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Question: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Space Tourism Promotion Act of
2001''.

SEC. 2. FINDINGS.

The Congress finds that--
(1) humans have long had a yearning to travel in space and
experience conditions beyond Earth's atmosphere;
(2) forty years of human space flight experience have
demonstrated the feasibility of safe travel to and from space
as well as the ability of humans to live and work in space;
(3) the Nation's human space flight program has developed
technologies and operational procedures that the private sector
could make use of to enable American citizens to experience
space travel;
(4) space tourism has the potential to become a significant
industry and a powerful stimulus for advances in space
transportation;
(5) the Federal Government could play an important role in
stimulating the development of space tourism by means of
guaranteed loans, tax credits, expeditious establishment of a
straightforward and predictable regulatory structure, and
research and development in technologies that may enable the
private sector to develop operational passenger-carrying space
transportation systems and on-orbit habitations;
(6) as the agency of the Federal Government primarily
responsible for the development of America's commercial sector,
the Department of Commerce, and in particular its Office of
Space Commercialization, should have the lead role in
encouraging the growth of space tourism;
(7) as the agency of the Federal Government currently
responsible for regulating America's commercial space
transportation industry, the Federal Aviation Administration,
and in particular its Office of Commercial Space
Transportation, should have the lead role in establishing the
regulatory structure necessary to ensure the safety of United
States space tourism;
(8) as the agency of the Federal Government responsible for
carrying out the major share of the Nation's civil space
activities, the National Aeronautics and Space Administration
should continue its traditional role of conducting research and
development related to new space technologies and systems and
facilitating their transfer to the private sector;
(9) it is an appropriate role for the Federal Government to
undertake measures to encourage the development of space
tourism in the United States; and
(10) at the same time, it is an inappropriate role and a
misallocation of taxpayer-provided resources for the Federal
Government to compete with the private sector in the provision
of transportation vehicles or facilities for space tourism.

SEC. 3. DEFINITIONS.

In this Act--
(1) terms that are defined in the Federal Credit Reform Act
of 1990 have the meaning given those terms in that Act; and
(2) the term ''space tourism'' means travel to, from, or
within outer space, or to the surface of a body in space other
than Earth, or habitation in outer space, for the purpose of
recreation.

SEC. 4. LOAN GUARANTEES.

(a) Authority.--
(1) In general.--The Secretary of Commerce may guarantee up
to 85 percent of the value of loans for the purpose of
developing transportation systems, habitation facilities, or
other infrastructure required for space tourism.
(2) Limitation.--The maximum aggregate amount of loan
commitments that may be guaranteed under this section by the
Secretary of Commerce at any one time shall be $2,000,000,000.
(3) Administrative fee.--The Secretary of Commerce is
authorized to collect from any borrower, and to the extent
provided for in advance in appropriations Acts to use, an
amount not to exceed 0.5 percent of the amount borrowed, for
covering the administrative expenses and other annual costs to
the Department of Commerce of the loan guarantee.
(b) Terms and Conditions.--A loan guaranteed under this section
shall be on such terms and conditions as the Secretary of Commerce may
prescribe.
(c) Term of Loans.--Loans guaranteed under this section shall be
for a term of not to exceed 20 years, or 100 percent of the useful life
of the substantial portion of the physical assets to be financed by the
loans, whichever is shorter, as determined by the Secretary of
Commerce.
(d) Lien on Interests in Assets.--Upon providing a loan guarantee
to a borrower under this section, the Secretary of Commerce shall have
liens which shall be superior to all other liens on assets of the
borrower equal to 85 percent of the unpaid balance of the loan subject
to the guarantee.
(e) Protection.--No loan shall be guaranteed under this section
unless the Secretary of Commerce determines that the borrower is
responsible and that adequate provision is made for servicing the loan
on reasonable terms and for protecting the interests of the United
States.
(f) Validity.--A loan guarantee under this section shall be
conclusive evidence that such guarantee has been properly obtained, and
that the underlying loan qualifies for such guarantee. In an action for
fraud or material misrepresentation by the holder of a loan guaranteed
under this section, such guarantee shall be presumed to be valid,
legal, and enforceable.
(g) Forbearance.--The Secretary of Commerce may approve an
agreement, between the parties to a loan guaranteed under this section,
that provides for forbearance for the benefit of the borrower if the
forbearance will result in no cost to the Federal Government.
(h) Administration and Oversight Responsibility.--The Office of
Space Commercialization shall be responsible for the administration and
oversight of this section on behalf of the Department of Commerce.

