PL 109-432 - Division C, section 403

120 STAT. 3050

19 USC 1681
note.

PUBLIC LAW 109–432—DEC. 20, 2006

service, or the seller is otherwise not in the physical
presence of the buyer when the request for purchase
or order is made, or
‘‘(ii) the tobacco product is delivered by use of
a common carrier, private delivery service, or the mail,
or the seller is not in the physical presence of the
buyer when the buyer obtains personal possession of
the tobacco product.’’.
(2) CONFORMING AMENDMENTS.—
(A) Subsection (c) of section 5761 of such Code is
amended by striking the last two sentences.
(B) Paragraph (1) of section 5754(c) of such Code is
amended by striking ‘‘section 5761(c)’’ and inserting ‘‘section 5761(d)’’.
(g) EFFECTIVE DATE.—The amendments made by this section
shall apply with respect to goods entered, or withdrawn from warehouse for consumption, on or after the 15th day after the date
of the enactment of this Act.
SEC. 402. ETHANOL TARIFF SCHEDULE.

Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff
Schedule of the United States are each amended in the effective
period column by striking ‘‘10/1/2007’’ each place it appears and
inserting ‘‘1/1/2009’’.
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.

(a) DEFINITIONS.—In this section:
(1) BUREAU OF LAND MANAGEMENT LAND.—The term
‘‘Bureau of Land Management land’’ means the Bureau of Land
Management land and any federally-owned minerals located
south of the Blackfeet Indian Reservation and east of the Lewis
and Clark National Forest to the eastern edge of R. 8 W.,
beginning in T. 29 N. down to and including T. 19 N. and
all of T. 18 N., R. 7 W.
(2) ELIGIBLE FEDERAL LAND.—The term ‘‘eligible Federal
land’’ means the Bureau of Land Management land and the
Forest Service land, as generally depicted on the map.
(3) FOREST SERVICE LAND.—The term ‘‘Forest Service land’’
means—
(A) the Forest Service land and any federally-owned
minerals located in the Rocky Mountain Division of the
Lewis and Clark National Forest, including the approximately 356,111 acres of land made unavailable for leasing
by the August 28, 1997, Record of Decision for the Lewis
and Clark National Forest Oil and Gas Leasing Environmental Impact Statement and that is located from T. 31
N. to T. 16 N. and R. 13 W. to R. 7 W.; and
(B) the Forest Service land and any federally-owned
minerals located within the Badger Two Medicine area
of the Flathead National Forest, including—
(i) the land located in T. 29 N. from the western
edge of R. 16 W. to the eastern edge of R. 13 W.;
and

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PUBLIC LAW 109–432—DEC. 20, 2006

120 STAT. 3051

(ii) the land located in T. 28 N., Rs. 13 and 14
W.
(4) MAP.—The term ‘‘map’’ means the map entitled ‘‘Rocky
Mountain Front Mineral Withdrawal Area’’ and dated
December 31, 2006.
(b) WITHDRAWAL.—
(1) IN GENERAL.—Subject to valid existing rights, the
eligible Federal land (including any interest in the eligible
Federal land) is withdrawn from—
(A) all forms of location, entry, and patent under the
mining laws; and
(B) disposition under all laws relating to mineral and
geothermal leasing.
(2) AVAILABILITY OF MAP.—The map shall be on file and
available for inspection in the Office of the Chief of the Forest
Service.
(c) TAX INCENTIVE FOR SALE OF EXISTING MINERAL AND GEOTHERMAL RIGHTS TO TAX-EXEMPT ENTITIES.—
(1) EXCLUSION.—For purposes of the Internal Revenue Code
of 1986, gross income shall not include 25 percent of the qualifying gain from a conservation sale of a qualifying mineral
or geothermal interest.
(2) QUALIFYING GAIN.—For purposes of this subsection, the
term ‘‘qualifying gain’’ means any gain which would be recognized as long-term capital gain under such Code.
(3) CONSERVATION SALE.—For purposes of this subsection,
the term ‘‘conservation sale’’ means a sale which meets the
following requirements:
(A) TRANSFEREE IS AN ELIGIBLE ENTITY.—The transferee of the qualifying mineral or geothermal interest is
an eligible entity.
(B) QUALIFYING LETTER OF INTENT REQUIRED.—At the
time of the sale, such transferee provides the taxpayer
with a qualifying letter of intent.
(C) NONAPPLICATION TO CERTAIN SALES.—The sale is
not made pursuant to an order of condemnation or eminent
domain.
(4) QUALIFYING MINERAL OR GEOTHERMAL INTEREST.—For
purposes of this subsection—
(A) IN GENERAL.—The term ‘‘qualifying mineral or geothermal interest’’ means an interest in any mineral or
geothermal deposit located on eligible Federal land which
constitutes a taxpayer’s entire interest in such deposit.
(B) ENTIRE INTEREST.—For purposes of subparagraph
(A)—
(i) an interest in any mineral or geothermal deposit
is not a taxpayer’s entire interest if such interest in
such mineral or geothermal deposit was divided in
order to avoid the requirements of such subparagraph
or section 170(f)(3)(A) of such Code, and
(ii) a taxpayer’s entire interest in such deposit
does not fail to satisfy such subparagraph solely
because the taxpayer has retained an interest in other
deposits, even if the other deposits are contiguous with
such certain deposit and were acquired by the taxpayer
along with such certain deposit in a single conveyance.
(5) OTHER DEFINITIONS.—For purposes of this subsection—

