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H.L.C.
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1
SECTION 1. SHORT TITLE, ETC.
2
(a) SHORT TITLE.—This Act may be cited as the
3 ‘‘Tax Relief and Health Care Act of 2006’’.
4
(b) TABLE
OF
CONTENTS.—The table of contents for
5 this Act is as follows:
Sec. 1. Short title, etc.
DIVISION A—EXTENSION AND EXPANSION OF CERTAIN TAX
RELIEF PROVISIONS, AND OTHER TAX PROVISIONS
Sec. 100. Reference.
TITLE I—EXTENSION AND MODIFICATION OF CERTAIN
PROVISIONS
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
101.
102.
103.
104.
105.
106.
Sec. 107.
Sec. 108.
Sec. 109.
Sec.
Sec.
Sec.
Sec.
110.
111.
112.
113.
Sec. 114.
Sec. 115.
Sec. 116.
Sec. 117.
Sec. 118.
Sec. 119.
Sec. 120.
Sec. 121.
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Deduction for qualified tuition and related expenses.
Extension and modification of new markets tax credit.
Election to deduct State and local general sales taxes.
Extension and modification of research credit.
Work opportunity tax credit and welfare-to-work credit.
Election to include combat pay as earned income for purposes of
earned income credit.
Extension and modification of qualified zone academy bonds.
Above-the-line deduction for certain expenses of elementary and secondary school teachers.
Extension and expansion of expensing of brownfields remediation
costs.
Tax incentives for investment in the District of Columbia.
Indian employment tax credit.
Accelerated depreciation for business property on Indian reservations.
Fifteen-year straight-line cost recovery for qualified leasehold improvements and qualified restaurant property.
Cover over of tax on distilled spirits.
Parity in application of certain limits to mental health benefits.
Corporate donations of scientific property used for research and of
computer technology and equipment.
Availability of medical savings accounts.
Taxable income limit on percentage depletion for oil and natural gas
produced from marginal properties.
American Samoa economic development credit.
Extension of bonus depreciation for certain qualified Gulf Opportunity Zone property.
Authority for undercover operations.
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Sec. 122. Disclosures of certain tax return information.
Sec. 123. Special rule for elections under expired provisions.
TITLE II—ENERGY TAX PROVISIONS
Sec. 201. Credit for electricity produced from certain renewable resources.
Sec. 202. Credit to holders of clean renewable energy bonds.
Sec. 203. Performance standards for sulfur dioxide removal in advanced coalbased generation technology units designed to use subbituminous coal.
Sec. 204. Deduction for energy efficient commercial buildings.
Sec. 205. Credit for new energy efficient homes.
Sec. 206. Credit for residential energy efficient property.
Sec. 207. Energy credit.
Sec. 208. Special rule for qualified methanol or ethanol fuel.
Sec. 209. Special depreciation allowance for cellulosic biomass ethanol plant
property.
Sec. 210. Expenditures permitted from the Leaking Underground Storage
Tank Trust Fund.
Sec. 211. Treatment of coke and coke gas.
TITLE III—HEALTH SAVINGS ACCOUNTS
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
301.
302.
303.
304.
305.
306.
Short title.
FSA and HRA terminations to fund HSAs.
Repeal of annual deductible limitation on HSA contributions.
Modification of cost-of-living adjustment.
Contribution limitation not reduced for part-year coverage.
Exception to requirement for employers to make comparable health
savings account contributions.
Sec. 307. One-time distribution from individual retirement plans to fund HSAs.
TITLE IV—OTHER PROVISIONS
Sec. 401. Deduction allowable with respect to income attributable to domestic
production activities in Puerto Rico.
Sec. 402. Credit for prior year minimum tax liability made refundable after period of years.
Sec. 403. Returns required in connection with certain options.
Sec. 404. Partial expensing for advanced mine safety equipment.
Sec. 405. Mine rescue team training tax credit.
Sec. 406. Whistleblower reforms.
Sec. 407. Frivolous tax submissions.
Sec. 408. Addition of meningococcal and human papillomavirus vaccines to list
of taxable vaccines.
Sec. 409. Clarification of taxation of certain settlement funds made permanent.
Sec. 410. Modification of active business definition under section 355 made permanent.
Sec. 411. Revision of State veterans limit made permanent.
Sec. 412. Capital gains treatment for certain self-created musical works made
permanent.
Sec. 413. Reduction in minimum vessel tonnage which qualifies for tonnage tax
made permanent.
Sec. 414. Modification of special arbitrage rule for certain funds made permanent.
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Sec. 415. Great Lakes domestic shipping to not disqualify vessel from tonnage
tax.
Sec. 416. Use of qualified mortgage bonds to finance residences for veterans
without regard to first-time homebuyer requirement.
Sec. 417. Exclusion of gain from sale of a principal residence by certain employees of the intelligence community.
Sec. 418. Sale of property by judicial officers.
Sec. 419. Premiums for mortgage insurance.
Sec. 420. Modification of refunds for kerosene used in aviation.
Sec. 421. Regional income tax agencies treated as States for purposes of confidentiality and disclosure requirements.
Sec. 422. Designation of wines by semi-generic names.
Sec. 423. Modification of railroad track maintenance credit.
Sec. 424. Modification of excise tax on unrelated business taxable income of
charitable remainder trusts.
Sec. 425. Loans to qualified continuing care facilities made permanent.
Sec. 426. Technical corrections.
DIVISION B—MEDICARE AND OTHER HEALTH PROVISIONS
Sec. 1. Short title of division.
TITLE I—MEDICARE IMPROVED QUALITY AND PROVIDER
PAYMENTS
Sec. 101. Physician payment and quality improvement.
Sec. 102. Extension of floor on Medicare work geographic adjustment.
Sec. 103. Update to the composite rate component of the basic case-mix adjusted prospective payment system for dialysis services.
Sec. 104. Extension of treatment of certain physician pathology services under
Medicare.
Sec. 105. Extension of Medicare reasonable costs payments for certain clinical
diagnostic laboratory tests furnished to hospital patients in certain rural areas.
Sec. 106. Hospital Medicare reports and clarifications.
Sec. 107. Payment for brachytherapy.
Sec. 108. Payment process under the competitive acquisition program (CAP).
Sec. 109. Quality reporting for hospital outpatient services and ambulatory surgical center services.
Sec. 110. Reporting of anemia quality indicators for Medicare part B cancer
anti-anemia drugs.
Sec. 111. Clarification of hospice satellite designation.
TITLE II—MEDICARE BENEFICIARY PROTECTIONS
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
201.
202.
203.
204.
205.
206.
Extension of exceptions process for Medicare therapy caps.
Payment for administration of part D vaccines.
OIG study of never events.
Medicare medical home demonstration project.
Medicare DRA technical corrections.
Limited continuous open enrollment of original medicare fee-for-service enrollees into Medicare Advantage non-prescription drug
plans.
TITLE III—MEDICARE PROGRAM INTEGRITY EFFORTS
Sec. 301. Offsetting adjustment in Medicare Advantage Stabilization Fund.
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Sec. 302. Extension and expansion of recovery audit contractor program under
the Medicare Integrity Program.
Sec. 303. Funding for the Health Care Fraud and Abuse Control Account.
Sec. 304. Implementation funding.
TITLE IV—MEDICAID AND OTHER HEALTH PROVISIONS
Sec. 401. Extension of Transitional Medical Assistance (TMA) and abstinence
education program.
Sec. 402. Grants for research on vaccine against Valley Fever.
Sec. 403. Change in threshold for Medicaid indirect hold harmless provision of
broad-based health care taxes.
Sec. 404. DSH allotments for fiscal year 2007 for Tennessee and Hawaii.
Sec. 405. Certain Medicaid DRA technical corrections.
DIVISION C—OTHER PROVISIONS
TITLE I—GULF OF MEXICO ENERGY SECURITY
Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Offshore oil and gas leasing in 181 Area and 181 south Area of Gulf
of Mexico.
Sec. 104. Moratorium on oil and gas leasing in certain areas of Gulf of Mexico.
Sec. 105. Disposition of qualified outer Continental Shelf revenues from 181
Area, 181 south Area, and 2002–2007 planning areas of Gulf
of Mexico.
TITLE II—SURFACE MINING CONTROL AND RECLAMATION ACT
AMENDMENTS OF 2006
Sec. 200. Short title.
Subtitle A—Mining Control and Reclamation
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
201.
202.
203.
204.
205.
206.
207.
208.
Abandoned Mine Reclamation Fund and purposes.
Reclamation fee.
Objectives of Fund.
Reclamation of rural land.
Liens.
Certification.
Remining incentives.
Extension of limitation on application of prohibition on issuance of
permit.
Sec. 209. Tribal regulation of surface coal mining and reclamation operations.
Subtitle B—Coal Industry Retiree Health Benefit Act
Sec. 211. Certain related persons and successors in interest relieved of liability
if premiums prepaid.
Sec. 212. Transfers to funds; premium relief.
Sec. 213. Other provisions.
TITLE III—WHITE PINE COUNTY CONSERVATION, RECREATION,
AND DEVELOPMENT
Sec. 301. Authorization of appropriations.
Sec. 302. Short title.
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Sec. 303. Definitions.
Subtitle A—Land Disposal
Sec. 311. Conveyance of White Pine County, Nevada, land.
Sec. 312. Disposition of proceeds.
Subtitle B—Wilderness Areas
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
321.
322.
323.
324.
325.
326.
327.
328.
329.
330.
331.
Short title.
Findings.
Additions to National Wilderness Preservation System.
Administration.
Adjacent management.
Military overflights.
Native American cultural and religious uses.
Release of wilderness study areas.
Wildlife management.
Wildfire, insect, and disease management.
Climatological data collection.
Subtitle C—Transfers of Administrative Jurisdiction
Sec.
Sec.
Sec.
Sec.
341.
342.
343.
344.
Transfer to the United States Fish and Wildlife Service.
Transfer to the Bureau of Land Management.
Transfer to the Forest Service.
Availability of map and legal descriptions.
Subtitle D—Public Conveyances
Sec. 351. Conveyance to the State of Nevada.
Sec. 352. Conveyance to White Pine County, Nevada.
Subtitle E—Silver State Off-Highway Vehicle Trail
Sec. 355. Silver State off-highway vehicle trail.
Subtitle F—Transfer of Land to Be Held in Trust for the Ely Shoshone
Tribe.
Sec. 361. Transfer of land to be held in trust for the Ely Shoshone Tribe.
Subtitle G—Eastern Nevada Landscape Restoration Project.
Sec. 371. Findings; purposes.
Sec. 372. Definitions.
Sec. 373. Restoration project.
Subtitle H—Amendments to the Southern Nevada Public Land Management
Act of 1998
Sec. 381. Findings.
Sec. 382. Availability of special account.
Subtitle I—Amendments to the Lincoln County Conservation, Recreation, and
Development Act of 2004
Sec. 391. Disposition of proceeds.
Subtitle J—All American Canal Projects
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Sec. 395. All American Canal Lining Project.
Sec. 396. Regulated storage water facility.
Sec. 397. Application of law.
TITLE IV—OTHER PROVISIONS
Sec. 401. Tobacco personal use quantity exception to not apply to delivery
sales.
Sec. 402. Ethanol Tariff Schedule.
Sec. 403. Withdrawal of certain Federal land and interests in certain Federal
land from location, entry, and patent under the mining laws
and disposition under the mineral and geothermal leasing laws.
Sec. 404. Continuing eligibility for certain students under District of Columbia
School Choice Program.
Sec. 405. Study on Establishing Uniform National Database on Elder Abuse.
Sec. 406. Temporary duty reductions for certain cotton shirting fabric.
Sec. 407. Cotton Trust Fund.
Sec. 408. Tax court review of requests for equitable relief from joint and several liability.
4
DIVISION A—EXTENSION AND
EXPANSION OF CERTAIN TAX
RELIEF
PROVISIONS,
AND
OTHER TAX PROVISIONS
5
SEC. 100. REFERENCE.
1
2
3
6
Except as otherwise expressly provided, whenever in
7 this division an amendment or repeal is expressed in terms
8 of an amendment to, or repeal of, a section or other provi9 sion, the reference shall be considered to be made to a
10 section or other provision of the Internal Revenue Code
11 of 1986.
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3
TITLE I—EXTENSION AND MODIFICATION OF CERTAIN PROVISIONS
4
SEC. 101. DEDUCTION FOR QUALIFIED TUITION AND RE-
1
2
5
LATED EXPENSES.
6
(a) IN GENERAL.—Section 222(e) is amended by
7 striking ‘‘2005’’and inserting ‘‘2007’’.
8
(b)
CONFORMING
AMENDMENTS.—Section
9 222(b)(2)(B) is amended—
10
(1) by striking ‘‘a taxable year beginning in
11
2004 or 2005’’ and inserting ‘‘any taxable year be-
12
ginning after 2003’’, and
13
(2) by striking ‘‘2004
AND 2005’’
in the heading
14
and inserting ‘‘AFTER
15
(c) EFFECTIVE DATE.—The amendments made by
2003’’.
16 this section shall apply to taxable years beginning after
17 December 31, 2005.
18
SEC. 102. EXTENSION AND MODIFICATION OF NEW MAR-
19
KETS TAX CREDIT.
20
(a) EXTENSION.—Section 45D(f)(1)(D) is amended
21 by striking ‘‘and 2007’’ and inserting ‘‘, 2007, and 2008’’.
22
(b) REGULATIONS REGARDING NON-METROPOLITAN
23 COUNTIES.—Section 45D(i) is amended by striking ‘‘and’’
24 at the end of paragraph (4), by striking the period at the
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1 end of paragraph (5) and inserting ‘‘, and’’, and by adding
2 at the end the following new paragraph:
3
‘‘(6) which ensure that non-metropolitan coun-
4
ties receive a proportional allocation of qualified eq-
5
uity investments.’’.
6
(c) EFFECTIVE DATE.—The amendments made by
7 this section shall take effect on the date of the enactment
8 of this Act.
9
SEC. 103. ELECTION TO DEDUCT STATE AND LOCAL GEN-
10
ERAL SALES TAXES.
11
(a) IN GENERAL.—Section 164(b)(5)(I) is amended
12 by striking ‘‘2006’’ and inserting ‘‘2008’’.
13
(b) EFFECTIVE DATE.—The amendments made by
14 this section shall apply to taxable years beginning after
15 December 31, 2005.
16
SEC. 104. EXTENSION AND MODIFICATION OF RESEARCH
17
CREDIT.
18
(a) EXTENSION.—
19
(1)
20
GENERAL.—Section
41(h)(1)(B)
is
amended by striking ‘‘2005’’ and inserting ‘‘2007’’.
21
(2)
CONFORMING
AMENDMENT.—Section
22
45C(b)(1)(D) is amended by striking ‘‘2005’’ and
23
inserting ‘‘2007’’.
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1
(3) EFFECTIVE
amendments made
2
by this subsection shall apply to amounts paid or in-
3
curred after December 31, 2005.
4
(b) INCREASE
5
MENTAL
6
IN
RATES
OF
ALTERNATIVE INCRE-
CREDIT.—
(1) IN
GENERAL.—Subparagraph
(A) of section
7
41(c)(4) (relating to election of alternative incre-
8
mental credit) is amended—
9
(A) by striking ‘‘2.65 percent’’ and insert-
10
ing ‘‘3 percent’’,
11
(B) by striking ‘‘3.2 percent’’ and inserting
12
‘‘4 percent’’, and
13
(C) by striking ‘‘3.75 percent’’ and insert-
14
ing ‘‘5 percent’’.
15
(2) EFFECTIVE
DATE.—Except
as provided in
16
paragraph (3), the amendments made by this sub-
17
section shall apply to taxable years ending after De-
18
cember 31, 2006.
19
(3) TRANSITION
20
(A) IN
RULE.—
GENERAL.—In
the case of a speci-
21
fied transitional taxable year for which an elec-
22
tion under section 41(c)(4) of the Internal Rev-
23
enue Code of 1986 applies, the credit deter-
24
mined under section 41(a)(1) of such Code shall
25
be equal to the sum of—
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1
(i) the applicable 2006 percentage
2
multiplied
3
under section 41(c)(4)(A) of such Code (as
4
in effect for taxable years ending on De-
5
cember 31, 2006), plus
6
the
amount
determined
(ii) the applicable 2007 percentage
7
multiplied
8
under section 41(c)(4)(A) of such Code (as
9
in effect for taxable years ending on Janu-
by
the
amount
determined
10
ary 1, 2007).
11
(B) DEFINITIONS.—For purposes of sub-
12
paragraph (A)—
13
(i) SPECIFIED
TRANSITIONAL
TAX-
14
ABLE YEAR.—The
15
tional taxable year’’ means any taxable
16
year which ends after December 31, 2006,
17
and which includes such date.
18
term ‘‘specified transi-
(ii) APPLICABLE
2006 PERCENTAGE.—
19
The term ‘‘applicable 2006 percentage’’
20
means the number of days in the specified
21
transitional taxable year before January 1,
22
2007, divided by the number of days in
23
such taxable year.
24
(iii)
25
AGE.—The
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APPLICABLE
2007
PERCENT-
term ‘‘applicable 2007 percent-
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1
age’’ means the number of days in the
2
specified transitional taxable year after De-
3
cember 31, 2006, divided by the number of
4
days in such taxable year.
5
6
(c) ALTERNATIVE SIMPLIFIED CREDIT
FIED
QUALI-
RESEARCH EXPENSES.—
7
(1) IN
GENERAL.—Subsection
(c) of section 41
8
(relating to base amount) is amended by redesig-
9
nating paragraphs (5) and (6) as paragraphs (6)
10
and (7), respectively, and by inserting after para-
11
graph (4) the following new paragraph:
12
‘‘(5) ELECTION
13
OF ALTERNATIVE SIMPLIFIED
CREDIT.—
14
‘‘(A) IN
GENERAL.—At
the election of the
15
taxpayer, the credit determined under sub-
16
section (a)(1) shall be equal to 12 percent of so
17
much of the qualified research expenses for the
18
taxable year as exceeds 50 percent of the aver-
19
age qualified research expenses for the 3 tax-
20
able years preceding the taxable year for which
21
the credit is being determined.
22
‘‘(B) SPECIAL
RULE
IN
CASE
OF
NO
23
QUALIFIED RESEARCH EXPENSES IN ANY OF 3
24
PRECEDING TAXABLE YEARS.—
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1
‘‘(i) TAXPAYERS
2
GRAPH APPLIES.—The
3
paragraph shall be determined under this
4
subparagraph if the taxpayer has no quali-
5
fied research expenses in any one of the 3
6
taxable years preceding the taxable year
7
for which the credit is being determined.
8
‘‘(ii) CREDIT
credit under this
RATE.—The
credit de-
9
termined under this subparagraph shall be
10
equal to 6 percent of the qualified research
11
expenses for the taxable year.
12
‘‘(C) ELECTION.—An election under this
13
paragraph shall apply to the taxable year for
14
which made and all succeeding taxable years
15
unless revoked with the consent of the Sec-
16
retary. An election under this paragraph may
17
not be made for any taxable year to which an
18
election under paragraph (4) applies.’’.
19
(2) TRANSITION
RULE FOR DEEMED REVOCA-
20
TION OF ELECTION OF ALTERNATIVE INCREMENTAL
21
CREDIT.—In
22
41(c)(4) of the Internal Revenue Code of 1986
23
which applies to the taxable year which includes
24
January 1, 2007, such election shall be treated as
25
revoked with the consent of the Secretary of the
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1
Treasury if the taxpayer makes an election under
2
section 41(c)(5) of such Code (as added by this sub-
3
section) for such year.
4
(3) EFFECTIVE
as provided in
5
paragraph (4), the amendments made by this sub-
6
section shall apply to taxable years ending after De-
7
cember 31, 2006.
8
(4) TRANSITION
9
RULE FOR NONCALENDAR TAX-
ABLE YEARS.—
10
(A) IN
GENERAL.—In
the case of a speci-
11
fied transitional taxable year for which an elec-
12
tion under section 41(c)(5) of the Internal Rev-
13
enue Code of 1986 (as added by this sub-
14
section) applies, the credit determined under
15
section 41(a)(1) of such Code shall be equal to
16
the sum of—
17
(i) the applicable 2006 percentage
18
multiplied
19
under section 41(a)(1) of such Code (as in
20
effect for taxable years ending on Decem-
21
ber 31, 2006), plus
22
by
the
amount
determined
(ii) the applicable 2007 percentage
23
multiplied
24
under section 41(c)(5) of such Code (as in
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1
effect for taxable years ending on January
2
1, 2007).
3
(B) DEFINITIONS
4
AND SPECIAL RULES.—
For purposes of subparagraph (A)—
5
(i) DEFINITIONS.—Terms used in this
6
paragraph which are also used in sub-
7
section (b)(3) shall have the respective
8
meanings given such terms in such sub-
9
section.
10
(ii) DUAL
ELECTIONS PERMITTED.—
11
Elections under paragraphs (4) and (5) of
12
section 41(c) of such Code may both apply
13
for the specified transitional taxable year.
14
(iii) DEFERRAL
OF DEEMED ELEC-
15
TION
16
section 41(c)(4) of the Internal Revenue
17
Code of 1986 treated as revoked under
18
paragraph (2) shall be treated as revoked
19
for the taxable year after the specified
20
transitional taxable year.
21
REVOCATION.—Any
election under
SEC. 105. WORK OPPORTUNITY TAX CREDIT AND WELFARE-
22
TO-WORK CREDIT.
23
(a) IN GENERAL.—Sections 51(c)(4)(B) and 51A(f)
24 are each amended by striking ‘‘2005’’ and inserting
25 ‘‘2007’’.
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H.L.C.
15
1
(b) ELIGIBILITY
2 WITHOUT REGARD
TO
EX-FELONS DETERMINED
OF
FAMILY INCOME.—Paragraph (4)
3 of section 51(d) is amended by adding ‘‘and’’ at the end
4 of subparagraph (A), by striking ‘‘, and’’ at the end of
5 subparagraph (B) and inserting a period, and by striking
6 all that follows subparagraph (B).
7
(c) INCREASE IN MAXIMUM AGE FOR ELIGIBILITY OF
8 FOOD
STAMP
RECIPIENTS.—Clause
(i)
of
section
9 51(d)(8)(A) is amended by striking ‘‘25’’ and inserting
10 ‘‘40’’.
11
12
(d) EXTENSION
LINE.—Section
OF
PAPERWORK FILING DEAD-
51(d)(12)(A)(ii)(II) is amended by strik-
13 ing ‘‘21st day’’ and inserting ‘‘28th day’’.
14
15
(e) CONSOLIDATION
IT
WORK OPPORTUNITY CRED-
WITH WELFARE-TO-WORK CREDIT.—
16
(1) IN
GENERAL.—Paragraph
(1) of section
17
51(d) is amended by striking ‘‘or’’ at the end of sub-
18
paragraph (G), by striking the period at the end of
19
subparagraph (H) and inserting ‘‘, or’’, and by add-
20
ing at the end the following new subparagraph:
21
‘‘(I) a long-term family assistance recipi-
22
ent.’’.
23
(2) LONG-TERM
FAMILY ASSISTANCE RECIPI-
24
ENT.—Subsection
25
redesignating paragraphs (10) through (12) as para-
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H.L.C.
16
1
graphs (11) through (13), respectively, and by in-
2
serting after paragraph (9) the following new para-
3
graph:
4
‘‘(10) LONG-TERM
5
ENT.—The
6
ent’ means any individual who is certified by the
7
designated local agency—
term ‘long-term family assistance recipi-
8
‘‘(A) as being a member of a family receiv-
9
ing assistance under a IV–A program (as de-
10
fined in paragraph (2)(B)) for at least the 18-
11
month period ending on the hiring date,
12
‘‘(B)(i) as being a member of a family re-
13
ceiving such assistance for 18 months beginning
14
after August 5, 1997, and
15
‘‘(ii) as having a hiring date which is not
16
more than 2 years after the end of the earliest
17
such 18-month period, or
18
‘‘(C)(i) as being a member of a family
19
which ceased to be eligible for such assistance
20
by reason of any limitation imposed by Federal
21
or State law on the maximum period such as-
22
sistance is payable to a family, and
23
‘‘(ii) as having a hiring date which is not
24
more than 2 years after the date of such ces-
25
sation.’’.
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H.L.C.
17
1
(3) INCREASED
2
LONG-TERM FAMILY ASSISTANCE RECIPIENTS.—Sec-
3
tion 51 is amended by inserting after subsection (d)
4
the following new subsection:
5
‘‘(e) CREDIT
6
PLOYMENT OF
7
ENTS.—
8
FOR
SECOND-YEAR WAGES
FOR
EM -
LONG-TERM FAMILY ASSISTANCE RECIPI-
‘‘(1) IN
9
GENERAL.—With
respect to the em-
ployment of a long-term family assistance recipi-
10
ent—
11
‘‘(A) the amount of the work opportunity
12
credit determined under this section for the tax-
13
able year shall include 50 percent of the quali-
14
fied second-year wages for such year, and
15
‘‘(B) in lieu of applying subsection (b)(3),
16
the amount of the qualified first-year wages,
17
and the amount of qualified second-year wages,
18
which may be taken into account with respect
19
to such a recipient shall not exceed $10,000 per
20
year.
21
‘‘(2) QUALIFIED
SECOND-YEAR WAGES.—For
22
purposes of this subsection, the term ‘qualified sec-
23
ond-year wages’ means qualified wages—
24
‘‘(A) which are paid to a long-term family
25
assistance recipient, and
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H.L.C.
18
1
‘‘(B) which are attributable to service ren-
2
dered during the 1-year period beginning on the
3
day after the last day of the 1-year period with
4
respect to such recipient determined under sub-
5
section (b)(2).
6
‘‘(3) SPECIAL
7
RAILWAY LABOR.—If
8
to whom subparagraph (A) or (B) of subsection
9
(h)(1) applies, rules similar to the rules of such sub-
10
such recipient is an employee
paragraphs shall apply except that—
11
‘‘(A) such subparagraph (A) shall be ap-
12
plied by substituting ‘$10,000’ for ‘$6,000’, and
13
‘‘(B) such subparagraph (B) shall be ap-
14
plied by substituting ‘$833.33’ for ‘$500’.’’.
15
(4) REPEAL
16
OF SEPARATE WELFARE-TO-WORK
CREDIT.—
17
(A) IN
18
GENERAL.—Section
51A is hereby
repealed.
19
(B) CLERICAL
AMENDMENT.—The
table of
20
sections for subpart F of part IV of subchapter
21
A of chapter 1 is amended by striking the item
22
relating to section 51A.
23
(f) EFFECTIVE DATES.—
24
(1) IN
25
21:12 Dec 07, 2006
GENERAL.—Except
as provided in para-
graph (2), the amendments made by this section
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H.L.C.
19
1
shall apply to individuals who begin work for the
2
employer after December 31, 2005.
3
(2) CONSOLIDATION.—The amendments made
4
by subsections (b), (c), (d), and (e) shall apply to in-
5
dividuals who begin work for the employer after De-
6
cember 31, 2006.
7
SEC. 106. ELECTION TO INCLUDE COMBAT PAY AS EARNED
8
INCOME FOR PURPOSES OF EARNED INCOME
9
CREDIT.
10
(a) IN GENERAL.—Section 32(c)(2)(B)(vi)(II) is
11 amended by striking ‘‘2007’’ and inserting ‘‘2008’’.
12
(b) EFFECTIVE DATE.—The amendment made by
13 this section shall apply to taxable years beginning after
14 December 31, 2006.
15
SEC. 107. EXTENSION AND MODIFICATION OF QUALIFIED
16
ZONE ACADEMY BONDS.
17
(a)
IN
GENERAL.—Paragraph
(1)
of
section
18 1397E(e) is amended by striking ‘‘and 2005’’ and insert19 ing ‘‘2005, 2006, and 2007’’.
20
(b) SPECIAL RULES RELATING
TO
EXPENDITURES,
21 ARBITRAGE, AND REPORTING.—
22
(1) IN
23
1397E is amend-
ed—
24
(A) in subsection (d)(1), by striking ‘‘and’’
25
at the end of subparagraph (C)(iii), by striking
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H.L.C.
20
1
the period at the end of subparagraph (D) and
2
inserting ‘‘, and’’, and by adding at the end the
3
following new subparagraph:
4
‘‘(E) the issue meets the requirements of
5
subsections (f), (g), and (h).’’, and
6
(B) by redesignating subsections (f), (g),
7
(h), and (i) as subsection (i), (j), (k), and (l),
8
respectively, and by inserting after subsection
9
(e) the following new subsections:
10
11
‘‘(f) SPECIAL RULES RELATING
EXPENDI-
TURES.—
12
‘‘(1) IN
GENERAL.—An
issue shall be treated as
13
meeting the requirements of this subsection if, as of
14
the date of issuance, the issuer reasonably expects—
15
‘‘(A) at least 95 percent of the proceeds
16
from the sale of the issue are to be spent for
17
1 or more qualified purposes with respect to
18
qualified zone academies within the 5-year pe-
19
riod beginning on the date of issuance of the
20
qualified zone academy bond,
21
‘‘(B) a binding commitment with a third
22
party to spend at least 10 percent of the pro-
23
ceeds from the sale of the issue will be incurred
24
within the 6-month period beginning on the
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H.L.C.
21
1
date of issuance of the qualified zone academy
2
bond, and
3
‘‘(C) such purposes will be completed with
4
due diligence and the proceeds from the sale of
5
the issue will be spent with due diligence.
6
‘‘(2) EXTENSION
submis-
7
sion of a request prior to the expiration of the period
8
described in paragraph (1)(A), the Secretary may
9
extend such period if the issuer establishes that the
10
failure to satisfy the 5-year requirement is due to
11
reasonable cause and the related purposes will con-
12
tinue to proceed with due diligence.
13
‘‘(3) FAILURE
TO SPEND REQUIRED AMOUNT
14
OF BOND PROCEEDS WITHIN 5 YEARS.—To
15
tent that less than 95 percent of the proceeds of
16
such issue are expended by the close of the 5-year
17
period beginning on the date of issuance (or if an
18
extension has been obtained under paragraph (2), by
19
the close of the extended period), the issuer shall re-
20
deem all of the nonqualified bonds within 90 days
21
after the end of such period. For purposes of this
22
paragraph, the amount of the nonqualified bonds re-
23
quired to be redeemed shall be determined in the
24
same manner as under section 142.
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H.L.C.
22
1
‘‘(g) SPECIAL RULES RELATING
TO
ARBITRAGE.—
2 An issue shall be treated as meeting the requirements of
3 this subsection if the issuer satisfies the arbitrage require4 ments of section 148 with respect to proceeds of the issue.
5
‘‘(h) REPORTING.—Issuers of qualified academy zone
6 bonds shall submit reports similar to the reports required
7 under section 149(e).’’.
8
(2)
AMENDMENTS.—Sections
9
54(l)(3)(B) and 1400N(l)(7)(B)(ii) are each amend-
10
ed by striking ‘‘section 1397E(i)’’ and inserting
11
‘‘section 1397E(l)’’.
12
(c) EFFECTIVE DATES.—
13
(1) EXTENSION.—The amendment made by
14
subsection (a) shall apply to obligations issued after
15
December 31, 2005.
16
(2) SPECIAL
RULES.—The
amendments made
17
by subsection (b) shall apply to obligations issued
18
after the date of the enactment of this Act pursuant
19
to allocations of the national zone academy bond
20
limitation for calendar years after 2005.
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23
1
SEC. 108. ABOVE-THE-LINE DEDUCTION FOR CERTAIN EX-
2
PENSES OF ELEMENTARY AND SECONDARY
3
SCHOOL TEACHERS.
4
(a) IN GENERAL.—Subparagraph (D) of section
5 62(a)(2) is amended by striking ‘‘or 2005’’ and inserting
6 ‘‘2005, 2006, or 2007’’.
7
(b) EFFECTIVE DATE.—The amendment made by
8 this section shall apply to taxable years beginning after
9 December 31, 2005.
10
SEC. 109. EXTENSION AND EXPANSION OF EXPENSING OF
11
BROWNFIELDS REMEDIATION COSTS.
12
(a) EXTENSION.—Subsection (h) of section 198 is
13 amended by striking ‘‘2005’’ and inserting ‘‘2007’’.
14
(b) EXPANSION.—Section 198(d)(1) (defining haz-
15 ardous substance) is amended by striking ‘‘and’’ at the
16 end of subparagraph (A), by striking the period at the
17 end of subparagraph (B) and inserting ‘‘, and’’, and by
18 adding at the end the following new subparagraph:
19
‘‘(C) any petroleum product (as defined in
20
section 4612(a)(3)).’’.
21
(c) EFFECTIVE DATE.—The amendments made by
22 this section shall apply to expenditures paid or incurred
23 after December 31, 2005.
24
SEC. 110. TAX INCENTIVES FOR INVESTMENT IN THE DIS-
25
TRICT OF COLUMBIA.
26
(a) DESIGNATION OF ZONE.—
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24
1
(1) IN
GENERAL.—Subsection
(f) of section
2
1400 is amended by striking ‘‘2005’’ both places it
3
appears and inserting ‘‘2007’’.
4
(2) EFFECTIVE
DATE.—The
amendments made
5
by this subsection shall apply to periods beginning
6
after December 31, 2005.
7
(b)
TAX-EXEMPT
ECONOMIC
DEVELOPMENT
8 BONDS.—
9
(1) IN
(b) of section
10
1400A is amended by striking ‘‘2005’’ and inserting
11
‘‘2007’’.
12
(2) EFFECTIVE
DATE.—The
amendment made
13
by this subsection shall apply to bonds issued after
14
December 31, 2005.
15
(c) ZERO PERCENT CAPITAL GAINS RATE.—
16
(1) IN
GENERAL.—Subsection
(b) of section
17
1400B is amended by striking ‘‘2006’’ each place it
18
appears and inserting ‘‘2008’’.
19
(2) CONFORMING
20
(i) by striking ‘‘2010’’ and inserting
22
‘‘2012’’, and
23
(ii) by striking ‘‘2010’’ in the heading
24
thereof and inserting ‘‘2012’’.
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December 7, 2006 (9:12 p.m.)
21:12 Dec 07, 2006
AMENDMENTS.—
(A) Section 1400B(e)(2) is amended—
21
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25
1
(B) Section 1400B(g)(2) is amended by
2
striking ‘‘2010’’ and inserting ‘‘2012’’.
3
(C) Section 1400F(d) is amended by strik-
4
ing ‘‘2010’’ and inserting ‘‘2012’’.
5
(3) EFFECTIVE
DATES.—
6
(A) EXTENSION.—The amendments made
7
by paragraph (1) shall apply to acquisitions
8
after December 31, 2005.
9
(B)
CONFORMING
AMENDMENTS.—The
10
amendments made by paragraph (2) shall take
11
effect on the date of the enactment of this Act.
12
(d) FIRST-TIME HOMEBUYER CREDIT.—
13
(1) IN
GENERAL.—Subsection
(i) of section
14
1400C is amended by striking ‘‘2006’’ and inserting
15
‘‘2008’’.
16
(2) EFFECTIVE
DATE.—The
amendment made
17
by this subsection shall apply to property purchased
18
after December 31, 2005.
19
SEC. 111. INDIAN EMPLOYMENT TAX CREDIT.
20
(a) IN GENERAL.—Section 45A(f) is amended by
21 striking ‘‘2005’’ and inserting ‘‘2007’’.
22
(b) EFFECTIVE DATE.—The amendment made by
23 this section shall apply to taxable years beginning after
24 December 31, 2005.
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26
1
SEC. 112. ACCELERATED DEPRECIATION FOR BUSINESS
2
PROPERTY ON INDIAN RESERVATIONS.
3
(a) IN GENERAL.—Section 168(j)(8) is amended by
4 striking ‘‘2005’’ and inserting ‘‘2007’’.
5
(b) EFFECTIVE DATE.—The amendment made by
6 this section shall apply to property placed in service after
7 December 31, 2005.
8
SEC. 113. FIFTEEN-YEAR STRAIGHT-LINE COST RECOVERY
9
FOR QUALIFIED LEASEHOLD IMPROVEMENTS
10
AND QUALIFIED RESTAURANT PROPERTY.
11
(a) IN GENERAL.—Clauses (iv) and (v) of section
12 168(e)(3)(E) are each amended by striking ‘‘2006’’ and
13 inserting ‘‘2008’’.
14
(b) EFFECTIVE DATE.—The amendments made by
15 subsection (a) shall apply to property placed in service
16 after December 31, 2005.
17
SEC. 114. COVER OVER OF TAX ON DISTILLED SPIRITS.
18
(a) IN GENERAL.—Section 7652(f)(1) is amended by
19 striking ‘‘2006’’ and inserting ‘‘2008’’.
20
(b) EFFECTIVE DATE.—The amendment made by
21 subsection (a) shall apply to articles brought into the
22 United States after December 31, 2005.
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1
SEC. 115. PARITY IN APPLICATION OF CERTAIN LIMITS TO
2
MENTAL HEALTH BENEFITS.
3
4
(a) AMENDMENT
OF
TO THE INTERNAL
REVENUE CODE
1986.—Section 9812(f)(3) is amended by striking
5 ‘‘2006’’ and inserting ‘‘2007’’.
6
(b) AMENDMENT
EMPLOYEE RETIREMENT
TO THE
7 INCOME SECURITY ACT
OF
1974.—Section 712(f) of the
8 Employee Retirement Income Security Act of 1974 (29
9 U.S.C. 1185a(f)) is amended by striking ‘‘2006’’ and in10 serting ‘‘2007’’.
11
(c) AMENDMENT
TO THE
PUBLIC HEALTH SERVICE
12 ACT.—Section 2705(f) of the Public Health Service Act
13 (42
U.S.C.
300gg–5(f))
is
amended
by
striking
14 ‘‘2006’’and inserting ‘‘2007’’.
15
SEC. 116. CORPORATE DONATIONS OF SCIENTIFIC PROP-
16
ERTY USED FOR RESEARCH AND OF COM-
17
PUTER TECHNOLOGY AND EQUIPMENT.
18
(a) EXTENSION
OF
COMPUTER TECHNOLOGY
AND
19 EQUIPMENT DONATION.—
20
(1) IN
21
170(e)(6)(G) is
amended by striking ‘‘2005’’ and inserting ‘‘2007’’.
22
(2) EFFECTIVE
DATE.—The
amendment made
23
by paragraph (1) shall apply to contributions made
24
in taxable years beginning after December 31, 2005.
25
(b) EXPANSION
26
LOWED FOR
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1
AND FOR
COMPUTER TECHNOLOGY
AND
EQUIPMENT
2 USED FOR EDUCATIONAL PURPOSES.—
3
(1) SCIENTIFIC
4
USED
FOR
RE-
SEARCH.—
5
(A) IN
GENERAL.—Clause
(ii) of section
6
170(e)(4)(B) (defining qualified research con-
7
tributions) is amended by inserting ‘‘or assem-
8
bled’’ after ‘‘constructed’’.
9
(B) CONFORMING
AMENDMENT.—Clause
10
(iii) of section 170(e)(4)(B) is amended by in-
11
serting ‘‘or assembly’’ after ‘‘construction’’.
12
(2) COMPUTER
13
TECHNOLOGY AND EQUIPMENT
FOR EDUCATIONAL PURPOSES.—
14
(A) IN
GENERAL.—Clause
(ii) of section
15
170(e)(6)(B) is amended by inserting ‘‘or as-
16
sembled’’ after ‘‘constructed’’ and ‘‘or assem-
17
bling’’ after ‘‘construction’’.
18
(B) CONFORMING
AMENDMENT.—Subpara-
19
graph (D) of section 170(e)(6) is amended by
20
inserting ‘‘or assembled’’ after ‘‘constructed’’
21
and ‘‘or assembly’’ after ‘‘construction’’.
22
(3) EFFECTIVE
DATE.—The
amendments made
23
by this subsection shall apply to taxable years begin-
24
ning after December 31, 2005.
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29
1
SEC. 117. AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS.
2
(a) IN GENERAL.—Paragraphs (2) and (3)(B) of sec-
3 tion 220(i) are each amended by striking ‘‘2005’’ each
4 place it appears in the text and headings and inserting
5 ‘‘2007’’.
6
(b) CONFORMING AMENDMENTS.—
7
(1) Paragraph (2) of section 220(j) is amend-
8
ed—
9
(A) in the text by striking ‘‘or 2004’’ each
10
place it appears and inserting ‘‘2004, 2005, or
11
2006’’, and
12
(B) in the heading by striking ‘‘OR
13
and inserting ‘‘2004,
14
(2) Subparagraph (A) of section 220(j)(4) is
15
amended by striking ‘‘and 2004’’ and inserting
16
‘‘2004, 2005, and 2006’’.
17
(c) TIME FOR FILING REPORTS, ETC.—
2005, OR 2006’’
.
18
(1) The report required by section 220(j)(4) of
19
the Internal Revenue Code of 1986 to be made on
20
August 1, 2005, or August 1, 2006, as the case may
21
be, shall be treated as timely if made before the
22
close of the 90-day period beginning on the date of
23
the enactment of this Act.
24
(2) The determination and publication required
25
by section 220(j)(5) of such Code with respect to
26
calendar year 2005 or calendar year 2006, as the
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H.L.C.
30
1
case may be, shall be treated as timely if made be-
2
fore the close of the 120-day period beginning on the
3
date of the enactment of this Act. If the determina-
4
tion under the preceding sentence is that 2005 or
5
2006 is a cut-off year under section 220(i) of such
6
Code, the cut-off date under such section 220(i)
7
shall be the last day of such 120-day period.
8
SEC. 118. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLE-
9
TION FOR OIL AND NATURAL GAS PRODUCED
10
FROM MARGINAL PROPERTIES.
11
(a) IN GENERAL.—Section 613A(c)(6)(H) is amend-
12 ed by striking ‘‘2006’’ and inserting ‘‘2008’’.
13
(b) EFFECTIVE DATE.—The amendment made by
14 subsection (a) shall apply to taxable years beginning after
15 December 31, 2005.
16
SEC. 119. AMERICAN SAMOA ECONOMIC DEVELOPMENT
17
CREDIT.
18
(a) IN GENERAL.—For purposes of section 30A of
19 the Internal Revenue Code of 1986, a domestic corpora20 tion shall be treated as a qualified domestic corporation
21 to which such section applies if such corporation—
22
(1) is an existing credit claimant with respect
23
to American Samoa, and
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H.L.C.
31
1
(2) elected the application of section 936 of the
2
Internal Revenue Code of 1986 for its last taxable
3
year beginning before January 1, 2006.
4
(b) SPECIAL RULES
5
TION.—The
FOR
APPLICATION
OF
SEC-
following rules shall apply in applying section
6 30A of the Internal Revenue Code of 1986 for purposes
7 of this section:
8
(1) AMOUNT
sec-
9
tion 30A(a)(1) of such Code, the amount of the
10
credit determined under section 30A(a)(1) of such
11
Code for any taxable year shall be the amount deter-
12
mined under section 30A(d) of such Code, except
13
that section 30A(d) shall be applied without regard
14
to paragraph (3) thereof.
15
(2) SEPARATE
APPLICATION.—In
applying sec-
16
tion 30A(a)(3) of such Code in the case of a cor-
17
poration treated as a qualified domestic corporation
18
by reason of this section, section 30A of such Code
19
(and so much of section 936 of such Code as relates
20
to such section 30A) shall be applied separately with
21
respect to American Samoa.
22
(3) FOREIGN
TAX CREDIT ALLOWED.—Notwith-
23
standing section 30A(e) of such Code, the provisions
24
of section 936(c) of such Code shall not apply with
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1
respect to the credit allowed by reason of this sec-
2
tion.
3
(c) DEFINITIONS.—For purposes of this section, any
4 term which is used in this section which is also used in
5 section 30A or 936 of such Code shall have the same
6 meaning given such term by such section 30A or 936.
7
(d) APPLICATION
OF
SECTION.—Notwithstanding
8 section 30A(h) or section 936(j) of such Code, this section
9 (and so much of section 30A and section 936 of such Code
10 as relates to this section) shall apply to the first two tax11 able years of a corporation to which subsection (a) applies
12 which begin after December 31, 2005, and before January
13 1, 2008.
14
SEC. 120. EXTENSION OF BONUS DEPRECIATION FOR CER-
15
TAIN QUALIFIED GULF OPPORTUNITY ZONE
16
PROPERTY.
17
(a) IN GENERAL.—Subsection (d) of section 1400N
18 is amended by adding at the end the following new para19 graph:
20
‘‘(6) EXTENSION
21
‘‘(A) IN
GENERAL.—In
the case of any
22
specified Gulf Opportunity Zone extension prop-
23
erty, paragraph (2)(A) shall be applied without
24
regard to clause (v) thereof.
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H.L.C.
33
1
‘‘(B) SPECIFIED
2
EXTENSION PROPERTY.—For
3
paragraph, the term ‘specified Gulf Opportunity
4
Zone extension property’ means property—
purposes of this
5
‘‘(i) substantially all of the use of
6
which is in one or more specified portions
7
of the GO Zone, and
8
‘‘(ii) which is—
9
‘‘(I) nonresidential real property
10
or residential rental property which is
11
placed in service by the taxpayer on or
12
before December 31, 2010, or
13
‘‘(II) in the case of a taxpayer
14
who places a building described in
15
subclause (I) in service on or before
16
December 31, 2010, property de-
17
scribed in section 168(k)(2)(A)(i) if
18
substantially all of the use of such
19
property is in such building and such
20
property is placed in service by the
21
taxpayer not later than 90 days after
22
such building is placed in service.
23
‘‘(C) SPECIFIED
PORTIONS OF THE GO
24
ZONE.—For
25
term ‘specified portions of the GO Zone’ means
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34
1
those portions of the GO Zone which are in any
2
county or parish which is identified by the Sec-
3
retary as being a county or parish in which hur-
4
ricanes occurring during 2005 damaged (in the
5
aggregate) more than 60 percent of the housing
6
units in such county or parish which were occu-
7
pied (determined according to the 2000 Cen-
8
sus).
9
‘‘(D) ONLY
PRE-JANUARY 1, 2010, BASIS
10
OF REAL PROPERTY ELIGIBLE FOR ADDITIONAL
11
ALLOWANCE.—In
12
qualified Gulf Opportunity Zone property solely
13
by reason of subparagraph (B)(ii)(I), paragraph
14
(1) shall apply only to the extent of the ad-
15
justed basis thereof attributable to manufac-
16
ture, construction, or production before Janu-
17
ary 1, 2010.’’.
18
the case of property which is
(b) EXTENSION NOT APPLICABLE
TO
INCREASED
19 SECTION 179 EXPENSING.—Paragraph (2) of section
20 1400N(e) is amended by inserting ‘‘without regard to sub21 section (d)(6)’’ after ‘‘subsection (d)(2)’’.
22
(c) EFFECTIVE DATE.—The amendments made by
23 this section shall take effect as if included in section 101
24 of the Gulf Opportunity Zone Act of 2005.
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1
SEC. 121. AUTHORITY FOR UNDERCOVER OPERATIONS.
2
Paragraph (6) of section 7608(c) (relating to applica-
3 tion of section) is amended by striking ‘‘2007’’ both places
4 it appears and inserting ‘‘2008’’.
5
SEC. 122. DISCLOSURES OF CERTAIN TAX RETURN INFOR-
6
MATION.
7
8
(a) DISCLOSURES
PLOYMENT
9
FACILITATE COMBINED EM-
TAX REPORTING.—
(1) IN
GENERAL.—Subparagraph
(B) of section
10
6103(d)(5) (relating to termination) is amended by
11
striking ‘‘2006’’ and inserting ‘‘2007’’.
12
(2) EFFECTIVE
DATE.—The
amendment made
13
by paragraph (1) shall apply to disclosures after De-
14
cember 31, 2006.
15
(b) DISCLOSURES RELATING
16
TO
TERRORIST ACTIVI-
TIES.—
17
(1) IN
GENERAL.—Clause
(iv) of section
18
6103(i)(3)(C) and subparagraph (E) of section
19
6103(i)(7) are each amended by striking ‘‘2006’’
20
and inserting ‘‘2007’’.
21
(2) EFFECTIVE
DATE.—The
amendments made
22
by paragraph (1) shall apply to disclosures after De-
23
cember 31, 2006.
24
(c) DISCLOSURES RELATING
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1
(1) IN
GENERAL.—Subparagraph
(D) of section
2
6103(l)(13) (relating to termination) is amended by
3
striking ‘‘2006’’ and inserting ‘‘2007’’.
4
(2) EFFECTIVE
DATE.—The
amendment made
5
by paragraph (1) shall apply to requests made after
6
December 31, 2006.
7
SEC. 123. SPECIAL RULE FOR ELECTIONS UNDER EXPIRED
8
PROVISIONS.
9
(a) RESEARCH CREDIT ELECTIONS.—In the case of
10 any taxable year ending after December 31, 2005, and be11 fore the date of the enactment of this Act, any election
12 under section 41(c)(4) or section 280C(c)(3)(C) of the In13 ternal Revenue Code of 1986 shall be treated as having
14 been timely made for such taxable year if such election
15 is made not later than the later of April 15, 2007, or such
16 time as the Secretary of the Treasury, or his designee,
17 may specify. Such election shall be made in the manner
18 prescribed by such Secretary or designee.
19
(b) OTHER ELECTIONS.—Except as otherwise pro-
20 vided by such Secretary or designee, a rule similar to the
21 rule of subsection (a) shall apply with respect to elections
22 under any other expired provision of the Internal Revenue
23 Code of 1986 the applicability of which is extended by rea24 son of the amendments made by this title.
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H.L.C.
37
2
TITLE II—ENERGY TAX
PROVISIONS
3
SEC. 201. CREDIT FOR ELECTRICITY PRODUCED FROM
1
4
CERTAIN RENEWABLE RESOURCES.
5
Subsection (d) of section 45 is amended by striking
6 ‘‘January 1, 2008’’ each place it appears and inserting
7 ‘‘January 1, 2009’’.
8
SEC. 202. CREDIT TO HOLDERS OF CLEAN RENEWABLE EN-
9
ERGY BONDS.
10
(a) IN GENERAL.—Section 54 is amended—
11
(1) by striking ‘‘$800,000,000’’ in subsection
12
(f)(1) and inserting ‘‘$1,200,000,000’’,
13
(2) by striking ‘‘$500,000,000’’ in subsection
14
(f)(2) and inserting ‘‘$750,000,000’’, and
15
(3) by striking ‘‘December 31, 2007’’ in sub-
16
section (m) and inserting ‘‘December 31, 2008’’.
17
(b) EFFECTIVE DATES.—
18
(1) IN
amendments made by
19
paragraphs (1) and (3) of subsection (a) shall apply
20
to bonds issued after December 31, 2006.
21
(2) ALLOCATIONS.—The amendment made by
22
subsection (a)(2) shall apply to allocations or re-
23
allocations after December 31, 2006.
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1
SEC. 203. PERFORMANCE STANDARDS FOR SULFUR DIOX-
2
IDE REMOVAL IN ADVANCED COAL-BASED
3
GENERATION TECHNOLOGY UNITS DESIGNED
4
TO USE SUBBITUMINOUS COAL.
5
(a) IN GENERAL.—Paragraph (1) of section 48A(f)
6 (relating to advanced coal-based generation technology) is
7 amended by adding at the end the following new flush sen8 tence:
9
‘‘For purposes of the performance requirement spec-
10
ified for the removal of SO2 in the table contained
11
in subparagraph (B), the SO2 removal design level
12
in the case of a unit designed for the use of feed-
13
stock substantially all of which is subbituminous coal
14
shall be 99 percent SO2 removal or the achievement
15
of an emission level of 0.04 pounds or less of SO2
16
per million Btu, determined on a 30-day average.’’.
17
(b) EFFECTIVE DATE.—The amendment made by
18 this section shall take apply with respect to applications
19 for certification under section 48A(d)(2) of the Internal
20 Revenue Code of 1986 submitted after October 2, 2006.
21
SEC. 204. DEDUCTION FOR ENERGY EFFICIENT COMMER-
22
CIAL BUILDINGS.
23
Subsection (h) of section 179D is amended by strik-
24 ing ‘‘December 31, 2007’’ and inserting ‘‘December 31,
25 2008’’.
