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pdfPUBLIC LAW 106–554—DEC. 21, 2000
114 STAT. 2763
*Public Law 106–554
106th Congress
An Act
Making consolidated appropriations for the fiscal year ending September 30, 2001,
and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. (a) The provisions of the following bills of the
106th Congress are hereby enacted into law:
(1) H.R. 5656, as introduced on December 14, 2000.
(2) H.R. 5657, as introduced on December 14, 2000.
(3) H.R. 5658, as introduced on December 14, 2000.
(4) H.R. 5666, as introduced on December 15, 2000, except
that the text of H.R. 5666, as so enacted, shall not include
section 123 (relating to the enactment of H.R. 4904).
(5) H.R. 5660, as introduced on December 14, 2000.
(6) H.R. 5661, as introduced on December 14, 2000.
(7) H.R. 5662, as introduced on December 14, 2000.
(8) H.R. 5663, as introduced on December 14, 2000.
(9) H.R. 5667, as introduced on December 15, 2000.
(b) In publishing this Act in slip form and in the United
States Statutes at Large pursuant to section 112 of title 1, United
States Code, the Archivist of the United States shall include after
the date of approval at the end appendixes setting forth the texts
of the bills referred to in subsection (a) of this section and the
text of any other bill enacted into law by reference by reason
of the enactment of this Act.
SEC. 2. (a) Notwithstanding Rule 3 of the Budget Scorekeeping
Guidelines set forth in the joint explanatory statement of the
committee of conference accompanying Conference Report 105–217,
legislation enacted in section 505 of the Department of Transportation and Related Agencies Appropriations Act, 2001, section 312
of the Legislative Branch Appropriations Act, 2001, titles X and
XI of H.R. 5548 (106th Congress) as enacted by H.R. 4942 (106th
Congress), division B of H.R. 5666 (106th Congress) as enacted
by this Act, and sections 1(a)(5) through 1(a)(9) of this Act that
would have been estimated by the Office of Management and Budget
as changing direct spending or receipts under section 252 of the
Balanced Budget and Emergency Deficit Control Act of 1985 were
it included in an Act other than an appropriations Act shall be
treated as direct spending or receipts legislation, as appropriate,
under section 252 of the Balanced Budget and Emergency Deficit
Control Act of 1985.
(b) In preparing the final sequestration report required by
section 254(f )(3) of the Balanced Budget and Emergency Deficit
Control Act of 1985 for fiscal year 2001, in addition to the information required by that section, the Director of the Office of Management and Budget shall change any balance of direct spending
Dec. 21, 2000
[H.R. 4577]
Consolidated
Appropriations
Act, 2001.
Incorporation by
reference.
Publication.
1 USC 112 note.
* See Endnote on 114 Stat. 2764.
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114 STAT. 2764
PUBLIC LAW 106–554—DEC. 21, 2000
and receipts legislation for fiscal year 2001 under section 252 of
that Act to zero.
(c) This Act may be cited as the ‘‘Consolidated Appropriations
Act, 2001’’.
Approved December 21, 2000.
LEGISLATIVE HISTORY—H.R. 4577 (S. 2553):
HOUSE REPORTS: Nos. 106–645 (Comm. on Appropriations) and 106–1033 (Comm.
of Conference).
SENATE REPORTS: No. 106–293 accompanying S. 2553 (Comm. on Appropriations).
CONGRESSIONAL RECORD, Vol. 146 (2000):
June 8, 12–14, considered and passed House.
June 22, 23, 26–30, considered and passed Senate, amended.
Dec. 15, House and Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 36 (2000):
Dec. 21, Presidential remarks and statement.
*ENDNOTE: The following appendixes were added pursuant to the provisions of section 1
of this Act (114 Stat. 2763).
Æ
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PUBLIC LAW 106–554—APPENDIX
114 STAT. 2763A–1
TABLE OF CONTENTS
The table of contents is as follows:
APPENDIX A—H.R. 5656
APPENDIX B—H.R. 5657
APPENDIX C—H.R. 5658
APPENDIX D—H.R. 5666
APPENDIX D–1—S. 2273
APPENDIX D–2—S. 2885
APPENDIX E—H.R. 5660
APPENDIX F—H.R. 5661
APPENDIX G—H.R. 5662
APPENDIX H—H.R. 5663
APPENDIX I—H.R. 5667
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–3
APPENDIX A—H.R. 5656
That the following sums are appropriated, out of any money in
the Treasury not otherwise appropriated, for the Departments of
Labor, Health and Human Services, and Education, and related
agencies for the fiscal year ending September 30, 2001, and for
other purposes, namely:
TITLE I—DEPARTMENT OF LABOR
EMPLOYMENT
AND
TRAINING ADMINISTRATION
TRAINING AND EMPLOYMENT SERVICES
For necessary expenses of the Workforce Investment Act,
including the purchase and hire of passenger motor vehicles, the
construction, alteration, and repair of buildings and other facilities,
and the purchase of real property for training centers as authorized
by the Workforce Investment Act; the Women in Apprenticeship
and Nontraditional Occupations Act; and the National Skill Standards Act of 1994; $3,207,805,000 plus reimbursements, of which
$1,808,465,000 is available for obligation for the period July 1,
2001 through June 30, 2002; of which $1,377,965,000 is available
for obligation for the period April 1, 2001 through June 30, 2002,
including $1,102,965,000 to carry out chapter 4 of the Workforce
Investment Act and $275,000,000 to carry out section 169 of such
Act; and of which $20,375,000 is available for the period July
1, 2001 through June 30, 2004 for necessary expenses of construction, rehabilitation, and acquisition of Job Corps centers: Provided,
That $9,098,000 shall be for carrying out section 172 of the
Workforce Investment Act, and $3,500,000 shall be for carrying
out the National Skills Standards Act of 1994: Provided further,
That no funds from any other appropriation shall be used to provide
meal services at or for Job Corps centers: Provided further, That
funds provided to carry out section 171(d) of such Act may be
used for demonstration projects that provide assistance to new
entrants in the workforce and incumbent workers: Provided further,
That funding provided to carry out projects under section 171
of the Workforce Investment Act of 1998 that are identified in
the Conference Agreement, shall not be subject to the requirements
of section 171(b)(2)(B) of such Act, the requirements of section
171(c)(4)(D) of such Act, or the joint funding requirements of sections 171(b)(2)(A) and 171(c)(4)(A) of such Act: Provided further,
That funding appropriated herein for Dislocated Worker Employment and Training Activities under section 132(a)(2)(A) of the
Workforce Investment Act of 1998 may be distributed for Dislocated
Worker Projects under section 171(d) of the Act without regard
to the 10 percent limitation contained in section 171(d) of the
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114 STAT. 2763A–4
PUBLIC LAW 106–554—APPENDIX A
Act: Provided further, That of the funds made available for Job
Corps operating expenses in the Department of Labor Appropriations Act, 2000, as enacted by section 1000(a)(4) of Public Law
106–113, $586,487 shall be paid to the city of Vergennes, Vermont
in settlement of the city’s claim: Provided further, That $4,600,000
provided herein for dislocated worker employment and training
activities shall be made available to the New Mexico Telecommunications Call Center Training Consortium for training in telecommunications-related occupations.
For necessary expenses of the Workforce Investment Act,
including the purchase and hire of passenger motor vehicles, the
construction, alteration, and repair of buildings and other facilities,
and the purchase of real property for training centers as authorized
by the Workforce Investment Act; $2,463,000,000 plus reimbursements, of which $2,363,000,000 is available for obligation for the
period October 1, 2001 through June 30, 2002, and of which
$100,000,000 is available for the period October 1, 2001 through
June 30, 2004, for necessary expenses of construction, rehabilitation,
and acquisition of Job Corps centers.
COMMUNITY SERVICE EMPLOYMENT FOR OLDER AMERICANS
To carry out title V of the Older Americans Act of 1965, as
amended, $440,200,000.
FEDERAL UNEMPLOYMENT BENEFITS AND ALLOWANCES
For payments during the current fiscal year of trade adjustment
benefit payments and allowances under part I; and for training,
allowances for job search and relocation, and related State administrative expenses under part II, subchapters B and D, chapter 2,
title II of the Trade Act of 1974, as amended, $406,550,000, together
with such amounts as may be necessary to be charged to the
subsequent appropriation for payments for any period subsequent
to September 15 of the current year.
STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT SERVICE
OPERATIONS
For authorized administrative expenses, $193,452,000, together
with not to exceed $3,172,246,000 (including not to exceed
$1,228,000 which may be used for amortization payments to States
which had independent retirement plans in their State employment
service agencies prior to 1980), which may be expended from the
Employment Security Administration account in the Unemployment
Trust Fund including the cost of administering section 51 of the
Internal Revenue Code of 1986, as amended, section 7(d) of the
Wagner-Peyser Act, as amended, the Trade Act of 1974, as amended,
the Immigration Act of 1990, and the Immigration and Nationality
Act, as amended, and of which the sums available in the allocation
for activities authorized by title III of the Social Security Act,
as amended (42 U.S.C. 502–504), and the sums available in the
allocation for necessary administrative expenses for carrying out
5 U.S.C. 8501–8523, shall be available for obligation by the States
through December 31, 2001, except that funds used for automation
acquisitions shall be available for obligation by the States through
September 30, 2003; and of which $193,452,000, together with
not to exceed $773,283,000 of the amount which may be expended
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–5
from said trust fund, shall be available for obligation for the period
July 1, 2001 through June 30, 2002, to fund activities under the
Act of June 6, 1933, as amended, including the cost of penalty
mail authorized under 39 U.S.C. 3202(a)(1)(E) made available to
States in lieu of allotments for such purpose: Provided, That to
the extent that the Average Weekly Insured Unemployment (AWIU)
for fiscal year 2001 is projected by the Department of Labor to
exceed 2,396,000, an additional $28,600,000 shall be available for
obligation for every 100,000 increase in the AWIU level (including
a pro rata amount for any increment less than 100,000) from
the Employment Security Administration Account of the Unemployment Trust Fund: Provided further, That funds appropriated in
this Act which are used to establish a national one-stop career
center system, or which are used to support the national activities
of the Federal-State unemployment insurance programs, may be
obligated in contracts, grants, or agreements with non-State entities: Provided further, That funds appropriated under this Act for
activities authorized under the Wagner-Peyser Act, as amended,
and title III of the Social Security Act, may be used by the States
to fund integrated Employment Service and Unemployment Insurance automation efforts, notwithstanding cost allocation principles
prescribed under Office of Management and Budget Circular A–
87.
ADVANCES TO THE UNEMPLOYMENT TRUST FUND AND OTHER FUNDS
For repayable advances to the Unemployment Trust Fund as
authorized by sections 905(d) and 1203 of the Social Security Act,
as amended, and to the Black Lung Disability Trust Fund as
authorized by section 9501(c)(1) of the Internal Revenue Code of
1954, as amended; and for nonrepayable advances to the Unemployment Trust Fund as authorized by section 8509 of title 5, United
States Code, and to the ‘‘Federal unemployment benefits and allowances’’ account, to remain available until September 30, 2002,
$435,000,000.
In addition, for making repayable advances to the Black Lung
Disability Trust Fund in the current fiscal year after September
15, 2001, for costs incurred by the Black Lung Disability Trust
Fund in the current fiscal year, such sums as may be necessary.
PROGRAM ADMINISTRATION
For expenses of administering employment and training programs, $110,651,000, including $6,431,000 to support up to 75
full-time equivalent staff, the majority of which will be term Federal
appointments lasting no more than 1 year, to administer welfareto-work grants, together with not to exceed $48,507,000, which
may be expended from the Employment Security Administration
account in the Unemployment Trust Fund.
PENSION
AND
WELFARE BENEFITS ADMINISTRATION
SALARIES AND EXPENSES
For necessary expenses for the Pension and Welfare Benefits
Administration, $107,832,000.
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114 STAT. 2763A–6
PUBLIC LAW 106–554—APPENDIX A
PENSION BENEFIT GUARANTY CORPORATION
PENSION BENEFIT GUARANTY CORPORATION FUND
The Pension Benefit Guaranty Corporation is authorized to
make such expenditures, including financial assistance authorized
by section 104 of Public Law 96–364, within limits of funds and
borrowing authority available to such Corporation, and in accord
with law, and to make such contracts and commitments without
regard to fiscal year limitations as provided by section 104 of
the Government Corporation Control Act, as amended (31 U.S.C.
9104), as may be necessary in carrying out the program through
September 30, 2001, for such Corporation: Provided, That not to
exceed $11,652,000 shall be available for administrative expenses
of the Corporation: Provided further, That expenses of such Corporation in connection with the termination of pension plans, for the
acquisition, protection or management, and investment of trust
assets, and for benefits administration services shall be considered
as nonadministrative expenses for the purposes hereof, and excluded
from the above limitation.
EMPLOYMENT STANDARDS ADMINISTRATION
SALARIES AND EXPENSES
For necessary expenses for the Employment Standards
Administration, including reimbursement to State, Federal, and
local agencies and their employees for inspection services rendered,
$361,491,000, together with $1,985,000 which may be expended
from the Special Fund in accordance with sections 39(c), 44(d),
and 44( j) of the Longshore and Harbor Workers’ Compensation
Act: Provided, That $2,000,000 shall be for the development of
an alternative system for the electronic submission of reports
required to be filed under the Labor-Management Reporting and
Disclosure Act of 1959, as amended, and for a computer database
of the information for each submission by whatever means, that
is indexed and easily searchable by the public via the Internet:
Provided further, That the Secretary of Labor is authorized to
accept, retain, and spend, until expended, in the name of the
Department of Labor, all sums of money ordered to be paid to
the Secretary of Labor, in accordance with the terms of the Consent
Judgment in Civil Action No. 91–0027 of the United States District
Court for the District of the Northern Mariana Islands (May 21,
1992): Provided further, That the Secretary of Labor is authorized
to establish and, in accordance with 31 U.S.C. 3302, collect and
deposit in the Treasury fees for processing applications and issuing
certificates under sections 11(d) and 14 of the Fair Labor Standards
Act of 1938, as amended (29 U.S.C. 211(d) and 214) and for processing applications and issuing registrations under title I of the
Migrant and Seasonal Agricultural Worker Protection Act (29 U.S.C.
1801 et seq.).
SPECIAL BENEFITS
(INCLUDING
TRANSFER OF FUNDS)
For the payment of compensation, benefits, and expenses
(except administrative expenses) accruing during the current or
any prior fiscal year authorized by title 5, chapter 81 of the United
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–7
States Code; continuation of benefits as provided for under the
heading ‘‘Civilian War Benefits’’ in the Federal Security Agency
Appropriation Act, 1947; the Employees’ Compensation Commission
Appropriation Act, 1944; sections 4(c) and 5(f ) of the War Claims
Act of 1948 (50 U.S.C. App. 2012); and 50 percent of the additional
compensation and benefits required by section 10(h) of the
Longshore and Harbor Workers’ Compensation Act, as amended,
$56,000,000 together with such amounts as may be necessary to
be charged to the subsequent year appropriation for the payment
of compensation and other benefits for any period subsequent to
August 15 of the current year: Provided, That amounts appropriated
may be used under section 8104 of title 5, United States Code,
by the Secretary of Labor to reimburse an employer, who is not
the employer at the time of injury, for portions of the salary of
a reemployed, disabled beneficiary: Provided further, That balances
of reimbursements unobligated on September 30, 2000, shall remain
available until expended for the payment of compensation, benefits,
and expenses: Provided further, That in addition there shall be
transferred to this appropriation from the Postal Service and from
any other corporation or instrumentality required under section
8147(c) of title 5, United States Code, to pay an amount for its
fair share of the cost of administration, such sums as the Secretary
determines to be the cost of administration for employees of such
fair share entities through September 30, 2001: Provided further,
That of those funds transferred to this account from the fair share
entities to pay the cost of administration, $34,910,000 shall be
made available to the Secretary as follows: (1) for the operation
of and enhancement to the automated data processing systems,
including document imaging, medical bill review, and periodic roll
management, in support of Federal Employees’ Compensation Act
administration, $23,371,000; (2) for conversion to a paperless office,
$7,005,000; (3) for communications redesign, $1,750,000; (4) for
information technology maintenance and support, $2,784,000; and
(5) the remaining funds shall be paid into the Treasury as miscellaneous receipts: Provided further, That the Secretary may
require that any person filing a notice of injury or a claim for
benefits under chapter 81 of title 5, United States Code, or 33
U.S.C. 901 et seq., provide as part of such notice and claim, such
identifying information (including Social Security account number)
as such regulations may prescribe.
BLACK LUNG DISABILITY TRUST FUND
(INCLUDING
TRANSFER OF FUNDS)
For payments from the Black Lung Disability Trust Fund,
$1,028,000,000, of which $975,343,000 shall be available until
September 30, 2002, for payment of all benefits as authorized
by section 9501(d)(1), (2), (4), and (7) of the Internal Revenue
Code of 1954, as amended, and interest on advances as authorized
by section 9501(c)(2) of that Act, and of which $30,393,000 shall
be available for transfer to Employment Standards Administration,
Salaries and Expenses, $21,590,000 for transfer to Departmental
Management, Salaries and Expenses, $318,000 for transfer to
Departmental Management, Office of Inspector General, and
$356,000 for payment into miscellaneous receipts for the expenses
of the Department of the Treasury, for expenses of operation and
administration of the Black Lung Benefits program as authorized
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114 STAT. 2763A–8
PUBLIC LAW 106–554—APPENDIX A
by section 9501(d)(5) of that Act: Provided, That, in addition, such
amounts as may be necessary may be charged to the subsequent
year appropriation for the payment of compensation, interest, or
other benefits for any period subsequent to August 15 of the current
year.
OCCUPATIONAL SAFETY
AND
HEALTH ADMINISTRATION
SALARIES AND EXPENSES
For necessary expenses for the Occupational Safety and Health
Administration, $425,983,000, including not to exceed $88,493,000
which shall be the maximum amount available for grants to States
under section 23(g) of the Occupational Safety and Health Act,
which grants shall be no less than 50 percent of the costs of
State occupational safety and health programs required to be
incurred under plans approved by the Secretary under section 18
of the Occupational Safety and Health Act of 1970; and, in addition,
notwithstanding 31 U.S.C. 3302, the Occupational Safety and
Health Administration may retain up to $750,000 per fiscal year
of training institute course tuition fees, otherwise authorized by
law to be collected, and may utilize such sums for occupational
safety and health training and education grants: Provided, That,
notwithstanding 31 U.S.C. 3302, the Secretary of Labor is authorized, during the fiscal year ending September 30, 2001, to collect
and retain fees for services provided to Nationally Recognized Testing Laboratories, and may utilize such sums, in accordance with
the provisions of 29 U.S.C. 9a, to administer national and international laboratory recognition programs that ensure the safety
of equipment and products used by workers in the workplace:
Provided further, That none of the funds appropriated under this
paragraph shall be obligated or expended to prescribe, issue, administer, or enforce any standard, rule, regulation, or order under
the Occupational Safety and Health Act of 1970 which is applicable
to any person who is engaged in a farming operation which does
not maintain a temporary labor camp and employs 10 or fewer
employees: Provided further, That no funds appropriated under
this paragraph shall be obligated or expended to administer or
enforce any standard, rule, regulation, or order under the Occupational Safety and Health Act of 1970 with respect to any employer
of 10 or fewer employees who is included within a category having
an occupational injury lost workday case rate, at the most precise
Standard Industrial Classification Code for which such data are
published, less than the national average rate as such rates are
most recently published by the Secretary, acting through the Bureau
of Labor Statistics, in accordance with section 24 of that Act (29
U.S.C. 673), except—
(1) to provide, as authorized by such Act, consultation,
technical assistance, educational and training services, and to
conduct surveys and studies;
(2) to conduct an inspection or investigation in response
to an employee complaint, to issue a citation for violations
found during such inspection, and to assess a penalty for violations which are not corrected within a reasonable abatement
period and for any willful violations found;
(3) to take any action authorized by such Act with respect
to imminent dangers;
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–9
(4) to take any action authorized by such Act with respect
to health hazards;
(5) to take any action authorized by such Act with respect
to a report of an employment accident which is fatal to one
or more employees or which results in hospitalization of two
or more employees, and to take any action pursuant to such
investigation authorized by such Act; and
(6) to take any action authorized by such Act with respect
to complaints of discrimination against employees for exercising
rights under such Act:
Provided further, That the foregoing proviso shall not apply to
any person who is engaged in a farming operation which does
not maintain a temporary labor camp and employs 10 or fewer
employees.
MINE SAFETY
AND
HEALTH ADMINISTRATION
SALARIES AND EXPENSES
For necessary expenses for the Mine Safety and Health
Administration, $246,747,000, including purchase and bestowal of
certificates and trophies in connection with mine rescue and firstaid work, and the hire of passenger motor vehicles; including up
to $1,000,000 for mine rescue and recovery activities, which shall
be available only to the extent that fiscal year 2001 obligations
for these activities exceed $1,000,000; in addition, not to exceed
$750,000 may be collected by the National Mine Health and Safety
Academy for room, board, tuition, and the sale of training materials,
otherwise authorized by law to be collected, to be available for
mine safety and health education and training activities, notwithstanding 31 U.S.C. 3302; and, in addition, the Mine Safety and
Health Administration may retain up to $1,000,000 from fees collected for the approval and certification of equipment, materials,
and explosives for use in mines, and may utilize such sums for
such activities; the Secretary is authorized to accept lands, buildings, equipment, and other contributions from public and private
sources and to prosecute projects in cooperation with other agencies,
Federal, State, or private; the Mine Safety and Health Administration is authorized to promote health and safety education and
training in the mining community through cooperative programs
with States, industry, and safety associations; and any funds available to the department may be used, with the approval of the
Secretary, to provide for the costs of mine rescue and survival
operations in the event of a major disaster.
BUREAU
OF
LABOR STATISTICS
SALARIES AND EXPENSES
For necessary expenses for the Bureau of Labor Statistics,
including advances or reimbursements to State, Federal, and local
agencies and their employees for services rendered, $374,327,000,
together with not to exceed $67,257,000, which may be expended
from the Employment Security Administration account in the
Unemployment Trust Fund; and $10,000,000 which shall be available for obligation for the period July 1, 2001 through June 30,
2002, for Occupational Employment Statistics.
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114 STAT. 2763A–10
PUBLIC LAW 106–554—APPENDIX A
DEPARTMENTAL MANAGEMENT
SALARIES AND EXPENSES
For necessary expenses for Departmental Management, including the hire of three sedans, and including the management or
operation, through contracts, grants, or other arrangements of
Departmental bilateral and multilateral foreign technical assistance, of which the funds designated to carry out bilateral assistance
under the international child labor initiative shall be available
for obligation through September 30, 2002, and $37,000,000 for
the acquisition of Departmental information technology, architecture, infrastructure, equipment, software, and related needs which
will be allocated by the Department’s Chief Information Officer
in accordance with the Department’s capital investment management process to assure a sound investment strategy, $380,529,000;
together with not to exceed $310,000, which may be expended
from the Employment Security Administration account in the
Unemployment Trust Fund: Provided, That no funds made available
by this Act may be used by the Solicitor of Labor to participate
in a review in any United States court of appeals of any decision
made by the Benefits Review Board under section 21 of the
Longshore and Harbor Workers’ Compensation Act (33 U.S.C. 921)
where such participation is precluded by the decision of the United
States Supreme Court in Director, Office of Workers’ Compensation
Programs v. Newport News Shipbuilding, 115 S. Ct. 1278 (1995),
notwithstanding any provisions to the contrary contained in Rule
15 of the Federal Rules of Appellate Procedure: Provided further,
That no funds made available by this Act may be used by the
Secretary of Labor to review a decision under the Longshore and
Harbor Workers’ Compensation Act (33 U.S.C. 901 et seq.) that
has been appealed and that has been pending before the Benefits
Review Board for more than 12 months: Provided further, That
any such decision pending a review by the Benefits Review Board
for more than 1 year shall be considered affirmed by the Benefits
Review Board on the 1-year anniversary of the filing of the appeal,
and shall be considered the final order of the Board for purposes
of obtaining a review in the United States courts of appeals: Provided further, That these provisions shall not be applicable to the
review or appeal of any decision issued under the Black Lung
Benefits Act (30 U.S.C. 901 et seq.): Provided further, That beginning in fiscal year 2001, there is established in the Department
of Labor an office of disability employment policy which shall,
under the overall direction of the Secretary, provide leadership,
develop policy and initiatives, and award grants furthering the
objective of eliminating barriers to the training and employment
of people with disabilities. Such office shall be headed by an Assistant Secretary: Provided further, That of amounts provided under
this head, not more than $23,002,000 is for this purpose.
VETERANS EMPLOYMENT AND TRAINING
Not to exceed $186,913,000 may be derived from the Employment Security Administration account in the Unemployment Trust
Fund to carry out the provisions of 38 U.S.C. 4100–4110A, 4212,
4214, and 4321–4327, and Public Law 103–353, and which shall
be available for obligation by the States through December 31,
2001. To carry out the Stewart B. McKinney Homeless Assistance
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–11
Act and section 168 of the Workforce Investment Act of 1998,
$24,800,000, of which $7,300,000 shall be available for obligation
for the period July 1, 2001 through June 30, 2002.
OFFICE OF INSPECTOR GENERAL
For salaries and expenses of the Office of Inspector General
in carrying out the provisions of the Inspector General Act of
1978, as amended, $50,015,000, together with not to exceed
$4,770,000, which may be expended from the Employment Security
Administration account in the Unemployment Trust Fund.
GENERAL PROVISIONS
SEC. 101. None of the funds appropriated in this title for
the Job Corps shall be used to pay the compensation of an individual, either as direct costs or any proration as an indirect cost,
at a rate in excess of Executive Level II.
(TRANSFER
OF FUNDS)
SEC. 102. Not to exceed 1 percent of any discretionary funds
(pursuant to the Balanced Budget and Emergency Deficit Control
Act of 1985, as amended) which are appropriated for the current
fiscal year for the Department of Labor in this Act may be transferred between appropriations, but no such appropriation shall be
increased by more than 3 percent by any such transfer: Provided,
That the Appropriations Committees of both Houses of Congress
are notified at least 15 days in advance of any transfer.
SEC. 103. Section 403(a)(5)(C)(viii) of the Social Security Act
(42 U.S.C. 603(a)(5)(C)(viii)) (as amended by section 801(b)(1)(A)
of the Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, 2000 (as
enacted into law by section 1000(a)(4) of Public Law 106–113))
is amended by striking ‘‘3 years’’ and inserting ‘‘5 years’’.
SEC. 104. No funds appropriated in this Act or any other
Act making appropriations for fiscal year 2001 may be used to
implement or enforce the proposed and final regulations appearing
in 65 Fed. Reg. 43528–43583, regarding temporary alien labor certification applications and petitions for admission of nonimmigrant
workers, or any similar or successor rule with an effective date
prior to October 1, 2001: Provided, That nothing in this section
shall prohibit the development or revision of such a rule, or the
publication of any similar or successor proposed or final rule, or
the provision of training or technical assistance, or other activities
necessary and appropriate in preparing to implement such a rule
with an effective date after September 30, 2001.
SEC. 105. Section 218(c)(4) of the Immigration and Nationality
Act (8 U.S.C. 1188(c)(4)) is amended by adding at the end the
following new sentence: ‘‘The determination as to whether the housing furnished by an employer for an H–2A worker meets the requirements imposed by this paragraph must be made prior to the date
specified in paragraph (3)(A) by which the Secretary of Labor is
required to make a certification described in subsection (a)(1) with
respect to a petition for the importation of such worker.’’.
SEC. 106. Section 286(s)(6) of the Immigration and Naturalization Act (8 U.S.C. 1356(s)(6)) is amended by inserting ‘‘and section
212(a)(5)(A)’’ after the second reference to ‘‘section 212(n)(1)’’.
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114 STAT. 2763A–12
PUBLIC LAW 106–554—APPENDIX A
SEC. 107. (a) Section 403(a)(5) of the Social Security Act (as
amended by section 806(b) of the Departments of Labor, Health
and Human Services, and Education, and Related Agencies Appropriations Act, 2000 (as enacted into law by section 1000(a)(4) of
Public Law 106–113)) is amended by striking subparagraph (E)
and redesignating subparagraphs (F) through (K) as subparagraphs
(E) through (J), respectively.
(b) The Social Security Act (as amended by section 806(b)
of the Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, 2000 (as
enacted into law by section 1000(a)(4) of Public Law 106–113))
is further amended as follows:
(1) Section 403(a)(5)(A)(i) (42 U.S.C. 603(a)(5)(A)(i)) is
amended by striking ‘‘subparagraph (I)’’ and inserting ‘‘subparagraph (H)’’.
(2) Subclause (I) of each of subparagraphs (A)(iv) and (B)(v)
of section 403(a)(5) (42 U.S.C. 603(a)(5)(A)(iv)(I) and (B)(v)(I))
is amended—
(A) in item (aa)—
(i) by striking ‘‘(I)’’ and inserting ‘‘(H)’’; and
(ii) by striking ‘‘(G), and (H)’’ and inserting ‘‘and
(G)’’; and
(B) in item (bb), by striking ‘‘(F)’’ and inserting ‘‘(E)’’.
(3) Section 403(a)(5)(B)(v) (42 U.S.C. 603(a)(5)(B)(v)) is
amended in the matter preceding subclause (I) by striking
‘‘(I)’’ and inserting ‘‘(H)’’.
(4) Subparagraphs (E), (F), and (G)(i) of section 403(a)(5)
(42 U.S.C. 603(a)(5)), as so redesignated by subsection (a) of
this section, are each amended by striking ‘‘(I)’’ and inserting
‘‘(H)’’.
(5) Section 412(a)(3)(A) (42 U.S.C. 612(a)(3)(A)) is amended
by striking ‘‘403(a)(5)(I)’’ and inserting ‘‘403(a)(5)(H)’’.
(c) Section 403(a)(5)(H)(i)(II) of such Act (42 U.S.C.
603(a)(5)(H)(i)(II)) (as redesignated by subsection (a) of this section
and as amended by section 806(b) of the Departments of Labor,
Health and Human Services, and Education, and Related Agencies
Appropriations Act, 2000 (as enacted into law by section 1000(a)(4)
of Public Law 106–113)) is further amended by striking
‘‘$1,450,000,000’’ and inserting ‘‘$1,400,000,000’’.
(d) The amendments made by subsections (a), (b), and (c) of
this section shall take effect on October 1, 2000.
This title may be cited as the ‘‘Department of Labor Appropriations Act, 2001’’.
TITLE II—DEPARTMENT OF HEALTH AND HUMAN
SERVICES
HEALTH RESOURCES
AND
SERVICES ADMINISTRATION
HEALTH RESOURCES AND SERVICES
For carrying out titles II, III, VII, VIII, X, XII, XIX, and
XXVI of the Public Health Service Act, section 427(a) of the Federal
Coal Mine Health and Safety Act, title V and section 1820 of
the Social Security Act, the Health Care Quality Improvement
Act of 1986, as amended, the Native Hawaiian Health Care Act
of 1988, as amended, and the Poison Control Center Enhancement
and Awareness Act, $5,525,476,000, of which $226,224,000 shall
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–13
be available for the construction and renovation of health care
and other facilities, and of which $25,000,000 from general revenues, notwithstanding section 1820( j) of the Social Security Act,
shall be available for carrying out the Medicare rural hospital
flexibility grants program under section 1820 of such Act: Provided,
That the Division of Federal Occupational Health may utilize personal services contracting to employ professional management/
administrative and occupational health professionals: Provided further, That of the funds made available under this heading, $250,000
shall be available until expended for facilities renovations at the
Gillis W. Long Hansen’s Disease Center: Provided further, That
in addition to fees authorized by section 427(b) of the Health Care
Quality Improvement Act of 1986, fees shall be collected for the
full disclosure of information under the Act sufficient to recover
the full costs of operating the National Practitioner Data Bank,
and shall remain available until expended to carry out that Act:
Provided further, That fees collected for the full disclosure of
information under the ‘‘Health Care Fraud and Abuse Data Collection Program,’’ authorized by section 1128E(d)(2) of the Social Security Act, shall be sufficient to recover the full costs of operating
the program, and shall remain available until expended to carry
out that Act: Provided further, That no more than $5,000,000 is
available for carrying out the provisions of Public Law 104–73:
Provided further, That of the funds made available under this
heading, $253,932,000 shall be for the program under title X of
the Public Health Service Act to provide for voluntary family planning projects: Provided further, That amounts provided to said
projects under such title shall not be expended for abortions, that
all pregnancy counseling shall be nondirective, and that such
amounts shall not be expended for any activity (including the
publication or distribution of literature) that in any way tends
to promote public support or opposition to any legislative proposal
or candidate for public office: Provided further, That $589,000,000
shall be for State AIDS Drug Assistance Programs authorized by
section 2616 of the Public Health Service Act: Provided further,
That of the amount provided under this heading, $700,000 shall
be for the American Federation of Negro Affairs Education and
Research Fund of Philadelphia, $900,000 shall be for the Des Moines
University Osteopathic Medical Center, $250,000 shall be for the
University of Alaska, Anchorage, to train Alaska Natives as
psychologists, $900,000 shall be for Northeastern University in
Boston, Massachusetts, to train doctors to serve in low-income
communities, $500,000 shall be for the University of Alaska,
Anchorage, to recruit and train nurses in rural areas, and $230,000
shall be for the Illinois Poison Center: Provided further, That,
notwithstanding section 502(a)(1) of the Social Security Act, not
to exceed $113,728,000 is available for carrying out special projects
of regional and national significance pursuant to section 501(a)(2)
of such Act, of which $5,000,000 is for Columbia Hospital for Women
Medical Center in Washington, D.C., to support community outreach
programs for women, $5,000,000 is for continuation of the traumatic
brain injury State demonstration projects, and $100,000 is for St.
Joseph’s Health Services of Rhode Island for the Providence Smiles
dental program for low-income children.
For special projects of regional and national significance under
section 501(a)(2) of the Social Security Act, $30,000,000, which
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114 STAT. 2763A–14
PUBLIC LAW 106–554—APPENDIX A
shall become available on October 1, 2001, and shall remain available until September 30, 2002: Provided, That such amount shall
not be counted toward compliance with the allocation required
in section 502(a)(1) of such Act: Provided further, That such amount
shall be used only for making competitive grants to provide
abstinence education (as defined in section 510(b)(2) of such Act)
to adolescents and for evaluations (including longitudinal evaluations) of activities under the grants and for Federal costs of administering the grants: Provided further, That grants shall be made
only to public and private entities which agree that, with respect
to an adolescent to whom the entities provide abstinence education
under such grant, the entities will not provide to that adolescent
any other education regarding sexual conduct, except that, in the
case of an entity expressly required by law to provide health
information or services the adolescent shall not be precluded from
seeking health information or services from the entity in a different
setting than the setting in which the abstinence education was
provided: Provided further, That the funds expended for such
evaluations may not exceed 3.5 percent of such amount.
HEALTH EDUCATION ASSISTANCE LOANS PROGRAM
Such sums as may be necessary to carry out the purpose
of the program, as authorized by title VII of the Public Health
Service Act, as amended. For administrative expenses to carry
out the guaranteed loan program, including section 709 of the
Public Health Service Act, $3,679,000.
VACCINE INJURY COMPENSATION PROGRAM TRUST FUND
For payments from the Vaccine Injury Compensation Program
Trust Fund, such sums as may be necessary for claims associated
with vaccine-related injury or death with respect to vaccines
administered after September 30, 1988, pursuant to subtitle 2 of
title XXI of the Public Health Service Act, to remain available
until expended: Provided, That for necessary administrative
expenses, not to exceed $2,992,000 shall be available from the
Trust Fund to the Secretary of Health and Human Services.
CENTERS
FOR
DISEASE CONTROL
AND
PREVENTION
DISEASE CONTROL, RESEARCH, AND TRAINING
To carry out titles II, III, VII, XI, XV, XVII, XIX, and XXVI
of the Public Health Service Act, sections 101, 102, 103, 201, 202,
203, 301, and 501 of the Federal Mine Safety and Health Act
of 1977, sections 20, 21, and 22 of the Occupational Safety and
Health Act of 1970, title IV of the Immigration and Nationality
Act, and section 501 of the Refugee Education Assistance Act of
1980; including insurance of official motor vehicles in foreign countries; and hire, maintenance, and operation of aircraft,
$3,868,027,000, of which $175,000,000 shall remain available until
expended for the facilities master plan for equipment and construction and renovation of facilities, and in addition, such sums as
may be derived from authorized user fees, which shall be credited
to this account, and of which $104,527,000 for international HIV/
AIDS programs shall remain available until September 30, 2002:
Provided, That in addition to amounts provided herein, up to
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–15
$71,690,000 shall be available from amounts available under section
241 of the Public Health Service Act to carry out the National
Center for Health Statistics Surveys: Provided further, That none
of the funds made available for injury prevention and control at
the Centers for Disease Control and Prevention may be used to
advocate or promote gun control: Provided further, That the Director
may redirect the total amount made available under authority
of Public Law 101–502, section 3, dated November 3, 1990, to
activities the Director may so designate: Provided further, That
the Congress is to be notified promptly of any such transfer: Provided further, That not to exceed $10,000,000 may be available
for making grants under section 1509 of the Public Health Service
Act to not more than 15 States: Provided further, That notwithstanding any other provision of law, a single contract or related
contracts for development and construction of facilities may be
employed which collectively include the full scope of the project:
Provided further, That the solicitation and contract shall contain
the clause ‘‘availability of funds’’ found at 48 CFR 52.232–18: Provided further, That funds obligated for influenza vaccine stockpile
in fiscal year 2000 and fiscal year 2001 shall be considered as
appropriated under section 3 of Public Law 101–502.
NATIONAL INSTITUTES
OF
HEALTH
NATIONAL CANCER INSTITUTE
For carrying out section 301 and title IV of the Public Health
Service Act with respect to cancer, $3,757,242,000.
NATIONAL HEART, LUNG, AND BLOOD INSTITUTE
For carrying out section 301 and title IV of the Public Health
Service Act with respect to cardiovascular, lung, and blood diseases,
and blood and blood products, $2,299,866,000.
NATIONAL INSTITUTE OF DENTAL AND CRANIOFACIAL RESEARCH
For carrying out section 301 and title IV of the Public Health
Service Act with respect to dental disease, $306,448,000.
NATIONAL INSTITUTE OF DIABETES AND DIGESTIVE AND KIDNEY
DISEASES
For carrying out section 301 and title IV of the Public Health
Service Act with respect to diabetes and digestive and kidney disease, $1,303,385,000.
NATIONAL INSTITUTE OF NEUROLOGICAL DISORDERS AND STROKE
For carrying out section 301 and title IV of the Public Health
Service Act with respect to neurological disorders and stroke,
$1,176,482,000.
NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES
For carrying out section 301 and title IV of the Public Health
Service Act with respect to allergy and infectious diseases,
$2,043,208,000.
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114 STAT. 2763A–16
PUBLIC LAW 106–554—APPENDIX A
NATIONAL INSTITUTE OF GENERAL MEDICAL SCIENCES
For carrying out section 301 and title IV of the Public Health
Service Act with respect to general medical sciences, $1,535,823,000.
NATIONAL INSTITUTE OF CHILD HEALTH AND HUMAN DEVELOPMENT
For carrying out section 301 and title IV of the Public Health
Service Act with respect to child health and human development,
$976,455,000.
NATIONAL EYE INSTITUTE
For carrying out section 301 and title IV of the Public Health
Service Act with respect to eye diseases and visual disorders,
$510,611,000.
NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SCIENCES
For carrying out sections 301 and 311 and title IV of the
Public Health Service Act with respect to environmental health
sciences, $502,549,000.
NATIONAL INSTITUTE ON AGING
For carrying out section 301 and title IV of the Public Health
Service Act with respect to aging, $786,039,000.
NATIONAL INSTITUTE OF ARTHRITIS AND MUSCULOSKELETAL AND SKIN
DISEASES
For carrying out section 301 and title IV of the Public Health
Service Act with respect to arthritis and musculoskeletal and skin
diseases, $396,687,000.
NATIONAL INSTITUTE ON DEAFNESS AND OTHER COMMUNICATION
DISORDERS
For carrying out section 301 and title IV of the Public Health
Service Act with respect to deafness and other communication disorders, $300,581,000.
NATIONAL INSTITUTE OF NURSING RESEARCH
For carrying out section 301 and title IV of the Public Health
Service Act with respect to nursing research, $104,370,000.
NATIONAL INSTITUTE ON ALCOHOL ABUSE AND ALCOHOLISM
For carrying out section 301 and title IV of the Public Health
Service Act with respect to alcohol abuse and alcoholism,
$340,678,000.
NATIONAL INSTITUTE ON DRUG ABUSE
For carrying out section 301 and title IV of the Public Health
Service Act with respect to drug abuse, $781,327,000.
NATIONAL INSTITUTE OF MENTAL HEALTH
For carrying out section 301 and title IV of the Public Health
Service Act with respect to mental health, $1,107,028,000.
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–17
NATIONAL HUMAN GENOME RESEARCH INSTITUTE
For carrying out section 301 and title IV of the Public Health
Service Act with respect to human genome research, $382,384,000.
NATIONAL CENTER FOR RESEARCH RESOURCES
For carrying out section 301 and title IV of the Public Health
Service Act with respect to research resources and general research
support grants, $817,475,000: Provided, That none of these funds
shall be used to pay recipients of the general research support
grants program any amount for indirect expenses in connection
with such grants: Provided further, That $75,000,000 shall be for
extramural facilities construction grants.
JOHN E. FOGARTY INTERNATIONAL CENTER
For carrying out the activities at the John E. Fogarty International Center, $50,514,000.
NATIONAL LIBRARY OF MEDICINE
For carrying out section 301 and title IV of the Public Health
Service Act with respect to health information communications,
$246,801,000, of which $4,000,000 shall be available until expended
for improvement of information systems: Provided, That in fiscal
year 2001, the Library may enter into personal services contracts
for the provision of services in facilities owned, operated, or constructed under the jurisdiction of the National Institutes of Health.
NATIONAL CENTER FOR COMPLEMENTARY AND ALTERNATIVE
MEDICINE
For carrying out section 301 and title IV of the Public Health
Service Act with respect to complementary and alternative medicine, $89,211,000.
NATIONAL CENTER ON MINORITY HEALTH AND HEALTH DISPARITIES
For carrying out section 301 and title IV of the Public Health
Service Act with respect to minority health and health disparities
research, $130,200,000.
OFFICE OF THE DIRECTOR
(INCLUDING
TRANSFER OF FUNDS)
For carrying out the responsibilities of the Office of the Director,
National Institutes of Health, $213,581,000, of which $48,271,000
shall be for the Office of AIDS Research: Provided, That funding
shall be available for the purchase of not to exceed 20 passenger
motor vehicles for replacement only: Provided further, That the
Director may direct up to 1 percent of the total amount made
available in this or any other Act to all National Institutes of
Health appropriations to activities the Director may so designate:
Provided further, That no such appropriation shall be decreased
by more than 1 percent by any such transfers and that the Congress
is promptly notified of the transfer: Provided further, That the
National Institutes of Health is authorized to collect third party
payments for the cost of clinical services that are incurred in
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114 STAT. 2763A–18
PUBLIC LAW 106–554—APPENDIX A
National Institutes of Health research facilities and that such payments shall be credited to the National Institutes of Health Management Fund: Provided further, That all funds credited to the National
Institutes of Health Management Fund shall remain available for
1 fiscal year after the fiscal year in which they are deposited:
Provided further, That up to $500,000 shall be available to carry
out section 499 of the Public Health Service Act: Provided further,
That, notwithstanding section 499(k)(10) of the Public Health Service Act, funds from the Foundation for the National Institutes
of Health may be transferred to the National Institutes of Health.
BUILDINGS AND FACILITIES
For the study of, construction of, and acquisition of equipment
for, facilities of or used by the National Institutes of Health, including the acquisition of real property, $153,790,000, to remain available until expended, of which $47,300,000 shall be for the National
Neuroscience Research Center: Provided, That notwithstanding any
other provision of law, a single contract or related contracts for
the development and construction of the first phase of the National
Neuroscience Research Center may be employed which collectively
include the full scope of the project: Provided further, That the
solicitation and contract shall contain the clause ‘‘availability of
funds’’ found at 48 CFR 52.232–18.
SUBSTANCE ABUSE
AND
MENTAL HEALTH SERVICES ADMINISTRATION
SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES
For carrying out titles V and XIX of the Public Health Service
Act with respect to substance abuse and mental health services,
the Protection and Advocacy for Mentally Ill Individuals Act of
1986, and section 301 of the Public Health Service Act with respect
to program management, $2,958,001,000, of which $24,605,000 shall
be available for the projects and in the amounts specified in the
statement of the managers on the conference report accompanying
this Act.
AGENCY
FOR
HEALTHCARE RESEARCH
AND
QUALITY
HEALTHCARE RESEARCH AND QUALITY
For carrying out titles III and IX of the Public Health Service
Act, and part A of title XI of the Social Security Act, $104,963,000;
in addition, amounts received from Freedom of Information Act
fees, reimbursable and interagency agreements, and the sale of
data shall be credited to this appropriation and shall remain available until expended: Provided, That the amount made available
pursuant to section 926(b) of the Public Health Service Act shall
not exceed $164,980,000.
HEALTH CARE FINANCING ADMINISTRATION
GRANTS TO STATES FOR MEDICAID
For carrying out, except as otherwise provided, titles XI and
XIX of the Social Security Act, $93,586,251,000, to remain available
until expended.
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–19
For making, after May 31, 2001, payments to States under
title XIX of the Social Security Act for the last quarter of fiscal
year 2001 for unanticipated costs, incurred for the current fiscal
year, such sums as may be necessary.
For making payments to States or in the case of section 1928
on behalf of States under title XIX of the Social Security Act
for the first quarter of fiscal year 2002, $36,207,551,000, to remain
available until expended.
Payment under title XIX may be made for any quarter with
respect to a State plan or plan amendment in effect during such
quarter, if submitted in or prior to such quarter and approved
in that or any subsequent quarter.
PAYMENTS TO HEALTH CARE TRUST FUNDS
For payment to the Federal Hospital Insurance and the Federal
Supplementary Medical Insurance Trust Funds, as provided under
sections 217(g) and 1844 of the Social Security Act, sections 103(c)
and 111(d) of the Social Security Amendments of 1965, section
278(d) of Public Law 97–248, and for administrative expenses
incurred pursuant to section 201(g) of the Social Security Act,
$70,381,600,000.
PROGRAM MANAGEMENT
For carrying out, except as otherwise provided, titles XI, XVIII,
XIX, and XXI of the Social Security Act, titles XIII and XXVII
of the Public Health Service Act, and the Clinical Laboratory
Improvement Amendments of 1988, not to exceed $2,246,326,000,
to be transferred from the Federal Hospital Insurance and the
Federal Supplementary Medical Insurance Trust Funds, as authorized by section 201(g) of the Social Security Act; together with
all funds collected in accordance with section 353 of the Public
Health Service Act and such sums as may be collected from authorized user fees and the sale of data, which shall remain available
until expended, and together with administrative fees collected
relative to Medicare overpayment recovery activities, which shall
remain available until expended: Provided, That all funds derived
in accordance with 31 U.S.C. 9701 from organizations established
under title XIII of the Public Health Service Act shall be credited
to and available for carrying out the purposes of this appropriation:
Provided further, That $18,000,000 appropriated under this heading
for the managed care system redesign shall remain available until
expended: Provided further, That $20,000,000 of the amount available for research, demonstration, and evaluation activities shall
be available to continue carrying out demonstration projects on
Medicaid coverage of community-based attendant care services for
people with disabilities which ensures maximum control by the
consumer to select and manage their attendant care services: Provided further, That the Secretary of Health and Human Services
is directed to enter into an agreement with the Mind-Body Institute
of Boston, Massachusetts, to conduct a demonstration of a lifestyle
modification program: Provided further, That $2,800,000 of the
amount available for research, demonstration, and evaluation activities shall be awarded for administration, evaluation, quality monitoring and peer review of this lifestyle modification demonstration:
Provided further, That $2,800,000 of the amount available for
research, demonstration, and evaluation activities shall be awarded
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114 STAT. 2763A–20
PUBLIC LAW 106–554—APPENDIX A
to a joint application from the University of Pittsburgh, Case Western Reserve in Cleveland, Ohio, and Mt. Sinai Hospital in Miami,
Florida, to use integrated nursing services and technology to implement daily monitoring of congestive heart failure patients in underserved populations in accordance with established clinical guidelines: Provided further, That $500,000 of the amount available
for research, demonstration, and evaluation activities shall be
awarded to the University of Pittsburgh Medical Center and University of Pennsylvania for a study of the efficacy of surgical versus
non-surgical management of abdominal aneurysms: Provided further, That $650,000 of the amount available for research, demonstration, and evaluation activities shall be awarded to the Vascular Surgery Outcome Initiative at Dartmouth College: Provided
further, That up to $300,000 of the amount available for research,
demonstration, and evaluation activities shall be awarded to the
United States-Mexico Border Counties Coalition for a study to determine the unreimbursed costs incurred to treat undocumented aliens
for medical emergencies in southwest border States, their border
counties, and hospitals within the jurisdiction of these States and
counties: Provided further, That $1,700,000 of the amount available
for research, demonstration, and evaluation activities shall be
awarded to the AIDS Healthcare Foundation in Los Angeles for
a demonstration of residential and outpatient treatment facilities:
Provided further, That $350,000 of the amount available for
research, demonstration, and evaluation activities shall be awarded
to the Cook County, Illinois Bureau of Health for the Asthma
Champion Initiative demonstration to reduce morbidity and mortality from asthma in high prevalence areas: Provided further, That
$1,000,000 of the amount available for research, demonstration,
and evaluation activities shall be awarded to the West Virginia
University School of Medicine’s Eye Center to test interventions
and improve the quality of life for individuals with low vision,
with a particular focus on the elderly: Provided further, That
$1,000,000 of the amount available for research, demonstration,
and evaluation activities shall be awarded to the Iowa Department
of Public Health for the establishment and operation of a mercantile
prescription drug purchasing cooperative or non-profit corporation
demonstration: Provided further, That $691,000 of the amount available for research, demonstration, and evaluation activities shall
be awarded to Ohio State University to determine the benefits
of compliance packaging: Provided further, That $855,000 of the
amount available for research, demonstration, and evaluation activities shall be awarded to Children’s Hospice International for a
demonstration project to provide a continuum of care for children
with life-threatening conditions and their families: Provided further,
That $921,000 of the amount available for research, demonstration,
and evaluation activities shall be awarded to Equip for Equality
for a demonstration project to document the impact of an independent investigative unit that will examine deaths or other serious
allegations of abuse and neglect of people with disabilities at facilities in Illinois: Provided further, That $1,000,000 of the amount
available for research, demonstration, and evaluation activities shall
be awarded to Duke University Medical Center to demonstrate
the potential savings in the Medicare program of a reimbursement
system based on preventative care: Provided further, That
$1,843,000 of the amount available for research, demonstration,
and evaluation activities shall be awarded to Bucks County,
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–21
Pennsylvania, for a health improvement project: Provided further,
That $255,000 of the amount available for research, demonstration,
and evaluation activities shall be awarded to the LA Care Health
Plan in Los Angeles, California, for a demonstration program to
improve clinical data coordination among Medicaid providers: Provided further, That $646,000 of the amount available for research,
demonstration, and evaluation activities shall be for the Shelby
County Regional Medical Center to establish a Master Patient
Index to determine patient Medicaid/TennCare eligibility: Provided
further, That the Secretary of Health and Human Services is
directed to collect fees in fiscal year 2001 from Medicare∂Choice
organizations pursuant to section 1857(e)(2) of the Social Security
Act and from eligible organizations with risk-sharing contracts
under section 1876 of that Act pursuant to section 1876(k)(4)(D)
of that Act.
HEALTH MAINTENANCE ORGANIZATION LOAN AND LOAN GUARANTEE
FUND
For carrying out subsections (d) and (e) of section 1308 of
the Public Health Service Act, any amounts received by the Secretary in connection with loans and loan guarantees under title
XIII of the Public Health Service Act, to be available without
fiscal year limitation for the payment of outstanding obligations.
During fiscal year 2001, no commitments for direct loans or loan
guarantees shall be made.
ADMINISTRATION
FOR
CHILDREN
AND
FAMILIES
PAYMENTS TO STATES FOR CHILD SUPPORT ENFORCEMENT AND
FAMILY SUPPORT PROGRAMS
For making payments to States or other non-Federal entities
under titles I, IV–D, X, XI, XIV, and XVI of the Social Security
Act and the Act of July 5, 1960 (24 U.S.C. ch. 9), $2,441,800,000,
to remain available until expended; and for such purposes for the
first quarter of fiscal year 2002, $1,000,000,000, to remain available
until expended.
For making payments to each State for carrying out the program of Aid to Families with Dependent Children under title IV–
A of the Social Security Act before the effective date of the program
of Temporary Assistance to Needy Families (TANF) with respect
to such State, such sums as may be necessary: Provided, That
the sum of the amounts available to a State with respect to expenditures under such title IV–A in fiscal year 1997 under this appropriation and under such title IV–A as amended by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 shall
not exceed the limitations under section 116(b) of such Act.
For making, after May 31 of the current fiscal year, payments
to States or other non-Federal entities under titles I, IV–D, X,
XI, XIV, and XVI of the Social Security Act and the Act of July
5, 1960 (24 U.S.C. ch. 9), for the last 3 months of the current
year for unanticipated costs, incurred for the current fiscal year,
such sums as may be necessary.
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114 STAT. 2763A–22
PUBLIC LAW 106–554—APPENDIX A
LOW INCOME HOME ENERGY ASSISTANCE
For making payments under title XXVI of the Omnibus Budget
Reconciliation Act of 1981, in addition to amounts already appropriated for fiscal year 2001, $300,000,000.
For making payments under title XXVI of the Omnibus Reconciliation Act of 1981, $300,000,000: Provided, That these funds
are hereby designated by the Congress to be emergency requirements pursuant to section 251(b)(2)(A) of the Balanced Budget
and Emergency Deficit Control Act of 1985: Provided further, That
these funds shall be made available only after submission to the
Congress of a formal budget request by the President that includes
designation of the entire amount of the request as an emergency
requirement as defined in such Act.
REFUGEE AND ENTRANT ASSISTANCE
For making payments for refugee and entrant assistance activities authorized by title IV of the Immigration and Nationality
Act and section 501 of the Refugee Education Assistance Act of
1980 (Public Law 96–422), $423,109,000: Provided, That funds
appropriated pursuant to section 414(a) of the Immigration and
Nationality Act for fiscal year 2001 shall be available for the costs
of assistance provided and other activities through September 30,
2003: Provided further, That up to $5,000,000 is available to carry
out the Trafficking Victims Protection Act of 2000.
For carrying out section 5 of the Torture Victims Relief Act
of 1998 (Public Law 105–320), $10,000,000.
PAYMENTS TO STATES FOR THE CHILD CARE AND DEVELOPMENT
BLOCK GRANT
For carrying out sections 658A through 658R of the Omnibus
Budget Reconciliation Act of 1981 (The Child Care and Development
Block Grant Act of 1990), in addition to amounts already appropriated for fiscal year 2001, $817,328,000, such funds shall be
used to supplement, not supplant State general revenue funds
for child care assistance for low-income families: Provided, That
of the funds appropriated for fiscal year 2001, $19,120,000 shall
be available for child care resource and referral and school-aged
child care activities, of which $1,000,000 shall be for the Child
Care Aware toll free hotline: Provided further, That of the funds
appropriated for fiscal year 2001, in addition to the amounts
required to be reserved by the States under section 658G,
$272,672,000 shall be reserved by the States for activities authorized under section 658G, of which $100,000,000 shall be for activities that improve the quality of infant and toddler child care:
Provided further, That of the funds appropriated for fiscal year
2001, $10,000,000 shall be for use by the Secretary for child care
research, demonstration, and evaluation activities.
SOCIAL SERVICES BLOCK GRANT
For making grants to States pursuant to section 2002 of the
Social Security Act, $1,725,000,000: Provided, That notwithstanding
section 2003(c) of such Act, as amended, the amount specified
for allocation under such section for fiscal year 2001 shall be
$1,725,000,000: Provided further, That, notwithstanding subparagraph (B) of section 404(d)(2) of such Act, the applicable percent
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–23
specified under such subparagraph for a State to carry out State
programs pursuant to title XX of such Act shall be 10 percent.
CHILDREN AND FAMILIES SERVICES PROGRAMS
(INCLUDING
RESCISSIONS)
For carrying out, except as otherwise provided, the Runaway
and Homeless Youth Act, the Developmental Disabilities Assistance
and Bill of Rights Act, the Head Start Act, the Child Abuse Prevention and Treatment Act, the Native American Programs Act of
1974, title II of Public Law 95–266 (adoption opportunities), the
Adoption and Safe Families Act of 1997 (Public Law 105–89), the
Abandoned Infants Assistance Act of 1988, the Early Learning
Opportunities Act, part B(1) of title IV and sections 413, 429A,
1110, and 1115 of the Social Security Act, and sections 40155,
40211, and 40241 of Public law 103–322; for making payments
under the Community Services Block Grant Act, section 473A of
the Social Security Act, and title IV of Public Law 105–285, and
for necessary administrative expenses to carry out said Acts and
titles I, IV, X, XI, XIV, XVI, and XX of the Social Security Act,
the Act of July 5, 1960 (24 U.S.C. ch. 9), the Omnibus Budget
Reconciliation Act of 1981, title IV of the Immigration and Nationality Act, section 501 of the Refugee Education Assistance Act of
1980, section 5 of the Torture Victims Relief Act of 1998 (Public
Law 105–320), sections 40155, 40211, and 40241 of Public Law
103–322 and section 126 and titles IV and V of Public Law 100–
485, $7,956,345,000, of which $43,000,000, to remain available until
September 30, 2002, shall be for grants to States for adoption
incentive payments, as authorized by section 473A of title IV of
the Social Security Act (42 U.S.C. 670–679) and may be made
for adoptions completed in fiscal years 1999 and 2000; of which
$682,876,000 shall be for making payments under the Community
Services Block Grant Act; and of which $6,200,000,000 shall be
for making payments under the Head Start Act, of which
$1,400,000,000 shall become available October 1, 2001 and remain
available through September 30, 2002: Provided, That to the extent
Community Services Block Grant funds are distributed as grant
funds by a State to an eligible entity as provided under the Act,
and have not been expended by such entity, they shall remain
with such entity for carryover into the next fiscal year for expenditure by such entity consistent with program purposes: Provided
further, That the Secretary shall establish procedures regarding
the disposition of intangible property which permits grant funds,
or intangible assets acquired with funds authorized under section
680 of the Community Services Block Grant Act, as amended,
to become the sole property of such grantees after a period of
not more than 12 years after the end of the grant for purposes
and uses consistent with the original grant.
Funds appropriated for fiscal year 2001 under section 429A(e),
part B of title IV of the Social Security Act shall be reduced
by $6,000,000.
Funds appropriated for fiscal year 2001 under section 413(h)(1)
of the Social Security Act shall be reduced by $15,000,000.
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114 STAT. 2763A–24
PUBLIC LAW 106–554—APPENDIX A
PROMOTING SAFE AND STABLE FAMILIES
For carrying out section 430 of the Social Security Act,
$305,000,000.
PAYMENTS TO STATES FOR FOSTER CARE AND ADOPTION ASSISTANCE
For making payments to States or other non-Federal entities
under title IV–E of the Social Security Act, $4,863,100,000.
For making payments to States or other non-Federal entities
under title IV–E of the Social Security Act, for the first quarter
of fiscal year 2002, $1,735,900,000.
ADMINISTRATION
ON
AGING
AGING SERVICES PROGRAMS
For carrying out, to the extent not otherwise provided, the
Older Americans Act of 1965, as amended, and section 398 of
the Public Health Service Act, $1,103,135,000, of which $5,000,000
shall be available for activities regarding medication management,
screening, and education to prevent incorrect medication and
adverse drug reactions: Provided, That notwithstanding section
308(b)(1) of the Older Americans Act of 1965, as amended, the
amounts available to each State for administration of the State
plan under title III of such Act shall be reduced not more than
5 percent below the amount that was available to such State for
such purpose for fiscal year 1995.
OFFICE
OF THE
SECRETARY
GENERAL DEPARTMENTAL MANAGEMENT
For necessary expenses, not otherwise provided, for general
departmental management, including hire of six sedans, and for
carrying out titles III, XVII, and XX of the Public Health Service
Act, and the United States-Mexico Border Health Commission Act,
$285,224,000, together with $5,851,000, to be transferred and
expended as authorized by section 201(g)(1) of the Social Security
Act from the Hospital Insurance Trust Fund and the Supplemental
Medical Insurance Trust Fund: Provided further, That of the funds
made available under this heading for carrying out title XX of
the Public Health Service Act, $10,377,000 shall be for activities
specified under section 2003(b)(2), of which $10,157,000 shall be
for prevention service demonstration grants under section 510(b)(2)
of title V of the Social Security Act, as amended, without application
of the limitation of section 2010(c) of said title XX: Provided further,
That no funds shall be obligated for minority AIDS prevention
and treatment activities until the Department of Health and Human
Services submits an operating plan to the House and Senate
Committees on Appropriations.
OFFICE OF INSPECTOR GENERAL
For expenses necessary for the Office of Inspector General
in carrying out the provisions of the Inspector General Act of
1978, as amended, $33,849,000: Provided, That of such amount,
necessary sums are available for providing protective services to
the Secretary and investigating non-payment of child support cases
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–25
for which non-payment is a Federal offense under 18 U.S.C. 228,
each of which activities is hereby authorized in this and subsequent
fiscal years.
OFFICE FOR CIVIL RIGHTS
For expenses necessary for the Office for Civil Rights,
$24,742,000, together with not to exceed $3,314,000, to be transferred and expended as authorized by section 201(g)(1) of the Social
Security Act from the Hospital Insurance Trust Fund and the
Supplemental Medical Insurance Trust Fund.
POLICY RESEARCH
For carrying out, to the extent not otherwise provided, research
studies under section 1110 of the Social Security Act, $16,738,000.
RETIREMENT PAY AND MEDICAL BENEFITS FOR COMMISSIONED
OFFICERS
For retirement pay and medical benefits of Public Health Service Commissioned Officers as authorized by law, for payments under
the Retired Serviceman’s Family Protection Plan and Survivor
Benefit Plan, for medical care of dependents and retired personnel
under the Dependents’ Medical Care Act (10 U.S.C. ch. 55), and
for payments pursuant to section 229(b) of the Social Security
Act (42 U.S.C. 429(b)), such amounts as may be required during
the current fiscal year.
PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND
For expenses necessary to support activities related to countering potential biological, disease and chemical threats to civilian
populations, $241,231,000: Provided, That this amount is distributed as follows: Centers for Disease Control and Prevention,
$181,131,000, of which $32,000,000 shall be for the Health Alert
Network and $18,040,000 shall be for the continued study of the
anthrax vaccine; and Office of Emergency Preparedness,
$60,100,000.
GENERAL PROVISIONS
SEC. 201. Funds appropriated in this title shall be available
for not to exceed $37,000 for official reception and representation
expenses when specifically approved by the Secretary.
SEC. 202. The Secretary shall make available through assignment not more than 60 employees of the Public Health Service
to assist in child survival activities and to work in AIDS programs
through and with funds provided by the Agency for International
Development, the United Nations International Children’s Emergency Fund or the World Health Organization.
SEC. 203. None of the funds appropriated under this Act may
be used to implement section 399L(b) of the Public Health Service
Act or section 1503 of the National Institutes of Health Revitalization Act of 1993, Public Law 103–43.
SEC. 204. None of the funds appropriated in this Act for the
National Institutes of Health and the Substance Abuse and Mental
Health Services Administration shall be used to pay the salary
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114 STAT. 2763A–26
PUBLIC LAW 106–554—APPENDIX A
of an individual, through a grant or other extramural mechanism,
at a rate in excess of Executive Level I.
SEC. 205. None of the funds appropriated in this Act may
be expended pursuant to section 241 of the Public Health Service
Act, except for funds specifically provided for in this Act, or for
other taps and assessments made by any office located in the
Department of Health and Human Services, prior to the Secretary’s
preparation and submission of a report to the Committee on Appropriations of the Senate and of the House detailing the planned
uses of such funds.
(TRANSFER
OF FUNDS)
SEC. 206. Not to exceed 1 percent of any discretionary funds
(pursuant to the Balanced Budget and Emergency Deficit Control
Act of 1985, as amended) which are appropriated for the current
fiscal year for the Department of Health and Human Services
in this Act may be transferred between appropriations, but no
such appropriation shall be increased by more than 3 percent by
any such transfer: Provided, That the Appropriations Committees
of both Houses of Congress are notified at least 15 days in advance
of any transfer.
SEC. 207. The Director of the National Institutes of Health,
jointly with the Director of the Office of AIDS Research, may
transfer up to 3 percent among institutes, centers, and divisions
from the total amounts identified by these two Directors as funding
for research pertaining to the human immunodeficiency virus: Provided, That the Congress is promptly notified of the transfer.
SEC. 208. Of the amounts made available in this Act for the
National Institutes of Health, the amount for research related to
the human immunodeficiency virus, as jointly determined by the
Director of the National Institutes of Health and the Director of
the Office of AIDS Research, shall be made available to the ‘‘Office
of AIDS Research’’ account. The Director of the Office of AIDS
Research shall transfer from such account amounts necessary to
carry out section 2353(d)(3) of the Public Health Service Act.
SEC. 209. None of the funds appropriated in this Act may
be made available to any entity under title X of the Public Health
Service Act unless the applicant for the award certifies to the
Secretary that it encourages family participation in the decision
of minors to seek family planning services and that it provides
counseling to minors on how to resist attempts to coerce minors
into engaging in sexual activities.
SEC. 210. None of the funds appropriated by this Act (including
funds appropriated to any trust fund) may be used to carry out
the Medicare+Choice program if the Secretary denies participation
in such program to an otherwise eligible entity (including a Provider
Sponsored Organization) because the entity informs the Secretary
that it will not provide, pay for, provide coverage of, or provide
referrals for abortions: Provided, That the Secretary shall make
appropriate prospective adjustments to the capitation payment to
such an entity (based on an actuarially sound estimate of the
expected costs of providing the service to such entity’s enrollees):
Provided further, That nothing in this section shall be construed
to change the Medicare program’s coverage for such services and
a Medicare+Choice organization described in this section shall be
responsible for informing enrollees where to obtain information
about all Medicare covered services.
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–27
SEC. 211. Notwithstanding any other provision of law, no provider of services under title X of the Public Health Service Act
shall be exempt from any State law requiring notification or the
reporting of child abuse, child molestation, sexual abuse, rape,
or incest.
SEC. 212. The Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 1990 (Public Law 101–167)
is amended—
(1) in section 599D (8 U.S.C. 1157 note)—
(A) in subsection (b)(3), by striking ‘‘1997, 1998, 1999,
and 2000’’ and inserting ‘‘1997, 1998, 1999, 2000, and
2001’’; and
(B) in subsection (e), by striking ‘‘October 1, 2000’’
each place it appears and inserting ‘‘October 1, 2001’’;
and
(2) in section 599E (8 U.S.C. 1255 note) in subsection
(b)(2), by striking ‘‘September 30, 2000’’ and inserting ‘‘September 30, 2001’’.
SEC. 213. None of the funds provided in this Act or in any
other Act making appropriations for fiscal year 2001 may be used
to administer or implement in Arizona or in the Kansas City,
Missouri or in the Kansas City, Kansas area the Medicare Competitive Pricing Demonstration Project (operated by the Secretary of
Health and Human Services).
SEC. 214. (a) Except as provided by subsection (e) none of
the funds appropriated by this Act may be used to withhold substance abuse funding from a State pursuant to section 1926 of
the Public Health Service Act (42 U.S.C. 300x–26) if such State
certifies to the Secretary of Health and Human Services by March
1, 2001 that the State will commit additional State funds, in accordance with subsection (b), to ensure compliance with State laws
prohibiting the sale of tobacco products to individuals under 18
years of age.
(b) The amount of funds to be committed by a State under
subsection (a) shall be equal to 1 percent of such State’s substance
abuse block grant allocation for each percentage point by which
the State misses the retailer compliance rate goal established by
the Secretary of Health and Human Services under section 1926
of such Act.
(c) The State is to maintain State expenditures in fiscal year
2001 for tobacco prevention programs and for compliance activities
at a level that is not less than the level of such expenditures
maintained by the State for fiscal year 2000, and adding to that
level the additional funds for tobacco compliance activities required
under subsection (a). The State is to submit a report to the Secretary
on all fiscal year 2000 State expenditures and all fiscal year 2001
obligations for tobacco prevention and compliance activities by program activity by July 31, 2001.
(d) The Secretary shall exercise discretion in enforcing the
timing of the State obligation of the additional funds required
by the certification described in subsection (a) as late as July
31, 2001.
(e) None of the funds appropriated by this Act may be used
to withhold substance abuse funding pursuant to section 1926 from
a territory that receives less than $1,000,000.
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114 STAT. 2763A–28
PUBLIC LAW 106–554—APPENDIX A
SEC. 215. Section 448 of the Public Health Service Act (42
U.S.C. 285g) is amended by inserting ‘‘gynecologic health,’’ after
‘‘with respect to’’.
SEC. 216. None of the funds appropriated under this Act shall
be expended by the National Institutes of Health on a contract
for the care of the 288 chimpanzees acquired by the National
Institutes of Health from the Coulston Foundation, unless the contractor is accredited by the Association for the Assessment and
Accreditation of Laboratory Animal Care International or has a
Public Health Services assurance, and has not been charged multiple times with egregious violations of the Animal Welfare Act:
Provided, That the requirements of section 481(A)(e)(1) shall not
apply to funds awarded to nonhuman primate research facilities
of special interest to NIH.
SEC. 217. No grants may be awarded under the first paragraph
under the heading ‘‘Department of Health and Human Services,
Health Resources and Services Administration, Health Resources
and Services’’ in chapter 4 of title II of the Emergency Supplemental
Act, 2000 (Public Law 106–246, division B) until March 1, 2001.
SEC. 218. (a) The second sentence of section 5948(d) of title
5, United States Code, is amended to read as follows: ‘‘No agreement
shall be entered into under this section later than September 30,
2005, nor shall any agreement cover a period of service extending
beyond September 30, 2007.’’.
(b) Section 3 of the Federal Physicians Comparability Allowance
Act of 1978 (5 U.S.C. 5948 note) is amended by striking ‘‘September
30, 2002’’ and inserting ‘‘September 30, 2007’’.
SEC. 219. (a) Congress makes the following findings:
(1) Organ procurement organizations play an important
role in the effort to increase organ donation in the United
States.
(2) The current process for the certification and recertification of organ procurement organizations conducted by the
Department of Health and Human Services has created a level
of uncertainty that is interfering with the effectiveness of organ
procurement organizations in raising the level of organ donation.
(3) The General Accounting Office, the Institute of Medicine, and the Harvard School of Public Health have identified
substantial limitations in the organ procurement organization
certification and recertification process and have recommended
changes in that process.
(4) The limitations in the recertification process include:
(A) An exclusive reliance on population-based measures
of performance that do not account for the potential in
the population for organ donation and do not permit consideration of other outcome and process standards that would
more accurately reflect the relative capability and performance of each organ procurement organization.
(B) A lack of due process to appeal to the Secretary
of Health and Human Services for recertification on either
substantive or procedural grounds.
(5) The Secretary of Health and Human Services has the
authority under section 1138(b)(1)(A)(i) of the Social Security
Act (42 U.S.C. 1320b–8(b)(1)(A)(i)) to extend the period for
recertification of an organ procurement organization from 2
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–29
to 4 years on the basis of its past practices in order to avoid
the inappropriate disruption of the nation’s organ system.
(6) The Secretary of Health and Human Services can use
the extended period described in paragraph (5) for recertification of all organ procurement organizations to—
(A) develop improved performance measures that
would reflect organ donor potential and interim outcomes,
and to test these measures to ensure that they accurately
measure performance differences among the organ procurement organizations; and
(B) improve the overall certification process by incorporating process as well as outcome performance measures,
and developing equitable processes for appeals.
(b) Section 371(b)(1) of the Public Health Service Act (42 U.S.C.
273(b)(1)) is amended—
(1) by redesignating subparagraphs (D) through (G) as
subparagraphs (E) through (H), respectively;
(2) by realigning the margin of subparagraph (F) (as so
redesignated) so as to align with subparagraph (E) (as so
redesignated); and
(3) by inserting after subparagraph (C) the following:
‘‘(D) notwithstanding any other provision of law, has met
the other requirements of this section and has been certified
or recertified by the Secretary within the previous 4-year period
as meeting the performance standards to be a qualified organ
procurement organization through a process that either—
‘‘(i) granted certification or recertification within such
4-year period with such certification or recertification in
effect as of January 1, 2000, and remaining in effect
through the earlier of—
‘‘(I) January 1, 2002; or
‘‘(II) the completion of recertification under the
requirements of clause (ii); or
‘‘(ii) is defined through regulations that are promulgated by the Secretary by not later than January 1, 2002,
that—
‘‘(I) require recertifications of qualified organ
procurement organizations not more frequently than
once every 4 years;
‘‘(II) rely on outcome and process performance
measures that are based on empirical evidence,
obtained through reasonable efforts, of organ donor
potential and other related factors in each service area
of qualified organ procurement organizations;
‘‘(III) use multiple outcome measures as part of
the certification process; and
‘‘(IV) provide for a qualified organ procurement
organization to appeal a decertification to the Secretary
on substantive and procedural grounds;’’.
SEC. 220. (a) In order for the Centers for Disease Control
and Prevention to carry out international HIV/AIDS and other
infectious disease, chronic and environmental disease, and other
health activities abroad during fiscal year 2001, the Secretary of
Health and Human Services is authorized to—
(1) utilize the authorities contained in subsection 2(c) of
the State Department Basic Authorities Act of 1956, as amended, subject to the limitations set forth in subsection (b), and
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114 STAT. 2763A–30
PUBLIC LAW 106–554—APPENDIX A
(2) enter into reimbursable agreements with the Department of State using any funds appropriated to the Department
of Health and Human Services, for the purposes for which
the funds were appropriated in accordance with authority
granted to the Secretary of Health and Human Services or
under authority governing the activities of the Department
of State.
(b) In exercising the authority set forth in subsection (a)(1),
the Secretary of Health and Human Services—
(1) shall not award contracts for performance of an inherently governmental function; and
(2) shall follow otherwise applicable Federal procurement
laws and regulations to the maximum extent practicable.
SEC. 221. Notwithstanding any other provision of law, the
Director, National Institutes of Health, may enter into and administer a long-term lease for facilities for the purpose of providing
laboratory, office and other space for biomedical and behavioral
research at the Bayview Campus in Baltimore, Maryland: Provided,
That the House and Senate Appropriations Committees will be
notified of the terms and conditions of the lease upon its execution.
SEC. 222. Of the funds appropriated in this Act for the National
Institutes of Health, $5,800,000 shall be transferred to the Office
of the Secretary, General Departmental Management to support
the newly established Office for Human Research Protections.
SEC. 223. Section 487E(a)(1) of the Public Health Service Act
is amended by striking ‘‘as employees of the National Institutes
of Health’’.
SEC. 224. Notwithstanding any other provision of law relating
to vacancies in offices for which appointments must be made by
the President, including any time limitation on serving in an acting
capacity, the Acting Director of the National Institutes of Health
as of January 12, 2000, may serve in that position until a new
Director of the National Institutes of Health is confirmed by the
Senate.
SEC. 225. The National Neuroscience Research Center to be
constructed on the National Institutes of Health Bethesda campus
is hereby named the John Edward Porter Neuroscience Research
Center.
This title may be cited as the ‘‘Department of Health and
Human Services Appropriations Act, 2001’’.
TITLE III—DEPARTMENT OF EDUCATION
EDUCATION REFORM
For carrying out activities authorized by title IV of the Goals
2000: Educate America Act as in effect prior to September 30,
2000, and sections 3122, 3132, 3136, and 3141, parts B, C, and
D of title III, and section 10105 and part I of title X of the
Elementary and Secondary Education Act of 1965, $1,880,710,000,
of which $38,000,000 shall be for the Goals 2000: Educate America
Act, and of which $191,950,000 shall be for section 3122: Provided,
That up to one-half of 1 percent of the amount available under
section 3132 shall be set aside for the outlying areas, to be distributed on the basis of their relative need as determined by the
Secretary in accordance with the purposes of the program: Provided
further, That if any State educational agency does not apply for
a grant under section 3132, that State’s allotment under section
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–31
3131 shall be reserved by the Secretary for grants to local educational agencies in that State that apply directly to the Secretary
according to the terms and conditions published by the Secretary
in the Federal Register: Provided further, That with respect to
all funds appropriated to carry out section 10901 et seq. in this
Act, the Secretary shall strongly encourage applications for grants
that are to be submitted jointly by a local educational agency
(or a consortium of local educational agencies) and a communitybased organization that has experience in providing before- and
after-school services and all applications submitted to the Secretary
shall contain evidence that the project contains elements that are
designed to assist students in meeting or exceeding State and
local standards in core academic subjects, as appropriate to the
needs of participating children: Provided further, That $125,000,000,
which shall become available on July 1, 2001, and remain available
through September 30, 2002, shall be available to support activities
under section 10105 of part A of title X of the Elementary and
Secondary Education Act of 1965, of which up to 6 percent shall
become available October 1, 2000, and be available for evaluation,
technical assistance, school networking, peer review of applications,
and program outreach activities: Provided further, That funds made
available to local educational agencies under this section shall
be used only for activities related to establishing smaller learning
communities in high schools: Provided further, That $46,328,000
of the funds available to carry out section 3136 of the Elementary
and Secondary Education Act of 1965, $8,768,000 of the funds
available to carry out part B of title III of that Act and $20,614,000
of the funds available to carry out part I of title X of that Act
shall be available for the projects and in the amounts specified
in the statement of the managers on the conference report accompanying this Act.
EDUCATION FOR THE DISADVANTAGED
For carrying out title I of the Elementary and Secondary Education Act of 1965, and section 418A of the Higher Education
Act of 1965, $9,532,621,000, of which $2,731,921,000 shall become
available on July 1, 2001, and shall remain available through
September 30, 2002, and of which $6,758,300,000 shall become
available on October 1, 2001 and shall remain available through
September 30, 2002, for academic year 2001–2002: Provided, That
$7,332,721,000 shall be available for basic grants under section
1124: Provided further, That $225,000,000 of these funds shall
be allocated among the States in the same proportion as funds
are allocated among the States under section 1122, to carry out
section 1116(c): Provided further, That 100 percent of these funds
shall be allocated by States to local educational agencies for the
purposes of carrying out section 1116(c): Provided further, That
all local educational agencies receiving an allocation under the
preceding proviso, and all other local educational agencies that
are within a State that receives funds under part A of title I
of the Elementary and Secondary Education Act of 1965 (other
than a local educational agency within a State receiving a minimum
grant under section 1124(d) or 1124A(a)(1)(B) of such Act), shall
provide all students enrolled in a school identified under section
1116(c) with the option to transfer to another public school within
the local educational agency, including a public charter school,
that has not been identified for school improvement under section
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114 STAT. 2763A–32
PUBLIC LAW 106–554—APPENDIX A
1116(c), unless such option to transfer is prohibited by State law,
or local law, which includes school board-approved local educational
agency policy: Provided further, That if the local educational agency
demonstrates to the satisfaction of the State educational agency
that the local educational agency lacks the capacity to provide
all students with the option to transfer to another public school,
and after giving notice to the parents of children affected that
it is not possible, consistent with State and local law, to accommodate the transfer request of every student, the local educational
agency shall permit as many students as possible (who shall be
selected by the local educational agency on an equitable basis)
to transfer to a public school that has not been identified for
school improvement under section 1116(c): Provided further, That
up to $3,500,000 of these funds shall be available to the Secretary
on October 1, 2000, to obtain updated local educational agency
level census poverty data from the Bureau of the Census: Provided
further, That $1,364,000,000 shall be available for concentration
grants under section 1124A: Provided further, That grant awards
under sections 1124 and 1124A of title I of the Elementary and
Secondary Education Act of 1965 shall be not less than the greater
of 100 percent of the amount each State and local educational
agency received under this authority for fiscal year 2000 or the
amount such State and local educational agency would receive
if $6,883,503,000 for Basic Grants and $1,222,397,000 for Concentration Grants were allocated in accordance with section
1122(c)(3) of title I: Provided further, That notwithstanding any
other provision of law, grant awards under section 1124A of title
I of the Elementary and Secondary Education Act of 1965 shall
be made to those local educational agencies that received a Concentration Grant under the Department of Education Appropriations Act, 2000, but are not eligible to receive such a grant for
fiscal year 2001: Provided further, That the Secretary shall not
take into account the hold harmless provisions in this section in
determining State allocations under any other program administered by the Secretary in any fiscal year: Provided further, That
$8,900,000 shall be available for evaluations under section 1501
and not more than $8,500,000 shall be reserved for section 1308,
of which not more than $3,000,000 shall be reserved for section
1308(d): Provided further, That $210,000,000 shall be available
under section 1002(g)(2) to demonstrate effective approaches to
comprehensive school reform to be allocated and expended in accordance with the instructions relating to this activity in the statement
of the managers on the conference report accompanying Public
Law 105–78 and in the statement of the managers on the conference
report accompanying Public Law 105–277: Provided further, That
in carrying out this initiative, the Secretary and the States shall
support only approaches that show the most promise of enabling
children served by title I to meet challenging State content standards and challenging State student performance standards based
on reliable research and effective practices, and include an emphasis
on basic academics and parental involvement.
IMPACT AID
For carrying out programs of financial assistance to federally
affected schools authorized by title VIII of the Elementary and
Secondary Education Act of 1965, $993,302,000, of which
$882,000,000 shall be for basic support payments under section
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–33
8003(b), $50,000,000 shall be for payments for children with disabilities under section 8003(d), $12,802,000 shall be for construction
under section 8007, $40,500,000 shall be for Federal property payments under section 8002, and $8,000,000, to remain available
until expended, shall be for facilities maintenance under section
8008: Provided, That $6,802,000 of the funds for section 8007 shall
be available for the local educational agencies and in the amounts
specified in the statement of the managers on the conference report
accompanying this Act: Provided further, That from the amount
appropriated for section 8002, the Secretary shall treat as timely
filed, and shall process for payment, an application for a fiscal
year 1999 payment from Academy School District 20, Colorado,
under that section if the Secretary has received that application
not later than 30 days after the enactment of this Act: Provided
further, That the Secretary of Education shall consider the local
educational agency serving the Kadoka School District, 35–1, in
South Dakota, eligible for payments under section 8002 for fiscal
year 2001 and each succeeding fiscal year, with respect to land
in Washabaugh and Jackson Counties, South Dakota, that is owned
by the Department of Defense and used as a bombing range: Provided further, That from the amount appropriated for section 8002,
the Secretary shall first increase the payment of any local educational agency that was denied funding or had its payment reduced
under that section for fiscal year 1998 due to section 8002(b)(1)(C)
to the amount that would have been made without the limitation
of that section: Provided further, That from the amount appropriated for section 8002, $500,000 shall be for subsection 8002( j).
SCHOOL IMPROVEMENT PROGRAMS
For carrying out school improvement activities authorized by
titles II, IV, V–A and B, VI, IX, X, and XIII of the Elementary
and Secondary Education Act of 1965 (‘‘ESEA’’); the McKinneyVento Homeless Assistance Act; and the Civil Rights Act of 1964
and part B of title VIII of the Higher Education Amendments
of 1998; $4,872,084,000, of which $2,403,750,000 shall become available on July 1, 2001, and remain available through September
30, 2002, and of which $1,765,000,000 shall become available on
October 1, 2001 and shall remain available through September
30, 2002 for academic year 2001–2002: Provided, That $485,000,000
shall be available for Eisenhower professional development State
grants under part B of title II of the Elementary and Secondary
Education Act of 1965: Provided further, That each local educational
agency shall use funds in excess of the allocation it received under
such part for the preceding fiscal year to improve teacher quality
by reducing the percentage of teachers who do not have State
certification or are certified through emergency or provisional
means; are teaching out of field in some or all of the subject
areas and grade levels in which they teach; or who lack sufficient
content knowledge to teach effectively in the areas they teach
to obtain that knowledge: Provided further, That the local educational agency may also use such excess funds for: activities
authorized under section 2210 of the Elementary and Secondary
Education Act of 1965; mentoring programs for new teachers;
providing opportunities for teachers to attend multi-week institutes,
such as those provided in the summer months, that provide intensive professional development in partnership with local educational
agencies; and carrying out initiatives to promote the retention of
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114 STAT. 2763A–34
PUBLIC LAW 106–554—APPENDIX A
highly qualified teachers who have a record of success in helping
low-achieving students improve their academic success: Provided
further, That each State educational agency may use such excess
funds to carry out activities under section 2207 of the Elementary
and Secondary Education Act of 1965: Provided further, That each
State agency for higher education may use such excess funds to
carry out activities under section 2211 of the Elementary and
Secondary Education Act of 1965: Provided further, That both State
educational agencies and State agencies for higher education may
also use such excess funds for multi-week institutes, such as those
provided in the summer months, that provide intensive professional
development in partnership with local educational agencies; and
grants to partnerships of such entities as local educational agencies,
institutions of higher education, and private business, to recruit,
and prepare, and provide professional development to, and help
retain, school principals and superintendents, especially for such
individuals who serve, or are preparing to serve, in high-poverty,
low-performing schools and local educational agencies: Provided
further, That such activities may be undertaken in consortium
with other States: Provided further, That of the funds appropriated
for part B of title II of the Elementary and Secondary Education
Act of 1965, $45,000,000 shall be available to States and allocated
in accordance with section 2202(b) of that Act (except that the
requirements of section 2203 shall not apply): Provided further,
That notwithstanding any other provision of law, each State shall
use the amount made available under the preceding proviso to
support efforts to meet the requirements for State eligibility for
the Ed-Flex Partnership Act of 1999 or the requirements under
section 1111 of title I of the Elementary and Secondary Education
Act of 1965: Provided further, That $44,000,000 shall be available
for national activities under section 2102 of the Elementary and
Secondary Education Act of 1965: Provided further, That of the
amount available in the preceding proviso, $3,000,000 shall be
made available to the Secretary for the Troops-to-Teachers Program
for transfer to the Defense Activity for Non-Traditional Education
Support of the Department of Defense: Provided further, That the
funds transferred under the preceding proviso shall be used by
the Secretary of Defense to administer the Troops-to-Teachers Program, including the selection of participants in the Program under
the Troops-to-Teachers Program Act of 1999 (title XVII of Public
Law 106–65; 20 U.S.C. 9301 et seq.): Provided further, That for
purposes of sections 1702(b) and (c) of the Troops-to-Teachers Program Act of 1999, the Secretary of Education shall be the administering Secretary and may, at the Secretary’s discretion, carry
out the activities under section 1702(c) of that Act and retain
a portion of the funds made available for the Troops-to-Teachers
Program to carry out section 1702(b) and (c) of that Act: Provided
further, That of the amount made available under this heading
for national activities under section 2102 of the Elementary and
Secondary Education Act of 1965, the Secretary is authorized to
use a portion of such funds to carry out activities to improve
the knowledge and skills of early childhood educators and caregivers
who work in urban or rural communities with high concentrations
of young children living in poverty: Provided further, That of the
amount appropriated, $3,208,000,000 shall be for title VI of the
Elementary and Secondary Education Act of 1965 and to carry
out activities under part B of the Individuals with Disabilities
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–35
Education Act (20 U.S.C. 1411 et seq.): Provided further, That
of the amount made available for title VI, $1,623,000,000 shall
be available, notwithstanding any other provision of law, in accordance with section 306 of this Act in order to reduce class size,
particularly in the early grades, using highly qualified teachers
to improve educational achievement for regular and special needs
children: Provided further, That of the amount made available
for title VI, $1,200,000,000 shall be available, notwithstanding any
other provision of law, for grants for school repair and renovation,
activities under part B of the Individuals with Disabilities Education Act (20 U.S.C. 1411 et seq.), and technology activities, in
accordance with section 321 of this Act: Provided further, That
funds made available under this heading to carry out section 6301(b)
of the Elementary and Secondary Education Act of 1965 shall
be available for education reform projects that provide same gender
schools and classrooms, consistent with applicable law: Provided
further, That of the amount made available to carry out activities
authorized under part C of title IX of the Elementary and Secondary
Education Act of 1965, $1,000,000 shall be for the Alaska Humanities Forum for operation of the Rose student exchange program
and $1,000,000 shall be for the Alaska Native Heritage Center
to support its program of cultural education activities: Provided
further, That of the amount made available for subpart 2 of part
A of title IV of the Elementary and Secondary Education Act of
1965, $10,000,000, to remain available until expended, shall be
for Project School Emergency Response to Violence to provide education-related services to local educational agencies in which the
learning environment has been disrupted due to a violent or traumatic crisis.
READING EXCELLENCE
For necessary expenses to carry out the Reading Excellence
Act, $91,000,000, which shall become available on July 1, 2001
and shall remain available through September 30, 2002 and
$195,000,000 which shall become available on October 1, 2001 and
remain available through September 30, 2002.
INDIAN EDUCATION
For expenses necessary to carry out, to the extent not otherwise
provided, title IX, part A of the Elementary and Secondary Education Act of 1965, as amended, $115,500,000.
BILINGUAL AND IMMIGRANT EDUCATION
For carrying out, to the extent not otherwise provided, bilingual,
foreign language and immigrant education activities authorized
by parts A and C and section 7203 of title VII of the Elementary
and Secondary Education Act of 1965, $460,000,000: Provided, That
State educational agencies may use all, or any part of, their part
C allocation for competitive grants to local educational agencies.
SPECIAL EDUCATION
For carrying out the Individuals with Disabilities Education
Act, $7,439,948,000, of which $2,090,452,000 shall become available
for obligation on July 1, 2001, and shall remain available through
September 30, 2002, and of which $5,072,000,000 shall become
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114 STAT. 2763A–36
PUBLIC LAW 106–554—APPENDIX A
available on October 1, 2001 and shall remain available through
September 30, 2002, for academic year 2001–2002: Provided, That
$9,500,000 shall be for Recording for the Blind and Dyslexic to
support the development, production, and circulation of recorded
educational materials: Provided further, That $1,500,000 shall be
for the recipient of funds provided by Public Law 105–78 under
section 687(b)(2)(G) of the Act to provide information on diagnosis,
intervention, and teaching strategies for children with disabilities:
Provided further, That $7,353,000 of the funds for section 672
of the Act shall be available for the projects and in the amounts
specified in the statement of the managers on the conference report
accompanying this Act.
REHABILITATION SERVICES AND DISABILITY RESEARCH
For carrying out, to the extent not otherwise provided, the
Rehabilitation Act of 1973, the Assistive Technology Act of 1998,
and the Helen Keller National Center Act, $2,805,339,000: Provided,
That the funds provided for title I of the Assistive Technology
Act of 1998 (‘‘the AT Act’’) shall be allocated notwithstanding section
105(b)(1) of the AT Act: Provided further, That each State shall
be provided $50,000 for activities under section 102 of the AT
Act: Provided further, That $15,000,000 shall be used to support
grants for up to 3 years to States under title III of the AT Act,
of which the Federal share shall not exceed 75 percent in the
first year, 50 percent in the second year, and 25 percent in the
third year, and that the requirements in section 301(c)(2) and
section 302 of that Act shall not apply to such grants: Provided
further, That $4,600,000 of the funds for section 303 of the
Rehabilitation Act of 1973 shall be available for the projects and
in the amounts specified in the statement of the managers on
the conference report accompanying this Act: Provided further, That
$400,000 of the funds for title II of the Rehabilitation Act of 1973
shall be for the Cerebral Palsy Research Foundation in Wichita,
Kansas for the establishment of a Rehabilitation Research and
Training Center to study and recommend incentives for employers
to hire persons with significant disabilities.
SPECIAL INSTITUTIONS
FOR
PERSONS WITH DISABILITIES
AMERICAN PRINTING HOUSE FOR THE BLIND
For carrying out the Act of March 3, 1879, as amended (20
U.S.C. 101 et seq.), $12,000,000.
NATIONAL TECHNICAL INSTITUTE FOR THE DEAF
For the National Technical Institute for the Deaf under titles
I and II of the Education of the Deaf Act of 1986 (20 U.S.C.
4301 et seq.), $53,376,000, of which $5,376,000 shall be for construction and shall remain available until expended: Provided, That
from the total amount available, the Institute may at its discretion
use funds for the endowment program as authorized under section
207.
GALLAUDET UNIVERSITY
For the Kendall Demonstration Elementary School, the Model
Secondary School for the Deaf, and the partial support of Gallaudet
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–37
University under titles I and II of the Education of the Deaf
Act of 1986 (20 U.S.C. 4301 et seq.), $89,400,000: Provided, That
from the total amount available, the University may at its discretion
use funds for the endowment program as authorized under section
207.
VOCATIONAL AND ADULT EDUCATION
For carrying out, to the extent not otherwise provided, the
Carl D. Perkins Vocational and Technical Education Act, the Adult
Education and Family Literacy Act, and title VIII–D of the Higher
Education Act of 1965, as amended, and Public Law 102–73,
$1,825,600,000, of which $1,000,000 shall remain available until
expended, and of which $1,028,000,000 shall become available on
July 1, 2001 and shall remain available through September 30,
2002 and of which $791,000,000 shall become available on October
1, 2001 and shall remain available through September 30, 2002:
Provided, That of the amounts made available for the Carl D.
Perkins Vocational and Technical Education Act, $5,600,000 shall
be for tribally controlled postsecondary vocational and technical
institutions under section 117: Provided further, That $9,000,000
shall be for carrying out section 118 of such Act: Provided further,
That of the amounts made available for the Carl D. Perkins Vocational and Technical Education Act, $5,000,000 shall be for demonstration activities authorized by section 207: Provided further,
That of the amount provided for Adult Education State Grants,
$70,000,000 shall be made available for integrated English literacy
and civics education services to immigrants and other limited
English proficient populations: Provided further, That of the amount
reserved for integrated English literacy and civics education, notwithstanding section 211 of the Adult Education and Family Literacy Act, 65 percent shall be allocated to States based on a State’s
absolute need as determined by calculating each State’s share of
a 10-year average of the Immigration and Naturalization Service
data for immigrants admitted for legal permanent residence for
the 10 most recent years, and 35 percent allocated to States that
experienced growth as measured by the average of the 3 most
recent years for which Immigration and Naturalization Service
data for immigrants admitted for legal permanent residence are
available, except that no State shall be allocated an amount less
than $60,000: Provided further, That of the amounts made available
for the Adult Education and Family Literacy Act, $14,000,000 shall
be for national leadership activities under section 243 and
$6,500,000 shall be for the National Institute for Literacy under
section 242: Provided further, That $22,000,000 shall be for Youth
Offender Grants, of which $5,000,000 shall be used in accordance
with section 601 of Public Law 102–73 as that section was in
effect prior to the enactment of Public Law 105–220.
STUDENT FINANCIAL ASSISTANCE
For carrying out subparts 1, 3, and 4 of part A, section 428K,
part C and part E of title IV of the Higher Education Act of
1965, as amended, $10,674,000,000, which shall remain available
through September 30, 2002.
The maximum Pell Grant for which a student shall be eligible
during award year 2001–2002 shall be $3,750: Provided, That notwithstanding section 401(g) of the Act, if the Secretary determines,
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114 STAT. 2763A–38
PUBLIC LAW 106–554—APPENDIX A
prior to publication of the payment schedule for such award year,
that the amount included within this appropriation for Pell Grant
awards in such award year, and any funds available from the
fiscal year 2000 appropriation for Pell Grant awards, are insufficient
to satisfy fully all such awards for which students are eligible,
as calculated under section 401(b) of the Act, the amount paid
for each such award shall be reduced by either a fixed or variable
percentage, or by a fixed dollar amount, as determined in accordance
with a schedule of reductions established by the Secretary for
this purpose.
FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT
For Federal administrative expenses to carry out guaranteed
student loans authorized by title IV, part B, of the Higher Education
Act of 1965, as amended, $48,000,000.
HIGHER EDUCATION
For carrying out, to the extent not otherwise provided, section
121 and titles II, III, IV, V, VI, and VII of the Higher Education
Act of 1965, as amended, section 1543 of the Higher Education
Amendments of 1992 and title VIII of the Higher Education Amendments of 1998, and the Mutual Educational and Cultural Exchange
Act of 1961, $1,911,710,000, of which $10,000,000 for interest subsidies authorized by section 121 of the Higher Education Act of
1965, shall remain available until expended: Provided, That
$10,000,000, to remain available through September 30, 2002, shall
be available to fund fellowships for academic year 2002–2003 under
part A, subpart 1 of title VII of said Act, under the terms and
conditions of part A, subpart 1: Provided further, That $3,000,000
is for data collection and evaluation activities for programs under
the Higher Education Act of 1965, including such activities needed
to comply with the Government Performance and Results Act of
1993: Provided further, That $15,000,000 shall be available for
tribally controlled colleges and universities under section 316 of
the Higher Education Act of 1965, of which $5,000,000 shall be
used for construction and renovation: Provided further, That
$250,000 shall be for the Web-Based Education Commission to
continue activities authorized under part J of title VIII of the
Higher Education Amendments of 1998: Provided further, That
$115,487,000 of the funds for part B of title VII of the Higher
Education Act of 1965 shall be available for the projects and in
the amounts specified in the statement of the managers on the
conference report accompanying this Act.
HOWARD UNIVERSITY
For partial support of Howard University (20 U.S.C. 121 et
seq.), $232,474,000, of which not less than $3,600,000 shall be
for a matching endowment grant pursuant to the Howard University
Endowment Act (Public Law 98–480) and shall remain available
until expended.
COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS PROGRAM
For Federal administrative expenses authorized under section
121 of the Higher Education Act of 1965, $762,000 to carry out
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–39
activities related to existing facility loans entered into under the
Higher Education Act of 1965.
HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING
PROGRAM ACCOUNT
The total amount of bonds insured pursuant to section 344
of title III, part D of the Higher Education Act of 1965 shall
not exceed $357,000,000, and the cost, as defined in section 502
of the Congressional Budget Act of 1974, of such bonds shall not
exceed zero.
For administrative expenses to carry out the Historically Black
College and University Capital Financing Program entered into
pursuant to title III, part D of the Higher Education Act of 1965,
as amended, $208,000.
EDUCATION RESEARCH, STATISTICS, AND IMPROVEMENT
For carrying out activities authorized by the Educational
Research, Development, Dissemination, and Improvement Act of
1994, including part E; the National Education Statistics Act of
1994, including sections 411 and 412; section 2102 of title II, parts
A, B, K, and L and sections 10102 and 10601 of title X, and
part C of title XIII of the Elementary and Secondary Education
Act of 1965, as amended, and title VI of Public Law 103–227,
$732,721,000: Provided, That of the funds appropriated for part
A of title X of the Elementary and Secondary Education Act of
1965, as amended, $5,000,000 shall be made available for a high
school reform program of grants to State educational agencies to
improve academic performance and provide technical skills training:
Provided further, That of the funds appropriated for part A of
title X of the Elementary and Secondary Education Act of 1965,
as amended, $5,000,000 shall be made available to carry out part
L of title X of the Act: Provided further, That of the amount
available for part A of title X of the Elementary and Secondary
Education Act of 1965, as amended, $5,000,000 shall be available
for grants to State and local educational agencies, in collaboration
with other agencies and organizations, for school dropout prevention
programs designed to address the needs of populations or communities with the highest dropout rates: Provided further, That of
the amount made available for part A of title X of the Elementary
and Secondary Education Act of 1965, as amended, $50,000,000
shall be made available to enable the Secretary of Education to
award grants to develop, implement, and strengthen programs to
teach American history (not social studies) as a separate subject
within school curricula: Provided further, That $53,000,000 of the
amount available for the national education research institutes
shall be allocated notwithstanding section 912(m)(1)(B–F) and subparagraphs (B) and (C) of section 931(c)(2) of Public Law 103–
227 and $20,000,000 of that $53,000,000 shall be made available
for the Interagency Education Research Initiative: Provided further,
That of the funds appropriated for part A of title X of the
Elementary and Secondary Education Act, as amended, $50,000,000
shall be available to demonstrate effective approaches to comprehensive school reform, to be allocated and expended in accordance
with the instructions relating to this activity in the statement
of managers on the conference report accompanying Public Law
105–78 and in the statement of the managers on the conference
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114 STAT. 2763A–40
PUBLIC LAW 106–554—APPENDIX A
report accompanying Public Law 105–277: Provided further, That
the funds made available for comprehensive school reform shall
become available on July 1, 2001, and remain available through
September 30, 2002, and in carrying out this initiative, the Secretary and the States shall support only approaches that show
the most promise of enabling children to meet challenging State
content standards and challenging State student performance
standards based on reliable research and effective practices, and
include an emphasis on basic academics and parental involvement:
Provided further, That $139,624,000 of the funds for section 10101
of the Elementary and Secondary Education Act of 1965 shall
be available for the projects and in the amounts specified in the
statement of the managers on the conference report accompanying
this Act: Provided further, That of the funds appropriated under
section 10601 of title X of the Elementary and Secondary Education
Act of 1965, as amended, $2,000,000 shall be used to conduct
a violence prevention demonstration program: Provided further,
That of the funds available for section 10601 of title X of the
Elementary and Secondary Education Act of 1965, as amended,
$150,000 shall be awarded to the Center for Educational Technologies to complete production and distribution of an effective
CD–ROM product that would complement the ‘‘We the People:
The Citizen and the Constitution’’ curriculum: Provided further,
That, of the funds for title VI of Public Law 103–227 and notwithstanding the provisions of section 601(c)(1)(C) of that Act, $1,200,000
shall be available to the Center for Civic Education to conduct
a civic education program with Northern Ireland and the Republic
of Ireland and, consistent with the civics and Government activities
authorized in section 601(c)(3) of Public Law 103–227, to provide
civic education assistance to democracies in developing countries.
The term ‘‘developing countries’’ shall have the same meaning as
the term ‘‘developing country’’ in the Education for the Deaf Act.
DEPARTMENTAL MANAGEMENT
PROGRAM ADMINISTRATION
For carrying out, to the extent not otherwise provided, the
Department of Education Organization Act, including rental of conference rooms in the District of Columbia and hire of two passenger
motor vehicles, $413,184,000.
OFFICE FOR CIVIL RIGHTS
For expenses necessary for the Office for Civil Rights, as authorized by section 203 of the Department of Education Organization
Act, $76,000,000.
OFFICE OF THE INSPECTOR GENERAL
For expenses necessary for the Office of the Inspector General,
as authorized by section 212 of the Department of Education
Organization Act, $36,500,000.
GENERAL PROVISIONS
SEC. 301. No funds appropriated in this Act may be used
for the transportation of students or teachers (or for the purchase
of equipment for such transportation) in order to overcome racial
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–41
imbalance in any school or school system, or for the transportation
of students or teachers (or for the purchase of equipment for such
transportation) in order to carry out a plan of racial desegregation
of any school or school system.
SEC. 302. None of the funds contained in this Act shall be
used to require, directly or indirectly, the transportation of any
student to a school other than the school which is nearest the
student’s home, except for a student requiring special education,
to the school offering such special education, in order to comply
with title VI of the Civil Rights Act of 1964. For the purpose
of this section an indirect requirement of transportation of students
includes the transportation of students to carry out a plan involving
the reorganization of the grade structure of schools, the pairing
of schools, or the clustering of schools, or any combination of grade
restructuring, pairing or clustering. The prohibition described in
this section does not include the establishment of magnet schools.
SEC. 303. No funds appropriated under this Act may be used
to prevent the implementation of programs of voluntary prayer
and meditation in the public schools.
(TRANSFER
OF FUNDS)
SEC. 304. Not to exceed 1 percent of any discretionary funds
(pursuant to the Balanced Budget and Emergency Deficit Control
Act of 1985, as amended) which are appropriated for the Department of Education in this Act may be transferred between appropriations, but no such appropriation shall be increased by more
than 3 percent by any such transfer: Provided, That the Appropriations Committees of both Houses of Congress are notified at least
15 days in advance of any transfer.
SEC. 305. The Comptroller General of the United States shall
evaluate the extent to which funds made available under part
A of title I of the Elementary and Secondary Education Act of
1965 are allocated to schools and local educational agencies with
the greatest concentrations of school-age children from low-income
families, the extent to which allocations of such funds adjust to
shifts in concentrations of pupils from low-income families in different regions, States, and substate areas, the extent to which
the allocation of such funds encourages the targeting of State funds
to areas with higher concentrations of children from low-income
families, and the implications of current distribution methods for
such funds, shall make formula and other policy recommendations
to improve the targeting of such funds to more effectively serve
low-income children in both rural and urban areas, and shall prepare interim and final reports based on the results of the study,
to be submitted to Congress not later than February 1, 2001,
and April 1, 2001.
SEC. 306. (a) From the amount appropriated for title VI of
the Elementary and Secondary Education Act of 1965 in accordance
with this section, the Secretary of Education—
(1) shall make available a total of $6,000,000 to the Secretary of the Interior (on behalf of the Bureau of Indian Affairs)
and the outlying areas for activities under this section; and
(2) shall allocate the remainder by providing each State
the same percentage of that remainder as it received of the
funds allocated to States under section 307(a)(2) of the Department of Education Appropriations Act, 1999.
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114 STAT. 2763A–42
PUBLIC LAW 106–554—APPENDIX A
(b)(1) Each State that receives funds under this section shall
distribute 100 percent of such funds to local educational agencies,
of which—
(A) 80 percent of such amount shall be allocated to such
local educational agencies in proportion to the number of children, aged 5 to 17, who reside in the school district served
by such local educational agency from families with incomes
below the poverty line (as defined by the Office of Management
and Budget and revised annually in accordance with section
673(2) of the Community Services Block Grant Act (42 U.S.C.
9902(2))) applicable to a family of the size involved for the
most recent fiscal year for which satisfactory data are available
compared to the number of such individuals who reside in
the school districts served by all the local educational agencies
in the State for that fiscal year; and
(B) 20 percent of such amount shall be allocated to such
local educational agencies in accordance with the relative enrollments of children, aged 5 to 17, in public and private nonprofit
elementary and secondary schools within the boundaries of
such agencies.
(2) Notwithstanding paragraph (1), if the award to a local
educational agency under this section is less than the starting
salary for a new fully qualified teacher in that agency, who is
certified within the State (which may include certification through
State or local alternative routes), has a baccalaureate degree, and
demonstrates the general knowledge, teaching skills, and subject
matter knowledge required to teach in his or her content areas,
that agency may use funds under this section to (A) help pay
the salary of a full- or part-time teacher hired to reduce class
size, which may be in combination with other Federal, State, or
local funds; or (B) pay for activities described in subsection
(c)(2)(A)(iii) which may be related to teaching in smaller classes.
(c)(1) The basic purpose and intent of this section is to reduce
class size with fully qualified teachers. Each local educational
agency that receives funds under this section shall use such funds
to carry out effective approaches to reducing class size with fully
qualified teachers who are certified within the State, including
teachers certified through State or local alternative routes, and
who demonstrate competency in the areas in which they teach,
to improve educational achievement for both regular and special
needs children, with particular consideration given to reducing class
size in the early elementary grades for which some research has
shown class size reduction is most effective.
(2)(A) Each such local educational agency may use funds under
this section for—
(i) recruiting (including through the use of signing bonuses,
and other financial incentives), hiring, and training fully qualified regular and special education teachers (which may include
hiring special education teachers to team-teach with regular
teachers in classrooms that contain both children with disabilities and non-disabled children) and teachers of special-needs
children who are certified within the State, including teachers
certified through State or local alternative routes, have a baccalaureate degree and demonstrate the general knowledge, teaching skills, and subject matter knowledge required to teach
in their content areas;
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–43
(ii) testing new teachers for academic content knowledge
and to meet State certification requirements that are consistent
with title II of the Higher Education Act of 1965; and
(iii) providing professional development (which may include
such activities as those described in section 2210 of the
Elementary and Secondary Education Act of 1965, opportunities
for teachers to attend multi-week institutes, such as those
made available during the summer months that provide intensive professional development in partnership with local educational agencies and initiatives that promote retention and
mentoring), to teachers, including special education teachers
and teachers of special-needs children, in order to meet the
goal of ensuring that all instructional staff have the subject
matter knowledge, teaching knowledge, and teaching skills necessary to teach effectively in the content area or areas in
which they provide instruction, consistent with title II of the
Higher Education Act of 1965.
(B)(i) Except as provided under clause (ii), a local educational
agency may use not more than a total of 25 percent of the award
received under this section for activities described in clauses (ii)
and (iii) of subparagraph (A).
(ii) A local educational agency in which 10 percent or
more of teachers in elementary schools, as defined by section
14101(14) of the Elementary and Secondary Education Act of
1965, have not met applicable State and local certification
requirements (including certification through State or local
alternative routes), or if such requirements have been waived,
may use more than 25 percent of the funds it receives under
this section for activities described in subparagraph (A)(iii)
to help teachers who are not certified by the State become
certified, including through State or local alternative routes,
or to help teachers affected by class size reduction who lack
sufficient content knowledge to teach effectively in the areas
they teach to obtain that knowledge, if the local educational
agency notifies the State educational agency of the percentage
of the funds that it will use for the purpose described in
this clause.
(C) A local educational agency that has already reduced class
size in the early grades to 18 or less children (or has already
reduced class size to a State or local class size reduction goal
that was in effect on the day before the enactment of the Department of Education Appropriations Act, 2000, if that State or local
educational agency goal is 20 or fewer children) may use funds
received under this section—
(i) to make further class size reductions in grades kindergarten through 3;
(ii) to reduce class size in other grades; or
(iii) to carry out activities to improve teacher quality including professional development.
(D) If a local educational agency has already reduced class
size in the early grades to 18 or fewer children and intends to
use funds provided under this section to carry out professional
development activities, including activities to improve teacher quality, then the State shall make the award under subsection (b)
to the local educational agency.
(3) Each such agency shall use funds under this section only
to supplement, and not to supplant, State and local funds that,
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114 STAT. 2763A–44
PUBLIC LAW 106–554—APPENDIX A
in the absence of such funds, would otherwise be spent for activities
under this section.
(4) No funds made available under this section may be used
to increase the salaries or provide benefits, other than participation
in professional development and enrichment programs, to teachers
who are not hired under this section. Funds under this section
may be used to pay the salary of teachers hired under section
307 of the Department of Education Appropriations Act, 1999, or
under section 310 of the Department of Education Appropriations
Act, 2000.
(d)(1) Each State receiving funds under this section shall report
on activities in the State under this section, consistent with section
6202(a)(2) of the Elementary and Secondary Education Act of 1965.
(2) Each State and local educational agency receiving funds
under this section shall publicly report to parents on its progress
in reducing class size, increasing the percentage of classes in core
academic areas taught by fully qualified teachers who are certified
within the State and demonstrate competency in the content areas
in which they teach, and on the impact that hiring additional
highly qualified teachers and reducing class size, has had, if any,
on increasing student academic achievement.
(3) Each school receiving funds under this section shall provide
to parents, upon request, the professional qualifications of their
child’s teacher.
(e) If a local educational agency uses funds made available
under this section for professional development activities, the
agency shall ensure for the equitable participation of private nonprofit elementary and secondary schools in such activities. Section
6402 of the Elementary and Secondary Education Act of 1965
shall not apply to other activities under this section.
(f ) A local educational agency that receives funds under this
section may use not more than 3 percent of such funds for local
administrative costs.
(g) Each local educational agency that desires to receive funds
under this section shall include in the application required under
section 6303 of the Elementary and Secondary Education Act of
1965 a description of the agency’s program to reduce class size
by hiring additional highly qualified teachers.
(h) No funds under this section may be used to pay the salary
of any teacher hired with funds under section 307 of the Department
of Education Appropriations Act, 1999, unless, by the start of the
2001–2002 school year, the teacher is certified within the State
(which may include certification through State or local alternative
routes) and demonstrates competency in the subject areas in which
he or she teaches.
(i) Not later than 30 days after the date of the enactment
of this Act, the Secretary shall provide specific notification to each
local educational agency eligible to receive funds under this part
regarding the flexibility provided under subsection (c)(2)(B)(ii) and
the ability to use such funds to carry out activities described in
subsection (c)(2)(A)(iii).
SEC. 307. Section 412 of the National Education Statistics
Act of 1994 (Public Law 103–382) is amended—
(1) in subsection 412(c)(1), after ‘‘period of’’ and before
‘‘years,’’, by striking ‘‘3’’ and inserting ‘‘4’’; and
(2) after ‘‘expiration of such term.’’, by adding the following
new subsection:
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–45
‘‘(4) CONFORMING PROVISION.—Members of the Board previously granted 3 year terms, whose terms are in effect on
the date of enactment of the Department of Education Appropriations Act, 2001, shall have their terms extended by 1 year.’’.
SEC. 308. (a) Section 435(a)(2) of the Higher Education Act
of 1965 (20 U.S.C. 1085(a)(2)) is amended by adding at the end
thereof the following new subparagraph:
‘‘(D) Notwithstanding the first sentence of subparagraph (A),
the Secretary shall restore the eligibility to participate in a program
under subpart 1 of part A, part B, or part D of an institution
that did not appeal its loss of eligibility within 30 days of receiving
notification if the Secretary determines, on a case-by-case basis,
that the institution’s failure to appeal was substantially justified
under the circumstances, and that—
‘‘(i) the institution made a timely request that the appropriate guaranty agency correct errors in the draft data used
to calculate the institution’s cohort default rate;
‘‘(ii) the guaranty agency did not correct the erroneous
data in a timely fashion; and
‘‘(iii) the institution would have been eligible if the erroneous data had been corrected by the guaranty agency.’’.
(b) The amendment made by subsection (a) of this section
shall be effective for cohort default rate calculations for fiscal years
1997 and 1998.
SEC. 309. Section 439(r)(2) of the Higher Education Act of
1965 (20 U.S.C. 1087–2(r)(2)) is amended—
(1) in clause (A)(i), by striking ‘‘auditors and examiners’’
and inserting ‘‘and fix the compensation of such auditors and
examiners as may be necessary’’; and
(2) by inserting at the end of subparagraph (E) the following
new subparagraph:
‘‘(F) COMPENSATION OF AUDITORS AND EXAMINERS.—
‘‘(i) RATES OF PAY.—Rates of basic pay for all auditors and examiners appointed pursuant to subparagraph (A) may be set and adjusted by the Secretary
of the Treasury without regard to the provisions of
chapter 51 or subchapter III of chapter 53 of title
5, United States Code.
‘‘(ii) COMPARABILITY.—
‘‘(I) IN GENERAL.—Subject to section 5373 of
title 5, United States Code, the Secretary of the
Treasury may provide additional compensation
and benefits to auditors and examiners appointed
pursuant to subparagraph (A) if the same type
of compensation or benefits are then being provided by any agency referred to in section 1206
of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 1833b) or,
if not then being provided, could be provided by
such an agency under applicable provisions of law,
rule, or regulation.
‘‘(II) CONSULTATION.—In setting and adjusting
the total amount of compensation and benefits for
auditors and examiners appointed pursuant to
subparagraph (A), the Secretary of the Treasury
shall consult with, and seek to maintain comparability with, the agencies referred to in section
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114 STAT. 2763A–46
PUBLIC LAW 106–554—APPENDIX A
1206 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
1833b).’’.
SEC. 310. Section 117(i) of the Carl D. Perkins Vocational
and Technical Education Act of 1998 (20 U.S.C. 2327(i)) is amended
by inserting ‘‘such sums as may be necessary for’’ before ‘‘each
of the 4 succeeding fiscal years.’’.
SEC. 311. Section 432(m)(1) of the Higher Education Act of
1965 (20 U.S.C. 1082(m)(1)) is amended—
(1) by striking clause (iv) of subparagraph (D); and
(2) by adding at the end the following new subparagraph:
‘‘(E) PERFECTION OF SECURITY INTERESTS IN STUDENT
LOANS.—
‘‘(i) IN GENERAL.—Notwithstanding the provisions
of any State law to the contrary, including the Uniform
Commercial Code as in effect in any State, a security
interest in loans made under this part, on behalf of
any eligible lender (as defined in section 435(d)) shall
attach, be perfected, and be assigned priority in the
manner provided by the applicable State’s law for
perfection of security interests in accounts, as such
law may be amended from time to time (including
applicable transition provisions). If any such State’s
law provides for a statutory lien to be created in such
loans, such statutory lien may be created by the entity
or entities governed by such State law in accordance
with the applicable statutory provisions that created
such a statutory lien.
‘‘(ii) COLLATERAL DESCRIPTION.—In addition to any
other method for describing collateral in a legally sufficient manner permitted under the laws of the State,
the description of collateral in any financing statement
filed pursuant to this subparagraph shall be deemed
legally sufficient if it lists such loans, or refers to
records (identifying such loans) retained by the secured
party or any designee of the secured party identified
in such financing statement, including the debtor or
any loan servicer.
‘‘(iii) SALES.—Notwithstanding clauses (i) and (ii)
and any provisions of any State law to the contrary,
other than any such State’s law providing for creation
of a statutory lien, an outright sale of loans made
under this part shall be effective and perfected automatically upon attachment as defined in the Uniform
Commercial Code of such State.’’.
SEC. 312. Section 435(a)(5) of the Higher Education Act of
1965 (20 U.S.C. 1085(a)(5)) is amended—
(1) in subparagraph (A)(i), by striking ‘‘July 1, 2002,’’ and
inserting ‘‘July 1, 2004,’’; and
(2) in subparagraph (B), by striking ‘‘1999, 2000, and 2001’’
and inserting ‘‘1999 through 2003’’.
SEC. 313. From the amounts made available for the ‘‘Fund
for the Improvement of Education’’ under the heading ‘‘Education
Research, Statistics, and Improvement’’, $10,000,000, to remain
available until expended, shall be available to the Secretary of
Education to be transferred to the Secretary of the Interior for
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–47
an award to the National Constitution Center for construction
activities authorized under Public Law 100–433.
SEC. 314. Section 4116(b)(4) of the Elementary and Secondary
Education Act of 1965 is amended by striking subparagraph (D)
and inserting in lieu thereof: ‘‘(D) the development and implementation of character education and training programs that reflect the
values of parents, teachers, and local communities, and incorporate
elements of good character, including honesty, citizenship, courage,
justice, respect, personal responsibility, and trustworthiness; and’’.
SEC. 315. The Secretary of Education shall review the nursing
program operated by Graceland University in Lamoni, Iowa, and
may exercise the waiver authority provided in section 102(a)(3)(B)
of the Higher Education Act of 1965, without regard to the provisions of 34 CFR 600.7(b)(3)(ii), if the Secretary determines that
such a waiver is appropriate.
SEC. 316. Section 415 of the Higher Education Act of 1965
is amended—
(1) in section 415A(a)(2), by striking ‘‘section 415F’’ and
inserting ‘‘section 415E’’; and
(2) in section 415E, by striking 415E(c) and inserting in
lieu thereof the following:
‘‘(c) AUTHORIZED ACTIVITIES.—Each State receiving a grant
under this section may use the grant funds for—
‘‘(1) making awards that—
‘‘(A) supplement grants received under section
415C(b)(2) by eligible students who demonstrate financial
need; or
‘‘(B) provide grants under section 415C(b)(2) to additional eligible students who demonstrate financial need;
‘‘(2) providing scholarships for eligible students—
‘‘(A) who demonstrate financial need; and
‘‘(B) who—
‘‘(i) desire to enter a program of study leading
to a career in—
‘‘(I) information technology;
‘‘(II) mathematics, computer science, or
engineering;
‘‘(III) teaching; or
‘‘(IV) another field determined by the State
to be critical to the State’s workforce needs; or
‘‘(ii) demonstrate merit or academic achievement;
and
‘‘(3) making awards that—
‘‘(A) supplement community service work-study awards
received under section 415C(b)(2) by eligible students who
demonstrate financial need; or
‘‘(B) provide community service work-study awards
under section 415C(b)(2) to additional eligible students who
demonstrate financial need.’’.
(3) in section 415E, adding at the end the following new
subsections:
‘‘(f ) SPECIAL RULE.—Notwithstanding subsection (d), for purposes of determining a State’s share of the cost of the authorized
activities described in subsection (c), the State shall consider only
those expenditures from non-Federal sources that exceed its total
expenditures for need-based grants, scholarships, and work-study
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114 STAT. 2763A–48
PUBLIC LAW 106–554—APPENDIX A
assistance for fiscal year 1999 (including any such assistance provided under this subpart).
‘‘(g) USE OF FUNDS FOR ADMINISTRATIVE COSTS PROHIBITED.—
A State receiving a grant under this section shall not use any
of the grant funds to pay administrative costs associated with
any of the authorized activities described in subsection (c).’’.
SEC. 317. (a) Section 402D of the Higher Education Act of
1965 (20 U.S.C. 1070a–14) is amended—
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new subsection:
‘‘(c) SPECIAL RULE.—
‘‘(1) USE FOR STUDENT AID.—A recipient of a grant that
undertakes any of the permissible services identified in subsection (b) may, in addition, use such funds to provide grant
aid to students. A grant provided under this paragraph shall
not exceed the maximum appropriated Pell Grant or, be less
than the minimum appropriated Pell Grant, for the current
academic year. In making grants to students under this subsection, an institution shall ensure that adequate consultation
takes place between the student support service program office
and the institution’s financial aid office.
‘‘(2) ELIGIBLE STUDENTS.—For purposes of receiving grant
aid under this subsection, eligible students shall be current
participants in the student support services program offered
by the institution and be—
‘‘(A) students who are in their first 2 years of postsecondary education and who are receiving Federal Pell
Grants under subpart 1; or
‘‘(B) students who have completed their first 2 years
of postsecondary education and who are receiving Federal
Pell Grants under subpart 1 if the institution demonstrates
to the satisfaction of the Secretary that—
‘‘(i) these students are at high risk of dropping
out; and
‘‘(ii) it will first meet the needs of all its eligible
first- and second-year students for services under this
paragraph.
‘‘(3) DETERMINATION OF NEED.—A grant provided to a student under paragraph (1) shall not be considered in determining
that student’s need for grant or work assistance under this
title, except that in no case shall the total amount of student
financial assistance awarded to a student under this title exceed
that student’s cost of attendance, as defined in section 472.
‘‘(4) MATCHING REQUIRED.—A recipient of a grant who uses
such funds for the purpose described in paragraph (1) shall
match the funds used for such purpose, in cash, from nonFederal funds, in an amount that is not less than 33 percent
of the total amount of funds used for that purpose. This paragraph shall not apply to any grant recipient that is an institution of higher education eligible to receive funds under part
A or B of title III or title V.
‘‘(5) RESERVATION.—In no event may a recipient use more
than 20 percent of the funds received under this section for
grant aid.
‘‘(6) SUPPLEMENT, NOT SUPPLANT.—Funds received by a
grant recipient that are used under this subsection shall be
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–49
used to supplement, and not supplant, non-Federal funds
expended for student support services programs.’’.
(b) The amendments made by subsection (a) shall apply with
respect to student support services grants awarded on or after
the date of enactment of this Act.
SEC. 318. (a) Subparagraph (B) of section 427A(c)(4) of the
Higher Education Act of 1965 (20 U.S.C. 1077a(c)(4)) is amended
to read as follows:
‘‘(B)(i) For any 12-month period beginning on July 1
and ending on or before June 30, 2001, the rate determined
under this subparagraph is determined on the preceding
June 1 and is equal to—
‘‘(I) the bond equivalent rate of 52-week Treasury
bills auctioned at the final auction held prior to such
June 1; plus
‘‘(II) 3.25 percent.
‘‘(ii) For any 12-month period beginning on July 1
of 2001 or any succeeding year, the rate determined under
this subparagraph is determined on the preceding June
26 and is equal to—
‘‘(I) the weekly average 1-year constant maturity
Treasury yield, as published by the Board of Governors
of the Federal Reserve System, for the last calendar
week ending on or before such June 26; plus
‘‘(II) 3.25 percent.’’.
(b) Subparagraph (A) of section 455(b)(4) of such Act (20 U.S.C.
1087e(b)(4)) is amended to read as follows:
‘‘(A)(i) For Federal Direct PLUS Loans for which the
first disbursement is made on or after July 1, 1994, the
applicable rate of interest shall, during any 12-month
period beginning on July 1 and ending on or before June
30, 2001, be determined on the preceding June 1 and
be equal to—
‘‘(I) the bond equivalent rate of 52-week Treasury
bills auctioned at final auction held prior to such June
1; plus
‘‘(II) 3.1 percent,
except that such rate shall not exceed 9 percent.
‘‘(ii) For any 12-month period beginning on July 1
of 2001 or any succeeding year, the applicable rate of
interest determined under this subparagraph shall be
determined on the preceding June 26 and be equal to—
‘‘(I) the weekly average 1-year constant maturity
Treasury yield, as published by the Board of Governors
of the Federal Reserve System, for the last calendar
week ending on or before such June 26; plus
‘‘(II) 3.1 percent,
except that such rate shall not exceed 9 percent.’’.
SEC. 319. Section 1543 of the Higher Education Amendments
of 1992 (20 U.S.C. 1070 note) is amended by adding at the end
the following new subsection:
‘‘(e) DESIGNATION.—Scholarships awarded under this section
shall be known as ‘B.J. Stupak Olympic Scholarships’.’’.
SEC. 320. (a) Subject to subsection (c), the Secretary of Education shall release the reversionary interests that were retained
by the United States, as part of the conveyance of certain real
property situated in the County of Marin, State of California, in
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114 STAT. 2763A–50
PUBLIC LAW 106–554—APPENDIX A
an April 3, 1978 Quitclaim Deed, which was filed for record on
June 5, 1978, in Book 3384, at page 33, of the official Records
of Marin County, California.
(b) The Secretary shall execute the release of the reversionary
interests under subsection (a) without consideration.
(c) The Secretary shall execute and file in the appropriate
office or offices a deed of release, amended deed, or other appropriate instruments effectuating the release of the reversionary
interests under subsection (a). In all other respects the provisions
of the April 3, 1978 Quitclaim Deed shall remain intact.
SEC. 321. (a) GRANTS TO NATIVE AMERICAN SCHOOLS AND STATE
EDUCATIONAL AGENCIES.—
(1) ALLOCATION OF FUNDS.—Of the amount made available
under the heading ‘‘School improvement programs’’ for grants
made in accordance with this section for school repair and
renovation, activities under part B of the Individuals with
Disabilities Education Act (20 U.S.C. 1411 et seq.), and technology activities, the Secretary of Education shall allocate—
(A) $75,000,000 for grants to impacted local educational
agencies (as defined in paragraph (3)) for school repair,
renovation, and construction;
(B) $3,250,000 for grants to outlying areas for school
repair and renovation in high-need schools and communities, allocated on such basis, and subject to such terms
and conditions, as the Secretary determines appropriate;
(C) $25,000,000 for grants to public entities, private
nonprofit entities, and consortia of such entities, for use
in accordance with subpart 2 of part C of title X of the
Elementary and Secondary Education Act of 1965; and
(D) the remainder to State educational agencies in
proportion to the amount each State received under part
A of title I of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6311 et seq.) for fiscal year 2000,
except that no State shall receive less than 0.5 percent
of the amount allocated under this subparagraph.
(2) DETERMINATION OF GRANT AMOUNT.—
(A) DETERMINATION OF WEIGHTED STUDENT UNITS.—
For purposes of computing the grant amounts under paragraph (1)(A) for fiscal year 2001, the Secretary shall determine the results obtained by the computation made under
section 8003 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7703) with respect to children
described in subsection (a)(1)(C) of such section and computed under subsection (a)(2)(B) of such section for such
year—
(i) for each impacted local educational agency that
receives funds under this section; and
(ii) for all such agencies together.
(B) COMPUTATION OF PAYMENT.—For fiscal year 2001,
the Secretary shall calculate the amount of a grant to
an impacted local educational agency by—
(i) dividing the amount described in paragraph
(1)(A) by the results of the computation described in
subparagraph (A)(ii); and
(ii) multiplying the number derived under clause
(i) by the results of the computation described in
subparagraph (A)(i) for such agency.
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–51
(3) DEFINITION.—For purposes of this section, the term
‘‘impacted local educational agency’’ means, for fiscal year
2001—
(A) a local educational agency that receives a basic
support payment under section 8003(b) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7703(b))
for such fiscal year; and
(B) with respect to which the number of children determined under section 8003(a)(1)(C) of such Act for the
preceding school year constitutes at least 50 percent of
the total student enrollment in the schools of the agency
during such school year.
(b) WITHIN-STATE ALLOCATIONS.—
(1) ADMINISTRATIVE COSTS.—
(A) STATE EDUCATIONAL AGENCY ADMINISTRATION.—
Except as provided in subparagraph (B), each State educational agency may reserve not more than 1 percent of
its allocation under subsection (a)(1)(D) for the purpose
of administering the distribution of grants under this subsection.
(B) STATE ENTITY ADMINISTRATION.—If the State educational agency transfers funds to a State entity described
in paragraph (2)(A), the agency shall transfer to such entity
0.75 of the amount reserved under this paragraph for the
purpose of administering the distribution of grants under
this subsection.
(2) RESERVATION FOR COMPETITIVE SCHOOL REPAIR AND RENOVATION GRANTS TO LOCAL EDUCATIONAL AGENCIES.—
(A) IN GENERAL.—Subject to the reservation under
paragraph (1), of the funds allocated to a State educational
agency under subsection (a)(1)(D), the State educational
agency shall distribute 75 percent of such funds to local
educational agencies or, if such State educational agency
is not responsible for the financing of education facilities,
the agency shall transfer such funds to the State entity
responsible for the financing of education facilities (referred
to in this section as the ‘‘State entity’’) for distribution
by such entity to local educational agencies in accordance
with this paragraph, to be used, consistent with subsection
(c), for school repair and renovation.
(B) COMPETITIVE GRANTS TO LOCAL EDUCATIONAL AGENCIES.—
(i) IN GENERAL.—The State educational agency or
State entity shall carry out a program of competitive
grants to local educational agencies for the purpose
described in subparagraph (A). Of the total amount
available for distribution to such agencies under this
paragraph, the State educational agency or State
entity, shall, in carrying out the competition—
(I) award to high poverty local educational
agencies described in clause (ii), in the aggregate,
at least an amount which bears the same relationship to such total amount as the aggregate amount
such local educational agencies received under part
A of title I of the Elementary and Secondary Education Act of 1965 for fiscal year 2000 bears to
the aggregate amount received for such fiscal year
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114 STAT. 2763A–52
PUBLIC LAW 106–554—APPENDIX A
under such part by all local educational agencies
in the State;
(II) award to rural local educational agencies
in the State, in the aggregate, at least an amount
which bears the same relationship to such total
amount as the aggregate amount such rural local
educational agencies received under part A of title
I of the Elementary and Secondary Education Act
of 1965 for fiscal year 2000 bears to the aggregate
amount received for such fiscal year under such
part by all local educational agencies in the State;
and
(III) award the remaining funds to local educational agencies not receiving an award under
subclause (I) or (II), including high poverty and
rural local educational agencies that did not
receive such an award.
(ii) HIGH POVERTY LOCAL EDUCATIONAL AGENCIES.—A local educational agency is described in this
clause if—
(I) the percentage described in subparagraph
(C)(i) with respect to the agency is 30 percent
or greater; or
(II) the number of children described in such
subparagraph with respect to the agency is at
least 10,000.
(C) CRITERIA FOR AWARDING GRANTS.—In awarding
competitive grants under this paragraph, a State educational agency or State entity shall take into account
the following criteria:
(i) The percentage of poor children 5 to 17 years
of age, inclusive, in a local educational agency.
(ii) The need of a local educational agency for
school repair and renovation, as demonstrated by the
condition of its public school facilities.
(iii) The fiscal capacity of a local educational
agency to meet its needs for repair and renovation
of public school facilities without assistance under this
section, including its ability to raise funds through
the use of local bonding capacity and otherwise.
(iv) In the case of a local educational agency that
proposes to fund a repair or renovation project for
a charter school or schools, the extent to which the
school or schools have access to funding for the project
through the financing methods available to other public
schools or local educational agencies in the State.
(v) The likelihood that the local educational agency
will maintain, in good condition, any facility whose
repair or renovation is assisted under this section.
(D) POSSIBLE MATCHING REQUIREMENT.—
(i) IN GENERAL.—A State educational agency or
State entity may require local educational agencies
to match funds awarded under this subsection.
(ii) MATCH AMOUNT.—The amount of a match
described in clause (i) may be established by using
a sliding scale that takes into account the relative
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–53
poverty of the population served by the local educational agency.
(3) RESERVATION FOR COMPETITIVE IDEA OR TECHNOLOGY
GRANTS TO LOCAL EDUCATIONAL AGENCIES.—
(A) IN GENERAL.—Subject to the reservation under
paragraph (1), of the funds allocated to a State educational
agency under subsection (a)(1)(D), the State educational
agency shall distribute 25 percent of such funds to local
educational agencies through competitive grant processes,
to be used for the following:
(i) To carry out activities under part B of the
Individuals with Disabilities Education Act (20 U.S.C.
1411 et seq.).
(ii) For technology activities that are carried out
in connection with school repair and renovation,
including—
(I) wiring;
(II) acquiring hardware and software;
(III) acquiring connectivity linkages and
resources; and
(IV) acquiring microwave, fiber optics, cable,
and satellite transmission equipment.
(B) CRITERIA FOR AWARDING IDEA GRANTS.—In awarding competitive grants under subparagraph (A) to be used
to carry out activities under part B of the Individuals
with Disabilities Education Act (20 U.S.C. 1411 et seq.),
a State educational agency shall take into account the
following criteria:
(i) The need of a local educational agency for additional funds for a student whose individually allocable
cost for expenses related to the Individuals with
Disabilities Education Act substantially exceeds the
State’s average per-pupil expenditure (as defined in
section 14101(2) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801(2))).
(ii) The need of a local educational agency for
additional funds for special education and related services under part B of the Individuals with Disabilities
Education Act (20 U.S.C. 1411 et seq.).
(iii) The need of a local educational agency for
additional funds for assistive technology devices (as
defined in section 602 of the Individuals with Disabilities Education Act (20 U.S.C. 1401)) or assistive technology services (as so defined) for children being served
under part B of the Individuals with Disabilities Education Act (20 U.S.C. 1411 et seq.).
(iv) The need of a local educational agency for
additional funds for activities under part B of the
Individuals with Disabilities Education Act (20 U.S.C.
1411 et seq.) in order for children with disabilities
to make progress toward meeting the performance
goals and indicators established by the State under
section 612(a)(16) of such Act (20 U.S.C. 1412).
(C) CRITERIA FOR AWARDING TECHNOLOGY GRANTS.—
In awarding competitive grants under subparagraph (A)
to be used for technology activities that are carried out
in connection with school repair and renovation, a State
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114 STAT. 2763A–54
PUBLIC LAW 106–554—APPENDIX A
educational agency shall take into account the need of
a local educational agency for additional funds for such
activities, including the need for the activities described
in subclauses (I) through (IV) of subparagraph (A)(ii).
(c) RULES APPLICABLE TO SCHOOL REPAIR AND RENOVATION.—
With respect to funds made available under this section that are
used for school repair and renovation, the following rules shall
apply:
(1) PERMISSIBLE USES OF FUNDS.—School repair and renovation shall be limited to one or more of the following:
(A) Emergency repairs or renovations to public school
facilities only to ensure the health and safety of students
and staff, including—
(i) repairing, replacing, or installing roofs, electrical wiring, plumbing systems, or sewage systems;
(ii) repairing, replacing, or installing heating, ventilation, or air conditioning systems (including insulation); and
(iii) bringing public schools into compliance with
fire and safety codes.
(B) School facilities modifications necessary to render
public school facilities accessible in order to comply with
the Americans with Disabilities Act of 1990 (42 U.S.C.
12101 et seq.).
(C) School facilities modifications necessary to render
public school facilities accessible in order to comply with
section 504 of the Rehabilitation Act of 1973 (29 U.S.C.
794).
(D) Asbestos abatement or removal from public school
facilities.
(E) Renovation, repair, and acquisition needs related
to the building infrastructure of a charter school.
(2) IMPERMISSIBLE USES OF FUNDS.—No funds received
under this section may be used for—
(A) payment of maintenance costs in connection with
any projects constructed in whole or in part with Federal
funds provided under this section;
(B) the construction of new facilities, except for facilities for an impacted local educational agency (as defined
in subsection (a)(3)); or
(C) stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public.
(3) CHARTER SCHOOLS.—A public charter school that constitutes a local educational agency under State law shall be
eligible for assistance under the same terms and conditions
as any other local educational agency (as defined in section
14101(18) of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 8801(18))).
(4) SUPPLEMENT, NOT SUPPLANT.—Excluding the uses
described in subparagraphs (B) and (C) of paragraph (1), a
local educational agency shall use Federal funds subject to
this subsection only to supplement the amount of funds that
would, in the absence of such Federal funds, be made available
from non-Federal sources for school repair and renovation.
(d) SPECIAL RULE.—Each local educational agency that receives
funds under this section shall ensure that, if it carries out repair
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–55
or renovation through a contract, any such contract process ensures
the maximum number of qualified bidders, including small, minority, and women-owned businesses, through full and open competition.
(e) PUBLIC COMMENT.—Each local educational agency receiving
funds under paragraph (2) or (3) of subsection (b)—
(1) shall provide parents, educators, and all other interested
members of the community the opportunity to consult on the
use of funds received under such paragraph;
(2) shall provide the public with adequate and efficient
notice of the opportunity described in paragraph (1) in a widely
read and distributed medium; and
(3) shall provide the opportunity described in paragraph
(1) in accordance with any applicable State and local law specifying how the comments may be received and how the comments may be reviewed by any member of the public.
(f ) REPORTING.—
(1) LOCAL REPORTING.—Each local educational agency
receiving funds under subsection (a)(1)(D) shall submit a report
to the State educational agency, at such time as the State
educational agency may require, describing the use of such
funds for—
(A) school repair and renovation (and construction, in
the case of an impacted local educational agency (as defined
in subsection (a)(3)));
(B) activities under part B of the Individuals with
Disabilities Education Act (20 U.S.C. 1411 et seq.); and
(C) technology activities that are carried out in connection with school repair and renovation, including the activities described in subclauses (I) through (IV) of subsection
(b)(3)(A)(ii).
(2) STATE REPORTING.—Each State educational agency shall
submit to the Secretary of Education, not later than December
31, 2002, a report on the use of funds received under subsection
(a)(1)(D) by local educational agencies for—
(A) school repair and renovation (and construction, in
the case of an impacted local educational agency (as defined
in subsection (a)(3)));
(B) activities under part B of the Individuals with
Disabilities Education Act (20 U.S.C. 1411 et seq.); and
(C) technology activities that are carried out in connection with school repair and renovation, including the activities described in subclauses (I) through (IV) of subsection
(b)(3)(A)(ii).
(3) ADDITIONAL REPORTS.—Each entity receiving funds allocated under subsection (a)(1)(A) or (B) shall submit to the
Secretary, not later than December 31, 2002, a report on its
uses of funds under this section, in such form and containing
such information as the Secretary may require.
(g) APPLICABILITY OF PART B OF IDEA.—If a local educational
agency uses funds received under this section to carry out activities
under part B of the Individuals with Disabilities Education Act
(20 U.S.C. 1411 et seq.), such part (including provisions respecting
the participation of private school children), and any other provision
of law that applies to such part, shall apply to such use.
(h) REALLOCATION.—If a State educational agency does not
apply for an allocation of funds under subsection (a)(1)(D) for fiscal
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114 STAT. 2763A–56
PUBLIC LAW 106–554—APPENDIX A
year 2001, or does not use its entire allocation for such fiscal
year, the Secretary may reallocate the amount of the State educational agency’s allocation (or the remainder thereof, as the case
may be) to the remaining State educational agencies in accordance
with subsection (a)(1)(D).
(i) PARTICIPATION OF PRIVATE SCHOOLS.—
(1) IN GENERAL.—Section 6402 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7372) shall apply
to subsection (b)(2) in the same manner as it applies to activities
under title VI of such Act, except that—
(A) such section shall not apply with respect to the
title to any real property renovated or repaired with assistance provided under this section;
(B) the term ‘‘services’’ as used in section 6402 of
such Act with respect to funds under this section shall
be provided only to private, nonprofit elementary or secondary schools with a rate of child poverty of at least 40
percent and may include for purposes of subsection (b)(2)
only—
(i) modifications of school facilities necessary to
meet the standards applicable to public schools under
the Americans with Disabilities Act of 1990 (42 U.S.C.
12101 et seq.);
(ii) modifications of school facilities necessary to
meet the standards applicable to public schools under
section 504 of the Rehabilitation Act of 1973 (29 U.S.C.
794); and
(iii) asbestos abatement or removal from school
facilities; and
(C) notwithstanding the requirements of section
6402(b) of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7372(b)), expenditures for services provided using funds made available under subsection (b)(2)
shall be considered equal for purposes of such section if
the per-pupil expenditures for services described in
subparagraph (B) for students enrolled in private nonprofit
elementary and secondary schools that have child poverty
rates of at least 40 percent are consistent with the perpupil expenditures under this section for children enrolled
in the public schools in the school district of the local
educational agency receiving funds under this section.
(2) REMAINING FUNDS.—If the expenditure for services
described in paragraph (1)(B) is less than the amount calculated
under paragraph (1)(C) because of insufficient need for such
services, the remainder shall be available to the local educational agency for renovation and repair of public school facilities.
(3) APPLICATION.—If any provision of this section, or the
application thereof, to any person or circumstances is judicially
determined to be invalid, the provisions of the remainder of
the section and the application to other persons or circumstances shall not be affected thereby.
( j) DEFINITIONS.—For purposes of this section:
(1) CHARTER SCHOOL.—The term ‘‘charter school’’ has the
meaning given such term in section 10310(1) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 8066(1)).
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–57
(2) ELEMENTARY SCHOOL.—The term ‘‘elementary school’’
has the meaning given such term in section 14101(14) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
8801(14)).
(3) LOCAL EDUCATIONAL AGENCY.—The term ‘‘local educational agency’’ has the meaning given such term in subparagraphs (A) and (B) of section 14101(18) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 8801(18)).
(4) OUTLYING AREA.—The term ‘‘outlying area’’ has the
meaning given such term in section 14101(21) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
8801(21)).
(5) POOR CHILDREN AND CHILD POVERTY.—The terms ‘‘poor
children’’ and ‘‘child poverty’’ refer to children 5 to 17 years
of age, inclusive, who are from families with incomes below
the poverty line (as defined by the Office of Management and
Budget and revised annually in accordance with section 673(2)
of the Community Services Block Grant (42 U.S.C. 9902(2))
applicable to a family of the size involved for the most recent
fiscal year for which data satisfactory to the Secretary are
available.
(6) RURAL LOCAL EDUCATIONAL AGENCY.—The term ‘‘rural
local educational agency’’ means a local educational agency
that the State determines is located in a rural area using
objective data and a commonly employed definition of the term
‘‘rural’’.
(7) SECONDARY SCHOOL.—The term ‘‘secondary school’’ has
the meaning given such term in section 14101(25) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
8801(25)).
(8) STATE.—The term ‘‘State’’ means each of the 50 States,
the District of Columbia, and the Commonwealth of Puerto
Rico.
SEC. 322. (a) Part C of title X of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8061 et seq.) is amended—
(1) by inserting after the part heading the following:
‘‘Subpart 1—Basic Charter School Grant
Program’’;
and
(2) by adding at the end the following:
‘‘Subpart 2—Credit Enhancement Initiatives To
Assist Charter School Facility Acquisition, Construction, and Renovation
‘‘SEC. 10321. PURPOSE.
‘‘The purpose of this subpart is to provide one-time grants
to eligible entities to permit them to demonstrate innovative credit
enhancement initiatives that assist charter schools to address the
cost of acquiring, constructing, and renovating facilities.
‘‘SEC. 10322. GRANTS TO ELIGIBLE ENTITIES.
‘‘(a) IN GENERAL.—The Secretary shall use 100 percent of the
amount available to carry out this subpart to award not less than
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PUBLIC LAW 106–554—APPENDIX A
three grants to eligible entities having applications approved under
this subpart to demonstrate innovative methods of assisting charter
schools to address the cost of acquiring, constructing, and renovating
facilities by enhancing the availability of loans or bond financing.
‘‘(b) GRANTEE SELECTION.—The Secretary shall evaluate each
application submitted, and shall make a determination of which
are sufficient to merit approval and which are not. The Secretary
shall award at least one grant to an eligible entity described in
section 10330(2)(A), at least one grant to an eligible entity described
in section 10330(2)(B), and at least one grant to an eligible entity
described in section 10330(2)(C), if applications are submitted that
permit the Secretary to do so without approving an application
that is not of sufficient quality to merit approval.
‘‘(c) GRANT CHARACTERISTICS.—Grants under this subpart shall
be of a sufficient size, scope, and quality so as to ensure an effective
demonstration of an innovative means of enhancing credit for the
financing of charter school acquisition, construction, or renovation.
‘‘(d) SPECIAL RULE.—In the event the Secretary determines
that the funds available are insufficient to permit the Secretary
to award not less than three grants in accordance with subsections
(a) through (c), such three-grant minimum and the second sentence
of subsection (b) shall not apply, and the Secretary may determine
the appropriate number of grants to be awarded in accordance
with subsection (c).
‘‘SEC. 10323. APPLICATIONS.
‘‘(a) IN GENERAL.—To receive a grant under this subpart, an
eligible entity shall submit to the Secretary an application in such
form as the Secretary may reasonably require.
‘‘(b) CONTENTS.—An application under subsection (a) shall
contain—
‘‘(1) a statement identifying the activities proposed to be
undertaken with funds received under this subpart, including
how the applicant will determine which charter schools will
receive assistance, and how much and what types of assistance
charter schools will receive;
‘‘(2) a description of the involvement of charter schools
in the application’s development and the design of the proposed
activities;
‘‘(3) a description of the applicant’s expertise in capital
market financing;
‘‘(4) a description of how the proposed activities will leverage the maximum amount of private-sector financing capital
relative to the amount of government funding used and otherwise enhance credit available to charter schools;
‘‘(5) a description of how the applicant possesses sufficient
expertise in education to evaluate the likelihood of success
of a charter school program for which facilities financing is
sought;
‘‘(6) in the case of an application submitted by a State
governmental entity, a description of the actions that the entity
has taken, or will take, to ensure that charter schools within
the State receive the funding they need to have adequate facilities; and
‘‘(7) such other information as the Secretary may reasonably require.
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114 STAT. 2763A–59
‘‘SEC. 10324. CHARTER SCHOOL OBJECTIVES.
‘‘An eligible entity receiving a grant under this subpart shall
use the funds deposited in the reserve account established under
section 10325(a) to assist one or more charter schools to access
private sector capital to accomplish one or both of the following
objectives:
‘‘(1) The acquisition (by purchase, lease, donation, or otherwise) of an interest (including an interest held by a third
party for the benefit of a charter school) in improved or unimproved real property that is necessary to commence or continue
the operation of a charter school.
‘‘(2) The construction of new facilities, or the renovation,
repair, or alteration of existing facilities, necessary to commence
or continue the operation of a charter school.
‘‘SEC. 10325. RESERVE ACCOUNT.
‘‘(a) USE OF FUNDS.—To assist charter schools to accomplish
the objectives described in section 10324, an eligible entity receiving
a grant under this subpart shall, in accordance with State and
local law, directly or indirectly, alone or in collaboration with others,
deposit the funds received under this subpart (other than funds
used for administrative costs in accordance with section 10326)
in a reserve account established and maintained by the entity
for this purpose. Amounts deposited in such account shall be used
by the entity for one or more of the following purposes:
‘‘(1) Guaranteeing, insuring, and reinsuring bonds, notes,
evidences of debt, loans, and interests therein, the proceeds
of which are used for an objective described in section 10324.
‘‘(2) Guaranteeing and insuring leases of personal and real
property for an objective described in section 10324.
‘‘(3) Facilitating financing by identifying potential lending
sources, encouraging private lending, and other similar activities that directly promote lending to, or for the benefit of,
charter schools.
‘‘(4) Facilitating the issuance of bonds by charter schools,
or by other public entities for the benefit of charter schools,
by providing technical, administrative, and other appropriate
assistance (including the recruitment of bond counsel, underwriters, and potential investors and the consolidation of multiple charter school projects within a single bond issue).
‘‘(b) INVESTMENT.—Funds received under this subpart and
deposited in the reserve account shall be invested in obligations
issued or guaranteed by the United States or a State, or in other
similarly low-risk securities.
‘‘(c) REINVESTMENT OF EARNINGS.—Any earnings on funds
received under this subpart shall be deposited in the reserve account
established under subsection (a) and used in accordance with such
subsection.
‘‘SEC. 10326. LIMITATION ON ADMINISTRATIVE COSTS.
‘‘An eligible entity may use not more than 0.25 percent of
the funds received under this subpart for the administrative costs
of carrying out its responsibilities under this subpart.
‘‘SEC. 10327. AUDITS AND REPORTS.
‘‘(a) FINANCIAL RECORD MAINTENANCE AND AUDIT.—The financial records of each eligible entity receiving a grant under this
subpart shall be maintained in accordance with generally accepted
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114 STAT. 2763A–60
PUBLIC LAW 106–554—APPENDIX A
accounting principles and shall be subject to an annual audit by
an independent public accountant.
‘‘(b) REPORTS.—
‘‘(1) GRANTEE ANNUAL REPORTS.—Each eligible entity
receiving a grant under this subpart annually shall submit
to the Secretary a report of its operations and activities under
this subpart.
‘‘(2) CONTENTS.—Each such annual report shall include—
‘‘(A) a copy of the most recent financial statements,
and any accompanying opinion on such statements, prepared by the independent public accountant reviewing the
financial records of the eligible entity;
‘‘(B) a copy of any report made on an audit of the
financial records of the eligible entity that was conducted
under subsection (a) during the reporting period;
‘‘(C) an evaluation by the eligible entity of the effectiveness of its use of the Federal funds provided under this
subpart in leveraging private funds;
‘‘(D) a listing and description of the charter schools
served during the reporting period;
‘‘(E) a description of the activities carried out by the
eligible entity to assist charter schools in meeting the objectives set forth in section 10324; and
‘‘(F) a description of the characteristics of lenders and
other financial institutions participating in the activities
undertaken by the eligible entity under this subpart during
the reporting period.
‘‘(3) SECRETARIAL REPORT.—The Secretary shall review the
reports submitted under paragraph (1) and shall provide a
comprehensive annual report to Congress on the activities conducted under this subpart.
‘‘SEC. 10328. NO FULL FAITH AND CREDIT FOR GRANTEE OBLIGATIONS.
‘‘No financial obligation of an eligible entity entered into pursuant to this subpart (such as an obligation under a guarantee,
bond, note, evidence of debt, or loan) shall be an obligation of,
or guaranteed in any respect by, the United States. The full faith
and credit of the United States is not pledged to the payment
of funds which may be required to be paid under any obligation
made by an eligible entity pursuant to any provision of this subpart.
‘‘SEC. 10329. RECOVERY OF FUNDS.
‘‘(a) IN GENERAL.—The Secretary, in accordance with chapter
37 of title 31, United States Code, shall collect—
‘‘(1) all of the funds in a reserve account established by
an eligible entity under section 10325(a) if the Secretary determines, not earlier than 2 years after the date on which the
entity first received funds under this subpart, that the entity
has failed to make substantial progress in carrying out the
purposes described in section 10325(a); or
‘‘(2) all or a portion of the funds in a reserve account
established by an eligible entity under section 10325(a) if the
Secretary determines that the eligible entity has permanently
ceased to use all or a portion of the funds in such account
to accomplish any purpose described in section 10325(a).
‘‘(b) EXERCISE OF AUTHORITY.—The Secretary shall not exercise
the authority provided in subsection (a) to collect from any eligible
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–61
entity any funds that are being properly used to achieve one or
more of the purposes described in section 10325(a).
‘‘(c) PROCEDURES.—The provisions of sections 451, 452, and
458 of the General Education Provisions Act (20 U.S.C. 1234 et
seq.) shall apply to the recovery of funds under subsection (a).
‘‘(d) CONSTRUCTION.—This section shall not be construed to
impair or affect the authority of the Secretary to recover funds
under part D of the General Education Provisions Act (20 U.S.C.
1234 et seq.).
‘‘SEC. 10330. DEFINITIONS.
‘‘In this subpart:
‘‘(1) The term ‘charter school’ has the meaning given such
term in section 10310.
‘‘(2) The term ‘eligible entity’ means—
‘‘(A) a public entity, such as a State or local governmental entity;
‘‘(B) a private nonprofit entity; or
‘‘(C) a consortium of entities described in subparagraphs (A) and (B).
‘‘SEC. 10331. AUTHORIZATION OF APPROPRIATIONS.
‘‘For the purpose of carrying out this subpart, there are authorized to be appropriated $100,000,000 for fiscal year 2001.’’.
(b) Part C of title X of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 8061 et seq.) is amended in each of the
following provisions by striking ‘‘part’’ each place such term appears
and inserting ‘‘subpart’’:
(1) Sections 10301 through 10305.
(2) Section 10307.
(3) Sections 10309 through 10311.
SEC. 323. (a) Section 8003(b)(2)(F) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7703(b)(2)(F)) is
amended—
(1) by striking ‘‘the Secretary shall use’’ and inserting ‘‘the
Secretary—
‘‘(i) shall use’’;
(2) by striking the period at the end and inserting ‘‘; and’’;
and
(3) by adding at the end the following:
‘‘(ii) except as provided in subparagraph (C)(i)(I),
shall include all of the children described in subparagraphs (F) and (G) of subsection (a)(1) enrolled in
schools of the local educational agency in determining
(I) the eligibility of the agency for assistance under
this paragraph, and (II) the amount of such assistance
if the number of such children meet the requirements
of subsection (a)(3).’’.
(b) Section 8003(b)(2) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703(b)(2)) is amended by adding
at the end the following:
‘‘(G) DETERMINATION OF AVERAGE TAX RATES FOR GENERAL FUND PURPOSES.—For the purpose of determining
average tax rates for general fund purposes for local educational agencies in a State under this paragraph (except
under subparagraph (C)(i)(II)(bb)), the Secretary shall use
either—
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114 STAT. 2763A–62
PUBLIC LAW 106–554—APPENDIX A
‘‘(i) the average tax rate for general fund purposes
for comparable local educational agencies, as determined by the Secretary in regulations; or
‘‘(ii) the average tax rate of all the local educational
agencies in the State.’’.
This title may be cited as the ‘‘Department of Education Appropriations Act, 2001’’.
TITLE IV—RELATED AGENCIES
ARMED FORCES RETIREMENT HOME
For expenses necessary for the Armed Forces Retirement Home
to operate and maintain the United States Soldiers’ and Airmen’s
Home and the United States Naval Home, to be paid from funds
available in the Armed Forces Retirement Home Trust Fund,
$69,832,000, of which $9,832,000 shall remain available until
expended for construction and renovation of the physical plants
at the United States Soldiers’ and Airmen’s Home and the United
States Naval Home: Provided, That, notwithstanding any other
provision of law, a single contract or related contracts for development and construction, to include construction of a long-term care
facility at the United States Naval Home, may be employed which
collectively include the full scope of the project: Provided further,
That the solicitation and contract shall contain the clause ‘‘availability of funds’’ found at 48 CFR 52.232–18 and 252.232–7007, Limitation of Government Obligations.
CORPORATION
FOR
NATIONAL
AND
COMMUNITY SERVICE
DOMESTIC VOLUNTEER SERVICE PROGRAMS, OPERATING EXPENSES
For expenses necessary for the Corporation for National and
Community Service to carry out the provisions of the Domestic
Volunteer Service Act of 1973, as amended, $303,850,000: Provided,
That none of the funds made available to the Corporation for
National and Community Service in this Act for activities authorized by part E of title II of the Domestic Volunteer Service Act
of 1973 shall be used to provide stipends or other monetary incentives to volunteers or volunteer leaders whose incomes exceed 125
percent of the national poverty level.
CORPORATION
FOR
PUBLIC BROADCASTING
For payment to the Corporation for Public Broadcasting, as
authorized by the Communications Act of 1934, an amount which
shall be available within limitations specified by that Act, for the
fiscal year 2003, $365,000,000: Provided, That no funds made available to the Corporation for Public Broadcasting by this Act shall
be used to pay for receptions, parties, or similar forms of entertainment for Government officials or employees: Provided further, That
none of the funds contained in this paragraph shall be available
or used to aid or support any program or activity from which
any person is excluded, or is denied benefits, or is discriminated
against, on the basis of race, color, national origin, religion, or
sex: Provided further, That in addition to the amounts provided
above, $20,000,000, to remain available until expended, shall be
for digitalization, pending enactment of authorizing legislation.
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PUBLIC LAW 106–554—APPENDIX A
FEDERAL MEDIATION
AND
114 STAT. 2763A–63
CONCILIATION SERVICE
SALARIES AND EXPENSES
For expenses necessary for the Federal Mediation and Conciliation Service to carry out the functions vested in it by the Labor
Management Relations Act, 1947 (29 U.S.C. 171–180, 182–183),
including hire of passenger motor vehicles; for expenses necessary
for the Labor-Management Cooperation Act of 1978 (29 U.S.C.
175a); and for expenses necessary for the Service to carry out
the functions vested in it by the Civil Service Reform Act, Public
Law 95–454 (5 U.S.C. ch. 71), $38,200,000, including $1,500,000,
to remain available through September 30, 2002, for activities
authorized by the Labor-Management Cooperation Act of 1978 (29
U.S.C. 175a): Provided, That notwithstanding 31 U.S.C. 3302, fees
charged, up to full-cost recovery, for special training activities and
other conflict resolution services and technical assistance, including
those provided to foreign governments and international organizations, and for arbitration services shall be credited to and merged
with this account, and shall remain available until expended: Provided further, That fees for arbitration services shall be available
only for education, training, and professional development of the
agency workforce: Provided further, That the Director of the Service
is authorized to accept and use on behalf of the United States
gifts of services and real, personal, or other property in the aid
of any projects or functions within the Director’s jurisdiction.
FEDERAL MINE SAFETY
AND
HEALTH REVIEW COMMISSION
SALARIES AND EXPENSES
For expenses necessary for the Federal Mine Safety and Health
Review Commission (30 U.S.C. 801 et seq.), $6,320,000.
INSTITUTE
OF
MUSEUM
AND
LIBRARY SERVICES
OFFICE OF LIBRARY SERVICES: GRANTS AND ADMINISTRATION
For carrying out subtitle B of the Museum and Library Services
Act, $207,219,000: Provided, That of the amount provided,
$1,000,000 shall be awarded to the National Museum of Women
in the Arts in Washington, D.C., $700,000 shall be awarded to
the University of Idaho Institute for the Historic Study of Jazz,
$2,600,000 shall be awarded to Southeast Missouri State University
River Campus and Museum, $900,000 shall be awarded to the
Heritage Harbor Museum in Rhode Island, $500,000 shall be
awarded to the Alaska Native Heritage Center, $576,000 shall
be awarded to the Franklin Institute in Philadelphia, $925,000
shall be awarded to the Please Touch Museum, $250,000 shall
be awarded to the Pittsburgh Children’s Museum, $510,000 shall
be awarded to the Temple University Library, $1,800,000 shall
be awarded to Franklin Pierce College in New Hampshire, $500,000
shall be awarded to the Louisville Zoo in Kentucky, $150,000 shall
be awarded to the Oregon Historical Society, $1,200,000 shall be
awarded to the Mississippi River Museum and Discovery Center
in Dubuque, Iowa, $650,000 shall be awarded to the Salisbury
House Foundation in Des Moines, Iowa, $150,000 shall be awarded
to the History Center for the Linn County Historical Museum
in Iowa, $4,000,000 shall be awarded to the Newsline for the
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PUBLIC LAW 106–554—APPENDIX A
Blind, of which $100,000 shall be awarded to the Iowa Newsline
for the Blind and $100,000 shall be awarded to the West Virginia
Newsline for the Blind, $1,000,000 shall be awarded to the Clay
Center for the Arts and Sciences, $650,000 shall be awarded to
Bishops Museum in Hawaii, $500,000 shall be awarded to the
Wisconsin Maritime Museum, $250,000 shall be awarded to the
Natural History Museum of Los Angeles, $400,000 shall be awarded
to the Perkins Geology Museum at the University of Vermont,
$400,000 shall be awarded to the Walt Whitman Cultural Arts
Center in Camden, New Jersey, $400,000 shall be awarded to
the Plainfield Public Library in Plainfield, New Jersey, $150,000
shall be awarded to the Ducktown Arts District in Atlantic City,
New Jersey, $400,000 shall be awarded to the Lake Champlain
Science Center in Vermont, $250,000 shall be awarded to the
Foundation for the Arts, Music, and Entertainment of ShreveportBossier, Inc., $100,000 shall be awarded to Bryant College in Rhode
Island, $120,000 shall be awarded to the Fenton Historical Museum
of Jamestown, New York, $921,000 shall be awarded to the Mariners’ Museum in Newport News, Virginia, $461,000 shall be
awarded to DuPage County Children’s Museum in Naperville,
Illinois, $369,000 shall be awarded to the National Baseball Hall
of Fame Library in Cooperstown, New York, $92,000 shall be
awarded to the City of Corona, Riverside, California, $6,000 shall
be awarded to the City of Murrieta, California Public Library,
$1,382,000 shall be awarded to the Sierra Madre, California Public
Library, $23,000 shall be awarded to the Brooklyn Public Library
in Brooklyn, New York, $46,000 shall be awarded to the New
York Public Library Staten Island branch, $266,000 shall be
awarded to the Edward H. Nabb Research Center at Salisbury
State University in Salisbury, Maryland, $461,000 shall be awarded
to Texas Tech University, $230,000 shall be awarded to the City
of Ontario, California Public Library, $461,000 shall be awarded
to the Southern Oregon University in Ashland, Oregon, $1,106,000
shall be awarded to Christopher Newport University in Newport
News, Virginia, $128,000 shall be awarded to the Nassau County
Museum of Art in Roslyn Harbor, New York, $850,000 shall be
awarded to the Children’s Museum of Los Angeles, $43,000 shall
be awarded to Sumter County Library in Sumter, South Carolina,
$298,000 shall be awarded to Columbia College Center for Black
Music Research in Chicago, Illinois, $723,000 shall be awarded
to Old Sturbridge Village in Sturbridge, Massachusetts, $723,000
shall be awarded to New Bedford Whaling Museum in Massachusetts, $298,000 shall be awarded to Mystic Seaport Museum of
America and the Sea in Connecticut, $468,000 shall be awarded
to the City of Houston Public Library, $128,000 shall be awarded
to the Roberson Museum and Science Center in Binghampton,
New York, $850,000 shall be awarded to Berman Museum of Art
at Ursinus College in Collegeville, Pennsylvania, $680,000 shall
be awarded to AMISTAD Research Center at Tulane University,
$2,125,000 shall be awarded to Silas Bronson Library in Waterbury,
Connecticut, $213,000 shall be awarded to Fitchburg Art Museum
in Fitchburg, Massachusetts, $128,000 shall be awarded to North
Carolina Museum of Life and Science, $2,435,000 shall be awarded
to New York Public Library, $85,000 shall be awarded to the
New York Botanical Garden in Bronx, New York, $170,000 shall
be awarded to George Eastman House in Rochester, New York,
$425,000 shall be awarded to The National Aviary in Pittsburgh,
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–65
Pennsylvania, $723,000 shall be awarded to the George C. Page
Museum in Los Angeles, California, $461,000 shall be awarded
to the Abraham Lincoln Bicentennial Commission, and $410,000
shall be awarded to the AE Seaman Mineral Museum in Houghton,
Michigan.
MEDICARE PAYMENT ADVISORY COMMISSION
SALARIES AND EXPENSES
For expenses necessary to carry out section 1805 of the Social
Security Act, $8,000,000, to be transferred to this appropriation
from the Federal Hospital Insurance and the Federal Supplementary Medical Insurance Trust Funds.
NATIONAL COMMISSION
ON
LIBRARIES
AND INFORMATION
SCIENCE
SALARIES AND EXPENSES
For necessary expenses for the National Commission on Libraries and Information Science, established by the Act of July 20,
1970 (Public Law 91–345, as amended), $1,495,000.
NATIONAL COUNCIL
ON
DISABILITY
SALARIES AND EXPENSES
For expenses necessary for the National Council on Disability
as authorized by title IV of the Rehabilitation Act of 1973, as
amended, $2,615,000.
NATIONAL EDUCATION GOALS PANEL
For expenses necessary for the National Education Goals Panel,
as authorized by title II, part A of the Goals 2000: Educate America
Act, $1,500,000.
NATIONAL LABOR RELATIONS BOARD
SALARIES AND EXPENSES
For expenses necessary for the National Labor Relations Board
to carry out the functions vested in it by the Labor-Management
Relations Act, 1947, as amended (29 U.S.C. 141–167), and other
laws, $216,438,000: Provided, That no part of this appropriation
shall be available to organize or assist in organizing agricultural
laborers or used in connection with investigations, hearings, directives, or orders concerning bargaining units composed of agricultural
laborers as referred to in section 2(3) of the Act of July 5, 1935
(29 U.S.C. 152), and as amended by the Labor-Management Relations Act, 1947, as amended, and as defined in section 3(f ) of
the Act of June 25, 1938 (29 U.S.C. 203), and including in said
definition employees engaged in the maintenance and operation
of ditches, canals, reservoirs, and waterways when maintained or
operated on a mutual, nonprofit basis and at least 95 percent
of the water stored or supplied thereby is used for farming purposes.
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114 STAT. 2763A–66
PUBLIC LAW 106–554—APPENDIX A
NATIONAL MEDIATION BOARD
SALARIES AND EXPENSES
For expenses necessary to carry out the provisions of the Railway Labor Act, as amended (45 U.S.C. 151–188), including emergency boards appointed by the President, $10,400,000.
OCCUPATIONAL SAFETY
AND
HEALTH REVIEW COMMISSION
SALARIES AND EXPENSES
For expenses necessary for the Occupational Safety and Health
Review Commission (29 U.S.C. 661), $8,720,000.
RAILROAD RETIREMENT BOARD
DUAL BENEFITS PAYMENTS ACCOUNT
For payment to the Dual Benefits Payments Account, authorized under section 15(d) of the Railroad Retirement Act of 1974,
$160,000,000, which shall include amounts becoming available in
fiscal year 2001 pursuant to section 224(c)(1)(B) of Public Law
98–76; and in addition, an amount, not to exceed 2 percent of
the amount provided herein, shall be available proportional to the
amount by which the product of recipients and the average benefit
received exceeds $160,000,000: Provided, That the total amount
provided herein shall be credited in 12 approximately equal amounts
on the first day of each month in the fiscal year.
FEDERAL PAYMENTS TO THE RAILROAD RETIREMENT ACCOUNTS
For payment to the accounts established in the Treasury for
the payment of benefits under the Railroad Retirement Act for
interest earned on unnegotiated checks, $150,000, to remain available through September 30, 2002, which shall be the maximum
amount available for payment pursuant to section 417 of Public
Law 98–76.
LIMITATION ON ADMINISTRATION
For necessary expenses for the Railroad Retirement Board for
administration of the Railroad Retirement Act and the Railroad
Unemployment Insurance Act, $95,000,000, to be derived in such
amounts as determined by the Board from the railroad retirement
accounts and from moneys credited to the railroad unemployment
insurance administration fund.
LIMITATION ON THE OFFICE OF INSPECTOR GENERAL
For expenses necessary for the Office of Inspector General
for audit, investigatory and review activities, as authorized by the
Inspector General Act of 1978, as amended, not more than
$5,700,000, to be derived from the railroad retirement accounts
and railroad unemployment insurance account: Provided, That none
of the funds made available in any other paragraph of this Act
may be transferred to the Office; used to carry out any such transfer;
used to provide any office space, equipment, office supplies, communications facilities or services, maintenance services, or administrative services for the Office; used to pay any salary, benefit, or
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114 STAT. 2763A–67
award for any personnel of the Office; used to pay any other
operating expense of the Office; or used to reimburse the Office
for any service provided, or expense incurred, by the Office.
SOCIAL SECURITY ADMINISTRATION
PAYMENTS TO SOCIAL SECURITY TRUST FUNDS
For payment to the Federal Old-Age and Survivors Insurance
and the Federal Disability Insurance trust funds, as provided under
sections 201(m), 228(g), and 1131(b)(2) of the Social Security Act,
$20,400,000.
SPECIAL BENEFITS FOR DISABLED COAL MINERS
For carrying out title IV of the Federal Mine Safety and Health
Act of 1977, $365,748,000, to remain available until expended.
For making, after July 31 of the current fiscal year, benefit
payments to individuals under title IV of the Federal Mine Safety
and Health Act of 1977, for costs incurred in the current fiscal
year, such amounts as may be necessary.
For making benefit payments under title IV of the Federal
Mine Safety and Health Act of 1977 for the first quarter of fiscal
year 2002, $114,000,000, to remain available until expended.
SUPPLEMENTAL SECURITY INCOME PROGRAM
For carrying out titles XI and XVI of the Social Security Act,
section 401 of Public Law 92–603, section 212 of Public Law 93–
66, as amended, and section 405 of Public Law 95–216, including
payment to the Social Security trust funds for administrative
expenses incurred pursuant to section 201(g)(1) of the Social Security Act, $23,043,000,000, to remain available until expended: Provided, That any portion of the funds provided to a State in the
current fiscal year and not obligated by the State during that
year shall be returned to the Treasury.
In addition, $210,000,000, to remain available until September
30, 2002, for payment to the Social Security trust funds for administrative expenses for continuing disability reviews as authorized
by section 103 of Public Law 104–121 and section 10203 of Public
Law 105–33. The term ‘‘continuing disability reviews’’ means
reviews and redeterminations as defined under section 201(g)(1)(A)
of the Social Security Act, as amended.
For making, after June 15 of the current fiscal year, benefit
payments to individuals under title XVI of the Social Security
Act, for unanticipated costs incurred for the current fiscal year,
such sums as may be necessary.
For making benefit payments under title XVI of the Social
Security Act for the first quarter of fiscal year 2002,
$10,470,000,000, to remain available until expended.
LIMITATION ON ADMINISTRATIVE EXPENSES
For necessary expenses, including the hire of two passenger
motor vehicles, and not to exceed $10,000 for official reception
and representation expenses, not more than $6,583,000,000 may
be expended, as authorized by section 201(g)(1) of the Social Security Act, from any one or all of the trust funds referred to therein:
Provided, That not less than $1,800,000 shall be for the Social
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114 STAT. 2763A–68
PUBLIC LAW 106–554—APPENDIX A
Security Advisory Board: Provided further, That unobligated balances at the end of fiscal year 2001 not needed for fiscal year
2001 shall remain available until expended to invest in the Social
Security Administration information technology and telecommunications hardware and software infrastructure, including related
equipment and non-payroll administrative expenses associated
solely with this information technology and telecommunications
infrastructure: Provided further, That reimbursement to the trust
funds under this heading for expenditures for official time for
employees of the Social Security Administration pursuant to section
7131 of title 5, United States Code, and for facilities or support
services for labor organizations pursuant to policies, regulations,
or procedures referred to in section 7135(b) of such title shall
be made by the Secretary of the Treasury, with interest, from
amounts in the general fund not otherwise appropriated, as soon
as possible after such expenditures are made.
From funds provided under the previous paragraph, notwithstanding the provision under this heading in Public Law 106–
113 regarding unobligated balances at the end of fiscal year 2000
not needed for such fiscal year, an amount not to exceed $50,000,000
from such unobligated balances shall, in addition to funding already
available under this heading for fiscal year 2001, be available
for necessary expenses.
From funds provided under the first paragraph, not less than
$200,000,000 shall be available for conducting continuing disability
reviews.
In addition to funding already available under this heading,
and subject to the same terms and conditions, $450,000,000, to
remain available until September 30, 2002, for continuing disability
reviews as authorized by section 103 of Public Law 104–121 and
section 10203 of Public Law 105–33. The term ‘‘continuing disability
reviews’’ means reviews and redeterminations as defined under
section 201(g)(1)(A) of the Social Security Act, as amended.
In addition, $91,000,000 to be derived from administration fees
in excess of $5.00 per supplementary payment collected pursuant
to section 1616(d) of the Social Security Act or section 212(b)(3)
of Public Law 93–66, which shall remain available until expended.
To the extent that the amounts collected pursuant to such section
1616(d) or 212(b)(3) in fiscal year 2001 exceed $91,000,000, the
amounts shall be available in fiscal year 2002 only to the extent
provided in advance in appropriations Acts.
From funds previously appropriated for this purpose, any
unobligated balances at the end of fiscal year 2000 shall be available
to continue Federal-State partnerships which will evaluate means
to promote Medicare buy-in programs targeted to elderly and disabled individuals under titles XVIII and XIX of the Social Security
Act.
From funds provided under the first paragraph, up to
$6,000,000 shall be available for implementation, development,
evaluation, and other costs associated with administration of section
302 of the Ticket to Work and Work Incentives Improvement Act.
OFFICE OF INSPECTOR GENERAL
(INCLUDING
TRANSFER OF FUNDS)
For expenses necessary for the Office of Inspector General
in carrying out the provisions of the Inspector General Act of
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–69
1978, as amended, $16,944,000, together with not to exceed
$52,500,000, to be transferred and expended as authorized by section 201(g)(1) of the Social Security Act from the Federal OldAge and Survivors Insurance Trust Fund and the Federal Disability
Insurance Trust Fund.
In addition, an amount not to exceed 3 percent of the total
provided in this appropriation may be transferred from the ‘‘Limitation on Administrative Expenses’’, Social Security Administration,
to be merged with this account, to be available for the time and
purposes for which this account is available: Provided, That notice
of such transfers shall be transmitted promptly to the Committees
on Appropriations of the House and Senate.
UNITED STATES INSTITUTE
OF
PEACE
OPERATING EXPENSES
For necessary expenses of the United States Institute of Peace
as authorized in the United States Institute of Peace Act,
$15,000,000.
TITLE V—GENERAL PROVISIONS
SEC. 501. The Secretaries of Labor, Health and Human Services, and Education are authorized to transfer unexpended balances
of prior appropriations to accounts corresponding to current appropriations provided in this Act: Provided, That such transferred
balances are used for the same purpose, and for the same periods
of time, for which they were originally appropriated.
SEC. 502. No part of any appropriation contained in this Act
shall remain available for obligation beyond the current fiscal year
unless expressly so provided herein.
SEC. 503. (a) No part of any appropriation contained in this
Act shall be used, other than for normal and recognized executivelegislative relationships, for publicity or propaganda purposes, for
the preparation, distribution, or use of any kit, pamphlet, booklet,
publication, radio, television, or video presentation designed to support or defeat legislation pending before the Congress or any State
legislature, except in presentation to the Congress or any State
legislature itself.
(b) No part of any appropriation contained in this Act shall
be used to pay the salary or expenses of any grant or contract
recipient, or agent acting for such recipient, related to any activity
designed to influence legislation or appropriations pending before
the Congress or any State legislature.
SEC. 504. The Secretaries of Labor and Education are authorized to make available not to exceed $20,000 and $15,000, respectively, from funds available for salaries and expenses under titles
I and III, respectively, for official reception and representation
expenses; the Director of the Federal Mediation and Conciliation
Service is authorized to make available for official reception and
representation expenses not to exceed $2,500 from the funds available for ‘‘Salaries and expenses, Federal Mediation and Conciliation
Service’’; and the Chairman of the National Mediation Board is
authorized to make available for official reception and representation expenses not to exceed $2,500 from funds available for ‘‘Salaries
and expenses, National Mediation Board’’.
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114 STAT. 2763A–70
PUBLIC LAW 106–554—APPENDIX A
SEC. 505. Notwithstanding any other provision of this Act,
no funds appropriated under this Act shall be used to carry out
any program of distributing sterile needles or syringes for the
hypodermic injection of any illegal drug.
SEC. 506. (a) It is the sense of the Congress that, to the
greatest extent practicable, all equipment and products purchased
with funds made available in this Act should be American-made.
(b) In providing financial assistance to, or entering into any
contract with, any entity using funds made available in this Act,
the head of each Federal agency, to the greatest extent practicable,
shall provide to such entity a notice describing the statement made
in subsection (a) by the Congress.
(c) If it has been finally determined by a court or Federal
agency that any person intentionally affixed a label bearing a
‘‘Made in America’’ inscription, or any inscription with the same
meaning, to any product sold in or shipped to the United States
that is not made in the United States, the person shall be ineligible
to receive any contract or subcontract made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described in sections 9.400 through 9.409 of
title 48, Code of Federal Regulations.
SEC. 507. When issuing statements, press releases, requests
for proposals, bid solicitations and other documents describing
projects or programs funded in whole or in part with Federal
money, all grantees receiving Federal funds included in this Act,
including but not limited to State and local governments and recipients of Federal research grants, shall clearly state: (1) the percentage of the total costs of the program or project which will be
financed with Federal money; (2) the dollar amount of Federal
funds for the project or program; and (3) percentage and dollar
amount of the total costs of the project or program that will be
financed by non-governmental sources.
SEC. 508. (a) None of the funds appropriated under this Act,
and none of the funds in any trust fund to which funds are appropriated under this Act, shall be expended for any abortion.
(b) None of the funds appropriated under this Act, and none
of the funds in any trust fund to which funds are appropriated
under this Act, shall be expended for health benefits coverage
that includes coverage of abortion.
(c) The term ‘‘health benefits coverage’’ means the package
of services covered by a managed care provider or organization
pursuant to a contract or other arrangement.
SEC. 509. (a) The limitations established in the preceding section shall not apply to an abortion—
(1) if the pregnancy is the result of an act of rape or
incest; or
(2) in the case where a woman suffers from a physical
disorder, physical injury, or physical illness, including a lifeendangering physical condition caused by or arising from the
pregnancy itself, that would, as certified by a physician, place
the woman in danger of death unless an abortion is performed.
(b) Nothing in the preceding section shall be construed as
prohibiting the expenditure by a State, locality, entity, or private
person of State, local, or private funds (other than a State’s or
locality’s contribution of Medicaid matching funds).
(c) Nothing in the preceding section shall be construed as
restricting the ability of any managed care provider from offering
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–71
abortion coverage or the ability of a State or locality to contract
separately with such a provider for such coverage with State funds
(other than a State’s or locality’s contribution of Medicaid matching
funds).
SEC. 510. (a) None of the funds made available in this Act
may be used for—
(1) the creation of a human embryo or embryos for research
purposes; or
(2) research in which a human embryo or embryos are
destroyed, discarded, or knowingly subjected to risk of injury
or death greater than that allowed for research on fetuses
in utero under 45 CFR 46.208(a)(2) and section 498(b) of the
Public Health Service Act (42 U.S.C. 289g(b)).
(b) For purposes of this section, the term ‘‘human embryo
or embryos’’ includes any organism, not protected as a human
subject under 45 CFR 46 as of the date of the enactment of this
Act, that is derived by fertilization, parthenogenesis, cloning, or
any other means from one or more human gametes or human
diploid cells.
SEC. 511. (a) None of the funds made available in this Act
may be used for any activity that promotes the legalization of
any drug or other substance included in schedule I of the schedules
of controlled substances established by section 202 of the Controlled
Substances Act (21 U.S.C. 812).
(b) The limitation in subsection (a) shall not apply when there
is significant medical evidence of a therapeutic advantage to the
use of such drug or other substance or that federally sponsored
clinical trials are being conducted to determine therapeutic advantage.
SEC. 512. None of the funds made available in this Act may
be obligated or expended to enter into or renew a contract with
an entity if—
(1) such entity is otherwise a contractor with the United
States and is subject to the requirement in section 4212(d)
of title 38, United States Code, regarding submission of an
annual report to the Secretary of Labor concerning employment
of certain veterans; and
(2) such entity has not submitted a report as required
by that section for the most recent year for which such requirement was applicable to such entity.
SEC. 513. (a) Section 403(a)(5)(H)(iii) of the Social Security
Act (42 U.S.C. 603(a)(5)(H)(iii)) is amended by striking ‘‘2001’’ and
inserting ‘‘2005’’.
(b) Section 403(a)(5)(H) of such Act (42 U.S.C. 603(a)(5)(G))
is amended by adding at the end the following:
‘‘(iv) INTERIM REPORT.—Not later than January 1,
2002, the Secretary shall submit to the Congress an
interim report on the evaluations referred to in clause
(i).’’.
SEC. 514. None of the funds made available in this Act may
be used to promulgate or adopt any final standard under section
1173(b) of the Social Security Act (42 U.S.C. 1320d–2(b)) providing
for, or providing for the assignment of, a unique health identifier
for an individual (except in an individual’s capacity as an employer
or a health care provider), until legislation is enacted specifically
approving the standard.
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114 STAT. 2763A–72
PUBLIC LAW 106–554—APPENDIX A
SEC. 515. Section 410(b) of The Ticket to Work and Work
Incentives Improvement Act of 1999 (Public Law 106–170) is amended by striking ‘‘2009’’ both places it appears and inserting ‘‘2001’’.
SEC. 516. (a) HUMAN PAPILLOMAVIRUS.—Part B of title III of
the Public Health Services Act (42 U.S.C. 243 et seq.) is amended
by inserting before section 318 the following section:
‘‘HUMAN
PAPILLOMAVIRUS
‘‘SEC. 317P. (a) SURVEILLANCE.—
‘‘(1) IN GENERAL.—The Secretary, acting through the Centers for Disease Control and Prevention, shall—
‘‘(A) enter into cooperative agreements with States and
other entities to conduct sentinel surveillance or other special studies that would determine the prevalence in various
age groups and populations of specific types of human
papillomavirus (referred to in this section as ‘HPV’) in
different sites in various regions of the United States,
through collection of special specimens for HPV using a
variety of laboratory-based testing and diagnostic tools;
and
‘‘(B) develop and analyze data from the HPV sentinel
surveillance system described in subparagraph (A).
‘‘(2) REPORT.—The Secretary shall make a progress report
to the Congress with respect to paragraph (1) no later than
1 year after the effective date of this section.
‘‘(b) PREVENTION ACTIVITIES; EDUCATION PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary, acting through the Centers for Disease Control and Prevention, shall conduct prevention research on HPV, including—
‘‘(A) behavioral and other research on the impact of
HPV-related diagnosis on individuals;
‘‘(B) formative research to assist with the development
of educational messages and information for the public,
for patients, and for their partners about HPV;
‘‘(C) surveys of physician and public knowledge, attitudes, and practices about genital HPV infection; and
‘‘(D) upon the completion of and based on the findings
under subparagraphs (A) through (C), develop and disseminate educational materials for the public and health care
providers regarding HPV and its impact and prevention.
‘‘(2) REPORT; FINAL PROPOSAL.—The Secretary shall make
a progress report to the Congress with respect to paragraph
(1) not later than 1 year after the effective date of this section,
and shall develop a final report not later than 3 years after
such effective date, including a detailed summary of the significant findings and problems and the best strategies to prevent
future infections, based on available science.
‘‘(c) HPV EDUCATION AND PREVENTION.—
‘‘(1) IN GENERAL.—The Secretary shall prepare and distribute educational materials for health care providers and the
public that include information on HPV. Such materials shall
address—
‘‘(A) modes of transmission;
‘‘(B) consequences of infection, including the link
between HPV and cervical cancer;
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–73
‘‘(C) the available scientific evidence on the effectiveness or lack of effectiveness of condoms in preventing infection with HPV; and
‘‘(D) the importance of regular Pap smears, and other
diagnostics for early intervention and prevention of cervical
cancer purposes in preventing cervical cancer.
‘‘(2) MEDICALLY ACCURATE INFORMATION.—Educational
material under paragraph (1), and all other relevant educational and prevention materials prepared and printed from
this date forward for the public and health care providers
by the Secretary (including materials prepared through the
Food and Drug Administration, the Centers for Disease Control
and Prevention, and the Health Resources and Services
Administration), or by contractors, grantees, or subgrantees
thereof, that are specifically designed to address STDs including
HPV shall contain medically accurate information regarding
the effectiveness or lack of effectiveness of condoms in preventing the STD the materials are designed to address. Such
requirement only applies to materials mass produced for the
public and health care providers, and not to routine communications.’’.
(b) LABELING OF CONDOMS.—The Secretary of Health and
Human Services shall reexamine existing condom labels that are
authorized pursuant to the Federal Food, Drug, and Cosmetic Act
to determine whether the labels are medically accurate regarding
the overall effectiveness or lack of effectiveness of condoms in
preventing sexually transmitted diseases, including HPV.
SEC. 517. Section 403(o) of the Food, Drug, and Cosmetic Act
(21 U.S.C. 343(o)) is repealed. Subsections (c) and (d) of section
4 of the Saccharin Study and Labeling Act are repealed.
SEC. 518. (a) Title VIII of the Social Security Act is amended
by inserting after section 810 (42 U.S.C. 1010) the following new
section:
‘‘SEC. 810A. OPTIONAL FEDERAL ADMINISTRATION OF STATE RECOGNITION PAYMENTS.
‘‘(a) IN GENERAL.—The Commissioner of Social Security may
enter into an agreement with any State (or political subdivision
thereof ) that provides cash payments on a regular basis to individuals entitled to benefits under this title under which the Commissioner of Social Security shall make such payments on behalf of
such State (or subdivision).
‘‘(b) AGREEMENT TERMS.—
‘‘(1) IN GENERAL.—Such agreement shall include such terms
as the Commissioner of Social Security finds necessary to
achieve efficient and effective administration of both this title
and the State program.
‘‘(2) FINANCIAL TERMS.—Such agreement shall provide for
the State to pay the Commissioner of Social Security, at such
times and in such installments as the parties may specify—
‘‘(A) an amount equal to the expenditures made by
the Commissioner of Social Security pursuant to such
agreement as payments to individuals on behalf of such
State; and
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114 STAT. 2763A–74
PUBLIC LAW 106–554—APPENDIX A
‘‘(B) an administration fee to reimburse the administrative expenses incurred by the Commissioner of Social Security in making payments to individuals on behalf of the
State.
‘‘(c) SPECIAL DISPOSITION OF ADMINISTRATION FEES.—Administration fees, upon collection, shall be credited to a special fund
established in the Treasury of the United States for State recognition payments for certain World War II veterans. The amounts
so credited, to the extent and in the amounts provided in advance
in appropriations Acts, shall be available to defray expenses
incurred in carrying out this title.’’.
(b) CONFORMING AMENDMENTS.—
(1) The table of contents of title VIII of the Social Security
Act is amended by inserting after
‘‘Sec. 810. Other administrative provisions.’’
the following:
‘‘Sec. 810A. Optional Federal administration of State recognition payments.’’.
(2) Section 1129A(e) of the Social Security Act (42 U.S.C.
1320a–8a(e)) is amended—
(A) by inserting ‘‘VIII or’’ after ‘‘benefits under’’;
(B) by inserting ‘‘810A or’’ after ‘‘agreement under section’’;
(C) by inserting ‘‘1010A or’’ before ‘‘1382(e)(a)’’; and
(D) by inserting ‘‘, as the case may be’’ immediately
before the period.
SEC. 519. Section 1612(a)(1) of the Social Security Act (42
U.S.C. 1382(a) is amended—
(1) in subparagraph (A), by inserting ‘‘but without the
application of section 210( j)(3)’’ immediately before the semicolon; and
(2) in subparagraph (B), by—
(A) striking ‘‘and the last’’ and inserting ‘‘the last’’;
and
(B) inserting ‘‘, and section 210( j)(3)’’ after ‘‘subsection
(a)’’.
SEC. 520. Amounts made available under this Act for the
administrative and related expenses for departmental management
for the Department of Labor, the Department of Health and Human
Services, and the Department of Education shall be reduced on
a pro rata basis by $25,000,000: Provided, That this provision
shall not apply to the Food and Drug Administration and the
Indian Health Service.
TITLE VI—ASSETS FOR INDEPENDENCE
SEC. 601. SHORT TITLE.
This title may be cited as the ‘‘Assets for Independence Act
Amendments of 2000’’.
SEC. 602. MATCHING CONTRIBUTIONS UNAVAILABLE FOR EMERGENCY
WITHDRAWALS.
Section 404(5)(A)(v) of the Assets for Independence Act (42
U.S.C. 604 note) is amended by striking ‘‘, or enabling the eligible
individual to make an emergency withdrawal’’.
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–75
SEC. 603. ADDITIONAL QUALIFIED ENTITIES.
Section 404(7)(A) of the Assets for Independence Act (42 U.S.C.
604 note) is amended—
(1) in clause (i), by striking ‘‘or’’ at the end thereof;
(2) in clause (ii), by striking the period at the end and
inserting ‘‘; or’’; and
(3) by adding at the end the following new clause:
‘‘(iii) an entity that—
‘‘(I) is—
‘‘(aa) a credit union designated as a lowincome credit union by the National Credit
Union Administration (NCUA); or
‘‘(bb) an organization designated as a
community development financial institution
by the Secretary of the Treasury (or the
Community Development Financial Institutions Fund); and
‘‘(II) can demonstrate a collaborative relationship with a local community-based organization
whose activities are designed to address poverty
in the community and the needs of community
members for economic independence and stability.’’.
SEC. 604. HOME PURCHASE COSTS.
Section 404(8)(B)(i) of the Assets for Independence Act (42
U.S.C. 604 note) is amended by striking ‘‘100’’ and inserting ‘‘120’’.
SEC. 605. INCREASED SET-ASIDE FOR ECONOMIC LITERACY TRAINING
AND ADMINISTRATIVE COSTS.
Section 407(c)(3) of the Assets for Independence Act (42 U.S.C.
604 note) is amended—
(1) by striking ‘‘9.5’’ and inserting ‘‘15’’; and
(2) by inserting after the first sentence the following: ‘‘Of
the total amount specified in this paragraph, not more than
7.5 percent shall be used for administrative functions under
paragraph (1)(C), including program management, reporting
requirements, recruitment and enrollment of individuals, and
monitoring. The remainder of the total amount specified in
this paragraph (not including the amount specified for use
for the purposes described in paragraph (1)(D)) shall be used
for nonadministrative functions described in paragraph (1)(A),
including case management, budgeting, economic literacy, and
credit counseling. If the cost of nonadministrative functions
described in paragraph (1)(A) is less than 5.5 percent of the
total amount specified in this paragraph, such excess funds
may be used for administrative functions.’’.
SEC. 606. ALTERNATIVE ELIGIBILITY CRITERIA.
Section 408(a)(1) of the Assets for Independence Act (42 U.S.C.
604 note) is amended by striking ‘‘does not exceed’’ and inserting
‘‘is equal to or less than 200 percent of the poverty line (as determined by the Office of Management and Budget) or’’.
SEC. 607. REVISED ANNUAL PROGRESS REPORT DEADLINE.
(a) IN GENERAL.—Section 412(c) of the Assets for Independence
Act (42 U.S.C. 604 note) is amended by striking ‘‘calendar’’ and
inserting ‘‘project’’.
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114 STAT. 2763A–76
PUBLIC LAW 106–554—APPENDIX A
(b) TRANSITIONAL DEADLINE.—Notwithstanding the amendment
made by subsection (a), the submission of the initial report of
a qualified entity under section 412(c) shall not be required prior
to the date that is 90 days after the date of enactment of this
title.
