
DONATIONS 
OF 
COMPUTER 
TECHNOLOGY. 
(a) EXPANSION OF COMPUTER TECHNOLOGY DONATIONS TO PUB-
LIC LIBRARIES.— 
(1) IN GENERAL.—Paragraph (6) of section 170(e) (relating 
to special rule for contributions of computer technology and 
equipment for elementary or secondary school purposes) is 
amended by striking "qualified elementary or secondary edu-
cational contribution" each place it occurs in the headings and 
text and inserting "qualified computer contribution". 
(2) EXPANSION OF ELIGIBLE DONEES.—Clause (i) of section 
170(e)(6)(B) (relating to qualified elementary or secondary edu-
cational contribution) is amended by striking "or" at the end 
of subclause (I), by adding "or" at the end of subclause (II), 
and by inserting after subclause (II) the following new sub-
clause: 
"(III) a public library (within the meaning of 
section 213(2)(A) of the Library Services and Tech-
nology Act (20 U.S.C. 9122(2)(A)), as in effect on 
the date of the enactment of the Community 
Renewal Tax Relief Act of 2000, established and 
maintained by an entity described in subsection 
(0(1),". 
(3) EXTENSION OF DONATION PERIOD.—Clause (ii) of section 
170(e)(6)(B) is amended by striking "2 years" and inserting 
"3 years". 
(b) CONFORMING AMENDMENTS.— 
(1) Section 170(e)(6)(B)(iv) is amended by striking "in any 
grades of the K-12". 
(2) The heading of paragraph (6) of section 170(e) is amend-
ed by striking "ELEMENTARY O
R SECONDARY SCHOOL PURPOSES" 
and inserting "EDUCATIONAL PURPOSES". 
(c) EXTENSION OF DEDUCTION.—Section 170(e)(6)(F) (relating 
to termination) is amended by striking "December 31, 2000" and 
inserting "December 31, 2003". 
(d) 
STANDARDS AS TO FUNCTIONALITY AND SUITABILITY.— 
Subparagraph (B) of section 170(e)(6) is amended by striking "and" 
at the end of clause (vi), by striking the period at the end of 
clause (vii) and inserting ", and", and by adding at the end the 
following new clause: 
"(viii) the property meets such standards, if any, 
as the Secretary may prescribe by regulation to assure 
that the property meets minimum functionality and 
suitability standards for educational purposes.". 
(e) 
DONATIONS OF COMPUTERS REACQUIRED BY MANUFAC-
TURER.—Paragraph (6) of section 170(e) is further amended by 
redesignating subparagraphs (D), (E), and (F) as subparagraphs 
(E), (F), and (G), respectively, and by inserting after subparagraph 
(C) the following new subparagraph: 
"(D) DONATIONS OF PROPERTY REACQUIRED BY MANU-
FACTURER.—In the case of property which is reacquired 
by the person who constructed the property— 
"(i) subparagraph (B)(ii) shall be applied to a con-
tribution of such property by such person by taking 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-627 
into account the date that the original construction 
of the property was substantially completed, and 
"(ii) subparagraph (B)(iii) shall not apply to such 
contribution.", 
(f) EFFECTIVE DATE.—The amendments made by this section 
shall apply to contributions made after December 31, 2000. 
SEC. 166. TREATMENT OF INDIAN TRIBAL GOVERNMENTS UNDER FED-
ERALUNEMPLOYMENT TAX ACT. 
(a) IN GENERAL.—Section 3306(c)(7) (defining employment) is 
amended— 
(1) by inserting "or in the employ of an Indian tribe," 
after "service performed in the employ of a State, or any politi-
cal subdivision thereof,"; and 
(2) by inserting "or Indian tribes" after "wholly owned 
by one or more States or political subdivisions". 
(b) PAYMENTS IN LIEU OF CONTRIBUTIONS.—Section 3309 (relat-
ing to State law coverage of services performed for nonprofit 
organizations or governmental entities) is amended— 
(1) in subsection (a)(2) by inserting ", including an Indian 
tribe," after "the State law shall provide that a governmental 
entity"; 
(2) in subsection (b)(3)(B) by inserting ", or of an Indian 
tribe" after "of a State or political subdivision thereof; 
(3) in subsection (b)(3)(E) by inserting "or tribal" after 
"the State"; and 
(4) in subsection (b)(5) by inserting "or of an Indian tribe" 
after "an agency of a State or political subdivision thereof. 
(c) STATE LAW COVERAGE.—Section 3309 (relating to State law 
coverage of services performed for nonprofit organizations or govern-
mental entities) is amended by adding at the end the following 
new subsection: 
"(d) ELECTION BY INDIAN TRIBE.—^The State law shall provide 
that an Indian tribe may make contributions for employment as 
if the employment is within the meaning of section 3306 or make 
payments in lieu of contributions under this section, and shall 
provide that an Indian tribe may make separate elections for itself 
and each subdivision, subsidiary, or business enterprise wholly 
owned by such Indian tribe. State law may require a tribe to 
post a payment bond or take other reasonable measures to assure 
the making of pa3anents in lieu of contributions under this section. 
Notwithstanding the requirements of section 3306(a)(6), if, within 
90 days of having received a notice of delinquency, a tribe fails 
to make contributions, payments in lieu of contributions, or pa5mfient 
of penalties or interest (at amounts or rates comparable to those 
applied to all other employers covered under the State law) assessed 
with respect to such failure, or if the tribe fails to post a required 
payment bond, then service for the tribe shall not be excepted 
from employment under section 3306(c)(7) until any such failure 
is corrected. This subsection shall apply to an Indian tribe within 
the meaning of section 4(e) of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450b(e)).". 
(d) DEFINITIONS.—Section 3306 (relating to definitions) is 
amended by adding at the end the following new subsection: 
"(u) INDIAN 'ftiiBE.—For purposes of this chapter, the term 
'Indian tribe' has the meaning given to such term by section 4(e) 
of the Indian Self-Determination and Education Assistance Act 
114 STAT. 2763A-628 
PUBLIC LAW 106-554—APPENDIX G 
(25 U.S.C. 450b(e)), and includes any subdivision, subsidiary, or 
business enterprise wholly owned by such an Indian tribe.". 
(e) EFFECTIVE DATE; TRANSITION RULE.— 
(1) EFFECTIVE DATE.—The amendments made by this sec-
tion shall apply to service performed on or after the date 
of the enactment of this Act. 
(2) 
TRANSITION 
RULE.—For purposes 
of the 
Federal 
Unemployment Tax Act, service performed in the employ of 
£in Indian tribe (as defined in section 3306(u) of the Internal 
Revenue Code of 1986 (as added by this section)) shall not 
be treated as employment (within the meaning of section 3306 
of such Code) if— 
(A) it is service which is performed before the date 
of the enactment of this Act and with respect to which 
the tax imposed under the Federal Unemployment Tax 
Act has not been paid, and 
(B) such Indian tribe reimburses a State unemploy-
ment fund for unemployment benefits paid for service 
attributable to such tribe for such period. 
TITLE II—TWO-YEAR EXTENSION OF 
AVAILABILITY OF MEDICAL SAVINGS 
ACCOUNTS 
SEC. 201. TWO-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAV-
INGS ACCOUNTS. 
(a) IN GENERAL.—Paragraphs (2) and (3)(B) of section 220(i) 
(defining cut-off year) are each amended by striking "2000" each 
place it appears and inserting "2002". 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (2) of section 220(j) is amended— 
(A) by striking "1998 or 1999" each place it appears 
and inserting "1998, 1999, or 2001", 
(B) by striking "600,000 (750,000 in the case of 1999)" 
and inserting "750,000 (600,000 in the case of 1998)", and 
(C) by inserting after subparagraph (B) the following 
new subparagraph: 
"(C) No LIMITATION FOR 2000.—The numerical limita-
tion shall not apply for 2000.". 
(2) Subparagraph (A) of section 220(j)(4) is amended by 
striking "and 1999" and inserting "1999, and 2001". 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act. 
SEC. 202. MEDICAL SAVINGS ACCOUNTS RENAMED AS ARCHER MSAS. 
(a) IN GENERAL.—The following provisions are amended by 
striking "medical savings account" each place it appears in the 
text and inserting "Archer MSA": 
(1) Section 26(b)(2)(Q). 
(2) Section 106(b). 
(3) Section 138(b). 
(4) Section 220. 
(5) Section 848(e)(l)(B)(iv). 
(6) Subsections (a)(2) and (d) of section 4973. 
(7) Subsections (c)(4) and (e)(1)(D) of section 4975. 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-629 
(8) Subsections (a) and (d)(2)(B) of section 4980E. 
(9) Section 605l(a)( 11). 
(b) OTHER AMENDMENTS.— 
(1) Paragraph (16) of section 62(a) is amended to read 
as follows: 
"(16) ARCHER MSAS.—^The deduction allowed by section 
220.". 
(2) The following provisions are each amended by striking 
"medical savings accounts" each place it appears in the text 
and inserting "Archer MSAs": 
(A) Paragraphs (4) and (7) of section 106(b). 
(B) Subsections (c)(1)(D), (e)(2), (f)(3)(A), (i)(4)(B), and 
(j) of section 220. 
(C) Section 4973(d). 
(D) Subsections (b) and (d)(1) of section 4980E. 
(E) Section 6693(a)(2)(B). 
(3) Paragraph (1) of section 220(d) is amended by inserting 
"as a medical savings account" after "United States". 
(4) The heading for section 220(d) is amended by striking 
"MEDICAL SAVINGS ACCOUNT" and inserting "ARCHER MSA". 
(5) The headings for sections 220(d)(1) and 3231(e)(10) are 
each amended by striking "MEDICAL SAVINGS ACCOUNT" and 
inserting "ARCHER MSA". 
(6) The headings for sections 106(b), 138(f), 220(i), and 
4973(d) are each amended by striking "MEDICAL SAVINGS 
ACCOUNTS" and inserting "ARCHER MSAS". 
(7) The headings for section 220(c)(1)(C) and 4975(c)(4) 
are each amended by striking "MEDICAL SAVINGS ACCOUNTS" 
and inserting "ARCHER MSAS". 
(8) The section heading for section 220 is amended to 
read as follows: 
"SEC. 220. ARCHER MSAS.". 
(9) The item relating to section 220 in the table of sections 
for part VII of subchapter B of chapter 1 is amended to read 
as follows: 
"Sec. 220. Archer MSAs.". 
(10) The provisions amended by the preceding provisions 
of this section are further amended by striking "a Archer" 
each place it appears and inserting "an Archer". 
(11) Section 220(e)(1) is further amended by striking "A 
Archer" and inserting "An Archer". 
TITLE III—ADMINISTRATIVE AND 
TECHNICAL PROVISIONS 
Subtitle A—^Administrative Provisions 
SEC. 301. EXEMPTION OF CERTAIN REPORTING REQUIREMENTS. 
Section 3003(a)(1) of the Federal Reports Elimination and Sun-
set Act of 1995 (31 U.S.C. 1113 note) shall not apply to any report 
required to be submitted under any of the following provisions 
of law: 
(1) Section 13031(f) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c(f)). 
114 STAT. 2763A-630 
PUBLIC LAW 106-554—APPENDIX G 
(2) Section 16(c) of the Foreign Trade Zones Act (19 U.S.C. 
81p(c)). 
(3) The following provisions of the Tariff Act of 1930: 
(A) Section 330(c)(1) (19 U.S.C. 1330(c)(1)). 
(B) Section 607(c) (19 U.S.C. 1607(c)). 
(4) Section 5 of the International Coffee Agreement Act 
of 1980 (19 U.S.C. 1356n). 
(5) Section 351(a)(2) of the Trade Expansion Act of 1962 
(19 U.S.C. 1981(a)(2)). 
(6) Section 502 of the Automotive Products Trade Act of 
1965 (19 U.S.C. 2032). 
(7) Section 3131 of the Customs Enforcement Act of 1986 
(19 U.S.C. 2081). 
(8) The following provisions of the Trade Act of 1974 (19 
U.S.C. 2101 etseq.): 
(A) 
Section 
102(b)(4)(A)(ii)(I) 
(19 
U.S.C. 
2112(b)(4)(A)(ii)(I)). 
(B) Section 102(e)(1) (19 U.S.C. 2112(e)(1)). 
(C) Section 102(e)(2) (19 U.S.C. 2112(e)(2)). 
(D) Section 104(d) (19 U.S.C. 2114(d)). 
(E) Section 125(e) (19 U.S.C. 2135(e)). 
(F) Section 135(e)(1) (19 U.S.C. 2155(e)(1)). 
(G) Section 141(c) (19 U.S.C. 2171(c)). 
(H) Section 162 (19 U.S.C. 2212). 
(I) Section 163(b) (19 U.S.C. 2213(b)). 
(J) Section 163(c) (19 U.S.C. 2213(c)). 
(K) Section 203(b) (19 U.S.C. 2253(b)). 
(L) Section 302(b)(2)(C) (19 U.S.C. 2412(b)(2)(C)). 
(M) Section 303 (19 U.S.C. 2413). 
(N) Section 309 (19 U.S.C. 2419). 
(O) Section 407(a) (19 U.S.C. 2437(a)). 
(P) Section 502(f) (19 U.S.C. 2462(f)). 
(Q) Section 504 (19 U.S.C. 2464). 
(9) The following provisions of the Trade Agreements Act 
of 1979 (19 U.S.C. 2501 et seq.): 
(A) Section 2(b) (19 U.S.C. 2503(b)). 
(B) Section 3(c) (19 U.S.C. 2504(c)). 
(C) Section 305(c) (19 U.S.C. 2515(c)). 
(10) Section 303(g)(1) of the Convention on Cultural Prop-
erty Implementation Act (19 U.S.C. 2602(g)( 1)). 
(11) The following provisions of the Caribbean Basin Eco-
nomic Recovery Act (19 U.S.C. 2701 et seq.): 
(A) Section 212(a)(1)(A) (19 U.S.C. 2702(a)(1)(A)). 
(B) Section 212(a)(2) (19 U.S.C. 2702(a)(2)). 
(12) The following provisions of the Omnibus Trade and 
Competitiveness Act of 1988 (19 U.S.C. 2901 et seq.): 
(A) Section 1102 (19 U.S.C. 2902). 
(B) Section 1103 (19 U.S.C. 2903). 
(C) Section 1206(b) (19 U.S.C. 3006(b)). 
(13) Section 123(a) of the Customs and Trade Act of 1990 
(Public Law 101-382) (19 U.S.C. 2083). 
(14) Section 243(b)(2) of the Caribbean Basin Economic 
Recovery Expansion Act of 1990 (Public Law 101-382). 
(15) The following provisions of the Internal Revenue Code 
of 1986: 
(A) Section 6103(p)(5). 
(B) Section 7608. 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-631 
(C) Section 7802(f)(3). 
(D) Section 8022(3). 
(E) Section 9602(a). 
(16) The following provisions relating to the revenue laws 
of the United States: 
(A) Section 1552(c) of the Tax Reform Act of 1986 
(100 Stat. 2753). 
(B) Section 231 of the Deficit Reduction Act of 1984 
(26U.S.C. 801note). 
(C) Section 208 of the Tax Treatment Extension Act 
of 1977 (26 U.S.C. 911 note). 
(D) Section 7105 of the Technical and Miscellaneous 
Revenue Act of 1988 (45 U.S.C. 369). 
(17) Section 4008 of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1308). 
(18) Section 426 of the Black Lung Benefits Act (30 U.S.C. 
936(b)). 
(19) Section 7502(g) of title 31, United States Code. 
(20) The following provisions of the Social Security Act: 
(A) Section 215(i)(2)(C)(i) (42 U.S.C. 415(i)(2)(C)(i)). 
(B) Section 221(i)(2) (42 U.S.C. 421(i)(2)). 
(C) Section 221(i)(3) (42 U.S.C. 421(i)(3)). 
(D) Section 233(e)(1) (42 U.S.C. 433(e)(1)). 
(E) Section 452(a)(10) (42 U.S.C. 652(a)(10)). 
(F) Section 452(g)(3)(B) (42 U.S.C. 652(g)(3)(B)). 
(G) Section 506(a)(1) (42 U.S.C. 706(a)). 
(H) Section 908 (42 U.S.C. 1108). 
(I) Section 1114(f) (42 U.S.C. 1314(f)). 
(J) Section 1120 (42 U.S.C. 1320). 
(K) Section 1161 (42 U.S.C. 1320c-10). 
(L) Section 1875(b) (42 U.S.C. 139511(b)). 
(M) Section 1881 (42 U.S.C. 1395rr). 
(N) Section 1882 (42 U.S.C. 1395ss(f )(2)). 
(21) Section 104(b) of the Social Security Independence 
and Program Improvements Act of 1994 (42 USC 904 note). 
(22) Section 10 of the Railroad Retirement Act of 1937 
(45 U.S.C. 23If). 
(23) The following provisions of the Railroad Retirement 
Act of 1974: 
(A) Section 22(a)(1) (45 U.S.C. 231u(a)(l)). 
(B) Section 22(b)(1) (45 U.S.C. 231u(b)(l)). 
(24) Section 502 of the Railroad Retirement Solvency Act 
of 1983 (45 U.S.C. 23 If-1). 
(25) Section 47121(c) of title 49, United States Code. 
(26) The following provisions of the Omnibus Budget Rec-
oncihation Act of 1987 (Public Law 100-203; 101 Stat. 1330-
182): 
(A) Section 4007(c)(4) (42 U.S.C. 1395ww note). 
(B) Section 4079 (42 U.S.C. 1395mm note). 
(C) Section 4205 (42 U.S.C. 1395i-3 note). 
(D) Section 4215 (42 U.S.C. 1396r note). 
(27) The following provisions of the Inspector General Act 
of 1978 (PubUc Law 95-452): 
(A) Section 5(b). 
(B) Section 5(d). 
(28) The following provisions of the Public Health Service 
Act: 
114 STAT. 2763A-632 
PUBLIC LAW 106-554—APPENDIX G 
(A) In section 308(a) (42 U.S.C. 242m(a)), subpara-
graphs (A), (B), (C), and (D) of paragraph (1). 
(B) Section 403 (42 U.S.C. 283). 
(29) Section 404 of the Health Services and Centers Amend-
ments of 1978 (42 U.S.C. 242p) (PubHc Law 95-626). 
(30) The following provisions of the Older Americans Act 
of 1965: 
(A) Section 206(d) (42 U.S.C. 3017(d)). 
(B) Section 207 (42 U.S.C. 3018). 
(31) Section 308 of the Age Discrimination Act of 1975 
(42 U.S.C. 6106a(b)). 
(32) Section 509(c)(3) of the Americans with Disabilities 
Act Of 1990 (42 U.S.C. 12209(c)(3)). 
(33) Section 4207(f) of the Omnibus Budget Reconciliation 
Act of 1990 (42 U.S.C. 1395b-l note). 
SEC. 302. EXTENSION OF DEADLINES FOR IRS COMPLIANCE WITH CER-
TAIN NOTICE REQUIREMENTS. 
(a) ANNUAL INSTALLMENT AGREEMENT NOTICE.—Section 3506 
of the Internal Revenue Service Restructuring and Reform Act 
of 1998 is amended by striking "July 1, 2000" and inserting 
"September 1, 2001". 
(b) NOTICE REQUIREMENTS RELATING TO COMPUTATION OF PEN-
ALTY.—Subsection (c) of section 3306 of the Internal Revenue Serv-
ice Restructuring and Reform Act of 1998 is amended— 
(1) by striking "December 31, 2000" and inserting "June 
30, 2001", and 
(2) by adding at the end the following: "In the case of 
any notice of penalty issued after June 30, 2001, and before 
July 1, 2003, the requirements of section 6751(a) of the Internal 
Revenue Code of 1986 shall be treated as met if such notice 
contains a telephone number at which the taxpayer can request 
a copy of the taxpayer's assessment and payment history with 
respect to such penalty.". 
(c) NOTICE REQUIREMENTS RELATING TO INTEREST IMPOSED.— 
Subsection (c) of section 3308 of the Internal Revenue Service 
Restructuring and Reform Act of 1998 is amended— 
(1) by striking "December 31, 2000" and inserting "June 
30, 2001", and 
(2) by adding at the end the following: "In the case of 
any notice issued after June 30, 2001, and before July 1, 
2003, to which section 6631 of the Internal Revenue Code 
of 1986 applies, the requirements of section 6631 of such Code 
shall be treated as met if such notice contains a telephone 
number at which the taxpayer can request a copy of the tax-
payer's payment history relating to interest amounts included 
in such notice.". 
SEC. 303. EXTENSION OF AUTHORITY FOR UNDERCOVER OPERATIONS. 
Paragraph (6), and the last sentence, of section 7608(c) are 
each amended by striking "January 1, 2001" and inserting "January 
1, 2006". 
SEC. 304. CONFIDENTIALITY OF CERTAIN DOCUMENTS RELATING TO 
CLOSING AND SIMILAR AGREEMENTS AND TO AGREE-
MENTS WITH FOREIGN GOVERNMENTS. 
(a) CLOSING AND SIMILAR AGREEMENTS TREATED AS RETURN 
INFORMATION.—Paragraph (2) of section 6103(b) (defining return 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-633 
information) is amended by striking "and" at the end of subpara-
graph (B), by inserting "and" at the end of subparagraph (C), 
and by inserting after subparagraph (C) the following new subpara-
graph: 
"(D) any agreement under section 7121, and any simi-
lar agreement, and any background information related 
to such an agreement or request for such an agreement,". 
(b) AGREEMENTS WITH FOREIGN GOVERNMENTS.— 
(1) IN GENERAL.—Subchapter B of chapter 61 (relating to 
miscellaneous provisions) is amended by inserting after section 
6104 the following new section: 
"SEC. 6105. CONFroENTIALITY OF INFORMATION ARISING UNDER 
TREATY OBLIGATIONS. 
"(a) IN GENERAL.—^Tax convention information shall not be 
disclosed. 
"(b) EXCEPTIONS.—Subsection (a) shall not apply— 
"(1) to the disclosure of tax convention information to per-
sons or authorities (including courts and administrative bodies) 
which are entitled to such disclosure pursuant to a tax conven-
tion, 
"(2) to any generally applicable procedural rules regarding 
applications for relief under a tax convention, or 
"(3) in any case not described in paragraphs (1) or (2), 
to the disclosure of any tax convention information not relating 
to a particular taxpayer if the Secretary determines, after con-
sultation with each other party to the tax convention, that 
such disclosure would not impair tax administration. 
"(c) DEFINITIONS.—^For purposes of this section— 
"(1) TAX CONVENTION INFORMATION.—The term 'tax conven-
tion information' means any— 
"(A) agreement entered into with the competent 
authority of one or more foreign governments pursuant 
to a tax convention, 
"(B) application for relief under a tax convention, 
"(C) any background information related to such agree-
ment or application, 
"(D) document implementing such agreement, and 
"(E) any other information exchanged pursuant to a 
tax convention which is treated as confidential or secret 
under the tax convention. 
"(2) TAX CONVENTION.—The term 'tax convention' means— 
"(A) any income tax or gift and estate tax convention, 
or 
"(B) any other convention or bilateral agreement 
(including multilateral conventions and agreements and 
any agreement with a possession of the United States) 
providing for the avoidance of double taxation, the preven-
tion of fiscal evasion, nondiscrimination with respect to 
taxes, the exchange of tax relevant information with the 
United States, or mutual assistance in tax matters. 
79-194 O - 00 - 22 : QL 3 Part 5 
114 STAT. 2763A-634 
PUBLIC LAW 106-554^APPENDIX G 
"(d) CROSS REFERENCES.— 
"For penalties for the unauthorized disclosure of tax convention 
information which is return or return information, see sections 
7213, 7213A, and 7431.". 
(2) CLERICAL AMENDMENT.—The table of sections for sub-
chapter B of chapter 61 is amended by inserting after the 
item relating to section 6104 the following new item: 
"Sec. 6105. Confidentiality of information arising under treaty obligations.". 
(c) EXCEPTION FROM PUBLIC INSPECTION AS WRITTEN DETER-
MINATION.— 
(1) CLOSING AND SIMILAR AGREEMENTS.—Paragraph (1) of 
section 6110(b) is amended to read as follows: 
"(1) WRITTEN DETERMINATION.— 
"(A) IN GENERAL.—The term 'written determination' 
means a ruling, determination letter, technical advice 
memorandum, or Chief Counsel advice. 
"(B) EXCEPTIONS.—Such term shall not include any 
matter referred to in subparagraph (C) or (D) of section 
6103(b)(2).". 
(2) AGREEMENTS WITH FOREIGN GOVERNMENTS.—^Paragraph 
(1) of section 6110(1) is amended by inserting "or 6105" after 
"6104". 
(d) EFFECTIVE DATE.—^The amendments made by this section 
shall take effect on the date of the enactment of this Act. 
SEC. 305. INCREASE IN THRESHOLD FOR JOINT COMMITTEE REPORTS 
ON REFUNDS AND CREDITS. 
(a) GENERAL RULE.—Subsections (a) and (b) of section 6405 
are 
each 
amended 
by 
striking 
"$1,000,000" and 
inserting 
"$2,000,000". 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
shall take effect on the date of the enactment of this Act, except 
that such amendment shall not apply with respect to any refund 
or credit with respect to a report that has been made before such 
date of the enactment under section 6405 of the Internal Revenue 
Code of 1986. 
SEC. 306. TREATMENT OF MISSING CHILDREN WITH RESPECT TO CER-
TAIN TAX BENEFITS. 
(a) IN GENERAL.—Subsection (c) of section 151 (relating to 
additional exemption for dependents) is amended by adding at 
the end the following new paragraph: 
"(6) TREATMENT OF MISSING CHILDREN.— 
"(A) IN GENERAL.—Solely for the purposes referred to 
in subparagraph (B), a child of the taxpayer— 
"(i) who is presumed by law enforcement authori-
ties to have been kidnapped by someone who is not 
a member of the family of such child or the taxpayer, 
and 
"(ii) who was (without regard to this paragraph) 
the dependent of the taxpayer for the portion of the 
taxable year before the date of the kidnapping, 
shall be treated as a dependent of the taxpayer for all 
taxable years ending during the period that the child is 
kidnapped. 
"(B) PURPOSES.—Subparagraph (A) shall apply solely 
for purposes of determining— 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-635 
"(i) the deduction under this section, 
"
^ 
"(ii) the credit under section 24 (relating to child 
tax credit), and 
"(iii) whether an individual is a surviving spouse 
or a head of a household (such terms are defined 
in section 2). 
"(C) 
COMPARABLE TREATMENT FOR EARNED INCOME 
CREDIT.—For purposes of section 32, an individual— 
"(i) who is presumed by law enforcement authori-
ties to have been kidnapped by someone who is not 
a member of the family of such individual or the tax-
payer, and 
"(ii) who had, for the taxable year in which the 
kidnapping occurred, the same principal place of abode 
as the taxpayer for more than one-half of the portion 
of such year before the date of the kidnapping, 
shall be treated as meeting the requirement of section 
32(c)(3)(A)(ii) with respect to a taxpayer for all taxable 
years ending during the period that the individual is kid-
napped. 