SEC. 5. CAPITAL GAINS EXCLUSION.

(a) In General.--Part I of subchapter P of chapter 1 of the
Internal Revenue Code of 1986 (relating to items specifically excluded
from gross income) is amended by adding at the end the following new
section:

''SEC. 1203. EXCLUSION OF GAINS FOR QUALIFIED SPACE TOURISM
CORPORATIONS.

''(a) In General.--Gross income shall not include gain on the sale
or exchange of any stock of a qualified space tourism corporation held
for more than one year.
''(b) Qualified Space Tourism Corporation.--For purposes of
subsection (a), the term 'qualified space tourism corporation' means,
with respect to any taxable year, a domestic corporation which is a C
corporation if--
''(1) such corporation is organized exclusively for
providing to unrelated persons any service of space tourism (as
defined in section 3 of the Space Tourism Promotion Act of
2001), and
''(2) such corporation derives at least 75 percent of its
gross receipts from the active conduct of a trade or business
of providing a service described in paragraph (1).
''(c) Certain Purchases by Corporations of Its Own Stock.--For
purposes of this section, rules similar to the rules of section
1202(c)(3) shall apply.
''(d) Related Person.--Persons shall be treated as related to each
other if such persons would be treated as a single employer under the
regulations prescribed under section 52(b). In the case of a
corporation which is a member of an affiliated group of corporations
filing a consolidated return, such corporation shall be treated as
providing services related to space tourism to an unrelated person if
such services are provided to such a person by another member of such
group.
''(e) Termination.--This section shall not apply to sales or
exchanges after December 31, 2011.''.
(b) Clerical Amendment.--The table of sections for part I of
subchapter P of such Code is amended by adding at the end the following
new item:

''Sec. 1203. Exclusion of gains for
qualified space tourism
corporations.''
(c) Effective Date.--The amendments made by this section shall
apply to sales and exchanges in taxable years beginning after December
31, 2001.

SEC. 6. ESTABLISHMENT OF REGULATORY STANDARDS.

(a) In General.--Not later than 2 years after the date of the
enactment of this Act, the Secretary of Transportation shall issue
regulations to govern--
(1) activities necessary to ensure the safe operation of
passenger-carrying launch and reentry vehicles and spacecraft
for space tourism, to the extent to which regulatory procedures
have not previously been established by law; and
(2) activities related to the provision of and safe
operation of habitable facilities in outer space for space
tourism purposes.
(b) Orbital Debris Avoidance.--Not later than 2 years after the
date of the enactment of this Act, the Secretary of Transportation
shall issue regulations to prevent, to the extent practicable, the
growth of orbital debris resulting from activities associated with
space tourism.
(c) Legal Regime.--Activities taking place on space tourism
habitation facilities and passenger-carrying launch and reentry
vehicles and spacecraft for space tourism licensed or otherwise
regulated by the Secretary of Transportation shall be governed by the
laws of the United States.

SEC. 7. USE OF FEDERAL FACILITIES.

(a) Prohibition Against Certain Uses of Federal Facilities.--
(1) In general.--Launch, reentry, and space travel vehicles
owned by the Federal Government shall not be used for the
transport of any individuals other than those engaged in or
supporting the conduct of official business of the United
States or the conduct of scientific or engineering research and
development, except in emergency situations.
(2) International space station.--The United States portion
of the International Space Station shall not be visited or
occupied by any individuals other than those engaged in or
supporting the conduct of official business of the United
States or the conduct of scientific or engineering research and
development, and those authorized by relevant international
agreements, except in emergency situations.
(b) Use of Other Federal Facilities.--The use of other Federal
facilities and infrastructure, such as launch ranges and data relay
satellites, shall be made available to commercial entities engaged in
space tourism on a cost-reimbursable basis to the extent that excess
capacity exists at the time the commercial entity requests the use of
such facilities and infrastructure.