SEC. 608. REVISED INTERIM EVALUATION REPORT DEADLINE.
(a) IN GENERAL.—Section 414(d)(1) of the Assets for Independence Act (42 U.S.C. 604 note) is amended by striking ‘‘calendar’’
and inserting ‘‘project’’.
(b) TRANSITIONAL DEADLINE.—Notwithstanding the amendment
made by subsection (a), the submission of the initial interim report
of the Secretary under section 412(c) shall not be required prior
to the date that is 90 days after the date of enactment of this
title.
SEC. 609. INCREASED APPROPRIATIONS FOR EVALUATION EXPENSES.
Subsection (e) of section 414 of the Assets for Independence
Act (42 U.S.C. 604 note) is amended to read as follows:
‘‘(e) EVALUATION EXPENSES.—Of the amount appropriated
under section 416 for a fiscal year, the Secretary may expend
not more than $500,000 for such fiscal year to carry out the objectives of this section.’’.
SEC. 610. NO REDUCTION IN BENEFITS.
Section 415 of the Assets for Independence Act (42 U.S.C.
604 note) is amended to read as follows:
‘‘SEC. 415. NO REDUCTION IN BENEFITS.
‘‘Notwithstanding any other provision of Federal law (other
than the Internal Revenue Code of 1986) that requires consideration
of one or more financial circumstances of an individual, for the
purpose of determining eligibility to receive, or the amount of,
any assistance or benefit authorized by such law to be provided
to or for the benefit of such individual, funds (including interest
accruing) in an individual development account under this Act
shall be disregarded for such purpose with respect to any period
during which such individual maintains or makes contributions
into such an account.’’.
TITLE VII—PHYSICAL EDUCATION FOR PROGRESS ACT
SEC. 701. PHYSICAL EDUCATION FOR PROGRESS. Title X of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 8001
et seq.) is amended by adding at the end the following:
‘‘PART L—PHYSICAL EDUCATION FOR
PROGRESS
‘‘SEC. 10999A. SHORT TITLE.
‘‘This part may be cited as the ‘Physical Education for Progress
Act’.
‘‘SEC. 10999B. PURPOSE.
‘‘The purpose of this part is to award grants and contracts
to local educational agencies to enable the local educational agencies
to initiate, expand and improve physical education programs for
all kindergarten through 12th grade students.
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–77
‘‘SEC. 10999C. FINDINGS.
‘‘Congress makes the following findings:
‘‘(1) Physical education is essential to the development
of growing children.
‘‘(2) Physical education helps improve the overall health
of children by improving their cardiovascular endurance, muscular strength and power, and flexibility, and by enhancing
weight regulation, bone development, posture, skillful moving,
active lifestyle habits, and constructive use of leisure time.
‘‘(3) Physical education helps improve the self esteem, interpersonal relationships, responsible behavior, and independence
of children.
‘‘(4) Children who participate in high quality daily physical
education programs tend to be more healthy and physically
fit.
‘‘(5) The percentage of young people who are overweight
has more than doubled in the 30 years preceding 1999.
‘‘(6) Low levels of activity contribute to the high prevalence
of obesity among children in the United States.
‘‘(7) Obesity related diseases cost the United States economy more than $100,000,000,000 every year.
‘‘(8) Inactivity and poor diet cause at least 300,000 deaths
a year in the United States.
‘‘(9) Physically fit adults have significantly reduced risk
factors for heart attacks and stroke.
‘‘(10) Children are not as active as they should be and
fewer than one in four children get 20 minutes of vigorous
activity every day of the week.
‘‘(11) The Surgeon General’s 1996 Report on Physical Activity and Health, and the Centers for Disease Control and Prevention, recommend daily physical education for all students in
kindergarten through grade 12.
‘‘(12) Twelve years after Congress passed House Concurrent
Resolution 97, 100th Congress, agreed to December 11, 1987,
encouraging State and local governments and local educational
agencies to provide high quality daily physical education programs for all children in kindergarten through grade 12, little
progress has been made.
‘‘(13) Every student in our Nation’s schools, from kindergarten through grade 12, should have the opportunity to participate in quality physical education. It is the unique role of
quality physical education programs to develop the healthrelated fitness, physical competence, and cognitive understanding about physical activity for all students so that the students
can adopt healthy and physically active lifestyles.
‘‘SEC. 10999D. PROGRAM AUTHORIZED.
‘‘The Secretary is authorized to award grants to, and enter
into contracts with, local educational agencies to pay the Federal
share of the costs of initiating, expanding, and improving physical
education programs for kindergarten through grade 12 students
by—
‘‘(1) providing equipment and support to enable students
to actively participate in physical education activities; and
‘‘(2) providing funds for staff and teacher training and
education.
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114 STAT. 2763A–78
PUBLIC LAW 106–554—APPENDIX A
‘‘SEC. 10999E. APPLICATIONS; PROGRAM ELEMENTS.
‘‘(a) APPLICATIONS.—Each local educational agency desiring a
grant or contract under this part shall submit to the Secretary
an application that contains a plan to initiate, expand, or improve
physical education programs in the schools served by the agency
in order to make progress toward meeting State standards for
physical education.
‘‘(b) PROGRAM ELEMENTS.—A physical education program
described in any application submitted under subsection (a) may
provide—
‘‘(1) fitness education and assessment to help children
understand, improve, or maintain their physical well-being;
‘‘(2) instruction in a variety of motor skills and physical
activities designed to enhance the physical, mental, and social
or emotional development of every child;
‘‘(3) development of cognitive concepts about motor skill
and physical fitness that support a lifelong healthy lifestyle;
‘‘(4) opportunities to develop positive social and cooperative
skills through physical activity participation;
‘‘(5) instruction in healthy eating habits and good nutrition;
and
‘‘(6) teachers of physical education the opportunity for
professional development to stay abreast of the latest research,
issues, and trends in the field of physical education.
‘‘(c) SPECIAL RULE.—For the purpose of this part, extracurricular activities such as team sports and Reserve Officers’ Training Corps (ROTC) program activities shall not be considered as
part of the curriculum of a physical education program assisted
under this part.
‘‘SEC. 10999F. PROPORTIONALITY.
‘‘The Secretary shall ensure that grants awarded and contracts
entered into under this part shall be equitably distributed between
local educational agencies serving urban and rural areas, and
between local educational agencies serving large and small numbers
of students.
‘‘SEC. 10999G. PRIVATE SCHOOL STUDENTS AND HOME-SCHOOLED STUDENTS.
‘‘An application for funds under this part may provide for
the participation, in the activities funded under this part, of—
‘‘(1) home-schooled children, and their parents and teachers; or
‘‘(2) children enrolled in private nonprofit elementary
schools or secondary schools, and their parents and teachers.
‘‘SEC. 10999H. REPORT REQUIRED FOR CONTINUED FUNDING.
‘‘As a condition to continue to receive grant or contract funding
after the first year of a multiyear grant or contract under this
part, the administrator of the grant or contract for the local educational agency shall submit to the Secretary an annual report
that describes the activities conducted during the preceding year
and demonstrates that progress has been made toward meeting
State standards for physical education.
‘‘SEC. 10999I. REPORT TO CONGRESS.
‘‘The Secretary shall submit a report to Congress not later
than June 1, 2003, that describes the programs assisted under
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–79
this part, documents the success of such programs in improving
physical fitness, and makes such recommendations as the Secretary
determines appropriate for the continuation and improvement of
the programs assisted under this part.
‘‘SEC. 10999J. ADMINISTRATIVE COSTS.
‘‘Not more than 5 percent of the grant or contract funds made
available to a local educational agency under this part for any
fiscal year may be used for administrative costs.
‘‘SEC. 10999K. FEDERAL SHARE; SUPPLEMENT NOT SUPPLANT.
‘‘(a) FEDERAL SHARE.—The Federal share under this part may
not exceed—
‘‘(1) 90 percent of the total cost of a project for the first
year for which the project receives assistance under this part;
and
‘‘(2) 75 percent of such cost for the second and each subsequent such year.
‘‘(b) SUPPLEMENT NOT SUPPLANT.—Funds made available under
this part shall be used to supplement and not supplant other
Federal, State and local funds available for physical education
activities.
‘‘SEC. 10999L. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated $30,000,000 for fiscal
year 2001, $70,000,000 for fiscal year 2002, and $100,000,000 for
each of the fiscal years 2003 through 2005, to carry out this part.
Such funds shall remain available until expended.’’.
TITLE VIII—EARLY LEARNING OPPORTUNITIES
SEC. 801. SHORT TITLE; FINDINGS.
(a) SHORT TITLE.—This title may be cited as the ‘‘Early Learning Opportunities Act’’.
(b) FINDINGS.—Congress finds that—
(1) medical research demonstrates that adequate stimulation of a young child’s brain between birth and age 5 is critical
to the physical development of the young child’s brain;
(2) parents are the most significant and effective teachers
of their children, and they alone are responsible for choosing
the best early learning opportunities for their child;
(3) parent education and parent involvement are critical
to the success of any early learning program or activity;
(4) the more intensively parents are involved in their child’s
early learning, the greater the cognitive and noncognitive benefits to their children;
(5) many parents have difficulty finding the information
and support the parents seek to help their children grow to
their full potential;
(6) each day approximately 13,000,000 young children,
including 6,000,000 infants or toddlers, spend some or all of
their day being cared for by someone other than their parents;
(7) quality early learning programs, including those
designed to promote effective parenting, can increase the literacy rate, the secondary school graduation rate, the employment rate, and the college enrollment rate for children who
have participated in voluntary early learning programs and
activities;
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114 STAT. 2763A–80
PUBLIC LAW 106–554—APPENDIX A
(8) early childhood interventions can yield substantial
advantages to participants in terms of emotional and cognitive
development, education, economic well-being, and health, with
the latter two advantages applying to the children’s families
as well;
(9) participation in quality early learning programs, including those designed to promote effective parenting, can decrease
the future incidence of teenage pregnancy, welfare dependency,
at-risk behaviors, and juvenile delinquency for children;
(10) several cost-benefit analysis studies indicate that for
each $1 invested in quality early learning programs, the Federal
Government can save over $5 by reducing the number of children and families who participate in Federal Government programs like special education and welfare;
(11) for children placed in the care of others during the
workday, the low salaries paid to the child care staff, the
lack of career progression for the staff, and the lack of child
development specialists involved in early learning and child
care programs, make it difficult to attract and retain the quality
of staff necessary for a positive early learning experience;
(12) Federal Government support for early learning has
primarily focused on out-of-home care programs like those
established under the Head Start Act, the Child Care and
Development Block Grant of 1990, and part C of the Individuals
with Disabilities Education Act, and these programs—
(A) serve far fewer than half of all eligible children;
(B) are not primarily designed to provide support for
parents who care for their young children in the home;
and
(C) lack a means of coordinating early learning
opportunities in each community; and
(13) by helping communities increase, expand, and better
coordinate early learning opportunities for children and their
families, the productivity and creativity of future generations
will be improved, and the Nation will be prepared for continued
leadership in the 21st century.
SEC. 802. PURPOSES.
The purposes of this title are—
(1) to increase the availability of voluntary programs, services, and activities that support early childhood development,
increase parent effectiveness, and promote the learning readiness of young children so that young children enter school
ready to learn;
(2) to support parents, child care providers, and caregivers
who want to incorporate early learning activities into the daily
lives of young children;
(3) to remove barriers to the provision of an accessible
system of early childhood learning programs in communities
throughout the United States;
(4) to increase the availability and affordability of professional development activities and compensation for caregivers
and child care providers; and
(5) to facilitate the development of community-based systems of collaborative service delivery models characterized by
resource sharing, linkages between appropriate supports, and
local planning for services.
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–81
SEC. 803. DEFINITIONS.
In this title:
(1) CAREGIVER.—The term ‘‘caregiver’’ means an individual,
including a relative, neighbor, or family friend, who regularly
or frequently provides care, with or without compensation, for
a child for whom the individual is not the parent.
(2) CHILD CARE PROVIDER.—The term ‘‘child care provider’’
means a provider of non-residential child care services (including center-based, family-based, and in-home child care services)
for compensation who or that is legally operating under State
law, and complies with applicable State and local requirements
for the provision of child care services.
(3) EARLY LEARNING.—The term ‘‘early learning ’’, used with
respect to a program or activity, means learning designed to
facilitate the development of cognitive, language, motor, and
social-emotional skills for, and to promote learning readiness
in, young children.
(4) EARLY LEARNING PROGRAM.—The term ‘‘early learning
program’’ means—
(A) a program of services or activities that helps parents, caregivers, and child care providers incorporate early
learning into the daily lives of young children; or
(B) a program that directly provides early learning
to young children.
(5) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has the meaning
given the term in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b).
(6) LOCAL COUNCIL.—The term ‘‘Local Council’’ means a
Local Council established or designated under section 814(a)
that serves one or more localities.
(7) LOCALITY.—The term ‘‘locality’’ means a city, county,
borough, township, or area served by another general purpose
unit of local government, an Indian tribe, a Regional Corporation, or a Native Hawaiian entity.
(8) PARENT.—The term ‘‘parent’’ means a biological parent,
an adoptive parent, a stepparent, a foster parent, or a legal
guardian of, or a person standing in loco parentis to, a child.
(9) POVERTY LINE.—The term ‘‘poverty line’’ means the
poverty line (as defined by the Office of Management and
Budget, and revised annually in accordance with section 673(2)
of the Community Services Block Grant Act (42 U.S.C. 9902(2)))
applicable to a family of the size involved.
(10) REGIONAL CORPORATION.—The term ‘‘Regional Corporation’’ means an entity listed in section 419(4)(B) of the
Social Security Act (42 U.S.C. 619(4)(B)).
(11) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Health and Human Services.
(12) STATE.—The term ‘‘State’’ means each of the several
States of the United States, the District of Columbia, and
the Commonwealth of Puerto Rico.
(13) TRAINING.—The term ‘‘training ’’ means instruction in
early learning that—
(A) is required for certification under State and local
laws, regulations, and policies;
(B) is required to receive a nationally or State recognized credential or its equivalent;
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114 STAT. 2763A–82
PUBLIC LAW 106–554—APPENDIX A
(C) is received in a postsecondary education program
focused on early learning or early childhood development
in which the individual is enrolled; or
(D) is provided, certified, or sponsored by an organization that is recognized for its expertise in promoting early
learning or early childhood development.
(14) YOUNG CHILD.—The term ‘‘young child’’ means any
child from birth to the age of mandatory school attendance
in the State where the child resides.
SEC. 804. PROHIBITIONS.
(a) PARTICIPATION NOT REQUIRED.—No person, including a parent, shall be required to participate in any program of early childhood education, early learning, parent education, or developmental
screening pursuant to the provisions of this title.
(b) RIGHTS OF PARENTS.—Nothing in this title shall be construed to affect the rights of parents otherwise established in Federal, State, or local law.
(c) PARTICULAR METHODS OR SETTINGS.—No entity that receives
funds under this title shall be required to provide services under
this title through a particular instructional method or in a particular instructional setting to comply with this title.
(d) NONDUPLICATION.—No funds provided under this title shall
be used to carry out an activity funded under another provision
of law providing for Federal child care or early learning programs,
unless an expansion of such activity is identified in the local needs
assessment and performance goals under this title.
SEC. 805. AUTHORIZATION AND APPROPRIATION OF FUNDS.
There are authorized to be appropriated to the Department
of Health and Human Services to carry out this title—
(1) $750,000,000 for fiscal year 2001;
(2) $1,000,000,000 for fiscal year 2002;
(3) $1,500,000,000 for fiscal year 2003; and
(4) such sums as may be necessary for each of the fiscal
years 2004 and 2005.
SEC. 806. COORDINATION OF FEDERAL PROGRAMS.
(a) COORDINATION.—The Secretary and the Secretary of Education shall develop mechanisms to resolve administrative and programmatic conflicts between Federal programs that would be a
barrier to parents, caregivers, service providers, or children related
to the coordination of services and funding for early learning programs.
(b) USE OF EQUIPMENT AND SUPPLIES.—In the case of a collaborative activity funded under this title and another provision of
law providing for Federal child care or early learning programs,
the use of equipment and nonconsumable supplies purchased with
funds made available under this title or such provision shall not
be restricted to children enrolled or otherwise participating in the
program carried out under this title or such provision, during a
period in which the activity is predominately funded under this
title or such provision.
SEC. 807. PROGRAM AUTHORIZED.
(a) GRANTS.—From amounts appropriated under section 805
the Secretary shall award grants to States to enable the States
to award grants to Local Councils to pay the Federal share of
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–83
the cost of carrying out early learning programs in the locality
served by the Local Council.
(b) FEDERAL SHARE.—
(1) IN GENERAL.—The Federal share of the cost described
in subsections (a) and (e) shall be 85 percent for the first
and second years of the grant, 80 percent for the third and
fourth years of the grant, and 75 percent for the fifth and
subsequent years of the grant.
(2) NON-FEDERAL SHARE.—The non-Federal share of the
cost described in subsections (a) and (e) may be contributed
in cash or in kind, fairly evaluated, including facilities, equipment, or services, which may be provided from State or local
public sources, or through donations from private entities. For
the purposes of this paragraph the term ‘‘facilities’’ includes
the use of facilities, but the term ‘‘equipment’’ means donated
equipment and not the use of equipment.
(c) MAINTENANCE OF EFFORT.—The Secretary shall not award
a grant under this title to any State unless the Secretary first
determines that the total expenditures by the State and its political
subdivisions to support early learning programs (other than funds
used to pay the non-Federal share under subsection (b)(2)) for
the fiscal year for which the determination is made is equal to
or greater than such expenditures for the preceding fiscal year.
(d) SUPPLEMENT NOT SUPPLANT.—Amounts received under this
title shall be used to supplement and not supplant other Federal,
State, and local public funds expended to promote early learning.
(e) SPECIAL RULE.—If funds appropriated to carry out this
title are less than $150,000,000 for any fiscal year, the Secretary
shall award grants for the fiscal year directly to Local Councils,
on a competitive basis, to pay the Federal share of the cost of
carrying out early learning programs in the locality served by
the Local Council. In carrying out the preceding sentence—
(1) subsection (c), subsections (b) and (c) of section 810,
and paragraphs (1), (2), and (3) of section 811(a) shall not
apply;
(2) State responsibilities described in section 811(d) shall
be carried out by the Local Council with regard to the locality;
(3) the Secretary shall provide such technical assistance
and monitoring as necessary to ensure that the use of the
funds by Local Councils and the distribution of the funds to
Local Councils are consistent with this title; and
(4) subject to paragraph (1), the Secretary shall assume
the responsibilities of the Lead State Agency under this title,
as appropriate.
SEC. 808. USES OF FUNDS.
(a) IN GENERAL.—Subject to section 810, grant funds under
this title shall be used to pay for developing, operating, or enhancing
voluntary early learning programs that are likely to produce sustained gains in early learning.
(b) LIMITED USES.—Subject to section 810, Lead State Agencies
and Local Councils shall ensure that funds made available under
this title to the agencies and Local Councils are used for three
or more of the following activities:
(1) Helping parents, caregivers, child care providers, and
educators increase their capacity to facilitate the development
of cognitive, language comprehension, expressive language,
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114 STAT. 2763A–84
PUBLIC LAW 106–554—APPENDIX A
social-emotional, and motor skills, and promote learning readiness.
(2) Promoting effective parenting.
(3) Enhancing early childhood literacy.
(4) Developing linkages among early learning programs
within a community and between early learning programs and
health care services for young children.
(5) Increasing access to early learning opportunities for
young children with special needs, including developmental
delays, by facilitating coordination with other programs serving
such young children.
(6) Increasing access to existing early learning programs
by expanding the days or times that the young children are
served, by expanding the number of young children served,
or by improving the affordability of the programs for lowincome families.
(7) Improving the quality of early learning programs
through professional development and training activities,
increased compensation, and recruitment and retention incentives, for early learning providers.
(8) Removing ancillary barriers to early learning, including
transportation difficulties and absence of programs during nontraditional work times.
(c) REQUIREMENTS.—Each Lead State Agency designated under
section 810(c) and Local Councils receiving a grant under this
title shall ensure—
(1) that Local Councils described in section 814 work with
local educational agencies to identify cognitive, social, emotional, and motor developmental abilities which are necessary
to support children’s readiness for school;
(2) that the programs, services, and activities assisted
under this title will represent developmentally appropriate
steps toward the acquisition of those abilities; and
(3) that the programs, services, and activities assisted
under this title collectively provide benefits for children cared
for in their own homes as well as children placed in the care
of others.
(d) SLIDING SCALE PAYMENTS.—States and Local Councils
receiving assistance under this title shall ensure that programs,
services, and activities assisted under this title which customarily
require a payment for such programs, services, or activities, adjust
the cost of such programs, services, and activities provided to the
individual or the individual’s child based on the individual’s ability
to pay.
SEC. 809. RESERVATIONS AND ALLOTMENTS.
(a) RESERVATION FOR INDIAN TRIBES, ALASKA NATIVES, AND
NATIVE HAWAIIANS.—The Secretary shall reserve 1 percent of the
total amount appropriated under section 805 for each fiscal year,
to be allotted to Indian tribes, Regional Corporations, and Native
Hawaiian entities, of which—
(1) 0.5 percent shall be available to Indian tribes; and
(2) 0.5 percent shall be available to Regional Corporations
and Native Hawaiian entities.
(b) ALLOTMENTS.—From the funds appropriated under this title
for each fiscal year that are not reserved under subsection (a),
the Secretary shall allot to each State the sum of—
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–85
(1) an amount that bears the same ratio to 50 percent
of such funds as the number of children 4 years of age and
younger in the State bears to the number of such children
in all States; and
(2) an amount that bears the same ratio to 50 percent
of such funds as the number of children 4 years of age and
younger living in families with incomes below the poverty line
in the State bears to the number of such children in all States.
(c) MINIMUM ALLOTMENT.—No State shall receive an allotment
under subsection (b) for a fiscal year in an amount that is less
than .40 percent of the total amount appropriated for the fiscal
year under this title.
(d) AVAILABILITY OF FUNDS.—Any portion of the allotment to
a State that is not expended for activities under this title in the
fiscal year for which the allotment is made shall remain available
to the State for two additional years, after which any unexpended
funds shall be returned to the Secretary. The Secretary shall use
the returned funds to carry out a discretionary grant program
for research-based early learning demonstration projects.
(e) DATA.—The Secretary shall make allotments under this
title on the basis of the most recent data available to the Secretary.
SEC. 810. GRANT ADMINISTRATION.
(a) FEDERAL ADMINISTRATIVE COSTS.—The Secretary may use
not more than 3 percent of the amount appropriated under section
805 for a fiscal year to pay for the administrative costs of carrying
out this title, including the monitoring and evaluation of State
and local efforts.
(b) STATE ADMINISTRATIVE COSTS.—A State that receives a
grant under this title may use—
(1) not more than 2 percent of the funds made available
through the grant to carry out activities designed to coordinate
early learning programs on the State level, including programs
funded or operated by the State educational agency, health,
children and family, and human service agencies, and any
State-level collaboration or coordination council involving early
learning and education, such as the entities funded under section 640(a)(5) of the Head Start Act (42 U.S.C. 9835(a)(5));
(2) not more than 2 percent of the funds made available
through the grant for the administrative costs of carrying out
the grant program and the costs of reporting State and local
efforts to the Secretary; and
(3) not more than 3 percent of the funds made available
through the grant for training, technical assistance, and wage
incentives provided by the State to Local Councils.
(c) LEAD STATE AGENCY.—
(1) IN GENERAL.—To be eligible to receive an allotment
under this title, the Governor of a State shall appoint, after
consultation with the leadership of the State legislature, a
Lead State Agency to carry out the functions described in
paragraph (2).
(2) LEAD STATE AGENCY.—
(A) ALLOCATION OF FUNDS.—The Lead State Agency
described in paragraph (1) shall allocate funds to Local
Councils as described in section 812.
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114 STAT. 2763A–86
PUBLIC LAW 106–554—APPENDIX A
(B) FUNCTIONS OF AGENCY.—In addition to allocating
funds pursuant to subparagraph (A), the Lead State Agency
shall—
(i) advise and assist Local Councils in the performance of their duties under this title;
(ii) develop and submit the State application;
(iii) evaluate and approve applications submitted
by Local Councils under section 813;
(iv) ensure collaboration with respect to assistance
provided under this title between the State agency
responsible for education and the State agency responsible for children and family services;
(v) prepare and submit to the Secretary, an annual
report on the activities carried out in the State under
this title, which shall include a statement describing
how all funds received under this title are expended
and documentation of the effects that resources under
this title have had on—
(I) parental capacity to improve learning readiness in their young children;
(II) early childhood literacy;
(III) linkages among early learning programs;
(IV) linkages between early learning programs
and health care services for young children;
(V) access to early learning activities for young
children with special needs;
(VI) access to existing early learning programs
through expansion of the days or times that children are served;
(VII) access to existing early learning programs through expansion of the number of young
children served;
(VIII) access to and affordability of existing
early learning programs for low-income families;
(IX) the quality of early learning programs
resulting from professional development, and
recruitment and retention incentives for caregivers; and
(X) removal of ancillary barriers to early learning, including transportation difficulties and
absence of programs during nontraditional work
times; and
(vi) ensure that training and research is made
available to Local Councils and that such training and
research reflects the latest available brain development
and early childhood development research related to
early learning.
SEC. 811. STATE REQUIREMENTS.
(a) ELIGIBILITY.—To be eligible for a grant under this title,
a State shall—
(1) ensure that funds received by the State under this
title shall be subject to appropriation by the State legislature,
consistent with the terms and conditions required under State
law;
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–87
(2) designate a Lead State Agency under section 810(c)
to administer and monitor the grant and ensure State-level
coordination of early learning programs;
(3) submit to the Secretary an application at such time,
in such manner, and accompanied by such information as the
Secretary may require;
(4) ensure that funds made available under this title are
distributed on a competitive basis throughout the State to
Local Councils serving rural, urban, and suburban areas of
the State; and
(5) assist the Secretary in developing mechanisms to ensure
that Local Councils receiving funds under this title comply
with the requirements of this title.
(b) STATE PREFERENCE.—In awarding grants to Local Councils
under this title, the State, to the maximum extent possible, shall
ensure that a broad variety of early learning programs that provide
a continuity of services across the age spectrum assisted under
this title are funded under this title, and shall give preference
to supporting—
(1) a Local Council that meets criteria, that are specified
by the State and approved by the Secretary, for qualifying
as serving an area of greatest need for early learning programs;
and
(2) a Local Council that demonstrates, in the application
submitted under section 813, the Local Council’s potential to
increase collaboration as a means of maximizing use of
resources provided under this title with other resources available for early learning programs.
(c) LOCAL PREFERENCE.—In awarding grants under this title,
Local Councils shall give preference to supporting—
(1) projects that demonstrate their potential to collaborate
as a means of maximizing use of resources provided under
this title with other resources available for early learning programs;
(2) programs that provide a continuity of services for young
children across the age spectrum, individually, or through
community-based networks or cooperative agreements; and
(3) programs that help parents and other caregivers promote early learning with their young children.
(d) PERFORMANCE GOALS.—
(1) ASSESSMENTS.—Based on information and data received
from Local Councils, and information and data available
through State resources, the State shall biennially assess the
needs and available resources related to the provision of early
learning programs within the State.
(2) PERFORMANCE GOALS.—Based on the analysis of
information described in paragraph (1), the State shall establish
measurable performance goals to be achieved through activities
assisted under this title.
(3) REQUIREMENT.—The State shall award grants to Local
Councils only for purposes that are consistent with the performance goals established under paragraph (2).
(4) REPORT.—The State shall report to the Secretary
annually regarding the State’s progress toward achieving the
performance goals established in paragraph (2) and any necessary modifications to those goals, including the rationale
for the modifications.
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(5) IMPROVEMENT PLANS.—If the Secretary determines,
based on the State report submitted under paragraph (4), that
the State is not making progress toward achieving the performance goals described in paragraph (2), then the State shall
submit a performance improvement plan to the Secretary, and
demonstrate reasonable progress in implementing such plan,
in order to remain eligible for funding under this title.
SEC. 812. LOCAL ALLOCATIONS.
(a) IN GENERAL.—The Lead State Agency shall allocate to Local
Councils in the State not less than 93 percent of the funds provided
to the State under this title for a fiscal year.
(b) LIMITATION.—The Lead State Agency shall allocate funds
provided under this title on the basis of the population of the
locality served by the Local Council.
SEC. 813. LOCAL APPLICATIONS.
(a) IN GENERAL.—To be eligible to receive assistance under
this title, the Local Council shall submit an application to the
Lead State Agency at such time, in such manner, and containing
such information as the Lead State Agency may require.
(b) CONTENTS.—Each application submitted pursuant to subsection (a) shall include a statement ensuring that the local government entity, Indian tribe, Regional Corporation, or Native Hawaiian
entity has established or designated a Local Council under section
814, and the Local Council has developed a local plan for carrying
out early learning programs under this title that includes—
(1) a needs and resources assessment concerning early
learning services and a statement describing how early learning
programs will be funded consistent with the assessment;
(2) a statement of how the Local Council will ensure that
early learning programs will meet the performance goals
reported by the Lead State Agency under this title; and
(3) a description of how the Local Council will form
collaboratives among local youth, social service, and educational
providers to maximize resources and concentrate efforts on
areas of greatest need.
SEC. 814. LOCAL ADMINISTRATION.
(a) LOCAL COUNCIL.—
(1) IN GENERAL.—To be eligible to receive funds under
this title, a local government entity, Indian tribe, Regional
Corporation, or Native Hawaiian entity, as appropriate, shall
establish or designate a Local Council, which shall be composed
of—
(A) representatives of local agencies directly affected
by early learning programs assisted under this title;
(B) parents;
(C) other individuals concerned with early learning
issues in the locality, such as representative entities providing elementary education, child care resource and referral
services, early learning opportunities, child care, and health
services; and
(D) other key community leaders.
(2) DESIGNATING EXISTING ENTITY.—If a local government
entity, Indian tribe, Regional Corporation, or Native Hawaiian
entity has, before the date of enactment of the Early Learning
Opportunities Act, a Local Council or a regional entity that
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–89
is comparable to the Local Council described in paragraph
(1), the entity, tribe, or corporation may designate the council
or entity as a Local Council under this title, and shall be
considered to have established a Local Council in compliance
with this subsection.
(3) FUNCTIONS.—The Local Council shall be responsible
for preparing and submitting the application described in section 813.
(b) ADMINISTRATION.—
(1) ADMINISTRATIVE COSTS.—Not more than 3 percent of
the funds received by a Local Council under this title shall
be used to pay for the administrative costs of the Local Council
in carrying out this title.
(2) FISCAL AGENT.—A Local Council may designate any
entity, with a demonstrated capacity for administering grants,
that is affected by, or concerned with, early learning issues,
including the State, to serve as fiscal agent for the administration of grant funds received by the Local Council under this
title.
TITLE IX—RURAL EDUCATION ACHIEVEMENT PROGRAM
SEC. 901. RURAL EDUCATION INITIATIVE.
Subpart 2 of part J of title X of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8291 et seq.) is amended to
read as follows:
‘‘Subpart 2—Rural Education Initiative
‘‘SEC. 10971. SHORT TITLE.
‘‘This subpart may be cited as the ‘Rural Education Achievement Program’.
‘‘SEC. 10972. PURPOSE.
‘‘It is the purpose of this subpart to address the unique needs
of rural school districts that frequently—
‘‘(1) lack the personnel and resources needed to compete
for Federal competitive grants; and
‘‘(2) receive formula allocations in amounts too small to
be effective in meeting their intended purposes.
‘‘SEC. 10973. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out this
subpart $62,500,000 for fiscal year 2001.
‘‘SEC. 10974. FORMULA GRANT PROGRAM AUTHORIZED.
‘‘(a) ALTERNATIVE USES.—
‘‘(1) IN GENERAL.—Notwithstanding any other provision of
law, an eligible local educational agency may use the applicable
funding, that the agency is eligible to receive from the State
educational agency for a fiscal year, to carry out local activities
authorized in part A of title I, section 2210(b), section 3134,
or section 4116.
‘‘(2) NOTIFICATION.—An eligible local educational agency
shall notify the State educational agency of the local educational
agency’s intention to use the applicable funding in accordance
with paragraph (1) not later than a date that is established
by the State educational agency for the notification.
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114 STAT. 2763A–90
PUBLIC LAW 106–554—APPENDIX A
‘‘(b) ELIGIBILITY.—A local educational agency shall be eligible
to use the applicable funding in accordance with subsection (a)
if—
‘‘(1) the total number of students in average daily attendance at all of the schools served by the local educational agency
is less than 600; and
‘‘(2) all of the schools served by the local educational agency
are designated with a School Locale Code of 7 or 8, as determined by the Secretary of Education.
‘‘(c) APPLICABLE FUNDING.—In this section, the term ‘applicable
funding’ means funds provided under each of titles II, IV, and
VI, except for funds made available under section 321 of the Department of Education Appropriations Act, 2001.
‘‘(d) DISBURSAL.—Each State educational agency that receives
applicable funding for a fiscal year shall disburse the applicable
funding to local educational agencies for alternative uses under
this section for the fiscal year at the same time that the State
educational agency disburses the applicable funding to local educational agencies that do not intend to use the applicable funding
for such alternative uses for the fiscal year.
‘‘(e) SUPPLEMENT NOT SUPPLANT.—Funds made available under
this section shall be used to supplement and not supplant any
other State or local education funds.
‘‘(f ) SPECIAL RULE.—References in Federal law to funds for
the provisions of law set forth in subsection (c) may be considered
to be references to funds for this section.
‘‘(g) CONSTRUCTION.—Nothing in this subpart shall be construed
to prohibit a local educational agency that enters into cooperative
arrangements with other local educational agencies for the provision
of special, compensatory, or other education services pursuant to
State law or a written agreement from entering into similar
arrangements for the use or the coordination of the use of the
funds made available under this subpart.
‘‘SEC. 10975. COMPETITIVE GRANT PROGRAM AUTHORIZED.
‘‘(a) IN GENERAL.—The Secretary is authorized to award grants
to eligible local educational agencies to enable the local educational
agencies to carry out local activities authorized in part A of title
I, section 2210(b), section 3134, or section 4116.
‘‘(b) ELIGIBILITY.—A local educational agency shall be eligible
to receive a grant under this section if—
‘‘(1) the total number of students in average daily attendance at all of the schools served by the local educational agency
is less than 600; and
‘‘(2) all of the schools served by the local educational agency
are designated with a School Locale Code of 7 or 8, as determined by the Secretary of Education.
‘‘(c) AMOUNT.—
‘‘(1) IN GENERAL.—The Secretary shall award a grant to
a local educational agency under this section for a fiscal year
in an amount equal to the amount determined under paragraph
(2) for the fiscal year minus the total amount received under
the provisions of law described under section 10974(c) for the
fiscal year.
‘‘(2) DETERMINATION.—The amount referred to in paragraph
(1) is equal to $100 multiplied by the total number of students
in excess of 50 students that are in average daily attendance
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PUBLIC LAW 106–554—APPENDIX A
114 STAT. 2763A–91
at the schools served by the local educational agency, plus
$20,000, except that the amount may not exceed $60,000.
‘‘(3) CENSUS DETERMINATION.—
‘‘(A) IN GENERAL.—Each local educational agency desiring a grant under this section shall determine for each
year the number of kindergarten through grade 12 students
in average daily attendance at the schools served by the
local educational agency during the period beginning or
the first day of classes and ending on December 1.
‘‘(B) SUBMISSION.—Each local educational agency shall
submit the number described in subparagraph (A) to the
Secretary not later than March 1 of each year.
‘‘(4) PENALTY.—If the Secretary determines that a local
educational agency has knowingly submitted false information
under paragraph (3) for the purpose of gaining additional funds
under this section, then the local educational agency shall
be fined an amount equal to twice the difference between the
amount the local educational agency received under this section,
and the correct amount the local educational agency would
have received under this section if the agency had submitted
accurate information under paragraph (3).
‘‘(d) DISBURSAL.—The Secretary shall disburse the funds
awarded to a local educational agency under this section for a
fiscal year not later than July 1 of that year.
‘‘(e) SUPPLEMENT NOT SUPPLANT.—Funds made available under
this section shall be used to supplement and not supplant any
other State or local education funds.
‘‘SEC. 10976. ACCOUNTABILITY.
‘‘(a) ACADEMIC ACHIEVEMENT.—
‘‘(1) IN GENERAL.—Each local educational agency that uses
or receives funds under section 10974 or 10975 for a fiscal
year shall—
‘‘(A) administer an assessment that is used statewide
and is consistent with the assessment described in section
1111(b), to assess the academic achievement of students
in the schools served by the local educational agency; or
‘‘(B) in the case of a local educational agency for which
there is no statewide assessment described in subparagraph
(A), administer a test, that is selected by the local educational agency, to assess the academic achievement of
students in the schools served by the local educational
agency.
‘‘(2) SPECIAL RULE.—Each local educational agency that
uses or receives funds under section 10974 or 10975 shall
use the same assessment or test described in paragraph (1)
for each year of participation in the program carried out under
such section.
‘‘(b) STATE EDUCATIONAL AGENCY DETERMINATION REGARDING
CONTINUING PARTICIPATION.—Each State educational agency that
receives funding under the provisions of law described in section
10974(c) shall—
‘‘(1) after the third year that a local educational agency
in the State participates in a program authorized under section
10974 or 10975 and on the basis of the results of the assessments or tests described in subsection (a), determine whether
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114 STAT. 2763A–92
PUBLIC LAW 106–554—APPENDIX A
the students served by the local educational agency participating in the program performed better on the assessments or
tests after the third year of the participation than the students
performed on the assessments or tests after the first year
of the participation;
‘‘(2) permit only the local educational agencies that participated in the program and served students that performed better
on the assessments or tests, as described in paragraph (1),
to continue to participate in the program for an additional
period of 3 years; and
‘‘(3) prohibit the local educational agencies that participated
in the program and served students that did not perform better
on the assessments or tests, as described in paragraph (1),
from participating in the program, for a period of 3 years
from the date of the determination.
‘‘SEC. 10977. RATABLE REDUCTIONS IN CASE OF INSUFFICIENT APPROPRIATIONS.
‘‘(a) IN GENERAL.—If the amount appropriated for any fiscal
year and made available for grants under this subpart is insufficient
to pay the full amount for which all agencies are eligible under
this subpart, the Secretary shall ratably reduce each such amount.
‘‘(b) ADDITIONAL AMOUNTS.—If additional funds become available for making payments under paragraph (1) for such fiscal
year, payments that were reduced under subsection (a) shall be
increased on the same basis as such payments were reduced.
‘‘SEC. 10978. APPLICABILITY.
‘‘Sections 10951 and 10952 shall not apply to this subpart.’’.
This Act may be cited as the ‘‘Departments of Labor, Health
and Human Services, and Education, and Related Agencies Appropriations Act, 2001’’.
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PUBLIC LAW 106–554—APPENDIX B
114 STAT. 2763A–93
APPENDIX B—H.R. 5657
That the following sums are appropriated, out of any money in
the Treasury not otherwise appropriated, for the Legislative Branch
for the fiscal year ending September 30, 2001, and for other purposes, namely:
TITLE I—CONGRESSIONAL OPERATIONS
SENATE
PAYMENT TO WIDOWS AND HEIRS OF DECEASED MEMBERS OF
CONGRESS
For a payment to Nancy Nally Coverdell, widow of Paul D.
Coverdell, late a Senator from Georgia, $141,300.
EXPENSE ALLOWANCES
For expense allowances of the Vice President, $10,000; the
President Pro Tempore of the Senate, $10,000; Majority Leader
of the Senate, $10,000; Minority Leader of the Senate, $10,000;
Majority Whip of the Senate, $5,000; Minority Whip of the Senate,
$5,000; and Chairmen of the Majority and Minority Conference
Committees, $3,000 for each Chairman; and Chairmen of the Majority and Minority Policy Committees, $3,000 for each Chairman;
in all, $62,000.
REPRESENTATION ALLOWANCES FOR THE MAJORITY AND MINORITY
LEADERS
For representation allowances of the Majority and Minority
Leaders of the Senate, $15,000 for each such Leader; in all, $30,000.
SALARIES, OFFICERS
AND
EMPLOYEES
For compensation of officers, employees, and others as authorized by law, including agency contributions, $92,321,000, which
shall be paid from this appropriation without regard to the below
limitations, as follows:
OFFICE OF THE VICE PRESIDENT
For the Office of the Vice President, $1,785,000.
OFFICE OF THE PRESIDENT PRO TEMPORE
For the Office of the President Pro Tempore, $453,000.
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114 STAT. 2763A–94
PUBLIC LAW 106–554—APPENDIX B
OFFICES OF THE MAJORITY AND MINORITY LEADERS
For Offices of the Majority and Minority Leaders, $2,742,000.
OFFICES OF THE MAJORITY AND MINORITY WHIPS
For Offices of the Majority and Minority Whips, $1,722,000.
COMMITTEE ON APPROPRIATIONS
For salaries of the Committee on Appropriations, $6,917,000.
CONFERENCE COMMITTEES
For the Conference of the Majority and the Conference of the
Minority, at rates of compensation to be fixed by the Chairman
of each such committee, $1,152,000 for each such committee; in
all, $2,304,000.
OFFICES OF THE SECRETARIES OF THE CONFERENCE OF THE MAJORITY
AND THE CONFERENCE OF THE MINORITY
For Offices of the Secretaries of the Conference of the Majority
and the Conference of the Minority, $590,000.
POLICY COMMITTEES
For salaries of the Majority Policy Committee and the Minority
Policy Committee, $1,171,000 for each such committee; in all,
$2,342,000.
OFFICE OF THE CHAPLAIN
For Office of the Chaplain, $288,000.
OFFICE OF THE SECRETARY
For Office of the Secretary, $14,738,000.
OFFICE OF THE SERGEANT AT ARMS AND DOORKEEPER
For Office
$34,811,000.
of
the
Sergeant
at
Arms
and
Doorkeeper,
OFFICES OF THE SECRETARIES FOR THE MAJORITY AND MINORITY
For Offices of the Secretary for the Majority and the Secretary
for the Minority, $1,292,000.
AGENCY CONTRIBUTIONS AND RELATED EXPENSES
For agency contributions for employee benefits, as authorized
by law, and related expenses, $22,337,000.
OFFICE
OF THE
LEGISLATIVE COUNSEL
OF THE
SENATE
For salaries and expenses of the Office of the Legislative Counsel of the Senate, $4,046,000.
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PUBLIC LAW 106–554—APPENDIX B
OFFICE
OF
114 STAT. 2763A–95
SENATE LEGAL COUNSEL
For salaries and expenses of the Office of Senate Legal Counsel,
$1,069,000.
EXPENSE ALLOWANCES OF THE SECRETARY OF THE SENATE, SERGEANT AT ARMS AND DOORKEEPER OF THE SENATE, AND SECRETARIES FOR THE MAJORITY AND MINORITY OF THE SENATE
For expense allowances of the Secretary of the Senate, $3,000;
Sergeant at Arms and Doorkeeper of the Senate, $3,000; Secretary
for the Majority of the Senate, $3,000; Secretary for the Minority
of the Senate, $3,000; in all, $12,000.
CONTINGENT EXPENSES
OF THE
SENATE
INQUIRIES AND INVESTIGATIONS
For expenses of inquiries and investigations ordered by the
Senate, or conducted pursuant to section 134(a) of Public Law
601, Seventy-ninth Congress, as amended, section 112 of Public
Law 96–304 and Senate Resolution 281, agreed to March 11, 1980,
$73,000,000.
EXPENSES OF THE UNITED STATES SENATE CAUCUS ON
INTERNATIONAL NARCOTICS CONTROL
For expenses of the United States Senate Caucus on International Narcotics Control, $370,000.
SECRETARY OF THE SENATE
For expenses of the Office of the Secretary of the Senate,
$2,077,000.
SERGEANT AT ARMS AND DOORKEEPER OF THE SENATE
For expenses of the Office of the Sergeant at Arms and Doorkeeper of the Senate, $71,511,000, of which $2,500,000 shall remain
available until September 30, 2003.
MISCELLANEOUS ITEMS
For miscellaneous items, $8,655,000.
SENATORS’ OFFICIAL PERSONNEL AND OFFICE EXPENSE ACCOUNT
For Senators’ Official Personnel and Office Expense Account,
$253,203,000.
OFFICIAL MAIL COSTS
For expenses necessary for official mail costs of the Senate
$300,000.
ADMINISTRATIVE PROVISIONS
SECTION 1. SEMIANNUAL REPORT. (a) IN GENERAL.—Section
105(a) of the Legislative Branch Appropriations Act, 1965 (2 U.S.C.
104a) is amended by adding at the end the following:
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114 STAT. 2763A–96
PUBLIC LAW 106–554—APPENDIX B
‘‘(5)(A) Notwithstanding the requirements of paragraph (1)
relating to the level of detail of statement and itemization, each
report by the Secretary of the Senate required under such paragraph shall be compiled at a summary level for each office of
the Senate authorized to obligate appropriated funds.
‘‘(B) Subparagraph (A) shall not apply to the reporting of
expenditures relating to personnel compensation, travel and
transportation of persons, other contractual services, and acquisition
of assets.
‘‘(C) In carrying out this paragraph the Secretary of the Senate
shall apply the Standard Federal Object Classification of Expenses
as the Secretary determines appropriate.’’.
(b) EFFECTIVE DATE AND APPLICATION.—
(1) IN GENERAL.—Subject to paragraph (2), the amendment
made by this section shall take effect on the date of enactment
of this Act.
(2) FIRST REPORT AFTER ENACTMENT.—The Secretary of the
Senate may elect to compile and submit the report for the
semiannual period during which the date of enactment of this
section occurs, as if the amendment made by this section had
not been enacted.
SEC. 2. SENATE EMPLOYEE PAY ADJUSTMENTS. Section 4 of
the Federal Pay Comparability Act of 1970 (2 U.S.C. 60a–1) is
amended—
(1) in subsection (a)—
(A) by inserting ‘‘(or section 5304 or 5304a of such
title, as applied to employees employed in the pay locality
of the Washington, D.C.-Baltimore, Maryland consolidated
metropolitan statistical area)’’ after ‘‘employees under section 5303 of title 5, United States Code,’’; and
(B) by inserting ‘‘(and, as the case may be, section
5304 or 5304a of such title, as applied to employees
employed in the pay locality of the Washington, D.C.-Baltimore, Maryland consolidated metropolitan statistical area)’’
after ‘‘the President under such section 5303’’;
(2) by redesignating subsection (e) as subsection (f ); and
(3) by inserting after subsection (d) the following:
‘‘(e) Any percentage used in any statute specifically providing
for an adjustment in rates of pay in lieu of an adjustment made
under section 5303 of title 5, United States Code, and, as the
case may be, section 5304 or 5304a of such title for any calendar
year shall be treated as the percentage used in an adjustment
made under such section 5303, 5304, or 5304a, as applicable, for
purposes of subsection (a).’’.
SEC. 3. (a) Section 6(c) of the Legislative Branch Appropriations
Act, 1999 (2 U.S.C. 121b–1(c)) is amended—
(1) by striking ‘‘and agency contributions’’ in paragraph
(2)(A), and
(2) by adding at the end the following:
‘‘(3) Agency contributions for employees of Senate Hair
Care Services shall be paid from the appropriations account
for ‘SALARIES, OFFICERS AND EMPLOYEES’.’’.
(b) This section shall apply to pay periods beginning on or
after October 1, 2000.
SEC. 4. (a) There is established in the Treasury of the United
States a revolving fund to be known as the Senate Health and
Fitness Facility Revolving Fund (‘‘the revolving fund’’).
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PUBLIC LAW 106–554—APPENDIX B
114 STAT. 2763A–97
(b) The Architect of the Capitol shall deposit in the revolving
fund—
(1) any amounts received as dues or other assessments
for use of the Senate Health and Fitness Facility, and
(2) any amounts received from the operation of the Senate
waste recycling program.
(c) Subject to the approval of the Committee on Appropriations
of the Senate, amounts in the revolving fund shall be available
to the Architect of the Capitol, without fiscal year limitation, for
payment of costs of the Senate Health and Fitness Facility.
(d) The Architect of the Capitol shall withdraw from the revolving fund and deposit in the Treasury of the United States as
miscellaneous receipts all moneys in the revolving fund that the
Architect determines are in excess of the current and reasonably
foreseeable needs of the Senate Health and Fitness Facility.
(e) Subject to the approval of the Committee on Rules and
Administration of the Senate, the Architect of the Capitol may
issue such regulations as may be necessary to carry out the provisions of this section.
SEC. 5. For each fiscal year (commencing with the fiscal year
ending September 30, 2001), there is authorized an expense allowance for the Chairmen of the Majority and Minority Policy Committees which shall not exceed $3,000 each fiscal year for each such
Chairman; and amounts from such allowance shall be paid to either
of such Chairmen only as reimbursement for actual expenses
incurred by him and upon certification and documentation of such
expenses, and amounts so paid shall not be reported as income
and shall not be allowed as a deduction under the Internal Revenue
Code of 1986.
SEC. 6. (a) The head of the employing office of an employee
of the Senate may, upon termination of employment of the employee,
authorize payment of a lump sum for the accrued annual leave
of that employee if—
(1) the head of the employing office—
(A) has approved a written leave policy authorizing
employees to accrue leave and establishing the conditions
upon which accrued leave may be paid; and
(B) submits written certification to the Financial Clerk
of the Senate of the number of days of annual leave accrued
by the employee for which payment is to be made under
the written leave policy of the employing office; and
(2) there are sufficient funds to cover the lump sum payment.
(b)(1) A lump sum payment under this section shall not exceed
the lesser of—
(A) twice the monthly rate of pay of the employee; or
(B) the product of the daily rate of pay of the employee
and the number of days of accrued annual leave of the
employee.
(2) The Secretary of the Senate shall determine the rates of
pay of an employee under paragraph (1)(A) and (B) on the basis
of the annual rate of pay of the employee in effect on the date
of termination of employment.
(c) Any payment under this section shall be paid from the
appropriation account or fund used to pay the employee.
(d) If an individual who received a lump sum payment under
this section is reemployed as an employee of the Senate before
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114 STAT. 2763A–98
PUBLIC LAW 106–554—APPENDIX B
the end of the period covered by the lump sum payment, the
individual shall refund an amount equal to the applicable pay
covering the period between the date of reemployment and the
expiration of the lump sum period. Such amount shall be deposited
to the appropriation account or fund used to pay the lump sum
payment.
(e) The Committee on Rules and Administration of the Senate
may prescribe regulations to carry out this section.
(f ) In this section, the term—
(1) ‘‘employee of the Senate’’ means any employee whose
pay is disbursed by the Secretary of the Senate, except that
the term does not include a member of the Capitol Police
or a civilian employee of the Capitol Police; and
(2) ‘‘head of the employing office’’ means any person with
the final authority to appoint, hire, discharge, and set the
terms, conditions, or privileges of the employment of an individual whose pay is disbursed by the Secretary of the Senate.
SEC. 7. (a) Agency contributions for employees whose salaries
are disbursed by the Secretary of the Senate from the appropriations
account ‘‘JOINT ECONOMIC COMMITTEE’’ under the heading ‘‘JOINT
ITEMS’’ shall be paid from the Senate appropriations account for
‘‘SALARIES, OFFICERS AND EMPLOYEES’’.
(b) This section shall apply to pay periods beginning on or
after October 1, 2000.
SEC. 8. Section 316 of Public Law 101–302 (40 U.S.C. 188b–
6) is amended—
(1) in the first sentence of subsection (a) by striking ‘‘items
of art, fine art, and historical items’’ and inserting ‘‘works
of art, historical objects, documents, or material relating to
historical matters for placement or exhibition’’;
(2) in the second sentence of subsection (a)—
(A) by striking ‘‘such items’’ each place it appears and
inserting ‘‘such works, objects, documents, or material’’ in
each such place; and
(B) by striking ‘‘an item’’ and inserting ‘‘a work, object,
document, or material’’; and
(3) in subsection (b)—
(A) by striking ‘‘such items of art’’ and inserting ‘‘such
works, objects, documents, or materials’’; and
(B) by striking ‘‘shall’’ and inserting ‘‘may’’.
HOUSE OF REPRESENTATIVES
SALARIES
AND
EXPENSES
For salaries and expenses of the House of Representatives,
$769,551,000, as follows:
HOUSE LEADERSHIP OFFICES
For salaries and expenses, as authorized by law, $14,378,000,
including: Office of the Speaker, $1,759,000, including $25,000 for
official expenses of the Speaker; Office of the Majority Floor Leader,
$1,726,000, including $10,000 for official expenses of the Majority
Leader; Office of the Minority Floor Leader, $2,096,000, including
$10,000 for official expenses of the Minority Leader; Office of the
Majority Whip, including the Chief Deputy Majority Whip,
$1,466,000, including $5,000 for official expenses of the Majority
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PUBLIC LAW 106–554—APPENDIX B
114 STAT. 2763A–99
Whip; Office of the Minority Whip, including the Chief Deputy
Minority Whip, $1,096,000, including $5,000 for official expenses
of the Minority Whip; Speaker’s Office for Legislative Floor Activities, $410,000; Republican Steering Committee, $765,000; Republican Conference, $1,255,000; Democratic Steering and Policy
Committee, $1,352,000; Democratic Caucus, $668,000; nine minority
employees, $1,229,000; training and program development—majority, $278,000; and training and program development—minority,
$278,000.
MEMBERS’ REPRESENTATIONAL ALLOWANCES
INCLUDING MEMBERS’ CLERK HIRE, OFFICIAL EXPENSES
MEMBERS, AND OFFICIAL MAIL
OF
For Members’ representational allowances, including Members’
clerk hire, official expenses, and official mail, $410,182,000.
COMMITTEE EMPLOYEES
STANDING COMMITTEES, SPECIAL
AND
SELECT
For salaries and expenses of standing committees, special and
select, authorized by House resolutions, $92,196,000: Provided, That
such amount shall remain available for such salaries and expenses
until December 31, 2002.
COMMITTEE
ON
APPROPRIATIONS
For salaries and expenses of the Committee on Appropriations,
$20,628,000, including studies and examinations of executive agencies and temporary personal services for such committee, to be
expended in accordance with section 202(b) of the Legislative
Reorganization Act of 1946 and to be available for reimbursement
to agencies for services performed: Provided, That such amount
shall remain available for such salaries and expenses until December 31, 2002.
SALARIES, OFFICERS AND EMPLOYEES
For compensation and expenses of officers and employees, as
authorized by law, $90,403,000, including: for salaries and expenses
of the Office of the Clerk, including not more than $3,500, of
which not more than $2,500 is for the Family Room, for official
representation and reception expenses, $14,590,000; for salaries
and expenses of the Office of the Sergeant at Arms, including
the position of Superintendent of Garages, and including not more
than $750 for official representation and reception expenses,
$3,692,000; for salaries and expenses of the Office of the Chief
Administrative Officer, $58,550,000, of which $1,054,000 shall
remain available until expended, including $26,605,000 for salaries,
expenses and temporary personal services of House Information
Resources, of which $26,020,000 is provided herein: Provided, That
of the amount provided for House Information Resources, $6,497,000
shall be for net expenses of telecommunications: Provided further,
That House Information Resources is authorized to receive
reimbursement from Members of the House of Representatives and
other governmental entities for services provided and such
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114 STAT. 2763A–100
PUBLIC LAW 106–554—APPENDIX B
reimbursement shall be deposited in the Treasury for credit to
this account; for salaries and expenses of the Office of the Inspector
General, $3,249,000; for salaries and expenses of the Office of
General Counsel, $806,000; for the Office of the Chaplain, $140,000;
for salaries and expenses of the Office of the Parliamentarian,
including the Parliamentarian and $2,000 for preparing the Digest
of Rules, $1,201,000; for salaries and expenses of the Office of
the Law Revision Counsel of the House, $2,045,000; for salaries
and expenses of the Office of the Legislative Counsel of the House,
$5,085,000; for salaries and expenses of the Corrections Calendar
Office, $832,000; and for other authorized employees, $213,000.
ALLOWANCES AND EXPENSES
For allowances and expenses as authorized by House resolution
or law, $141,764,000, including: supplies, materials, administrative
costs and Federal tort claims, $2,235,000; official mail for committees, leadership offices, and administrative offices of the House,
$410,000; Government contributions for health, retirement, Social
Security, and other applicable employee benefits, $138,726,000; and
miscellaneous items including purchase, exchange, maintenance,
repair, and operation of House motor vehicles, interparliamentary
receptions, and gratuities to heirs of deceased employees of the
House, $393,000.
CHILD CARE CENTER
For salaries and expenses of the House of Representatives
Child Care Center, such amounts as are deposited in the account
established by section 312(d)(1) of the Legislative Branch Appropriations Act, 1992 (40 U.S.C. 184g(d)(1)), subject to the level specified
in the budget of the Center, as submitted to the Committee on
Appropriations of the House of Representatives.
ADMINISTRATIVE PROVISIONS
SEC. 101. During fiscal year 2001 and any succeeding fiscal
year, the Chief Administrative Officer of the House of Representatives may—
(1) enter into contracts for the acquisition of severable
services for a period that begins in 1 fiscal year and ends
in the next fiscal year to the same extent as the head of
an executive agency under the authority of section 303L of
the Federal Property and Administrative Services Act of 1949
(41 U.S.C. 253l); and
(2) enter into multiyear contracts for the acquisitions of
property and nonaudit-related services to the same extent as
executive agencies under the authority of section 304B of the
Federal Property and Administrative Services Act of 1949 (41
U.S.C. 254c).
SEC. 102. (a) PERMITTING NEW HOUSE EMPLOYEES TO BE
PLACED ABOVE MINIMUM STEP OF COMPENSATION LEVEL.—The
House Employees Position Classification Act (2 U.S.C. 291 et seq.)
is amended by striking section 10 (2 U.S.C. 299).
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply with respect to employees appointed on or after October
1, 2000.
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PUBLIC LAW 106–554—APPENDIX B
114 STAT. 2763A–101
SEC. 103. (a) REQUIRING AMOUNTS REMAINING IN MEMBERS’
REPRESENTATIONAL ALLOWANCES TO BE USED FOR DEFICIT REDUCTION OR TO REDUCE THE FEDERAL DEBT.—Notwithstanding any
other provision of law, any amounts appropriated under this Act
for ‘‘HOUSE OF REPRESENTATIVES—SALARIES AND EXPENSES—
MEMBERS’ REPRESENTATIONAL ALLOWANCES’’ shall be available only
for fiscal year 2001. Any amount remaining after all payments
are made under such allowances for fiscal year 2001 shall be
deposited in the Treasury and used for deficit reduction (or, if
there is no Federal budget deficit after all such payments have
been made, for reducing the Federal debt, in such manner as
the Secretary of the Treasury considers appropriate).
(b) REGULATIONS.—The Committee on House Administration
of the House of Representatives shall have authority to prescribe
regulations to carry out this section.
(c) DEFINITION.—As used in this section, the term ‘‘Member
of the House of Representatives’’ means a Representative in, or
a Delegate or Resident Commissioner to, Congress.
SEC. 104. (a) There is hereby appropriated for payment to
the Prince William County Public Schools $215,000, to be used
to pay for educational services for the son of Mrs. Evelyn Gibson,
the widow of Detective John Michael Gibson of the United States
Capitol Police.
(b) The payment under subsection (a) shall be made in accordance with terms and conditions established by the Committee on
House Administration of the House of Representatives.
(c) The funds used for the payment made under subsection
(a) shall be derived from the applicable accounts of the House
of Representatives.
JOINT ITEMS
For Joint Committees, as follows:
JOINT CONGRESSIONAL COMMITTEE ON INAUGURAL CEREMONIES
2001
OF
For all construction expenses, salaries, and other expenses associated with conducting the inaugural ceremonies of the President
and Vice President of the United States, January 20, 2001, in
accordance with such program as may be adopted by the joint
committee authorized by Senate Concurrent Resolution 89, agreed
to March 14, 2000 (One Hundred Sixth Congress), and Senate
Concurrent Resolution 90, agreed to March 14, 2000 (One Hundred
Sixth Congress), $1,000,000 to be disbursed by the Secretary of
the Senate and to remain available until September 30, 2001.
Funds made available under this heading shall be available for
payment, on a direct or reimbursable basis, whether incurred on,
before, or after, October 1, 2000: Provided, That the compensation
of any employee of the Committee on Rules and Administration
of the Senate who has been designated to perform service for
the Joint Congressional Committee on Inaugural Ceremonies shall
continue to be paid by the Committee on Rules and Administration,
but the account from which such staff member is paid may be
reimbursed for the services of the staff member (including agency
contributions when appropriate) out of funds made available under
this heading.
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114 STAT. 2763A–102
PUBLIC LAW 106–554—APPENDIX B
ADMINISTRATIVE PROVISION
SEC. 105. During fiscal year 2001 the Secretary of Defense
shall provide protective services on a nonreimbursable basis to
the United States Capitol Police with respect to the following events:
(1) Upon request of the Chair of the Joint Congressional
Committee on Inaugural Ceremonies established under Senate
Concurrent Resolution 89, One Hundred Sixth Congress, agreed
to March 14, 2000, the proceedings and ceremonies conducted
for the inauguration of the President-elect and Vice Presidentelect of the United States.
(2) Upon request of the Speaker of the House of Representatives and the President Pro Tempore of the Senate, the joint
session of Congress held to receive a message from the President of the United States on the State of the Union.
JOINT ECONOMIC COMMITTEE
For salaries and expenses of the Joint Economic Committee,
$3,315,000, to be disbursed by the Secretary of the Senate.
JOINT COMMITTEE
ON
TAXATION
For salaries and expenses of the Joint Committee on Taxation,
$6,430,000, to be disbursed by the Chief Administrative Officer
of the House.
For other joint items, as follows:
OFFICE
OF THE
ATTENDING PHYSICIAN
For medical supplies, equipment, and contingent expenses of
the emergency rooms, and for the Attending Physician and his
assistants, including: (1) an allowance of $1,500 per month to the
Attending Physician; (2) an allowance of $500 per month each
to three medical officers while on duty in the Office of the Attending
Physician; (3) an allowance of $500 per month to one assistant
and $400 per month each not to exceed 11 assistants on the basis
heretofore provided for such assistants; and (4) $1,159,904 for
reimbursement to the Department of the Navy for expenses incurred
for staff and equipment assigned to the Office of the Attending
Physician, which shall be advanced and credited to the applicable
appropriation or appropriations from which such salaries, allowances, and other expenses are payable and shall be available for
all the purposes thereof, $1,835,000, to be disbursed by the Chief
Administrative Officer of the House.
CAPITOL POLICE BOARD
CAPITOL POLICE
SALARIES
For the Capitol Police Board for salaries of officers, members,
and employees of the Capitol Police, including overtime, hazardous
duty pay differential, clothing allowance of not more than $600
each for members required to wear civilian attire, and Government
contributions for health, retirement, Social Security, and other
applicable employee benefits, $97,142,000, of which $47,053,000
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PUBLIC LAW 106–554—APPENDIX B
114 STAT. 2763A–103
is provided to the Sergeant at Arms of the House of Representatives,
to be disbursed by the Chief Administrative Officer of the House,
and $50,089,000 is provided to the Sergeant at Arms and Doorkeeper of the Senate, to be disbursed by the Secretary of the
Senate: Provided, That, of the amounts appropriated under this
heading, such amounts as may be necessary may be transferred
between the Sergeant at Arms of the House of Representatives
and the Sergeant at Arms and Doorkeeper of the Senate, upon
approval of the Committee on Appropriations of the House of Representatives and the Committee on Appropriations of the Senate.
GENERAL EXPENSES
For the Capitol Police Board for necessary expenses of the
Capitol Police, including motor vehicles, communications and other
equipment, security equipment and installation, uniforms, weapons,
supplies, materials, training, medical services, forensic services,
stenographic services, personal and professional services, the
employee assistance program, not more than $2,000 for the awards
program, postage, telephone service, travel advances, relocation of
instructor and liaison personnel for the Federal Law Enforcement
Training Center, and $85 per month for extra services performed
for the Capitol Police Board by an employee of the Sergeant at
Arms of the Senate or the House of Representatives designated
by the Chairman of the Board, $6,772,000, to be disbursed by
the Capitol Police Board or their delegee: Provided, That, notwithstanding any other provision of law, the cost of basic training
for the Capitol Police at the Federal Law Enforcement Training
Center for fiscal year 2001 shall be paid by the Secretary of the
Treasury from funds available to the Department of the Treasury.
ADMINISTRATIVE PROVISIONS
SEC. 106. Amounts appropriated for fiscal year 2001 for the
Capitol Police Board for the Capitol Police may be transferred
between the headings ‘‘SALARIES’’ and ‘‘GENERAL EXPENSES’’ upon
the approval of—
(1) the Committee on Appropriations of the House of Representatives, in the case of amounts transferred from the appropriation provided to the Sergeant at Arms of the House of
Representatives under the heading ‘‘SALARIES’’;
(2) the Committee on Appropriations of the Senate, in
the case of amounts transferred from the appropriation provided
to the Sergeant at Arms and Doorkeeper of the Senate under
the heading ‘‘SALARIES’’; and
(3) the Committees on Appropriations of the Senate and
the House of Representatives, in the case of other transfers.
SEC. 107. (a) APPOINTMENT OF CERTIFYING OFFICERS OF THE
CAPITOL POLICE.—The Chief Administrative Officer of the United
States Capitol Police, or when there is not a Chief Administrative
Officer, the Capitol Police Board, shall appoint certifying officers
to certify all vouchers for payment from funds made available
to the United States Capitol Police.
(b) RESPONSIBILITY AND ACCOUNTABILITY OF CERTIFYING OFFICERS.—
(1) IN GENERAL.—Each officer or employee of the Capitol
Police who has been duly authorized in writing by the Chief
Administrative Officer, or the Capitol Police Board if there
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114 STAT. 2763A–104
PUBLIC LAW 106–554—APPENDIX B
is not a Chief Administrative Officer, to certify vouchers pursuant to subsection (a) shall—
(A) be held responsible for the existence and correctness of the facts recited in the certificate or otherwise
stated on the voucher or its supporting papers and for
the legality of the proposed payment under the appropriation or fund involved;
(B) be held responsible and accountable for the correctness of the computations of certified vouchers; and
(C) be held accountable for and required to make good
to the United States the amount of any illegal, improper,
or incorrect payment resulting from any false, inaccurate,
or misleading certificate made by such officer or employee,
as well as for any payment prohibited by law or which
did not represent a legal obligation under the appropriation
or fund involved.
(2) RELIEF BY COMPTROLLER GENERAL.—The Comptroller
General may, at the Comptroller General’s discretion, relieve
such certifying officer or employee of liability for any payment
otherwise proper if the Comptroller General finds—
(A) that the certification was based on official records
and that the certifying officer or employee did not know,
and by reasonable diligence and inquiry could not have
ascertained, the actual facts; or
(B) that the obligation was incurred in good faith,
that the payment was not contrary to any statutory provision specifically prohibiting payments of the character
involved, and the United States has received value for
such payment.
(c) ENFORCEMENT OF LIABILITY.—The liability of the certifying
officers of the United States Capitol Police shall be enforced in
the same manner and to the same extent as currently provided
with respect to the enforcement of the liability of disbursing and
other accountable officers, and such officers shall have the right
to apply for and obtain a decision by the Comptroller General
on any question of law involved in a payment on any vouchers
presented to them for certification.
SEC. 108. CHIEF ADMINISTRATIVE OFFICER.—(a) There shall be
within the Capitol Police an Office of Administration to be headed
by a Chief Administrative Officer:
(1) The Chief Administrative Officer shall be appointed
by the Comptroller General after consultation with the Capitol
Police Board, and shall report to and serve at the pleasure
of the Comptroller General.
(2) The Comptroller General shall appoint as Chief
Administrative Officer an individual with the knowledge and
skills necessary to carry out the responsibilities for budgeting,
financial management, information technology, and human
resource management described in this section.
(3) The Chief Administrative Officer shall receive basic
pay at a rate determined by the Comptroller General, but
not to exceed the annual rate of basic pay payable for ES–
2 of the Senior Executive Service Basic Rates Schedule established for members of the Senior Executive Service of the
General Accounting Office under section 733 of title 31.
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PUBLIC LAW 106–554—APPENDIX B
114 STAT. 2763A–105
(4) The Capitol Police shall reimburse from available appropriations any costs incurred by the General Accounting Office
under this section.
(b) The Chief Administrative Officer shall have the following
areas of responsibility:
(1) BUDGETING.—The Chief Administrative Officer shall—
(A) after consulting with the Chief of Police on the
portion of the budget covering uniformed police force
personnel, prepare and submit to the Capitol Police Board
an annual budget for the Capitol Police; and
(B) execute the budget and monitor through periodic
examinations the execution of the Capitol Police budget
in relation to actual obligations and expenditures.
(2) FINANCIAL MANAGEMENT.—The Chief Administrative
Officer shall—
(A) oversee all financial management activities relating
to the programs and operations of the Capitol Police;
(B) develop and maintain an integrated accounting
and financial system for the Capitol Police, including financial reporting and internal controls, which—
(i) complies with applicable accounting principles,
standards, and requirements, and internal control
standards;
(ii) complies with any other requirements
applicable to such systems;
(iii) provides for—
(I) complete, reliable, consistent, and timely
information which is prepared on a uniform basis
and which is responsive to financial information
needs of the Capitol Police;
(II) the development and reporting of cost
information;
(III) the integration of accounting and budgeting information; and
(IV) the systematic measurement of performance;
(C) direct, manage, and provide policy guidance and
oversight of Capitol Police financial management personnel,
activities, and operations, including—
(i) the recruitment, selection, and training of
personnel to carry out Capitol Police financial management functions; and
(ii) the implementation of Capitol Police asset
management systems, including systems for cash
management, debt collection, and property and inventory management and control; and
(D) the Chief Administrative Officer shall prepare
annual financial statements for the Capitol Police and provide for an annual audit of the financial statements by
an independent public accountant in accordance with generally accepted government auditing standards.
(3) INFORMATION TECHNOLOGY.—The Chief Administrative
Officer shall—
(A) direct, coordinate, and oversee the acquisition, use,
and management of information technology by the Capitol
Police;
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114 STAT. 2763A–106
PUBLIC LAW 106–554—APPENDIX B
(B) promote and oversee the use of information technology to improve the efficiency and effectiveness of programs of the Capitol Police; and
(C) establish and enforce information technology principles, guidelines, and objectives, including developing and
maintaining an information technology architecture for the
Capitol Police.
(4) HUMAN RESOURCES.—The Chief Administrative Officer
shall—
(A) direct, coordinate, and oversee human resource
management activities of the Capitol Police, except that
with respect to uniformed police force personnel, the Chief
Administrative Officer shall perform these activities in
cooperation with the Chief of the Capitol Police;
(B) develop and monitor payroll and time and attendance systems and employee services; and
(C) develop and monitor processes for recruiting, selecting, appraising, and promoting employees.
(c) Administrative provisions with respect to the Office of
Administration:
(1) The Chief Administrative Officer is authorized to select,
appoint, employ, and discharge such officers and employees
as may be necessary to carry out the functions, powers, and
duties of the Office of Administration but he shall not have
the authority to hire or discharge uniformed police force personnel.
(2) The Chief Administrative Officer may utilize resources
of another agency on a reimbursable basis to be paid from
available appropriations of the Capitol Police.
(d) No later than 180 days after appointment, the Chief
Administrative Officer shall prepare, after consultation with the
Capitol Police Board and the Chief of the Capitol Police, a plan—
(1) describing the policies, procedures, and actions the Chief
Administrative Officer will take in carrying out the responsibilities assigned under this section;
(2) identifying and defining responsibilities and roles of
all offices, bureaus, and divisions of the Capitol Police for
budgeting, financial management, information technology, and
human resources management; and
(3) detailing mechanisms for ensuring that the offices,
bureaus, and divisions perform their responsibilities and roles
in a coordinated and integrated manner.
(e) No later than September 30, 2001, the Chief Administrative
Officer shall prepare, after consultation with the Capitol Police
Board and the Chief of the Capitol Police, a report on the Chief
Administrative Officer’s progress in implementing the plan
described in subsection (d) and recommendations to improve the
budgeting, financial, information technology, and human resources
management of the Capitol Police, including organizational,
accounting and administrative control, and personnel changes.
(f ) The Chief Administrative Officer shall submit the plan
required in subsection (d) and the report required in subsection
(e) to the Committees on Appropriations of the House of Representatives and of the Senate, the Committee on House Administration
of the House of Representatives, and the Committee on Rules
and Administration of the Senate.
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PUBLIC LAW 106–554—APPENDIX B
114 STAT. 2763A–107
(g) As of October 1, 2002, unless otherwise determined by
the Comptroller General, the Chief Administrative Officer established by section (a) will cease to be an employee of the General
Accounting Office and will become an employee of the Capitol
Police, and the Capitol Police Board shall assume all responsibilities
of the Comptroller General under this section.
SEC. 109. (a) Section 1(c) of Public Law 96–152 (40 U.S.C.
206–1) is amended by striking ‘‘the annual rate’’ and all that follows
and inserting the following: ‘‘the rate of basic pay payable for
level ES–4 of the Senior Executive Service, as established under
subchapter VIII of chapter 53 of title 5, United States Code (taking
into account any comparability payments made under section
5304(h) of such title).’’.
(b) The amendment made by subsection (a) shall apply with
respect to pay periods beginning on or after the date of the enactment of this Act.
CAPITOL GUIDE SERVICE
AND
SPECIAL SERVICES OFFICE
For salaries and expenses of the Capitol Guide Service and
Special Services Office, $2,371,000, to be disbursed by the Secretary
of the Senate: Provided, That no part of such amount may be
used to employ more than 43 individuals: Provided further, That
the Capitol Guide Board is authorized, during emergencies, to
employ not more than two additional individuals for not more
than 120 days each, and not more than 10 additional individuals
for not more than 6 months each, for the Capitol Guide Service.
STATEMENTS
OF
APPROPRIATIONS
For the preparation, under the direction of the Committees
on Appropriations of the Senate and the House of Representatives,
of the statements for the second session of the One Hundred Sixth
Congress, showing appropriations made, indefinite appropriations,
and contracts authorized, together with a chronological history of
the regular appropriations bills as required by law, $30,000, to
be paid to the persons designated by the chairmen of such committees to supervise the work.
OFFICE OF COMPLIANCE
SALARIES
AND
EXPENSES
For salaries and expenses of the Office of Compliance, as
authorized by section 305 of the Congressional Accountability Act
of 1995 (2 U.S.C. 1385), $1,820,000.
CONGRESSIONAL BUDGET OFFICE
SALARIES
AND
EXPENSES
For salaries and expenses necessary to carry out the provisions
of the Congressional Budget Act of 1974 (Public Law 93–344),
including not more than $3,000 to be expended on the certification
of the Director of the Congressional Budget Office in connection
with official representation and reception expenses, $28,493,000:
Provided, That no part of such amount may be used for the purchase
or hire of a passenger motor vehicle.
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114 STAT. 2763A–108
PUBLIC LAW 106–554—APPENDIX B
ADMINISTRATIVE PROVISION
SEC. 110. Beginning on the date of enactment of this Act
and hereafter, the Congressional Budget Office may use available
funds to enter into contracts for the procurement of severable
services for a period that begins in one fiscal year and ends in
the next fiscal year and may enter into multi-year contracts for
the acquisition of property and services, to the same extent as
executive agencies under the authority of section 303L and 304B,
respectively, of the Federal Property and Administrative Services
Act (41 U.S.C. 253l and 254c).
ARCHITECT OF THE CAPITOL
CAPITOL BUILDINGS
AND
GROUNDS
CAPITOL BUILDINGS
SALARIES AND EXPENSES
For salaries for the Architect of the Capitol, the Assistant
Architect of the Capitol, and other personal services, at rates of
pay provided by law; for surveys and studies in connection with
activities under the care of the Architect of the Capitol; for all
necessary expenses for the maintenance, care and operation of
the Capitol and electrical substations of the Senate and House
office buildings under the jurisdiction of the Architect of the Capitol,
including furnishings and office equipment, including not more
than $1,000 for official reception and representation expenses, to
be expended as the Architect of the Capitol may approve; for purchase or exchange, maintenance and operation of a passenger motor
vehicle; and not to exceed $20,000 for attendance, when specifically
authorized by the Architect of the Capitol, at meetings or conventions in connection with subjects related to work under the Architect
of the Capitol, $43,689,000, of which $3,843,000 shall remain available until expended: Provided, That notwithstanding any other
provision of law, such amount shall be available for the position
of Project Manager for the Capitol Visitor Center, at a rate of
compensation which does not exceed the rate of basic pay payable
for level ES–2 of the Senior Executive Service, as established under
subchapter VIII of chapter 53 of title 5, United States Code (taking
into account any comparability payments made under section
5304(h) of such title): Provided further, That effective on the date
of the enactment of this Act, any amount made available under
this heading under the Legislative Branch Appropriations Act, 2000,
shall be available for such position at such rate of compensation.
CAPITOL GROUNDS
For all necessary expenses for care and improvement of grounds
surrounding the Capitol, the Senate and House office buildings,
and the Capitol Power Plant, $5,362,000, of which $125,000 shall
remain available until expended.
SENATE OFFICE BUILDINGS
For all necessary expenses for the maintenance, care and operation of Senate office buildings; and furniture and furnishings to
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PUBLIC LAW 106–554—APPENDIX B
114 STAT. 2763A–109
be expended under the control and supervision of the Architect
of the Capitol, $63,974,000, of which $21,669,000 shall remain
available until expended.
HOUSE OFFICE BUILDINGS
For all necessary expenses for the maintenance, care and operation of the House office buildings, $32,750,000, of which $123,000
shall remain available until expended.
CAPITOL POWER PLANT
For all necessary expenses for the maintenance, care and operation of the Capitol Power Plant; lighting, heating, power (including
the purchase of electrical energy) and water and sewer services
for the Capitol, Senate and House office buildings, Library of Congress buildings, and the grounds about the same, Botanic Garden,
Senate garage, and air conditioning refrigeration not supplied from
plants in any of such buildings; heating the Government Printing
Office and Washington City Post Office, and heating and chilled
water for air conditioning for the Supreme Court Building, the
Union Station complex, the Thurgood Marshall Federal Judiciary
Building and the Folger Shakespeare Library, expenses for which
shall be advanced or reimbursed upon request of the Architect
of the Capitol and amounts so received shall be deposited into
the Treasury to the credit of this appropriation, $39,415,000, of
which $523,000 shall remain available until expended: Provided,
That not more than $4,400,000 of the funds credited or to be
reimbursed to this appropriation as herein provided shall be available for obligation during fiscal year 2001.
LIBRARY OF CONGRESS
CONGRESSIONAL RESEARCH SERVICE
SALARIES AND EXPENSES
For necessary expenses to carry out the provisions of section
203 of the Legislative Reorganization Act of 1946 (2 U.S.C. 166)
and to revise and extend the Annotated Constitution of the United
States of America, $73,592,000: Provided, That no part of such
amount may be used to pay any salary or expense in connection
with any publication, or preparation of material therefor (except
the Digest of Public General Bills), to be issued by the Library
of Congress unless such publication has obtained prior approval
of either the Committee on House Administration of the House
of Representatives or the Committee on Rules and Administration
of the Senate.
GOVERNMENT PRINTING OFFICE
CONGRESSIONAL PRINTING
(INCLUDING
AND
BINDING
TRANSFER OF FUNDS)
For authorized printing and binding for the Congress and the
distribution of Congressional information in any format; printing
and binding for the Architect of the Capitol; expenses necessary
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114 STAT. 2763A–110
PUBLIC LAW 106–554—APPENDIX B
for preparing the semimonthly and session index to the Congressional Record, as authorized by law (44 U.S.C. 902); printing and
binding of Government publications authorized by law to be distributed to Members of Congress; and printing, binding, and distribution of Government publications authorized by law to be distributed
without charge to the recipient, $71,462,000: Provided, That this
appropriation shall not be available for paper copies of the permanent edition of the Congressional Record for individual Representatives, Resident Commissioners or Delegates authorized under 44
U.S.C. 906: Provided further, That this appropriation shall be available for the payment of obligations incurred under the appropriations for similar purposes for preceding fiscal years: Provided further, That notwithstanding the 2-year limitation under section 718
of title 44, United States Code, none of the funds appropriated
or made available under this Act or any other Act for printing
and binding and related services provided to Congress under chapter 7 of title 44, United States Code, may be expended to print
a document, report, or publication after the 27-month period beginning on the date that such document, report, or publication is
authorized by Congress to be printed, unless Congress reauthorizes
such printing in accordance with section 718 of title 44, United
States Code: Provided further, That any unobligated or unexpended
balances in this account or accounts for similar purposes for preceding fiscal years may be transferred to the Government Printing
Office revolving fund for carrying out the purposes of this heading,
subject to the approval of the Committees on Appropriations of
the House of Representatives and Senate.
ADMINISTRATIVE PROVISION
SEC. 111. (a) CONGRESSIONAL PRINTING AND BINDING FOR THE
HOUSE THROUGH CLERK OF HOUSE.—
(1) IN GENERAL.—Notwithstanding any provision of title
44, United States Code, or any other law, there are authorized
to be appropriated to the Clerk of the House of Representatives
such sums as may be necessary for congressional printing and
binding services for the House of Representatives.
(2) PREPARATION OF ESTIMATES.—Estimated expenditures
and proposed appropriations for congressional printing and
binding services shall be prepared and submitted by the Clerk
of the House of Representatives in accordance with title 31,
United States Code, in the same manner as estimates and
requests are prepared for other legislative branch services
under such title, except that such requests shall be based
upon the results of the study conducted under subsection (b)
(with respect to any fiscal year covered by such study).
(3) EFFECTIVE DATE.—This subsection shall apply with
respect to fiscal year 2003 and each succeeding fiscal year.
(b) STUDY.—
(1) IN GENERAL.—During fiscal year 2001, the Clerk of
the House of Representatives shall conduct a comprehensive
study of the needs of the House for congressional printing
and binding services during fiscal year 2003 and succeeding
fiscal years (including transitional issues during fiscal year
2002), and shall include in the study an analysis of the most
cost-effective program or programs for providing printed or
other media-based publications for House uses.
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PUBLIC LAW 106–554—APPENDIX B
114 STAT. 2763A–111
(2) SUBMISSION TO COMMITTEES.—The Clerk shall submit
the study conducted under paragraph (1) to the Committee
on House Administration of the House of Representatives, who
shall review the study and prepare such regulations or other
materials (including proposals for legislation) as it considers
appropriate to enable the Clerk to carry out congressional printing and binding services for the House in accordance with
this section.
(c) DEFINITION.—In this section, the term ‘‘congressional printing and binding services’’ means the following services:
(1) Authorized printing and binding for the Congress and
the distribution of congressional information in any format.
(2) Preparing the semimonthly and session index to the
Congressional Record.
(3) Printing and binding of Government publications
authorized by law to be distributed to Members of Congress.
(4) Printing, binding, and distribution of Government
publications authorized by law to be distributed without charge
to the recipient.
This title may be cited as the ‘‘Congressional Operations Appropriations Act, 2001’’.
TITLE II—OTHER AGENCIES
BOTANIC GARDEN
SALARIES
AND
EXPENSES
For all necessary expenses for the maintenance, care and operation of the Botanic Garden and the nurseries, buildings, grounds,
and collections; and purchase and exchange, maintenance, repair,
and operation of a passenger motor vehicle; all under the direction
of the Joint Committee on the Library, $3,328,000, of which $25,000
shall remain available until expended.
LIBRARY OF CONGRESS
SALARIES
AND
EXPENSES
For necessary expenses of the Library of Congress not otherwise
provided for, including development and maintenance of the Union
Catalogs; custody and custodial care of the Library buildings; special
clothing; cleaning, laundering and repair of uniforms; preservation
of motion pictures in the custody of the Library; operation and
maintenance of the American Folklife Center in the Library;
preparation and distribution of catalog records and other publications of the Library; hire or purchase of one passenger motor
vehicle; and expenses of the Library of Congress Trust Fund Board
not properly chargeable to the income of any trust fund held by
the Board, $282,838,000, of which not more than $6,500,000 shall
be derived from collections credited to this appropriation during
fiscal year 2001, and shall remain available until expended, under
the Act of June 28, 1902 (chapter 1301; 32 Stat. 480; 2 U.S.C.
150) and not more than $350,000 shall be derived from collections
during fiscal year 2001 and shall remain available until expended
for the development and maintenance of an international legal
information database and activities related thereto: Provided, That
the Library of Congress may not obligate or expend any funds
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114 STAT. 2763A–112
PUBLIC LAW 106–554—APPENDIX B
derived from collections under the Act of June 28, 1902, in excess
of the amount authorized for obligation or expenditure in appropriations Acts: Provided further, That the total amount available for
obligation shall be reduced by the amount by which collections
are less than the $6,850,000: Provided further, That of the total
amount appropriated, $10,459,575 is to remain available until
expended for acquisition of books, periodicals, newspapers, and
all other materials including subscriptions for bibliographic services
for the Library, including $40,000 to be available solely for the
purchase, when specifically approved by the Librarian, of special
and unique materials for additions to the collections: Provided
further, That of the total amount appropriated, $2,506,000 is to
remain available until expended for the acquisition and partial
support for implementation of an Integrated Library System (ILS):
Provided further, That of the total amount appropriated,
$10,000,000 is to remain available until expended for salaries and
expenses to carry out the Russian Leadership Program enacted
on May 21, 1999 (113 Stat. 93 et seq.): Provided further, That
of the total amount appropriated, $5,957,800 is to remain available
until expended for the purpose of teaching educators how to incorporate the Library’s digital collections into school curricula, which
amount shall be transferred to the educational consortium formed
to conduct the ‘‘Joining Hands Across America: Local Community
Initiative’’ project as approved by the Library: Provided further,
That of the total amount appropriated, $404,000 is to remain available until expended for a collaborative digitization and telecommunications project with the United States Military Academy
and any remaining balance is available for other Library purposes:
Provided further, That of the total amount appropriated, $4,300,000
is to remain available until expended for the purpose of developing
a high speed data transmission between the Library of Congress
and educational facilities, libraries, or networks serving western
North Carolina, and any remaining balance is available for support
of the Library’s Digital Futures initiative.
COPYRIGHT OFFICE
SALARIES AND EXPENSES
For necessary expenses of the Copyright Office, $38,523,000,
of which not more than $23,500,000, to remain available until
expended, shall be derived from collections credited to this appropriation during fiscal year 2001 under 17 U.S.C. 708(d): Provided,
That the Copyright Office may not obligate or expend any funds
derived from collections under 17 U.S.C. 708(d), in excess of the
amount authorized for obligation or expenditure in appropriations
Acts: Provided further, That not more than $5,783,000 shall be
derived from collections during fiscal year 2001 under 17 U.S.C.
111(d)(2), 119(b)(2), 802(h), and 1005: Provided further, That the
total amount available for obligation shall be reduced by the amount
by which collections are less than $29,283,000: Provided further,
That not more than $100,000 of the amount appropriated is available for the maintenance of an ‘‘International Copyright Institute’’
in the Copyright Office of the Library of Congress for the purpose
of training nationals of developing countries in intellectual property
laws and policies: Provided further, That not more than $4,250
may be expended, on the certification of the Librarian of Congress,
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PUBLIC LAW 106–554—APPENDIX B
114 STAT. 2763A–113
in connection with official representation and reception expenses
for activities of the International Copyright Institute and for copyright delegations, visitors, and seminars.
BOOKS
FOR THE
BLIND
AND
PHYSICALLY HANDICAPPED
SALARIES AND EXPENSES
For salaries and expenses to carry out the Act of March 3,
1931 (chapter 400; 46 Stat. 1487; 2 U.S.C. 135a), $48,609,000,
of which $14,154,000 shall remain available until expended.
FURNITURE
AND
FURNISHINGS
For necessary expenses for the purchase, installation, maintenance, and repair of furniture, furnishings, office and library equipment, $4,892,000.
ADMINISTRATIVE PROVISIONS
SEC. 201. Appropriations in this Act available to the Library
of Congress shall be available, in an amount of not more than
$199,630, of which $59,300 is for the Congressional Research Service, when specifically authorized by the Librarian of Congress,
for attendance at meetings concerned with the function or activity
for which the appropriation is made.
SEC. 202. (a) No part of the funds appropriated in this Act
shall be used by the Library of Congress to administer any flexible
or compressed work schedule which—
(1) applies to any manager or supervisor in a position
the grade or level of which is equal to or higher than GS–
15; and
(2) grants such manager or supervisor the right to not
be at work for all or a portion of a workday because of time
worked by the manager or supervisor on another workday.
(b) For purposes of this section, the term ‘‘manager or supervisor’’ means any management official or supervisor, as such terms
are defined in section 7103(a)(10) and (11) of title 5, United States
Code.
SEC. 203. Appropriated funds received by the Library of Congress from other Federal agencies to cover general and administrative overhead costs generated by performing reimbursable work
for other agencies under the authority of sections 1535 and 1536
of title 31, United States Code, shall not be used to employ more
than 65 employees and may be expended or obligated—
(1) in the case of a reimbursement, only to such extent
or in such amounts as are provided in appropriations Acts;
or
(2) in the case of an advance payment, only—
(A) to pay for such general or administrative overhead
costs as are attributable to the work performed for such
agency; or
(B) to such extent or in such amounts as are provided
in appropriations Acts, with respect to any purpose not
allowable under subparagraph (A).
SEC. 204. Of the amounts appropriated to the Library of Congress in this Act, not more than $5,000 may be expended, on
the certification of the Librarian of Congress, in connection with
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114 STAT. 2763A–114
PUBLIC LAW 106–554—APPENDIX B
official representation and reception expenses for the incentive
awards program.
SEC. 205. Of the amount appropriated to the Library of Congress in this Act, not more than $12,000 may be expended, on
the certification of the Librarian of Congress, in connection with
official representation and reception expenses for the Overseas Field
Offices.
SEC. 206. (a) For fiscal year 2001, the obligational authority
of the Library of Congress for the activities described in subsection
(b) may not exceed $92,845,000.
(b) The activities referred to in subsection (a) are reimbursable
and revolving fund activities that are funded from sources other
than appropriations to the Library in appropriations Acts for the
legislative branch.
SEC. 207. Section 1 of the Act entitled ‘‘An Act to authorize
acquisition of certain real property for the Library of Congress,
and for other purposes’’, approved December 15, 1997 (2 U.S.C.
141 note) is amended by adding at the end the following new
subsection:
‘‘(c) TRANSFER PAYMENT BY ARCHITECT.—Notwithstanding the
limitation on reimbursement or transfer of funds under subsection
(a) of this section, the Architect of the Capitol may, not later
than 90 days after acquisition of the property under this section,
transfer funds to the entity from which the property was acquired
by the Architect of the Capitol. Such transfers may not exceed
a total of $16,500,000.’’.
SEC. 208. The Librarian of Congress may convert to permanent
positions 84 indefinite, time-limited positions in the National Digital
Library Program authorized in the Legislative Branch Appropriations Act, 1996 for the Library of Congress under the heading,
‘‘Salaries and Expenses’’ (Public Law 104–53). Notwithstanding any
other provision of law regarding qualifications and methods of
appointment of employees of the Library of Congress, the Librarian
may fill these permanent positions through the non-competitive
conversion of the incumbents in the ‘‘indefinite-not-to-exceed’’ positions to ‘‘permanent’’ positions.
SEC. 209. (a) In addition to any other transfer authority provided by law, during fiscal year 2001 and fiscal years thereafter,
the Librarian of Congress may transfer to and among available
accounts of the Library of Congress amounts appropriated to the
Librarian from funds for the purchase, installation, maintenance,
and repair of furniture, furnishings, and office and library equipment.
(b) Any amounts transferred pursuant to subsection (a) shall
be merged with and be available for the same purpose and for
the same period as the appropriation or account to which such
amounts are transferred.
(c) The Librarian may transfer amounts pursuant to subsection
(a) only with the approval of the Committees on Appropriations
of the House of Representatives and Senate.
SEC. 210. (a)(1) This subsection shall apply to any individual
who—
(A) is employed by the Library of Congress Child Development Center (known as the ‘‘Little Scholars Child Development
Center’’, in this section referred to as the ‘‘Center’’) established
under section 205(g)(1) of the Legislative Branch Appropriations
Act, 1991; and
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PUBLIC LAW 106–554—APPENDIX B
114 STAT. 2763A–115
(B) makes an election to be covered by this subsection
with the Librarian of Congress, not later than the later of—
(i) 60 days after the date of enactment of this Act;
or
(ii) 60 days after the date the individual begins such
employment.
(2)(A) Any individual described under paragraph (1) may be
credited, under section 8411 of title 5, United States Code, for
service as an employee of the Center before the date of enactment
of this Act, if such employee makes a payment of the deposit
under section 8411(f )(2) of such title without application of section
8411(b)(3) of such title.
(B) An individual described under paragraph (1) shall be credited under section 8411 of title 5, United States Code, for any
service as an employee of the Center on or after the date of enactment of this Act, if such employee has such amounts deducted
and withheld from his pay as determined by the Office of Personnel
Management which would be deducted and withheld from the basic
pay of an employee under section 8422 of title 5, United States
Code.
(3) Notwithstanding any other provision of this subsection,
any service performed by an individual described under paragraph
(1) as an employee of the Center is deemed to be civilian service
creditable under section 8411 of title 5, United States Code, for
purposes of qualifying for survivor annuities and disability benefits
under subchapters IV and V of chapter 84 of such title, if such
individual makes payment of an amount, determined by the Office
of Personnel Management, which would have been deducted and
withheld from the basic pay of such individual if such individual
had been an employee subject to section 8422 of title 5, United
States Code, for such period so credited, together with interest
thereon.
(4) An individual described under paragraph (1) shall be deemed
an employee for purposes of chapter 84 of title 5, United States
Code, including subchapter III of such title, and may make contributions under section 8432 of such title effective for the first applicable
pay period beginning on or after the date such individual elects
coverage under this section.
(5) The Office of Personnel Management shall accept the certification of the Librarian of Congress concerning creditable service
for purposes of this subsection.
(b) Any individual who is employed by the Center on or after
the date of enactment of this Act shall be deemed an employee
under section 8901(1) of title 5, United States Code, for purposes
of health insurance coverage under chapter 89 of such title. An
individual who is an employee of the Center on the date of enactment of this Act may elect coverage under this subsection before
the 60th day after the date of enactment of this Act, and during
such periods as determined by the Office of Personnel Management
for employees of the Center employed after such date.
(c) An individual who is employed by the Center shall be
deemed an employee under section 8701(a) of title 5, United States
Code, for purposes of life insurance coverage under chapter 87
of such title.
(d) Government contributions for individuals receiving benefits
under this section, as computed under sections 8423, 8432, 8708,
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114 STAT. 2763A–116
PUBLIC LAW 106–554—APPENDIX B
and 8906 shall be made by the Librarian of Congress from any
appropriations available to the Library of Congress.
(e) The Library of Congress, directly or by agreement with
its designated representative, shall—
(1) process payroll for Center employees, including making
deductions and withholdings from the pay of employees in
the amounts determined under sections 8422, 8432, 8707, and
8905 of title 5, United States Code;
(2) maintain appropriate personnel and payroll records for
Center employees, and transmit appropriate information and
records to the Office of Personnel Management; and
(3) transmit funds for Government and employee contributions under this section to the Office of Personnel Management.
(f ) The Center shall—
(1) pay to the Library of Congress funds sufficient to cover
the gross salary and the employer’s share of taxes under section
3111 of the Internal Revenue Code of 1986 for Center employees, in amounts computed by the Library of Congress;
(2) as required by the Library of Congress, reimburse the
Library of Congress for reasonable administrative costs
incurred under subsection (e)(1);
(3) comply with regulations and procedures prescribed by
the Librarian of Congress for administration of this section;
(4) maintain appropriate records on all Center employees,
as required by the Librarian of Congress; and
(5) consult with the Librarian of Congress on the administration and implementation of this section.