"(D) TERMINATION OF TREATMENT.—Subparagraphs (A) 
and (C) shall cease to apply as of the first taxable year 
of the taxpayer beginning after the calendar year in which 
there is a determination that the child is dead (or, if 
earlier, in which the child would have attained age 18).". 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years ending after the date of the enactment 
of this Act. 
SEC. 307. AMENDMENTS TO STATUTES REFERENCING YIELD ON 52-
WEEK TREASURY BILLS. 
(a) AMENDMENT TO THE ACT OF FEBRUARY 26, 1931.—Section 
6 of the Act of February 26, 1931 (40 U.S.C. 258e-l) (relating 
to the interest rate on compensation owed for takings of property) 
is amended— 
(1) in paragraph (1), by striking "the coupon issue yield 
equivalent (as determined by the Secretary of the Treasury) 
of the average accepted auction price for the last auction of 
52 week United States Treasury bills settled immediately 
before" and inserting "the weekly average 1-year constant matu-
rity Treasury 3deld, as published by the Board of Governors 
of the Federal Reserve System, for the calendar week 
preceding"; and 
(2) in paragraph (2), by striking "the coupon issue yield 
equivalent (as determined by the Secretary of the Treasury) 
of the average accepted auction price for the last auction of 
52 week United States Treasury bills settled immediately 
before" and inserting "the weekly average 1-year constant matu-
rity Treasury 3deld, as published by the Board of Governors 
of the Federal Reserve System, for the calendar week 
preceding". 
(b) AMENDMENT TO TITLE 18, UNITED STATES CODE.—Section 
3612(f)(2)(B) of title 18, United States Code (relating to the interest 
rate on impaid criminal fines and penalties of more than $2,500) 
is amended by striking "the coupon issue yield equivalent (as deter-
mined by the Secretary of the Treasury) of the average accepted 
auction price for the last auction of fifty-two week United States 
114 STAT. 2763A-636 PUBLIC LAW 106-554^APPENDIX G 
Treasury bills settled before" and inserting 'the weekly average 
1-year constant maturity Treasury yield, as published by the Board 
of Governors of the Federal Reserve System, for the calendar week 
preceding.". 
(c) AMENDMENT TO THE INTERNAL REVENUE CODE.—Section 
995(f)(4) (relating to the interest rate on tax-deferred liability of 
shareholders of domestic international sales corporations) is amend-
ed by striking "the average investment yield of United States Treas-
ury bills with maturities of 52 weeks which were auctioned during 
the 1-year period" and inserting "the average of the 1-year constant 
maturity Treasury yields, as published by the Board of Governors 
of the Federal Reserve System, for the 1-year period". 
(d) AMENDMENTS TO TITLE 28, UNITED STATES CODE.— 
(1) AMENDMENT TO SECTION I96I.—Section 1961(a) of title 
28, United States Code (relating to the interest rate on money 
judgments in civil cases recovered in Federal district court) 
is amended by striking "the coupon issue yield equivalent (as 
determined by the Secretary of the Treasury) of the average 
accepted auction price for the last auction of fifty-two week 
United States Treasury bills settled immediately prior to" and 
inserting "the weekly average 1-year constant maturity Treas-
ury yield, as published by the Board of Governors of the Federal 
Reserve System, for the calendar week preceding.". 
(2) AMENDMENT TO SECTION 25 16.—Section 2516(b) of title 
28, United States Code (relating to the interest rate on a 
judgment against the United States affirmed by the Supreme 
Court after review on petition of the United States) is amended 
by striking "the coupon issue yield equivalent (as determined 
by the Secretary of the Treasury) of the average accepted 
auction price for the last auction of fifty-two week United 
States Treasury bills settled immediately before" and inserting 
"the weekly average 1-year constant maturity Treasury yield, 
as published by the Board of Governors of the Federal Reserve 
System, for the calendar week preceding". 
SEC. 308. ADJUSTMENTS FOR CONSUMER PRICE INDEX ERROR. 
(a) DETERMINATIONS BY OMB.—As soon as practicable after 
the date of the enactment of this Act, the Director of the Office 
of Management and Budget shall determine with respect to each 
applicable Federal benefit program whether the CPI computation 
error for 1999 has or will result in a shortfall in payments to 
beneficiaries under such program (as compared to payments that 
would have been made if the error had not occurred). As soon 
as practicable after the date of the enactment of this Act, but 
not later than 60 days after such date, the Director shall direct 
the head of the Federal agency which administers such program 
to make a payment or payments that, insofar as the Director 
finds practicable and feasible— 
(1) are targeted to the amount of the shortfall experienced 
by individual beneficiaries, and 
(2) compensate for the shortfall. 
(b) COORDINATION WITH FEDERAL AGENCIES.—As soon as prac-
ticable after the date of the enactment of this Act, each Federal 
agency that administers an applicable Federal benefit program 
shall, in accordance with such guidelines as are issued by the 
Director pursuant to this section, make an initial determination 
of whether, and the extent to which, the CPI computation error 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-637 
for 1999 has or will result in a shortfall in payments to beneficiaries 
of an applicable Federal benefit program administered by such 
agency. Not later than 30 days after such date, the head of such 
agency shall submit a report to the Director and to each House 
of the Congress of such determination, together with a complete 
description of the nature of the shortfall. 
(c) IMPLEMENTATION PURSUANT TO AGENCY REPORTS.—^Upon 
receipt of the report submitted by a Federal agency pursuant to 
subsection (b), the Director shall review the initial determination 
of the agency, the agency's description of the nature of the shortfall, 
and the compensation payments proposed by the agency. Prior 
to directing payment of such payments pursuant to subsection 
(a), the Director shall make appropriate adjustments (if any) in 
the compensation payments proposed by the agency that the Direc-
tor determines are necessary to comply with the requirements of 
subsection (a) and transmit to the agency a summary report of 
the review, indicating any adjustments made by the Director. The 
agency shall make the compensation payments as directed by the 
Director pursuEint to subsection (a) in accordance with the Director's 
summary report. 
(d) INCOME DISREGARD UNDER FEDERAL MEANS-TESTED BENE-
FIT PROGRAMS.—^A payment made under this section to compensate 
for a shortfall in benefits shall, in accordance with guidelines issued 
by the Director pursuant to this section, be disregarded in determin-
ing income under title VIII of the Social Security Act or any 
applicable Federal benefit program that is means-tested, 
(e) FUNDING.—Funds otherwise available under each applicable 
Federal benefit program for making benefit payments under such 
program are hereby made available for making compensation pay-
ments under this section in connection with such program. 
(f) No JUDICIAL REVIEW.—No action taken pursuant to this 
section shall be subject to judicial review. 
(g) DIRECTOR'S REPORT.—Not later than April 1, 2001, the 
Director shall submit to each House of the Congress a report on 
the activities performed by the Director pursuant to this section. 
(h) DEFINITIONS.—For purposes of this section: 
(1) APPLICABLE FEDERAL BENEFIT PROGRAM.—The term 
"applicable Federal benefit program" means any program of 
the Government of the United States providing for regular 
or periodic payments or cash assistance paid directly to individ-
ual beneficiaries, as determined by the Director of the Office 
of Management and Budget. 
(2) FEDERAL AGENCY.—^The term "Federal agency" means 
a department, agency, or instrumentality of the Government 
of the United States. 
(3) CPI COMPUTATION ERROR FOR 1999.—The term "CPI 
computation error for 1999" means the error in the computation 
of the Consumer Price Index announced by the Bureau of 
Labor Statistics on September 28, 2000. 
(i) TAX PROVISIONS.—In the case of taxable years (and other 
periods) beginning after December 31, 2000, if any Consumer Price 
Index (as defined in section 1(f)(5) of the Internal Revenue Code 
of 1986) reflects the CPI computation error for 1999— 
(1) the correct amount of such Index shall (in such manner 
and to such extent as the Secretary of the Treasury determines 
to be appropriate) be taken into account for purposes of such 
Code, and 
114 STAT. 2763A-638 
PUBLIC LAW 106-554—APPENDIX G 
(2) tables prescribed under section 1(f) of such Code to 
reflect such correct amount shall apply in lieu of any tables 
that were prescribed based on the erroneous amount. 
SEC. 309. PREVENTION OF DUPLICATION OF LOSS THROUGH ASSUMP-
TION OF LIABILITIES GIVING RISE TO A DEDUCTION. 
(a) IN GENERAL.—Section 358 (relating to basis to distributees) 
is amended by adding at the end the following new subsection: 
"(h) SPECIAL RULES FOR ASSUMPTION OF LIABILITIES TO WHICH 
SUBSECTION (d) DOES NOT APPLY.— 
"(1) IN GENERAL.—If, after application of the other provi-
sions of this section to an exchange or series of exchanges, 
the basis of property to which subsection (a)(1) applies exceeds 
the fair market value of such property, then such basis shall 
be reduced (but not below such fair market value) by the 
amount (determined as of the date of the exchange) of any 
liability— 
"(A) which is assumed in exchange for such property, 
and 
"(B) with respect to which subsection (d)(1) does not 
apply to the assumption. 
"(2) EXCEPTIONS.—Except as provided by the Secretary, 
paragraph (1) shall not apply to any liability if— 
"(A) the trade or business with which the liability 
is associated is transferred to the person assuming the 
liability as part of the exchange, or 
"(B) substantially all of the assets with which the 
liability is associated are trsinsferred to the person assum-
ing the liability as part of the exchange. 
"(3) LIABILITY.—^For purposes of this subsection, the term 
'liability' shall include any fixed or contingent obligation to 
make pa3mient, without regard to whether the obligation is 
otherwise taken into account for purposes of this title.". 
(b) DETERMINATION OF AMOUNT OF LIABILITY ASSUMED.—Sec-
tion 357(d)(1) is amended by inserting "section 358(h)," after "section 
358(d),". 
(c) APPLICATION OF COMPARABLE RULES TO PARTNERSHIPS AND 
S CORPORATIONS.—^The Secretary of the Treasury or his delegate— 
(1) shall prescribe rules which provide appropriate adjust-
ments under subchapter K of chapter 1 of the Internal Revenue 
Code of 1986 to prevent the acceleration or duplication of losses 
through the assumption of (or transfer of assets subject to) 
liabilities described in section 358(h)(3) of such Code (as added 
by subsection (a)) in transactions involving partnerships, and 
(2) may prescribe rules which provide appropriate adjust-
ments under subchapter S of chapter 1 of such Code in trans-
actions described in paragraph (1) involving S corporations 
rather than partnerships. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—^The amendments made by this section 
shall apply to assumptions of liability after October 18, 1999. 
(2) RULES.—^The rules prescribed under subsection (c) shall 
apply to assumptions of liability after October 18, 1999, or 
such later date as may be prescribed in such rules. 
SEC. 310. DISCLOSURE OF CERTAIN INFORMATION TO CONGRES-
SIONAL BUDGET OFFICE. 
(a) DISCLOSURE OF CERTAIN TAX INFORMATION.— 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-639 
(1) IN GENERAL.—Subsection (j) of section 6103 (relating 
to statistical use) is amended by adding at the end the following 
new paragraph: 
"(6) 
CONGRESSIONAL 
BUDGET 
OFFICE.—^Upon 
written 
request by the Director of the Congressional Budget Office, 
the Secretary shall furnish to officers and employees of the 
Congressional Budget Office return information for the purpose 
of, but only to the extent necessary for, long-term models of 
the social security and medicare programs.". 
(2) 
RECORDKEEPING SAFEGUARDS.—Section 
6103(p) 
is 
amended— 
(A) in paragraph (4)— 
(i) in the matter preceding subparagraph (A), by 
inserting "the Congressional Budget Office," 
after 
"General Accounting Office,", 
(ii) in subparagraph (E), by striking "commission 
or the General Accounting Office" and inserting 
"commission, the General Accounting Office, or the 
Congressional Budget Office", 
(iii) in subparagraph (F)(ii), by striking "or the 
General Accounting Office," and inserting "the General 
Accounting Office, or the Congressional Budget Office,", 
and 
(iv) in the matter following subparagraph (F), by 
inserting "or the Congressional Budget Office" after 
"General Accounting Office" both places it appears, 
(B) in paragraph (5), by striking "commissions and 
the General Accounting Office" and inserting "commissions, 
the General Accounting Office, and the Congressional 
Budget Office", and 
(C) in paragraph (6)(A), by inserting "and the Congres-
sional Budget Office" after "commissions". 
(b) CONFIDENTIALITY OF RECORDS.— 
(1) IN GENERAL.—Section 203 of the Congressional Budget 
Act of 1974 (2 U.S.C. 603) is amended by adding at the end 
the following: 
"(e) LEVEL OF CONFIDENTL\LITY.—With respect to information, 
data, estimates, and statistics obtained under sections 201(d) and 
201(e), the Director shall maintain the same level of confidentiality 
as is required by law of the department, agency, establishment, 
or regulatory agency or commission from which it is obtained. 
Officers and employees of the Congressional Budget Office shall 
be subject to the same statutory penalties for unauthorized disclo-
sure or use as officers or employees of the department, agency, 
establishment, or regulatory agency or commission from which it 
is obtained.". 
(2) CONFORMING AMENDMENT.—Subsection (a) of section 
203 of such Act is amended by striking "subsections (c) and 
(d)" and inserting "subsections (c), (d), and (e)". 
Subtitle B—^Technical Corrections 
SEC. 311. AMENDMENTS RELATED TO TICKET TO WORK AND WORK 
INCENTIVES IMPROVEMENT ACT OF 1999. 
(a) AMENDMENTS RELATED TO SECTION 502 OF THE ACT.— 
114 STAT. 2763A-640 
PUBLIC LAW 106-554—APPENDIX G 
(1) Section 280C(c)(l) is amended by striking "or credit" 
after "deduction" each place it appears. 
(2) Section 30A is amended by redesignating subsections 
(f) and (g) as subsections (g) and (h), respectively, and by 
inserting after subsection (e) the following new subsection: 
"(f) DENIAL OF DOUBLE BENEFIT.—^Any wages or other expenses 
taken into account in determining the credit under this section 
may not be taken into account in determining the credit under 
section 41.". 
(b) AMENDMENT RELATED TO SECTION 545 OF THE ACT.—Clause 
(ii) of section 857(b)(7)(B) is amended to read as follows: 
"(ii) EXCEPTION FOR CERTAIN AMOUNTS.—Clause (i) 
shall not apply to amounts received directly or 
indirectly by a real estate investment trust— 
"(I) for services furnished or rendered by a 
taxable REIT subsidiary that are described in 
paragraph (1)(B) of section 856(d), or 
"(II) from a taxable REIT subsidiary that are 
described in paragraph (7)(C)(ii) of such section.". 
(c) CLARIFICATION RELATED TO SECTION 538 OF THE ACT.— 
The reference to section 332(b)(1) of the Internal Revenue Code 
of 1986 in Treasury Regulation section 1.1502-34 shall be deemed 
to include a reference to section 732(f) of such Code. 
(d) EFFECTIVE DATE.—Subsection (c) and the amendments made 
by this section shall take effect as if included in the provisions 
of the Ticket to Work and Work Incentives Improvement Act of 
1999 to which they relate. 
SEC. 312. AMENDMENTS RELATED TO TAX AND TRADE RELIEF EXTEN-
SION ACT OF 1998. 
(a) AMENDMENT RELATED TO SECTION 1004(b) OF THE ACT.— 
Subsection (d) of section 6104 is amended by adding at the end 
the following new paragraph: 
"(6) APPLICATION TO NONEXEMPT CHARITABLE TRUSTS AND 
NONEXEMPT PRIVATE FOUNDATIONS.—^The organizations referred 
to in paragraphs (1) and (2) of section 6033(d) shall comply 
with the requirements of this subsection relating to annual 
returns filed under section 6033 in the same manner as the 
organizations referred to in paragraph (1).". 
(b) AMENDMENT RELATED TO SECTION 4003 OF THE ACT.— 
Subsection (b) of section 4003 of the Tax and Trade Relief Extension 
Act 
of 
1998 
is 
amended 
by 
inserting 
"(7)(A)(i)(II)," 
after 
"(5)(A)(ii)(I),". 
(c) EFFECTIVE DATE.—^The amendments made by this section 
shall take effect as if included in the provisions of the Tax and 
Trade Relief Extension Act of 1998 to which they relate. 
SEC. 313. AMENDMENTS RELATED TO INTERNAL REVENUE SERVICE 
RESTRUCTURING AND REFORM ACT OF 1998. 
(a) AMENDMENTS RELATED TO INNOCENT SPOUSE RELIEF.— 
(1) ELECTION MAY BE MADE ANY TIME AFTER DEFICIENCY 
ASSERTED.—Subparagraph (B) of section 6015(c)(3) is amended 
by striking "shall be made" and inserting "may be made at 
any time after a deficiency for such year is asserted but". 
(2) CLARIFICATION REGARDING DISALLOWANCE OF REFUNDS 
AND CREDITS UNDER SECTION 6015(C).— 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-641 
(A) IN GENERAL.—Section 
6015 is amended 
by 
redesignating subsection (g) as subsection (h) and by insert-
ing after subsection (f) the following new subsection: 
"(g) CREDITS AND REFUNDS.— 
"(1) IN GENERAL.—^Except as provided in paragraphs (2) 
and (3), notwithstanding any other law or rule of law (other 
than section 6511, 6512(b), 7121, or 7122), credit or refund 
shall be allowed or made to the extent attributable to the 
application of this section. 
"(2) RES JUDICATA.—In the case of any election under sub-
section (b) or (c), if a decision of a court in any prior proceeding 
for the same taxable year has become final, such decision 
shall be conclusive except with respect to the qualification 
of the individual for relief which was not an issue in such 
proceeding. The exception contained in the preceding sentence 
shall not apply if the court determines that the individual 
participated meaningfully in such prior proceeding. 
"(3) CREDIT AND REFUND NOT ALLOWED UNDER SUBSECTION 
(c).—No credit or refund shall be allowed as a result of an 
election imder subsection (c).". 
(B) CONFORMING AMENDMENT.—^Paragraph (3) of sec-
tion 6015(e) is amended to read as follows: 
"(3) LIMITATION ON TAX COURT JURISDICTION.—If a suit 
for refund is begun by either individual filing the joint return 
pursuant to section 6532— 
"(A) the Tax Court shall lose jurisdiction of the individ-
ual's action under this section to whatever extent jurisdic-
tion is acquired by the district court or the United States 
Court of Federal Claims over the taxable years that are 
the subject of the suit for refund, and 
"(B) the court acquiring jurisdiction shall have jurisdic-
tion over the petition filed under this subsection.". 
(3) CLARIFICATIONS REGARDING REVIEW BY TAX COURT.— 
(A) Paragraph (1) of section 6015(e) is amended in 
the matter preceding subparagraph (A) by inserting after 
"individual" the following: "against whom a deficiency has 
been asserted and". 
(B) Subparagraph (A) of section 6015(e)(1) is amended 
to read as follows: 
"(A) IN GENERAL.—In addition to any other remedy 
provided by law, the individual may petition the Tax Court 
(and the Tax Court shall have jurisdiction) to determine 
the appropriate relief available to the individual under 
this section if such petition is filed— 
"(i) at any time after the earlier of— 
"(I) the date the Secretary mails, by certified 
or registered mail to the taxpayer's last known 
address, notice of the Secretary's final determina-
tion of relief available to the individual, or 
"(II) the date which is 6 months after the 
date such election is filed with the Secretary, and 
"(ii) not later than the close of the 90th day after 
the date described in clause (i)(I).". 
(C) Subparagraph 
(B)(i) of section 6015(e)(1) is 
amended— 
(i) by striking "until the expiration of the 90-day 
period described in subparagraph (A)" and inserting 
114 STAT. 2763A-642 PUBLIC LAW 106-554—APPENDIX G 
"until the close of the 90th day referred to in subpara-
graph (A)(ii)", and 
(ii) by inserting "under subparagraph (A)" after 
"filed with the Tax Court". 
(D)(i) Subsection (e) of section 6015 is amended by 
adding at the end the following new paragraph: 
"(5) WAIVER.—^An individual who elects the application of 
subsection (b) or (c) (and who agrees with the Secretary's deter-
mination of relief) may waive in writing at any time the restric-
tions in paragraph (1)(B) with respect to collection of the 
outstanding assessment (whether or not a notice of the Sec-
retary's final determination of relief has been mailed).". 
(ii) Paragraph (2) of section 6015(e) is amended to 
read as followsf 
"(2) SUSPENSION OF RUNNING OF PERIOD OF LIMITATIONS.— 
The running of the period of limitations in section 6502 on 
the collection of the assessment to which the petition under 
paragraph (1)(A) relates shall be suspended— 
"(A) for the period during which the Secretary is 
prohibited by paragraph (1)(B) from collecting by levy or 
a proceeding in court and for 60 days thereafter, and 
"(B) if a waiver under paragraph (5) is made, from 
the date the claim for relief was filed until 60 days after 
the waiver is filed with the Secretary.", 
(b) AMENDMENTS RELATED TO PROCEDURE AND ADMINISTRA-
TION.— 
(1) DISPUTES INVOLVING $50,000 OR LESS.—Section 7463 
is amended by adding at the end the following new subsection: 
"(f) ADDITIONAL CASES IN WHICH PROCEEDINGS MAY BE CON-
DUCTED UNDER THIS SECTION.—At the option of the taxpayer con-
curred in by the Tax Court or a division thereof before the hearing 
of the case, proceedings may be conducted under this section (in 
the same manner as a case described in subsection (a)) in the 
case of— 
"(1) a petition to the Tax Court under section 6015(e) 
in which the amount of relief sought does not exceed $50,000, 
and 
"(2) an appeal under section 6330(d)(1)(A) to the Tax Court 
of a determination in which the unpaid tax does not exceed 
$50,000.". 
(2) AUTHORITY TO ENJOIN COLLECTION ACTIONS.— 
(A) Section 6330(e)(1) is amended by adding at the 
end the following: "Notwithstanding the provisions of sec-
tion 7421(a), the beginning of a levy or proceeding during 
the time the suspension under this paragraph is in force 
may be enjoined by a proceeding in the proper court, includ-
ing the Tax Court. The Tax Court shall have no jurisdiction 
under this paragraph to enjoin any action or proceeding 
unless a timely appeal has been filed under subsection 
(d)(1) and then only in respect of the unpaid tax or proposed 
levy to which the determination being appealed relates.". 
(B) 
Section 
7421(a) 
is 
amended 
by 
inserting 
"6330(e)( D," after "6246(b),". 
(3) CLARIFICATION.—Paragraph (3) of section 633l(k) is 
amended by striking "(3), (4), and (5)" and inserting "(3) and 
(4)". 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-643 
(c) AMENDMENT RELATED TO SECTION 1103 OF THE ACT.—Para-
graph (6) of section 6103(k) is amended— 
(1) by inserting "and an officer or employee of the Office 
of Treasury Inspector General for Tax Administration" after 
"internal revenue officer or employee", and 
(2) by striking "INTERNAL REVENUE" in the heading and 
inserting "CERTAIN". 
(d) AMENDMENT RELATED TO SECTION 3401 
OF THE ACT.— 
Section 6330(d)(1)(A) is amended by striking "to hear" and inserting 
"with respect to". 
(e) AMENDMENT RELATED TO SECTION 3509 OF THE ACT.— 
Subparagraph (A) of section 6110(g)(5) is amended by inserting 
", any Chief Counsel advice," after "technical advice memorandum". 
(f) EFFECTIVE DATES.—The amendments made by subsections 
(a) and (b) shall take effect on the date of the enactment of this 
Act. The amendments made by subsections (c), (d), and (e) shall 
take effect as if included in the provisions of the Internal Revenue 
Service Restructuring and Reform Act of 1998 to which they relate. 
SEC. 314. AMENDMENTS RELATED TO TAXPAYER RELIEF ACT OF 1997. 
(a) AMENDMENT RELATED TO SECTION 101 OF THE ACT.—Para-
graph (4) of section 6211(b) is amended by striking "sections 32 
and 34" and inserting "sections 24(d), 32, and 34". 
(b) AMENDMENT RELATED TO SECTION 302 OF THE ACT.—The 
last sentence of section 3405(e)(1)(B) is amended by inserting "(other 
than a Roth IRA)" after "individual retirement plan". 
(c) AMENDMENT TO SECTION 311 OF THE ACT.—Paragraph (3) 
of section 311(e) of the Taxpayer Relief Act of 1997 (relating to 
election to recognize gain on assets held on January 1, 2001) is 
amended by adding at the end the following new sentence: "Such 
an election shall not apply to any asset which is disposed of (in 
a transaction in which gain or loss is recognized in whole or in 
part) before the close of the 1-year period beginning on the date 
that the asset would have been treated as sold under such election.". 
(d) AMENDMENT RELATED TO SECTION 402 OF THE ACT.—The 
flush sentence at the end of clause (ii) of section 56(a)(1)(A) is 
amended by inserting before "or to any other property" the following: 
"(and the straight line method shall be used for such 1250 prop-
erty)". 
(e) AMENDMENTS RELATED TO SECTION 1072 
OF THE ACT.— 
(1) Clause (ii) of section 415(c)(3)(D) and subparagraph 
(B) of section 403(b)(3) are each amended by striking "section 
125 or" and inserting "section 125, 132(f)(4), or". 
(2) Paragraph (2) of section 414(s) is amended by striking 
"section 125, 402(e)(3)" and inserting "section 125, 132(f)(4), 
402(e)(3)". 
(f) AMENDMENT RELATED TO SECTION 1454 OF THE ACT.—Sub-
section (a) of section 7436 is amended by inserting before the 
period at the end of the first sentence "and the proper amount 
of employment tax under such determination". 
(g) EFFECTIVE DATE.—^The amendments made by this section 
shall take effect as if included in the provisions of the Taxpayer 
Relief of 1997 to which they relate. 
SEC. 315. AMENDMENTS RELATED TO BALANCED BUDGET ACT OF 1997. 
(a) AMENDMENTS RELATED TO SECTION 9302 OF THE ACT.— 
114 STAT. 2763A-644 
PUBLIC LAW 106-554—APPENDIX G 
(1) Paragraph (1) of section 9302(j) of the Balanced Budget 
Act of 1997 is amended by striking "tobacco products and 
cigarette papers and tubes" and inserting "cigarettes". 
(2)(A) Subsection (h) of section 5702 is amended to read 
as follows: 
"(h) MANUFACTURER OF CIGARETTE PAPERS AND TUBES.—'Manu-
facturer of cigarette papers and tubes' means any person who 
manufactures cigarette paper, or makes up cigarette paper into 
tubes, except for his own personal use or consumption.". 
(B) Section 5702, as amended by subparagraph (A), is 
amended by striking subsection (f) and by redesignating sub-
sections (g) through (p) as subsections (f) through (o), respec-
tively. 
(3) Subsection (c) of section 5761 is amended by adding 
at the end the following: "This subsection and section 5754 
shall not apply to any person who relands or receives tobacco 
products in the quantity allowed entry free of tax and duty 
under chapter 98 of the Harmonized Tariff Schedule of the 
United States, and such person may voluntarily relinquish 
to the Secretary at the time of entry any excess of such quEintity 
without incurring the penalty under this subsection. No quan-
tity of tobacco products other than the quantity referred to 
in the preceding sentence may be relanded or received as a 
personal use quantity.". 