Answer: Space Tourism Promotion Act of 2001 - Authorizes the Secretary of Commerce to guarantee up to 85 percent of the value of loans for developing transportation systems, habitation facilities, or other infrastructure required for space tourism.Amends the Internal Revenue Code of 1986 to exclude from gross income gain on the sale or exchange of any stock of a qualified space tourism corporation held for more than a year.Requires the Secretary of Transportation to issue regulations to: (1) govern activities necessary to ensure the safe operation of passenger-carrying launch and reentry vehicles and spacecraft for space tourism and activities related to the provision and safe operation of habitable facilities in outer space for space tourism; and (2) prevent the growth of orbital debris resulting from activities associated with space tourism.Prohibits: (1) the use of launch, reentry, and space travel vehicles owned by the Government for the transport of any individuals other than those engaged in or supporting the conduct of official business or scientific or engineering research and development (R&D), except in emergencies; and (2) the U.S. portion of the International Space Station from being visited or occupied by any individuals other than those engaged in or supporting the conduct of such business or R&D and those authorized by relevant international agreements, except in emergencies.Requires the use of other Federal facilities and infrastructure, such as launch ranges and data relay satellites, to be made available to commercial entities engaged in space tourism on a cost-reimbursable basis to the extent that excess capacity exists.

Question: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Alaska Federal Lands Management
Demonstration Project''.

SEC. 2. CONGRESSIONAL FINDINGS; PURPOSES.

(a) Findings.--Congress finds and declares the following:
(1) The Alaska National Interest Lands Conservation Act (16
U.S.C. 3101 et seq.) established new and expanded units of the
National Park System and the National Wildlife System in many
areas of Alaska. The purposes of these conservation system
units were, among other purposes, to protect habitat for fish
and wildlife, to conserve fish and wildlife populations in
their natural state, to provide continued opportunity for
subsistence uses by local residents, and to protect
archaeological sites associated with Native cultures.
(2) Many rural Alaskan communities are in close proximity
to conservation system lands, and the purposes of these units
are uniquely relevant to the culture and ways of Native
Alaskans and other residents of rural Alaskan communities.
Congress recognized this close relationship in sections 1306,
1307 and 1308 of the Alaska National Interest Lands
Conservation Act, which directed the Secretary of Interior to
establish programs whereby Native lands were given preference
for the siting of conservation service unit facilities, Native
corporations and local residents were given preference for the
provision of visitor services, and local residents were given
preferences for employment. Despite these provisions, little
progress has been made in increasing related employment
opportunities for Native Alaskan and other local residents.
(3) In much of rural Alaska, Indian tribes and tribal
organizations have a long history of contracting to operate
Federal programs and provide Federal services to resident
Alaskan Natives and have demonstrated the capacity to provide
other kinds of Federal programs and services.
(b) Purposes.--The purposes of this demonstration project are to
design innovative management strategies that will lead to greater
efficiency in conservation system unit management, expand Native
contracting opportunities, increase local employment, and further the
unique purposes of these units as they relate to subsistence practices,
Alaska Native cultures, and the preservation of fish and wildlife
habitat and populations.

SEC. 3. AUTHORIZATION OF DEMONSTRATION PROJECT.

The Secretary of the Interior shall, for a period not to exceed 5
years following the date of the enactment of this Act, conduct an
Alaska Federal Lands Management Demonstration Project.

SEC. 4. ALASKA FEDERAL LANDS MANAGEMENT DEMONSTRATION PROJECT.