(g) The Librarian of Congress may prescribe regulations to
carry out this section.
ARCHITECT OF THE CAPITOL
LIBRARY BUILDINGS
AND
GROUNDS
STRUCTURAL AND MECHANICAL CARE
For all necessary expenses for the mechanical and structural
maintenance, care and operation of the Library buildings and
grounds, $15,970,000, of which $5,000,000 shall remain available
until expended.
GOVERNMENT PRINTING OFFICE
OFFICE
OF
SUPERINTENDENT
OF
DOCUMENTS
SALARIES AND EXPENSES
(INCLUDING
TRANSFER OF FUNDS)
For expenses of the Office of Superintendent of Documents
necessary to provide for the cataloging and indexing of Government
publications and their distribution to the public, Members of Congress, other Government agencies, and designated depository and
international exchange libraries as authorized by law, $27,954,000:
Provided, That travel expenses, including travel expenses of the
Depository Library Council to the Public Printer, shall not exceed
$175,000: Provided further, That amounts of not more than
$2,000,000 from current year appropriations are authorized for
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PUBLIC LAW 106–554—APPENDIX B
114 STAT. 2763A–117
producing and disseminating Congressional serial sets and other
related publications for 1999 and 2000 to depository and other
designated libraries: Provided further, That any unobligated or
unexpended balances in this account or accounts for similar purposes for preceding fiscal years may be transferred to the Government Printing Office revolving fund for carrying out the purposes
of this heading, subject to the approval of the Committees on
Appropriations of the House of Representatives and Senate.
GOVERNMENT PRINTING OFFICE REVOLVING FUND
The Government Printing Office is hereby authorized to make
such expenditures, within the limits of funds available and in
accord with the law, and to make such contracts and commitments
without regard to fiscal year limitations as provided by section
9104 of title 31, United States Code, as may be necessary in
carrying out the programs and purposes set forth in the budget
for the current fiscal year for the Government Printing Office revolving fund: Provided, That not more than $2,500 may be expended
on the certification of the Public Printer in connection with official
representation and reception expenses: Provided further, That the
revolving fund shall be available for the hire or purchase of not
more than 12 passenger motor vehicles: Provided further, That
expenditures in connection with travel expenses of the advisory
councils to the Public Printer shall be deemed necessary to carry
out the provisions of title 44, United States Code: Provided further,
That the revolving fund shall be available for temporary or intermittent services under section 3109(b) of title 5, United States Code,
but at rates for individuals not more than the daily equivalent
of the annual rate of basic pay for level V of the Executive Schedule
under section 5316 of such title: Provided further, That the revolving
fund and the funds provided under the headings ‘‘OFFICE OF SUPERINTENDENT OF DOCUMENTS’’ and ‘‘SALARIES AND EXPENSES’’ together
may not be available for the full-time equivalent employment of
more than 3,285 workyears (or such other number of workyears
as the Public Printer may request, subject to the approval of the
Committees on Appropriations of the Senate and the House of
Representatives): Provided further, That activities financed through
the revolving fund may provide information in any format: Provided
further, That the revolving fund shall not be used to administer
any flexible or compressed work schedule which applies to any
manager or supervisor in a position the grade or level of which
is equal to or higher than GS–15: Provided further, That expenses
for attendance at meetings shall not exceed $75,000.
GENERAL ACCOUNTING OFFICE
SALARIES
AND
EXPENSES
For necessary expenses of the General Accounting Office,
including not more than $10,000 to be expended on the certification
of the Comptroller General of the United States in connection
with official representation and reception expenses; temporary or
intermittent services under section 3109(b) of title 5, United States
Code, but at rates for individuals not more than the daily equivalent
of the annual rate of basic pay for level IV of the Executive Schedule
under section 5315 of such title; hire of one passenger motor vehicle;
advance payments in foreign countries in accordance with section
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114 STAT. 2763A–118
PUBLIC LAW 106–554—APPENDIX B
3324 of title 31, United States Code; benefits comparable to those
payable under sections 901(5), 901(6), and 901(8) of the Foreign
Service Act of 1980 (22 U.S.C. 4081(5), 4081(6), and 4081(8)); and
under regulations prescribed by the Comptroller General of the
United States, rental of living quarters in foreign countries,
$384,867,000: Provided, That not more than $1,900,000 of payments
received under 31 U.S.C. 782 shall be available for use in fiscal
year 2001: Provided further, That not more than $1,100,000 of
reimbursements received under 31 U.S.C. 9105 shall be available
for use in fiscal year 2001: Provided further, That this appropriation
and appropriations for administrative expenses of any other department or agency which is a member of the National Intergovernmental Audit Forum or a Regional Intergovernmental Audit Forum
shall be available to finance an appropriate share of either Forum’s
costs as determined by the respective Forum, including necessary
travel expenses of non-Federal participants. Payments hereunder
to the Forum may be credited as reimbursements to any appropriation from which costs involved are initially financed: Provided further, That this appropriation and appropriations for administrative
expenses of any other department or agency which is a member
of the American Consortium on International Public Administration
(ACIPA) shall be available to finance an appropriate share of ACIPA
costs as determined by the ACIPA, including any expenses attributable to membership of ACIPA in the International Institute of
Administrative Sciences.
TITLE III—GENERAL PROVISIONS
SEC. 301. No part of the funds appropriated in this Act shall
be used for the maintenance or care of private vehicles, except
for emergency assistance and cleaning as may be provided under
regulations relating to parking facilities for the House of Representatives issued by the Committee on House Administration and for
the Senate issued by the Committee on Rules and Administration.
SEC. 302. No part of the funds appropriated in this Act shall
remain available for obligation beyond fiscal year 2001 unless
expressly so provided in this Act.
SEC. 303. Whenever in this Act any office or position not specifically established by the Legislative Pay Act of 1929 is appropriated
for or the rate of compensation or designation of any office or
position appropriated for is different from that specifically established by such Act, the rate of compensation and the designation
in this Act shall be the permanent law with respect thereto: Provided, That the provisions in this Act for the various items of
official expenses of Members, officers, and committees of the Senate
and House of Representatives, and clerk hire for Senators and
Members of the House of Representatives shall be the permanent
law with respect thereto.
SEC. 304. The expenditure of any appropriation under this
Act for any consulting service through procurement contract, pursuant to section 3109 of title 5, United States Code, shall be limited
to those contracts where such expenditures are a matter of public
record and available for public inspection, except where otherwise
provided under existing law, or under existing Executive order
issued pursuant to existing law.
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PUBLIC LAW 106–554—APPENDIX B
114 STAT. 2763A–119
SEC. 305. (a) It is the sense of the Congress that, to the
greatest extent practicable, all equipment and products purchased
with funds made available in this Act should be American-made.
(b) In providing financial assistance to, or entering into any
contract with, any entity using funds made available in this Act,
the head of each Federal agency, to the greatest extent practicable,
shall provide to such entity a notice describing the statement made
in subsection (a) by the Congress.
(c) If it has been finally determined by a court or Federal
agency that any person intentionally affixed a label bearing a
‘‘Made in America’’ inscription, or any inscription with the same
meaning, to any product sold in or shipped to the United States
that is not made in the United States, such person shall be ineligible
to receive any contract or subcontract made with funds provided
pursuant to this Act, pursuant to the debarment, suspension, and
ineligibility procedures described in section 9.400 through 9.409
of title 48, Code of Federal Regulations.
SEC. 306. Such sums as may be necessary are appropriated
to the account described in subsection (a) of section 415 of Public
Law 104–1 to pay awards and settlements as authorized under
such subsection.
SEC. 307. Amounts available for administrative expenses of
any legislative branch entity which participates in the Legislative
Branch Financial Managers Council (LBFMC) established by charter on March 26, 1996, shall be available to finance an appropriate
share of LBFMC costs as determined by the LBFMC, except that
the total LBFMC costs to be shared among all participating legislative branch entities (in such allocations among the entities as
the entities may determine) may not exceed $252,000.
SEC. 308. No part of any appropriation contained in this Act
under the heading ‘‘Architect of the Capitol’’ or ‘‘Botanic Garden’’
shall be obligated or expended for a construction contract in excess
of $100,000, unless such contract includes a provision that requires
liquidated damages for contractor caused delay in an amount
commensurate with the daily net usable square foot cost of leasing
similar space in a first class office building within two miles of
the United States Capitol multiplied by the square footage to be
constructed under the contract.
SEC. 309. Section 316 of Public Law 101–302 is amended in
the first sentence of subsection (a) by striking ‘‘2000’’ and inserting
‘‘2001’’.
SEC. 310. RUSSIAN LEADERSHIP PROGRAM. Section 3011 of the
1999 Emergency Supplemental Appropriations Act (Public Law 106–
31; 113 Stat. 93) is amended—
(1) by striking ‘‘fiscal years 1999 and 2000’’ in subsections
(a)(1), (b)(4)(B), (d)(3), and (h)(1)(A) and inserting ‘‘fiscal years
2000 and 2001’’; and
(2) by striking ‘‘2001’’ in subsection (a)(2), (e)(1), and
(h)(1)(B) and inserting ‘‘2002’’.
SEC. 311. (a)(1) Any State may request the Joint Committee
on the Library of Congress to approve the replacement of a statue
the State has provided for display in Statuary Hall in the Capitol
of the United States under section 1814 of the Revised Statutes
(40 U.S.C. 187).
(2) A request shall be considered under paragraph (1) only
if—
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114 STAT. 2763A–120
PUBLIC LAW 106–554—APPENDIX B
(A) the request has been approved by a resolution adopted
by the legislature of the State and the request has been
approved by the Governor of the State, and
(B) the statue to be replaced has been displayed in the
Capitol of the United States for at least 10 years as of the
time the request is made, except that the Joint Committee
may waive this requirement for cause at the request of a
State.
(b) If the Joint Committee on the Library of Congress approves
a request under subsection (a), the Architect of the Capitol shall
enter into an agreement with the State to carry out the replacement
in accordance with the request and any conditions the Joint
Committee may require for its approval. Such agreement shall
provide that—
(1) the new statue shall be subject to the same conditions
and restrictions as apply to any statue provided by a State
under section 1814 of the Revised Statutes (40 U.S.C. 187),
and
(2) the State shall pay any costs related to the replacement,
including costs in connection with the design, construction,
transportation, and placement of the new statue, the removal
and transportation of the statue being replaced, and any unveiling ceremony.
(c) Nothing in this section shall be interpreted to permit a
State to have more than two statues on display in the Capitol
of the United States.
(d)(1) Subject to the approval of the Joint Committee on the
Library, ownership of any statue replaced under this section shall
be transferred to the State.
(2) If any statue is removed from the Capitol of the United
States as part of a transfer of ownership under paragraph (1),
then it may not be returned to the Capitol for display unless
such display is specifically authorized by Federal law.
(e) The Architect of the Capitol, upon the approval of the
Joint Committee on the Library and with the advice of the Commission of Fine Arts as requested, is authorized and directed to relocate
within the United States Capitol any of the statues received from
the States under section 1814 of the Revised Statutes (40 U.S.C.
187) prior to the date of the enactment of this Act, and to provide
for the reception, location, and relocation of the statues received
hereafter from the States under such section.
SEC. 312. (a) Section 201 of the Legislative Branch Appropriations Act, 1993 (40 U.S.C. 216c note) is amended by striking
‘‘$10,000,000’’ each place it appears and inserting ‘‘$14,500,000’’.
(b) Section 201 of such Act is amended—
(1) by inserting ‘‘(a)’’ before ‘‘Pursuant’’, and
(2) by adding at the end the following:
‘‘(b) The Architect of the Capitol is authorized to solicit, receive,
accept, and hold amounts under section 307E(a)(2) of the Legislative
Branch Appropriations Act, 1989 (40 U.S.C. 216c(a)(2)) in excess
of the $14,500,000 authorized under subsection (a), but such
amounts (and any interest thereon) shall not be expended by the
Architect without approval in appropriation Acts as required under
section 307E(b)(3) of such Act (40 U.S.C. 216c(b)(3)).’’.
SEC. 313. CENTER FOR RUSSIAN LEADERSHIP DEVELOPMENT.
(a) ESTABLISHMENT.—
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PUBLIC LAW 106–554—APPENDIX B
114 STAT. 2763A–121
(1) IN GENERAL.—There is established in the legislative
branch of the Government a center to be known as the ‘‘Center
for Russian Leadership Development’’ (the ‘‘Center’’).
(2) BOARD OF TRUSTEES.—The Center shall be subject to
the supervision and direction of a Board of Trustees which
shall be composed of nine members as follows:
(A) Two members appointed by the Speaker of the
House of Representatives, one of whom shall be designated
by the Majority Leader of the House of Representatives
and one of whom shall be designated by the Minority
Leader of the House of Representatives.
(B) Two members appointed by the President pro tempore of the Senate, one of whom shall be designated by
the Majority Leader of the Senate and one of whom shall
be designated by the Minority Leader of the Senate.
(C) The Librarian of Congress.
(D) Four private individuals with interests in improving United States and Russian relations, designated by
the Librarian of Congress.
Each member appointed under this paragraph shall serve for
a term of 3 years. Any vacancy shall be filled in the same
manner as the original appointment and the individual so
appointed shall serve for the remainder of the term. Members
of the Board shall serve without pay, but shall be entitled
to reimbursement for travel, subsistence, and other necessary
expenses incurred in the performance of their duties.
(b) PURPOSE AND AUTHORITY OF THE CENTER.—
(1) PURPOSE.—The purpose of the Center is to establish,
in accordance with the provisions of paragraph (2), a program
to enable emerging political leaders of Russia at all levels
of government to gain significant, firsthand exposure to the
American free market economic system and the operation of
American democratic institutions through visits to governments
and communities at comparable levels in the United States.
(2) GRANT PROGRAM.—Subject to the provisions of paragraphs (3) and (4), the Center shall establish a program under
which the Center annually awards grants to government or
community organizations in the United States that seek to
establish programs under which those organizations will host
Russian nationals who are emerging political leaders at any
level of government.
(3) RESTRICTIONS.—
(A) DURATION.—The period of stay in the United States
for any individual supported with grant funds under the
program shall not exceed 30 days.
(B) LIMITATION.—The number of individuals supported
with grant funds under the program shall not exceed 3,000
in any fiscal year.
(C) USE OF FUNDS.—Grant funds under the program
shall be used to pay—
(i) the costs and expenses incurred by each program participant in traveling between Russia and the
United States and in traveling within the United
States;
(ii) the costs of providing lodging in the United
States to each program participant, whether in public
accommodations or in private homes; and
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114 STAT. 2763A–122
PUBLIC LAW 106–554—APPENDIX B
(iii) such additional administrative expenses
incurred by organizations in carrying out the program
as the Center may prescribe.
(4) APPLICATION.—
(A) IN GENERAL.—Each organization in the United
States desiring a grant under this section shall submit
an application to the Center at such time, in such manner,
and accompanied by such information as the Center may
reasonably require.
(B) CONTENTS.—Each application submitted pursuant
to subparagraph (A) shall—
(i) describe the activities for which assistance
under this section is sought;
(ii) include the number of program participants
to be supported;
(iii) describe the qualifications of the individuals
who will be participating in the program; and
(iv) provide such additional assurances as the Center determines to be essential to ensure compliance
with the requirements of this section.
(c) ESTABLISHMENT OF FUND.—
(1) IN GENERAL.—There is established in the Treasury of
the United States a trust fund to be known as the ‘‘Russian
Leadership Development Center Trust Fund’’ (the ‘‘Fund’’)
which shall consist of amounts which may be appropriated,
credited, or transferred to it under this section.
(2) DONATIONS.—Any money or other property donated,
bequeathed, or devised to the Center under the authority of
this section shall be credited to the Fund.
(3) FUND MANAGEMENT.—
(A) IN GENERAL.—The provisions of subsections (b),
(c), and (d) of section 116 of the Legislative Branch Appropriations Act, 1989 (2 U.S.C. 1105 (b), (c), and (d)), and
the provisions of section 117(b) of such Act (2 U.S.C.
1106(b)), shall apply to the Fund.
(B) EXPENDITURES.—The Secretary of the Treasury is
authorized to pay to the Center from amounts in the Fund
such sums as the Board of Trustees of the Center determines are necessary and appropriate to enable the Center
to carry out the provisions of this section.
(d) EXECUTIVE DIRECTOR.—The Board shall appoint an Executive Director who shall be the chief executive officer of the Center
and who shall carry out the functions of the Center subject to
the supervision and direction of the Board of Trustees. The Executive Director of the Center shall be compensated at the annual
rate specified by the Board, but in no event shall such rate exceed
level III of the Executive Schedule under section 5314 of title
5, United States Code.
(e) ADMINISTRATIVE PROVISIONS.—
(1) IN GENERAL.—The provisions of section 119 of the Legislative Branch Appropriations Act, 1989 (2 U.S.C. 1108) shall
apply to the Center.
(2) SUPPORT PROVIDED BY LIBRARY OF CONGRESS.—The
Library of Congress may disburse funds appropriated to the
Center, compute and disburse the basic pay for all personnel
of the Center, provide administrative, legal, financial management, and other appropriate services to the Center, and collect
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PUBLIC LAW 106–554—APPENDIX B
114 STAT. 2763A–123
from the Fund the full costs of providing services under this
paragraph, as provided under an agreement for services ordered
under sections 1535 and 1536 of title 31, United States Code.
(f ) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as may be necessary to carry out
this section.
(g) TRANSFER OF FUNDS.—Any amounts appropriated for use
in the program established under section 3011 of the 1999 Emergency Supplemental Appropriations Act (Public Law 106–31; 113
Stat. 93) shall be transferred to the Fund and shall remain available
without fiscal year limitation.
(h) EFFECTIVE DATES.—
(1) IN GENERAL.—This section shall take effect on the date
of enactment of this Act.
(2) TRANSFER.—Subsection (g) shall only apply to amounts
which remain unexpended on and after the date the Board
of Trustees of the Center certifies to the Librarian of Congress
that grants are ready to be made under the program established
under this section.
SEC. 314. REVIEW OF PROPOSED CHANGES TO EXPORT THRESHOLDS FOR COMPUTERS. Not more than 50 days after the date of
the submission of the report referred to in subsection (d) of section
1211 of the National Defense Authorization Act for Fiscal Year
1998 (50 U.S.C. App. 2404 note), the Comptroller General of the
United States shall submit an assessment to Congress which contains an analysis of the new computer performance levels being
proposed by the President under such section.
TITLE IV—EMERGENCY FISCAL YEAR 2000 SUPPLEMENTAL
APPROPRIATIONS
The following sums are appropriated out of any money in
the Treasury not otherwise appropriated, to provide additional
emergency supplemental appropriations for the Legislative Branch
for the fiscal year ending September 30, 2000, and for other purposes, namely:
CAPITOL POLICE BOARD
SECURITY ENHANCEMENTS
For an additional amount for the Capitol Police Board for
costs associated with security enhancements, under the terms and
conditions of chapter 5 of title II of division B of the Omnibus
Consolidated and Emergency Supplemental Appropriations Act,
1999 (Public Law 105–277), $2,102,000, to remain available until
expended, of which—
(1) $228,000 shall be for the acquisition and installation
of card readers for four additional access points which are
not currently funded under the implementation of the security
enhancement plan; and
(2) $1,874,000 shall be for security enhancements to the
buildings and grounds of the Library of Congress:
Provided, That the entire amount is designated by Congress as
an emergency requirement pursuant to section 251(b)(2)(A) of the
Balanced Budget and Emergency Deficit Control Act of 1985, as
amended: Provided further, That the entire amount shall be available only to the extent an official budget request for a specific
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114 STAT. 2763A–124
PUBLIC LAW 106–554—APPENDIX B
dollar amount that includes designation of the entire amount of
the request as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended,
is transmitted by the President to the Congress.
ARCHITECT OF THE CAPITOL
CAPITOL BUILDINGS
AND
GROUNDS
HOUSE OFFICE BUILDINGS
For an additional amount for necessary expenses for urgent
repairs to the underground garage in the Cannon House Office
Building, $9,000,000, to remain available until expended: Provided,
That the entire amount is designated by the Congress as an emergency requirement pursuant to section 251(b)(2)(A) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended:
Provided further, That the entire amount shall be available only
to the extent an official budget request for a specific dollar amount
that includes designation of the entire amount of the request as
an emergency requirement as defined in the Balanced Budget and
Emergency Deficit Control Act of 1985, as amended, is transmitted
by the President to the Congress.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FEDERAL HOUSING ADMINISTRATION
FHA—GENERAL AND SPECIAL RISK PROGRAM ACCOUNT
For an additional amount for FHA—General and special risk
program account for the cost of guaranteed loans, as authorized
by sections 238 and 519 of the National Housing Act (12 U.S.C.
1715z–3 and 1735c), including the cost of loan modifications (as
that term is defined in section 502 of the Congressional Budget
Act of 1974, as amended), $40,000,000, to remain available until
expended: Provided, That the entire amount shall be available
only to the extent an official budget request, that includes designation of the entire amount of the request as an emergency requirement as defined in the Balanced Budget and Emergency Deficit
Control Act of 1985, as amended, is transmitted by the President
to the Congress: Provided further, That the entire amount is designated by the Congress as an emergency requirement pursuant
to section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act: Provided further, That the funding under this
heading shall only be made available upon the submission of a
certification by the Secretary of Housing and Urban Development
to the Committees on Appropriations that all funds committed,
expended, or obligated under this heading in the Departments
of Veterans Affairs and Housing and Urban Development, Independent Agencies Appropriations Act, 2000 were committed, expended
or obligated in compliance with the Antideficiency Act (31 U.S.C.
1341).
SEC. 401. Appropriations made by this title are available immediately upon enactment of this Act.
This Act may be cited as the ‘‘Legislative Branch Appropriations
Act, 2001’’.
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–125
APPENDIX C—H.R. 5658
That the following sums are appropriated, out of any money in
the Treasury not otherwise appropriated, for the Treasury Department, the United States Postal Service, the Executive Office of
the President, and certain Independent Agencies for the fiscal year
ending September 30, 2001, and for other purposes, namely:
TITLE I—DEPARTMENT OF THE TREASURY
DEPARTMENTAL OFFICES
SALARIES AND EXPENSES
For necessary expenses of the Departmental Offices including
operation and maintenance of the Treasury Building and Annex;
hire of passenger motor vehicles; maintenance, repairs, and
improvements of, and purchase of commercial insurance policies
for, real properties leased or owned overseas, when necessary for
the performance of official business; not to exceed $2,900,000 for
official travel expenses; not to exceed $3,813,000, to remain available until expended for information technology modernization
requirements; not to exceed $150,000 for official reception and representation expenses; not to exceed $258,000 for unforeseen emergencies of a confidential nature, to be allocated and expended under
the direction of the Secretary of the Treasury and to be accounted
for solely on his certificate, $156,315,000: Provided, That the Office
of Foreign Assets Control shall be funded at no less than
$11,439,000: Provided further, That of these amounts $2,900,000
is available for grants to State and local law enforcement groups
to help fight money laundering.
DEPARTMENT-WIDE SYSTEMS
(INCLUDING
AND
CAPITAL INVESTMENTS PROGRAMS
TRANSFER OF FUNDS)
For development and acquisition of automatic data processing
equipment, software, and services for the Department of the Treasury, $47,287,000, to remain available until expended: Provided,
That these funds shall be transferred to accounts and in amounts
as necessary to satisfy the requirements of the Department’s offices,
bureaus, and other organizations: Provided further, That this transfer authority shall be in addition to any other transfer authority
provided in this Act: Provided further, That none of the funds
appropriated shall be used to support or supplement the Internal
Revenue Service appropriations for Information Systems.
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114 STAT. 2763A–126
PUBLIC LAW 106–554—APPENDIX C
OFFICE
OF INSPECTOR
GENERAL
SALARIES AND EXPENSES
For necessary expenses of the Office of Inspector General in
carrying out the provisions of the Inspector General Act of 1978,
as amended, not to exceed $2,000,000 for official travel expenses,
including hire of passenger motor vehicles; and not to exceed
$100,000 for unforeseen emergencies of a confidential nature, to
be allocated and expended under the direction of the Inspector
General of the Treasury, $32,899,000.
TREASURY INSPECTOR GENERAL
FOR
TAX ADMINISTRATION
SALARIES AND EXPENSES
For necessary expenses of the Treasury Inspector General for
Tax Administration in carrying out the Inspector General Act of
1978, as amended, including purchase (not to exceed 150 for replacement only for police-type use) and hire of passenger motor vehicles
(31 U.S.C. 1343(b)); services authorized by 5 U.S.C. 3109, at such
rates as may be determined by the Inspector General for Tax
Administration; not to exceed $6,000,000 for official travel expenses;
and not to exceed $500,000 for unforeseen emergencies of a confidential nature, to be allocated and expended under the direction of
the Inspector General for Tax Administration, $118,427,000.
TREASURY BUILDING
AND
ANNEX REPAIR
AND
RESTORATION
For the repair, alteration, and improvement of the Treasury
Building and Annex, $31,000,000, to remain available until
expended.
EXPANDED ACCESS
(INCLUDING
TO
FINANCIAL SERVICES
TRANSFER OF FUNDS)
To develop and implement programs to expand access to financial services for low- and moderate-income individuals, $2,000,000,
to remain available until expended: Provided, That of these funds,
such sums as may be necessary may be transferred to accounts
of the Department’s offices, bureaus, and other organizations: Provided further, That this transfer authority shall be in addition
to any other transfer authority provided in this Act.
FINANCIAL CRIMES ENFORCEMENT NETWORK
SALARIES AND EXPENSES
For necessary expenses of the Financial Crimes Enforcement
Network, including hire of passenger motor vehicles; travel expenses
of non-Federal law enforcement personnel to attend meetings concerned with financial intelligence activities, law enforcement, and
financial regulation; not to exceed $14,000 for official reception
and representation expenses; and for assistance to Federal law
enforcement agencies, with or without reimbursement, $37,576,000,
of which not to exceed $2,800,000 shall remain available until
September 30, 2003; and of which $2,275,000 shall remain available
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–127
until September 30, 2002: Provided, That funds appropriated in
this account may be used to procure personal services contracts.
COUNTERTERRORISM FUND
For necessary expenses, as determined by the Secretary,
$55,000,000, to remain available until expended, to reimburse any
Department of the Treasury organization for the costs of providing
support to counter, investigate, or prosecute terrorism, including
payment of rewards in connection with these activities: Provided,
That the entire amount is designated by the Congress as an emergency requirement pursuant to section 251(b)(2)(A) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended:
Provided further, That the entire amount shall be available only
to the extent that an official budget request for a specific dollar
amount that includes designation of the entire amount of the
request as an emergency requirement as defined in such Act is
transmitted by the President to the Congress.
FEDERAL LAW ENFORCEMENT TRAINING CENTER
SALARIES AND EXPENSES
For necessary expenses of the Federal Law Enforcement Training Center, as a bureau of the Department of the Treasury, including materials and support costs of Federal law enforcement basic
training; purchase (not to exceed 52 for police-type use, without
regard to the general purchase price limitation) and hire of passenger motor vehicles; for expenses for student athletic and related
activities; uniforms without regard to the general purchase price
limitation for the current fiscal year; the conducting of and participating in firearms matches and presentation of awards; for public
awareness and enhancing community support of law enforcement
training; not to exceed $11,500 for official reception and representation expenses; room and board for student interns; and services
as authorized by 5 U.S.C. 3109, $94,483,000, of which up to
$17,043,000 for materials and support costs of Federal law enforcement basic training shall remain available until September 30,
2003: Provided, That the Center is authorized to accept and use
gifts of property, both real and personal, and to accept services,
for authorized purposes, including funding of a gift of intrinsic
value which shall be awarded annually by the Director of the
Center to the outstanding student who graduated from a basic
training program at the Center during the previous fiscal year,
which shall be funded only by gifts received through the Center’s
gift authority: Provided further, That notwithstanding any other
provision of law, students attending training at any Federal Law
Enforcement Training Center site shall reside in on-Center or Center-provided housing, insofar as available and in accordance with
Center policy: Provided further, That funds appropriated in this
account shall be available, at the discretion of the Director, for
the following: training United States Postal Service law enforcement
personnel and Postal police officers; State and local government
law enforcement training on a space-available basis; training of
foreign law enforcement officials on a space-available basis with
reimbursement of actual costs to this appropriation, except that
reimbursement may be waived by the Secretary for law enforcement
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114 STAT. 2763A–128
PUBLIC LAW 106–554—APPENDIX C
training activities in foreign countries undertaken pursuant to section 801 of the Antiterrorism and Effective Death Penalty Act
of 1996, Public Law 104–32; training of private sector security
officials on a space-available basis with reimbursement of actual
costs to this appropriation; and travel expenses of non-Federal
personnel to attend course development meetings and training sponsored by the Center: Provided further, That the Center is authorized
to obligate funds in anticipation of reimbursements from agencies
receiving training sponsored by the Federal Law Enforcement
Training Center, except that total obligations at the end of the
fiscal year shall not exceed total budgetary resources available
at the end of the fiscal year: Provided further, That the Federal
Law Enforcement Training Center is authorized to provide training
for the Gang Resistance Education and Training program to Federal
and non-Federal personnel at any facility in partnership with the
Bureau of Alcohol, Tobacco and Firearms: Provided further, That
the Federal Law Enforcement Training Center is authorized to
provide short-term medical services for students undergoing training at the Center.
ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED
EXPENSES
For expansion of the Federal Law Enforcement Training Center,
for acquisition of necessary additional real property and facilities,
and for ongoing maintenance, facility improvements, and related
expenses, $29,205,000, to remain available until expended.
INTERAGENCY LAW ENFORCEMENT
INTERAGENCY CRIME AND DRUG ENFORCEMENT
For expenses necessary to conduct investigations and convict
offenders involved in organized crime drug trafficking, including
cooperative efforts with State and local law enforcement, as it
relates to the Treasury Department law enforcement violations
such as money laundering, violent crime, and smuggling,
$103,476,000, of which $7,827,000 shall remain available until
expended.
FINANCIAL MANAGEMENT SERVICE
SALARIES AND EXPENSES
For necessary expenses of the Financial Management Service,
$206,851,000, of which not to exceed $10,635,000 shall remain
available until September 30, 2003, for information systems modernization initiatives; and of which not to exceed $2,500 shall be
available for official reception and representation expenses.
BUREAU
OF
ALCOHOL, TOBACCO
AND
FIREARMS
SALARIES AND EXPENSES
For necessary expenses of the Bureau of Alcohol, Tobacco and
Firearms, including purchase of not to exceed 812 vehicles for
police-type use, of which 650 shall be for replacement only, and
hire of passenger motor vehicles; hire of aircraft; services of expert
witnesses at such rates as may be determined by the Director;
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–129
for payment of per diem and/or subsistence allowances to employees
where a major investigative assignment requires an employee to
work 16 hours or more per day or to remain overnight at his
or her post of duty; not to exceed $20,000 for official reception
and representation expenses; for training of State and local law
enforcement agencies with or without reimbursement, including
training in connection with the training and acquisition of canines
for explosives and fire accelerants detection; not to exceed $50,000
for cooperative research and development programs for Laboratory
Services and Fire Research Center activities; and provision of laboratory assistance to State and local agencies, with or without
reimbursement, $768,695,000, of which not to exceed $1,000,000
shall be available for the payment of attorneys’ fees as provided
by 18 U.S.C. 924(d)(2); of which up to $2,000,000 shall be available
for the equipping of any vessel, vehicle, equipment, or aircraft
available for official use by a State or local law enforcement agency
if the conveyance will be used in joint law enforcement operations
with the Bureau of Alcohol, Tobacco and Firearms and for the
payment of overtime salaries including Social Security and Medicare, travel, fuel, training, equipment, supplies, and other similar
costs of State and local law enforcement personnel, including sworn
officers and support personnel, that are incurred in joint operations
with the Bureau of Alcohol, Tobacco and Firearms: Provided, That
no funds made available by this or any other Act may be used
to transfer the functions, missions, or activities of the Bureau
of Alcohol, Tobacco and Firearms to other agencies or Departments
in fiscal year 2001: Provided further, That no funds appropriated
herein shall be available for salaries or administrative expenses
in connection with consolidating or centralizing, within the Department of the Treasury, the records, or any portion thereof, of acquisition and disposition of firearms maintained by Federal firearms
licensees: Provided further, That no funds appropriated herein shall
be used to pay administrative expenses or the compensation of
any officer or employee of the United States to implement an
amendment or amendments to 27 CFR 178.118 or to change the
definition of ‘‘Curios or relics’’ in 27 CFR 178.11 or remove any
item from ATF Publication 5300.11 as it existed on January 1,
1994: Provided further, That none of the funds appropriated herein
shall be available to investigate or act upon applications for relief
from Federal firearms disabilities under 18 U.S.C. 925(c): Provided
further, That such funds shall be available to investigate and act
upon applications filed by corporations for relief from Federal firearms disabilities under 18 U.S.C. 925(c): Provided further, That
no funds under this Act may be used to electronically retrieve
information gathered pursuant to 18 U.S.C. 923(g)(4) by name
or any personal identification code.
UNITED STATES CUSTOMS SERVICE
SALARIES AND EXPENSES
For necessary expenses of the United States Customs Service,
including purchase and lease of up to 1,050 motor vehicles of
which 550 are for replacement only and of which 1,030 are for
police-type use and commercial operations; hire of motor vehicles;
contracting with individuals for personal services abroad; not to
exceed $40,000 for official reception and representation expenses;
and awards of compensation to informers, as authorized by any
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114 STAT. 2763A–130
PUBLIC LAW 106–554—APPENDIX C
Act enforced by the United States Customs Service, $1,863,765,000,
of which such sums as become available in the Customs User
Fee Account, except sums subject to section 13031(f )(3) of the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (19 U.S.C. 58c(f )(3)), shall be derived from that Account; of
the total, not to exceed $150,000 shall be available for payment
for rental space in connection with preclearance operations; not
to exceed $4,000,000 shall be available until expended for research;
of which not less than $100,000 shall be available to promote
public awareness of the child pornography tipline; of which not
less than $200,000 shall be available for Project Alert; not to exceed
$5,000,000 shall be available until expended for conducting special
operations pursuant to 19 U.S.C. 2081; not to exceed $8,000,000
shall be available until expended for the procurement of automation
infrastructure items, including hardware, software, and installation;
and not to exceed $5,000,000 shall be available until expended
for repairs to Customs facilities: Provided, That uniforms may be
purchased without regard to the general purchase price limitation
for the current fiscal year: Provided further, That notwithstanding
any other provision of law, the fiscal year aggregate overtime limitation prescribed in subsection 5(c)(1) of the Act of February 13,
1911 (19 U.S.C. 261 and 267) shall be $30,000.
HARBOR MAINTENANCE FEE COLLECTION
(INCLUDING
TRANSFER OF FUNDS)
For administrative expenses related to the collection of the
Harbor Maintenance Fee, pursuant to Public Law 103–182,
$3,000,000, to be derived from the Harbor Maintenance Trust Fund
and to be transferred to and merged with the Customs ‘‘Salaries
and Expenses’’ account for such purposes.
OPERATION, MAINTENANCE AND PROCUREMENT, AIR AND MARINE
INTERDICTION PROGRAMS
For expenses, not otherwise provided for, necessary for the
operation and maintenance of marine vessels, aircraft, and other
related equipment of the Air and Marine Programs, including operational training and mission-related travel, and rental payments
for facilities occupied by the air or marine interdiction and demand
reduction programs, the operations of which include the following:
the interdiction of narcotics and other goods; the provision of support to Customs and other Federal, State, and local agencies in
the enforcement or administration of laws enforced by the Customs
Service; and, at the discretion of the Commissioner of Customs,
the provision of assistance to Federal, State, and local agencies
in other law enforcement and emergency humanitarian efforts,
$133,228,000, which shall remain available until expended: Provided, That no aircraft or other related equipment, with the exception of aircraft which is one of a kind and has been identified
as excess to Customs requirements and aircraft which has been
damaged beyond repair, shall be transferred to any other Federal
agency, department, or office outside of the Department of the
Treasury, during fiscal year 2001 without the prior approval of
the Committees on Appropriations.
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–131
AUTOMATION MODERNIZATION
For expenses not otherwise provided for Customs automated
systems, $258,400,000, to remain available until expended, of which
$5,400,000 shall be for the International Trade Data System, and
not less than $130,000,000 shall be for the development of the
Automated Commercial Environment: Provided, That none of the
funds appropriated under this heading may be obligated for the
Automated Commercial Environment until the United States Customs Service prepares and submits to the Committees on Appropriations a final plan for expenditure that: (1) meets the capital planning and investment control review requirements established by
the Office of Management and Budget, including OMB Circular
A–11, part 3; (2) complies with the United States Customs Service’s
Enterprise Information Systems Architecture; (3) complies with the
acquisition rules, requirements, guidelines, and systems acquisition
management practices of the Federal Government; (4) is reviewed
and approved by the Customs Investment Review Board, the
Department of the Treasury, and the Office of Management and
Budget; and (5) is reviewed by the General Accounting Office:
Provided further, That none of the funds appropriated under this
heading may be obligated for the Automated Commercial Environment until that final expenditure plan has been approved by the
Committees on Appropriations.
BUREAU
OF THE
PUBLIC DEBT
ADMINISTERING THE PUBLIC DEBT
For necessary expenses connected with any public-debt issues
of the United States, $187,301,000, of which not to exceed $2,500
shall be available for official reception and representation expenses,
and of which not to exceed $2,000,000 shall remain available until
expended for systems modernization: Provided, That the sum appropriated herein from the General Fund for fiscal year 2001 shall
be reduced by not more than $4,400,000 as definitive security
issue fees and Treasury Direct Investor Account Maintenance fees
are collected, so as to result in a final fiscal year 2001 appropriation
from the General Fund estimated at $182,901,000. In addition,
$23,600, to be derived from the Oil Spill Liability Trust Fund
to reimburse the Bureau for administrative and personnel expenses
for financial management of the Fund, as authorized by section
1012 of Public Law 101–380; and in addition, to be appropriated
from the General Fund, such sums as may be necessary for administrative expenses in association with the South Dakota Trust Fund
and the Cheyenne River Sioux Tribe Terrestrial Wildlife Restoration
and Lower Brule Sioux Tribe Terrestrial Restoration Trust Fund,
as authorized by sections 603(f ) and 604(f ) of Public Law 106–
53.
INTERNAL REVENUE SERVICE
PROCESSING, ASSISTANCE, AND MANAGEMENT
For necessary expenses of the Internal Revenue Service for
tax returns processing; revenue accounting; tax law and account
assistance to taxpayers by telephone and correspondence; providing
an independent taxpayer advocate within the Service; programs
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114 STAT. 2763A–132
PUBLIC LAW 106–554—APPENDIX C
to match information returns and tax returns; management services; rent and utilities; and services as authorized by 5 U.S.C.
3109, at such rates as may be determined by the Commissioner,
$3,567,001,000, of which up to $3,950,000 shall be for the Tax
Counseling for the Elderly Program, and of which not to exceed
$25,000 shall be for official reception and representation expenses.
TAX LAW ENFORCEMENT
For necessary expenses of the Internal Revenue Service for
determining and establishing tax liabilities; providing litigation support; issuing technical rulings; providing service to tax exempt
customers, including employee plans, tax exempt organizations,
and government entities; examining employee plans and exempt
organizations; conducting criminal investigation and enforcement
activities; securing unfiled tax returns; collecting unpaid accounts;
compiling statistics of income and conducting compliance research;
purchase (for police-type use, not to exceed 850) and hire of passenger motor vehicles (31 U.S.C. 1343(b)); and services as authorized by 5 U.S.C. 3109, at such rates as may be determined by
the Commissioner, $3,382,402,000, of which not to exceed
$1,000,000 shall remain available until September 30, 2003, for
research.
EARNED INCOME TAX CREDIT COMPLIANCE INITIATIVE
For funding essential earned income tax credit compliance and
error reduction initiatives pursuant to section 5702 of the Balanced
Budget Act of 1997 (Public Law 105–33), $145,000,000, of which
not to exceed $10,000,000 may be used to reimburse the Social
Security Administration for the costs of implementing section 1090
of the Taxpayer Relief Act of 1997.
INFORMATION SYSTEMS
For necessary expenses of the Internal Revenue Service for
information systems and telecommunications support, including
developmental information systems and operational information
systems; the hire of passenger motor vehicles (31 U.S.C. 1343(b));
and services as authorized by 5 U.S.C. 3109, at such rates as
may be determined by the Commissioner, $1,545,090,000 which
shall remain available until September 30, 2002.
ADMINISTRATIVE PROVISIONS—INTERNAL REVENUE SERVICE
SEC. 101. Not to exceed 5 percent of any appropriation made
available in this Act to the Internal Revenue Service may be transferred to any other Internal Revenue Service appropriation upon
the advance approval of the Committees on Appropriations.
SEC. 102. The Internal Revenue Service shall maintain a training program to ensure that Internal Revenue Service employees
are trained in taxpayers’ rights, in dealing courteously with the
taxpayers, and in cross-cultural relations.
SEC. 103. The Internal Revenue Service shall institute and
enforce policies and procedures that will safeguard the confidentiality of taxpayer information.
SEC. 104. Funds made available by this or any other Act to
the Internal Revenue Service shall be available for improved facilities and increased manpower to provide sufficient and effective
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–133
1–800 help line service for taxpayers. The Commissioner shall continue to make the improvement of the Internal Revenue Service
1–800 help line service a priority and allocate resources necessary
to increase phone lines and staff to improve the Internal Revenue
Service 1–800 help line service.
UNITED STATES SECRET SERVICE
SALARIES AND EXPENSES
For necessary expenses of the United States Secret Service,
including purchase of not to exceed 844 vehicles for police-type
use, of which 541 shall be for replacement only, and hire of passenger motor vehicles; purchase of American-made side-car compatible motorcycles; hire of aircraft; training and assistance requested
by State and local governments, which may be provided without
reimbursement; services of expert witnesses at such rates as may
be determined by the Director; rental of buildings in the District
of Columbia, and fencing, lighting, guard booths, and other facilities
on private or other property not in Government ownership or control, as may be necessary to perform protective functions; for payment of per diem and/or subsistence allowances to employees where
a protective assignment during the actual day or days of the visit
of a protectee require an employee to work 16 hours per day
or to remain overnight at his or her post of duty; the conducting
of and participating in firearms matches; presentation of awards;
for travel of Secret Service employees on protective missions without
regard to the limitations on such expenditures in this or any other
Act if approval is obtained in advance from the Committees on
Appropriations; for research and development; for making grants
to conduct behavioral research in support of protective research
and operations; not to exceed $25,000 for official reception and
representation expenses; not to exceed $100,000 to provide technical
assistance and equipment to foreign law enforcement organizations
in counterfeit investigations; for payment in advance for commercial
accommodations as may be necessary to perform protective functions; and for uniforms without regard to the general purchase
price limitation for the current fiscal year, $823,800,000, of which
$3,633,000 shall be available as a grant for activities related to
the investigations of exploited children and shall remain available
until expended: Provided, That up to $18,000,000 provided for
protective travel shall remain available until September 30, 2002.
ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED
EXPENSES
For necessary expenses of construction, repair, alteration, and
improvement of facilities, $8,941,000, to remain available until
expended.
GENERAL PROVISIONS—DEPARTMENT
OF THE
TREASURY
SEC. 110. Any obligation or expenditure by the Secretary of
the Treasury in connection with law enforcement activities of a
Federal agency or a Department of the Treasury law enforcement
organization in accordance with 31 U.S.C. 9703(g)(4)(B) from unobligated balances remaining in the Fund on September 30, 2001,
shall be made in compliance with reprogramming guidelines.
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114 STAT. 2763A–134
PUBLIC LAW 106–554—APPENDIX C
SEC. 111. Appropriations to the Department of the Treasury
in this Act shall be available for uniforms or allowances therefor,
as authorized by law (5 U.S.C. 5901), including maintenance,
repairs, and cleaning; purchase of insurance for official motor
vehicles operated in foreign countries; purchase of motor vehicles
without regard to the general purchase price limitations for vehicles
purchased and used overseas for the current fiscal year; entering
into contracts with the Department of State for the furnishing
of health and medical services to employees and their dependents
serving in foreign countries; and services authorized by 5 U.S.C.
3109.
SEC. 112. The funds provided to the Bureau of Alcohol, Tobacco
and Firearms for fiscal year 2001 in this Act for the enforcement
of the Federal Alcohol Administration Act shall be expended in
a manner so as not to diminish enforcement efforts with respect
to section 105 of the Federal Alcohol Administration Act.
SEC. 113. Not to exceed 2 percent of any appropriations in
this Act made available to the Federal Law Enforcement Training
Center, Financial Crimes Enforcement Network, Bureau of Alcohol,
Tobacco and Firearms, United States Customs Service, and United
States Secret Service may be transferred between such appropriations upon the advance approval of the Committees on Appropriations. No transfer may increase or decrease any such appropriation
by more than 2 percent.
SEC. 114. Not to exceed 2 percent of any appropriations in
this Act made available to the Departmental Offices, Office of
Inspector General, Treasury Inspector General for Tax Administration, Financial Management Service, and Bureau of the Public
Debt, may be transferred between such appropriations upon the
advance approval of the Committees on Appropriations. No transfer
may increase or decrease any such appropriation by more than
2 percent.
SEC. 115. Not to exceed 2 percent of any appropriation made
available in this Act to the Internal Revenue Service may be transferred to the Treasury Inspector General for Tax Administration’s
appropriation upon the advance approval of the Committees on
Appropriations. No transfer may increase or decrease any such
appropriation by more than 2 percent.
SEC. 116. Of the funds available for the purchase of law enforcement vehicles, no funds may be obligated until the Secretary of
the Treasury certifies that the purchase by the respective Treasury
bureau is consistent with Departmental vehicle management principles: Provided, That the Secretary may delegate this authority
to the Assistant Secretary for Management.
SEC. 117. None of the funds appropriated in this Act or otherwise available to the Department of the Treasury or the Bureau
of Engraving and Printing may be used to redesign the $1 Federal
Reserve note.
SEC. 118. Hereafter, funds made available by this or any other
Act may be used to pay premium pay for protective services authorized by section 3056(a) of title 18, United States Code, without
regard to the limitation on the rate of pay payable during a pay
period contained in section 5547(c)(2) of title 5, United States Code,
except that such premium pay shall not be payable to an employee
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–135
to the extent that the aggregate of the employee’s basic and premium pay for the year would otherwise exceed the annual equivalent of that limitation. The term premium pay refers to the provisions of law cited in the first sentence of section 5547(a) of title
5, United States Code. Payment of additional premium pay payable
under this section may be made in a lump sum on the last payday
of the calendar year.
SEC. 119. The Secretary of the Treasury may transfer funds
from ‘‘Salaries and Expenses’’, Financial Management Service, to
the Debt Services Account as necessary to cover the costs of debt
collection: Provided, That such amounts shall be reimbursed to
such Salaries and Expenses account from debt collections received
in the Debt Services Account.
SEC. 120. Under the heading of Treasury Franchise Fund in
Public Law 104–208, delete the following: the phrases ‘‘pilot, as
authorized by section 403 of Public Law 103–356,’’; and ‘‘as provided
in such section’’; and the final proviso. After the phrase ‘‘to be
available’’, insert ‘‘without fiscal year limitation,’’. After the phrase,
‘‘established in the Treasury a franchise fund’’, insert, ‘‘until October
1, 2002’’.
SEC. 121. Notwithstanding any other provision of law, no
reorganization of the field operations of the United States Customs
Service Office of Field Operations shall result in a reduction in
service to the area served by the Port of Racine, Wisconsin, below
the level of service provided in fiscal year 2000.
SEC. 122. Notwithstanding any other provision of law, the
Bureau of Alcohol, Tobacco and Firearms shall reimburse the subcontractor that provided services in 1993 and 1994 pursuant to
Bureau of Alcohol, Tobacco and Firearms contract number TATF
93–3 from amounts appropriated for fiscal year 2001 or unobligated
balances from prior fiscal years, and such reimbursement shall
cover the cost of all professional services rendered, plus interest
calculated in accordance with the Contract Dispute Act of 1978
(41 U.S.C. 601 et seq.).
This title may be cited as the ‘‘Treasury Department Appropriations Act, 2001’’.
TITLE II—POSTAL SERVICE
PAYMENT
TO THE
POSTAL SERVICE FUND
For payment to the Postal Service Fund for revenue forgone
on free and reduced rate mail, pursuant to subsections (c) and
(d) of section 2401 of title 39, United States Code, $96,093,000,
of which $67,093,000 shall not be available for obligation until
October 1, 2001: Provided, That mail for overseas voting and mail
for the blind shall continue to be free: Provided further, That
6-day delivery and rural delivery of mail shall continue at not
less than the 1983 level: Provided further, That none of the funds
made available to the Postal Service by this Act shall be used
to implement any rule, regulation, or policy of charging any officer
or employee of any State or local child support enforcement agency,
or any individual participating in a State or local program of child
support enforcement, a fee for information requested or provided
concerning an address of a postal customer: Provided further, That
none of the funds provided in this Act shall be used to consolidate
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114 STAT. 2763A–136
PUBLIC LAW 106–554—APPENDIX C
or close small rural and other small post offices in fiscal year
2001.
This title may be cited as the ‘‘Postal Service Appropriations
Act, 2001’’.
TITLE III—EXECUTIVE OFFICE OF THE PRESIDENT AND
FUNDS APPROPRIATED TO THE PRESIDENT
COMPENSATION
OF THE
PRESIDENT
AND THE
WHITE HOUSE OFFICE
COMPENSATION OF THE PRESIDENT
For compensation of the President, including an expense allowance at the rate of $50,000 per annum as authorized by 3 U.S.C.
102, $390,000: Provided, That none of the funds made available
for official expenses shall be expended for any other purpose and
any unused amount shall revert to the Treasury pursuant to section
1552 of title 31, United States Code: Provided further, That none
of the funds made available for official expenses shall be considered
as taxable to the President.
SALARIES AND EXPENSES
For necessary expenses for the White House as authorized
by law, including not to exceed $3,850,000 for services as authorized
by 5 U.S.C. 3109 and 3 U.S.C. 105; subsistence expenses as authorized by 3 U.S.C. 105, which shall be expended and accounted
for as provided in that section; hire of passenger motor vehicles,
newspapers, periodicals, teletype news service, and travel (not to
exceed $100,000 to be expended and accounted for as provided
by 3 U.S.C. 103); and not to exceed $19,000 for official entertainment expenses, to be available for allocation within the Executive
Office of the President, $53,288,000: Provided, That $9,072,000
of the funds appropriated shall be available for reimbursements
to the White House Communications Agency.
EXECUTIVE RESIDENCE
AT THE
WHITE HOUSE
OPERATING EXPENSES
For the care, maintenance, repair and alteration, refurnishing,
improvement, heating, and lighting, including electric power and
fixtures, of the Executive Residence at the White House and official
entertainment expenses of the President, $10,900,000, to be
expended and accounted for as provided by 3 U.S.C. 105, 109,
110, and 112–114.
REIMBURSABLE EXPENSES
For the reimbursable expenses of the Executive Residence at
the White House, such sums as may be necessary: Provided, That
all reimbursable operating expenses of the Executive Residence
shall be made in accordance with the provisions of this paragraph:
Provided further, That, notwithstanding any other provision of law,
such amount for reimbursable operating expenses shall be the exclusive authority of the Executive Residence to incur obligations and
to receive offsetting collections, for such expenses: Provided further,
That the Executive Residence shall require each person sponsoring
a reimbursable political event to pay in advance an amount equal
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–137
to the estimated cost of the event, and all such advance payments
shall be credited to this account and remain available until
expended: Provided further, That the Executive Residence shall
require the national committee of the political party of the President
to maintain on deposit $25,000, to be separately accounted for
and available for expenses relating to reimbursable political events
sponsored by such committee during such fiscal year: Provided
further, That the Executive Residence shall ensure that a written
notice of any amount owed for a reimbursable operating expense
under this paragraph is submitted to the person owing such amount
within 60 days after such expense is incurred, and that such amount
is collected within 30 days after the submission of such notice:
Provided further, That the Executive Residence shall charge interest
and assess penalties and other charges on any such amount that
is not reimbursed within such 30 days, in accordance with the
interest and penalty provisions applicable to an outstanding debt
on a United States Government claim under section 3717 of title
31, United States Code: Provided further, That each such amount
that is reimbursed, and any accompanying interest and charges,
shall be deposited in the Treasury as miscellaneous receipts: Provided further, That the Executive Residence shall prepare and
submit to the Committees on Appropriations, by not later than
90 days after the end of the fiscal year covered by this Act, a
report setting forth the reimbursable operating expenses of the
Executive Residence during the preceding fiscal year, including
the total amount of such expenses, the amount of such total that
consists of reimbursable official and ceremonial events, the amount
of such total that consists of reimbursable political events, and
the portion of each such amount that has been reimbursed as
of the date of the report: Provided further, That the Executive
Residence shall maintain a system for the tracking of expenses
related to reimbursable events within the Executive Residence that
includes a standard for the classification of any such expense as
political or nonpolitical: Provided further, That no provision of this
paragraph may be construed to exempt the Executive Residence
from any other applicable requirement of subchapter I or II of
chapter 37 of title 31, United States Code.
WHITE HOUSE REPAIR AND RESTORATION
For the repair, alteration, and improvement of the Executive
Residence at the White House, $968,000, to remain available until
expended, for projects for required maintenance, safety and health
issues, Presidential transition, telecommunications infrastructure
repair, and continued preventive maintenance.
SPECIAL ASSISTANCE TO THE PRESIDENT AND THE OFFICIAL
RESIDENCE OF THE VICE PRESIDENT
SALARIES AND EXPENSES
For necessary expenses to enable the Vice President to provide
assistance to the President in connection with specially assigned
functions; services as authorized by 5 U.S.C. 3109 and 3 U.S.C.
106, including subsistence expenses as authorized by 3 U.S.C. 106,
which shall be expended and accounted for as provided in that
section; and hire of passenger motor vehicles, $3,673,000.
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114 STAT. 2763A–138
PUBLIC LAW 106–554—APPENDIX C
OPERATING EXPENSES
(INCLUDING
TRANSFER OF FUNDS)
For the care, operation, refurnishing, improvement, heating
and lighting, including electric power and fixtures, of the official
residence of the Vice President; the hire of passenger motor vehicles;
and not to exceed $90,000 for official entertainment expenses of
the Vice President, to be accounted for solely on his certificate,
$354,000: Provided, That advances or repayments or transfers from
this appropriation may be made to any department or agency for
expenses of carrying out such activities.
COUNCIL
OF
ECONOMIC ADVISERS
SALARIES AND EXPENSES
For necessary expenses of the Council of Economic Advisers
in carrying out its functions under the Employment Act of 1946
(15 U.S.C. 1021), $4,110,000.
OFFICE
OF
POLICY DEVELOPMENT
SALARIES AND EXPENSES
For necessary expenses of the Office of Policy Development,
including services as authorized by 5 U.S.C. 3109 and 3 U.S.C.
107, $4,032,000.
NATIONAL SECURITY COUNCIL
SALARIES AND EXPENSES
For necessary expenses of the National Security Council, including services as authorized by 5 U.S.C. 3109, $7,165,000.
OFFICE
OF
ADMINISTRATION
SALARIES AND EXPENSES
For necessary expenses of the Office of Administration, including services as authorized by 5 U.S.C. 3109 and 3 U.S.C. 107,
and hire of passenger motor vehicles, $43,737,000, of which
$9,905,000 shall be available until September 30, 2002 for a capital
investment plan which provides for the continued modernization
of the information technology infrastructure.
OFFICE
OF
MANAGEMENT
AND
BUDGET
SALARIES AND EXPENSES
For necessary expenses of the Office of Management and
Budget, including hire of passenger motor vehicles and services
as authorized by 5 U.S.C. 3109, $68,786,000, of which not to exceed
$5,000,000 shall be available to carry out the provisions of chapter
35 of title 44, United States Code: Provided, That, as provided
in 31 U.S.C. 1301(a), appropriations shall be applied only to the
objects for which appropriations were made except as otherwise
provided by law: Provided further, That none of the funds appropriated in this Act for the Office of Management and Budget may
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–139
be used for the purpose of reviewing any agricultural marketing
orders or any activities or regulations under the provisions of the
Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 601 et
seq.): Provided further, That none of the funds made available
for the Office of Management and Budget by this Act may be
expended for the altering of the transcript of actual testimony
of witnesses, except for testimony of officials of the Office of Management and Budget, before the Committees on Appropriations or
the Committees on Veterans’ Affairs or their subcommittees: Provided further, That the preceding shall not apply to printed hearings
released by the Committees on Appropriations or the Committees
on Veterans’ Affairs.
OFFICE
OF
NATIONAL DRUG CONTROL POLICY
SALARIES AND EXPENSES
(INCLUDING
TRANSFER OF FUNDS)
For necessary expenses of the Office of National Drug Control
Policy; for research activities pursuant to the Office of National
Drug Control Policy Reauthorization Act of 1998 (title VII of division
C of Public Law 105–277); not to exceed $8,000 for official reception
and representation expenses; and for participation in joint projects
or in the provision of services on matters of mutual interest with
nonprofit, research, or public organizations or agencies, with or
without reimbursement, $24,759,000, of which $2,100,000 shall
remain available until expended, consisting of $1,100,000 for policy
research and evaluation, and $1,000,000 for the National Alliance
for Model State Drug Laws, and up to $600,000 for the evaluation
of the Drug-Free Communities Act: Provided, That the Office is
authorized to accept, hold, administer, and utilize gifts, both real
and personal, public and private, without fiscal year limitation,
for the purpose of aiding or facilitating the work of the Office.
COUNTERDRUG TECHNOLOGY ASSESSMENT CENTER
(INCLUDING
TRANSFER OF FUNDS)
For necessary expenses for the Counterdrug Technology Assessment Center for research activities pursuant to the Office of
National Drug Control Policy Reauthorization Act of 1998 (title
VII of division C of Public Law 105–277), $29,053,000, which shall
remain available until expended, consisting of $15,803,000 for
counternarcotics research and development projects, and
$13,250,000 for the continued operation of the technology transfer
program: Provided, That the $15,803,000 for counter-narcotics
research and development projects shall be available for transfer
to other Federal departments or agencies.
FEDERAL DRUG CONTROL PROGRAMS
HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM
(INCLUDING
TRANSFER OF FUNDS)
For necessary expenses of the Office of National Drug Control
Policy’s High Intensity Drug Trafficking Areas Program,
$206,500,000 for drug control activities consistent with the approved
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114 STAT. 2763A–140
PUBLIC LAW 106–554—APPENDIX C
strategy for each of the designated High Intensity Drug Trafficking
Areas, of which no less than 51 percent shall be transferred to
State and local entities for drug control activities, which shall
be obligated within 120 days of the date of the enactment of this
Act: Provided, That up to 49 percent, to remain available until
September 30, 2002, may be transferred to Federal agencies and
departments at a rate to be determined by the Director: Provided
further, That, of this latter amount, $1,800,000 shall be used for
auditing services: Provided further, That HIDTAs designated as
of September 30, 2000, shall be funded at fiscal year 2000 levels
unless the Director submits to the Committees, and the Committees
approve, justification for changes in those levels based on clearly
articulated priorities for the HIDTA program, as well as published
ONDCP performance measures of effectiveness.
SPECIAL FORFEITURE FUND
(INCLUDING
TRANSFER OF FUNDS)
For activities to support a national anti-drug campaign for
youth, and other purposes, authorized by Public Law 105–277,
$233,600,000, to remain available until expended: Provided, That
such funds may be transferred to other Federal departments and
agencies to carry out such activities: Provided further, That of
the funds provided, $185,000,000 shall be to support a national
media campaign, as authorized in the Drug-Free Media Campaign
Act of 1998: Provided further, That of the funds provided, $3,300,000
shall be made available to the United States Olympic Committee’s
anti-doping program no later than 30 days after the enactment
of this Act: Provided further, That of the funds provided,
$40,000,000 shall be to continue a program of matching grants
to drug-free communities, as authorized in the Drug-Free Communities Act of 1997: Provided further, That of the funds provided,
$1,000,000 shall be available to the National Drug Court Institute.
This title may be cited as the ‘‘Executive Office Appropriations
Act, 2001’’.
TITLE IV—INDEPENDENT AGENCIES
COMMITTEE
FOR
PURCHASE FROM PEOPLE WHO
SEVERELY DISABLED
ARE
BLIND
OR
SALARIES AND EXPENSES
For necessary expenses of the Committee for Purchase From
People Who Are Blind or Severely Disabled established by the
Act of June 23, 1971, Public Law 92–28, $4,158,000.
FEDERAL ELECTION COMMISSION
SALARIES AND EXPENSES
For necessary expenses to carry out the provisions of the Federal Election Campaign Act of 1971, as amended, $40,500,000,
of which no less than $4,689,500 shall be available for internal
automated data processing systems, and of which not to exceed
$5,000 shall be available for reception and representation expenses.
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–141
FEDERAL LABOR RELATIONS AUTHORITY
SALARIES AND EXPENSES
For necessary expenses to carry out functions of the Federal
Labor Relations Authority, pursuant to Reorganization Plan Numbered 2 of 1978, and the Civil Service Reform Act of 1978, including
services authorized by 5 U.S.C. 3109, including hire of experts
and consultants, hire of passenger motor vehicles, and rental of
conference rooms in the District of Columbia and elsewhere,
$25,058,000: Provided, That public members of the Federal Service
Impasses Panel may be paid travel expenses and per diem in
lieu of subsistence as authorized by law (5 U.S.C. 5703) for persons
employed intermittently in the Government service, and compensation as authorized by 5 U.S.C. 3109: Provided further, That notwithstanding 31 U.S.C. 3302, funds received from fees charged to nonFederal participants at labor-management relations conferences
shall be credited to and merged with this account, to be available
without further appropriation for the costs of carrying out these
conferences.
GENERAL SERVICES ADMINISTRATION
REAL PROPERTY ACTIVITIES
FEDERAL BUILDINGS FUND
LIMITATIONS ON AVAILABILITY OF REVENUE
(INCLUDING
TRANSFER OF FUNDS)
For an additional amount to be deposited in, and to be used
for the purposes of, the Fund established pursuant to section 210(f )
of the Federal Property and Administration Act of 1949, as amended
(40 U.S.C. 490(f )), $464,154,000. The revenues and collections
deposited into the Fund shall be available for necessary expenses
of real property management and related activities not otherwise
provided for, including operation, maintenance, and protection of
federally-owned and leased buildings; rental of buildings in the
District of Columbia; restoration of leased premises; moving governmental agencies (including space adjustments and telecommunications relocation expenses) in connection with the assignment,
allocation and transfer of space; contractual services incident to
cleaning or servicing buildings, and moving; repair and alteration
of federally-owned buildings including grounds, approaches and
appurtenances; care and safeguarding of sites; maintenance,
preservation, demolition, and equipment; acquisition of buildings
and sites by purchase, condemnation, or as otherwise authorized
by law; acquisition of options to purchase buildings and sites;
conversion and extension of federally-owned buildings; preliminary
planning and design of projects by contract or otherwise; construction of new buildings (including equipment for such buildings);
and payment of principal, interest, and any other obligations for
public buildings acquired by installment purchase and purchase
contract; in the aggregate amount of $5,971,509,000 of which: (1)
$472,176,000 shall remain available until expended for construction
(including funds for sites and expenses and associated design and
construction services) of additional projects at the following locations: California, Los Angeles, United States Courthouse; District
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114 STAT. 2763A–142
PUBLIC LAW 106–554—APPENDIX C
of Columbia, Bureau of Alcohol, Tobacco and Firearms Headquarters; Florida, Saint Petersburg, Combined Law Enforcement
Facility; Maryland, Montgomery County, Food and Drug Administration Consolidation; Michigan, Sault St. Marie, Border Station;
Mississippi, Biloxi-Gulfport, United States Courthouse; Montana,
Eureka/Roosville, Border Station; Virginia, Richmond, United
States Courthouse; Washington, Seattle, United States Courthouse:
Provided, That funding for any project identified above may be
exceeded to the extent that savings are effected in other such
projects, but not to exceed 10 percent of the amounts included
in an approved prospectus, if required, unless advance approval
is obtained from the Committees on Appropriations of a greater
amount: Provided further, That all funds for direct construction
projects shall expire on September 30, 2002, and remain in the
Federal Buildings Fund except for funds for projects as to which
funds for design or other funds have been obligated in whole or
in part prior to such date; (2) $671,193,000 shall remain available
until expended for repairs and alterations which includes associated
design and construction services: Provided further, That funds in
the Federal Buildings Fund for Repairs and Alterations shall, for
prospectus projects, be limited to the amount by project, as follows,
except each project may be increased by an amount not to exceed
10 percent unless advance approval is obtained from the Committees on Appropriations of a greater amount:
Repairs and alterations:
Arizona:
Phoenix, Federal Building Courthouse, $26,962,000
California:
Santa Ana, Federal Building, $27,864,000
District of Columbia:
Internal Revenue Service Headquarters (Phase 1),
$31,780,000
Main State Building, (Phase 3), $28,775,000
Maryland:
Woodlawn, SSA National Computer Center, $4,285,000
Michigan:
Detroit, McNamara Federal Building, $26,999,000
Missouri:
Kansas City, Richard Bolling Federal Building,
$25,882,000
Kansas City, Federal Building, 8930 Ward Parkway,
$8,964,000
Nebraska:
Omaha, Zorinsky Federal Building, $45,960,000
New York:
New York City, 40 Foley Square, $5,037,000
Ohio:
Cincinnati, Potter Stewart United States Courthouse,
$18,434,000
Pennsylvania:
Pittsburgh, United States Post Office-Courthouse,
$54,144,000
Utah:
Salt Lake City, Bennett Federal Building, $21,199,000
Virginia:
Reston, J.W. Powell Federal Building (Phase 2),
$22,993,000
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–143
Nationwide:
Design Program, $21,915,000
Energy Program, $5,000,000
Glass Fragment Retention Program, $5,000,000
Basic Repairs and Alterations, $290,000,000:
Provided further, That additional projects for which prospectuses
have been fully approved may be funded under this category only
if advance notice is transmitted to the Committees on Appropriations: Provided further, That the amounts provided in this or any
prior Act for ‘‘Repairs and Alterations’’ may be used to fund costs
associated with implementing security improvements to buildings
necessary to meet the minimum standards for security in accordance
with current law and in compliance with the reprogramming guidelines of the appropriate Committees of the House and Senate:
Provided further, That the difference between the funds appropriated and expended on any projects in this or any prior Act,
under the heading ‘‘Repairs and Alterations’’, may be transferred
to Basic Repairs and Alterations or used to fund authorized
increases in prospectus projects: Provided further, That all funds
for repairs and alterations prospectus projects shall expire on
September 30, 2002, and remain in the Federal Buildings Fund
except funds for projects as to which funds for design or other
funds have been obligated in whole or in part prior to such date:
Provided further, That the amount provided in this or any prior
Act for Basic Repairs and Alterations may be used to pay claims
against the Government arising from any projects under the heading ‘‘Repairs and Alterations’’ or used to fund authorized increases
in prospectus projects; (3) $185,369,000 for installment acquisition
payments including payments on purchase contracts which shall
remain available until expended; (4) $2,944,905,000 for rental of
space which shall remain available until expended; and (5)
$1,624,771,000 for building operations which shall remain available
until expended: Provided further, That in addition to amounts made
available herein, $276,400,000 shall be deposited to the Fund, to
become available on October 1, 2001, and remain available until
expended for the following construction projects (including funds
for sites and expenses and associated design and construction services): District of Columbia, United States Courthouse Annex; Florida, Miami, United States Courthouse; Massachusetts, Springfield,
United States Courthouse; New York, Buffalo, United States Courthouse: Provided further, That funding for any project identified
above may be exceeded to the extent that savings are effected
in other such projects, but not to exceed 10 percent of the amounts
included in an approved prospectus, if required, unless advance
approval is obtained from the Committees on Appropriations of
a greater amount: Provided further, That funds available to the
General Services Administration shall not be available for expenses
of any construction, repair, alteration and acquisition project for
which a prospectus, if required by the Public Buildings Act of
1959, as amended, has not been approved, except that necessary
funds may be expended for each project for required expenses
for the development of a proposed prospectus: Provided further,
That funds available in the Federal Buildings Fund may be
expended for emergency repairs when advance approval is obtained
from the Committees on Appropriations: Provided further, That
amounts necessary to provide reimbursable special services to other
agencies under section 210(f )(6) of the Federal Property and
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114 STAT. 2763A–144
PUBLIC LAW 106–554—APPENDIX C
Administrative Services Act of 1949, as amended (40 U.S.C.
490(f )(6)) and amounts to provide such reimbursable fencing, lighting, guard booths, and other facilities on private or other property
not in Government ownership or control as may be appropriate
to enable the United States Secret Service to perform its protective
functions pursuant to 18 U.S.C. 3056, shall be available from such
revenues and collections: Provided further, That revenues and collections and any other sums accruing to this Fund during fiscal
year 2001, excluding reimbursements under section 210(f )(6) of
the Federal Property and Administrative Services Act of 1949 (40
U.S.C. 490(f )(6)) in excess of $5,971,509,000 shall remain in the
Fund and shall not be available for expenditure except as authorized
in appropriations Acts.
POLICY AND OPERATIONS
For expenses authorized by law, not otherwise provided for,
for Government-wide policy and oversight activities associated with
asset management activities; utilization and donation of surplus
personal property; transportation; procurement and supply; Government-wide responsibilities relating to automated data management,
telecommunications, information resources management, and
related technology activities; utilization survey, deed compliance
inspection, appraisal, environmental and cultural analysis, and land
use planning functions pertaining to excess and surplus real property; agency-wide policy direction; Board of Contract Appeals;
accounting, records management, and other support services
incident to adjudication of Indian Tribal Claims by the United
States Court of Federal Claims; services as authorized by 5 U.S.C.
3109; and not to exceed $5,000 for official reception and representation expenses, $123,920,000, of which $27,301,000 shall remain
available until expended: Provided, That none of the funds appropriated from this Act shall be available to convert the Old Post
Office at 1100 Pennsylvania Avenue in Northwest Washington,
D.C., from office use to any other use until a comprehensive plan,
which shall include street-level retail use, has been approved by
the Senate Committee on Appropriations, the House Committee
on Transportation and Infrastructure, and the Senate Committee
on Environment and Public Works: Provided further, That no funds
from this Act shall be available to acquire by purchase, condemnation, or otherwise the leasehold rights of the existing lease with
private parties at the Old Post Office prior to the approval of
the comprehensive plan by the Senate Committee on Appropriations, the House Committee on Transportation and Infrastructure,
and the Senate Committee on Environment and Public Works.
OFFICE OF INSPECTOR GENERAL
For necessary expenses of the Office of Inspector General and
services authorized by 5 U.S.C. 3109, $34,520,000: Provided, That
not to exceed $15,000 shall be available for payment for information
and detection of fraud against the Government, including payment
for recovery of stolen Government property: Provided further, That
not to exceed $2,500 shall be available for awards to employees
of other Federal agencies and private citizens in recognition of
efforts and initiatives resulting in enhanced Office of Inspector
General effectiveness.
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–145
ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS
(INCLUDING
TRANSFER OF FUNDS)
For carrying out the provisions of the Act of August 25, 1958,
as amended (3 U.S.C. 102 note), and Public Law 95–138, $2,517,000:
Provided, That the Administrator of General Services shall transfer
to the Secretary of the Treasury such sums as may be necessary
to carry out the provisions of such Acts.
EXPENSES, PRESIDENTIAL TRANSITION
For expenses necessary to carry out the Presidential Transition
Act of 1963, as amended, $7,100,000.
GENERAL SERVICES ADMINISTRATION—GENERAL PROVISIONS
SEC. 401. The appropriate appropriation or fund available to
the General Services Administration shall be credited with the
cost of operation, protection, maintenance, upkeep, repair, and
improvement, included as part of rentals received from Government
corporations pursuant to law (40 U.S.C. 129).
SEC. 402. Funds available to the General Services Administration shall be available for the hire of passenger motor vehicles.
SEC. 403. Funds in the Federal Buildings Fund made available
for fiscal year 2001 for Federal Buildings Fund activities may
be transferred between such activities only to the extent necessary
to meet program requirements: Provided, That any proposed transfers shall be approved in advance by the Committees on Appropriations.
SEC. 404. No funds made available by this Act shall be used
to transmit a fiscal year 2002 request for United States Courthouse
construction that: (1) does not meet the design guide standards
for construction as established and approved by the General Services Administration, the Judicial Conference of the United States,
and the Office of Management and Budget; and (2) does not reflect
the priorities of the Judicial Conference of the United States as
set out in its approved 5-year construction plan: Provided, That
the fiscal year 2002 request must be accompanied by a standardized
courtroom utilization study of each facility to be constructed,
replaced, or expanded.
SEC. 405. None of the funds provided in this Act may be
used to increase the amount of occupiable square feet, provide
cleaning services, security enhancements, or any other service usually provided through the Federal Buildings Fund, to any agency
that does not pay the rate per square foot assessment for space
and services as determined by the General Services Administration
in compliance with the Public Buildings Amendments Act of 1972
(Public Law 92–313).
SEC. 406. Funds provided to other Government agencies by
the Information Technology Fund, General Services Administration,
under 40 U.S.C. 757 and sections 5124(b) and 5128 of Public Law
104–106, Information Technology Management Reform Act of 1996,
for performance of pilot information technology projects which have
potential for Governmentwide benefits and savings, may be repaid
to this Fund from any savings actually incurred by these projects
or other funding, to the extent feasible.
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114 STAT. 2763A–146
PUBLIC LAW 106–554—APPENDIX C
SEC. 407. From funds made available under the heading ‘‘Federal Buildings Fund, Limitations on Availability of Revenue’’, claims
against the Government of less than $250,000 arising from direct
construction projects and acquisition of buildings may be liquidated
from savings effected in other construction projects with prior
notification to the Committees on Appropriations.
SEC. 408. Section 411 of Public Law 106–58 is amended by
striking ‘‘April 30, 2001’’ each place it appears and inserting ‘‘April
30, 2002’’.
SEC. 409. DESIGNATION OF RONALD N. DAVIES FEDERAL BUILDING AND UNITED STATES COURTHOUSE. (a) The Federal building
and courthouse located at 102 North 4th Street, Grand Forks,
North Dakota, shall be known and designated as the ‘‘Ronald N.
Davies Federal Building and United States Courthouse’’.
(b) Any reference in a law, map, regulation, document, paper,
or other record of the United States to the Federal building and
courthouse referred to in section 1 shall be deemed to be a reference
to the Ronald N. Davies Federal Building and United States Courthouse.
SEC. 410. From the funds made available under the heading
‘‘Federal Buildings Fund Limitations on Revenue’’, in addition to
amounts provided in budget activities above, up to $2,500,000 shall
be available for the construction of a road and acquisition of the
property necessary for construction of said road and associated
port of entry facilities: Provided, That said property shall include
a 125 foot wide right-of-way beginning approximately 700 feet east
of Highway 11 at the northeast corner of the existing port facilities
and going north approximately 4,750 feet and approximately 10.22
acres adjacent to the port of entry in Township 29 S. Range 8W.,
Section 14: Provided further, That construction of the road shall
occur only after this property is deeded and conveyed to the United
States by and through the General Services Administration without
reimbursement or cost to the United States at the election of
its current landholder: Provided further, That notwithstanding any
other provision of law, and subject to the foregoing conditions,
the Administrator of General Services shall construct a road to
the Columbus, New Mexico Port of Entry Station on the property,
connecting the port with a road to be built by the County of
Luna, New Mexico to connect to State Highway 11: Provided further,
That notwithstanding any other provision of law, Luna County
shall construct the roadway from State Highway 11 to the terminus
of the northbound road to be constructed by the General Services
Administration in time for completion of the road to be constructed
by the General Services Administration in time for completion
of the road to be constructed by the General Services Administration: Provided further, That upon completion of the construction
of the road by the General Services Administration, and notwithstanding any other provision of law, the Administrator of General
Services shall convey to the municipality of Luna County, New
Mexico, without reimbursement, all right, title, and interest of
the United States to that portion of the property constituting the
improved road and standard county road right-of-way which is
not required for the operation of the port of entry: Provided further,
That the General Services Administration on behalf of the United
States upon conveyance of the property to the municipality of Luna,
New Mexico, shall retain the balance of the property located adjacent to the port, consisting of approximately 12 acres, to be owned
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–147
or otherwise managed by the Administrator pursuant to the Federal
Property and Administrative Services Act of 1949, as amended:
Provided further, That the General Services Administration is
authorized to acquire such additional real property and rights in
real property as may be necessary to construct said road and
provide a contiguous site for the port of entry: Provided further,
That the United States shall incur no liability for any environmental
laws or conditions existing at the property at the time of conveyance
to the United States or in connection with the construction of
the road: Provided further, That Luna County and the Village
of Columbus shall be responsible for providing adequate access
and egress to existing properties east of the port of entry: Provided
further, That the Bureau of Land Management, the International
Boundary and Water Commission, the Federal Inspection Agencies
and the Department of State shall take all actions necessary to
facilitate the construction of the road and expansion of the port
facilities.
SEC. 411. DESIGNATION OF J. BRATTON DAVIS UNITED STATES
BANKRUPTCY COURTHOUSE. (a) The United States bankruptcy courthouse at 1100 Laurel Street in Columbia, South Carolina, shall
be known and designated as the ‘‘J. Bratton Davis United States
Bankruptcy Courthouse’’.
(b) Any reference in a law, map, regulation, document, paper,
or other record of the United States to the United States bankruptcy
courthouse referred to in subsection (a) shall be deemed to be
a reference to the ‘‘J. Bratton Davis United States Bankruptcy
Courthouse’’.
SEC. 412. (a) The United States Courthouse Annex located
at 901 19th Street in Denver, Colorado is hereby designated as
the ‘‘Alfred A. Arraj United States Courthouse Annex’’.
(b) Any reference in a law, map, regulation, document, or
paper or other record of the United States to the Courthouse Annex
herein referred to in subsection (a) shall be deemed to be a reference
to the ‘‘Alfred A. Arraj United States Courthouse Annex’’.
SEC. 413. DESIGNATION OF THE PAUL COVERDELL DORMITORY.
The dormitory building currently being constructed on the Core
Campus of the Federal Law Enforcement Training Center in Glynco,
Georgia, shall be known and designated as the ‘‘Paul Coverdell
Dormitory’’.
MERIT SYSTEMS PROTECTION BOARD
SALARIES AND EXPENSES
(INCLUDING
TRANSFER OF FUNDS)
For necessary expenses to carry out functions of the Merit
Systems Protection Board pursuant to Reorganization Plan Numbered 2 of 1978 and the Civil Service Reform Act of 1978, including
services as authorized by 5 U.S.C. 3109, rental of conference rooms
in the District of Columbia and elsewhere, hire of passenger motor
vehicles, and direct procurement of survey printing, $29,437,000
together with not to exceed $2,430,000 for administrative expenses
to adjudicate retirement appeals to be transferred from the Civil
Service Retirement and Disability Fund in amounts determined
by the Merit Systems Protection Board.
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114 STAT. 2763A–148
PUBLIC LAW 106–554—APPENDIX C
FEDERAL PAYMENT TO MORRIS K. UDALL SCHOLARSHIP AND
EXCELLENCE IN NATIONAL ENVIRONMENTAL POLICY FOUNDATION
For payment to the Morris K. Udall Scholarship and Excellence
in National Environmental Trust Fund, to be available for the
purposes of Public Law 102–252, $2,000,000, to remain available
until expended.
ENVIRONMENTAL DISPUTE RESOLUTION FUND
For payment to the Environmental Dispute Resolution Fund
to carry out activities authorized in the Environmental Policy and
Conflict Resolution Act of 1998, $1,250,000, to remain available
until expended.
NATIONAL ARCHIVES
AND
RECORDS ADMINISTRATION
OPERATING EXPENSES
For necessary expenses in connection with the administration
of the National Archives (including the Information Security Oversight Office) and archived Federal records and related activities,
as provided by law, and for expenses necessary for the review
and declassification of documents, and for the hire of passenger
motor vehicles, $209,393,000: Provided, That the Archivist of the
United States is authorized to use any excess funds available from
the amount borrowed for construction of the National Archives
facility, for expenses necessary to provide adequate storage for
holdings.
REPAIRS AND RESTORATION
For the repair, alteration, and improvement of archives facilities, and to provide adequate storage for holdings, $95,150,000,
to remain available until expended of which $88,000,000 is to complete renovation of the National Archives Building.
NATIONAL HISTORICAL PUBLICATIONS
AND
RECORDS COMMISSION
GRANTS PROGRAM
(INCLUDING
RESCISSION OF FUNDS)
For necessary expenses for allocations and grants for historical
publications and records as authorized by 44 U.S.C. 2504, as amended, $6,450,000, to remain available until expended.
OFFICE
OF
GOVERNMENT ETHICS
SALARIES AND EXPENSES
For necessary expenses to carry out functions of the Office
of Government Ethics pursuant to the Ethics in Government Act
of 1978, as amended and the Ethics Reform Act of 1989, including
services as authorized by 5 U.S.C. 3109, rental of conference rooms
in the District of Columbia and elsewhere, hire of passenger motor
vehicles, and not to exceed $1,500 for official reception and representation expenses, $9,684,000.
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PUBLIC LAW 106–554—APPENDIX C
OFFICE
OF
114 STAT. 2763A–149
PERSONNEL MANAGEMENT
SALARIES AND EXPENSES
(INCLUDING
TRANSFER OF TRUST FUNDS)
For necessary expenses to carry out functions of the Office
of Personnel Management pursuant to Reorganization Plan Numbered 2 of 1978 and the Civil Service Reform Act of 1978, including
services as authorized by 5 U.S.C. 3109; medical examinations
performed for veterans by private physicians on a fee basis; rental
of conference rooms in the District of Columbia and elsewhere;
hire of passenger motor vehicles; not to exceed $2,500 for official
reception and representation expenses; advances for reimbursements to applicable funds of the Office of Personnel Management
and the Federal Bureau of Investigation for expenses incurred
under Executive Order No. 10422 of January 9, 1953, as amended;
and payment of per diem and/or subsistence allowances to employees where Voting Rights Act activities require an employee to
remain overnight at his or her post of duty, $94,095,000; and
in addition $101,986,000 for administrative expenses, to be transferred from the appropriate trust funds of the Office of Personnel
Management without regard to other statutes, including direct
procurement of printed materials, for the retirement and insurance
programs, of which $10,500,000 shall remain available until
expended for the cost of automating the retirement recordkeeping
systems: Provided, That the provisions of this appropriation shall
not affect the authority to use applicable trust funds as provided
by sections 8348(a)(1)(B) and 8909(g) of title 5, United States Code:
Provided further, That no part of this appropriation shall be available for salaries and expenses of the Legal Examining Unit of
the Office of Personnel Management established pursuant to Executive Order No. 9358 of July 1, 1943, or any successor unit of
like purpose: Provided further, That the President’s Commission
on White House Fellows, established by Executive Order No. 11183
of October 3, 1964, may, during fiscal year 2001, accept donations
of money, property, and personal services in connection with the
development of a publicity brochure to provide information about
the White House Fellows, except that no such donations shall
be accepted for travel or reimbursement of travel expenses, or
for the salaries of employees of such Commission.
OFFICE OF INSPECTOR GENERAL
SALARIES AND EXPENSES
(INCLUDING
TRANSFER OF TRUST FUNDS)
For necessary expenses of the Office of Inspector General in
carrying out the provisions of the Inspector General Act, as amended, including services as authorized by 5 U.S.C. 3109, hire of
passenger motor vehicles, $1,360,000; and in addition, not to exceed
$9,745,000 for administrative expenses to audit, investigate, and
provide other oversight of the Office of Personnel Management’s
retirement and insurance programs, to be transferred from the
appropriate trust funds of the Office of Personnel Management,
as determined by the Inspector General: Provided, That the Inspector General is authorized to rent conference rooms in the District
of Columbia and elsewhere.
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114 STAT. 2763A–150
PUBLIC LAW 106–554—APPENDIX C
GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEES HEALTH
BENEFITS
For payment of Government contributions with respect to
retired employees, as authorized by chapter 89 of title 5, United
States Code, and the Retired Federal Employees Health Benefits
Act (74 Stat. 849), as amended, such sums as may be necessary.
GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEE LIFE
INSURANCE
For payment of Government contributions with respect to
employees retiring after December 31, 1989, as required by chapter
87 of title 5, United States Code, such sums as may be necessary.
PAYMENT TO CIVIL SERVICE RETIREMENT AND DISABILITY FUND
For financing the unfunded liability of new and increased annuity benefits becoming effective on or after October 20, 1969, as
authorized by 5 U.S.C. 8348, and annuities under special Acts
to be credited to the Civil Service Retirement and Disability Fund,
such sums as may be necessary: Provided, That annuities authorized by the Act of May 29, 1944, as amended, and the Act of
August 19, 1950, as amended (33 U.S.C. 771–775), may hereafter
be paid out of the Civil Service Retirement and Disability Fund.
OFFICE
OF
SPECIAL COUNSEL
SALARIES AND EXPENSES
For necessary expenses to carry out functions of the Office
of Special Counsel pursuant to Reorganization Plan Numbered 2
of 1978, the Civil Service Reform Act of 1978 (Public Law 95–
454), the Whistleblower Protection Act of 1989 (Public Law 101–
12), Public Law 103–424, and the Uniformed Services Employment
and Reemployment Act of 1994 (Public Law 103–353), including
services as authorized by 5 U.S.C. 3109, payment of fees and
expenses for witnesses, rental of conference rooms in the District
of Columbia and elsewhere, and hire of passenger motor vehicles,
$11,147,000.
UNITED STATES TAX COURT
SALARIES AND EXPENSES
For necessary expenses, including contract reporting and other
services as authorized by 5 U.S.C. 3109, $37,305,000: Provided,
That travel expenses of the judges shall be paid upon the written
certificate of the judge.
This title may be cited as the ‘‘Independent Agencies Appropriations Act, 2001’’.
TITLE V—GENERAL PROVISIONS
THIS ACT
SEC. 501. No part of any appropriation contained in this Act
shall remain available for obligation beyond the current fiscal year
unless expressly so provided herein.
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–151
SEC. 502. The expenditure of any appropriation under this
Act for any consulting service through procurement contract, pursuant to 5 U.S.C. 3109, shall be limited to those contracts where
such expenditures are a matter of public record and available
for public inspection, except where otherwise provided under existing law, or under existing Executive order issued pursuant to existing law.
SEC. 503. None of the funds made available by this Act shall
be available for any activity or for paying the salary of any Government employee where funding an activity or paying a salary to
a Government employee would result in a decision, determination,
rule, regulation, or policy that would prohibit the enforcement of
section 307 of the Tariff Act of 1930.
SEC. 504. None of the funds made available by this Act shall
be available in fiscal year 2001 for the purpose of transferring
control over the Federal Law Enforcement Training Center located
at Glynco, Georgia, and Artesia, New Mexico, out of the Department
of the Treasury.
SEC. 505. No part of any appropriation contained in this Act
shall be available to pay the salary for any person filling a position,
other than a temporary position, formerly held by an employee
who has left to enter the Armed Forces of the United States and
has satisfactorily completed his period of active military or naval
service, and has within 90 days after his release from such service
or from hospitalization continuing after discharge for a period of
not more than 1 year, made application for restoration to his former
position and has been certified by the Office of Personnel Management as still qualified to perform the duties of his former position
and has not been restored thereto.
SEC. 506. No funds appropriated pursuant to this Act may
be expended by an entity unless the entity agrees that in expending
the assistance the entity will comply with sections 2 through 4
of the Act of March 3, 1933 (41 U.S.C. 10a–10c, popularly known
as the ‘‘Buy American Act’’).
SEC. 507. (a) PURCHASE OF AMERICAN-MADE EQUIPMENT AND
PRODUCTS.—In the case of any equipment or products that may
be authorized to be purchased with financial assistance provided
under this Act, it is the sense of the Congress that entities receiving
such assistance should, in expending the assistance, purchase only
American-made equipment and products.
(b) NOTICE TO RECIPIENTS OF ASSISTANCE.—In providing financial assistance under this Act, the Secretary of the Treasury shall
provide to each recipient of the assistance a notice describing the
statement made in subsection (a) by the Congress.
SEC. 508. If it has been finally determined by a court or Federal
agency that any person intentionally affixed a label bearing a
‘‘Made in America’’ inscription, or any inscription with the same
meaning, to any product sold in or shipped to the United States
that is not made in the United States, such person shall be ineligible
to receive any contract or subcontract made with funds provided
pursuant to this Act, pursuant to the debarment, suspension, and
ineligibility procedures described in sections 9.400 through 9.409
of title 48, Code of Federal Regulations.
SEC. 509. No funds appropriated by this Act shall be available
to pay for an abortion, or the administrative expenses in connection
with any health plan under the Federal employees health benefit
program which provides any benefits or coverage for abortions.
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114 STAT. 2763A–152
PUBLIC LAW 106–554—APPENDIX C
SEC. 510. The provision of section 509 shall not apply where
the life of the mother would be endangered if the fetus were carried
to term, or the pregnancy is the result of an act of rape or incest.
SEC. 511. Except as otherwise specifically provided by law,
not to exceed 50 percent of unobligated balances remaining available
at the end of fiscal year 2001 from appropriations made available
for salaries and expenses for fiscal year 2001 in this Act, shall
remain available through September 30, 2002, for each such account
for the purposes authorized: Provided, That a request shall be
submitted to the Committees on Appropriations for approval prior
to the expenditure of such funds: Provided further, That these
requests shall be made in compliance with reprogramming guidelines.
SEC. 512. None of the funds made available in this Act may
be used by the Executive Office of the President to request from
the Federal Bureau of Investigation any official background investigation report on any individual, except when—
(1) such individual has given his or her express written
consent for such request not more than 6 months prior to
the date of such request and during the same presidential
administration; or
(2) such request is required due to extraordinary circumstances involving national security.
SEC. 513. The cost accounting standards promulgated under
section 26 of the Office of Federal Procurement Policy Act (Public
Law 93–400; 41 U.S.C. 422) shall not apply with respect to a
contract under the Federal Employees Health Benefits Program
established under chapter 89 of title 5, United States Code.
SEC. 514. (a) IN GENERAL.—As soon as practicable after the
date of the enactment of this Act, the Archivist of the United
States shall transfer to the Gerald R. Ford Foundation, as trustee,
all right, title, and interest of the United States in and to the
approximately 2.3 acres of land located within Grand Rapids, Michigan, and further described in subsection (b), such grant to be
in trust, with the beneficiary being the National Archives and
Records Administration, for the purpose of supporting the facilities
and programs of the Gerald R. Ford Museum in Grand Rapids,
Michigan, and the Gerald R. Ford Library in Ann Arbor, Michigan,
in accordance with a trust agreement to be agreed upon by the
Archivist and the Gerald R. Ford Foundation.
(b) LAND DESCRIPTION.—The land to be transferred pursuant
to subsection (a) is described as follows:
The following premises in the City of Grand Rapids, County
of Kent, State of Michigan, described as:
That part of Block 2, Converse Plat, and that part of Block
2 of J.W. Converse Replatted Addition, and that part of Government
Lot 1 of Section 25, T7N, R12W, City of Grand Rapids, Kent
County, Michigan, described as: BEGINNING at the NE corner
of Lot 1 of Block 2 of Converse Plat; thence East 245.0 feet along
the South line of Bridge Street; thence South 230.0 feet along
a line which is parallel with and 170 feet East from the East
line of Front Avenue as originally platted; thence West 207.5 feet
parallel with the South line of Bridge Street; thence South along
the centerline of vacated Front Avenue 109 feet more or less to
the extended centerline of vacated Douglas Street; thence West
along the centerline of vacated Douglas Street 237.5 feet more
or less to the East line of Scribner Avenue; thence North along
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–153
the East line of Scribner Avenue 327 feet more or less to a point
which is 7.0 feet South from the NW corner of Lot 8 of Block
2 of Converse Plat; thence Easterly 200 feet more or less to the
place of beginning, also described as:
Parcel A—Lots 9 & 10, Block 2 of Converse Plat, being the
subdivision of Government Lots 1 & 2, Section 25, T7N, R12W;
also Lots 11–24, Block 2 of J.W. Converse Replatted Addition;
also part of N 1⁄2 of Section 25, T7N, R12W, commencing at SE
corner Lot 24, Block 2 of J.W. Converse Replatted Addition, thence
N to NE corner of Lot 9 of Converse Plat, thence E 16 feet,
thence S to SW corner of Lot 23 of J.W. Converse Replatted Addition, thence W 16 feet to beginning.
Parcel B—Part of Section 25, T7N, R12W, commencing on
S line of Bridge Street 50 feet E of E line of Front Avenue, thence
S 107.85 feet, thence 77 feet, thence N to a point on S line of
said street which is 80 feet E of beginning, thence W to beginning.
Parcel C—Part of Section 25, T7N, R12W, commencing at SE
corner Bridge Street & Front Avenue, thence E 50 feet, thence
S 107.85 feet to alley, thence W 50 feet to E line Front Avenue,
thence N 106.81 feet to beginning.
Parcel D—Part of Government Lot 1, Section 25, T7N, R12W,
commencing at a point on S line of Bridge Street (66′ wide) 170
feet E of E line of Front Avenue (75′ wide), thence S 230 feet
parallel with Front Avenue, thence W 170 feet parallel with Bridge
Street to E line of Front Avenue, thence N along said line to
a point 106.81 feet S of intersection of said line with extension
of N & S line of Bridge Street, thence E 127 feet, thence northerly
to a point on S line of Bridge Street 130 feet E of E line of
Front Avenue, thence E along S line of Bridge Street to beginning.
Parcel E—Lots 1 through 8 of Block 2 of Converse Plat, being
the subdivision of Government Lots 1 and 2, Section 25, T7N,
R12W.
Also part of N 1⁄2 of Section 25, T7N, R12W, commencing
at NW corner of Lot 9, Block 2 of J.W. Converse Replatted Addition;
thence N 15 feet to SW corner of Lot 8; thence E 200 feet to
SE corner Lot 1; thence S 15 feet to NE corner of Lot 10; thence
W 200 feet to beginning.
Together with any portion of vacated streets and alleys that
have become part of the above property.
(c) TERMS AND CONDITIONS.—
(1) COMPENSATION.—The land transferred pursuant to subsection (a) shall be transferred without compensation to the
United States.
(2) APPOINTMENT OF SUCCESSOR TRUSTEE.—In the event
that the Gerald R. Ford Foundation for any reason is unable
or unwilling to continue to serve as trustee, the Archivist
of the United States is authorized to appoint a successor
trustee.
(3) REVERSIONARY INTEREST.—If the Archivist of the United
States determines that the Gerald R. Ford Foundation (or a
successor trustee appointed under paragraph (2)) has breached
its fiduciary duty under the trust agreement entered into pursuant to this section, the land transferred pursuant to subsection
(a) shall revert to the United States under the administrative
jurisdiction of the Archivist.
SEC. 515. (a) IN GENERAL.—The Director of the Office of
Management and Budget shall, by not later than September 30,
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114 STAT. 2763A–154
PUBLIC LAW 106–554—APPENDIX C
2001, and with public and Federal agency involvement, issue guidelines under sections 3504(d)(1) and 3516 of title 44, United States
Code, that provide policy and procedural guidance to Federal agencies for ensuring and maximizing the quality, objectivity, utility,
and integrity of information (including statistical information)
disseminated by Federal agencies in fulfillment of the purposes
and provisions of chapter 35 of title 44, United States Code, commonly referred to as the Paperwork Reduction Act.