(b) EFFECTIVE DATE.—^The amendments made by this section 
shall take effect as if included in section 9302 of the Balanced 
Budget Act of 1997. 
SEC. 316. AMENDMENTS RELATED TO SMALL BUSD^SS JOB PROTEC-
TION ACT OF 1996. 
(a) AMENDMENT RELATED TO SECTION 1201 OF THE ACT.— 
Subparagraph (B) of section 51(d)(2) is amended— 
(1) by striking "plan approved" and inserting "program 
funded", and 
(2) by striking "(relating to assistance for needy families 
with minor children)". 
(b) AMENDMENT RELATED TO SECTION 1302 OF THE ACT.— 
Clause (i) of section 1361(e)(1)(A) is amended by striking "or" before 
"(III)" and by adding at the end the following: "or (IV) an organiza-
tion described in section 170(c)(1) which holds a contingent interest 
in such trust and is not a potential current beneficiary,". 
(c) AMENDMENT RELATED TO SECTION 1401 OF THE ACT.— 
Clause (ii) of section 401(k)(10)(B) is amended by adding at the 
end the following new sentence: "Such term includes a distribution 
of an annuity contract from— 
"(I) a trust which forms a part of a plan 
described in section 401(a) and which is exempt 
from tax under section 501(a), or 
"(II) an annuity plan described in section 
403(a).". 
(d) AMENDMENT RELATED TO SECTION 1427 OF THE ACT.— 
Clause (ii) of section 219(c)(1)(B) is amended by striking "and" 
at the end of subclause (I), by redesignating subclause (II) as 
subclause (III), and by inserting after subclause (I) the following 
new subclause: 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-645 
"(11) the amount of any designated nondeduct-
ible contribution (as defined in section 408(o)) on 
behalf of such spouse for such taxable year, and". 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in the provisions of the Small 
Business Job Protection Act of 1996 to which they relate. 
SEC. 317. AMENDMENT RELATED TO REVENUE RECONCILIATION ACT 
OF 1990. 
(a) AMENDMENT RELATED TO SECTION 11511 
OF THE ACT.— 
Subparagraph (C) of section 43(c)(1) is amended— 
(1) by inserting "(as defined in section 193(b))" after 
"expenses", and 
(2) by striking "under section 193". 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect as if included in section 11511 of the Revenue 
Reconciliation Act of 1990. 
SEC. 318. OTHER TECHNICAL CORRECTIONS. 
(a) MODIFIED ENDOWMENT CONTRACTS.— 
(1) Paragraph (2) of section 7702A(a) is amended by insert-
ing "or this paragraph" before the period. 
(2) Clause (ii) of section 7702A(c)(3)(A) is amended by strik-
ing "under the contract" and inserting "under the old contract". 
(3) The amendments made by this subsection shall take 
effect as if included in the amendments made by section 5012 
of the Technical and Miscellaneous Revenue Act of 1988. 
(b) 
AFFILIATED CORPORATIONS IN CONTEXT OF WORTHLESS 
SECURITIES.— 
(1) Subparagraph (A) of section 165(g)(3) is amended to 
read as follows: 
"(A) the taxpayer owns directly stock in such corpora-
tion meeting the requirements of section 1504(a)(2), and". 
(2) Paragraph (3) of section 165(g) is amended by striking 
the last sentence. 
(3) The amendments made by this subsection shall apply 
to taxable years beginning after December 31, 1984. 
(c) CERTAIN ANNUITIES ISSUED BY TAX-EXEMPT ORGANIZATIONS 
NOT TREATED AS DEBT INSTRUMENTS UNDER ORIGINAL ISSUE DIS-
COUNT RULES.— 
(1) Clause (ii) of section 1275(a)(1)(B) is amended by strik-
ing "subchapter L" and inserting "subchapter L (or by an entity 
described in section 501(c) and exempt from tax under section 
501(a) which would be subject to tax under subchapter L were 
it not so exempt)". 
(2) The amendment made by this subsection shall take 
effect as if included in the amendments made by section 41 
of the Tax Reform Act of 1984. 
(d) TENTATIVE CARRYBACK ADJUSTMENTS OF LOSSES FROM SEC-
TION 1256 CONTRACTS.— 
(1) Subsection (a) of section 6411 is amended by striking 
"section 1212(a)(1)" and inserting "subsection (a)(1) or (c) of 
section 1212". 
(2) The amendment made by paragraph (1) shall take effect 
as if included in the amendments made by section 504 of 
the Economic Recovery Tax Act of 1981. 
(e) CORRECTION OF CALCULATION OF AMOUNTS TO BE DEPOSITED 
IN HIGHWAY TRUST FUND.— 
114 STAT, 2763A-646 PUBLIC LAW 106-554—APPENDIX G 
(1) Subsection (b) of section 9503 is amended by striking 
paragraph (5) and redesignating paragraph (6) as paragraph 
(5). 
(2) The amendment made by paragraph (1) shall apply 
with respect to taxes received in the Treasury after the date 
of the enactment of this Act. 
(f) EXPENDITURES FROM VACCINE INJURY COMPENSATION TRUST 
FUND,—Section 9510(c)(1)(A) is amended by striking "December 
31, 1999" and inserting "October 18, 2000", 
SEC. 319. CLERICAL CHANGES. 
(1) Clause (i) of section 45(d)(7)(A) is amended by striking 
"paragraph (3)(A)" and inserting "subsection (c)(3)(A)", 
(2) Subsection (f) of section 67 is amended by striking 
"the last sentence" and inserting "the second sentence", 
(3) The heading for paragraph (5) of section 408(d) is 
amended to read as follows: 
"(5) DISTRIBUTIONS OF EXCESS CONTRIBUTIONS AFTER DUE 
DATE FOR TAXABLE YEAR AND CERTAIN EXCESS ROLLOVER CON-
TRIBUTIONS,—", 
(4) Paragraph (3) of section 475(g) is amended by striking 
"267(b) of and inserting "267(b) or", 
(5) The heading for subparagraph (B) of section 529(e)(3) 
is amended by striking "UNDER GUARANTEED PLANS", 
(6) Clause (iii) of section 530(d)(4)(B) is amended by striking 
"; or" at the end and inserting ", or", 
(7) Paragraphs (1)(C) and (2)(C) of section 664(d) are each 
amended by striking the period after "subsection (g))". 
(8)(A) Subsection (e) of section 678 is amended by striking 
"an electing small business corporation" and inserting "an S 
corporation", 
(B) Clause (v) of section 6103(e)(1)(D) is amended to read 
as follows: 
"(v) if the corporation was an S corporation, any 
person who was a shareholder during any part of the 
period covered by such return during which an election 
under section 1362(a) was in effect, or". 
(9) Paragraph (7) of section 856(c) is amended by striking 
"paragraph 
(4)(B)(ii)(III)" 
and 
inserting 
"paragraph 
(4XB)(iii)(III)" 
(10) Subparagraph (A) of section 856(1)(4) is amended by 
striking 
"paragraph 
(9)(D)(ii)" £ind inserting 
"subsection 
(d)(9)(D)(ii)". 
(11) Subparagraph (B) of section 871(f)(2) is amended by 
striking "19 U.S.C," and inserting "(19 U,S,C,", 
(12) Subparagraph (B) of section 995(b)(3) is amended by 
striking "the Military Security Act of 1954 (22 U,S.C, 1934)" 
and inserting "section 38 of the International Security Assist-
ance and Arms Export Control Act of 1976 (22 U.S.C, 2778)", 
(13) Section 1391(g)(3)(C) is amended by striking "para-
graph (1)(B)" and inserting "paragraph (1)", 
(14)(A) Paragraph (2) of section 2035(c) is amended by 
striking "paragraph (1)" and inserting "subsection (a)", 
(B) Subsection (d) of section 2035 is amended by inserting 
"and paragraph (1) of subsection (c)" after "Subsection (a)". 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-647 
(15) Paragraph (5) of section 3121(a) is amended by striking 
the semicolon at the end of subparagraph (G) and inserting 
a comma. 
(16) Subparagraph (B) of section 4946(c)(3) is amended 
by striking "the lowest rate of compensation prescribed for 
GS-16 of the General Schedule under section 5332" and insert-
ing "the lowest rate of basic pay for the Senior Executive 
Service under section 5382". 
(17) Subsection (p) of section 6103 is amended— 
(A) in paragraph (4), in the matter preceding subpara-
graph (A)— 
(i) by striking the second comma after "(13)", and 
(ii) by striking "(7)" and all that follows through 
"shall, as a condition" and inserting "(7), (8), (9), (12), 
(15), or (16) or any other person described in subsection 
(1)(16) shall, as a condition", and 
(B) in paragraph (4)(F)(ii), by striking the second 
comma after "(14)". 
(18) Paragraph (5) of section 6166(k) is amended by striking 
"2035(d)(4)" and inserting "2035(c)(2)". 
(19) Subsection (a) of section 6512 is amended by striking 
"; and" at the end of paragraphs (1), (2), and (5) and inserting 
", and". 
(20) Paragraph (1) of section 6611(g) is amended by striking 
the comma after "(b)(3)". 
(21) Subparagraphs (A) and (B) of section 6655(e)(5) are 
amended by striking "subsections (d)(5) and (1)(3)(B)" and 
inserting "subsection (d)(5)". 
(22) The subchapter heading for subchapter D of chapter 
67 is amended by capitalizing the first letter of the second 
word. 
(23)(A) Section 6724(d)(1)(B) is amended by striking clauses 
(xiv) through (xvii) and inserting the following: 
"(xiv) subparagraph (A) or (C) of subsection (c)(4) 
of section 4093 (relating to information reporting with 
respect to tax on diesel and aviation fuels), 
"(xv) section 4101(d) (relating to 
information 
reporting with respect to fuels taxes), 
"(xvi) subparagraph (C) of section 338(h)(10) (relat-
ing to information required to be furnished to the 
. 
Secretary in case of elective recognition of gain or 
loss), or 
"(xvii) section 264(f)(5)(A)(iv) (relating to reporting 
with respect to certain life insurance and annuity con-
tracts), and". 
(B) Section 6010(o)(4)(C) of the Internal Revenue Service 
Restructuring and Reform Act of 1998 is amended by striking 
"inserting 'or', and by adding at the end" and inserting "insert-
ing ', or', and by adding after subparagraph (Z)". 
(24) Subsection (a) of section 7421 is amended by striking 
"6672(b)" and inserting "6672(c)". 
(25) Paragraph (3) of section 7430(c) is amended— 
(A) in the paragraph heading, by striking "ATTORNEYS" 
and inserting "ATTORNEYS' ", and 
(B) in subparagraph (B), by striking "attorneys fees" 
each place it appears and inserting "attorneys' fees". 
114 STAT. 2763A-648 
PUBLIC LAW 106-554^APPENDIX G 
(26) Paragraph (2) of section 7603(b) is amended by striking 
the semicolon at the end of subparagraphs (A), (B), (C), (D), 
(E), (F), and (G) and inserting a comma. 
(27) Clause (ii) of section 7802(b)(2)(B) is amended by strik-
ing "; and" at the end and inserting ", and". 
(28) Paragraph (3) of section 7811(a) is amended by striking 
"taxpayer assistance order" and inserting "Taxpayer Assistance 
Order". 
(29) Paragraph (1) of section 7811(d) is amended by striking 
"Ombudsman's" and inserting "National Taxpayer Advocate's". 
(30) Paragraph (3) of section 7872(f) is amended by striking 
"foregoing" and inserting "forgoing". 
TITLE 
IV—TAX 
TREATMENT 
OF 
SECURITIES 
FUTURES 
CONTRACTS 
SEC. 
401, 
TAX 
TREATMENT 
OF 
SECURITIES 
FUTURES 
CONTRACTS. 
(a) IN GENERAL.—Subpart IV of subchapter P of chapter 1 
(relating to special rules for determining gains and losses) is amend-
ed by inserting after section 1234A the following new section: 
"SEC. 1234B. GAINS OR LOSSES FROM SECURITIES FUTURES CON-
TRACTS. 
"(a) TREATMENT OF GAIN OR LOSS.— 
"(1) IN GENERAL.—Gain or loss attributable to the sale 
or exchange of a securities futures contract shall be considered 
gain or loss from the sale or exchange of property which has 
the same character as the property to which the contract relates 
has in the hands of the taxpayer (or would have in the hands 
of the taxpayer if acquired by the taxpayer). 
"(2) NONAPPLICATION OF SUBSECTION.—This subsection 
shall not apply to— 
"(A) a contract which constitutes property described 
in paragraph (1) or (7) of section 1221(a), and 
"(B) any income derived in connection with a contract 
which, without regard to this subsection, is treated as 
other than gain from the sale or exchange of a capital 
asset. 
"(b) SHORT-TERM GAINS AND LOSSES.—Except as provided in 
the regulations under section 1092(b) or this section, if gain or 
loss on the sale or exchange of a securities futures contract to 
sell property is considered as gain or loss from the sale or exchange 
of a capital asset, such gain or loss shall be treated as short-
term capital gain or loss. 
"(c) SECURITIES FUTURES CONTRACT.—^For purposes of this sec-
tion, the term 'securities futures contract' means any security future 
(as defined in section 3(a)(55)(A) of the Securities Exchange Act 
of 1934, as in effect on the date of the enactment of this section). 
"(d) CONTRACTS NOT TREATED AS COMMODITY FUTURES CON-
TRACTS.—For purposes of this title, a securities futures contract 
shall not be treated as a commodity futures contract. 
"(e) REGULATIONS.—The Secretary shall prescribe such regula-
tions as may be appropriate to provide for the proper treatment 
of securities futures contracts under this title.". 
(b) TERMINATIONS, ETC.—Section 1234A is amended— 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-649 
(1) by inserting "(other than a securities futures contract, 
as defined in section 1234B)" after "right or obligation" in 
paragraph (1), 
(2) by striking "or" at the end of paragraph (1), 
(3) by adding "or" at the end of paragraph (2), and 
(4) by inserting sifter paragraph (2) the following new para-
graph: 
"(3) a securities futures contract (as so defined) which 
is a capital asset in the hands of the taxpayer,". 
(c) NONRECOGNITION UNDER SECTION 1032.—The second sen-
tence of section 1032(a) is amended by inserting ", or with respect 
to a securities futures contract (as defined in section 1234B)," 
after "an option". 
(d) TREATMENT UNDER WASH SALES RULES.—Section 1091 is 
amended by adding at the end the following new subsection: 
"(f) CASH SETTLEMENT.—^This section shall not fail to apply 
to a contract or option to acquire or sell stock or securities solely 
by reason of the fact that the contract or option settles in (or 
could be settled in) cash or property other than such stock or 
securities.". 
(e) TREATMENT UNDER STRADDLE RULES.—Clause (i) of section 
1092(d)(3)(B) is amended by striking "or" at the end of subclause 
(I), by redesignating subclause (II) as subclause (III), and by insert-
ing after subclause (I) the following new subclause: 
"(II) a securities futures contract (as defined 
in section 1234B) with respect to such stock or 
substantially identical stock or securities, or". 
(f) TREATMENT UNDER SHORT SALES RULES.—Paragraph (2) 
of section 1233(e) is amended by striking "and" at the end of 
subparagraph (B), by striking the period at the end of subparagraph 
(C) and inserting "; and", and by adding at the end the following: 
"(D) a securities futures contract (as defined in section 
1234B) to acquire substeintially identical property shall 
be treated as substantially identical property.". 
(g) TREATMENT UNDER SECTION 1256.— 
(1)(A) Subsection (b) of section 1256 is amended by striking 
"and" at the end of paragraph (3), by striking the period at 
the end of paragraph (4) and inserting ", and", and by adding 
at the end the following: 
"(5) any dealer securities futures contract. 
The term 'section 1256 contract' shall not include any securities 
futures contract or option on such a contract unless such contract 
Or option is a dealer securities futures contract.". 
(B) Subsection (g) of section 1256 is amended by adding 
at the end the following new paragraph: 
"(9) DEALER SECURITIES FUTURES CONTRACT.— 
"(A) IN GENERAL.—The term 'dealer securities futures 
contract' means, with respect to any dealer, any securities 
futures contract, and any option on such a contract, 
which— 
"(i) is entered into by such dealer (or, in the case 
of an option, is purchased or grsmted by such dealer) 
in the normal course of his activity of dealing in such 
contracts or options, as the case may be, and 
"(ii) is traded on a qualified board or exchange. 
"(B) DEALER.—^For purposes of subparagraph (A), a 
person shall be treated as a dealer in securities futures 
114 STAT. 2763A-650 
PUBLIC LAW 106-554—APPENDIX G 
contracts or options on such contracts if the Secretary 
determines that such person performs, with respect to such 
contracts or options, as the case may be, functions similar 
to the functions performed by persons described in para-
graph (8)(A). Such determination shall be made to the 
extent appropriate to carry out the purposes of this section. 
"(C) SECURITIES FUTURES CONTRACT.—The term 'securi-
ties futures contract' has the meaning given to such term 
by section 1234B.". 
(2) Paragraph (4) of section 1256(f) is amended— 
(A) by inserting ", or dealer securities futures con-
tracts," after "dealer equity options" in the text, and 
(B) by inserting "AND DEALER SECURITIES FUTURES CON-
TRACTS" after "DEALER EQUITY OPTIONS" in the heading. 
(3) Paragraph (6) of section 1256(g) is amended to read 
as follows: 
"(6) EQUITY OPTION.—^The term 'equity option' means any 
option— 
"(A) to buy or sell stock, or 
"(B) the value of which is determined directly or 
indirectly by reference to any stock or any narrow-based 
security index (as defined in section 3(a)(55) of the Securi-
ties Exchange Act of 1934, as in effect on the date of 
the enactment of this paragraph). 
The term 'equity option' includes such an option on a group 
of stocks only if such group meets the requirements for a 
narrow-based security index (as so defined).". 
(4) The Secretary of the Treasury or his delegate shall 
make the determinations under section 1256(g)(9)(B) of the 
Internal Revenue Code of 1986, as added by this Act, not 
later than July 1, 2001. 
(h) CONFORMING AMENDMENTS.— 
(1) Section 1223 is amended by redesignating paragraph 
(16) as paragraph (17) and by inserting after paragraph (15) 
the following new paragraph: 
"(16) If the security to which a securities futures contract 
(as defined in section 1234B) relates (other than a contract 
to which section 1256 applies) is acquired in satisfaction of 
such contract, in determining the period for which the taxpayer 
has held such security, there shall be included the period for 
which the taxpayer held such contract if such contract was 
a capital asset in the hands of the taxpayer.". 
(2) The table of sections for subpart IV of subchapter P 
of chapter 1 is amended by inserting after the item relating 
to section 1234A the following new item: 
"Sec. 1234B. Securities futvires contracts.". 
(i) DESIGNATION OF CONTRACT MARKETS.—Section 7701 
is 
amended by redesignating subsection (m) as subsection (n) and 
by inserting after subsection (1) the following new subsection: 
"(m) DESIGNATION OF CONTRACT MARKETS.—^Any designation 
by the Commodity Futures Trading Commission of a contract mar-
ket which could not have been made under the law in effect on 
the day before the date of the enactment of the Commodity Futures 
Modernization Act of 2000 shall apply for purposes of this title 
except to the extent provided in regulations prescribed by the Sec-
retary.". 
PUBLIC LAW 106-554—APPENDIX G 
114 STAT. 2763A-651 
(j) EFFECTIVE DATE.—^The amendments made by this section 
shall take effect on the date of the enactment of this Act. 
PUBLIC LAW 106-554—APPENDIX H 
114 STAT. 2763A-653 
APPENDIX H—H.R. 5663 
SECTION 1. NEW MARKETS VENTURE CAPITAL PROGRAM. 
(a) SHORT TITLE.—^This section may be cited as the "New Mar-
kets Venture Capital Program Act of 2000". 
(b) NEW MARKETS VENTURE CAPITAL PROGRAM.—Title III 
of 
the Small Business Investment Act of 1958 (15 U.S.C. 681 et 
seq.) is amended— 
(1) in the heading for the title, by striking "SMALL BUSI-
NESS INVESTMENT COMPANIES"and inserting "INVEST-
MENT DIVISION PROGRAMS"; 
(2) by inserting before the heading for section 301 the 
following: 
"PART A—SMALL BUSINESS INVESTMENT COMPANIES"; 
and 
(3) by adding at the end the following: 
"PART B—^NEW MARKETS VENTURE CAPITAL PROGRAM 
"SEC. 351. DEFINITIONS. 
"In this part, the following definitions apply: 
"(1) 
DEVELOPMENTAL 
VENTURE 
CAPITAL.—The 
term 
'developmental venture capital' means capital in the form of 
equity capital investments in businesses made with a primary 
objective of fostering economic development in low-income 
geographic areas. For the purposes of this paragraph, the term 
'equity capital' has the same meaning given such term in section 
303(g)(4). 
"(2) 
LOW-INCOME 
INDIVIDUAL.—^The term 
'low-income 
individual' means an individual whose income (adjusted for 
family size) does not exceed— 
"(A) for metropolitan areas, 80 percent of the area 
median income; and 
"(B) for nonmetropolitan areas, the greater o
f
— 
"(i) 80 percent of the area median income; or 
"(ii) 80 percent of the statewide nonmetropolitan 
area median income. 
"(3) LOW-INCOME GEOGRAPHIC AREA.—the term 'low-income 
geographic area' means— 
"(A) any population census tract (or in the case of 
an area that is not tracted for population census tracts, 
the equivalent county division, as defined by the Bureau 
of the Census of the Department of Commerce for purposes 
of defining poverty areas), if— 
114 STAT. 2763A-654 
PUBLIC LAW 106-554—APPENDIX H 
"(i) the poverty rate for that census tract is not 
less than 20 percent; 
"(ii) in the case of a tract— 
"(I) that is located within a metropolitan area, 
50 percent or more of the households in that census 
tract have an income equal to less than 60 percent 
of the area median gross income; or 
"(II) that is not located within a metropolitan 
area, the median household income for such tract 
does not exceed 80 percent of the statewide median 
household income; or 
"(iii) as determined by the Administrator based 
on objective criteria, a substantial population of low-
income individuals reside, an inadequate access to 
investment capital exists, or other indications of eco-
nomic distress exist in that census tract; or 
"(B) any area located within— 
"(i) a HUBZone (as defined in section 3(p) of the 
Small Business Act and the implementing regulations 
issued under that section); 
"(ii) an urban empowerment zone or urban enter-
prise community (as designated by the Secretary of 
Housing and Urban Development); or 
"(iii) a rural empowerment zone or rural enterprise 
community (as designated by the Secretary of Agri-
culture). 
"(4) NEW MARKETS VENTURE CAPITAL COMPANY.—The term 
'New Markets Venture Capital company' means a company 
that— 
"(A) has been granted final approval by the Adminis-
trator under section 354(e); and 
"(B) has entered into a participation agreement with 
the Administrator. 
"(5) 
OPERATIONAL ASSISTANCE.—The term 'operational 
assistance' means management, marketing, and other technical 
assistance that assists a small business concern with business 
development. 
"(6) PARTICIPATION AGREEMENT.—The term 'participation 
agreement' means an agreement, between the Administrator 
and a company granted final approval under section 354(e), 
that— 
"(A) details the company's operating plan and invest-
ment criteria; and 
"(B) requires the company to make investments in 
smaller enterprises at least 80 percent of which are located 
in low-income geographic areas. 
"(7) SPECL^IZED SMALL BUSINESS INVESTMENT COMPANY.— 
The term 'specialized small business investment company* 
means any small business investment company that— 
"(A) invests solely in small business concerns that 
contribute to a well-balanced national economy by facilitat-
ing ownership in such concerns by persons whose participa-
tion in the free enterprise system is hampered because 
of social or economic disadvantages; 
"(B) is organized or chartered under State business 
or nonprofit corporations statutes, or formed as a limited 
partnership; and 
PUBLIC LAW 106-554—APPENDIX H 
114 STAT. 2763A-655 
"(C) was licensed under section 301(d), as in effect 
before September 30, 1996. 
"(8) STATE.—The term 'State' means such of the several 
States, the District of Columbia, the Commonwealth of Puerto 
Rico, the Virgin Islands, Guam, American Samoa, the Common-
wealth of the Northern Mariana Islands, and any other 
commonwealth, territory, or possession of the United States. 
"SEC. 352. PURPOSES. 
"The purposes of the New Markets Venture Capital Program 
established under this part are— 
"(1) to promote economic development and the creation 
of wealth and job opportunities in low-income geographic areas 
and among individuals living in such areas by encouraging 
developmental venture capital investments in smaller enter-
prises primarily located in such areas; and 
"(2) to establish a developmental venture capital program, 
with the mission of addressing the unmet equity investment 
needs of small enterprises located in low-income geographic 
areas, to be administered by the Administrator— 
"(A) to enter into participation agreements with New 
Markets Venture Capital companies; 
"(B) to guarantee debentures of New Markets Venture 
Capital companies to enable each such company to make 
developmental venture capital investments in smaller 
enterprises in low-income geographic areas; and 
"(C) to make grants to New Markets Venture Capital 
companies, and to other entities, for the purpose of provid-
ing operational assistance to smaller enterprises financed, 
or expected to be financed, by such companies. 
"SEC. 353. ESTABLISHMENT. 
"In accordance with this part, the Administrator shall establish 
a New Markets Venture Capital Program, under which the Adminis-
trator may— 
"(1) enter into participation agreements with companies 
granted final approval under section 354(e) for the purposes 
set forth in section 352; 
^ 
"(2) guarantee the debentures issued by New Markets Ven-
ture Capital companies as provided in section 355; and 
"(3) make grants to New Markets Venture Capital compa-
nies, and to other entities, under section 358. 
"SEC. 354. SELECTION OF NEW MARKETS VENTURE CAPITAL COMPA-
NIES. 
"(a) ELIGIBILITY.—^A company shall be eligible to apply to 
participate, as a New Markets Venture Capital company, in the 
program established under this part if— 
"(1) the company is a newly formed for-profit entity or 
a newly formed for-profit subsidiary of an existing entity; 
"(2) the company has a management team with experience 
in community development financing or relevant venture capital 
financing; and 
"(3) the company has a primary objective of economic 
development of low-income geographic areas. 
"(b) APPLICATION.—To participate, as a New Markets Venture 
Capital company, in the program established under this part a 
114 STAT. 2763A-656 
PUBLIC LAW 106-554—APPENDIX H 
company meeting the eligibility requirements set forth in subsection 
(a) shall submit an application to the Administrator that includes— 
"(1) a business plan describing how the company intends 
to make successful developmental venture capital investments 
in identified low-income geographic areas; 
"(2) information regarding the community development 
finance or relevant venture capital qualifications and general 
reputation of the company's management; 
"(3) a description of how the company intends to work 
with community organizations and to seek to address the unmet 
capital needs of the communities served; 
"(4) a proposal describing how the company intends to 
use the grant funds provided under this part to provide oper-
ational assistance to smaller enterprises financed by the com-
pany, including information regarding whether the company 
intends to use licensed professionals, when necessary, on the 
company's stafi"or from an outside entity; 
"(5) with respect to binding commitments to be made to 
the company under this part, an estimate of the ratio of cash 
to in-kind contributions; 
"(6) a description of the criteria to be used to evaluate 
whether and to what extent the company meets the objectives 
of the program established under this part; 
"(7) information regarding the management and financial 
strength of any parent firm, affiUated firm, or any other firm 
essential to the success of the company's business plan; and 
"(8) such other information as the Administrator may 
require. 