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H.L.C.
39
1
SEC. 205. CREDIT FOR NEW ENERGY EFFICIENT HOMES.
2
Subsection (g) of section 45L is amended by striking
3 ‘‘December 31, 2007’’ and inserting ‘‘December 31,
4 2008’’.
5
SEC. 206. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT
6
PROPERTY.
7
(a) EXTENSION.—Subsection (g) of section 25D is
8 amended by striking ‘‘December 31, 2007’’ and inserting
9 ‘‘December 31, 2008’’.
10
(b) CLARIFICATION OF TERM.—
11
(1)
(a)(1),
(b)(1)(A),
and
12
(e)(4)(A)(i) of section 25D are each amended by
13
striking ‘‘qualified photovoltaic property expendi-
14
tures’’ and inserting ‘‘qualified solar electric prop-
15
erty expenditures’’.
16
(2) Section 25D(d)(2) is amended—
17
(A) by striking ‘‘qualified photovoltaic
18
property expenditure’’ and inserting ‘‘qualified
19
solar electric property expenditure’’, and
20
(B) in the heading by striking ‘‘QUALIFIED
21
PHOTOVOLTAIC PROPERTY EXPENDITURE’’
22
inserting ‘‘QUALIFIED
23
ERTY EXPENDITURE’’.
24
Section 48 is amended—
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SOLAR ELECTRIC PROP-
SEC. 207. ENERGY CREDIT.
25
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1
(1) by striking ‘‘January 1, 2008’’ both places
2
it appears and inserting ‘‘January 1, 2009’’, and
3
(2) by striking ‘‘December 31, 2007’’ both
4
places it appears and inserting ‘‘December 31,
5
2008’’.
6
SEC. 208. SPECIAL RULE FOR QUALIFIED METHANOL OR
7
ETHANOL FUEL.
8
(a) EXTENSION.—Subparagraph (D) of section
9 4041(b)(2) is amended by striking ‘‘October 1, 2007’’ and
10 inserting ‘‘January 1, 2009’’.
11
(b)
APPLICABLE
BLENDER
RATE.—Section
12 4041(b)(2)(C)(ii) is amended by striking ‘‘2007’’ and in13 serting ‘‘2008’’.
14
(c) CLERICAL AMENDMENT.—The heading for sec-
15 tion 4041(b)(2)(B) is amended to read as follows: ‘‘QUALI16
FIED METHANOL AND ETHANOL FUEL PRODUCED FROM
17
COAL’’.
18
SEC. 209. SPECIAL DEPRECIATION ALLOWANCE FOR CEL-
19
LULOSIC BIOMASS ETHANOL PLANT PROP-
20
ERTY.
21
(a) IN GENERAL.—Section 168 (relating to acceler-
22 ated cost recovery system) is amended by adding at the
23 end the following:
24
25
‘‘(l) SPECIAL ALLOWANCE
MASS
21:12 Dec 07, 2006
CELLULOSIC BIO-
ETHANOL PLANT PROPERTY.—
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1
‘‘(1) ADDITIONAL
the case of
2
any qualified cellulosic biomass ethanol plant prop-
3
erty—
4
‘‘(A) the depreciation deduction provided
5
by section 167(a) for the taxable year in which
6
such property is placed in service shall include
7
an allowance equal to 50 percent of the ad-
8
justed basis of such property, and
9
‘‘(B) the adjusted basis of such property
10
shall be reduced by the amount of such deduc-
11
tion before computing the amount otherwise al-
12
lowable as a depreciation deduction under this
13
chapter for such taxable year and any subse-
14
quent taxable year.
15
‘‘(2) QUALIFIED
CELLULOSIC BIOMASS ETH-
16
ANOL PLANT PROPERTY.—The
17
lulosic biomass ethanol plant property’ means prop-
18
erty of a character subject to the allowance for de-
19
preciation—
20
term ‘qualified cel-
‘‘(A) which is used in the United States
21
solely to produce cellulosic biomass ethanol,
22
‘‘(B) the original use of which commences
23
with the taxpayer after the date of the enact-
24
ment of this subsection,
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1
‘‘(C) which is acquired by the taxpayer by
2
purchase (as defined in section 179(d)) after
3
the date of the enactment of this subsection,
4
but only if no written binding contract for the
5
acquisition was in effect on or before the date
6
of the enactment of this subsection, and
7
‘‘(D) which is placed in service by the tax-
8
payer before January 1, 2013.
9
‘‘(3) CELLULOSIC
ETHANOL.—For
10
purposes of this subsection, the term ‘cellulosic bio-
11
mass ethanol’ means ethanol produced by enzymatic
12
hydrolysis of any lignocellulosic or hemicellulosic
13
matter that is available on a renewable or recurring
14
basis.
15
‘‘(4) EXCEPTIONS.—
16
‘‘(A) ALTERNATIVE
DEPRECIATION PROP-
17
ERTY.—Such
18
erty described in section 168(k)(2)(D)(i).
19
term shall not include any prop-
‘‘(B) TAX-EXEMPT
BOND-FINANCED PROP-
20
ERTY.—Such
21
erty any portion of which is financed with the
22
proceeds of any obligation the interest on which
23
is exempt from tax under section 103.
24
‘‘(C)
25
21:12 Dec 07, 2006
term shall not include any prop-
ELECTION
OUT.—If
a
taxpayer
makes an election under this subparagraph with
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1
respect to any class of property for any taxable
2
year, this subsection shall not apply to all prop-
3
erty in such class placed in service during such
4
taxable year.
5
‘‘(5) SPECIAL
purposes of this
6
subsection, rules similar to the rules of subpara-
7
graph (E) of section 168(k)(2) shall apply, except
8
that such subparagraph shall be applied—
9
‘‘(A) by substituting ‘the date of the enact-
10
ment of subsection (l)’ for ‘September 10,
11
2001’ each place it appears therein,
12
‘‘(B) by substituting ‘January 1, 2013’ for
13
‘January 1, 2005’ in clause (i) thereof, and
14
‘‘(C) by substituting ‘qualified cellulosic
15
biomass ethanol plant property’ for ‘qualified
16
property’ in clause (iv) thereof.
17
‘‘(6) ALLOWANCE
AGAINST ALTERNATIVE MIN-
18
IMUM TAX.—For
19
similar to the rules of section 168(k)(2)(G) shall
20
apply.
purposes of this subsection, rules
21
‘‘(7) RECAPTURE.—For purposes of this sub-
22
section, rules similar to the rules under section
23
179(d)(10) shall apply with respect to any qualified
24
cellulosic biomass ethanol plant property which
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44
1
ceases to be qualified cellulosic biomass ethanol
2
plant property.
3
‘‘(8) DENIAL
OF
DOUBLE
BENEFIT.—Para-
4
graph (1) shall not apply to any qualified cellulosic
5
biomass ethanol plant property with respect to which
6
an election has been made under section 179C (re-
7
lating to election to expense certain refineries).’’.
8
(b) EFFECTIVE DATE.—The amendment made by
9 this section shall apply to property placed in service after
10 the date of the enactment of this Act in taxable years end11 ing after such date.
12
SEC. 210. EXPENDITURES PERMITTED FROM THE LEAKING
13
UNDERGROUND
14
FUND.
15
STORAGE
TANK
TRUST
(a) IN GENERAL.—Subsection (c) of section 9508 is
16 amended—
17
(1) by striking ‘‘section 9003(h)’’ and inserting
18
‘‘sections
19
9005(c), 9010, 9011, 9012, and 9013’’, and
9003(h),
9003(i),
9003(j),
9004(f),
20
(2) by striking ‘‘Superfund Amendments and
21
Reauthorization Act of 1986’’ and inserting ‘‘Public
22
Law 109–168’’.
23
(b) CONFORMING AMENDMENTS.—Section 9014(2)
24 of the Solid Waste Disposal Act is amended by striking
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45
1 ‘‘Fund, notwithstanding section 9508(c)(1) of the Internal
2 Revenue Code of 1986’’ and inserting ‘‘Fund’’.
3
(c) EFFECTIVE DATE.—The amendments made by
4 this section shall take effect on the date of the enactment
5 of this Act.
6
SEC. 211. TREATMENT OF COKE AND COKE GAS.
7
(a)
NONAPPLICATION
OF
PHASEOUT.—Section
8 45K(g)(2) is amended by adding at the end the following
9 new subparagraph:
10
‘‘(D) NONAPPLICATION
11
OF PHASEOUT.—
Subsection (b)(1) shall not apply.’’.
12
(b) CLARIFICATION
OF
QUALIFYING FACILITY.—Sec-
13 tion 45K(g)(1) is amended by inserting ‘‘(other than from
14 petroleum based products)’’ after ‘‘coke or coke gas’’.
15
(c) EFFECTIVE DATE.—The amendments made by
16 this section shall take effect as if included in section 1321
17 of the Energy Policy Act of 2005.
TITLE III—HEALTH SAVINGS
ACCOUNTS
18
19
20
SEC. 301. SHORT TITLE.
21
This title may be cited as the ‘‘Health Opportunity
22 Patient Empowerment Act of 2006’’.
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46
1
SEC. 302. FSA AND HRA TERMINATIONS TO FUND HSAS.
2
(a) IN GENERAL.—Section 106 (relating to contribu-
3 tions by employer to accident and health plans) is amend4 ed by adding at the end the following new subsection:
5
‘‘(e) FSA
AND
HRA TERMINATIONS
TO
FUND
6 HSAS.—
7
‘‘(1) IN
plan shall not fail to be
8
treated as a health flexible spending arrangement or
9
health reimbursement arrangement under this sec-
10
tion or section 105 merely because such plan pro-
11
vides for a qualified HSA distribution.
12
‘‘(2)
QUALIFIED
HSA
DISTRIBUTION.—The
13
term ‘qualified HSA distribution’ means a distribu-
14
tion from a health flexible spending arrangement or
15
health reimbursement arrangement to the extent
16
that such distribution—
17
‘‘(A) does not exceed the lesser of the bal-
18
ance in such arrangement on September 21,
19
2006, or as of the date of such distribution,
20
and
21
‘‘(B) is contributed by the employer di-
22
rectly to the health savings account of the em-
23
ployee before January 1, 2012.
24
Such term shall not include more than 1 distribution
25
with respect to any arrangement.
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47
1
‘‘(3) ADDITIONAL
2
TAIN
3
ERAGE.—
HIGH
4
DEDUCTIBLE
‘‘(A) IN
HEALTH
GENERAL.—If,
PLAN
COV-
at any time during
5
the testing period, the employee is not an eligi-
6
ble individual, then the amount of the qualified
7
HSA distribution—
8
‘‘(i) shall be includible in the gross in-
9
come of the employee for the taxable year
10
in which occurs the first month in the test-
11
ing period for which such employee is not
12
an eligible individual, and
13
‘‘(ii) the tax imposed by this chapter
14
for such taxable year on the employee shall
15
be increased by 10 percent of the amount
16
which is so includible.
17
‘‘(B) EXCEPTION
FOR
DISABILITY
OR
18
DEATH.—Clauses
19
(A) shall not apply if the employee ceases to be
20
an eligible individual by reason of the death of
21
the employee or the employee becoming disabled
22
(within the meaning of section 72(m)(7)).
23
‘‘(4) DEFINITIONS
24
purposes of this subsection—
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AND SPECIAL RULES.—For
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48
1
‘‘(A) TESTING
term ‘testing
2
period’ means the period beginning with the
3
month in which the qualified HSA distribution
4
is contributed to the health savings account and
5
ending on the last day of the 12th month fol-
6
lowing such month.
7
‘‘(B) ELIGIBLE
INDIVIDUAL.—The
term
8
‘eligible individual’ has the meaning given such
9
term by section 223(c)(1).
10
‘‘(C) TREATMENT
AS
ROLLOVER
CON-
11
TRIBUTION.—A
12
be treated as a rollover contribution described
13
in section 223(f)(5).
14
‘‘(5) TAX
15
TIONS.—For
16
qualified HSA distribution shall
TREATMENT RELATING TO DISTRIBU-
purposes of this title—
‘‘(A) IN
GENERAL.—A
qualified HSA dis-
17
tribution shall be treated as a payment de-
18
scribed in subsection (d).
19
‘‘(B) COMPARABILITY
20
‘‘(i) IN
EXCISE TAX.—
GENERAL.—Except
as pro-
21
vided in clause (ii), section 4980G shall
22
not apply to qualified HSA distributions.
23
‘‘(ii) FAILURE
TO OFFER TO ALL EM-
24
PLOYEES.—In
25
distribution to any employee, the failure to
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49
1
offer such distribution to any eligible indi-
2
vidual covered under a high deductible
3
health plan of the employer shall (notwith-
4
standing section 4980G(d)) be treated for
5
purposes of section 4980G as a failure to
6
meet
7
4980G(b).’’.
8
9
the
requirements
of
section
(b) CERTAIN FSA COVERAGE DISREGARDED COVERAGE.—Subparagraph
(B) of section 223(c)(1) (relating
10 to certain coverage disregarded) is amended by striking
11 ‘‘and’’ at the end of clause (i), by striking the period at
12 the end of clause (ii) and inserting ‘‘, and’’, and by insert13 ing after clause (ii) the following new clause:
14
‘‘(iii) for taxable years beginning after
15
December 31, 2006, coverage under a
16
health flexible spending arrangement dur-
17
ing any period immediately following the
18
end of a plan year of such arrangement
19
during which unused benefits or contribu-
20
tions remaining at the end of such plan
21
year may be paid or reimbursed to plan
22
participants for qualified benefit expenses
23
incurred during such period if—
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50
1
‘‘(I) the balance in such arrange-
2
ment at the end of such plan year is
3
zero, or
4
‘‘(II) the individual is making a
5
qualified HSA distribution (as defined
6
in section 106(e)) in an amount equal
7
to the remaining balance in such ar-
8
rangement as of the end of such plan
9
year, in accordance with rules pre-
10
scribed by the Secretary.’’.
11
(c) APPLICATION OF SECTION.—
12
(1) SUBSECTION (a).—The amendment made
13
by subsection (a) shall apply to distributions on or
14
after the date of the enactment of this Act.
15
(2) SUBSECTION (b).—The amendment made
16
by subsection (b) shall take effect on the date of the
17
enactment of this Act.
18
SEC. 303. REPEAL OF ANNUAL DEDUCTIBLE LIMITATION
19
ON HSA CONTRIBUTIONS.
20
(a) IN GENERAL.—Paragraph (2) of section 223(b)
21 (relating to monthly limitation) is amended—
22
(1) in subparagraph (A) by striking ‘‘the lesser
23
of—’’ and all that follows and inserting ‘‘$2,250.’’,
24
and
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51
1
(2) in subparagraph (B) by striking ‘‘the lesser
2
of—’’ and all that follows and inserting ‘‘$4,500.’’.
3
(b)
CONFORMING
AMENDMENT.—Section
4 223(d)(1)(A)(ii)(I) is amended by striking ‘‘subsection
5 (b)(2)(B)(ii)’’ and inserting ‘‘subsection (b)(2)(B)’’.
6
(c) EFFECTIVE DATE.—The amendments made by
7 this section shall apply to taxable years beginning after
8 December 31, 2006.
9
SEC. 304. MODIFICATION OF COST-OF-LIVING ADJUSTMENT.
10
Paragraph (1) of section 223(g) (relating to cost-of-
11 living adjustment) is amended by adding at the end the
12 following new flush sentence:
13
‘‘In the case of adjustments made for any taxable
14
year beginning after 2007, section 1(f)(4) shall be
15
applied for purposes of this paragraph by sub-
16
stituting ‘March 31’ for ‘August 31’, and the Sec-
17
retary shall publish the adjusted amounts under sub-
18
sections (b)(2) and (c)(2)(A) for taxable years begin-
19
ning in any calendar year no later than June 1 of
20
the preceding calendar year.’’.
21
SEC. 305. CONTRIBUTION LIMITATION NOT REDUCED FOR
22
PART-YEAR COVERAGE.
23
(a) INCREASE IN LIMIT FOR INDIVIDUALS BECOMING
24 ELIGIBLE INDIVIDUALS AFTER BEGINNING
OF
THE
25 YEAR.—Subsection (b) of section 223 (relating to limita-
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52
1 tions) is amended by adding at the end the following new
2 paragraph:
3
‘‘(8) INCREASE
4
COMING ELIGIBLE INDIVIDUALS AFTER THE BEGIN-
5
NING OF THE YEAR.—
6
‘‘(A) IN
GENERAL.—For
purposes of com-
7
puting the limitation under paragraph (1) for
8
any taxable year, an individual who is an eligi-
9
ble individual during the last month of such
10
taxable year shall be treated—
11
‘‘(i) as having been an eligible indi-
12
vidual during each of the months in such
13
taxable year, and
14
‘‘(ii) as having been enrolled, during
15
each of the months such individual is
16
treated as an eligible individual solely by
17
reason of clause (i), in the same high de-
18
ductible health plan in which the individual
19
was enrolled for the last month of such
20
taxable year.
21
‘‘(B) FAILURE
22
TO MAINTAIN HIGH DE-
DUCTIBLE HEALTH PLAN COVERAGE.—
23
‘‘(i) IN
GENERAL.—If,
at any time
24
during the testing period, the individual is
25
not an eligible individual, then—
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53
1
‘‘(I) gross income of the indi-
2
vidual for the taxable year in which
3
occurs the first month in the testing
4
period for which such individual is not
5
an eligible individual is increased by
6
the aggregate amount of all contribu-
7
tions to the health savings account of
8
the individual which could not have
9
been made but for subparagraph (A),
10
and
11
‘‘(II) the tax imposed by this
12
chapter for any taxable year on the
13
individual shall be increased by 10
14
percent of the amount of such in-
15
crease.
16
‘‘(ii) EXCEPTION
17
DEATH.—Subclauses
18
(i) shall not apply if the individual ceased
19
to be an eligible individual by reason of the
20
death of the individual or the individual
21
becoming disabled (within the meaning of
22
section 72(m)(7)).
23
‘‘(iii) TESTING
(I) and (II) of clause
PERIOD.—The
term
24
‘testing period’ means the period beginning
25
with the last month of the taxable year re-
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54
1
ferred to in subparagraph (A) and ending
2
on the last day of the 12th month fol-
3
lowing such month.’’.
4
(b) EFFECTIVE DATE.—The amendments made by
5 this section shall apply to taxable years beginning after
6 December 31, 2006.
7
SEC. 306. EXCEPTION TO REQUIREMENT FOR EMPLOYERS
8
TO MAKE COMPARABLE HEALTH SAVINGS AC-
9
COUNT CONTRIBUTIONS.
10
(a) IN GENERAL.—Section 4980G (relating to failure
11 of employer to make comparable health savings account
12 contributions) is amended by adding at the end the fol13 lowing new subsection:
14
‘‘(d) EXCEPTION.—For purposes of applying section
15 4980E to a contribution to a health savings account of
16 an employee who is not a highly compensated employee
17 (as defined in section 414(q)), highly compensated em18 ployees shall not be treated as comparable participating
19 employees.’’.
20
(b) EFFECTIVE DATE.—The amendment made by
21 this section shall apply to taxable years beginning after
22 December 31, 2006.
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1
SEC. 307. ONE-TIME DISTRIBUTION FROM INDIVIDUAL RE-
2
TIREMENT PLANS TO FUND HSAS.
3
(a) IN GENERAL.—Subsection (d) of section 408 (re-
4 lating to taxability of beneficiary of employees’ trust) is
5 amended by adding at the end the following new para6 graph:
7
‘‘(9) DISTRIBUTION
8
COUNT FUNDING.—
9
‘‘(A) IN
GENERAL.—In
the case of an indi-
10
vidual who is an eligible individual (as defined
11
in section 223(c)) and who elects the applica-
12
tion of this paragraph for a taxable year, gross
13
income of the individual for the taxable year
14
does not include a qualified HSA funding dis-
15
tribution to the extent such distribution is oth-
16
erwise includible in gross income.
17
‘‘(B) QUALIFIED
HSA FUNDING DISTRIBU-
18
TION.—For
19
term
20
means a distribution from an individual retire-
21
ment plan (other than a plan described in sub-
22
section (k) or (p)) of the employee to the extent
23
that such distribution is contributed to the
24
health savings account of the individual in a di-
25
rect trustee-to-trustee transfer.
26
‘‘(C) LIMITATIONS.—
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‘qualified
HSA
funding
distribution’
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1
‘‘(i)
DOLLAR
LIMITA-
2
TION.—The
3
income by subparagraph (A) shall not ex-
4
ceed the excess of—
amount excluded from gross
5
‘‘(I) the annual limitation under
6
section 223(b) computed on the basis
7
of the type of coverage under the high
8
deductible health plan covering the in-
9
dividual at the time of the qualified
10
HSA funding distribution, over
11
‘‘(II) in the case of a distribution
12
described
13
amount of the earlier qualified HSA
14
funding distribution.
15
‘‘(ii) ONE-TIME
16
in
‘‘(I) IN
clause
(ii)(II),
the
TRANSFER.—
GENERAL.—Except
as
17
provided in subclause (II), an indi-
18
vidual may make an election under
19
subparagraph (A) only for one quali-
20
fied HSA funding distribution during
21
the lifetime of the individual. Such an
22
election, once made, shall be irrev-
23
ocable.
24
‘‘(II) CONVERSION
25
21:12 Dec 07, 2006
FROM SELF-
ONLY TO FAMILY COVERAGE.—If
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57
1
qualified HSA funding distribution is
2
made during a month in a taxable
3
year during which an individual has
4
self-only coverage under a high de-
5
ductible health plan as of the first day
6
of the month, the individual may elect
7
to make an additional qualified HSA
8
funding distribution during a subse-
9
quent month in such taxable year dur-
10
ing which the individual has family
11
coverage under a high deductible
12
health plan as of the first day of the
13
subsequent month.
14
‘‘(D) FAILURE
15
DUCTIBLE HEALTH PLAN COVERAGE.—
16
‘‘(i) IN
GENERAL.—If,
at any time
17
during the testing period, the individual is
18
not an eligible individual, then the aggre-
19
gate amount of all contributions to the
20
health savings account of the individual
21
made under subparagraph (A)—
22
‘‘(I) shall be includible in the
23
gross income of the individual for the
24
taxable year in which occurs the first
25
month in the testing period for which
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58
1
such individual is not an eligible indi-
2
vidual, and
3
‘‘(II) the tax imposed by this
4
chapter for any taxable year on the
5
individual shall be increased by 10
6
percent of the amount which is so in-
7
cludible.
8
‘‘(ii) EXCEPTION
9
DEATH.—Subclauses
(I) and (II) of clause
10
(i) shall not apply if the individual ceased
11
to be an eligible individual by reason of the
12
death of the individual or the individual
13
becoming disabled (within the meaning of
14
section 72(m)(7)).
15
‘‘(iii) TESTING
PERIOD.—The
term
16
‘testing period’ means the period beginning
17
with the month in which the qualified HSA
18
funding distribution is contributed to a
19
health savings account and ending on the
20
last day of the 12th month following such
21
month.
22
‘‘(E) APPLICATION
OF SECTION 72.—Not-
23
withstanding section 72, in determining the ex-
24
tent to which an amount is treated as otherwise
25
includible in gross income for purposes of sub-
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59
1
paragraph (A), the aggregate amount distrib-
2
uted from an individual retirement plan shall be
3
treated as includible in gross income to the ex-
4
tent that such amount does not exceed the ag-
5
gregate amount which would have been so in-
6
cludible if all amounts from all individual retire-
7
ment plans were distributed. Proper adjust-
8
ments shall be made in applying section 72 to
9
other distributions in such taxable year and
10
subsequent taxable years.’’.
11
12
(b) COORDINATION WITH LIMITATION
TRIBUTIONS TO
ON
CON-
HSAS.—Section 223(b)(4) (relating to co-
13 ordination with other contributions) is amended by strik14 ing ‘‘and’’ at the end of subparagraph (A), by striking
15 the period at the end of subparagraph (B) and inserting
16 ‘‘, and’’, and by inserting after subparagraph (B) the fol17 lowing new subparagraph:
18
‘‘(C) the aggregate amount contributed to
19
health savings accounts of such individual for
20
such taxable year under section 408(d)(9) (and
21
such amount shall not be allowed as a deduc-
22
tion under subsection (a)).’’.
23
(c) EFFECTIVE DATE.—The amendments made by
24 this section shall apply to taxable years beginning after
25 December 31, 2006.
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1
TITLE IV—OTHER PROVISIONS
2
SEC. 401. DEDUCTION ALLOWABLE WITH RESPECT TO IN-
3
COME ATTRIBUTABLE TO DOMESTIC PRO-
4
DUCTION ACTIVITIES IN PUERTO RICO.
5
(a) IN GENERAL.—Subsection (d) of section 199 (re-
6 lating to definitions and special rules) is amended by re7 designating paragraph (8) as paragraph (9) and by insert8 ing after paragraph (7) the following new paragraph:
9
‘‘(8) TREATMENT
10
RICO.—
11
‘‘(A) IN
GENERAL.—In
the case of any
12
taxpayer with gross receipts for any taxable
13
year from sources within the Commonwealth of
14
Puerto Rico, if all of such receipts are taxable
15
under section 1 or 11 for such taxable year,
16
then for purposes of determining the domestic
17
production gross receipts of such taxpayer for
18
such taxable year under subsection (c)(4), the
19
term ‘United States’ shall include the Common-
20
wealth of Puerto Rico.
21
‘‘(B) SPECIAL
RULE FOR APPLYING WAGE
22
LIMITATION.—In
23
scribed in subparagraph (A), for purposes of
24
applying the limitation under subsection (b) for
25
any taxable year, the determination of W–2
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1
wages of such taxpayer shall be made without
2
regard
3
3401(a)(8) for remuneration paid for services
4
performed in Puerto Rico.
to
any
exclusion
under
section
5
‘‘(C) TERMINATION.—This paragraph shall
6
apply only with respect to the first 2 taxable
7
years of the taxpayer beginning after December
8
31, 2005, and before January 1, 2008.’’.
9
(b) EFFECTIVE DATE.—The amendments made by
10 subsection (a) shall apply to taxable years beginning after
11 December 31, 2005.
12
SEC. 402. CREDIT FOR PRIOR YEAR MINIMUM TAX LIABIL-
13
ITY MADE REFUNDABLE AFTER PERIOD OF
14
YEARS.
15
(a) IN GENERAL.—Section 53 (relating to credit for
16 prior year minimum tax liability) is amended by adding
17 at the end the following new subsection:
18
‘‘(e) SPECIAL RULE
FOR
INDIVIDUALS WITH LONG-
19 TERM UNUSED CREDITS.—
20
‘‘(1) IN
an individual has a long-
21
term unused minimum tax credit for any taxable
22
year beginning before January 1, 2013, the amount
23
determined under subsection (c) for such taxable
24
year shall not be less than the AMT refundable cred-
25
it amount for such taxable year.
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H.L.C.
62
1
‘‘(2) AMT
2
purposes of paragraph (1)—
3
‘‘(A) IN
GENERAL.—The
term ‘AMT re-
4
fundable credit amount’ means, with respect to
5
any taxable year, the amount equal to the
6
greater of—
7
‘‘(i) the lesser of—
8
‘‘(I) $5,000, or
9
‘‘(II) the amount of long-term
10
unused minimum tax credit for such
11
taxable year, or
12
‘‘(ii) 20 percent of the amount of such
13
credit.
14
‘‘(B) PHASEOUT
15
OF
AMT
REFUNDABLE
GENERAL.—In
the case of an
CREDIT AMOUNT.—
16
‘‘(i) IN
17
individual whose adjusted gross income for
18
any taxable year exceeds the threshold
19
amount (within the meaning of section
20
151(d)(3)(C)), the AMT refundable credit
21
amount determined under subparagraph
22
(A) for such taxable year shall be reduced
23
by the applicable percentage (within the
24
meaning of section 151(d)(3)(B)).
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63
1
‘‘(ii) ADJUSTED
2
purposes of clause (i), adjusted gross in-
3
come shall be determined without regard to
4
sections 911, 931, and 933.
5
‘‘(3) LONG-TERM
6
UNUSED MINIMUM TAX CRED-
IT.—
7
‘‘(A) IN
GENERAL.—For
purposes of this
8
subsection, the term ‘long-term unused min-
9
imum tax credit’ means, with respect to any
10
taxable year, the portion of the minimum tax
11
credit determined under subsection (b) attrib-
12
utable to the adjusted net minimum tax for tax-
13
able years before the 3rd taxable year imme-
14
diately preceding such taxable year.
15
‘‘(B)
FIRST-IN,
FIRST-OUT
ORDERING
16
RULE.—For
17
credits shall be treated as allowed under sub-
18
section (a) on a first-in, first-out basis.
19
‘‘(4) CREDIT
purposes of subparagraph (A),
REFUNDABLE.—For
purposes of
20
this title (other than this section), the credit allowed
21
by reason of this subsection shall be treated as if it
22
were allowed under subpart C.’’.
23
(b) CONFORMING AMENDMENTS.—
24
(1) Section 6211(b)(4)(A) is amended by strik-
25
ing ‘‘and 34’’ and inserting ‘‘34, and 53(e)’’.
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64
1
(2) Paragraph (2) of section 1324(b) of title
2
31, United States Code, is amended by inserting ‘‘or
3
53(e)’’ after ‘‘section 35’’.
4
(c) EFFECTIVE DATE.—The amendments made by
5 this section shall apply to taxable years beginning after
6 the date of the enactment of this Act.
7
SEC. 403. RETURNS REQUIRED IN CONNECTION WITH CER-
8
TAIN OPTIONS.
9
(a) IN GENERAL.—So much of section 6039(a) as fol-
10 lows paragraph (2) is amended to read as follows:
11 ‘‘shall, for such calendar year, make a return at such time
12 and in such manner, and setting forth such information,
13 as the Secretary may by regulations prescribe.’’.
14
(b) STATEMENTS
TO
PERSONS WITH RESPECT
TO
15 WHOM INFORMATION IS FURNISHED.—Section 6039 is
16 amended by redesignating subsections (b) and (c) as sub17 section (c) and (d), respectively, and by inserting after
18 subsection (a) the following new subsection:
19
‘‘(b) STATEMENTS TO BE FURNISHED
20 WITH RESPECT
21
PORTED.—Every
TO
TO
PERSONS
WHOM INFORMATION IS RE-
corporation making a return under sub-
22 section (a) shall furnish to each person whose name is set
23 forth in such return a written statement setting forth such
24 information as the Secretary may by regulations prescribe.
25 The written statement required under the preceding sen-
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H.L.C.
65
1 tence shall be furnished to such person on or before Janu2 ary 31 of the year following the calendar year for which
3 the return under subsection (a) was made.’’.
4
(c) CONFORMING AMENDMENTS.—
5
(1) Section 6724(d)(1)(B) is amended by strik-
6
ing ‘‘or’’ at the end of clause (xvii), by striking
7
‘‘and’’ at the end of clause (xviii) and inserting ‘‘or’’,
8
and by adding at the end the following new clause:
9
‘‘(xix) section 6039(a) (relating to re-
10
turns required with respect to certain op-
11
tions), and’’.
12
(2) Section 6724(d)(2)(B) is amended by strik-
13
ing
14
6039(b)’’.
6039(a)’’
and
inserting
‘‘section
15
(3) The heading of section 6039 and the item
16
relating to such section in the table of sections of
17
subpart A of part III of subchapter A of chapter 61
18
of such Code are each amended by striking ‘‘Infor-
19
mation’’ and inserting ‘‘Returns’’.
20
(4) The heading of subsection (a) of section
21
6039 is amended by striking ‘‘FURNISHING
OF
IN -
22
FORMATION’’
OF
RE -
23
PORTING’’.
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1
(d) EFFECTIVE DATE.—The amendments made by
2 this section shall apply to calendar years beginning after
3 the date of the enactment of this Act.
4
SEC. 404. PARTIAL EXPENSING FOR ADVANCED MINE SAFE-
5
TY EQUIPMENT.
6
(a) IN GENERAL.—Part VI of subchapter B of chap-
7 ter 1 is amended by inserting after section 179D the fol8 lowing new section:
9
‘‘SEC. 179E. ELECTION TO EXPENSE ADVANCED MINE SAFE-
10
TY EQUIPMENT.
11
‘‘(a) TREATMENT
AS
EXPENSES.—A taxpayer may
12 elect to treat 50 percent of the cost of any qualified ad13 vanced mine safety equipment property as an expense
14 which is not chargeable to capital account. Any cost so
15 treated shall be allowed as a deduction for the taxable year
16 in which the qualified advanced mine safety equipment
17 property is placed in service.
18
‘‘(b) ELECTION.—
19
‘‘(1) IN
election under this sec-
20
tion for any taxable year shall be made on the tax-
21
payer’s return of the tax imposed by this chapter for
22
the taxable year. Such election shall specify the ad-
23
vanced mine safety equipment property to which the
24
election applies and shall be made in such manner
25
as the Secretary may by regulations prescribe.
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67
1
‘‘(2) ELECTION
IRREVOCABLE.—Any
election
2
made under this section may not be revoked except
3
with the consent of the Secretary.
4
‘‘(c) QUALIFIED ADVANCED MINE SAFETY EQUIP-
5
MENT
PROPERTY.—For purposes of this section, the term
6 ‘qualified advanced mine safety equipment property’
7 means any advanced mine safety equipment property for
8 use in any underground mine located in the United
9 States—
10
‘‘(1) the original use of which commences with
11
the taxpayer, and
12
‘‘(2) which is placed in service by the taxpayer
13
after the date of the enactment of this section.
14
‘‘(d) ADVANCED MINE SAFETY EQUIPMENT PROP-
15
ERTY.—For
purposes of this section, the term ‘advanced
16 mine safety equipment property’ means any of the fol17 lowing:
18
‘‘(1) Emergency communication technology or
19
device which is used to allow a miner to maintain
20
constant communication with an individual who is
21
not in the mine.
22
‘‘(2) Electronic identification and location de-
23
vice which allows an individual who is not in the
24
mine to track at all times the movements and loca-
25
tion of miners working in or at the mine.
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68
1
‘‘(3) Emergency oxygen-generating, self-rescue
2
device which provides oxygen for at least 90 min-
3
utes.
4
‘‘(4) Pre-positioned supplies of oxygen which (in
5
combination with self-rescue devices) can be used to
6
provide each miner on a shift, in the event of an ac-
7
cident or other event which traps the miner in the
8
mine or otherwise necessitates the use of such a self-
9
rescue device, the ability to survive for at least 48
10
hours.
11
‘‘(5) Comprehensive atmospheric monitoring
12
system which monitors the levels of carbon mon-
13
oxide, methane, and oxygen that are present in all
14
areas of the mine and which can detect smoke in the
15
case of a fire in a mine.
16
‘‘(e) COORDINATION WITH SECTION 179.—No ex-
17 penditures shall be taken into account under subsection
18 (a) with respect to the portion of the cost of any property
19 specified in an election under section 179.
20
‘‘(f) REPORTING.—No deduction shall be allowed
21 under subsection (a) to any taxpayer for any taxable year
22 unless such taxpayer files with the Secretary a report con23 taining such information with respect to the operation of
24 the mines of the taxpayer as the Secretary shall require.
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1
‘‘(g) TERMINATION.—This section shall not apply to
2 property placed in service after December 31, 2008.’’.
3
(b) CONFORMING AMENDMENTS.—
4
(1) Section 263(a)(1) is amended by striking
5
‘‘or’’ at the end of subparagraph (J), by striking the
6
period at the end of subparagraph (K) and inserting
7
‘‘, or’’, and by inserting after subparagraph (K) the
8
following new subparagraph:
9
‘‘(L) expenditures for which a deduction is
10
allowed under section 179E.’’.
11
(2) Section 312(k)(3)(B) is amended by strik-
12
ing ‘‘or 179D’’ each place it appears in the heading
13
and text thereof and inserting ‘‘179D, or 179E’’.
14
(3) Paragraphs (2)(C) and (3)(C) of section
15
1245(a) are each amended by inserting ‘‘179E,’’
16
after ‘‘179D,’’.
17
(4) The table of sections for part VI of sub-
18
chapter B of chapter 1 is amended by inserting after
19
the item relating to section 179D the following new
20
item:
‘‘Sec. 179E. Election to expense advanced mine safety equipment.’’.
21
(c) EFFECTIVE DATE.—The amendments made by
22 this section shall apply to costs paid or incurred after the
23 date of the enactment of this Act.
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1
SEC. 405. MINE RESCUE TEAM TRAINING TAX CREDIT.
2
(a) IN GENERAL.—Subpart D of part IV of sub-
3 chapter A of chapter 1 (relating to business related cred4 its) is amended by adding at the end the following new
5 section:
6
‘‘SEC. 45N. MINE RESCUE TEAM TRAINING CREDIT.
7
‘‘(a) AMOUNT
OF
CREDIT.—For purposes of section
8 38, the mine rescue team training credit determined under
9 this section with respect to each qualified mine rescue
10 team employee of an eligible employer for any taxable year
11 is an amount equal to the lesser of—
12
‘‘(1) 20 percent of the amount paid or incurred
13
by the taxpayer during the taxable year with respect
14
to the training program costs of such qualified mine
15
rescue team employee (including wages of such em-
16
ployee while attending such program), or
17
‘‘(2) $10,000.
18
‘‘(b) QUALIFIED MINE RESCUE TEAM EMPLOYEE.—
19 For purposes of this section, the term ‘qualified mine res20 cue team employee’ means with respect to any taxable year
21 any full-time employee of the taxpayer who is—
22
‘‘(1) a miner eligible for more than 6 months
23
of such taxable year to serve as a mine rescue team
24
member as a result of completing, at a minimum, an
25
initial 20-hour course of instruction as prescribed by
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H.L.C.
71
1
the Mine Safety and Health Administration’s Office
2
of Educational Policy and Development, or
3
‘‘(2) a miner eligible for more than 6 months
4
of such taxable year to serve as a mine rescue team
5
member by virtue of receiving at least 40 hours of
6
refresher training in such instruction.
7
‘‘(c) ELIGIBLE EMPLOYER.—For purposes of this
8 section, the term ‘eligible employer’ means any taxpayer
9 which employs individuals as miners in underground mines
10 in the United States.
11
‘‘(d) WAGES.—For purposes of this section, the term
12 ‘wages’ has the meaning given to such term by subsection
13 (b) of section 3306 (determined without regard to any dol14 lar limitation contained in such section).
15
‘‘(e) TERMINATION.—This section shall not apply to
16 taxable years beginning after December 31, 2008.’’.
17
(b) CREDIT MADE PART
OF
GENERAL BUSINESS
18 CREDIT.—Section 38(b) is amended by striking ‘‘and’’ at
19 the end of paragraph (29), by striking the period at the
20 end of paragraph (30) and inserting ‘‘, plus’’, and by add21 ing at the end the following new paragraph:
22
‘‘(31) the mine rescue team training credit de-
23
termined under section 45N(a).’’.
24
(c) NO DOUBLE BENEFIT.—Section 280C is amend-
25 ed by adding at the end the following new subsection:
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1
‘‘(e) MINE RESCUE TEAM TRAINING CREDIT.—No
2 deduction shall be allowed for that portion of the expenses
3 otherwise allowable as a deduction for the taxable year
4 which is equal to the amount of the credit determined for
5 the taxable year under section 45N(a).’’.
6
(d) CLERICAL AMENDMENT.—The table of sections
7 for subpart D of part IV of subchapter A of chapter 1
8 is amended by adding at the end the following new item:
‘‘Sec. 45N. Mine rescue team training credit.’’.
9
(e) EFFECTIVE DATE.—The amendments made by
10 this section shall apply to taxable years beginning after
11 December 31, 2005.
12
SEC. 406. WHISTLEBLOWER REFORMS.
13
(a) AWARDS TO WHISTLEBLOWERS.—
14
(1) IN
7623 (relating to ex-
15
penses of detection of underpayments and fraud,
16
etc.) is amended—
17
(A) by striking ‘‘The Secretary’’ and in-
18
serting ‘‘(a) IN GENERAL.—The Secretary’’,
19
(B) by striking ‘‘and’’ at the end of para-
20
graph (1) and inserting ‘‘or’’,
21
(C) by striking ‘‘(other than interest)’’,
22
and
23
(D) by adding at the end the following new
24
subsection:
25
‘‘(b) AWARDS TO WHISTLEBLOWERS.—
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1
‘‘(1) IN
the Secretary proceeds
2
with any administrative or judicial action described
3
in subsection (a) based on information brought to
4
the Secretary’s attention by an individual, such indi-
5
vidual shall, subject to paragraph (2), receive as an
6
award at least 15 percent but not more than 30 per-
7
cent of the collected proceeds (including penalties,
8
interest, additions to tax, and additional amounts)
9
resulting from the action (including any related ac-
10
tions) or from any settlement in response to such ac-
11
tion. The determination of the amount of such
12
award by the Whistleblower Office shall depend upon
13
the extent to which the individual substantially con-
14
tributed to such action.
15
‘‘(2) AWARD
16
CONTRIBUTION.—
17
‘‘(A) IN
IN CASE OF LESS SUBSTANTIAL
GENERAL.—In
the event the ac-
18
tion described in paragraph (1) is one which the
19
Whistleblower Office determines to be based
20
principally on disclosures of specific allegations
21
(other than information provided by the indi-
22
vidual described in paragraph (1)) resulting
23
from a judicial or administrative hearing, from
24
a governmental report, hearing, audit, or inves-
25
tigation, or from the news media, the Whistle-
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H.L.C.
74
1
blower Office may award such sums as it con-
2
siders appropriate, but in no case more than 10
3
percent of the collected proceeds (including pen-
4
alties, interest, additions to tax, and additional
5
amounts) resulting from the action (including
6
any related actions) or from any settlement in
7
response to such action, taking into account the
8
significance of the individual’s information and
9
the role of such individual and any legal rep-
10
resentative of such individual in contributing to
11
such action.
12
‘‘(B) NONAPPLICATION
PARAGRAPH
13
WHERE INDIVIDUAL IS ORIGINAL SOURCE OF
14
INFORMATION.—Subparagraph
15
apply if the information resulting in the initi-
16
ation of the action described in paragraph (1)
17
was originally provided by the individual de-
18
scribed in paragraph (1).
19
‘‘(3) REDUCTION
(A) shall not
IN OR DENIAL OF AWARD.—
20
If the Whistleblower Office determines that the
21
claim for an award under paragraph (1) or (2) is
22
brought by an individual who planned and initiated
23
the actions that led to the underpayment of tax or
24
actions described in subsection (a)(2), then the
25
Whistleblower Office may appropriately reduce such
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1
award. If such individual is convicted of criminal
2
conduct arising from the role described in the pre-
3
ceding sentence, the Whistleblower Office shall deny
4
any award.
5
‘‘(4) APPEAL
6
Any determination regarding an award under para-
7
graph (1), (2), or (3) may, within 30 days of such
8
determination, be appealed to the Tax Court (and
9
the Tax Court shall have jurisdiction with respect to
10
such matter).
11
‘‘(5) APPLICATION
OF THIS SUBSECTION.—This
12
subsection shall apply with respect to any action—
13
‘‘(A) against any taxpayer, but in the case
14
of any individual, only if such individual’s gross
15
income exceeds $200,000 for any taxable year
16
subject to such action, and
17
‘‘(B) if the tax, penalties, interest, addi-
18
tions to tax, and additional amounts in dispute
19
exceed $2,000,000.
20
‘‘(6) ADDITIONAL
21
‘‘(A) NO
RULES.—
CONTRACT NECESSARY.—No
con-
22
tract with the Internal Revenue Service is nec-
23
essary for any individual to receive an award
24
under this subsection.
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1
‘‘(B) REPRESENTATION.—Any individual
2
described in paragraph (1) or (2) may be rep-
3
resented by counsel.
4
‘‘(C) SUBMISSION
5
award may be made under this subsection
6
based on information submitted to the Sec-
7
retary unless such information is submitted
8
under penalty of perjury.’’.
9
(2) ASSIGNMENT
10
(A) IN
TO SPECIAL TRIAL JUDGES.—
GENERAL.—Section
7443A(b) (re-
11
lating to proceedings which may be assigned to
12
special trial judges) is amended by striking
13
‘‘and’’ at the end of paragraph (5), by redesig-
14
nating paragraph (6) as paragraph (7), and by
15
inserting after paragraph (5) the following new
16
paragraph:
17
‘‘(6) any proceeding under section 7623(b)(4),
18
and’’.
19
(B) CONFORMING
AMENDMENT.—Section
20
7443A(c) is amended by striking ‘‘or (5)’’ and
21
inserting ‘‘(5), or (6)’’.
22
(3) DEDUCTION
ALLOWED WHETHER OR NOT
23
TAXPAYER ITEMIZES.—Subsection
24
(relating to general rule defining adjusted gross in-
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OF INFORMATION.—No
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77
1
come) is amended by inserting after paragraph (20)
2
the following new paragraph:
3
‘‘(21) ATTORNEYS
4
TO
5
under this chapter for attorney fees and court costs
6
paid by, or on behalf of, the taxpayer in connection
7
with any award under section 7623(b) (relating to
8
awards to whistleblowers). The preceding sentence
9
shall not apply to any deduction in excess of the
10
amount includible in the taxpayer’s gross income for
11
the taxable year on account of such award.’’.
12
(b) WHISTLEBLOWER OFFICE.—
13
WHISTLEBLOWERS.—Any
(1) IN
GENERAL.—Not
deduction allowable
later than the date
14
which is 12 months after the date of the enactment
15
of this Act, the Secretary of the Treasury shall issue
16
guidance for the operation of a whistleblower pro-
17
gram to be administered in the Internal Revenue
18
Service by an office to be known as the ‘‘Whistle-
19
blower Office’’ which—
20
(A) shall at all times operate at the direc-
21
tion of the Commissioner of Internal Revenue
22
and coordinate and consult with other divisions
23
in the Internal Revenue Service as directed by
24
the Commissioner of Internal Revenue,
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H.L.C.
78
1
(B) shall analyze information received from
2
any individual described in section 7623(b) of
3
the Internal Revenue Code of 1986 and either
4
investigate the matter itself or assign it to the
5
appropriate Internal Revenue Service office,
6
and
7
(C) in its sole discretion, may ask for addi-
8
tional assistance from such individual or any
9
legal representative of such individual.
10
(2) REQUEST
FOR ASSISTANCE.—The
guidance
11
issued under paragraph (1) shall specify that any as-
12
sistance requested under paragraph (1)(C) shall be
13
under the direction and control of the Whistleblower
14
Office or the office assigned to investigate the mat-
15
ter under paragraph (1)(A). No individual or legal
16
representative whose assistance is so requested may
17
by reason of such request represent himself or her-
18
self as an employee of the Federal Government.
19
(c) REPORT
BY
SECRETARY.—The Secretary of the
20 Treasury shall each year conduct a study and report to
21 Congress on the use of section 7623 of the Internal Rev22 enue Code of 1986, including—
23
(1) an analysis of the use of such section dur-
24
ing the preceding year and the results of such use,
25
and
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79
1
(2)
any
legislative
or
administrative
rec-
2
ommendations regarding the provisions of such sec-
3
tion and its application.
4
(d) EFFECTIVE DATE.—The amendments made by
5 subsection (a) shall apply to information provided on or
6 after the date of the enactment of this Act.
7
SEC. 407. FRIVOLOUS TAX SUBMISSIONS.
8
(a) CIVIL PENALTIES.—Section 6702 is amended to
9 read as follows:
10
‘‘SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.
11
12
‘‘(a) CIVIL PENALTY
TURNS.—A
13
FRIVOLOUS TAX RE-
person shall pay a penalty of $5,000 if—
‘‘(1) such person files what purports to be a re-
14
turn of a tax imposed by this title but which—
15
‘‘(A) does not contain information on
16
which the substantial correctness of the self-as-
17
sessment may be judged, or
18
‘‘(B) contains information that on its face
19
indicates that the self-assessment is substan-
20
tially incorrect, and
21
‘‘(2) the conduct referred to in paragraph (1)—
22
‘‘(A) is based on a position which the Sec-
23
retary has identified as frivolous under sub-
24
section (c), or
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80
1
‘‘(B) reflects a desire to delay or impede
2
the administration of Federal tax laws.
3
‘‘(b) CIVIL PENALTY
FOR
SPECIFIED FRIVOLOUS
4 SUBMISSIONS.—
5
‘‘(1) IMPOSITION
as pro-
6
vided in paragraph (3), any person who submits a
7
specified frivolous submission shall pay a penalty of
8
$5,000.
9
‘‘(2) SPECIFIED
10
purposes of this section—
11
‘‘(A)
FRIVOLOUS SUBMISSION.—For
SPECIFIED
FRIVOLOUS
SUBMIS-
12
SION.—The
13
sion’ means a specified submission if any por-
14
tion of such submission—
term ‘specified frivolous submis-
15
‘‘(i) is based on a position which the
16
Secretary has identified as frivolous under
17
subsection (c), or
18
‘‘(ii) reflects a desire to delay or im-
19
pede the administration of Federal tax
20
laws.
21
‘‘(B) SPECIFIED
22
term
‘‘(i) a request for a hearing under—
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SUBMISSION.—The
‘specified submission’ means—
23
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1
‘‘(I) section 6320 (relating to no-
2
tice and opportunity for hearing upon
3
filing of notice of lien), or
4
‘‘(II) section 6330 (relating to
5
notice and opportunity for hearing be-
6
fore levy), and
7
‘‘(ii) an application under—
8
‘‘(I) section 6159 (relating to
9
agreements for payment of tax liabil-
10
ity in installments),
11
‘‘(II) section 7122 (relating to
12
compromises), or
13
‘‘(III) section 7811 (relating to
14
taxpayer assistance orders).
15
‘‘(3) OPPORTUNITY
TO
WITHDRAW
SUBMIS-
16
SION.—If
17
tice that a submission is a specified frivolous sub-
18
mission and such person withdraws such submission
19
within 30 days after such notice, the penalty im-
20
posed under paragraph (1) shall not apply with re-
21
spect to such submission.
22
‘‘(c) LISTING
the Secretary provides a person with no-
OF
FRIVOLOUS POSITIONS.—The Sec-
23 retary shall prescribe (and periodically revise) a list of po24 sitions which the Secretary has identified as being frivo25 lous for purposes of this subsection. The Secretary shall
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H.L.C.
82
1 not include in such list any position that the Secretary
2 determines
meets
the
requirement
of
section
3 6662(d)(2)(B)(ii)(II).
4
‘‘(d) REDUCTION
OF
PENALTY.—The Secretary may
5 reduce the amount of any penalty imposed under this sec6 tion if the Secretary determines that such reduction would
7 promote compliance with and administration of the Fed8 eral tax laws.
9
10
‘‘(e) PENALTIES
ALTIES.—The
IN
ADDITION
TO
OTHER PEN-
penalties imposed by this section shall be
11 in addition to any other penalty provided by law.’’.
12
(b) TREATMENT
OF
FRIVOLOUS REQUESTS
FOR
13 HEARINGS BEFORE LEVY.—
14
(1) FRIVOLOUS
REQUESTS
DISREGARDED.—
15
Section 6330 (relating to notice and opportunity for
16
hearing before levy) is amended by adding at the
17
end the following new subsection:
18
‘‘(g) FRIVOLOUS REQUESTS
FOR
HEARING,
ETC.—
19 Notwithstanding any other provision of this section, if the
20 Secretary determines that any portion of a request for a
21 hearing under this section or section 6320 meets the re22 quirement of clause (i) or (ii) of section 6702(b)(2)(A),
23 then the Secretary may treat such portion as if it were
24 never submitted and such portion shall not be subject to
25 any further administrative or judicial review.’’.
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83
1
(2) PRECLUSION
FROM
2
ISSUES AT HEARING.—Section
3
ed—
4
RAISING
FRIVOLOUS
6330(c)(4) is amend-
(A) by striking ‘‘(A)’’ and inserting
5
‘‘(A)(i)’’;
6
(B) by striking ‘‘(B)’’ and inserting ‘‘(ii)’’;
7
(C) by striking the period at the end of the
8
first sentence and inserting ‘‘; or’’; and
9
(D) by inserting after subparagraph (A)(ii)
10
(as so redesignated) the following:
11
‘‘(B) the issue meets the requirement of
12
clause (i) or (ii) of section 6702(b)(2)(A).’’.