(b) CONTENT OF GUIDELINES.—The guidelines under subsection
(a) shall—
(1) apply to the sharing by Federal agencies of, and access
to, information disseminated by Federal agencies; and
(2) require that each Federal agency to which the guidelines
apply—
(A) issue guidelines ensuring and maximizing the quality, objectivity, utility, and integrity of information (including statistical information) disseminated by the agency,
by not later than 1 year after the date of issuance of
the guidelines under subsection (a);
(B) establish administrative mechanisms allowing
affected persons to seek and obtain correction of information maintained and disseminated by the agency that does
not comply with the guidelines issued under subsection
(a); and
(C) report periodically to the Director—
(i) the number and nature of complaints received
by the agency regarding the accuracy of information
disseminated by the agency; and
(ii) how such complaints were handled by the
agency.
SEC. 516. For the purpose of resolving litigation and implementing any settlement agreements regarding the nonforeign area costof-living allowance program, the Office of Personnel Management
may accept and utilize (without regard to any restriction on
unanticipated travel expenses imposed in an Appropriations Act)
funds made available to the Office pursuant to court approval.
SEC. 517. None of the funds appropriated by this Act shall
be used to propose or issue rules, regulations, decrees, or orders
for the purpose of implementation, or in preparation for
implementation, of the Kyoto Protocol, which was adopted on
December 11, 1997, in Kyoto, Japan, at the Third Conference of
the Parties to the United Nations Framework Convention on Climate Change, which has not been submitted to the Senate for
advice and consent to ratification pursuant to article II, section
2, clause 2, of the United States Constitution, and which has
not entered into force pursuant to article 25 of the Protocol.
SEC. 518. Not later than July 1, 2001, the Director of the
Office of Management and Budget shall submit a report to the
Committee on Appropriations and the Committee on Governmental
Affairs of the Senate and the Committee on Appropriations and
the Committee on Government Reform of the House of Representatives that: (1) evaluates, for each agency, the extent to which
implementation of chapter 35 of title 31, United States Code, as
amended by the Paperwork Reduction Act of 1995 (Public Law
104–13), has reduced burden imposed by rules issued by the agency,
including the burden imposed by each major rule issued by the
agency; (2) includes a determination, based on such evaluation,
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–155
of the need for additional procedures to ensure achievement of
the purposes of that chapter, as set forth in section 3501 of title
31, United States Code, and evaluates the burden imposed by
each major rule that imposes more than 10,000,000 hours of burden,
and identifies specific reductions expected to be achieved in each
of fiscal years 2001 and 2002 in the burden imposed by all rules
issued by each agency that issued such a major rule.
TITLE VI—GENERAL PROVISIONS
DEPARTMENTS, AGENCIES,
AND
CORPORATIONS
SEC. 601. Funds appropriated in this or any other Act may
be used to pay travel to the United States for the immediate
family of employees serving abroad in cases of death or life threatening illness of said employee.
SEC. 602. No department, agency, or instrumentality of the
United States receiving appropriated funds under this or any other
Act for fiscal year 2001 shall obligate or expend any such funds,
unless such department, agency, or instrumentality has in place,
and will continue to administer in good faith, a written policy
designed to ensure that all of its workplaces are free from the
illegal use, possession, or distribution of controlled substances (as
defined in the Controlled Substances Act) by the officers and
employees of such department, agency, or instrumentality.
SEC. 603. Unless otherwise specifically provided, the maximum
amount allowable during the current fiscal year in accordance with
section 16 of the Act of August 2, 1946 (60 Stat. 810), for the
purchase of any passenger motor vehicle (exclusive of buses, ambulances, law enforcement, and undercover surveillance vehicles), is
hereby fixed at $8,100 except station wagons for which the maximum shall be $9,100: Provided, That these limits may be exceeded
by not to exceed $3,700 for police-type vehicles, and by not to
exceed $4,000 for special heavy-duty vehicles: Provided further,
That the limits set forth in this section may not be exceeded
by more than 5 percent for electric or hybrid vehicles purchased
for demonstration under the provisions of the Electric and Hybrid
Vehicle Research, Development, and Demonstration Act of 1976:
Provided further, That the limits set forth in this section may
be exceeded by the incremental cost of clean alternative fuels
vehicles acquired pursuant to Public Law 101–549 over the cost
of comparable conventionally fueled vehicles.
SEC. 604. Appropriations of the executive departments and
independent establishments for the current fiscal year available
for expenses of travel, or for the expenses of the activity concerned,
are hereby made available for quarters allowances and cost-ofliving allowances, in accordance with 5 U.S.C. 5922–5924.
SEC. 605. Unless otherwise specified during the current fiscal
year, no part of any appropriation contained in this or any other
Act shall be used to pay the compensation of any officer or employee
of the Government of the United States (including any agency
the majority of the stock of which is owned by the Government
of the United States) whose post of duty is in the continental
United States unless such person: (1) is a citizen of the United
States; (2) is a person in the service of the United States on
the date of the enactment of this Act who, being eligible for citizenship, has filed a declaration of intention to become a citizen of
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114 STAT. 2763A–156
PUBLIC LAW 106–554—APPENDIX C
the United States prior to such date and is actually residing in
the United States; (3) is a person who owes allegiance to the
United States; (4) is an alien from Cuba, Poland, South Vietnam,
the countries of the former Soviet Union, or the Baltic countries
lawfully admitted to the United States for permanent residence;
(5) is a South Vietnamese, Cambodian, or Laotian refugee paroled
in the United States after January 1, 1975; or (6) is a national
of the People’s Republic of China who qualifies for adjustment
of status pursuant to the Chinese Student Protection Act of 1992:
Provided, That for the purpose of this section, an affidavit signed
by any such person shall be considered prima facie evidence that
the requirements of this section with respect to his or her status
have been complied with: Provided further, That any person making
a false affidavit shall be guilty of a felony, and, upon conviction,
shall be fined no more than $4,000 or imprisoned for not more
than 1 year, or both: Provided further, That the above penal clause
shall be in addition to, and not in substitution for, any other
provisions of existing law: Provided further, That any payment
made to any officer or employee contrary to the provisions of this
section shall be recoverable in action by the Federal Government.
This section shall not apply to citizens of Ireland, Israel, or the
Republic of the Philippines, or to nationals of those countries allied
with the United States in a current defense effort, or to international broadcasters employed by the United States Information
Agency, or to temporary employment of translators, or to temporary
employment in the field service (not to exceed 60 days) as a result
of emergencies.
SEC. 606. Appropriations available to any department or agency
during the current fiscal year for necessary expenses, including
maintenance or operating expenses, shall also be available for payment to the General Services Administration for charges for space
and services and those expenses of renovation and alteration of
buildings and facilities which constitute public improvements performed in accordance with the Public Buildings Act of 1959 (73
Stat. 749), the Public Buildings Amendments of 1972 (87 Stat.
216), or other applicable law.
SEC. 607. In addition to funds provided in this or any other
Act, all Federal agencies are authorized to receive and use funds
resulting from the sale of materials, including Federal records disposed of pursuant to a records schedule recovered through recycling
or waste prevention programs. Such funds shall be available until
expended for the following purposes:
(1) Acquisition, waste reduction and prevention, and
recycling programs as described in Executive Order No. 13101
(September 14, 1998), including any such programs adopted
prior to the effective date of the Executive order.
(2) Other Federal agency environmental management programs, including, but not limited to, the development and
implementation of hazardous waste management and pollution
prevention programs.
(3) Other employee programs as authorized by law or as
deemed appropriate by the head of the Federal agency.
SEC. 608. Funds made available by this or any other Act for
administrative expenses in the current fiscal year of the corporations and agencies subject to chapter 91 of title 31, United States
Code, shall be available, in addition to objects for which such
funds are otherwise available, for rent in the District of Columbia;
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–157
services in accordance with 5 U.S.C. 3109; and the objects specified
under this head, all the provisions of which shall be applicable
to the expenditure of such funds unless otherwise specified in
the Act by which they are made available: Provided, That in the
event any functions budgeted as administrative expenses are subsequently transferred to or paid from other funds, the limitations
on administrative expenses shall be correspondingly reduced.
SEC. 609. No part of any appropriation for the current fiscal
year contained in this or any other Act shall be paid to any person
for the filling of any position for which he or she has been nominated
after the Senate has voted not to approve the nomination of said
person.
SEC. 610. No part of any appropriation contained in this or
any other Act shall be available for interagency financing of boards
(except Federal Executive Boards), commissions, councils, committees, or similar groups (whether or not they are interagency entities)
which do not have a prior and specific statutory approval to receive
financial support from more than one agency or instrumentality.
SEC. 611. Funds made available by this or any other Act to
the Postal Service Fund (39 U.S.C. 2003) shall be available for
employment of guards for all buildings and areas owned or occupied
by the Postal Service and under the charge and control of the
Postal Service, and such guards shall have, with respect to such
property, the powers of special policemen provided by the first
section of the Act of June 1, 1948, as amended (62 Stat. 281;
40 U.S.C. 318), and, as to property owned or occupied by the
Postal Service, the Postmaster General may take the same actions
as the Administrator of General Services may take under the provisions of sections 2 and 3 of the Act of June 1, 1948, as amended
(62 Stat. 281; 40 U.S.C. 318a and 318b), attaching thereto penal
consequences under the authority and within the limits provided
in section 4 of the Act of June 1, 1948, as amended (62 Stat.
281; 40 U.S.C. 318c).
SEC. 612. None of the funds made available pursuant to the
provisions of this Act shall be used to implement, administer, or
enforce any regulation which has been disapproved pursuant to
a resolution of disapproval duly adopted in accordance with the
applicable law of the United States.
SEC. 613. (a) Notwithstanding any other provision of law, and
except as otherwise provided in this section, no part of any of
the funds appropriated for fiscal year 2001, by this or any other
Act, may be used to pay any prevailing rate employee described
in section 5342(a)(2)(A) of title 5, United States Code—
(1) during the period from the date of expiration of the
limitation imposed by section 613 of the Treasury and General
Government Appropriations Act, 2000, until the normal effective date of the applicable wage survey adjustment that is
to take effect in fiscal year 2001, in an amount that exceeds
the rate payable for the applicable grade and step of the
applicable wage schedule in accordance with such section 613;
and
(2) during the period consisting of the remainder of fiscal
year 2001, in an amount that exceeds, as a result of a wage
survey adjustment, the rate payable under paragraph (1) by
more than the sum of—
(A) the percentage adjustment taking effect in fiscal
year 2001 under section 5303 of title 5, United States
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114 STAT. 2763A–158
PUBLIC LAW 106–554—APPENDIX C
Code, in the rates of pay under the General Schedule;
and
(B) the difference between the overall average percentage of the locality-based comparability payments taking
effect in fiscal year 2001 under section 5304 of such title
(whether by adjustment or otherwise), and the overall average percentage of such payments which was effective in
fiscal year 2000 under such section.
(b) Notwithstanding any other provision of law, no prevailing
rate employee described in subparagraph (B) or (C) of section
5342(a)(2) of title 5, United States Code, and no employee covered
by section 5348 of such title, may be paid during the periods
for which subsection (a) is in effect at a rate that exceeds the
rates that would be payable under subsection (a) were subsection
(a) applicable to such employee.
(c) For the purposes of this section, the rates payable to an
employee who is covered by this section and who is paid from
a schedule not in existence on September 30, 2000, shall be determined under regulations prescribed by the Office of Personnel
Management.
(d) Notwithstanding any other provision of law, rates of premium pay for employees subject to this section may not be changed
from the rates in effect on September 30, 2000, except to the
extent determined by the Office of Personnel Management to be
consistent with the purpose of this section.
(e) This section shall apply with respect to pay for service
performed after September 30, 2000.
(f ) For the purpose of administering any provision of law
(including any rule or regulation that provides premium pay, retirement, life insurance, or any other employee benefit) that requires
any deduction or contribution, or that imposes any requirement
or limitation on the basis of a rate of salary or basic pay, the
rate of salary or basic pay payable after the application of this
section shall be treated as the rate of salary or basic pay.
(g) Nothing in this section shall be considered to permit or
require the payment to any employee covered by this section at
a rate in excess of the rate that would be payable were this section
not in effect.
(h) The Office of Personnel Management may provide for exceptions to the limitations imposed by this section if the Office determines that such exceptions are necessary to ensure the recruitment
or retention of qualified employees.
SEC. 614. During the period in which the head of any department or agency, or any other officer or civilian employee of the
Government appointed by the President of the United States, holds
office, no funds may be obligated or expended in excess of $5,000
to furnish or redecorate the office of such department head, agency
head, officer, or employee, or to purchase furniture or make
improvements for any such office, unless advance notice of such
furnishing or redecoration is expressly approved by the Committees
on Appropriations. For the purposes of this section, the word ‘‘office’’
shall include the entire suite of offices assigned to the individual,
as well as any other space used primarily by the individual or
the use of which is directly controlled by the individual.
SEC. 615. Notwithstanding any other provision of law, no executive branch agency shall purchase, construct, and/or lease any additional facilities, except within or contiguous to existing locations,
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–159
to be used for the purpose of conducting Federal law enforcement
training without the advance approval of the Committees on Appropriations, except that the Federal Law Enforcement Training Center
is authorized to obtain the temporary use of additional facilities
by lease, contract, or other agreement for training which cannot
be accommodated in existing Center facilities.
SEC. 616. Notwithstanding section 1346 of title 31, United
States Code, or section 610 of this Act, funds made available for
fiscal year 2001 by this or any other Act shall be available for
the interagency funding of national security and emergency
preparedness telecommunications initiatives which benefit multiple
Federal departments, agencies, or entities, as provided by Executive
Order No. 12472 (April 3, 1984).
SEC. 617. (a) None of the funds appropriated by this or any
other Act may be obligated or expended by any Federal department,
agency, or other instrumentality for the salaries or expenses of
any employee appointed to a position of a confidential or policydetermining character excepted from the competitive service pursuant to section 3302 of title 5, United States Code, without a certification to the Office of Personnel Management from the head of
the Federal department, agency, or other instrumentality employing
the Schedule C appointee that the Schedule C position was not
created solely or primarily in order to detail the employee to the
White House.
(b) The provisions of this section shall not apply to Federal
employees or members of the armed services detailed to or from—
(1) the Central Intelligence Agency;
(2) the National Security Agency;
(3) the Defense Intelligence Agency;
(4) the offices within the Department of Defense for the
collection of specialized national foreign intelligence through
reconnaissance programs;
(5) the Bureau of Intelligence and Research of the Department of State;
(6) any agency, office, or unit of the Army, Navy, Air
Force, and Marine Corps, the Federal Bureau of Investigation
and the Drug Enforcement Administration of the Department
of Justice, the Department of Transportation, the Department
of the Treasury, and the Department of Energy performing
intelligence functions; and
(7) the Director of Central Intelligence.
SEC. 618. No department, agency, or instrumentality of the
United States receiving appropriated funds under this or any other
Act for fiscal year 2001 shall obligate or expend any such funds,
unless such department, agency, or instrumentality has in place,
and will continue to administer in good faith, a written policy
designed to ensure that all of its workplaces are free from discrimination and sexual harassment and that all of its workplaces are
not in violation of title VII of the Civil Rights Act of 1964, as
amended, the Age Discrimination in Employment Act of 1967, and
the Rehabilitation Act of 1973.
SEC. 619. None of the funds made available in this Act for
the United States Customs Service may be used to allow the
importation into the United States of any good, ware, article, or
merchandise mined, produced, or manufactured by forced or indentured child labor, as determined pursuant to section 307 of the
Tariff Act of 1930 (19 U.S.C. 1307).
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114 STAT. 2763A–160
PUBLIC LAW 106–554—APPENDIX C
SEC. 620. No part of any appropriation contained in this or
any other Act shall be available for the payment of the salary
of any officer or employee of the Federal Government, who—
(1) prohibits or prevents, or attempts or threatens to prohibit or prevent, any other officer or employee of the Federal
Government from having any direct oral or written communication or contact with any Member, committee, or subcommittee
of the Congress in connection with any matter pertaining to
the employment of such other officer or employee or pertaining
to the department or agency of such other officer or employee
in any way, irrespective of whether such communication or
contact is at the initiative of such other officer or employee
or in response to the request or inquiry of such Member,
committee, or subcommittee; or
(2) removes, suspends from duty without pay, demotes,
reduces in rank, seniority, status, pay, or performance of efficiency rating, denies promotion to, relocates, reassigns, transfers, disciplines, or discriminates in regard to any employment
right, entitlement, or benefit, or any term or condition of
employment of, any other officer or employee of the Federal
Government, or attempts or threatens to commit any of the
foregoing actions with respect to such other officer or employee,
by reason of any communication or contact of such other officer
or employee with any Member, committee, or subcommittee
of the Congress as described in paragraph (1).
SEC. 621. (a) None of the funds made available in this or
any other Act may be obligated or expended for any employee
training that—
(1) does not meet identified needs for knowledge, skills,
and abilities bearing directly upon the performance of official
duties;
(2) contains elements likely to induce high levels of emotional response or psychological stress in some participants;
(3) does not require prior employee notification of the content and methods to be used in the training and written end
of course evaluation;
(4) contains any methods or content associated with religious or quasi-religious belief systems or ‘‘new age’’ belief systems as defined in Equal Employment Opportunity Commission
Notice N–915.022, dated September 2, 1988; or
(5) is offensive to, or designed to change, participants’
personal values or lifestyle outside the workplace.
(b) Nothing in this section shall prohibit, restrict, or otherwise
preclude an agency from conducting training bearing directly upon
the performance of official duties.
SEC. 622. No funds appropriated in this or any other Act
may be used to implement or enforce the agreements in Standard
Forms 312 and 4414 of the Government or any other nondisclosure
policy, form, or agreement if such policy, form, or agreement does
not contain the following provisions: ‘‘These restrictions are consistent with and do not supersede, conflict with, or otherwise alter
the employee obligations, rights, or liabilities created by Executive
Order No. 12958; section 7211 of title 5, U.S.C. (governing disclosures to Congress); section 1034 of title 10, United States Code,
as amended by the Military Whistleblower Protection Act (governing
disclosure to Congress by members of the military); section
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–161
2302(b)(8) of title 5, United States Code, as amended by the Whistleblower Protection Act (governing disclosures of illegality, waste,
fraud, abuse or public health or safety threats); the Intelligence
Identities Protection Act of 1982 (50 U.S.C. 421 et seq.) (governing
disclosures that could expose confidential Government agents); and
the statutes which protect against disclosure that may compromise
the national security, including sections 641, 793, 794, 798, and
952 of title 18, United States Code, and section 4(b) of the Subversive Activities Act of 1950 (50 U.S.C. 783(b)). The definitions,
requirements, obligations, rights, sanctions, and liabilities created
by said Executive order and listed statutes are incorporated into
this agreement and are controlling.’’: Provided, That notwithstanding the preceding paragraph, a nondisclosure policy form or agreement that is to be executed by a person connected with the conduct
of an intelligence or intelligence-related activity, other than an
employee or officer of the United States Government, may contain
provisions appropriate to the particular activity for which such
document is to be used. Such form or agreement shall, at a minimum, require that the person will not disclose any classified
information received in the course of such activity unless specifically
authorized to do so by the United States Government. Such nondisclosure forms shall also make it clear that they do not bar
disclosures to Congress or to an authorized official of an executive
agency or the Department of Justice that are essential to reporting
a substantial violation of law.
SEC. 623. No part of any funds appropriated in this or any
other Act shall be used by an agency of the executive branch,
other than for normal and recognized executive-legislative relationships, for publicity or propaganda purposes, and for the preparation,
distribution or use of any kit, pamphlet, booklet, publication, radio,
television or film presentation designed to support or defeat legislation pending before the Congress, except in presentation to the
Congress itself.
SEC. 624. (a) IN GENERAL.—For calendar year 2002 and each
year thereafter, the Director of the Office of Management and
Budget shall prepare and submit to Congress, with the budget
submitted under section 1105 of title 31, United States Code, an
accounting statement and associated report containing—
(1) an estimate of the total annual costs and benefits
(including quantifiable and nonquantifiable effects) of Federal
rules and paperwork, to the extent feasible—
(A) in the aggregate;
(B) by agency and agency program; and
(C) by major rule;
(2) an analysis of impacts of Federal regulation on State,
local, and tribal government, small business, wages, and economic growth; and
(3) recommendations for reform.
(b) NOTICE.—The Director of the Office of Management and
Budget shall provide public notice and an opportunity to comment
on the statement and report under subsection (a) before the statement and report are submitted to Congress.
(c) GUIDELINES.—To implement this section, the Director of
the Office of Management and Budget shall issue guidelines to
agencies to standardize—
(1) measures of costs and benefits; and
(2) the format of accounting statements.
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114 STAT. 2763A–162
PUBLIC LAW 106–554—APPENDIX C
(d) PEER REVIEW.—The Director of the Office of Management
and Budget shall provide for independent and external peer review
of the guidelines and each accounting statement and associated
report under this section. Such peer review shall not be subject
to the Federal Advisory Committee Act (5 U.S.C. App.).
SEC. 625. None of the funds appropriated by this or any other
Act may be used by an agency to provide a Federal employee’s
home address to any labor organization except when the employee
has authorized such disclosure or when such disclosure has been
ordered by a court of competent jurisdiction.
SEC. 626. Hereafter, the Secretary of the Treasury is authorized
to establish scientific certification standards for explosives detection
canines, and shall provide, on a reimbursable basis, for the certification of explosives detection canines employed by Federal agencies,
or other agencies providing explosives detection services at airports
in the United States.
SEC. 627. None of the funds made available in this Act or
any other Act may be used to provide any non-public information
such as mailing or telephone lists to any person or any organization
outside of the Federal Government without the approval of the
Committees on Appropriations.
SEC. 628. No part of any appropriation contained in this or
any other Act shall be used for publicity or propaganda purposes
within the United States not heretofore authorized by the Congress.
SEC. 629. (a) In this section the term ‘‘agency’’—
(1) means an Executive agency as defined under section
105 of title 5, United States Code;
(2) includes a military department as defined under section
102 of such title, the Postal Service, and the Postal Rate
Commission; and
(3) shall not include the General Accounting Office.
(b) Unless authorized in accordance with law or regulations
to use such time for other purposes, an employee of an agency
shall use official time in an honest effort to perform official duties.
An employee not under a leave system, including a Presidential
appointee exempted under section 6301(2) of title 5, United States
Code, has an obligation to expend an honest effort and a reasonable
proportion of such employee’s time in the performance of official
duties.
SEC. 630. (a) None of the funds appropriated by this Act may
be used to enter into or renew a contract which includes a provision
providing prescription drug coverage, except where the contract
also includes a provision for contraceptive coverage.
(b) Nothing in this section shall apply to a contract with—
(1) any of the following religious plans:
(A) Personal Care’s HMO;
(B) Care Choices;
(C) OSF Health Plans, Inc.; and
(2) any existing or future plan, if the carrier for the plan
objects to such coverage on the basis of religious beliefs.
(c) In implementing this section, any plan that enters into
or renews a contract under this section may not subject any individual to discrimination on the basis that the individual refuses to
prescribe or otherwise provide for contraceptives because such
activities would be contrary to the individual’s religious beliefs
or moral convictions.
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–163
(d) Nothing in this section shall be construed to require coverage of abortion or abortion-related services.
SEC. 631. Notwithstanding 31 U.S.C. 1346 and section 610
of this Act, funds made available for fiscal year 2001 by this
or any other Act to any department or agency, which is a member
of the Joint Financial Management Improvement Program (JFMIP),
shall be available to finance an appropriate share of JFMIP
administrative costs, as determined by the JFMIP, but not to exceed
a total of $800,000 including the salary of the Executive Director
and staff support.
SEC. 632. Notwithstanding 31 U.S.C. 1346 and section 610
of this Act, the head of each Executive department and agency
is hereby authorized to transfer to the ‘‘Policy and Operations’’
account, General Services Administration, with the approval of
the Director of the Office of Management and Budget, funds made
available for fiscal year 2001 by this or any other Act, including
rebates from charge card and other contracts. These funds shall
be administered by the Administrator of General Services to support
Government-wide financial, information technology, procurement,
and other management innovations, initiatives, and activities, as
approved by the Director of the Office of Management and Budget,
in consultation with the appropriate interagency groups designated
by the Director (including the Chief Financial Officers Council
and the Joint Financial Management Improvement Program for
financial management initiatives, the Chief Information Officers
Council for information technology initiatives, and the Procurement
Executives Council for procurement initiatives). The total funds
transferred shall not exceed $17,000,000. Such transfers may only
be made 15 days following notification of the Committees on Appropriations by the Director of the Office of Management and Budget.
SEC. 633. (a) IN GENERAL.—In accordance with regulations
promulgated by the Office of Personnel Management, an Executive
agency which provides or proposes to provide child care services
for Federal employees may use appropriated funds (otherwise available to such agency for salaries and expenses) to provide child
care, in a Federal or leased facility, or through contract, for civilian
employees of such agency.
(b) AFFORDABILITY.—Amounts so provided with respect to any
such facility or contractor shall be applied to improve the affordability of child care for lower income Federal employees using
or seeking to use the child care services offered by such facility
or contractor.
(c) DEFINITION.—For purposes of this section, the term ‘‘Executive agency’’ has the meaning given such term by section 105
of title 5, United States Code, but does not include the General
Accounting Office.
(d) NOTIFICATION.—None of the funds made available in this
or any other Act may be used to implement the provisions of
this section absent advance notification to the Committees on Appropriations.
SEC. 634. Notwithstanding any other provision of law, a woman
may breastfeed her child at any location in a Federal building
or on Federal property, if the woman and her child are otherwise
authorized to be present at the location.
SEC. 635. Nothwithstanding section 1346 of title 31, United
States Code, or section 610 of this Act, funds made available for
fiscal year 2001 by this or any other Act shall be available for
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114 STAT. 2763A–164
PUBLIC LAW 106–554—APPENDIX C
the interagency funding of specific projects, workshops, studies,
and similar efforts to carry out the purposes of the National Science
and Technology Council (authorized by Executive Order No. 12881),
which benefit multiple Federal departments, agencies, or entities:
Provided, That the Office of Management and Budget shall provide
a report describing the budget of and resources connected with
the National Science and Technology Council to the Committees
on Appropriations, the House Committee on Science; and the Senate
Committee on Commerce, Science, and Transportation 90 days after
enactment of this Act.
SEC. 636. RETIREMENT PROVISIONS RELATING TO CERTAIN MEMBERS OF THE POLICE FORCE OF THE METROPOLITAN WASHINGTON
AIRPORTS AUTHORITY.—(a) QUALIFIED MWAA POLICE OFFICER
DEFINED.—For purposes of this section, the term ‘‘qualified MWAA
police officer’’ means any individual who, as of the date of the
enactment of this Act—
(1) is employed as a member of the police force of the
Metropolitan Washington Airports Authority (hereafter in this
section referred to as an ‘‘MWAA police officer’’); and
(2) is subject to the Civil Service Retirement System or
the Federal Employees’ Retirement System by virtue of section
49107(b) of title 49, United States Code.
(b) ELIGIBILITY TO BE TREATED AS A LAW ENFORCEMENT OFFICER FOR RETIREMENT PURPOSES.—
(1) IN GENERAL.—Any qualified MWAA police officer may,
by written election submitted in accordance with applicable
requirements under subsection (c), elect to be treated as a
law enforcement officer (within the meaning of section 8331
or 8401 of title 5, United States Code, as applicable), and
to have all prior service described in paragraph (2) similarly
treated.
(2) PRIOR SERVICE DESCRIBED.—The service described in
this paragraph is all service which an individual performed,
prior to the effective date of such individual’s election under
this section, as—
(A) an MWAA police officer; or
(B) a member of the police force of the Federal Aviation
Administration (hereafter in this section referred to as
an ‘‘FAA police officer’’).
(c) REGULATIONS.—The Office of Personnel Management shall
prescribe any regulations necessary to carry out this section, including provisions relating to the time, form, and manner in which
any election under this section shall be made. Such an election
shall not be effective unless—
(1) it is made before the employee separates from service
with the Metropolitan Washington Airports Authority, but in
no event later than 1 year after the regulations under this
subsection take effect; and
(2) it is accompanied by payment of an amount equal
to, with respect to all prior service of such employee which
is described in subsection (b)(2)—
(A) the employee deductions that would have been
required for such service under chapter 83 or 84 of title
5, U.S.C. (as the case may be) if such election had then
been in effect, minus
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–165
(B) the total employee deductions and contributions
under such chapter 83 and 84 (as applicable) that were
actually made for such service,
taking into account only amounts required to be credited to
the Civil Service Retirement and Disability Fund. Any amount
under paragraph (2) shall be computed with interest, in accordance with section 8334(e) of such title 5.
(d) GOVERNMENT CONTRIBUTIONS.—Whenever a payment under
subsection (c)(2) is made by an individual with respect to such
individual’s prior service (as described in subsection (b)(2)), the
Metropolitan Washington Airports Authority shall pay into the
Civil Service Retirement and Disability Fund any additional contributions for which it would have been liable, with respect to
such service, if such individual’s election under this section had
then been in effect (and, to the extent of any prior FAA police
officer service, as if it had then been the employing agency). Any
amount under this subsection shall be computed with interest,
in accordance with section 8334(e) of title 5, United States Code.
(e) CERTIFICATIONS.—The Office of Personnel Management shall
accept, for the purpose of this section, the certification of—
(1) the Metropolitan Washington Airports Authority (or
its designee) concerning any service performed by an individual
as an MWAA police officer; and
(2) the Federal Aviation Administration (or its designee)
concerning any service performed by an individual as an FAA
police officer.
(f ) REIMBURSEMENT TO COMPENSATE FOR UNFUNDED LIABILITY.—
(1) IN GENERAL.—The Metropolitan Washington Airports
Authority shall pay into the Civil Service Retirement and
Disability Fund an amount (as determined by the Director
of the Office of Personnel Management) equal to the amount
necessary to reimburse the Fund for any estimated increase
in the unfunded liability of the Fund (to the extent the Civil
Service Retirement System is involved), and for any estimated
increase in the supplemental liability of the Fund (to the extent
the Federal Employees’ Retirement System is involved), resulting from the enactment of this section.
(2) PAYMENT METHOD.—The Metropolitan Washington Airports Authority shall pay the amount so determined in five
equal annual installments, with interest (which shall be computed at the rate used in the most recent valuation of the
Federal Employees’ Retirement System).
SEC. 637. (a) For purposes of this section—
(1) the term ‘‘comparability payment’’ refers to a localitybased comparability payment under section 5304 of title 5,
United States Code;
(2) the term ‘‘President’s pay agent’’ refers to the pay
agent described in section 5302(4) of such title; and
(3) the term ‘‘pay locality’’ has the meaning given such
term by section 5302(5) of such title.
(b) Notwithstanding any provision of section 5304 of title 5,
United States Code, for purposes of determining appropriate pay
localities and making comparability payment recommendations, the
President’s pay agent may, in accordance with succeeding provisions
of this section, make comparisons of General Schedule pay and
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114 STAT. 2763A–166
PUBLIC LAW 106–554—APPENDIX C
non-Federal pay within any of the metropolitan statistical areas
described in subsection (d)(3), using—
(1) data from surveys of the Bureau of Labor Statistics;
(2) salary data sets obtained under subsection (c); or
(3) any combination thereof.
(c) To the extent necessary in order to carry out this section,
the President’s pay agent may obtain any salary data sets (referred
to in subsection (b)) from any organization or entity that regularly
compiles similar data for businesses in the private sector.
(d)(1)(A) This paragraph applies with respect to the five metropolitan statistical areas described in paragraph (3) which—
(i) have the highest levels of nonfarm employment (as
determined based on data made available by the Bureau of
Labor Statistics); and
(ii) as of the date of the enactment of this Act, have not
previously been surveyed by the Bureau of Labor Statistics
(as discrete pay localities) for purposes of section 5304 of title
5, United States Code.
(B) The President’s pay agent, based on such comparisons under
subsection (b) as the pay agent considers appropriate, shall: (i)
determine whether any of the five areas under subparagraph (A)
warrants designation as a discrete pay locality; and (ii) if so, make
recommendations as to what level of comparability payments would
be appropriate during 2002 for each area so determined.
(C)(i) Any recommendations under subparagraph (B)(ii) shall
be included—
(I) in the pay agent’s report under section 5304(d)(1) of
title 5, United States Code, submitted for purposes of comparability payments scheduled to become payable in 2002; or
(II) if compliance with subclause (I) is impracticable, in
a supplementary report which the pay agent shall submit to
the President and the Congress no later than March 1, 2001.
(ii) In the event that the recommendations are completed in
time to be included in the report described in clause (i)(I), a copy
of those recommendations shall be transmitted by the pay agent
to the Congress contemporaneous with their submission to the
President.
(D) Each of the five areas under subparagraph (A) that so
warrants, as determined by the President’s pay agent, shall be
designated as a discrete pay locality under section 5304 of title
5, United States Code, in time for it to be treated as such for
purposes of comparability payments becoming payable in 2002.
(2) The President’s pay agent may, at any time after the 180th
day following the submission of the report under subsection (f ),
make any initial or further determinations or recommendations
under this section, based on any pay comparisons under subsection
(b), with respect to any area described in paragraph (3).
(3) An area described in this paragraph is any metropolitan
statistical area within the continental United States that (as determined based on data made available by the Bureau of Labor Statistics and the Office of Personnel Management, respectively) has
a high level of nonfarm employment and at least 2,500 General
Schedule employees whose post of duty is within such area.
(e)(1) The authority under this section to make pay comparisons
and to make any determinations or recommendations based on
such comparisons shall be available to the President’s pay agent
only for purposes of comparability payments becoming payable on
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–167
or after January 1, 2002, and before January 1, 2007, and only
with respect to areas described in subsection (d)(3).
(2) Any comparisons and recommendations so made shall, if
included in the pay agent’s report under section 5304(d)(1) of title
5, United States Code, for any year (or the pay agent’s supplementary report, in accordance with subsection (d)(1)(C)(i)(II)), be
considered and acted on as the pay agent’s comparisons and recommendations under such section 5304(d)(1) for the area and the
year involved.
(f )(1) No later than March 1, 2001, the President’s pay agent
shall submit to the Committee on Government Reform of the House
of Representatives, the Committee on Governmental Affairs of the
Senate, and the Committees on Appropriations of the House of
Representatives and of the Senate, a report on the use of pay
comparison data, as described in subsection (b)(2) or (3) (as appropriate), for purposes of comparability payments.
(2) The report shall include the cost of obtaining such data,
the rationale underlying the decisions reached based on such data,
and the relative advantages and disadvantages of using such data
(including whether the effort involved in analyzing and integrating
such data is commensurate with the benefits derived from their
use). The report may include specific recommendations regarding
the continued use of such data.
(g)(1) No later than May 1, 2001, the President’s pay agent
shall prepare and submit to the committees specified in subsection
(f )(1) a report relating to the ongoing efforts of the Office of Personnel Management, the Office of Management and Budget, and the
Bureau of Labor Statistics to revise the methodology currently
being used by the Bureau of Labor Statistics in performing its
surveys under section 5304 of title 5, United States Code.
(2) The report shall include a detailed accounting of any concerns the pay agent may have regarding the current methodology,
the specific projects the pay agent has directed any of those agencies
to undertake in order to address those concerns, and a time line
for the anticipated completion of those projects and for implementation of the revised methodology.
(3) The report shall also include recommendations as to how
those ongoing efforts might be expedited, including any additional
resources which, in the opinion of the pay agent, are needed in
order to expedite completion of the activities described in the preceding provisions of this subsection, and the reasons why those additional resources are needed.
SEC. 638. FEDERAL FUNDS IDENTIFIED. Any request for proposals, solicitation, grant application, form, notification, press release,
or other publications involving the distribution of Federal funds
shall indicate the agency providing the funds and the amount
provided. This provision shall apply to direct payments, formula
funds, and grants received by a State receiving Federal funds.
SEC. 639. MANDATORY REMOVAL FROM EMPLOYMENT OF FEDERAL
LAW ENFORCEMENT OFFICERS CONVICTED OF FELONIES.
(a) IN GENERAL.—Chapter 73 of title 5, United States Code,
is amended by adding after subchapter VI the following:
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114 STAT. 2763A–168
PUBLIC LAW 106–554—APPENDIX C
‘‘SUBCHAPTER VII—MANDATORY REMOVAL FROM EMPLOYMENT OF CONVICTED LAW ENFORCEMENT OFFICERS
‘‘§ 7371. Mandatory removal from employment of law enforcement officers convicted of felonies
‘‘(a) In this section, the term—
‘‘(1) ‘conviction notice date’ means the date on which an
agency that employs a law enforcement officer has notice that
the officer has been convicted of a felony that is entered by
a Federal or State court, regardless of whether that conviction
is appealed or is subject to appeal; and
‘‘(2) ‘law enforcement officer’ has the meaning given that
term under section 8331(20) or 8401(17).
‘‘(b) Any law enforcement officer who is convicted of a felony
shall be removed from employment as a law enforcement officer
on the last day of the first applicable pay period following the
conviction notice date.
‘‘(c)(1) This section does not prohibit the removal of an individual from employment as a law enforcement officer before a conviction notice date if the removal is properly effected other than
under this section.
‘‘(2) This section does not prohibit the employment of any
individual in any position other than that of a law enforcement
officer.
‘‘(d) If the conviction is overturned on appeal, the removal
shall be set aside retroactively to the date on which the removal
occurred, with back pay under section 5596 for the period during
which the removal was in effect, unless the removal was properly
effected other than under this section.
‘‘(e)(1) If removal is required under this section, the agency
shall deliver written notice to the employee as soon as practicable,
and not later than 5 calendar days after the conviction notice
date. The notice shall include a description of the specific reasons
for the removal, the date of removal, and the procedures made
applicable under paragraph (2).
‘‘(2) The procedures under section 7513(b)(2), (3), and (4), (c),
(d), and (e) shall apply to any removal under this section. The
employee may use the procedures to contest or appeal a removal,
but only with respect to whether—
‘‘(A) the employee is a law enforcement officer;
‘‘(B) the employee was convicted of a felony; or
‘‘(C) the conviction was overturned on appeal.
‘‘(3) A removal required under this section shall occur on the
date specified in subsection (b) regardless of whether the notice
required under paragraph (1) of this subsection and the procedures
made applicable under paragraph (2) of this subsection have been
provided or completed by that date.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—The table of
sections for chapter 73 of title 5, United States Code, is amended
by adding after the item relating to section 7363 the following:
‘‘SUBCHAPTER VII—MANDATORY REMOVAL FROM EMPLOYMENT OF
CONVICTED LAW ENFORCEMENT OFFICERS
‘‘7371. Mandatory removal from employment of law enforcement officers convicted
of felonies.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect 30 days after the date of enactment of this Act
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PUBLIC LAW 106–554—APPENDIX C
114 STAT. 2763A–169
and shall apply to any conviction of a felony entered by a Federal
or State court on or after that date.
SEC. 640. Section 504 of the Department of Transportation
and Related Agencies Appropriations Act, 2001 (as enacted into
law by Public Law 106–346) is repealed.
SEC. 641. (a) Section 5545b(d) of title 5, United States Code,
is amended by inserting at the end the following new paragraph:
‘‘(4) Notwithstanding section 8114(e)(1), overtime pay for
a firefighter subject to this section for hours in a regular
tour of duty shall be included in any computation of pay under
section 8114.’’.
(b) The amendment in subsection (a) shall be effective as if
it had been enacted as part of the Federal Firefighters Overtime
Pay Reform Act of 1998 (112 Stat. 2681–519).
SEC. 642. Section 6323(a) of title 5, United States Code, is
amended by adding at the end the following:
‘‘(3) The minimum charge for leave under this subsection
is one hour, and additional charges are in multiples thereof.’’.
SEC. 643. Section 616 of the Treasury, Postal Service and
General Government Appropriations Act, 1988, as contained in
the Act of December 22, 1987 (40 U.S.C. 490b), is amended by
adding at the end the following:
‘‘(e)(1) All existing and newly hired workers in any child care
center located in an executive facility shall undergo a criminal
history background check as defined in section 231 of the Crime
Control Act of 1990 (42 U.S.C. 13041).
‘‘(2) For purposes of this subsection, the term ‘executive facility’
means a facility that is owned or leased by an office or entity
within the executive branch of the Government (including one that
is owned or leased by the General Services Administration on
behalf of an office or entity within the judicial branch of the Government).
‘‘(3) Nothing in this subsection shall be considered to apply
with respect to a facility owned by or leased on behalf of an
office or entity within the legislative branch of the Government.’’.
SEC. 644. Section 501 of the Department of Transportation
and Related Agencies Appropriations Act, 2001 (as enacted into
law by Public Law 106–346) is amended by striking subsection
(c) and by redesignating subsection (d) as subsection (c).
SEC. 645. (a)(1) Title 5, United States Code, is amended by
inserting after section 5372a the following:
‘‘§ 5372b. Administrative appeals judges
‘‘(a) For the purpose of this section—
‘‘(1) the term ‘administrative appeals judge position’ means
a position the duties of which primarily involve reviewing
decisions of administrative law judges appointed under section
3105; and
‘‘(2) the term ‘agency’ means an Executive agency, as
defined by section 105, but does not include the General
Accounting Office.
‘‘(b) Subject to such regulations as the Office of Personnel
Management may prescribe, the head of the agency concerned shall
fix the rate of basic pay for each administrative appeals judge
position within such agency which is not classified above GS–
15 pursuant to section 5108.
‘‘(c) A rate of basic pay fixed under this section shall be—
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114 STAT. 2763A–170
PUBLIC LAW 106–554—APPENDIX C
‘‘(1) not less than the minimum rate of basic pay for level
AL–3 under section 5372; and
‘‘(2) not greater than the maximum rate of basic pay for
level AL–3 under section 5372.’’.
(2) Section 7323(b)(2)(B)(ii) of title 5, United States Code, is
amended by striking ‘‘or 5372a’’ and inserting ‘‘5372a, or 5372b’’.
(3) The table of sections for chapter 53 of title 5, United States
Code, is amended by inserting after the item relating to section
5372a the following:
‘‘5372b. Administrative appeals judges.’’.
(b) The amendment made by subsection (a)(1) shall apply with
respect to pay for service performed on or after the first day of
the first applicable pay period beginning on or after—
(1) the 120th day after the date of the enactment of this
Act; or
(2) if earlier, the effective date of regulations prescribed
by the Office of Personnel Management to carry out such
amendment.
SEC. 646. Not later than 60 days after the date of enactment
of this Act, the Inspector General of each department or agency
shall submit to Congress a report that discloses any activity of
the applicable department or agency relating to—
(1) the collection or review of singular data, or the creation
of aggregate lists that include personally identifiable information, about individuals who access any Internet site of the
department or agency; and
(2) entering into agreements with third parties, including
other government agencies, to collect, review, or obtain aggregate lists or singular data containing personally identifiable
information relating to any individual’s access or viewing habits
for governmental and nongovernmental Internet sites.
This Act may be cited as the ‘‘Treasury and General Government Appropriations Act, 2001’’.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–171
APPENDIX D—H.R. 5666
That the following sums are appropriated, out of any money in
the Treasury not otherwise appropriated, for the fiscal year ending
September 30, 2001, and for other purposes, namely:
DIVISION A
CHAPTER 1
GENERAL PROVISIONS—THIS CHAPTER
SEC. 101. The Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2001,
is amended—
(1) In title III, under the heading ‘‘Rural Utilities Service,
Rural Electrification and Telecommunications Loans Program
Account’’, after ‘‘per year’’ insert ‘‘: Provided further, That not
more than $100,000 shall be available for guarantees of private
sector loans’’.
(2) In title III, at the end of the first proviso under the
‘‘Rural Housing Assistance Grants’’ account, insert ‘‘in Mississippi and Alaska’’.
(3) In section 724, by striking ‘‘to Hispanic-serving institutions’’ and all that follows through ‘‘maintained by such institutions’’ and inserting ‘‘to eligible grantees specified in subsection
(d)(3) of that section’’;
(4) In title VIII, under the heading ‘‘Rural Community
Advancement Program’’, by striking ‘‘January 1, 2001’’ and
inserting ‘‘January 1, 2000’’;
(5) In section 806, by inserting ‘‘: Provided further, That
of the funds made available by this section, the Secretary
shall transfer $5,000,000 to the State of Alabama to be used
in conjunction with the program administered by the Alabama
Department of Agriculture and Industries: Provided further,
That of the funds made available by this section, the Secretary
shall transfer not more than $300,000 to the State of Montana
for transportation needs associated with emergency haying and
feeding: Provided further, That of the funds made available
by this section, the Secretary shall use not more than
$2,000,000 to carry out a program for income losses sustained
before April 30, 2001, by individuals who raise poultry owned
by other individuals as a result of Poult Enteritis Mortality
Syndrome control programs, as determined by the Secretary’’
after ‘‘American Indian Livestock Feed Program’’;
(6) In section 815(d)(3), by inserting ‘‘affected’’ after ‘‘all’’;
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114 STAT. 2763A–172
PUBLIC LAW 106–554—APPENDIX D
(7) In section 830, by striking ‘‘section 401’’ and inserting
‘‘title IV’’.
(8) In section 843, by striking ‘‘were unable to market
the crops’’ and all that follows through ‘‘in this section:’’ and
inserting ‘‘suffered a loss because of the insolvency of an agriculture cooperative in the State of California: Provided, That
the amount of a payment made to a producer under this section
shall not exceed 50 percent of the loss referred to in this
section:’’;
(9) In section 844—
(A) in the section heading, by inserting ‘‘, FLUECURED, AND CIGAR BINDER TYPE 54–55’’ after ‘‘BURLEY’’; and
(B) in subsection (a)—
(i) in paragraph (1)—
(I) by inserting ‘‘, without further cost to the
association,’’ after ‘‘settle’’; and
(II) by inserting ‘‘, Flue-cured, or Cigar Binder
Type 54–55’’ after ‘‘Burley’’ each place it appears;
(ii) in paragraph (2)(B), by inserting ‘‘, Flue-cured,
Cigar Binder Type 54–55,’’ after ‘‘Burley’’; and
(iii) in paragraph (3), by striking subparagraph
(A) and inserting the following:
‘‘(A) counted for the purpose of determining the Burley,
Flue-cured, or Cigar Binder Type 54–55 tobacco quota or
allotment for any year under part I of subtitle B of title
III of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1311 et seq.); or’’;
(10) Notwithstanding any other provision of law, section
204(b)(10)(B) of Public Law 106–224 shall not be effective until
July 1, 2001; and
(11) The effective date of this section is the date of enactment of the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2001.
SEC. 102. The second sentence of section 520 of the Housing
Act of 1949 (42 U.S.C. 1490) is amended by striking ‘‘1990 decennial
census’’ and inserting ‘‘1990 or 2000 decennial census’’, and by
striking ‘‘year 2000’’ and inserting ‘‘year 2010’’.
SEC. 103. The Secretary of Agriculture, in collaboration with
the Secretaries of Energy and Interior, shall undertake a study
of the feasibility of including ethanol, biodiesel, and other biobased fuels as part of the Strategic Petroleum Reserve. This study
shall include a review of legislative and regulatory changes needed
to allow this inclusion, and those elements necessary to design
and implement such a program, including cost. The Secretary shall
provide this study to the House and Senate Appropriations Committees by February 15, 2001.
SEC. 104. Notwithstanding section 730 of the Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2000 (Public Law 106–78), the City of Wilson,
North Carolina, shall be eligible in fiscal year 2001 for the community facility loan guarantee program under section 306(a)(1) of
the Consolidated Farm and Rural Development Act.
SEC. 105. Title VIII of the Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act, 2001, is amended by inserting at the end the following
new section:
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–173
‘‘SEC. 778. Notwithstanding section 723 of this Act or any
other provision of law, there are hereby appropriated $26,000,000,
to remain available until expended, for the program authorized
under section 334 of the Federal Agriculture Improvement and
Reform Act of 1996: Provided, That the entire amount shall be
available only to the extent an official budget request for
$26,000,000, that includes designation of the entire amount of the
request as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended,
is transmitted by the President to the Congress: Provided further,
That the entire amount is designated by the Congress as an emergency requirement pursuant to section 251(b)(2)(A) of such Act.’’.
SEC. 106. In carrying out the bovine tuberculosis eradication
program covered by the Secretary of Agriculture’s emergency declaration effective as of October 11, 2000, the Secretary of Agriculture
shall pay 100 percent of the amounts of approved claims for materials affected by or exposed to bovine tuberculosis, and of approved
claims growing out of the destruction of animals: Provided, That
in calculating the net present value of the future income portion
of any claim, the Secretary shall use a discount rate of 7 percent:
Provided further, That the entire amount necessary to carry out
this section shall be available only to the extent that an official
budget request for the entire amount, that includes designation
of the entire amount of the request as an emergency requirement
as defined in the Balanced Budget and Emergency Deficit Control
Act of 1985, as amended, is transmitted by the President to the
Congress: Provided further, That the entire amount is designated
by the Congress as an emergency requirement pursuant to section
251(b)(2)(A) of such Act.
SEC. 107. Section 820(b) of the Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act, 2001, is amended by striking ‘‘of 1996’’ and inserting
the following: ‘‘of 1996, and for the Farmland Protection Program
established under section 388 of the Federal Agriculture Improvement and Reform Act of 1996’’.
SEC. 108. For an additional amount for the United States
Department of Agriculture, Office of the General Counsel, $500,000:
Provided, That the entire amount shall be available only to the
extent an official budget request for $500,000, that includes designation of the entire amount of the request as an emergency requirement as defined in the Balanced Budget and Emergency Deficit
Control Act of 1985, as amended, is transmitted by the President
to the Congress: Provided further, That the entire amount is designated by the Congress as an emergency requirement pursuant
to section 251(b)(2)(A) of such Act.
SEC. 109. For an additional amount for Grain Inspection, Packers and Stockyards Administration, Salaries and Expenses,
$200,000: Provided, That the entire amount shall be available only
to the extent an official budget request for $200,000, that includes
designation of the entire amount of the request as an emergency
requirement as defined in the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended, is transmitted by the
President to the Congress: Provided further, That the entire amount
is designated by the Congress as an emergency requirement pursuant to section 251(b)(2)(A) of such Act.
SEC. 110. Notwithstanding any other provision of law, the
Natural Resources Conservation Service may provide financial and
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114 STAT. 2763A–174
PUBLIC LAW 106–554—APPENDIX D
technical assistance to the Hamakua Ditch project in Hawaii from
funds available for the Emergency Watershed Program, not to
exceed $3,000,000.
CHAPTER 2
DEPARTMENT OF JUSTICE
FEDERAL PRISON SYSTEM
SALARIES AND EXPENSES
For an additional amount for ‘‘Salaries and Expenses’’,
$500,000, to remain available until expended: Provided, That these
funds are to be expended by the National Institute of Corrections
(NIC) for a comprehensive assessment of medical care and incidents
of inmate mortality in the Wisconsin State Prison System.
OFFICE
OF
JUSTICE PROGRAMS
JUSTICE ASSISTANCE
For an additional amount for ‘‘Justice Assistance’’, $300,000,
to remain available until expended: Provided, That these funds
are to be expended to expand the collection of data on prisoner
deaths while in law enforcement custody.
COMMUNITY ORIENTED POLICING SERVICES
For an additional amount for ‘‘Community Oriented Policing
Services’’, $3,080,000, to remain available until expended, of which
$1,880,000 shall be for a grant to the Pasadena, California, Police
Department for equipment; of which $200,000 shall be for a grant
to the City of Signal Hill, California, for equipment and technology
for an emergency operations center; and of which $1,000,000 shall
be for a grant to the State of Alabama Department of Forensic
Sciences for equipment.
JUVENILE JUSTICE PROGRAMS
For an additional amount for ‘‘Juvenile Justice Programs’’,
$1,000,000, to remain available until expended, for a grant to Mobile
County, Alabama, for a juvenile court network program.
GENERAL PROVISIONS
SEC. 201. Chapter 2 of title II of division B of Public Law
106–246 (114 Stat. 542) is amended in the matter immediately
under the first heading—
(1) by inserting, ‘‘(or the State, in the case of New Mexico)’’
before ‘‘only’’; and
(2) by inserting, ‘‘detention costs,’’ after ‘‘court costs,’’.
SEC. 202. For an additional amount under the heading ‘‘United
States Attorneys, Salaries and Expenses’’ in the Departments of
Commerce, Justice, and State, the Judiciary, and Related Agencies
Appropriations Act, 2001, $10,000,000 for the State of Texas and
$2,000,000 for the State of Arizona, to reimburse county and municipal governments only for Federal costs associated with the handling
and processing of illegal immigration and drug and alien smuggling
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–175
cases, such reimbursements being limited to court costs, detention
costs, courtroom technology, the building of holding spaces, administrative staff, and indigent defense costs.
SEC. 203. In addition to amounts appropriated under the heading ‘‘State and Local Law Enforcement Assistance, Office of Justice
Programs’’ in the Departments of Commerce, Justice, and State,
the Judiciary, and Related Agencies Appropriations Act, 2001,
$9,000,000 is for an award to the Alliance of Boys & Girls of
South Carolina for the establishment of the Strom Thurmond Boys
& Girls Club National Training Center.
SEC. 204. In addition to any amounts made available for ‘‘State
and Local Law Enforcement Assistance’’ within the Department
of Justice, $500,000 shall be made available only for the New
Hampshire Department of Safety to investigate and support the
prosecution of violations of Federal trucking laws.
SEC. 205. In addition to other amounts made available for
the COPS technology program of the Department of Justice,
$4,000,000 shall be available to the State of South Dakota to
establish a regional radio system to facilitate communications
between Federal, State, and local law enforcement agencies, firefighting agencies, and other emergency services agencies.
DEPARTMENT OF COMMERCE
ECONOMIC
AND
STATISTICAL ANALYSIS
SALARIES AND EXPENSES
For an additional amount for ‘‘Salaries and Expenses’’,
$200,000, to remain available until expended, for the establishment
of satellite accounts for the travel and tourism industry.
NATIONAL OCEANIC
AND
ATMOSPHERIC ADMINISTRATION
OPERATIONS, RESEARCH, AND FACILITIES
For an additional amount for ‘‘Operations, Research, and Facilities’’, $750,000, to remain available until expended, for a study
by the National Academy of Sciences pursuant to H.R. 2090, as
passed by the House of Representatives on September 12, 2000.
GENERAL PROVISIONS
SEC. 206. The Departments of Commerce, Justice, and State,
the Judiciary, and Related Agencies Appropriations Act, 2001, as
enacted by section 1(a)(2) of the Act entitled ‘‘An Act making appropriations for the government of the District of Columbia and other
activities chargeable in whole or in part against revenues of said
District for the fiscal year ending September 30, 2001, and for
other purposes’’ is amended by inserting before the period at the
end of the paragraph under the heading ‘‘National Oceanic and
Atmospheric Administration, Operations, Research, and Facilities’’
the following new proviso: ‘‘: Provided further, That, of the amounts
made available for the National Marine Fisheries Service under
this heading, $10,000,000 shall be available only for research
regarding litigation concerning the Alaska Steller sea lion and
Bering Sea/Aleutian Islands and Gulf of Alaska groundfish fisheries,
of which $6,000,000 shall be available only for the Office of Oceanic
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114 STAT. 2763A–176
PUBLIC LAW 106–554—APPENDIX D
and Atmospheric Research to study the impact of ocean climate
shifts on the North Pacific and Bering Sea fish and marine mammal
species composition, of which $2,000,000 shall be available only
for the National Ocean Service to study predator/prey relationships
as they relate to the decline of the western population of Steller
sea lions, and of which $2,000,000 shall be available only for the
North Pacific Fishery Management Council for an independent
analysis of Steller sea lion science and other work related to such
litigation’’.
SEC. 207. (a) In addition to amounts appropriated or otherwise
made available under the heading ‘‘Operations, Research, and
Facilities, National Oceanic and Atmospheric Administration’’ in
the Departments of Commerce, Justice, and State, the Judiciary,
and Related Agencies Appropriations Act, 2001, $7,500,000 is appropriated for disaster assistance for communities affected by the 2000
western Alaska salmon disaster for which the Secretary of Commerce declared a fishery failure under section 312(a) of the Magnuson Stevens Fisheries Conservation and Management Act.
(b) Funds appropriated by this section shall be made available
as direct lump sum payments no later than 30 days after the
date of enactment of this Act, as follows: $3,500,000 to the Tanana
Chiefs Conference, $3,500,000 to the Association of Village Council
Presidents, and $500,000 to Kawerak.
(c) Such funds shall be used to provide personal assistance
with priority given to: (1) food; (2) energy needs; (3) housing assistance; (4) transportation fuel including for subsistence activities;
and (5) other urgent community needs.
(d) Not more than 5 percent of such funds may be used for
administrative expenses.
(e) The President of the Tanana Chiefs Conference, the President of the Association of Village Council Presidents, and the President of Kawerak shall disburse all funds no later than May 1,
2000 and shall submit a report to the Secretary of Commerce
detailing the expenditure of funds, including the number of persons
and households served and the amount of administrative costs,
by the end of the fiscal year.
SEC. 208. In addition to amounts appropriated or otherwise
made available by this or any other Act, $3,000,000 is appropriated
to enable the Secretary of Commerce to provide economic assistance
to fishermen and fishing communities affected by Federal closures
and fishing restrictions in the Hawaii long line fishery, to remain
available until expended.
SEC. 209. IMPLEMENTATION OF STELLER SEA LION PROTECTIVE
MEASURES.—
(a) FINDINGS.—The Congress finds that—
(1) the western population of Steller sea lions has substantially declined over the last 25 years.
(2) scientists should closely research and analyze all possible factors relating to such decline, including the possible
interactions between commercial fishing and Steller sea lions
and the localized depletion hypothesis;
(3) the authority to manage commercial fisheries in Federal
waters lies with the regional councils and the Secretary of
Commerce (hereafter in this section ‘‘Secretary’’) pursuant to
the Magnuson-Stevens Fishery Conservation and Management
Act (hereafter in this section ‘‘Magnuson-Stevens Act’’); and
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–177
(4) the Secretary of Commerce shall comply with the
Magnuson-Stevens Act when using fishery management plans
and regulations to implement the decisions made pursuant
to findings under the Endangered Species Act, and shall utilize
the processes and procedures of the regional fishery management councils as required by the Magnuson-Stevens Act.
(b) INDEPENDENT SCIENTIFIC REVIEW.—The North Pacific Fishery Management Council (hereafter in this section ‘‘North Pacific
Council) shall utilize the expertise of the National Academy of
Sciences to conduct an independent scientific review of the November 30, 2000 Biological Opinion for the Bering Sea/Aleutian Islands
and Gulf of Alaska groundfish fisheries (hereafter in this section
‘‘Biological Opinion’’), its underlying hypothesis, and the Reasonable
and Prudent Alternatives (hereafter in this section ‘‘Alternatives’’)
contained therein. The Secretary shall cooperate with the independent scientific review, and the National Academy of Sciences is
requested to give its highest priority to this review.
(c) PREPARATION OF FISHERY MANAGEMENT PLANS AND REGULATIONS TO IMPLEMENT PROTECTIVE MEASURES IN THE NOVEMBER
30, 2000 BIOLOGICAL OPINION.—
(1) The Secretary of Commerce shall submit to the North
Pacific Council proposed conservation and management measures to implement the Alternatives contained in the November
30, 2000 Biological Opinion for the Bering Sea/Aleutian Islands
and Gulf of Alaska groundfish fisheries. The North Pacific
Council shall prepare and transmit to the Secretary a fishery
management plan amendment or amendments to implement
such Alternatives that are consistent with the Magnuson-Stevens Act (including requirements in such Act relating to best
available science, bycatch reduction, impacting on fishing
communities, the safety of life at sea, and public comment
and hearings.)
(2) The Bering Sea/Aleutian Islands and Gulf of Alaska
groundfish fisheries shall be managed in a manner consistent
with the Alternatives contained in the Biological Opinion,
except as otherwise provided in this section. The Alternatives
shall become fully effective no later than January 1, 2002,
as revised if necessary and appropriate based on the independent scientific review referred to in subsection (b) and other
new information, and shall be phased in in 2001 as described
in paragraph (3).
(3) The 2001 Bering Sea/Aleutian Islands and Gulf of
Alaska groundfish fisheries shall be managed in accordance
with the fishery management plan and Federal regulations
in effect for such fisheries prior to July 15, 2000, including—
(A) conservative total allowable catch levels;
(B) no entry zones within three miles of rookeries;
(C) restricted harvest levels near rookeries and haulouts;
(D) federally-trained observers;
(E) spatial and temporal harvest restrictions;
(F) federally-mandated bycatch reduction programs;
and
(G) additional conservation benefits provided through
cooperative fishing arrangements,
and said regulations are hereby restored to full force and effect.
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114 STAT. 2763A–178
PUBLIC LAW 106–554—APPENDIX D
(4) The Secretary shall amend these regulations by January
20, 2001, after consultation with the North Pacific Council
and in a manner consistent with all law, including the Magnuson-Stevens Act, and consistent with the Alternatives to the
maximum extent practicable, subject to the other provisions
of this subsection.
(5) The harvest reduction requirement (‘‘Global Control
Rule’’) shall take effect immediately in any 2001 groundfish
fishery in which it applies, but shall not cause a reduction
in the total allowable catch of any fishery of more than 10
percent.
(6) In enforcing regulations for the 2001 fisheries, the Secretary, upon recommendation of the North Pacific Council, may
open critical habitat where needed, adjust seasonal catch levels,
and take other measures as needed to ensure that harvest
levels are sufficient to provide income from these fisheries
for small boats and Alaskan on-shore processors that is no
less than in 1999.
(7) The regulations that are promulgated pursuant to paragraph (4) shall not be modified in any way other than upon
recommendation of the North Pacific Council, before March
15, 2001.
(d) SEA LION PROTECTION MEASURES.—$20,000,000 is hereby
appropriated to the Secretary of Commerce to remain available
until expended to develop and implement a coordinated, comprehensive research and recovery program for the Steller sea lion, which
shall be designed to study—
(1) available prey species;
(2) predator/prey relationships;
(3) predation by other marine mammals;
(4) interactions between fisheries and Steller sea lions,
including the localized depletion theory;
(5) regime shift, climate change, and other impacts associated with changing environmental conditions in the North
Pacific and Bering Sea;
(6) disease;
(7) juvenile and pup survival rates;
(8) population counts;
(9) nutritional stress;
(10) foreign commercial harvest of sealions outside the
exclusive economic zone;
(11) the residual impacts of former government-authorized
Steller sea lion eradication bounty programs; and
(12) the residual impacts of intentional lethal takes of
Steller sea lions.
Within available funds the Secretary shall implement on a pilot
basis innovative non-lethal measures to protect Steller sea lions
from marine mammal predators including killer whales.
(e) ECONOMIC DISASTER RELIEF.—$30,000,000 is hereby appropriated to the Secretary of Commerce to make available as a direct
payment to the Southwest Alaska Municipal Conference to distribute to fishing communities, businesses, community development
quota groups, individuals, and other entities to mitigate the economic losses caused by Steller sea lion protection measures heretofore incurred; provided that the President of such organization
shall provide a written report to the Secretary and the House
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–179
and Senate Appropriations Committee within 6 months of receipt
of these funds.
DEPARTMENT OF STATE AND RELATED AGENCY
GENERAL PROVISIONS
SEC. 210. In addition to any amounts made available for ‘‘Educational and Cultural Exchange Programs within the Department
of State’’, $500,000 shall be made available only for the Irish
Institute.
SEC. 211. In addition to amounts appropriated under the heading ‘‘International Broadcasting Operations, Broadcasting Board of
Governors’’ in the Departments of Commerce, Justice, and State,
the Judiciary, and Related Agencies Appropriations Act, 2001,
$10,000,000 to remain available until expended, for increased broadcasting to Russia and surrounding areas, and to China, by Radio
Free Europe/Radio Liberty, Radio Free Asia, and the Voice of America: Provided, That any amount of such funds may be transferred
to the ‘‘Broadcasting Capital Improvements’’ account to carry out
such purposes.
RELATED AGENCIES
COMMISSION
ON
ONLINE CHILD PROTECTION
For necessary expenses of the Commission on Online Child
Protection, $750,000, to remain available until expended.
SMALL BUSINESS ADMINISTRATION
SALARIES AND EXPENSES
For an additional amount for ‘‘Salaries and Expenses’’,
$1,000,000 shall be available for a grant to the Electronic Commerce
Resource Center in Scranton, Pennsylvania, to establish an electronic commerce technology distribution center.
GENERAL PROVISION
SEC. 212. For an additional amount for ‘‘Small Business
Administration, Salaries and Expenses’’, $1,000,000 shall be made
available only for a grant to the National Museum of Jazz in
New York, New York.
GENERAL PROVISION—THIS CHAPTER
SEC. 213. (a) The provisions of H.R. 5548 (as enacted into
law by H.R. 4942 of the 106th Congress) are amended as follows:
(1) In title I, under the heading ‘‘Salaries and Expenses,
United States Marshals Service’’, by striking ‘‘3,947’’ and inserting ‘‘4,034’’.
(2) In title I, by redesignating sections 114 through 119
as sections 113 through 118, respectively.
(3) In title II, under the heading ‘‘National Oceanic and
Atmospheric Administration—Operations, Research, and Facilities’’, by striking ‘‘$31,439,000’’ and inserting ‘‘$32,054,000’’.
(4) In title II, under the heading ‘‘National Oceanic and
Atmospheric Administration—Coastal and Ocean Activities’’—
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114 STAT. 2763A–180
PUBLIC LAW 106–554—APPENDIX D
(A) by striking ‘‘non-contiguous States except Hawaii’’
and inserting ‘‘Alaska’’;
(B) by striking ‘‘Inc,’’ and inserting ‘‘Inc.,’’;
(C) by striking ‘‘scrup;’’ and inserting ‘‘scrub;’’; and
(D) by striking ‘‘watershed for lower Rouge River restoration:’’ and inserting ‘‘watershed:’’.
(5) In title IV, by striking section 406 and by redesignating
sections 407 and 408 as sections 406 and 407, respectively.
(6) In title VI, by striking sections 635 and 636.
(7) In title IX, in the first proviso of section 901, by striking
‘‘, territory or an Indian Tribe’’ and inserting ‘‘or territory’’.
(b) The amendments made by this section shall take effect
as if included in H.R. 4942 of the 106th Congress on the date
of its enactment.
CHAPTER 3
DEPARTMENT OF DEFENSE
GENERAL PROVISIONS—THIS CHAPTER
SEC. 301. In the event that award of the full funding contract
for low-rate initial production of the F–22 aircraft is delayed beyond
December 31, 2000 because of inability to complete the requirements
specified in section 8124 of the Department of Defense Appropriations Act, 2001 (Public Law 106–259), the Secretary of the Air
Force may obligate up to $353,000,000 of the funds appropriated
in title III of Public Law 106–259 to continue F–22 Lot 1 (10
aircraft) advance procurement to protect the supplier base and
preserve program costs and schedule.
SEC. 302. (a) Consistent with Executive Order Number 1733,
dated March 3, 1913, and notwithstanding section 303 of the Alaska
National Interest Lands Conservation Act, Public Law 96–487, or
any other law, the Department of the Air Force shall have primary
jurisdiction, custody, and control over Shemya Island and its appurtenant waters (including submerged lands). In exercising such primary jurisdiction, custody, and control, the Secretary of the Air
Force may utilize and apply such authorities as are generally
applicable to a military installation, base, camp, post, or station.
Shemya Island and its appurtenant waters (including submerged
lands) shall continue to be included within the Alaska Maritime
National Wildlife Refuge and the National Wildlife Refuge System
and the Secretary of the Interior shall have jurisdiction secondary
to that of the Department of the Air Force. Nothing in this section
shall prohibit the transfer of jurisdiction, custody, and control over
Shemya Island by the Department of the Air Force to another
military department. In the event the military department exercising such primary jurisdiction, custody, and control no longer has
a need to exercise such primary jurisdiction, custody, and control
of Shemya Island and its appurtenant waters (including submerged
lands), such jurisdiction, custody, and control shall terminate and
the Secretary of the Interior shall then exercise sole jurisdiction,
custody, and control over Shemya Island and its appurtenant waters
(including submerged lands) as part of the Alaska Maritime
National Wildlife Refuge.
(b) Any environmental contamination of Shemya Island caused
by a military department shall be the responsibility of that military
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–181
department and not the responsibility of the Department of the
Interior. Any money rentals received by a military department
from outgrants on Shemya Island will be applied to the environmental restoration of the island in accordance with 10 U.S.C. 2667.
(c) This section shall not be construed as altering any existing
property rights of the State of Alaska or any private person.
(d) The military department exercising primary jurisdiction,
custody, and control over Shemya Island shall, consistent with
the accomplishment of the military mission and subject to section
21 of the Internal Security Act of 1950, Public Law 81–831 (50
U.S.C. 797) (also known as the Subversive Activities Control Act
of 1950)—
(1) work with the United States Fish and Wildlife Service
to protect and conserve the wildlife and habitat on the island;
and
(2) grant access to Shemya Island and its appurtenant
waters to the United States Fish and Wildlife Service for the
purpose of management of the Alaska Maritime National Wildlife Refuge.
SEC. 303. Within the funds appropriated for the Patriot PAC–
3 program under title III of the Department of Defense Appropriations Act, 2001 (Public Law 106–259), the Ballistic Missile Defense
Organization shall procure no less than 40 PAC–3 missiles.
SEC. 304. Section 8133 of Public Law 106–259 (114 Stat. 703)
is amended by striking ‘‘$300,000,000’’ in the first proviso and
inserting ‘‘$550,000,000’’.
(TRANSFER
OF FUNDS)
SEC. 305. Of the total amount appropriated by title II of the
Department of Defense Appropriations Act, 2001 (Public Law 106–
259) for operation and maintenance for the Armed Force or Armed
Forces under the jurisdiction of the Secretary of a military department, the Secretary of that military department may transfer up
to $2,000,000 to the central fund established by the Secretary
under section 2493(d) of title 10, United States Code, for funding
Fisher Houses and Fisher Suites. Amounts so transferred shall
be merged with other amounts in the central fund to which transferred and shall be available without fiscal year limitation for
the purposes for which amounts in that fund are available.
SEC. 306. FUNDING FOR CERTAIN COSTS OF VESSEL TRANSFERS.
There is hereby appropriated into the Defense Vessels Transfer
Program Account such sums as may be necessary for the costs
(as defined in section 502 of the Congressional Budget Act of 1974
(2 U.S.C. 661a)) of the lease-sale transfers authorized by the
National Defense Authorization Act, 2001. Funds in that account
are available only for the purpose of covering those costs.
SEC. 307. Of the total amount appropriated by title IV of
the Department of Defense Appropriations Act, 2001 (Public Law
106–259) under the heading ‘‘Research, Development, Test and
Evaluation, Defense-Wide’’, not less than $5,000,000 shall be made
available only for support of a Gulf War illness research program
at the University of Texas Southwestern Medical Center.
(INCLUDING
TRANSFER OF FUNDS)
SEC. 308. In addition to amounts appropriated for the Department of Defense in the Department of Defense Appropriations Act,
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114 STAT. 2763A–182
PUBLIC LAW 106–554—APPENDIX D
2001 (Public Law 106–259), $150,000,000 is hereby appropriated
for ‘‘Operation and Maintenance, Navy’’ and shall remain available
until expended, only for costs associated with the repair of the
U.S.S. COLE: Provided, That the Secretary of Defense may transfer
these funds to appropriations accounts for procurement: Provided
further, That the funds transferred shall be merged with and shall
be available for the same purposes and for the same time period,
as the appropriation to which transferred: Provided further, That
the transfer authority provided in this section is in addition to
any other transfer authority available to the Department of Defense:
Provided further, That the welfare of the crew, and of the families
of the crew, of the U.S.S. COLE shall be considered in the Navy’s
selection of the process and location for the repair of the U.S.S.
COLE: Provided further, That the entire amount made available
in this section is designated by the Congress as an emergency
requirement pursuant to section 251(b)(2)(A) of the Balanced Budget
and Emergency Deficit Control Act of 1985, as amended.
SEC. 309. Notwithstanding any other provision of law, the
Administrator of the General Services Administration may utilize
funds available to the National Science and Technology Council
(authorized by Executive Order No. 12881), or any successor entity
to the council, under section 635 of the Treasury and General
Government Appropriations Act, 2001, for payment of any expenses
of, and shall ensure that administrative services, facilities, staff
and other support are provided for, the Commission on the Future
of the United States Aerospace Industry pursuant to section
1092(e)(1) of the Floyd D. Spence National Defense Authorization
Act for Fiscal Year 2001 (as enacted by section 1 of the Act to
authorize appropriations for fiscal year 2001 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for
other purposes).
SEC. 310. In addition to funds provided elsewhere in this Act,
or in the Department of Defense Appropriations Act, 2001 (Public
Law 106–259), $2,000,000 is hereby appropriated to ‘‘Operation
and Maintenance, Marine Corps’’, only for planning and National
Environmental Protection Act documentation for the proposed airfield and heliport at the Marine Corps Air Ground Task Force
Training Command.
(TRANSFER
OF FUNDS)
SEC. 311. Of the funds made available in the Department
of Defense Appropriations Act, 2001 (Public Law 106–259), the
Secretary of the Air Force shall transfer $5,000,000 of the funds
provided for ‘‘Operation and Maintenance, Air Force’’ to the Secretary of the Interior for maintenance, protection, or preservation
of the land and interests in land described in section 3 of the
Minuteman Missile National Historic Site Establishment Act of
1999 (Public Law 106–115; 113 Stat. 1540): Provided, That the
transfer authority provided in this section is in addition to any
other transfer authority available to the Department of Defense
for fiscal year 2001.
SEC. 312. (a) The Secretary of the Air Force is authorized
to convey to the Roosevelt General Hospital, Portales, New Mexico,
without consideration, and without regard to title II of the Federal
Property and Administrative Services Act of 1949, all right, title,
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–183
and interest of the United States in any personal property of the
Air Force that the Secretary determines—
(1) is appropriate for use by the Roosevelt General Hospital
in the operation of that hospital; and
(2) is excess to the needs of the Air Force.
(b) The Secretary may require any additional terms and conditions in connection with any conveyance under subsection (a) that
the Secretary considers appropriate to protect the interests of the
United States.
(INCLUDING
TRANSFER OF FUNDS)
SEC. 313. In addition to amounts appropriated for the Department of Defense in the Department of Defense Appropriations Act,
2001 (Public Law 106–259), $100,000,000 is hereby appropriated
for ‘‘Overseas Contingency Operations Transfer Fund’’ and shall
remain available until expended: Provided, That the Secretary of
Defense may transfer the funds provided herein only to appropriations for military personnel; operation and maintenance; procurement; research, development, test and evaluation; and working
capital funds: Provided further, That the funds transferred shall
be merged with and shall be available for the same purposes and
for the same time period, as the appropriation to which transferred:
Provided further, That upon a determination that all or part of
the funds transferred from this appropriation are not necessary
for the purposes provided herein, such amounts may be transferred
back to this appropriation: Provided further, That the transfer
authority provided in this section is in addition to any other transfer
authority contained elsewhere in this Act: Provided further, That
funds appropriated by this section, or made available by the transfer
of funds in this section, for intelligence activities are deemed to
be specifically authorized by the Congress for the purposes of section
504 of the National Security Act of 1947 (50 U.S.C. 414) during
fiscal year 2001: Provided further, That the entire amount made
available in this section is designated by the Congress as an emergency requirement pursuant to section 251(b)(2)(A) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as amended.
SEC. 314. Of the total amount appropriated by title IV of
the Department of Defense Appropriations Act, 2001 (Public Law
106–259) under the heading ‘‘Research, Development, Test and
Evaluation, Navy’’, up to $3,000,000 shall be made available to
the Marine Corps to pursue research in Nanotechnology for Consequence Management.
SEC. 315. Of the total amount appropriated by title IV of
the Department of Defense Appropriations Act, 2001 (Public Law
106–259) under the heading ‘‘Research, Development, Test and
Evaluation, Army’’, not less than $1,500,000 shall be made available
only for installation of the Medical Area Network for Virtual Technologies at Fort Detrick and Walter Reed Army Hospital, and
not less than $1,000,000 shall be made available only to conduct
a pilot study to determine the feasibility of establishing a Department of Defense Information Analysis Center for telemedicine.
SEC. 316. The Secretary of the Navy shall acquire 50 acres
of real property located on Reed Island, along the south shore
of the St. John’s River across from Blount Island Command,
Jacksonville, Florida. The Secretary of the Navy shall pay not
more than the fair market value of the property, to be determined
pursuant to an appraisal acceptable to the Secretary of the Navy;
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114 STAT. 2763A–184
PUBLIC LAW 106–554—APPENDIX D
but in no case shall the price exceed $4,200,000: Provided, That
the exact acreage and legal description of the real property to
be acquired pursuant to this section shall be determined by a
survey satisfactory to the Secretary of the Navy: Provided further,
That the Secretary of the Navy may require such additional terms
and conditions in connection with the land acquisition pursuant
to this section as the Secretary considers appropriate to protect
the interests of the United States.
SEC. 317. Of the total amount appropriated by title IV of
the Department of Defense Appropriations Act, 2001 (Public Law
106–259) under the heading ‘‘Research, Development, Test, and
Evaluation, Navy’’ the Secretary of the Navy may establish Marine
Fire Training Centers at the Marine and Environmental Research
and Training Station and Barbers Point by grants or contracts.
SEC. 318. Notwithstanding any other provision of law, and
notwithstanding the provisions in section 7306 of title 10, United
States Code, of the funds provided in the Department of Defense
Appropriations Act, 2001 (Public Law 106–259) for ‘‘Operation and
Maintenance, Navy’’, $750,000 shall be available only for repair
of ex-Turner Joy.
SEC. 319. In addition to amounts appropriated or otherwise
made available for the Department of Defense elsewhere in this
Act or in the Department of Defense Appropriations Act, 2001
(Public Law 106–259), $2,000,000 is hereby appropriated under
the heading ‘‘Operation and Maintenance, Defense-Wide’’, to remain
available for obligation until September 30, 2001, only for the
Defense Imagery and Mapping Agency Program.
SEC. 320. None of the funds available in the Department of
Defense Appropriations Act, 2001 (Public Law 106–259) shall be
used to consolidate or incorporate Air Force radar operations
maintenance and support programs or contracts into an Air Force
SENSOR or a similar acquisition program.
SEC. 321. In addition to amounts appropriated elsewhere in
this Act, or in the Department of Defense Appropriations Act,
2001 (Public Law 106–259), $1,000,000 is hereby appropriated to
‘‘Research, Development, Test and Evaluation, Air Force’’, only to
develop rapid diagnostic and fingerprinting techniques along with
molecular monitoring systems for the detection of nosocomial infections.
SEC. 322. Of the total amount appropriated by title IV of
the Department of Defense Appropriations Act, 2001 (Public Law
106–259) under the heading ‘‘Research, Development, Test and
Evaluation, Navy’’, $1,500,000 shall be made available by grant
or contract only to the California Central Coast Research Partnership (C3RP).
SEC. 323. FORT IRWIN NATIONAL TRAINING CENTER EXPANSION.
(a) FINDINGS.—Congress makes the following findings:
(1) The National Training Center at Fort Irwin, California,
is the only instrumented training area in the world suitable
for live fire training of heavy brigade-sized military forces and
thus provides the Army with essential training opportunities
necessary to maintain and improve military readiness and promote national security.
(2) The National Training Center must be expanded to
meet the critical need of the Army for additional training
lands suitable for the maneuver of large numbers of military
personnel and equipment, which is necessitated by advances
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–185
in equipment, by doctrinal changes, and by Force XXI doctrinal
experimentation requirements.
(3) The lands being considered for expansion of the National
Training Center are home to the desert tortoise and other
species that are protected under the Endangered Species Act
of 1973, and the Secretary of Defense and the Secretary of
the Interior, in developing a plan for expansion of the National
Training Center, must provide for such expansion in a manner
that complies with the Endangered Species Act of 1973, the
National Environmental Policy Act of 1969, and other
applicable laws.
(4) In order for the expansion of the National Training
Center to be implemented on an expedited basis, the Secretaries
should proceed without delay to define with specificity the
key elements of the expansion plan, including obtaining early
input regarding national security requirements, Endangered
Species Act of 1973 compliance and mitigation, and National
Environmental Policy Act of 1969 compliance.
(b) PURPOSE.—The purpose of this section is to expedite the
expansion of the National Training Center at Fort Irwin, California,
in a manner that is fully compliant with environmental laws.
(c) PREPARATION OF PROPOSED EXPANSION PLAN.—
(1) PREPARATION REQUIRED.—The Secretary of the Army
and the Secretary of the Interior (in this section referred to
as the ‘‘Secretaries’’) shall jointly prepare a proposed plan for
the expansion of the National Training Center at Fort Irwin,
California.
(2) SUBMISSION AND AVAILABILITY.—The plan required by
paragraph (1) (in this section referred to as the ‘‘proposed
expansion plan’’) shall be completed not later than 120 days
after the date of the enactment of this Act. When completed,
the Secretaries shall make the proposed expansion plan available to the public and shall publish in the Federal Register
a ‘‘notice of availability’’ concerning the proposed expansion
plan.
(d) KEY ELEMENTS OF PROPOSED EXPANSION PLAN.—
(1) JOINT REPORT.—Not later than 45 days after the date
of the enactment of this Act, the Secretaries shall submit to
Congress a joint report that identifies the key elements of
the proposed expansion plan.
(2) LANDS WITHDRAWAL AND RESERVATION.—The proposed
expansion plan shall include the withdrawal and reservation
of an appropriate amount of public lands for—
(A) the conduct of combined arms military training
at the National Training Center;
(B) the development and testing of military equipment
at the National Training Center;
(C) other defense-related purposes; and
(D) conservation and research purposes.
(3) CONSERVATION MEASURES.—The proposed expansion
plan shall also include a general description of conservation
measures, anticipated to cost approximately $75,000,000, that
may be necessary and appropriate to protect and promote the
conservation of the desert tortoise and other endangered or
threatened species and their critical habitats in designated
wildlife management areas in the West Mojave Desert. The
conservation measures may include—
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114 STAT. 2763A–186
PUBLIC LAW 106–554—APPENDIX D
(A) the establishment of one or more research natural
areas, which may include lands both within and outside
the National Training Center;
(B) the acquisition of private and State lands within
the wildlife management areas in the West Mojave Desert;
(C) the construction of barriers, fences, and other structures that would promote the conservation of endangered
or threatened species and their critical habitats;
(D) the funding of research studies; and
(E) other conservation measures.
(d) PRELIMINARY REVIEW OF EXPANSION PLAN.—
(1) REVIEW REQUIRED.—Not later than 90 days after the
date of the enactment of this Act, the Director of the United
States Fish and Wildlife Service shall submit to the Secretaries
a preliminary review of the proposed expansion plan (as developed as of that date). In the preliminary review, the Director
shall identify, with as much specificity as possible, an approach
for implementing the proposed expansion plan consistent with
the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.).
(2) RELATION TO FORMAL REVIEW.—The preliminary review
under paragraph (1) shall not constitute a formal consultation
under section 7 of the Endangered Species Act of 1973 (16
U.S.C. 1536), but shall be used to assist the Secretaries in
more precisely defining the nature and scope of an expansion
plan for the National Training Center that is likely to satisfy
requirements of the Endangered Species Act of 1973 and to
expedite the formal consultation process under section 7 of
such Act.
(3) CONSIDERATION OF PRELIMINARY REVIEW.—In preparing
the proposed expansion plan, the Secretaries shall take into
account the content of the preliminary review by the Director
of the United States Fish and Wildlife Service under paragraph
(1).
(e) DRAFT LEGISLATION.—The Secretaries shall submit to Congress with the proposed expansion plan a draft of proposed legislation providing for the withdrawal and reservation of public lands
for the expansion of the National Training Center. It is the sense
of the Congress that the proposed legislation should contain a
provision that, if enacted, would prohibit ground-disturbing military
use of the land to be withdrawn and reserved by the legislation
until the Secretaries have certified that there has been full compliance with the appropriate provisions of the legislation, the Endangered Species Act of 1973, the National Environmental Policy Act
of 1969, and other applicable laws.
(f ) CONSULTATION UNDER ENDANGERED SPECIES ACT OF 1973.—
The Secretaries shall initiate the formal consultation required under
section 7 of the Endangered Species Act of 1973 (16 U.S.C. 1536)
with respect to expansion of the National Training Center as soon
as practicable and shall complete such consultation not later than
2 years after the date of the enactment of this Act.
(g) ENVIRONMENTAL REVIEW.—Not later than 6 months following completion of the formal consultation required under section
7 of the Endangered Species Act of 1973 with respect to expansion
of the National Training Center, the Secretaries shall complete
any analysis required under the National Environmental Policy
Act of 1969 with respect to the proposed expansion of the National
Training Center. The analysis shall be coordinated, to the extent
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–187
practicable and appropriate, with the review of the West Mojave
Coordinated Management Plan that, as of the date of the enactment
of this Act, is being undertaken by the Bureau of Land Management.
(h) FUNDING.—
(1) IMPLEMENTATION OF CONSERVATION MEASURES.—There
are authorized to be appropriated $75,000,000 to the Secretary
of the Army for the implementation of conservation measures
necessary for the final expansion plan for the National Training
Center to comply with the Endangered Species Act of 1973.
(2) IMPLEMENTATION OF SECTION.—The amounts of
$2,500,000 for ‘‘Operation and Maintenance, Army’’ and
$2,500,000 for ‘‘Management of Lands and Resources, Bureau
of Land Management’’ are hereby appropriated to the Secretary
of the Army and the Secretary of the Interior, respectively,
only to undertake and complete on an expedited basis the
activities specified in this section.
CHAPTER 4
DISTRICT OF COLUMBIA FEDERAL FUNDS
FEDERAL PAYMENT
TO THE
DISTRICT
OF
COLUMBIA COURTS
For an additional amount for the District of Columbia courts
for capital repairs necessitated by the recent fire damage to the
courthouse facilities, $350,000, to remain available until September
30, 2002, and for an additional amount for such repairs for the
Superior Court of the District of Columbia, $50,000: Provided, That
after providing notice to the Committees on Appropriations of the
Senate and House of Representatives, the District of Columbia
courts may reallocate not more than $1,000,000 of the funds provided under this heading under the District of Columbia Appropriations Act, 2001, among the items and entities funded under such
heading for the costs of such repairs.
GENERAL PROVISIONS—THIS CHAPTER
SEC. 401. (a) Section 106(b) of the District of Columbia Public
Works Act of 1954 (sec. 43–1552(b), D.C. Code), as amended by
section 133 of the District of Columbia Appropriations Act, 1990,
is amended—
(1) in the third sentence of paragraph (1), by striking
‘‘United States Treasury and’’ and all that follows through
‘‘by the’’; and
(2) by adding at the end the following new paragraph:
‘‘(5) Not later than the 15th day of the month following each
quarter (beginning with the first quarter of fiscal year 2001), the
inspector general of each Federal department, establishment, or
agency receiving water services from the District of Columbia shall
submit a report to the Committees on Appropriations of the House
of Representatives and Senate analyzing the promptness of payment
with respect to the services furnished to such department, establishment, or agency.’’.
(b) Section 212(b) of the District of Columbia Public Works
Act of 1954 (sec. 43–1612(b), D.C. Code), as amended by section
133 of the District of Columbia Appropriations Act, 1990, is
amended—
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114 STAT. 2763A–188
PUBLIC LAW 106–554—APPENDIX D
(1) in the third sentence of paragraph (1), by striking
‘‘United States Treasury and’’ and all that follows through
‘‘by the’’; and
(2) by adding at the end the following new paragraph:
‘‘(5) Not later than the 15th day of the month following each
quarter (beginning with the first quarter of fiscal year 2001), the
inspector general of each Federal department, establishment, or
agency receiving sanitary sewer services from the District of Columbia shall submit a report to the Committees on Appropriations
of the House of Representatives and Senate analyzing the promptness of payment with respect to the services furnished to such
department, establishment, or agency.’’.
(c) The amendments made by this section shall take effect
as if included in the enactment of section 133 of the District of
Columbia Appropriations Act, 1990.
SEC. 402. (a) The Act entitled ‘‘An Act donating certain Lots
in the City of Washington for Schools for Colored Children in
the District of Columbia’’, approved July 28, 1866 (14 Stat. 343),
is amended by striking the second sentence.
(b) Section 319 of the Revised Statutes of the United States
relating to the District of Columbia and Post Roads (sec. 31–206,
D.C. Code) is repealed.
SEC. 403. RESTRICTIONS ON USE OF ANNUAL UNOBLIGATED BALANCE IN D.C. CRIME VICTIMS COMPENSATION FUND. (a) IN GENERAL.—Section 16(d) of the Victims of Violent Crime Compensation
Act of 1996 (sec. 3–435(d), D.C. Code), as added by section 160(d)
of the District of Columbia Appropriations Act, 2000, is amended
to read as follows:
‘‘(d) Any unobligated balance existing in the Fund in excess
of $250,000 as of the end of each fiscal year (beginning with fiscal
year 2000) may be used only in accordance with a plan developed
by the District of Columbia and approved by the Committees on
Appropriations of the Senate and House of Representatives, the
Committee on Government Reform of the House of Representatives,
and the Committee on Governmental Affairs of the Senate, and
not less than 80 percent of such balance shall be used for direct
compensation payments to crime victims through the Fund under
this section and in accordance with this Act.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect September 30, 2000.
SEC. 404. (a) Notwithstanding any provision of the District
of Columbia Appropriations Act, 2001, the District of Columbia
may fund the programs identified under the heading ‘‘Reserve’’
in H.R. 4942, One Hundred Sixth Congress, as introduced, subject
to the conditions described under such heading and upon certification by the District of Columbia Financial Responsibility and
Management Assistance Authority to the Committees on Appropriations of the Senate and House of Representatives that the Chief
Financial Officer of the District of Columbia, the Mayor of the
District of Columbia, and the Council of the District of Columbia
have identified and implemented such spending reductions as may
be necessary to ensure that the District of Columbia will not have
a budget deficit for fiscal year 2001.
(b)(1) Notwithstanding any provision of the District of Columbia
Appropriations Act, 2001, the use by the District of the funds
described in paragraph (2) for Pay-As-You-Go Capital Funds shall
be optional.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–189
(2) The funds described in this paragraph are funds set aside
for the reserve established by section 202( j) of the District of
Columbia Financial Responsibility and Management Assistance Act
of 1995 (as amended by section 148 of the District of Columbia
Appropriations Act, 2000) which are not used for purposes of any
reserve funds established under the District of Columbia Appropriations Act, 2001, or any amendments made by such Act.
(c)(1) The Mayor of the District of Columbia shall deposit the
annual interest savings resulting from debt reductions using the
proceeds of the tobacco securitization program into the emergency
reserve fund established under section 450A of the District of
Columbia Home Rule Act (as added by section 159 of the District
of Columbia Appropriations Act, 2001).
(2) This subsection shall apply with respect to fiscal year 2001
and each succeeding fiscal year until the requirements of section
450A of the District of Columbia Home Rule Act have been met.
SEC. 405. (a) Notwithstanding any provision of the District
of Columbia Appropriations Act, 2001, quarterly disbursements
shall be calculated and paid to District of Columbia public charter
schools during fiscal year 2001 in accordance with section 107a(b)
of the Uniform Per Student Funding Formula for Public Schools
and Public Charter Schools and Tax Conformity Clarification
Amendment Act of 1998 (sec. 31–2906.1(b), D.C. Code), as amended
by the Enrollment Integrity Act.
SEC. 406. (a) The provisions of H.R. 5547 (as enacted into
law by H.R. 4942 of the 106th Congress) are repealed and shall
be deemed for all purposes (including section 1(b) of H.R. 4942)
to have never been enacted.
(b) The repeal made by this section shall take effect as if
included in H.R. 4942 of the 106th Congress on the date of its
enactment.
CHAPTER 5
ENERGY AND WATER DEVELOPMENT
DEPARTMENT OF DEFENSE—CIVIL
DEPARTMENT OF THE ARMY
CORPS
OF
ENGINEERS—CIVIL
GENERAL INVESTIGATIONS
For an additional amount for ‘‘General Investigations’’,
$900,000, to remain available until expended: Provided, That
$100,000 shall be available for a reconnaissance study of shore
protection needs at North Topsail Beach, North Carolina; $100,000
shall be available for a reconnaissance study for the Passiac County,
New Jersey, water infrastructure project; $100,000 shall be available for a reconnaissance study of flooding, drainage and other
related problems in the Cayuga Creek Watershed, New York; and
$600,000 shall be available for a cost-shared feasibility study of
the restoration of the lower St. Anthony’s Falls natural rapids
in Minnesota.
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114 STAT. 2763A–190
PUBLIC LAW 106–554—APPENDIX D
CONSTRUCTION, GENERAL
For an additional amount for ‘‘Construction, General’’,
$2,750,000, to remain available until expended: Provided, That
$75,000 shall be available for planning and design of a project
to provide for floodplain evacuation in the watershed of Pond Creek,
Kentucky; $100,000 shall be available for design of recreation and
access features at the Louisville Waterfront Park in Kentucky;
$500,000 shall be available for a Limited Reevaluation Report for
the Central Boca Raton segment of the Palm Beach County, Florida,
shore protection project; and $75,000 shall be available to conduct
research on the eradication of Eurasian water milfoil at Houghton
Lake, Michigan: Provided further, That the Secretary of the Army,
acting through the Chief of Engineers, is authorized and directed
to use $2,000,000 of the funds appropriated herein to initiate design
and construction of the Hawaii Water Management Project, including Waiahole Ditch on Oahu, Kau Ditch on Maui, Pioneer Mill
Ditch on Hawaii, and the complex system on the west side of
Kauai: Provided further, That the Secretary of the Army may use
up to $5,000,000 of previously appropriated funds to carry out
the Abandoned and Inactive Noncoal Mine Restoration program
authorized by section 560 of Public Law 106–53.
FLOOD CONTROL, MISSISSIPPI RIVER AND TRIBUTARIES, ARKANSAS, ILLINOIS, KENTUCKY, LOUISIANA, MISSISSIPPI, MISSOURI, AND TENNESSEE
For an additional amount for ‘‘Flood Control, Mississippi River
and Tributaries, Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri, and Tennessee’’, $3,500,000, to remain available
until expended, for prosecuting work of repair, restoration or
maintenance of the Mississippi River levees, and for the correction
of deficiencies in the mainline Mississippi River levees.
DEPARTMENT OF THE INTERIOR
BUREAU
OF
RECLAMATION
WATER AND RELATED RESOURCES
For an additional amount for ‘‘Water and Related Resources’’,
$2,000,000, to remain available until expended, for construction
of the Mid-Dakota Rural Water System, in addition to amounts
made available under the Energy and Water Appropriations
Development Act, 2001.
DEPARTMENT OF ENERGY
ENERGY PROGRAMS
ENERGY SUPPLY
For an additional amount for ‘‘Energy Supply’’, $800,000, to
remain available until expended, for the Prime, LLC, of central
South Dakota, for final engineering and project development of
the integrated ethanol complex, including an ethanol unit, waste
treatment system, and enclosed cattle feed lot.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–191
SCIENCE
For an additional amount for ‘‘Science’’, $1,000,000, to remain
available until expended, for high temperature superconducting
research and development at Boston College.
CHAPTER 6
GENERAL PROVISIONS—THIS CHAPTER
SEC. 601. Of the funds appropriated under the heading Department of State, International Narcotics Control and Law Enforcement, in the Foreign Operations, Export Financing, and Related
Programs Appropriations Act, 2001, not less than $1,350,000 shall
be available only for the Protection Project to continue its study
of international trafficking, prostitution, slavery, debt bondage, and
other abuses of women and children.