"(c) CONDITIONAL APPROVAL.— 
"(1) IN GENERAL.—From among companies submitting 
applications under subsection (b), the Administrator shall, in 
accordance with this subsection, conditionally approval compa-
nies to participate in the New Markets Venture Capital Pro-
gram. 
"(2) SELECTION CRITERIA.—In selecting companies under 
paragraph (1), the Administrator shall consider the following: 
"(A) The likelihood that the company will meet the 
goal of its business plan. 
"(B) The experience and background of the company's 
management team. 
"(C) The need for developmental venture capital invest-
ments in the geographic areas in which the company 
intends to invest. 
"(D) The extent to which the company will concentrate 
its activities on serving the geographic areas in which 
it intends to invest. 
"(E) The likelihood that the company will be able to 
satisfy the conditions under subsection (d). 
"(F) The extent to which the activities proposed by 
the company will expand economic opportunities in the 
geographic areas in which the company intends to invest. 
"(G) The strength of the company's proposal to provide 
operational assistance under this part as the proposal 
relates to the ability of the applicant to meet applicable 
cash requirements and properly utilize in-kind contribu-
tions, including the use of resources for the services of 
licensed professionals, when necessary, whether provided 
PUBLIC LAW 106-554—APPENDIX H 
114 STAT. 2763A-657 
by persons on the company's staff or by persons outside 
of the company. 
"(H) Any other factors deemed appropriate by the 
Administrator. 
"(3) NATIONWIDE DISTRIBUTION.—The Administrator shall 
select companies under paragraph (1) in such a way that pro-
motes investment nationwide. 
"(d) REQUIREMENTS TO BE MET FOR FINAL APPROVAL.—The 
Administrator shall grant each conditionally approved company 
a period of time, not to exceed 2 years, to satisfy the following 
requirements: 
"(1) CAPITAL REQUIREMENT.—Each conditionally approved 
company shall raise not less than $5,000,000 of private capital 
or binding capital commitments from one or more investors 
(other than agencies or departments of the Federal Govern-
ment) who met criteria established by the Administrator. 
"(2) NONADMINISTRATION RESOURCES FOR OPERATIONAL 
ASSISTANCE.— 
"(A) IN GENERAL.—In order to provide operational 
assistance to smaller enterprises expected to be financed 
by the company, each conditionally approved company— 
"(i) shall have binding commitments (for contribu-
tion in cash or in kind)— 
"(I) from any sources other than the Small 
Business Administration that meet criteria estab-
lished by the Administrator; 
"(II) payable or available over a multiyear 
period acceptable to the Administrator (not to 
exceed 10 years); and 
"(III) in an amount not less than 30 percent 
of the total amount of capital and commitments 
raised under paragraph (1); 
"(ii) shall have purchased an annuity— 
- 
"(I) from an insurance company acceptable to 
the Administrator; 
"(II) using funds (other thgin the funds raised 
under paragraph (1)), from any source other than 
the Administrator; and 
"(III) that yields cash payments over a 
multiyear period acceptable to the Administrator 
(not to exceed 10 years) in an amount not less 
than 30 percent of the total amount of capital 
and commitments raised under paragraph (1); or 
"(iii) shall have binding commitments (for contribu-
tions in cash or in kind) of the type described in 
clause (i) and shall have purchased an annuity of the 
type described in clause (ii), which in the aggregate 
make available, over a multiyear period acceptable 
to the Administrator (not to exceed 10 years), an 
amount not less than 30 percent of the total amount 
of capital and commitments raised under paragraph 
(1). 
"(B) EXCEPTION.—The Administrator 
may, in 
the 
discretion of the Administrator and based upon a showing 
of special circumstances and good cause, consider an 
applic£int to have satisfied the requirements of subpara-
graph (A) if the applicant has— 
114 STAT. 2763A-658 
PUBLIC LAW 106-554—APPENDIX H 
"(i) a viable plan that reasonably projects the 
capacity of the applicant to raise the amount (in cash 
or in-kind) required under subparagraph (A); and 
"(ii) binding commitments in an amount equal to 
not less than 20 percent of the total amount required 
under paragraph (A). 
"(C) LIMITATION.—In order to comply with the require-
ments of subparagraphs (A) and (B), the total amount 
of a company's in-kind contributions may not exceed 50 
percent of the company's total contributions. 
"(e) FINAL APPROVAL; DESIGNATION.—The Administrator shall, 
with respect to each applicant conditionally approved to operate 
as a New Markets Venture Capital company under subsection (c), 
either— 
"(1) grant final approval to the applicant to operate as 
a New Markets Venture Capital company under this part and 
designate the applicant as such a company, if the applicant— 
"(A) satisfies the requirements of subsection (d) on 
or before the expiration of the time period described in 
that subsection; and 
"(B) enters into a participation agreement with the 
Administrator; or 
"(2) if the applicant fails to satisfy the requirements of 
subsection (d) on or before the expiration of the time period 
described in that subsection, revoke the conditional approval 
granted under that subsection. 
"SEC. 
355. 
DEBENTURES. 
"(a) IN GENERAL.—The Administrator may guarantee the timely 
pajmnent of principal and interest, as scheduled, on debentures 
issued by any New Markets Venture Capital company. 
"(b) TERMS AND CONDITIONS.—The Administrator may make 
guarantees under this section on such terms and conditions as 
it deems appropriate, except that the term of any debenture guaran-
teed under this section shall not exceed 15 years. 
"(c) FULL FAITH AND CREDIT OF THE UNITED STATES.—The 
full faith and credit of the United States is pledged to pay all 
amounts that may be required to be paid under any guarantee 
under this part. 
"(d) MAXIMUM GUARANTEE.— 
"(1) IN GENERAL.—^Under this section, the Administrator 
may guarantee the debentures issued by a New Markets Ven-
ture Capital company only to be extent that the total face 
amount of outstanding guaranteed debentures of such company 
does not exceed 150 percent of the private capital of the com-
pany, as determined by the Administrator. 
"(2) TREATMENT OF CERTAIN FEDERAL FUNDS.—For the pur-
poses of paragraph (1), private capital shall include capital 
that is considered to be Federal funds, if such capital is contrib-
uted by an investor other than an agency or department of 
the Federal Government. 
"SEC. 356. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES. 
"(a) ISSUANCE.—The Administrator may issue trust certificates 
representing ownership of all or a fractional part of debentures 
issued by a New Markets Venture Capital company and guaranteed 
by the Administrator under this part, if such certificates are based 
PUBLIC LAW 106-554—APPENDIX H 
114 STAT. 2763A-659 
on and backed by a trust or pool approved by the Administrator 
and composed solely of guaranteed debentures. 
"(b) GUARANTEE.— 
"(1) IN GENERAL.—The Administrator may, under such 
terms and conditions as it deems appropriate, guarantee the 
timely pajnnent of the principal of and interest on trust certifi-
cates issued by the Administrator or its agents for purposes 
of this section. 
"(2) LIMITATION.—Each guarantee under this subsection 
shall be limited to the extent of principal and interest on 
the guaranteed debentures that compose the trust or pool. 
"(3) PREPAYMENT OR DEFAULT.—In the event that a deben-
ture in a trust or pool is prepaid, or in the event of default 
of such a debenture, the guarantee of timely pajmtient of prin-
cipal and interest on the trust certificates shall be reduced 
in proportion to the amount of principal and interest such 
prepaid debenture represents in the trust or pool. Interest 
on prepaid or defaulted debentures shall accrue and be guaran-
teed by the Administrator only through the date of payment 
of the guarantee. At any time during its term, a trust certificate 
may be called for redemption due to prepa)niient or default 
of all debentures. 
"(c) FULL FAITH AND CREDIT OF THE UNITED STATES.—^The 
full faith and credit of the United States is pledged to pay all 
amounts that may be required to be paid under any guarantee 
of a trust certificate issued by the Administrator or its agents 
under this section. 
"(d) FEES.—^The Administrator shall not collect a fee for any 
guarantee of a trust certificate under this section, but any agent 
of the Administrator may collect a fee approved by the Adminis-
trator for the functions described in subsection (f)(2). 
"(e) SUBROGATION AND OWNERSHIP RIGHTS.— 
"(1) SUBROGATION.—In the event the Administrator pays 
a claim under a guarantee issued under this section, it shall 
be subrogated fully to the rights satisfied by such payment. 
"(2) OWNERSHIP RIGHTS.—No Federal, State, or local law 
shall preclude or limit the exercise by the Administrator of 
its ownership rights in the debentures residing in a trust or 
pool against which trust certificates are issued under this sec-
tion. 
"(f) MANAGEMENT AND ADMINISTRATION.— 
"(1) REGISTRATION.—^The Administrator may provide for 
a central registration of all trust certificates issued under this 
section. 
"(2) CONTRACTING OF FUNCTIONS.— 
"(A) IN GENERAL.—^The Administrator may contract 
with an agent or agents to carry out on behalf of the 
Administrator the pooling and the central registration func-
tions provided for in this section including, notwithstanding 
any other provision of law— 
"(i) maintenance, on behalf of and under the direc-
tion of the Administrator, of such commercial bank 
accounts or investments in obligations of the United 
States as may be necessary to facilitate the creation 
of trusts or pools backed by debentures guaranteed 
under this part; and 
114 STAT. 2763A-660 
PUBLIC LAW 106-554—APPENDIX H 
"(ii) the issuance of trust certificates to facilitate 
the creation of such trusts or pools. 
"(B) FIDELITY BOND OR INSURANCE REQUIREMENT.—^Any 
agent performing functions on behalf of the Administrator 
under this paragraph shall provide a fidelity bond or insur-
ance in such amounts as the Administrator determines 
to be necessary to fully protect the interests of the United 
States. 
"(3) REGULATION OF BROKERS AND DEALERS.—^The Adminis-
trator may regulate brokers and dealers in trust certificates 
issued under this section. 
"(4) ELECTRONIC REGISTRATION.—Nothing in this subsection 
may be construed to prohibit the use of a book-entry or other 
electronic form of registration for trust certificates issued under 
this section. 
"SEC. 357. FEES. 
"Except as provided in section 356(d), the Administrator may 
charge such fees as it deems appropriate with respect to any guaran-
tee or grant issued under this part. 
"SEC. 358. OPERATIONAL ASSISTANCE GRANTS. 
"(a) IN GENERAL.— 
"(1) AUTHORITY.—In accordance with this section, the 
Administrator may make grants to New Markets Venture Cap-
ital companies and to other entities, as authorized by this 
part, to provide operational assistance to smaller enterprises 
financed, or expected to be financed, by such companies or 
other entities. 
"(2) TERMS.—Grants made under this subsection shall be 
made over a multiyear period not to exceed 10 years, under 
such other terms as the Administrator may require. 
"(3) GRANTS TO SPECIALIZED SMALL BUSINESS INVESTMENT 
COMPANIES.— 
"(A) AUTHORITY.—In accordance with this section, the 
Administrator may make grants to specialized small busi-
ness investment companies to provide operational assist-
ance to smaller enterprises financed, or expected to be 
financed, by such companies after the effective date of 
the New Markets Venture Capital Program Act of 2000. 
"(B) USE OF FUNDS.—The proceeds of a grant made 
under this paragraph may be used by the company receiv-
ing such grant only to provide operational assistance in 
connection with an equity investment (made with capital 
raised after the effective date of the New Markets Venture 
Capital Program Act of 2000) in a business located in 
a low-income geographic area. 
"(C) SUBMISSION OF PLANS.—^A specialized small busi-
ness investment company shall be eligible for a grant under 
this section only if the company submits to the Adminis-
trator, in such form and manner as the Administrator 
may require, a plan for use of the grant. 
"(4) GRANT AMOUNT.— 
"(A) NEW MARKETS VENTURE CAPITAL COMPANIES.—The 
amount of a grant made under this subsection to a New 
Markets Venture Capital company shall be equal to the 
resources (in cash or in kind) raised by the company under 
section 354(d)(2). 
PUBLIC LAW 106-554—APPENDIX H 
114 STAT. 2763A-661 
"(B) OTHER ENTITIES.—The amount of a grant made 
under this subsection to any entity other than a New 
Markets Venture Capital company shall be equal to the 
resources (in cash or in kind) raised by the entity in accord-
ance with the requirements applicable to New Market Ven-
ture Capital companies set forth in section 354(d)(2). 
"(5) PRO RATA REDUCTIONS.—If the amount made available 
to carry out this section is insufficient for the Administrator 
to provide grants in the amounts provided for in paragraph 
(4), the Administrator shall make pro rata reductions in the 
amounts otherwise payable to each company and entity under 
such paragraph. 
"(b) SUPPLEMENTAL GRANTS.— 
"(1) IN GENERAL.—The Administrator may make supple-
mental grants to New Markets Venture Capital companies 
and to other entities, as authorized by this part under such 
terms as the Administrator may require, to provide additional 
operational assistance to smaller enterprises financed, or 
expected to be financed, by the companies. 
"(2) MATCHING REQUIREMENT.—The Administrator may 
require, as a condition of any supplemental grant made under 
this subsection, that the company or entity receiving the grant 
provide from resources (in a cash or in kind), other then those 
provided by the Administrator, a matching contribution equal 
to the amount of the supplemental grant. 
"(c) LIMITATION.—None of the assistance made available under 
this section may be used for any overhead or general and adminis-
trative expense of a New Markets Venture Capital company or 
a specialized small business investment company. 
"SEC. 359. BANK PARTICIPATION. 
"(a) IN GENERAL.—Except as provided in subsection (b), any 
national bank, any member bank of the Federal Reserve System, 
and (to the extent permitted under applicable State law) any 
insured bank that is not a member of such system, may invest 
in any New Markets Venture Capital company, or in any entity 
established to invest solely in New Markets Venture Capital compa-
nies. 
"(b) LIMITATION.—No bank described in subsection (a) may 
make investments described in such subsection that are greater 
than 5 percent of the capital and surplus of the bank. 
"SEC. 360. FEDERAL FINANCING BANK 
"Section 318 shall not apply to any debenture issued by a 
New Markets Venture Capital company under this part. 
"SEC. 361. REPORTING REQUIREMENT. 
"Each New Markets Venture Capital company that participates 
in the program established under this part shall provide to the 
Administrator such information as the Administrator may require, 
including— 
"(1) information related to the measurement criteria that 
the company proposed in its program application; and 
"(2) in each case in which the company under this part 
makes an investment in, or a loan or grant to, a business 
that is not located in a low-income geographic area, a report 
on the number and percentage of employees of the business 
who reside in such areas. 
114 STAT. 2763A-662 
PUBLIC LAW 106-554—APPENDIX H 
"SEC. 362. EXAMINATIONS. 
"(a) IN GENERAL.—Each New Markets Venture Capital company 
that participates in the program established under this part shall 
be subject to examinations made at the direction of the Investment 
Division of the Small Business Administration in accordance with 
this section. 
"(b) ASSISTANCE OF PRIVATE SECTOR ENTITIES.—Examinations 
under this section may be conducted with the assistance of a private 
sector entity that has both the qualifications and the expertise 
necessary to conduct such examinations. 
"(c) COSTS.— 
"(1) ASSESSMENT.— 
"(A) IN GENERAL.—The Administrator may assess the 
cost of examinations under this section, including com-
pensation of the examiners, against the company examined. 
"(B) PAYMENT.—^Any company against which 
the 
Administrator assesses costs under this paragraph shall 
pay such costs. 
"(d) DEPOSIT OF FUNDS.—Funds collected under this section 
shall be deposited in the account for salaries and expenses of 
the Small Business Administration. 
"SEC. 363. INJUNCTIONS AND OTHER ORDERS. 
"(a) IN GENERAL.—^Whenever, in the judgment of the Adminis-
trator, a New Markets Venture Capital company or any other 
person has engaged or is about to engage in any acts or practices 
which constitute or will constitute a violation of any provision 
of this Act, or of any rule or regulation under this Act, or of 
any order issued under this Act, the Administrator may make 
application to the proper district court of the United States or 
a United States court of any place subject to the jurisdiction of 
the United States for an order enjoining such acts or practices, 
or for an order enforcing compliance with such provision, rule, 
regulation, or order, and such courts shall have jurisdiction of 
such actions and, upon a showing by the Administrator that such 
New Markets Venture Capital company or other person has engaged 
or is about to engage in any such acts or practices, a permanent 
or temporary injunction, restraining order, or other order, shall 
be granted without bond. 
"(b) JURISDICTION.—In any proceeding under subsection (a), 
the court as a court of equity may, to such extent as it deems 
necessary, take exclusive jurisdiction of the New Market Venture 
Capital company and the assets thereof, wherever located, and 
the court shall have jurisdiction in any such proceeding to appoint 
a trustee or receiver to hold or administer under the direction 
of the court the assets so possessed. 
"(c) ADMINISTRATOR AS TRUSTEE OR RECEIVER.— 
"(1) AUTHORITY.—The Administrator may act as trustee 
or receiver of a New Markets Venture Capital company. 
"(2) Appointment.—Upon request of the Administrator, the 
court may appoint the Administrator to act as a trustee or 
receiver of a New Markets Venture Capital company unless 
the court deems such appointment inequitable or otherwise 
inappropriate by reason of the special circumstances involved. 
PUBLIC LAW 106-554—APPENDIX H 
114 STAT. 2763A-663 
"SEC. 364. ADDITIONAL PENALTIES FOR NONCOMPLIANCE. 
"(a) IN GENERAL.—^With respect to any New Markets Venture 
Capital company that violates or fails to comply with any of the 
provisions of this Act, of any regulation issued under this Act, 
or of any participation agreement entered into under this Act, 
the Administrator may in accordance with this section— 
"(1) void the participation agreement between the Adminis-
trator and the company; and 
"(2) cause the company to forfeit all of the rights and 
privileges derived by the company from this Act. 
"(b) ADJUDICATION OF NONCOMPLIANCE.— 
"(1) IN GENERAL.—Before the Administrator may cause a 
New Markets Venture Capital company to forfeit rights or 
privileges under subsection (a), a court of the United States 
of competent jurisdiction must find that the company committed 
a violation, or failed to comply, in a cause of action brought 
for that purpose in the district, territory, or other place subject 
to the jurisdiction of the United States, in which the principal 
office of the company is located. 
"(2) PARTIES AUTHORIZED TO FILE CAUSES OF ACTION.— 
Each cause of action brought by the United States under this 
subsection shall be brought by the Administrator or by the 
Attorney General. 
"SEC. 365. UNLAWFUL ACTS AND OMISSIONS; BREACH OF FIDUCIARY 
DUTY. 
"(a) PARTIES DEEMED TO COMMIT A VIOLATION.—^Whenever any 
New Markets Venture Capital company violates any provision of 
this Act, of a regulation issued under this Act, or of a participation 
agreement entered into under this Act, by reason of its failure 
to comply with its terms or by reason of its engaging in any 
act or practice that constitutes or will constitute a violation thereof, 
such violation shall also be deemed to be a violation and an unlawful 
act committed by any person who, directly or indirectly, authorizes, 
orders, participates in, causes, brings about, counsels, aids, or abets 
in the commission of any acts, practices, or transactions that con-
stitute or will constitute, in whole or in part, such violation. 
"(b) FiDUCL^Y DUTIES.—It shall be unlawful for any officer, 
director, employee, agent, or other participant in the management 
or conduct of the affairs of a New Markets Venture Capital company 
to engage in any act or practice, or to omit any act or practice, 
in breach of the person's fiduciary duty as such officer, director, 
employee, agent, or participant if, as a result thereof, the company 
suffers or is in imminent danger of suffering fingmcial loss or 
other damage. 
"(c) UNLAWFUL ACTS.—Except with the written consent of the 
Administrator, it shall be unlawful— 
"(1) for any person to take office as an officer, director, 
or employee of any New Markets Venture Capital company, 
or to become an agent or participant in the conduct of the 
affairs or management of such a company, if the person— 
"(A) has been convicted of a felony, or any other crimi-
nal offense involving dishonesty or breach of trust; or 
"(B) has been found civilly liable in damages, or has 
been permanently or temporarily enjoined by an order, 
judgment, or decree of a court of competent jurisdiction, 
114 STAT. 2763A-664 
PUBLIC LAW 106-554—APPENDIX H 
by reason of any act or practice involving fraud, or breach 
of trust; and 
"(2) for any person continue to serve in any of the capacities 
described in paragraph (1), if— 
"(A) the person is convicted of a felony, or any other 
criminal offense involving dishonesty or breach of trust; 
or 
"(B) the person is found civilly liable in damages, or 
is permanently or temporarily enjoined by an order, judg-
ment, or decree of a court of competent jurisdiction, by 
reason of any act or practice involving fraud or breach 
of trust. 
•^EC. 366. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS. 
"Using the procedures for removing or suspending a director 
or an officer of a licensee set forth in section 313 (to the extent 
such procedures are not inconsistent with the requirements of this 
part), the Administrator may remove or suspend any director or 
officer of any New Markets Venture Capital company. 
"SEC. 367. REGULATIONS. 
"The Administrator may issue such regulations as it deems 
necessary to carry out the provisions of this part in accordance 
with its purposes. 
"SEC. 368. AUTHORIZATIONS OF APPROPRIATIONS. 
"(a) IN GENERAL.—There are authorized to be appropriated 
for fiscal years 2001 through 2006, to remain available until 
expended, the following sums: 
"(1) Such subsidy budget authority as may be necessary 
to guarantee $150,000,000 of debentures under this part. 
"(2) $30,000,000 to make grants under this part. 
"(b) FUNDS COLLECTED FOR EXAMINATIONS.—Funds deposited 
under section 362(c)(2) are authorized to be appropriated only for 
the costs of examinations under section 362 and for the costs 
of other oversight activities with respect to the program established 
under this part.". 
(c) CONFORMING AMENDMENT.—Section 20(e)(1)(C) of the Small 
Business Act (15 U.S.C. 631 note) is amended by inserting 'part 
A of before "title III". 
(d) CALCULATION OF MAXIMUM AMOUNT OF S B I C LEVERAGE.— 
(1) MAXIMUM LEVERAGE.—Section 303(b)(2) of the Small 
Business Investment Act of 1958 (15 U.S.C. 683(b)(2)) is amend-
ed to read as follows: 
"(2) MAXIMUM LEVERAGE.— 
"(A) IN GENERAL.—^After March 31, 1993, the maximum 
amount of outstanding leverage made available to a com-
pany licensed under section 301(c) of this Act shall be 
determined by the amount of such company's private 
capital— 
"(i) if the company has private capital of not more 
than $15,000,000, the total amount of leverage shall 
not exceed 300 percent of private capital; 
"(ii) if the company has private capital of more 
than $15,000,000 but not more than $30,000,000, the 
total amount of leverage shall not exceed $45,000,000 
plus 200 percent of the amount of private capital over 
$15,000,000; and 
PUBLIC LAW 106-554—APPENDIX H 
114 STAT. 2763A-665 
"(iii) if the company has private capital of more 
than $30,000,000, the total amount of leverage shall 
not exceed $75,000,000 plus 100 percent of the amount 
of private capital over $30,000,000 but not to exceed 
an additional $15,000,000. 
"(B) ADJUSTMENTS.— 
"(i) IN GENERAL.—^The dollar amounts in clauses 
(i), (ii), and (iii) of subparagraph (A) shall be adjusted 
annually to reflect increases in the Consumer Price 
Index established by the Bureau of Labor Statistics 
of the Department of Labor. 
"(ii) 
INITIAL ADJUSTMENTS.—The initial adjust-
ments made under this subparagraph after the date 
of the enactment of the Small Business Reauthoriza-
tion Act of 1937 shall reflect only increases from March 
31, 1993. 
"(C) 
INVESTMENTS 
IN 
LOW-INCOME 
GEOGRAPHIC 
AREAS.—In calculating the outstanding leverage of a com-
pany for the purposes of subparagraph (A), the Adminis-
trator shall not include the amount of the cost basis of 
any equity investment made by the company in a smaller 
enterprise located in a low-income geographic area (as 
defined in section 351), to the extent that the total of 
such amounts does not exceed 50 percent of the company's 
private capital.". 
(2) MAXIMUM AGGREGATE LEVERAGE.—Section 303(b)(4) of 
the Small Business Investment Act of 1958 (15 U.S.C. 683(b)(4)) 
is amended by adding at the end the following new subpara-
graph: 
"(D) 
INVESTMENTS 
IN 
LOW-INCOME 
GEOGRAPHIC 
AREAS.—In calculating the aggregate outstanding leverage 
of a company for the purposes of subparagraph (A), the 
Administrator shall not include the amount of the cost 
basis of any equity investment made by the company in 
a smaller enterprise located in a low-income geographic 
area (as defined in section 351), to the extent that the 
total of such amounts does not exceed 50 percent of the 
company's private capital.". 
(e) BANKRUPTCY EXEMPTION FOR NEW MARKETS VENTURE CAP-
ITAL COMPANIES.—Section 109(b)(2) of title 11, United States Code, 
is amended by inserting "a New Markets Venture Capital company 
as defined in section 351 of the Small Business Investment Act 
of 1958," after "homestead association,". 
(f) FEDERAL SAVINGS ASSOCIATIONS.—Section 5(c)(4) of the 
Home Owners' Loan Act (12 U.S.C. 1464(c)(4)) is amended by adding 
at the end the following: 
"(F) NEW MARKETS VENTURE CAPITAL COMPANIES.—^A 
Federal savings association may invest in stock, obligations, 
or other securities of any New Markets Venture Capital 
company as defined in section 351 of the Small Business 
Investment Act of 1958, except that a Federal savings 
association may not make any investment under this 
subparagraph if its aggregate outstanding investment 
under this subparagraph would exceed 5 percent of the 
capital and surplus of such savings association.". 
79-194 O - 00 - 23 : QL 3 Part 5 
114 STAT. 2763A-666 
PUBLIC LAW 106-554—APPENDIX H 
SEC. 2. BUSINESSLINC GRANTS AND COOPERATIVE AGREEMENTS. 
Section 8 of the Small Business Act (15 U.S.C. 637) is amended 
by adding at the end the following: 
"(n) BUSINESS GRANTS AND COOPERATIVE AGREEMENTS.— 
"(1) IN GENERAL.—In accordance with this subsection, the 
Administrator may make grants to and enter into cooperative 
agreements with any coalition of private entities, public entities, 
or any combination of private and public entities— 
"(A) to 
expand 
business-to-business 
relationships 
between large and small businesses; and 
"(B) to provide businesses, directly or indirectly, with 
online information and a database of companies that are 
interested in mentor-protege programs or community-
based, statewide, or local business development programs. 
"(2) MATCHING REQUIREMENT.—Subject to subparagraph 
(B), the Administrator may make a grant to a coalition under 
paragraph (1) only if the coalition provides for activities 
described in paragraph (1)(A) or (1)(B) an amount, either in 
kind or in cash, equal to the grant amount. 
"(3) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated to carry out this subsection $6,600,000, 
to remain available until expended, for each of fiscal years 
2001 through 2006.". 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-667 
APPENDIX I—H.R. 5667 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the "Small Business 
Reauthorization Act of 2000". 