(a) Participation.--The Secretary shall select, upon request and in
a manner to achieve geographic representation, not less than 6 eligible
Alaska Native tribes or tribal organizations per year to participate in
the Demonstration Project in fiscal years 2000 and 2001.
(b) Eligibility.--To be eligible to participate in the
Demonstration Project, each Indian tribe or tribal organization shall--
(1) request participation by resolution or other official
action of the governing body of the tribal organization;
(2) demonstrate financial and management stability and
capability;
(3) demonstrate significant use of or dependency upon the
relevant conservation system unit or other public land unit for
which programs, functions, services, and activities are
requested to be placed under contract;
(4) where the Secretary receives a request to contract
specific conservation system unit programs, services,
functions, and activities, or portions thereof, from more than
1 Indian tribe or tribal organization meeting the criteria set
forth in paragraphs (1) through (3), the Secretary shall apply
the priority selection criteria applied by the Juneau Area
Bureau of Indian Affairs for contracting pursuant to the Indian
Self-Determination and Education Assistance Act. If, after
applying such criteria, there remains more than one eligible
participant and such participants have overlapping requests to
negotiate and contract for the same programs, services,
functions, and activities, or portions thereof, the Secretary
may require such Indian tribes or organizations to agree which
entity shall have the ability to contract, or to submit a joint
request prior to entering into negotiations.
(c) Contracts.--
(1) In general.--Upon request, the Secretary shall
negotiate and enter into a contract with each participating
Indian tribe or tribal organization to plan, conduct and
administer requested programs, services, functions and
activities, or portions thereof, related to the administration
of a conservation system unit or other public land unit that is
substantially located within the geographic region of the
respective Indian tribe or tribal organization.
(2) Technical support.--Contracts authorized by this Act
shall include, at the request of the Indian tribe or tribal
organization, the operation and support of the regional
advisory councils, biological research, harvest monitoring, and other
technical research related to conservation and allocation actions by
the regional councils, and such other programs, functions, services,
and activities reasonably necessary to carry out title VIII of the
Alaska National Interests Lands Conservation Act.
(3) Time limitation for negotiation of contracts.--Not
later than 90 days after selection by the Secretary of
participating Indian tribes or tribal organizations, the
Secretary shall initiate and conclude negotiations, unless an
alternative negotiation and implementation schedule is
otherwise mutually agreed to by the parties. The declination
and appeals provisions of the Indian Self-Determination and
Education Assistance Act, including section 110 of such Act,
shall apply to contracts and agreements requested and
negotiated under this Act.
(d) Contract Administration.--
(1) Inclusion of certain terms.--At the request of the
contracting Indian tribe or tribal organization, the benefits,
privileges, terms, and conditions of agreements entered into
pursuant to titles I and IV of the Indian Self-Determination
and Education Assistance Act shall be available for inclusion
in a contract entered into under this Act. If any provisions of
the Indian Self-Determination and Education Assistance Act are
incorporated they shall have the same force and effect as if
set out in full in this Act and shall apply notwithstanding any
other provision of law. The parties may include such other
terms and conditions as are mutually agreed to and not
otherwise contrary to law.
(2) Audit.--Contracts entered into under this Act shall
provide for a single-agency audit report to be filed as
required by chapter 75 of title 31, United States Code.
(3) Transfer of employees.--Any career Federal employee
employed at the time of the transfer of an operation or program
to an Indian tribe or tribal organization shall not be
separated from Federal service by such transfer.
Intergovernmental Personnel Actions may be used to transfer
supervision of such employees to the contracting Indian tribe
or tribal organization. Such transferred employees shall be
given priority placement for any available position within
their respective agency, notwithstanding any priority
reemployment lists, directives, rules, regulations or other
orders from the Department of the Interior, the Office of
Management and Budget, or other Federal agencies.
(e) Available Funding; Payment.--Under the terms of a contract
negotiated pursuant to subsection (a), the Secretary shall provide each
Indian tribe or tribal organization funds in an amount not less than
the Secretary would have otherwise provided for the operation of the
requested programs, services, functions, and activities. Contracts
entered into under this Act shall provide for advance payments to the
tribal organizations in the form of annual or semiannual installments.
(f) Timing.--Indian tribes and tribal organizations selected to
participate shall be entitled to begin implementation of any requested
contracts no later than the first fiscal year following the year in
which the Indian tribe or tribal organization is selected for
participation, unless the Indian tribe or tribal organization and the
Secretary, by mutual agreement, shall agree to an alternate
implementation schedule.
(g) Report.--Not later than 90 days after the close of fiscal years
2000 and 2001 and the end of this Demonstration Project, the Secretary
shall present to the Congress detailed reports, including a narrative,
findings, and conclusions on the costs and benefits of the
Demonstration Project. The reports shall identify remaining
institutional and legal barriers to the contracting of conservation
system unit management to Alaska Native entities and shall contain
suggestions for improving, continuing, and expanding the Demonstration
Project. The reports shall be authored jointly with, and shall include
the separate views of, all participating Alaska Native tribes and
tribal organizations.
(h) Limitations.--
(1) Revenue producing visitor services.--Contracts
authorized under this Act shall not include revenue producing
visitor services unless an agreement is reached with the most
directly affected Alaskan Native corporations to allow such
services to be included in the contract. Such contracts shall
not otherwise repeal, alter, or otherwise modify the any other
existing provision of sections 1307 and 1308 of the Alaska
National Interests Lands Conservation Act.
(2) Denali national park.--The Denali National Park shall
not be subject to any of the provisions of this Act.
(i) Grants.--
(1) In general.--Upon application, the Secretary shall
award a planning grant in the amount of $100,000 to any
participating Alaska Native tribe or tribal organization to
plan for the contracting of programs, functions, services, and
activities authorized under this Act.
(2) Authorization of appropriations.--There is authorized
to be appropriated $600,000 in each of the 2 fiscal years
immediately following the date of the enactment of this Act to
fund planning grants authorized under this subsection.