13
(3)
STATEMENT
OF
GROUNDS.—Section
14
6330(b)(1) is amended by striking ‘‘under sub-
15
section (a)(3)(B)’’ and inserting ‘‘in writing under
16
subsection (a)(3)(B) and states the grounds for the
17
requested hearing’’.
18
(c) TREATMENT
OF
19 HEARINGS UPON FILING
FRIVOLOUS REQUESTS
OF
NOTICE
OF
FOR
LIEN.—Section
20 6320 is amended—
21
(1) in subsection (b)(1), by striking ‘‘under sub-
22
section (a)(3)(B)’’ and inserting ‘‘in writing under
23
subsection (a)(3)(B) and states the grounds for the
24
requested hearing’’, and
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H.L.C.
84
1
(2) in subsection (c), by striking ‘‘and (e)’’ and
2
inserting ‘‘(e), and (g)’’.
3
(d) TREATMENT
FRIVOLOUS APPLICATIONS
OF
4 OFFERS-IN-COMPROMISE
5
MENTS.—Section
AND
FOR
INSTALLMENT AGREE-
7122 is amended by adding at the end
6 the following new subsection:
7
‘‘(f)
FRIVOLOUS
SUBMISSIONS,
ETC.—Notwith-
8 standing any other provision of this section, if the Sec9 retary determines that any portion of an application for
10 an offer-in-compromise or installment agreement sub11 mitted under this section or section 6159 meets the re12 quirement of clause (i) or (ii) of section 6702(b)(2)(A),
13 then the Secretary may treat such portion as if it were
14 never submitted and such portion shall not be subject to
15 any further administrative or judicial review.’’.
16
(e) CLERICAL AMENDMENT.—The table of sections
17 for part I of subchapter B of chapter 68 is amended by
18 striking the item relating to section 6702 and inserting
19 the following new item:
‘‘Sec. 6702. Frivolous tax submissions.’’.
20
(f) EFFECTIVE DATE.—The amendments made by
21 this section shall apply to submissions made and issues
22 raised after the date on which the Secretary first pre23 scribes a list under section 6702(c) of the Internal Rev24 enue Code of 1986, as amended by subsection (a).
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1
SEC. 408. ADDITION OF MENINGOCOCCAL AND HUMAN
2
PAPILLOMAVIRUS VACCINES TO LIST OF TAX-
3
ABLE VACCINES.
4
(a) MENINGOCOCCAL VACCINE.—Section 4132(a)(1)
5 (defining taxable vaccine) is amended by adding at the end
6 the following new subparagraph:
7
‘‘(O) Any meningococcal vaccine.’’.
8
(b) HUMAN PAPILLOMAVIRUS VACCINE.—Section
9 4132(a)(1), as amended by subsection (a), is amended by
10 adding at the end the following new subparagraph:
11
‘‘(P) Any vaccine against the human
12
papillomavirus.’’.
13
(c) EFFECTIVE DATE.—
14
(1) SALES,
amendments made by
15
this section shall apply to sales and uses on or after
16
the first day of the first month which begins more
17
than 4 weeks after the date of the enactment of this
18
Act.
19
(2) DELIVERIES.—For purposes of paragraph
20
(1) and section 4131 of the Internal Revenue Code
21
of 1986, in the case of sales on or before the effec-
22
tive date described in such paragraph for which de-
23
livery is made after such date, the delivery date shall
24
be considered the sale date.
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1
SEC. 409. CLARIFICATION OF TAXATION OF CERTAIN SET-
2
TLEMENT FUNDS MADE PERMANENT.
3
(a) IN GENERAL.—Subsection (g) of section 468B is
4 amended by striking paragraph (3).
5
(b) EFFECTIVE DATE.—The amendment made by
6 this section shall take effect as if included in section 201
7 of the Tax Increase Prevention and Reconciliation Act of
8 2005.
9
SEC. 410. MODIFICATION OF ACTIVE BUSINESS DEFINITION
10
UNDER SECTION 355 MADE PERMANENT.
11
(a) IN GENERAL.—Subparagraphs (A) and (D) of
12 section 355(b)(3) are each amended by striking ‘‘and on
13 or before December 31, 2010’’.
14
(b) EFFECTIVE DATE.—The amendments made by
15 this section shall take effect as if included in section 202
16 of the Tax Increase Prevention and Reconciliation Act of
17 2005.
18
SEC. 411. REVISION OF STATE VETERANS LIMIT MADE PER-
19
MANENT.
20
(a) IN GENERAL.—Subparagraph (B) of section
21 143(l)(3) is amended by striking clause (iv).
22
(b) EFFECTIVE DATE.—The amendment made by
23 this section shall take effect as if included in section 203
24 of the Tax Increase Prevention and Reconciliation Act of
25 2005.
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1
SEC. 412. CAPITAL GAINS TREATMENT FOR CERTAIN SELF-
2
CREATED MUSICAL WORKS MADE PERMA-
3
NENT.
4
(a) IN GENERAL.—Paragraph (3) of section 1221(b)
5 is amended by striking ‘‘before January 1, 2011,’’.
6
(b) EFFECTIVE DATE.—The amendment made by
7 this section shall take effect as if included in section 204
8 of the Tax Increase Prevention and Reconciliation Act of
9 2005.
10
SEC. 413. REDUCTION IN MINIMUM VESSEL TONNAGE
11
WHICH QUALIFIES FOR TONNAGE TAX MADE
12
PERMANENT.
13
(a) IN GENERAL.—Paragraph (4) of section 1355(a)
14 is amended by striking ‘‘10,000 (6,000, in the case of tax15 able years beginning after December 31, 2005, and ending
16 before January 1, 2011)’’ and inserting ‘‘6,000’’.
17
(b) EFFECTIVE DATE.—The amendment made by
18 this section shall take effect as if included in section 205
19 of the Tax Increase Prevention and Reconciliation Act of
20 2005.
21
SEC. 414. MODIFICATION OF SPECIAL ARBITRAGE RULE
22
FOR CERTAIN FUNDS MADE PERMANENT.
23
(a) IN GENERAL.—Section 206 of the Tax Increase
24 Prevention and Reconciliation Act of 2005 is amended by
25 striking ‘‘and before August 31, 2009’’.
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1
(b) EFFECTIVE DATE.—The amendment made by
2 this section shall take effect as if included in section 206
3 of the Tax Increase Prevention and Reconciliation Act of
4 2005.
5
SEC. 415. GREAT LAKES DOMESTIC SHIPPING TO NOT DIS-
6
QUALIFY VESSEL FROM TONNAGE TAX.
7
(a) IN GENERAL.—Section 1355 (relating to defini-
8 tions and special rules) is amended by redesignating sub9 section (g) as subsection (h) and by inserting after sub10 section (f) the following new subsection:
11
‘‘(g) GREAT LAKES DOMESTIC SHIPPING
TO
NOT
12 DISQUALIFY VESSEL.—
13
‘‘(1) IN
the electing corporation
14
elects (at such time and in such manner as the Sec-
15
retary may require) to apply this subsection for any
16
taxable year to any qualifying vessel which is used
17
in qualified zone domestic trade during the taxable
18
year—
19
‘‘(A) solely for purposes of subsection
20
(a)(4), such use shall be treated as use in
21
United States foreign trade (and not as use in
22
United States domestic trade), and
23
‘‘(B) subsection (f) shall not apply with re-
24
spect to such vessel for such taxable year.
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1
‘‘(2) EFFECT
TEMPORARILY
OPERATING
2
VESSEL IN UNITED STATES DOMESTIC TRADE.—In
3
the case of a qualifying vessel to which this sub-
4
section applies—
5
‘‘(A) IN
GENERAL.—An
electing corpora-
6
tion shall be treated as using such vessel in
7
qualified zone domestic trade during any period
8
of temporary use in the United States domestic
9
trade (other than qualified zone domestic trade)
10
if the electing corporation gives timely notice to
11
the Secretary stating—
12
‘‘(i) that it temporarily operates or
13
has operated in the United States domestic
14
trade (other than qualified zone domestic
15
trade) a qualifying vessel which had been
16
used in the United States foreign trade or
17
qualified zone domestic trade, and
18
‘‘(ii) its intention to resume operation
19
of the vessel in the United States foreign
20
trade or qualified zone domestic trade.
21
‘‘(B) NOTICE.—Notice shall be deemed
22
timely if given not later than the due date (in-
23
cluding extensions) for the corporation’s tax re-
24
turn for the taxable year in which the tem-
25
porary cessation begins.
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90
1
‘‘(C) PERIOD
2
The period of temporary use under subpara-
3
graph (A) continues until the earlier of the date
4
of which—
5
‘‘(i) the electing corporation abandons
6
its intention to resume operations of the
7
vessel in the United States foreign trade or
8
qualified zone domestic trade, or
9
‘‘(ii) the electing corporation resumes
10
operation of the vessel in the United States
11
foreign trade or qualified zone domestic
12
trade.
13
‘‘(D) NO
DISREGARD IF DOMESTIC TRADE
14
USE
15
shall not apply to any qualifying vessel which is
16
operated in the United States domestic trade
17
(other than qualified zone domestic trade) for
18
more than 30 days during the taxable year.
19
‘‘(3) ALLOCATION
EXCEEDS
30
DAYS.—Subparagraph
OF
INCOME
AND
(A)
DEDUC-
20
TIONS TO QUALIFYING SHIPPING ACTIVITIES.—In
21
the case of a qualifying vessel to which this sub-
22
section applies, the Secretary shall prescribe rules
23
for the proper allocation of income, expenses, losses,
24
and deductions between the qualified shipping activi-
25
ties and the other activities of such vessel.
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1
‘‘(4) QUALIFIED
ZONE DOMESTIC TRADE.—For
2
purposes of this subsection—
3
‘‘(A) IN
GENERAL.—The
term ‘qualified
4
zone domestic trade’ means the transportation
5
of goods or passengers between places in the
6
qualified zone if such transportation is in the
7
United States domestic trade.
8
‘‘(B) QUALIFIED
9
ZONE.—The
term ‘quali-
fied zone’ means the Great Lakes Waterway
10
and the St. Lawrence Seaway.’’.
11
(b) EFFECTIVE DATE.—The amendments made by
12 this section shall apply to taxable years beginning after
13 the date of the enactment of this Act.
14
SEC. 416. USE OF QUALIFIED MORTGAGE BONDS TO FI-
15
NANCE RESIDENCES FOR VETERANS WITH-
16
OUT REGARD TO FIRST-TIME HOMEBUYER
17
REQUIREMENT.
18
(a) IN GENERAL.—Section 143(d)(2) (relating to ex-
19 ceptions to 3-year requirement) is amended by striking
20 ‘‘and’’ at the end of subparagraph (B), by adding ‘‘and’’
21 at the end of subparagraph (C), and by inserting after
22 subparagraph (C) the following new subparagraph:
23
‘‘(D) in the case of bonds issued after the
24
date of the enactment of this subparagraph and
25
before January 1, 2008, financing of any resi-
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1
dence for a veteran (as defined in section 101
2
of title 38, United States Code), if such veteran
3
has not previously qualified for and received
4
such financing by reason of this subpara-
5
graph,’’.
6
(b) EFFECTIVE DATE.—The amendments made by
7 this section shall apply to bonds issued after the date of
8 the enactment of this Act.
9
SEC. 417. EXCLUSION OF GAIN FROM SALE OF A PRINCIPAL
10
RESIDENCE BY CERTAIN EMPLOYEES OF THE
11
INTELLIGENCE COMMUNITY.
12
(a) IN GENERAL.—Subparagraph (A) of section
13 121(d)(9) (relating to exclusion of gain from sale of prin14 cipal residence) is amended by striking ‘‘duty’’ and all that
15 follows and inserting ‘‘duty—
16
‘‘(i) as a member of the uniformed
17
services,
18
‘‘(ii) as a member of the Foreign
19
Service of the United States, or
20
‘‘(iii) as an employee of the intel-
21
ligence community.’’.
22
23
(b) EMPLOYEE
OF
INTELLIGENCE COMMUNITY DE-
FINED.—Subparagraph
(C) of section 121(d)(9) is amend-
24 ed by redesignating clause (iv) as clause (v) and by insert25 ing after clause (iii) the following new clause:
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H.L.C.
93
1
‘‘(iv) EMPLOYEE
2
COMMUNITY.—The
3
intelligence community’ means an employee
4
(as defined by section 2105 of title 5,
5
United States Code) of—
6
term ‘employee of the
‘‘(I) the Office of the Director of
7
National Intelligence,
8
‘‘(II) the Central Intelligence
9
Agency,
10
‘‘(III)
11
the
National
Security
Agency,
12
‘‘(IV) the Defense Intelligence
13
Agency,
14
‘‘(V) the National Geospatial-In-
15
telligence Agency,
16
‘‘(VI) the National Reconnais-
17
sance Office,
18
‘‘(VII) any other office within the
19
Department of Defense for the collec-
20
tion of specialized national intelligence
21
through reconnaissance programs,
22
‘‘(VIII) any of the intelligence
23
elements of the Army, the Navy, the
24
Air Force, the Marine Corps, the Fed-
25
eral Bureau of Investigation, the De-
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
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H.L.C.
94
1
partment of Treasury, the Depart-
2
ment of Energy, and the Coast
3
Guard,
4
‘‘(IX) the Bureau of Intelligence
5
and Research of the Department of
6
State, or
7
‘‘(X) any of the elements of the
8
Department of Homeland Security
9
concerned with the analyses of foreign
10
intelligence information.’’.
11
(c) SPECIAL RULE.—Subparagraph (C) of section
12 121(d)(9), as amended by subsection (b), is amended by
13 adding at the end the following new clause:
14
‘‘(vi) SPECIAL
RULE RELATING TO IN-
15
TELLIGENCE
16
of the intelligence community shall not be
17
treated as serving on qualified extended
18
duty unless such duty is at a duty station
19
located outside the United States.’’.
20
COMMUNITY.—An
employee
(d) CONFORMING AMENDMENT.—The heading for
21 section 121(d)(9) is amended to read as follows: ‘‘UNI22
FORMED
23
LIGENCE COMMUNITY’’.
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SERVICES,
FOREIGN
SERVICE,
AND
INTEL-
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95
1
(e) EFFECTIVE DATE.—The amendments made by
2 this section shall apply to sales or exchanges after the date
3 of the enactment of this Act and before January 1, 2011.
4
SEC. 418. SALE OF PROPERTY BY JUDICIAL OFFICERS.
5
(a) IN GENERAL.—Section 1043(b) (relating to the
6 sale of property to comply with conflict-of-interest require7 ments) is amended—
8
(1) in paragraph (1)—
9
(A) in subparagraph (A), by inserting ‘‘, or
10
a judicial officer,’’ after ‘‘an officer or employee
11
of the executive branch’’; and
12
(B) in subparagraph (B), by inserting ‘‘ju-
13
dicial canon,’’ after ‘‘any statute, regulation,
14
rule,’’;
15
(2) in paragraph (2)—
16
(A) in subparagraph (A), by inserting ‘‘ju-
17
dicial canon,’’ after ‘‘any Federal conflict of in-
18
terest statute, regulation, rule,’’; and
19
(B) in subparagraph (B), by inserting
20
after ‘‘the Director of the Office of Government
21
Ethics,’’ the following: ‘‘in the case of executive
22
branch officers or employees, or by the Judicial
23
Conference of the United States (or its des-
24
ignee), in the case of judicial officers,’’; and
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H.L.C.
96
1
(3) in paragraph (5)(B), by inserting ‘‘judicial
2
canon,’’ after ‘‘any statute, regulation, rule,’’.
3
(b) JUDICIAL OFFICER DEFINED.—Section 1043(b)
4 is amended by adding at the end the following new para5 graph:
6
‘‘(6) JUDICIAL
OFFICER.—The
term ‘judicial
7
officer’ means the Chief Justice of the United
8
States, the Associate Justices of the Supreme Court,
9
and the judges of the United States courts of ap-
10
peals, United States district courts, including the
11
district courts in Guam, the Northern Mariana Is-
12
lands, and the Virgin Islands, Court of Appeals for
13
the Federal Circuit, Court of International Trade,
14
Tax Court, Court of Federal Claims, Court of Ap-
15
peals for Veterans Claims, United States Court of
16
Appeals for the Armed Forces, and any court cre-
17
ated by Act of Congress, the judges of which are en-
18
titled to hold office during good behavior.’’.
19
(c) EFFECTIVE DATE.—The amendments made by
20 this section shall apply to sales after the date of enactment
21 of this Act.
22
SEC. 419. PREMIUMS FOR MORTGAGE INSURANCE.
23
(a) IN GENERAL.—Section 163(h)(3) (relating to
24 qualified residence interest) is amended by adding at the
25 end the following new subparagraph:
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H.L.C.
97
1
‘‘(E) MORTGAGE
2
TREATED AS INTEREST.—
3
‘‘(i) IN
PREMIUMS
GENERAL.—Premiums
paid or
4
accrued for qualified mortgage insurance
5
by a taxpayer during the taxable year in
6
connection with acquisition indebtedness
7
with respect to a qualified residence of the
8
taxpayer shall be treated for purposes of
9
this section as interest which is qualified
10
residence interest.
11
‘‘(ii) PHASEOUT.—The amount other-
12
wise treated as interest under clause (i)
13
shall be reduced (but not below zero) by 10
14
percent of such amount for each $1,000
15
($500 in the case of a married individual
16
filing a separate return) (or fraction there-
17
of) that the taxpayer’s adjusted gross in-
18
come
19
$100,000 ($50,000 in the case of a mar-
20
ried individual filing a separate return).
for
the
taxable
year
exceeds
21
‘‘(iii) LIMITATION.—Clause (i) shall
22
not apply with respect to any mortgage in-
23
surance contracts issued before January 1,
24
2007.
f:\V9\120706\120706.200.xml
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H.L.C.
98
1
‘‘(iv) TERMINATION.—Clause (i) shall
2
not apply to amounts—
3
‘‘(I) paid or accrued after De-
4
cember 31, 2007, or
5
‘‘(II) properly allocable to any
6
period after such date.’’.
7
(b) DEFINITION
AND
SPECIAL RULES.—Section
8 163(h)(4) (relating to other definitions and special rules)
9 is amended by adding at the end the following new sub10 paragraphs:
11
‘‘(E)
12
ANCE.—The
13
ance’ means—
MORTGAGE
INSUR-
term ‘qualified mortgage insur-
14
‘‘(i) mortgage insurance provided by
15
the Veterans Administration, the Federal
16
Housing Administration, or the Rural
17
Housing Administration, and
18
‘‘(ii) private mortgage insurance (as
19
defined by section 2 of the Homeowners
20
Protection Act of 1998 (12 U.S.C. 4901),
21
as in effect on the date of the enactment
22
of this subparagraph).
23
‘‘(F) SPECIAL
RULES FOR PREPAID QUALI-
24
FIED
25
paid by the taxpayer for qualified mortgage in-
f:\V9\120706\120706.200.xml
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INSURANCE.—Any
amount
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H.L.C.
99
1
surance that is properly allocable to any mort-
2
gage the payment of which extends to periods
3
that are after the close of the taxable year in
4
which such amount is paid shall be chargeable
5
to capital account and shall be treated as paid
6
in such periods to which so allocated. No deduc-
7
tion shall be allowed for the unamortized bal-
8
ance of such account if such mortgage is satis-
9
fied before the end of its term. The preceding
10
sentences shall not apply to amounts paid for
11
qualified mortgage insurance provided by the
12
Veterans Administration or the Rural Housing
13
Administration.’’.
14
15
(c) INFORMATION RETURNS RELATING
GAGE
TO
MORT-
INSURANCE.—Section 6050H (relating to returns
16 relating to mortgage interest received in trade or business
17 from individuals) is amended by adding at the end the fol18 lowing new subsection:
19
‘‘(h) RETURNS RELATING TO MORTGAGE INSURANCE
20 PREMIUMS.—
21
‘‘(1) IN
Secretary may pre-
22
scribe, by regulations, that any person who, in the
23
course of a trade or business, receives from any indi-
24
vidual premiums for mortgage insurance aggregating
25
$600 or more for any calendar year, shall make a
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GENERAL.—The
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H.L.C.
100
1
return with respect to each such individual. Such re-
2
turn shall be in such form, shall be made at such
3
time, and shall contain such information as the Sec-
4
retary may prescribe.
5
‘‘(2) STATEMENT
6
VIDUALS WITH RESPECT TO WHOM INFORMATION IS
7
REQUIRED.—Every
8
turn under paragraph (1) shall furnish to each indi-
9
vidual with respect to whom a return is made a writ-
10
ten statement showing such information as the Sec-
11
retary may prescribe. Such written statement shall
12
be furnished on or before January 31 of the year
13
following the calendar year for which the return
14
under paragraph (1) was required to be made.
15
person required to make a re-
‘‘(3) SPECIAL
16
RULES.—For
purposes of this
subsection—
17
‘‘(A) rules similar to the rules of sub-
18
section (c) shall apply, and
19
‘‘(B)
20
the
term
‘mortgage
insurance’
means—
21
‘‘(i) mortgage insurance provided by
22
the Veterans Administration, the Federal
23
Housing Administration, or the Rural
24
Housing Administration, and
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
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TO BE FURNISHED TO INDI-
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H.L.C.
101
1
‘‘(ii) private mortgage insurance (as
2
defined by section 2 of the Homeowners
3
Protection Act of 1998 (12 U.S.C. 4901),
4
as in effect on the date of the enactment
5
of this subsection).’’.
6
(d) EFFECTIVE DATE.—The amendments made by
7 this section shall apply to amounts paid or accrued after
8 December 31, 2006.
9
SEC. 420. MODIFICATION OF REFUNDS FOR KEROSENE
10
USED IN AVIATION.
11
(a) IN GENERAL.—Paragraph (4) of section 6427(l)
12 (relating to nontaxable uses of diesel fuel and kerosene)
13 is amended to read as follows:
14
‘‘(4) REFUNDS
15
TION.—
16
‘‘(A) KEROSENE
USED
IN
COMMERCIAL
17
AVIATION.—In
18
commercial aviation (as defined in section
19
4083(b)) (other than supplies for vessels or air-
20
craft within the meaning of section 4221(d)(3)),
21
paragraph (1) shall not apply to so much of the
22
tax imposed by section 4041 or 4081, as the
23
case may be, as is attributable to—
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H.L.C.
102
1
‘‘(i) the Leaking Underground Stor-
2
age Tank Trust Fund financing rate im-
3
posed by such section, and
4
‘‘(ii) so much of the rate of tax speci-
5
fied
6
4081(a)(2)(A)(iii), as the case may be, as
7
does not exceed 4.3 cents per gallon.
8
‘‘(B) KEROSENE
9
section
CIAL AVIATION.—In
4041(c)
or
USED IN NONCOMMER-
the case of kerosene used
10
in aviation that is not commercial aviation (as
11
so defined) (other than any use which is exempt
12
from the tax imposed by section 4041(c) other
13
than by reason of a prior imposition of tax),
14
paragraph (1) shall not apply to—
15
‘‘(i) any tax imposed by subsection (c)
16
or (d)(2) of section 4041, and
17
‘‘(ii) so much of the tax imposed by
18
section 4081 as is attributable to—
19
‘‘(I) the Leaking Underground
20
Storage Tank Trust Fund financing
21
rate imposed by such section, and
22
‘‘(II) so much of the rate of tax
23
specified in section 4081(a)(2)(A)(iii)
24
as does not exceed the rate specified
25
in section 4081(a)(2)(C)(ii).
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December 7, 2006 (9:12 p.m.)
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H.L.C.
103
1
‘‘(C)
2
PAYMENTS
ULTIMATE,
REG-
ISTERED VENDOR.—
3
‘‘(i) IN
GENERAL.—With
respect to
4
any kerosene used in aviation (other than
5
kerosene described in clause (ii) or ker-
6
osene to which paragraph (5) applies), if
7
the ultimate purchaser of such kerosene
8
waives (at such time and in such form and
9
manner as the Secretary shall prescribe)
10
the right to payment under paragraph (1)
11
and assigns such right to the ultimate ven-
12
dor, then the Secretary shall pay the
13
amount which would be paid under para-
14
graph (1) to such ultimate vendor, but
15
only if such ultimate vendor—
16
‘‘(I) is registered under section
17
4101, and
18
‘‘(II) meets the requirements of
19
subparagraph (A), (B), or (D) of sec-
20
tion 6416(a)(1).
21
‘‘(ii) PAYMENTS
FOR KEROSENE USED
22
IN
23
amount which would be paid under para-
24
graph (1) with respect to any kerosene to
25
which subparagraph (B) applies shall be
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December 7, 2006 (9:12 p.m.)
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21:12 Dec 07, 2006
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NONCOMMERCIAL
AVIATION.—The
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H.L.C.
104
1
paid only to the ultimate vendor of such
2
kerosene. A payment shall be made to such
3
vendor if such vendor—
4
‘‘(I) is registered under section
5
4101, and
6
‘‘(II) meets the requirements of
7
subparagraph (A), (B), or (D) of sec-
8
tion 6416(a)(1).’’.
9
(b) CONFORMING AMENDMENTS.—
10
(1) Section 6427(l) is amended by striking
11
paragraph (5) and by redesignating paragraph (6)
12
as paragraph (5).
13
(2) Section 4082(d)(2)(B) is amended by strik-
14
ing ‘‘section 6427(l)(6)(B)’’ and inserting ‘‘section
15
6427(l)(5)(B)’’.
16
(3) Section 6427(i)(4)(A) is amended—
17
(A) by striking ‘‘paragraph (4)(B), (5), or
18
(6)’’ each place it appears and inserting ‘‘para-
19
graph (4)(C) or (5)’’, and
20
(B) by striking ‘‘(l)(5), and (l)(6)’’ and in-
21
serting ‘‘(l)(4)(C)(ii), and (l)(5)’’.
22
(4) Section 6427(l)(1) is amended by striking
23
‘‘paragraph
24
(4)(C)(i)’’.
25
21:12 Dec 07, 2006
and
inserting
‘‘paragraph
(5) Section 9502(d) is amended—
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December 7, 2006 (9:12 p.m.)
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H.L.C.
105
1
(A) in paragraph (2), by striking ‘‘and
2
(l)(5)’’, and
3
(B) in paragraph (3), by striking ‘‘or (5)’’.
4
(6) Section 9503(c)(7) is amended—
5
(A) by amending subparagraphs (A) and
6
(B) to read as follows:
7
‘‘(A) 4.3 cents per gallon of kerosene sub-
8
ject to section 6427(l)(4)(A) with respect to
9
which a payment has been made by the Sec-
10
retary under section 6427(l), and
11
‘‘(B) 21.8 cents per gallon of kerosene sub-
12
ject to section 6427(l)(4)(B) with respect to
13
which a payment has been made by the Sec-
14
retary under section 6427(l).’’, and
15
(B) in the matter following subparagraph
16
(B), by striking ‘‘or (5)’’.
17
(c) EFFECTIVE DATE.—
18
(1) IN
amendments made by
19
this section shall apply to kerosene sold after Sep-
20
tember 30, 2005.
21
(2) SPECIAL
RULE FOR PENDING CLAIMS.—In
22
the case of kerosene sold for use in aviation (other
23
than kerosene to which section 6427(l)(4)(C)(ii) of
24
the Internal Revenue Code of 1986 (as added by
25
subsection (a)) applies or kerosene to which section
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H.L.C.
106
1
6427(l)(5) of such Code (as redesignated by sub-
2
section (b)) applies) after September 30, 2005, and
3
before the date of the enactment of this Act, the ul-
4
timate purchaser shall be treated as having waived
5
the right to payment under section 6427(l)(1) of
6
such Code and as having assigned such right to the
7
ultimate vendor if such ultimate vendor has met the
8
requirements of subparagraph (A), (B), or (D) of
9
section 6416(a)(1) of such Code.
10
11
(d) SPECIAL RULE
TION ON A
12
KEROSENE USED
IN
AVIA-
FARM FOR FARMING PURPOSES.—
(1) REFUNDS
FOR PURCHASES AFTER DECEM-
13
BER
14
The Secretary of the Treasury shall pay to the ulti-
15
mate purchaser of any kerosene which is used in
16
aviation on a farm for farming purposes and which
17
was purchased after December 31, 2004, and before
18
October 1, 2005, an amount equal to the aggregate
19
amount of tax imposed on such fuel under section
20
4041 or 4081 of the Internal Revenue Code of 1986,
21
as the case may be, reduced by any payment to the
22
ultimate vendor under section 6427(l)(5)(C) of such
23
Code (as in effect on the day before the date of the
24
enactment of the Safe, Accountable, Flexible, Effi-
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December 7, 2006 (9:12 p.m.)
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21:12 Dec 07, 2006
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31, 2004,
AND BEFORE OCTOBER
1, 2005.—
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107
1
cient Transportation Equity Act: a Legacy for
2
Users).
3
(2) USE
A
FARM
FOR
FARMING
PUR-
4
POSES.—For
5
shall be treated as used on a farm for farming pur-
6
poses if such kerosene is used for farming purposes
7
(within the meaning of section 6420(c)(3) of the In-
8
ternal Revenue Code of 1986) in carrying on a trade
9
or business on a farm situated in the United States.
10
For purposes of the preceding sentence, rules similar
11
to the rules of section 6420(c)(4) of such Code shall
12
apply.
13
purposes of paragraph (1), kerosene
(3) TIME
FOR FILING CLAIMS.—No
claim shall
14
be allowed under paragraph (1) unless the ultimate
15
purchaser files such claim before the date that is 3
16
months after the date of the enactment of this Act.
17
(4) NO
DOUBLE BENEFIT.—No
amount shall be
18
paid under paragraph (1) or section 6427(l) of the
19
Internal Revenue Code of 1986 with respect to any
20
kerosene described in paragraph (1) to the extent
21
that such amount is in excess of the tax imposed on
22
such kerosene under section 4041 or 4081 of such
23
Code, as the case may be.
24
(5) APPLICABLE
25
21:12 Dec 07, 2006
LAWS.—For
purposes of this
subsection, rules similar to the rules of section
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December 7, 2006 (9:12 p.m.)
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H.L.C.
108
1
6427(j) of the Internal Revenue Code of 1986 shall
2
apply.
3
SEC. 421. REGIONAL INCOME TAX AGENCIES TREATED AS
4
STATES
5
TIALITY AND DISCLOSURE REQUIREMENTS.
6
FOR
PURPOSES
OF
CONFIDEN-
(a) IN GENERAL.—Paragraph (5) of section 6103(b)
7 is amended to read as follows:
8
‘‘(5) STATE.—
9
‘‘(A) IN
10
term ‘State’
means—
11
‘‘(i) any of the 50 States, the District
12
of Columbia, the Commonwealth of Puerto
13
Rico, the Virgin Islands, the Canal Zone,
14
Guam, American Samoa, and the Com-
15
monwealth of the Northern Mariana Is-
16
lands,
17
‘‘(ii)
for
purposes
of
subsections
18
(a)(2), (b)(4), (d)(1), (h)(4), and (p), any
19
municipality—
20
‘‘(I) with a population in excess
21
of 250,000 (as determined under the
22
most recent decennial United States
23
census data available),
24
‘‘(II) which imposes a tax on in-
25
come or wages, and
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1
‘‘(III) with which the Secretary
2
(in his sole discretion) has entered
3
into an agreement regarding disclo-
4
sure, and
5
‘‘(iii) for purposes of subsections
6
(a)(2), (b)(4), (d)(1), (h)(4), and (p), any
7
governmental entity—
8
‘‘(I) which is formed and oper-
9
ated by a qualified group of munici-
10
palities, and
11
‘‘(II) with which the Secretary
12
(in his sole discretion) has entered
13
into an agreement regarding disclo-
14
sure.
15
‘‘(B) REGIONAL
16
For purposes of subparagraph (A)(iii)—
17
‘‘(i) QUALIFIED
GROUP OF MUNICI-
18
PALITIES.—The
19
municipalities’ means, with respect to any
20
governmental entity, 2 or more municipali-
21
ties—
22
term ‘qualified group of
‘‘(I) each of which imposes a tax
23
on income or wages,
24
‘‘(II) each of which, under the
25
authority of a State statute, admin-
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1
isters the laws relating to the imposi-
2
tion of such taxes through such entity,
3
and
4
‘‘(III) which collectively have a
5
population in excess of 250,000 (as
6
determined under the most recent de-
7
cennial United States census data
8
available).
9
‘‘(ii) REFERENCES
10
ETC.—For
11
graph (A)(iii) to the subsections referred
12
to in such subparagraph, any reference in
13
such subsections to State law, proceedings,
14
or tax returns shall be treated as ref-
15
erences to the law, proceedings, or tax re-
16
turns, as the case may be, of the munici-
17
palities which form and operate the gov-
18
ernmental entity referred to in such sub-
19
paragraph.
20
purposes of applying subpara-
‘‘(iii) DISCLOSURE
TO CONTRACTORS
21
AND
22
any other provision of this section, no re-
23
turn or return information shall be dis-
24
closed to any contractor or other agent of
25
a governmental entity referred to in sub-
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AGENTS.—Notwithstanding
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1
paragraph (A)(iii) unless such entity, to
2
the satisfaction of the Secretary—
3
‘‘(I) has requirements in effect
4
which require each such contractor or
5
other agent which would have access
6
to returns or return information to
7
provide safeguards (within the mean-
8
ing of subsection (p)(4)) to protect
9
the confidentiality of such returns or
10
return information,
11
‘‘(II) agrees to conduct an on-site
12
review every 3 years (or a mid-point
13
review in the case of contracts or
14
agreements of less than 3 years in du-
15
ration) of each contractor or other
16
agent to determine compliance with
17
such requirements,
18
‘‘(III) submits the findings of the
19
most recent review conducted under
20
subclause (II) to the Secretary as part
21
of the report required by subsection
22
(p)(4)(E), and
23
‘‘(IV) certifies to the Secretary
24
for the most recent annual period that
25
such contractor or other agent is in
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1
compliance with all such require-
2
ments.
3
The certification required by subclause
4
(IV) shall include the name and address of
5
each contractor and other agent, a descrip-
6
tion of the contract or agreement with
7
such contractor or other agent, and the du-
8
ration of such contract or agreement. The
9
requirements of this clause shall not apply
10
to disclosures pursuant to subsection (n)
11
for purposes of Federal tax administration
12
and a rule similar to the rule of subsection
13
(p)(8)(B) shall apply for purposes of this
14
clause.’’.
15
(b) SPECIAL RULES
FOR
DISCLOSURE.—Subsection
16 (d) of section 6103 is amended by adding at the end the
17 following new paragraph:
18
‘‘(6) LIMITATION
19
REGIONAL
20
STATES.—For
21
by or disclosure to an entity described in subsection
22
(b)(5)(A)(iii) shall be for the purpose of, and only to
23
the extent necessary in, the administration of the
24
laws of the member municipalities in such entity re-
25
lating to the imposition of a tax on income or wages.
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AGENCIES
TREATED
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1
Such entity may not redisclose any return or return
2
information received pursuant to paragraph (1) to
3
any such member municipality.’’.
4
(c) EFFECTIVE DATE.—The amendments made by
5 this section shall apply to disclosures made after Decem6 ber 31, 2006.
7
SEC.
422.
DESIGNATION
8
OF
WINES
BY
SEMI-GENERIC
NAMES.
9
(a) IN GENERAL.—Subsection (c) of section 5388
10 (relating to use of semi-generic designations) is amended
11 by adding at the end the following new paragraph:
12
‘‘(3) SPECIAL
13
FOR
USE
OF
CERTAIN
SEMI-GENERIC DESIGNATIONS.—
14
‘‘(A) IN
15
GENERAL.—In
the case of any
wine to which this paragraph applies—
16
‘‘(i) paragraph (1) shall not apply,
17
‘‘(ii) in the case of wine of the Euro-
18
pean Community, designations referred to
19
in subparagraph (C)(i) may be used for
20
such wine only if the requirement of sub-
21
paragraph (B)(ii) is met, and
22
‘‘(iii) in the case any other wine bear-
23
ing a brand name, or brand name and fan-
24
ciful name, semi-generic designations may
25
be used for such wine only if the require-
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114
1
ments of clauses (i), (ii), and (iii) of sub-
2
paragraph (B) are met.
3
‘‘(B) REQUIREMENTS.—
4
‘‘(i) The requirement of this clause is
5
met if there appears in direct conjunction
6
with the semi-generic designation an ap-
7
propriate appellation of origin disclosing
8
the origin of the wine.
9
‘‘(ii) The requirement of this clause is
10
met if the wine conforms to the standard
11
of identity, if any, for such wine contained
12
in the regulations under this section or, if
13
there is no such standard, to the trade un-
14
derstanding of such class or type.
15
‘‘(iii) The requirement of this clause
16
is met if the person, or its successor in in-
17
terest, using the semi-generic designation
18
held a Certificate of Label Approval or
19
Certificate of Exemption from Label Ap-
20
proval issued by the Secretary for a wine
21
label bearing such brand name, or brand
22
name and fanciful name, before March 10,
23
2006, on which such semi-generic designa-
24
tion appeared.
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115
1
‘‘(C) WINES
2
TO WHICH PARAGRAPH AP-
PLIES.—
3
‘‘(i) IN
GENERAL.—Except
as pro-
4
vided in clause (ii), this paragraph shall
5
apply to any grape wine which is des-
6
ignated as Burgundy, Claret, Chablis,
7
Champagne, Chianti, Malaga, Marsala,
8
Madeira, Moselle, Port, Retsina, Rhine
9
Wine or Hock, Sauterne, Haut Sauterne,
10
Sherry, or Tokay.
11
‘‘(ii)
12
EXCEPTION.—This
paragraph
shall not apply to wine which—
13
‘‘(I) contains less than 7 percent
14
or more than 24 percent alcohol by
15
volume,
16
‘‘(II) is intended for sale outside
17
the United States, or
18
‘‘(III) does not bear a brand
19
name.’’.
20
(b) EFFECTIVE DATE.—The amendments made by
21 this section shall apply to wine imported or bottled in the
22 United States on or after the date of enactment of this
23 Act.
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1
SEC. 423. MODIFICATION OF RAILROAD TRACK MAINTE-
2
NANCE CREDIT.
3
(a) IN GENERAL.—Section 45G(d) (defining qualified
4 railroad track maintenance expenditures) is amended—
5
(1) by inserting ‘‘gross’’ after ‘‘means’’, and
6
(2) by inserting ‘‘(determined without regard to
7
any consideration for such expenditures given by the
8
Class II or Class III railroad which made the assign-
9
ment of such track)’’ after ‘‘Class II or Class III
10
railroad’’.
11
(b) EFFECTIVE DATE.—The amendment made by
12 this section shall take effect as if included in the amend13 ment made by section 245(a) of the American Jobs Cre14 ation Act of 2004.
15
SEC. 424. MODIFICATION OF EXCISE TAX ON UNRELATED
16
BUSINESS TAXABLE INCOME OF CHARITABLE
17
REMAINDER TRUSTS.
18
(a) IN GENERAL.—Subsection (c) of section 664 (re-
19 lating to exemption from income taxes) is amended to read
20 as follows:
21
‘‘(c) TAXATION OF TRUSTS.—
22
‘‘(1) INCOME
charitable remainder an-
23
nuity trust and a charitable remainder unitrust
24
shall, for any taxable year, not be subject to any tax
25
imposed by this subtitle.
26
‘‘(2) EXCISE
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117
1
‘‘(A) IN
GENERAL.—In
the case of a chari-
2
table remainder annuity trust or a charitable
3
remainder unitrust which has unrelated busi-
4
ness taxable income (within the meaning of sec-
5
tion 512, determined as if part III of sub-
6
chapter F applied to such trust) for a taxable
7
year, there is hereby imposed on such trust or
8
unitrust an excise tax equal to the amount of
9
such unrelated business taxable income.
10
‘‘(B) CERTAIN
RULES TO APPLY.—The
tax
11
imposed by subparagraph (A) shall be treated
12
as imposed by chapter 42 for purposes of this
13
title other than subchapter E of chapter 42.
14
‘‘(C) TAX
COURT PROCEEDINGS.—For
pur-
15
poses of this paragraph, the references in sec-
16
tion 6212(c)(1) to section 4940 shall be deemed
17
to include references to this paragraph.’’.
18
(b) EFFECTIVE DATE.—The amendment made by
19 this section shall apply to taxable years beginning after
20 December 31, 2006.
21
SEC. 425. LOANS TO QUALIFIED CONTINUING CARE FACILI-
22
TIES MADE PERMANENT.
23
(a) IN GENERAL.—Subsection (h) of section 7872
24 (relating to exception for loans to qualified continuing care
25 facilities) is amended by striking paragraph (4).
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118
1
(b) EFFECTIVE DATE.—The amendment made by
2 this section shall take effect as if included in section 209
3 of the Tax Increase Prevention and Reconciliation Act of
4 2005.
5
SEC. 426. TECHNICAL CORRECTIONS.
6
(a) TECHNICAL CORRECTION RELATING
7 THROUGH TREATMENT
8
LATED
9
THE
LOOK-
PAYMENTS BETWEEN RE-
CONTROLLED FOREIGN CORPORATIONS UNDER
FOREIGN PERSONAL HOLDING COMPANY RULES.—
10
(1) IN
11
GENERAL.—
(A)
The
first
sentence
of
section
12
954(c)(6)(A) is amended by striking ‘‘which is
13
not subpart F income’’ and inserting ‘‘which is
14
neither subpart F income nor income treated as
15
effectively connected with the conduct of a
16
trade or business in the United States’’.
17
(B) Section 954(c)(6)(A) is amended by
18
striking the last sentence and inserting the fol-
19
lowing: ‘‘The Secretary shall prescribe such reg-
20
ulations as may be necessary or appropriate to
21
carry out this paragraph, including such regula-
22
tions as may be necessary or appropriate to
23
prevent the abuse of the purposes of this para-
24
graph.’’
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1
(2) EFFECTIVE
DATE.—The
amendments made
2
by this subsection shall take effect as if included in
3
section 103(b) of the Tax Increase Prevention and
4
Reconciliation Act of 2005.
5
(b) TECHNICAL CORRECTION REGARDING AUTHOR-
6
ITY TO
EXERCISE REASONABLE CAUSE
AND
GOOD FAITH
7 EXCEPTION.—
8
(1) IN
GENERAL.—Section
903(d)(2)(B)(iii) of
9
the American Jobs Creation Act of 2004, as amend-
10
ed by section 303(a) of the Gulf Opportunity Zone
11
Act of 2005, is amended by inserting ‘‘or the Sec-
12
retary’s delegate’’ after ‘‘the Secretary of the Treas-
13
ury’’.
14
(2) EFFECTIVE
DATE.—The
amendment made
15
by this subsection shall take effect as if included in
16
the provisions of the American Jobs Creation Act of
17
2004 to which it relates.
DIVISION B—MEDICARE AND
OTHER HEALTH PROVISIONS
18
19
20
SEC. 1. SHORT TITLE OF DIVISION.
21
This division may be cited as the ‘‘Medicare Improve-
22 ments and Extension Act of 2006’’.
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120
3
TITLE I—MEDICARE IMPROVED
QUALITY AND PROVIDER PAYMENTS
4
SEC. 101. PHYSICIAN PAYMENT AND QUALITY IMPROVE-
1
2
5
MENT.
6
(a) ONE-YEAR INCREASE
IN
MEDICARE PHYSICIAN
7 FEE SCHEDULE CONVERSION FACTOR.—Section 1848(d)
8 of the Social Security Act (42 U.S.C. 1395w-4(d)) is
9 amended by adding at the end the following new para10 graph:
11
‘‘(7) CONVERSION
12
‘‘(A) IN
GENERAL.—The
conversion factor
13
that would otherwise be applicable under this
14
subsection for 2007 shall be the amount of such
15
conversion factor divided by the product of—
16
‘‘(i) 1 plus the Secretary’s estimate of
17
the percentage increase in the MEI (as de-
18
fined in section 1842(i)(3)) for 2007 (di-
19
vided by 100); and
20
‘‘(ii) 1 plus the Secretary’s estimate of
21
the update adjustment factor under para-
22
graph (4)(B) for 2007.
23
‘‘(B) NO
EFFECT ON COMPUTATION OF
24
CONVERSION FACTOR FOR 2008.—The
25
sion factor under this subsection shall be com-
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1
puted under paragraph (1)(A) for 2008 as if
2
subparagraph (A) had never applied.’’.
3
(b) QUALITY REPORTING SYSTEM.—Section 1848 of
4 the Social Security Act (42 U.S.C. 1395w-4) is amended
5 by adding at the end the following new subsection:
6
‘‘(k) QUALITY REPORTING SYSTEM.—
7
‘‘(1) IN
Secretary shall imple-
8
ment a system for the reporting by eligible profes-
9
sionals of data on quality measures specified under
10
paragraph (2). Such data shall be submitted in a
11
form and manner specified by the Secretary (by pro-
12
gram instruction or otherwise), which may include
13
submission of such data on claims under this part.
14
‘‘(2) USE
15
CONSENSUS-BASED
OF
QUALITY
MEASURES.—
16
‘‘(A) FOR
17
2007.—
‘‘(i) IN
GENERAL.—For
purposes of
18
applying this subsection for the reporting
19
of data on quality measures for covered
20
professional services furnished during the
21
period beginning July 1, 2007, and ending
22
December 31, 2007, the quality measures
23
specified under this paragraph are the
24
measures identified as 2007 physician
25
quality measures under the Physician Vol-
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1
untary Reporting Program as published on
2
the public website of the Centers for Medi-
3
care & Medicaid Services as of the date of
4
the enactment of this subsection, except as
5
may be changed by the Secretary based on
6
the results of a consensus-based process in
7
January of 2007, if such change is pub-
8
lished on such website by not later than
9
April 1, 2007.
10
‘‘(ii) SUBSEQUENT
11
APPLICATION PERMITTED.—The
12
may, from time to time (but not later than
13
July 1, 2007), publish on such website
14
(without notice or opportunity for public
15
comment) modifications or refinements
16
(such as code additions, corrections, or re-
17
visions) for the application of quality meas-
18
ures previously published under clause (i),
19
but may not, under this clause, change the
20
quality measures under the reporting sys-
21
tem.
22
‘‘(iii)
Secretary
IMPLEMENTATION.—Notwith-
23
standing any other provision of law, the
24
Secretary may implement by program in-
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1
struction or otherwise this subsection for
2
2007.
3
‘‘(B) FOR
4
‘‘(i) IN
GENERAL.—For
purposes of
5
reporting data on quality measures for cov-
6
ered professional services furnished during
7
2008, the quality measures specified under
8
this paragraph for covered professional
9
services shall be measures that have been
10
adopted or endorsed by a consensus orga-
11
nization (such as the National Quality
12
Forum or AQA), that include measures
13
that have been submitted by a physician
14
specialty, and that the Secretary identifies
15
as having used a consensus-based process
16
for developing such measures. Such meas-
17
ures shall include structural measures,
18
such as the use of electronic health records
19
and electronic prescribing technology.
20
‘‘(ii) PROPOSED
SET OF MEASURES.—
21
Not later than August 15, 2007, the Sec-
22
retary shall publish in the Federal Register
23
a proposed set of quality measures that the
24
Secretary determines are described in
25
clause (i) and would be appropriate for eli-
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1
gible professionals to use to submit data to
2
the Secretary in 2008. The Secretary shall
3
provide for a period of public comment on
4
such set of measures.
5
‘‘(iii) FINAL
6
later than November 15, 2007, the Sec-
7
retary shall publish in the Federal Register
8
a final set of quality measures that the
9
Secretary determines are described in
10
clause (i) and would be appropriate for eli-
11
gible professionals to use to submit data to
12
the Secretary in 2008.
13
‘‘(3) COVERED
PROFESSIONAL SERVICES AND
14
ELIGIBLE PROFESSIONALS DEFINED.—For
15
of this subsection:
16
‘‘(A)
COVERED
purposes
PROFESSIONAL
SERV-
17
ICES.—The
18
means services for which payment is made
19
under, or is based on, the fee schedule estab-
20
lished under this section and which are fur-
21
nished by an eligible professional.
22
term ‘covered professional services’
‘‘(B) ELIGIBLE
PROFESSIONAL.—The
term
23
‘eligible professional’ means any of the fol-
24
lowing:
25
‘‘(i) A physician.
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125
1
‘‘(ii) A practitioner described in sec-
2
tion 1842(b)(18)(C).
3
‘‘(iii) A physical or occupational ther-
4
apist or a qualified speech-language pathol-
5
ogist.
6
‘‘(4) USE
7
As part of the publication of proposed and final
8
quality measures for 2008 under clauses (ii) and
9
(iii) of paragraph (2)(B), the Secretary shall address
10
a mechanism whereby an eligible professional may
11
provide data on quality measures through an appro-
12
priate medical registry (such as the Society of Tho-
13
racic Surgeons National Database), as identified by
14
the Secretary.
15
‘‘(5) IDENTIFICATION
UNITS.—For
purposes of
16
applying this subsection, the Secretary may identify
17
eligible professionals through billing units, which
18
may include the use of the Provider Identification
19
Number, the unique physician identification number
20
(described in section 1833(q)(1)), the taxpayer iden-
21
tification number, or the National Provider Identi-
22
fier. For purposes of applying this subsection for
23
2007, the Secretary shall use the taxpayer identifica-
24
tion number as the billing unit.
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OF REGISTRY-BASED REPORTING.—
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126
1
‘‘(6) EDUCATION
Sec-
2
retary shall provide for education and outreach to el-
3
igible professionals on the operation of this sub-
4
section.
5
‘‘(7) LIMITATIONS
ON REVIEW.—There
shall be
6
no administrative or judicial review under section
7
1869, section 1878, or otherwise, of the development
8
and implementation of the reporting system under
9
paragraph (1), including identification of quality
10
measures under paragraph (2) and the application
11
of paragraphs (4) and (5).
12
‘‘(8) IMPLEMENTATION.—The Secretary shall
13
carry out this subsection acting through the Admin-
14
istrator of the Centers for Medicare & Medicaid
15
Services.’’.
16
(c) TRANSITIONAL BONUS INCENTIVE PAYMENTS
17
FOR
QUALITY REPORTING IN 2007.—
18
(1) IN
GENERAL.—With
respect to covered pro-
19
fessional services furnished during a reporting period
20
(as defined in paragraph (6)(C)) by an eligible pro-
21
fessional, if—
22
(A) there are any quality measures that
23
have been established under the physician re-
24
porting system that are applicable to any such
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AND OUTREACH.—The
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H.L.C.
127
1
services furnished by such professional for such
2
period, and
3
(B) the eligible professional satisfactorily
4
submits (as determined under paragraph (2)) to
5
the Secretary data on such quality measures in
6
accordance with such reporting system for such
7
reporting period,
8
in addition to the amount otherwise paid under part
9
B of title XVIII of the Social Security Act, subject
10
to paragraph (3), there also shall be paid to the eli-
11
gible professional (or to an employer or facility in
12
the cases described in clause (A) of section
13
1842(b)(6) of the Social Security Act (42 U.S.C.
14
1395u(b)(6))) from the Federal Supplementary
15
Medical Insurance Trust Fund established under
16
section 1841 of such Act (42 U.S.C. 1395t) an
17
amount equal to 1.5 percent of the Secretary’s esti-
18
mate (based on claims submitted not later than two
19
months after the end of the reporting period) of the
20
allowed charges under such part for all such covered
21
professional services furnished during the reporting
22
period.
23
(2) SATISFACTORY
24
For purposes of paragraph (1), an eligible profes-
25
sional shall be treated as satisfactorily submitting
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REPORTING DESCRIBED.—
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H.L.C.
128
1
data on quality measures for covered professional
2
services for a reporting period if quality measures
3
have been reported as follows:
4
(A) THREE
5
APPLICABLE.—If
6
quality measures that are provided under the
7
physician reporting system and that are appli-
8
cable to such services of such professional fur-
9
nished during the period, each such quality
10
measure has been reported under such system
11
in at least 80 percent of the cases in which
12
such measure is reportable under the system.