(b) TABLE OF CONTENTS.—The table of contents for this Act 
is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I ^ M A L L BUSINESS INNOVATION RESEARCH PROGRAM 
Sec. 101. Short title. 
Sec. 102. Findings. 
Sec. 103. Extension of SBIR program. 
Sec. 104. Annual report. 
Sec. 105. Third phase assistance. 
Sec. 106. Report on programs for annual performance plan. 
; 
Sec. 107. Output and outcome data. 
Sec. 108. National Research Council reports. 
Sec. 109. Federal agency expenditures for the SBIR program. 
Sec. 110. Policy directive modifications. 
Sec. 111. Federal and State technology partnership program. 
Sec. 112. Mentoring networks. 
Sec. 113. Simplified reporting requirements. 
Sec. 114. Rural outreach program extension. 
TITLE II—BUSINESS LOAN PROGRAMS 
Sec. 20L Short title. 
-
Sec. 202. Levels of participation. 
Sec. 203. Loan amounts. 
Sec. 204. Interest on defaulted loans. 
Sec. 205, Prepayment of loans. 
Sec. 206. Guarantee fees. 
Sec. 207. Lease terms. 
Sec. 208. Appraisals for loans secured by real property. 
Sec. 209. Sale of guaranteed loans made for export purposes. 
Sec. 210. Microloan program. 
TITLE III—CERTIFIED DEVELOPMENT COMPANY PROGRAM 
Sec. 301. Short title. 
Sec. 302. Women-owned businesses. 
Sec. 303. Maximum debenture size. 
Sec. 304. Fees. 
Sec. 305. Premier certified lenders program. 
Sec. 306. Sale of certain defaulted loans. 
Sec. 307. Loan liquidation. 
TITLE IV—CORRECTIONS TO THE SMALL BUSINESS INVESTMENT ACT OF 
1958 
Sec. 401. Short title. 
Sec. 402. Definitions. 
Sec. 403. Investment in small business investment companies. 
Sec. 404. Subsidy fees. 
Sec. 405. Distributions. 
Sec. 406. Conforming amendment. 
TITLE V—REAUTHORIZATION OF SMALL BUSINESS PROGRAMS 
Sec. 501. Short title. 
114 STAT. 2763A-668 
PUBLIC LAW 106-554—APPENDIX I 
Sec. 502. Reauthorization of small business programs. 
Sec. 503. Additional reauthorizations. 
Sec. 504. Cosponsorship. 
TITLE VI—HUBZONE PROGRAM 
Subtitle A—HUBZones in Native America 
Sec. 601. Short title. 
Sec. 602. HUBZone small business concern. 
Sec. 603. Qualified HUBZone small business concern. 
Sec. 604. (Jther definitions. 
Subtitle B—Other HUBZone Provisions 
Sec. 611. Definitions. 
Sec. 612. Elimble contracts. 
Sec. 613. HUBZone redesignated areas. 
Sec. 614. Community development. 
Sec. 615. Reference corrections. 
TITLE VII—NATIONAL WOMEN'S BUSINESS COUNCIL REAUTHORIZATION 
Sec. 701. Short title. 
Sec. 702. Membership of the Council. 
Sec. 703. Repeal of procm-ement project. 
Sec. 704. Studies and other research. 
Sec. 705. Authorization of appropriations. 
TITLE VIII—MISCELLANEOUS PROVISIONS 
Sec. 801. Loan application processing. 
Sec. 802. Apphcation of ownership requirements. 
Sec. 803. Subcontracting preference for veterans. 
Sec. 804. Small Business Development Center Program fiinding. 
Sec. 805. Surety bonds. 
Sec. 806. Size standards. 
Sec. 807. Native Hawaiian organizations under section 8(a). 
Sec. 808. National Veterans Business Development Corporation correction. 
Sec. 809. Private sector resources for SCORE. 
Sec. 810. Contract data collection. 
Sec. 811. Procurement program for women-owned small business concerns. 
TITLE I—SMALL BUSINESS INNOVATION 
RESEARCH PROGRAM 
SEC. 101. SHORT TITLE. 
This title may be cited as the "Small Business Innovation 
Research Program Reauthorization Act of 2000". 
SEC. 102. FINDINGS. 
Congress finds that— 
(1) the small business innovation research program estab-
lished under the Small Business Innovation Development Act 
of 1982, and reauthorized by the Small Business Research 
and Development Enhancement Act of 1992 (in this title 
referred to as the "SBIR program") is highly successful in 
involving small businesses in federally funded research and 
development; 
(2) the SBIR program made the cost-effective and unique 
research and development capabilities possessed by the small 
businesses of the Nation available to Federal agencies and 
departments; 
(3) the innovative goods and services developed by small 
businesses that participated in the SBIR program have pro-
duced innovations of critical importsmce in a wide variety of 
high-technology fields, including biology, medicine, education, 
and defense; 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-669 
(4) the SBIR program is a catalyst in the promotion of 
research and development, the commercialization of innovative 
technology, the development of new products and services, and 
the continued excellence of this Nation's high-technology indus-
tries; and 
(5) the continuation of the SBIR program will provide 
expanded opportunities for one of the Nation's vital resources, 
its small businesses, will foster invention, research, and tech-
nology, will create jobs, and will increase this Nation's competi-
tiveness in international markets. 
SEC. 103. EXTENSION OF SBIR PROGRAM. 
Section 9(m) of the Small Business Act (15 U.S.C. 638(m)) 
is amended to read as follows: 
"(m) TERMINATION.—^The authorization to carry out the Small 
Business Innovation Research Program established under this sec-
tion shall terminate on September 30, 2008.". 
SEC. 104. ANNUAL REPORT. 
Section 9(b)(7) of the Small Business Act (15 U.S.C. 638(b)(7)) 
is amended by striking "and the Committee on Small Business 
of the House of Representatives" and inserting ", and to the Commit-
tee on Science and the Committee on Small Business of the House 
of Representatives,". 
SEC. 105. THIRD PHASE ASSISTANCE. 
Section 9(e)(4)(C)(i) of the Small Business Act (15 U.S.C. 
638(e)(4)(C)(i)) is amended by striking "; and" and inserting "; 
or". 
SEC. 106. REPORT ON PROGRAMS FOR ANNUAL PERFORMANCE PLAN. 
Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) is 
amended— 
(1) in paragraph (7), by striking "and" at the end; 
(2) in paragraph (8), by striking the period at the end 
and inserting a semicolon; and 
(3) by adding at the end the following: 
"(9) include, as part of its annual performance plan as 
required by subsections (a) and (b) of section 1115 of title 
31, United States Code, a section on its SBIR program, and 
shall submit such section to the Committee on Small Business 
of the Senate, and the Committee on Science and the Committee 
on Small Business of the House of Representatives; and". 
SEC. 107. OUTPUT AND OUTCOME DATA. 
(a) COLLECTION.—Section 9(g) of the Small Business Act (15 
U.S.C. 638(g)), as amended by section 106 of this Act, is further 
amended by adding at the end the following: 
"(10) collect, and maintain in a common format in accord-
ance with subsection (v), such information from awardees as 
is necessary to assess the SBIR program, including information 
necessary to maintain the database described in subsection 
(k).". 
(b) REPORT TO CONGRESS.—Section 9(b)(7) of the Small Business 
Act (15 U.S.C. 638(b)(7)), as amended by section 104 of this Act, 
is further amended by inserting before the period at the end ", 
including the data on output and outcomes collected pursuant to 
subsections (g)(10) and (o)(9), and a description of the extent to 
114 STAT. 2763A-670 
PUBLIC LAW 106-554—APPENDIX I 
which Federal agencies are providing in a timely manner informa-
tion needed to maintain the database described in subsection (k)". 
(c) DATABASE.—Section 9(k) of the Small Business Act (15 
U.S.C. 638(k)) is amended to read as follows: 
"(k) DATABASE.— 
"(1) PUBLIC DATABASE.—Not later than 180 days after the 
date of the enactment of the Small Business Innovation 
Research Program Reauthorization Act of 2000, the Adminis-
trator shall develop, maintain, and make available to the public 
a searchable, up-to-date, electronic database that includes— 
"(A) the name, size, location, and an identifying num-
ber assigned by the Administrator, of each small business 
concern that has received a first phase or second phase 
SBIR award from a Federal agency; 
"(B) a description of each first phase or second phase 
SBIR award received by that small business concern, 
including— 
"(i) an abstract of the project funded by the award, 
excluding any proprietary information so identified by 
the small business concern; 
"(ii) the Federal agency making the award; and 
"(iii) the date and amount of the award; 
"(C) an identification of any business concern or 
subsidiary established for the commercial application of 
a product or service for which an SBIR award is made; 
and 
"(D) information regarding mentors and Mentoring 
Networks, as required by section 35(d). 
"(2) GovERNMEiSPr DATABASE.—Not later than 180 days after 
the date of the enactment of the Small Business Innovation 
Research Program Reauthorization Act of 2000, the Adminis-
trator, in consultation with Federal agencies required to have 
an SBIR program pursuant to subsection (f)(1), shall develop 
and maintain a database to be used solely for SBIR program 
evaluation that— 
"(A) contains for each second phase award made by 
a Federal agency— 
"(i) information collected in accordance with para-
graph (3) on revenue from the sale of new products 
or services resulting from the research conducted under 
the award; 
"(ii) information collected in accordance with para-
graph (3) on additional investment from any source, 
other than first phase or second phase SBIR or STTR 
awards, to further the research and development con-
ducted under the award; and 
"(iii) any other information received in connection 
with the award that the Administrator, in conjunction 
with the SBIR program managers of Federal agencies, 
considers relevant and appropriate; 
"(B) includes any narrative information that a small 
business concern receiving a second phase award volun-
tarily submits to further describe the outputs and outcomes 
of its awards; 
"(C) includes for each applicant for a first phase or 
second phase award that does not receive such an award— 
PUBLIC LAW 106-554-APPENDIX I 
114 STAT. 2763A-671 
"(i) the name, size, and location, and an identifying 
number assigned by the Administration; 
"(ii) an abstract of the project; and 
"(iii) the Federal agency to which the application 
was made; 
"(D) includes any other data collected by or available 
to any Federal agency that such agency considers may 
be useful for SBIR program evaluation; and 
"(E) is available for use solely for program evaluation 
purposes by the Federal Government or, in accordance 
with policy directives issued by the Administration, by 
other authorized persons who are subject to a use and 
nondisclosure agreement with the Federal Government 
covering the use of the database. 
"(3) UPDATING INFORMATION FOR DATABASE.— 
"(A) IN GENERAL.—^A small business concern applying 
for a second phase award under this section shall be 
required to update information in the database established 
under this subsection for any prior second phase award 
received by that small business concern. In complying with 
tjiis paragraph, a small business concern may apportion 
sales or additional investment information relating to more 
than one second phase award among those awards, if it 
notes the apportionment for each award. 
"(B) ANNUAL UPDATES UPON TERMINATION.—A small 
business concern receiving a second phase award under 
this section shall— 
"(i) update information in the database concerning 
that award at the termination of the award period; 
and 
"(ii) be requested to voluntarily update such 
information annually thereafter for a period of 5 years. 
"(4) PROTECTION OF INFORMATION.—Information provided 
under paragraph (2) shall be considered privileged and con-
fidential and not subject to disclosure pursuant to section 552 
of title 5, United States Code. 
"(5) RULE OF CONSTRUCTION.—Inclusion of information in 
the database under this subsection shall not be considered 
to be publication for purposes of subsection (a) or (b) of section 
102 of title 35, United States Code.". 
SEC. 108. NATIONAL RESEARCH COUNCIL REPORTS. 
(a) STUDY AND RECOMMENDATIONS.—^The head of each agency 
with a budget of more than $50,000,000 for its SBIR program 
for fiscal year 1999, in consultation with the Small Business 
Administration, shall, not later than 6 months after the date of 
the enactment of this Act, cooperatively enter into an agreement 
with the National Academy of Sciences for the National Research 
Council to— 
(1) conduct a comprehensive study of how the SBIR pro-
gram has stimulated technological innovation and used small 
businesses to meet Federal research and development needs, 
including— 
(A) a review of the value to the Federal research agen-
cies of the research projects being conducted under the 
114 STAT. 2763A-672 
PUBLIC LAW 106-554—APPENDIX I 
SBIR program, and of the quality of research being con-
ducted by small businesses participating under the pro-
gram, including a comparison of the value of projects con-
ducted under the SBIR program to those funded by other 
Federal research and development expenditures; 
(B) to the extent practicable, an evaluation of the eco-
nomic benefits achieved by the SBIR program, including 
the economic rate of return, and a comparison of the eco-
nomic benefits, including the economic rate of return, 
achieved by the SBIR program with the economic benefits, 
including the economic rate of return, of other Federal 
research and development expenditures; 
(C) an evaluation of the noneconomic benefits achieved 
by the SBIR program over the life of the program; 
(D) a comparison of the allocation for fiscal year 2000 
of Federal research and development funds to small 
businesses with such allocation for fiscal year 1983, and 
an analysis of the factors that have contributed to such 
allocation; and 
(E) an analysis of whether Federal agencies, in fulfill-
ing their procurement needs, are making sufficient effort 
to use small businesses that have completed a second phase 
award under the SBIR program; and 
(2) make recommendations with respect to— 
(A) measures of outcomes for strategic plans submitted 
under section 306 of title 5, United States Code, and 
performance plans submitted under section 1115 of title 
31, United States Code, of each Federal agency participat-
ing in the SBIR program; 
(B) whether companies who can demonstrate project 
feasibility, but who have not received a first phase award, 
should be eligible for second phase awards, and the poten-
tial impact of such awards on the competitive selection 
process of the program; 
(C) whether the Federal Government should be per-
mitted to recoup some or all of its expenses if a controlling 
interest in a company receiving an SBIR award is sold 
to a foreign company or to a company that is not a small 
business concern; 
(D) how to increase the use by the Federal Government 
in its programs and procurements of technology-oriented 
small businesses; and 
(E) improvements to the SBIR program, if any are 
considered appropriate. 
(b) PARTICIPATION BY SMALL BUSINESS.— 
(1) IN GENERAL.—In a manner consistent with law and 
with National Research Council study guidelines and proce-
dures, knowledgeable individuals from the small business 
community with experience in the SBIR program shall be 
included— 
(A) in any panel established by the National Research 
Council for the purpose of performing the study conducted 
under this section; and 
(B) among those who are asked by the National 
Research Council to peer review the study. 
(2) CONSULTATION.—To ensure that the concerns of small 
business are appropriately considered under this subsection. 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-673 
the National Research Council shall consult with and consider 
the views of the Office of Technology and the Office of Advocacy 
of the Small Business Administration and other interested par-
ties, including entities, organizations, and individuals actively 
engaged in enhancing or developing the technological capabili-
ties of small business concerns. 
(c) PROGRESS REPORTS.—^The National Research Council shall 
provide semiannual progress reports on the study conducted under 
this section to the Committee on Science and the Committee on 
Small Business of the House of Representatives, and to the Commit-
tee on Small Business of the Senate. 
(d) REPORT.—The National Research Council shall transmit 
to the heads of agencies entering into an agreement under this 
section and to the Committee on Science and the Committee on 
Small Business of the House of Representatives, and to the Commit-
tee on Small Business of the Senate— 
(1) not later than 3 years after the date of the enactment 
of this Act, a report including the results of the study conducted 
under subsection (a)(1) and recommendations made under sub-
section (a)(2); and 
(2) not later than 6 years after that date of the enactment, 
an update of such report. 
SEC. 109. FEDERAL AGENCY EXPENDITURES FOR THE SBIR PROGRAM. 
Section 9(i) of the Small Business Act (15 U.S.C. 638(i)) is 
amended— 
(1) by striking "(i) Each Federal" and inserting the follow-
ing: 
"(i) ANNUAL REPORTING.— 
"(1) IN GENERAL.—Each Federal"; and 
(2) by adding at the end the following: 
"(2) CALCULATION OF EXTRAMURAL BUDGET.— 
"(A) METHODOLOGY.—Not later than 4 months after 
the date of the enactment of each appropriations Act for 
a Federal agency required by this section to have an SBIR 
program, the Federal agency shall submit to the Adminis-
trator a report, which shall include a description of the 
methodology used for calculating the amount of the extra-
mural budget of that Federal agency. 
"(B) ADMINISTRATOR'S ANALYSIS.—The Administrator 
shall include an analysis of the methodology received from 
each Federal agency referred to in subparagraph (A) in 
the report required by subsection (b)(7).". 
SEC. 110. POLICY DIRECTIVE MODIFICATIONS. 
Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) is 
amended by adding at the end the following: 
"(3) ADDITIONAL MODIFICATIONS.—Not later than 120 days 
after the date of the enactment of the Small Business Innova-
tion Research Program Reauthorization Act of 2000, the 
Administrator shall modify the policy directives issued pursuant 
to this subsection— 
"(A) to clarify that the rights provided for under para-
graph (2)(A) apply to all Federal funding awards under 
this section, including the first phase (as described in sub-
section (e)(4)(A)), the second phase (as described in sub-
section (e)(4)(B)), and the third phase (as described in 
subsection (e)(4)(C)); 
114 STAT. 2763A-674 
PUBLIC LAW 106-554—APPENDIX I 
"(B) to provide for the requirement of a succinct 
commercialization plan with each application for a second 
t 
phase award that is moving toward commercialization; 
"(C) to require agencies to report to the Administration, 
not less frequently than annually, all instances in which 
an agency pursued research, development, or production 
of a technology developed by a small business concern 
using an award made under the SBIR program of that 
agency, and determined that it was not practicable to enter 
into a follow-on non-SBIR program funding agreement with 
the small business concern, which report shall include, 
at a minimum— 
"(i) the reasons why the follow-on funding agree-
ment with the small business concern was not prac-
ticable; 
"(ii) the identity of the entity with which the 
agency contracted to perform the research, develop-
ment, or production; and 
"(iii) a description of the type of funding agreement 
under which the research, development, or production 
was obtained; and 
"(D) to implement subsection (v), including establishing 
standardized procedures for the provision of information 
pursuant to subsection (k)(3).". 
SEC. 111. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PRO-
GRAM. 
(a) FINDINGS.—Congress finds that— 
(1) programs to foster economic development among small 
high-technology firms vary widely among the States; 
(2) States that do not aggressively support the development 
of small high-technology firms, including participation by small 
business concerns in the SBIR program, are at a competitive 
disadvantage in establishing a business climate that is condu-
cive to technology development; and 
(3) building stronger national, State, and local support 
for science and technology research in these disadvantaged 
States will expand economic opportunities in the United States, 
create jobs, and increase the competitiveness of the United 
States in the world market. 
(b) FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PROGRAM.— 
The Small Business Act (15 U.S.C. 631 et seq.) is amended— 
(1) by redesignating section 34 as section 36; and 
(2) by inserting after section 33 the following: 
"SEC. 34. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PRO-
GRAM. 
"(a) DEFINITIONS.—In this section and section 35, the following 
definitions apply: 
"(1) APPLICANT.—^The term 'applicant' means an entity, 
organization, or individual that submits a proposal for an award 
or a cooperative agreement under this section. 
"(2) BUSINESS ADVICE AND COUNSELING.—The term 'busi-
ness advice and counseling' means providing advice and assist-
ance on matters described in section 35(c)(2)(B) to small busi-
ness concerns to guide them through the SBIR and STTR 
program process, from application to award and successful 
completion of each phase of the program. 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-675 
"(3) FAST PROGRAM.—The term 'FAST program' means 
the Federal and State Technology Partnership Program estab-
lished under this section. 
"(4) MENTOR.—The term 'mentor' means an individual 
described in section 35(c)(2). 
"(5) MENTORING NETWORK.—The term 'Mentoring Network' 
means an association, organization, coalition, or other entity 
(including an individual) that meets the requirements of section 
35(c). 
"(6) RECIPIENT.—The term 'recipient' means a person that 
receives an award or becomes party to a cooperative agreement 
under this section. 
"(7) SBIR PROGRAM.—The term 'SBIR program' has the 
same meaning as in section 9(e)(4). 
"(8) STATE.—The term 'State' means each of the several 
States, the District of Columbia, the Commonwealth of Puerto 
Rico, the Virgin Islands, Guam, and American Samoa. 
"(9) STTR PROGRAM.—The term 'STTR program' has the 
same meaning as in section 9(e)(6). 
"(b) ESTABLISHMENT OF PROGRAM.—The Administrator shall 
establish a program to be known as the Federal and State Tech-
nology Partnership Program, the purpose of which shall be to 
strengthen the technological competitiveness of small business con-
cerns in the States. 
"(c) GRANTS AND COOPERATIVE AGREEMENTS.— 
"(1) JOINT REVIEW.—In carrying out the FAST program 
under this section, the Administrator and the SBIR program 
managers at the National Science Foundation and the Depart-
ment of Defense shall jointly review proposals submitted by 
applicants and may make awards or enter into cooperative 
agreements under this section based on the factors for consider-
ation set forth in paragraph (2), in order to enhance or develop 
in a State— 
"(A) technology research and development by small 
business concerns; 
"(B) technology transfer from university research to 
technology-based small business concerns; 
"(C) technology deplojonent and diffusion benefiting 
small business concerns; 
"(D) the technological capabilities of small business 
concerns through the establishment or operation of consor-
tia comprised of entities, organizations, or individuals, 
including— 
"(i) State and local development agencies and enti-
ties; 
"(ii) representatives of technology-based 
small 
business concerns; 
"(iii) industries and emerging companies; 
"(iv) universities; and 
"(v) small business development centers; and 
"(E) outreach, financial support, and technical assist-
ance to technology-based small business concerns partici-
pating in or interested in participating in an SBIR program, 
including initiatives— 
"(i) to make grants or loans to companies to pay 
a portion or all of the cost of developing SBIR propos-
als; 
114 STAT. 2763A-676 
PUBLIC LAW 106-554—APPENDIX I 
"(ii) to establish or operate a Mentoring Network 
within the FAST program to provide business advice 
and counseling that will assist small business concerns 
that have been identified by FAST program partici-
pants, program managers of participating SBIR agen-
> 
cies, the Administration, or other entities that are 
knowledgeable about the SBIR and STTR programs 
as good candidates for the SBIR and STTR programs, 
and that would benefit from mentoring, in accordance 
with section 35; 
"(iii) to create or participate in a training program 
for individuals providing SBIR outreach and assistance 
at the State and local levels; and 
"(iv) to encourage the commercialization of tech-
nology developed through SBIR program funding. 
"(2) SELECTION CONSIDERATIONS.—In making awards or 
entering into cooperative agreements under this section, the 
Administrator and the SBIR program managers referred to 
in paragraph (1)— 
"(A) may only consider proposals by applicants that 
intend to use a portion of the Federal assistance provided 
under this section to provide outreach, financial support, 
or technical assistance to technology-based small business 
concerns participating in or interested in participating in 
the SBIR program; and 
"(B) shall consider, at a minimum— 
"(i) whether the applicant has demonstrated that 
the assistance to be provided would address unmet 
needs of small business concerns in the community, 
and whether it is important to use Federal funding 
for the proposed activities; 
"(ii) whether the applicant has demonstrated that 
a need exists to increase the number or success of 
small high-technology businesses in the State, as meas-
ured by the number of first phase and second phase 
SBIR awards that have historically been received by 
small business concerns in the State; 
"(iii) whether the projected costs of the proposed 
activities are reasonable; 
"(iv) whether the proposal integrates and coordi-
nates the proposed activities with other State and local 
programs assisting small high-technology firms in the 
State; and 
"(v) the manner in which the applicant will meas-
ure the results of the activities to be conducted. 
"(3) PROPOSAL LIMIT.—Not more than one proposal may 
be submitted for inclusion in the FAST program under this 
section to provide services in any one State in any 1 fiscal 
year. 
"(4) PROCESS.—Proposals and applications for assistance 
under this section shall be in such form and subject to such 
procedures as the Administrator shall establish. 
"(d) 
COOPERATION AND COORDINATION.—In carrying out 
the 
FAST program under this section, the Administrator shall cooperate 
and coordinate with— 
"(1) Federal agencies required by section 9 to have an 
SBIR program; and 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-677 
"(2) entities, 
organizations, and individuals 
actively 
engaged in enhancing or developing the technological capabili-
ties of small business concerns, including— 
"(A) State and local development agencies and entities; 
"(B) State committees established under the Experi-
mental Program to Stimulate Competitive Research of the 
National Science Foundation (as established under section 
113 of the National Science Foundation Authorization Act 
of 1988 (42 U.S.C. 1862g)); 
"(C) State science and technology councils; and 
"(D) representatives of technology-based small business 
concerns. 
"(e) ADMINISTRATIVE REQUIREMENTS.— 
"(1) COMPETITIVE BASIS.—^Awards and cooperative agree-
ments under this section shall be made or entered into, as 
applicable, on a competitive basis. 
"(2) MATCHING REQUIREMENTS.— 
"(A) IN GENERAL.—^The non-Federal share of the cost 
of an activity (other than a planning activity) carried out 
using an award or under a cooperative agreement under 
this section shall be— 
"(i) 50 cents for each Federal dollar, in the case 
of a recipient that will serve small business concerns 
located in one of the 18 States receiving the fewest 
SBIR first phase awards (as described in section 
9(e)(4)(A)); 
"(ii) except as provided in subparagraph (B), 1 
dollar for each Federal dollar, in the case of a recipient 
that will serve small business concerns located in one 
of the 16 States receiving the greatest number of such 
SBIR first phase awards; and 
"(iii) except as provided in subparagraph (B), 75 
cents for each Federal dollar, in the case of a recipient 
that will serve small business concerns located in a 
State that is not described in clause (i) or (ii) that 
is receiving such SBIR first phase awards. 
"(B) LOW-INCOME AREAS.—^The non-Federal share of 
the cost of the activity carried out using an award or 
under a cooperative agreement under this section shall 
be 50 cents for each Federal dollar that will be directly 
allocated by a recipient described in subparagraph (A) to 
serve small business concerns located in a qualified census 
tract, as that term is defined in section 42(d)(5)(C)(ii) of 
the Internal Revenue Code of 1986. Federal dollars not 
' so allocated by that recipient shall be subject to the match-
ing requirements of subparagraph (A). 
"(C) TYPES OF FUNDING.—The non-Federal share of 
the cost of an activity carried out by a recipient shall 
be comprised of not less than 50 percent cash and not 
more than 50 percent of indirect costs and in-kind contribu-
tions, except that no such costs or contributions may be 
derived from funds from any other Federal program. 
"(D) RANKINGS.—For purposes of subparagraph (A), 
the Administrator shall reevaluate the ranking of a State 
once every 2 fiscal years, beginning with fiscal year 2001, 
based on the most recent statistics compiled by the 
Administrator. 
114 STAT. 2763A-678 
PUBLIC LAW 106-554—APPENDIX I 
"(3) DURATION.—^Awards may be made or cooperative agree-
ments entered into under this section for multiple years, not 
to exceed 5 years in total. 