SEC. 5. ANILCA SECTION 1307 AND 1308 IMPLEMENTATION PROGRESS REPORT.

(a) Report Required.--Not later than 6 months after the date of the
enactment of this Act, the Secretary shall transmit to the Committee on
Energy and Natural Resources of the United States Senate and the
Committee on Resources of the United States House of Representatives a
report detailing the progress that the Department of the Interior has
made in the implementation of the provisions of sections 1307 and 1308
of the Alaska National Interests Lands Conservation Act. The report
shall--
(1) include a detailed action plan on the future
implementation of the provisions of sections 1307 and 1308 of
that Act;
(2) describe in detail the measures and actions that will
be taken to implement such sections, along with a description
of the anticipated results to be achieved during the 3 fiscal
years following the submission of the report;
(3) address any laws, rules, regulations, and policies
which limit or deter the goal of Alaska Native hiring or
contracting to perform and conduct activities and programs of
Department agencies and bureaus other than those currently
available through the Bureau of Indian Affairs.
(b) Funding.--The report required under subsection (a) shall be
completed within existing appropriations.

SEC. 6. DEFINITIONS.--

For the purposes of this Act:
(1) Conservation system unit.--The term ''conservation
system unit'' shall have the meaning given that term in section
102(4) of the Alaska National Interest Lands Conservation Act.
(2) Indian tribe.--The term ''Indian tribe'' shall have the
meaning given that term in subsection 4(e) of the Indian Self-
Determination and Education Assistance Act.
(3) Secretary.--The term ''Secretary'' means the Secretary
of the Interior.
(4) Tribal organization.--The term ''tribal organization''
shall have the meaning given that term in subsection 4(l) of
the Indian Self-Determination and Education Assistance Act.

Answer: Requires the Secretary to: (1) select not less than six eligible Alaska Native tribes or tribal organizations per year to participate in the Project in FY 2000 and 2001; and (2) negotiate and enter into a contract with each participant to plan, conduct, and administer requested programs and services related to the administration of a conservation system unit or other public land unit substantially located within the respective Indian tribe's or tribal organization's geographic region.
Requires contracts to include, at the participant's request, the operation and support of the regional advisory councils, biological research, harvest monitoring, and other technical research related to conservation and allocation actions by the regional councils and such other programs and services reasonably necessary to carry out title VIII of the Alaska National Interests Lands Conservation Act (ANILCA). Makes available the benefits, privileges, terms, and conditions of agreements entered into pursuant to titles I and IV of the Indian Self-Determination and Education Assistance Act for inclusion in the contract, at the request of the contracting tribe or tribal organization.
Prohibits the separation of any career Federal employee employed at the time of the transfer of an operation or program from Federal service to a tribe or tribal organization. Directs the Secretary to provide each tribe or tribal organization funds that would have otherwise been provided for the operation of the requested programs and services.
Specifies that contracts shall not include revenue producing visitor services unless an agreement is reached with the most directly affected Alaska Native corporations.
Exempts Denali National Park from the provisions of this Act.
Requires the Secretary, upon application, to award a planning grant to any participating Alaska Native tribe or tribal organization to plan for the contracting of programs and services authorized under this Act.
Authorizes appropriations.
Requires transmittal by the Secretary to the appropriate congressional committees of a report on the progress that the Department of the Interior has made in the implementation of ANILCA provisions concerning: (1) the continuation of existing visitor services in areas established as or added to a conservation system unit; and (2) establishment of a program for hiring individuals who, by reason of having lived or worked in or near public lands, have special knowledge or expertise concerning the natural or cultural resources of public lands, without regard to certain civil service training requirements, employment preferences, or numerical limitations.

Question: SECTION 1. FINDINGS.