13
(B) FOUR
there are no more than 3
OR MORE QUALITY MEASURES
14
APPLICABLE.—If
15
measures that are provided under the physician
16
reporting system and that are applicable to
17
such services of such professional furnished
18
during the period, at least 3 such quality meas-
19
ures have been reported under such system in
20
at least 80 percent of the cases in which the re-
21
spective measure is reportable under the sys-
22
tem.
23
(3) PAYMENT
24
(A) IN
25
21:12 Dec 07, 2006
there are 4 or more quality
LIMITATION.—
GENERAL.—In
no case shall the
total payment made under this subsection to an
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December 7, 2006 (9:12 p.m.)
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OR FEWER QUALITY MEASURES
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129
1
eligible professional (or to an employer or facil-
2
ity in the cases described in clause (A) of sec-
3
tion 1842(b)(6) of the Social Security Act) ex-
4
ceed the product of—
5
(i) the total number of quality meas-
6
ures for which data are submitted under
7
the physician reporting system for covered
8
professional services of such professional
9
that are furnished during the reporting pe-
10
riod; and
11
(ii) 300 percent of the average per
12
measure payment amount specified in sub-
13
paragraph (B).
14
(B) AVERAGE
MEASURE
PAYMENT
15
AMOUNT SPECIFIED.—The
16
payment amount specified in this subparagraph
17
is an amount, estimated by the Secretary
18
(based on claims submitted not later than two
19
months after the end of the reporting period),
20
equal to—
average per measure
21
(i) the total of the amount of allowed
22
charges under part B of title XVIII of the
23
Social Security Act for all covered profes-
24
sional services furnished during the report-
25
ing period on claims for which quality
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H.L.C.
130
1
measures are reported under the physician
2
reporting system; divided by
3
(ii) the total number of quality meas-
4
ures for which data are reported under
5
such system for covered professional serv-
6
ices furnished during the reporting period.
7
(4) FORM
payment under
8
this subsection shall be in the form of a single con-
9
solidated payment.
10
(5) APPLICATION.—
11
(A)
PHYSICIAN
REPORTING
SYSTEM
12
RULES.—Paragraphs
13
tion 1848(k) of the Social Security Act, as
14
added by subsection (b), shall apply for pur-
15
poses of this subsection in the same manner as
16
they apply for purposes of such section.
17
(5), (6), and (8) of sec-
(B) COORDINATION
WITH OTHER BONUS
18
PAYMENTS.—The
19
shall not be taken into account in applying sub-
20
sections (m) and (u) of section 1833 of the So-
21
cial Security Act (42 U.S.C. 1395l) and any
22
payment under such subsections shall not be
23
taken into account in computing allowable
24
charges under this subsection.
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OF PAYMENT.—The
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H.L.C.
131
1
(C)
2
any other provision of law, the Secretary may
3
implement by program instruction or otherwise
4
this subsection.
5
(D) VALIDATION.—
6
(i) IN
GENERAL.—Subject
to the suc-
7
ceeding provisions of this subparagraph,
8
for purposes of determining whether a
9
measure is applicable to the covered pro-
10
fessional services of an eligible professional
11
under paragraph (2), the Secretary shall
12
presume that if an eligible professional
13
submits data for a measure, such measure
14
is applicable to such professional.
15
(ii) METHOD.— The Secretary shall
16
validate (by sampling or other means as
17
the Secretary determines to be appro-
18
priate) whether measures applicable to cov-
19
ered professional services of an eligible
20
professional have been reported.
21
(iii) DENIAL
OF PAYMENT AUTHOR-
22
ITY.—If
23
eligible professional has not reported meas-
24
ures applicable to covered professional
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IMPLEMENTATION.—Notwithstanding
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H.L.C.
132
1
services of such professional, the Secretary
2
shall not pay the bonus incentive payment.
3
(E) LIMITATIONS
4
(i) IN
GENERAL.—There
shall be no
5
administrative or judicial review under sec-
6
tion 1869 or 1878 of the Social Security
7
Act or otherwise of—
8
(I) the determination of measures
9
applicable to services furnished by eli-
10
gible professionals under this sub-
11
section;
12
(II) the determination of satisfac-
13
tory reporting under paragraph (2);
14
(III) the determination of the
15
payment limitation under paragraph
16
(3); and
17
(IV) the determination of the
18
bonus incentive payment under this
19
subsection.
20
(ii)
TREATMENT
OF
DETERMINA-
21
TIONS.—A
22
section shall not be treated as a determina-
23
tion for purposes of section 1869 of the
24
Social Security Act.
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
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ON REVIEW.—
21:12 Dec 07, 2006
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H.L.C.
133
1
(6) DEFINITIONS.—For purposes of this sub-
2
section:
3
(A) ELIGIBLE
PROFESSIONAL;
COVERED
4
PROFESSIONAL SERVICES.—The
5
professional’’ and ‘‘covered professional serv-
6
ices’’ have the meanings given such terms in
7
section 1848(k)(3) of the Social Security Act,
8
as added by subsection (b).
9
(B) PHYSICIAN
terms ‘‘eligible
REPORTING SYSTEM.—The
10
term ‘‘physician reporting system’’ means the
11
system established under section 1848(k) of the
12
Social Security Act, as added by subsection (b).
13
(C) REPORTING
PERIOD.—The
term ‘‘re-
14
porting period’’ means the period beginning on
15
July 1, 2007, and ending on December 31,
16
2007.
17
(D) SECRETARY.—The term ‘‘Secretary’’
18
means the Secretary of Health and Human
19
Services.
20
21
(d) PHYSICIAN ASSISTANCE
TIVE
AND
QUALITY INITIA-
FUND.—Section 1848 of the Social Security Act, as
22 amended by subsection (b), is further amended by adding
23 at the end the following new subsection:
24
25
‘‘(l) PHYSICIAN ASSISTANCE
TIVE
21:12 Dec 07, 2006
QUALITY INITIA-
FUND.—
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December 7, 2006 (9:12 p.m.)
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AND
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H.L.C.
134
1
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
2
tablish under this subsection a Physician Assistance
3
and Quality Initiative Fund (in this subsection re-
4
ferred to as the ‘Fund’) which shall be available to
5
the Secretary for physician payment and quality im-
6
provement initiatives, which may include application
7
of an adjustment to the update of the conversion
8
factor under subsection (d).
9
‘‘(2) FUNDING.—
10
‘‘(A) AMOUNT
shall be
11
available to the Fund for expenditures an
12
amount equal to $1,350,000,000.
13
‘‘(B) TIMELY
OBLIGATION OF ALL AVAIL-
14
ABLE FUNDS FOR SERVICES FURNISHED DUR-
15
ING 2008.—The
16
penditures from the Fund in a manner designed
17
to provide (to the maximum extent feasible) for
18
the obligation of the entire amount specified in
19
subparagraph (A) for payment with respect to
20
physicians’ services furnished during 2008.
21
Secretary shall provide for ex-
‘‘(C) PAYMENT
FROM TRUST FUND.—The
22
amount specified in subparagraph (A) shall be
23
available to the Fund, as expenditures are made
24
from the Fund, from the Federal Supple-
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December 7, 2006 (9:12 p.m.)
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AVAILABLE.—There
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H.L.C.
135
1
mentary Medical Insurance Trust Fund under
2
section 1841.
3
‘‘(D) FUNDING
LIMITATION.—Amounts
in
4
the Fund shall be available in advance of appro-
5
priations in accordance with subparagraph (B)
6
but only if the total amount obligated from the
7
Fund does not exceed the amount available to
8
the Fund under subparagraph (A). The Sec-
9
retary may obligate funds from the Fund only
10
if the Secretary determines (and the Chief Ac-
11
tuary of the Centers for Medicare & Medicaid
12
Services and the appropriate budget officer cer-
13
tify) that there are available in the Fund suffi-
14
cient amounts to cover all such obligations in-
15
curred consistent with the previous sentence.
16
‘‘(E) CONSTRUCTION.—In the case that
17
expenditures from the Fund are applied to, or
18
otherwise affect, a conversion factor under sub-
19
section (d) for a year, the conversion factor
20
under such subsection shall be computed for a
21
subsequent year as if such application or effect
22
had never occurred.’’.
23
(e) IMPLEMENTATION.—For purposes of imple-
24 menting the provisions of, and amendments made by, this
25 section, the Secretary of Health and Human Services shall
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December 7, 2006 (9:12 p.m.)
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H.L.C.
136
1 provide for the transfer, from the Federal Supplementary
2 Medical Insurance Trust Fund established under section
3 1841 of the Social Security Act (42 U.S.C. 1395t), of
4 $60,000,000 to the Centers for Medicare & Medicaid Serv5 ices Program Management Account for the period of fiscal
6 years 2007, 2008, and 2009.
7
SEC. 102. EXTENSION OF FLOOR ON MEDICARE WORK GEO-
8
GRAPHIC ADJUSTMENT.
9
Section 1848(e)(1)(E) of the Social Security Act (42
10 U.S.C. 1395w–4(e)(1)(E)) is amended by striking ‘‘before
11 January 1, 2007’’ and inserting ‘‘before January 1,
12 2008’’.
13
SEC. 103. UPDATE TO THE COMPOSITE RATE COMPONENT
14
OF THE BASIC CASE-MIX ADJUSTED PRO-
15
SPECTIVE PAYMENT SYSTEM FOR DIALYSIS
16
SERVICES.
17
(a) IN GENERAL.—Section 1881(b)(12)(G) of the So-
18 cial Security Act (42 U.S.C. 1395rr(b)(12)(G)) is amend19 ed to read as follows:
20
‘‘(G) The Secretary shall increase the amount of the
21 composite rate component of the basic case-mix adjusted
22 system under subparagraph (B) for dialysis services—
23
‘‘(i) furnished on or after January 1, 2006, and
24
before April 1, 2007, by 1.6 percent above the
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H.L.C.
137
1
amount of such composite rate component for such
2
services furnished on December 31, 2005; and
3
‘‘(ii) furnished on or after April 1, 2007, by 1.6
4
percent above the amount of such composite rate
5
component for such services furnished on March 31,
6
2007.’’.
7
(b) GAO REPORT
ON
HOME DIALYSIS PAYMENT.—
8 Not later than January 1, 2009, the Comptroller General
9 of the United States shall submit to Congress a report
10 on the costs for home hemodialysis treatment and patient
11 training for both home hemodialysis and peritoneal dialy12 sis. Such report shall also include recommendations for
13 a payment methodology for payment under section 1881
14 of the Social Security Act (42 U.S.C. 1395rr) that meas15 ures, and is based on, the costs of providing such services
16 and takes into account the case mix of patients.
17
SEC. 104. EXTENSION OF TREATMENT OF CERTAIN PHYSI-
18
CIAN PATHOLOGY SERVICES UNDER MEDI-
19
CARE.
20
Section 542(c) of the Medicare, Medicaid, and
21 SCHIP Benefits Improvement and Protection Act of 2000
22 (as enacted into law by section 1(a)(6) of Public Law 106–
23 554), as amended by section 732 of the Medicare Prescrip24 tion Drug, Improvement, and Modernization Act of 2003
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December 7, 2006 (9:12 p.m.)
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21:12 Dec 07, 2006
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H.L.C.
138
1 (Public Law 108–173), is amended by striking ‘‘and
2 2006’’ and inserting ‘‘, 2006, and 2007’’.
3
SEC. 105. EXTENSION OF MEDICARE REASONABLE COSTS
4
PAYMENTS FOR CERTAIN CLINICAL DIAG-
5
NOSTIC LABORATORY TESTS FURNISHED TO
6
HOSPITAL
7
AREAS.
8
PATIENTS
IN
CERTAIN
RURAL
Effective as if included in the enactment of section
9 416 of the Medicare Prescription Drug, Improvement, and
10 Modernization Act of 2003 (42 U.S.C. 1395l–4), sub11 section (b) of such section is amended by striking ‘‘2-year
12 period’’ and inserting ‘‘3-year period’’.
13
SEC. 106. HOSPITAL MEDICARE REPORTS AND CLARIFICA-
14
TIONS.
15
(a) CORRECTION
OF
MID-YEAR RECLASSIFICATION
16 EXPIRATION.—Notwithstanding any other provision of
17 law, in the case of a subsection (d) hospital (as defined
18 for purposes of section 1886 of the Social Security Act
19 (42 U.S.C. 1395ww)) with respect to which a reclassifica20 tion of its wage index for purposes of such section would
21 (but for this subsection) expire on March 31, 2007, such
22 reclassification of such hospital shall be extended through
23 September 30, 2007. The previous sentence shall not be
24 effected in a budget-neutral manner.
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December 7, 2006 (9:12 p.m.)
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H.L.C.
139
1
(b) REVISION
OF THE
MEDICARE WAGE INDEX
2 CLASSIFICATION SYSTEM.—
3
(1) MEDPAC
4
(A) IN
GENERAL.—The
Medicare Payment
5
Advisory Commission shall submit to Congress,
6
by not later than June 30, 2007, a report on
7
its study of the wage index classification system
8
applied under Medicare prospective payment
9
systems, including under section 1886(d)(3)(E)
10
of
11
1395ww(d)(3)(E)). Such report shall include
12
any alternatives the Commission recommends to
13
the method to compute the wage index under
14
such section.
the
Social
Security
Act
(42
U.S.C.
15
(B) FUNDING.—Out of any funds in the
16
Treasury not otherwise appropriated, there are
17
appropriated to the Medicare Payment Advisory
18
Commission, $2,000,000 for fiscal year 2007 to
19
carry out this paragraph.
20
(2) PROPOSAL
TO REVISE THE HOSPITAL WAGE
21
INDEX CLASSIFICATION SYSTEM.—
22
Health and Human Services, taking into account the
23
recommendations described in the report under
24
paragraph (1), shall include in the proposed rule
25
published under section 1886(e)(5)(A) of the Social
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December 7, 2006 (9:12 p.m.)
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REPORT.—
21:12 Dec 07, 2006
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The Secretary of
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H.L.C.
140
1
Security Act (42 U.S.C. 1395ww(e)(5)(A)) for fiscal
2
year 2009 one or more proposals to revise the wage
3
index
4
1886(d)(3)(E)
5
1395ww(d)(3)(E)) for purposes of the Medicare pro-
6
spective payment system for inpatient hospital serv-
7
ices. Such proposal (or proposals) shall consider
8
each of the following:
applied
of
such
Act
under
section
(42
U.S.C.
9
(A) Problems associated with the definition
10
of labor markets for purposes of such wage
11
index adjustment.
12
(B) The modification or elimination of geo-
13
graphic reclassifications and other adjustments.
14
(C) The use of Bureau of Labor Statistics
15
data, or other data or methodologies, to cal-
16
culate relative wages for each geographic area
17
involved.
18
(D) Minimizing variations in wage index
19
adjustments between and within Metropolitan
20
Statistical Areas and Statewide rural areas.
21
(E) The feasibility of applying all compo-
22
nents of the proposal to other settings, includ-
23
ing home health agencies and skilled nursing
24
facilities.
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December 7, 2006 (9:12 p.m.)
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H.L.C.
141
1
(F) Methods to minimize the volatility of
2
wage index adjustments, while maintaining the
3
principle of budget neutrality in applying such
4
adjustments.
5
(G) The effect that the implementation of
6
the proposal would have on health care pro-
7
viders and on each region of the country.
8
(H) Methods for implementing the pro-
9
posal, including methods to phase-in such im-
10
plementation.
11
(I) Issues relating to occupational mix,
12
such as staffing practices and any evidence on
13
the effect on quality of care and patient safety
14
and any recommendations for alternative cal-
15
culations.
16
(c) ELIMINATION
OF
UNNECESSARY REPORT.—Sec-
17 tion 1886 of the Social Security Act (42 U.S.C. 1395ww)
18 is amended—
19
(1) in subsection (d)(4)(C), by striking clause
20
(iv); and
21
22
(2) in subsection (e), by striking paragraph (3).
SEC. 107. PAYMENT FOR BRACHYTHERAPY.
23
(a)
EXTENSION
OF
PAYMENT
RULE.—Section
24 1833(t)(16)(C) of the Social Security Act (42 U.S.C.
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142
1 1395l(t)(16)(C)) is amended by striking ‘‘January 1,
2 2007’’ and inserting ‘‘January 1, 2008’’.
3
(b)
ESTABLISHMENT
OF
SEPARATE
PAYMENT
4 GROUPS.—
5
(1) IN
GENERAL.—Section
1833(t)(2)(H) of
6
such Act (42 U.S.C. 1395l(t)(2)(H)) is amended by
7
inserting ‘‘and for stranded and non-stranded de-
8
vices furnished on or after July 1, 2007’’ before the
9
period at the end.
10
(2)
IMPLEMENTATION.—The
Secretary
of
11
Health and Human Services may implement the
12
amendment made by paragraph (1) by program in-
13
struction or otherwise.
14
SEC. 108. PAYMENT PROCESS UNDER THE COMPETITIVE
15
ACQUISITION PROGRAM (CAP).
16
(a) IN GENERAL.—Section 1847B(a)(3) of the Social
17 Security Act (42 U.S.C. 1395w-3b(a)(3)) is amended—
18
(1) in subparagraph (A)(iii), by striking ‘‘and
19
biologicals’’ and all that follows and inserting ‘‘and
20
biologicals shall be made only to such contractor
21
upon receipt of a claim for a drug or biological sup-
22
plied by the contractor for administration to a bene-
23
ficiary.’’; and
24
(2) by adding at the end the following new sub-
25
paragraph:
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143
1
‘‘(D) POST-PAYMENT
REVIEW PROCESS.—
2
The Secretary shall establish (by program in-
3
struction or otherwise) a post-payment review
4
process (which may include the use of statistical
5
sampling) to assure that payment is made for
6
a drug or biological under this section only if
7
the drug or biological has been administered to
8
a beneficiary. The Secretary shall recoup, off-
9
set, or collect any overpayments determined by
10
the Secretary under such process.’’.
11
(b) CONSTRUCTION.—Nothing in this section shall be
12 construed as—
13
(1) requiring the conduct of any additional
14
competition under subsection (b)(1) of section
15
1847B of the Social Security Act (42 U.S.C. 1395w-
16
3b); or
17
(2) requiring any additional process for elec-
18
tions by physicians under subsection (a)(1)(A)(ii) of
19
such section or additional selection by a selecting
20
physician of a contractor under subsection (a)(5) of
21
such section.
22
(c) EFFECTIVE DATE.—The amendments made by
23 subsection (a) shall apply to payment for drugs and
24 biologicals supplied under section 1847B of the Social Se25 curity Act (42 U.S.C. 1395w-3b)—
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144
1
(1) on or after April 1, 2007; and
2
(2) on or after July 1, 2006, and before April
3
1, 2007, for claims that are unpaid as of April 1,
4
2007.
5
SEC.
109.
QUALITY
FOR
HOSPITAL
OUT-
6
PATIENT SERVICES AND AMBULATORY SUR-
7
GICAL CENTER SERVICES.
8
(a) OUTPATIENT HOSPITAL SERVICES.—
9
(1) IN
10
GENERAL.—Section
1833(t) of the Social
Security Act (42 U.S.C. 1395l(t)) is amended—
11
(A) in paragraph (3)(C)(iv), by inserting
12
‘‘subject to paragraph (17),’’ after ‘‘For pur-
13
poses of this subparagraph,’’; and
14
(B) by adding at the end the following new
15
paragraph:
16
‘‘(17) QUALITY
17
REPORTING.—
‘‘(A) REDUCTION
18
IN UPDATE FOR FAILURE
TO REPORT.—
19
‘‘(i) IN
GENERAL.—For
purposes of
20
paragraph (3)(C)(iv) for 2009 and each
21
subsequent year, in the case of a sub-
22
section (d) hospital (as defined in section
23
1886(d)(1)(B)) that does not submit, to
24
the Secretary in accordance with this para-
25
graph, data required to be submitted on
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H.L.C.
145
1
measures selected under this paragraph
2
with respect to such a year, the OPD fee
3
schedule increase factor under paragraph
4
(3)(C)(iv) for such year shall be reduced
5
by 2.0 percentage points.
6
‘‘(ii)
7
TION.—A
8
graph shall apply only with respect to the
9
year involved and the Secretary shall not
10
take into account such reduction in com-
11
puting the OPD fee schedule increase fac-
12
tor for a subsequent year.
13
‘‘(B) FORM
APPLICA-
reduction under this subpara-
AND
MANNER
OF
SUBMIS-
14
SION.—Each
15
mit data on measures selected under this para-
16
graph to the Secretary in a form and manner,
17
and at a time, specified by the Secretary for
18
purposes of this paragraph.
19
‘‘(C)
20
MEASURES.—
21
subsection (d) hospital shall sub-
DEVELOPMENT
‘‘(i) IN
OF
OUTPATIENT
GENERAL.—The
Secretary
22
shall develop measures that the Secretary
23
determines to be appropriate for the meas-
24
urement of the quality of care (including
25
medication errors) furnished by hospitals
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H.L.C.
146
1
in outpatient settings and that reflect con-
2
sensus among affected parties and, to the
3
extent feasible and practicable, shall in-
4
clude measures set forth by one or more
5
national consensus building entities.
6
‘‘(ii)
in
7
this paragraph shall be construed as pre-
8
venting the Secretary from selecting meas-
9
ures that are the same as (or a subset of)
10
the measures for which data are required
11
to
12
1886(b)(3)(B)(viii).
13
‘‘(D) REPLACEMENT
be
submitted
under
section
OF MEASURES.—For
14
purposes of this paragraph, the Secretary may
15
replace any measures or indicators in appro-
16
priate cases, such as where all hospitals are ef-
17
fectively in compliance or the measures or indi-
18
cators have been subsequently shown not to
19
represent the best clinical practice.
20
‘‘(E) AVAILABILITY
OF DATA.—The
Sec-
21
retary shall establish procedures for making
22
data submitted under this paragraph available
23
to the public. Such procedures shall ensure that
24
a hospital has the opportunity to review the
25
data that are to be made public with respect to
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H.L.C.
147
1
the hospital prior to such data being made pub-
2
lic. The Secretary shall report quality measures
3
of process, structure, outcome, patients’ per-
4
spectives on care, efficiency, and costs of care
5
that relate to services furnished in outpatient
6
settings in hospitals on the Internet website of
7
the Centers for Medicare & Medicaid Services.’’.
8
(2)
CONFORMING
AMENDMENT.—Section
9
1886(b)(3)(B)(viii)(III) of such Act (42 U.S.C.
10
1395ww(b)(3)(B)(viii)(III)) is amended by inserting
11
‘‘(including medication errors)’’ after ‘‘quality of
12
care’’.
13
(b) APPLICATION
14
TERS.—Section
TO
AMBULATORY SURGICAL CEN-
1833(i) of such Act (42 U.S.C. 1935l(i))
15 is amended—
16
(1) in paragraph (2)(D), by redesignating
17
clause (iv) as clause (v) and by inserting after clause
18
(iii) the following new clause:
19
‘‘(iv) The Secretary may implement such system in
20 a manner so as to provide for a reduction in any annual
21 update for failure to report on quality measures in accord22 ance with paragraph (7).’’; and
23
(2) by adding at the end the following new
24
paragraph:
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H.L.C.
148
1
‘‘(7)(A) For purposes of paragraph (2)(D)(iv), the
2 Secretary may provide, in the case of an ambulatory sur3 gical center that does not submit, to the Secretary in ac4 cordance with this paragraph, data required to be sub5 mitted on measures selected under this paragraph with re6 spect to a year, any annual increase provided under the
7 system established under paragraph (2)(D) for such year
8 shall be reduced by 2.0 percentage points. A reduction
9 under this subparagraph shall apply only with respect to
10 the year involved and the Secretary shall not take into
11 account such reduction in computing any annual increase
12 factor for a subsequent year.
13
‘‘(B) Except as the Secretary may otherwise provide,
14 the provisions of subparagraphs (B), (C), (D), and (E)
15 of paragraph (17) of section 1833(t) shall apply with re16 spect to services of ambulatory surgical centers under this
17 paragraph in a similar manner to the manner in which
18 they apply under such paragraph and, for purposes of this
19 subparagraph, any reference to a hospital, outpatient set20 ting, or outpatient hospital services is deemed a reference
21 to an ambulatory surgical center, the setting of such a
22 center, or services of such a center, respectively.’’.
23
(c) EFFECTIVE DATE.—The amendments made by
24 this section shall apply to payment for services furnished
25 on or after January 1, 2009.
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149
1
SEC. 110. REPORTING OF ANEMIA QUALITY INDICATORS
2
FOR MEDICARE PART B CANCER ANTI-ANE-
3
MIA DRUGS.
4
(a) IN GENERAL.—Section 1842 of the Social Secu-
5 rity Act (42 U.S.C. 1395u) is amended by adding at the
6 end the following new subsection:
7
‘‘(u) Each request for payment, or bill submitted, for
8 a drug furnished to an individual for the treatment of ane9 mia in connection with the treatment of cancer shall in10 clude (in a form and manner specified by the Secretary)
11 information on the hemoglobin or hematocrit levels for the
12 individual.’’.
13
(b) EFFECTIVE DATE.—The amendment made by
14 subsection (a) shall apply to drugs furnished on or after
15 January 1, 2008. The Secretary of Health and Human
16 Services shall address the implementation of such amend17 ment in the rulemaking process under section 1848 of the
18 Social Security Act (42 U.S.C. 1395w-4) for payment for
19 physicians’ services for 2008, consistent with the previous
20 sentence.
21
SEC. 111. CLARIFICATION OF HOSPICE SATELLITE DES-
22
IGNATION.
23
Notwithstanding any other provision of law, for pur-
24 poses of calculating the hospice aggregate payment cap for
25 2004, 2005, and 2006 for a hospice program under sec26 tion 1814(i)(2)(A) of the Social Security Act (42 U.S.C.
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H.L.C.
150
1 1395f(i)(2)(A)) for hospice care provided on or after No2 vember 1, 2003, and before December 27, 2005, Medicare
3 provider number 29-1511 is deemed to be a multiple loca4 tion of Medicare provider number 29-1500.
6
TITLE II—MEDICARE
BENEFICIARY PROTECTIONS
7
SEC. 201. EXTENSION OF EXCEPTIONS PROCESS FOR MEDI-
5
8
CARE THERAPY CAPS.
9
Section 1833(g)(5) of the Social Security Act (42
10 U.S.C. 1395l(g)(5)) is amended by striking ‘‘2006’’ and
11 inserting ‘‘the period beginning on January 1, 2006, and
12 ending on December 31, 2007,’’.
13
SEC. 202. PAYMENT FOR ADMINISTRATION OF PART D VAC-
14
CINES.
15
(a) TRANSITION
FOR
2007.—Notwithstanding any
16 other provision of law, in the case of a vaccine that is a
17 covered part D drug under section 1860D-2(e) of the So18 cial Security Act (42 U.S.C. 1395w-102(e)) and that is
19 administered during 2007, the administration of such vac20 cine shall be paid under part B of title XVIII of such Act
21 as if it were the administration of a vaccine described in
22 section
1861(s)(10)(B)
of
such
Act
(42
U.S.C.
23 1395w(s)(10)(B)).
24
(b) ADMINISTRATION INCLUDED
IN
25 COVERED PART D DRUGS BEGINNING
IN
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H.L.C.
151
1 1860D-2(e)(1) of the Social Security Act (42 U.S.C.
2 1395w-102(e)(1)) is amended, in the matter following sub3 paragraph (B), by inserting ‘‘(and, for vaccines adminis4 tered on or after January 1, 2008, its administration)’’
5 after ‘‘Public Health Service Act’’.
6
SEC. 203. OIG STUDY OF NEVER EVENTS.
7
(a) STUDY.—
8
(1) IN
9
Inspector General in
the Department of Health and Human Services shall
10
conduct a study on—
11
(A) incidences of never events for Medicare
12
beneficiaries, including types of such events and
13
payments by any party for such events;
14
(B) the extent to which the Medicare pro-
15
gram paid, denied payment, or recouped pay-
16
ment for services furnished in connection with
17
such events and the extent to which bene-
18
ficiaries paid for such services; and
19
(C) the administrative processes of the
20
Centers for Medicare & Medicaid Services to de-
21
tect such events and to deny or recoup pay-
22
ments for services furnished in connection with
23
such an event.
24
(2) CONDUCT
25
21:12 Dec 07, 2006
OF STUDY.—In
conducting the
study under paragraph (1), the Inspector General—
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152
1
(A) shall audit a representative sample of
2
claims and medical records of Medicare bene-
3
ficiaries to identify never events and any pay-
4
ment (or recoupment) for services furnished in
5
connection with such events;
6
(B) may request access to such claims and
7
records from any Medicare contractor; and
8
(C) shall not release individually identifi-
9
able information or facility-specific information.
10
(b) REPORT.—Not later than 2 years after the date
11 of the enactment of this Act, the Inspector General shall
12 submit a report to Congress on the study conducted under
13 this section. Such report shall include recommendations
14 for such legislation and administrative action, such as a
15 noncoverage policy or denial of payments, as the Inspector
16 General determines appropriate, including—
17
(1) recommendations on processes to identify
18
never events and to deny or recoup payments for
19
services furnished in connection with such events;
20
and
21
(2) a recommendation on a potential process (or
22
processes) for public disclosure of never events
23
which—
24
(A) will ensure protection of patient pri-
25
vacy; and
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H.L.C.
153
1
(B) will permit the use of the disclosed in-
2
formation for a root cause analysis to inform
3
the public and the medical community about
4
safety issues involved.
5
(c) FUNDING.— Out of any funds in the Treasury
6 not otherwise appropriated, there are appropriated to the
7 Inspector General of the Department of Health and
8 Human Services $3,000,000 to carry out this section, to
9 be available until January 1, 2010.
10
(d) NEVER EVENTS DEFINED.—For purposes of this
11 section, the term ‘‘never event’’ means an event that is
12 listed and endorsed as a serious reportable event by the
13 National Quality Forum as of November 16, 2006.
14
SEC. 204. MEDICARE MEDICAL HOME DEMONSTRATION
15
PROJECT.
16
(a) IN GENERAL.—The Secretary of Health and
17 Human Services (in this section referred to as the ‘‘Sec18 retary’’) shall establish under title XVIII of the Social Se19 curity Act a medical home demonstration project (in this
20 section referred to as the ‘‘project’’) to redesign the health
21 care delivery system to provide targeted, accessible, con22 tinuous and coordinated, family-centered care to high-need
23 populations and under which—
24
(1) care management fees are paid to persons
25
performing services as personal physicians; and
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H.L.C.
154
1
(2) incentive payments are paid to physicians
2
participating in practices that provide services as a
3
medical home under subsection (d).
4 For purposes of this subsection, the term ‘‘high-need pop5 ulation’’ means individuals with multiple chronic illnesses
6 that require regular medical monitoring, advising, or
7 treatment.
8
(b) DETAILS.—
9
(1) DURATION;
project shall oper-
10
ate during a period of three years and shall include
11
urban, rural, and underserved areas in a total of no
12
more than 8 States.
13
(2) ENCOURAGING
PARTICIPATION OF SMALL
14
PHYSICIAN PRACTICES.—The
15
signed to include the participation of physicians in
16
practices with fewer than three full-time equivalent
17
physicians, as well as physicians in larger practices
18
particularly in rural and underserved areas.
19
(c) PERSONAL PHYSICIAN DEFINED.—
20
(1) IN
GENERAL.—For
project shall be de-
purposes of this section,
21
the term ‘‘personal physician’’ means a physician (as
22
defined in section 1861(r)(1) of the Social Security
23
Act (42 U.S.C. 1395x(r)(1)) who—
24
(A) meets the requirements described in
25
paragraph (2); and
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H.L.C.
155
1
(B) performs the services described in
2
paragraph (3).
3
Nothing in this paragraph shall be construed as pre-
4
venting such a physician from being a specialist or
5
subspecialist for an individual requiring ongoing care
6
for a specific chronic condition or multiple chronic
7
conditions (such as severe asthma, complex diabetes,
8
cardiovascular disease, rheumatologic disorder) or
9
for an individual with a prolonged illness.
10
(2) REQUIREMENTS.—The requirements de-
11
scribed in this paragraph for a personal physician
12
are as follows:
13
(A) The physician is a board certified phy-
14
sician who provides first contact and continuous
15
care for individuals under the physician’s care.
16
(B) The physician has the staff and re-
17
sources to manage the comprehensive and co-
18
ordinated health care of each such individual.
19
(3) SERVICES
personal physi-
20
cian shall perform or provide for the performance of
21
at least the following services:
22
(A) Advocates for and provides ongoing
23
support, oversight, and guidance to implement
24
a plan of care that provides an integrated, co-
25
herent, cross-discipline plan for ongoing medical
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156
1
care developed in partnership with patients and
2
including all other physicians furnishing care to
3
the patient involved and other appropriate med-
4
ical personnel or agencies (such as home health
5
agencies).
6
(B) Uses evidence-based medicine and clin-
7
ical decision support tools to guide decision-
8
making at the point-of-care based on patient-
9
specific factors.
10
(C) Uses health information technology,
11
that may include remote monitoring and patient
12
registries, to monitor and track the health sta-
13
tus of patients and to provide patients with en-
14
hanced and convenient access to health care
15
services.
16
(D) Encourages patients to engage in the
17
management of their own health through edu-
18
cation and support systems.
19
(d) MEDICAL HOME DEFINED.—For purposes of this
20 section, the term ‘‘medical home’’ means a physician prac21 tice that—
22
(1) is in charge of targeting beneficiaries for
23
participation in the project; and
24
(2) is responsible for—
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1
(A) providing safe and secure technology
2
to promote patient access to personal health in-
3
formation;
4
(B) developing a health assessment tool for
5
the individuals targeted; and
6
(C) providing training programs for per-
7
sonnel involved in the coordination of care.
8
(e) PAYMENT MECHANISMS.—
9
(1) PERSONAL
10
FEE.—Under
11
for payment under section 1848 of the Social Secu-
12
rity Act (42 U.S.C. 1395w-4) of a care management
13
fee to personal physicians providing care manage-
14
ment under the project. Under such section and
15
using the relative value scale update committee
16
(RUC) process under such section, the Secretary
17
shall develop a care management fee code for such
18
payments and a value for such code.
19
the project, the Secretary shall provide
(2) MEDICAL
HOME SHARING IN SAVINGS.—The
20
Secretary shall provide for payment under the
21
project of a medical home based on the payment
22
methodology applied to physician group practices
23
under section 1866A of the Social Security Act (42
24
U.S.C. 1395cc-1). Under such methodology, 80 per-
25
cent of the reductions in expenditures under title
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1
XVIII of the Social Security Act resulting from par-
2
ticipation of individuals that are attributable to the
3
medical home (as reduced by the total care manage-
4
ments fees paid to the medical home under the
5
project) shall be paid to the medical home. The
6
amount of such reductions in expenditures shall be
7
determined by using assumptions with respect to re-
8
ductions in the occurrence of health complications,
9
hospitalization rates, medical errors, and adverse
10
drug reactions.
11
(3) SOURCE.—Payments paid under the project
12
shall be made from the Federal Supplementary Med-
13
ical Insurance Trust Fund under section 1841 of the
14
Social Security Act (42 U.S.C. 1395t).
15
(f) EVALUATIONS AND REPORTS.—
16
(1) ANNUAL
17
PORTS.—For
18
shall provide for an evaluation of the project and
19
shall submit to Congress, by a date specified by the
20
Secretary, a report on the project and on the evalua-
21
tion of the project for each such year.
22
each year of the project, the Secretary
(2) FINAL
EVALUATION
AND
REPORT.—The
23
Secretary shall provide for an evaluation of the
24
project and shall submit to Congress, not later than
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1
one year after completion of the project, a report on
2
the project and on the evaluation of the project.
3
SEC. 205. MEDICARE DRA TECHNICAL CORRECTIONS.
4
(a) PACE CLARIFICATION.—Paragraph (7) of sec-
5 tion 5302(c) of the Deficit Reduction Act of 2005 (42
6 U.S.C. 1395eee note) is amended to read as follows:
7
‘‘(7) APPROPRIATION.—
8
‘‘(A) IN
of funds in the
9
Treasury not otherwise appropriated, there are
10
appropriated to the Secretary $10,000,000 to
11
carry out this subsection for the period of fiscal
12
years 2006 through 2010.
13
‘‘(B) AVAILABILITY.—Funds appropriated
14
under subparagraph (A) shall remain available
15
for obligation through fiscal year 2010.’’.
16
(b) MISCELLANEOUS TECHNICAL CORRECTIONS.—
17
(1) CORRECTION
OF MARGIN (SECTION 5001).—
18
Section 1886(b)(3)(B) of the Social Security Act (42
19
U.S.C. 1395ww(b)(3)(B)), as amended by section
20
5001(a) of the Deficit Reduction Act of 2005 (Pub-
21
lic Law 109–171), is amended by moving clause
22
(viii) (including subclauses (I) through (VII) of such
23
clause) 6 ems to the left.
24
(2) REFERENCE
25
21:12 Dec 07, 2006
CORRECTION (SECTION 5114).—
Section 5114(a)(2) of the Deficit Reduction Act of
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1
2005 (Public Law 109–171), in the matter pre-
2
ceding subparagraph (A), is amended by striking
3
‘‘1842(b)(6)(F)
4
1395u(b)(6)(F))’’ and inserting ‘‘1842(b)(6) of such
5
Act (42 U.S.C. 1395u(b)(6))’’.
6
(c) EFFECTIVE DATE.—The amendments made by
of
such
Act
(42
U.S.C.
7 this section shall take effect as if included in the enact8 ment of the Deficit Reduction Act of 2005 (Public Law
9 109–171).
10
SEC. 206. LIMITED CONTINUOUS OPEN ENROLLMENT OF
11
ORIGINAL MEDICARE FEE-FOR-SERVICE EN-
12
ROLLEES INTO MEDICARE ADVANTAGE NON-
13
PRESCRIPTION DRUG PLANS.
14
(a) IN GENERAL.—Section 1851(e)(2) of the Social
15 Security Act (42 U.S.C. 1395w–21(e)(2)) is amended by
16 adding at the end the following new subparagraph:
17
‘‘(E) LIMITED
OPEN
EN-
18
ROLLMENT OF ORIGINAL FEE-FOR-SERVICE EN-
19
ROLLEES IN MEDICARE ADVANTAGE NON-PRE-
20
SCRIPTION DRUG PLANS.—
21
‘‘(i) IN
GENERAL.—On
any date dur-
22
ing 2007 or 2008 on which a Medicare Ad-
23
vantage eligible individual is an unenrolled
24
fee-for-service individual (as defined in
25
clause (ii)), the individual may elect under
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1
subsection (a)(1) to enroll in a Medicare
2
Advantage plan that is not an MA–PD
3
plan.
4
‘‘(ii) UNENROLLED
5
INDIVIDUAL DEFINED.—In
6
graph, the term ‘unenrolled fee-for-service
7
individual’ means, with respect to a date,
8
a Medicare Advantage eligible individual
9
who—
this subpara-
10
‘‘(I) is receiving benefits under
11
this title through enrollment in the
12
original medicare fee-for-service pro-
13
gram under parts A and B;
14
‘‘(II) is not enrolled in an MA
15
plan on such date; and
16
‘‘(III) as of such date is not oth-
17
erwise eligible to elect to enroll in an
18
MA plan.
19
‘‘(iii) LIMITATION
OF ONE CHANGE
20
DURING YEAR.—An
21
cise the right under clause (i) only once
22
during the year.
23
‘‘(iv)
NO
individual may exer-
EFFECT
ON
COVERAGE
24
UNDER A PRESCRIPTION DRUG PLAN.—
25
Nothing in this subparagraph shall be con-
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162
1
strued as permitting an individual exer-
2
cising the right under clause (i)—
3
‘‘(I) who is enrolled in a prescrip-
4
tion drug plan under part D, to
5
disenroll from such plan or to enroll
6
in a different prescription drug plan;
7
or
8
‘‘(II) who is not enrolled in a
9
prescription drug plan, to enroll in
10
such a plan.’’.
11
(b) CONFORMING AMENDMENT.—Section 1860D–
12 1(b)(1)(B)(iii) of the Social Security Act (42 U.S.C.
13 1395w–101(b)(1)(B)(iii)) is amended by striking ‘‘sub14 paragraphs (B) and (C)’’ and inserting ‘‘subparagraphs
15 (B), (C), and (E)’’.
17
TITLE III—MEDICARE PROGRAM
INTEGRITY EFFORTS
18
SEC. 301. OFFSETTING ADJUSTMENT IN MEDICARE ADVAN-
16
19
TAGE STABILIZATION FUND.
20
Section 1858(e)(2)(A)(i) of the Social Security Act
21 (42 U.S.C. 1395w-27a(e)(2)(A)(i)) is amended by striking
22 ‘‘2007,’’ and ‘‘$10,000,000,000’’ and inserting ‘‘2012,’’
23 and ‘‘$3,500,000,000’’, respectively.
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163
1
SEC. 302. EXTENSION AND EXPANSION OF RECOVERY
2
AUDIT CONTRACTOR PROGRAM UNDER THE
3
MEDICARE INTEGRITY PROGRAM.
4
(a) IN GENERAL.—Section 1893 of the Social Secu-
5 rity Act (42 U.S.C. 1395ddd) is amended by adding at
6 the end the following new subsection:
7
‘‘(h) USE OF RECOVERY AUDIT CONTRACTORS.—
8
‘‘(1) IN
the Program, the
9
Secretary shall enter into contracts with recovery
10
audit contractors in accordance with this subsection
11
for the purpose of identifying underpayments and
12
overpayments and recouping overpayments under
13
this title with respect to all services for which pay-
14
ment is made under part A or B. Under the con-
15
tracts—
16
‘‘(A) payment shall be made to such a con-
17
tractor only from amounts recovered;
18
‘‘(B) from such amounts recovered, pay-
19
ment—
20
‘‘(i) shall be made on a contingent
21
basis for collecting overpayments; and
22
‘‘(ii) may be made in such amounts as
23
the Secretary may specify for identifying
24
underpayments; and
25
‘‘(C) the Secretary shall retain a portion of
26
the amounts recovered which shall be available
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164
1
to the program management account of the
2
Centers for Medicare & Medicaid Services for
3
purposes of activities conducted under the re-
4
covery audit program under this subsection.
5
‘‘(2)
OF
REMAINING
RECOV-
6
ERIES.—The
7
tracts that are not paid to the contractor under
8
paragraph (1) or retained by the Secretary under
9
paragraph (1)(C) shall be applied to reduce expendi-
amounts recovered under such con-
10
tures under parts A and B.
11
‘‘(3) NATIONWIDE
COVERAGE.—The
Secretary
12
shall enter into contracts under paragraph (1) in a
13
manner so as to provide for activities in all States
14
under such a contract by not later than January 1,
15
2010.
16
‘‘(4) AUDIT
AND RECOVERY PERIODS.—Each
17
such contract shall provide that audit and recovery
18
activities may be conducted during a fiscal year with
19
respect to payments made under part A or B—
20
‘‘(A) during such fiscal year; and
21
‘‘(B) retrospectively (for a period of not
22
more than 4 fiscal years prior to such fiscal
23
year).
24
‘‘(5) WAIVER.—The Secretary shall waive such
25
provisions of this title as may be necessary to pro-
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165
1
vide for payment of recovery audit contractors under
2
this subsection in accordance with paragraph (1).
3
‘‘(6) QUALIFICATIONS
4
‘‘(A) IN
GENERAL.—The
Secretary may
5
not enter into a contract under paragraph (1)
6
with a recovery audit contractor unless the con-
7
tractor has staff that has the appropriate clin-
8
ical knowledge of, and experience with, the pay-
9
ment rules and regulations under this title or
10
the contractor has, or will contract with, an-
11
other entity that has such knowledgeable and
12
experienced staff.
13
‘‘(B) INELIGIBILITY
OF
CERTAIN
CON-
14
TRACTORS.—The
15
a contract under paragraph (1) with a recovery
16
audit contractor to the extent the contractor is
17
a fiscal intermediary under section 1816, a car-
18
rier under section 1842, or a medicare adminis-
19
trative contractor under section 1874A.
20
Secretary may not enter into
‘‘(C) PREFERENCE
FOR ENTITIES WITH
21
DEMONSTRATED
22
contracts to recovery audit contractors under
23
paragraph (1), the Secretary shall give pref-
24
erence to those risk entities that the Secretary
25
determines have demonstrated more than 3
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1
years direct management experience and a pro-
2
ficiency for cost control or recovery audits with
3
private insurers, health care providers, health
4
plans, under the Medicaid program under title
5
XIX, or under this title.
6
‘‘(7) CONSTRUCTION
RELATING TO CONDUCT
7
OF INVESTIGATION OF FRAUD.—A
8
overpayment to a individual or entity by a recovery
9
audit contractor under this subsection shall not be
10
construed to prohibit the Secretary or the Attorney
11
General from investigating and prosecuting, if ap-
12
propriate, allegations of fraud or abuse arising from
13
such overpayment.
14
‘‘(8) ANNUAL
REPORT.—The
recovery of an
Secretary shall
15
annually submit to Congress a report on the use of
16
recovery audit contractors under this subsection.
17
Each such report shall include information on the
18
performance of such contractors in identifying un-
19
derpayments and overpayments and recouping over-
20
payments, including an evaluation of the compara-
21
tive performance of such contractors and savings to
22
the program under this title.’’.
23
(b) ACCESS
24
TRACTOR
TO
COORDINATION
OF
BENEFITS CON-
DATABASE.—The Secretary of Health and
25 Human Services shall provide for access by recovery audit
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1 contractors conducting audit and recovery activities under
2 section 1893(h) of the Social Security Act, as added by
3 subsection (a), to the database of the Coordination of Ben4 efits Contractor of the Centers for Medicare & Medicaid
5 Services with respect to the audit and recovery periods de6 scribed in paragraph (4) of such section 1893(h).
7
8
(c) CONFORMING AMENDMENTS
TO
CURRENT DEM-
PROJECT.—Section 306 of the Medicare
ONSTRATION
9 Prescription Drug, Improvement, and Modernization Act
10 of 2003 (Public Law 108–173; 117 Stat. 2256) is amend11 ed—
12
(1) in subsection (b)(2), by striking ‘‘last for
13
not longer than 3 years’’ and inserting ‘‘continue
14
until contracts are entered into under section
15
1893(h) of the Social Security Act’’; and
16
17
(2) by striking subsection (f).
SEC. 303. FUNDING FOR THE HEALTH CARE FRAUD AND
18
ABUSE CONTROL ACCOUNT.
19
20
(a) DEPARTMENTS
ICES AND
21
HEALTH
GENERAL.—Section
22
the
23
1395i(k)(3)(A)(i)) is amended—
21:12 Dec 07, 2006
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HUMAN SERV-
JUSTICE.—
(1) IN
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1817(k)(3)(A)(i) of
Act
(42
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1
(A) in the matter preceding subclause (I),
2
by inserting ‘‘until expended’’ after ‘‘without
3
further appropriation’’;
4
(B) in subclause (II), by striking ‘‘and’’ at
5
the end;
6
(C) in subclause (III)—
7
(i) by striking ‘‘for each fiscal year
8
after fiscal year 2003’’ and inserting ‘‘for
9
each of fiscal years 2004, 2005, and
10
2006’’; and
11
(ii) by striking the period at the end
12
and inserting a semicolon; and
13
(D) by adding at the end the following new
14
subclauses:
15
‘‘(IV) for each of fiscal years
16
2007, 2008, 2009, and 2010, the limit
17
under this clause for the preceding
18
fiscal year, increased by the percent-
19
age increase in the consumer price
20
index for all urban consumers (all
21
items; United States city average)
22
over the previous year; and
23
‘‘(V) for each fiscal year after fis-
24
cal year 2010, the limit under this
25
clause for fiscal year 2010.’’.
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1
(2) OFFICE
2
THE DEPARTMENT OF HEALTH AND HUMAN SERV-
3
ICES.—Section
4
U.S.C. 1395i(k)(3)(A)(ii)) is amended—
5
1817(k)(3)(A)(ii) of such Act (42
(A) in subclause (VI), by striking ‘‘and’’ at
6
the end;
7
(B) in subclause (VII)—
8
(i) by striking ‘‘for each fiscal year
9
after fiscal year 2002’’ and inserting ‘‘for
10
each of fiscal years 2003, 2004, 2005, and
11
2006’’; and
12
(ii) by striking the period at the end
13
and inserting a semicolon; and
14
(C) by adding at the end the following new
15
subclauses:
16
‘‘(VIII) for fiscal year 2007, not
17
less than $160,000,000, increased by
18
the percentage increase in the con-
19
sumer price index for all urban con-
20
sumers (all items; United States city
21
average) over the previous year;
22
‘‘(IX) for each of fiscal years
23
2008, 2009, and 2010, not less than
24
the amount required under this clause
25
for the preceding fiscal year, increased
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1
by the percentage increase in the con-
2
sumer price index for all urban con-
3
sumers (all items; United States city
4
average) over the previous year; and
5
‘‘(X) for each fiscal year after
6
fiscal year 2010, not less than the
7
amount required under this clause for
8
fiscal year 2010.’’.
9
(b) FEDERAL BUREAU
OF
INVESTIGATION.—Section
10 1817(k)(3)(B) of the Social Security Act (42 U.S.C.
11 1395i(k)(3)(B)) is amended—
12
(1) in the matter preceding clause (i), by insert-
13
ing ‘‘until expended’’ after ‘‘without further appro-
14
priation’’;
15
(2) in clause (vi), by striking ‘‘and’’ at the end;
16
(3) in clause (vii)—
17
(A) by striking ‘‘for each fiscal year after
18
fiscal year 2002’’ and inserting ‘‘for each of fis-
19
cal years 2003, 2004, 2005, and 2006’’; and
20
(B) by striking the period at the end and
21
inserting a semicolon; and
22
(4) by adding at the end the following new
23
clauses:
24
‘‘(viii) for each of fiscal years 2007,
25
2008, 2009, and 2010, the amount to be
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1
appropriated under this subparagraph for
2
the preceding fiscal year, increased by the
3
percentage increase in the consumer price
4
index for all urban consumers (all items;
5
United States city average) over the pre-
6
vious year; and
7
‘‘(ix) for each fiscal year after fiscal
8
year 2010, the amount to be appropriated
9
under this subparagraph for fiscal year
10
2010.’’.
11
SEC. 304. IMPLEMENTATION FUNDING.
12
For purposes of implementing the provisions of, and
13 amendments made by, this title and titles I and II of this
14 division, other than section 203, the Secretary of Health
15 and Human Services shall provide for the transfer, in ap16 propriate part from the Federal Hospital Insurance Trust
17 Fund established under section 1817 of the Social Secu18 rity Act (42 U.S.C. 1395i) and the Federal Supple19 mentary Medical Insurance Trust Fund established under
20 section 1841 of such Act (42 U.S.C. 1395t), of
21 $45,000,000 to the Centers for Medicare & Medicaid Serv22 ices Program Management Account for the period of fiscal
23 years 2007 and 2008.
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2
TITLE IV—MEDICAID AND
OTHER HEALTH PROVISIONS
3
SEC. 401. EXTENSION OF TRANSITIONAL MEDICAL ASSIST-
4
ANCE (TMA) AND ABSTINENCE EDUCATION
5
PROGRAM.
1
6
Activities authorized by sections 510 and 1925 of the
7 Social Security Act shall continue through June 30, 2007,
8 in the manner authorized for fiscal year 2006, notwith9 standing section 1902(e)(1)(A) of such Act, and out of
10 any money in the Treasury of the United States not other11 wise appropriated, there are hereby appropriated such
12 sums as may be necessary for such purpose. Grants and
13 payments may be made pursuant to this authority through
14 the third quarter of fiscal year 2007 at the level provided
15 for such activities through the third quarter of fiscal year
16 2006.
17
SEC. 402. GRANTS FOR RESEARCH ON VACCINE AGAINST
18
VALLEY FEVER.
19
(a) IN GENERAL.—In supporting research on the de-
20 velopment of vaccines against human diseases, the Sec21 retary of Health and Human Services shall make grants
22 for the purpose of conducting research toward the develop23 ment of a vaccine against coccidioidomycosis (commonly
24 known as Valley Fever).