"(f) REPORTS.— 
"(1) INITIAL REPORT.—Not later than 120 days after the 
date of the enactment of the Small Business Innovation 
Research Program Reauthorization Act of 2000, the Adminis-
trator shall prepare and submit to the Committee on Small 
Business of the Senate and the Committee on Science and 
the Committee on Small Business of the House of Representa-
tives a report, which shall include, with respect to the FAST 
program, including Mentoring Networks— 
"(A) a description of the structure and procedures of 
the program; 
"(B) a management plan for the program; and 
"(C) a description of the merit-based review process 
to be used in the program, 
"(2) ANNUAL REPORTS.—The Administrator shall submit an 
annual report to the Committee on Small Business of the 
Senate and the Committee on Science and the Committee on 
Small Business of the House of Representatives regarding— 
"(A) the number and amount of awards provided and 
cooperative agreements entered into under the FAST pro-
gram during the preceding year; 
"(B) a list of recipients under this section, including 
their location and the activities being performed with the 
awards made or under the cooperative agreements entered 
into; and 
"(C) the Mentoring Networks and the mentoring data-
base, as provided for under section 35, including— 
"(i) the status of the inclusion of mentoring 
information in the database required by section 9(k); 
and 
"(ii) the status of the implementation and descrip-
tion of the usage of the Mentoring Networks. 
"(g) REVIEWS BY INSPECTOR GENERAL.— 
"(1) IN GENERAL.—The Inspector General of the Administra-
tion shall conduct a review of— 
"(A) the extent to which recipients under the FAST 
program are measuring the performance of the activities 
being conducted and the results of such measurements; 
and 
"(B) the overall management and effectiveness of the 
FAST program. 
"(2) REPORT.—During the first quarter of fiscal year 2004, 
the Inspector General of the Administration shall submit a 
report to the Committee on Small Business of the Senate and 
the Committee on Science and the Committee on Small Busi-
ness of the House of Representatives on the review conducted 
under paragraph (1). 
"(h) PROGRAM LEVELS.— 
"(1) IN GENERAL.—There is authorized to be appropriated 
to carry out the FAST program, including Mentoring Networks, 
under this section and section 35, $10,000,000 for each of 
fiscal years 2001 through 2005. 
"(2) MENTORING DATABASE.—Of the total amount made 
available under paragraph (1) for fiscal years 2001 through 
PUBLIC LAW 106-554r-APPENDIX I 
114 STAT. 2763A-679 
2005, a reasonable amount, not to exceed a total of $500,000, 
may be used by the Administration to carry out section 35(d). 
"(i) TERMINATION.—The authority to carry out the FAST pro-
gram under this section shall terminate on September 30, 2005.". 
(c) COORDINATION OF TECHNOLOGY DEVELOPMENT PROGRAMS.— 
Section 9 of the Small Business Act (15 U.S.C. 638) is amended 
by adding at the end the following: 
"(u) 
COORDINATION OF TECHNOLOGY 
DEVELOPMENT 
PRO-
GRAMS.— 
"(1) DEFINITION OF TECHNOLOGY DEVELOPMENT PROGRAM.— 
In this subsection, the term 'technology development program' 
means— 
"(A) the Experimental Program to Stimulate Competi-
tive Research of the National Science Foundation, as estab-
lished under section 113 of the National Science Foundation 
Authorization Act of 1988 (42 U.S.C. 1862g); 
"(B) the Defense Experimental Program to Stimulate 
Competitive Research of the Department of Defense; 
"(C) the Experimental Program to Stimulate Competi-
tive Research of the Department of Energy; 
"(D) the Experimental Program to Stimulate Competi-
tive Research of the Environmental Protection Agency; 
"(E) the Experimental Program to Stimulate Competi-
tive Research of the National Aeronautics and Space 
Administration; 
"(F) the Institutional Development Award Program of 
the National Institutes of Health; and 
"(G) the National Research Initiative Competitive 
Grants Program of the Department of Agriculture. 
"(2) COORDINATION REQUIREMENTS.—Each Federal agency 
that is subject to subsection (f) and that has established a 
technology development program may, in each fiscal year, 
review for funding 
under 
that 
technology 
development 
program— 
"(A) any proposal to provide outreach and assistance 
to one or more small business concerns interested in partici-
pating in the SBIR program, including any proposal to 
make a grant or loan to a company to pay a portion 
or all of the cost of developing an SBIR proposal, from 
an entity, organization, or individual located in— 
"(i) a State that is eligible to participate in that 
program; or 
"(ii) a State described in paragraph (3); or 
"(B) any proposal for the first phase of the SBIR pro-
gram, if the proposal, though meritorious, is not funded 
through the SBIR program for that fiscal year due to 
funding restraints, from a small business concern located 
in— 
"(i) a State that is eligible to participate in a 
technology development program; or 
"(ii) a State described in paragraph (3). 
"(3) ADDITIONALLY ELIGIBLE STATE.—^A State referred to 
in subparagraph (A)(ii) or (B)(ii) of paragraph (2) is a State 
in which the total value of contracts awarded to small business 
concerns under all SBIR programs is less than the total value 
of contracts awarded to small business concerns in a majority 
of other States, as determined by the Administrator in biennial 
114 STAT. 2763A-680 
PUBLIC LAW 106-554—APPENDIX I 
fiscal years, beginning with fiscal year 2000, based on the 
most recent statistics compiled by the Administrator.". 
SEC. 112. MENTORING NETWORKS. 
The Small Business Act (15 U.S.C. 631 et seq.) is amended 
by inserting after section 34, as added by section 111(b)(2) of this 
Act, the following: 
"SEC. 35. MENTORING NETWORKS. 
"(a) FINDINGS.—Congress finds that— 
"(1) the SBIR and STTR programs create jobs, increase 
capacity for technological innovation, and boost international 
competitiveness; 
"(2) increasing the quantity of applications from all States 
to the SBIR and STTR programs would enhance competition 
for such awards and the quality of the completed projects; 
and 
"(3) mentoring is a natural complement to the FAST pro-
gram of reaching out to new companies regarding the SBIR 
and STTR programs as an effective and low-cost way to improve 
the likelihood that such companies will succeed in such pro-
grams in developing and commercializing their research. 
"(b) AUTHORIZATION FOR MENTORING NETWORKS.—The recipient 
of an award or participant in a cooperative agreement under section 
34 may use a reasonable amount of such assistance for the establish-
ment of a Mentoring Network under this section. 
"(c) CRITERIA FOR MENTORING NETWORKS.—A Mentoring Net-
work established using assistance under section 34 shall— 
"(1) provide business advice and counseling to high tech-
nology small business concerns located in the State or region 
served by the Meiitoring Network and identified under section 
34(c)(l)(E)(ii) as potential candidates for the SBIR or STTR 
programs; 
"(2) identify volunteer mentors who— 
"(A) are persons associated with a small business con-
cern that has successfully completed one or more SBIR 
or STTR funding agreements; and 
"(B) have agreed to guide small business concerns 
through all stages of the SBIR or STTR program process, 
including providing assistance relating to— 
"(i) proposal writing; 
"(ii) marketing; 
"(iii) Government accounting; 
"(iv) Government audits; 
"(v) project facilities and equipment; 
"(vi) human resources; 
"(vii) third phase partners; 
"(viii) commercialization; 
"(ix) venture capital networking; and 
"(x) other matters relevant to the SBIR and STTR 
programs; 
"(3) have experience working with small business concerns 
participating in the SBIR and STTR programs; 
"(4) contribute information to the national 
database 
referred to in subsection (d); and 
"(5) agree to reimburse volunteer mentors for out-of-pocket 
expenses related to service as a mentor under this section. 
"(d) MENTORING DATABASE.—The Administrator shall— 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-681 
"(1) include in the database required by section 9(k)(l), 
in cooperation with the SBIR, STTR, and FAST programs, 
information on Mentoring Networks and mentors participating 
under this section, including a description of their areas of 
expertise; 
"(2) work cooperatively with Mentoring Networks to main-
tain and update the database; 
"(3) take such action as may be necessary to aggressively 
promote Mentoring Networks under this section; and 
"(4) fulfill the requirements of this subsection either 
directly or by contract.". 
SEC. 113. SIMPLIFIED REPORTING REQUIREMENTS. 
Section 9 of the Small Business Act (15 U.S.C. 638), as amended 
by this Act, is further amended by adding at the end the following: 
"(v) SIMPLIFIED REPORTING REQUIREMENTS.—The Administrator 
shall work with the Federal agencies required by this section to 
have an SBIR program to standardize reporting requirements for 
the collection of data from SBIR applicants and awardees, including 
data for inclusion in the database under subsection (k), taking 
into consideration the unique needs of each agency, and to the 
extent possible, permitting the updating of previously reported 
information by electronic means. Such requirements shall be 
designed to minimize the burden on small businesses.". 
SEC. 114. RURAL OUTREACH PROGRAM EXTENSION. 
(a) EXTENSION OF TERMINATION DATE.—Section 501(b)(2) of 
the Small Business Reauthorization Act of 1997 (15 U.S.C. 638 
note; 111 Stat. 2622) is amended by striking "2001" and inserting 
"2005". 
(b) EXTENSION OF AUTHORIZATION OF APPROPRIATIONS.—Section 
9(s)(2) of the Small Business Act (15 U.S.C. 638(s)(2)) is amended 
by striking "for fiscal year 1998, 1999, 2000, or 2001" and inserting 
"for each of the fiscal years 2000 through 2005,". 
TITLE II—BUSINESS LOAN PROGRAMS 
SEC. 201. SHORT TITLE. 
This title may be cited as the "Small Business Login Improve-
ment Act of 2000". 
SEC. 202. LEVELS OF PARTICIPATION. 
Section 7(a)(2)(A) of the Small Business Act (15 U.S.C. 
636(a)(2)(A)) is amended— 
(1) in paragraph (i) by striking "$100,000" and inserting 
"$150,000"; and 
(2) in paragraph (ii)— 
(A) by striking "80 percent" and inserting "85 percent"; 
and 
(B) by striking "$100,000" and inserting "$150,000". 
SEC. 203. LOAN AMOUNTS. 
Section 7(a)(3)(A) of the Small Business Act (15 U.S.C. 
636(a)(3)(A)) is amended by striking "$750,000," and inserting, 
"$1,000,000 (or if the gross loan amount would exceed $2,000,000),". 
114 STAT. 2763A-682 
PUBLIC LAW 106-554—APPENDIX I 
SEC. 204. INTEREST ON DEFAULTED LOANS. 
Section 7(a)(4)(B) of the Small Business Act (15 U.S.C. 
636(a)(4)(B)) is amended by adding at the end the following: 
"(iii) APPLICABILITY.—Clauses (i) and (ii) shall not 
apply to loans made on or after October 1, 2000.". 
SEC. 205. PREPAYMENT OF LOANS. 
Section 7(a)(4) of the Small Business Act (15 U.S.C. 636(a)(4)) 
is further amended— 
(1) by striking "(4) INTEREST RATES AND FEES.—" and insert-
ing "(4) INTEREST RATES AND PREPAYMENT CHARGES.—"; and 
(2) by adding at the end the following: 
"(C) PREPAYMENT CHARGES.— 
"(i) IN GENERAL.—^A borrower who prepays any 
loan guaranteed under this subsection shall remit to 
the Administration a subsidy recoupment fee cal-
culated in accordance with clause (ii) if— 
"(I) the loan is for a term of not less than 
15 years; 
"(II) the prepayment is voluntary; 
"(III) the amount of prepayment in any cal-
endar year is more than 25 percent of the outstand-
ing balance of the loan; and 
"(IV) the prepayment is made within the first 
3 years after disbursement of the loan proceeds. 
"(ii) 
SUBSIDY 
RECOUPMENT 
FEE.—The 
subsidy 
recoupment fee charged under clause (i) shall be— 
"(I) 5 percent of the amount of prepayment, 
if the borrower prepays during the first year after 
disbursement; 
"(II) 3 percent of the amoiuit of prepayment, 
if the borrower prepays during the second year 
after disbursement; and 
"(III) 1 percent of the amount of prepa5anent, 
if the borrower prepays during the third year after 
disbursement.". 
SEC 206. GUARANTEE FEES. 
Section 7(a)(18) of the Small Business Act (15 U.S.C. 636(a)(18)) 
is amended to read as follows: 
"(18) GUARANTEE FEES.— 
"(A) IN GENERAL.—^With respect to each loan guaran-
teed under this subsection (other than a loan that is repay-
able in 1 year or less), the Administration shall collect 
a guarantee fee, which shall be payable by the participating 
lender, and may be charged to the borrower, as follows: 
"(i) A guarantee fee equal to 2 percent of the 
deferred participation share of a total loan amount 
that is not more than $150,000. 
"(ii) A guarantee fee equal to 3 percent of the 
deferred participation share of a total loan amount 
that is more than $150,000, but not more than 
$700,000. 
"(iii) A guarantee fee equal to 3.5 percent of the 
deferred participation share of a total loan amount 
that is more than $700,000. 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-683 
"(B) RETENTION OF CERTAIN FEES.—^Lenders participat-
ing in the programs established under this subsection may 
retain not more than 25 percent of a fee collected under 
subparagraph (A)(i).". 
SEC. 207. LEASE TERMS. 
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
further amended by adding at the end the following: 
"(28) LEASING.—In addition to such other lease arrange-
ments as may be authorized by the Administration, a borrower 
may permanently lease to one or more tenants not more than 
20 percent of any property constructed with the proceeds of 
a loan guaranteed xmder this subsection, if the borrower perma-
nently occupies and uses not less than 60 percent of the total 
business space in the property.". 
SEC. 
2
0
8
. 
APPRAISALS 
FOR 
LOANS 
SECURED 
BY 
REAL 
PROPERTY. 
(a) SMALL BUSINESS ACT.—Section 7(a) of the Small Business 
Act (15 U.S.C. 636(a)) is amended by adding at the end the follow-
ing: 
"(29) REAL ESTATE APPRAISALS.—^With respect to a loan 
under this subsection that is secured by commercial real prop-
erty, an appraisal of such property by a State licensed or 
certified appraiser— 
"(A) shall be required by the Administration in connec-
tion with any such loan for more than $250,000; or 
"(B) may be required by the Administration or the 
lender in connection with any such loan for $250,000 or 
less, if such appraisal is necessary for appropriate evalua-
tion of creditworthiness.". 
(b) 
SMALL 
BUSINESS 
INVESTMENT ACT OF 1958.—Section 
502(3)(E) of the Small Business Investment Act of 1958 (15 U.S.C. 
696(3)(E)) is amended— 
(1) by striking "The collateral" and inserting the following: 
"(i) IN GENERAL.—The collateral"; and 
(2) by adding at the end the following: 
"(ii) APPRAISALS.—^With respect to commercial real 
property provided by the small business concern as 
collateral, an appraisal of the property by a State 
licensed or certified appraiser— 
"(I) shall be required by the Administration 
before disbursement of the loan if the estimated 
value of that property is more than $250,000; or 
"(II) may be required by the Administration 
or the lender before disbursement of the loan if 
the estimated value of that property is $250,000 
or less, and such appraisal is necessary for appro-
priate evaluation of creditworthiness.". 
SEC. 209. SALE OF GUARANTEED LOANS MADE FOR EXPORT PUR-
POSES. 
Section 5(f)(1)(C) of the Small Business Act (15 U.S.C. 
634(f)(1)(C)) is amended to read as follows: 
"(C) each loan, except each loan made under section 
7(a)(14), shall have been fully disbursed to the borrower prior 
to any sale.". 
114 STAT. 2763A-684 
PUBLIC LAW 106-554—APPENDIX I 
SEC. 210, MICROLOAN PROGRAM. 
(a) IN GENERAL.—Section 7(m) of the Small Business Act (15 
U.S.C. 636(m)) is amended— 
(1) in paragraphs (l)(B)(iii) and (3)(E), by striking "$25,000" 
each place it appears and inserting "$35,000"; 
(2) in paragraphs (l)(A)(iii)(I), (3)(A)(ii), and (4)(C)(i)(II), 
by striking "$7,500" each place it appears and inserting 
"$10,000"; 
(3) in paragraph (3)(E), by striking "$15,000" and inserting 
"$20,000"; 
(4) in paragraph (5)(A)— 
(A) by striking "25 grants" and inserting "55 grants"; 
and 
(B) by striking "$125,000" and inserting "$200,000"; 
(5) in paragraph (6)(B), by striking "$10,000" and inserting 
"$15,000"; and 
(6) in paragraph (7), by striking subparagraph (A) and 
inserting the following: 
"(A) NUMBER OF PARTICIPANTS.—Under the program 
authorized by this subsection, the Administration may 
fund, on a competitive basis, not more than 300 inter-
mediaries.". 
(b) CONFORMING AMENDMENTS.—Section 7(m)(ll)(B) of the 
Small Business Act (15 U.S.C. 636(m)(ll)(B)) is amended by striking 
"$25,000" and inserting "$35,000". 
TITLE III—CERTIFIED DEVELOPMENT 
COMPANY PROGRAM 
SEC. 301. SHORT TITLE. 
This title may be cited as the "Certified Development Company 
Program Improvements Act of 2000". 
SEC. 302. WOMEN-OWNED BUSINESSES. 
Section 501(d)(3)(C) of the Small Business Investment Act of 
1958 (15 U.S.C. 695(d)(3)(C)) is amended by inserting before the 
comma "or women-owned business development". 
SEC. 303. MAXIMUM DEBENTURE SIZE. 
Section 502(2) of the Small Business Investment Act of 1958 
(15 U.S.C. 696(2)) is amended to read as follows: 
"(2) Loans made by the Administration under this section 
shall be limited to $1,000,000 for each such identifiable small 
business concern, except loans meeting the criteria specified 
in section 501(d)(3), which shall be limited to $1,300,000 for 
each such identifiable small business concern.". 
SEC. 304. FEES. 
Section 503(f) of the Small Business Investment Act of 1958 
(15 U.S.C. 697(f)) is amended to read as follows: 
"(f) EFFECTIVE DATE.—The fees authorized by subsections (b) 
and (d) shall apply to financings approved by the Administration 
on or after October 1, 1996, but shall not apply to financings 
approved by the Administration on or after October 1, 2003.". 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-685 
SEC. 305. PREMIER CERTIFIED LENDERS PROGRAM. 
Section 217(b) of the Small Business Administration Reauthor-
ization and Amendments Act of 1994 (Public Law 103-403, 15 
U.S.C. 697 note) (relating to section 508 of the Small Business 
Investment Act of 1958) is repealed. 
SEC. 
3
0
6
. 
SALE 
OF 
CERTAIN 
DEFAULTED 
LOANS. 
Section 508 of the Small Business Investment Act of 1958 
(15 U.S.C. 697e) is amended— 
(1) in subsection (a), by striking "On a pilot program basis, 
the" and inserting "The"; 
(2) by redesignating subsections (d) through (i) as sub-
sections (e) through (j), respectively; 
(3) in subsection (f) (as redesignated by paragraph (2)), 
by striking "subsection (f)" and inserting "subsection (g)"; 
(4) in subsection (h) (as redesignated by paragraph (2)), 
by striking "subsection (f)" and inserting "subsection (g)"; and 
(5) by inserting after subsection (c) the following: 
"(d) SALE OF CERTAIN DEFAULTED LOANS.— 
"(1) NOTICE.—If, upon default in repayment, the Adminis-
tration acquires a loan guaranteed under this section and 
identifies such loan for inclusion in a bulk asset sale of 
defaulted or repurchased loans or other financings, it shall 
give prior notice thereof to any certified development company 
which has a contingent liability under this section. The notice 
shall be given to the company as soon as possible after the 
financing is identified, but not less than 90 days before the 
date the Administration first makes any records on such financ-
ing available for examination by prospective purchasers prior 
to its offering in a package of loans for bulk sale. 
"(2) LIMITATIONS.—The Administration shall not offer any 
loan described in paragraph (1) as part of a bulk sale unless 
i1>-
"(A) provides prospective purchasers with the oppor-
tunity to examine the Administration's records with respect 
to such loan; and 
"(B) provides the notice required by paragraph (1).". 
SEC. 307. LOAN LIQUIDATION. 
(a) LIQUIDATION AND FORECLOSURE.—^Title V of the Small Busi-
ness Investment Act of 1958 (15 U.S.C. 695 et seq.) is amended 
by adding at the end the following: 
"SEC. 510. FORECLOSURE AND LIQUIDATION OF LOANS. 
"(a) DELEGATION OF AUTHORITY.—In accordance with this sec-
tion, the Administration shall delegate to any qualified State or 
local development company (as defined in section 503(e)) that meets 
the eligibility requirements of subsection (b)(1) the authority to 
foreclose and liquidate, or to otherwise treat in accordance with 
this section, defaulted loans in its portfolio that are funded with 
the proceeds of debentures guaranteed by the Administration under 
section 503. 
"(b) ELIGIBILITY FOR DELEGATION.— 
"(1) REQUIREMENTS.—^A qualified State or local develop-
ment company shall be eligible for a delegation of authority 
under subsection (a) if— 
"(A) the company— 
114 STAT. 2763A-686 
PUBLIC LAW 106-554—APPENDIX I 
"(i) has participated in the loan Hquidation pilot 
program established by the Small Business Programs 
Improvement Act of 1996 (15 U.S.C. 695 note), as 
in effect on the day before promulgation of final regula-
tions by the Administration implementing this section; 
"(ii) is participating in the Premier Certified Lend-
ers Program under section 508; or 
"(iii) during the 3 fiscal years immediately prior 
to seeking such a delegation, has made an average 
of not less than 10 loans per year that are funded 
with the proceeds of debentures guaranteed under sec-
tion 503; and 
"(B) the company— 
"(i) has one or more employees— 
"(I) with not less than 2 years of substantive, 
decision-making experience in administering the 
liquidation and workout of problem loans secured 
in a manner substantially similar to loans funded 
with the proceeds of debentures guaranteed under 
section 503; and 
"(II) who have completed a training program 
on loan liquidation developed by the Administra-
tion in conjunction with qualified State and local 
development companies that meet the require-
ments of this paragraph; or 
"(ii) submits to the Administration documentation 
demonstrating that the company has contracted with 
a qualified third-party to perform any liquidation 
activities and secures the approval of the contract by 
the Administration with respect to the qualifications 
of the contractor and the terms and conditions of liq-
uidation activities. 
"(2) CONFIRMATION.—On request the Administration shall 
examine the qualifications of any compsiny described in sub-
section (a) to determine if such company is eligible for the 
delegation of authority under this section. If the Administration 
determines that a company is not eligible, the Administration 
shall provide the company with the reasons for such ineligibil-
ity. 
"(c) SCOPE OF DELEGATED AUTHORITY.— 
"(1) IN GENERAL.—Each qualified State or local develop-
ment company to which the Administration delegates authority 
under section (a) may with respect to any loan described in 
subsection (a)— 
"(A) perform all liquidation and foreclosure functions, 
including the purchase in accordance with this subsection 
of any other indebtedness secured by the property securing 
the loan, in a reasonable and soiuid manner according 
to commercially accepted practices, pursuant to a liquida-
tion plan approved in advance by the Administration under 
paragraph (2)(A); 
"(B) litigate any matter relating to the performance 
of the functions described in subparagraph (A), except that 
the Administration may— 
"(i) defend or bring any claim if— 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-687 
"(I) the outcome of the litigation may adversely 
affect the Administration's management of the 
loan program established under section 502; or 
"(II) the Administration is entitled to legal 
remedies not available to a qualified State or local 
development company £ind such remedies will 
benefit either the Administration or the qualified 
State or local development company; or 
"(ii) oversee the conduct of any such litigation; 
and 
"(C) take other appropriate actions to mitigate loan 
losses in lieu of total liquidation or foreclosures, including 
the restructuring of a loan in accordance with prudent 
loan servicing practices and pursuant to a workout plan 
approved in advance by the Administration under para-
graph (2)(C). 
"(2) ADMINISTRATION APPROVAL.— 
"(A) LIQUIDATION PLAN.— 
"(i) IN GENERAL.—Before carrying out functions 
described in paragraph (1)(A), a qualified State or local 
development company shall submit to the Administra-
tion a proposed liquidation plan. 
"(ii) ADMINISTRATION ACTION ON PLAN.— 
"(I) TIMING.—^Not later than 15 business days 
after a liquidation plan is received by the Adminis-
tration under clause (i), the Administration shall 
approve or reject the plan. 
"(II) NOTICE OF NO DECISION.—With respect 
to any plan that cannot be approved or denied 
within the 15-day period required by subclause 
(I), the Administration shall within such period 
provide in accordance with subparagraph (E) 
notice to the company that submitted the plan. 
"(iii) ROUTINE ACTIONS.—In carrying out functions 
described in paragraph (1)(A), a qualified State or local 
development company may undertake routine actions 
not addressed in a liquidation plan without obtaining 
additional approval from the Administration. 
"(B) PURCHASE OF INDEBTEDNESS.— 
"(i) IN GENERAL.—In 
carrying out functions 
described in paragraph (1)(A), a qualified State or local 
development company shall submit to the Administra-
tion a request for written approval before committing 
the Administration to the purchase of any other indebt-
edness secured by the property securing a defaulted 
loan. 
"(ii) ADMINISTRATION ACTION ON REQUEST.— 
"(I) TIMING.—Not later than 15 business days 
after receiving a request under clause (i), the 
Administration shall approve or deny the request. 
. 
"(II) NOTICE OF NO DECISION.—With respect 
to any request that cannot be approved or denied 
within the 15-day period required by subclause 
(I), the Administration shall within such period 
provide in accordance with subparagraph (E) 
notice to the company that submitted the request. 
"(C) WORKOUT PLAN.— 
114 STAT. 2763A-688 
PUBLIC LAW 106-554—APPENDIX I 
"(i) IN GENERAL.—In 
carrying out functions 
described in paragraph (1)(C), a qualified State or local 
development company shall submit to the Administra-
tion a proposed workout plan. 
"(ii) ADMINISTRATION ACTION ON PLAN.— 
"(I) TIMING.—Not later than 15 business days 
after a workout plan is received by the Administra-
tion under clause (i), the Administration shall 
approve or reject the plan. 
"(II) NOTICE OF NO DECISION.—^With respect 
to any workout plan that cannot be approved or 
denied within the 15-day period required by sub-
clause (I), the Administration shall within such 
period provide in accordance with subparagraph 
(E) notice to the company that submitted the plan. 
"(D) COMPROMISE OF INDEBTEDNESS.—In carrying out 
functions described in paragraph (1)(A), a qualified State 
or local development company may— 
"(i) consider an offer made by an obligor to com-
promise the debt for less than the full amount owing; 
and 
"(ii) pursuant to such an offer, release any obligor 
or other party contingently liable, if the company 
secures the written approval of the Administration, 
"(E) CONTENTS OF NOTICE OF NO DECISION.—Any notice 
provided by the Administration 
under 
subparagraph 
(A)(ii)(II), (B)(ii)(II), or (C)(ii)(II)— 
"(i) shall be in writing; 
"(ii) shall state the specific reason for the Adminis-
tration's inability to act on a plan or request; 
"(iii) shall include an estimate of the additional 
time required by the Administration to act on the 
plan or request; and 
"(iv) if the Administration cannot act because 
insufficient information or documentation was provided 
by the company submitting the plan or request, shall 
specify the nature of such additional information or 
documentation. 
"(3) CONFLICT OF INTEREST.—In carrying out functions 
described in paragraph (1), a qualified State or local develop-
ment company shall take no action that would result in an 
actual or apparent conflict of interest between the company 
(or any employee of the company) and any third party lender, 
associate of a third party lender, or any other person participat-
ing in a liquidation, foreclosure, or loss mitigation action. 