The Congress finds the following:
(1) The President has proposed a multibillion dollar
reconstruction project for Iraq.
(2) The President's plan includes resources to rebuild
potable water and wastewater treatment facilities; schools and
health facilities; ports and airports; the electric power
system, roads, and bridges; railroad infrastructure; solid
waste management services; irrigation systems; and selected
local government buildings.
(3) State and local governments in the United States have
their own unmet infrastructure and social services needs.
(4) State and local governments represent a significant
segment of the national economy whose economic health is
essential to national economic prosperity.
(5) Present national economic problems have imposed
considerable hardships on State and local government budgets.
(6) Those governments, because of their own fiscal
difficulties, are being forced to take budget-related actions
which tend to undermine Federal Government efforts to stimulate
the economy.
(7) Efforts to stimulate the economy through reductions in
Federal Government tax obligations or increased spending on
Federal programs are weakened when State and local governments
are forced to increase taxes or cut spending.
(8) Efforts by the Federal Government to stimulate the
economic recovery will be substantially enhanced by a program
of emergency Federal Government assistance to State and local
governments to help prevent those governments from taking
budget-related actions which undermine the Federal Government
efforts to stimulate economic recovery.
(9) State and local governments deserve, at a minimum, the
same level of Federal investment to address infrastructure and
social services shortfalls as the amount of relief and
reconstruction funds provided to Iraq.

SEC. 2. FINANCIAL ASSISTANCE AUTHORIZED.

(a) Payments to State and Local Governments.--The Secretary of the
Treasury shall, in accordance with the provisions of this Act, make
payments to States and local governments to coordinate budget-related
actions by such governments with Federal Government efforts to
stimulate economic recovery.
(b) Authorization of Appropriation.--There is authorized to be
appropriated to the Secretary of the Treasury for fiscal year 2003 for
payments under this Act an amount equal to at least the total amount
appropriated for fiscal year 2003 under the heading ''Iraq Relief and
Reconstruction Fund'' in the Emergency Wartime Supplemental
Appropriations Act, 2003, and any amounts appropriated for such Fund in
any subsequent appropriation Act. Such amounts shall be in addition to,
and not in lieu of, other amounts appropriated for payments to States
and local governments.
(c) Availability to Local Governments.--Not less than one-third of
the amount appropriated pursuant to the authorization in subsection (b)
shall be made available to local governments under the applicable laws
of a given State.

SEC. 3. ALLOCATION.

The Secretary of the Treasury shall establish a formula, within 30
days after the date of the enactment of this Act, for determining the
allocation of payments under this Act. The formula shall give priority
weight to the following factors:
(1) The unemployment rate in relation to the national
average unemployment rate.
(2) The duration of the unemployment rate above such
average.
(3) Median income.
(4) Population.
(5) The poverty rate.

SEC. 4. USE OF FUNDS BY STATE AND LOCAL GOVERNMENTS.

(a) In General.--Funds received under this Act may be used only for
priority expenditures. For purposes of this Act, the term ''priority
expenditures'' means only--
(1) ordinary and necessary maintenance and operating
expenses for--
(A) primary, secondary, or higher education,
including school building renovation;
(B) public safety;
(C) public health, including hospitals and public
health laboratories;
(D) social services for the disadvantaged or aged;
(E) roads, transportation, and water
infrastructure; and
(F) housing; and
(2) ordinary and necessary capital expenditures authorized
by law.
(b) Certifications by State and Local Governments.--The Secretary
of the Treasury may accept a certification by the chief executive
officer of a State or local government that the State or local
government has used the funds received by it under this Act only for
priority expenditures, unless the Secretary determines that such
certification is not sufficiently reliable to enable the Secretary to
carry out this Act. The Secretary shall prescribe by rule the time and
manner in which the certification must be filed.

Answer:
Directs the Secretary of the Treasury to make payments to States and local governments to coordinate their budget-related actions with Federal Government efforts to stimulate the economy. Authorizes appropriations for FY 2003 for such payments in an amount equal to the total amount appropriated for for FY 2003 for the Iraq Relief and Reconstruction Fund in the Emergency Wartime Supplemental Appropriations Act, 2003, and subsequent appropriations Acts. Requires not less than one-third of such amount to be made available to local governments. Requires the Secretary to establish a formula for determining the allocation of payments, with priority consideration to the relative unemployment rate, median income, population, and poverty rate. Permits the use of funds received by States and local governments only for: (1) ordinary and necessary maintenance and operating expenses for education, public safety, public health, social services, roads, transportation, water infrastructure, and housing; and (2) ordinary and necessary capital expenditures authorized by law.