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120 STAT. 3052

PUBLIC LAW 109–432—DEC. 20, 2006
(A) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’
means—
(i) a governmental unit referred to in section
170(c)(1) of such Code, or an agency or department
thereof operated primarily for 1 or more of the conservation purposes specified in clause (i), (ii), or (iii)
of section 170(h)(4)(A) of such Code, or
(ii) an entity which is—
(I) described in section 170(b)(1)(A)(vi) or section 170(h)(3)(B) of such Code, and
(II) organized and at all times operated primarily for 1 or more of the conservation purposes
specified in clause (i), (ii), or (iii) of section
170(h)(4)(A) of such Code.
(B) QUALIFYING LETTER OF INTENT.—The term ‘‘qualifying letter of intent’’ means a written letter of intent
which includes the following statement: ‘‘The transferee’s
intent is that this acquisition will serve 1 or more of
the conservation purposes specified in clause (i), (ii), or
(iii) of section 170(h)(4)(A) of the Internal Revenue Code
of 1986, that the transferee’s use of the deposits so acquired
will be consistent with section 170(h)(5) of such Code, and
that the use of the deposits will continue to be consistent
with such section, even if ownership or possession of such
deposits is subsequently transferred to another person.’’.
(6) TAX ON SUBSEQUENT TRANSFERS.—
(A) IN GENERAL.—A tax is hereby imposed on any
subsequent transfer by an eligible entity of ownership or
possession, whether by sale, exchange, or lease, of an
interest acquired directly or indirectly in—
(i) a conservation sale described in paragraph (1),
or
(ii) a transfer described in clause (i), (ii), or (iii)
of subparagraph (D).
(B) AMOUNT OF TAX.—The amount of tax imposed by
subparagraph (A) on any transfer shall be equal to the
sum of—
(i) 20 percent of the fair market value (determined
at the time of the transfer) of the interest the ownership or possession of which is transferred, plus
(ii) the product of—
(I) the highest rate of tax specified in section
11 of such Code, times
(II) any gain or income realized by the transferor as a result of the transfer.
(C) LIABILITY.—The tax imposed by subparagraph (A)
shall be paid by the transferor.
(D) RELIEF FROM LIABILITY.—The person (otherwise
liable for any tax imposed by subparagraph (A)) shall be
relieved of liability for the tax imposed by subparagraph
(A) with respect to any transfer if—
(i) the transferee is an eligible entity which provides such person, at the time of transfer, a qualifying
letter of intent,
(ii) in any case where the transferee is not an
eligible entity, it is established to the satisfaction of
the Secretary of the Treasury, that the transfer of

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PUBLIC LAW 109–432—DEC. 20, 2006

120 STAT. 3053

ownership or possession, as the case may be, will be
consistent with section 170(h)(5) of such Code, and
the transferee provides such person, at the time of
transfer, a qualifying letter of intent, or
(iii) tax has previously been paid under this paragraph as a result of a prior transfer of ownership
or possession of the same interest.
(E) ADMINISTRATIVE PROVISIONS.—For purposes of subtitle F of such Code, the taxes imposed by this paragraph
shall be treated as excise taxes with respect to which
the deficiency procedures of such subtitle apply.
(7) REPORTING.—The Secretary of the Treasury may require
such reporting as may be necessary or appropriate to further
the purpose under this subsection that any conservation use
be in perpetuity.
(d) EFFECTIVE DATES.—
(1) MORATORIUM.—Subsection (b) shall take effect on the
date of the enactment of this Act.
(2) TAX INCENTIVE.—Subsection (c) shall apply to sales
occurring on or after the date of the enactment of this Act.
SEC. 404. CONTINUING ELIGIBILITY FOR CERTAIN STUDENTS UNDER
DISTRICT OF COLUMBIA SCHOOL CHOICE PROGRAM.

(a) IN GENERAL.—Section 307(a)(4) of the DC School Choice
Incentive Act of 2003 (sec. 38–1851.06(a)(4), D.C. Official Code)
is amended by striking ‘‘200 percent’’ and inserting the following:
‘‘200 percent (or, in the case of an eligible student whose first
year of participation in the program is an academic year ending
in June 2005 or June 2006 and whose second or succeeding year
is an academic year ending on or before June 2009, 300 percent)’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect as if included in the enactment of the DC School
Choice Incentive Act of 2003.
SEC. 405. STUDY ON ESTABLISHING UNIFORM NATIONAL DATABASE
ON ELDER ABUSE.

(a) STUDY.—
(1) IN GENERAL.—The Secretary of Health and Human
Services, in consultation with the Attorney General, shall conduct a study on establishing a uniform national database on
elder abuse.
(2) ISSUES STUDIED.—The study conducted under paragraph
(1) may consider the following:
(A) Current methodologies used for collecting data on
elder abuse, including a determination of the shortcomings,
strengths, and commonalities of existing data collection
efforts and reporting forms, and how a uniform national
database would capitalize on such efforts.
(B) The process by which uniform national standards
for reporting on elder abuse could be implemented,
including the identification and involvement of necessary
stakeholders, financial resources needed, timelines, and the
treatment of existing standards with respect to elder abuse.
(C) Potential conflicts in Federal, State, and local laws,
and enforcement and jurisdictional issues that could occur
as a result of the creation of a uniform national database
on elder abuse.

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