"(d) SUSPENSION OR REVOCATION OF AUTHORITY.—^The Adminis-
tration may revoke or suspend a delegation of authority under 
this section to any qualified State or local development company, 
if the Administration determines that the company— 
"(1) does not meet the requirements of subsection (b)(1); 
"(2) has violated any applicable rule or regulation of the 
Administration or any other applicable law; or 
"(3) fails to comply with any reporting requirement that 
may be established by the Administration relating to carrying 
out of functions described in paragraph (1). 
"(e) REPORT.— 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-689 
"(1) IN GENERAL.—Based on information provided by quali-
fied State and local development companies and the Adminis-
tration, the Administration shall annually submit to the 
Committees on Small Business of the House of Representatives 
and of the Senate a report on the results of delegation of 
authority under this section. 
"(2) CONTENTS.—Each report submitted under paragraph 
(1) shall include the following information: 
"(A) With respect to each loan foreclosed or liquidated 
by a qualified State or local development company under 
this section, or for which losses were otherwise mitigated 
by the company pursuant to a workout plan under this 
section— 
"(i) the total cost of the project financed with the 
loan; 
"(ii) the total original dollar amount guaranteed 
by the Administration; 
"(iii) the total dollar amount of the loan at the 
time of liquidation, foreclosure, or mitigation of loss; 
"(iv) the total dollar losses resulting from the liq-
uidation, foreclosure, or mitigation of loss; and 
"(v) the total recoveries resulting from the liquida-
tion, foreclosure, or mitigation of loss, both as a 
percentage of the amount guaranteed and the total 
cost of the project financed. 
"(B) With respect to each qualified State or local 
development company to which authority is delegated 
under this section, the totals of each of the amounts 
described in clauses (i) through (v) of subparagraph (A). 
"(C) With respect to all loans subject to foreclosure, 
liquidation, or mitigation under this section, the totals 
of each of the amounts described in clauses (i) through 
(v) of subparagraph (A). 
"(D) A comparison between— 
"(i) the information provided under subparagraph 
(C) with respect to the 12-month period preceding the 
date on which the report is submitted; and 
"(ii) the same information with respect to loans 
foreclosed and liquidated, or otherwise treated, by the 
Administration during the same period. 
"(E) The number of times that the Administration has 
failed to approve or reject a liquidation plan in accordance 
with subparagraph (A)(i), a workout plan in accordance 
with subparagraph (C)(i), or to approve or deny a request 
for purchase of indebtedness under subparagraph (B)(i), 
including specific information regarding the reasons for 
the Administration's failure and any delays that resulted.". 
(b) REGULATIONS.— 
(1) IN GENERAL.—Not later than 150 days after the date 
of the enactment of this Act, the Administrator shall issue 
such regulations as may be necessary to carry out section 
510 of the Small Business Investment Act of 1958, as added 
by subsection (a) of this section. 
(2) TERMINATION OF PILOT PROGRAM.—Beginning on 
the 
date on which final regulations are issued under paragraph 
(1), section 204 of the Small Business Programs Improvement 
Act of 1996 (15 U.S.C. 695 note) shall cease to have effect. 
114 STAT. 2763A-690 
PUBLIC LAW 106-554—APPENDIX I 
TITLE 
IV—CORRECTIONS 
TO 
THE 
SMALL BUSINESS INVESTMENT ACT 
OF 1958 
SEC. 401. SHORT TITLE. 
This title may be cited as the "Small Business Investment 
Corrections Act of 2000". 
SEC. 402. DEFINITIONS. 
(a) SMALL BUSINESS CONCERN.—Section 103(5)(A)(i) of the 
Small Business Investment Act of 1958 (15 U.S.C. 662(5)(A)(i)) 
is amended by inserting before the semicolon at the end the follow-
ing: "regardless of the allocation of control during the investment 
period under any investment agreement between the business con-
cern and the entity making the investment". 
(b) LONG TERM.—Section 103 of the Small Business Investment 
Act of 1958 (15 U.S.C. 662) is amended— 
(1) in paragraph (15), by striking "and" at the end; 
(2) in paragraph (16), by striking the period at the end 
and inserting "; and"; and 
(3) by adding at the end the following: 
"(17) the term 'long term', when used in connection with 
equity capital or loan funds invested in any small business 
concern or smaller enterprise, means any period of time not 
less than 1 year.". 
SEC. 403. INVESTMENT IN SMALL BUSINESS INVESTMENT COMPANIES. 
Section 302(b) of the Small Business Investment Act of 1958 
(15 U.S.C. 682(b)) is amended— 
(1) by striking "(b) Notwithstanding" and inserting the 
following: 
"(b) FINANCIAL INSTITUTION INVESTMENTS.— 
"(1) CERTAIN BANKS.—^Notwithstanding"; and 
(2) by adding at the end the following: 
"(2) CERTAIN SAVINGS ASSOCIATIONS.—Notwithstanding any 
other provision of law, any Federal savings association may 
invest in any one or more small business investment companies, 
or in any entity established to invest solely in small business 
investment companies, except that in no event may the total 
amount of such investments by any such Federal savings 
association exceed 5 percent of the capital and surplus of the 
Federal savings association.". 
SEC. 404. SUBSIDY FEES. 
(a) DEBENTURES.—Section 303(b) of the Small Business Invest-
ment Act of 1958 (15 U.S.C. 683(b)) is amended by striking "plus 
an additional charge of 1 percent per annum which shall be paid 
to and retained by the Administration" and inserting "plus, for 
debentures obligated after September 30, 2000, an additional 
charge, in an amount established annually by the Administration, 
of not more than 1 percent per year as necessary to reduce to 
zero the cost (as defined in section 502 of the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661a)) to the Administration of 
purchasing and guaranteeing debentures under this Act, which 
shall be paid to and retained by the Administration". 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-691 
(b) PARTICIPATING SECURITIES.—Section 303(g)(2) of the Small 
Business Investment Act of 1958 (15 U.S.C. 683(g)(2)) is amended 
by striking "plus an additional charge of 1 percent per annum 
which shall be paid to and retained by the Administration" and 
inserting "plus, for participating securities obligated after Septem-
ber 30, 2000, an additional charge, in an amount established 
annually by the Administration, of not more than 1 percent per 
year as necessary to reduce to zero the cost (as defined in section 
502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) 
to the Administration of purchasing and guaranteeing participating 
securities under this Act, which shall be paid to and retained 
by the Administration". 
SEC. 405. DISTRIBUTIONS. 
Section 303(g)(8) of the Small Business Investment Act of 1958 
(15 U.S.C. 683(gX8)) is amended— 
(1) by striking "subchapter s corporation" and inserting 
"subchapter S corporation"; 
(2) by striking "the end of any calendar quarter based 
on a quarterly" and inserting "any time during any calendar 
quarter based on an"; and 
(3) by striking "quarterly distributions for a calendar year," 
and inserting "interim distributions for a calendar year,". 
SEC. 406. CONFORMING AMENDMENT. 
Section 310(c)(4) of the Small Business Investment Act of 1958 
(15 U.S.C. 687b(c)(4)) is amended by striking "five years" and insert-
ing "1 year". 
TITLE V—REAUTHORIZATION OF SMALL 
BUSINESS PROGRAMS 
SEC. 501. SHORT TITLE. 
This title may be cited as the "Small Business Programs 
Reauthorization Act of 2000". 
SEC. 502. REAUTHORIZATION OF SMALL BUSINESS PROGRAMS. 
Section 20 of the Small Business Act (15 U.S.C. 631 note) 
is amended by adding at the end the following: 
"(g) FISCAL YEAR 2001.— 
"(1) PROGRAM LEVELS.—^The following program levels are 
authorized for fiscal year 2001: 
"(A) For the programs authorized by this Act, the 
Administration is authorized to make— 
"(i) $45,000,000 in technical assistance grants as 
provided in section 7(m); and 
"(ii) $60,000,000 in direct loans, as provided in 
7(m). 
"(B) For the programs authorized by this Act, the 
Administration is authorized to make $19,050,000,000 in 
deferred participation loans and other financings. Of such 
sum, the Administration is authorized to make— 
i 
"(i) $14,500,000,000 in general business loans as 
provided in section 7(a); 
114 STAT. 2763A-692 
PUBLIC LAW 106-554—APPENDIX I 
"(ii) $4,000,000,000 in financings as provided in 
section 7(a)(13) of this Act and section 504 of the 
Small Business Investment Act of 1958; 
"(iii) $500,000,000 in loans as provided in section 
7(a)(21);and 
"(iv) $50,000,000 in loans as provided in section 
7(m). 
"(C) For the programs authorized by title III of the 
Small Business Investment Act of 1958, the Administration 
is authorized to make— 
"(i) $2,500,000,000 in purchases of participating 
securities: and 
"(ii) $1,500,000,000 in guarantees of debentures. 
"(D) For the pro-ams authorized by part B of title 
IV of the Small Business Investment Act of 1958, the 
Administration is authorized to enter into guarantees not 
to exceed $4,000,000,000 of which not more than 50 percent 
may be in bonds approved pursuant to section 411(a)(3) 
of that Act. 
"(E) The Administration is authorized to make grants 
or enter cooperative agreements for a total amount of 
$5,000,000 for the Service Corps of Retired Executives pro-
gram authorized by section 8(b)(1). 
"(2) ADDITIONAL AUTHORIZATIONS.— 
"(A) There are authorized to be appropriated to the 
Administration for fiscal year 2001 such sums as may 
be necessary to carry out the provisions of this Act not 
elsewhere provided for, including administrative expenses 
and necessary loan capital for disaster loans pursuant to 
section 7(b), and to carry out title IV of the Small Business 
Investment Act of 1958, including salaries and expenses 
of the Administration. 
"(B) Notwithstanding any other provision of this para-
graph, for fiscal year 2001— 
"(i) no funds are authorized to be used as loan 
capital for the loan program authorized by section 
7(a)(21) except by transfer from another Federal 
department or agency to the Administration, unless 
the program level authorized for general business loans 
under paragraph (l)(B)(i) is fully funded; and 
"(ii) the Administration may not approve loans 
on its own behalf or on behalf of any other Federal 
department or agency, by contract or otherwise, under 
terms and conditions other than those specifically 
authorized under this Act or the Small Business Invest-
ment Act of 1958, except that it may approve loans 
under section 7(a)(21) of this Act in gross amounts 
of not more than $1,250,000. 
"(h) FISCAL YEAR 2002.— 
"(1) PROGRAM LEVELS.—The following program levels are 
authorized for fiscal year 2002: 
"(A) For the programs authorized by this Act, the 
Administration is authorized to make— 
"(i) $60,000,000 in technical assistance grants as 
provided in section 7(m); and 
"(ii) $80,000,000 in direct loans, as provided in 
7(m). 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-693 
"(B) For the programs authorized by this Act, the 
Administration is authorized to m£ike $20,050,000,000 in 
deferred participation loans and other financings. Of such 
sum, the Administration is authorized to make— 
"(i) $15,000,000,000 in general business loans as 
provided in section 7(a); 
"(ii) $4,500,000,000 in financings as provided in 
section 7(a)(13) of this Act and section 504 of the 
Small Business Investment Act of 1958; 
"(iii) $500,000,000 in loans as provided in section 
7(a)(21); and 
"(iv) $50,000,000 in loans as provided in section 
7(m). 
"(C) For the programs authorized by title III of the 
Small Business Investment Act of 1958, the Administration 
is authorized to make— 
"(i) $3,500,000,000 in purchases of participating 
securities: and 
"(ii) $2,500,000,000 in guarantees of debentures. 
"(D) For the programs authorized by part B of title 
rV of the Small Business Investment Act of 1958, the 
Administration is authorized to enter into guarantees not 
to exceed $5,000,000,000 of which not more than 50 percent 
may be in bonds approved pursuant to section 411(a)(3) 
of that Act. 
"(E) The Administration is authorized to make grants 
or enter cooperative agreements for a total amount of 
$6,000,000 for the Service Corps of Retired Executives pro-
gram authorized by section 8(b)(1). 
"(2) ADDITIONAL AUTHORIZATIONS.— 
"(A) There are authorized to be appropriated to the 
Administration for fiscal year 2002 such sums as may 
- 
be necessary to carry out the provisions of this Act not 
elsewhere provided for, including administrative expenses 
and necessary loan capital for disaster loans pursuant to 
section 7(b), and to carry out title IV of the Small Business 
Investment Act of 1958, including salaries and expenses 
of the Administration. 
"(B) Notwithstanding any other provision of this para-
graph, for fiscal year 2002— 
"(i) no funds are authorized to be used as loan 
capital for the loan program authorized by section 
7(a)(21) except by transfer from another Federal 
department or agency to the Administration, unless 
the program level authorized for general business loans 
under paragraph (l)(B)(i) is fully funded; and 
"(ii) the Administration may not approve loans 
on its own behalf or on behalf of any other Federal 
department or agency, by contract or otherwise, under 
terms and conditions other than those specifically 
authorized under this Act or the Small Business Invest-
ment Act of 1958, except that it may approve loans 
under section 7(a)(21) of this Act in gross amoimts 
of not more than $1,250,000. 
"(i) FISCAL YEAR 2003.— 
"(1) PROGRAM LEVELS.—^The following program levels are 
authorized for fiscal year 2003: 
114 STAT. 2763A-694 
PUBLIC LAW 106-554—APPENDIX I 
"(A) For the programs authorized by this Act, the 
Administration is authorized to make— 
"(i) $70,000,000 in technical assistance grants as 
provided in section 7(m); and 
"(ii) $100,000,000 in direct loans, as provided in 
7(m). 
"(B) For the programs authorized by this Act, the 
Administration is authorized to make $21,550,000,000 in 
deferred participation loans and other financings. Of such 
sum, the Administration is authorized to make— 
"(i) $16,000,000,000 in general business loans as 
provided in section 7(a); 
"(ii) $5,000,000,000 in financings as provided in 
section 7(a)(13) of this Act and section 504 of the 
Small Business Investment Act of 1958; 
"(iii) $500,000,000 in loans as provided in section 
7(a)(21); and 
"(iv) $50,000,000 in loans as provided in section 
7(m). 
"(C) For the programs authorized by title III of the 
Small Business Investment Act of 1958, the Administration 
is authorized to make— 
"(i) $4,000,000,000 in purchases of participating 
securities; and 
"(ii) $3,000,000,000 in guarantees of debentures. 
"(D) For the programs authorized by part B of title 
IV of the Small Business Investment Act of 1958, the 
Administration is authorized to enter into guarantees not 
to exceed $6,000,000,000 of which not more than 50 percent 
may be in bonds approved pursuant to section 411(a)(3) 
of that Act. 
"(E) The Administration is authorized to make grants 
or enter into cooperative agreements for a total amount 
of $7,000,000 for the Service Corps of Retired Executives 
program authorized by section 8(b)(1). 
"(2) ADDITIONAL AUTHORIZATIONS.— 
"(A) There are authorized to be appropriated to the 
Administration for fiscal year 2003 such sums as may 
be necessary to carry out the provisions of this Act not 
elsewhere provided for, including administrative expenses 
and necessary loan capital for disaster loans pursuant to 
section 7(b), and to carry out title IV of the Small Business 
Investment Act of 1958, including salaries and expenses 
of the Administration. 
"(B) Notwithstanding any other provision of this para-
graph, for fiscal year 2003— 
"(i) no funds are authorized to be used as loan 
capital for the loan program authorized by section 
7(a)(21) except by transfer from another Federal 
department or agency to the Administration, unless 
the program level authorized for general business loans 
under paragraph (l)(B)(i) is fully funded; and 
"(ii) the Administration may not approve loans 
on its own behalf or on behalf of any other Federal 
department or agency, by contract or otherwise, under 
terms and conditions other than those specifically 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-695 
authorized under this Act or the Small Business Invest-
ment Act of 1958, except that it may approve loans 
under section 7(a)(21) of this Act in gross amounts 
of not more than $1,250,000.". 
SEC. 503. ADDITIONAL REAUTHORIZATIONS. 
(a) DRUG-FREE WORKPLACE PROGRAM.—Section 27 of the Small 
Business Act (15 U.S.C. 654) is amended— 
(1) in the section heading, by striking "DRUG-FREE WORK-
PLACE DEMONSTRATION PROGRAM" and inserting "PAUL D. 
COVERDELL DRUG-FREE WORKPLACE PROGRAM"; and 
(2) in subsection (g)(1), by striking "$10,000,000 for fiscal 
• 
years 1999 and 2000" and inserting "$5,000,000 for each of 
fiscal years 2001 through 2003". 
(b) HUBZONE PROGRAM.—Section 31 of the Small Business 
Act (15 U.S.C. 657a) is amended by adding at the end the following: 
"(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out the program established by this 
section $10,000,000 for each of fiscal years 2001 through 2003.". 
(c) VERY SMALL BUSINESS CONCERNS PROGRAM.—Section 304(i) 
of the Small Business Administration Reauthorization and Amend-
ments Act of 1994 (Public Law 103-403; 15 U.S.C. 644 note) is 
amended by striking "September 30, 2000" and inserting "Septem-
ber 30, 2003". 
(d) SOCIALLY AND ECONOMICALLY DISADVANTAGED BUSINESSES 
PROGRAM.—Section 7102(c) of the Federal Acquisition Streamlining 
Act of 1994 (Public Law 103-355; 15 U.S.C. 644 note) is amended 
by striking "September 30, 2000" and inserting "September 30, 
2003". 
(e) S B D C SERVICES.—Section 21(c)(3)(T) of the Small Business 
Act (15 U.S.C. 648(c)(3)(T)) is amended by striking "2000" and 
inserting "2003". 
SEC. 504. COSPONSORSHIP. 
(a) IN GENERAL.—Section 8(b)(1)(A) of the Small Business Act 
(15 U.S.C. 637(b)(1)(A)) is amended to read as follows: 
"(1)(A) to provide— 
"(i) technical, managerial, and informational aids to 
small business concerns— 
"(I) by advising and counseling on matters in 
connection with Grovemment procurement and policies, 
principles, and practices of good management; 
"(II) by cooperating and advising with— 
"(aa) voluntary business, professional, edu-
cational, 
and 
other 
nonprofit 
organizations, 
associations, and institutions (except that the 
Administration shall take such actions as it deter-
mines necessary to ensure that such cooperation 
does not constitute or imply an endorsement by 
the Administration of the organization or its prod-
ucts or services, and shall ensure that it receives 
appropriate recognition in all printed materials); 
and 
"(bb) other Federal and State agencies; 
"(III) by maintaining a clearinghouse for informa-
tion on managing, financing, and operating small busi-
ness enterprises; and 
114 STAT. 2763A-696 
PUBLIC LAW 106-554—APPENDIX I 
"(IV) by disseminating such information, including 
through recognition events, and by other activities that 
the Administration determines to be appropriate; and 
"(ii) through cooperation with a profit-making concern 
(referred to in this paragraph as a 'cosponsor'), training, 
information, and education to small business concerns, 
except that the Administration shall— 
"(I) take such actions as it determines to be appro-
priate to ensure that— 
"(aa) the Administration receives appropriate 
recognition and publicity; 
"(bb) the cooperation does not constitute or 
imply an endorsement by the Administration of 
any product or service of the cosponsor; 
"(cc) unnecessary promotion of the products 
or services of the cosponsor is avoided; and 
"(dd) utilization of any one cosponsor in a 
marketing area is minimized; and 
"(II) develop an agreement, executed on behalf of 
the Administration by an employee of the Administra-
tion in Washington, the District of Columbia, that pro-
vides, at a minimum, that— 
"(aa) any printed material to announce the 
cosponsorship 
or to be 
distributed 
at the 
cosponsored activity, shall be approved in advance 
by the Administration; 
"(bb) the terms and conditions of the coopera-
tion shall be specified; 
"(cc) only minimal charges may be imposed 
on any small business concern to cover the direct 
costs of providing the assistance; 
"(dd) the Administration may provide to the 
cosponsorship mailing labels, but not lists of names 
and addresses of small business concerns compiled 
by the Administration; 
"(ee) all printed materials containing the 
names of both the Administration 
and the 
cosponsor shall include a prominent disclaimer 
that the cooperation does not constitute or imply 
an endorsement by the Administration of any prod-
uct or service of the cosponsor; and 
"(ff) the Administration shall ensure that it 
receives appropriate recognition in all cosponsor-
ship printed materials.". 
(b) 
EXTENSION 
OF 
COSPONSORSHIP 
AUTHORITY.—Section 
401(a)(2) of the Small Business Administration Reauthorization 
and Amendments Act of 1994 (15 U.S.C. 637 note) is amended 
by striking "September 30, 2000" and inserting "September 30, 
2003". 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-697 
TITLE VI—HUBZONE PROGRAM 
Subtitle A—HUBZones in Native America 
SEC. 601. SHORT TITLE. 
This subtitle may be cited as the "HUBZones in Native America 
Act of 2000". 
SEC. 602. HUBZONE SMALL BUSINESS CONCERN. 
Section 3(p)(3) of the Small Business Act (15 U.S.C. 632(p)(3)) 
is amended to read as follows: 
"(3) 
HUBZONE 
SMALL 
BUSINESS 
CONCERN.—^The 
term 
'HUBZone small business concern' means— 
"(A) a small business concern that is owned and con-
trolled by one or more persons, each of whom is a United 
States citizen; 
"(B) a small business concern that is— 
"(i) an Alaska Native Corporation owned and con-
trolled by Natives (as determined pursuant to section 
29(e)(1) of the Alaska Native Claims Settlement Act 
(43 U.S.C. 1626(e)(1))); or 
"(ii) a direct or indirect subsidiary corporation, 
joint venture, or partnership of an Alaska Native Cor-
poration qualifying pursuant to section 29(e)(1) of the 
Alaska Native Claims Settlement Act (43 U.S.C. 
1626(e)(1)), if that subsidiary, joint venture, or partner-
ship is owned and controlled by Natives (as determined 
pursuant to section 29(e)(2)) of the Alaska Native 
Claims Settlement Act (43 U.S.C. 1626(e)(2))); or 
"(C) a small business concern— 
"(i) that is wholly owned by one or more Indian 
tribal governments, or by a corporation that is wholly 
owned by one or more Indian tribal governments; or 
"(ii) that is owned in part by one or more Indian 
tribal governments, or by a corporation that is wholly 
owned by one or more Indian tribal governments, if 
all other owners are either United States citizens or 
small business concerns.". 
SEC. 
603. 
QUALIFIED 
HUBZONE 
SMALL 
BUSINESS 
CONCERN. 
(a) IN GENERAL.—Section 3(p)(5)(A)(i) of the Small Business 
Act (15 U.S.C. 632(p)(5)(A)(i)) is amended by striking subclauses 
(I) and (II) and inserting the following: 
"(I) it is a HUBZone small business concern— 
"(aa) pursuant to subparagraph (A) or (B) 
of paragraph (3), and that its principal office 
is located in a HUBZone and not fewer than 
35 percent of its employees reside in a 
HUBZone; or 
"(bb) pursuant to paragraph (3)(C), and 
not fewer than 35 percent of its employees 
engaged in performing a contract awarded to 
the small business concern on the basis of 
a preference provided under section 31(b) 
reside within any Indian reservation governed 
79-194 O - 00 - 24 : QL 3 Part 5 
114 STAT. 2763A-698 
PUBLIC LAW 106-554—APPENDIX I 
by one or more of the tribal government own-
ers, or reside within any HUBZone adjoining 
any such Indian reservation; 
"(II) the small business concern will attempt 
to maintain the applicable employment percentage 
under subclause (I) during the performance of any 
contract awarded to the small business concern 
on the basis of a preference provided under section 
31(b); and". 
(b) CLARIFYING AMENDMENT.—Section 3(p)(5)(D)(i) of the Small 
Business Act (15 U.S.C. 632(p)(5)(D)(i)) is amended by inserting 
"once the Administrator has made the certification required by 
subparagraph (A)(i) regarding a qualified HUBZone small business 
concern and has determined that subparagraph (A)(ii) does not 
apply to that concern," before "include". 
SEC. 604. OTHER DEFINITIONS. 
Section 3(p) of the Small Business Act (15 U.S.C. 632(p)) is 
amended by adding at the end the following: 
"(6) NATIVE AMERICAN SMALL BUSINESS CONCERNS.— 
"(A) ALASKA NATIVE CORPORATION.—The term 'Alaska 
Native Corporation' has the same meaning as the term 
'Native Corporation' in section 3 of the Alaska Native 
Claims Settlement Act (43 U.S.C. 1602). 
"(B) ALASKA NATIVE VILLAGE.—^The term 'Alaska Native 
Village' has the same meaning as the term 'Native village' 
in section 3 of the Alaska Native Claims Settlement Act 
(43 U.S.C. 1602). 
"(C) 
lNDL\N 
RESERVATION.—The 
term 
'Indian 
reservation'— 
"(i) has the same meaning as the term 'Indian 
country' in section 1151 of title 18, United States Code, 
except that such term does not include— 
"(I) any lands that are located within a State 
in which a tribe did not exercise governmental 
jurisdiction on the date of the enactment of this 
paragraph, unless that tribe is recognized after 
that date of the enactment by either an Act of 
Congress or pursuant to regulations of the Sec-
retary of the Interior for the administrative rec-
ognition that an Indian group exists as an Indian 
tribe (part 83 of title 25, Code of Federal Regula-
tions); and 
"(II) lands taken into trust or acquired by 
an Indian tribe after the date of the enactment 
of this paragraph if such lands are not located 
within the external boundaries of an Indian res-
ervation or former reservation or are not contig-
uous to the lands held in trust or restricted status 
on that date of the enactment; and 
"(ii) in the State of Oklahoma, means lands that— 
"(I) are within the jurisdictional areas of an 
Oklahoma Indian tribe (as determined by the Sec-
retary of the Interior); and 
"(II) are recognized by the Secretary of the 
Interior as eligible for trust land status under 
part 151 of title 25, Code of Federal Regulations 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-699 
(as in effect on the date of the enactment of this 
paragraph).". 
Subtitle B—Other HUBZone Provisions 
SEC. 611. DEFINITIONS. 
(a) QUALIFIED CENSUS TRACT.—Section 3(p)(4)(A) of the Small 
Business Act (15 U.S.C. 632(p)(4)(A)) is amended by striking "(D". 
(b) QUALIFIED NONMETROPOLITAN COUNTY.—Section 3(p)(4) of 
the Small Business Act (15 U.S.C. 632(p)(4)) is amended by striking 
subparagraph (B) and inserting the following: 
"(B) QUALIFIED NONMETROPOLITAN COUNTY.—The term 
'qualified nonmetropolitan county* means any county— 
"(i) that was not located in a metropolitan statis-
tical area (as defined in section 143(k)(2)(B) of the 
Internal Revenue Code of 1986) at the time of the 
most recent census taken for purposes of selecting 
qualified census tracts under section 42(d)(5)(C)(ii) of 
the Internal Revenue Code of 1986; and 
"(ii) in which— 
"(I) the median household income is less than 
80 percent of the nonmetropolitan State median 
household income, based on the most recent data 
available from the Bureau of the Census of the 
Department of Commerce; or 
"(II) the unemployment rate is not less than 
140 percent of the Statewide average unemploy-
ment rate for the State in which the county is 
located, based on the most recent data available 
from the Secretary of Labor.". 