SEC. 602. EMBASSY COMPENSATION AUTHORITY. Funds made
available under the heading ‘‘Other Bilateral Economic Assistance,
Economic Support Fund’’ included in the Foreign Operations, Export
Financing, and Related Programs Appropriations Act, 2001 (Public
Law 106–429) may be made available, notwithstanding any other
provision of law, to provide payment to the Government of the
People’s Republic of China for property loss and damage arising
out of the May 7, 1999 incident in Belgrade, Federal Republic
of Yugoslavia.
CHAPTER 7
DEPARTMENT OF THE INTERIOR
BUREAU
OF
LAND MANAGEMENT
LAND ACQUISITION
For an additional amount for ‘‘Land Acquisition’’, $5,000,000,
to be derived from the Land and Water Conservation Fund and
to remain available until expended, to carry out the provisions
of title VI of the Steens Mountain Cooperative Management and
Protection Act (Public Law 106–399): Provided, That sums necessary to complete the individual land exchanges identified under
title VI shall be provided within 30 days of each land exchange.
UNITED STATES FISH
AND
WILDLIFE SERVICE
RESOURCE MANAGEMENT
For an additional amount for ‘‘Resource Management’’, $500,000
for a grant to the Center for Reproductive Biology at Washington
State University.
MULTINATIONAL SPECIES CONSERVATION FUND
For an additional amount for the ‘‘Multinational Species Conservation Fund’’, $750,000, to remain available until expended,
for Great Ape conservation activities authorized by law.
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114 STAT. 2763A–192
PUBLIC LAW 106–554—APPENDIX D
NATIONAL PARK SERVICE
OPERATION OF THE NATIONAL PARK SYSTEM
For an additional amount for ‘‘Operation of the National Park
System’’, $100,000 for completion of studies related to the Arlington
Boathouse in Virginia.
NATIONAL RECREATION AND PRESERVATION
For an additional amount for ‘‘National Recreation and
Preservation’’, $1,600,000, to remain available until expended, of
which $500,000 is for the National Constitution Center in Philadelphia, Pennsylvania and $1,100,000 is for a grant to the Historic
New Bridge Landing Park Commission.
HISTORIC PRESERVATION FUND
For an additional amount for the ‘‘Historic Preservation Fund’’,
$100,000 for a grant to the Massillon Heritage Foundation, Inc.
in Massillon, Ohio.
CONSTRUCTION
For an additional amount for ‘‘Construction’’, $3,500,000, to
remain available until expended, of which $1,500,000 is for the
Stones River National Battlefield and $2,000,000 is for the Millennium Cultural Cooperative Park.
DEPARTMENT OF ENERGY
ENERGY CONSERVATION
For an additional amount for ‘‘Energy Conservation’’, $300,000,
to remain available until expended, for a grant to the Oak Ridge
National Laboratory/Nevada Test Site Development Corporation
for the development of: (1) cooling, refrigeration, and thermal energy
management equipment capable of using natural gas or hydrogen
fuels; and (2) improvement of the reliability of heat-activated cooling, refrigeration, and thermal energy management equipment used
in combined heating, cooling, and power applications.
RELATED AGENCY
WOODROW WILSON INTERNATIONAL CENTER
FOR
SCHOLARS
PAYMENT TO ENDOWMENT FUND
For payment to the endowment fund of the Woodrow Wilson
International Center for Scholars $5,000,000: Provided, That such
funds may be invested in investments approved by the Board of
Trustees of the Woodrow Wilson International Center for Scholars
and the income from such investments may be used to support
the programs of the Center that the Board of Trustees and the
Director of the Center determine appropriate.
GENERAL PROVISION—THIS CHAPTER
SEC. 701. In addition to amounts appropriated in Public Law
106–291 to the Indian Health Service under the heading ‘‘Indian
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–193
Health Services’’, $30,000,000, to remain available until expended,
is appropriated as follows:
(1) $15,000,000 shall be provided to the Alaska Federation
of Natives as a direct lump sum payment within 30 days
of enactment of this Act for its Alaska Native Sobriety and
Alcohol Control Program: Provided, That the President of the
Alaska Federation of Natives shall make grants to each Alaska
Native regional non-profit corporation (as listed in section
103(a)(2) of Public Law 104–193 (110 Stat. 2159)) in which
there are villages, including established villages and organized
cities under State law, that have voted to ban the sale, importation, or possession of alcohol pursuant to local option State
law: Provided further, That such grants shall be used to: (1)
employ Village Public Safety Officers (hereinafter referred to
as ‘‘VPSO’s’’) under such terms and conditions that encourage
retention of such VPSO’s and that are consistent with agreements with the State of Alaska for the provision of such VPSO
services; (2) acquisition of law enforcement equipment or services; or (3) develop and implement restorative justice programs
recognized under State sentencing law as a community-based
complement or alternative to incarceration or other penalty:
Provided further, That funds may also be used for activities
and programs to further the sobriety movement including education and treatment. The President of the Alaska Federation
of Natives shall submit a report on its activities and those
of its grantees including administrative costs and persons
served by December 31, 2001; and
(2) $15,000,000 shall be provided to the Indian Health
Service for drug and alcohol prevention and treatment services
for non-Alaska tribes.
CHAPTER 8
GENERAL PROVISIONS—THIS CHAPTER
SEC. 801. There are appropriated to the Health Resources and
Services Administration in the Department of Health and Human
Services, for the construction of the Biotechnology Science Center
at the Marshall University in Huntington, West Virginia,
$25,000,000, to remain available until expended.
SEC. 802. There are appropriated to the Health Resources and
Services Administration in the Department of Health and Human
Services, for the construction of the Christian Nurses Hospice in
Brentwood, New York, $400,000.
SEC. 803. There are appropriated to the Institute of Museum
and Library Services, for expansion of the marine biology program
at the Long Island Maritime Museum, $250,000.
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114 STAT. 2763A–194
PUBLIC LAW 106–554—APPENDIX D
CHAPTER 9
LEGISLATIVE BRANCH
CONGRESSIONAL OPERATIONS
HOUSE OF REPRESENTATIVES
PAYMENTS
TO
WIDOWS
HEIRS OF DECREASED MEMBERS
CONGRESS
AND
OF
For payment to Laura Y. Bateman, widow of Herbert H.
Bateman, late a Representative from the State of Virginia, $141,300.
For payment to Susan L. Vento, widow of Bruce F. Vento,
late a Representative from the State of Minnesota, $141,300.
For payment to Betty Lee Dixon, widow of Julian C. Dixon,
late a Representative from the State of California, $141,300.
ARCHITECT OF THE CAPITOL
CAPITOL BUILDINGS
AND
GROUNDS
CAPITOL BUILDINGS
SALARIES AND EXPENSES
For an additional amount for ‘‘CAPITOL BUILDINGS AND
GROUNDS—CAPITOL BUILDINGS—SALARIES AND EXPENSES’’ for necessary expenses for construction of emergency egress from the
fourth floor of the Capitol Building, $1,033,000, to remain available
until expended: Provided, That the entire amount is designated
by the Congress as an emergency requirement pursuant to section
251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control
Act of 1985, as amended.
LIBRARY OF CONGRESS
SALARIES
AND
EXPENSES
For the Library of Congress, $25,000,000, to remain available
until expended, for necessary salaries and expenses of the National
Digital Information Infrastructure and Preservation Program; and
an additional $75,000,000, to remain available until expended, for
such purposes: Provided, That the portion of such additional
$75,000,000, which may be expended shall not exceed an amount
equal to the matching contributions (including contributions other
than money) for such purposes that: (1) are received by the Librarian of Congress for the program from non-Federal sources; and
(2) are received before March 31, 2003: Provided further, That
such program shall be carried out in accordance with a plan or
plans approved by the Committee on House Administration of the
House of Representatives, the Committee on Rules and Administration of the Senate, the Committee on Appropriations of the House
of Representatives, and the Committee on Appropriations of the
Senate: Provided further, That of the total amount appropriated,
$5,000,000 may be expended before the approval of a plan to develop
such a plan, and to collect or preserve essential digital information
which otherwise would be uncollectible: Provided further, That the
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–195
balance in excess of such $5,000,000 shall not be expended without
approval in advance by the Committee on Appropriations of the
House of Representatives and the Committee on Appropriations
of the Senate: Provided further, That the plan under this heading
shall be developed by the Librarian of Congress jointly with entities
of the Federal Government with expertise in telecommunications
technology and electronic commerce policy (including the Secretary
of Commerce and the Director of the White House Office of Science
and Technology Policy) and the National Archives and Records
Administration, and with the participation of representatives of
other Federal, research, and private libraries and institutions with
expertise in the collection and maintenance of archives of digital
materials (including the National Library of Medicine, the National
Agricultural Library, the National Institute of Standards and Technology, the Research Libraries Group, the Online Computer Library
Center, and the Council on Library and Information Resources)
and representatives of private business organizations which are
involved in efforts to preserve, collect, and disseminate information
in digital formats (including the Open e-Book Forum): Provided
further, That notwithstanding any other provision of law, effective
with the One Hundred Seventh Congress and each succeeding Congress the chair of the Subcommittee on the Legislative Branch
of the Committee on Appropriations of the House of Representatives
shall serve as a member of the Joint Committee on the Library
with respect to the Library’s financial management, organization,
budget development and implementation, and program development
and administration, as well as any other element of the mission
of the Library of Congress which is subject to the requirements
of Federal law.
GENERAL PROVISIONS—THIS CHAPTER
SEC. 901. RETIREMENT CREDIT FOR CERTAIN LEGISLATIVE
BRANCH EMPLOYEES. (a) FORMER EMPLOYEES OF CONGRESSIONAL
CAMPAIGN COMMITTEES.—
(1) CSRS.—Section 8332(m) of title 5, United States Code,
as amended by section 312 of the Legislative Branch Appropriations Act, 2000, is amended—
(A) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and
(B) by inserting after paragraph (1) the following new
paragraph:
‘‘(2) Upon application to the Office of Personnel Management,
any individual who was an employee on the date of enactment
of this paragraph, and who has on such date or thereafter acquires
5 years or more of creditable civilian service under this section
(exclusive of service for which credit is allowed under this subsection) shall be allowed credit (as service as a congressional
employee) for service before December 31, 1990, while employed
by the Democratic Senatorial Campaign Committee, the Republican
Senatorial Campaign Committee, the Democratic National Congressional Committee, or the Republican National Congressional
Committee, if—
‘‘(A) such employee has at least 4 years and 6 months
of service on such committees as of December 31, 1990; and
‘‘(B) such employee makes a deposit to the Fund in an
amount equal to the amount which would be required under
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114 STAT. 2763A–196
PUBLIC LAW 106–554—APPENDIX D
section 8334(c) if such service were service as a congressional
employee.’’.
(2) FERS.—Section 8411 of title 5, United States Code,
is amended by adding at the end the following new subsection:
‘‘(i)(1) Upon application to the Office of Personnel Management,
any individual who was an employee on the date of enactment
of this paragraph, and who has on such date or thereafter acquired
5 years or more of creditable civilian service under this section
(exclusive of service for which credit is allowed under this subsection) shall be allowed credit (as service as a congressional
employee) for service before December 31, 1990, while employed
by the Democratic Senatorial Campaign Committee, the Republican
Senatorial Campaign Committee, the Democratic National Congressional Committee, or the Republican National Congressional
Committee, if—
‘‘(A) such employee has at least 4 years and 6 months
of service on such committees as of December 31, 1990; and
‘‘(B) such employee deposits to the Fund an amount equal
to 1.3 percent of the base pay for such service, with interest.
‘‘(2) The Office shall accept the certification of the President
of the Senate (or the President’s designee) or the Speaker of the
House of Representatives (or the Speaker’s designee), as the case
may be, concerning the service of, and the amount of compensation
received by, an employee with respect to whom credit is to be
sought under this subsection.
‘‘(3) An individual shall not be granted credit for such service
under this subsection if eligible for credit under section 8332(m)
for such service.’’.
(b) FORMER EMPLOYEES OF LEGISLATIVE SERVICE ORGANIZATIONS.—
(1) SERVICE OF EMPLOYEES OF LEGISLATIVE SERVICE
ORGANIZATIONS.—
(A) IN GENERAL.—Subject to succeeding provisions of
this paragraph, upon application to the Office of Personnel
Management in such form and manner as the Office shall
prescribe, any individual who performed service as an
employee of a legislative service organization of the House
of Representatives (as defined and authorized in the One
Hundred Third Congress) and whose pay was paid in whole
or in part by a source other than the Clerk Hire account
of a Member of the House of Representatives (other than
an individual described in paragraph (6)) shall be entitled—
(i) to receive credit under the provisions of subchapter III of chapter 83 or chapter 84 of title 5,
United States Code (whichever would be appropriate),
as congressional employee service, for all such service;
and
(ii) to have all pay for such service which was
so paid by a source other than the Clerk Hire account
of a Member included (in addition to any amounts
otherwise included in basic pay) for purposes of
computing an annuity payable out of the Civil Service
Retirement and Disability Fund.
(B) DEPOSIT REQUIREMENT.—In order to be eligible for
the benefits described in subparagraph (A), an individual
shall be required to pay into the Civil Service Retirement
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–197
and Disability Fund an amount equal to the difference
between—
(i) the employee contributions that were actually
made to such Fund under applicable provisions of law
with respect to the service described in subparagraph
(A); and
(ii) the employee contributions that would have
been required with respect to such service if the
amounts described in subparagraph (A)(ii) had also
been treated as basic pay.
The amount required under this subparagraph shall
include interest, which shall be computed under section
8334(e) of title 5, United States Code.
(C) CERTAIN OFFSETS REQUIRED IN ORDER TO PREVENT
DOUBLE CONTRIBUTIONS AND BENEFITS.—In the case of any
period of service as an employee of a legislative service
organization which constituted employment for purposes
of title II of the Social Security Act—
(i) any pay for such service (as described in
subparagraph (A)(ii)) with respect to which the deposit
under subparagraph (B) would otherwise be computed
by applying the first sentence of section 8334(a)(1)
of title 5, United States Code, shall instead be computed in a manner based on section 8334(k) of such
title; and
(ii) any retirement benefits under subchapter III
of chapter 83 of title 5, United States Code, shall
be subject to offset (to reflect that portion of benefits
under title II of the Social Security Act attributable
to pay referred to in subparagraph (A)) similar to that
provided for under section 8349 of such title.
(2) SURVIVOR ANNUITANTS.—For purposes of survivor annuities, an application authorized by this section may, in the
case of an individual under paragraph (1) who has died, be
made by a survivor of such individual.
(3) RECOMPUTATION OF ANNUITIES.—Any annuity or survivor annuity payable as of when an individual makes the
deposit required under paragraph (1) shall be recomputed to
take into account the crediting of service under such paragraph
for purposes of amounts accruing for any period beginning
on or after the date on which the individual makes the deposit.
(4) CERTIFICATION OF SPEAKER.—The Office of Personnel
Management shall accept the certification of the Speaker of
the House of Representatives (or the Speaker’s designee)
concerning the service of, and the amount of compensation
received by, an employee with respect to whom credit is to
be sought under this subsection.
(5) NOTIFICATION AND OTHER DUTIES OF THE OFFICE OF
PERSONNEL MANAGEMENT.—
(A) NOTICE.—The Office of Personnel Management
shall take such action as may be necessary and appropriate
to inform individuals of any rights they might have as
a result of enactment of this subsection.
(B) ASSISTANCE.—The Office shall, on request, assist
any individual in obtaining from any department, agency,
or other instrumentality of the United States any information in the possession of such instrumentality which may
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114 STAT. 2763A–198
PUBLIC LAW 106–554—APPENDIX D
be necessary to verify the entitlement of such individual
to have any service credited under this subsection or to
have an annuity recomputed under paragraph (3).
(C) INFORMATION.—Any department, agency, or other
instrumentality of the United States which possesses any
information with respect to an individual’s performance
of any service described in paragraph (1) shall, at the
request of the office, furnish such information to the Office.
(6) EXCLUSION OF CERTAIN EMPLOYEES.—An individual is
not eligible for credit under this subsection if the individual
served as an employee of the House of Representatives for
an aggregate period of 5 years or longer after the individual’s
final period of service as an employee of a legislative service
organization of the House of Representatives.
(7) MEMBER DEFINED.—In this subsection, the term ‘‘Member of the House of Representatives’’ includes a Delegate or
Resident Commissioner to Congress.
SEC. 902. (a) The Legislative Branch Appropriations Act, 2001
is amended under the subheading ‘‘MISCELLANEOUS ITEMS’’ under
the heading ‘‘SENATE’’ under title I by striking ‘‘$8,655,000’’ and
inserting ‘‘$25,155,000’’.
(b) The amendment made by subsection (a) shall take effect
as if included in the enactment of the Legislative Branch Appropriations Act, 2001.
SEC. 903. Beginning on the first day of the 107th Congress,
the Presiding Officer of the Senate shall apply all of the precedents
of the Senate under Rule XXVIII in effect at the conclusion of
the 103d Congress. Further that there is now in effect a Standing
order of the Senate that the reading of conference reports is no
longer required, if the said conference report is available in the
Senate.
CHAPTER 10
GENERAL PROVISIONS—THIS CHAPTER
SEC. 1001. In addition to amounts appropriated or otherwise
made available in the Military Construction Appropriations Act,
2001, $43,500,000 is hereby appropriated to the Department of
Defense, to remain available until September 30, 2005, as follows:
‘‘Military Construction, Army’’, $27,000,000;
‘‘Military Construction, Air Force’’, $12,000,000;
‘‘Military Construction, Army National Guard’’, $4,500,000:
Provided, That notwithstanding any other provision of law, such
funds may be obligated or expended to carry out planning and
design, military construction, and family housing projects not otherwise authorized by law.
SEC. 1002. TRANSFER OF JURISDICTION, MELROSE AIR FORCE
RANGE, NEW MEXICO. (a) TRANSFER REQUIRED.—(1) The Secretary
of the Interior shall transfer, without reimbursement, to the
administrative jurisdiction of the Secretary of the Air Force the
surface estate in the real property described in paragraph (2),
which consists of 6,713.90 acres of public domain lands in Roosevelt
County, New Mexico.
(2) The transfer of administrative jurisdiction under paragraph
(1) encompasses the following sections (or portions thereof):
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114 STAT. 2763A–199
(A) In Township 1 North, Range 30 East, New Mexico
Prime Meridian:
(i) Sec. 2 (S1⁄2).
(ii) Sec. 11. All.
(iii) Sec. 20 (S1⁄2SE1⁄4).
(iv) Sec. 28. All.
(B) In Township 1 South, Range 30 East, New Mexico
Prime Meridian:
(i) Sec. 2 (Lots 1–12, S1⁄2).
(ii) Sec. 3 (Lots 1–12, S1⁄2).
(iii) Sec. 4 (Lots 1–12, S1⁄2).
(iv) Sec. 6 (Lots 1 and 2).
(v) Sec. 9 (N1⁄2, N1⁄2S1⁄2).
(vi) Sec. 10 (N1⁄2, N1⁄2S1⁄2).
(vii) Sec. 11 (N1⁄2, N1⁄2S1⁄2).
(C) In Township 2 North, Range 30 East, New Mexico
Prime Meridian:
(i) Sec. 20 (E1⁄2S1⁄4).
(ii) Sec. 21 (SW1⁄4, W1⁄2SE1⁄4).
(iii) Sec. 28 (W1⁄2E1⁄2, W1⁄2).
(iv) Sec. 29 (E1⁄2E1⁄2).
(v) Sec. 32 (E1⁄2E1⁄2).
(vi) Sec. 33 (W1⁄2E1⁄2, NW1⁄4, S1⁄2SW1⁄4).
(b) STATUS OF SURFACE ESTATE.—Upon transfer under subsection (a), the surface estate is deemed to be real property subject
to the Federal Property and Administrative Services Act of 1949
(40 U.S.C. 471 et seq.).
(c) WITHDRAWAL OF MINERAL ESTATE.—Subject to valid existing
rights, the mineral estate of the lands described in subsection
(a) are withdrawn from all forms of appropriation under the public
land laws, including the mining laws and the mineral and geothermal leasing laws, but not the Act of July 31, 1947 (commonly
known as the Materials Act of 1947; 30 U.S.C. 601 et seq.).
(d) USE OF MINERAL MATERIALS.—Notwithstanding subsection
(c) or the Act of July 31, 1947, the Secretary of the Air Force
may use, without application to the Secretary of the Interior, the
sand, gravel, or similar mineral material resources on the lands
described in subsection (a), of the type subject to disposition under
the Act of July 31, 1947, when the use of such resources is required
for construction needs on the Melrose Air Force Range, New Mexico.
SEC. 1003. TRANSFER OF JURISDICTION, YAKIMA TRAINING CENTER, WASHINGTON. (a) TRANSFER REQUIRED.—(1) The Secretary of
the Interior shall transfer, without reimbursement, to the administrative jurisdiction of the Secretary of the Army the surface estate
in the real property described in paragraph (2), which consists
of 6,640.02 acres of public domain lands in Kittitas County,
Washington.
(2) The transfer of administrative jurisdiction under paragraph
(1) encompasses the following sections (or portions thereof):
(A) In Township 17 North, Range 20 East, Willamette
Meridian:
(i) Sec. 22 (S1⁄2).
(ii) Sec. 24 (S1⁄2SW1⁄4 and that portion of the E1⁄2
lying south of the Interstate Highway 90 right-of-way).
(iii) Sec. 26. All.
(B) In Township 16 North, Range 21 East, Willamette
Meridian:
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PUBLIC LAW 106–554—APPENDIX D
(i) Sec. 4 (SW1⁄4SW1⁄4).
(ii) Sec. 12 (SE1⁄4).
(iii) Sec. 18 (Lots 1, 2, 3, and 4, E1⁄2 and E1⁄2W1⁄2).
(C) In Township 17 North, Range 21 East, Willamette
Meridian:
(i) Sec. 30 (Lots 3 and 4).
(ii) Sec. 32 (NE1⁄4SE1⁄4).
(D) In Township 16 North, Range 22 East, Willamette
Meridian:
(i) Sec. 2 (Lots 1, 2, 3, and 4, S1⁄2N1⁄2 and S1⁄2).
(ii) Sec. 4 (Lots 1, 2, 3, and 4, S1⁄2N1⁄2 and S1⁄2).
(iii) Sec. 10. All.
(iv) Sec. 14. All.
(v) Sec. 20 (SE1⁄4SW1⁄4).
(vi) Sec. 22. All.
(vii) Sec. 26 (N1⁄2).
(viii) Sec. 28 (N1⁄2).
(E) In Township 16 North, Range 23 East, Willamette
Meridian:
(i) Sec. 18 (Lots 3 and 4, E1⁄2SW1⁄4, W1⁄2SE1⁄4, and
that portion of the E1⁄2SE1⁄4 lying westerly of the westerly
right-of-way line of Huntzinger Road).
(ii) Sec. 20 (That portion of the SW1⁄4 lying westerly
of the easterly right-of-way line of the railroad).
(iii) Sec. 30 (Lots 1 and 2, NE1⁄4 and E1⁄2NW1⁄4).
(b) STATUS OF SURFACE ESTATE.—Upon transfer under subsection (a), the surface estate is deemed to be real property subject
to the Federal Property and Administrative Services Act of 1949
(40 U.S.C. 471 et seq.).
(c) WITHDRAWAL OF MINERAL ESTATE.—(1) Subject to valid
existing rights, the mineral estate of the lands described in subsection (a), as well as the additional lands described in paragraph
(2), are withdrawn from all forms of appropriation under the public
land laws, including the mining laws and the geothermal leasing
laws, but not the Act of July 31, 1947 (commonly known as the
Materials Act of 1947; 30 U.S.C. 601, et seq.) and the Mineral
Leasing Act (30 U.S.C. 181 et seq.).
(2) The additional lands referred to in paragraph (1) consist
of 3,090.80 acres in the following sections (or portions thereof):
(A) In Township 16 North, Range 20 East, Willamette
Meridian:
(i) Sec. 12. All.
(ii) Sec. 18 (Lot 4 and SE1⁄4).
(iii) Sec. 20 (S1⁄2).
(B) In Township 16 North, Range 21 East, Willamette
Meridian:
(i) Sec. 4 (Lots 1, 2, 3, and 4, S1⁄2NE1⁄4).
(ii) Sec. 8. All.
(C) In Township 16 North, Range 22 East, Willamette
Meridian:
(i) Sec. 12. All.
(D) In Township 17 North, Range 21 East, Willamette
Meridian:
(i) Sec. 32 (S1⁄2SE1⁄4).
(ii) Sec. 34 (W1⁄2).
(d) USE OF MINERAL MATERIALS.—Notwithstanding subsection
(c) or the Act of July 31, 1947, the Secretary of the Army may
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114 STAT. 2763A–201
use, without application to the Secretary of the Interior, the sand,
gravel, or similar mineral material resources on the lands described
in subsections (a) and (c), of the type subject to disposition under
the Act of July 31, 1947, when the use of such resources is required
for construction needs on the Yakima Training Center, Washington.
CHAPTER 11
DEPARTMENT OF TRANSPORTATION
GENERAL PROVISIONS—THIS CHAPTER
SEC. 1101. Section 5309(g)(4)(D)(2) of title 49, United States
Code, is amended by striking ‘‘light’’.
SEC. 1102. Item number 630 of the table contained in section
1602 of the Transportation Act for the 21st Century (112 Stat.
280), relating to Buffalo, New York, is amended by striking ‘‘Design
and construct Outer Harbor Bridge in Buffalo’’ and inserting
‘‘Transportation infrastructure improvements, Inner Harbor/
Redevelopment project, Buffalo’’.
SEC. 1103. If the State of Arkansas incorporates into the relocation of U.S. Route 71 through Fort Chaffee, Arkansas, land obtained
by the State from the Federal Government as a result of the
closure of a military installation, the Secretary of Transportation
shall credit to the State share of the cost of the relocation the
fair market value of such land .
SEC. 1104. For an additional amount to enable the Secretary
of Transportation to make a grant to the Huntsville International
Airport, $2,500,000, to be derived from the airport and airway
trust fund, to remain available until expended.
SEC. 1105. Notwithstanding any other provision of law, for
necessary expenses for the Southeast Light Rail Extension Project
in Dallas, Texas, $1,000,000, to be derived from the Mass Transit
Account of the Highway Trust Fund and to remain available until
expended.
SEC. 1106. Section 1105(c) of the Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 2032–2033) is amended
by striking paragraph (38) and replacing it with the following—
‘‘(38) The Ports-to-Plains Corridor from Laredo, Texas, via
I–27 to Denver, Colorado, shall include:
‘‘(A) In the State of Texas the Ports-to-Plains Corridor
shall generally follow—
‘‘(i) I–35 from Laredo to United States Route 83
at Exit 18;
‘‘(ii) United States Route 83 from Exit 18 to Carrizo
Springs;
‘‘(iii) United States Route 277 from Carrizo Springs
to San Angelo;
‘‘(iv) United States Route 87 from San Angelo to
Sterling City;
‘‘(v) From Sterling City to Lamesa, the Corridor
shall follow United States Route 87 and, the Corridor
shall also follow Texas Route 158 from Sterling City
to I–20, then via I–20 West to Texas Route 349 and,
Texas Route 349 from Midland to Lamesa;
‘‘(vi) United States Route 87 from Lamesa to Lubbock;
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PUBLIC LAW 106–554—APPENDIX D
‘‘(vii) I–27 from Lubbock to Amarillo; and
‘‘(viii) United States Route 287 from Amarillo to
Dumas.
‘‘(B) The corridor designation contained in paragraph
(A) shall take effect only if the Texas Transportation
Commission has not designated the Ports-to-Plains Corridor in Texas by June 30, 2001.’’.
SEC. 1107. For an additional amount to enable the Secretary
of Transportation to make a grant for the Newark-Elizabeth rail
link project, New Jersey, $3,000,000, to be derived from the Mass
Transit Account of the Highway Trust Fund and to remain available
until expended.
SEC. 1108. Section 5309(m)(3)(C) of title 49 United States Code,
shall not apply to the funds made available in the Department
of Transportation and Related Agencies Appropriations Act, 2001:
Provided, That notwithstanding any other provision of law, the
14th Street Bridge, Virginia; Chouteau Bridge, Jackson County,
Missouri; Clement C. Clay Bridge replacement, Morgan/Madison
counties, Alabama; Fairfield-Benton-Kennebec River Bridge, Maine;
Florida Memorial Bridge, Florida; Historic Woodrow Wilson Bridge,
Mississippi; Missisquoi Bay Bridge, Vermont; Oaklawn Bridge,
South Pasadena, California; Pearl Harbor Memorial Bridge replacement, Connecticut; Powell County Bridge, Montana; Santa Clara
Bridge, Oxnard, California; Star City Bridge, West Virginia; US
231 Bridge over Tennessee River, Alabama; US 54/US 69 Bridge,
Kansas; Waimalu Bridge replacement on I–1, Hawaii; Washington
Bridge, Rhode Island are eligible in fiscal year 2001 under section
144(g)(2) of title 23, United States Code: Provided further, That
section 378 of Public Law 106–346 is amended by inserting after
‘‘US 101’’ the following: ‘‘and Interstate 5 Trade Corridor’’.
SEC. 1109. Notwithstanding any other provision of law, in addition to funds otherwise appropriated in this or any other Act for
fiscal year 2001, $4,000,000 is hereby appropriated from the Highway Trust Fund for Commercial Remote Sensing Products and
Spatial Information Technologies under section 5113 of Public Law
105–178, as amended: Provided, That such funds are used to study
the creation of a new highway right-of-way south of I–10 along
the Mississippi Gulf Coast by relocating the existing railroad rightof-way out of downtown areas.
SEC. 1110. Amtrak is authorized to obtain services from the
Administrator of General Services, and the Administrator is authorized to provide services to Amtrak, under sections 201(b) and 211(b)
of the Federal Property and Administrative Services Act of 1949
(40 U.S.C. 481(b) and 491(b)) for fiscal year 2001 and each fiscal
year thereafter until the fiscal year that Amtrak operates without
Federal operating grant funds appropriated for its benefit, as
required by sections 24101(d) and 24104(a) of title 49, United States
Code.
SEC. 1111. Of the funds made available in the ‘‘Alteration
of bridges’’ account of the Department of Transportation and Related
Agencies Appropriations Act, 2001 for the Fox River Bridge,
$575,000 shall be transferred by the Secretary of Transportation
to the City of Oshkosh for removal of the bridge located at mile
point 56.9 of the Fox River in Oshkosh, Wisconsin. The United
States shall assume no responsibility for project management relating to removal of the bridge.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–203
SEC. 1112. Notwithstanding section 27 of the Merchant Marine
Act, 1920 (46 App. U.S.C. 883), section 8 of the Act of June 19,
1886 (46 App. U.S.C. 289), and section 12106 of title 46, United
States Code, the Secretary of Transportation may issue a certificate
of documentation with appropriate endorsement for employment
in the coastwise trade for the following vessels:
(1) M/V WELLS GRAY (State of Alaska registration number AK 9452 N; former Canadian registration number 154661);
and
(2) ANNANDALE (United States official number 519434).
SEC. 1113. CONVEYANCE OF COAST GUARD PROPERTY IN MIDDLETOWN, CALIFORNIA. (a) AUTHORITY TO CONVEY.—
(1) IN GENERAL.—The Administrator of General Services
(in this section referred to as the ‘‘Administrator’’) may
promptly convey to Lake County, California (in this section
referred to as the ‘‘County’’), without consideration, all right,
title, and interest of the United States (subject to subsection
(c)) in and to the property described in subsection (b).
(2) IDENTIFICATION OF PROPERTY.—The Administrator, in
consultation with the Commandant of the Coast Guard, may
identify, describe, and determine the property to be conveyed
under this section.
(b) PROPERTY DESCRIBED.—
(1) IN GENERAL.—The property referred to in subsection
(a) is such portion of the Coast Guard LORAN Station Middletown as has been reported to the General Services Administration to be excess property, consisting of approximately 733.43
acres, and is comprised of all or part of tracts A–101, A–
102, A–104, A–105, A–106, A–107, A–108, and A–111.
(2) SURVEY.—The exact acreage and legal description of
the property conveyed under subsection (a), and any easements
or rights-of-way reserved by the United States under subsection
(c)(1), shall be determined by a survey satisfactory to the
Administrator. The cost of the survey shall be borne by the
County.
(c) CONDITIONS.—
(1) IN GENERAL.—In making the conveyance under subsection (a), the Administrator shall—
(A) reserve for the United States such existing rightsof-way for access and such easements as are necessary
for continued operation of the LORAN station;
(B) preserve other existing easements for public roads
and highways, public utilities, irrigation ditches, railroads,
and pipelines; and
(C) impose such other restrictions on use of the property conveyed as are necessary to protect the safety, security, and continued operation of the LORAN station.
(2) FIREBREAKS AND FENCE.—(A) The Administrator may
not convey any property under this section unless the County
and the Commandant of the Coast Guard enter into an agreement with the Administrator under which the County is
required, in accordance with design specifications and maintenance standards established by the Commandant—
(i) to establish and construct within 6 months after
the date of the conveyance, and thereafter to maintain,
firebreaks on the property to be conveyed; and
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114 STAT. 2763A–204
PUBLIC LAW 106–554—APPENDIX D
(ii) construct within 6 months after the date of conveyance, and thereafter maintain, a fence approved by the
Commandant along the property line between the property
conveyed and adjoining Coast Guard property.
(B) The agreement shall require that—
(i) the County shall pay all costs of establishment,
construction, and maintenance of firebreaks under subparagraph (A)(i); and
(ii) the Commandant shall provide all materials needed
to construct a fence under subparagraph (A)(ii), and the
County shall pay all other costs of construction and maintenance of the fence.
(3) COVENANTS APPURTENANT.—The Administrator shall
take actions necessary to render the requirement to establish,
construct, and maintain firebreaks and a fence under paragraph
(2) and other requirements and conditions under paragraph
(1), under the deed conveying the property to the County,
covenants that run with the land for the benefit of land retained
by the United States.
(d) REVERSIONARY INTEREST.—During the 5-year period beginning on the date the Administrator makes the conveyance authorized by subsection (a), the real property conveyed pursuant to
this section, at the option of the Administrator, shall revert to
the United States and be placed under the administrative control
of the Administrator, if—
(1) the County sells, conveys, assigns, exchanges, or encumbers the property conveyed or any part thereof;
(2) the County fails to maintain the property conveyed
in a manner consistent with the terms and conditions in subsection (c);
(3) the County conducts any commercial activities at the
property conveyed, or any part thereof, without approval of
the Secretary; or
(4) at least 30 days before the reversion, the Administrator
provides written notice to the owner that the property or any
part thereof is needed for national security purposes.
SEC. 1114. CONVEYANCE OF COAST GUARD PROPERTY TO TOWN
OF NANTUCKET, MASSACHUSETTS. (a) AUTHORITY TO CONVEY.—
(1) IN GENERAL.—Notwithstanding any other law, the
Administrator of the General Services Administration (Administrator) or the Commandant of the Coast Guard (Commandant),
as appropriate, shall convey to the Town of Nantucket,
Massachusetts (Town), without monetary consideration, all
right, title, and interest of the United States of America (United
States) in and to a certain parcel of land located in Nantucket,
Massachusetts, and part of the United States Coast Guard
LORAN Station Nantucket, together with any improvements
thereon in their then current condition.
(2) IDENTIFICATION OF PROPERTY.—The Administrator or
the Commandant, as appropriate, shall identify, describe, and
determine the property to be conveyed under this section. The
Town shall bear all monetary costs associated with any survey
required to describe the property to be conveyed under this
section and any easements reserved by the United States under
subsection (b)(1).
(b) TERMS AND CONDITIONS OF CONVEYANCE.—
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114 STAT. 2763A–205
(1) The conveyance of property under this section shall
be made subject to any terms and conditions the Administrator
or the Commandant, as appropriate, considers necessary,
including the reservation of easements and other rights on
behalf of the United States, to ensure that—
(A) there is reserved to the United States the right
to remove, relocate, or replace any aid to navigation located
upon, or install or construct any aid to navigation upon,
property conveyed under this section as may be necessary
for navigational purposes;
(B) the United States shall have the right to enter
property conveyed under this section at any time, without
notice, for purposes of operating, maintaining, and inspecting any aid to navigation and for the purposes of exercising
any of the rights set forth in paragraph (1)(A) of this
subsection; and
(C) the Town shall not interfere or allow interference,
in any manner, with any aid to navigation, whether located
upon the property conveyed under this section or upon
any portion of LORAN Station Nantucket retained by the
United States, nor hinder activities required for the inspection, operation, and maintenance of any such aid to navigation without the Commandant’s express written permission.
(2) The Town shall not convey, assign, exchange, or in
any way encumber the property conveyed under this section,
unless approved by the Administrator.
(3) The Town shall not conduct any commercial activities
at or upon the property conveyed under this section, unless
approved by the Administrator.
(4) The Town shall not be required to maintain any active
aid to navigation associated with the property conveyed under
this section except for private aids to navigation permitted
under 14 U.S.C. 83.
(5) The United States shall not convey any property under
this section, nor grant any real property license under subsection (d), until the Town enters into an agreement with
the United States to relocate the Coast Guard receiving antenna
and associated equipment, as identified by the Commandant,
at the Town’s sole cost and expense, and subject to the Commandant’s design specifications, project schedule, and final
project approval.
(6) The United States shall not convey any property under
this section, nor grant any real property license under subsection (d), until the Town enters into an agreement with
the United States that provides that the Town will immediately
cease construction or operation of the waste water treatment
facility upon notification by the Commandant that the Town’s
construction or operation of the facility interferes with any
Coast Guard aid to navigation. The agreement shall provide
that construction or operation shall not be resumed until the
conditions causing the interference are corrected, and the Commandant authorizes the construction or operation to resume.
(7) All conditions placed with the deed of title shall be
construed as covenants running with the land.
(c) REVERSIONARY INTEREST.—In addition to any term or condition established pursuant to this section, the conveyance of property
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114 STAT. 2763A–206
PUBLIC LAW 106–554—APPENDIX D
under this section shall include a condition that the property conveyed, at the option of the Administrator, shall revert to the United
States and be placed under the administrative control of the
Administrator, if—
(1) the Town conveys, assigns, exchanges, or in any manner
encumbers the property conveyed for consideration, unless
otherwise approved by the Administrator;
(2) the Town conducts any commercial activities at or upon
the property conveyed, unless otherwise approved by the
Administrator;
(3) the Town interferes or allows interference, in any manner, with any aid to navigation, whether located upon the
property conveyed under this section or upon any portion of
LORAN Station Nantucket retained by the United States, nor
hinder activities required for the inspection, operation, and
maintenance of any such aid to navigation without the Commandant’s express written permission; or
(4) at least 30 days before the reversion, the Administrator
provides written notice to the grantee that property conveyed
under this section, or any portion thereof, is needed for national
security purposes.
(d) REAL PROPERTY LICENSE.—Prior to the conveyance of any
property under this section, the Commandant may grant a real
property license to the Town for the purpose of allowing the Town
to enter upon LORAN Station Nantucket and commence construction of a waste water treatment facility and for other site preparation activities.
(e) DEFINITIONS.—For purposes of this section:
(1) AID TO NAVIGATION.—The term ‘‘aid to navigation’’
means equipment used for navigation purposes, including but
not limited to, a light, antenna, sound signal, electronic and
radio navigation equipment and signals, cameras, sensors, or
other equipment operated or maintained by the United States.
(2) TOWN.—The term ‘‘Town’’ includes the successors and
assigns of the Town of Nantucket, Massachusetts.
SEC. 1115. CONVEYANCE OF PLUM ISLAND LIGHTHOUSE,
NEWBURYPORT, MASSACHUSETTS. (a) AUTHORITY TO CONVEY.—
(1) IN GENERAL.—Notwithstanding any other law, the
Administrator of the General Services Administration (Administrator) or the Commandant of the Coast Guard (Commandant),
as appropriate, shall convey to the City of Newburyport,
Massachusetts (City), without monetary consideration, all right,
title, and interest of the United States of America (United
States) in and to two certain parcels of land upon which the
Plum Island Boat House and the Plum Island Lighthouse (also
known as the Newburyport Harbor Light), are situated, respectively, located in Essex County, Massachusetts, together with
any improvements thereon in their then current condition.
(2) IDENTIFICATION OF PROPERTY.—The Administrator or
the Commandant, as appropriate, shall identify, describe, and
determine the property to be conveyed under this section,
including the right to retain all right, title, and interest of
the United States to any portion of either parcel described
in paragraph (a)(1) of this section. The Administrator or Commandant, as appropriate, may retain all right, title, and interest
of the United States in and to any historical artifact, including
any lens or lantern, that is associated with and located at
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–207
the property conveyed under this section at the time of conveyance. Artifacts associated with, but not located at, the property
conveyed under this section at the time of conveyance, shall
remain the personal property of the United States under the
administrative control of the Commandant. No submerged lands
shall be conveyed under this section.
(b) TERMS AND CONDITIONS OF CONVEYANCE.—
(1) The conveyance of property under this section shall
be made subject to any terms and conditions the Administrator
or the Commandant, as appropriate, considers necessary,
including but not limited to, the reservation of easements and
other rights on behalf of the United States, to ensure that—
(A) the aids to navigation located at property conveyed
under this section shall remain the personal property of
the United States and continue to be operated and maintained by the United States for as long as needed for
navigational purposes;
(B) there is reserved to the United States the right
to remove, relocate, or replace any aid to navigation located
upon, or install or construct any aid to navigation upon,
property conveyed under this section as may be necessary
for navigational purposes;
(C) the United States shall have the right to enter
property conveyed under this section at any time, without
notice, for purposes of operating, maintaining, and inspecting any aid to navigation, for the purposes of exercising
any of the rights set forth in paragraph (1)(B) of this
subsection, and for the purposes of ingress and egress
to any land retained by the United States; and
(D) the City shall not, without the Commandant’s
express written permission, interfere or allow interference,
in any manner, with any aid to navigation, nor hinder
activities required
(i) for the inspection, operation, and maintenance
of any aid to navigation; or
(ii) for the exercise of any of the rights set forth
in paragraph (1)(B) of this subsection.
(2) The City shall, at its own cost and expense, maintain
the property conveyed under this section in a proper, substantial, and workmanlike manner.
(3) The City shall ensure that the property conveyed is
available and accessible to the public, on a reasonable basis
for educational, park, recreational, cultural, historic preservation or similar purposes.
(4) The City shall not be required to maintain any active
aid to navigation associated with the property conveyed under
this section except for private aids to navigation permitted
under 14 U.S.C. 83.
(5) All conditions placed with the deed of title for property
conveyed under this section shall be construed as covenants
running with the land.
(6) The Administrator or the Commandant, as appropriate,
may require such additional terms and conditions with respect
to the conveyance of property under this section, as the
Administrator or the Commandant considers appropriate to
protect the interests of the United States.
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114 STAT. 2763A–208
PUBLIC LAW 106–554—APPENDIX D
(c) REVERSIONARY INTEREST.—In addition to any term or condition established pursuant to this section, any property conveyed
under this section, at the option of the Administrator, shall revert
to the United States and be placed under the administrative control
of the Administrator, if—
(1) the property conveyed under this section, or any part
thereof, ceases to be maintained in a manner that ensures
its present or future use as a site for an aid to navigation
as determined by the Commandant;
(2) the property conveyed under this section, or any part
thereof, ceases to be available and accessible to the public,
on a reasonable basis, for educational, park, recreational, cultural, historic preservation or similar purposes; or
(3) at least 30 days before the reversion, the Administrator
provides written notice to the grantee that property conveyed
under this section, or any portion thereof, is needed for national
security purposes.
(d) DEFINITIONS.—For purposes of this section:
(1) AID TO NAVIGATION.—The term ‘‘aid to navigation’’
means equipment used for navigation purposes, including but
not limited to, a light, antenna, sound signal, electronic and
radio navigation equipment and signals, cameras, sensors, or
other equipment operated or maintained by the United States.
(2) CITY.—The term ‘‘City’’ includes the successors and
assigns of the City of Newburyport, Massachusetts.
SEC. 1116. TRANSFER OF COAST GUARD STATION SCITUATE TO
THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION. (a)
AUTHORITY TO TRANSFER.—
(1) IN GENERAL.—The Administrator of the General Services Administration, in consultation with the Commandant,
United States Coast Guard, may transfer without consideration
administrative jurisdiction, custody, and control over the Federal property known as Coast Guard Station Scituate to the
National Oceanic and Atmospheric Administration (hereinafter
referred to as ‘‘NOAA’’).
(2) IDENTIFICATION OF PROPERTY.—The Administrator, in
consultation with the Commandant, may identify, describe, and
determine the property to be transferred under this section.
(b) TERMS OF TRANSFER.—
(1) The transfer of the property shall be made subject
to any conditions and reservations the Commandant considers
necessary to ensure that—
(A) the transfer of the property to NOAA is contingent
upon the relocation of Coast Guard Station Scituate to
a suitable site;
(B) there is reserved to the Coast Guard the right
to remove, relocate, or replace any aid to navigation located
upon, or install any aid to navigation upon, the property
transferred under this section as may be necessary for
navigational purposes; and
(C) the Coast Guard shall have the right to enter
the property transferred under this section at any time,
without notice, for purposes of operating, maintaining, and
inspecting any aid to navigation.
(2) The transfer of the property shall be made subject
to the review and acceptance of the property by NOAA.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–209
(c) RELOCATION OF STATION SCITUATE.—The Coast Guard
may—
(1) lease land, including unimproved or vacant land, for
a term not to exceed 20 years, for the purpose of relocating
Coast Guard Station Scituate; and
(2) improve the land leased under this subsection.
SEC. 1117. EXTENSION OF INTERIM AUTHORITY FOR DRY BULK
CARGO RESIDUE DISPOSAL. (a) Section 415(b)(2) of the Coast Guard
Authorization Act of 1998 is amended by striking ‘‘2002’’ and inserting ‘‘2004’’.
(b) The Secretary shall conduct a study of the effectiveness
of the United States 1997 Enforcement Policy for Cargo Residues
on the Great Lakes (‘‘Policy’’) by September 30, 2002.
(c) The Secretary is authorized to promulgate regulations to
implement and enforce a program to regulate incidental discharges
from vessels of residues of non-hazardous and non-toxic dry bulk
cargo into the waters of the Great Lakes, which takes into account
the finding in the study required under subsection (b). This program
shall be consistent with the Policy.
SEC. 1118. GREAT LAKES PILOTAGE ADVISORY COMMITTEE. Section 9307 of title 46, United States Code, is amended—
(1) by amending subparagraph (A) of subsection (b)(2) to
read as follows:
‘‘(A) The President of each of the 3 Great Lakes pilotage
districts, or the President’s representative;’’;
(2) by amending subparagraph (E) of subsection (b)(2) to
read as follows:
‘‘(E) a member with a background in finance or accounting, who—
‘‘(i) must have been recommended to the Secretary
by a unanimous vote of the other members of the
Committee, and
‘‘(ii) may be appointed without regard to requirement in paragraph (1) that each member have 5 years
of practical experience in maritime operations.’’;
(3) in subsection (C)(2) by striking the second sentence;
(4) by adding at the end of subsection (d) the following
new paragraph:
‘‘(3) Any recommendations to the Secretary under subsection (a)(2) must have been approved by at least all but
one of the members then serving on the committee.’’; and
(5) in subsection (f )(1) by striking ‘‘September 30, 2003’’
and inserting ‘‘September 30, 2005’’.
SEC. 1119. VESSEL ESCORT OPERATIONS AND TOWING ASSISTANCE. (a) IN GENERAL.—Except in the case of a vessel in distress,
only a vessel of the United States (as that term is defined in
section 2101 of title 46, United States Code) may perform the
following vessel escort operations and vessel towing assistance
within the navigable waters of the United States:
(1) Operations or assistance that commences or terminates
at a port or place in the United States.
(2) Operations or assistance required by United States
law or regulation.
(3) Operations provided in whole or in part for the purpose
of escorting or assisting a vessel within or through navigation
facilities owned, maintained, or operated by the United States
Government or the approaches to such facilities, other than
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114 STAT. 2763A–210
PUBLIC LAW 106–554—APPENDIX D
facilities operated by the St. Lawrence Seaway Development
Corporation on the St. Lawrence River portion of the Seaway.
(b) DEFINITIONS.—Unless otherwise defined by a provision of
law or regulation requiring that towing assistance or escort be
rendered to vessels transiting United States waters or navigation
facilities, for purposes of this section—
(1) the term ‘‘towing assistance’’ means operations by an
assisting vessel in direct contact with an assisted vessel (including hull-to-hull, by towline, including if only pre-tethered, or
made fast to that vessel by one or more lines) for purposes
of exerting force on the assisted vessel to control or to assist
in controlling the movement of the assisted vessel; and
(2) the term ‘‘escort operations’’ means accompanying a
vessel for the purpose of providing towing or towing assistance
to the vessel.
SEC. 1120. Notwithstanding any other provision of law, the
Commandant of the United States Coast Guard is hereby authorized
to utilize $100,000 of the amounts made available for fiscal year
2001 for environmental compliance and restoration of Coast Guard
facilities to reimburse the owner of the former Coast Guard lighthouse facility at Cape May, New Jersey, for costs incurred for
clean-up of lead contaminated soil at that facility.
SEC. 1121. Notwithstanding any other provision of law,
$2,400,000, to be derived from the Highway Trust Fund, shall
be available for planning, development and construction of rural
farm-to-market roads in Tulare County, California: Provided, That
the non-Federal share of such improvements shall be 20 percent.
SEC. 1122. Notwithstanding any other provision of law, and
subject to the availability of funds appropriated specifically for
the project, the Coast Guard is authorized to transfer funds in
an amount not to exceed $200,000 and project management authority to the Traverse City Area Public School District for the purposes
of demolition and removal of the structure commonly known as
‘‘Building 402’’ at former Coast Guard property located in Traverse
City, Michigan, and associated site work. No such funds shall
be transferred until the Coast Guard receives a detailed, fixed
price estimate from the School District describing the nature and
cost of the work to be performed, and the Coast Guard shall transfer
only that amount of funds it and the School District consider
necessary to complete the project.
SEC. 1123. Notwithstanding any other provision of law, for
necessary expenses for Alabama A&M University buses and bus
facilities, $500,000, to be derived from the Mass Transit Account
of the Highway Trust Fund and to remain available until expended.
SEC. 1124. Notwithstanding any other provision of law, prior
to the fiscal year 2002 apportionment of ‘‘Fixed Guideway Modernization’’ funds authorized under section 5309(a)(1)(E) of title
49, United States Code, $7,047,502 of funds made available in
fiscal year 2002 by section 5338(b) of title 49, United States Code,
for the ‘‘Fixed Guideway Modernization’’ program shall be distributed by the Federal Transit Administration to an urbanized area
over 200,000 that did not receive amounts of fixed guideway modernization formula grants to which such area was lawfully entitled
for fiscal years 1999–2001 in view of eligibility determinations
made under chapter 53 of title 49, United States Code, during
the 6 months prior to the effective date of this Act: Provided,
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–211
That such sums shall not reduce a grantee’s fiscal year 2002 apportionment level of ‘‘Fixed Guideway Modernization’’ funds: Provided
further, That such sum remain available until expended.
SEC. 1125. Notwithstanding any other provision of law, Airport
Improvement Program Formula Changes provided in Public Law
106–181 and defined in section 104 of that Act shall be applied
regardless of funding levels made available under section 48103
of title 49, United States Code.
SEC. 1126. Item number 473 contained in section 1602 of the
Transportation Equity Act for the 21st Century (112 Stat. 274),
relating to Minnesota, is amended by striking ‘‘between I–35W
and 24th Avenue to four lanes in Richfield’’ and inserting
‘‘reconstruction project from Penn Avenue to 24th Avenue, including
the Penn Avenue Bridge over I–494’’.
SEC. 1127. The Secretary of Transportation shall not issue
final regulations under section 20153 of title 49, United States
Code, before July 1, 2001.
SEC. 1128. Notwithstanding any other provision of law, in addition to amounts made available in this Act or any other Act,
the following sums shall be made available from the Highway
Trust Fund (other than the Mass Transit Account):
$1,700,000 for transportation and community preservation
projects along the Main Street Corridor in Houston, Texas;
$5,000,000 for rehabilitation, repair, and restoration of the
historic Stillwater Lift Bridge between Stillwater, Minnesota
and Houlton, Wisconsin;
$1,000,000 for improvements to McClung Road, Boston
Street, Larson Street and Whirlpool Drive in the City of
LaPorte, Indiana; and
$1,000,000 for design, environmental mitigation, engineering, and construction of, and improvements to, the US 36/
Wadsworth interchange (Broomfield interchange) in Broomfield
County, Colorado:
Provided, That the amounts appropriated in this section shall
remain available until expended and shall not be subject to, or
computed against, any obligation limitation or contract authority
set forth in this or any other Act.
CHAPTER 12
GENERAL SERVICES ADMINISTRATION
REAL PROPERTY ACTIVITIES
FEDERAL BUILDINGS FUND
For an additional amount to be deposited in, and to be used
for the purposes of, the Federal Buildings Fund of the General
Services Administration, $2,070,000: Provided, That this amount
shall be available for the purpose of renovating and redeveloping
portions of the historic Federal building located at 30 North Seventh
Street in Terre Haute, Indiana, to accommodate the needs of Federal tenants: Provided further, That use of these funds is subject
to authorization including the preparation and approval of a
prospectus as required by the Public Buildings Act of 1959, as
amended.
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114 STAT. 2763A–212
PUBLIC LAW 106–554—APPENDIX D
DEPARTMENT OF THE TREASURY
UNITED STATES CUSTOMS SERVICE
OPERATIONS, MAINTENANCE AND PROCUREMENT, AIR AND MARINE
INTERDICTION PROGRAMS
For an additional amount of $7,000,000, to remain available
until expended, for necessary expenses associated with procurement
of two aircraft and related equipment expenses associated with
aviation standardization and training at the Customs National
Aviation Center in Oklahoma City, Oklahoma: Provided, That none
of the funds provided shall be available for obligation until an
expenditure plan is submitted for approval to the Committees on
Appropriations.
CHAPTER 13
DEPARTMENT OF VETERANS AFFAIRS
DEPARTMENTAL ADMINISTRATION
CONSTRUCTION, MINOR PROJECTS
For an additional amount for ‘‘Construction, minor projects’’,
$8,840,000, to remain available until expended.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
COMMUNITY PLANNING
AND
DEVELOPMENT
EMPOWERMENT ZONES/ENTERPRISE COMMUNITIES
For an additional amount for ‘‘Empowerment zones and enterprise communities’’, $110,000,000, to remain available until
expended: Provided, That $185,000,000 shall be available for urban
empowerment zones, as authorized by the Taxpayer Relief Act
of 1997, including $12,333,333 for each empowerment zone.
COMMUNITY DEVELOPMENT FUND
For an additional amount for ‘‘Community development fund’’,
$66,128,000 to remain available until September 30, 2003.
The referenced statement of the managers in the seventh
undesignated paragraph under this heading in title II of the Departments of Veterans Affairs and Housing and Urban Development,
and Independent Agencies Appropriations Act, 2001 (Public Law
106–377) is deemed to be amended by striking ‘‘West Dallas
neighborhoods’’ in reference to improvement efforts by the Pleasant
Wood/Pleasant Grove Community Development Corporation, and
inserting ‘‘the Pleasant Grove area’’ in lieu thereof.
The unobligated amount appropriated in the third paragraph
under the heading ‘‘Community development block grants’’ in chapter 8 of title II of the Emergency Supplemental Act, 2000 (Public
Law 106–246) for a grant to the City of Hamlet, North Carolina,
for demolition and removal of buildings and equipment destroyed
by fire shall remain available until September 30, 2002, for a
grant for such purpose to the County of Richmond, North Carolina.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–213
The seventh paragraph under this heading in title II of Public
Law 106–377 is amended by striking ‘‘$292,000,000’’ and inserting
in lieu thereof ‘‘$358,128,000’’: Provided, That such funds shall
be available for grants for the Economic Development Initiative
(EDI) to finance a variety of targeted economic investments in
accordance with the terms and conditions specified in the statement
of managers accompanying this conference report.
DEPARTMENT OF THE TREASURY
COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS
COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS
FUND PROGRAM ACCOUNT
Under this heading in Public Law 106–377, strike ‘‘$8,750,000
may be used for administrative expenses,’’ and insert ‘‘$9,750,000
may be used for administrative expenses, including administration
of the New Markets Tax Credit and Individual Development
Accounts,’’.
ENVIRONMENTAL PROTECTION AGENCY
SCIENCE AND TECHNOLOGY
For an additional amount for ‘‘Science and technology’’,
$1,000,000 for continuation of the South Bronx Air Pollution Study
being conducted by New York University.
ENVIRONMENTAL PROGRAMS AND MANAGEMENT
The statement of the managers under this heading in title
III of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 2001
(Public Law 106–377) is deemed to be amended by inserting the
word ‘‘Valley’’ after the words ‘‘San Bernardino’’ in reference to
a project identified as number 104 in such statement of the managers.
STATE AND TRIBAL ASSISTANCE GRANTS
Grants appropriated under this heading in Public Law 106–
74 and Public Law 106–377 for drinking water infrastructure needs
in the New York City watershed shall be awarded under section
1443(d) of the Safe Drinking Water Act, as amended.
The referenced statement of the managers under this heading
in Public Law 106–377 is deemed to be amended by striking all
after the words ‘‘City of Liberty’’ in reference to item number
78, and inserting the words ‘‘Town of Versailles, Indiana for wastewater infrastructure improvements’’.
Under this heading in title III of Public Law 106–377, strike
‘‘$335,740,000’’ and insert ‘‘$356,370,000’’: Provided, That such
funds shall be for making grants for the construction of wastewater
and water treatment facilities and groundwater protection infrastructure in accordance with the terms and conditions specified
for such grants in the statement of managers accompanying Public
Law 106–377 and this conference report.
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114 STAT. 2763A–214
PUBLIC LAW 106–554—APPENDIX D
FEDERAL EMERGENCY MANAGEMENT AGENCY
EMERGENCY MANAGEMENT PLANNING AND ASSISTANCE
For an additional amount for ‘‘Emergency management planning and assistance’’, $100,000,000, to remain available through
September 30, 2001, for programs as authorized by section 33
of the Federal Fire Prevention and Control Act of 1974 (15 U.S.C.
2201 et seq.), as amended.
CHAPTER 14
GENERAL PROVISIONS—THIS DIVISION
SEC. 1401. H. Con. Res. 234 of the 106th Congress, as adopted
by the House of Representatives on November 18, 1999, shall be
considered to have been adopted by the Senate.
SEC. 1402. Section 3003(a)(1) of the Federal Reports Elimination and Sunset Act of 1995 (31 U.S.C. 1113 note) does not
apply to any report required to be submitted under any of the
following provisions of law:
(1) Sections 1105(a), 1106(a) and (b), and 1109(a) of title
31, United States Code, and any other law relating to the
budget of the United States Government.
(2) The Balanced Budget and Emergency Deficit Control
Act of 1985 (2 U.S.C. 900 et seq.).
(3) Sections 202(e)(1) and (3) of the Congressional Budget
Act of 1974 (2 U.S.C. 602(e)(1) and (3)).
(4) Section 1014(e) of the Congressional Budget and
Impoundment Control Act of 1974 (2 U.S.C. 685(e)).
SEC. 1403. (a) GOVERNMENT-WIDE RESCISSIONS.—There is
hereby rescinded an amount equal to 0.22 percent of the discretionary budget authority provided (or obligation limit imposed) for
fiscal year 2001 in this or any other Act for each department,
agency, instrumentality, or entity of the Federal Government,
except for those programs, projects, and activities which are specifically exempted elsewhere in this provision: Provided, That this
exact reduction percentage shall be applied on a pro rata basis
only to each program, project, and activity subject to the rescission.
(b) RESTRICTIONS.—This reduction shall not be applied to the
amounts appropriated in title I of Public Law 106–259: Provided,
That this reduction shall not be applied to the amounts appropriated
in division B of Public Law 106–246: Provided further, That this
reduction shall not be applied to the amounts appropriated under
the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2001, as contained
in this Act, or in prior Acts.
(c) REPORT.—The Director of the Office of Management and
Budget shall include in the President’s budget submitted for fiscal
year 2002 a report specifying the reductions made to each account
pursuant to this section.
DIVISION B
TITLE I
AND
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SEC. 101. ELIGIBILITY OF PRIVATE ORGANIZATIONS UNDER CHILD
ADULT CARE FOOD PROGRAM. (a) Section 17(a)(2)(B) of the
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–215
Richard B. Russell National School Lunch Act (42 U.S.C.
1766(a)(2)(B)) is amended by striking ‘‘children for which the’’ and
inserting ‘‘children, if—
‘‘(i) during the period beginning on the date of
enactment of this clause and ending on September
30, 2001, at least 25 percent of the children served
by the organization meet the income eligibility criteria
established under section 9(b) for free or reduced price
meals; or
‘‘(ii) the’’.
(b) EMERGENCY REQUIREMENT.—
(1) IN GENERAL.—The entire amount necessary to carry
out this section shall be available only to the extent that
an official budget request for the entire amount, that includes
designation of the entire amount of the request as an emergency
requirement as defined in the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended, is transmitted by
the President to the Congress.
(2) DESIGNATION.—The entire amount necessary to carry
out this section is designated by the Congress as an emergency
requirement pursuant to section 251(b)(2)(A) of such Act.
SEC. 102. SUMMER FOOD PILOT PROJECTS. (a) Section 18 of
the Richard B. Russell National School Lunch Act (42 U.S.C. 1769)
is amended by adding at the end the following:
‘‘(f ) SUMMER FOOD PILOT PROJECTS.—
‘‘(1) DEFINITION OF ELIGIBLE STATE.—In this subsection,
the term ‘eligible State’ means a State in which (based on
data available in July 2000)—
‘‘(A) the percentage obtained by dividing—
‘‘(i) the sum of—
‘‘(I) the average daily number of children
attending the summer food service program in the
State in July 1999; and
‘‘(II) the average daily number of children
receiving free or reduced price meals under the
school lunch program in the State in July 1999;
by
‘‘(ii) the average daily number of children receiving
free or reduced price meals under the school lunch
program in the State in March 1999; is less than
50 percent of
‘‘(B) the percentage obtained by dividing—
‘‘(i) the sum of—
‘‘(I) the average daily number of children
attending the summer food service program in all
States in July 1999; and
‘‘(II) the average daily number of children
receiving free or reduced price meals under the
school lunch program in all States in July 1999;
by
‘‘(ii) the average daily number of children receiving
free or reduced price meals under the school lunch
program in all States in March 1999.
‘‘(2) PILOT PROJECTS.—During the period of fiscal years
2001 through 2003, the Secretary shall carry out a summer
food pilot project in each eligible State to increase the number
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114 STAT. 2763A–216
PUBLIC LAW 106–554—APPENDIX D
of children participating in the summer food service program
in the State.
‘‘(3) SUPPORT LEVELS FOR SERVICE INSTITUTIONS.—
‘‘(A) FOOD SERVICE.—Under the pilot project, a service
institution (other than a service institution described in
section 13(a)(7)) in an eligible State shall receive the maximum amounts for food service under section 13(b)(1) without regard to the requirement under section 13(b)(1)(A)
that payments shall equal the full cost of food service
operations.
‘‘(B) ADMINISTRATIVE COSTS.—Under the pilot project,
a service institution (other than a service institution
described in section 13(a)(7)) in an eligible State shall
receive the maximum amounts for administrative costs
determined by the Secretary under section 13(b)(4) without
regard to the requirement under section 13(b)(3) that payments to service institutions shall equal the full amount
of State-approved administrative costs incurred.
‘‘(C) COMPLIANCE.—A service institution that receives
assistance under this subsection shall comply with all
provisions of section 13 other than subsections (b)(1)(A)
and (b)(3) of section 13.
‘‘(4) MAINTENANCE OF EFFORT.—Expenditures of funds from
State and local sources for maintenance of a summer food
service program shall not be diminished as a result of assistance
from the Secretary received under this subsection.
‘‘(5) EVALUATION OF PILOT PROJECTS.—
‘‘(A) IN GENERAL.—The Secretary, acting through the
Administrator of the Food and Nutrition Service, shall
conduct an evaluation of the pilot project.
‘‘(B) CONTENT.—An evaluation under this paragraph
shall describe—
‘‘(i) any effect on participation by children and
service institutions in the summer food service program
in the eligible State in which the pilot project is carried
out;
‘‘(ii) any effect of the pilot project on the quality
of the meals and supplements served in the eligible
State in which the pilot project is carried out; and
‘‘(iii) any effect of the pilot project on program
integrity.
‘‘(6) REPORTS.—
‘‘(A) INTERIM REPORT.—Not later than December 1,
2002, the Secretary shall submit to the Committee on Education and the Workforce of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry
of the Senate an interim report that describes the status
of, and any progress made by, each pilot project being
carried out under this subsection as of the date of submission of the report.
‘‘(B) FINAL REPORT.—Not later than April 30, 2004,
the Secretary shall submit to the Committee on Education
and the Workforce of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of
the Senate a final report that includes—
‘‘(i) the evaluations completed by the Secretary
under paragraph (5); and
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114 STAT. 2763A–217
‘‘(ii) any recommendations of the Secretary
concerning the pilot projects.’’.
(b) EMERGENCY REQUIREMENT.—
(1) IN GENERAL.—The entire amount necessary to carry
out this section shall be available only to the extent that
an official budget request for the entire amount, that includes
designation of the entire amount of the request as an emergency
requirement as defined in the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended, is transmitted by
the President to the Congress.
(2) DESIGNATION.—The entire amount necessary to carry
out this section is designated by the Congress as an emergency
requirement pursuant to section 251(b)(2)(A) of such Act.
SEC. 103. (a) IN GENERAL.—The Secretary of the Interior shall
conduct a feasibility study for a Sacramento River, California, diversion project that is consistent with the Water Forum Agreement
among the members of the Sacramento, California, Water Forum
dated April 24, 2000, and that considers—
(1) consolidation of several of the Natomas Central Mutual
Water Company’s diversions;
(2) upgrading fish screens at the consolidated diversion;
(3) the diversion of 35,000 acre feet of water by the Placer
County Water Agency;
(4) the diversion of 29,000 acre feet of water for delivery
to the Northridge Water District;
(5) the potential to accommodate other diversions of water
from the Sacramento River, subject to additional negotiations
and agreement among Water Forum signatories and potentially
affected parties upstream on the Sacramento River; and
(6) an inter-tie between the diversions referred to in paragraphs (3), (4), and (5) with the Northridge Water District’s
pipeline that delivers water from the American River.
(b) REQUIRED COMPONENTS.—The feasibility study shall
include—
(1) the development of a range of reasonable options;
(2) an environmental evaluation; and
(3) consultation with Federal and State resource management agencies regarding potential impacts and mitigation
measures.
(c) WATER SUPPLY IMPACT ALTERNATIVES.—The study authorized by this section shall include a range of alternatives, all of
which would investigate options that could reduce to insignificance
any water supply impact on water users in the Sacramento River
watershed, including Central Valley Project contractors, from any
delivery of water out of the Sacramento River as referenced in
subsection (a). In evaluating the alternatives, the study shall consider water supply alternatives that would increase water supply
for, or in, the Sacramento River watershed. The study should be
coordinated with the CALFED program and take advantage of
information already developed within that program to investigate
water supply increase alternatives. Where the alternatives evaluated are in addition to or different from the existing CALFED
alternatives, such information should be clearly identified.
(d) HABITAT MANAGEMENT PLANNING GRANTS.—The Secretary
of the Interior, subject to the availability of appropriations, is
authorized and directed to provide grants to support local habitat
management planning efforts undertaken as part of the consultation
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114 STAT. 2763A–218
PUBLIC LAW 106–554—APPENDIX D
described in subsection (b)(3) in the form of matching funds up
to $5,000,000.
(e) REPORT.—The Secretary of the Interior shall provide a report
to the Committee on Resources of the United States House of
Representatives and to the Committee on Energy and Natural
Resources of the United States Senate within 24 months from
the date of enactment of this Act on the results of the study
identified in subsection (a).
(f ) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to the Secretary of the Interior to carry out
this section $10,000,000, which may remain available until
expended, of which—
(1) $5,000,000 shall be for the feasibility study under subsection (a); and
(2) $5,000,000 shall be for the habitat management planning grants under subsection (d).
(g) LIMITATION ON CONSTRUCTION.—This section does not and
shall not be interpreted to authorize construction of any facilities.
SEC. 104. TEN- AND FIFTEEN-MILE BAYOUS, ARKANSAS. The
project for flood control, Saint Francis River Basin, Missouri and
Arkansas, authorized by section 204 of the Flood Control Act of
1950 (64 Stat. 172), is modified to expand the boundaries of the
project to include Ten- and Fifteen-Mile Bayous near West Memphis, Arkansas. Notwithstanding section 103(f ) of the Water
Resources Development Act of 1986 (100 Stat. 4086), the flood
control work at Ten- and Fifteen-Mile Bayous shall not be considered separable elements of the project.
SEC. 105. In accordance with section 102(l) of the Water
Resources Development Act of 1990 (104 Stat. 4613), the Secretary
of the Army, acting through the Chief of Engineers, is authorized
and directed to enter into an agreement to permit the City of
Alton, Illinois to construct the authorized recreational facilities
and to reimburse the City of Alton, Illinois for the Federal share
of these cost-shared recreation facilities as usable segments are
completed.
SEC. 106. TRUCKEE WATERSHED RECLAMATION PROJECT. (a)
AUTHORIZATION.—The Secretary of the Interior, in cooperation with
Washoe County, Nevada, may participate in the design, planning,
and construction of the Truckee watershed reclamation project,
consisting of the North Valley reuse project and the Spanish Springs
Valley septic conversion project, to reclaim and reuse wastewater
(including degraded groundwater) within and without the service
area of Washoe County, Nevada.
(b) COST SHARE.—The Federal share of the cost of the project
described in subsection (a) shall not exceed 25 percent of the total
cost of the project.
(c) LIMITATION.—Funds provided by the Secretary shall not
be used for the operation or maintenance of the project described
in subsection (a).
(d) RECLAMATION WASTEWATER AND GROUNDWATER STUDY AND
FACILITIES ACT.—
(1) DESIGN, PLANNING, AND CONSTRUCTION.—Design, planning, and construction of the project described in subsection
(a) shall be in accordance with, and subject to the limitations
contained in, the Reclamation Wastewater and Groundwater
Study and Facilities Act (43 U.S.C. 390h et seq.).
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–219
(2) FUNDING.—Funds made available under section 1631
of the Reclamation Wastewater and Groundwater Study and
Facilities Act (43 U.S.C. 390h–13) may be used to pay the
Federal share of the cost of the project.
SEC. 107. The project for navigation, Tampa Harbor, Florida,
authorized by section 4 of the Rivers and Harbors Act of September
22, 1922 (42 Stat. 1042), is modified to authorize the Secretary
of the Army to deepen and widen the Alafia Channel in accordance
with the plans described in the Draft Feasibility Report, Alafia
River, Tampa Harbor, Florida, dated May 2000, at a total cost
of $61,592,000, with an estimated Federal cost of $39,621,000 and
an estimated non-Federal cost of $21,971,000.
SEC. 108. ENVIRONMENTAL INFRASTRUCTURE. (a) TECHNICAL,
PLANNING, AND DESIGN ASSISTANCE.—Section 219(c) of the Water
Resources Development Act of 1992 (106 Stat. 4835) is amended
by adding at the end the following:
‘‘(19) MARANA, ARIZONA.—Wastewater treatment and distribution infrastructure, Marana, Arizona.
‘‘(20) EASTERN ARKANSAS ENTERPRISE COMMUNITY,
ARKANSAS.—Water-related infrastructure, Eastern Arkansas
Enterprise Community, Cross, Lee, Monroe, and St. Francis
Counties, Arkansas.
‘‘(21) CHINO HILLS, CALIFORNIA.—Storm water and sewage
collection infrastructure, Chino Hills, California.
‘‘(22) CLEAR LAKE BASIN, CALIFORNIA.—Water-related infrastructure and resource protection, Clear Lake Basin, California.
‘‘(23) DESERT HOT SPRINGS, CALIFORNIA.—Resource protection and wastewater infrastructure, Desert Hot Springs,
California.
‘‘(24) EASTERN MUNICIPAL WATER DISTRICT, CALIFORNIA.—
Regional water-related infrastructure, Eastern Municipal Water
District, California.
‘‘(25) HUNTINGTON BEACH, CALIFORNIA.—Water supply and
wastewater infrastructure, Huntington Beach, California.
‘‘(26) INGLEWOOD, CALIFORNIA.—Water infrastructure,
Inglewood, California.
‘‘(27) LOS OSOS COMMUNITY SERVICE DISTRICT, CALIFORNIA.—Wastewater infrastructure, Los Osos Community Service
District, California.
‘‘(28) NORWALK, CALIFORNIA.—Water-related infrastructure,
Norwalk, California.
‘‘(29) KEY BISCAYNE, FLORIDA.—Sanitary sewer infrastructure, Key Biscayne, Florida.
‘‘(30) SOUTH TAMPA, FLORIDA.—Water supply and aquifer
storage and recovery infrastructure, South Tampa, Florida.
‘‘(31) FORT WAYNE, INDIANA.—Combined sewer overflow
infrastructure and wetlands protection, Fort Wayne, Indiana.
‘‘(32) INDIANAPOLIS, INDIANA.—Combined sewer overflow
infrastructure, Indianapolis, Indiana.
‘‘(33) ST. CHARLES, ST. BERNARD, AND PLAQUEMINES PARISHES, LOUISIANA.—Water and wastewater infrastructure, St.
Charles, St. Bernard, and Plaquemines Parishes, Louisiana.
‘‘(34) ST. JOHN THE BAPTIST AND ST. JAMES PARISHES, LOUISIANA.—Water and sewer improvements, St. John the Baptist
and St. James Parishes, Louisiana.
‘‘(35) UNION COUNTY, NORTH CAROLINA.—Water infrastructure, Union County, North Carolina.
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114 STAT. 2763A–220
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‘‘(36) HOOD RIVER, OREGON.—Water transmission infrastructure, Hood River, Oregon.
‘‘(37) MEDFORD, OREGON.—Sewer collection infrastructure,
Medford, Oregon.
‘‘(38) PORTLAND, OREGON.—Water infrastructure and
resource protection, Portland, Oregon.
‘‘(39) COUDERSPORT, PENNSYLVANIA.—Sewer system extensions and improvements, Coudersport, Pennsylvania.
‘‘(40) PARK CITY, UTAH.—Water supply infrastructure, Park
City, Utah.’’.
(b) AUTHORIZATION OF APPROPRIATIONS FOR TECHNICAL, PLANNING, AND DESIGN ASSISTANCE.—Section 219(d) of the Water
Resources Development Act of 1992 (106 Stat. 4836) is amended
by striking ‘‘$5,000,000’’ and inserting ‘‘$30,000,000’’.
(c) MODIFICATION OF AUTHORIZATIONS FOR ENVIRONMENTAL
PROJECTS.—Section 219 of the Water Resources Development Act
of 1992 (106 Stat. 4835; 106 Stat. 3757; 113 Stat. 334) is amended—
(1) in subsection (e)(6) by striking ‘‘$20,000,000’’ and inserting ‘‘$30,000,000’’;
(2) in subsection (f )(4) by striking ‘‘$15,000,000’’ and inserting ‘‘$35,000,000’’;
(3) in subsection (f )(21) by striking ‘‘$10,000,000’’ and
inserting ‘‘$20,000,000’’;
(4) in subsection (f )(25) by striking ‘‘$5,000,000’’ and inserting ‘‘$15,000,000’’;
(5) in subsection (f )(30) by striking ‘‘$10,000,000’’ and
inserting ‘‘$20,000,000’’;
(6) in subsection (f )(43) by striking ‘‘$15,000,000’’ and
inserting ‘‘$35,000,000’’.
(d) ADDITIONAL ASSISTANCE FOR CRITICAL RESOURCE
PROJECTS.—Section 219(f ) of the Water Resources Development
Act of 1992 (106 Stat. 4835; 113 Stat. 335) is amended by adding
at the end the following:
‘‘(45) WASHINGTON, D.C., AND MARYLAND.—$15,000,000 for
the project described in subsection (c)(1), modified to include
measures to eliminate or control combined sewer overflows
in the Anacostia River watershed.
‘‘(46) DUCK RIVER, CULLMAN, ALABAMA.—$5,000,000 for
water supply infrastructure, Duck River, Cullman, Alabama.
‘‘(47) UNION COUNTY, ARKANSAS.—$52,000,000 for water
supply infrastructure, including facilities for withdrawal, treatment, and distribution, Union County, Arkansas.
‘‘(48) CAMBRIA, CALIFORNIA.—$10,300,000 for desalination
infrastructure, Cambria, California.
‘‘(49) LOS ANGELES HARBOR/TERMINAL ISLAND, CALIFORNIA.—$6,500,000 for wastewater recycling infrastructure, Los
Angeles Harbor/Terminal Island, California.
‘‘(50) NORTH VALLEY REGION, LANCASTER, CALIFORNIA.—
$14,500,000 for water infrastructure, North Valley Region, Lancaster, California.
‘‘(51) SAN DIEGO COUNTY, CALIFORNIA.—$10,000,000 for
water-related infrastructure, San Diego County, California.
‘‘(52) SOUTH PERRIS, CALIFORNIA.—$25,000,000 for water
supply desalination infrastructure, South Perris, California.
‘‘(53) AURORA, ILLINOIS.—$8,000,000 for wastewater infrastructure to reduce or eliminate combined sewer overflows,
Aurora, Illinois.
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114 STAT. 2763A–221
‘‘(54) COOK COUNTY, ILLINOIS.—$35,000,000 for waterrelated infrastructure and resource protection and development,
Cook County, Illinois.
‘‘(55) MADISON AND ST. CLAIR COUNTIES, ILLINOIS.—
$10,000,000 for water and wastewater assistance, Madison and
St. Clair Counties, Illinois.
‘‘(56) IBERIA PARISH, LOUISIANA.—$5,000,000 for water and
wastewater infrastructure, Iberia Parish, Louisiana.
‘‘(57) KENNER, LOUISIANA.—$5,000,000 for wastewater
infrastructure, Kenner, Louisiana.
‘‘(58) BENTON HARBOR, MICHIGAN.—$1,500,000 for waterrelated infrastructure, City of Benton Harbor, Michigan.
‘‘(59) GENESEE COUNTY, MICHIGAN.—$6,700,000 for wastewater infrastructure assistance to reduce or eliminate sewer
overflows, Genesee County, Michigan.
‘‘(60) NEGAUNEE, MICHIGAN.—$10,000,000 for wastewater
infrastructure assistance, City of Negaunee, Michigan.
‘‘(61) GARRISON AND KATHIO TOWNSHIP, MINNESOTA.—
$11,000,000 for a wastewater infrastructure project for the
city of Garrison and Kathio Township, Minnesota.
‘‘(62) NEWTON, NEW JERSEY.—$7,000,000 for water filtration
infrastructure, Newton, New Jersey.
‘‘(63) LIVERPOOL, NEW YORK.—$2,000,000 for water infrastructure, including a pump station, Liverpool, New York.
‘‘(64) STANLY COUNTY, NORTH CAROLINA.—$8,900,000 for
wastewater infrastructure, Stanly County, North Carolina.
‘‘(65) YUKON, OKLAHOMA.—$5,500,000 for water-related
infrastructure, including wells, booster stations, storage tanks,
and transmission lines, Yukon, Oklahoma.
‘‘(66) ALLEGHENY COUNTY, PENNSYLVANIA.—$20,000,000 for
water-related environmental infrastructure, Allegheny County,
Pennsylvania.
‘‘(67) MOUNT JOY TOWNSHIP AND CONEWAGO TOWNSHIP,
PENNSYLVANIA.—$8,300,000 for water and wastewater infrastructure, Mount Joy Township and Conewago Township,
Pennsylvania.
‘‘(68) PHOENIXVILLE BOROUGH, CHESTER COUNTY, PENNSYLVANIA.—$2,400,000 for water and sewer infrastructure,
Phoenixville Borough, Chester County, Pennsylvania.
‘‘(69) TITUSVILLE, PENNSYLVANIA.—$7,300,000 for storm
water separation and treatment plant upgrades, Titusville,
Pennsylvania.
‘‘(70) WASHINGTON, GREENE, WESTMORELAND, AND FAYETTE
COUNTIES, PENNSYLVANIA.—$8,000,000 for water and wastewater infrastructure, Washington, Greene, Westmoreland, and
Fayette Counties, Pennsylvania.’’.
SEC. 109. FLORIDA KEYS WATER QUALITY IMPROVEMENTS. (a)
IN GENERAL.—In coordination with the Florida Keys Aqueduct
Authority, appropriate agencies of municipalities of Monroe County,
Florida, and other appropriate public agencies of the State of Florida
or Monroe County, the Secretary of the Army may provide technical
and financial assistance to carry out projects for the planning,
design, and construction of treatment works to improve water quality in the Florida Keys National Marine Sanctuary.
(b) CRITERIA FOR PROJECTS.—Before entering into a cooperation
agreement to provide assistance with respect to a project under
this section, the Secretary shall ensure that—
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(1) the non-Federal sponsor has completed adequate planning and design activities, as applicable;
(2) the non-Federal sponsor has completed a financial plan
identifying sources of non-Federal funding for the project;
(3) the project complies with—
(A) applicable growth management ordinances of Monroe County, Florida;
(B) applicable agreements between Monroe County,
Florida, and the State of Florida to manage growth in
Monroe County, Florida; and
(C) applicable water quality standards; and
(4) the project is consistent with the master wastewater
and storm water plans for Monroe County, Florida.
(c) CONSIDERATION.—In selecting projects under subsection (a),
the Secretary shall consider whether a project will have substantial
water quality benefits relative to other projects under consideration.
(d) CONSULTATION.—In carrying out this section, the Secretary
shall consult with—
(1) the Water Quality Steering Committee established
under section 8(d)(2)(A) of the Florida Keys National Marine
Sanctuary and Protection Act (106 Stat. 5054);
(2) the South Florida Ecosystem Restoration Task Force
established by section 528(f ) of the Water Resources Development Act of 1996 (110 Stat. 3771–3773);
(3) the Commission on the Everglades established by executive order of the Governor of the State of Florida; and
(4) other appropriate State and local government officials.
(e) NON-FEDERAL SHARE.—
(1) IN GENERAL.—The non-Federal share of the cost of
a project carried out under this section shall be 35 percent.
(2) CREDIT.—
(A) IN GENERAL.—The Secretary may provide the nonFederal interest credit toward cash contributions
required—
(i) before and during the construction of the
project, for the costs of planning, engineering, and
design, and for the construction management work
that is performed by the non-Federal interest and that
the Secretary determines is necessary to implement
the project; and
(ii) during the construction of the project, for the
construction that the non-Federal interest carries out
on behalf of the Secretary and that the Secretary determines is necessary to carry out the project.
(B) TREATMENT OF CREDIT BETWEEN PROJECTS.—Any
credit provided under this paragraph may be carried over
between authorized projects.
(f ) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $100,000,000. Such
sums shall remain available until expended.
SEC. 110. SAN GABRIEL BASIN, CALIFORNIA. (a) SAN GABRIEL
BASIN RESTORATION.—
(1) ESTABLISHMENT OF FUND.—There shall be established
within the Treasury of the United States an interest bearing
account to be known as the San Gabriel Basin Restoration
Fund (in this section referred to as the ‘‘Restoration Fund’’).
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114 STAT. 2763A–223
(2) ADMINISTRATION OF FUND.—The Restoration Fund shall
be administered by the Secretary of the Army, in cooperation
with the San Gabriel Basin Water Quality Authority or its
successor agency.
(3) PURPOSES OF FUND.—
(A) IN GENERAL.—Subject to subparagraph (B), the
amounts in the Restoration Fund, including interest
accrued, shall be utilized by the Secretary—
(i) to design and construct water quality projects
to be administered by the San Gabriel Basin Water
Quality Authority and the Central Basin Water Quality
Project to be administered by the Central Basin
Municipal Water District; and
(ii) to operate and maintain any project constructed
under this section for such period as the Secretary
determines, but not to exceed 10 years, following the
initial date of operation of the project.
(B) COST-SHARING LIMITATION.—
(i) IN GENERAL.—The Secretary may not obligate
any funds appropriated to the Restoration Fund in
a fiscal year until the Secretary has deposited in the
Fund an amount provided by non-Federal interests
sufficient to ensure that at least 35 percent of any
funds obligated by the Secretary are from funds provided to the Secretary by the non-Federal interests.
(ii) NON-FEDERAL RESPONSIBILITY.—The San
Gabriel Basin Water Quality Authority shall be responsible for providing the non-Federal amount required
by clause (i). The State of California, local government
agencies, and private entities may provide all or any
portion of such amount.
(b) COMPLIANCE WITH APPLICABLE LAW.—In carrying out the
activities described in this section, the Secretary shall comply with
any applicable Federal and State laws.
(c) RELATIONSHIP TO OTHER ACTIVITIES.—Nothing in this section shall be construed to affect other Federal or State authorities
that are being used or may be used to facilitate the cleanup and
protection of the San Gabriel and Central groundwater basins.
In carrying out the activities described in this section, the Secretary
shall integrate such activities with ongoing Federal and State
projects and activities. None of the funds made available for such
activities pursuant to this section shall be counted against any
Federal authorization ceiling established for any previously authorized Federal projects or activities.
(d) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There is authorized to be appropriated
to the Restoration Fund established under subsection (a)
$85,000,000. Such funds shall remain available until expended.
(2) SET-ASIDE.—Of the amounts appropriated under paragraph (1), no more than $10,000,000 shall be available to carry
out the Central Basin Water Quality Project.
(e) ADJUSTMENT.—Of the $25,000,000 made available for San
Gabriel Basin Groundwater Restoration, California, under the heading ‘‘Construction, General’’ in title I of the Energy and Water
Development Appropriations Act, 2001—
(1) $2,000,000 shall be available only for studies and other
investigative activities and planning and design of projects
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determined by the Secretary to offer a long-term solution to
the problem of groundwater contamination caused by perchlorates at sites located in the city of Santa Clarita, California;
and
(2) $23,000,000 shall be deposited in the Restoration Fund,
of which $4,000,000 shall be used for remediation in the Central
Basin, California.
SEC. 111. PERCHLORATE. (a) IN GENERAL.—The Secretary of
the Army, in cooperation with Federal, State, and local government
agencies, may participate in studies and other investigative activities and in the planning and design of projects determined by
the Secretary to offer a long-term solution to the problem of groundwater contamination caused by perchlorates.
(b) INVESTIGATIONS AND PROJECTS.—
(1) BOSQUE AND LEON RIVERS.—The Secretary, in coordination with other Federal agencies and the Brazos River Authority, shall participate under subsection (a) in investigations and
projects in the Bosque and Leon Rivers watersheds in Texas
to assess the impact of the perchlorate associated with the
former Naval ‘‘Weapons Industrial Reserve Plant’’ at McGregor,
Texas.
(2) CADDO LAKE.—The Secretary, in coordination with other
Federal agencies and the Northeast Texas Municipal Water
District, shall participate under subsection (a) in investigations
and projects relating to perchlorate contamination in Caddo
Lake, Texas.
(3) EASTERN SANTA CLARA BASIN.—The Secretary, in
coordination with other Federal, State, and local government
agencies, shall participate under subsection (a) in investigations
and projects related to sites that are sources of perchlorates
and that are located in the city of Santa Clarita, California.
(c) AUTHORIZATION OF APPROPRIATIONS.—For the purposes of
carrying out this section, there is authorized to be appropriated
to the Secretary $25,000,000, of which not to exceed $8,000,000
shall be available to carry out subsection (b)(1), not to exceed
$3,000,000 shall be available to carry out subsection (b)(2), and
not to exceed $7,000,000 shall be available to carry out subsection
(b)(3).
SEC. 112. WET WEATHER WATER QUALITY. (a) COMBINED SEWER
OVERFLOWS.—Section 402 of the Federal Water Pollution Control
Act (33 U.S.C. 1342) is amended by adding at the end the following:
‘‘(q) COMBINED SEWER OVERFLOWS.—
‘‘(1) REQUIREMENT FOR PERMITS, ORDERS, AND DECREES.—
Each permit, order, or decree issued pursuant to this Act after
the date of enactment of this subsection for a discharge from
a municipal combined storm and sanitary sewer shall conform
to the Combined Sewer Overflow Control Policy signed by the
Administrator on April 11, 1994 (in this subsection referred
to as the ‘CSO control policy’).
‘‘(2) WATER QUALITY AND DESIGNATED USE REVIEW GUIDANCE.—Not later than July 31, 2001, and after providing notice
and opportunity for public comment, the Administrator shall
issue guidance to facilitate the conduct of water quality and
designated use reviews for municipal combined sewer overflow
receiving waters.
‘‘(3) REPORT.—Not later than September 1, 2001, the
Administrator shall transmit to Congress a report on the
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–225
progress made by the Environmental Protection Agency, States,
and municipalities in implementing and enforcing the CSO
control policy.’’.
(b) WET WEATHER PILOT PROGRAM.—Title I of the Federal
Water Pollution Control Act (33 U.S.C. 1251 et seq.) is amended
by adding at the end the following:
‘‘SEC. 121. WET WEATHER WATERSHED PILOT PROJECTS.
‘‘(a) IN GENERAL.—The Administrator, in coordination with the
States, may provide technical assistance and grants for treatment
works to carry out pilot projects relating to the following areas
of wet weather discharge control:
‘‘(1) WATERSHED MANAGEMENT OF WET WEATHER DISCHARGES.—The management of municipal combined sewer overflows, sanitary sewer overflows, and stormwater discharges,
on an integrated watershed or subwatershed basis for the purpose of demonstrating the effectiveness of a unified wet weather
approach.
‘‘(2) STORMWATER BEST MANAGEMENT PRACTICES.—The control of pollutants from municipal separate storm sewer systems
for the purpose of demonstrating and determining controls that
are cost-effective and that use innovative technologies in reducing such pollutants from stormwater discharges.
‘‘(b) ADMINISTRATION.—The Administrator, in coordination with
the States, shall provide municipalities participating in a pilot
project under this section the ability to engage in innovative practices, including the ability to unify separate wet weather control
efforts under a single permit.
‘‘(c) FUNDING.—
‘‘(1) IN GENERAL.—There is authorized to be appropriated
to carry out this section $10,000,000 for fiscal year 2002,
$15,000,000 for fiscal year 2003, and $20,000,000 for fiscal
year 2004. Such funds shall remain available until expended.
‘‘(2) STORMWATER.—The Administrator shall make available not less than 20 percent of amounts appropriated for
a fiscal year pursuant to this subsection to carry out the purposes of subsection (a)(2).
‘‘(3) ADMINISTRATIVE EXPENSES.—The Administrator may
retain not to exceed 4 percent of any amounts appropriated
for a fiscal year pursuant to this subsection for the reasonable
and necessary costs of administering this section.
‘‘(d) REPORT TO CONGRESS.—Not later than 5 years after the
date of enactment of this section, the Administrator shall transmit
to Congress a report on the results of the pilot projects conducted
under this section and their possible application nationwide.’’.
(c) SEWER OVERFLOW CONTROL GRANTS.—Title II of the Federal
Water Pollution Control Act (33 U.S.C. 1342 et seq.) is amended
by adding at the end the following:
‘‘SEC. 221. SEWER OVERFLOW CONTROL GRANTS.
‘‘(a) IN GENERAL.—In any fiscal year in which the Administrator
has available for obligation at least $1,350,000,000 for the purposes
of section 601—
‘‘(1) the Administrator may make grants to States for the
purpose of providing grants to a municipality or municipal
entity for planning, design, and construction of treatment works
to intercept, transport, control, or treat municipal combined
sewer overflows and sanitary sewer overflows; and
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114 STAT. 2763A–226
PUBLIC LAW 106–554—APPENDIX D
‘‘(2) subject to subsection (g), the Administrator may make
a direct grant to a municipality or municipal entity for the
purposes described in paragraph (1).
‘‘(b) PRIORITIZATION.—In selecting from among municipalities
applying for grants under subsection (a), a State or the Administrator shall give priority to an applicant that—
‘‘(1) is a municipality that is a financially distressed
community under subsection (c);
‘‘(2) has implemented or is complying with an implementation schedule for the nine minimum controls specified in the
CSO control policy referred to in section 402(q)(1) and has
begun implementing a long-term municipal combined sewer
overflow control plan or a separate sanitary sewer overflow
control plan;
‘‘(3) is requesting a grant for a project that is on a State’s
intended use plan pursuant to section 606(c); or
‘‘(4) is an Alaska Native Village.
‘‘(c) FINANCIALLY DISTRESSED COMMUNITY.—
‘‘(1) DEFINITION.—In subsection (b), the term ‘financially
distressed community’ means a community that meets affordability criteria established by the State in which the community
is located, if such criteria are developed after public review
and comment.
‘‘(2) CONSIDERATION OF IMPACT ON WATER AND SEWER
RATES.—In determining if a community is a distressed community for the purposes of subsection (b), the State shall consider,
among other factors, the extent to which the rate of growth
of a community’s tax base has been historically slow such
that implementing a plan described in subsection (b)(2) would
result in a significant increase in any water or sewer rate
charged by the community’s publicly owned wastewater treatment facility.
‘‘(3) INFORMATION TO ASSIST STATES.—The Administrator
may publish information to assist States in establishing affordability criteria under paragraph (1).
‘‘(d) COST-SHARING.—The Federal share of the cost of activities
carried out using amounts from a grant made under subsection
(a) shall be not less than 55 percent of the cost. The non-Federal
share of the cost may include, in any amount, public and private
funds and in-kind services, and may include, notwithstanding section 603(h), financial assistance, including loans, from a State water
pollution control revolving fund.
‘‘(e) ADMINISTRATIVE REPORTING REQUIREMENTS.—If a project
receives grant assistance under subsection (a) and loan assistance
from a State water pollution control revolving fund and the loan
assistance is for 15 percent or more of the cost of the project,
the project may be administered in accordance with State water
pollution control revolving fund administrative reporting requirements for the purposes of streamlining such requirements.
‘‘(f ) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $750,000,000 for each
of fiscal years 2002 and 2003. Such sums shall remain available
until expended.
‘‘(g) ALLOCATION OF FUNDS.—
‘‘(1) FISCAL YEAR 2002.—Subject to subsection (h), the
Administrator shall use the amounts appropriated to carry
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–227
out this section for fiscal year 2002 for making grants to municipalities and municipal entities under subsection (a)(2), in
accordance with the criteria set forth in subsection (b).
‘‘(2) FISCAL YEAR 2003.—Subject to subsection (h), the
Administrator shall use the amounts appropriated to carry
out this section for fiscal year 2003 as follows:
‘‘(A) Not to exceed $250,000,000 for making grants
to municipalities and municipal entities under subsection
(a)(2), in accordance with the criteria set forth in subsection
(b).
‘‘(B) All remaining amounts for making grants to States
under subsection (a)(1), in accordance with a formula to
be established by the Administrator, after providing notice
and an opportunity for public comment, that allocates to
each State a proportional share of such amounts based
on the total needs of the State for municipal combined
sewer overflow controls and sanitary sewer overflow controls identified in the most recent survey conducted pursuant to section 516(b)(1).
‘‘(h) ADMINISTRATIVE EXPENSES.—Of the amounts appropriated
to carry out this section for each fiscal year—
‘‘(1) the Administrator may retain an amount not to exceed
1 percent for the reasonable and necessary costs of administering this section; and
‘‘(2) the Administrator, or a State, may retain an amount
not to exceed 4 percent of any grant made to a municipality
or municipal entity under subsection (a), for the reasonable
and necessary costs of administering the grant.