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1
(b) SUNSET.—No grant may be made under sub-
2 section (a) on or after October 1, 2012. The preceding
3 sentence does not have any legal effect on payments under
4 grants for which amounts appropriated under subsection
5 (c) were obligated prior to such date.
6
(c) AUTHORIZATION
OF
APPROPRIATIONS.—For the
7 purpose of making grants under subsection (a), there are
8 authorized to be appropriated $40,000,000 for the period
9 of fiscal years 2007 through 2012.
10
SEC. 403. CHANGE IN THRESHOLD FOR MEDICAID INDI-
11
RECT
12
BROAD-BASED HEALTH CARE TAXES.
13
Section 1903(w)(4)(C) of the Social Security Act (42
HOLD
HARMLESS
PROVISION
OF
14 U.S.C. 1396b(w)(4)(C)) is amended—
15
(1) by inserting ‘‘(i)’’ after ‘‘(C)’’; and
16
(2) by adding at the end the following:
17
‘‘(ii) For purposes of clause (i), a determination
18
of the existence of an indirect guarantee shall be
19
made under paragraph (3)(i) of section 433.68(f) of
20
title 42, Code of Federal Regulations, as in effect on
21
November 1, 2006, except that for portions of fiscal
22
years beginning on or after January 1, 2008, and
23
before October 1, 2011, ‘5.5 percent’ shall be sub-
24
stituted for ‘6 percent’ each place it appears.’’.
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H.L.C.
174
1
SEC. 404. DSH ALLOTMENTS FOR FISCAL YEAR 2007 FOR
2
TENNESSEE AND HAWAII.
3
Section 1923(f)(6) of the Social Security Act (42
4 U.S.C. 1396r–4(f)(6)) is amended to read as follows:
5
‘‘(6) ALLOTMENT
6
YEAR 2007.—
7
‘‘(A) TENNESSEE.—
8
‘‘(i) IN
GENERAL.—Only
with respect
9
to fiscal year 2007, the DSH allotment for
10
Tennessee for such fiscal year, notwith-
11
standing the table set forth in paragraph
12
(2) or the terms of the TennCare Dem-
13
onstration Project in effect for the State,
14
shall be the greater of—
15
‘‘(I) the amount that the Sec-
16
retary determines is equal to the Fed-
17
eral medical assistance percentage
18
component attributable to dispropor-
19
tionate share hospital payment adjust-
20
ments for the demonstration year end-
21
ing in 2006 that is reflected in the
22
budget neutrality provision of the
23
TennCare Demonstration Project; and
24
‘‘(II) $280,000,000.
25
‘‘(ii) LIMITATION
26
21:12 Dec 07, 2006
ON AMOUNT OF PAY-
MENT ADJUSTMENTS ELIGIBLE FOR FED-
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175
1
ERAL
2
ment under section 1903(a) shall not be
3
made to Tennessee with respect to the ag-
4
gregate amount of any payment adjust-
5
ments made under this section for hos-
6
pitals in the State for fiscal year 2007 that
7
is in excess of 30 percent of the DSH al-
8
lotment for the State for such fiscal year
9
determined pursuant to clause (i).
10
‘‘(iii) STATE
PARTICIPATION.—Pay-
PLAN
AMENDMENT.—
11
The Secretary shall permit Tennessee to
12
submit an amendment to its State plan
13
under this title that describes the method-
14
ology to be used by the State to identify
15
and make payments to disproportionate
16
share hospitals, including children’s hos-
17
pitals and institutions for mental diseases
18
or other mental health facilities. The Sec-
19
retary may not approve such plan amend-
20
ment unless the methodology described in
21
the amendment is consistent with the re-
22
quirements under this section for making
23
payment adjustments to disproportionate
24
share hospitals. For purposes of dem-
25
onstrating budget neutrality under the
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H.L.C.
176
1
TennCare Demonstration Project, payment
2
adjustments made pursuant to a State
3
plan amendment approved in accordance
4
with this subparagraph shall be considered
5
expenditures under such project.
6
‘‘(iv) OFFSET
7
PAYMENT ADJUSTMENTS FOR FISCAL YEAR
8
2007
9
PITAL
AGAINST
ESSENTIAL
SUPPLEMENTAL
ACCESS
POOL
HOS-
PAYMENTS
10
UNDER THE TENNCARE DEMONSTRATION
11
PROJECT.—
12
‘‘(I) The total amount of Essen-
13
tial Access Hospital supplemental pool
14
payments that may be made under
15
the TennCare Demonstration Project
16
for fiscal year 2007 shall be reduced
17
on a dollar for dollar basis by the
18
amount of any payments made under
19
section 1903(a) to Tennessee with re-
20
spect to payment adjustments made
21
under this section for hospitals in the
22
State for such fiscal year.
23
‘‘(II) The sum of the total
24
amount of payments made under sec-
25
tion 1903(a) to Tennessee with re-
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H.L.C.
177
1
spect to payment adjustments made
2
under this section for hospitals in the
3
State for fiscal year 2007 and the
4
total amount of Essential Access Hos-
5
pital
6
made under the TennCare Dem-
7
onstration Project for such fiscal year
8
shall not exceed the State’s DSH al-
9
lotment for such fiscal year estab-
10
pool
payments
lished under clause (i).
11
‘‘(B) HAWAII.—
12
‘‘(i) IN
GENERAL.—Only
with respect
13
to fiscal year 2007, the DSH allotment for
14
Hawaii for such fiscal year, notwith-
15
standing the table set forth in paragraph
16
(2), shall be $10,000,000.
17
‘‘(ii) STATE
PLAN AMENDMENT.—The
18
Secretary shall permit Hawaii to submit an
19
amendment to its State plan under this
20
title that describes the methodology to be
21
used by the State to identify and make
22
payments to disproportionate share hos-
23
pitals, including children’s hospitals and
24
institutions for mental diseases or other
25
mental health facilities. The Secretary may
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21:12 Dec 07, 2006
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H.L.C.
178
1
not approve such plan amendment unless
2
the methodology described in the amend-
3
ment is consistent with the requirements
4
under this section for making payment ad-
5
justments to disproportionate share hos-
6
pitals.’’.
7
SEC. 405. CERTAIN MEDICAID DRA TECHNICAL CORREC-
8
TIONS.
9
(a) TECHNICAL CORRECTIONS RELATING
10 OPTION
11
ING
FOR
ALTERNATIVE PREMIUMS
STATE
COST SHAR-
(SECTIONS 6041 THROUGH 6043).—
12
(1) CLARIFICATION
OF CONTINUED APPLICA-
13
TION OF REGULAR COST SHARING RULES FOR INDI-
14
VIDUALS WITH FAMILY INCOME NOT EXCEEDING 100
15
PERCENT OF THE POVERTY LINE.—Section
16
of the Social Security Act, as inserted by section
17
6041(a) of the Deficit Reduction Act of 2005 and
18
amended by sections 6042 and 6043 of such Act, is
19
amended—
20
1916A
(A) in subsection (a)(1)—
21
(i) by inserting ‘‘but subject to para-
22
graph (2),’’ after ‘‘1902(a)(10)(B),’’; and
23
(ii) by inserting ‘‘and non-emergency
24
services furnished in a hospital emergency
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TO
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H.L.C.
179
1
department for which cost sharing may be
2
imposed under subsection (e)’’ after ‘‘(c)’’;
3
(B) by redesignating paragraph (2) of sub-
4
section (a) as paragraph (3);
5
(C) in subsection (a), by inserting after
6
paragraph (1) the following:
7
‘‘(2) EXEMPTION
8
ILY INCOME NOT EXCEEDING 100 PERCENT OF THE
9
POVERTY LINE.—
10
‘‘(A) IN
GENERAL.—Paragraph
(1) and
11
subsection (d) shall not apply, and sections
12
1916 and 1902(a)(10)(B) shall continue to
13
apply, in the case of an individual whose family
14
income does not exceed 100 percent of the pov-
15
erty line applicable to a family of the size in-
16
volved.
17
‘‘(B) LIMIT
ON AGGREGATE COST SHAR-
18
ING.—To
19
section (c) and (e) or under section 1916 is im-
20
posed against individuals described in subpara-
21
graph (A), the limitation under subsection
22
(b)(1)(B)(ii) on the total aggregate amount of
23
cost sharing shall apply to such cost sharing for
24
all individuals in a family described in subpara-
25
graph (A) in the same manner as such limita-
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H.L.C.
180
1
tions apply to cost sharing and families de-
2
scribed in subsection (b)(1)(B)(ii).’’;
3
(D) in subsections (c)(2)(C) and (e)(2)(C),
4
by inserting ‘‘under subsection (a)(2)(B) or’’
5
after ‘‘cap on cost sharing applied’’; and
6
(E) in subsection (e)(2)(A), by inserting
7
‘‘who is not described in subparagraph (B)’’
8
after ‘‘subsection (b)(1)’’.
9
(2) CLARIFICATION
10
PREFERRED
11
SHARING.—Such
AND
NON-EMERGENCY
COST-
section is further amended—
12
(A) in subsections (b)(1) and (b)(2), by
13
striking ‘‘, subject to subsections (c)(2) and
14
(e)(2)(A)’’;
15
(B) in subsection (c)(1), in the matter pre-
16
ceding subparagraph (A), by striking ‘‘least (or
17
less) costly effective’’ and inserting ‘‘most (or
18
more) cost effective’’;
19
(C) in subsection (c)(1)(B), by striking
20
‘‘otherwise be imposed under’’ and inserting
21
‘‘be imposed under subsection (a) due to the
22
application of’’;
23
(D) in subsection (c)(2)(B), by striking
24
‘‘otherwise not subject to cost sharing due to
25
the application of subsection (b)(3)(B)’’ and in-
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H.L.C.
181
1
serting ‘‘not subject to cost sharing under sub-
2
section (a) due to the application of paragraph
3
(1)(B)’’;
4
(E) in subsection (e)(2)(A)—
5
(i) by amending the heading to read
6
as follows: ‘‘INDIVIDUALS
7
COME BETWEEN 100 AND 150 PERCENT OF
8
THE POVERTY LINE.—’’;
and
9
(ii) by striking ‘‘under subsection
10
(b)(1)’’ and inserting ‘‘under subsection
11
(b)(1)(B)(ii)’’;
12
(F) in subsection (e)(2)(B), by striking
13
‘‘who is otherwise not subject to cost sharing
14
under subsection (b)(3)’’ and inserting ‘‘de-
15
scribed in subsection (a)(2)(A) or who is not
16
subject
17
(b)(3)(B) with respect to non-emergency serv-
18
ices described in paragraph (1)’’ and
19
to
cost
sharing
under
subsection
(G) in subsection (e)(2)(C), by inserting
20
‘‘or section 1916’’ after ‘‘subsection (a)’’.
21
(3) CLARIFICATION
OF COST SHARING RULES
22
APPLICABLE
23
MEDICAL ASSISTANCE UNDER THE ELIGIBILITY CAT-
24
EGORY
25
ACT.—Such
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TO
ADDED
DISABLED
BY
THE
CHILDREN
FAMILY
PROVIDED
OPPORTUNITY
section is further amended—
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182
1
(A) in subsection (a)(1), in the second sen-
2
tence, by striking ‘‘section 1916(g)’’ and insert-
3
ing ‘‘subsection (g) or (i) of section 1916’’; and
4
(B) in subsection (b)(3)—
5
(i) in subparagraph (A), by adding at
6
the end the following:
7
‘‘(vi) Disabled children who are receiv-
8
ing medical assistance by virtue of the ap-
9
plication
sections
10
1902(a)(10)(A)(ii)(XIX) and 1902(cc).’’;
11
and
12
(ii) in subparagraph (B), by adding at
13
the end the following:
14
‘‘(ix) Services furnished to disabled
15
children who are receiving medical assist-
16
ance by virtue of the application of sec-
17
tions
18
1902(cc).’’.
19
1902(a)(10)(A)(ii)(XIX)
(4) CORRECTION
20
and
OF IV–B REFERENCES.—Such
section is further amended in subsection (b)(3)—
21
(A) in subparagraph (A)(i), by striking
22
‘‘aid or assistance is made available under part
23
B of title IV to children in foster care’’ and in-
24
serting ‘‘child welfare services are made avail-
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December 7, 2006 (9:12 p.m.)
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H.L.C.
183
1
able under part B of title IV on the basis of
2
being a child in foster care’’; and
3
(B) in subparagraph (B)(i), by striking
4
‘‘aid or assistance is made available under part
5
B of title IV to children in foster care’’ and in-
6
serting ‘‘child welfare services are made avail-
7
able under part B of title IV on the basis of
8
being a child in foster care or’’.
9
(5)
SERVICES.—Section
10
1916A(e)(4)(A) of the Social Security Act, as added
11
by section 6043(a) of the Deficit Reduction Act of
12
2005, is amended by striking ‘‘the physician deter-
13
mines’’.
14
(6) EFFECTIVE
DATE.—The
amendments made
15
by this subsection shall take effect as if included in
16
the amendments made by sections 6041(a) of the
17
Deficit Reduction Act of 2005, except that insofar
18
as such amendments are to, or relate to, subsection
19
(c) or (e) of section 1916A of the Social Security
20
Act, such amendments shall take effect as if in-
21
cluded in the amendments made by section 6042 or
22
6043, respectively, of the Deficit Reduction Act of
23
2005.
24
(b) CLARIFYING TREATMENT
25
ITIES
21:12 Dec 07, 2006
OF
CERTAIN ANNU-
(SECTION 6012).—
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H.L.C.
184
1
(1) IN
1917(c)(1)(F)(i) of
2
the
3
1396p(c)(1)(F)(i)), as added by section 6012(b) of
4
the Deficit Reduction Act of 2005, is amended by
5
striking ‘‘annuitant’’ and inserting ‘‘institutionalized
6
individual’’.
7
Social
Security
(2) EFFECTIVE
Act
DATE.—The
(42
U.S.C.
amendment made
8
by paragraph (1) shall be effective as if included in
9
the enactment of section 6012 of the Deficit Reduc-
10
tion Act of 2005.
11
(c) ADDITIONAL MISCELLANEOUS TECHNICAL COR-
12
RECTIONS.—
13
(1) DOCUMENTATION
14
(A) IN
(SECTION
6036).—
GENERAL.—Effective
as if included
15
in the amendment made by section 6036(a)(2)
16
of the Deficit Reduction Act of 2005, section
17
1903(x) of the Social Security Act (42 U.S.C.
18
1396b(x)),
19
6036(a)(2), is amended—
20
as
inserted
by
such
section
(i) in paragraph (1), by striking
21
‘‘(i)(23)’’ and inserting ‘‘(i)(22)’’;
22
(ii) in paragraph (2)—
23
(I) in the matter preceding sub-
24
paragraph (A), by striking ‘‘alien’’
25
and inserting ‘‘individual declaring to
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185
1
be a citizen or national of the United
2
States’’;
3
(II) by striking subparagraph (B)
4
and inserting the following:
5
‘‘(B) and is receiving—
6
‘‘(i)
disability
benefits
7
under section 223 or monthly insurance
8
benefits under section 202 based on such
9
individual’s disability (as defined in section
10
223(d)); or
11
‘‘(ii) supplemental security income
12
benefits under title XVI;’’;
13
(III) in subparagraph (C)—
14
(aa) by striking ‘‘other’’;
15
and
16
(bb) by striking ‘‘had’’ and
17
inserting ‘‘has’’;
18
(IV) by redesignating subpara-
19
graph (C) as subparagraph (D); and
20
(V) by inserting after subpara-
21
graph (B) the following new subpara-
22
graph:
23
‘‘(C) and with respect to whom—
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December 7, 2006 (9:12 p.m.)
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21:12 Dec 07, 2006
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H.L.C.
186
1
‘‘(i) child welfare services are made
2
available under part B of title IV on the
3
basis of being a child in foster care; or
4
‘‘(ii) adoption or foster care assistance
5
is made available under part E of title IV;
6
or’’; and
7
(iii) in paragraph (3)(C)(iii), by strik-
8
ing ‘‘I–97’’ and inserting ‘‘I–197’’.
9
(B) ASSURANCE
10
AGENCY
11
LEGAL STATUS.—
12
VERIFICATION
(i) STATE
OF
CITIZENSHIP
OR
PLAN AMENDMENT.—Sec-
13
tion 471(a) of the Social Security Act (42
14
U.S.C. 671(a)) is amended—
15
(I) in paragraph (25), by striking
16
‘‘and’’ at the end;
17
(II) in paragraph (26)(C), by
18
striking the period at the end and in-
19
serting ‘‘; and’’; and
20
(III) by adding at the end the
21
following:
22
‘‘(27) provides that, with respect to any child in
23
foster care under the responsibility of the State
24
under this part or part B and without regard to
25
whether foster care maintenance payments are made
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December 7, 2006 (9:12 p.m.)
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H.L.C.
187
1
under section 472 on behalf of the child, the State
2
has in effect procedures for verifying the citizenship
3
or immigration status of the child.’’.
4
(ii) INCLUSION
5
AND FAMILY SERVICES PROGRAMS.—Sec-
6
tion 1123A(b)(2) of the Social Security
7
Act (42 U.S.C. 1320a-2a(b)(2)) is amend-
8
ed by inserting ‘‘(which shall include deter-
9
mining whether the State program is in
10
conformity with the requirement of section
11
471(a)(27))’’ after ‘‘review’’.
12
(iii) EFFECTIVE
DATE.—The
amend-
13
ments made by this subparagraph shall
14
take effect on the date that is 6 months
15
after the date of the enactment of this Act.
16
(2)
17
MISCELLANEOUS
TECHNICAL
CORREC-
TIONS.—
18
(A) Effective as if included in the enact-
19
ment of the Deficit Reduction Act of 2005
20
(Public Law 109–171), the following sections of
21
such Act are amended as follows:
22
(i) Section 5114(a)(2) is amended by
23
striking ‘‘section 1842(b)(6)(F) of such
24
Act (42 U.S.C. 1395u(b)(6)(F))’’ and in-
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December 7, 2006 (9:12 p.m.)
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H.L.C.
188
1
serting ‘‘section 1842(b)(6) of such Act
2
(42 U.S.C. 1395u(b)(6))’’.
3
(ii) Section 6003(b)(2) is amended, by
4
striking ‘‘subsection (k)’’ and inserting
5
‘‘subsection (k)(1)’’.
6
(iii) Sections 6031(b), 6032(b), and
7
6035(c) are each amended by striking
8
‘‘section 6035(e)’’ and inserting ‘‘section
9
6034(e)’’.
10
(iv) Section 6034(b) is amended by
11
striking ‘‘section 6033(a)’’ and inserting
12
‘‘section 6032(a)’’.
13
(v) Section 6036 is amended—
14
(I) in subsection (b), by striking
15
‘‘section 1903(z)’’ and inserting ‘‘sec-
16
tion 1903(x)’’; and
17
(II) in subsection (c), by striking
18
‘‘(i)(23)’’ and inserting ‘‘(i)(22)’’.
19
(B) Effective as if included in the amend-
20
ment made by section 6015(a)(1) of the Deficit
21
Reduction
22
1919(c)(5)(A)(i)(II) of the Social Security Act
23
(42 U.S.C. 1396r(c)(5)(A)(i)(II)) is amended
24
by striking ‘‘clause (v)’’ and inserting ‘‘subpara-
25
graph (B)(v)’’.
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189
DIVISION C—OTHER
PROVISIONS
TITLE I—GULF OF MEXICO
ENERGY SECURITY
1
2
3
4
5
SEC. 101. SHORT TITLE.
6
This title may be cited as the ‘‘Gulf of Mexico Energy
7 Security Act of 2006’’.
8
SEC. 102. DEFINITIONS.
9
In this title:
10
(1) 181
term ‘‘181 Area’’ means
11
the area identified in map 15, page 58, of the Pro-
12
posed Final Outer Continental Shelf Oil and Gas
13
Leasing Program for 1997–2002, dated August
14
1996, of the Minerals Management Service, available
15
in the Office of the Director of the Minerals Man-
16
agement Service, excluding the area offered in OCS
17
Lease Sale 181, held on December 5, 2001.
18
(2) 181
19
SOUTH AREA.—The
term ‘‘181 South
Area’’ means any area—
20
(A) located—
21
(i) south of the 181 Area;
22
(ii) west of the Military Mission Line;
23
and
24
(iii) in the Central Planning Area;
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H.L.C.
190
1
(B) excluded from the Proposed Final
2
Outer Continental Shelf Oil and Gas Leasing
3
Program for 1997–2002, dated August 1996, of
4
the Minerals Management Service; and
5
(C) included in the areas considered for oil
6
and gas leasing, as identified in map 8, page 37
7
of the document entitled ‘‘Draft Proposed Pro-
8
gram Outer Continental Shelf Oil and Gas
9
Leasing Program 2007–2012’’, dated February
10
2006.
11
(3) BONUS
term
12
‘‘bonus or royalty credit’’ means a legal instrument
13
or other written documentation, or an entry in an
14
account managed by the Secretary, that may be used
15
in lieu of any other monetary payment for—
16
(A) a bonus bid for a lease on the outer
17
Continental Shelf; or
18
(B) a royalty due on oil or gas production
19
from any lease located on the outer Continental
20
Shelf.
21
(4) CENTRAL
PLANNING
AREA.—The
term
22
‘‘Central Planning Area’’ means the Central Gulf of
23
Mexico Planning Area of the outer Continental
24
Shelf, as designated in the document entitled ‘‘Draft
25
Proposed Program Outer Continental Shelf Oil and
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H.L.C.
191
1
Gas Leasing Program 2007–2012’’, dated February
2
2006.
3
(5) EASTERN
AREA.—The
term
4
‘‘Eastern Planning Area’’ means the Eastern Gulf of
5
Mexico Planning Area of the outer Continental
6
Shelf, as designated in the document entitled ‘‘Draft
7
Proposed Program Outer Continental Shelf Oil and
8
Gas Leasing Program 2007–2012’’, dated February
9
2006.
10
(6) 2002–2007
11
PLANNING AREA.—The
term
‘‘2002–2007 planning area’’ means any area—
12
(A) located in—
13
(i) the Eastern Planning Area, as des-
14
ignated in the Proposed Final Outer Conti-
15
nental Shelf Oil and Gas Leasing Program
16
2002–2007, dated April 2002, of the Min-
17
erals Management Service;
18
(ii) the Central Planning Area, as des-
19
ignated in the Proposed Final Outer Conti-
20
nental Shelf Oil and Gas Leasing Program
21
2002–2007, dated April 2002, of the Min-
22
erals Management Service; or
23
(iii) the Western Planning Area, as
24
designated in the Proposed Final Outer
25
Continental Shelf Oil and Gas Leasing
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192
1
Program 2002–2007, dated April 2002, of
2
the Minerals Management Service; and
3
(B) not located in—
4
(i) an area in which no funds may be
5
expended to conduct offshore preleasing,
6
leasing, and related activities under sec-
7
tions 104 through 106 of the Department
8
of the Interior, Environment, and Related
9
Agencies Appropriations Act, 2006 (Public
10
Law 109–54; 119 Stat. 521) (as in effect
11
on August 2, 2005);
12
(ii) an area withdrawn from leasing
13
under the ‘‘Memorandum on Withdrawal
14
of Certain Areas of the United States
15
Outer Continental Shelf from Leasing Dis-
16
position’’, from 34 Weekly Comp. Pres.
17
Doc. 1111, dated June 12, 1998; or
18
(iii) the 181 Area or 181 South Area.
19
(7) GULF
term ‘‘Gulf
20
producing State’’ means each of the States of Ala-
21
bama, Louisiana, Mississippi, and Texas.
22
(8) MILITARY
MISSION LINE.—The
term ‘‘Mili-
23
tary Mission Line’’ means the north-south line at
24
86°41′ W. longitude.
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193
1
(9) QUALIFIED
2
REVENUES.—
3
(A) IN
4
GENERAL.—The
term ‘‘qualified
outer Continental Shelf revenues’’ means—
5
(i) in the case of each of fiscal years
6
2007 through 2016, all rentals, royalties,
7
bonus bids, and other sums due and pay-
8
able to the United States from leases en-
9
tered into on or after the date of enact-
10
ment of this Act for—
11
(I) areas in the 181 Area located
12
in the Eastern Planning Area; and
13
(II) the 181 South Area; and
14
(ii) in the case of fiscal year 2017 and
15
each fiscal year thereafter, all rentals, roy-
16
alties, bonus bids, and other sums due and
17
payable to the United States received on or
18
after October 1, 2016, from leases entered
19
into on or after the date of enactment of
20
this Act for—
21
(I) the 181 Area;
22
(II) the 181 South Area; and
23
(III) the 2002–2007 planning
24
area.
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H.L.C.
194
1
(B) EXCLUSIONS.—The term ‘‘qualified
2
outer Continental Shelf revenues’’ does not in-
3
clude—
4
(i) revenues from the forfeiture of a
5
bond or other surety securing obligations
6
other than royalties, civil penalties, or roy-
7
alties taken by the Secretary in-kind and
8
not sold; or
9
(ii) revenues generated from leases
10
subject to section 8(g) of the Outer Conti-
11
nental
12
1337(g)).
13
(10) COASTAL
Lands
Act
(43
U.S.C.
POLITICAL SUBDIVISION.—The
14
term ‘‘coastal political subdivision’’ means a political
15
subdivision of a Gulf producing State any part of
16
which political subdivision is—
17
(A) within the coastal zone (as defined in
18
section 304 of the Coastal Zone Management
19
Act of 1972 (16 U.S.C. 1453)) of the Gulf pro-
20
ducing State as of the date of enactment of this
21
Act; and
22
(B) not more than 200 nautical miles from
23
the geographic center of any leased tract.
24
(11)
25
21:12 Dec 07, 2006
SECRETARY.—The
term
‘‘Secretary’’
means the Secretary of the Interior.
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195
1
SEC. 103. OFFSHORE OIL AND GAS LEASING IN 181 AREA
2
AND 181 SOUTH AREA OF GULF OF MEXICO.
3
(a) 181 AREA LEASE SALE.—Except as provided in
4 section 104, the Secretary shall offer the 181 Area for
5 oil and gas leasing pursuant to the Outer Continental
6 Shelf Lands Act (43 U.S.C. 1331 et seq.) as soon as prac7 ticable, but not later than 1 year, after the date of enact8 ment of this Act.
9
(b) 181 SOUTH AREA LEASE SALE.—The Secretary
10 shall offer the 181 South Area for oil and gas leasing pur11 suant to the Outer Continental Shelf Lands Act (43
12 U.S.C. 1331 et seq.) as soon as practicable after the date
13 of enactment of this Act.
14
(c) LEASING PROGRAM.—The 181 Area and 181
15 South Area shall be offered for lease under this section
16 notwithstanding the omission of the 181 Area or the 181
17 South Area from any outer Continental Shelf leasing pro18 gram under section 18 of the Outer Continental Shelf
19 Lands Act (43 U.S.C. 1344).
20
(d) CONFORMING AMENDMENT.—Section 105 of the
21 Department of the Interior, Environment, and Related
22 Agencies Appropriations Act, 2006 (Public Law 109–54;
23 119 Stat. 522) is amended by inserting ‘‘(other than the
24 181 South Area (as defined in section 102 of the Gulf
25 of Mexico Energy Security Act of 2006))’’ after ‘‘lands
26 located outside Sale 181’’.
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H.L.C.
196
1
SEC. 104. MORATORIUM ON OIL AND GAS LEASING IN CER-
2
TAIN AREAS OF GULF OF MEXICO.
3
(a) IN GENERAL.—Effective during the period begin-
4 ning on the date of enactment of this Act and ending on
5 June 30, 2022, the Secretary shall not offer for leasing,
6 preleasing, or any related activity—
7
(1) any area east of the Military Mission Line
8
in the Gulf of Mexico;
9
(2) any area in the Eastern Planning Area that
10
is within 125 miles of the coastline of the State of
11
Florida; or
12
(3) any area in the Central Planning Area that
13
is—
14
(A) within—
15
(i) the 181 Area; and
16
(ii) 100 miles of the coastline of the
17
State of Florida; or
18
(B)(i) outside the 181 Area;
19
(ii) east of the western edge of the Pensa-
20
cola Official Protraction Diagram (UTM X co-
21
ordinate 1,393,920 (NAD 27 feet)); and
22
(iii) within 100 miles of the coastline of
23
the State of Florida.
24
(b) MILITARY MISSION LINE.—Notwithstanding sub-
25 section (a), the United States reserves the right to des26 ignate by and through the Secretary of Defense, with the
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H.L.C.
197
1 approval of the President, national defense areas on the
2 outer Continental Shelf pursuant to section 12(d) of the
3 Outer Continental Shelf Lands Act (43 U.S.C. 1341(d)).
4
(c) EXCHANGE OF CERTAIN LEASES.—
5
(1) IN
Secretary shall permit
6
any person that, as of the date of enactment of this
7
Act, has entered into an oil or gas lease with the
8
Secretary in any area described in paragraph (2) or
9
(3) of subsection (a) to exchange the lease for a
10
bonus or royalty credit that may only be used in the
11
Gulf of Mexico.
12
(2) VALUATION
OF
EXISTING
LEASE.—The
13
amount of the bonus or royalty credit for a lease to
14
be exchanged shall be equal to—
15
(A) the amount of the bonus bid; and
16
(B) any rental paid for the lease as of the
17
date the lessee notifies the Secretary of the de-
18
cision to exchange the lease.
19
(3) REVENUE
DISTRIBUTION.—No
bonus or
20
royalty credit may be used under this subsection in
21
lieu of any payment due under, or to acquire any in-
22
terest in, a lease subject to the revenue distribution
23
provisions of section 8(g) of the Outer Continental
24
Shelf Lands Act (43 U.S.C. 1337(g)).
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198
1
(4) REGULATIONS.—Not later than 1 year after
2
the date of enactment of this Act, the Secretary
3
shall promulgate regulations that shall provide a
4
process for—
5
(A) notification to the Secretary of a deci-
6
sion to exchange an eligible lease;
7
(B) issuance of bonus or royalty credits in
8
exchange for relinquishment of the existing
9
lease;
10
(C) transfer of the bonus or royalty credit
11
to any other person; and
12
(D) determining the proper allocation of
13
bonus or royalty credits to each lease interest
14
owner.
15
SEC. 105. DISPOSITION OF QUALIFIED OUTER CONTI-
16
NENTAL SHELF REVENUES FROM 181 AREA,
17
181 SOUTH AREA, AND 2002–2007 PLANNING
18
AREAS OF GULF OF MEXICO.
19
(a) IN GENERAL.—Notwithstanding section 9 of the
20 Outer Continental Shelf Lands Act (43 U.S.C. 1338) and
21 subject to the other provisions of this section, for each ap22 plicable fiscal year, the Secretary of the Treasury shall
23 deposit—
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H.L.C.
199
1
(1) 50 percent of qualified outer Continental
2
Shelf revenues in the general fund of the Treasury;
3
and
4
(2) 50 percent of qualified outer Continental
5
Shelf revenues in a special account in the Treasury
6
from which the Secretary shall disburse—
7
(A) 75 percent to Gulf producing States in
8
accordance with subsection (b); and
9
(B) 25 percent to provide financial assist-
10
ance to States in accordance with section 6 of
11
the Land and Water Conservation Fund Act of
12
1965 (16 U.S.C. 460l–8), which shall be consid-
13
ered income to the Land and Water Conserva-
14
tion Fund for purposes of section 2 of that Act
15
(16 U.S.C. 460l–5).
16
17
(b) ALLOCATION AMONG GULF PRODUCING STATES
AND
COASTAL POLITICAL SUBDIVISIONS.—
18
(1) ALLOCATION
19
GULF
PRODUCING
STATES FOR FISCAL YEARS 2007 THROUGH 2016.—
20
(A) IN
GENERAL.—Subject
to subpara-
21
graph (B), effective for each of fiscal years
22
2007 through 2016, the amount made available
23
under subsection (a)(2)(A) shall be allocated to
24
each Gulf producing State in amounts (based
25
on a formula established by the Secretary by
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H.L.C.
200
1
regulation) that are inversely proportional to
2
the respective distances between the point on
3
the coastline of each Gulf producing State that
4
is closest to the geographic center of the appli-
5
cable leased tract and the geographic center of
6
the leased tract.
7
(B) MINIMUM
amount
8
allocated to a Gulf producing State each fiscal
9
year under subparagraph (A) shall be at least
10
10 percent of the amounts available under sub-
11
section (a)(2)(A).
12
(2) ALLOCATION
13
AMONG
GULF
PRODUCING
STATES FOR FISCAL YEAR 2017 AND THEREAFTER.—
14
(A) IN
GENERAL.—Subject
to subpara-
15
graphs (B) and (C), effective for fiscal year
16
2017 and each fiscal year thereafter—
17
(i) the amount made available under
18
subsection (a)(2)(A) from any lease en-
19
tered into within the 181 Area or the 181
20
South Area shall be allocated to each Gulf
21
producing State in amounts (based on a
22
formula established by the Secretary by
23
regulation) that are inversely proportional
24
to the respective distances between the
25
point on the coastline of each Gulf pro-
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H.L.C.
201
1
ducing State that is closest to the geo-
2
graphic center of the applicable leased
3
tract and the geographic center of the
4
leased tract; and
5
(ii) the amount made available under
6
subsection (a)(2)(A) from any lease en-
7
tered into within the 2002–2007 planning
8
area shall be allocated to each Gulf pro-
9
ducing State in amounts that are inversely
10
proportional to the respective distances be-
11
tween the point on the coastline of each
12
Gulf producing State that is closest to the
13
geographic center of each historical lease
14
site and the geographic center of the his-
15
torical lease site, as determined by the Sec-
16
retary.
17
(B) MINIMUM
amount
18
allocated to a Gulf producing State each fiscal
19
year under subparagraph (A) shall be at least
20
10 percent of the amounts available under sub-
21
section (a)(2)(A).
22
(C) HISTORICAL
23
(i) IN
LEASE SITES.—
GENERAL.—Subject
to clause
24
(ii), for purposes of subparagraph (A)(ii),
25
the historical lease sites in the 2002–2007
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H.L.C.
202
1
planning area shall include all leases en-
2
tered into by the Secretary for an area in
3
the Gulf of Mexico during the period be-
4
ginning on October 1, 1982 (or an earlier
5
date if practicable, as determined by the
6
Secretary), and ending on December 31,
7
2015.
8
(ii) ADJUSTMENT.—Effective January
9
1, 2022, and every 5 years thereafter, the
10
ending date described in clause (i) shall be
11
extended for an additional 5 calendar
12
years.
13
(3) PAYMENTS
14
DIVISIONS.—
15
(A) IN
GENERAL.—The
Secretary shall pay
16
20 percent of the allocable share of each Gulf
17
producing State, as determined under para-
18
graphs (1) and (2), to the coastal political sub-
19
divisions of the Gulf producing State.
20
(B) ALLOCATION.—The amount paid by
21
the Secretary to coastal political subdivisions
22
shall be allocated to each coastal political sub-
23
division in accordance with subparagraphs (B),
24
(C), and (E) of section 31(b)(4) of the Outer
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H.L.C.
203
1
Continental
2
1356a(b)(4)).
3
Shelf
Lands
Act
(43
U.S.C.
(c) TIMING.—The amounts required to be deposited
4 under paragraph (2) of subsection (a) for the applicable
5 fiscal year shall be made available in accordance with that
6 paragraph during the fiscal year immediately following the
7 applicable fiscal year.
8
(d) AUTHORIZED USES.—
9
(1) IN
to paragraph (2),
10
each Gulf producing State and coastal political sub-
11
division shall use all amounts received under sub-
12
section (b) in accordance with all applicable Federal
13
and State laws, only for 1 or more of the following
14
purposes:
15
(A) Projects and activities for the purposes
16
of coastal protection, including conservation,
17
coastal restoration, hurricane protection, and
18
infrastructure directly affected by coastal wet-
19
land losses.
20
(B) Mitigation of damage to fish, wildlife,
21
or natural resources.
22
(C) Implementation of a federally-approved
23
marine, coastal, or comprehensive conservation
24
management plan.
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H.L.C.
204
1
(D) Mitigation of the impact of outer Con-
2
tinental Shelf activities through the funding of
3
onshore infrastructure projects.
4
(E) Planning assistance and the adminis-
5
trative costs of complying with this section.
6
(2) LIMITATION.—Not more than 3 percent of
7
amounts received by a Gulf producing State or
8
coastal political subdivision under subsection (b)
9
may be used for the purposes described in paragraph
10
(1)(E).
11
(e)
ADMINISTRATION.—Amounts
made
available
12 under subsection (a)(2) shall—
13
(1) be made available, without further appro-
14
priation, in accordance with this section;
15
(2) remain available until expended; and
16
(3) be in addition to any amounts appropriated
17
under—
18
(A) the Outer Continental Shelf Lands Act
19
(43 U.S.C. 1331 et seq.);
20
(B) the Land and Water Conservation
21
Fund Act of 1965 (16 U.S.C. 460l–4 et seq.);
22
or
23
(C) any other provision of law.
24
(f) LIMITATIONS
ON
AMOUNT
OF
DISTRIBUTED
25 QUALIFIED OUTER CONTINENTAL SHELF REVENUES.—
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205
1
(1) IN
to paragraph (2),
2
the total amount of qualified outer Continental Shelf
3
revenues made available under subsection (a)(2)
4
shall not exceed $500,000,000 for each of fiscal
5
years 2016 through 2055.
6
(2) EXPENDITURES.—For the purpose of para-
7
graph (1), for each of fiscal years 2016 through
8
2055, expenditures under subsection (a)(2) shall be
9
net of receipts from that fiscal year from any area
10
in the 181 Area in the Eastern Planning Area and
11
the 181 South Area.
12
(3) PRO
RATA REDUCTIONS.—If
paragraph (1)
13
limits the amount of qualified outer Continental
14
Shelf revenue that would be paid under subpara-
15
graphs (A) and (B) of subsection (a)(2)—
16
(A) the Secretary shall reduce the amount
17
of qualified outer Continental Shelf revenue
18
provided to each recipient on a pro rata basis;
19
and
20
(B) any remainder of the qualified outer
21
Continental Shelf revenues shall revert to the
22
general fund of the Treasury.
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206
3
TITLE
II—SURFACE
MINING
CONTROL AND RECLAMATION
ACT AMENDMENTS OF 2006
4
SEC. 200. SHORT TITLE.
1
2
5
This title may be cited as the ‘‘Surface Mining Con-
6 trol and Reclamation Act Amendments of 2006’’.
8
Subtitle A—Mining Control and
Reclamation
9
SEC. 201. ABANDONED MINE RECLAMATION FUND AND
7
10
PURPOSES.
11
(a) IN GENERAL.—Section 401 of the Surface Min-
12 ing Control and Reclamation Act of 1977 (30 U.S.C.
13 1231) is amended—
14
(1) in subsection (c)—
15
(A) by striking paragraphs (2) and (6);
16
and
17
(B) by redesignating paragraphs (3), (4),
18
and (5) and paragraphs (7) through (13) as
19
paragraphs (2) through (11), respectively;
20
(2) by striking subsection (d) and inserting the
21
following:
22
‘‘(d) AVAILABILITY
OF
MONEYS; NO FISCAL YEAR
23 LIMITATION.—
24
‘‘(1) IN
25
21:12 Dec 07, 2006
from the fund for
expenditures under subparagraphs (A) through (D)
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207
1
of section 402(g)(3) shall be available only when ap-
2
propriated for those subparagraphs.
3
‘‘(2) NO
4
tions described in paragraph (1) shall be made with-
5
out fiscal year limitation.
6
‘‘(3) OTHER
PURPOSES.—Moneys
from the
7
fund shall be available for all other purposes of this
8
title without prior appropriation as provided in sub-
9
section (f).’’;
10
(3) in subsection (e)—
11
(A) in the second sentence, by striking
12
‘‘the needs of such fund’’ and inserting ‘‘achiev-
13
ing the purposes of the transfers under section
14
402(h)’’; and
15
(B) in the third sentence, by inserting be-
16
fore the period the following: ‘‘for the purpose
17
of the transfers under section 402(h)’’; and
18
(4) by adding at the end the following:
19
20
‘‘(f) GENERAL LIMITATION
ON
OBLIGATION AU-
THORITY.—
21
‘‘(1) IN
GENERAL.—From
amounts deposited
22
into the fund under subsection (b), the Secretary
23
shall distribute during each fiscal year beginning
24
after September 30, 2007, an amount determined
25
under paragraph (2).
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208
1
‘‘(2) AMOUNTS.—
2
‘‘(A) FOR
3
2022.—For
4
2022, the amount distributed by the Secretary
5
under this subsection shall be equal to—
each of fiscal years 2008 through
6
‘‘(i) the amounts deposited into the
7
fund under paragraphs (1), (2), and (4) of
8
subsection (b) for the preceding fiscal year
9
that were allocated under paragraphs (1)
10
and (5) of section 402(g); plus
11
‘‘(ii) the amount needed for the ad-
12
justment under section 402(g)(8) for the
13
current fiscal year.
14
‘‘(B) FISCAL
YEARS
2023
AND
THERE-
15
AFTER.—For
16
year thereafter, to the extent that funds are
17
available, the Secretary shall distribute an
18
amount equal to the amount distributed under
19
subparagraph (A) during fiscal year 2022.
20
‘‘(3) DISTRIBUTION.—
21
‘‘(A) IN
fiscal year 2023 and each fiscal
GENERAL.—Except
as provided in
22
subparagraph (B), for each fiscal year, of the
23
amount to be distributed to States and Indian
24
tribes pursuant to paragraph (2), the Secretary
25
shall distribute—
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209
1
‘‘(i) the amounts allocated under
2
paragraph (1) of section 402(g), the
3
amounts allocated under paragraph (5) of
4
section 402(g), and any amount reallocated
5
under section 411(h)(3) in accordance with
6
section 411(h)(2), for grants to States and
7
Indian tribes under section 402(g)(5); and
8
‘‘(ii) the amounts allocated under sec-
9
tion 402(g)(8).
10
‘‘(B) EXCLUSION.—Beginning on October
11
1, 2007, certified States shall be ineligible to
12
receive amounts under section 402(g)(1).
13
‘‘(4) AVAILABILITY.—Amounts in the fund
14
available to the Secretary for obligation under this
15
subsection shall be available until expended.
16
‘‘(5) ADDITION.—
17
‘‘(A) IN
to subpara-
18
graph (B), the amount distributed under this
19
subsection for each fiscal year shall be in addi-
20
tion to the amount appropriated from the fund
21
during the fiscal year.
22
‘‘(B)
EXCEPTIONS.—Notwithstanding
23
paragraph (3), the amount distributed under
24
this subsection for the first 4 fiscal years begin-
25
ning on and after October 1, 2007, shall be
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210
1
equal to the following percentage of the amount
2
otherwise required to be distributed:
3
‘‘(i) 50 percent in fiscal year 2008.
4
‘‘(ii) 50 percent in fiscal year 2009.
5
‘‘(iii) 75 percent in fiscal year 2010.
6
‘‘(iv) 75 percent in fiscal year 2011.’’.
7
(b) CONFORMING AMENDMENT.—Section 712(b) of
8 the Surface Mining Control and Reclamation Act of 1977
9 (30 U.S.C. 1302(b)) is amended by striking ‘‘section
10 401(c)(11)’’ and inserting ‘‘section 401(c)(9)’’.
11
SEC. 202. RECLAMATION FEE.
12
(a) AMOUNTS.—
13
(1) FISCAL
Octo-
14
ber 1, 2007, section 402(a) of the Surface Mining
15
Control and Reclamation Act of 1977 (30 U.S.C.
16
1232(a)) is amended—
17
(A) by striking ‘‘35’’ and inserting ‘‘31.5’’;
18
(B) by striking ‘‘15’’ and inserting ‘‘13.5’’;
19
and
20
(C) by striking ‘‘10 cents’’ and inserting
21
‘‘9 cents’’.
22
(2) FISCAL
YEARS 2013–2021.—Effective
Octo-
23
ber 1, 2012, section 402(a) of the Surface Mining
24
Control and Reclamation Act of 1977 (30 U.S.C.
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H.L.C.
211
1
1232(a)) (as amended by paragraph (1)) is amend-
2
ed—
3
(A) by striking ‘‘31.5’’ and inserting ‘‘28’’;
4
(B) by striking ‘‘13.5’’ and inserting ‘‘12’’;
5
and
6
(C) by striking ‘‘9 cents’’ and inserting ‘‘8
7
cents’’.
8
(b) DURATION.—Effective September 30, 2007, sec-
9 tion 402(b) of the Surface Mining Control and Reclama10 tion Act of 1977 (30 U.S.C. 1232(b)) (as amended by sec11 tion 7007 of the Emergency Supplemental Appropriations
12 Act for Defense, the Global War on Terror, and Hurricane
13 Recovery, 2006 (Public Law 109–234; 120 Stat. 484)) is
14 amended by striking ‘‘September 30, 2007’’ and all that
15 follows through the end of the sentence and inserting
16 ‘‘September 30, 2021.’’.
17
(c) ALLOCATION
OF
FUNDS.—Section 402(g) of the
18 Surface Mining Control and Reclamation Act of 1977 (30
19 U.S.C. 1232(g)) is amended—
20
(1) in paragraph (1)(D)—
21
(A) by inserting ‘‘(except for grants award-
22
ed during fiscal years 2008, 2009, and 2010 to
23
the extent not expended within 5 years)’’ after
24
‘‘this paragraph’’; and
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H.L.C.
212
1
(B) by striking ‘‘in any area under para-
2
graph (2), (3), (4), or (5)’’ and inserting
3
‘‘under paragraph (5)’’;
4
(2) by striking paragraph (2) and inserting:
5
‘‘(2) In making the grants referred to in paragraph
6 (1)(C) and the grants referred to in paragraph (5), the
7 Secretary shall ensure strict compliance by the States and
8 Indian tribes with the priorities described in section
9 403(a) until a certification is made under section
10 411(a).’’;
11
(3) in paragraph (3)—
12
(A) in the matter preceding subparagraph
13
(A), by striking ‘‘paragraphs (2) and’’ and in-
14
serting ‘‘paragraph’’;
15
(B) in subparagraph (A), by striking
16
‘‘401(c)(11)’’ and inserting ‘‘401(c)(9)’’; and
17
(C) by adding at the end the following:
18
‘‘(E) For the purpose of paragraph (8).’’;
19
(4) in paragraph (5)—
20
(A) by inserting ‘‘(A)’’ after ‘‘(5)’’;
21
(B) in the first sentence, by striking ‘‘40’’
22
and inserting ‘‘60’’;
23
(C) in the last sentence, by striking
24
‘‘Funds allocated or expended by the Secretary
25
under paragraphs (2), (3), or (4)’’ and insert-
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H.L.C.
213
1
ing ‘‘Funds made available under paragraph (3)
2
or (4)’’; and
3
(D) by adding at the end the following:
4
‘‘(B) Any amount that is reallocated and available
5 under section 411(h)(3) shall be in addition to amounts
6 that are allocated under subparagraph (A).’’; and
7
(5) by striking paragraphs (6) through (8) and
8
inserting the following:
9
‘‘(6)(A) Any State with an approved abandoned mine
10 reclamation program pursuant to section 405 may receive
11 and retain, without regard to the 3-year limitation re12 ferred to in paragraph (1)(D), up to 30 percent of the
13 total of the grants made annually to the State under para14 graphs (1) and (5) if those amounts are deposited into
15 an acid mine drainage abatement and treatment fund es16 tablished under State law, from which amounts (together
17 with all interest earned on the amounts) are expended by
18 the State for the abatement of the causes and the treat19 ment of the effects of acid mine drainage in a comprehen20 sive manner within qualified hydrologic units affected by
21 coal mining practices.
22
‘‘(B) In this paragraph, the term ‘qualified hydrologic
23 unit’ means a hydrologic unit—
24
‘‘(i) in which the water quality has been signifi-
25
cantly affected by acid mine drainage from coal min-
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214
1
ing practices in a manner that adversely impacts bi-
2
ological resources; and
3
‘‘(ii) that contains land and water that are—
4
‘‘(I) eligible pursuant to section 404 and
5
include any of the priorities described in section
6
403(a); and
7
‘‘(II) the subject of expenditures by the
8
State from the forfeiture of bonds required
9
under section 509 or from other States sources
10
to abate and treat acid mine drainage.
11
‘‘(7) In complying with the priorities described in sec-
12 tion 403(a), any State or Indian tribe may use amounts
13 available in grants made annually to the State or tribe
14 under paragraphs (1) and (5) for the reclamation of eligi15 ble land and water described in section 403(a)(3) before
16 the completion of reclamation projects under paragraphs
17 (1) and (2) of section 403(a) only if the expenditure of
18 funds for the reclamation is done in conjunction with the
19 expenditure before, on, or after the date of enactment of
20 the Surface Mining Control and Reclamation Act Amend21 ments of 2006 of funds for reclamation projects under
22 paragraphs (1) and (2) of section 403(a).
23
‘‘(8)(A) In making funds available under this title,
24 the Secretary shall ensure that the grant awards total not
25 less than $3,000,000 annually to each State and each In-
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H.L.C.
215
1 dian tribe having an approved abandoned mine reclama2 tion program pursuant to section 405 and eligible land
3 and water pursuant to section 404, so long as an alloca4 tion of funds to the State or tribe is necessary to achieve
5 the priorities stated in paragraphs (1) and (2) of section
6 403(a).
7
‘‘(B) Notwithstanding any other provision of law, this
8 paragraph applies to the States of Tennessee and Mis9 souri.’’.
10
11
(d) TRANSFERS
DONED
OF
INTEREST EARNED
BY
ABAN-
MINE RECLAMATION FUND.—Section 402 of the
12 Surface Mining Control and Reclamation Act of 1977 (30
13 U.S.C. 1232) is amended by striking subsection (h) and
14 inserting the following:
15
‘‘(h) TRANSFERS OF INTEREST EARNED BY FUND.—
16
‘‘(1) IN
17
‘‘(A) TRANSFERS
TO COMBINED BENEFIT
18
FUND.—As
19
ning of fiscal year 2007 and each fiscal year
20
thereafter, and before making any allocation
21
with respect to the fiscal year under subsection
22
(g), the Secretary shall use an amount not to
23
exceed the amount of interest that the Sec-
24
retary estimates will be earned and paid to the
25
fund during the fiscal year to transfer to the
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21:12 Dec 07, 2006
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H.L.C.
216
1
Combined Benefit Fund such amounts as are
2
estimated by the trustees of such fund to offset
3
the amount of any deficit in net assets in the
4
Combined Benefit Fund as of October 1, 2006,
5
and to make the transfer described in para-
6
graph (2)(A).
7
‘‘(B)
TO
1992
AND
1993
8
PLANS.—As
9
ning of fiscal year 2008 and each fiscal year
10
thereafter, and before making any allocation
11
with respect to the fiscal year under subsection
12
(g), the Secretary shall use an amount not to
13
exceed the amount of interest that the Sec-
14
retary estimates will be earned and paid to the
15
fund during the fiscal year (reduced by the
16
amount used under subparagraph (A)) to make
17
the transfers described in paragraphs (2)(B)
18
and (2)(C).
19
‘‘(2) TRANSFERS
20
soon as practicable after the begin-
DESCRIBED.—The
transfers
referred to in paragraph (1) are the following:
21
‘‘(A) UNITED
MINE WORKERS OF AMERICA
22
COMBINED BENEFIT FUND.—A
23
United Mine Workers of America Combined
24
Benefit Fund equal to the amount that the
25
trustees of the Combined Benefit Fund esti-
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H.L.C.
217
1
mate will be expended from the fund for the fis-
2
cal year in which the transfer is made, reduced
3
by—
4
‘‘(i) the amount the trustees of the
5
Combined Benefit Fund estimate the Com-
6
bined Benefit Fund will receive during the
7
fiscal year in—
8
‘‘(I) required premiums; and
9
‘‘(II) payments paid by Federal
10
agencies in connection with benefits
11
provided by the Combined Benefit
12
Fund; and
13
‘‘(ii) the amount the trustees of the
14
Combined Benefit Fund estimate will be
15
expended during the fiscal year to provide
16
health benefits to beneficiaries who are un-
17
assigned beneficiaries solely as a result of
18
the application of section 9706(h)(1) of the
19
Internal Revenue Code of 1986, but only
20
to the extent that such amount does not
21
exceed the amounts described in subsection
22
(i)(1)(A) that the Secretary estimates will
23
be available to pay such estimated expendi-
24
tures.