SEC. 612. ELIGIBLE CONTRACTS. 
(a) COMMODITIES CONTRACTS.—Section 31(b)(3) of the Small 
Business Act (15 U.S.C. 657a(b)(3)) is amended— 
(1) by striking "In any" and inserting the following: 
"(A) IN GENERAL.—Subject to subparagraph (B), in 
any; and 
(2) by adding at the end the following: 
"(B) PROCUREMENT OF COMMODITIES.—For purchases 
by the Secretary of Agriculture of agricultural commodities, 
the price evaluation preference shall be— 
"(i) 10 percent, for the portion of a contract to 
be awarded that is not greater than 25 percent of 
the total volume being procured for each commodity 
in a single invitation; 
"(ii) 5 percent, for the portion of a contract to 
be awarded that is greater than 25 percent, but not 
greater than 40 percent, of the total volume being 
procured for each commodity in a single invitation; 
and 
"(iii) zero, for the portion of a contract to be 
awarded that is greater than 40 percent of the total 
volume being procured for each commodity in a single 
invitation. 
"(C) TREATMENT OF PREFERENCE.—^A contract awarded 
to a HUBZone small business concern under a preference 
114 STAT. 2763A-700 
PUBLIC LAW 106-554—APPENDIX I 
described in subparagraph (B) shall not be counted toward 
the fulfillment of any requirement partially set aside for 
competition restricted to small business concerns.", 
(b) DEFINITIONS.—Section 3(p) of the Small Business Act (15 
U.S.C. 632(p)), as amended by this Act, is amended— 
(1) in paragraph (5)(A)(i)(III)— 
(A) in item (aa), by striking "and" at the end; and 
(B) by adding at the end the following: 
"(cc) in the case of a contract for the 
procurement by the Secretary of Agriculture 
of agricultural commodities, none of the 
commodity being procured will be obtained by 
the prime contractor through a subcontract 
for the purchase of the commodity in substan-
tially the final form in which it is to be sup-
plied to the Government; and"; and 
(2) by adding at the end the following: 
"(7) AGRICULTURAL COMMODITY.—The term 'agricultural 
commodity has the same meaning as in section 102 of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5602).". 
SEC. 
613. 
HUBZONE 
REDESIGNATED 
AREAS. 
Section 3(p) of the Small Business Act (15 U.S.C. 632(p)) is 
amended— 
(1) in paragraph (1)— 
(A) in subparagraph (B), by striking "or" at the end; 
(B) in subparagraph (C), by striking the period at 
the end and inserting "; or"; and 
(C) by adding at the end the following: 
"(D) redesignated areas."; and 
(2) in paragraph (4), by adding at the end the following: 
"(C) REDESIGNATED AREA.—The term 'redesignated 
area' means any census tract that ceases to be qualified 
under subparagraph (A) and any nonmetropolitan county 
that ceases to be qualified under subparagraph (B), except 
that a census tract or a nonmetropolitan county may be 
a 'redesignated area' only for the 3-year period following 
the date on which the census tract or nonmetropolitan 
county ceased to be so qualified.". 
SEC. 614, COMMUNITY DEVELOPMENT. 
Section 3(p) of the Small Business Act (15 U.S.C. 632(p)), 
as amended by this Act, is amended— 
(1) in paragraph (3)— 
(A) in subparagraph (B), by striking "or" at the end; 
(B) in subparagraph (C), by striking the period at 
the end and inserting "; or"; and 
(C) by adding at the end the following: 
"(D) a small business concern that is— 
"(i) wholly owned by a community development 
corporation that has received 
financial 
assistance 
under part 1 of subchapter A of the Community Eco-
nomic Development Act of 1981 (42 U.S.C. 9805 et 
seq.); or 
"(ii) owned in part by one or more community 
development corporations, if all other owners are either 
United States citizens or small business concerns."; 
and 
PUBLIC LAW 106-554r-APPENDIX I 
114 STAT. 2763A-701 
(2) in paragraph (5)(A)(i)(I)(aa), by striking "subparagraph 
(A) or (B)" and inserting "subparagraph (A), (B), or (D)". 
SEC. 615. REFERENCE CORRECTIONS. 
(a) SECTION 3.—Section 3(p)(5)(C) of the Small Business Act 
(15 U.S.C. 632(p)(5)(C)) is amended by striking "subclause (IV) 
and (V) of subparagraph (A)(i)" and inserting "items (aa) and (bb) 
of subparagraph (A)(i)(III)". 
(b) SECTION 8.—Section 8(d)(4)(D) of the Small Business Act 
(15 U.S.C. 637(d)(4)(D)) is amended by inserting 
"qualified 
HUBZone small business concerns," after "small business con-
cerns,". 
TITLE VII—NATIONAL WOMEN'S 
BUSINESS COUNCIL REAUTHORIZATION 
SEC. 701. SHORT TITLE. 
This title may be cited as the "National Women's Business 
Council Reauthorization Act of 2000". 
SEC. 702. MEMBERSHIP OF THE COUNCIL. 
Section 407 of the Women's Business Ownership Act of 1988 
(15 U.S.C. 631 note) is amended— 
(1) in subsection (a), by striking "Not later" and all that 
follows through "the President" and inserting "The President"; 
(2) in subsection (b)— 
(A) by striking "Not later" and all that follows through 
"the Administrator" and inserting "The Administrator"; and 
(B) by striking "the Assistant Administrator of the 
Office of Women's Business Ownership and"; 
(3) in subsection (d), by striking ", except that" and all 
that follows through the end of the subsection and inserting 
a period; and 
(4) in subsection (h), by striking "Not later" and all that 
follows through "the Administrator" and inserting "The 
Administrator". 
SEC. 
703. 
REPEAL 
OF 
PROCUREMENT 
PROJECT. 
Section 409 of the Women's Business Ownership Act of 1988 
(15 U.S.C. 631 note) is repealed. 
SEC. 
704. 
STUDIES 
AND 
OTHER 
RESEARCH. 
Section 410 of the Women's Business Ownership Act of 1988 
(15 U.S.C. 631 note) is amended to read as follows: 
-SEC. 
409. 
STUDIES 
AND 
OTHER 
RESEARCH. 
"(a) IN GENERAL.—The Council may conduct such studies and 
other research relating to the award of Federal prime contracts 
and subcontracts to women-owned businesses, to access to credit 
and investment capital by women entrepreneurs, or to other issues 
relating to women-owned businesses, as the Council determines 
to be appropriate. 
"(b) CONTRACT AUTHORITY.—In conducting any study or other 
research under this section, the Council may contract with one 
or more public or private entities.". 
114 STAT. 2763A-702 
PUBLIC LAW 106-554—APPENDIX I 
SEC. 705. AUTHORIZATION OF APPROPRIATIONS. 
Section 411 of the Women's Business Ownership Act of 1988 
(15 U.S.C. 631 note) is amended to read as follows: 
"SEC, 410. AUTHORIZATION OF APPROPRIATIONS. 
"(a) IN GENERAL.—There is authorized to be appropriated to 
carry out this title $1,000,000, for each of fiscal years 2001 through 
2003, of which $550,000 shall be available in each such fiscal 
year to carry out section 409. 
"(b) BUDGET REVIEW.—No amount made available under this 
section for any fiscal year may be obligated or expended by the 
Council before the date on which the Council reviews and approves 
the operating budget of the Council to carry out the responsibilities 
of the Council for that fiscal year.". 
TITLE VIII—MISCELLANEOUS 
PROVISIONS 
SEC. 801. LOAN APPLICATION PROCESSING. 
(a) STUDY.—The Administrator of the Small Business Adminis-
tration shall conduct a study to determine the average time that 
the Administration requires to process an application for each type 
of loan or loan guarantee made under the Small Business Act 
(15 U.S.C. 631 etseq.). 
(b) TRANSMITTAL.—Not later than 1 year after the date of 
the enactment of this Act, the Administrator shall transmit to 
Congress the results of the study conducted under subsection (a). 
SEC. 802. APPLICATION OF OWNERSHIP REQUIREMENTS. 
(a) SMALL BUSINESS ACT.—Section 7(a) of the Small Business 
Act (15 U.S.C. 636(a)) is amended by adding at the end the follow-
ing: 
"(30) 
OWNERSHIP 
REQUIREMENTS.—Ownership 
require-
ments to determine the eligibility of a small business concern 
that applies for assistance under any credit program under 
this Act shall be determined without regard to any ownership 
interest of a spouse arising solely from the application of the 
community property laws of a State for purposes of determining 
marital interests.". 
(b) SMALL BUSINESS INVESTMENT ACT OF 1958.—Section 502 
of the Small Business Investment Act of 1958 (15 U.S.C. 696) 
is amended by adding at the end the following: 
"(6) OWNERSHIP REQUIREMENTS.—Ownership requirements 
to determine the eligibility of a small business concern that 
applies for assistance under any credit program under this 
title shall be determined without regard to any ownership 
interest of a spouse arising solely from the application of the 
community property laws of a State for purposes of determining 
marital interests.". 
SEC. 
8
0
3
. 
SUBCONTRACTING 
PREFERENCE 
FOR 
VETERANS. 
Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is 
amended— 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-703 
(1) in paragraph (1), by inserting "small business concerns 
owned and controlled by veterans," after "small business con-
cerns," the first place that term appears in each of the first 
and second sentences; 
(2) in paragraph (3)— 
(A) in subparagraph (A), by inserting "small business 
concerns owned and controlled by service-disabled veter-
ans," after "small business concerns owned and controlled 
by veterans," in each of the first and second sentences; 
and 
(B) in subparagraph (F), by inserting "small business 
concern owned and controlled by service-disabled veterans," 
after "small business concern owned and controlled by vet-
erans,"; and 
(3) in each of paragraphs (4)(D), (4)(E), (6)(A), (6)(C), (6)(F), 
and (10)(B), by inserting "small business concerns owned and 
controlled by service-disabled veterans," after "small business 
concerns owned and controlled by veterans,". 
SEC. 804. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM FUND-
ING. 
(a) AUTHORIZATION.— 
(1) IN GENERAL.—Section 20(a)(1) of the Small Business 
Act (15 U.S.C. 631 note) is amended by striking "For fiscal 
year 1985" and all that follows through "expended." and insert-
ing the following: "For fiscal year 2000 and each fiscal year 
thereafter, there are authorized to be appropriated such sums 
as may be necessary and appropriate, to remain available until 
expended, and to be available solely— 
"(A) to carry out the Small Business Development Center 
Program imder section 21, but not to exceed the annual funding 
level, as specified in section 21(a); 
"(B) to pay the expenses of the National Small Business 
Development Center Advisory Board, as provided in section 
21(i); 
"(C) to pay the expenses of the information sharing system, 
as provided in section 21(c)(8); 
"(D) to pay the expenses of the association referred to 
in section 21(a)(3)(A) for conducting the certification program, 
as provided in section 21(k)(2); and 
"(E) to pay the expenses of the Administration, including 
salaries of examiners, for conducting examinations as part of 
the certification program conducted by the association referred 
to in section 21(a)(3)(A).". 
(2) TECHNICAL AMENDMENT.—Section 20(a) of the Small 
Business Act (15 U.S.C. 631 note) is amended by moving the 
margins of paragraphs (3) and (4), including subparagraphs 
(A) and (B) of paragraph (4), 2 ems to the left. 
(b) FUNDING FORMULA.—Section 21(a)(4)(C) of the Small Busi-
ness Act (15 U.S.C. 648(a)(4)(C)) is amended to read as follows: 
"(C) FUNDING FORMULA.— 
"(i) IN GENERAL.—Subject to clause (iii), the amount 
of a formula grant received by a State under this subpara-
graph shall be equal to an amount determined in accord-
ance with the following formula: 
"(I) The annual amount made available under sec-
tion 20(a) for the Small Business Development Center 
114 STAT. 2763A-704 
PUBLIC LAW 106-554—APPENDIX I 
Program, less any reductions made for expenses 
authorized by clause (v) of this subparagraph, shall 
be divided on a pro rata basis, based on the percentage 
of the population of each State, as compared to the 
population of the United States. 
"(II) If the pro rata amount calculated under sub-
clause (I) for any State is less than the minimum 
funding level under clause (iii), the Administration 
shall determine the aggregate amount necessary to 
achieve that minimum funding level for each such 
State. 
"(Ill) The aggregate amount calculated under sub-
clause (II) shall be deducted from the amount cal-
culated under subclause (I) for States eligible to receive 
more than the minimum fiinding level. The deductions 
shall be made on a pro rata basis, based on the popu-
lation of each such State, as compared to the total 
population of all such States. 
"(IV) The aggregate amount deducted under sub-
clause (III) shall be added to the grants of those States 
that are not eligible to receive more than the minimum 
funding level in order to achieve the minimum funding 
level for each such State, except that the eligible 
amount of a grant to any State shall not be reduced 
to an amount below the minimum funding level, 
"(ii) GRANT DETERMINATION.—The amount of a grant 
that a State is eligible to apply for under this subparagraph 
shall be the amount determined under clause (i), subject 
to any modifications required under clause (iii), and shall 
be based on the amount available for the fiscal year in 
which performance of the grant commences, but not includ-
ing amounts distributed in accordance with clause (iv). 
The amount of a grant received by a State under any 
provision of this subparagraph shall not exceed the amount 
of matching funds from sources other than the Federal 
Government, as required under subparagraph (A). 
"(iii) MINIMUM FUNDING LEVEL.—The amount of the 
minimum funding level for each State shall be determined 
for each fiscal year based on the amount made available 
for that fiscal year to carry out this section, as follows: 
"(I) If the amount made available is not less than 
$81,500,000 and not more than $90,000,000, the mini-
mum funding level shall be $500,000. 
"(II) If the amount made available is less than 
$81,500,000, the minimum funding level shall be the 
remainder of $500,000 minus a percentage of $500,000 
equal to the percentage amount by which the amount 
made available is less than $81,500,000. 
"(Ill) If the amount made available is more than 
$90,000,000, the minimum funding level shall be the 
sum of $500,000 plus a percentage of $500,000 equal 
to the percentage amount by which the amount made 
available exceeds $90,000,000. 
"(iv) DISTRIBUTIONS.—Subject to clause (iii), if any 
State does not apply for, or use, its full funding eligibility 
for a fiscal year, the Administration shall distribute the 
remaining funds as follows: 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-705 
"(I) If the grant to any State is less than the 
amount received by that State in fiscal year 2000, 
the Administration shall distribute such remaining 
funds, on a pro rata basis, based on the percentage 
of shortage of each such State, as compared to the 
total amount of such remaining funds available, to 
the extent necessary in order to increase the amount 
of the grant to the amount received by that State 
in fiscal year 2000, or until such funds are exhausted, 
whichever first occurs. 
"(11) If any funds remain after the application of 
subclause (I), the remaining amount may be distributed 
as supplemental grants to any State, as the Adminis-
tration determines, in its discretion, to be appropriate, 
after consultation with the association referred to in 
subsection (a)(3)(A). 
"(v) USE OF AMOUNTS.— 
"(I) IN GENERAL.—Of the amounts made available 
in any fiscal year to carry out this section— 
"(aa) not more than $500,000 may be used 
by the Administration to pay expenses enumerated 
in subparagraphs (B) through (D) of section 
20(a)(1); and 
"(bb) not more than $500,000 may be used 
by the Administration to pay the examination 
expenses enumerated in section 20(a)(1)(E). 
"(II) LIMITATION.—No funds described in subclause 
(I) may be used for examination expenses under section 
20(aXl)(E) if the usage would reduce the amount of 
grants made available under clause (i)(I) of this 
subparagraph to less than $85,000,000 (after excluding 
any amounts provided in appropriations Acts for spe-
cific institutions or for purposes other than the general 
small business development center program) or would 
further reduce the amount of such grants below such 
amount. 
"(vi) EXCLUSIONS.—Grants provided to a State by the 
Administration or another Federal agency to carry out 
subsection (a)(6) or (c)(3)(G), or for supplemental grants 
set forth in clause (iv)(II) of this subparagraph, shall not 
be included in the calculation of maximum funding for 
a State under clause (ii) of this subpsiragraph. 
"(vii) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this subpara-
graph $125,000,000 for each of fiscal years 2001, 2002, 
and 2003. 
"(viii) STATE DEFINED.—In this subparagraph, the term 
'State' means each of the several States, the District of 
Columbia, the Commonwealth of Puerto Rico, the Virgin 
Islands, Guam, and American Samoa.". 
SEC. 805. SURETY BONDS. 
(a) CONTRACT AMOUNTS.—Section 411 of the Small Business 
Investment Act of 1958 (15 U.S.C. 694b) is amended— 
(1) in subsection (a)(1), by striking "$1,250,000" and insert-
ing "$2,000,000"; and 
114 STAT. 2763A-706 
PUBLIC LAW 106-554—APPENDIX I 
(2) in subsection (e)(2), by striking "$1,250,000" and insert-
ing "$2,000,000". 
(b) EXTENSION OF CERTAIN AUTHORITY.—Section 207 of 
the 
Small Business Administration Reauthorization and Amendment 
Act of 1988 (15 U.S.C. 694b note) is amended by striking "2000" 
and inserting "2003". 
SEC. 806. SIZE STANDARDS. 
(a) INDUSTRY CLASSIFICATIONS.—Section 15(a) of the Small 
Business Act (15 U.S.C. 644(a)) is amended in the eighth sentence, 
by striking "four-digit standard" and all that follows through "pub-
lished" and inserting "definition of a 'United States industry' under 
the North American Industry Classification System, as established". 
(b) ANNUAL RECEIPTS.—Section 3(a)(1) of the Small Business 
Act (15 U.S.C. 632(a)(1)) is amended by striking "$500,000" and 
inserting "$750,000". 
SEC. 807. NATIVE HAWAIIAN ORGANIZATIONS UNDER SECTION 8(a). 
Section 8(a)(15)(A) of the Small Business Act (15 U.S.C. 
637(a)(15)(A)) is amended to read as follows: 
"(A) is a nonprofit corporation that has filed articles of 
incorporation with the director (or the designee thereof) of 
the Hawaii Department of Commerce and Consumer Affairs, 
or any successor agency,". 
SEC. 808. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORA-
TION CORRECTION. 
Section 33(k) of the Small Business Act (15 U.S.C. 657c(k)) 
is amended— 
(1) by striking paragraph (1) and inserting the following: 
"(1) IN GENERAL.—Subject to paragraph (2), there are 
authorized to be appropriated to the Corporation to carry out 
this section— 
"(A) $4,000,000 for fiscal year 2001; 
"(B) $4,000,000 for fiscal year 2002; 
"(C) $2,000,000 for fiscal year 2003; and 
"(D) $2,000,000 for fiscal year 2004."; 
(2) in paragraph (2)(A), by striking "2001" each place it 
appears and inserting "2002"; and 
(3) in paragraph (2)(B), by striking "2002 or 2003" and 
inserting "2003 or 2004". 
SEC. 809. PRIVATE SECTOR RESOURCES FOR SCORE. 
Section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 
637(b)(1)(B)) is amended by adding at the end the following: "Not-
withstanding any other provision of law, SCORE may solicit cash 
and in-kind contributions from the private sector to be used to 
carry out its functions under this Act, and may use payments 
made by the Administration pursuant to this subparagraph for 
such solicitation.". 
SEC. 
8
1
0
. 
CONTRACT 
DATA 
COLLECTION. 
Section 15 of the Small Business Act (15 U.S.C. 644) is amended 
by adding at the end the following new subsection: 
"(p) DATABASE, ANALYSIS, AND ANNUAL REPORT WITH RESPECT 
TO BUNDLED CONTRACTS.— 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-707 
"(1) BUNDLED CONTRACT DEFINED.—In this subsection, the 
term ^bundled contract' has the meaning given such term in 
section 3(o)(l). 
"(2) DATABASE.— 
"(A) IN GENERAL.—^Not later than 180 days after the 
date of the enactment of this subsection, the Administrator 
of the Small Business Administration shall develop and 
shall thereafter maintain a database containing data Eind 
, 
information regarding— 
"(i) each bundled contract awarded by a Federal 
agency; and 
"(ii) each small business concern that has been 
displaced as a prime contractor as a result of the 
award of such a contract. 
"(3) ANALYSIS.—For each bundled contract that is to be 
recompeted as a bundled contract, the Administrator shall 
determine— 
"(A) the amount of savings and benefits (in accordance 
with subsection (e)) achieved under the bundling of contract 
requirements; and 
"(B) whether such savings and benefits will continue 
to be realized if the contract remains bundled, and whether 
such savings and benefits would be greater if the procure-
ment requirements were divided into separate solicitations 
suitable for award to small business concerns. 
"(4) ANNUAL REPORT ON CONTRACT BUNDLING.— 
"(A) IN GENERAL.—Not later than 1 year after the 
date of the enactment of this paragraph, and annually 
in March thereafter, the Administration shall transmit a 
report on contract bundling to the Committees on Small 
Business of the House of Representatives and the Senate. 
"(B) 
CONTENTS.—Each 
report 
transmitted 
under 
subparagraph (A) shall include— 
"(i) data on the number, arranged by industrial 
classification, of small business concerns displaced as 
prime contractors as a result of the award of bundled 
contracts by Federal agencies; and 
"(ii) a description of the activities with respect 
to previously bundled contracts of each Federal agency 
during the preceding year, including— 
"(I) data on the number and total dollar 
amount of all contract requirements that were bun-
dled; and 
"(II) with respect to each bundled contract, 
data or information on— 
"(aa) the justification for the bundling of 
contract requirements; 
"(bb) the cost savings realized by bundling 
the contract requirements over the life of the 
contract; 
"(cc) the extent to which maintaining the 
bundled status of contract requirements is pro-
jected to result in continued cost savings; 
"(dd) the extent to which the bundling 
of contract requirements complied with the 
contracting 
agency's 
sm£dl business 
sub-
contracting plan, including the total dollar 
114 STAT. 2763A-708 
PUBLIC LAW 106-554^APPENDIX I 
value awarded to small business concerns as 
subcontractors and the total dollar value pre-
viously awarded to small business concerns 
as prime contractors; and 
"(ee) the impact of the bundling of contract 
requirements on small business 
concerns 
unable to compete as prime contractors for 
the consolidated requirements and on the 
industries of such small business concerns, 
including a description of any changes to the 
proportion of any such industry that is com-
posed of small business concerns. 
"(5) ACCESS TO DATA.— 
"(A) FEDERAL PROCUREMENT DATA SYSTEM.—TO assist 
in the implementation of this section, the Administration 
shall have access to information collected through the Fed-
eral Procurement Data System. 
"(B) AGENCY PROCUREMENT DATA SOURCES.—To assist 
in the implementation of this section, the head of each 
contracting agency shall provide, upon request of the 
Administration, procurement information collected through 
existing agency data collection sources.". 
SEC. 811. PROCUREMENT PROGRAM FOR WOMEN-OWNED SMALL BUSI-
NESS CONCERNS. 
Section 8 of the Small Business Act (15 U.S.C. 637) is amended 
by adding at the end the following: 
"(m) PROCUREMENT PROGRAM FOR WOMEN-OWNED SMALL BUSI-
NESS CONCERNS.— 
"(1) DEFINITIONS.—In this subsection, the following defini-
tions apply: 
"(A) CONTRACTING OFFICER.—The term 'contracting 
officer' has the meaning given such term in section 27(f)(5) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 
423(f)(5)). 
"(B) 
SMALL BUSINESS 
CONCERN OWNED AND CON-
TROLLED B
Y WOMEN.—The term 'small business concern 
owned and controlled by women' has the meaning given 
such term in section 3(n), except that ownership shall 
be determined without regard to any community property 
law. 
"(2) AUTHORITY TO RESTRICT COMPETITION.—In accordance 
with this subsection, a contracting officer may restrict competi-
tion for any contract for the procurement of goods or services 
by the Federal Government to small business concerns owned 
and controlled by women, if— 
"(A) each of the concerns is not less than 51 percent 
owned by one or more women who are economically dis-
advantaged (and such ownership is determined without 
regard to any community property law); 
"(B) the contracting officer has a reasonable expecta-
tion that two or more small business concerns owned and 
controlled by women will submit offers for the contract; 
"(C) the contract is for the procurement of goods or 
services with respect to an industry identified by the 
Administrator pursuant to paragraph (3); 
PUBLIC LAW 106-554—APPENDIX I 
114 STAT. 2763A-709 
"(D) the anticipated award price of the contract (includ-
ing options) does not exceed— 
"(i) $5,000,000, in the case of a contract assigned 
an industrial classification code for manufacturing; or 
"(ii) $3,000,000, in the case of all other contracts; 
"(E) in the estimation of the contracting officer, the 
contract award can be made at a fair and reasonable price; 
and 
"(F) each of the concerns— 
"(i) is certified by a Federal agency, a State govern-
ment, or a national certifying entity approved by the 
Administrator, as a small business concern owned and 
controlled by women; or 
"(ii) certifies to the contracting officer that it is 
a small business concern owned and controlled by 
women and provides adequate documentation, in 
accordance with standards established by the Adminis-
tration, to support such certification. 
"(3) WAIVER.—^With respect to a small business concern 
owned and controlled by women, the Administrator may waive 
subparagraph (2)(A) if the Administrator determines that the 
concern is in an industry in which small business concerns 
owned and controlled by women are substantially underrep-
resented. 
"(4) IDENTIFICATION OF INDUSTRIES.—^The Administrator 
shall conduct a study to identify industries in which small 
business concerns owned and controlled by women are under-
represented with respect to Federal procurement contracting. 
"(5) ENFORCEMENT; PENALTIES.— 
"(A) VERIFICATION OF ELIGIBILITY.—In carrying out this 
subsection, the Administrator shall establish procedures 
relating to— 
"(i) the filing, investigation, and disposition by the 
Administration of any challenge to the eligibility of 
a small business concern to receive assistance under 
this subsection (including a challenge, filed by an 
interested party, relating to the veracity of a certifi-
cation made or information provided to the Administra-
tion by a small business concern under paragraph 
(2)(F)); and 
"(ii) verification by the Administrator of the 
accuracy of any certification made or information pro-
vided to the Administration by a small business con-
cern imder paragraph (2)(F). 
"(B) EXAMINATIONS.—The procedures established under 
subparagraph (A) may provide for program examinations 
(including random program examinations) by the Adminis-
trator of any small business concern making a certification 
or providing information to the Administrator imder para-
graph (2)(F). 
"(C) PENALTIES.—In addition to the penalties described 
in section 16(d), any small business concern that is deter-
mined by the Administrator to have misrepresented the 
status of that concern as a small business concern owned 
and controlled by women for purposes of this subsection, 
shall be subject to— 
114 STAT. 2763A-710 
PUBLIC LAW 106-554—APPENDIX I 
"(i) section 1001 of title 18, United States Code; 
and 
"(ii) sections 3729 through 3733 of title 31, United 
States Code. 
"(6) PROVISION OF DATA.—Upon the request of the Adminis-
trator, the head of any Federal department or agency shall 
promptly provide to the Administrator such information as 
the Administrator determines to be necessary to carry out 
this subsection.".