‘‘(i) REPORTS.—Not later than December 31, 2003, and periodically thereafter, the Administrator shall transmit to Congress a
report containing recommended funding levels for grants under
this section. The recommended funding levels shall be sufficient
to ensure the continued expeditious implementation of municipal
combined sewer overflow and sanitary sewer overflow controls
nationwide.’’.
(d) INFORMATION ON CSOS AND SSOS.—
(1) REPORT TO CONGRESS.—Not later than 3 years after
the date of enactment of this Act, the Administrator of the
Environmental Protection Agency shall transmit to Congress
a report summarizing—
(A) the extent of the human health and environmental
impacts caused by municipal combined sewer overflows
and sanitary sewer overflows, including the location of
discharges causing such impacts, the volume of pollutants
discharged, and the constituents discharged;
(B) the resources spent by municipalities to address
these impacts; and
(C) an evaluation of the technologies used by municipalities to address these impacts.
(2) TECHNOLOGY CLEARINGHOUSE.—After transmitting a
report under paragraph (1), the Administrator shall maintain
a clearinghouse of cost-effective and efficient technologies for
addressing human health and environmental impacts due to
municipal combined sewer overflows and sanitary sewer overflows.
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114 STAT. 2763A–228
PUBLIC LAW 106–554—APPENDIX D
SEC. 113. FISH PASSAGE DEVICES AT NEW SAVANNAH BLUFF
LOCK AND DAM, SOUTH CAROLINA. Section 348(l)(2) of the Water
Resources Development Act of 2000 is amended—
(1) in subparagraph (A), by striking ‘‘Dam, at Federal
expense of an estimated $5,300,000’’ and inserting ‘‘Dam and
construct appropriate fish passage devices at the Dam, at Federal expense’’; and
(2) in subparagraph (B), by striking ‘‘after repair and
rehabilitation,’’ and inserting ‘‘after carrying out subparagraph
(A),’’.
SEC. 114. (a) EXTINGUISHMENT OF REVERSIONARY INTERESTS
AND USE RESTRICTIONS.—With respect to the lands described in
the deed described in subsection (b)—
(1) the reversionary interests and the use restrictions relating to port or industrial purposes are extinguished;
(2) the human habitation or other building structure use
restriction is extinguished in each area where the elevation
is above the standard project flood elevation; and
(3) the use of fill material to raise areas above the standard
project flood elevation, without increasing the risk of flooding
in or outside of the floodplain, is authorized, except in any
area constituting wetland for which a permit under section
404 of the Federal Water Pollution Control Act (33 U.S.C.
1344) would be required.
(b) AFFECTED DEED.—The deed referred to is the deed recorded
October 17, 1967, in book 291, page 148, Deed of Records of Umatilla
County, Oregon, executed by the United States.
SEC. 115. MURRIETA CREEK, CALIFORNIA. Section 101(b)(6) of
the Water Resources Development Act of 2000 is repealed.
SEC. 116. PENN MINE, CALAVERAS COUNTY, CALIFORNIA. (a)
IN GENERAL.—The Secretary of the Army shall reimburse East
Bay Municipal Water District for the project for aquatic ecosystem
restoration, Penn Mine, Calaveras County, California, carried out
under section 206 of the Water Resources Development Act of
1996 (33 U.S.C. 2330), $4,100,000 for the Federal share of costs
incurred by East Bay Municipal Utility District for work carried
out by East Bay Municipal Utility District for the project. Such
amounts shall be made available within 90 days of enactment
of this provision.
(b) SOURCE OF FUNDING.—Reimbursement under subsection (a)
shall be from amounts appropriated before the date of enactment
of this Act for the project described in subsection (a).
SEC. 117. The project for flood control, Greers Ferry Lake,
Arkansas, authorized by the Rivers and Harbors Act of June 28,
1938 (52 Stat. 1218), is modified to authorize the Secretary of
the Army to construct intake facilities for the benefit of Lonoke
and White Counties, Arkansas.
SEC. 118. The project for flood control, Chehalis River and
Tributaries, Washington, authorized by section 401(a) of the Water
Resources Development Act of 1986 (100 Stat. 4126), is modified
to authorize the Secretary of the Army to provide the non-Federal
interest credit toward the non-Federal share of the cost of the
project the cost of planning, design, and construction work carried
out by the non-Federal interest before the date of execution of
a cooperation agreement for the project if the Secretary determines
that the work is integral to the project.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–229
SEC. 119. Within the funds appropriated to the National Park
Service under the heading ‘‘Operation of the National Park System’’
in Public Law 106–291, the Secretary of the Interior shall provide
a grant of $75,000 to the City of Ocean Beach, New York, for
repair of facilities at the Ocean Beach Pavilion at Fire Island
National Seashore.
SEC. 120. The National Park Service is directed to work with
Fort Sumter Tours, Inc., the concessionaire currently providing
services at Fort Sumter National Monument in South Carolina,
on an amicable solution of the current legal dispute between the
two parties. The Director of the Service is directed to extend immediately the current contract through March 15, 2001, to facilitate
further negotiations and for 180 days if final settlement of all
disputes is agreed to by both parties.
SEC. 121. Title VIII—Land Conservation, Preservation, and
Infrastructure Improvement of Public Law 106–291 is amended
as follows: after the first dollar amount insert: ‘‘, to be derived
from the Land and Water Conservation Fund’’.
SEC. 122. GAS TO LIQUIDS. Section 301(2) of the Energy Policy
Act of 1992 (Public Law 102–486; 42 U.S.C. 13211(2)) is amended
by inserting ‘‘, including liquid fuels domestically produced from
natural gas’’ after ‘‘natural gas’’.
SEC. 124. APPALACHIAN NATIONAL SCENIC TRAIL. (a) ACQUISITIONS.—
(1) IN GENERAL.—The Secretary of the Interior shall—
(A) negotiate agreements with landowners setting
terms and conditions for the acquisition of parcels of land
and interests in land totaling approximately 580 acres at
Saddleback Mountain near Rangeley, Maine, for the benefit
of the Appalachian National Scenic Trail;
(B) complete the pending environmental compliance
process for the acquisitions; and
(C) acquire the parcels of land and interests in land
for consideration in the amount of $4,000,000 plus closing
costs customarily paid by the United States.
(2) ACCEPTANCE OF DONATIONS.—The Secretary may accept
as donations parcels of land and interests in land at Saddleback
Mountain, in addition to those acquired by purchase under
paragraph (1), for the benefit of the Appalachian National
Scenic Trail.
(b) CONVEYANCE TO THE STATE.—The Secretary shall convey
to the State of Maine a portion of the land and interests in land
acquired under subsection (a) without consideration, subject to such
terms and conditions as the Secretary and the State of Maine
agree are necessary to ensure the protection of the Appalachian
National Scenic Trail.
SEC. 125. The provisions of S. 2273, as passed in the United
States Senate on October 5, 2000 and engrossed, are hereby enacted
into law.
SEC. 126. Section 116(a)(1)(A) of the Illinois and Michigan
Canal National Heritage Corridor Act of 1984 (98 Stat. 1467) is
amended by striking ‘‘$250,000’’ and inserting ‘‘$1,000,000’’.
SEC. 127. The provisions of S. 2885, as passed in the United
States Senate on October 5, 2000 and engrossed, are hereby enacted
into law.
SEC. 128. None of the funds provided in this or any other
Act may be used prior to July 31, 2001, to promulgate or enforce
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114 STAT. 2763A–230
PUBLIC LAW 106–554—APPENDIX D
a final rule to reduce during the 2000–2001 or 2001–2002 winter
seasons the use of snowmobiles below current use patterns at
a unit in the National Park System: Provided, That nothing in
this section shall be interpreted as amending any requirement
of the Clean Air Act: Provided further, That nothing in this section
shall preclude the Secretary from taking emergency actions related
to snowmobile use in any National Park based on authorities which
existed to permit such emergency actions as of the date of enactment
of this Act.
SEC. 129. The Secretary of the Interior shall extend until March
31, 2001, the ‘‘Extension of Standstill Agreement,’’ entered into
on November 22, 1999, by the United States of America and the
holders of interests in seven campsite leases in Biscayne Bay,
Miami-Dade County, Florida collectively known as ‘‘Stiltsville’’.
SEC. 130. The Secretary of the Interior is authorized to make
a grant of $1,300,000 to the State of Minnesota or its political
subdivision from funds available to the National Park Service under
the heading ‘‘Land Acquisition and State Assistance’’ in Public
Law 106–291 to cover the cost of acquisition of land in Lower
Phalen Creek near St. Paul, Minnesota in the Mississippi National
River and Recreation Area.
SEC. 131. Notwithstanding any provision of law or regulation,
funds appropriated in Public Law 106–291 for a cooperative agreement for management of George Washington’s Boyhood Home, Ferry
Farm, shall be transferred to the George Washington’s Fredericksburg Foundation, Inc. (formerly known as Kenmore Association,
Inc.) immediately upon signing of the cooperative agreement.
SEC. 132. During the period beginning on the date of the
enactment of this Act and ending on June 1, 2001, funds made
available to the Secretary of the Interior may not be used to
pay salaries or expenses related to the issuance of a request for
proposal related to a light rail system to service Grand Canyon
National Park.
SEC. 133. None of the funds in this or any other Act may
be used by the Secretary of the Interior to remove the five-foottall white cross located within the boundary of the Mojave National
Preserve in southern California first erected in 1934 by the Veterans
of Foreign Wars along Cima Road approximately 11 miles south
of Interstate 15.
SEC. 134. Section 6(g) of the Chesapeake and Ohio Canal
Development Act (16 U.S.C. 410y–4(g)) is amended by striking
‘‘thirty’’ and inserting ‘‘40’’.
SEC. 135. Funds provided in Public Law 106–291 for Federal
land acquisition by the National Park Service in Fiscal Year 2001
for Brandywine Battlefield, Ice Age National Scenic Trail, Mississippi National River and Recreation Area, Shenandoah National
Heritage Area, Fallen Timbers Battlefield and Fort Miamis National
Historic Site may be used for a grant to a State, local government,
or to a land management entity for the acquisition of lands without
regard to any restriction on the use of Federal land acquisition
funds provided through the Land and Water Conservation Act
of 1965.
SEC. 136. Notwithstanding any other provision of law, in accordance with title IV—Wildland Fire Emergency Appropriations, Public
Law 106–291, from the $35,000,000 provided for community and
private land fire assistance, the Secretary of Agriculture, may use
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–231
up to $9,000,000 for advance, direct lump sum payments for assistance to eligible individuals, businesses, or other entities, to accomplish the purposes of providing assistance to non-Federal entities
most affected by fire. To expedite such financial assistance being
provided to eligible recipients, the lump sum payments shall not
be subject to 7 CFR 3015, 3019, and 3052 related to the administration of Federal financial assistance.
SEC. 137. (a) IN GENERAL.—The first section of Public Law
91–660 (16 U.S.C. 459h) is amended—
(1) in the first sentence, by striking ‘‘That, in’’ and inserting
the following:
‘‘SECTION 1. GULF ISLANDS NATIONAL SEASHORE.
‘‘(a) ESTABLISHMENT.—In’’; and
(2) in the second sentence—
(A) by redesignating paragraphs (1) through (6) as
subparagraphs (A) through (F), respectively, and indenting
appropriately;
(B) by striking ‘‘The seashore shall comprise’’ and
inserting the following:
‘‘(b) COMPOSITION.—
‘‘(1) IN GENERAL.—The seashore shall comprise the areas
described in paragraphs (2) and (3).
‘‘(2) AREAS INCLUDED IN BOUNDARY PLAN NUMBERED NS–
GI–7100J.—The areas described in this paragraph are’’: and
(C) by adding at the end the following:
‘‘(3) CAT ISLAND.—Upon its acquisition by the Secretary,
the area described in this paragraph is the parcel consisting
of approximately 2,000 acres of land on Cat Island, Mississippi,
as generally depicted on the map entitled ‘Boundary Map,
Gulf Islands National Seashore, Cat Island, Mississippi’, numbered 635/80085, and dated November 9, 1999 (referred to
in this title as the ‘Cat Island Map’).
‘‘(4) AVAILABILITY OF MAP.—The Cat Island Map shall be
on file and available for public inspection in the appropriate
offices of the National Park Service.’’.
(b) ACQUISITION AUTHORITY.—Section 2 of Public Law 91–660
(16 U.S.C. 459h–1) is amended—
(1) in the first sentence of subsection (a), by striking
‘‘lands,’’ and inserting ‘‘submerged land, land,’’; and
(2) by adding at the end the following:
‘‘(e) ACQUISITION AUTHORITY.—
‘‘(1) IN GENERAL.—The Secretary may acquire, from a willing seller only—
‘‘(A) all land comprising the parcel described in subsection (b)(3) that is above the mean line of ordinary high
tide, lying and being situated in Harrison County, Mississippi;
‘‘(B) an easement over the approximately 150-acre parcel depicted as the ‘Boddie Family Tract’ on the Cat Island
Map for the purpose of implementing an agreement with
the owners of the parcel concerning the development and
use of the parcel; and
‘‘(C)(i) land and interests in land on Cat Island outside
the 2,000-acre area depicted on the Cat Island Map; and
‘‘(ii) submerged land that lies within 1 mile seaward
of Cat Island (referred to in this title as the ‘buffer zone’),
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114 STAT. 2763A–232
PUBLIC LAW 106–554—APPENDIX D
except that submerged land owned by the State of Mississippi (or a subdivision of the State) may be acquired
only by donation.
‘‘(2) ADMINISTRATION.—
‘‘(A) IN GENERAL.—Land and interests in land acquired
under this subsection shall be administered by the Secretary, acting through the Director of the National Park
Service.
‘‘(B) BUFFER ZONE.—Nothing in this title or any other
provision of law shall require the State of Mississippi to
convey to the Secretary any right, title, or interest in
or to the buffer zone as a condition for the establishment
of the buffer zone.
‘‘(3) MODIFICATION OF BOUNDARY.—The boundary of the
seashore shall be modified to reflect the acquisition of land
under this subsection only after completion of the acquisition.’’.
(c) REGULATION OF FISHING.—Section 3 of Public Law 91–660
(16 U.S.C. 459h–2) is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘The Secretary’’;
and
(2) by adding at the end the following:
‘‘(b) NO AUTHORITY TO REGULATE MARITIME ACTIVITIES.—Nothing in this title or any other provision of law shall affect any
right of the State of Mississippi, or give the Secretary any authority,
to regulate maritime activities, including nonseashore fishing activities (including shrimping), in any area that, on the date of enactment of this subsection, is outside the designated boundary of
the seashore (including the buffer zone).’’.
(d) AUTHORIZATION OF MANAGEMENT AGREEMENTS.—Section 5
of Public Law 91–660 (16 U.S.C. 459h–4) is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘Except’’; and
(2) by adding at the end the following:
‘‘(b) AGREEMENTS.—
‘‘(1) IN GENERAL.—The Secretary may enter into
agreements—
‘‘(A) with the State of Mississippi for the purposes
of managing resources and providing law enforcement
assistance, subject to authorization by State law, and emergency services on or within any land on Cat Island and
any water and submerged land within the buffer zone;
and
‘‘(B) with the owners of the approximately 150-acre
parcel depicted as the ‘Boddie Family Tract’ on the Cat
Island Map concerning the development and use of the
land.
‘‘(2) NO AUTHORITY TO ENFORCE CERTAIN REGULATIONS.—
Nothing in this subsection authorizes the Secretary to enforce
Federal regulations outside the land area within the designated
boundary of the seashore.’’.
(e) AUTHORIZATION OF APPROPRIATIONS.—Section 11 of Public
Law 91–660 (16 U.S.C. 459h–10) is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘There’’; and
(2) by adding at the end the following:
‘‘(b) AUTHORIZATION FOR ACQUISITION OF LAND.—In addition
to the funds authorized by subsection (a), there are authorized
to be appropriated such sums as are necessary to acquire land
and submerged land on and adjacent to Cat Island, Mississippi.’’.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–233
SEC. 138. PERCENTAGE LIMITATIONS ON FEDERAL THRIFT SAVPLAN CONTRIBUTIONS. (a) AMENDMENTS RELATING TO FERS.—
(1) IN GENERAL.—Subsection (a) of section 8432 of title
5, United States Code, is amended—
(A) by striking ‘‘(a)’’ and inserting ‘‘(a)(1)’’;
(B) by striking ‘‘10 percent’’ and all that follows through
‘‘period.’’ and inserting ‘‘the maximum percentage of such
employee’s or Member’s basic pay for such pay period allowable under paragraph (2).’’; and
(C) by adding at the end the following:
‘‘(2) The maximum percentage allowable under this paragraph
shall be determined in accordance with the following table:
INGS
‘‘In the case of a pay period beginning in fiscal year:
2001
2002
2003
2004
2005
2006
The maximum
percentage
allowable is:
.................................................................................................................. 11
.................................................................................................................. 12
.................................................................................................................. 13
.................................................................................................................. 14
.................................................................................................................. 15
or thereafter ........................................................................................... 100.’’.
(2) JUSTICES AND JUDGES.—Paragraph (2) of section
8440a(b) of title 5, United States Code, is amended to read
as follows:
‘‘(2) The amount contributed by a justice or judge for any
pay period shall not exceed the maximum percentage of such justice’s or judge’s basic pay for such pay period allowable under
section 8440f.’’.
(3) BANKRUPTCY JUDGES AND MAGISTRATES.—Paragraph (2)
of section 8440b(b) of title 5, United States Code, is amended
by striking ‘‘5 percent’’ and all that follows through ‘‘period.’’
and inserting ‘‘the maximum percentage of such bankruptcy
judge’s or magistrate’s basic pay for such pay period allowable
under section 8440f.’’.
(4) COURT OF FEDERAL CLAIMS JUDGES.—Paragraph (2) of
section 8440c(b) of title 5, United States Code, is amended
by striking ‘‘5 percent’’ and all that follows through ‘‘period.’’
and inserting ‘‘the maximum percentage of such judge’s basic
pay for such pay period allowable under section 8440f.’’.
(5) JUDGES OF THE UNITED STATES COURT OF APPEALS FOR
VETERANS CLAIMS.—The first sentence of section 8440d(b)(2)
of title 5, United States Code, is amended to read as follows:
‘‘The amount contributed by a judge of the United States Court
of Appeals for Veterans Claims for any pay period may not
exceed the maximum percentage of such judge’s basic pay for
such pay period allowable under section 8440f.’’.
(6) MEMBERS OF THE UNIFORMED SERVICES.—
(A) BASIC PAY.—Subparagraph (A) of section
8440e(d)(1) of title 5, United States Code, is amended by
striking ‘‘5 percent’’ and all that follows through ‘‘period.’’
and inserting ‘‘the maximum percentage of such member’s
basic pay for such pay period allowable under section
8440f.’’.
(B) COMPENSATION.—Subparagraph (B) of section
8440e(d)(1) of title 5, United States Code, is amended by
striking ‘‘5 percent’’ and all that follows through ‘‘period.’’
and inserting ‘‘the maximum percentage of such member’s
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114 STAT. 2763A–234
PUBLIC LAW 106–554—APPENDIX D
compensation for such pay period (received under such
section 206) allowable under section 8440f.’’.
(7) MAXIMUM PERCENTAGE ALLOWABLE.—
(A) IN GENERAL.—Title 5, United States Code, is
amended by inserting after section 8440e the following:
‘‘§ 8440f. Maximum percentage allowable for certain participants
‘‘The maximum percentage allowable under this section shall
be determined in accordance with the following table:
‘‘In the case of a pay period beginning in fiscal year:
2001
2002
2003
2004
2005
2006
The maximum
percentage
allowable is:
..................................................................................................................
6
..................................................................................................................
7
..................................................................................................................
8
..................................................................................................................
9
.................................................................................................................. 10
or thereafter ........................................................................................... 100.’’.
(B) CONFORMING AMENDMENT.—The table of sections
for chapter 84 of title 5, United States Code, is amended
by inserting after the item relating to section 8440e the
following:
‘‘8440f. Maximum percentage allowable for certain participants.’’.
(b) AMENDMENTS RELATING TO CSRS.—Paragraph (2) of section
8351(b) of title 5, United States Code, is amended—
(1) by striking ‘‘(2)’’ and inserting ‘‘(2)(A)’’;
(2) by striking ‘‘5 percent’’ and all that follows through
‘‘period.’’ and inserting ‘‘the maximum percentage of such
employee’s or Member’s basic pay for such pay period allowable
under subparagraph (B).’’; and
(3) by adding at the end the following:
‘‘(B) The maximum percentage allowable under this subparagraph shall be determined in accordance with the following table:
‘‘In the case of a pay period beginning in fiscal year:
2001
2002
2003
2004
2005
2006
The maximum
percentage
allowable is:
..................................................................................................................
6
..................................................................................................................
7
..................................................................................................................
8
..................................................................................................................
9
.................................................................................................................. 10
or thereafter ........................................................................................... 100.’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by this section
shall take effect on the date of enactment of this Act.
(2) COORDINATION WITH ELECTION PERIODS.—The Executive
Director shall by regulation determine the first election period
in which elections may be made consistent with the amendments made by this section.
(3) DEFINITIONS.—For purposes of this section—
(A) the term ‘‘election period’’ means a period afforded
under section 8432(b) of title 5, United States Code; and
(B) the term ‘‘Executive Director’’ has the meaning
given such term by section 8401(13) of title 5, United
States Code.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–235
SEC. 139. EXCLUSION OF ELEMENTS OF UNITED STATES SECRET
SERVICE FROM CERTAIN ACTIVITIES. Section 7103(a)(3) of title 5,
United States Code, is amended—
(1) in subparagraph (F), by striking ‘‘or’’ at the end;
(2) in subparagraph (G), by striking the period and inserting ‘‘; or’’; and
(3) by adding at the end the following new subparagraph:
‘‘(H) the United States Secret Service and the United
States Secret Service Uniformed Division.’’.
SEC. 140. (a) The adjustment in rates of basic pay for the
statutory pay systems that takes effect in fiscal year 2001 under
sections 5303 and 5304 of title 5, United States Code, shall be
an increase of 3.7 percent.
(b) Funds used to carry out this section shall be paid from
appropriations which are made to each applicable department or
agency for salaries and expenses for fiscal year 2001.
SEC. 141. REPEAL OF MANDATORY SEPARATION REQUIREMENT.
(a) IN GENERAL.—Section 8335 of title 5, United States Code, is
amended—
(1) by striking subsection (c); and
(2) by redesignating subsections (d) and (e) as subsections
(c) and (d), respectively.
(b) TECHNICAL AND CONFORMING AMENDMENT.—Section 8339(q)
of title 5, United States Code, is amended by striking ‘‘8335(d)’’
and inserting ‘‘8335(c)’’.
SEC. 142. Section 223(a)(14) of the Juvenile Justice and Delinquency Prevention Act of 1974 (42 U.S.C. 5633(a)(14) as amended,
is hereby amended by inserting after the phrase ‘‘twenty-four hours’’
the following new phrase: ‘‘(except in the case of Alaska where
such time limit may be forty-eight hours in fiscal years 2000 through
2002)’’.
SEC. 143. (a) Section 336 of the Communications Act of 1934
(47 U.S.C. 336) is amended—
(1) by redesignating subsection (h) as subsection (i); and
(2) by inserting after subsection (g) the following:
‘‘(h)(1) Within 60 days after receiving a request (made in such
form and manner and containing such information as the Commission may require) under this subsection from a low-power television
station to which this subsection applies, the Commission shall
authorize the licensee or permittee of that station to provide digital
data service subject to the requirements of this subsection as a
pilot project to demonstrate the feasibility of using low-power television stations to provide high-speed wireless digital data service,
including Internet access to unserved areas.
‘‘(2) The low-power television stations to which this subsection applies are as follows:
‘‘(A) KHLM–LP, Houston, Texas.
‘‘(B) WTAM–LP, Tampa, Florida.
‘‘(C) WWRJ–LP, Jacksonville, Florida.
‘‘(D) WVBG–LP, Albany, New York.
‘‘(E) KHHI–LP, Honolulu, Hawaii.
‘‘(F) KPHE–LP (K19DD), Phoenix, Arizona.
‘‘(G) K34FI, Bozeman, Montana.
‘‘(H) K65GZ, Bozeman, Montana.
‘‘(I) WXOB–LP, Richmond, Virginia.
‘‘(J) WIIW–LP, Nashville, Tennessee.
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114 STAT. 2763A–236
PUBLIC LAW 106–554—APPENDIX D
‘‘(K) A station and repeaters to be determined by the
Federal Communications Commission for the sole purpose
of providing service to communities in the Kenai Peninsula
Borough and Matanuska Susitna Borough.
‘‘(L) WSPY–LP, Plano, Illinois.
‘‘(M) W24AJ, Aurora, Illinois.
‘‘(3) Notwithstanding any requirement of section 553 of
title 5, United States Code, the Commission shall promulgate
regulations establishing the procedures, consistent with the
requirements of paragraphs (4) and (5), governing the pilot
projects for the provision of digital data services by certain
low power television licensees within 120 days after the date
of enactment of LPTV Digital Data Services Act. The regulations shall set forth—
‘‘(A) requirements as to the form, manner, and information required for submitting requests to the Commission
to provide digital data service as a pilot project;
‘‘(B) procedures for testing interference to digital television receivers caused by any pilot project station or
remote transmitter;
‘‘(C) procedures for terminating any pilot project station
or remote transmitter or both that causes interference to
any analog or digital full-power television stations, class
A television station, television translators or any other
users of the core television band;
‘‘(D) specifications for reports to be filed quarterly by
each low power television licensee participating in a pilot
project;
‘‘(E) procedures by which a low power television
licensee participating in a pilot project shall notify television broadcast stations in the same market upon
commencement of digital data services and for ongoing
coordination with local broadcasters during the test period;
and
‘‘(F) procedures for the receipt and review of interference complaints on an expedited basis consistent with
paragraph (5)(D).
‘‘(4) A low-power television station to which this subsection
applies may not provide digital data service unless—
‘‘(A) the provision of that service, including any remote
return-path transmission in the case of 2-way digital data
service, does not cause any interference in violation of
the Commission’s existing rules, regarding interference
caused by low power television stations to full-service analog or digital television stations, class A television stations,
or television translator stations; and
‘‘(B) the station complies with the Commission’s regulations governing safety, environmental, and sound engineering practices, and any other Commission regulation under
paragraph (3) governing pilot program operations.
‘‘(5)(A) The Commission may limit the provision of digital
data service by a low-power television station to which this
subsection applies if the Commission finds that—
‘‘(i) the provision of 2-way digital data service by that
station causes any interference that cannot otherwise be
remedied; or
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–237
‘‘(ii) the provision of 1-way digital data service by that
station causes any interference.
‘‘(B) The Commission shall grant any such station, upon
application (made in such form and manner and containing
such information as the Commission may require) by the
licensee or permittee of that station, authority to move the
station to another location, to modify its facilities to operate
on a different channel, or to use booster or auxiliary transmitting locations, if the grant of authority will not cause interference to the allowable or protected service areas of full service
digital television stations, National Television Standards
Committee assignments, or television translator stations, and
provided, however, no such authority shall be granted unless
it is consistent with existing Commission regulations relating
to the movement, modification, and use of non-class A low
power television transmission facilities in order—
‘‘(i) to operate within television channels 2 through
51, inclusive; or
‘‘(ii) to demonstrate the utility of low-power television
stations to provide high-speed 2-way wireless digital data
service.
‘‘(C) The Commission shall require quarterly reports from
each station authorized to provide digital data services under
this subsection that include—
‘‘(i) information on the station’s experience with interference complaints and the resolution thereof;
‘‘(ii) information on the station’s market success in
providing digital data service; and
‘‘(iii) such other information as the Commission may
require in order to administer this subsection.
‘‘(D) The Commission shall resolve any complaints of interference with television reception caused by any station providing digital data service authorized under this subsection within
60 days after the complaint is received by the Commission.
‘‘(6) The Commission shall assess and collect from any
low-power television station authorized to provide digital data
service under this subsection an annual fee or other schedule
or method of payment comparable to any fee imposed under
the authority of this Act on providers of similar services.
Amounts received by the Commission under this paragraph
may be retained by the Commission as an offsetting collection
to the extent necessary to cover the costs of developing and
implementing the pilot program authorized by this subsection,
and regulating and supervising the provision of digital data
service by low-power television stations under this subsection.
Amounts received by the Commission under this paragraph
in excess of any amount retained under the preceding sentence
shall be deposited in the Treasury in accordance with chapter
33 of title 31, United States Code.
‘‘(7) In this subsection, the term ‘digital data service’
includes—
‘‘(A) digitally-based interactive broadcast service; and
‘‘(B) wireless Internet access, without regard to—
‘‘(i) whether such access is—
‘‘(I) provided on a one-way or a two-way basis;
‘‘(II) portable or fixed; or
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114 STAT. 2763A–238
PUBLIC LAW 106–554—APPENDIX D
‘‘(III) connected to the Internet via a band
allocated to Interactive Video and Data Service;
and
‘‘(ii) the technology employed in delivering such
service, including the delivery of such service via multiple transmitters at multiple locations.
‘‘(8) Nothing in this subsection limits the authority of the
Commission under any other provision of law.’’.
(b) The Federal Communications Commission shall submit a
report to the Congress on June 30, 2001, and June 30, 2002,
evaluating the utility of using low-power television stations to provide high-speed digital data service. The reports shall be based
on the pilot projects authorized by section 336(h) of the Communications Act of 1934 (47 U.S.C. 336(h)).
SEC. 144. (a) The Magnuson-Stevens Fishery Conservation and
Management Act (16 U.S.C. 1801 et. seq.) is amended—
(1) in section 303(d)(1)(A) by striking ‘‘October 1, 2000,’’
and inserting ‘‘October 1, 2002,’’;
(2) in section 303(d)(5) by striking ‘‘October 1, 2000,’’ and
inserting ‘‘October 1, 2002,’’;
(3) in section 407(b) by striking ‘‘October 1, 2000,’’ and
inserting ‘‘October 1, 2002,’’; and
(4) in section 407(c)(1) by striking ‘‘October 1, 2000,’’ and
inserting ‘‘October 1, 2002,’’.
(b) Notwithstanding sections 303(d)(1)(A) and 303(d)(1)(B) of
the Magnuson-Stevens Fishery Conservation and Management Act,
as amended by this section, the Pacific Fishery Management Council
may recommend and the Secretary of Commerce may approve and
implement any fishery management plan, plan amendment, or regulation, for fixed gear sablefish subject to the jurisdiction of such
Council, that—
(1) allows the use of more than one groundfish fishing
permit by each fishing vessel; and/or
(2) sets cumulative trip limit periods, up to 12 months
in any calendar year, that allow fishing vessels a reasonable
opportunity to harvest the full amount of the associated trip
limits.
Notwithstanding subsection (a), the Gulf of Mexico Fishery Management Council may develop a biological, economic, and social profile
of any fishery under its jurisdiction that may be considered for
management under a quota management system, including the
benefits and consequences of the quota management systems considered. The North Pacific Fishery Management Council shall examine
the fisheries under its jurisdiction, particularly the Gulf of Alaska
groundfish and Bering Sea crab fisheries, to determine whether
rationalization is needed. In particular, the North Pacific Council
shall analyze individual fishing quotas, processor quotas, cooperatives, and quotas held by communities. The analysis should include
an economic analysis of the impact of all options on communities
and processors as well as the fishing fleets. The North Pacific
Council shall present its analysis to the appropriations and
authorizing committees of the Senate and House of Representatives
in a timely manner.
(c)(1) Public Law 101–380, as amended by section 2204 of
chapter 2 of title II of Public Law 106–246, is amended further—
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–239
(A) by striking the second sentence of section 5008(c) and
inserting in lieu thereof ‘‘The Federal Advisory Committee Act
(5 U.S.C. App. 2) shall not apply to the Institute.’’;
(B) by inserting the following sentence at the end of section
5008(e): ‘‘The administrative funds of the Institute and the
administrative funds of the North Pacific Research Board created under Public Law 105–83 may be used to jointly administer such programs at the discretion of the North Pacific
Research Board.’’; and
(C) in section 5006(c), as amended by this Act or any
other Act making appropriations for fiscal year 2001, by striking
the colon immediately before the first proviso and inserting
in lieu thereof, ‘‘of which up to $3,000,000 may be used for
the lease payment to the Alaska SeaLife Center under section
5008(b)(2):’’.
(2) Section 401(e) of Public Law 105–83 is amended—
(A) in paragraph (2) by striking ‘‘and recommended for
Secretarial approval’’;
(B) in paragraph (3)(A) by striking ‘‘, who shall be a cochair of the Board’’;
(C) in paragraph (3)(F) by striking ‘‘, who shall be a cochair of the Board’’;
(D) in paragraph (4)(A) by striking ‘‘and administer’’;
(E) in paragraph (4)(B) by striking the first sentence;
(F) by adding at the end the following new paragraph:
‘‘(5) All decisions of the Board, including grant recommendations, shall be by majority vote of the members listed
in paragraphs (3)(A), (3)(F), (3)(G), (3)(J), and (3)(N), in consultation with the other members. The five voting members
may act on behalf of the Board in all matters of administration,
including the disposition of research funds not made available
by this section, at any time on or after October 1, 2000.’’;
and
(G) in paragraph (3) by adding at the end the following:
‘‘(N) one member who shall represent fishing interests
and shall be nominated by the Board and appointed by
the Secretary.’’.
(3) Funds made available for the construction of the NOAA
laboratory at Lena Point shall be considered incremental funding
for the initial phase of construction at Lena Point for site work
and related infrastructure and systems installation.
(4) Notwithstanding any other provision of law, funds made
available by this Act or any other Act for the Alaska SeaLife
Center shall be considered direct payments for all purposes of
applicable law.
(5) Public Law 99–5 is amended—
(A) by inserting after section 3(e) the following:
‘‘(f) The United States shall be represented on the
Transboundary Panel by seven panel members, of whom—
‘‘(1) one shall be an official of the United States Government, with salmon fishery management responsibility and
expertise;
‘‘(2) one shall be an official of the State of Alaska, with
salmon fishery management responsibility and expertise; and
‘‘(3) five shall be individuals knowledgeable and experienced in the salmon fisheries for which the Transboundary
Panel is responsible.’’;
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114 STAT. 2763A–240
PUBLIC LAW 106–554—APPENDIX D
(B) by renumbering the remaining subsections;
(C) in section 3(g), as redesignated by this subsection,
by striking ‘‘The appointing authorities’’ and inserting in lieu
thereof ‘‘For the northern, southern, and Fraser River panels,
the appointing authorities’’; and
(D) in section 3(h)(3), as redesignated by this subsection,
by striking ‘‘northern and southern’’ and inserting in lieu
thereof ‘‘northern, southern, and transboundary’’.
(6) The fishery research vessel for which funds were appropriated in Public Law 106–113 shall be homeported in Kodiak,
Alaska, and is hereby named ‘‘OSCAR DYSON’’.
(d)(1) The Secretary of Commerce (hereinafter ‘‘the Secretary’’)
shall, after notice and opportunity for public comment, adopt final
regulations not later than May 1, 2001 to implement a fishing
capacity reduction program for crab fisheries included in the Fishery
Management Plan for Commercial King and Tanner Crab Fisheries
in the Bering Sea and Aleutian Islands (hereinafter ‘‘BSAI crab
fisheries’’). In implementing the program the Secretary shall—
(A) reduce the fishing capacity in the BSAI crab fisheries
by permanently reducing the number of license limitation program crab licenses;
(B) permanently revoke all fishery licenses, fishery permits,
area and species endorsements, and any other fishery privileges, for all fisheries subject to the jurisdiction of the United
States, issued to a vessel or vessels (or to persons on the
basis of their operation or ownership of that vessel or vessels)
for which a BSAI crab fisheries reduction permit is surrendered
and revoked under section 6011(b) of title 50, Code of Federal
Regulations;
(C) ensure that the Secretary of Transportation is notified
of each vessel for which a reduction permit is surrendered
and revoked under the program, with a request that such
Secretary permanently revoke the fishery endorsement of each
such vessel and refuse permission to transfer any such vessel
to a foreign flag under paragraph (5);
(D) ensure that vessels removed from the BSAI crab fisheries under the program are made permanently ineligible to
participate in any fishery worldwide, and that the owners of
such vessels contractually agree that such vessels will operate
only under the United States flag or be scrapped as a reduction
vessel pursuant to section 600.1011(c) of title 50, Code of Federal Regulations;
(E) ensure that vessels removed from the BSAI crab fisheries, the owners of such vessels, and the holders of fishery
permits for such vessels forever relinquish any claim associated
with such vessel, permits, and any catch history associated
with such vessel or permits that could qualify such vessel,
vessel owner, or permit holder for any present or future limited
access system fishing permits in the United States fisheries
based on such vessel, permits, or catch history;
(F) not include the purchase of Norton Sound red king
crab or Norton Sound blue king crab endorsements in the
program, though any such endorsements associated with a
reduction permit or vessel made ineligible or scrapped under
the program shall also be surrendered and revoked as if surrendered and revoked pursuant to section 600.1011(b) of title 50,
Code of Federal Regulations;
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–241
(G) seek to obtain the maximum sustained reduction in
fishing capacity at the least cost by establishing bidding procedures that—
(i) assign a bid score to each bid by dividing the price
bid for each reduction permit by the total value of the
crab landed in the most recent 5-year period in each crab
fishery from 1990 through 1999 under that permit, with
the value for each year determined by multiplying the
average price per pound published by the State of Alaska
in each year for each crab fishery included in such reduction
permit by the total pounds landed in each crab fishery
under that permit in that year; and
(ii) use a reverse auction in which the lowest bid score
ranks first, followed by each bid with the next lowest
bid score, until the total bid amount of all bids equals
a reduction cost that the next lowest bid would cause
to exceed $100,000,000;
(H) not waive or otherwise make inapplicable any requirements of the License Limitation Program applicable to such
crab fisheries, in particular any requirements in sections
679.4(k) and (l) of title 50, Code of Federal Regulations;
(I) not waive or otherwise make inapplicable any catcher
vessel sideboards implemented under the American Fisheries
Act (AFA), except that the North Pacific Fishery Management
Council shall recommend to the Secretary and to the State
of Alaska, not later than February 16, 2001, and the Secretary
and the State of Alaska shall implement as appropriate, modifications to such sideboards to the extent necessary to permit
AFA catcher vessels that remain in the crab fisheries to share
proportionately in any increase in crab harvest opportunities
that accrue to all remaining AFA and non-AFA catcher vessels
if the fishing capacity reduction program required by this section is implemented;
(J) establish sub-amounts and repayment fees for each
BSAI crab fishery prosecuted under a separate endorsement
for repayment of the reduction loan, such that—
(i) a reduction loan sub-amount is established for each
separate BSAI crab fishery (other than Norton Sound red
king crab or Norton Sound blue king crab) by dividing
the total value of the crab landed in that fishery under
all reduction permits by the total value of all crab landed
under such permits in the BSAI crab fisheries (determined
using the same average prices and years used under
subparagraph (G)(i) of this paragraph), and multiplying
the reduction loan amount by the percentage expressed
by such ratio; and
(ii) fish sellers who participate in the crab fishery
under each endorsement repay the reduction loan subamount attributable to that fishery; and
(K) notwithstanding section 1111(b) of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1279f(b)(4)), establish a repayment period for the reduction loan of not less than 30 years.
(2)(A) Only persons to whom a non-interim BSAI crab
license and an area/species endorsement have been issued
(other than persons to whom only a license and an area/species
endorsement for Norton Sound red king crab or Norton Sound
blue king crab have been issued) for vessels that—
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114 STAT. 2763A–242
PUBLIC LAW 106–554—APPENDIX D
(i) qualify under the License Limitation Program criteria set forth in section 679.4 of title 50, Code of Federal
Regulations, and
(ii) have made at least one landing of BSAI crab in
either 1996, 1997, or prior to February 7 in 1998, may
submit a bid in the fishing capacity reduction program
established by this section.
(B) After the date of enactment of this section—
(i) no vessel 60 feet or greater in length overall may
participate in any BSAI crab fishery (other than for Norton
Sound red king crab or Norton Sound blue king crab)
unless such vessel meets the requirements set forth in
subparagraphs (A)(i) and (A)(ii) of this paragraph; and
(ii) no vessel between 33 and 60 feet in length overall
may participate in any BSAI crab fishery (other than for
Norton Sound red king crab or Norton Sound blue king
crab) unless such vessel meets the requirements set forth
in subparagraph (A)(i) of this paragraph. Nothing in this
paragraph shall be construed to affect the requirements
for participation in the fisheries for Norton Sound red
king crab or Norton Sound blue king crab. The Secretary
may, on a case by case basis and after notice and opportunity for public comment, waive the application of
subparagraph (A)(ii) of this paragraph if the Secretary
determines such waiver is necessary to implement one
of the specific exemptions to the recent participation
requirement that were recommended by the North Pacific
Fishery Management Council in the record of its October,
1998 meeting.
(3) The fishing capacity reduction program required under
this subsection shall be implemented under this subsection
and sections 312(b)–(e) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1861a(b)–(e)). Section
312 and the regulations found in Subpart L of Part 600 of
title 50, Code of Federal Regulations, shall apply only to the
extent such section or regulations are not inconsistent with
or made inapplicable by the specific provisions of this subsection. Sections 600.1001, 600.1002, 600.1003, 600.1005,
600.1010(b), 600.1010(d)(1), 600.1011(d), the last sentence of
600.1011(a), and the last sentence of 600.1014(f ) of such Subpart shall not apply to the program implemented under this
subsection. The program shall be deemed accepted under section 600.1004, and any time period specified in Subpart L
that would prevent the Secretary from complying with the
May 1, 2001 date required by this subsection shall be modified
as appropriate to permit compliance with that date. The referendum required for the program under this subsection shall
be a post-bidding referendum under section 600.1010 of title
50, Code of Federal Regulations.
(4)(A) The fishing capacity reduction program required
under this subsection is authorized to be financed in equal
parts through a reduction loan of $50,000,000 under sections
1111 and 1112 of title XI of the Merchant Marine Act, 1936
(46 U.S.C. App. 1279f and 1279g) and $50,000,000 which is
authorized to be appropriated for the purposes of such program.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–243
(B) Of the $1,000,000 appropriated in section 120 of division
A of Public Law 105–277 for the cost of a direct loan in
the Bering Sea and Aleutian Islands crab fisheries—
(i) $500,000 shall be for the cost of guaranteeing the
reduction loan required under subparagraph (A) of this
paragraph in accordance with the requirements of the Federal Credit Reform Act; and
(ii) $500,000 shall be available to the Secretary to
pay for the cost of implementing the fishing capacity reduction program required by this subsection.
(C) The funds described in this subsection shall remain
available, without fiscal year limitation, until expended. Any
funds not used for the fishing capacity reduction program
required by this subsection, whether due to a rejection by
referendum or otherwise, shall be available on or after October
15, 2002, without fiscal year limitation, for assistance to fishermen or fishing communities.
(5)(A) The Secretary of Transportation shall, upon notification and request by the Secretary, for each vessel identified
in such notification and request—
(i) permanently revoke any fishery endorsement issued
to such vessel under section 12108 of title 46, United
States Code; and
(ii) refuse to grant the approval required under section
9(c)(2) of the Shipping Act, 1916 (46 U.S.C. App. 808(c)(2))
for the placement of such vessel under foreign registry
or the operation of such vessel under the authority of
a foreign country.
(B) The Secretary shall, after notice and opportunity for
public comment, adopt final regulations not later than May
1, 2001, to prohibit any vessel for which a reduction permit
is surrendered and revoked under the fishing capacity reduction
program required by this section from engaging in fishing
activities on the high seas or under the jurisdiction of any
foreign country while operating under the United States flag.
(6) The purpose of this subsection is to implement a fishing
capacity reduction program for the BSAI crab fisheries that
results in final action to permanently remove harvesting capacity from such fisheries prior to December 31, 2001. In
implementing this subsection the Secretary is directed to use,
to the extent practicable, information collected and maintained
by the State of Alaska. Any requirements of the Paperwork
Reduction Act, the Regulatory Flexibility Act, or any Executive
order that would, in the opinion of the Secretary, prevent
the Secretary from meeting the deadlines set forth in this
subsection shall not apply to the fishing capacity reduction
program or the promulgation of regulations to implement such
program required by this subsection. Nothing in this subsection
shall be construed to prohibit the North Pacific Fishery
Management Council from recommending, or the Secretary
from approving, changes to any Fishery Management Plan,
License Limitation Program, or American Fisheries Act provisions affecting catcher vessel sideboards in accordance with
applicable law: Provided, That except as specifically provided
in this subsection, such Council may not recommend, and the
Secretary may not approve, any action that would have the
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PUBLIC LAW 106–554—APPENDIX D
effect of increasing the number of vessels eligible to participate
in the BSAI crab fisheries after March 1, 2001.
(e)(1) This subsection may be referred to as the ‘‘Pribilof Islands
Transition Act’’.
(2) The purpose of this subsection is to complete the orderly
withdrawal of the National Oceanic and Atmospheric Administration from the civil administration of the Pribilof Islands, Alaska.
(3) Public Law 89–702 (16 U.S.C. 1151 et seq.), popularly known
and referred to in this subsection as the Fur Seal Act of 1966,
is amended by amending section 206 (16 U.S.C. 1166) to read
as follows:
‘‘SEC. 206. (a)(1) Subject to the availability of appropriations,
the Secretary shall provide financial assistance to any city government, village corporation, or tribal council of St. George, Alaska,
or St. Paul, Alaska.
‘‘(2) Notwithstanding any other provision of law relating to
matching funds, funds provided by the Secretary as assistance
under this subsection may be used by the entity as non-Federal
matching funds under any Federal program that requires such
matching funds.
‘‘(3) The Secretary may not use financial assistance authorized
by this Act—
‘‘(A) to settle any debt owed to the United States;
‘‘(B) for administrative or overhead expenses; or
‘‘(C) for contributions sought or required from any person
for costs or fees to clean up any matter that was caused or
contributed to by such person on or after March 15, 2000.
‘‘(4) In providing assistance under this subsection the Secretary
shall transfer any funds appropriated to carry out this section
to the Secretary of the Interior, who shall obligate such funds
through instruments and procedures that are equivalent to the
instruments and procedures required to be used by the Bureau
of Indian Affairs pursuant to title IV of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.).
‘‘(5) In any fiscal year for which less than all of the funds
authorized under subsection (c)(1) are appropriated, such funds
shall be distributed under this subsection on a pro rata basis
among the entities referred to in subsection (c)(1) in the same
proportions in which amounts are authorized by that subsection
for grants to those entities.
‘‘(b)(1) Subject to the availability of appropriations, the Secretary shall provide assistance to the State of Alaska for designing,
locating, constructing, redeveloping, permitting, or certifying solid
waste management facilities on the Pribilof Islands to be operated
under permits issued to the City of St. George and the City of
St. Paul, Alaska, by the State of Alaska under section 46.03.100
of the Alaska Statutes.
‘‘(2) The Secretary shall transfer any appropriations received
under paragraph (1) to the State of Alaska for the benefit of rural
and Native villages in Alaska for obligation under section 303
of Public Law 104–182, except that subsection (b) of that section
shall not apply to those funds.
‘‘(3) In order to be eligible to receive financial assistance under
this subsection, not later than 180 days after the date of enactment
of this paragraph, each of the Cities of St. Paul and St. George
shall enter into a written agreement with the State of Alaska
under which such City shall identify by its legal boundaries the
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114 STAT. 2763A–245
tract or tracts of land that such City has selected as the site
for its solid waste management facility and any supporting infrastructure.
‘‘(c) There are authorized to be appropriated to the Secretary
for fiscal years 2001, 2002, 2003, 2004, and 2005—
‘‘(1) for assistance under subsection (a) a total not to
exceed—
‘‘(A) $9,000,000, for grants to the City of St. Paul;
‘‘(B) $6,300,000, for grants to the Tanadgusix Corporation;
‘‘(C) $1,500,000, for grants to the St. Paul Tribal Council;
‘‘(D) $6,000,000, for grants to the City of St. George;
‘‘(E) $4,200,000, for grants to the St. George Tanaq
Corporation; and
‘‘(F) $1,000,000, for grants to the St. George Tribal
Council; and
‘‘(2) for assistance under subsection (b), for fiscal years
2001, 2002, 2003, 2004, and 2005 a total not to exceed—
‘‘(A) $6,500,000 for the City of St. Paul; and
‘‘(B) $3,500,000 for the City of St. George.
‘‘(d) None of the funds authorized by this section may be available for any activity a purpose of which is to influence legislation
pending before the Congress, except that this subsection shall not
prevent officers or employees of the United States or of its departments, agencies, or commissions from communicating to Members
of Congress, through proper channels, requests for legislation or
appropriations that they consider necessary for the efficient conduct
of public business.
‘‘(e) Neither the United States nor any of its agencies, officers,
or employees shall have any liability under this Act or any other
law associated with or resulting from the designing, locating,
contracting for, redeveloping, permitting, certifying, operating, or
maintaining any solid waste management facility on the Pribilof
Islands as a consequence of—
‘‘(1) having provided assistance to the State of Alaska under
subsection (b); or
‘‘(2) providing funds for, or planning, constructing, or
operating, any interim solid waste management facilities that
may be required by the State of Alaska before permanent
solid waste management facilities constructed with assistance
provided under subsection (b) are complete and operational.
‘‘(f ) Each entity which receives assistance authorized under
subsection (c) shall submit an audited statement listing the expenditure of that assistance to the Committee on Appropriations and
the Committee on Resources of the House of Representatives and
the Committee on Appropriations and the Committee on Commerce,
Science, and Transportation of the Senate, on the last day of fiscal
years 2002, 2004, and 2006.
‘‘(g) Amounts authorized under subsection (c) are intended by
Congress to be provided in addition to the base funding appropriated
to the National Oceanic and Atmospheric Administration in fiscal
year 2000.’’.
(4) Section 205 of the Fur Seal Act of 1966 (16 U.S.C. 1165)
is amended—
(A) by amending subsection (c) to read as follows:
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PUBLIC LAW 106–554—APPENDIX D
‘‘(c) Not later than 3 months after the date of the enactment
of the Pribilof Islands Transition Act, the Secretary shall submit
to the Committee on Commerce, Science, and Transportation of
the Senate and the Committee on Resources of the House of Representatives a report that includes—
‘‘(1) a description of all property specified in the document
referred to in subsection (a) that has been conveyed under
that subsection;
‘‘(2) a description of all Federal property specified in the
document referred to in subsection (a) that is going to be
conveyed under that subsection; and
‘‘(3) an identification of all Federal property on the Pribilof
Islands that will be retained by the Federal Government to
meet its responsibilities under this Act, the Convention, and
any other applicable law.’’; and
(B) by striking subsection (g).
(5)(A)(i) The Secretary of Commerce shall not be considered
to have any obligation to promote or otherwise provide for the
development of any form of an economy not dependent on sealing
on the Pribilof Islands, Alaska, including any obligation under
section 206 of the Fur Seal Act of 1966 (16 U.S.C. 1166) or section
3(c)(1)(A) of Public Law 104–91 (16 U.S.C. 1165 note).
(ii) This subparagraph shall not affect any cause of action
under section 206 of the Fur Seal Act of 1966 (16 U.S.C. 1166)
or section 3(c)(1)(A) of Public Law 104–91 (16 U.S.C. 1165 note)—
(I) that arose before the date of the enactment of this
title; and
(II) for which a judicial action is filed before the expiration
of the 5-year period beginning on the date of the enactment
of this title.
(iii) Nothing in this subsection shall be construed to imply
that—
(I) any obligation to promote or otherwise provide for the
development in the Pribilof Islands of any form of an economy
not dependent on sealing was or was not established by section
206 of the Fur Seal Act of 1966 (16 U.S.C. 1166), section
3(c)(1)(A) of Public Law 104–91 (16 U.S.C. 1165 note), or any
other provision of law; or
(II) any cause of action could or could not arise with respect
to such an obligation.
(iv) Section 3(c)(1) of Public Law 104–91 (16 U.S.C. 1165 note)
is amended by striking subparagraph (A) and redesignating subparagraphs (B) through (D) in order as subparagraphs (A) through
(C).
(B)(i) Subject to paragraph (5)(B)(ii), there are terminated all
obligations of the Secretary of Commerce and the United States
to—
(I) convey property under section 205 of the Fur Seal Act
of 1966 (16 U.S.C. 1165); and
(II) carry out cleanup activities, including assessment,
response, remediation, and monitoring, except for postremedial
measures such as monitoring and operation and maintenance
activities related to National Oceanic and Atmospheric
Administration administration of the Pribilof Islands, Alaska,
under section 3 of Public Law 104–91 (16 U.S.C. 1165 note)
and the Pribilof Islands Environmental Restoration Agreement
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–247
between the National Oceanic and Atmospheric Administration
and the State of Alaska, signed January 26, 1996.
(ii) Paragraph (5)(B)(i) shall apply on and after the date on
which the Secretary of Commerce certifies that—
(I) the State of Alaska has provided written confirmation
that no further corrective action is required at the sites and
operable units covered by the Pribilof Islands Environmental
Restoration Agreement between the National Oceanic and
Atmospheric Administration and the State of Alaska, signed
January 26, 1996, with the exception of postremedial measures,
such as monitoring and operation and maintenance activities;
(II) the cleanup required under section 3(a) of Public Law
104–91 (16 U.S.C. 1165 note) is complete;
(III) the properties specified in the document referred to
in subsection (a) of section 205 of the Fur Seal Act of 1966
(16 U.S.C. 1165(a)) can be unconditionally offered for conveyance under that section; and
(IV) all amounts appropriated under section 206(c)(1) of
the Fur Seal Act of 1966, as amended by this title, have
been obligated.
(iii)(I) On and after the date on which section 3(b)(5) of Public
Law 104–91 (16 U.S.C. 1165 note) is repealed pursuant to subparagraph (C), the Secretary of Commerce may not seek or require
financial contribution by or from any local governmental entity
of the Pribilof Islands, any official of such an entity, or the owner
of land on the Pribilof Islands, for cleanup costs incurred pursuant
to section 3(a) of Public Law 104–91 (as in effect before such
repeal), except as provided in subparagraph (B)(iii)(II).
(II) Subparagraph (B)(iii)(I) shall not limit the authority
of the Secretary of Commerce to seek or require financial contribution from any person for costs or fees to clean up any
matter that was caused or contributed to by such person on
or after March 15, 2000.
(iv) For purposes of paragraph (2)(C), the following requirements shall not be considered to be conditions on conveyance of
property:
(I) Any requirement that a potential transferee must allow
the National Oceanic and Atmospheric Administration continued access to the property to conduct environmental monitoring
following remediation activities.
(II) Any requirement that a potential transferee must allow
the National Oceanic and Atmospheric Administration access
to the property to continue the operation, and eventual closure,
of treatment facilities.
(III) Any requirement that a potential transferee must
comply with institutional controls to ensure that an environmental cleanup remains protective of human health or the
environment that do not unreasonably affect the use of the
property.
(IV) Valid existing rights in the property, including rights
granted by contract, permit, right-of-way, or easement.
(V) The terms of the documents described in subparagraph
(D)(ii).
(C) Effective on the date on which the Secretary of Commerce
makes the certification described in subparagraph (b)(2), the following provisions are repealed:
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114 STAT. 2763A–248
PUBLIC LAW 106–554—APPENDIX D
(i) Section 205 of the Fur Seal Act of 1966 (16 U.S.C.
1165).
(ii) Section 3 of Public Law 104–91 (16 U.S.C. 1165 note).
(D)(i) Nothing in this subsection shall affect any obligation
of the Secretary of Commerce, or of any Federal department or
agency, under or with respect to any document described in subparagraph (D)(ii) or with respect to any lands subject to such a document.
(ii) The documents referred to in subparagraph (D)(i) are the
following:
(I) The Transfer of Property on the Pribilof Islands: Description, Terms, and Conditions, dated February 10, 1984, between
the Secretary of Commerce and various Pribilof Island entities.
(II) The Settlement Agreement between Tanadgusix Corporation and the City of St. Paul, dated January 11, 1988,
and approved by the Secretary of Commerce on February 23,
1988.
(III) The Memorandum of Understanding between
Tanadgusix Corporation, Tanaq Corporation, and the Secretary
of Commerce, dated December 22, 1976.
(E)(i) Except as provided in subparagraph (E)(ii), the definitions
set forth in section 101 of the Fur Seal Act of 1966 (16 U.S.C.
1151) shall apply to this paragraph.
(ii) For purposes of this paragraph, the term ‘‘Natives of the
Pribilof Islands’’ includes the Tanadgusix Corporation, the St.
George Tanaq Corporation, and the city governments and tribal
councils of St. Paul and St. George, Alaska.
(6)(A) Section 3 of Public Law 104–91 (16 U.S.C. 1165 note)
and the Fur Seal Act of 1966 (16 U.S.C. 1151 et seq.) are amended
by—
(i) striking ‘‘(d)’’ and all that follows through the heading
for subsection (d) of section 3 of Public Law 104–91 and inserting ‘‘SEC. 212.’’; and
(ii) moving and redesignating such subsection so as to
appear as section 212 of the Fur Seal Act of 1966.
(B) Section 201 of the Fur Seal Act of 1966 (16 U.S.C. 1161)
is amended by striking ‘‘on such Islands’’ and insert ‘‘on such
property’’.
(C) The Fur Seal Act of 1966 (16 U.S.C. 1151 et seq.) is
amended by inserting before title I the following:
‘‘SECTION 1. This Act may be cited as the ‘Fur Seal Act of
1966’.’’.
(7) Section 3 of Public Law 104–91 (16 U.S.C. 1165 note)
is amended—
(A) by striking subsection (f ) and inserting the following:
‘‘(f )(1) There are authorized to be appropriated $10,000,000
for each of fiscal years 2001, 2002, 2003, 2004, and 2005 for the
purposes of carrying out this section.
‘‘(2) None of the funds authorized by this subsection may be
expended for the purpose of cleaning up or remediating any landfills, wastes, dumps, debris, storage tanks, property, hazardous
or unsafe conditions, or contaminants, including petroleum products
and their derivatives, left by the Department of Defense or any
of its components on lands on the Pribilof Islands, Alaska.’’; and
(B) by adding at the end the following:
‘‘(g)(1) Of amounts authorized under subsection (f ) for each
of fiscal years 2001, 2002, 2003, 2004, and 2005, the Secretary
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–249
may provide to the State of Alaska up to $2,000,000 per fiscal
year to capitalize a revolving fund to be used by the State for
loans under this subsection.
‘‘(2) The Secretary shall require that any revolving fund established with amounts provided under this subsection shall be used
only to provide low-interest loans to Natives of the Pribilof Islands
to assess, respond to, remediate, and monitor contamination from
lead paint, asbestos, and petroleum from underground storage
tanks.
‘‘(3) The definitions set forth in section 101 of the Fur Seal
Act of 1966 (16 U.S.C. 1151) shall apply to this section, except
that the term ‘Natives of the Pribilof Islands’ includes the
Tanadgusix and Tanaq Corporations.
‘‘(4) Before the Secretary may provide any funds to the State
of Alaska under this section, the State of Alaska and the Secretary
must agree in writing that, on the last day of fiscal year 2011,
and of each fiscal year thereafter until the full amount provided
to the State of Alaska by the Secretary under this section has
been repaid to the United States, the State of Alaska shall transfer
to the Treasury of the United States monies remaining in the
revolving fund, including principal and interest paid into the revolving fund as repayment of loans.’’.
(f )(1) The President, after consultation with the Governor of
the State of Hawaii, may designate any Northwestern Hawaiian
Islands coral reef or coral reef ecosystem as a coral reef reserve
to be managed by the Secretary of Commerce.
(2) Upon the designation of a reserve under paragraph (1)
by the President, the Secretary shall—
(A) take action to initiate the designation of the reserve
as a National Marine Sanctuary under sections 303 and 304
of the National Marine Sanctuaries Act (16 U.S.C. 1433);
(B) establish a Northwestern Hawaiian Islands Reserve
Advisory Council under section 315 of that Act (16 U.S.C.
1445a), the membership of which shall include at least one
representative from Native Hawaiian groups; and
(C) until the reserve is designated as a National Marine
Sanctuary, manage the reserve in a manner consistent with
the purposes and policies of that Act.
(3) Notwithstanding any other provision of law, no closure
areas around the Northwestern Hawaiian Islands shall become
permanent without adequate review and comment.
(4) The Secretary shall work with other Federal agencies and
the Director of the National Science Foundation, to develop a coordinated plan to make vessels and other resources available for conservation or research activities for the reserve.
(5) If the Secretary has not designated a national marine sanctuary in the Northwestern Hawaiian Islands under sections 303
and 304 of the National Marine Sanctuaries Act (16 U.S.C. 1433,
1434) before October 1, 2005, the Secretary shall conduct a review
of the management of the reserve under section 304(e) of that
Act (16 U.S.C. 1434(e)).
(6) No later than 6 months after the date of enactment of
this Act, the Secretary shall submit a report to the Senate Committee on Commerce, Science, and Transportation and the House of
Representatives Committee on Resources, describing actions taken
to implement this subsection, including costs of monitoring, enforcing, and addressing marine debris, and the extent to which the
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114 STAT. 2763A–250
PUBLIC LAW 106–554—APPENDIX D
fiscal or other resources necessary to carry out this subsection
are reflected in the Budget of the United States Government submitted by the President under section 1104 of title 31, United States
Code.
(7) There are authorized to be appropriated to the Secretary
of Commerce to carry out the provisions of this subsection such
sums, not exceeding $4,000,000 for each of fiscal years 2001, 2002,
2003, 2004, and 2005, as are reported under paragraph (5) to
be reflected in the Budget of the United States Government.
(g) Section 111(b)(1) of the Sustainable Fisheries Act (16 U.S.C.
1855 nt) is amended by striking the last sentence and inserting,
‘‘There are authorized to be appropriated to carry out this subsection
$500,000 for each fiscal year.’’.
SEC. 145. (a) Section 4(b)(1) of the Department of State Special
Agents Retirement Act of 1998 (22 U.S.C. 4044 note; Public Law
105–382; 112 Stat. 3409) is amended by inserting ‘‘or participant
who was serving as of January 1, 1997’’ after ‘‘employed participant’’.
(b) The amendment made by this section shall take effect
on January 1, 2001.
SEC. 146. (a) Congress makes the following findings:
(1) Total steel imports in 2000 will be over 21⁄2 times
higher than in 1991, continuing the alarming trend of sharply
increasing steel imports over the past decade.
(2) Unprecedented levels of steel imports flooded the United
States market in 1998 and 1999, causing a crisis in which
thousands of steelworkers were laid off and six steel companies
went bankrupt.
(3) The domestic steel industry still has not had an opportunity to recover from the 1998–1999 steel import crisis, and
steel imports are again causing serious injury to United States
steel producers and workers.
(4) Total steel imports through August 2000 are 17 percent
higher than over the same period in 1999 and greater even
than imports over the same period in 1998, a record year.
(5) Steel prices continue to be depressed, with hot-rolled
steel prices 12 percent lower in August 2000 than in the first
quarter of 1998, and average import customs values for all
steel products more than 15 percent lower over the same period.
(6) The United States Government must maintain and
fully enforce all existing relief against foreign unfair trade.
(7) The United States steel industry is a clean, highly
efficient industry having modernized itself at great human
and financial cost, shedding over 330,000 jobs and investing
more than $50,000,000,000 over the last 20 years.
(8) Capacity utilization in the United States steel industry
has fallen sharply since the beginning of the year and the
market capitalization and debt ratings of the major United
States steel firms are at precarious levels.
(9) The Department of Commerce recently documented the
underlying market-distorting practices and longstanding structural problems that plague the global steel trade with excess
capacity and cause diversion of unfairly traded foreign steel
to the United States.
(10) The President recognized that unfair trade played
a significant role in the devastating import surge of steel and
recognized the need to vigorously enforce the trade laws.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–251
(b) Congress calls upon the President—
(1) to take all appropriate action within his power to provide relief from injury caused by steel imports; and
(2) to immediately request the United States International
Trade Commission to commence an expedited investigation for
positive adjustment under section 201 of the Trade Act of
1974 of such steel imports.
SEC. 147. Section 5(b)(1) of the Act of January 2, 1951 (15
U.S.C. 1175(b)(1); popularly known as the ‘‘Johnson Act’’) is amended by inserting ‘‘for a voyage or a segment of a voyage that begins
and ends in the State of Hawaii, or’’ after ‘‘Except’’.
SEC. 148. (a) Section 312(a)(7) of the Communications Act of
1934 (47 U.S.C. 312(a)(7)) is amended by inserting ‘‘, other than
a non-commercial educational broadcast station,’’ after ‘‘use of a
broadcasting station’’.
(b) The Federal Communications Commission shall take no
action against any non-commercial educational broadcast station
which declines to carry a political advertisement.
SEC. 149. The Small Business Innovation Research program,
otherwise expiring at the end of fiscal year 2000, is authorized
to continue in effect during fiscal year 2001.
SEC. 150. There is hereby appropriated for payment to the
Ricky Ray Hemophilia Relief Fund, as provided by Public Law
105–369, $105,000,000, of which notwithstanding any other provision of law $10,000,000 shall be for program management of the
Health Resources and Services Administration, to remain available
until expended.
SEC. 151. (a) There is hereby appropriated to a separate account
to be established in the Department of Labor for expenses of administering the Energy Employees Occupational Illness Compensation
Act, $60,400,000, to remain available until expended: Provided,
That the Secretary of Labor is authorized to transfer to any Executive agency with authority under the Energy Employees Occupational Illness Compensation Act, such sums as may be necessary
in FY 2001 to carry out those authorities.
(b) For purposes of the Balanced Budget and Emergency Deficit
Control Act of 1985, amounts appropriated under subsection (a)
shall be direct spending: Provided, That amounts appropriated
annually thereafter for such administrative expenses shall be direct
spending.
SEC. 152. TREATMENT OF CERTAIN CANCER HOSPITALS. (a) IN
GENERAL.—Section 1886(d)(1)(B)(v) of the Social Security Act (42
U.S.C. 1395ww(d)(1)(B)(v)) is amended—
(1) in subclause (I) by striking ‘‘or’’ at the end;
(2) in subclause (II) by striking the semicolon at the end
and inserting ‘‘, or’’; and
(3) by adding at the end the following:
‘‘(III) a hospital that was recognized as a clinical cancer
research center by the National Cancer Institute of the National
Institutes of Health as of February 18, 1998, that has never
been reimbursed for inpatient hospital services pursuant to
a reimbursement system under a demonstration project under
section 1814(b), that is a freestanding facility organized primarily for treatment of and research on cancer and is not
a unit of another hospital, that as of the date of the enactment
of this subclause, is licensed for 162 acute care beds, and
that demonstrates for the 4-year period ending on June 30,
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114 STAT. 2763A–252
PUBLIC LAW 106–554—APPENDIX D
1999, that at least 50 percent of its total discharges have
a principal finding of neoplastic disease, as defined in subparagraph (E);’’ and
(b) CONFORMING AMENDMENT.—Section 1886(d)(1)(E) of the
Social Security Act (42 U.S.C. 1395ww(d)(1)(E)) is amended by
striking ‘‘For purposes of subparagraph (B)(v)(II)’’ and inserting
‘‘For purposes of subclauses (II) and (III) of subparagraph (B)(v)’’.
(c) PAYMENT.—
(1) APPLICATION TO COST REPORTING PERIODS.—Any classification by reason of section 1886(d)(1)(B)(v)(III) of the Social
Security Act (as added by subsection (a)) shall apply to 12month cost reporting periods beginning on or after July 1,
1999.
(2) BASE YEAR.—Notwithstanding the provisions of section
1886(b)(3)(E) of such Act (42 U.S.C. 1395ww(b)(3)(E)) or other
provisions to the contrary, the base cost reporting period for
purposes of determining the target amount for any hospital
classified by reason of section 1886(d)(1)(B)(v)(III) of such Act
(as added by subsection (a)) shall be the 12-month cost reporting
period beginning on July 1, 1995.
(3) DEADLINE FOR PAYMENTS.—Any payments owed to a
hospital by reason of this subsection shall be made expeditiously, but in no event later than 1 year after the date of
the enactment of this Act.
SEC. 153. (a) Section 4(2) of the Delta Development Act (42
U.S.C. 3121 note; Public Law 100–460) is amended—
(1) by inserting ‘‘Alabama,’’ before ‘‘Arkansas’’;
(2) in paragraph (G), by striking ‘‘and’’ at the end;
(3) in paragraph (H)—
(A) by striking ‘‘and’’ before ‘‘such’’; and
(B) by inserting ‘‘and’’ after the semicolon at the end;
and
(4) by adding at the end the following:
‘‘(I) the Alabama counties of Pickens, Greene, Sumter,
Choctaw, Clarke, Washington, Marengo, Hale, Perry,
Wilcox, Lowndes, Bullock, Macon, Barbour, Russell, and
Dallas;’’;
(b) At the end of section 382A of ‘‘The Delta Regional Authority
Act of 2000’’ as incorporated in this Act, insert the following:
‘‘(4) Notwithstanding any other provision of law, the State
of Alabama shall be a full member of the Delta Regional Authority and shall be entitled to all rights and privileges that said
membership affords to all other participating States in the
Delta Regional Authority.’’.
SEC. 154. NORTHERN WISCONSIN.
(a) DEFINITION OF NORTHERN WISCONSIN.—In this section, the
term ‘‘northern Wisconsin’’ means the counties of Douglas, Ashland,
Bayfield, and Iron, Wisconsin.
(b) ESTABLISHMENT OF PROGRAM.—The Secretary of the Army
may establish a pilot program to provide environmental assistance
to non-Federal interests in northern Wisconsin.
(c) FORM OF ASSISTANCE.—Assistance under this section may
be in the form of design and reconstruction assistance or waterrelated environmental infrastructure and resource protection and
development projects in northern Wisconsin, including projects for
wastewater treatment and related facilities, water supply and
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–253
related facilities, environmental restoration, and surface water
resource protection and development.
(d) PUBLIC OWNERSHIP REQUIREMENT.—The Secretary may provide assistance for a project under this section only if the project
is publicly owned.
(e) LOCAL COOPERATION AGREEMENT.—
(1) IN GENERAL.—Before providing assistance under this
section, the Secretary shall enter into a local cooperation agreement with a non-Federal interest to provide for design and
construction of the project to be carried out with the assistance.
(2) REQUIREMENTS.—Each local cooperation agreement
entered into under this subsection shall provide for the following:
(A) PLAN.—Development by the Secretary, in consultation with appropriate Federal and State officials, of a facilities or restructure protection and development plan, including appropriate engineering plans and specifications.
(B) LEGAL AND INSTITUTIONAL STRUCTURES.—
Establishment of such legal and institutional structures
as are necessary to ensure the effective long-term operation
of the project by the non-Federal interest.
(3) COST SHARING.—
(A) IN GENERAL.—The Federal share of project costs
under each local cooperation agreement entered into under
this subsection shall be 75 percent. The Federal share
may be in the form of grants or reimbursements of project
costs.
(B) CREDIT FOR DESIGN WORK.—The non-Federal
interest shall receive credit for the reasonable costs of
design work completed by the non-Federal interest before
entering into a local cooperation agreement with the Secretary for a project. The credit for the design work shall
not exceed 6 percent of the local construction costs of the
project.
(C) CREDIT FOR INTEREST.—In case of a delay in the
funding of the non-Federal share of the costs of a project
that is the subject of an agreement under this subsection,
the non-Federal interest shall receive credit for reasonable
interest incurred in providing the non-Federal share of
the project’s costs.
(D) LAND, EASEMENTS, AND RIGHTS-OF-WAY CREDIT.—
The non-Federal interest shall receive credit for land, easements, rights-of-way, and reductions toward the non-Federal share of project costs (including all reasonable costs
associated with obtaining permits necessary for the
construction, operation, and maintenance of the project
on publicly owned or controlled land), but not to exceed
25 percent of the total project costs.
(E) OPERATION AND MAINTENANCE.—The non-Federal
share of operation and maintenance costs for projects constructed with assistance provided under this section shall
be 100 percent.
(f ) APPLICABILITY OF OTHER FEDERAL AND STATE LAWS.—Nothing in this section waives, limits, or otherwise affects the applicability of any provision of Federal or State law that would otherwise
apply to a project to be carried out with assistance provided under
this section.
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PUBLIC LAW 106–554—APPENDIX D
(g) REPORT.—Not later than December 31, 2001, the Secretary
shall transmit to Congress a report on the results of the pilot
program carried out under this section, including recommendations
concerning whether the program should be implemented on a
national basis.
(h) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $40,000,000. Such
sums shall remain available until expended.
TITLE II—VIETNAM EDUCATION FOUNDATION ACT OF 2000
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Vietnam Education Foundation
Act of 2000’’.
SEC. 202. PURPOSES.
The purposes of this title are the following:
(1) To establish an international fellowship program under
which—
(A) Vietnamese nationals can undertake graduate and
post-graduate level studies in the sciences (natural, physical, and environmental), mathematics, medicine, and technology (including information technology); and
(B) United States citizens can teach in the fields specified in subparagraph (A) in appropriate Vietnamese institutions.
(2) To further the process of reconciliation between the
United States and Vietnam and the building of a bilateral
relationship serving the interests of both countries.
SEC. 203. DEFINITIONS.
In this title:
(1) BOARD.—The term ‘‘Board’’ means the Board of Directors of the Foundation.
(2) FOUNDATION.—The term ‘‘Foundation’’ means the Vietnam Education Foundation established in section 204.
(3) INSTITUTION OF HIGHER EDUCATION.—The term ‘‘institution of higher education’’ has the meaning given the term
in section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)).
(4) UNITED STATES-VIETNAM DEBT AGREEMENT.—The term
‘‘United States-Vietnam debt agreement’’ means the Agreement
Between the Government of the United States of America and
the Government of the Socialist Republic of Vietnam Regarding
the Consolidation and Rescheduling of Certain Debts Owed
to, Guaranteed by, or Insured by the United States Government
and the Agency for International Development, dated April
7, 1997.
SEC. 204. ESTABLISHMENT.
There is established the Vietnam Education Foundation as
an independent establishment of the executive branch under section
104 of title 5, United States Code.
SEC. 205. BOARD OF DIRECTORS.
(a) IN GENERAL.—The Foundation shall be subject to the supervision and direction of the Board of Directors, which shall consist
of 13 members, as follows:
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114 STAT. 2763A–255
(1) Two members of the House of Representatives appointed
by the Speaker of the House of Representatives, one of whom
shall be appointed upon the recommendation of the Majority
Leader and one of whom shall be appointed upon the recommendation of the Minority Leader, and who shall serve
as ex officio, nonvoting members.
(2) Two members of the Senate, appointed by the President
pro tempore, one of whom shall be appointed upon the recommendation of the Majority Leader and one of whom shall
be appointed upon the recommendation of the Minority Leader,
and who shall serve as ex officio, nonvoting members.
(3) Secretary of State.
(4) Secretary of Education.
(5) Secretary of Treasury.
(6) Six members to be appointed by the President from
among individuals in the nongovernmental sector who have
academic excellence or experience in the fields of concentration
specified in section 202(1)(A) or a general knowledge of Vietnam, not less than three of whom shall be drawn from academic
life.
(b) ROTATION OF MEMBERSHIP.—(1) The term of office of each
member appointed under subsection (a)(6) shall be 3 years, except
that of the members initially appointed under that subsection,
two shall serve for terms of 1 year, two shall serve for terms
of 2 years, and two shall serve for terms of 3 years.
(2) A member of Congress appointed under subsection (a)(1)
or (2) shall not serve as a member of the Board for more than
a total of 6 years.
(c) CHAIR.—The Board shall elect one of the members appointed
under subsection (a)(6) to serve as Chair.
(d) MEETINGS.—The Board shall meet upon the call of the
Chair but not less frequently than twice each year. A majority
of the voting members of the Board shall constitute a quorum.
(e) DUTIES.—The Board shall—
(1) select the individuals who will be eligible to serve
as Fellows; and
(2) provide overall supervision and direction of the Foundation.
(f ) COMPENSATION.—
(1) IN GENERAL.—Except as provided in paragraph (2), each
member of the Board shall serve without compensation, and
members who are officers or employees of the United States
shall serve without compensation in addition to that received
for their services as officers or employees of the United States.
(2) TRAVEL EXPENSES.—The members of the Board shall
be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while
away from their homes or regular places of business in the
performance of service for the Board.
SEC. 206. FELLOWSHIP PROGRAM.
(a) AWARD OF FELLOWSHIPS.—
(1) IN GENERAL.—To carry out the purposes of this title,
the Foundation shall award fellowships to—
(A) Vietnamese nationals to study at institutions of
higher education in the United States at graduate and
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114 STAT. 2763A–256
PUBLIC LAW 106–554—APPENDIX D
post-graduate levels in the following fields: physical
sciences, natural sciences, mathematics, environmental
sciences, medicine, technology, and computer sciences; and
(B) United States citizens to teach in Vietnam in appropriate Vietnamese institutions in the fields of study
described in subparagraph (A).
(2) SPECIAL EMPHASIS ON SCIENTIFIC AND TECHNICAL
VOCABULARY IN ENGLISH.—Fellowships awarded under paragraph (1) may include funding for the study of scientific and
technical vocabulary in English.
(b) CRITERIA FOR SELECTION.—Fellowships under this title shall
be awarded to persons who meet the minimum criteria established
by the Foundation, including the following:
(1) VIETNAMESE NATIONALS.—Vietnamese candidates for
fellowships shall have basic English proficiency and must have
the ability to meet the criteria for admission into graduate
or post-graduate programs in United States institutions of
higher learning.
(2) UNITED STATES CITIZEN TEACHERS.—American teaching
candidates shall be highly competent in their fields and be
experienced and proficient teachers.
(c) IMPLEMENTATION.—The Foundation may provide, directly
or by contract, for the conduct of nationwide competition for the
purpose of selecting recipients of fellowships awarded under this
section.
(d) AUTHORITY TO AWARD FELLOWSHIPS ON A MATCHING
BASIS.—The Foundation may require, as a condition of the availability of funds for the award of a fellowship under this title, that
an institution of higher education make available funds for such
fellowship on a matching basis.
(e) FELLOWSHIP CONDITIONS.—A person awarded a fellowship
under this title may receive payments authorized under this title
only during such periods as the Foundation finds that the person
is maintaining satisfactory proficiency and devoting full time to
study or teaching, as appropriate, and is not engaging in gainful
employment other than employment approved by the Foundation
pursuant to regulations of the Board.
(f ) FUNDING.—
(1) FISCAL YEAR 2001.—
(A) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Foundation $5,000,000
for fiscal year 2001 to carry out the activities of the Foundation.
(B) AVAILABILITY OF FUNDS.—Amounts appropriated
pursuant to subparagraph (A) are authorized to remain
available until expended.
(2) FISCAL YEAR 2002 AND SUBSEQUENT FISCAL YEARS.—
Effective October 1, 2001, the Foundation shall utilize funds
transferred to the Foundation under section 207.
SEC. 207. VIETNAM DEBT REPAYMENT FUND.
(a) ESTABLISHMENT.—Notwithstanding any other provision of
law, there is established in the Treasury a separate account which
shall be known as the Vietnam Debt Repayment Fund (in this
subsection referred to as the ‘‘Fund’’).
(b) DEPOSITS.—There shall be deposited as offsetting receipts
into the Fund all payments (including interest payments) made
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–257
by the Socialist Republic of Vietnam under the United StatesVietnam debt agreement.
(c) AVAILABILITY OF THE FUNDS.—
(1) FISCAL YEAR LIMITATION.—Beginning with fiscal year
2002, and each subsequent fiscal year through fiscal year 2018,
$5,000,000 of the amounts deposited into the Fund (or accrued
interest) each fiscal year shall be available to the Foundation,
without fiscal year limitation, under paragraph (2).
(2) DISBURSEMENT OF FUNDS.—The Secretary of the Treasury, at least on a quarterly basis, shall transfer to the Foundation amounts allotted to the Foundation under paragraph (1)
for the purpose of carrying out its activities.
(3) TRANSFER OF EXCESS FUNDS TO MISCELLANEOUS
RECEIPTS.—Beginning with fiscal year 2002, and each subsequent fiscal year through fiscal year 2018, the Secretary of
the Treasury shall withdraw from the Fund and deposit in
the Treasury of the United States as miscellaneous receipts
all moneys in the Fund in excess of amounts made available
to the Foundation under paragraph (1).
(d) ANNUAL REPORT.—The Board shall prepare and submit
annually to Congress statements of financial condition of the Fund,
including the beginning balance, receipts, refunds to appropriations,
transfers to the general fund, and the ending balance.
SEC. 208. FOUNDATION PERSONNEL MATTERS.
(a) APPOINTMENT BY BOARD.—There shall be an Executive Secretary of the Foundation who shall be appointed by the Board
without regard to the provisions of title 5, United States Code,
or any regulation thereunder, governing appointment in the
competitive service. The Executive Director shall be the Chief
Executive Officer of the Foundation and shall carry out the functions of the Foundation subject to the supervision and direction
of the Board. The Executive Director shall carry out such other
functions consistent with the provisions of this title as the Board
shall prescribe. The decision to employ or terminate an Executive
Director shall be made by an affirmative vote of at least six of
the nine voting members of the Board.
(b) PROFESSIONAL STAFF.—The Executive Director shall hire
Foundation staff on the basis of professional and nonpartisan qualifications.
(c) EXPERTS AND CONSULTANTS.—The Executive Director may
procure temporary and intermittent services of experts and consultants as are necessary to the extent authorized by section 3109
of title 5, United States Code to carry out the purposes of the
Foundation.
(d) COMPENSATION.—The Board may fix the compensation of
the Executive Director and other personnel without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of title
V, United States Code, relating to classification of positions and
General Schedule pay rates, except that the rate of pay for the
Executive Director and other personnel may not exceed the rate
payable for level V of the Executive Schedule under section 5316
of such title.
SEC. 209. ADMINISTRATIVE PROVISIONS.
(a) IN GENERAL.—In order to carry out this title, the Foundation
may—
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114 STAT. 2763A–258
PUBLIC LAW 106–554—APPENDIX D
(1) prescribe such regulations as it considers necessary
governing the manner in which its functions shall be carried
out;
(2) receive money and other property donated, bequeathed,
or devised, without condition or restriction other than it be
used for the purposes of the Foundation, and to use, sell,
or otherwise dispose of such property for the purpose of carrying
out its functions;
(3) accept and use the services of voluntary and noncompensated personnel;
(4) enter into contracts or other arrangements, or make
grants, to carry out the provisions of this title, and enter
into such contracts or other arrangements, or make such grants,
with the concurrence of a majority of the members of the
Board, without performance or other bonds and without regard
to section 3709 of the Revised Statutes (41 U.S.C. 5);
(5) rent office space in the District of Columbia; and
(6) make other necessary expenditures.
(b) ANNUAL REPORT.—The Foundation shall submit to the President and to the Committee on Foreign Relations of the Senate
and the Committee on International Relations of the House of
Representatives an annual report of its operations under this title.
SEC. 210. TERMINATION.
(a) IN GENERAL.—The Foundation may not award any new
fellowship, or extend any existing fellowship, after September 30,
2016.
(b) ABOLISHMENT.—Effective 120 days after the expiration of
the last fellowship in effect under this title, the Foundation is
abolished.
TITLE III—COLORADO UTE SETTLEMENT ACT
AMENDMENTS OF 2000
SEC. 301. SHORT TITLE; FINDINGS; DEFINITIONS.
(a) SHORT TITLE.—This title may be cited as the ‘‘Colorado
Ute Settlement Act Amendments of 2000’’.
(b) FINDINGS.—Congress makes the following findings:
(1) In order to provide for a full and final settlement
of the claims of the Colorado Ute Indian Tribes on the Animas
and La Plata Rivers, the Tribes, the State of Colorado, and
certain of the non-Indian parties to the Agreement have proposed certain modifications to the Colorado Ute Indian Water
Rights Settlement Act of 1988 (Public Law 100–585; 102 Stat.
2973).
(2) The claims of the Colorado Ute Indian Tribes on all
rivers in Colorado other than the Animas and La Plata Rivers
have been settled in accordance with the provisions of the
Colorado Ute Indian Water Rights Settlement Act of 1988 (Public Law 100–585; 102 Stat. 2973).
(3) The Indian and non-Indian communities of southwest
Colorado and northwest New Mexico will be benefited by a
settlement of the tribal claims on the Animas and La Plata
Rivers that provides the Tribes with a firm water supply without taking water away from existing uses.
(4) The Agreement contemplated a specific timetable for
the delivery of irrigation and municipal and industrial water
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–259
and other benefits to the Tribes from the Animas-La Plata
Project, which timetable has not been met. The provision of
irrigation water can not presently be satisfied under the current
implementation of the Federal Water Pollution Control Act
(33 U.S.C. 1251 et seq.) and the Endangered Species Act of
1973 (16 U.S.C. 1531 et seq.).
(5) In order to meet the requirements of the Endangered
Species Act of 1973 (16 U.S.C. 1531 et seq.), and in particular
the various biological opinions issued by the Fish and Wildlife
Service, the amendments made by this title are needed to
provide for a significant reduction in the facilities and water
supply contemplated under the Agreement.
(6) The substitute benefits provided to the Tribes under
the amendments made by this title, including the waiver of
capital costs and the provisions of funds for natural resource
enhancement, result in a settlement that provides the Tribes
with benefits that are equivalent to those that the Tribes would
have received under the Colorado Ute Indian Water Rights
Settlement Act of 1988 (Public Law 100–585; 102 Stat. 2973).
(7) The requirement that the Secretary of the Interior
comply with the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.) and other national environmental laws
before implementing the proposed settlement will ensure that
the satisfaction of the tribal water rights is accomplished in
an environmentally responsible fashion.
(8) In considering the full range of alternatives for satisfying the water rights claims of the Southern Ute Indian Tribe
and Ute Mountain Ute Indian Tribe, Congress has held numerous legislative hearings and deliberations, and reviewed the
considerable record including the following documents:
(A) The Final EIS No. INT–FES–80–18, dated July
1, 1980.
(B) The Draft Supplement to the FES No. INT–DES–
92–41, dated October 13, 1992.
(C) The Final Supplemental to the FES No. 96–23,
dated April 26, 1996;
(D) The Draft Supplemental EIS, dated January 14,
2000.
(E) The Final Supplemental EIS, dated July 2000.
(F) The Record of Decision for the Settlement of the
Colorado Ute Indian Waters, September 25, 2000.
(9) In the Record of Decision referred to in paragraph
(8)(F), the Secretary determined that the preferred alternative
could only proceed if Congress amended the Colorado Ute
Indian Water Rights Settlement Act of 1988 (Public Law 100–
585; 102 Stat. 2973) so as to satisfy the Tribal water rights
claim through the construction of the features authorized by
this title. The amendments to the Colorado Ute Indian Water
Rights Settlement Act of 1988 set forth in this title will provide
the Ute Tribes with substitute benefits equivalent to those
that the Tribes would have received under the Colorado Ute
Indian Water Rights Settlement Act of 1988, in a manner
consistent with paragraph (8) and the Federal Government’s
trust obligation.
(10) Based upon paragraph (8), it is the intent of Congress
to enact legislation that implements the Record of Decision
referred to in paragraph (8)(F).
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114 STAT. 2763A–260
PUBLIC LAW 106–554—APPENDIX D
(c) DEFINITIONS.—In this title:
(1) AGREEMENT.—The term ‘‘Agreement’’ has the meaning
given that term in section 3(1) of the Colorado Ute Indian
Water Rights Settlement Act of 1988 (Public Law 100–585;
102 Stat. 2973).
(2) ANIMAS-LA PLATA PROJECT.—The term ‘‘Animas-La Plata
Project’’ has the meaning given that term in section 3(2) of
the Colorado Ute Indian Water Rights Settlement Act of 1988
(Public Law 100–585; 102 Stat. 2973).
(3) DOLORES PROJECT.—The term ‘‘Dolores Project’’ has the
meaning given that term in section 3(3) of the Colorado Ute
Indian Water Rights Settlement Act of 1988 (Public Law 100–
585; 102 Stat. 2974).
(4) TRIBE; TRIBES.—The term ‘‘Tribe’’ or ‘‘Tribes’’ has the
meaning given that term in section 3(6) of the Colorado Ute
Indian Water Rights Settlement Act of 1988 (Public Law 100–
585; 102 Stat. 2974).
SEC. 302. AMENDMENTS TO SECTION 6 OF THE COLORADO UTE INDIAN
WATER RIGHTS SETTLEMENT ACT OF 1988.
Subsection (a) of section 6 of the Colorado Ute Indian Water
Rights Settlement Act of 1988 (Public Law 100–585; 102 Stat.
2975) is amended to read as follows:
‘‘(a) RESERVOIR; MUNICIPAL AND INDUSTRIAL WATER.—
‘‘(1) FACILITIES.—
‘‘(A) IN GENERAL.—After the date of enactment of this
subsection, but prior to January 1, 2005, or the date established in the Amended Final Decree described in section
18(c), the Secretary, in order to settle the outstanding
claims of the Tribes on the Animas and La Plata Rivers,
acting through the Bureau of Reclamation, is specifically
authorized to—
‘‘(i) complete construction of, and operate and
maintain, a reservoir, a pumping plant, a reservoir
inlet conduit, and appurtenant facilities with sufficient
capacity to divert and store water from the Animas
River to provide for an average annual depletion of
57,100 acre-feet of water to be used for a municipal
and industrial water supply, which facilities shall—
‘‘(I) be designed and operated in accordance
with the hydrologic regime necessary for the recovery of the endangered fish of the San Juan River
as determined by the San Juan River Recovery
Implementation Program;
‘‘(II) be operated in accordance with the
Animas-La Plata Project Compact as approved by
Congress in Public Law 90–537;
‘‘(III) include an inactive pool of an appropriate
size to be determined by the Secretary following
the completion of required environmental compliance activities; and
‘‘(IV) include those recreation facilities determined to be appropriate by agreement between
the State of Colorado and the Secretary that shall
address the payment of any of the costs of such
facilities by the State of Colorado in addition to
the costs described in paragraph (3); and
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114 STAT. 2763A–261
‘‘(ii) deliver, through the use of the project components referred to in clause (i), municipal and industrial
water allocations—
‘‘(I) with an average annual depletion not to
exceed 16,525 acre-feet of water, to the Southern
Ute Indian Tribe for its present and future needs;
‘‘(II) with an average annual depletion not to
exceed 16,525 acre-feet of water, to the Ute Mountain Ute Indian Tribe for its present and future
needs;
‘‘(III) with an average annual depletion not
to exceed 2,340 acre-feet of water, to the Navajo
Nation for its present and future needs;
‘‘(IV) with an average annual depletion not
to exceed 10,400 acre-feet of water, to the San
Juan Water Commission for its present and future
needs;
‘‘(V) with an average annual depletion of an
amount not to exceed 2,600 acre-feet of water,
to the Animas-La Plata Conservancy District for
its present and future needs;
‘‘(VI) with an average annual depletion of an
amount not to exceed 5,230 acre-feet of water,
to the State of Colorado for its present and future
needs; and
‘‘(VII) with an average annual depletion of
an amount not to exceed 780 acre-feet of water,
to the La Plata Conservancy District of New Mexico for its present and future needs.
‘‘(B) APPLICABILITY OF OTHER FEDERAL LAW.—The
responsibilities of the Secretary described in subparagraph
(A) are subject to the requirements of Federal laws related
to the protection of the environment and otherwise
applicable to the construction of the proposed facilities,
including the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.), the Clean Water Act (42 U.S.C.
7401 et seq.), and the Endangered Species Act of 1973
(16 U.S.C. 1531 et seq.). Nothing in this Act shall be
construed to predetermine or otherwise affect the outcome
of any analysis conducted by the Secretary or any other
Federal official under applicable laws.
‘‘(C) LIMITATION.—
‘‘(i) IN GENERAL.—If constructed, the facilities
described in subparagraph (A) shall constitute the
Animas-La Plata Project. Construction of any other
project features authorized by Public Law 90–537 shall
not be commenced without further express authorization from Congress.
‘‘(ii) CONTINGENCY IN APPLICATION.—If the facilities described in subparagraph (A) are not constructed
and operated, clause (i) shall not take effect.
‘‘(2) TRIBAL CONSTRUCTION COSTS.—Construction costs
allocable to the facilities that are required to deliver the municipal and industrial water allocations described in subclauses
(I), (II) and (III) of paragraph (1)(A)(ii) shall be nonreimbursable
to the United States.
‘‘(3) NONTRIBAL WATER CAPITAL OBLIGATIONS.—
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114 STAT. 2763A–262
PUBLIC LAW 106–554—APPENDIX D
‘‘(A) IN GENERAL.—Under the provisions of section 9
of the Act of August 4, 1939 (43 U.S.C. 485h), the nontribal
municipal and industrial water capital repayment obligations for the facilities described in paragraph (1)(A)(i) may
be satisfied upon the payment in full of the nontribal
water capital obligations prior to the initiation of construction. The amount of the obligations described in the preceding sentence shall be determined by agreement between
the Secretary of the Interior and the entity responsible
for such repayment as to the appropriate reimbursable
share of the construction costs allocated to that entity’s
municipal water storage. Such repayment shall be consistent with Federal reclamation law, including the Colorado
River Storage Project Act of 1956 (43 U.S.C. 620 et seq.).
Such agreement shall take into account the fact that the
construction of certain project facilities, including those
facilities required to provide irrigation water supplies from
the Animas-La Plata Project, is not authorized under paragraph (1)(A)(i) and no costs associated with the design
or development of such facilities, including costs associated
with environmental compliance, shall be allocable to the
municipal and industrial users of the facilities authorized
under such paragraph.
‘‘(B) NONTRIBAL REPAYMENT OBLIGATION SUBJECT TO
FINAL COST ALLOCATION.—The nontribal repayment obligation set forth in subparagraph (A) shall be subject to a
final cost allocation by the Secretary upon project completion. In the event that the final cost allocation indicates
that additional repayment is warranted based on the
applicable entity’s share of project water storage and determination of overall reimbursable cost, that entity may elect
to enter into a new agreement to make the additional
payment necessary to secure the full water supply identified in paragraph (1)(A)(ii). If the repayment entity elects
not to enter into a new agreement, the portion of project
storage relinquished by such election shall be available
to the Secretary for allocation to other project purposes.
Additional repayment shall only be warranted for reasonable and unforeseen costs associated with project construction as determined by the Secretary in consultation with
the relevant repayment entities.
‘‘(C) REPORT.—Not later than April 1, 2001, the Secretary shall report to Congress on the status of the costshare agreements contemplated in subparagraph (A). In
the event that no agreement is reached with either the
Animas-La Plata Conservancy District or the State of Colorado for the water allocations set forth in subclauses (V)
and (VI) of paragraph (1)(A)(ii), those allocations shall be
reallocated equally to the Colorado Ute Tribes.
‘‘(4) TRIBAL WATER ALLOCATIONS.—
‘‘(A) IN GENERAL.—With respect to municipal and
industrial water allocated to a Tribe from the AnimasLa Plata Project or the Dolores Project, until that water
is first used by a Tribe or used pursuant to a water use
contract with the Tribe, the Secretary shall pay the annual
operation, maintenance, and replacement costs allocable
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to that municipal and industrial water allocation of the
Tribe.
‘‘(B) TREATMENT OF COSTS.—A Tribe shall not be
required to reimburse the Secretary for the payment of
any cost referred to in subparagraph (A).
‘‘(5) REPAYMENT OF PRO RATA SHARE.—Upon a Tribe’s first
use of an increment of a municipal and industrial water allocation described in paragraph (4), or the Tribe’s first use of
such water pursuant to the terms of a water use contract—
‘‘(A) repayment of that increment’s pro rata share of
those allocable construction costs for the Dolores Project
shall be made by the Tribe; and
‘‘(B) the Tribe shall bear a pro rata share of the allocable annual operation, maintenance, and replacement costs
of the increment as referred to in paragraph (4).’’.