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H.L.C.
218
1
‘‘(B) UNITED
2
1992 BENEFIT PLAN.—A
3
Mine Workers of America 1992 Benefit Plan, in
4
an amount equal to the difference between—
transfer to the United
5
‘‘(i) the amount that the trustees of
6
the 1992 UMWA Benefit Plan estimate
7
will be expended from the 1992 UMWA
8
Benefit Plan during the next calendar year
9
to provide the benefits required by the
10
1992 UMWA Benefit Plan on the date of
11
enactment of this subparagraph; minus
12
‘‘(ii) the amount that the trustees of
13
the 1992 UMWA Benefit Plan estimate
14
the 1992 UMWA Benefit Plan will receive
15
during the next calendar year in—
16
‘‘(I) required monthly per bene-
17
ficiary
18
amount of any security provided to
19
the 1992 UMWA Benefit Plan that is
20
available for use in the provision of
21
benefits; and
premiums,
including
the
22
‘‘(II) payments paid by Federal
23
agencies in connection with benefits
24
provided by the 1992 UMWA benefit
25
plan.
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219
1
‘‘(C) MULTIEMPLOYER
2
PLAN.—A
3
Benefit Plan established after July 20, 1992,
4
by the parties that are the settlors of the 1992
5
UMWA Benefit Plan referred to in subpara-
6
graph (B) (referred to in this subparagraph and
7
subparagraph (D) as ‘the Plan’), in an amount
8
equal to the excess (if any) of—
transfer to the Multiemployer Health
9
‘‘(i) the amount that the trustees of
10
the Plan estimate will be expended from
11
the Plan during the next calendar year, to
12
provide benefits no greater than those pro-
13
vided by the Plan as of December 31,
14
2006; over
15
‘‘(ii) the amount that the trustees es-
16
timated the Plan will receive during the
17
next calendar year in payments paid by
18
Federal agencies in connection with bene-
19
fits provided by the Plan.
20
Such excess shall be calculated by taking into
21
account only those beneficiaries actually en-
22
rolled in the Plan as of December 31, 2006,
23
who are eligible to receive benefits under the
24
Plan on the first day of the calendar year for
25
which the transfer is made.
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220
1
‘‘(D)
2
ROLLED.—For
3
any individual who was eligible to receive bene-
4
fits from the Plan as of the date of enactment
5
of this subsection, even though benefits were
6
being provided to the individual pursuant to a
7
settlement agreement approved by order of a
8
bankruptcy court entered on or before Sep-
9
tember 30, 2004, will be considered to be actu-
10
ally enrolled in the Plan and shall receive bene-
11
fits from the Plan beginning on December 31,
12
2006.
13
‘‘(3) ADJUSTMENT.—If, for any fiscal year, the
14
amount of a transfer under subparagraph (A), (B),
15
or (C) of paragraph (2) is more or less than the
16
amount required to be transferred under that sub-
17
paragraph, the Secretary shall appropriately adjust
18
the amount transferred under that subparagraph for
19
the next fiscal year.
20
CONSIDERED
EN-
purposes of subparagraph (C),
‘‘(4) ADDITIONAL
21
AMOUNTS.—
‘‘(A) PREVIOUSLY
CREDITED INTEREST.—
22
Notwithstanding any other provision of law, any
23
interest credited to the fund that has not pre-
24
viously been transferred to the Combined Ben-
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INDIVIDUALS
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221
1
efit Fund referred to in paragraph (2)(A) under
2
this section—
3
‘‘(i) shall be held in reserve by the
4
Secretary until such time as necessary to
5
make the payments under subparagraphs
6
(A) and (B) of subsection (i)(1), as de-
7
scribed in clause (ii); and
8
‘‘(ii) in the event that the amounts de-
9
scribed in subsection (i)(1) are insufficient
10
to make the maximum payments described
11
in subparagraphs (A) and (B) of sub-
12
section (i)(1), shall be used by the Sec-
13
retary to supplement the payments so that
14
the maximum amount permitted under
15
those paragraphs is paid.
16
‘‘(B)
17
AMOUNTS.—All
18
section (g)(2) before the date of enactment of
19
this subparagraph for the program described in
20
section 406, but not appropriated before that
21
date, shall be available to the Secretary to make
22
the transfers described in paragraph (2).
‘‘(C) ADEQUACY
24
ITED INTEREST.—The
21:12 Dec 07, 2006
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amounts allocated under sub-
23
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PREVIOUSLY
OF PREVIOUSLY CRED-
Secretary shall—
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222
1
‘‘(i) consult with the trustees of the
2
plans described in paragraph (2) at rea-
3
sonable intervals; and
4
‘‘(ii) notify Congress if a determina-
5
tion is made that the amounts held in re-
6
serve under subparagraph (A) are insuffi-
7
cient to meet future requirements under
8
subparagraph (A)(ii).
9
‘‘(D) ADDITIONAL
10
In addition to amounts held in reserve under
11
subparagraph (A), there is authorized to be ap-
12
propriated such sums as may be necessary for
13
transfer to the fund to carry out the purposes
14
of subparagraph (A)(ii).
15
‘‘(E) INAPPLICABILITY
OF CAP.—The
limi-
16
tation described in subsection (i)(3)(A) shall
17
not apply to payments made from the reserve
18
fund under this paragraph.
19
‘‘(5) LIMITATIONS.—
20
‘‘(A) AVAILABILITY
OF FUNDS FOR NEXT
21
FISCAL YEAR.—The
22
fers under subparagraphs (B) and (C) of para-
23
graph (2) for a calendar year only if the Sec-
24
retary determines, using actuarial projections
25
provided by the trustees of the Combined Ben-
f:\V9\120706\120706.200.xml
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RESERVE AMOUNTS.—
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H.L.C.
223
1
efit Fund referred to in paragraph (2)(A), that
2
amounts will be available under paragraph (1),
3
after the transfer, for the next fiscal year for
4
making the transfer under paragraph (2)(A).
5
‘‘(B) RATE
6
GORS.—
7
‘‘(i) IN
GENERAL.—
8
‘‘(I) RATE.—A transfer under
9
paragraph (2)(C) shall not be made
10
for a calendar year unless the persons
11
that are obligated to contribute to the
12
plan referred to in paragraph (2)(C)
13
on the date of the transfer are obli-
14
gated to make the contributions at
15
rates that are no less than those in ef-
16
fect on the date which is 30 days be-
17
fore the date of enactment of this sub-
18
section.
19
‘‘(II) APPLICATION.—The con-
20
tributions described in subclause (I)
21
shall be applied first to the provision
22
of benefits to those plan beneficiaries
23
who are not described in paragraph
24
(2)(C)(ii).
25
‘‘(ii) INITIAL
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224
1
‘‘(I) IN
the
2
date of enactment of the Surface Min-
3
ing Control and Reclamation Act
4
Amendments of 2006 through Decem-
5
ber 31, 2010, the persons that, on the
6
date of enactment of that Act, are ob-
7
ligated to contribute to the plan re-
8
ferred to in paragraph (2)(C) shall be
9
obligated, collectively, to make con-
10
tributions equal to the amount de-
11
scribed in paragraph (2)(C), less the
12
amount actually transferred due to
13
the operation of subparagraph (C).
14
‘‘(II) FIRST
CALENDAR YEAR.—
15
Calendar year 2006 is the first cal-
16
endar year for which contributions are
17
required under this clause.
18
‘‘(III) AMOUNT
OF
CONTRIBU-
19
TION FOR 2006.—Except
as provided
20
in subclause (IV), the amount de-
21
scribed in paragraph (2)(C) for cal-
22
endar year 2006 shall be calculated as
23
if paragraph (2)(C) had been in effect
24
during 2005.
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GENERAL.—From
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H.L.C.
225
1
‘‘(IV)
con-
2
tributions required under this clause
3
for calendar year 2006 shall not ex-
4
ceed the amount necessary for sol-
5
vency of the plan described in para-
6
graph (2)(C), measured as of Decem-
7
ber 31, 2006 and taking into account
8
all assets held by the plan as of that
9
date.
10
‘‘(iii) DIVISION.—The collective an-
11
nual contribution obligation required under
12
clause (ii) shall be divided among the per-
13
sons subject to the obligation, and applied
14
uniformly, based on the hours worked for
15
which contributions referred to in clause
16
(i) would be owed.
17
‘‘(C) PHASE-IN
OF TRANSFERS.—For
each
18
of calendar years 2008 through 2010, the
19
transfers required under subparagraphs (B)
20
and (C) of paragraph (2) shall equal the fol-
21
lowing amounts:
22
‘‘(i) For calendar year 2008, the Sec-
23
retary shall make transfers equal to 25
24
percent of the amounts that would other-
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LIMITATION.—The
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H.L.C.
226
1
wise be required under subparagraphs (B)
2
and (C) of paragraph (2).
3
‘‘(ii) For calendar year 2009, the Sec-
4
retary shall make transfers equal to 50
5
percent of the amounts that would other-
6
wise be required under subparagraphs (B)
7
and (C) of paragraph (2).
8
‘‘(iii) For calendar year 2010, the
9
Secretary shall make transfers equal to 75
10
percent of the amounts that would other-
11
wise be required under subparagraphs (B)
12
and (C) of paragraph (2).
13
‘‘(i) FUNDING.—
14
‘‘(1) IN
to paragraph (3),
15
out of any funds in the Treasury not otherwise ap-
16
propriated, the Secretary of the Treasury shall
17
transfer to the plans described in subsection (h)(2)
18
such sums as are necessary to pay the following
19
amounts:
20
‘‘(A) To the Combined Fund (as defined in
21
section 9701(a)(5) of the Internal Revenue
22
Code of 1986 and referred to in this paragraph
23
as the ‘Combined Fund’), the amount that the
24
trustees of the Combined Fund estimate will be
25
expended from premium accounts maintained
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December 7, 2006 (9:12 p.m.)
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GENERAL.—Subject
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H.L.C.
227
1
by the Combined Fund for the fiscal year to
2
provide benefits for beneficiaries who are unas-
3
signed beneficiaries solely as a result of the ap-
4
plication of section 9706(h)(1) of the Internal
5
Revenue Code of 1986, subject to the following
6
limitations:
7
‘‘(i) For fiscal year 2008, the amount
8
paid under this subparagraph shall equal—
9
‘‘(I) the amount described in sub-
10
paragraph (A); minus
11
‘‘(II) the amounts required under
12
section 9706(h)(3)(A) of the Internal
13
Revenue Code of 1986.
14
‘‘(ii) For fiscal year 2009, the amount
15
paid under this subparagraph shall equal—
16
‘‘(I) the amount described in sub-
17
paragraph (A); minus
18
‘‘(II) the amounts required under
19
section 9706(h)(3)(B) of the Internal
20
Revenue Code of 1986.
21
‘‘(iii) For fiscal year 2010, the
22
amount paid under this subparagraph shall
23
equal—
24
‘‘(I) the amount described in sub-
25
paragraph (A); minus
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H.L.C.
228
1
‘‘(II) the amounts required under
2
section 9706(h)(3)(C) of the Internal
3
Revenue Code of 1986.
4
‘‘(B) On certification by the trustees of
5
any plan described in subsection (h)(2) that the
6
amount available for transfer by the Secretary
7
pursuant to this section (determined after ap-
8
plication of any limitation under subsection
9
(h)(5)) is less than the amount required to be
10
transferred, to the plan the amount necessary
11
to meet the requirement of subsection (h)(2).
12
‘‘(C) To the Combined Fund, $9,000,000
13
on October 1, 2007, $9,000,000 on October 1,
14
2008, and $9,000,000 on October 1, 2009
15
(which amounts shall not be exceeded) to pro-
16
vide a refund of any premium (as described in
17
section 9704(a) of the Internal Revenue Code
18
of 1986) paid on or before September 7, 2000,
19
to the Combined Fund, plus interest on the pre-
20
mium calculated at the rate of 7.5 percent per
21
year, on a proportional basis and to be paid not
22
later than 60 days after the date on which each
23
payment is received by the Combined Fund, to
24
those signatory operators (to the extent that
25
the Combined Fund has not previously returned
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H.L.C.
229
1
the premium amounts to the operators), or any
2
related persons to the operators (as defined in
3
section 9701(c) of the Internal Revenue Code of
4
1986), or their heirs, successors, or assigns who
5
have been denied the refunds as the result of
6
final judgments or settlements if—
7
‘‘(i) prior to the date of enactment of
8
this paragraph, the signatory operator (or
9
any related person to the operator)—
10
‘‘(I) had all of its beneficiary as-
11
signments made under section 9706 of
12
the Internal Revenue Code of 1986
13
voided by the Commissioner of the So-
14
cial Security Administration; and
15
‘‘(II) was subject to a final judg-
16
ment or final settlement of litigation
17
adverse to a claim by the operator
18
that the assignment of beneficiaries
19
under section 9706 of the Internal
20
Revenue Code of 1986 was unconsti-
21
tutional as applied to the operator;
22
and
23
‘‘(ii) on or before September 7, 2000,
24
the signatory operator (or any related per-
25
son to the operator) had paid to the Com-
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H.L.C.
230
1
bined Fund any premium amount that had
2
not been refunded.
3
‘‘(2) PAYMENTS
STATES
AND
INDIAN
4
TRIBES.—Subject
5
in the Treasury not otherwise appropriated, the Sec-
6
retary of the Treasury shall transfer to the Sec-
7
retary of the Interior for distribution to States and
8
Indian tribes such sums as are necessary to pay
9
amounts described in paragraphs (1)(A) and (2)(A)
10
to paragraph (3), out of any funds
of section 411(h).
11
‘‘(3) LIMITATIONS.—
12
‘‘(A) CAP.—The total amount transferred
13
under this subsection for any fiscal year shall
14
not exceed $490,000,000.
15
‘‘(B) INSUFFICIENT
AMOUNTS.—In
a case
16
in which the amount required to be transferred
17
without regard to this paragraph exceeds the
18
maximum annual limitation in subparagraph
19
(A), the Secretary shall adjust the transfers of
20
funds so that—
21
‘‘(i) each transfer for the fiscal year is
22
a percentage of the amount described;
23
‘‘(ii) the amount is determined with-
24
out regard to subsection (h)(5)(A); and
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December 7, 2006 (9:12 p.m.)
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TO
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H.L.C.
231
1
‘‘(iii) the percentage transferred is the
2
same for all transfers made under this sub-
3
section for the fiscal year.
4
‘‘(4) AVAILABILITY
OF FUNDS.—Funds
shall be
5
transferred under paragraph (1) and (2) beginning
6
in fiscal year 2008 and each fiscal year thereafter,
7
and shall remain available until expended.’’.
8
SEC. 203. OBJECTIVES OF FUND.
9
Section 403 of the Surface Mining Control and Rec-
10 lamation Act of 1977 (30 U.S.C. 1233) is amended—
11
(1) in subsection (a)—
12
(A) in paragraph (1)—
13
(i) by striking ‘‘(1) the protection’’
14
and inserting the following:
15
‘‘(1)(A) the protection;’’;
16
(ii) in subparagraph (A) (as des-
17
ignated by clause (i)), by striking ‘‘general
18
welfare,’’; and
19
(iii) by adding at the end the fol-
20
lowing:
21
‘‘(B) the restoration of land and water re-
22
sources and the environment that—
23
‘‘(i) have been degraded by the adverse ef-
24
fects of coal mining practices; and
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H.L.C.
232
1
‘‘(ii) are adjacent to a site that has been
2
or will be remediated under subparagraph
3
(A);’’;
4
(B) in paragraph (2)—
5
(i) by striking ‘‘(2) the protection’’
6
and inserting the following:
7
‘‘(2)(A) the protection’’;
8
(ii) in subparagraph (A) (as des-
9
ignated by clause (i), by striking ‘‘health,
10
safety, and general welfare’’ and inserting
11
‘‘health and safety’’; and
12
(iii) by adding at the end the fol-
13
lowing:
14
‘‘(B) the restoration of land and water re-
15
sources and the environment that—
16
‘‘(i) have been degraded by the adverse ef-
17
fects of coal mining practices; and
18
‘‘(ii) are adjacent to a site that has been
19
or will be remediated under subparagraph (A);
20
and’’;
21
(C) in paragraph (3), by striking the semi-
22
colon at the end and inserting a period; and
23
(D) by striking paragraphs (4) and (5);
24
(2) in subsection (b)—
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H.L.C.
233
1
(A) by striking the subsection heading and
2
inserting ‘‘WATER SUPPLY RESTORATION.—’’;
3
and
4
(B) in paragraph (1), by striking ‘‘up to
5
30 percent of the’’; and
6
(3) in the second sentence of subsection (c), by
7
inserting ‘‘, subject to the approval of the Sec-
8
retary,’’ after ‘‘amendments’’.
9
SEC. 204. RECLAMATION OF RURAL LAND.
10
(a) ADMINISTRATION.—Section 406(h) of the Sur-
11 face Mining Control and Reclamation Act of 1977 (30
12 U.S.C. 1236(h)) is amended by striking ‘‘Soil Conserva13 tion Service’’ and inserting ‘‘Natural Resources Conserva14 tion Service’’.
15
16
(b) AUTHORIZATION
RYING
OF
APPROPRIATIONS
FOR
CAR-
OUT RURAL LAND RECLAMATION.—Section 406 of
17 the Surface Mining Control and Reclamation Act of 1977
18 (30 U.S.C. 1236) is amended by adding at the end the
19 following:
20
‘‘(i) There are authorized to be appropriated to the
21 Secretary of Agriculture, from amounts in the Treasury
22 other than amounts in the fund, such sums as may be
23 necessary to carry out this section.’’.
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December 7, 2006 (9:12 p.m.)
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H.L.C.
234
1
SEC. 205. LIENS.
2
Section 408(a) of the Surface Mining Control and
3 Reclamation Act of 1977 (30 U.S.C. 1238) is amended
4 in the last sentence by striking ‘‘who owned the surface
5 prior to May 2, 1977, and’’.
6
SEC. 206. CERTIFICATION.
7
Section 411 of the Surface Mining Control and Rec-
8 lamation Act of 1977 (30 U.S.C. 1240a) is amended—
9
(1) in subsection (a)—
10
(A) by inserting ‘‘(1)’’ before the first sen-
11
tence; and
12
(B) by adding at the end the following:
13
‘‘(2)(A) The Secretary may, on the initiative of the
14 Secretary, make the certification referred to in paragraph
15 (1) on behalf of any State or Indian tribe referred to in
16 paragraph (1) if on the basis of the inventory referred to
17 in section 403(c) all reclamation projects relating to the
18 priorities described in section 403(a) for eligible land and
19 water pursuant to section 404 in the State or tribe have
20 been completed.
21
‘‘(B) The Secretary shall only make the certification
22 after notice in the Federal Register and opportunity for
23 public comment.’’; and
24
(2) by adding at the end the following:
25
‘‘(h) PAYMENTS
26
‘‘(1) IN
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STATES
AND
INDIAN TRIBES.—
GENERAL.—
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235
1
‘‘(A) PAYMENTS.—
2
‘‘(i) IN
3
section 401(f)(3)(B), from funds referred
4
to in section 402(i)(2), the Secretary shall
5
make payments to States or Indian tribes
6
for the amount due for the aggregate un-
7
appropriated amount allocated to the State
8
or Indian tribe under subparagraph (A) or
9
(B) of section 402(g)(1).
10
‘‘(ii) CONVERSION
AS
EQUIVALENT
11
PAYMENTS.—Amounts
12
paragraphs (A) or (B) of section 402(g)(1)
13
shall be reallocated to the allocation estab-
14
lished in section 402(g)(5) in amounts
15
equivalent to payments made to States or
16
Indian tribes under this paragraph.
17
‘‘(B) AMOUNT
allocated under sub-
DUE.—In
this paragraph,
18
the term ‘amount due’ means the unappropri-
19
ated amount allocated to a State or Indian tribe
20
before October 1, 2007, under subparagraph
21
(A) or (B) of section 402(g)(1).
22
‘‘(C) SCHEDULE.—Payments under sub-
23
paragraph (A) shall be made in 7 equal annual
24
installments, beginning with fiscal year 2008.
25
‘‘(D) USE
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H.L.C.
236
1
‘‘(i) CERTIFIED
2
TRIBES.—A
3
makes a certification under subsection (a)
4
in which the Secretary concurs shall use
5
any amounts provided under this para-
6
graph for the purposes established by the
7
State legislature or tribal council of the In-
8
dian tribe, with priority given for address-
9
ing the impacts of mineral development.
10
State or Indian tribe that
‘‘(ii) UNCERTIFIED
STATES AND IN-
11
DIAN TRIBES.—A
12
that has not made a certification under
13
subsection (a) in which the Secretary has
14
concurred shall use any amounts provided
15
under this paragraph for the purposes de-
16
scribed in section 403.
17
‘‘(2) SUBSEQUENT
18
SHARE
19
TRIBES.—
20
FOR
State or Indian tribe
STATE AND INDIAN TRIBE
CERTIFIED
‘‘(A) IN
STATES
AND
INDIAN
GENERAL.—Notwithstanding
sec-
21
tion 401(f)(3)(B), from funds referred to in
22
section 402(i)(2), the Secretary shall pay to
23
each certified State or Indian tribe an amount
24
equal to the sum of the aggregate unappropri-
25
ated amount allocated on or after October 1,
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December 7, 2006 (9:12 p.m.)
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H.L.C.
237
1
2007, to the certified State or Indian tribe
2
under subparagraph (A) or (B) of section
3
402(g)(1).
4
‘‘(B) CERTIFIED
5
DEFINED.—In
6
tified State or Indian tribe’ means a State or
7
Indian tribe for which a certification is made
8
under subsection (a) in which the Secretary
9
concurs.
10
‘‘(3) MANNER
11
‘‘(A) IN
this paragraph the term ‘cer-
OF PAYMENT.—
GENERAL.—Subject
to subpara-
12
graph (B), payments to States or Indian tribes
13
under this subsection shall be made without re-
14
gard to any limitation in section 401(d) and
15
concurrently with payments to States under
16
that section.
17
‘‘(B) INITIAL
PAYMENTS.—The
first 3 pay-
18
ments made to any State or Indian tribe shall
19
be reduced to 25 percent, 50 percent, and 75
20
percent, respectively, of the amounts otherwise
21
required under paragraph (2)(A).
22
‘‘(C) INSTALLMENTS.—Amounts withheld
23
from the first 3 annual installments as provided
24
under subparagraph (B) shall be paid in 2
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238
1
equal annual installments beginning with fiscal
2
year 2018.
3
‘‘(4) REALLOCATION.—
4
‘‘(A) IN
GENERAL.—The
amount allocated
5
to any State or Indian tribe under subpara-
6
graph (A) or (B) of section 402(g)(1) that is
7
paid to the State or Indian tribe as a result of
8
a payment under paragraph (1) or (2) shall be
9
reallocated and available for grants under sec-
10
tion 402(g)(5).
11
‘‘(B) ALLOCATION.—The grants shall be
12
allocated based on the amount of coal histori-
13
cally produced before August 3, 1977, in the
14
same manner as under section 402(g)(5).’’.
15
SEC. 207. REMINING INCENTIVES.
16
Title IV of the Surface Mining Control and Reclama-
17 tion Act of 1977 (30 U.S.C. 1231 et seq.) is amended by
18 adding at the following:
19
‘‘SEC. 415. REMINING INCENTIVES.
20
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
21 vision of this Act, the Secretary may, after opportunity
22 for public comment, promulgate regulations that describe
23 conditions under which amounts in the fund may be used
24 to provide incentives to promote remining of eligible land
25 under section 404 in a manner that leverages the use of
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239
1 amounts from the fund to achieve more reclamation with
2 respect to the eligible land than would be achieved without
3 the incentives.
4
‘‘(b) REQUIREMENTS.—Any regulations promulgated
5 under subsection (a) shall specify that the incentives shall
6 apply only if the Secretary determines, with the concur7 rence of the State regulatory authority referred to in title
8 V, that, without the incentives, the eligible land would not
9 be likely to be remined and reclaimed.
10
‘‘(c) INCENTIVES.—
11
‘‘(1) IN
that may be con-
12
sidered for inclusion in the regulations promulgated
13
under subsection (a) include, but are not limited
14
to—
15
‘‘(A) a rebate or waiver of the reclamation
16
fees required under section 402(a); and
17
‘‘(B) the use of amounts in the fund to
18
provide financial assurance for remining oper-
19
ations in lieu of all or a portion of the perform-
20
ance bonds required under section 509.
21
‘‘(2) LIMITATIONS.—
22
‘‘(A) USE.—A rebate or waiver under
23
paragraph (1)(A) shall be used only for oper-
24
ations that—
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H.L.C.
240
1
‘‘(i) remove or reprocess abandoned
2
coal mine waste; or
3
‘‘(ii) conduct remining activities that
4
meet the priorities specified in paragraph
5
(1) or (2) of section 403(a).
6
‘‘(B) AMOUNT.—The amount of a rebate
7
or waiver provided as an incentive under para-
8
graph (1)(A) to remine or reclaim eligible land
9
shall not exceed the estimated cost of reclaim-
10
11
ing the eligible land under this section.’’.
SEC. 208. EXTENSION OF LIMITATION ON APPLICATION OF
12
PROHIBITION ON ISSUANCE OF PERMIT.
13
Section 510(e) of the Surface Mining Control and
14 Reclamation Act of 1977 (30 U.S.C. 1260(e)) is amended
15 by striking the last sentence.
16
SEC. 209. TRIBAL REGULATION OF SURFACE COAL MINING
17
AND RECLAMATION OPERATIONS.
18
(a) IN GENERAL.—Section 710 of the Surface Min-
19 ing Control and Reclamation Act of 1977 (30 U.S.C.
20 1300) is amended by adding at the end the following:
21
‘‘(j) TRIBAL REGULATORY AUTHORITY.—
22
‘‘(1) TRIBAL
23
‘‘(A) IN
GENERAL.—Notwithstanding
any
24
other provision of law, an Indian tribe may
25
apply for, and obtain the approval of, a tribal
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H.L.C.
241
1
program under section 503 regulating in whole
2
or in part surface coal mining and reclamation
3
operations on reservation land under the juris-
4
diction of the Indian tribe using the procedures
5
of section 504(e).
6
‘‘(B) REFERENCES
pur-
7
poses of this subsection and the implementation
8
and administration of a tribal program under
9
title V, any reference to a ‘State’ in this Act
10
shall be considered to be a reference to a ‘tribe’.
11
‘‘(2) CONFLICTS
12
‘‘(A) IN
OF INTEREST.—
GENERAL.—The
fact that an indi-
13
vidual is a member of an Indian tribe does not
14
in itself constitute a violation of section 201(f).
15
‘‘(B) EMPLOYEES
OF TRIBAL REGULATORY
16
AUTHORITY.—Any
17
latory authority shall not be eligible for a per
18
capita distribution of any proceeds from coal
19
mining operations conducted on Indian reserva-
20
tion lands under this Act.
21
‘‘(3) SOVEREIGN
employee of a tribal regu-
IMMUNITY.—To
receive pri-
22
mary regulatory authority under section 504(e), an
23
Indian tribe shall waive sovereign immunity for pur-
24
poses of section 520 and paragraph (4).
25
‘‘(4) JUDICIAL
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H.L.C.
242
1
‘‘(A) CIVIL
2
‘‘(i) IN
GENERAL.—After
exhausting
3
all tribal remedies with respect to a civil
4
action arising under a tribal program ap-
5
proved under section 504(e), an interested
6
party may file a petition for judicial review
7
of the civil action in the United States cir-
8
cuit court for the circuit in which the sur-
9
face coal mining operation named in the
10
petition is located.
11
‘‘(ii) SCOPE
12
OF REVIEW.—
‘‘(I) QUESTIONS
OF LAW.—The
13
United States circuit court shall re-
14
view de novo any questions of law
15
under clause (i).
16
‘‘(II) FINDINGS
OF FACT.—The
17
United States circuit court shall re-
18
view findings of fact under clause (i)
19
using a clearly erroneous standard.
20
‘‘(B) CRIMINAL
ACTIONS.—Any
criminal
21
action brought under section 518 with respect
22
to surface coal mining or reclamation oper-
23
ations on Indian reservation lands shall be
24
brought in—
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H.L.C.
243
1
‘‘(i) the United States District Court
2
for the District of Columbia; or
3
‘‘(ii) the United States district court
4
in which the criminal activity is alleged to
5
have occurred.
6
‘‘(5) GRANTS.—
7
‘‘(A) IN
as provided in
8
subparagraph (B), grants for developing, ad-
9
ministering, and enforcing tribal programs ap-
10
proved in accordance with section 504(e) shall
11
be provided to an Indian tribe in accordance
12
with section 705.
13
‘‘(B) EXCEPTION.—Notwithstanding sub-
14
paragraph (A), the Federal share of the costs
15
of developing, administering, and enforcing an
16
approved tribal program shall be 100 percent.
17
‘‘(6) REPORT.—Not later than 18 months after
18
the date on which a tribal program is approved
19
under subsection (e) of section 504, the Secretary
20
shall submit to the appropriate committees of Con-
21
gress a report, developed in cooperation with the ap-
22
plicable Indian tribe, on the tribal program that in-
23
cludes a recommendation of the Secretary on wheth-
24
er primary regulatory authority under that sub-
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H.L.C.
244
1
section should be expanded to include additional In-
2
dian lands.’’.
3
(b) CONFORMING AMENDMENT.—Section 710(i) of
4 the Surface Mining Control and Reclamation Act of 1977
5 (30 U.S.C. 1300(i)) is amended in the first sentence by
6 striking ‘‘, except’’ and all that follows through ‘‘section
7 503’’.
Subtitle B—Coal Industry Retiree
Health Benefit Act
8
9
10
SEC. 211. CERTAIN RELATED PERSONS AND SUCCESSORS
11
IN INTEREST RELIEVED OF LIABILITY IF PRE-
12
MIUMS PREPAID.
13
(a) COMBINED BENEFIT FUND.—Section 9704 of the
14 Internal Revenue Code of 1986 (relating to liability of as15 signed operators) is amended by adding at the end the
16 following new subsection:
17
‘‘(j) PREPAYMENT OF PREMIUM LIABILITY.—
18
‘‘(1) IN
19
‘‘(A) a payment meeting the requirements
20
of paragraph (3) is made to the Combined
21
Fund by or on behalf of—
22
‘‘(i) any assigned operator to which
23
this subsection applies, or
24
‘‘(ii) any related person to any as-
25
signed operator described in clause (i), and
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December 7, 2006 (9:12 p.m.)
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H.L.C.
245
1
‘‘(B) the common parent of the controlled
2
group of corporations described in paragraph
3
(2)(B) is jointly and severally liable for any pre-
4
mium under this section which (but for this
5
subsection) would be required to be paid by the
6
assigned operator or related person,
7
then such common parent (and no other person)
8
shall be liable for such premium.
9
‘‘(2) ASSIGNED
10
SECTION APPLIES.—
11
‘‘(A) IN
12
GENERAL.—This
subsection shall
apply to any assigned operator if—
13
‘‘(i) the assigned operator (or a re-
14
lated person to the assigned operator)—
15
‘‘(I) made contributions to the
16
1950 UMWA Benefit Plan and the
17
1974 UMWA Benefit Plan for em-
18
ployment during the period covered by
19
the 1988 agreement; and
20
‘‘(II) is not a 1988 agreement
21
operator,
22
‘‘(ii) the assigned operator (and all re-
23
lated persons to the assigned operator) are
24
not actively engaged in the production of
25
coal as of July 1, 2005, and
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December 7, 2006 (9:12 p.m.)
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OPERATORS TO WHICH SUB-
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H.L.C.
246
1
‘‘(iii) the assigned operator was, as of
2
July 20, 1992, a member of a controlled
3
group of corporations described in sub-
4
paragraph (B).
5
‘‘(B) CONTROLLED
6
TIONS.—A
7
described in this subparagraph if the common
8
parent of such group is a corporation the shares
9
of which are publicly traded on a United States
10
controlled group of corporations is
exchange.
11
‘‘(C) COORDINATION
WITH REPEAL OF AS-
12
SIGNMENTS.—A
13
treated as an assigned operator to which this
14
subsection applies solely because the person
15
ceases to be an assigned operator by reason of
16
section 9706(h)(1) if the person otherwise
17
meets the requirements of this subsection and
18
is liable for the payment of premiums under
19
section 9706(h)(3).
20
person shall not fail to be
‘‘(D) CONTROLLED
GROUP.—For
purposes
21
of this subsection, the term ‘controlled group of
22
corporations’ has the meaning given such term
23
by section 52(a).
24
‘‘(3) REQUIREMENTS.—A payment meets the
25
requirements of this paragraph if—
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H.L.C.
247
1
‘‘(A) the amount of the payment is not less
2
than the present value of the total premium li-
3
ability under this chapter with respect to the
4
Combined Fund of the assigned operators or re-
5
lated persons described in paragraph (1) or
6
their assignees, as determined by the operator’s
7
or related person’s enrolled actuary (as defined
8
in section 7701(a)(35)) using actuarial methods
9
and assumptions each of which is reasonable
10
and which are reasonable in the aggregate, as
11
determined by such enrolled actuary;
12
‘‘(B) such enrolled actuary files with the
13
Secretary of Labor a signed actuarial report
14
containing—
15
‘‘(i) the date of the actuarial valuation
16
applicable to the report; and
17
‘‘(ii) a statement by the enrolled actu-
18
ary signing the report that, to the best of
19
the actuary’s knowledge, the report is com-
20
plete and accurate and that in the actu-
21
ary’s opinion the actuarial assumptions
22
used are in the aggregate reasonably re-
23
lated to the experience of the operator and
24
to reasonable expectations; and
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H.L.C.
248
1
‘‘(C) 90 calendar days have elapsed after
2
the report required by subparagraph (B) is filed
3
with the Secretary of Labor, and the Secretary
4
of Labor has not notified the assigned operator
5
in writing that the requirements of this para-
6
graph have not been satisfied.
7
‘‘(4) USE
8
Combined
Fund shall—
9
‘‘(A) establish and maintain an account for
10
each assigned operator or related person by, or
11
on whose behalf, a payment described in para-
12
graph (3) was made,
13
‘‘(B) credit such account with such pay-
14
ment (and any earnings thereon), and
15
‘‘(C) use all amounts in such account ex-
16
clusively to pay premiums that would (but for
17
this subsection) be required to be paid by the
18
assigned operator.
19
Upon termination of the obligations for the premium
20
liability of any assigned operator or related person
21
for which such account is maintained, all funds re-
22
maining in such account (and earnings thereon)
23
shall be refunded to such person as may be des-
24
ignated by the common parent described in para-
25
graph (1)(B).’’.
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December 7, 2006 (9:12 p.m.)
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H.L.C.
249
1
(b)
INDIVIDUAL
EMPLOYER
PLANS.—Section
2 9711(c) of the Internal Revenue Code of 1986 (relating
3 to joint and several liability) is amended to read as follows:
4
‘‘(c) JOINT
AND
SEVERAL LIABILITY
OF
RELATED
5 PERSONS.—
6
‘‘(1) IN
as provided in para-
7
graph (2), each related person of a last signatory op-
8
erator to which subsection (a) or (b) applies shall be
9
jointly and severally liable with the last signatory op-
10
erator for the provision of health care coverage de-
11
scribed in subsection (a) or (b).
12
‘‘(2) LIABILITY
13
LIMITED IF SECURITY PRO-
VIDED.—If—
14
‘‘(A) security meeting the requirements of
15
paragraph (3) is provided by or on behalf of—
16
‘‘(i) any last signatory operator which
17
is an assigned operator described in section
18
9704(j)(2), or
19
‘‘(ii) any related person to any last
20
signatory operator described in clause (i),
21
and
22
‘‘(B) the common parent of the controlled
23
group of corporations described in section
24
9704(j)(2)(B) is jointly and severally liable for
25
the provision of health care under this section
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H.L.C.
250
1
which, but for this paragraph, would be re-
2
quired to be provided by the last signatory op-
3
erator or related person,
4
then, as of the date the security is provided, such
5
common parent (and no other person) shall be liable
6
for the provision of health care under this section
7
which the last signatory operator or related person
8
would otherwise be required to provide. Security may
9
be provided under this paragraph without regard to
10
whether a payment was made under section 9704(j).
11
‘‘(3) SECURITY.—Security meets the require-
12
ments of this paragraph if—
13
‘‘(A) the security—
14
‘‘(i) is in the form of a bond, letter of
15
credit, or cash escrow,
16
‘‘(ii) is provided to the trustees of the
17
1992 UMWA Benefit Plan solely for the
18
purpose of paying premiums for bene-
19
ficiaries who would be described in section
20
9712(b)(2)(B) if the requirements of this
21
section were not met by the last signatory
22
operator, and
23
‘‘(iii) is in an amount equal to 1 year
24
of liability of the last signatory operator
25
under this section, determined by using the
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December 7, 2006 (9:12 p.m.)
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H.L.C.
251
1
average cost of such operator’s liability
2
during the prior 3 calendar years;
3
‘‘(B) the security is in addition to any
4
other security required under any other provi-
5
sion of this title; and
6
‘‘(C) the security remains in place for 5
7
years.
8
‘‘(4) REFUNDS
OF SECURITY.—The
remaining
9
amount of any security provided under this sub-
10
section (and earnings thereon) shall be refunded to
11
the last signatory operator as of the earlier of—
12
‘‘(A) the termination of the obligations of
13
the last signatory operator under this section,
14
or
15
‘‘(B) the end of the 5-year period described
16
in paragraph (4)(C).’’.
17
(c)
1992
UMWA
BENEFIT
PLAN.—Section
18 9712(d)(4) of the Internal Revenue Code of 1986 (relating
19 to joint and several liability) is amended by adding at the
20 end the following new sentence: ‘‘The provisions of section
21 9711(c)(2) shall apply to any last signatory operator de22 scribed in such section (without regard to whether security
23 is provided under such section, a payment is made under
24 section 9704(j), or both) and if security meeting the re25 quirements of section 9711(c)(3) is provided, the common
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252
1 parent described in section 9711(c)(2)(B) shall be exclu2 sively responsible for any liability for premiums under this
3 section which, but for this sentence, would be required to
4 be paid by the last signatory operator or any related per5 son.’’.
6
(d) SUCCESSOR
IN
INTEREST.—Section 9701(c) of
7 the Internal Revenue Code of 1986 (relating to terms re8 lating to operators) is amended by adding at the end the
9 following new paragraph:
10
‘‘(8) SUCCESSOR
11
‘‘(A) SAFE
HARBOR.—The
term ‘successor
12
in interest’ shall not include any person who—
13
‘‘(i) is an unrelated person to an eligi-
14
ble seller described in subparagraph (C);
15
and
16
‘‘(ii) purchases for fair market value
17
assets, or all of the stock, of a related per-
18
son to such seller, in a bona fide, arm’s-
19
length sale.
20
‘‘(B) UNRELATED
PERSON.—The
term
21
‘unrelated person’ means a purchaser who does
22
not bear a relationship to the eligible seller de-
23
scribed in section 267(b).
24
‘‘(C) ELIGIBLE
25
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SELLER.—For
purposes of
this paragraph, the term ‘eligible seller’ means
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H.L.C.
253
1
an assigned operator described in section
2
9704(j)(2) or a related person to such assigned
3
operator.’’.
4
(e) EFFECTIVE DATE.—The amendments made by
5 this section shall take effect on the date of the enactment
6 of this Act, except that the amendment made by sub7 section (d) shall apply to transactions after the date of
8 the enactment of this Act.
9
SEC. 212. TRANSFERS TO FUNDS; PREMIUM RELIEF.
10
(a) COMBINED FUND.—
11
(1) FEDERAL
9705(b) of
12
the Internal Revenue Code of 1986 (relating to
13
transfers from Abandoned Mine Reclamation Fund)
14
is amended—
15
(A) in paragraph (1), by striking ‘‘section
16
402(h)’’ and inserting ‘‘subsections (h) and (i)
17
of section 402’’;
18
(B) by striking paragraph (2) and insert-
19
ing the following new paragraph:
20
‘‘(2) USE
OF FUNDS.—Any
amount transferred
21
under paragraph (1) for any fiscal year shall be used
22
to pay benefits and administrative costs of bene-
23
ficiaries of the Combined Fund or for such other
24
purposes as are specifically provided in the Acts de-
25
scribed in paragraph (1).’’; and
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H.L.C.
254
1
(C) by striking ‘‘FROM ABANDONED MINE
2
RECLAMATION FUND’’ in the heading thereof.
3
(2) MODIFICATIONS
4
FEDERAL TRANSFERS.—
5
(A) ELIMINATION
OF UNASSIGNED BENE-
6
FICIARIES PREMIUM.—Section
7
Code (establishing unassigned beneficiaries pre-
8
mium) is amended to read as follows:
9
‘‘(d) UNASSIGNED BENEFICIARIES PREMIUM.—
10
‘‘(1) PLAN
9704(d) of such
YEARS ENDING ON OR BEFORE SEP-
11
TEMBER 30, 2006.—For
12
fore September 30, 2006, the unassigned bene-
13
ficiaries premium for any assigned operator shall be
14
equal to the applicable percentage of the product of
15
the per beneficiary premium for the plan year multi-
16
plied by the number of eligible beneficiaries who are
17
not assigned under section 9706 to any person for
18
such plan year.
19
‘‘(2) PLAN
20
plan years ending on or be-
YEARS BEGINNING ON OR AFTER OC-
TOBER 1, 2006.—
21
‘‘(A) IN
GENERAL.—For
plan years begin-
22
ning on or after October 1, 2006, subject to
23
subparagraph (B), there shall be no unassigned
24
beneficiaries premium, and benefit costs with
25
respect to eligible beneficiaries who are not as-
f:\V9\120706\120706.200.xml
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OF PREMIUMS TO REFLECT
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H.L.C.
255
1
signed under section 9706 to any person for
2
any such plan year shall be paid from amounts
3
transferred under section 9705(b).
4
‘‘(B) INADEQUATE
for
5
any plan year beginning on or after October 1,
6
2006, the amounts transferred under section
7
9705(b) are less than the amounts required to
8
be transferred to the Combined Fund under
9
subsection (h)(2)(A) or (i) of section 402 of the
10
Surface Mining Control and Reclamation Act of
11
1977 (30 U.S.C. 1232)), then the unassigned
12
beneficiaries premium for any assigned operator
13
shall be equal to the operator’s applicable per-
14
centage of the amount required to be so trans-
15
ferred which was not so transferred.’’.
16
(B) PREMIUM
17
ACCOUNTS.—
(i) CREDITING
OF ACCOUNTS.—Sec-
18
tion 9704(e)(1) of such Code (relating to
19
premium accounts; adjustments) is amend-
20
ed by inserting ‘‘and amounts transferred
21
under section 9705(b)’’ after ‘‘premiums
22
received’’.
23
(ii) SURPLUSES
ATTRIBUTABLE
TO
24
PUBLIC FUNDING.—Section
25
of such Code is amended by adding at the
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H.L.C.
256
1
end the following new sentence: ‘‘Amounts
2
credited to an account from amounts
3
transferred under section 9705(b) shall not
4
be taken into account in determining
5
whether there is a surplus in the account
6
for purposes of this paragraph.’’
7
(C) APPLICABLE
8
9704(f)(2) of such Code (relating to annual ad-
9
justments) is amended by adding at the end the
10
following new subparagraph:
11
‘‘(C) In the case of plan years beginning
12
on or after October 1, 2007, the total number
13
of assigned eligible beneficiaries shall be re-
14
duced by the eligible beneficiaries whose assign-
15
ments
16
9706(h).’’.
17
(3) ASSIGNMENTS
have
been
revoked
under
section
AND REASSIGNMENT.—Sec-
18
tion 9706 of the Internal Revenue Code of 1986 (re-
19
lating to assignment of eligible beneficiaries) is
20
amended by adding at the end the following:
21
‘‘(h) ASSIGNMENTS AS OF OCTOBER 1, 2007.—
22
‘‘(1) IN
GENERAL.—Subject
to the premium ob-
23
ligation set forth in paragraph (3), the Commis-
24
sioner of Social Security shall—
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PERCENTAGE.—Section
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H.L.C.
257
1
‘‘(A) revoke all assignments to persons
2
other than 1988 agreement operators for pur-
3
poses of assessing premiums for plan years be-
4
ginning on and after October 1, 2007; and
5
‘‘(B) make no further assignments to per-
6
sons other than 1988 agreement operators, ex-
7
cept that no individual who becomes an unas-
8
signed beneficiary by reason of subparagraph
9
(A) may be assigned to a 1988 agreement oper-
10
ator.
11
‘‘(2) REASSIGNMENT
12
subsection shall not be construed to prohibit the re-
13
assignment under subsection (b)(2) of an eligible
14
beneficiary.
15
‘‘(3) LIABILITY
OF PERSONS DURING THREE
16
FISCAL YEARS BEGINNING ON AND AFTER OCTOBER
17
1, 2007.—In
18
ginning on October 1, 2007, 2008, and 2009, each
19
person other than a 1988 agreement operator shall
20
pay to the Combined Fund the following percentage
21
of the amount of annual premiums that such person
22
would otherwise be required to pay under section
23
9704(a), determined on the basis of assignments in
24
effect without regard to the revocation of assign-
25
ments under paragraph (1)(A):
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258
1
‘‘(A) For the fiscal year beginning on Oc-
2
tober 1, 2007, 55 percent.
3
‘‘(B) For the fiscal year beginning on Oc-
4
tober 1, 2008, 40 percent.
5
‘‘(C) For the fiscal year beginning on Oc-
6
tober 1, 2009, 15 percent.’’.
7
(4) EFFECTIVE
amendments made
8
by this subsection shall apply to plan years of the
9
Combined Fund beginning after September 30,
10
2006.
11
(b) 1992 UMWA BENEFIT AND OTHER PLANS.—
12
(1) TRANSFERS
TO PLANS.—Section
9712(a) of
13
the Internal Revenue Code of 1986 (relating to the
14
establishment and coverage of the 1992 UMWA
15
Benefit Plan) is amended by adding at the end the
16
following:
17
‘‘(3) TRANSFERS
18
UNDER
OTHER
FEDERAL
STATUTES.—
19
‘‘(A) IN
GENERAL.—The
1992 UMWA
20
Benefit Plan shall include any amount trans-
21
ferred to the plan under subsections (h) and (i)
22
of section 402 of the Surface Mining Control
23
and Reclamation Act of 1977 (30 U.S.C. 1232).
24
‘‘(B) USE
25
21:12 Dec 07, 2006
OF FUNDS.—Any
amount trans-
ferred under subparagraph (A) for any fiscal
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
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DATE.—The
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H.L.C.
259
1
year shall be used to provide the health benefits
2
described in subsection (c) with respect to any
3
beneficiary for whom no monthly per bene-
4
ficiary premium is paid pursuant to paragraph
5
(1)(A) or (3) of subsection (d).
6
‘‘(4) SPECIAL
7
‘‘(A) IN
GENERAL.—The
plan described in
8
section 402(h)(2)(C) of the Surface Mining
9
Control and Reclamation Act of 1977 (30
10
U.S.C.
11
amount transferred to the plan under sub-
12
sections (h) and (i) of the Surface Mining Con-
13
trol and Reclamation Act of 1977 (30 U.S.C.
14
1232).
15
1232(h)(2)(C))
‘‘(B) USE
shall
OF FUNDS.—Any
include
any
amount trans-
16
ferred under subparagraph (A) for any fiscal
17
year shall be used to provide the health benefits
18
described in section 402(h)(2)(C)(i) of the Sur-
19
face Mining Control and Reclamation Act of
20
1977 (30 U.S.C. 1232(h)(2)(C)(i)) to individ-
21
uals described in section 402(h)(2)(C) of such
22
Act (30 U.S.C. 1232(h)(2)(C)).’’.
23
(2) PREMIUM
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H.L.C.
260
1
(A) IN
9712(d)(1) of
2
such Code (relating to guarantee of benefits) is
3
amended to read as follows:
4
‘‘(1) IN
GENERAL.—All
1988 last signatory op-
5
erators shall be responsible for financing the benefits
6
described in subsection (c) by meeting the following
7
requirements in accordance with the contribution re-
8
quirements established in the 1992 UMWA Benefit
9
Plan:
10
‘‘(A) The payment of a monthly per bene-
11
ficiary premium by each 1988 last signatory op-
12
erator for each eligible beneficiary of such oper-
13
ator who is described in subsection (b)(2) and
14
who is receiving benefits under the 1992
15
UMWA benefit plan.
16
‘‘(B) The provision of a security (in the
17
form of a bond, letter of credit, or cash escrow)
18
in an amount equal to a portion of the pro-
19
jected future cost to the 1992 UMWA Benefit
20
Plan of providing health benefits for eligible
21
and potentially eligible beneficiaries attributable
22
to the 1988 last signatory operator.
23
‘‘(C) If the amounts transferred under
24
subsection (a)(3) are less than the amounts re-
25
quired to be transferred to the 1992 UMWA
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21:12 Dec 07, 2006
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H.L.C.
261
1
Benefit Plan under subsections (h) and (i) of
2
section 402 of the Surface Mining Control and
3
Reclamation Act of 1977 (30 U.S.C. 1232), the
4
payment of an additional backstop premium by
5
each 1988 last signatory operator which is
6
equal to such operator’s share of the amounts
7
required to be so transferred but which were
8
not so transferred, determined on the basis of
9
the number of eligible and potentially eligible
10
beneficiaries attributable to the operator.’’.
11
(B) CONFORMING
12
AMENDMENTS.—Section
9712(d) of such Code is amended—
13
(i) in paragraph (2)(B), by striking
14
‘‘prefunding’’ and inserting ‘‘backstop’’,
15
and
16
(ii) in paragraph (3), by striking
17
‘‘paragraph (1)(B)’’ and inserting ‘‘para-
18
graph (1) (A)’’.
19
(C) EFFECTIVE
DATE.—The
amendments
20
made by this paragraph shall apply to fiscal
21
years beginning on or after October 1, 2010.
22
SEC. 213. OTHER PROVISIONS.
23
(a) BOARD
OF
TRUSTEES.—Section 9702(b) of the
24 Internal Revenue Code of 1986 (relating to board of trust25 ees of the Combined Fund) is amended to read as follows:
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H.L.C.
262
1
‘‘(b) BOARD OF TRUSTEES.—
2
‘‘(1) IN
purposes of subsection
3
(a), the board of trustees for the Combined Fund
4
shall be appointed as follows:
5
‘‘(A) 2 individuals who represent employers
6
in the coal mining industry shall be designated
7
by the BCOA;
8
‘‘(B) 2 individuals designated by the
9
United Mine Workers of America; and
10
‘‘(C) 3 individuals selected by the individ-
11
uals appointed under subparagraphs (A) and
12
(B).
13
‘‘(2) SUCCESSOR
TRUSTEES.—Any
successor
14
trustee shall be appointed in the same manner as
15
the trustee being succeeded. The plan establishing
16
the Combined Fund shall provide for the removal of
17
trustees.
18
‘‘(3) SPECIAL
RULE.—If
the BCOA ceases to
19
exist, any trustee or successor under paragraph
20
(1)(A) shall be designated by the 3 employers who
21
were members of the BCOA on the enactment date
22
and who have been assigned the greatest number of
23
eligible beneficiaries under section 9706.’’.
24
(b) ENFORCEMENT OF OBLIGATIONS.—
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H.L.C.
263
1
(1) FAILURE
TO
PAY
PREMIUMS.—Section
2
9707(a) of the Internal Revenue Code of 1986 is
3
amended to read as follows:
4
‘‘(a) FAILURES TO PAY.—
5
‘‘(1)
PREMIUMS
FOR
BENE-
ELIGIBLE
6
FICIARIES.—There
7
the failure of any assigned operator to pay any pre-
8
mium required to be paid under section 9704 with
9
respect to any eligible beneficiary.
10
is hereby imposed a penalty on
‘‘(2) CONTRIBUTIONS
REQUIRED UNDER THE
11
MINING LAWS.—There
12
on the failure of any person to make a contribution
13
required under section 402(h)(5)(B)(ii) of the Sur-
14
face Mining Control and Reclamation Act of 1977 to
15
a plan referred to in section 402(h)(2)(C) of such
16
Act. For purposes of applying this section, each such
17
required monthly contribution for the hours worked
18
of any individual shall be treated as if it were a pre-
19
mium required to be paid under section 9704 with
20
respect to an eligible beneficiary.’’.
21
(2) CIVIL
22
23
is hereby imposed a penalty
ENFORCEMENT.—Section
9721 of
such Code is amended to read as follows:
‘‘SEC. 9721. CIVIL ENFORCEMENT.
24
‘‘The provisions of section 4301 of the Employee Re-
25 tirement Income Security Act of 1974 shall apply, in the
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H.L.C.
264
1 same manner as any claim arising out of an obligation
2 to pay withdrawal liability under subtitle E of title IV of
3 such Act, to any claim—
4
‘‘(1) arising out of an obligation to pay any
5
amount required to be paid by this chapter; or
6
‘‘(2) arising out of an obligation to pay any
7
amount required by section 402(h)(5)(B)(ii) of the
8
Surface Mining Control and Reclamation Act of
9
1977 (30 U.S.C. 1232(h)(5)(B)(ii)).’’.
12
TITLE III—WHITE PINE COUNTY
CONSERVATION,
RECREATION, AND DEVELOPMENT
13
SEC. 301. AUTHORIZATION OF APPROPRIATIONS.
10
11
14
There are authorized to be appropriated such sums
15 as are necessary to carry out this title.
16
SEC. 302. SHORT TITLE.
17
This title may be cited as the ‘‘White Pine County
18 Conservation, Recreation, and Development Act of 2006’’.
19
SEC. 303. DEFINITIONS.
20
In this title:
21
(1) COUNTY.—The term ‘‘County’’ means
22
White Pine County, Nevada.
23
(2)
24
21:12 Dec 07, 2006
term
‘‘Secretary’’
means—
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SECRETARY.—The
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H.L.C.
265
1
(A) with respect to land in the National
2
Forest System, the Secretary of Agriculture;
3
and
4
(B) with respect to other Federal land, the
5
Secretary of the Interior.
6
(3) STATE.—The term ‘‘State’’ means the State
7
of Nevada.
8
Subtitle A—Land Disposal
9
SEC. 311. CONVEYANCE OF WHITE PINE COUNTY, NEVADA,
10
LAND.
11
(a) IN GENERAL.—Notwithstanding sections 202 and
12 203 of the Federal Land Policy and Management Act of
13 1976 (43 U.S.C. 1712, 1713), the Secretary, in coopera14 tion with the County, in accordance with that Act, this
15 subtitle, and other applicable law and subject to valid ex16 isting rights, shall, at such time as the parcels of Federal
17 land become available for disposal, conduct sales of the
18 parcels of Federal land described in subsection (b) to
19 qualified bidders.
20
(b) DESCRIPTION
OF
LAND.—The parcels of Federal
21 land referred to in subsection (a) consist of not more than
22 45,000 acres of Bureau of Land Management land in the
23 County that—
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H.L.C.
266
1
(1) is not segregated or withdrawn on or after
2
the date of enactment of this Act, unless the land
3
is withdrawn in accordance with subsection (h); and
4
(2) is identified for disposal by the Bureau of
5
Land Management through—
6
(A) the Ely Resource Management Plan;
7
or
8
(B) a subsequent amendment to the man-
9
agement plan that is undertaken with full pub-
10
lic involvement.
11
(c) AVAILABILITY.—The map and any legal descrip-
12 tions of the Federal land conveyed under this section shall
13 be on file and available for public inspection in—
14
(1) the Office of the Director of the Bureau of
15
Land Management;
16
(2) the Office of the Nevada State Director of
17
the Bureau of Land Management; and
18
(3) the Ely Field Office of the Bureau of Land
19
Management.
20
(d) JOINT SELECTION REQUIRED.—The Secretary
21 and the County shall jointly select which parcels of Fed22 eral land described in subsection (b) to offer for sale under
23 subsection (a).
24
25
(e) COMPLIANCE WITH LOCAL PLANNING
ING
21:12 Dec 07, 2006
ZON-
LAWS.—Before a sale of Federal land under sub-
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AND
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H.L.C.
267
1 section (a), the County shall submit to the Secretary a
2 certification that qualified bidders have agreed to comply
3 with—
4
(1) County and city zoning ordinances; and
5
(2) any master plan for the area approved by
6
the County.
7
(f) METHOD OF SALE; CONSIDERATION.—The sale of
8 Federal land under subsection (a) shall be—
9
(1) consistent with subsections (d) and (f) of
10
section 203 of the Federal Land Management Policy
11
Act of 1976 (43 U.S.C. 1713);
12
(2) unless otherwise determined by the Sec-
13
retary, through a competitive bidding process; and
14
(3) for not less than fair market value.
15
16
(g) RECREATION
PUBLIC PURPOSES ACT CON-
VEYANCES.—
17
(1) IN
GENERAL.—Not
later than 30 days be-
18
fore land is offered for sale under subsection (a), the
19
State or County may elect to obtain any of the land
20
for local public purposes in accordance with the Act
21
of June 14, 1926 (commonly known as the ‘‘Recre-
22
ation and Public Purposes Act’’) (43 U.S.C. 869 et
23
seq.).
24
(2) RETENTION.—Pursuant to an election made
25
under paragraph (1), the Secretary shall retain the
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H.L.C.
268
1
elected land for conveyance to the State or County
2
in accordance with the Act of June 14, 1926 (com-
3
monly known as the ‘‘Recreation and Public Pur-
4
poses Act’’) (43 U.S.C. 869 et seq.).
5
(h) WITHDRAWAL.—
6
(1) IN
to valid existing
7
rights and except as provided in paragraph (2), the
8
Federal land described in subsection (b) is with-
9
drawn from—
10
(A) all forms of entry and appropriation
11
under the public land laws and mining laws;
12
(B) location and patent under the mining
13
laws; and
14
(C) operation of the mineral laws, geo-
15
thermal leasing laws, and mineral material
16
laws.
17
(2) EXCEPTION.—Paragraph (1)(A) shall not
18
apply to sales made consistent with this section or
19
an election by the County or the State to obtain the
20
land described in subsection (b) for public purposes
21
under the Act of June 14, 1926 (commonly known
22
as the ‘‘Recreation and Public Purposes Act’’)(43
23
U.S.C. 869 et seq.).
24
(i) DEADLINE FOR SALE.—
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H.L.C.
269
1
(1) IN
GENERAL.—Except
as provided in para-
2
graph (2), not later than 1 year after the date of the
3
signing of the record of decision authorizing the im-
4
plementation of the Ely Resource Management Plan
5
and annually thereafter until the Federal land de-
6
scribed in subsection (b) is disposed of or the Coun-
7
ty requests a postponement under paragraph (2),
8
the Secretary shall offer for sale the Federal land
9
described in subsection (b).
10
(2) POSTPONEMENT;
11
(A) REQUEST
EXCLUSION FROM SALE.—
BY COUNTY FOR POSTPONE-
12
MENT OR EXCLUSION.—At
13
County, the Secretary shall postpone or exclude
14
from the sale all or a portion of the land de-
15
scribed in subsection (b).
16
(B) INDEFINITE
the request of the
POSTPONEMENT.—Unless
17
specifically requested by the County, a post-
18
ponement under subparagraph (A) shall not be
19
indefinite.
20
SEC. 312. DISPOSITION OF PROCEEDS.
21
Of the proceeds from the sale of Federal land de-
22 scribed in section l11(b)—
23
(1) 5 percent shall be paid directly to the State
24
for use in the general education program of the
25
State;
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H.L.C.
270
1
(2) 10 percent shall be paid to the County for
2
use for fire protection, law enforcement, education,
3
public safety, housing, social services, transpor-
4
tation, and planning; and
5
(3) the remainder shall be deposited in a special
6
account in the Treasury of the United States, to be
7
known as the ‘‘White Pine County Special Account’’
8
(referred to in this subtitle as the ‘‘special ac-
9
count’’), and shall be available without further ap-
10
propriation to the Secretary until expended for—
11
(A) the reimbursement of costs incurred by
12
the Nevada State office and the Ely Field Of-
13
fice of the Bureau of Land Management for
14
preparing for the sale of Federal land described
15
in section l11(b), including the costs of sur-
16
veys and appraisals and compliance with the
17
National Environmental Policy Act of 1969 (42
18
U.S.C. 4321) and sections 202 and 203 of the
19
Federal Land Policy and Management Act of
20
1976 (43 U.S.C. 1712, 1713);
21
(B) the inventory, evaluation, protection,
22
and management of unique archaeological re-
23
sources (as defined in section 3 of the Archae-
24
ological Resources Protection Act of 1979 (16
25
U.S.C. 470bb)) of the County;
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H.L.C.
271
1
(C) the reimbursement of costs incurred by
2
the Department of the Interior for preparing
3
and carrying out the transfers of land to be
4
held in trust by the United States under section
5
l61;
6
(D) conducting a study of routes for the
7
Silver State Off-Highway Vehicle Trail as re-
8
quired by section l55(a);
9
(E) developing and implementing the Sil-
10
ver State Off-Highway Vehicle Trail manage-
11
ment plan described in section l55(c);
12
(F) wilderness protection and processing
13
wilderness designations, including the costs of
14
appropriate fencing, signage, public education,
15
and enforcement for the wilderness areas des-
16
ignated;
17
(G) if the Secretary determines necessary,
18
developing and implementing conservation plans
19
for endangered or at risk species in the County;
20
and
21
(H) carrying out a study to assess non-mo-
22
torized recreation opportunities on Federal land
23
in the County.
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272
Subtitle B—Wilderness Areas
1
2
SEC. 321. SHORT TITLE.
3
This subtitle may be cited as the ‘‘Pam White Wilder-
4 ness Act of 2006’’.
5
SEC. 322. FINDINGS.
6
Congress finds that—
7
(1) public land in the County contains unique
8
and spectacular natural resources, including—
9
(A) priceless habitat for numerous species
10
of plants and wildlife; and
11
(B) thousands of acres of land that remain
12
in a natural state; and
13
(2) continued preservation of those areas would
14
benefit the County and all of the United States by—
15
(A) ensuring the conservation of eco-
16
logically diverse habitat;
17
(B) protecting prehistoric cultural re-
18
sources;
19
(C) conserving primitive recreational re-
20
sources; and
21
(D) protecting air and water quality.
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273
1
SEC. 323. ADDITIONS TO NATIONAL WILDERNESS PRESER-
2
VATION SYSTEM.
3
(a) ADDITIONS.—The following land in the State is
4 designated as wilderness and as components of the Na5 tional Wilderness Preservation System:
6
(1) MT.
7
tain Federal land managed by the Forest Service
8
and the Bureau of Land Management, comprising
9
approximately 11,261 acres, as generally depicted on
10
the map entitled ‘‘Eastern White Pine County’’ and
11
dated November 29, 2006, is incorporated in, and
12
shall be managed as part of, the Mt. Moriah Wilder-
13
ness, as designated by section 2(13) of the Nevada
14
Wilderness Protection Act of 1989 (16 U.S.C. 1132
15
note; Public Law 101–195).
16
(2) MOUNT
GRAFTON WILDERNESS.—Certain
17
Federal land managed by the Bureau of Land Man-
18
agement, comprising approximately 78,754 acres, as
19
generally depicted on the map entitled ‘‘Southern
20
White Pine County’’ and dated November 29, 2006,
21
which shall be known as the ‘‘Mount Grafton Wil-
22
derness’’.
23
(3) SOUTH
EGAN RANGE WILDERNESS.—Cer-
24
tain Federal land managed by the Bureau of Land
25
Management,
26
acres, as generally depicted on the map entitled
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274
1
‘‘Southern White Pine County’’ and dated November
2
29, 2006, which shall be known as the ‘‘South Egan
3
Range Wilderness’’.
4
(4) HIGHLAND
5
Federal land managed by the Bureau of Land Man-
6
agement and the Forest Service, comprising approxi-
7
mately 68,627 acres, as generally depicted on the
8
map entitled ‘‘Southern White Pine County’’ and
9
dated November 29, 2006, which shall be known as
10
the ‘‘Highland Ridge Wilderness’’.
11
(5) GOVERNMENT
PEAK WILDERNESS.—Certain
12
Federal land managed by the Bureau of Land Man-
13
agement, comprising approximately 6,313 acres, as
14
generally depicted on the map entitled ‘‘Eastern
15
White Pine County’’ and dated November 29, 2006,
16
which shall be known as the ‘‘Government Peak Wil-
17
derness’’.
18
(6) CURRANT
MOUNTAIN WILDERNESS ADDI-
19
TION.—Certain
20
Service, comprising approximately 10,697 acres, as
21
generally depicted on the map entitled ‘‘Western
22
White Pine County’’ and dated November 29, 2006,
23
is incorporated in, and shall be managed as part of,
24
the ‘‘Currant Mountain Wilderness’’, as designated
25
by section 2(4) of the Nevada Wilderness Protection
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275
1
Act of 1989 (16 U.S.C. 1132 note; Public Law 101–
2
195).
3
(7) RED
WILDERNESS.—Certain
4
Federal land managed by the Forest Service, com-
5
prising approximately 20,490 acres, as generally de-
6
picted on the map entitled ‘‘Western White Pine
7
County’’ and dated November 29, 2006, which shall
8
be known as the ‘‘Red Mountain Wilderness’’.
9
(8) BALD
MOUNTAIN
WILDERNESS.—Certain
10
Federal land managed by the Bureau of Land Man-
11
agement and the Forest Service, comprising approxi-
12
mately 22,366 acres, as generally depicted on the
13
map entitled ‘‘Western White Pine County’’ and
14
dated November 29, 2006, which shall be known as
15
the ‘‘Bald Mountain Wilderness’’.
16
(9) WHITE
PINE RANGE WILDERNESS.—Certain
17
Federal land managed by the Forest Service, com-
18
prising approximately 40,013 acres, as generally de-
19
picted on the map entitled ‘‘Western White Pine
20
County’’ and dated November 29, 2006, which shall
21
be known as the ‘‘White Pine Range Wilderness’’.
22
(10) SHELLBACK
WILDERNESS.—Certain
Fed-
23
eral land managed by the Forest Service, comprising
24
approximately 36,143 acres, as generally depicted on
25
the map entitled ‘‘Western White Pine County’’ and
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H.L.C.
276
1
dated November 29, 2006, which shall be known as
2
the ‘‘Shellback Wilderness’’.
3
(11) HIGH
WILDERNESS.—Certain
4
Federal land managed by the Forest Service, com-
5
prising approximately 121,497 acres, as generally
6
depicted on the map entitled ‘‘Eastern White Pine
7
County’’ and dated November 29, 2006, which shall
8
be known as the ‘‘High Schells Wilderness’’.
9
(12) BECKY
PEAK WILDERNESS.—Certain
Fed-
10
eral land managed by the Bureau of Land Manage-
11
ment, comprising approximately 18,119 acres, as
12
generally depicted on the map entitled ‘‘Northern
13
White Pine County’’ and dated November 29, 2006,
14
which shall be known as the ‘‘Becky Peak Wilder-
15
ness’’.
16
(13) GOSHUTE
CANYON WILDERNESS.—Certain
17
Federal land managed by the Bureau of Land Man-
18
agement, comprising approximately 42,544 acres, as
19
generally depicted on the map entitled ‘‘Northern
20
White Pine County’’ and dated November 29, 2006,
21
which shall be known as the ‘‘Goshute Canyon Wil-
22
derness’’.
23
(14)
BRISTLECONE
WILDERNESS.—Certain
24
Federal land managed by the Bureau of Land Man-
25
agement, comprising approximately 14,095 acres, as
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H.L.C.
277
1
generally depicted on the map entitled ‘‘Eastern
2
White Pine County’’ and dated November 29, 2006,
3
which shall be known as the ‘‘Bristlecone Wilder-
4
ness’’.
5
(b) BOUNDARY.—The boundary of any portion of a
6 wilderness area designated by subsection (a) that is bor7 dered by a road shall be at least 100 feet from the edge
8 of the road to allow public access.
9
(c) MAP AND LEGAL DESCRIPTION.—
10
(1) IN
soon as practicable after
11
the date of enactment of this Act, the Secretary
12
shall file a map and legal description of each wilder-
13
ness area designated by subsection (a) with the
14
Committee on Energy and Natural Resources of the
15
Senate and the Committee on Resources of the
16
House of Representatives.
17
(2) EFFECT.—Each map and legal description
18
shall have the same force and effect as if included
19
in this section, except that the Secretary may correct
20
clerical and typographical errors in the map or legal
21
description.
22
(3) AVAILABILITY.—Each map and legal de-
23
scription shall be on file and available for public in-
24
spection in the appropriate offices of—
25
(A) the Bureau of Land Management;
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H.L.C.
278
1
(B) the Forest Service; and
2
(C) the National Park Service.
3
(d) WITHDRAWAL.—Subject to valid existing rights,
4 the wilderness areas designated by subsection (a) are with5 drawn from—
6
(1) all forms of entry, appropriation, and dis-
7
posal under the public land laws;
8
(2) location, entry, and patent under the mining
9
laws; and
10
(3) operation of the mineral leasing and geo-
11
thermal leasing laws.
12
(e) MT. MORIAH WILDERNESS BOUNDARY ADJUST-
13
MENT.—The
boundary of the Mt. Moriah Wilderness es-
14 tablished under section 2(13) of the Nevada Wilderness
15 Protection Act of 1989 (16 U.S.C. 1132 note; Public Law
16 101–195) is adjusted to include only the land identified
17 as the ‘‘Mount Moriah Wilderness Area’’ and ‘‘Mount
18 Moriah Additions’’ on the map entitled ‘‘Eastern White
19 Pine County’’ and dated November 29, 2006.
20
SEC. 324. ADMINISTRATION.
21
(a) MANAGEMENT.—Subject to valid existing rights,
22 each area designated as wilderness by this subtitle shall
23 be administered by the Secretary in accordance with the
24 Wilderness Act (16 U.S.C. 1131 et seq.), except that—
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H.L.C.
279
1
(1) any reference in that Act to the effective
2
date shall be considered to be a reference to the date
3
of enactment of this Act; and
4
(2) any reference in that Act to the Secretary
5
of Agriculture shall be considered to be a reference
6
to the Secretary of Agriculture or the Secretary of
7
the Interior, as appropriate.
8
(b) LIVESTOCK.—Within the wilderness areas des-
9 ignated under this subtitle that are administered by the
10 Bureau of Land Management and the Forest Service, the
11 grazing of livestock in areas in which grazing is estab12 lished as of the date of enactment of this Act shall be
13 allowed to continue—
14
(1) subject to such reasonable regulations, poli-
15
cies, and practices that the Secretary considers nec-
16
essary; and
17
(2) consistent with section 4(d)(4) of the Wil-
18
derness Act (16 U.S.C. 1133(d)(4)), including the
19
guidelines set forth in Appendix A of House Report
20
101–405.
21
(c) INCORPORATION OF ACQUIRED LAND AND INTER-
22
ESTS.—Any
land or interest in land within the boundaries
23 of an area designated as wilderness by this subtitle that
24 is acquired by the United States after the date of enact25 ment of this Act shall be added to and administered as
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H.L.C.
280
1 part of the wilderness area within which the acquired land
2 or interest is located.
3
(d) WATER RIGHTS.—
4
(1) FINDINGS.—Congress finds that—
5
(A) the land designated as wilderness by
6
this subtitle is located—
7
(i) in the semiarid region of the Great
8
Basin; and
9
(ii) at the headwaters of the streams
10
and rivers on land with respect to which
11
there are few if any—
12
(I) actual or proposed water re-
13
source facilities located upstream; and
14
(II) opportunities for diversion,
15
storage, or other uses of water occur-
16
ring outside the land that would ad-
17
versely affect the wilderness values of
18
the land;
19
(B) the land designated as wilderness by
20
this subtitle is generally not suitable for use or
21
development of new water resource facilities;
22
and
23
(C) because of the unique nature of the
24
land designated as wilderness by this subtitle, it
25
is possible to provide for proper management
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H.L.C.
281
1
and protection of the wilderness and other val-
2
ues of land in ways different from those used
3
in other laws.
4
(2) PURPOSE.—The purpose of this section is
5
to protect the wilderness values of the land des-
6
ignated as wilderness by this subtitle by means other
7
than a federally reserved water right.
8
(3) STATUTORY
9
in
this subtitle—
10
(A) shall constitute or be construed to con-
11
stitute either an express or implied reservation
12
by the United States of any water or water
13
rights with respect to a wilderness designated
14
by this subtitle;
15
(B) shall affect any water rights in the
16
State (including any water rights held by the
17
United States) in existence on the date of en-
18
actment of this Act;
19
(C) shall be construed as establishing a
20
precedent with regard to any future wilderness
21
designations;
22
(D) shall affect the interpretation of, or
23
any designation made pursuant to, any other
24
Act; or
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282
1
(E) shall be construed as limiting, altering,
2
modifying, or amending any interstate compact
3
or equitable apportionment decree that appor-
4
tions water among and between the State and
5
other States.
6
(4) NEVADA
Secretary shall
7
follow the procedural and substantive requirements
8
of State law in order to obtain and hold any water
9
rights not in existence on the date of enactment of
10
this Act with respect to the wilderness areas des-
11
ignated by this subtitle.
12
(5) NEW
13
PROJECTS.—
(A) DEFINITION
14
CILITY.—In
15
source facility’’—
16
OF WATER RESOURCE FA-
this paragraph, the term ‘‘water re-
(i) means irrigation and pumping fa-
17
cilities,
18
works, aqueducts, canals, ditches, pipe-
19
lines, wells, hydropower projects, trans-
20
mission and other ancillary facilities, and
21
other water diversion, storage, and car-
22
riage structures; and
23
(B) RESTRICTION
25
water
conservation
ON NEW WATER RE-
SOURCE FACILITIES.—Except
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(ii) does not include wildlife guzzlers.
24
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283
1
vided in this title, on or after the date of enact-
2
ment of this Act, neither the President nor any
3
other officer, employee, or agent of the United
4
States shall fund, assist, authorize, or issue a
5
license or permit for the development of any
6
new water resource facility within a wilderness
7
area that is wholly or partially within the Coun-
8
ty.
9
SEC. 325. ADJACENT MANAGEMENT.
10
(a) IN GENERAL.—Congress does not intend for the
11 designation of wilderness in the State by this subtitle to
12 lead to the creation of protective perimeters or buffer
13 zones around any such wilderness area.
14
(b) NONWILDERNESS ACTIVITIES.—The fact that
15 nonwilderness activities or uses can be seen or heard from
16 areas within a wilderness designated under this subtitle
17 shall not preclude the conduct of those activities or uses
18 outside the boundary of the wilderness area.
19
SEC. 326. MILITARY OVERFLIGHTS.
20
Nothing in this subtitle restricts or precludes—
21
(1) low-level overflights of military aircraft over
22
the areas designated as wilderness by this subtitle,
23
including military overflights that can be seen or
24
heard within the wilderness areas;
25
(2) flight testing and evaluation; or
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H.L.C.
284
1
(3) the designation or creation of new units of
2
special use airspace, or the establishment of military
3
flight training routes, over the wilderness areas.
4
SEC. 327. NATIVE AMERICAN CULTURAL AND RELIGIOUS
5
USES.
6
Nothing in this subtitle shall be construed to dimin-
7 ish—
8
(1) the rights of any Indian tribe; or
9
(2) tribal rights regarding access to Federal
10
land for tribal activities, including spiritual, cultural,
11
and traditional food-gathering activities.
12
SEC. 328. RELEASE OF WILDERNESS STUDY AREAS.
13
(a) FINDING.—Congress finds that, for the purposes
14 of section 603 of the Federal Land Policy and Manage15 ment Act of 1976 (43 U.S.C. 1782), the Bureau of Land
16 Management land has been adequately studied for wilder17 ness designation in any portion of the wilderness study
18 areas or instant study areas—
19
(1) not designated as wilderness by section
20
l23(a), excluding the portion of the Goshute Can-
21
yon Wilderness Study Area located outside of the
22
County; and
23
(2) depicted as released on the maps entitled—
24
(A) ‘‘Eastern White Pine County’’ and
25
dated November 29, 2006;
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H.L.C.
285
1
(B) ‘‘Northern White Pine County’’ and
2
dated November 29, 2006;
3
(C) ‘‘Southern White Pine County’’ and
4
dated November 29, 2006; and
5
(D) ‘‘Western White Pine County’’ and
6
dated November 29, 2006.
7
(b) RELEASE.—
8
(1) IN
9
public land described in
subsection (a) that is not designated as wilderness
10
by this subtitle—
11
(A) is no longer subject to section 603(c)
12
of the Federal Land Policy and Management
13
Act of 1976 (43 U.S.C. 1782(c));
14
(B) shall be managed in accordance with—
15
(i) land management plans adopted
16
under section 202 of that Act (43 U.S.C.
17
1712); and
18
(ii) cooperative conservation agree-
19
ments in existence on the date of enact-
20
ment of this Act; and
21
(C) shall be subject to the Endangered
22
Species Act of 1973 (16 U.S.C. 1531 et seq.).
23
(2) EXCEPTION.—The requirements described
24
in paragraph (1) shall not apply to the portion of
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286
1
the Goshute Canyon Wilderness Study Area located
2
outside of the County.
3
SEC. 329. WILDLIFE MANAGEMENT.
4
(a) IN GENERAL.—In accordance with section
5 4(d)(7) of the Wilderness Act (16 U.S.C. 1133(d)(7)),
6 nothing in this subtitle affects the jurisdiction of the State
7 with respect to fish and wildlife management, including
8 the regulation of hunting, fishing, and trapping, in the wil9 derness areas designated by this subtitle.
10
(b) MANAGEMENT ACTIVITIES.—In furtherance of
11 the purposes and principles of the Wilderness Act (16
12 U.S.C. 1131 et seq.), the Secretary may conduct such
13 management activities as are necessary to maintain or re14 store fish and wildlife populations and habitats in the wil15 derness areas designated by this subtitle if those activities
16 are conducted—
17
(1) consistent with relevant wilderness manage-
18
ment plans; and
19
(2) in accordance with—
20
(A) the Wilderness Act (16 U.S.C. 1131 et
21
seq.); and
22
(B) appropriate policies such as those set
23
forth in Appendix B of House Report 101–405,
24
including the occasional and temporary use of
25
motorized vehicles if the use, as determined by
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287
1
the Secretary, would promote healthy, viable,
2
and more naturally distributed wildlife popu-
3
lations that would enhance wilderness values
4
and accomplish those tasks with the minimal
5
impact necessary to reasonably accomplish
6
those tasks.
7
(c) EXISTING ACTIVITIES.—Consistent with section
8 4(d)(1) of the Wilderness Act (16 U.S.C. 1133(d)(1)) and
9 in accordance with appropriate policies such as those set
10 forth in Appendix B of House Report 101–405, the State
11 may continue to use aircraft, including helicopters, to sur12 vey, capture, transplant, monitor, and provide water for
13 wildlife populations, including bighorn sheep, and feral
14 stock, feral horses, and feral burros.
15
(d) WILDLIFE WATER DEVELOPMENT PROJECTS.—
16 Subject to subsection (f), the Secretary shall authorize
17 structures and facilities, including existing structures and
18 facilities, for wildlife water development projects, including
19 guzzlers, in the wilderness areas designated by this sub20 title if—
21
(1) the structures and facilities will, as deter-
22
mined by the Secretary, enhance wilderness values
23
by promoting healthy, viable, and more naturally
24
distributed wildlife populations; and
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288
1
(2) the visual impacts of the structures and fa-
2
cilities on the wilderness areas can reasonably be
3
minimized.
4
(e) HUNTING, FISHING, AND TRAPPING.—
5
(1) IN
Secretary may des-
6
ignate by regulation areas in which, and establish
7
periods during which, for reasons of public safety,
8
administration, or compliance with applicable laws,
9
no hunting, fishing, or trapping will be permitted in
10
the wilderness areas designated by this subtitle.
11
(2) CONSULTATION.—Except in emergencies,
12
the Secretary shall consult with the appropriate
13
State agency before promulgating regulations under
14
paragraph (1).
15
(f) COOPERATIVE AGREEMENT.—
16
(1) IN
GENERAL.—The
State (including a des-
17
ignee of the State) may conduct wildlife manage-
18
ment activities in the wilderness areas designated by
19
this subtitle—
20
(A) in accordance with the terms and con-
21
ditions specified in the cooperative agreement
22
between the Secretary and the State, entitled
23
‘‘Memorandum of Understanding between the
24
Bureau of Land Management and the Nevada
25
Department of Wildlife Supplement No. 9,’’ and
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H.L.C.
289
1
signed November and December 2003, includ-
2
ing any amendments to the cooperative agree-
3
ment agreed to by the Secretary and the State;
4
and
5
(B) subject to all applicable laws and regu-
6
lations.
7
(2) REFERENCES.—
8
(A) CLARK
COUNTY.—For
purposes of this
9
subsection, any references to Clark County in
10
the cooperative agreement described in para-
11
graph (1)(A) shall be considered to be ref-
12
erences to White Pine County, Nevada.
13
(B) BUREAU
OF LAND MANAGEMENT.—
14
For purposes of this subsection, any references
15
to the Bureau of Land Management in the co-
16
operative agreement described in paragraph
17
(1)(A) shall also be considered to be references
18
to the Forest Service.
19
SEC. 330. WILDFIRE, INSECT, AND DISEASE MANAGEMENT.
20
Consistent with section 4(d)(1) of the Wilderness Act
21 (16 U.S.C. 1133(d)(1)), the Secretary may take such
22 measures as may be necessary in the control of fire, in23 sects, and diseases, including coordination with a State or
24 local agency, as the Secretary deems appropriate.
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290
1
SEC. 331. CLIMATOLOGICAL DATA COLLECTION.
2
If the Secretary determines that hydrologic, meteoro-
3 logic, or climatological collection devices are appropriate
4 to further the scientific, educational, and conservation
5 purposes of the wilderness areas designated by this sub6 title, nothing in this subtitle precludes the installation and
7 maintenance of the collection devices within the wilderness
8 areas.
10
Subtitle C—Transfers of
Administrative Jurisdiction
11
SEC. 341. TRANSFER TO THE UNITED STATES FISH AND
9
12
WILDLIFE SERVICE.
13
(a) IN GENERAL.—Administrative jurisdiction over
14 the land described in subsection (b) is transferred from
15 the Bureau of Land Management to the United States
16 Fish and Wildlife Service for inclusion in the Ruby Lake
17 National Wildlife Refuge.
18
(b) DESCRIPTION
OF
LAND.—The parcel of land re-
19 ferred to in subsection (a) is approximately 645 acres of
20 land administered by the Bureau of Land Management
21 and identified on the map entitled ‘‘Ruby Lake Land
22 Transfer’’ and dated July 10, 2006, as ‘‘Lands to be
23 transferred to the Fish and Wildlife Service’’.
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H.L.C.
291
1
SEC. 342. TRANSFER TO THE BUREAU OF LAND MANAGE-
2
MENT.
3
(a) IN GENERAL.—Subject to subsection (c), admin-
4 istrative jurisdiction over the parcels of land described in
5 subsection (b) is transferred from the Forest Service to
6 the Bureau of Land Management.
7
(b) DESCRIPTION
OF
LAND.—The parcels of land re-
8 ferred to in subsection (a) are—
9
(1) the land administered by the Forest Service
10
and identified on the map entitled ‘‘Southern White
11
Pine County’’ and dated November 29, 2006, as
12
‘‘Withdrawal Area’’;
13
(2) the land administered by the Forest Service
14
and identified on the map entitled ‘‘Southern White
15
Pine County’’ and dated November 29, 2006, as
16
‘‘Highland Ridge Wilderness’’; and
17
(3) all other Federal land administered by the
18
Forest Service that is located adjacent to the High-
19
land Ridge Wilderness.
20
(c)
21
CONTINUATION
MENTS.—Any
OF
COOPERATIVE
AGREE-
existing Forest Service cooperative agree-
22 ment or permit in effect on the date of enactment of this
23 Act relating to a parcel of land to which administrative
24 jurisdiction is transferred by subsection (a) shall be con25 tinued by the Bureau of Land Management unless there
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H.L.C.
292
1 is reasonable cause to terminate the agreement or permit,
2 as determined by the Secretary.
3
(d) WITHDRAWAL.—Subject to valid existing rights,
4 all Federal land within the Withdrawal Area is withdrawn
5 from all forms of—
6
(1) entry, appropriation, or disposal under the
7
public land laws;
8
(2) location, entry, and patent under the mining
9
laws; and
10
(3) operation of the mineral laws, geothermal
11
leasing laws, and mineral materials laws.
12
(e) MOTORIZED
AND
MECHANICAL VEHICLES.—Use
13 of motorized and mechanical vehicles in the withdrawal
14 area designated by this subtitle shall be permitted only
15 on roads and trails designated for their use, unless the
16 use of those vehicles is needed—
17
(1) for administrative purposes; or
18
(2) to respond to an emergency.
19
SEC. 343. TRANSFER TO THE FOREST SERVICE.
20
(a) IN GENERAL.—Subject to subsection (c), admin-
21 istrative jurisdiction over the parcels of land described in
22 subsection (b) is transferred from the Bureau of Land
23 Management to the Forest Service.
24
(b) DESCRIPTION
OF
LAND.—The parcels of land re-
25 ferred to in subsection (a) are the approximately 5,799
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H.L.C.
293
1 acres of land administered by the Bureau of Land Man2 agement and identified on the map entitled ‘‘Western
3 White Pine County’’, dated November 29, 2006, as the
4 BLM Public Land Transfer to the US Forest Service.
5
6
(c)
CONTINUATION
MENTS.—Any
OF
COOPERATIVE
AGREE-
existing Bureau of Land Management coop-
7 erative agreement or permit in effect on the date of enact8 ment of this Act relating to a parcel of land to which ad9 ministrative jurisdiction is transferred by subsection (a)
10 shall be continued by the Forest Service unless there is
11 reasonable cause to terminate the agreement or permit,
12 as determined by the Secretary.
13
SEC. 344. AVAILABILITY OF MAP AND LEGAL DESCRIP-
14
TIONS.
15
The maps of the land transferred by this subtitle
16 shall be on file and available for public inspection in the
17 appropriate offices of—
18
(1) the Bureau of Land Management;
19
(2) the Forest Service;
20
(3) the National Park Service; and
21
(4) the United States Fish and Wildlife Service.
Subtitle D—Public Conveyances
22
23
SEC. 351. CONVEYANCE TO THE STATE OF NEVADA.
24
(a) CONVEYANCE.—Notwithstanding section 202 of
25 the Federal Land Policy and Management Act of 1976
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H.L.C.
294
1 (43 U.S.C. 1712), the Secretary shall convey to the State,
2 subject to valid existing rights, for no consideration, all
3 right, title, and interest of the United States in and to
4 the parcels of land described in subsection (b) if the State
5 and the County enter into a written agreement supporting
6 the conveyance.
7
(b) DESCRIPTION
OF
LAND.—The parcels of land re-
8 ferred to in subsection (a) are—
9
(1) the approximately 6,281 acres of Bureau of
10
Land Management land identified as ‘‘Steptoe Val-
11
ley Wildlife Management Area Expansion Proposal’’
12
on the map entitled ‘‘Ely, Nevada Area’’ and dated
13
November 29, 2006;
14
(2) the approximately 658 acres of Bureau of
15
Land Management land identified as ‘‘Ward Char-
16
coal Ovens Expansion’’ on the map entitled ‘‘Ely,
17
Nevada Area’’ and dated November 29, 2006; and
18
(3) the approximately 2,960 acres of Forest
19
Service identified as ‘‘Cave Lake State Park Expan-
20
sion’’ on the map entitled ‘‘Ely, Nevada Area’’ and
21
dated November 29, 2006.
22
(c) COSTS.—Any costs relating to a conveyance under
23 subsection (a), including costs for surveys and other ad24 ministrative costs, shall be paid by the State.
25
(d) USE OF LAND.—
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H.L.C.
295
1
(1) IN
GENERAL.—Any
parcel of land conveyed
2
to the State under subsection (a) shall be used only
3
for—
4
(A) the conservation of wildlife or natural
5
resources; or
6
(B) a public park.
7
(2) FACILITIES.—Any facility on a parcel of
8
land conveyed under subsection (a) shall be con-
9
structed and managed in a manner consistent with
10
the uses described in paragraph (1).
11
(e) REVERSION.—If a parcel of land conveyed under
12 subsection (a) is used in a manner that is inconsistent
13 with the uses described in subsection (d), the parcel of
14 land shall, at the discretion of the Secretary, revert to the
15 United States.
16
SEC. 352. CONVEYANCE TO WHITE PINE COUNTY, NEVADA.
17
(a) IN GENERAL.—Notwithstanding section 202 of
18 the Federal Land Policy and Management Act of 1976
19 (43 U.S.C. 1712), the Secretary shall convey to the Coun20 ty, without consideration, all right, title, and interest of
21 the United States in and to the parcels of land described
22 in subsection (b).
23
(b) DESCRIPTION
OF
LAND.—The parcels of land re-
24 ferred to in subsection (a) are—
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H.L.C.
296
1
(1) the approximately 1,551 acres of land iden-
2
tified on the map entitled ‘‘Ely, Nevada Area’’,
3
dated November 29, 2006, as the Airport Expan-
4
sion; and
5
(2) the approximately 202 acres of land identi-
6
fied on the map entitled ‘‘Ely, Nevada Area’’, dated
7
November 29, 2006, as the Industrial Park Expan-
8
sion.
9
(c) AUTHORIZED USES.—
10
(1) AIRPORT
parcel of land
11
described in subsection (b)(1) shall be used by the
12
County to expand the Ely Airport.
13
(2) INDUSTRIAL
PARK EXPANSION.—The
parcel
14
of land described in subsection (b)(2) shall be used
15
by the County to expand the White Pine County In-
16
dustrial Park.
17
(3) USE
18
OF CERTAIN LAND FOR NONRESIDEN-
TIAL DEVELOPMENT.—
19
(A) IN
GENERAL.—After
conveyance to the
20
County of the land described in subsection (b),
21
the County may sell, lease, or otherwise convey
22
any portion of the land conveyed for purposes
23
of nonresidential development relating to the
24
authorized uses described in paragraphs (1)
25
and (2).
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H.L.C.
297
1
(B) METHOD
OF SALE.—The
sale, lease,
2
or conveyance of land under subparagraph (A)
3
shall be—
4
(i) through a competitive bidding
5
process; and
6
(ii) for not less than fair market
7
value.
8
(C)
DISPOSITION
OF
PROCEEDS.—The
9
gross proceeds from the sale, lease, or convey-
10
ance of land under subparagraph (A) shall be
11
distributed in accordance with section l12.
12
(d) REVERSION.—If a parcel of land conveyed under
13 subsection (a) is used in a manner that is inconsistent
14 with the use described for the parcel in paragraph (1),
15 (2), or (3) of subsection (c), the parcel of land shall, at
16 the discretion of the Secretary, revert to the United
17 States.
Subtitle E—Silver State OffHighway Vehicle Trail
18
19
20
SEC. 355. SILVER STATE OFF-HIGHWAY VEHICLE TRAIL.
21
(a) STUDY.—
22
(1) IN
later than 3 years after
23
the date of enactment of this Act, the Secretary
24
shall complete a study of routes (with emphasis on
25
roads and trails in existence on the date of enact-
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298
1
ment of this Act) in accordance with the National
2
Environmental Policy Act of 1969 (42 U.S.C. 4321
3
et seq.) for the Silver State Off-Highway Vehicle
4
Trail (referred to in this section as the ‘‘Trail’’).
5
(2) PREFERRED
on the study
6
conducted under paragraph (1), the Secretary, in
7
consultation with the State, the County, and any in-
8
terested persons, shall identify the preferred route
9
for the Trail.
10
(b) DESIGNATION OF TRAIL.—
11
(1) IN
GENERAL.—Subject
to paragraph (2),
12
not later than 90 days after the date on which the
13
study is completed under subsection (a), the Sec-
14
retary shall designate the Trail.
15
(2) LIMITATIONS.—The Secretary shall des-
16
ignate the Trail only if the Secretary—
17
(A) determines that the route of the Trail
18
would not have significant negative impacts on
19
wildlife, natural or cultural resources, or tradi-
20
tional uses; and
21
(B) ensures that the Trail designation—
22
(i) is an effort to extend the Silver
23
State Off-Highway Vehicle Trail des-
24
ignated under section 401(b) of the Lin-
25
coln County Conservation, Recreation, and
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H.L.C.
299
1
Development Act of 2004 (16 U.S.C. 1244
2
note; Public Law 108–424); and
3
(ii) is limited to—
4
(I) 1 route that generally runs in
5
a north-south direction; and
6
(II) 1 potential spur running
7
west.
8
(c) MANAGEMENT.—
9
(1) IN
10
Secretary shall manage
the Trail in a manner that—
11
(A) is consistent with any motorized and
12
mechanized uses of the Trail that are author-
13
ized on the date of enactment of this Act under
14
applicable Federal and State laws (including
15
regulations);
16
(B) ensures the safety of the individuals
17
who use the Trail; and
18
(C) does not damage sensitive wildlife
19
habitat, natural, or cultural resources.
20
(2) MANAGEMENT
21
(A) IN
PLAN.—
GENERAL.—Not
later than 2 years
22
after the date of designation of the Trail, the
23
Secretary, in consultation with the State, the
24
County, and any other interested persons, shall
25
complete a management plan for the Trail.
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H.L.C.
300
1
(B) COMPONENTS.—The management plan
2
shall—
3
(i) describe the appropriate uses and
4
management of the Trail;
5
(ii) authorize the use of motorized and
6
mechanized vehicles on the Trail; and
7
(iii) describe actions carried out to pe-
8
riodically evaluate and manage the appro-
9
priate levels of use and location of the
10
Trail to minimize environmental impacts
11
and prevent damage to cultural resources
12
from the use of the Trail.
13
(3) MONITORING
14
(A) ANNUAL
15
shall annually assess—
ASSESSMENT.—The
Secretary
16
(i) the effects of the use of off-high-
17
way vehicles on the Trail to minimize envi-
18
ronmental impacts and prevent damage to
19
cultural resources from the use of the
20
Trail; and
21
(ii) in consultation with the Nevada
22
Department of Wildlife, the effects of the
23
Trail on wildlife and wildlife habitat to
24
minimize environmental impacts from the
25
use of the Trail.
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301
1
(B) CLOSURE.—The Secretary, in con-
2
sultation with the State and the County and
3
subject to subparagraph (C), may temporarily
4
close or permanently reroute a portion of the
5
Trail if the Secretary determines that—
6
(i) the Trail is having an adverse im-
7
pact on—
8
(I) wildlife habitats;
9
(II) natural resources;
10
(III) cultural resources; or
11
(IV) traditional uses;
12
(ii) the Trail threatens public safety;
13
(iii) closure of the Trail is necessary
14
to repair damage to the Trail; or
15
(iv) closure of the Trail is necessary
16
to repair resource damage.
17
(C) REROUTING.—Any portion of the Trail
18
that is temporarily closed may be permanently
19
rerouted along existing roads and trails on pub-
20
lic land open to motorized use if the Secretary
21
determines that rerouting the portion of the
22
Trail would not significantly increase or de-
23
crease the length of the Trail.
24
(D) NOTICE.—The Secretary shall provide
25
information to the public with respect to any
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H.L.C.
302
1
routes on the Trail that are closed under sub-
2
paragraph (B), including through the provision
3
of appropriate signage along the Trail.
4
(4) NOTICE
OF OPEN ROUTES.—The
Secretary
5
shall ensure that visitors to the Trail have access to
6
adequate notice relating to the routes on the Trail
7
that are open through—
8
(A) the provision of appropriate signage
9
along the Trail; and
10
(B) the distribution of maps, safety edu-
11
cation materials, and any other information
12
that the Secretary determines to be appro-
13
priate.
14
(d) NO EFFECT
15
TERESTS IN
ON
NON-FEDERAL LAND
AND
IN -
LAND.—Nothing in this section affects the
16 ownership or management of, or other rights relating to,
17 non-Federal land or interests in non-Federal land.
20
Subtitle F—Transfer of Land to Be
Held in Trust for the Ely Shoshone Tribe.
21
SEC. 361. TRANSFER OF LAND TO BE HELD IN TRUST FOR
18
19
22
THE ELY SHOSHONE TRIBE.
23
(a) IN GENERAL.—Subject to valid existing rights,
24 all right, title, and interest of the United States in and
25 to the land described in subsection (b)—
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303
1
(1) shall be held in trust by the United States
2
for the benefit of the Ely Shoshone Tribe (referred
3
to in this section as the ‘‘Tribe’’); and
4
(2) shall be part of the reservation of the Tribe.
5
(b) DESCRIPTION
OF
LAND.—The land referred to in
6 subsection (a) consists of parcels 1, 2, 3, and 4, totaling
7 the approximately 3,526 acres of land that are identified
8 on—
9
(1) the Ely, Nevada Area map dated November
10
29, 2006; and
11
(2) the Eastern White Pine County map dated
12
November 29, 2006, as the ‘‘Ely Shoshone Expan-
13
sion’’.
14
(c) SURVEY.—Not later than 180 days after the date
15 of enactment of this Act, the Bureau of Land Manage16 ment shall complete a survey of the boundary lines to es17 tablish the boundaries of the trust land.
18
(d) CONDITIONS.—
19
(1) GAMING.—Land taken into trust under sub-
20
section (a) shall not be—
21
(A) considered to have been taken into
22
trust for gaming (as that term is used in the
23
Indian Gaming Regulatory Act (25 U.S.C.
24
2701 et seq.)); and
25
(B) used for gaming.
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304
1
(2) TRUST
2
respect to the use of the land identified on the map
3
as ‘‘Ely Shoshone Expansion’’ and marked as ‘‘3’’,
4
the Tribe—
5
(A) shall limit the use of the surface of the
6
land to traditional and customary uses and
7
stewardship conservation for the benefit of the
8
Tribe; and
9
(B) shall not permit any permanent resi-
10
dential or recreational development on, or com-
11
mercial use of, the surface of the land, includ-
12
ing commercial development or gaming.
13
(3) THINNING;
LANDSCAPE
RESTORATION.—
14
With respect to land taken into trust under sub-
15
section (a), the Forest Service and the Bureau of
16
Land Management may, in consultation and coordi-
17
nation with the Tribe, carry out any thinning and
18
other landscape restoration work on the trust land
19
that is beneficial to the Tribe and the Forest Service
20
or the Bureau of Land Management.
Subtitle G—Eastern Nevada
Landscape Restoration Project.
21
22
23
SEC. 371. FINDINGS; PURPOSES.
24
(a) FINDINGS.—Congress finds that—
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305
1
(1) there is an increasing threat of wildfire in
2
the Great Basin;
3
(2) those wildfires—
4
(A) endanger homes and communities;
5
(B) damage or destroy watersheds and
6
soils; and
7
(C) pose a serious threat to the habitat of
8
threatened and endangered species;
9
(3) forest land and rangeland in the Great
10
Basin are degraded as a direct consequence of land
11
management practices (including practices to control
12
and prevent wildfires) that disrupt the occurrence of
13
frequent low-intensity fires that have periodically re-
14
moved flammable undergrowth; and
15
(4) additional scientific information is needed in
16
the Great Basin for—
17
(A) the design, implementation, and adap-
18
tation of landscape-scale restoration treatments;
19
and
20
(B) the improvement of wildfire manage-
21
ment technology and practices.
22
(b) PURPOSES.—The purposes of this subtitle are
23 to—
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306
1
(1) support the Great Basin Restoration Initia-
2
tive through the implementation of the Eastern Ne-
3
vada Landscape Restoration Project; and
4
(2) ensure resilient and healthy ecosystems in
5
the Great Basin by restoring native plant commu-
6
nities and natural mosaics on the landscape that
7
function within the parameters of natural fire re-
8
gimes.
9
SEC. 372. DEFINITIONS.
10
In this subtitle:
11
(1) INITIATIVE.—The term ‘‘Initiative’’ means
12
the Great Basin Restoration Initiative.
13
(2) PROJECT.—The term ‘‘Project’’ means the
14
Eastern Nevada Landscape Restoration Project au-
15
thorized under section l73(a).
16
(3) SECRETARIES.—The term ‘‘Secretaries’’
17
means the Secretary of Agriculture and the Sec-
18
retary of the Interior.
19
(4) STATE.—The term ‘‘State’’ means the State
20
21
of Nevada.
SEC. 373. RESTORATION PROJECT.
22
(a) IN GENERAL.—In accordance with all applicable
23 Federal laws, the Secretaries shall carry out the Eastern
24 Nevada Landscape Restoration Project to—
25
(1) implement the Initiative; and
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H.L.C.
307
1
(2) restore native rangelands and native wood-
2
land (including riparian and aspen communities) in
3
White Pine and Lincoln Counties in the State.
4
(b) GRANTS; COOPERATIVE AGREEMENT.—In car-
5 rying out the Project—
6
(1) the Secretaries may make grants to the
7
Eastern Nevada Landscape Coalition, the Great
8
Basin Institute, and other entities for the study and
9
restoration of rangeland and other land in the Great
10
Basin—
11
(A) to assist in—
12
(i) reducing hazardous fuels; and
13
(ii) restoring native rangeland and
14
woodland; and
15
(B) for other related purposes; and
16
(2) notwithstanding sections 6301 through
17
6308, of title 31, United States Code, the Director
18
of the Bureau of Land Management and the Chief
19
of the Forest Service may enter into an agreement
20
with the Eastern Nevada Landscape Coalition, the
21
Great Basin Institute, and other entities to provide
22
for the conduct of scientific analyses, hazardous
23
fuels and mechanical treatments, and related work.
24
(c) RESEARCH FACILITY.—The Secretaries may con-
25 duct a feasibility study on the potential establishment of
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H.L.C.
308
1 an interagency science center, including a research facility
2 and experimental rangeland in the eastern portion of the
3 State.
4
(d) FUNDING.—Section 4(e)(3)(A) of the Southern
5 Nevada Public Land Management Act of 1998 (Public
6 Law 105–263; 112 Stat. 2346; 116 Stat. 2007; 118 Stat.
7 2414) is amended—
8
(1) by redesignating clause (viii) as clause (ix);
9
and
10
(2) by inserting after clause (vii) the following:
11
‘‘(viii) to carry out the Eastern Ne-
12
vada Landscape Restoration Project in
13
White Pine County, Nevada and Lincoln
14
County, Nevada; and’’.
17
Subtitle H—Amendments to the
Southern Nevada Public Land
Management Act of 1998
18
SEC. 381. FINDINGS.
15
16
19
Section 2(a)(3) of the Southern Nevada Public Land
20 Management Act of 1998 (Public Law 105–263; 112 Stat.
21 2343) is amended by inserting ‘‘the Sloan Canyon Na22 tional Conservation Area,’’ before ‘‘and the Spring Moun23 tains’’.
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H.L.C.
309
1
SEC. 382. AVAILABILITY OF SPECIAL ACCOUNT.
2
Section 4(e) of the Southern Nevada Public Land
3 Management Act of 1998 (Public Law 105–263; 112 Stat.
4 2346; 116 Stat. 2007; 117 Stat. 1317; 118 Stat. 2414)
5 is amended—
6
(1) in paragraph (3)—
7
(A) in subparagraph (A)—
8
(i) by striking ‘‘may be expended’’
9
and inserting ‘‘shall be expended’’;
10
(ii) in clause (ii)—
11
(I) by inserting ‘‘, the Great
12
Basin National Park,’’ after ‘‘the Red
13
Rock Canyon National Conservation
14
Area’’;
15
(II) by inserting ‘‘and the Forest
16
Service’’ after ‘‘the Bureau of Land
17
Management’’; and
18
(III) by striking ‘‘Clark and Lin-
19
coln Counties’’ and inserting ‘‘Clark,
20
Lincoln, and White Pine Counties’’;
21
(iii) in clause (iii), by inserting ‘‘and
22
implementation’’ before ‘‘of a multispecies
23
habitat’’;
24
(iv) in clause (iv), by striking ‘‘Clark
25
and Lincoln Counties,’’ and inserting
26
‘‘Clark, Lincoln, and White Pine Counties
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H.L.C.
310
1
and Washoe County (subject to paragraph
2
(4)),’’;
3
(v) in clause (v), by striking ‘‘Clark
4
and
5
‘‘Clark, Lincoln, and White Pine Coun-
6
ties’’;
7
Lincoln
and
inserting
(vi) in clause (vii)—
8
(I) by striking ‘‘for development’’
9
and inserting ‘‘development’’; and
10
(II) by striking ‘‘and’’ at the end;
11
(vii) by redesignating clauses (viii)
12
and (ix) (as amended by section l73(d))
13
as clauses (x) and (xi), respectively; and
14
(viii) by inserting after clause (vii) the
15
following:
16
‘‘(viii) reimbursement of any costs in-
17
curred by the Bureau of Land Manage-
18
ment to clear debris from and protect land
19
that is—
20
‘‘(I)
located
in
the
disposal
21
boundary described in subsection (a);
22
and
23
‘‘(II)
24
21:12 Dec 07, 2006
reserved
for
affordable
housing;
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H.L.C.
311
1
‘‘(ix) development and implementation
2
of comprehensive, cost-effective, multijuris-
3
dictional hazardous fuels reduction and
4
wildfire prevention plans (including sus-
5
tainable biomass and biofuels energy devel-
6
opment and production activities) for the
7
Lake Tahoe Basin (to be developed in con-
8
junction with the Tahoe Regional Planning
9
Agency), the Carson Range in Douglas and
10
Washoe Counties and Carson City in the
11
State, and the Spring Mountains in the
12
State, that are—
13
‘‘(I) subject to approval by the
14
Secretary; and
15
‘‘(II) not more than 10 years in
16
duration;’’; and
17
(B) by inserting after subparagraph (C)
18
the following:
19
‘‘(D) TRANSFER
20
to such terms and conditions as the Secretary
21
may prescribe, and notwithstanding any other
22
provision of law—
23
‘‘(i) for amounts that have been au-
24
thorized for expenditure under subpara-
25
graph (A)(iv) but not transferred as of the
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H.L.C.
312
1
date of enactment of this subparagraph,
2
the Secretary shall, not later than 60 days
3
after a request for funds from the applica-
4
ble unit of local government or regional
5
governmental entity, transfer to the appli-
6
cable unit of local government or regional
7
governmental entity the amount authorized
8
for the expenditure; and
9
‘‘(ii)
expenditures
authorized
10
under subparagraph (A)(iv) that are ap-
11
proved by the Secretary, the Secretary
12
shall, not later than 60 days after a re-
13
quest for funds from the applicable unit of
14
local government or regional governmental
15
entity, transfer to the applicable unit of
16
local government or regional governmental
17
entity the amount approved for expendi-
18
ture.’’; and
19
(2) by adding at the end the following:
20
‘‘(4) LIMITATION
FOR WASHOE COUNTY.—Until
21
December 31, 2011, Washoe County shall be eligible
22
to nominate for expenditure amounts to acquire land
23
(not to exceed 250 acres) and develop 1 regional
24
park and natural area.’’.
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H.L.C.
313
4
Subtitle I—Amendments to the Lincoln
County
Conservation,
Recreation, and Development
Act of 2004
5
SEC. 391. DISPOSITION OF PROCEEDS.
1
2
3
6
Section 103(b)(2) of the Lincoln County Conserva-
7 tion, Recreation, and Development Act of 2004 (Public
8 Law 108–424; 118 Stat. 2405) is amended by inserting
9 ‘‘education, planning,’’ after ‘‘social services,’’.
Subtitle J—All American Canal
Projects
10
11
12
SEC. 395. ALL AMERICAN CANAL LINING PROJECT.
13
(a) DUTIES
OF THE
SECRETARY.—Notwithstanding
14 any other provision of law, upon the date of enactment
15 of this Act, the Secretary shall, without delay, carry out
16 the All American Canal Lining Project identified—
17
(1) as the preferred alternative in the record of
18
decision for that project, dated July 29, 1994; and
19
(2) in the allocation agreement allocating water
20
from the All American Canal Lining Project, entered
21
into as of October 10, 2003.
22
(b) DUTIES
23
(1) IN
COMMISSIONER
GENERAL.—Subject
OF
RECLAMATION.—
to paragraph (2), if
24
a State conducts a review or study of the implica-
25
tions of the All American Canal Lining Project as
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H.L.C.
314
1
carried out under subsection (a), upon request from
2
the Governor of the State, the Commissioner of Rec-
3
lamation shall cooperate with the State, to the ex-
4
tent practicable, in carrying out the review or study.
5
(2) RESTRICTION
OF
DELAY.—A
review or
6
study conducted by a State under paragraph (1)
7
shall not delay the carrying out by the Secretary of
8
the All American Canal Lining Project.
9
SEC. 396. REGULATED STORAGE WATER FACILITY.
10
11
(a) CONSTRUCTION, OPERATION, AND MAINTENANCE
OF
FACILITY.—Notwithstanding any other provision of
12 law, upon the date of enactment of this Act, the Secretary
13 shall, without delay, pursuant to the Act of January 1,
14 1927 (44 Stat. 1010, chapter 47) (commonly known as
15 the ‘‘River and Harbor Act of 1927’’), as amended, design
16 and provide for the construction, operation, and mainte17 nance of a regulated water storage facility (including all
18 incidental works that are reasonably necessary to operate
19 the storage facility) to provide additional storage capacity
20 to reduce nonstorable flows on the Colorado River below
21 Parker Dam.
22
(b) LOCATION
OF
FACILITY.—The storage facility
23 (including all incidental works) described in subsection (a)
24 shall be located at or near the All American Canal.
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1
SEC. 397. APPLICATION OF LAW.
2
The Treaty between the United States of America
3 and Mexico relating to the utilization of waters of the Col4 orado and Tijuana Rivers and of the Rio Grande, and sup5 plementary protocol signed November 14, 1944, signed at
6 Washington February 3, 1944 (59 Stat. 1219) is the ex7 clusive authority for identifying, considering, analyzing, or
8 addressing impacts occurring outside the boundary of the
9 United States of works constructed, acquired, or used
10 within the territorial limits of the United States.
11
TITLE IV—OTHER PROVISIONS
12
SEC. 401. TOBACCO PERSONAL USE QUANTITY EXCEPTION
13
TO NOT APPLY TO DELIVERY SALES.
14
(a) DEFINITIONS.—Section 801 of the Tariff Act of
15 1930 (19 U.S.C. 1681) is amended by adding at the end
16 the following:
17
‘‘(3) DELIVERY
term ‘delivery sale’
18
means any sale of cigarettes or a smokeless tobacco
19
product to a consumer if—
20
‘‘(A) the consumer submits the order for
21
such sale by means of a telephone or other
22
method of voice transmission, the mail, or the
23
Internet or other online service, or the seller is
24
otherwise not in the physical presence of the
25
buyer when the request for purchase or order is
26
made; or
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H.L.C.
316
1
‘‘(B) the cigarettes or smokeless tobacco
2
product is delivered by use of a common carrier,
3
private delivery service, or the mail, or the sell-
4
er is not in the physical presence of the buyer
5
when the buyer obtains personal possession of
6
the delivered cigarettes or smokeless tobacco
7
product.’’.
8
9
(b) INAPPLICABILITY
QUIREMENTS FOR
ENTRY
EXEMPTIONS FROM RE-
OF
OF
CERTAIN CIGARETTES
AND
10 SMOKELESS TOBACCO PRODUCTS.—Section 802(b)(1) of
11 the Tariff Act of 1930 (19 U.S.C. 1681a(b)(1)) is amend12 ed by adding at the end the following new sentence: ‘‘The
13 preceding sentence shall not apply to any cigarettes or
14 smokeless tobacco products sold in connection with a deliv15 ery sale.’’.
16
(c) STATE ACCESS
TO
CUSTOMS CERTIFICATIONS.—
17 Section 802 of the Tariff Act of 1930 (19 U.S.C. 1681a)
18 is amended by adding at the end the following new sub19 section:
20
‘‘(d)
21
CATIONS.—A
STATE
ACCESS
TO
CUSTOMS
CERTIFI-
State, through its Attorney General, shall be
22 entitled to obtain copies of any certification required under
23 subsection (c) directly—
24
‘‘(1) upon request to the agency of the United
25
States responsible for collecting such certification; or
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H.L.C.
317
1
‘‘(2) upon request to the importer, manufac-
2
turer, or authorized official of such importer or
3
manufacturer.’’.
4
(d) ENFORCEMENT PROVISIONS.—Section 803(b) of
5 the Tariff Act of 1930 (19 U.S.C. 1681b(b)) is amend6 ed—
7
(1) in the first sentence, by inserting before the
8
period at the end the following: ‘‘, or to any State
9
in which such tobacco product, cigarette papers, or
10
tube is found’’; and
11
(2) in the second sentence, by inserting ‘‘, or to
12
any State,’’ after ‘‘the United States’’.
13
(e) INCLUSION OF SMOKELESS TOBACCO.—
14
(1) Sections 802 and 803(a) of the Tariff Act
15
of 1930 (19 U.S.C. 1681a and 1681b(a)) (other
16
than the last sentence of section 802(b)(1), as added
17
by subsection (b) of this section) are further amend-
18
ed by inserting ‘‘or smokeless tobacco products’’
19
after ‘‘cigarettes’’ each place it appears.
20
(2) Section 802 of such Act is further amend-
21
ed—
22
(A) in subsection (a)—
23
(i) in paragraph (1), by inserting ‘‘or
24
section 4 of the Comprehensive Smokeless
25
Tobacco Health Education Act of 1986
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318
1
(15 U.S.C. 4403), as the case may be’’
2
after ‘‘section 7 of the Federal Cigarette
3
Labeling and Advertising Act (15 U.S.C.
4
1335a)’’;
5
(ii) in paragraph (2), by inserting ‘‘or
6
section 3 of the Comprehensive Smokeless
7
Tobacco Health Education Act of 1986
8
(15 U.S.C. 4402), as the case may be,’’
9
after ‘‘section 4 of the Federal Cigarette
10
Labeling and Advertising Act (15 U.S.C.
11
1333)’’; and
12
(iii) in paragraph (3), by inserting ‘‘or
13
section 3(d) of the Comprehensive Smoke-
14
less Tobacco Health Education Act of
15
1986 (15 U.S.C. 4402(d)), as the case
16
may be’’ after ‘‘section 4(c) of the Federal
17
Cigarette Labeling and Advertising Act
18
(15 U.S.C. 1333(c))’’;
19
(B) in subsection (b)—
20
(i) in the heading of paragraph (1),
21
by inserting ‘‘OR
22
PRODUCTS’’
23
after ‘‘CIGARETTES’’; and
and (3), by inserting ‘‘OR
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TOBACCO
(ii) in the heading of paragraphs (2)
24
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319
1
BACCO PRODUCTS’’
2
and
3
(C) in subsection (c)—
4
(i) in the heading, by inserting ‘‘OR
5
SMOKELESS
6
‘‘CIGARETTE’’;
TOBACCO
PRODUCT’’
after
7
(ii) in paragraph (1), by inserting ‘‘or
8
section 4 of the Comprehensive Smokeless
9
Tobacco Health Education Act of 1986
10
(15 U.S.C. 4403), as the case may be’’
11
after ‘‘section 7 of the Federal Cigarette
12
Labeling and Advertising Act (15 U.S.C.
13
1335a)’’;
14
(iii) in paragraph (2)(A), by inserting
15
‘‘or section 3 of the Comprehensive Smoke-
16
less Tobacco Health Education Act of
17
1986 (15 U.S.C. 4402), as the case may
18
be,’’ after ‘‘section 4 of the Federal Ciga-
19
rette Labeling and Advertising Act (15
20
U.S.C. 1333)’’; and
21
(iv) in paragraph (2)(B), by inserting
22
‘‘or section 3(d) of the Comprehensive
23
Smokeless Tobacco Health Education Act
24
of 1986 (15 U.S.C. 4402(d)), as the case
25
may be’’ after ‘‘section 4(c) of the Federal
f:\V9\120706\120706.200.xml
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H.L.C.
320
1
Cigarette Labeling and Advertising Act
2
(15 U.S.C. 1333(c))’’.
3
(3) Section 803(b) of such Act, as amended by
4
subsection (d)(1) of this section, is further amended
5
by inserting ‘‘, or any smokeless tobacco product,’’
6
after ‘‘or tube’’ the first place it appears.
7
(4)(A) The heading of title VIII of such Act is
8
amended by inserting ‘‘AND SMOKELESS TO-
9
BACCO
PRODUCTS’’
‘‘CIGA-
RETTES’’.
10
11
(B) The heading of section 802 of such Act is
12
amended by inserting ‘‘AND
13
BACCO PRODUCTS’’
14
(f) APPLICATION
15
after
LANDINGS OF
SMOKELESS
TO-
after ‘‘CIGARETTES’’.
OF
CIVIL PENALTIES
TOBACCO PRODUCTS SOLD
IN A
TO
RE -
DELIVERY
16 SALE.—
17
(1) IN
5761 of the Internal
18
Revenue Code of 1986 (relating to civil penalties) is
19
amended by redesignating subsections (d) and (e) as
20
subsections (e) and (f), respectively, and inserting
21
after subsection (c) the following new subsection:
22
‘‘(d) PERSONAL USE QUANTITIES.—
23
‘‘(1) IN
24
21:12 Dec 07, 2006
GENERAL.—No
quantity of tobacco
products other than the quantity referred to in para-
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GENERAL.—Section
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H.L.C.
321
1
graph (2) may be relanded or received as a personal
2
use quantity.
3
‘‘(2) EXCEPTION
4
TITY.—Subsection
5
apply to any person who relands or receives tobacco
6
products in the quantity allowed entry free of tax
7
and duty under chapter 98 of the Harmonized Tariff
8
Schedule of the United States, and such person may
9
voluntarily relinquish to the Secretary at the time of
10
entry any excess of such quantity without incurring
11
the penalty under subsection (c).
12
‘‘(3) SPECIAL
13
‘‘(A) IN
(c) and section 5754 shall not
RULE FOR DELIVERY SALES.—
GENERAL.—Paragraph
(2) shall
14
not apply to any tobacco product sold in con-
15
nection with a delivery sale.
16
‘‘(B) DELIVERY
SALE.—For
purposes of
17
subparagraph (A), the term ‘delivery sale’
18
means any sale of a tobacco product to a con-
19
sumer if—
20
‘‘(i) the consumer submits the order
21
for such sale by means of a telephone or
22
other method of voice transmission, the
23
mail, or the Internet or other online serv-
24
ice, or the seller is otherwise not in the
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FOR PERSONAL USE QUAN-
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H.L.C.
322
1
physical presence of the buyer when the re-
2
quest for purchase or order is made, or
3
‘‘(ii) the tobacco product is delivered
4
by use of a common carrier, private deliv-
5
ery service, or the mail, or the seller is not
6
in the physical presence of the buyer when
7
the buyer obtains personal possession of
8
the tobacco product.’’.
9
(2) CONFORMING
AMENDMENTS.—
10
(A) Subsection (c) of section 5761 of such
11
Code is amended by striking the last two sen-
12
tences.
13
(B) Paragraph (1) of section 5754(c) of
14
such Code is amended by striking ‘‘section
15
5761(c)’’ and inserting ‘‘section 5761(d)’’.
16
(g) EFFECTIVE DATE.—The amendments made by
17 this section shall apply with respect to goods entered, or
18 withdrawn from warehouse for consumption, on or after
19 the 15th day after the date of the enactment of this Act.
20
SEC. 402. ETHANOL TARIFF SCHEDULE.
21
Headings 9901.00.50 and 9901.00.52 of the Har-
22 monized Tariff Schedule of the United States are each
23 amended in the effective period column by striking ‘‘10/
24 1/2007’’ each place it appears and inserting ‘‘1/1/2009’’.
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H.L.C.
323
1
SEC. 403. WITHDRAWAL OF CERTAIN FEDERAL LAND AND
2
INTERESTS
3
FROM
4
UNDER THE MINING LAWS AND DISPOSITION
5
UNDER THE MINERAL AND GEOTHERMAL
6
LEASING LAWS.
7
CERTAIN
LOCATION,
FEDERAL
ENTRY,
AND
LAND
PATENT
(a) DEFINITIONS.—In this section:
8
(1) BUREAU
OF LAND MANAGEMENT LAND.—
9
The term ‘‘Bureau of Land Management land’’
10
means the Bureau of Land Management land and
11
any federally-owned minerals located south of the
12
Blackfeet Indian Reservation and east of the Lewis
13
and Clark National Forest to the eastern edge of R.
14
8 W., beginning in T. 29 N. down to and including
15
T. 19 N. and all of T. 18 N., R. 7 W.
16
(2) ELIGIBLE
FEDERAL LAND.—The
term ‘‘eli-
17
gible Federal land’’ means the Bureau of Land Man-
18
agement land and the Forest Service land, as gen-
19
erally depicted on the map.
20
(3) FOREST
21
Service land’’ means—
SERVICE LAND.—The
term ‘‘Forest
22
(A) the Forest Service land and any feder-
23
ally-owned minerals located in the Rocky Moun-
24
tain Division of the Lewis and Clark National
25
Forest, including the approximately 356,111
26
acres of land made unavailable for leasing by
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December 7, 2006 (9:12 p.m.)
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IN
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H.L.C.
324
1
the August 28, 1997, Record of Decision for
2
the Lewis and Clark National Forest Oil and
3
Gas Leasing Environmental Impact Statement
4
and that is located from T. 31 N. to T. 16 N.
5
and R. 13 W. to R. 7 W.; and
6
(B) the Forest Service land and any feder-
7
ally-owned minerals located within the Badger
8
Two Medicine area of the Flathead National
9
Forest, including—
10
(i) the land located in T. 29 N. from
11
the western edge of R. 16 W. to the east-
12
ern edge of R. 13 W.; and
13
(ii) the land located in T. 28 N., Rs.
14
13 and 14 W.
15
(4) MAP.—The term ‘‘map’’ means the map en-
16
titled ‘‘Rocky Mountain Front Mineral Withdrawal
17
Area’’ and dated December 31, 2006.
18
(b) WITHDRAWAL.—
19
(1) IN
to valid existing
20
rights, the eligible Federal land (including any inter-
21
est in the eligible Federal land) is withdrawn from—
22
(A) all forms of location, entry, and patent
23
under the mining laws; and
24
(B) disposition under all laws relating to
25
mineral and geothermal leasing.
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December 7, 2006 (9:12 p.m.)
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GENERAL.—Subject
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H.L.C.
325
1
(2) AVAILABILITY
map shall be
2
on file and available for inspection in the Office of
3
the Chief of the Forest Service.
4
(c) TAX INCENTIVE
5
ERAL AND
6
TIES.—
FOR
SALE
GEOTHERMAL RIGHTS
TO
OF
EXISTING MIN-
TAX-EXEMPT ENTI-
7
(1) EXCLUSION.—For purposes of the Internal
8
Revenue Code of 1986, gross income shall not in-
9
clude 25 percent of the qualifying gain from a con-
10
servation sale of a qualifying mineral or geothermal
11
interest.
12
(2) QUALIFYING
GAIN.—For
purposes of this
13
subsection, the term ‘‘qualifying gain’’ means any
14
gain which would be recognized as long-term capital
15
gain under such Code.
16
(3) CONSERVATION
SALE.—For
purposes of
17
this subsection, the term ‘‘conservation sale’’ means
18
a sale which meets the following requirements:
19
(A) TRANSFEREE
IS AN ELIGIBLE ENTI-
20
TY.—The
21
or geothermal interest is an eligible entity.
22
transferee of the qualifying mineral
(B) QUALIFYING
LETTER OF INTENT RE-
23
QUIRED.—At
24
feree provides the taxpayer with a qualifying
25
letter of intent.
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
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OF MAP.—The
21:12 Dec 07, 2006
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H.L.C.
326
1
(C)
2
SALES.—The
3
order of condemnation or eminent domain.
4
(4) QUALIFYING
5
TEREST.—For
6
TO
CERTAIN
sale is not made pursuant to an
MINERAL OR GEOTHERMAL IN-
purposes of this subsection—
(A) IN
GENERAL.—The
term ‘‘qualifying
7
mineral or geothermal interest’’ means an inter-
8
est in any mineral or geothermal deposit located
9
on eligible Federal land which constitutes a tax-
10
payer’s entire interest in such deposit.
11
(B) ENTIRE
12
INTEREST.—For
purposes of
subparagraph (A)—
13
(i) an interest in any mineral or geo-
14
thermal deposit is not a taxpayer’s entire
15
interest if such interest in such mineral or
16
geothermal deposit was divided in order to
17
avoid the requirements of such subpara-
18
graph or section 170(f)(3)(A) of such
19
Code, and
20
(ii) a taxpayer’s entire interest in such
21
deposit does not fail to satisfy such sub-
22
paragraph solely because the taxpayer has
23
retained an interest in other deposits, even
24
if the other deposits are contiguous with
25
such certain deposit and were acquired by
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
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H.L.C.
327
1
the taxpayer along with such certain de-
2
posit in a single conveyance.
3
(5) OTHER
4
purposes of this
subsection—
5
(A) ELIGIBLE
6
ENTITY.—The
term ‘‘eligible
entity’’ means—
7
(i) a governmental unit referred to in
8
section 170(c)(1) of such Code, or an
9
agency or department thereof operated pri-
10
marily for 1 or more of the conservation
11
purposes specified in clause (i), (ii), or (iii)
12
of section 170(h)(4)(A) of such Code, or
13
(ii) an entity which is—
14
(I)
described
in
section
15
170(b)(1)(A)(vi)
16
170(h)(3)(B) of such Code, and
or
section
17
(II) organized and at all times
18
operated primarily for 1 or more of
19
the conservation purposes specified in
20
clause (i), (ii), or (iii) of section
21
170(h)(4)(A) of such Code.
22
(B) QUALIFYING
LETTER OF INTENT.—
23
The term ‘‘qualifying letter of intent’’ means a
24
written letter of intent which includes the fol-
25
lowing statement: ‘‘The transferee’s intent is
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December 7, 2006 (9:12 p.m.)
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DEFINITIONS.—For
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H.L.C.
328
1
that this acquisition will serve 1 or more of the
2
conservation purposes specified in clause (i),
3
(ii), or (iii) of section 170(h)(4)(A) of the Inter-
4
nal Revenue Code of 1986, that the transferee’s
5
use of the deposits so acquired will be con-
6
sistent with section 170(h)(5) of such Code,
7
and that the use of the deposits will continue to
8
be consistent with such section, even if owner-
9
ship or possession of such deposits is subse-
10
quently transferred to another person.’’.
11
(6) TAX
12
(A) IN
GENERAL.—A
tax is hereby im-
13
posed on any subsequent transfer by an eligible
14
entity of ownership or possession, whether by
15
sale, exchange, or lease, of an interest acquired
16
directly or indirectly in—
17
(i) a conservation sale described in
18
paragraph (1), or
19
(ii) a transfer described in clause (i),
20
(ii), or (iii) of subparagraph (D).
21
(B) AMOUNT
OF TAX.—The
amount of tax
22
imposed by subparagraph (A) on any transfer
23
shall be equal to the sum of—
24
(i) 20 percent of the fair market value
25
(determined at the time of the transfer) of
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December 7, 2006 (9:12 p.m.)
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ON SUBSEQUENT TRANSFERS.—
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H.L.C.
329
1
the interest the ownership or possession of
2
which is transferred, plus
3
(ii) the product of—
4
(I) the highest rate of tax speci-
5
fied in section 11 of such Code, times
6
(II) any gain or income realized
7
by the transferor as a result of the
8
transfer.
9
(C) LIABILITY.—The tax imposed by sub-
10
paragraph (A) shall be paid by the transferor.
11
(D) RELIEF
person
12
(otherwise liable for any tax imposed by sub-
13
paragraph (A)) shall be relieved of liability for
14
the tax imposed by subparagraph (A) with re-
15
spect to any transfer if—
16
(i) the transferee is an eligible entity
17
which provides such person, at the time of
18
transfer, a qualifying letter of intent,
19
(ii) in any case where the transferee is
20
not an eligible entity, it is established to
21
the satisfaction of the Secretary of the
22
Treasury, that the transfer of ownership or
23
possession, as the case may be, will be con-
24
sistent with section 170(h)(5) of such
25
Code, and the transferee provides such
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
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FROM LIABILITY.—The
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H.L.C.
330
1
person, at the time of transfer, a quali-
2
fying letter of intent, or
3
(iii) tax has previously been paid
4
under this paragraph as a result of a prior
5
transfer of ownership or possession of the
6
same interest.
7
(E) ADMINISTRATIVE
8
purposes of subtitle F of such Code, the taxes
9
imposed by this paragraph shall be treated as
10
excise taxes with respect to which the deficiency
11
procedures of such subtitle apply.
12
(7) REPORTING.—The Secretary of the Treas-
13
ury may require such reporting as may be necessary
14
or appropriate to further the purpose under this
15
subsection that any conservation use be in per-
16
petuity.
17
(d) EFFECTIVE DATES.—
18
(1) MORATORIUM.—Subsection (b) shall take
19
effect on the date of the enactment of this Act.
20
(2) TAX
INCENTIVE.—Subsection
(c) shall
21
apply to sales occurring on or after the date of the
22
enactment of this Act.
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December 7, 2006 (9:12 p.m.)
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PROVISIONS.—For
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H.L.C.
331
1
SEC. 404. CONTINUING ELIGIBILITY FOR CERTAIN STU-
2
DENTS
3
SCHOOL CHOICE PROGRAM.
4
UNDER
DISTRICT
OF
COLUMBIA
(a) IN GENERAL.—Section 307(a)(4) of the DC
5 School Choice Incentive Act of 2003 (sec. 38—
6 1851.06(a)(4), D.C. Official Code) is amended by striking
7 ‘‘200 percent’’ and inserting the following: ‘‘200 percent
8 (or, in the case of an eligible student whose first year of
9 participation in the program is an academic year ending
10 in June 2005 or June 2006 and whose second or suc11 ceeding year is an academic year ending on or before June
12 2009, 300 percent)’’.
13
(b) EFFECTIVE DATE.—The amendment made by
14 subsection (a) shall take effect as if included in the enact15 ment of the DC School Choice Incentive Act of 2003.
16
SEC. 405. STUDY ON ESTABLISHING UNIFORM NATIONAL
17
DATABASE ON ELDER ABUSE.
18
(a) STUDY.—
19
(1) IN
Secretary of Health and
20
Human Services, in consultation with the Attorney
21
General, shall conduct a study on establishing a uni-
22
form national database on elder abuse.
23
(2) ISSUES
24
STUDIED.—The
study conducted
under paragraph (1) may consider the following:
25
(A) Current methodologies used for col-
26
lecting data on elder abuse, including a deter-
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H.L.C.
332
1
mination of the shortcomings, strengths, and
2
commonalities of existing data collection efforts
3
and reporting forms, and how a uniform na-
4
tional database would capitalize on such efforts.
5
(B) The process by which uniform national
6
standards for reporting on elder abuse could be
7
implemented, including the identification and
8
involvement of necessary stakeholders, financial
9
resources needed, timelines, and the treatment
10
of existing standards with respect to elder
11
abuse.
12
(C) Potential conflicts in Federal, State,
13
and local laws, and enforcement and jurisdic-
14
tional issues that could occur as a result of the
15
creation of a uniform national database on elder
16
abuse.
17
(D) The scope, purpose, and variability of
18
existing definitions used by Federal, State, and
19
local agencies with respect to elder abuse.
20
(3) DURATION.—The study conducted under
21
paragraph (1) shall be conducted for a period not to
22
exceed 2 years.
23
(b) REPORT.—Not later than 180 days after the com-
24 pletion of the study conducted under subsection (a)(1), the
25 Secretary of Health and Human Services shall submit a
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December 7, 2006 (9:12 p.m.)
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H.L.C.
333
1 report to the Committee on Finance of the Senate and
2 the Committee on Ways and Means of the House of Rep3 resentatives containing the findings of the study, together
4 with recommendations on how to implement a uniform na5 tional database on elder abuse.
6
(c) AUTHORIZATION.—There are authorized to be ap-
7 propriated to carry out this section, $500,000 for each of
8 fiscal years 2007 and 2008.
9
SEC. 406. TEMPORARY DUTY REDUCTIONS FOR CERTAIN
10
COTTON SHIRTING FABRIC.
11
(a) CERTAIN COTTON SHIRTING FABRICS.—
12
(1) IN
II of chapter 99
13
of the Harmonized Tariff Schedule of the United
14
States is amended by inserting in numerical se-
15
quence the following new headings:
‘‘
9902.52.08
9902.52.09
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December 7, 2006 (9:12 p.m.)
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GENERAL.—Subchapter
21:12 Dec 07, 2006
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Woven fabrics of cotton, of a type described in subheading 5208.21, of average yarn number exceeding 135
metric, other than fabrics provided
for in headings 9902.52.20 through
9902.52.31, certified by the importer
to be suitable for use in men’s and
boys’ shirts, the foregoing imported
by or for the benefit of a manufacturer of men’s and boys’ shirts under
the terms of U.S. Notes 18 and 19 of
this subchapter. .................................
Free
No change
No change
On or before
12/31/2009
Woven fabrics of cotton, of a type described in subheading 5208.22, of average yarn number exceeding 135
metric, other than fabrics provided
for in headings 9902.52.20 through
9902.52.31, certified by the importer
to be suitable for use in men’s and
boys’ shirts, the foregoing imported
by or for the benefit of a manufacturer of men’s and boys’ shirts under
the terms of U.S. Notes 18 and 19 of
this subchapter. .................................
Free
No change
No change
On or before
12/31/2009
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H.L.C.
334
9902.52.10
9902.52.11
9902.52.12
9902.52.13
9902.52.14
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
VerDate 0ct 09 2002
21:12 Dec 07, 2006
Jkt 000000
Woven fabrics of cotton, of a type described in subheading 5208.29, of average yarn number exceeding 135
metric, other than fabrics provided
for in headings 9902.52.20 through
9902.52.31, certified by the importer
to be suitable for use in men’s and
boys’ shirts, the foregoing imported
by or for the benefit of a manufacturer of men’s and boys’ shirts under
the terms of U.S. Notes 18 and 19 of
this subchapter. .................................
Free
No change
No change
On or before
12/31/2009
Woven fabrics of cotton, of a type described in subheading 5208.31, of average yarn number exceeding 135
metric, other than fabrics provided
for in headings 9902.52.20 through
9902.52.31, certified by the importer
to be suitable for use in men’s and
boys’ shirts, the foregoing imported
by or for the benefit of a manufacturer of men’s and boys’ shirts under
the terms of U.S. Notes 18 and 19 of
this subchapter. .................................
Free
No change
No change
On or before
12/31/2009
Woven fabrics of cotton, of a type described in subheading 5208.32, of average yarn number exceeding 135
metric, other than fabrics provided
for in headings 9902.52.20 through
9902.52.31, certified by the importer
to be suitable for use in men’s and
boys’ shirts, the foregoing imported
by or for the benefit of a manufacturer of men’s and boys’ shirts under
the terms of U.S. Notes 18 and 19 of
this subchapter. .................................
Free
No change
No change
On or before
12/31/2009
Woven fabrics of cotton, of a type described in subheading 5208.39, of average yarn number exceeding 135
metric, other than fabrics provided
for in headings 9902.52.20 through
9902.52.31, certified by the importer
to be suitable for use in men’s and
boys’ shirts, the foregoing imported
by or for the benefit of a manufacturer of men’s and boys’ shirts under
the terms of U.S. Notes 18 and 19 of
this subchapter. .................................
Free
No change
No change
On or before
12/31/2009
Woven fabrics of cotton, of a type described in subheading 5208.41, of average yarn number exceeding 135
metric, other than fabrics provided
for in headings 9902.52.20 through
9902.52.31, certified by the importer
to be suitable for use in men’s and
boys’ shirts, the foregoing imported
by or for the benefit of a manufacturer of men’s and boys’ shirts under
the terms of U.S. Notes 18 and 19 of
this subchapter. .................................
Free
No change
No change
On or before
12/31/2009
(357278|6)
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H.L.C.
335
9902.52.15
9902.52.16
9902.52.17
9902.52.18
9902.52.19
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
VerDate 0ct 09 2002
21:12 Dec 07, 2006
Jkt 000000
Woven fabrics of cotton, of a type described in subheading 5208.42, of average yarn number exceeding 135
metric, other than fabrics provided
for in headings 9902.52.20 through
9902.52.31, certified by the importer
to be suitable for use in men’s and
boys’ shirts, the foregoing imported
by or for the benefit of a manufacturer of men’s and boys’ shirts under
the terms of U.S. Notes 18 and 19 of
this subchapter. .................................
Free
No change
No change
On or before
12/31/2009
Woven fabrics of cotton, of a type described in subheading 5208.49, of average yarn number exceeding 135
metric, other than fabrics provided
for in headings 9902.52.20 through
9902.52.31, certified by the importer
to be suitable for use in men’s and
boys’ shirts, the foregoing imported
by or for the benefit of a manufacturer of men’s and boys’ shirts under
the terms of U.S. Notes 18 and 19 of
this subchapter. .................................
Free
No change
No change
On or before
12/31/2009
Woven fabrics of cotton, of a type described in subheading 5208.51, of average yarn number exceeding 135
metric, other than fabrics provided
for in headings 9902.52.20 through
9902.52.31, certified by the importer
to be suitable for use in men’s and
boys’ shirts, the foregoing imported
by or for the benefit of a manufacturer of men’s and boys’ shirts under
the terms of U.S. Notes 18 and 19 of
this subchapter. .................................
Free
No change
No change
On or before
12/31/2009
Woven fabrics of cotton, of a type described in subheading 5208.52, of average yarn number exceeding 135
metric, other than fabrics provided
for in headings 9902.52.20 through
9902.52.31, certified by the importer
to be suitable for use in men’s and
boys’ shirts, the foregoing imported
by or for the benefit of a manufacturer of men’s and boys’ shirts under
the terms of U.S. Notes 18 and 19 of
this subchapter. .................................
Free
No change
No change
On or before
12/31/2009
Woven fabrics of cotton, of a type described in subheading 5208.59, of average yarn number exceeding 135
metric, other than fabrics provided
for in headings 9902.52.20 through
9902.52.31, certified by the importer
to be suitable for use in men’s and
boys’ shirts, the foregoing imported
by or for the benefit of a manufacturer of men’s and boys’ shirts under
the terms of U.S. Notes 18 and 19 of
this subchapter. .................................
Free
No change
No change
On or before
12/31/2009
(357278|6)
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H.L.C.
336
9902.52.20
9902.52.21
9902.52.22
9902.52.23
9902.52.24
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
VerDate 0ct 09 2002
21:12 Dec 07, 2006
Jkt 000000
Woven fabrics of cotton of a type described in subheading 5208.21, of average yarn number exceeding 135
metric, certified by the importer to be
wholly of pima cotton grown in the
United States and to be suitable for
use in men’s and boys’ shirts, the
foregoing imported by or for the benefit of a manufacturer of men’s and
boys’ shirts under the terms of U.S.
Note 18 of this subchapter. ...............
Free
No change
No change
On or before
12/31/2009
Woven fabrics of cotton of a type described in subheading 5208.22, of average yarn number exceeding 135
metric, certified by the importer to be
wholly of pima cotton grown in the
United States and to be suitable for
use in men’s and boys’ shirts, the
foregoing imported by or for the benefit of a manufacturer of men’s and
boys’ shirts under the terms of U.S.
Note 18 of this subchapter. ...............
Free
No change
No change
On or before
12/31/2009
Woven fabrics of cotton of a type described in subheading 5208.29, of average yarn number exceeding 135
metric, certified by the importer to be
wholly of pima cotton grown in the
United States and to be suitable for
use in men’s and boys’ shirts, the
foregoing imported by or for the benefit of a manufacturer of men’s and
boys’ shirts under the terms of U.S.
Note 18 of this subchapter. ...............
Free
No change
No change
On or before
12/31/2009
Woven fabrics of cotton of a type described in subheading 5208.31, of average yarn number exceeding 135
metric, certified by the importer to be
wholly of pima cotton grown in the
United States and to be suitable for
use in men’s and boys’ shirts, the
foregoing imported by or for the benefit of a manufacturer of men’s and
boys’ shirts under the terms of U.S.
Note 18 of this subchapter. ...............
Free
No change
No change
On or before
12/31/2009
Woven fabrics of cotton of a type described in subheading 5208.32, of average yarn number exceeding 135
metric, certified by the importer to be
wholly of pima cotton grown in the
United States and to be suitable for
use in men’s and boys’ shirts, the
foregoing imported by or for the benefit of a manufacturer of men’s and
boys’ shirts under the terms of U.S.
Note 18 of this subchapter. ...............
Free
No change
No change
On or before
12/31/2009
(357278|6)
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H.L.C.
337
9902.52.25
9902.52.26
9902.52.27
9902.52.28
9902.52.29
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
VerDate 0ct 09 2002
21:12 Dec 07, 2006
Jkt 000000
Woven fabrics of cotton of a type described in subheading 5208.39, of average yarn number exceeding 135
metric, certified by the importer to be
wholly of pima cotton grown in the
United States and to be suitable for
use in men’s and boys’ shirts, the
foregoing imported by or for the benefit of a manufacturer of men’s and
boys’ shirts under the terms of U.S.
Note 18 of this subchapter. ...............
Free
No change
No change
On or before
12/31/2009
Woven fabrics of cotton of a type described in subheading 5208.41, of average yarn number exceeding 135
metric, certified by the importer to be
wholly of pima cotton grown in the
United States and to be suitable for
use in men’s and boys’ shirts, the
foregoing imported by or for the benefit of a manufacturer of men’s and
boys’ shirts under the terms of U.S.
Note 18 of this subchapter. ...............
Free
No change
No change
On or before
12/31/2009
Woven fabrics of cotton of a type described in subheading 5208.42, of average yarn number exceeding 135
metric, certified by the importer to be
wholly of pima cotton grown in the
United States and to be suitable for
use in men’s and boys’ shirts, the
foregoing imported by or for the benefit of a manufacturer of men’s and
boys’ shirts under the terms of U.S.
Note 18 of this subchapter. ...............
Free
No change
No change
On or before
12/31/2009
Woven fabrics of cotton of a type described in subheading 5208.49, of average yarn number exceeding 135
metric, certified by the importer to be
wholly of pima cotton grown in the
United States and to be suitable for
use in men’s and boys’ shirts, the
foregoing imported by or for the benefit of a manufacturer of men’s and
boys’ shirts under the terms of U.S.
Note 18 of this subchapter. ...............
Free
No change
No change
On or before
12/31/2009
Woven fabrics of cotton of a type described in subheading 5208.51, of average yarn number exceeding 135
metric, certified by the importer to be
wholly of pima cotton grown in the
United States and to be suitable for
use in men’s and boys’ shirts, the
foregoing imported by or for the benefit of a manufacturer of men’s and
boys’ shirts under the terms of U.S.
Note 18 of this subchapter. ...............
Free
No change
No change
On or before
12/31/2009
(357278|6)
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H.L.C.
338
9902.52.30
9902.52.31
1
Woven fabrics of cotton of a type described in subheading 5208.52, of average yarn number exceeding 135
metric, certified by the importer to be
wholly of pima cotton grown in the
United States and to be suitable for
use in men’s and boys’ shirts, the
foregoing imported by or for the benefit of a manufacturer of men’s and
boys’ shirts under the terms of U.S.
Note 18 of this subchapter. ...............
Free
No change
No change
On or before
12/31/2009
Woven fabrics of cotton of a type described in subheading 5208.59, of average yarn number exceeding 135
metric, certified by the importer to be
wholly of pima cotton grown in the
United States and to be suitable for
use in men’s and boys’ shirts, the
foregoing imported by or for the benefit of a manufacturer of men’s and
boys’ shirts under the terms of U.S.
Note 18 of this subchapter. ...............
Free
No change
No change
On or before
12/31/2009
(2) DEFINITIONS
’’.
AND LIMITATION ON QUAN-
2
TITY OF IMPORTS.—The
3
of chapter 99 of the Harmonized Tariff Schedule of
4
the United States are amended by adding at the end
5
the following:
6
‘‘18. For purposes of headings 9902.52.08 through
U.S. Notes to subchapter II
7 9902.52.31, the term ‘manufacturer’ means a person or
8 entity that cuts and sews men’s and boys’ shirts in the
9 United States.
10
‘‘19. The aggregate quantity of fabrics entered under
11 headings 9902.52.08 through 9902.52.19 from January 1
12 to December 31 of each year, inclusive, by or on behalf
13 of each manufacturer of men’s and boys’ shirts shall be
14 limited to 85 percent of the total square meter equivalents
15 of all imported woven fabrics of cotton containing 85 per16 cent or more by weight of cotton used by such manufac-
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
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H.L.C.
339
1 turer in cutting and sewing men’s and boys’ cotton shirts
2 in the United States and purchased by such manufacturer
3 during calendar year 2000.’’.
4
(b) DETERMINATION OF TARIFF-RATE QUOTAS.—
5
(1) AUTHORITY
6
CENSE USE.—In
7
on the quantity of cotton woven fabrics that may be
8
entered
9
9902.52.19 of the Harmonized Tariff Schedule of
10
the United States, as required by U.S. Note 19 to
11
subchapter II of chapter 99 of such Schedule, the
12
Secretary of Commerce shall issue licenses to eligible
13
manufacturers under such headings 9902.52.08
14
through 9902.52.19, specifying the restrictions
15
under each such license on the quantity of cotton
16
woven fabrics that may be entered each year by or
17
on behalf of the manufacturer. A licensee may as-
18
sign the authority (in whole or in part) under the li-
19
cense to import fabric under headings 9902.52.08
20
through 9902.52.19 of such Schedule.
21
order to implement the limitation
under
(2) LICENSES
headings
9902.52.08
through
UNDER U.S. NOTE 19.—For
pur-
22
poses of U.S. Note 19 to subchapter II of chapter
23
99 of the Harmonized Tariff Schedule of the United
24
States, the Secretary of Commerce shall issue a li-
25
cense to a manufacturer within 60 days after the
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
VerDate 0ct 09 2002
TO ISSUE LICENSES AND LI-
21:12 Dec 07, 2006
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H.L.C.
340
1
manufacturer files with the Secretary of Commerce
2
an application containing a notarized affidavit from
3
an officer of the manufacturer that the manufac-
4
turer is eligible to receive a license and stating the
5
quantity of imported woven fabrics of cotton con-
6
taining 85 percent or more by weight of cotton pur-
7
chased during calendar year 2000 for use in the cut-
8
ting and sewing men’s and boys’ shirts in the United
9
States.
10
(3) AFFIDAVITS.—For purposes of an affidavit
11
described in this subsection, the date of purchase
12
shall be—
13
(A) the invoice date if the manufacturer is
14
not the importer of record; and
15
(B) the date of entry if the manufacturer
16
is the importer of record.
17
SEC. 407. COTTON TRUST FUND.
18
(a) ESTABLISHMENT
OF
TRUST FUND.—There is es-
19 tablished in the Treasury of the United States a trust fund
20 to be known as the ‘‘Pima Cotton Trust Fund’’ (in this
21 section referred to as the ‘‘Trust Fund’’), consisting of
22 such amounts as may be transferred to the Trust Fund
23 under subsection (b).
24
(b) TRANSFER OF AMOUNTS.—
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
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H.L.C.
341
1
(1) IN
GENERAL.—Beginning
October 1, 2006,
2
the Secretary of the Treasury shall transfer to the
3
Trust Fund, from the general fund of the Treasury,
4
amounts determined by the Secretary of the Treas-
5
ury to be equivalent to the amounts received in the
6
general fund that are attributable to duties received
7
since January 1, 1994, on articles under sub-
8
headings
9
5208.31.80, 5208.32.50, 5208.39.80, 5208.41.80,
10
5208.42.50, 5208.49.80, 5208.51.80, 5208.52.50,
11
and 5208.59.80 of the Harmonized Tariff Schedule
12
of the United States, subject to the limitation in
13
paragraph (2).
5208.21.60,
5208.22.80,
5208.29.80,
14
(2) LIMITATION.—The Secretary may not
15
transfer more than $16,000,000 to the Trust Fund
16
in any fiscal year, and may not transfer any amount
17
beginning on or after October 1, 2008.
18
(c) DISTRIBUTION OF FUNDS.—From amounts in the
19 Trust Fund, the Commissioner of the Bureau of Customs
20 and Border Protection shall make the following payments
21 annually beginning in fiscal year 2007:
22
(1) 25 percent of the amounts in the Trust
23
Fund shall be paid annually to a nationally recog-
24
nized association established for the promotion of
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
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H.L.C.
342
1
pima cotton grown in the United States for the use
2
in textile and apparel goods.
3
(2) 25 percent of the amounts in the Trust
4
Fund shall be paid annually to yarn spinners of
5
pima cotton grown in the United States, and shall
6
be allocated to each spinner in an amount that bears
7
the same ratio as—
8
(A) the spinner’s production of ring spun
9
cotton yarns, measuring less than 83.33 decitex
10
(exceeding 120 metric number) from pima cot-
11
ton grown in the United States in single and
12
plied form during the period January 1, 1998
13
through December 31, 2003 (as evidenced by
14
an affidavit provided by the spinner) bears to—
15
(B) the production of the yarns described
16
in subparagraph (A) during the period January
17
1, 1998 through December 31, 2003 for all
18
spinners who qualify under this paragraph.
19
(3) 50 percent of the amounts in the Trust
20
Fund shall be paid annually to those manufacturers
21
who cut and sew cotton shirts in the United States
22
who certify that they used imported cotton fabric
23
during the period January 1, 1998, through July 1,
24
2003, and shall be allocated to each such manufac-
25
turer in an amount that bears the same ratio as—
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
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F:\HWC\HWC_419.XML
H.L.C.
343
1
(A) the dollar value (excluding duty, ship-
2
ping, and related costs) of imported woven cot-
3
ton shirting fabric of 80s or higher count and
4
2-ply in warp purchased by the manufacturer
5
during calendar year 2002 (as evidenced by an
6
affidavit from the manufacturer that meets the
7
requirements of subsection (d)) used in the
8
manufacturing of men’s and boys’ cotton shirts,
9
bears to—
10
(B) the dollar value (excluding duty, ship-
11
ping, and related costs) of the fabric described
12
in subparagraph (A) purchased during calendar
13
year 2002 by all manufacturers who qualify
14
under this paragraph.
15
(d) AFFIDAVIT
OF
SHIRTING MANUFACTURERS.—
16 The affidavit required by subsection (c)(3)(A) is a nota17 rized affidavit provided by an officer of the manufacturer
18 of men’s and boys’ shirts concerned that affirms—
19
(1) that the manufacturer used imported cotton
20
fabric during the period January 1, 1998, through
21
July 1, 2003, to cut and sew men’s and boys’ woven
22
cotton shirts in the United States;
23
(2) the dollar value of imported woven cotton
24
shirting fabric of 80s or higher count and 2-ply in
25
warp purchased during calendar year 2002;
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
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H.L.C.
344
1
(3) that the manufacturer maintains invoices
2
along with other supporting documentation (such as
3
price lists and other technical descriptions of the
4
fabric qualities) showing the dollar value of such
5
fabric purchased, the date of purchase, and evidenc-
6
ing the fabric as woven cotton fabric of 80s or high-
7
er count and 2-ply in warp; and
8
(4) that the fabric was suitable for use in the
9
manufacturing of men’s and boys’ cotton shirts.
10
(e) DATE
OF
PURCHASE.—For purposes of the affi-
11 davit under subsection (d), the date of purchase shall be
12 the invoice date, and the dollar value shall be determined
13 excluding duty, shipping, and related costs.
14
(f) AFFIDAVIT
OF
YARN SPINNERS.—The affidavit
15 required by subsection (c)(2)(A) is a notarized affidavit
16 provided by an officer of the producer of ring spun yarns
17 that affirms—
18
(1) that the producer used pima cotton grown
19
in the United States during the period January 1,
20
2002, through December 31, 2002, to produce ring
21
spun cotton yarns, measuring less than 83.33
22
decitex (exceeding 120 metric number), in single and
23
plied form during 2002;
24
(2) the quantity, measured in pounds, of ring
25
spun cotton yarns, measuring less than 83.33
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
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H.L.C.
345
1
decitex (exceeding 120 metric number), in single and
2
plied form during calendar year 2002; and
3
(3) that the producer maintains supporting doc-
4
umentation showing the quantity of such yarns pro-
5
duced, and evidencing the yarns as ring spun cotton
6
yarns, measuring less than 83.33 decitex (exceeding
7
120 metric number), in single and plied form during
8
calendar year 2002.
9
(g) NO APPEAL.—Any amount paid by the Commis-
10 sioner of the Bureau of Customs and Border Protection
11 under this section shall be final and not subject to appeal
12 or protest.
13
SEC. 408. TAX COURT REVIEW OF REQUESTS FOR EQUI-
14
TABLE RELIEF FROM JOINT AND SEVERAL LI-
15
ABILITY.
16
(a) IN GENERAL.—Paragraph (1) of section 6015(e)
17 of the Internal Revenue Code of 1986 (relating to petition
18 for tax court review) is amended by inserting ‘‘, or in the
19 case of an individual who requests equitable relief under
20 subsection (f)’’ after ‘‘who elects to have subsection (b)
21 or (c) apply’’.
22
(b) CONFORMING AMENDMENTS.—
23
(1) Section 6015(e)(1)(A)(i)(II) of such Code is
24
amended by inserting ‘‘or request is made’’ after
25
‘‘election is filed’’.
f:\V9\120706\120706.200.xml
December 7, 2006 (9:12 p.m.)
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H.L.C.
346
1
(2) Section 6015(e)(1)(B)(i) of such Code is
2
amended—
3
(A) by inserting ‘‘or requesting equitable
4
relief under subsection (f)’’ after ‘‘making an
5
election under subsection (b) or (c)’’, and
6
(B) by inserting ‘‘or request’’ after ‘‘to
7
which such election’’.
8
(3) Section 6015(e)(1)(B)(ii) of such Code is
9
amended by inserting ‘‘or to which the request under
10
subsection (f) relates’’ after ‘‘to which the election
11
under subsection (b) or (c) relates’’.
12
(4) Section 6015(e)(4) of such Code is amended
13
by inserting ‘‘or the request for equitable relief
14
under subsection (f)’’ after ‘‘the election under sub-
15
section (b) or (c)’’.
16
(5) Section 6015(e)(5) of such Code is amended
17
by inserting ‘‘or who requests equitable relief under
18
subsection (f)’’ after ‘‘who elects the application of
19
subsection (b) or (c)’’.
20
(6) Section 6015(g)(2) of such Code is amend-
21
ed by inserting ‘‘or of any request for equitable relief
22
under subsection (f)’’ after ‘‘any election under sub-
23
section (b) or (c)’’.
24
(7) Section 6015(h)(2) of such Code is amend-
25
ed by inserting ‘‘or a request for equitable relief
f:\V9\120706\120706.200.xml
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C:\TEMP\HWC_419.XML
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F:\HWC\HWC_419.XML
H.L.C.
347
1
made under subsection (f)’’ after ‘‘with respect to an
2
election made under subsection (b) or (c)’’.
3
(c) EFFECTIVE DATE.—The amendments made by
4 this section shall apply with respect to liability for taxes
5 arising or remaining unpaid on or after the date of the
6 enactment of this Act.
Amend the title to read as follows: ‘‘An Act to
amend the Internal Revenue Code of 1986 to extend expiring provisions, and for other purposes.’’
f:\V9\120706\120706.200.xml
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HOLCPC
| File Type | application/pdf |
| File Title | C:\TEMP\HWC_419.XML |
| File Modified | 2007-08-06 |
| File Created | 2006-12-08 |