SEC. 303. MISCELLANEOUS.
The Colorado Ute Indian Water Rights Settlement Act of 1988
(Public Law 100–585; 102 Stat. 2973) is amended by adding at
the end the following:
‘‘SEC. 15. NEW MEXICO AND NAVAJO NATION WATER MATTERS.
‘‘(a) ASSIGNMENT OF WATER PERMIT.—Upon the request of the
State Engineer of the State of New Mexico, the Secretary shall,
as soon as practicable, in a manner consistent with applicable
law, assign, without consideration, to the New Mexico AnimasLa Plata Project beneficiaries or to the New Mexico Interstate
Stream Commission in accordance with the request of the State
Engineer, the Department of the Interior’s interest in New Mexico
State Engineer Permit Number 2883, dated May 1, 1956, in order
to fulfill the New Mexico non-Navajo purposes of the AnimasLa Plata Project, so long as the permit assignment does not affect
the application of the Endangered Species Act of 1973 (16 U.S.C.
1531 et seq.) to the use of the water involved.
‘‘(b) NAVAJO NATION MUNICIPAL PIPELINE.—The Secretary is
specifically authorized to construct a water line to augment the
existing system that conveys the municipal water supplies, in an
amount not less than 4,680 acre-feet per year, to the Navajo Indian
Reservation at or near Shiprock, New Mexico. The Secretary shall
comply with all applicable environmental laws with respect to such
water line. Construction costs allocated to the Navajo Nation for
such water line shall be nonreimbursable to the United States.
‘‘(c) PROTECTION OF NAVAJO WATER CLAIMS.—Nothing in this
Act, including the permit assignment authorized by subsection (a),
shall be construed to quantify or otherwise adversely affect the
water rights and the claims of entitlement to water of the Navajo
Nation.
‘‘SEC. 16. RESOURCE FUNDS.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section, $8,000,000 for each
of fiscal years 2002 through 2006. Not later than 60 days after
amounts are appropriated and available to the Secretary for a
fiscal year under this paragraph, the Secretary shall make a payment to each of the Tribal Resource Funds established under subsection (b). Each such payment shall be equal to 50 percent of
the amount appropriated for the fiscal year involved.
‘‘(b) FUNDS.—The Secretary shall establish a—
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PUBLIC LAW 106–554—APPENDIX D
‘‘(1) Southern Ute Tribal Resource Fund; and
‘‘(2) Ute Mountain Ute Tribal Resource Fund.
‘‘(c) TRIBAL DEVELOPMENT.—
‘‘(1) INVESTMENT.—The Secretary shall, in the absence of
an approved tribal investment plan provided for under paragraph (2), invest the amount in each Tribal Resource Fund
established under subsection (b) in accordance with the Act
entitled, ‘An Act to authorize the deposit and investment of
Indian funds’ approved June 24, 1938 (25 U.S.C. 162a). With
the exception of the funds referred to in paragraph (3)(B)(i),
the Secretary shall disburse, at the request of a Tribe, the
principal and income in its Resource Fund, or any part thereof,
in accordance with a resource acquisition and enhancement
plan approved under paragraph (3).
‘‘(2) INVESTMENT PLAN.—
‘‘(A) IN GENERAL.—In lieu of the investment provided
for in paragraph (1), a Tribe may submit a tribal investment plan applicable to all or part of the Tribe’s Tribal
Resource Fund, except with respect to the funds referred
to in paragraph (3)(B)(i).
‘‘(B) APPROVAL.—Not later than 60 days after the date
on which an investment plan is submitted under subparagraph (A), the Secretary shall approve such investment
plan if the Secretary finds that the plan is reasonable
and sound. If the Secretary does not approve such investment plan, the Secretary shall set forth in writing and
with particularity the reasons for such disapproval. If such
investment plan is approved by the Secretary, the Tribal
Resource Fund involved shall be disbursed to the Tribe
to be invested by the Tribe in accordance with the approved
investment plan, subject to subsection (d).
‘‘(C) COMPLIANCE.—The Secretary may take such steps
as the Secretary determines to be necessary to monitor
the compliance of a Tribe with an investment plan approved
under subparagraph (B). The United States shall not be
responsible for the review, approval, or audit of any individual investment under the plan. The United States shall
not be directly or indirectly liable with respect to any
such investment, including any act or omission of the Tribe
in managing or investing such funds.
‘‘(D) ECONOMIC DEVELOPMENT PLAN.—The principal
and income derived from tribal investments under an
investment plan approved under subparagraph (B) shall
be subject to the provisions of this section and shall be
expended only in accordance with an economic development
plan approved under paragraph (3)(B).
‘‘(3) ECONOMIC DEVELOPMENT PLAN.—
‘‘(A) IN GENERAL.—Each Tribe shall submit to the Secretary a resource acquisition and enhancement plan for
all or any portion of its Tribal Resource Fund.
‘‘(B) APPROVAL.—Not later than 60 days after the date
on which a plan is submitted under subparagraph (A),
the Secretary shall approve such plan if it is consistent
with the following requirements:
‘‘(i) With respect to at least three-fourths of the
funds appropriated pursuant to this section and
consistent with the long-standing practice of the Tribes
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114 STAT. 2763A–265
and other local entities and communities to work
together to use their respective water rights and
resources for mutual benefit, at least three-fourths of
the funds appropriated pursuant to this section shall
be utilized to enhance, restore, and utilize the Tribes’
natural resources in partnership with adjacent nonIndian communities or entities in the area.
‘‘(ii) The plan must be reasonably related to the
protection, acquisition, enhancement, or development
of natural resources for the benefit of the Tribe and
its members.
‘‘(iii) Notwithstanding any other provision of law
and in order to ensure that the Federal Government
fulfills the objectives of the Record of Decision referred
to in section 301(b)(8)(F) of the Colorado Ute Settlement Act Amendments of 2000 by requiring that the
funds referred to in clause (i) are expended directly
by employees of the Federal Government, the Secretary
acting through the Bureau of Reclamation shall expend
not less than one-third of the funds referred to in
clause (i) for municipal or rural water development
and not less than two-thirds of the funds referred
to such clause for resource acquisition and enhancement.
‘‘(C) MODIFICATION.—Subject to the provisions of this
Act and the approval of the Secretary, each Tribe may
modify a plan approved under subparagraph (B).
‘‘(D) LIABILITY.—The United States shall not be directly
or indirectly liable for any claim or cause of action arising
from the approval of a plan under this paragraph, or from
the use and expenditure by the Tribe of the principal
or interest of the Funds.
‘‘(d) LIMITATION ON PER CAPITA DISTRIBUTIONS.—No part of
the principal contained in the Tribal Resource Fund, or of the
income accruing to such funds, or the revenue from any water
use contract, shall be distributed to any member of either Tribe
on a per capita basis.
‘‘(e) LIMITATION ON SETTING ASIDE FINAL CONSENT DECREE.—
Neither the Tribes nor the United States shall have the right
to set aside the final consent decree solely because the requirements
of subsection (c) are not complied with or implemented.
‘‘(f ) LIMITATION ON DISBURSEMENT OF TRIBAL RESOURCE
FUNDS.—Any funds appropriated under this section shall be placed
into the Southern Ute Tribal Resource Fund and the Ute Mountain
Ute Tribal Resource Fund in the Treasury of the United States
but shall not be available for disbursement under this section
until the final settlement of the tribal claims as provided in section
18. The Secretary of the Interior may, in the Secretary’s sole discretion, authorize the disbursement of funds prior to the final settlement in the event that the Secretary determines that substantial
portions of the settlement have been completed. In the event that
the funds are not disbursed under the terms of this section by
December 31, 2012, such funds shall be deposited in the general
fund of the Treasury.
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114 STAT. 2763A–266
PUBLIC LAW 106–554—APPENDIX D
‘‘SEC. 17. COLORADO UTE SETTLEMENT FUND.
‘‘(a) ESTABLISHMENT OF FUND.—There is hereby established
within the Treasury of the United States a fund to be known
as the ‘Colorado Ute Settlement Fund’.
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to the Colorado Ute Settlement Fund such funds
as are necessary to complete the construction of the facilities
described in sections 6(a)(1)(A) and 15(b) within 7 years of the
date of enactment of this section. Such funds are authorized to
be appropriated for each of the first 5 fiscal years beginning with
the first full fiscal year following the date of enactment of this
section.
‘‘SEC. 18. FINAL SETTLEMENT.
‘‘(a) IN GENERAL.—The construction of the facilities described
in section 6(a)(1)(A), the allocation of the water supply from those
facilities to the Tribes as described in that section, and the provision
of funds to the Tribes in accordance with section 16 and the issuance
of an amended final consent decree as contemplated in subsection
(c) shall constitute final settlement of the tribal claims to water
rights on the Animas and La Plata Rivers in the State of Colorado.
‘‘(b) STATUTORY CONSTRUCTION.—Nothing in this section shall
be construed to affect the right of the Tribes to water rights on
the streams and rivers described in the Agreement, other than
the Animas and La Plata Rivers, to receive the amounts of water
dedicated to tribal use under the Agreement, or to acquire water
rights under the laws of the State of Colorado.
‘‘(c) ACTION BY THE ATTORNEY GENERAL.—The Attorney General
shall file with the District Court, Water Division Number 7, of
the State of Colorado, such instruments as may be necessary to
request the court to amend the final consent decree to provide
for the amendments made to this Act under the Colorado Ute
Indian Water Rights Settlement Act Amendments of 2000. The
amended final consent decree shall specify terms and conditions
to provide for an extension of the current January 1, 2005, deadline
for the Tribes to commence litigation of their reserved rights claims
on the Animas and La Plata Rivers.
‘‘SEC. 19. STATUTORY CONSTRUCTION; TREATMENT OF CERTAIN
FUNDS.
‘‘(a) IN GENERAL.—Nothing in the amendments made by the
Colorado Ute Settlement Act Amendments of 2000 shall be construed to affect the applicability of any provision of this Act.
‘‘(b) TREATMENT OF UNCOMMITTED PORTION OF COST-SHARING
OBLIGATION.—The uncommitted portion of the cost-sharing obligation of the State of Colorado referred to in section 6(a)(3) shall
be made available, upon the request of the State of Colorado,
to the State of Colorado after the date on which payment is made
of the amount specified in that section.’’.
TITLE IV
SEC. 401. DESIGNATION OF AMERICAN MUSEUM OF SCIENCE AND
ENERGY.
(a) IN GENERAL.—The Museum—
(1) is designated as the ‘‘American Museum of Science
and Energy’’; and
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114 STAT. 2763A–267
(2) shall be the official museum of science and energy
of the United States.
(b) REFERENCES.—Any reference in a law, map, regulation,
document, paper, or other record of the United States to the
Museum is deemed to be a reference to the ‘‘American Museum
of Science and Energy’’.
(c) PROPERTY OF THE UNITED STATES.—
(1) IN GENERAL.—The name ‘‘American Museum of Science
and Energy’’ is declared the property of the United States.
(2) USE.—The Museum shall have the sole right throughout
the United States and its possessions to have and use the
name ‘‘American Museum of Science and Energy’’.
(3) EFFECT ON OTHER RIGHTS.—This subsection shall not
be construed to conflict or interfere with established or vested
rights.
SEC. 402. AUTHORITY.
To carry out the activities of the Museum, the Secretary may—
(1) accept and dispose of any gift, devise, or bequest of
services or property, real or personal, that is—
(A) designated in a written document by the person
making the gift, devise, or bequest as intended for the
Museum; and
(B) determined by the Secretary to be suitable and
beneficial for use by the Museum;
(2) operate a retail outlet on the premises of the Museum
for the purpose of selling or distributing items (including
mementos, food, educational materials, replicas, and literature)
that are—
(A) relevant to the contents of the Museum; and
(B) informative, educational, and tasteful;
(3) collect reasonable fees where feasible and appropriate;
(4) exhibit, perform, display, and publish materials and
information of or relating to the Museum in any media or
place;
(5) consistent with guidelines approved by the Secretary,
lease space on the premises of the Museum at reasonable
rates and for uses consistent with such guidelines; and
(6) use the proceeds of activities authorized under this
section to pay the costs of the Museum.
SEC. 403. MUSEUM VOLUNTEERS.
(a) AUTHORITY TO USE VOLUNTEERS.—The Secretary may
recruit, train, and accept the services of individuals or entities
as volunteers for services or activities related to the Museum.
(b) STATUS OF VOLUNTEERS.—
(1) IN GENERAL.—Except as provided in paragraph (2), service by a volunteer under subsection (a) shall not be considered
Federal employment.
(2) EXCEPTIONS.—
(A) FEDERAL TORT CLAIMS ACT.—For purposes of chapter 171 of title 28, United States Code, a volunteer under
subsection (a) shall be treated as an employee of the
Government (as defined in section 2671 of that title).
(B) COMPENSATION FOR WORK INJURIES.—For purposes
of subchapter I of chapter 81 of title 5, United States
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114 STAT. 2763A–268
PUBLIC LAW 106–554—APPENDIX D
Code, a volunteer described in subsection (a) shall be treated as an employee (as defined in section 8101 of title
5, United States Code).
(c) COMPENSATION.—A volunteer under subsection (a) shall
serve without pay, but may receive nominal awards and reimbursement for incidental expenses, including expenses for a uniform
or transportation in furtherance of Museum activities.
SEC. 404. DEFINITIONS.
For purposes of this Act:
(1) MUSEUM.—The term ‘‘Museum’’ means the museum
operated by the Secretary of Energy and located at 300 South
Tulane Avenue in Oak Ridge, Tennessee.
(2) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of Energy or a designated representative of the Secretary.
TITLE V—LOWER MISSISSIPPI RIVER
REGION
SEC. 501. SHORT TITLE.
This title may be cited as the ‘‘Delta Regional Authority Act
of 2000’’.
SEC. 502. FINDINGS AND PURPOSES.
(a) FINDINGS.—Congress finds that—
(1) the lower Mississippi River region (referred to in this
title as the ‘‘region’’), though rich in natural and human
resources, lags behind the rest of the United States in economic
growth and prosperity;
(2) the region suffers from a greater proportion of measurable poverty and unemployment than any other region of the
United States;
(3) the greatest hope for economic growth and revitalization
in the region lies in the development of transportation infrastructure, creation of jobs, expansion of businesses, and development of entrepreneurial local economies;
(4) the economic progress of the region requires an adequate
transportation and physical infrastructure, a skilled and
trained workforce, and greater opportunities for enterprise
development and entrepreneurship;
(5) a concerted and coordinated effort among Federal, State,
and local agencies, the private sector, and nonprofit groups
is needed if the region is to achieve its full potential for economic development;
(6) economic development planning on a regional or multicounty basis offers the best prospect for achieving the maximum
benefit from public and private investments; and
(7) improving the economy of the region requires a special
emphasis on areas of the region that are most economically
distressed.
(b) PURPOSES.—The purposes of this title are—
(1) to promote and encourage the economic development
of the region—
(A) to ensure that the communities and people in the
region have the opportunity for economic development; and
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PUBLIC LAW 106–554—APPENDIX D
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(B) to ensure that the economy of the region reaches
economic parity with that of the rest of the United States;
(2) to establish a formal framework for joint Federal-State
collaboration in meeting and focusing national attention on
the economic development needs of the region;
(3) to assist the region in obtaining the transportation
and basic infrastructure, skills training, and opportunities for
economic development that are essential for strong local economies;
(4) to foster coordination among all levels of government,
the private sector, and nonprofit groups in crafting common
regional strategies that will lead to broader economic growth;
(5) to strengthen efforts that emphasize regional
approaches to economic development and planning;
(6) to encourage the participation of interested citizens,
public officials, agencies, and others in developing and
implementing local and regional plans for broad-based economic
and community development; and
(7) to focus special attention on areas of the region that
suffer from the greatest economic distress.
SEC. 503. DELTA REGIONAL AUTHORITY.
The Consolidated Farm and Rural Development Act (7 U.S.C.
1921 et seq.) is amended by adding at the end the following:
‘‘Subtitle F—Delta Regional Authority
‘‘SEC. 382A. DEFINITIONS.
‘‘In this subtitle:
‘‘(1) AUTHORITY.—The term ‘Authority’ means the Delta
Regional Authority established by section 382B.
‘‘(2) REGION.—The term ‘region’ means the Lower Mississippi (as defined in section 4 of the Delta Development
Act (42 U.S.C. 3121 note; Public Law 100–460)).
‘‘(3) FEDERAL GRANT PROGRAM.—The term ‘Federal grant
program’ means a Federal grant program to provide assistance
in—
‘‘(A) acquiring or developing land;
‘‘(B) constructing or equipping a highway, road, bridge,
or facility; or
‘‘(C) carrying out other economic development activities.
‘‘SEC. 382B. DELTA REGIONAL AUTHORITY.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—There is established the Delta Regional
Authority.
‘‘(2) COMPOSITION.—The Authority shall be composed of—
‘‘(A) a Federal member, to be appointed by the President, with the advice and consent of the Senate; and
‘‘(B) the Governor (or a designee of the Governor) of
each State in the region that elects to participate in the
Authority.
‘‘(3) COCHAIRPERSONS.—The Authority shall be headed by—
‘‘(A) the Federal member, who shall serve—
‘‘(i) as the Federal cochairperson; and
‘‘(ii) as a liaison between the Federal Government
and the Authority; and
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PUBLIC LAW 106–554—APPENDIX D
‘‘(B) a State cochairperson, who—
‘‘(i) shall be a Governor of a participating State
in the region; and
‘‘(ii) shall be elected by the State members for
a term of not less than 1 year.
‘‘(b) ALTERNATE MEMBERS.—
‘‘(1) STATE ALTERNATES.—The State member of a participating State may have a single alternate, who shall be—
‘‘(A) a resident of that State; and
‘‘(B) appointed by the Governor of the State.
‘‘(2) ALTERNATE FEDERAL COCHAIRPERSON.—The President
shall appoint an alternate Federal cochairperson.
‘‘(3) QUORUM.—A State alternate shall not be counted
toward the establishment of a quorum of the Authority in
any instance in which a quorum of the State members is
required to be present.
‘‘(4) DELEGATION OF POWER.—No power or responsibility
of the Authority specified in paragraphs (2) and (3) of subsection
(c), and no voting right of any Authority member, shall be
delegated to any person—
‘‘(A) who is not an Authority member; or
‘‘(B) who is not entitled to vote in Authority meetings.
‘‘(c) VOTING.—
‘‘(1) IN GENERAL.—A decision by the Authority shall require
a majority vote of the Authority (not including any member
representing a State that is delinquent under subsection
(g)(2)(C)) to be effective.
‘‘(2) QUORUM.—A quorum of State members shall be
required to be present for the Authority to make any policy
decision, including—
‘‘(A) a modification or revision of an Authority policy
decision;
‘‘(B) approval of a State or regional development plan;
and
‘‘(C) any allocation of funds among the States.
‘‘(3) PROJECT AND GRANT PROPOSALS.—The approval of
project and grant proposals shall be—
‘‘(A) a responsibility of the Authority; and
‘‘(B) conducted in accordance with section 382I.
‘‘(4) VOTING BY ALTERNATE MEMBERS.—An alternate member shall vote in the case of the absence, death, disability,
removal, or resignation of the Federal or State representative
for which the alternate member is an alternate.
‘‘(d) DUTIES.—The Authority shall—
‘‘(1) develop, on a continuing basis, comprehensive and
coordinated plans and programs to establish priorities and
approve grants for the economic development of the region,
giving due consideration to other Federal, State, and local
planning and development activities in the region;
‘‘(2) not later than 220 days after the date of enactment
of this subtitle, establish priorities in a development plan for
the region (including 5-year regional outcome targets);
‘‘(3) assess the needs and assets of the region based on
available research, demonstrations, investigations, assessments, and evaluations of the region prepared by Federal,
State, and local agencies, universities, local development districts, and other nonprofit groups;
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‘‘(4) formulate and recommend to the Governors and legislatures of States that participate in the Authority forms of interstate cooperation;
‘‘(5) work with State and local agencies in developing appropriate model legislation;
‘‘(6)(A) enhance the capacity of, and provide support for,
local development districts in the region; or
‘‘(B) if no local development district exists in an area in
a participating State in the region, foster the creation of a
local development district;
‘‘(7) encourage private investment in industrial, commercial, and other economic development projects in the region;
and
‘‘(8) cooperate with and assist State governments with economic development programs of participating States.
‘‘(e) ADMINISTRATION.—In carrying out subsection (d), the
Authority may—
‘‘(1) hold such hearings, sit and act at such times and
places, take such testimony, receive such evidence, and print
or otherwise reproduce and distribute a description of the
proceedings and reports on actions by the Authority as the
Authority considers appropriate;
‘‘(2) authorize, through the Federal or State cochairperson
or any other member of the Authority designated by the Authority, the administration of oaths if the Authority determines
that testimony should be taken or evidence received under
oath;
‘‘(3) request from any Federal, State, or local department
or agency such information as may be available to or procurable
by the department or agency that may be of use to the Authority
in carrying out duties of the Authority;
‘‘(4) adopt, amend, and repeal bylaws and rules governing
the conduct of Authority business and the performance of
Authority duties;
‘‘(5) request the head of any Federal department or agency
to detail to the Authority such personnel as the Authority
requires to carry out duties of the Authority, each such detail
to be without loss of seniority, pay, or other employee status;
‘‘(6) request the head of any State department or agency
or local government to detail to the Authority such personnel
as the Authority requires to carry out duties of the Authority,
each such detail to be without loss of seniority, pay, or other
employee status;
‘‘(7) provide for coverage of Authority employees in a suitable retirement and employee benefit system by—
‘‘(A) making arrangements or entering into contracts
with any participating State government; or
‘‘(B) otherwise providing retirement and other
employee benefit coverage;
‘‘(8) accept, use, and dispose of gifts or donations of services
or real, personal, tangible, or intangible property;
‘‘(9) enter into and perform such contracts, leases, cooperative agreements, or other transactions as are necessary to carry
out Authority duties, including any contracts, leases, or cooperative agreements with—
‘‘(A) any department, agency, or instrumentality of the
United States;
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‘‘(B) any State (including a political subdivision,
agency, or instrumentality of the State); or
‘‘(C) any person, firm, association, or corporation; and
‘‘(10) establish and maintain a central office and field offices
at such locations as the Authority may select.
‘‘(f ) FEDERAL AGENCY COOPERATION.—A Federal agency shall—
‘‘(1) cooperate with the Authority; and
‘‘(2) provide, on request of the Federal cochairperson, appropriate assistance in carrying out this subtitle, in accordance
with applicable Federal laws (including regulations).
‘‘(g) ADMINISTRATIVE EXPENSES.—
‘‘(1) IN GENERAL.—Administrative expenses of the Authority
(except for the expenses of the Federal cochairperson, including
expenses of the alternate and staff of the Federal cochairperson,
which shall be paid solely by the Federal Government) shall
be paid—
‘‘(A) by the Federal Government, in an amount equal
to 50 percent of the administrative expenses; and
‘‘(B) by the States in the region participating in the
Authority, in an amount equal to 50 percent of the administrative expenses.
‘‘(2) STATE SHARE.—
‘‘(A) IN GENERAL.—The share of administrative
expenses of the Authority to be paid by each State shall
be determined by the Authority.
‘‘(B) NO FEDERAL PARTICIPATION.—The Federal cochairperson shall not participate or vote in any decision under
subparagraph (A).
‘‘(C) DELINQUENT STATES.—If a State is delinquent in
payment of the State’s share of administrative expenses
of the Authority under this subsection—
‘‘(i) no assistance under this subtitle shall be furnished to the State (including assistance to a political
subdivision or a resident of the State); and
‘‘(ii) no member of the Authority from the State
shall participate or vote in any action by the Authority.
‘‘(h) COMPENSATION.—
‘‘(1) FEDERAL COCHAIRPERSON.—The Federal cochairperson
shall be compensated by the Federal Government at level III
of the Executive Schedule in subchapter II of chapter 53 of
title 5, United States Code.
‘‘(2) ALTERNATE FEDERAL COCHAIRPERSON.—The alternate
Federal cochairperson—
‘‘(A) shall be compensated by the Federal Government
at level V of the Executive Schedule described in paragraph
(1); and
‘‘(B) when not actively serving as an alternate for the
Federal cochairperson, shall perform such functions and
duties as are delegated by the Federal cochairperson.
‘‘(3) STATE MEMBERS AND ALTERNATES.—
‘‘(A) IN GENERAL.—A State shall compensate each member and alternate representing the State on the Authority
at the rate established by law of the State.
‘‘(B) NO ADDITIONAL COMPENSATION.—No State member
or alternate member shall receive any salary, or any contribution to or supplementation of salary from any source
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114 STAT. 2763A–273
other than the State for services provided by the member
or alternate to the Authority.
‘‘(4) DETAILED EMPLOYEES.—
‘‘(A) IN GENERAL.—No person detailed to serve the
Authority under subsection (e)(6) shall receive any salary
or any contribution to or supplementation of salary for
services provided to the Authority from—
‘‘(i) any source other than the State, local, or intergovernmental department or agency from which the
person was detailed; or
‘‘(ii) the Authority.
‘‘(B) VIOLATION.—Any person that violates this paragraph shall be fined not more than $5,000, imprisoned
not more than 1 year, or both.
‘‘(C) APPLICABLE LAW.—The Federal cochairperson, the
alternate Federal cochairperson, and any Federal officer
or employee detailed to duty on the Authority under subsection (e)(5) shall not be subject to subparagraph (A),
but shall remain subject to sections 202 through 209 of
title 18, United States Code.
‘‘(5) ADDITIONAL PERSONNEL.—
‘‘(A) COMPENSATION.—
‘‘(i) IN GENERAL.—The Authority may appoint and
fix the compensation of an executive director and such
other personnel as are necessary to enable the Authority to carry out the duties of the Authority.
‘‘(ii) EXCEPTION.—Compensation under clause (i)
shall not exceed the maximum rate for the Senior
Executive Service under section 5382 of title 5, United
States Code, including any applicable locality-based
comparability payment that may be authorized under
section 5304(h)(2)(C) of that title.
‘‘(B) EXECUTIVE DIRECTOR.—The executive director
shall be responsible for—
‘‘(i) the carrying out of the administrative duties
of the Authority;
‘‘(ii) direction of the Authority staff; and
‘‘(iii) such other duties as the Authority may
assign.
‘‘(C) NO FEDERAL EMPLOYEE STATUS.—No member,
alternate, officer, or employee of the Authority (except the
Federal cochairperson of the Authority, the alternate and
staff for the Federal cochairperson, and any Federal
employee detailed to the Authority under subsection (e)(5))
shall be considered to be a Federal employee for any purpose.
‘‘(i) CONFLICTS OF INTEREST.—
‘‘(1) IN GENERAL.—Except as provided under paragraph
(2), no State member, alternate, officer, or employee of the
Authority shall participate personally and substantially as a
member, alternate, officer, or employee of the Authority,
through decision, approval, disapproval, recommendation, the
rendering of advice, investigation, or otherwise, in any proceeding, application, request for a ruling or other determination,
contract, claim, controversy, or other matter in which, to knowledge of the member, alternate, officer, or employee—
‘‘(A) the member, alternate, officer, or employee;
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114 STAT. 2763A–274
PUBLIC LAW 106–554—APPENDIX D
‘‘(B) the spouse, minor child, partner, or organization
(other than a State or political subdivision of the State)
of the member, alternate, officer, or employee, in which
the member, alternate, officer, or employee is serving as
officer, director, trustee, partner, or employee; or
‘‘(C) any person or organization with whom the member, alternate, officer, or employee is negotiating or has
any arrangement concerning prospective employment;
has a financial interest.
‘‘(2) DISCLOSURE.—Paragraph (1) shall not apply if the
State member, alternate, officer, or employee—
‘‘(A) immediately advises the Authority of the nature
and circumstances of the proceeding, application, request
for a ruling or other determination, contract, claim, controversy, or other particular matter presenting a potential
conflict of interest;
‘‘(B) makes full disclosure of the financial interest;
and
‘‘(C) before the proceeding concerning the matter
presenting the conflict of interest, receives a written determination by the Authority that the interest is not so
substantial as to be likely to affect the integrity of the
services that the Authority may expect from the State
member, alternate, officer, or employee.
‘‘(3) VIOLATION.—Any person that violates this subsection
shall be fined not more than $10,000, imprisoned not more
than 2 years, or both.
‘‘( j) VALIDITY OF CONTRACTS, LOANS, AND GRANTS.—The
Authority may declare void any contract, loan, or grant of or by
the Authority in relation to which the Authority determines that
there has been a violation of any provision under subsection (h)(4),
subsection (i), or sections 202 through 209 of title 18, United States
Code.
‘‘SEC. 382C. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.
‘‘(a) IN GENERAL.—The Authority may approve grants to States
and public and nonprofit entities for projects, approved in accordance with section 382I—
‘‘(1) to develop the transportation infrastructure of the
region for the purpose of facilitating economic development
in the region (except that grants for this purpose may only
be made to a State or local government);
‘‘(2) to assist the region in obtaining the job training,
employment-related education, and business development (with
an emphasis on entrepreneurship) that are needed to build
and maintain strong local economies;
‘‘(3) to provide assistance to severely distressed and underdeveloped areas that lack financial resources for improving
basic public services;
‘‘(4) to provide assistance to severely distressed and underdeveloped areas that lack financial resources for equipping
industrial parks and related facilities; and
‘‘(5) to otherwise achieve the purposes of this subtitle.
‘‘(b) FUNDING.—
‘‘(1) IN GENERAL.—Funds for grants under subsection (a)
may be provided—
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–275
‘‘(A) entirely from appropriations to carry out this section;
‘‘(B) in combination with funds available under another
Federal or Federal grant program; or
‘‘(C) from any other source.
‘‘(2) PRIORITY OF FUNDING.—To best build the foundations
for long-term economic development and to complement other
Federal and State resources in the region, Federal funds available under this subtitle shall be focused on the activities in
the following order or priority:
‘‘(A) Basic public infrastructure in distressed counties
and isolated areas of distress.
‘‘(B) Transportation infrastructure for the purpose of
facilitating economic development in the region.
‘‘(C) Business development, with emphasis on
entrepreneurship.
‘‘(D) Job training or employment-related education,
with emphasis on use of existing public educational institutions located in the region.
‘‘(3) FEDERAL SHARE IN GRANT PROGRAMS.—Notwithstanding any provision of law limiting the Federal share in any
grant program, funds appropriated to carry out this section
may be used to increase a Federal share in a grant program,
as the Authority determines appropriate.
‘‘SEC. 382D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.
‘‘(a) FINDING.—Congress finds that certain States and local
communities of the region, including local development districts,
may be unable to take maximum advantage of Federal grant programs for which the States and communities are eligible because—
‘‘(1) they lack the economic resources to meet the required
matching share; or
‘‘(2) there are insufficient funds available under the
applicable Federal grant law authorizing the program to meet
pressing needs of the region.
‘‘(b) FEDERAL GRANT PROGRAM FUNDING.—In accordance with
subsection (c), the Federal cochairperson may use amounts made
available to carry out this subtitle, without regard to any limitations
on areas eligible for assistance or authorizations for appropriation
under any other Act, to fund all or any portion of the basic Federal
contribution to a project or activity under a Federal grant program
in the region in an amount that is above the fixed maximum
portion of the cost of the project otherwise authorized by applicable
law, but not to exceed 90 percent of the costs of the project (except
as provided in section 382F(b)).
‘‘(c) CERTIFICATION.—
‘‘(1) IN GENERAL.—In the case of any program or project
for which all or any portion of the basic Federal contribution
to the project under a Federal grant program is proposed to
be made under this section, no Federal contribution shall be
made until the Federal official administering the Federal law
authorizing the contribution certifies that the program or
project—
‘‘(A) meets the applicable requirements of the
applicable Federal grant law; and
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114 STAT. 2763A–276
PUBLIC LAW 106–554—APPENDIX D
‘‘(B) could be approved for Federal contribution under
the law if funds were available under the law for the
program or project.
‘‘(2) CERTIFICATION BY AUTHORITY.—
‘‘(A) IN GENERAL.—The certifications and determinations required to be made by the Authority for approval
of projects under this subtitle in accordance with section
382I—
‘‘(i) shall be controlling; and
‘‘(ii) shall be accepted by the Federal agencies.
‘‘(B) ACCEPTANCE BY FEDERAL COCHAIRPERSON.—Any
finding, report, certification, or documentation required to
be submitted to the head of the department, agency, or
instrumentality of the Federal Government responsible for
the administration of any Federal grant program shall
be accepted by the Federal cochairperson with respect to
a supplemental grant for any project under the program.
‘‘SEC. 382E. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND
ADMINISTRATIVE EXPENSES.
‘‘(a) DEFINITION OF LOCAL DEVELOPMENT DISTRICT.—In this
section, the term ‘local development district’ means an entity that—
‘‘(1) is—
‘‘(A) a planning district in existence on the date of
enactment of this subtitle that is recognized by the Economic Development Administration of the Department of
Commerce; or
‘‘(B) where an entity described in subparagraph (A)
does not exist—
‘‘(i) organized and operated in a manner that
ensures broad-based community participation and an
effective opportunity for other nonprofit groups to
contribute to the development and implementation of
programs in the region;
‘‘(ii) governed by a policy board with at least a
simple majority of members consisting of elected officials or employees of a general purpose unit of local
government who have been appointed to represent the
government;
‘‘(iii) certified to the Authority as having a charter
or authority that includes the economic development
of counties or parts of counties or other political subdivisions within the region—
‘‘(I) by the Governor of each State in which
the entity is located; or
‘‘(II) by the State officer designated by the
appropriate State law to make the certification;
and
‘‘(iv)(I) a nonprofit incorporated body organized or chartered under the law of the State in which the entity is
located;
‘‘(II) a nonprofit agency or instrumentality of a State
or local government;
‘‘(III) a public organization established before the date
of enactment of this subtitle under State law for creation
of multi-jurisdictional, area-wide planning organizations;
or
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PUBLIC LAW 106–554—APPENDIX D
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‘‘(IV) a nonprofit association or combination of bodies,
agencies, and instrumentalities described in subclauses (I)
through (III); and
‘‘(2) has not, as certified by the Federal cochairperson—
‘‘(A) inappropriately used Federal grant funds from
any Federal source; or
‘‘(B) appointed an officer who, during the period in
which another entity inappropriately used Federal grant
funds from any Federal source, was an officer of the other
entity.
‘‘(b) GRANTS TO LOCAL DEVELOPMENT DISTRICTS.—
‘‘(1) IN GENERAL.—The Authority may make grants for
administrative expenses under this section.
‘‘(2) CONDITIONS FOR GRANTS.—
‘‘(A) MAXIMUM AMOUNT.—The amount of any grant
awarded under paragraph (1) shall not exceed 80 percent
of the administrative expenses of the local development
district receiving the grant.
‘‘(B) MAXIMUM PERIOD.—No grant described in paragraph (1) shall be awarded to a State agency certified
as a local development district for a period greater than
3 years.
‘‘(C) LOCAL SHARE.—The contributions of a local
development district for administrative expenses may be
in cash or in kind, fairly evaluated, including space, equipment, and services.
‘‘(c) DUTIES OF LOCAL DEVELOPMENT DISTRICTS.—A local
development district shall—
‘‘(1) operate as a lead organization serving multicounty
areas in the region at the local level; and
‘‘(2) serve as a liaison between State and local governments,
nonprofit organizations (including community-based groups and
educational institutions), the business community, and citizens
that—
‘‘(A) are involved in multijurisdictional planning;
‘‘(B) provide technical assistance to local jurisdictions
and potential grantees; and
‘‘(C) provide leadership and civic development assistance.
‘‘SEC. 382F. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED
COUNTIES.
‘‘(a) DESIGNATIONS.—Not later than 90 days after the date
of enactment of this subtitle, and annually thereafter, the Authority,
in accordance with such criteria as the Authority may establish,
shall designate—
‘‘(1) as distressed counties, counties in the region that
are the most severely and persistently distressed and underdeveloped and have high rates of poverty or unemployment;
‘‘(2) as nondistressed counties, counties in the region that
are not designated as distressed counties under paragraph (1);
and
‘‘(3) as isolated areas of distress, areas located in nondistressed counties (as designated under paragraph (2)) that have
high rates of poverty or unemployment.
‘‘(b) DISTRESSED COUNTIES.—
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114 STAT. 2763A–278
PUBLIC LAW 106–554—APPENDIX D
‘‘(1) IN GENERAL.—The Authority shall allocate at least
75 percent of the appropriations made available under section
382M for programs and projects designed to serve the needs
of distressed counties and isolated areas of distress in the
region.
‘‘(2) FUNDING LIMITATIONS.—The funding limitations under
section 382D(b) shall not apply to a project providing transportation or basic public services to residents of one or more
distressed counties or isolated areas of distress in the region.
‘‘(c) NONDISTRESSED COUNTIES.—
‘‘(1) IN GENERAL.—Except as provided in this subsection,
no funds shall be provided under this subtitle for a project
located in a county designated as a nondistressed county under
subsection (a)(2).
‘‘(2) EXCEPTIONS.—
‘‘(A) IN GENERAL.—The funding prohibition under paragraph (1) shall not apply to grants to fund the administrative expenses of local development districts under section
382E(b).
‘‘(B) MULTICOUNTY PROJECTS.—The Authority may
waive the application of the funding prohibition under paragraph (1) to—
‘‘(i) a multicounty project that includes participation by a nondistressed county; or
‘‘(ii) any other type of project;
if the Authority determines that the project could bring
significant benefits to areas of the region outside a nondistressed county.
‘‘(C) ISOLATED AREAS OF DISTRESS.—For a designation
of an isolated area of distress for assistance to be effective,
the designation shall be supported—
‘‘(i) by the most recent Federal data available;
or
‘‘(ii) if no recent Federal data are available, by
the most recent data available through the government
of the State in which the isolated area of distress
is located.
‘‘(d) TRANSPORTATION AND BASIC PUBLIC INFRASTRUCTURE.—
The Authority shall allocate at least 50 percent of any funds made
available under section 382M for transportation and basic public
infrastructure projects authorized under paragraphs (1) and (3)
of section 382C(a).
‘‘SEC. 382G. DEVELOPMENT PLANNING PROCESS.
‘‘(a) STATE DEVELOPMENT PLAN.—In accordance with policies
established by the Authority, each State member shall submit a
development plan for the area of the region represented by the
State member.
‘‘(b) CONTENT OF PLAN.—A State development plan submitted
under subsection (a) shall reflect the goals, objectives, and priorities
identified in the regional development plan developed under section
382B(d)(2).
‘‘(c) CONSULTATION WITH INTERESTED LOCAL PARTIES.—In
carrying out the development planning process (including the selection of programs and projects for assistance), a State may—
‘‘(1) consult with—
‘‘(A) local development districts; and
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PUBLIC LAW 106–554—APPENDIX D
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‘‘(B) local units of government; and
‘‘(2) take into consideration the goals, objectives, priorities,
and recommendations of the entities described in paragraph
(1).
‘‘(d) PUBLIC PARTICIPATION.—
‘‘(1) IN GENERAL.—The Authority and applicable State and
local development districts shall encourage and assist, to the
maximum extent practicable, public participation in the
development, revision, and implementation of all plans and
programs under this subtitle.
‘‘(2) REGULATIONS.—The Authority shall develop guidelines
for providing public participation described in paragraph (1),
including public hearings.
‘‘SEC. 382H. PROGRAM DEVELOPMENT CRITERIA.
‘‘(a) IN GENERAL.—In considering programs and projects to
be provided assistance under this subtitle, and in establishing a
priority ranking of the requests for assistance provided by the
Authority, the Authority shall follow procedures that ensure, to
the maximum extent practicable, consideration of—
‘‘(1) the relationship of the project or class of projects to
overall regional development;
‘‘(2) the per capita income and poverty and unemployment
rates in an area;
‘‘(3) the financial resources available to the applicants for
assistance seeking to carry out the project, with emphasis on
ensuring that projects are adequately financed to maximize
the probability of successful economic development;
‘‘(4) the importance of the project or class of projects in
relation to other projects or classes of projects that may be
in competition for the same funds;
‘‘(5) the prospects that the project for which assistance
is sought will improve, on a continuing rather than a temporary
basis, the opportunities for employment, the average level of
income, or the economic development of the area served by
the project; and
‘‘(6) the extent to which the project design provides for
detailed outcome measurements by which grant expenditures
and the results of the expenditures may be evaluated.
‘‘(b) NO RELOCATION ASSISTANCE.—No financial assistance
authorized by this subtitle shall be used to assist a person or
entity in relocating from one area to another, except that financial
assistance may be used as otherwise authorized by this title to
attract businesses from outside the region to the region.
‘‘(c) REDUCTION OF FUNDS.—Funds may be provided for a program or project in a State under this subtitle only if the Authority
determines that the level of Federal or State financial assistance
provided under a law other than this subtitle, for the same type
of program or project in the same area of the State within the
region, will not be reduced as a result of funds made available
by this subtitle.
‘‘SEC. 382I. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.
‘‘(a) IN GENERAL.—A State or regional development plan or
any multistate subregional plan that is proposed for development
under this subtitle shall be reviewed by the Authority.
‘‘(b) EVALUATION BY STATE MEMBER.—An application for a grant
or any other assistance for a project under this subtitle shall be
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PUBLIC LAW 106–554—APPENDIX D
made through and evaluated for approval by the State member
of the Authority representing the applicant.
‘‘(c) CERTIFICATION.—An application for a grant or other assistance for a project shall be approved only on certification by the
State member that the application for the project—
‘‘(1) describes ways in which the project complies with
any applicable State development plan;
‘‘(2) meets applicable criteria under section 382H;
‘‘(3) provides adequate assurance that the proposed project
will be properly administered, operated, and maintained; and
‘‘(4) otherwise meets the requirements of this subtitle.
‘‘(d) VOTES FOR DECISIONS.—On certification by a State member
of the Authority of an application for a grant or other assistance
for a specific project under this section, an affirmative vote of
the Authority under section 382B(c) shall be required for approval
of the application.
‘‘SEC. 382J. CONSENT OF STATES.
‘‘Nothing in this subtitle requires any State to engage in or
accept any program under this subtitle without the consent of
the State.
‘‘SEC. 382K. RECORDS.
‘‘(a) RECORDS OF THE AUTHORITY.—
‘‘(1) IN GENERAL.—The Authority shall maintain accurate
and complete records of all transactions and activities of the
Authority.
‘‘(2) AVAILABILITY.—All records of the Authority shall be
available for audit and examination by the Comptroller General
of the United States and the Inspector General of the Department of Agriculture (including authorized representatives of
the Comptroller General and the Inspector General of the
Department of Agriculture).
‘‘(b) RECORDS OF RECIPIENTS OF FEDERAL ASSISTANCE.—
‘‘(1) IN GENERAL.—A recipient of Federal funds under this
subtitle shall, as required by the Authority, maintain accurate
and complete records of transactions and activities financed
with Federal funds and report on the transactions and activities
to the Authority.
‘‘(2) AVAILABILITY.—All records required under paragraph
(1) shall be available for audit by the Comptroller General
of the United States, the Inspector General of the Department
of Agriculture, and the Authority (including authorized representatives of the Comptroller General, the Inspector General
of the Department of Agriculture, and the Authority).
‘‘(c) ANNUAL AUDIT.—The Inspector General of the Department
of Agriculture shall audit the activities, transactions, and records
of the Authority on an annual basis.
‘‘SEC. 382L. ANNUAL REPORT.
‘‘Not later than 180 days after the end of each fiscal year,
the Authority shall submit to the President and to Congress a
report describing the activities carried out under this subtitle.
‘‘SEC. 382M. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There is authorized to be appropriated to
the Authority to carry out this subtitle $30,000,000 for each of
fiscal years 2001 through 2002, to remain available until expended.
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114 STAT. 2763A–281
‘‘(b) ADMINISTRATIVE EXPENSES.—Not more than 5 percent of
the amount appropriated under subsection (a) for a fiscal year
shall be used for administrative expenses of the Authority.
‘‘SEC. 382N. TERMINATION OF AUTHORITY.
‘‘This subtitle and the authority provided under this subtitle
expire on October 1, 2002.’’.
SEC. 504. AREA COVERED BY LOWER MISSISSIPPI DELTA DEVELOPMENT COMMISSION.
(a) IN GENERAL.—Section 4(2)(D) of the Delta Development
Act (42 U.S.C. 3121 note; 102 Stat. 2246) is amended by inserting
‘‘Natchitoches,’’ after ‘‘Winn,’’.
(b) CONFORMING AMENDMENT.—The matter under the heading
‘‘SALARIES AND EXPENSES’’ under the heading ‘‘FARMERS HOME
ADMINISTRATION’’ in title II of Public Law 100–460 (102 Stat. 2246)
is amended in the fourth proviso by striking ‘‘carry out’’ and all
that follows through ‘‘bills are hereby’’ and inserting ‘‘carry out
S. 2836, the Delta Development Act, as introduced in the Senate
on September 27, 1988, and that bill is’’.
TITLE VI—DAKOTA WATER RESOURCES ACT OF 2000
SEC. 601. SHORT TITLE.
This title may be cited as the ‘‘Dakota Water Resources Act
of 2000’’.
SEC. 602. PURPOSES AND AUTHORIZATION.
Section 1 of Public Law 89–108 (79 Stat. 433; 100 Stat. 418)
is amended—
(1) in subsection (a)—
(A) in paragraph (2), by striking ‘‘of’’ and inserting
‘‘within’’;
(B) in paragraph (5), by striking ‘‘more timely’’ and
inserting ‘‘appropriate’’; and
(C) in paragraph (7), by striking ‘‘federally-assisted
water resource development project providing irrigation for
130,940 acres of land’’ and inserting ‘‘multipurpose federally assisted water resource project providing irrigation,
municipal, rural, and industrial water systems, fish, wildlife, and other natural resource conservation and development, recreation, flood control, ground water recharge, and
augmented stream flows’’;
(2) in subsection (b)—
(A) by inserting ‘‘, jointly with the State of North
Dakota,’’ after ‘‘construct’’;
(B) by striking ‘‘the irrigation of 130,940 acres’’ and
inserting ‘‘irrigation’’;
(C) by striking ‘‘fish and wildlife conservation’’ and
inserting ‘‘fish, wildlife, and other natural resource conservation’’;
(D) by inserting ‘‘augmented stream flows, ground
water recharge,’’ after ‘‘flood control,’’; and
(E) by inserting ‘‘(as modified by the Dakota Water
Resources Act of 2000)’’ before the period at the end;
(3) in subsection (e), by striking ‘‘terminated’’ and all that
follows and inserting ‘‘terminated.’’; and
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114 STAT. 2763A–282
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(4) by striking subsections (f ) and (g) and inserting the
following:
‘‘(f ) COSTS.—
‘‘(1) ESTIMATE.—The Secretary shall estimate—
‘‘(A) the actual construction costs of the facilities
(including mitigation facilities) in existence as of the date
of enactment of the Dakota Water Resources Act of 2000;
and
‘‘(B) the annual operation, maintenance, and replacement costs associated with the used and unused capacity
of the features in existence as of that date.
‘‘(2) REPAYMENT CONTRACT.—An appropriate repayment
contract shall be negotiated that provides for the making of
a payment for each payment period in an amount that is
commensurate with the percentage of the total capacity of
the project that is in actual use during the payment period.
‘‘(3) OPERATION AND MAINTENANCE COSTS.—Except as otherwise provided in this Act or Reclamation Law—
‘‘(A) The Secretary shall be responsible for the costs
of operation and maintenance of the proportionate share
of unit facilities in existence on the date of enactment
of the Dakota Water Resources Act of 2000 attributable
to the capacity of the facilities (including mitigation facilities) that remain unused;
‘‘(B) The State of North Dakota shall be responsible
for costs of operation and maintenance of the proportionate
share of existing unit facilities that are used and shall
be responsible for the full costs of operation and maintenance of any facility constructed after the date of enactment
of the Dakota Water Resources Act of 2000; and
‘‘(C) The State of North Dakota shall be responsible
for the costs of providing energy to authorized unit facilities.
‘‘(g) AGREEMENT BETWEEN THE SECRETARY AND THE STATE.—
The Secretary shall enter into one or more agreements with the
State of North Dakota to carry out this Act, including operation
and maintenance of the completed unit facilities and the design
and construction of authorized new unit facilities by the State.
‘‘(h) BOUNDARY WATERS TREATY OF 1909.—
‘‘(1) DELIVERY OF WATER INTO THE HUDSON BAY BASIN.—
Prior to construction of any water systems authorized under
this Act to deliver Missouri River water into the Hudson Bay
basin, the Secretary, in consultation with the Secretary of State
and the Administrator of the Environmental Protection Agency,
must determine that adequate treatment can be provided to
meet the requirements of the Treaty between the United States
and Great Britain relating to Boundary Waters Between the
United States and Canada, signed at Washington, January
11, 1909 (26 Stat. 2448; TS 548) (commonly known as the
Boundary Waters Treaty of 1909).
‘‘(2) COSTS.—All costs of construction, operation, maintenance, and replacement of water treatment and related facilities
authorized by this Act and attributable to meeting the requirements of the treaty referred to in paragraph (1) shall be nonreimbursable.’’.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–283
SEC. 603. FISH AND WILDLIFE.
Section 2 of Public Law 89–108 (79 Stat. 433; 100 Stat. 419)
is amended—
(1) by striking subsections (b), (c), and (d) and inserting
the following:
‘‘(b) FISH AND WILDLIFE COSTS.—All fish and wildlife enhancement costs incurred in connection with waterfowl refuges, waterfowl
production areas, and wildlife conservation areas proposed for Federal or State administration shall be nonreimbursable.
‘‘(c) RECREATION AREAS.—
‘‘(1) COSTS.—If non-Federal public bodies continue to agree
to administer land and water areas approved for recreation
and agree to bear not less than 50 percent of the separable
costs of the unit allocated to recreation and attributable to
those areas and all the costs of operation, maintenance, and
replacement incurred in connection therewith, the remainder
of the separable capital costs so allocated and attributed shall
be nonreimbursable.
‘‘(2) APPROVAL.—The recreation areas shall be approved
by the Secretary in consultation and coordination with the
State of North Dakota.
‘‘(d) NON-FEDERAL SHARE.—The non-Federal share of the separable capital costs of the unit allocated to recreation shall be borne
by non-Federal interests, using the following methods, as the Secretary may determine to be appropriate:
‘‘(1) Services in kind.
‘‘(2) Payment, or provision of lands, interests therein, or
facilities for the unit.
‘‘(3) Repayment, with interest, within 50 years of first
use of unit recreation facilities.’’;
(2) in subsection (e)—
(A) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively;
(B) by inserting ‘‘(1)’’ after ‘‘(e)’’;
(C) in paragraph (2) (as redesignated by subparagraph
(A))—
(i) in the first sentence—
(I) by striking ‘‘within ten years after initial
unit operation to administer for recreation and
fish and wildlife enhancement’’ and inserting ‘‘to
administer for recreation’’; and
(II) by striking ‘‘which are not included within
Federal waterfowl refuges and waterfowl production areas’’; and
(ii) in the second sentence, by striking ‘‘or fish
and wildlife enhancement’’; and
(D) in the first sentence of paragraph (3) (as redesignated by subparagraph (A))—
(i) by striking ‘‘, within ten years after initial operation of the unit,’’; and
(ii) by striking ‘‘paragraph (1) of this subsection’’
and inserting ‘‘paragraph (2)’’;
(3) in subsection (f ), by striking ‘‘and fish and wildlife
enhancement’’; and
(4) in subsection ( j)—
(A) in paragraph (1), by striking ‘‘prior to the completion of construction of Lonetree Dam and Reservoir’’; and
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114 STAT. 2763A–284
PUBLIC LAW 106–554—APPENDIX D
(B) by adding at the end the following:
‘‘(4) TAAYER RESERVOIR.—Taayer Reservoir is deauthorized
as a project feature. The Secretary, acting through the Commissioner of Reclamation, shall acquire (including acquisition
through donation or exchange) up to 5,000 acres in the Kraft
and Pickell Slough areas and to manage the area as a component of the National Wildlife Refuge System giving consideration to the unique wildlife values of the area. In acquiring
the lands which comprise the Kraft and Pickell Slough complex,
the Secretary shall acquire wetlands in the immediate vicinity
which may be hydrologically related and nearby uplands as
may be necessary to provide for proper management of the
complex. The Secretary shall provide for appropriate visitor
access and control at the refuge.
‘‘(5) DEAUTHORIZATION OF LONETREE DAM AND RESERVOIR.—
The Lonetree Dam and Reservoir is deauthorized, and the
Secretary shall designate the lands acquired for the former
reservoir site as a wildlife conservation area. The Secretary
shall enter into an agreement with the State of North Dakota
providing for the operation and maintenance of the wildlife
conservation area as an enhancement feature, the costs of
which shall be paid by the Secretary.’’.
SEC. 604. INTEREST CALCULATION.
Section 4 of Public Law 89–108 (100 Stat. 435) is amended
by adding at the end the following: ‘‘Interest during construction
shall be calculated only until such date as the Secretary declares
any particular feature to be substantially complete, regardless of
whether the feature is placed into service.’’.
SEC. 605. IRRIGATION FACILITIES.
Section 5 of Public Law 89–108 (100 Stat. 419) is amended—
(1) by striking ‘‘SEC. 5. (a)(1)’’ and all that follows through
subsection (c) and inserting the following:
‘‘SEC. 5. IRRIGATION FACILITIES.
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORIZED DEVELOPMENT.—In addition to the 5,000acre Oakes Test Area in existence on the date of enactment
of the Dakota Water Resources Act of 2000, the Secretary
may develop irrigation in—
‘‘(A) the Turtle Lake service area (13,700 acres);
‘‘(B) the McClusky Canal service area (10,000 acres);
and
‘‘(C) if the investment costs are fully reimbursed without aid to irrigation from the Pick-Sloan Missouri Basin
Program, the New Rockford Canal service area (1,200
acres).
‘‘(2) DEVELOPMENT NOT AUTHORIZED.—None of the irrigation authorized by this section may be developed in the Hudson
Bay/Devils Lake Basin.
‘‘(3) NO EXCESS DEVELOPMENT.—The Secretary shall not
develop irrigation in the service areas described in paragraph
(1) in excess of the acreage specified in that paragraph, except
that the Secretary shall develop up to 28,000 acres of irrigation
in other areas of North Dakota (such as the Elk/Charbonneau,
Mon-Dak, Nesson Valley, Horsehead Flats, and Oliver-Mercer
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–285
areas) that are not located in the Hudson Bay/Devils Lake
drainage basin or James River drainage basin.
‘‘(4) PUMPING POWER.—Irrigation development authorized
by this section shall be considered authorized units of the
Pick-Sloan Missouri Basin Program and eligible to receive
project pumping power.
‘‘(5) PRINCIPAL SUPPLY WORKS.—The Secretary shall maintain the Snake Creek Pumping Plant, New Rockford Canal,
and McClusky Canal features of the principal supply works.
Subject to the provisions of section (8) of this Act, the Secretary
shall select a preferred alternative to implement the Dakota
Water Resources Act of 2000. In making this selection, one
of the alternatives the Secretary shall consider is whether
to connect the principal supply works in existence on the date
of enactment.’’;
(2) by redesignating subsections (d), (e), and (f ) as subsections (b), (c), and (d), respectively;
(3) in the first sentence of subsection (b) (as redesignated
by paragraph (2)), by striking ‘‘(a)(1)’’ and inserting ‘‘(a)’’;
(4) in the first sentence of subsection (c) (as redesignated
by paragraph (2)), by striking ‘‘Lucky Mound (7,700 acres),
Upper Six Mile Creek (7,500 acres)’’ and inserting ‘‘Lucky
Mound (7,700 acres) and Upper Six Mile Creek (7,500 acres),
or such other lands at Fort Berthold of equal acreage as may
be selected by the tribe and approved by the Secretary,’’; and
(5) by adding at the end the following:
‘‘(e) IRRIGATION REPORT TO CONGRESS.—
‘‘(1) IN GENERAL.—The Secretary shall investigate and prepare a detailed report on the undesignated 28,000 acres in
subsection (a)(3) as to costs and benefits for any irrigation
units to be developed under Reclamation law.
‘‘(2) FINDING.—The report shall include a finding on the
economic, financial and engineering feasibility of the proposed
irrigation unit, but shall be limited to the undesignated 28,000
acres.
‘‘(3) AUTHORIZATION.—If the Secretary finds that the proposed construction is feasible, such irrigation units are authorized without further Act of Congress.
‘‘(4) DOCUMENTATION.—No expenditure for the construction
of facilities authorized under this section shall be made until
after the Secretary, in cooperation with the State of North
Dakota, has prepared the appropriate documentation in accordance with section 1 and pursuant to the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) analyzing
the direct and indirect impacts of implementing the report.’’.
SEC. 606. POWER.
Section 6 of Public Law 89–108 (79 Stat. 435; 100 Stat. 421)
is amended—
(1) in subsection (b)—
(A) by striking ‘‘Notwithstanding the provisions of’’
and inserting ‘‘Pursuant to the provisions of’’; and
(B) by striking ‘‘revenues,’’ and all that follows and
inserting ‘‘revenues.’’; and
(2) by striking subsection (c) and inserting the following:
‘‘(c) NO INCREASE IN RATES OR EFFECT ON REPAYMENT METHODOLOGY.—In accordance with the last sentence of section 302(a)(3)
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114 STAT. 2763A–286
PUBLIC LAW 106–554—APPENDIX D
of the Department of Energy Organization Act (42 U.S.C.
7152(a)(3)), section 1(e) shall not result in any reallocation of project
costs and shall not result in increased rates to Pick-Sloan Missouri
Basin Program customers. Nothing in the Dakota Water Resources
Act of 2000 alters or affects in any way the repayment methodology
in effect as of the date of enactment of that Act for other features
of the Pick-Sloan Missouri Basin Program.’’.
SEC. 607. MUNICIPAL, RURAL, AND INDUSTRIAL WATER SERVICE.
Section 7 of Public Law 89–108 (100 Stat. 422) is amended—
(1) in subsection (a)(3)—
(A) in the second sentence—
(i) by striking ‘‘The non-Federal share’’ and inserting ‘‘Unless otherwise provided in this Act, the nonFederal share’’;
(ii) by striking ‘‘each water system’’ and inserting
‘‘water systems’’;
(iii) by inserting after the second sentence the
following: ‘‘The State may use the Federal and nonFederal funds to provide grants or loans for municipal,
rural, and industrial water systems. The State shall
use the proceeds of repaid loans for municipal, rural,
and industrial water systems. Proceeds from loan
repayments and any interest thereon shall be treated
as Federal funds.’’; and
(iv) by striking the last sentence and inserting
the following: ‘‘The Southwest Pipeline Project, the
Northwest Area Water Supply Project, the Red River
Valley Water Supply Project, and other municipal,
industrial, and rural water systems in the State of
North Dakota shall be eligible for funding under the
terms of this section. Funding provided under this
section for the Red River Valley Water Supply Project
shall be in addition to funding for that project under
section 10(a)(1)(B). The amount of non-Federal contributions made after May 12, 1986, that exceeds the
25 percent requirement shall be credited to the State
for future use in municipal, rural, and industrial
projects under this section.’’; and
(2) by striking subsections (b), (c), and (d) and inserting
the following:
‘‘(b) WATER CONSERVATION PROGRAM.—The State of North
Dakota may use funds provided under subsections (a) and (b)(1)(A)
of section 10 to develop and implement a water conservation program. The Secretary and the State shall jointly establish water
conservation goals to meet the purposes of the State program and
to improve the availability of water supplies to meet the purposes
of this Act. If the State achieves the established water conservation
goals, the non-Federal cost share for future projects under subsection (a)(3) shall be reduced to 24.5 percent.
‘‘(c) NONREIMBURSABILITY OF COSTS.—With respect to the
Southwest Pipeline Project, the Northwest Area Water Supply
Project, the Red River Valley Water Supply Project, and other
municipal, industrial, and rural water systems in North Dakota,
the costs of the features constructed on the Missouri River by
the Secretary of the Army before the date of enactment of the
Dakota Water Resources Act of 2000 shall be nonreimbursable.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–287
‘‘(d) INDIAN MUNICIPAL RURAL AND INDUSTRIAL WATER
PLY.—The Secretary shall construct, operate, and maintain
SUPsuch
municipal, rural, and industrial water systems as the Secretary
determines to be necessary to meet the economic, public health,
and environmental needs of the Fort Berthold, Standing Rock,
Turtle Mountain (including the Trenton Indian Service Area), and
Fort Totten Indian Reservations and adjacent areas.’’.
SEC. 608. SPECIFIC FEATURES.
(a) SYKESTON CANAL.—Sykeston Canal is hereby deauthorized.
(b) IN GENERAL.—Public Law 89–108 (100 Stat. 423) is amended
by striking section 8 and inserting the following:
‘‘SEC. 8. SPECIFIC FEATURES.
‘‘(a) RED RIVER VALLEY WATER SUPPLY PROJECT.—
‘‘(1) IN GENERAL.—Subject to the requirements of this section, the Secretary shall construct a feature or features to
provide water to the Sheyenne River water supply and release
facility or such other feature or features as are selected under
subsection (d).
‘‘(2) DESIGN AND CONSTRUCTION.—The feature or features
shall be designed and constructed to meet only the following
water supply requirements as identified in the report prepared
pursuant to subsection (b) of this section: Municipal, rural,
and industrial water supply needs; ground water recharge;
and streamflow augmentation.
‘‘(3) COMMENCEMENT OF CONSTRUCTION.—(A) If the Secretary selects a project feature under this section that would
provide water from the Missouri River or its tributaries to
the Sheyenne River water supply and release facility or from
the Missouri River or its tributaries to such other conveyance
facility as the Secretary selects under this section, no later
than 90 days after the completion of the final environmental
impact statement, the Secretary shall transmit to Congress
a comprehensive report which provides—
‘‘(i) a detailed description of the proposed project feature;
‘‘(ii) a summary of major issues addressed in the
environmental impact statement;
‘‘(iii) likely effects, if any, on other States bordering
the Missouri River and on the State of Minnesota; and
‘‘(iv) a description of how the project feature complies
with the requirements of section 1(h)(1) of this Act (relating
to the Boundary Waters Treaty of 1909).
‘‘(B) No project feature or features that would provide water
from the Missouri River or its tributaries to the Sheyenne
River water supply and release facility or from the Missouri
River or its tributaries to such other conveyance facility as
the Secretary selects under this section shall be constructed
unless such feature is specifically authorized by an Act of
Congress approved subsequent to the Secretary’s transmittal
of the report required in subparagraph (A). If, after complying
with subsections (b) through (d) of this section, the Secretary
selects a feature or features using only in-basin sources of
water to meet the water needs of the Red River Valley identified
in subsection (b), such features are authorized without further
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114 STAT. 2763A–288
PUBLIC LAW 106–554—APPENDIX D
Act of Congress. The Act of Congress referred to in this subparagraph must be an authorization bill, and shall not be a bill
making appropriations.
‘‘(C) The Secretary may not commence construction on the
feature until a master repayment contract or water service
agreement consistent with this Act between the Secretary and
the appropriate non-Federal entity has been executed.
‘‘(b) REPORT ON RED RIVER VALLEY WATER NEEDS AND
OPTIONS.—
‘‘(1) IN GENERAL.—The Secretary of the Interior shall conduct a comprehensive study of the water quality and quantity
needs of the Red River Valley in North Dakota and possible
options for meeting those needs.
‘‘(2) NEEDS.—The needs addressed in the report shall
include such needs as—
‘‘(A) municipal, rural, and industrial water supplies;
‘‘(B) water quality;
‘‘(C) aquatic environment;
‘‘(D) recreation; and
‘‘(E) water conservation measures.
‘‘(3) PROCESS.—In conducting the study, the Secretary
through an open and public process shall solicit input from
gubernatorial designees from States that may be affected by
possible options to meet such needs as well as designees from
other Federal agencies with relevant expertise. For any option
that includes an out-of-basin solution, the Secretary shall consider the effect of the option on other States that may be
affected by such option, as well as other appropriate considerations. Upon completion, a draft of the study shall be provided
by the Secretary to such States and Federal agencies. Such
States and agencies shall be given not less than 120 days
to review and comment on the study method, findings and
conclusions leading to any alternative that may have an impact
on such States or on resources subject to such Federal agencies’
jurisdiction. The Secretary shall receive and take into consideration any such comments and produce a final report and transmit the final report to Congress.
‘‘(4) LIMITATION.—No design or construction of any feature
or features that facilitate an out-of-basin transfer from the
Missouri River drainage basin shall be authorized under the
provisions of this subsection.
‘‘(c) ENVIRONMENTAL IMPACT STATEMENT.—
‘‘(1) IN GENERAL.—Nothing in this section shall be construed to supersede any requirements under the National
Environmental Policy Act or the Administrative Procedures
Act.
‘‘(2) DRAFT.—
‘‘(A) DEADLINE.—Pursuant to an agreement between
the Secretary and State of North Dakota as authorized
under section 1(g), not later than 1 year after the date
of enactment of the Dakota Water Resources Act of 2000,
the Secretary and the State of North Dakota shall jointly
prepare and complete a draft environmental impact statement concerning all feasible options to meet the comprehensive water quality and quantity needs of the Red River
Valley and the options for meeting those needs, including
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–289
the delivery of Missouri River water to the Red River
Valley.
‘‘(B) REPORT ON STATUS.—If the Secretary and State
of North Dakota cannot prepare and complete the draft
environmental impact statement within 1 year after the
date of enactment of the Dakota Water Resources Act of
2000, the Secretary, in consultation and coordination with
the State of North Dakota, shall report to Congress on
the status of this activity, including an estimate of the
date of completion.
‘‘(3) FINAL.—
‘‘(A) DEADLINE.—Not later than 1 year after filing the
draft environmental impact statement, a final environmental impact statement shall be prepared and published.
‘‘(B) REPORT ON STATUS.—If the Secretary and State
of North Dakota cannot prepare and complete a final
environmental impact statement within 1 year of the
completion of the draft environmental impact statement,
the Secretary, in consultation and coordination with the
State of North Dakota, shall report to Congress on the
status of this activity, including an estimate of the date
of completion.
‘‘(d) PROCESS FOR SELECTION.—
‘‘(1) IN GENERAL.—After reviewing the final report required
by subsection (b)(1) and complying with subsection (c), the
Secretary, in consultation and coordination with the State of
North Dakota in coordination with affected local communities,
shall select one or more project features described in subsection
(a) that will meet the comprehensive water quality and quantity
needs of the Red River Valley. The Secretary’s selection of
an alternative shall be subject to judicial review.
‘‘(2) AGREEMENTS.—If the Secretary selects an option under
paragraph (1) that uses only in-basin sources of water, not
later than 180 days after the record of decision has been
executed, the Secretary shall enter into a cooperative agreement
with the State of North Dakota to construct the feature or
features selected. If the Secretary selects an option under paragraph (1) that would require a further act of Congress under
the provisions of subsection (a), not later than 180 days after
the date of enactment of legislation required under subsection
(a) the Secretary shall enter into a cooperative agreement with
the State of North Dakota to construct the feature or features
authorized by that legislation.
‘‘(e) SHEYENNE RIVER WATER SUPPLY AND RELEASE OR ALTERNATE FEATURES.—The Secretary shall construct, operate, and maintain a Sheyenne River water supply and release feature (including
a water treatment plant) capable of delivering 100 cubic feet per
second of water or any other amount determined in the reports
under this section, for the cities of Fargo and Grand Forks and
surrounding communities, or such other feature or features as
may be selected under subsection (d).
‘‘(f ) DEVILS LAKE.—No funds authorized under this Act may
be used to carry out the portion of the feasibility study of the
Devils Lake basin, North Dakota, authorized under the Energy
and Water Development Appropriations Act of 1993 (Public Law
102–377), that addresses the needs of the area for stabilized lake
levels through inlet controls, or to otherwise study any facility
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114 STAT. 2763A–290
PUBLIC LAW 106–554—APPENDIX D
or carry out any activity that would permit the transfer of water
from the Missouri River drainage basin into Devils Lake, North
Dakota.’’.
SEC. 609. OAKES TEST AREA TITLE TRANSFER.
Public Law 89–108 (100 Stat. 423) is amended by striking
section 9 and inserting the following:
‘‘SEC. 9. OAKES TEST AREA TITLE TRANSFER.
‘‘(a) IN GENERAL.—Not later than 2 years after execution of
a record of decision under section 8(d) on whether to use the
New Rockford Canal as a means of delivering water to the Red
River Basin as described in section 8, the Secretary shall enter
into an agreement with the State of North Dakota, or its designee,
to convey title and all or any rights, interests, and obligations
of the United States in and to the Oakes Test Area as constructed
and operated under Public Law 99–294 (100 Stat. 418) under such
terms and conditions as the Secretary believes would fully protect
the public interest.
‘‘(b) TERMS AND CONDITIONS.—The agreement shall define the
terms and conditions of the transfer of the facilities, lands, mineral
estate, easements, rights-of-way and water rights including the
avoidance of costs that the Federal Government would otherwise
incur in the case of a failure to agree under subsection (d).
‘‘(c) COMPLIANCE.—The action of the Secretary under this section shall comply with all applicable requirements of Federal, State,
and local law.
‘‘(d) FAILURE TO AGREE.—If an agreement is not reached within
the time limit specified in subsection (a), the Secretary shall dispose
of the Oakes Test Area facilities under the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 471 et seq.).’’.
SEC. 610. AUTHORIZATION OF APPROPRIATIONS.
Section 10 of Public Law 89–108 (100 Stat. 424; 106 Stat.
4669, 4739) is amended—
(1) in subsection (a)—
(A) by striking ‘‘(a)(1) There are authorized’’ and inserting the following:
‘‘(a) WATER DISTRIBUTION FEATURES.—
‘‘(1) IN GENERAL.—
‘‘(A) MAIN STEM SUPPLY WORKS.—There is authorized’’;
(B) in paragraph (1)—
(i) in the first sentence, by striking ‘‘$270,395,000
for carrying out the provisions of section 5(a) through
5(c) and section 8(a)(1) of this Act’’ and inserting
‘‘$164,000,000 to carry out section 5(a)’’;
(ii) by inserting after subparagraph (A) (as designated by clause (i)) the following:
‘‘(B) RED RIVER VALLEY WATER SUPPLY PROJECT.—There
is authorized to be appropriated to carry out section 8(a)(1)
$200,000,000.’’; and
(iii) by striking ‘‘Such sums’’ and inserting the
following:
‘‘(C) AVAILABILITY.—Such sums’’; and
(C) in paragraph (2)—
(i) by striking ‘‘(2) There is’’ and inserting the
following:
‘‘(2) INDIAN IRRIGATION.—
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114 STAT. 2763A–291
‘‘(A) IN GENERAL.—There is’’;
(ii) by striking ‘‘for carrying out section 5(e) of
this Act’’ and inserting ‘‘to carry out section 5(c)’’; and
(iii) by striking ‘‘Such sums’’ and inserting the
following:
‘‘(B) AVAILABILITY.—Such sums’’;
(2) in subsection (b)—
(A) by striking ‘‘(b)(1) There is’’ and inserting the following:
‘‘(b) MUNICIPAL, RURAL, AND INDUSTRIAL WATER SUPPLY.—
‘‘(1) STATEWIDE.—
‘‘(A) INITIAL AMOUNT.—There is’’;
(B) in paragraph (1)—
(i) by inserting before ‘‘Such sums’’ the following:
‘‘(B) ADDITIONAL AMOUNT.—In addition to the amount
under subparagraph (A), there is authorized to be appropriated to carry out section 7(a) $200,000,000.’’; and
(ii) by striking ‘‘Such sums’’ and inserting the following:
‘‘(C) AVAILABILITY.—Such sums’’; and
(C) in paragraph (2)—
(i) by striking ‘‘(2) There are authorized to be
appropriated $61,000,000’’ and all that follows through
‘‘Act.’’ and inserting the following:
‘‘(2) INDIAN MUNICIPAL, RURAL, AND INDUSTRIAL AND OTHER
DELIVERY FEATURES.—
‘‘(A) INITIAL AMOUNT.—There is authorized to be
appropriated—
‘‘(i) to carry out section 8(a)(1), $40,500,000; and
‘‘(ii) to carry out section 7(d), $20,500,000.’’;
(ii) by inserting before ‘‘Such sums’’ the following:
‘‘(B) ADDITIONAL AMOUNT.—
‘‘(i) IN GENERAL.—In addition to the amount under
subparagraph (A), there is authorized to be appropriated to carry out section 7(d) $200,000,000.
‘‘(ii) ALLOCATION.—The amount under clause (i)
shall be allocated as follows:
‘‘(I) $30,000,000 to the Fort Totten Indian Reservation.
‘‘(II) $70,000,000 to the Fort Berthold Indian
Reservation.
‘‘(IV) $80,000,000 to the Standing Rock Indian
Reservation.
‘‘(V) $20,000,000 to the Turtle Mountain
Indian Reservation.’’; and
(iii) by striking ‘‘Such sums’’ and inserting the
following:
‘‘(C) AVAILABILITY.—Such sums’’;
(3) in subsection (c)—
(A) by striking ‘‘(c) There is’’ and inserting the following:
‘‘(c) RESOURCES TRUST AND OTHER PROVISIONS.—
‘‘(1) INITIAL AMOUNT.—There is’’; and
(B) by striking the second and third sentences and
inserting the following:
‘‘(2) ADDITIONAL AMOUNT.—In addition to amount under
paragraph (1), there are authorized to be appropriated—
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114 STAT. 2763A–292
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‘‘(A) $6,500,000 to carry out recreational projects; and
‘‘(B) an additional $25,000,000 to carry out section
11;
to remain available until expended.
‘‘(3) RECREATIONAL PROJECTS.—Of the funds authorized
under paragraph (2) for recreational projects, up to $1,500,000
may be used to fund a wetland interpretive center in the
State of North Dakota.
‘‘(4) OPERATION AND MAINTENANCE.—
‘‘(A) IN GENERAL.—There are authorized to be appropriated such sums as are necessary for operation and
maintenance of the unit (including the mitigation and
enhancement features).
‘‘(B) AUTHORIZATION LIMITS.—Expenditures for operation and maintenance of features substantially completed
and features constructed before the date of enactment of
the Dakota Water Resources Act of 2000, including funds
expended for such purposes since the date of enactment
of Public Law 99–294, shall not be counted against the
authorization limits in this section.
‘‘(5) MITIGATION AND ENHANCEMENT LAND.—On or about
the date on which the features authorized by section 8(a) are
operational, a separate account in the Natural Resources Trust
authorized by section 11 shall be established for operation
and maintenance of the mitigation and enhancement land associated with the unit.’’; and
(4) by striking subsection (e) and inserting the following:
‘‘(e) INDEXING.—The $200,000,000 amount under subsection
(b)(1)(B), the $200,000,000 amount under subsection (a)(1)(B), and
the funds authorized under subsection (b)(2) shall be indexed as
necessary to allow for ordinary fluctuations of construction costs
incurred after the date of enactment of the Dakota Water Resources
Act of 2000 as indicated by engineering cost indices applicable
for the type of construction involved. All other authorized cost
ceilings shall remain unchanged.’’.
SEC. 611. NATURAL RESOURCES TRUST.
Section 11 of Public Law 89–108 (100 Stat. 424) is amended—
(1) by striking subsection (a) and inserting the following:
‘‘(a) CONTRIBUTION.—
‘‘(1) INITIAL AUTHORIZATION.—
‘‘(A) IN GENERAL.—From the sums appropriated under
section 10 for the Garrison Diversion Unit, the Secretary
shall make an annual Federal contribution to a Natural
Resources Trust established by non-Federal interests in
accordance with subsection (b) and operated in accordance
with subsection (c).
‘‘(B) AMOUNT.—The total amount of Federal contributions under subparagraph (A) shall not exceed $12,000,000.
‘‘(2) ADDITIONAL AUTHORIZATION.—
‘‘(A) IN GENERAL.—In addition to the amount authorized in paragraph (1), the Secretary shall make annual
Federal contributions to the Natural Resources Trust until
the amount authorized by section 10(c)(2)(B) is reached,
in the manner stated in subparagraph (B).
‘‘(B) ANNUAL AMOUNT.—The amount of the contribution
under subparagraph (A) for each fiscal year shall be the
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114 STAT. 2763A–293
amount that is equal to 5 percent of the total amount
that is appropriated for the fiscal year under subsections
(a)(1)(B) and (b)(1)(B) of section 10.’’.
(2) in subsection (b), by striking ‘‘Wetlands Trust’’ and
inserting ‘‘Natural Resources Trust’’; and
(3) in subsection (c)—
(A) by striking ‘‘Wetland Trust’’ and inserting ‘‘Natural
Resources Trust’’;
(B) by striking ‘‘are met’’ and inserting ‘‘is met’’;
(C) in paragraph (1), by inserting ‘‘, grassland conservation and riparian areas’’ after ‘‘habitat’’; and
(D) in paragraph (2), by adding at the end the following:
‘‘(C) The power to fund incentives for conservation
practices by landowners.’’.
TITLE VII
SEC. 701. FINDINGS.
Congress finds that—
(1) there is a continuing need for reconciliation between
Indians and non-Indians;
(2) the need may be met partially through the promotion
of the understanding of the history and culture of Sioux Indian
tribes;
(3) the establishment of a Sioux Nation Tribal Supreme
Court will promote economic development on reservations of
the Sioux Nation and provide investors that contribute to that
development a greater degree of certainty and confidence by—
(A) reconciling conflicting tribal laws; and
(B) strengthening tribal court systems;
(4) the reservations of the Sioux Nation—
(A) contain the poorest counties in the United States;
and
(B) lack adequate tools to promote economic development and the creation of jobs;
(5) the establishment of a Native American Economic
Development Council will assist in promoting economic growth
and reducing poverty on reservations of the Sioux Nation by—
(A) coordinating economic development efforts;
(B) centralizing expertise concerning Federal assistance; and
(C) facilitating the raising of funds from private donations to meet matching requirements under certain Federal
assistance programs;
(6) there is a need to enhance and strengthen the capacity
of Indian tribal governments and tribal justice systems to
address conflicts which impair relationships within Indian
communities and between Indian and non-Indian communities
and individuals; and
(7) the establishment of the National Native American
Mediation Training Center, with the technical assistance of
tribal and Federal agencies, including the Community Relations
Service of the Department of Justice, would enhance and
strengthen the mediation skills that are useful in reducing
tensions and resolving conflicts in Indian communities and
between Indian and non-Indian communities and individuals.
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114 STAT. 2763A–294
PUBLIC LAW 106–554—APPENDIX D
SEC. 702. DEFINITIONS.
In this title:
(1) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has the meaning
given that term in section 4(e) of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b(e)).
(2) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of the Interior.
(3) SIOUX NATION.—The term ‘‘Sioux Nation’’ means the
Indian tribes comprising the Sioux Nation.
SEC. 703. RECONCILIATION CENTER.
(a) ESTABLISHMENT.—The Secretary of Housing and Urban
Development, in cooperation with the Secretary, shall establish,
in accordance with this section, a reconciliation center, to be known
as ‘‘Reconciliation Place’’.
(b) LOCATION.—Notwithstanding any other provision of law,
the Secretary shall take into trust for the benefit of the Sioux
Nation the parcel of land in Stanley County, South Dakota, that
is described as ‘‘The Reconciliation Place Addition’’ that is owned
on the date of enactment of this Act by the Wakpa Sica Historical
Society, Inc., for the purpose of establishing and operating The
Reconciliation Place.
(c) PURPOSES.—The purposes of Reconciliation Place shall be
as follows:
(1) To enhance the knowledge and understanding of the
history of Native Americans by—
(A) displaying and interpreting the history, art, and
culture of Indian tribes for Indians and non-Indians; and
(B) providing an accessible repository for—
(i) the history of Indian tribes; and
(ii) the family history of members of Indian tribes.
(2) To provide for the interpretation of the encounters
between Lewis and Clark and the Sioux Nation.
(3) To house the Sioux Nation Tribal Supreme Court.
(4) To house the Native American Economic Development
Council.
(5) To house the National Native American Mediation
Training Center to train tribal personnel in conflict resolution
and alternative dispute resolution.
(d) GRANT.—
(1) IN GENERAL.—The Secretary of Housing and Urban
Development shall offer to award a grant to the Wakpa Sica
Historical Society of Fort Pierre, South Dakota, for the construction of Reconciliation Place.
(2) GRANT AGREEMENT.—
(A) IN GENERAL.—As a condition to receiving the grant
under this subsection, the appropriate official of the Wakpa
Sica Historical Society shall enter into a grant agreement
with the Secretary of Housing and Urban Development.
(B) CONSULTATION.—Before entering into a grant
agreement under this paragraph, the Secretary of Housing
and Urban Development shall consult with the Secretary
concerning the contents of the agreement.
(C) DUTIES OF THE WAKPA SICA HISTORICAL SOCIETY.—
The grant agreement under this paragraph shall specify
the duties of the Wakpa Sica Historical Society under this
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–295
section and arrangements for the maintenance of Reconciliation Place.
(3) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to the Department of Housing and
Urban Development $18,258,441, to be used for the grant under
this section.
SEC. 704. SIOUX NATION SUPREME COURT AND NATIONAL NATIVE
AMERICAN MEDIATION TRAINING CENTER.
(a) IN GENERAL.—To ensure the development and operation
of the Sioux Nation Tribal Supreme Court and the National Native
American Mediation Training Center, the Attorney General of the
United States shall use available funds to provide technical and
financial assistance to the Sioux Nation.
(b) AUTHORIZATION OF APPROPRIATIONS.—To carry out this section, there are authorized to be appropriated to the Department
of Justice such sums as are necessary.
TITLE VIII—ERIE CANALWAY NATIONAL HERITAGE
CORRIDOR
SEC. 801. SHORT TITLE; DEFINITIONS.
(a) SHORT TITLE.—This title may be cited as the ‘‘Erie Canalway
National Heritage Corridor Act’’.
(b) DEFINITIONS.—For the purposes of this title, the following
definitions shall apply:
(1) ERIE CANALWAY.—The term ‘‘Erie Canalway’’ means
the 524 miles of navigable canal that comprise the New York
State Canal System, including the Erie, Cayuga and Seneca,
Oswego, and Champlain Canals and the historic alignments
of these canals, including the cities of Albany and Buffalo.
(2) CANALWAY PLAN.—The term ‘‘Canalway Plan’’ means
the comprehensive preservation and management plan for the
Corridor required under section 806.
(3) COMMISSION.—The term ‘‘Commission’’ means the Erie
Canalway National Heritage Corridor Commission established
under section 804.
(4) CORRIDOR.—The term ‘‘Corridor’’ means the Erie
Canalway National Heritage Corridor established under section
803.
(5) GOVERNOR.—The term ‘‘Governor’’ means the Governor
of the State of New York.
(6) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of the Interior.
SEC. 802. FINDINGS AND PURPOSES.
(a) FINDINGS.—Congress finds that—
(1) the year 2000 marks the 175th Anniversary of New
York State’s creation and stewardship of the Erie Canalway
for commerce, transportation, and recreational purposes,
establishing the network which made New York the ‘‘Empire
State’’ and the Nation’s premier commercial and financial center;
(2) the canals and adjacent areas that comprise the Erie
Canalway are a nationally significant resource of historic and
recreational value, which merit Federal recognition and assistance;
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114 STAT. 2763A–296
PUBLIC LAW 106–554—APPENDIX D
(3) the Erie Canalway was instrumental in the establishment of strong political and cultural ties between New England,
upstate New York, and the old Northwest and facilitated the
movement of ideas and people ensuring that social reforms
like the abolition of slavery and the women’s rights movement
spread across upstate New York to the rest of the country;
(4) the construction of the Erie Canalway was considered
a supreme engineering feat, and most American canals were
modeled after New York State’s canal;
(5) at the time of construction, the Erie Canalway was
the largest public works project ever undertaken by a State,
resulting in the creation of critical transportation and commercial routes to transport passengers and goods;
(6) the Erie Canalway played a key role in turning New
York City into a major port and New York State into the
preeminent center for commerce, industry, and finance in North
America and provided a permanent commercial link between
the Port of New York and the cities of eastern Canada, a
cornerstone of the peaceful relationship between the two countries;
(7) the Erie Canalway proved the depth and force of American ingenuity, solidified a national identity, and found an
enduring place in American legend, song, and art;
(8) there is national interest in the preservation and
interpretation of the Erie Canalway’s important historical,
natural, cultural, and scenic resources; and
(9) partnerships among Federal, State, and local governments and their regional entities, nonprofit organizations, and
the private sector offer the most effective opportunities for
the preservation and interpretation of the Erie Canalway.
(b) PURPOSES.—The purposes of this title are—
(1) to designate the Erie Canalway National Heritage Corridor;
(2) to provide for and assist in the identification, preservation, promotion, maintenance, and interpretation of the historical, natural, cultural, scenic, and recreational resources of the
Erie Canalway in ways that reflect its national significance
for the benefit of current and future generations;
(3) to promote and provide access to the Erie Canalway’s
historical, natural, cultural, scenic, and recreational resources;
(4) to provide a framework to assist the State of New
York, its units of local government, and the communities within
the Erie Canalway in the development of integrated cultural,
historical, recreational, economic, and community development
programs in order to enhance and interpret the unique and
nationally significant resources of the Erie Canalway; and
(5) to authorize Federal financial and technical assistance
to the Commission to serve these purposes for the benefit
of the people of the State of New York and the Nation.
SEC. 803. THE ERIE CANALWAY NATIONAL HERITAGE CORRIDOR.
(a) ESTABLISHMENT.—To carry out the purposes of this title
there is established the Erie Canalway National Heritage Corridor
in the State of New York.
(b) BOUNDARIES.—The boundaries of the Corridor shall include
those lands generally depicted on a map entitled ‘‘Erie Canalway
National Heritage Area’’ numbered ERIE/80,000 and dated October
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–297
2000. This map shall be on file and available for public inspection
in the appropriate office of the National Park Service, the office
of the Commission, and the office of the New York State Canal
Corporation in Albany, New York.
(c) OWNERSHIP AND OPERATION OF THE NEW YORK STATE CANAL
SYSTEM.—The New York State Canal System shall continue to
be owned, operated, and managed by the State of New York.
SEC. 804. THE ERIE CANALWAY NATIONAL HERITAGE CORRIDOR
COMMISSION.
(a) ESTABLISHMENT.—There is established the Erie Canalway
National Heritage Corridor Commission. The purpose of the
Commission shall be—
(1) to work with Federal, State, and local authorities to
develop and implement the Canalway Plan; and
(2) to foster the integration of canal-related historical, cultural, recreational, scenic, economic, and community development initiatives within the Corridor.
(b) MEMBERSHIP.—The Commission shall be composed of 27
members as follows:
(1) The Secretary of the Interior, ex officio or the Secretary’s
designee.
(2) Seven members, appointed by the Secretary after consideration of recommendations submitted by the Governor and
other appropriate officials, with knowledge and experience of
the following agencies or those agencies’ successors: The New
York State Secretary of State, the New York State Department
of Environment Conservation, the New York State Office of
Parks, Recreation and Historic Preservation, the New York
State Department of Agriculture and Markets, the New York
State Department of Transportation, and the New York State
Canal Corporation, and the Empire State Development Corporation.
(3) The remaining 19 members who reside within the Corridor and are geographically dispersed throughout the Corridor
shall be from local governments and the private sector with
knowledge of tourism, economic and community development,
regional planning, historic preservation, cultural or natural
resource management, conservation, recreation, and education
or museum services. These members will be appointed by the
Secretary as follows:
(A) Eleven members based on a recommendation from
each member of the United States House of Representatives
whose district shall encompass the Corridor. Each shall
be a resident of the district from which they shall be
recommended.
(B) Two members based on a recommendation from
each United States Senator from New York State.
(C) Six members who shall be residents of any county
constituting the Corridor. One such member shall have
knowledge and experience of the Canal Recreationway
Commission.
(c) APPOINTMENTS AND VACANCIES.—Members of the Commission other than ex officio members shall be appointed for terms
of 3 years. Of the original appointments, six shall be for a term
of 1 year, six shall be for a term of 2 years, and seven shall
be for a term of 3 years. Any member of the Commission appointed
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114 STAT. 2763A–298
PUBLIC LAW 106–554—APPENDIX D
for a definite term may serve after expiration of the term until
the successor of the member is appointed. Any member appointed
to fill a vacancy shall serve for the remainder of the term for
which the predecessor was appointed. Any vacancy on the Commission shall be filled in the same manner in which the original
appointment was made.
(d) COMPENSATION.—Members of the Commission shall receive
no compensation for their service on the Commission. Members
of the Commission, other than employees of the State and Canal
Corporation, while away from their homes or regular places of
business to perform services for the Commission, shall be allowed
travel expenses, including per diem in lieu of subsistence, in the
same manner as persons employed intermittently in Government
service are allowed under section 5703 of title 5, United States
Code.
(e) ELECTION OF OFFICES.—The Commission shall elect the
chairperson and the vice chairperson on an annual basis. The
vice chairperson shall serve as the chairperson in the absence
of the chairperson.
(f ) QUORUM AND VOTING.—Fourteen members of the Commission shall constitute a quorum but a lesser number may hold
hearings. Any member of the Commission may vote by means
of a signed proxy exercised by another member of the Commission,
however, any member voting by proxy shall not be considered
present for purposes of establishing a quorum. For the transaction
of any business or the exercise of any power of the Commission,
the Commission shall have the power to act by a majority vote
of the members present at any meeting at which a quorum is
in attendance.
(g) MEETINGS.—The Commission shall meet at least quarterly
at the call of the chairperson or 14 of its members. Notice of
Commission meetings and agendas for the meeting shall be published in local newspapers throughout the Corridor. Meetings of
the Commission shall be subject to section 552b of title 5, United
States Code (relating to open meetings).
(h) POWERS OF THE COMMISSION.—To the extent that Federal
funds are appropriated, the Commission is authorized—
(1) to procure temporary and intermittent services and
administrative facilities at rates determined to be reasonable
by the Commission to carry out the responsibilities of the
Commission;
(2) to request and accept the services of personnel detailed
from the State of New York or any political subdivision, and
to reimburse the State or political subdivision for such services;
(3) to request and accept the services of any Federal agency
personnel, and to reimburse the Federal agency for such services;
(4) to appoint and fix the compensation of staff to carry
out its duties;
(5) to enter into cooperative agreements with the State
of New York, with any political subdivision of the State, or
any person for the purposes of carrying out the duties of the
Commission;
(6) to make grants to assist in the preparation and
implementation of the Canalway Plan;
(7) to seek, accept, and dispose of gifts, bequests, grants,
or donations of money, personal property, or services, received
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–299
from any source. For purposes of section 170(c) of the Internal
Revenue Code of 1986, any gift to the Commission shall be
deemed to be a gift to the United States;
(8) to assist others in developing educational, informational,
and interpretive programs and facilities, and other such activities that may promote the implementation of the Canalway
Plan;
(9) to hold hearings, sit and act at such times and places,
take such testimony, and receive such evidence, as the Commission may consider appropriate; the Commission may not issue
subpoenas or exercise any subpoena authority;
(10) to use the United States mails in the same manner
as other departments or agencies of the United States;
(11) to request and receive from the Administrator of General Services, on a reimbursable basis, such administrative
support services as the Commission may request; and
(12) to establish such advisory groups as the Commission
deems necessary.
(i) ACQUISITION OF PROPERTY.—Except as provided for leasing
administrative facilities under section 804(h)(1), the Commission
may not acquire any real property or interest in real property.
( j) TERMINATION.—The Commission shall terminate on the day
occurring 10 years after the date of enactment of this title.
SEC. 805. DUTIES OF THE COMMISSION.
(a) PREPARATION OF CANALWAY PLAN.—Not later than 3 years
after the Commission receives Federal funding for this purpose,
the Commission shall prepare and submit a comprehensive
preservation and management Canalway Plan for the Corridor to
the Secretary and the Governor for review and approval. In addition
to the requirements outlined for the Canalway Plan in section
806, the Canalway Plan shall incorporate and integrate existing
Federal, State, and local plans to the extent appropriate regarding
historic preservation, conservation, education and interpretation,
community development, and tourism-related economic development
for the Corridor that are consistent with the purpose of this title.
The Commission shall solicit public comment on the development
of the Canalway Plan.
(b) IMPLEMENTATION OF CANALWAY PLAN.—After the Commission receives Federal funding for this purpose, and after review
and upon approval of the Canalway Plan by the Secretary and
the Governor, the Commission shall—
(1) undertake action to implement the Canalway Plan so
as to assist the people of the State of New York in enhancing
and interpreting the historical, cultural, educational, natural,
scenic, and recreational potential of the Corridor identified
in the Canalway Plan; and
(2) support public and private efforts in conservation and
preservation of the Canalway’s cultural and natural resources
and economic revitalization consistent with the goals of the
Canalway Plan.
(c) PRIORITY ACTIONS.—Priority actions which may be carried
out by the Commission under section 805(b), include—
(1) assisting in the appropriate preservation treatment of
the remaining elements of the original Erie Canal;
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PUBLIC LAW 106–554—APPENDIX D
(2) assisting State, local governments, and nonprofit
organizations in designing, establishing, and maintaining visitor centers, museums, and other interpretive exhibits in the
Corridor;
(3) assisting in the public awareness and appreciation for
the historic, cultural, natural, scenic, and recreational resources
and sites in the Corridor;
(4) assisting the State of New York, local governments,
and nonprofit organizations in the preservation and restoration
of any historic building, site, or district in the Corridor;
(5) encouraging, by appropriate means, enhanced economic
development in the Corridor consistent with the goals of the
Canalway Plan and the purposes of this title; and
(6) ensuring that clear, consistent signs identifying access
points and sites of interest are put in place in the Corridor.
(d) ANNUAL REPORTS AND AUDITS.—For any year in which
Federal funds have been received under this title, the Commission
shall submit an annual report and shall make available an audit
of all relevant records to the Governor and the Secretary identifying
its expenses and any income, the entities to which any grants
or technical assistance were made during the year for which the
report was made, and contributions by other parties toward achieving Corridor purposes.
SEC. 806. CANALWAY PLAN.
(a) CANALWAY PLAN REQUIREMENTS.—The Canalway Plan
shall—
(1) include a review of existing plans for the Corridor,
including the Canal Recreationway Plan and Canal Revitalization Program, and incorporate them to the extent feasible to
ensure consistence with local, regional, and State planning
efforts;
(2) provide a thematic inventory, survey, and evaluation
of historic properties that should be conserved, restored, developed, or maintained because of their natural, cultural, or historic significance within the Corridor in accordance with the
regulations for the National Register of Historic Places;
(3) identify public and private-sector preservation goals
and strategies for the Corridor;
(4) include a comprehensive interpretive plan that identifies, develops, supports, and enhances interpretation and education programs within the Corridor that may include—
(A) research related to the construction and history
of the canals and the cultural heritage of the canal workers,
their families, those that traveled along the canals, the
associated farming activities, the landscape, and the
communities;
(B) documentation of and methods to support the
perpetuation of music, art, poetry, literature and folkways
associated with the canals; and
(C) educational and interpretative programs related
to the Erie Canalway developed in cooperation with State
and local governments, educational institutions, and nonprofit institutions;
(5) include a strategy to further the recreational development of the Corridor that will enable users to uniquely experience the canal system;
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PUBLIC LAW 106–554—APPENDIX D
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(6) propose programs to protect, interpret, and promote
the Corridor’s historical, cultural, recreational, educational, scenic, and natural resources;
(7) include an inventory of canal-related natural, cultural
and historic sites and resources located in the Area;
(8) recommend Federal, State, and local strategies and
policies to support economic development, especially tourismrelated development and recreation, consistent with the purposes of the Corridor;
(9) develop criteria and priorities for financial preservation
assistance;
(10) identify and foster strong cooperative relationships
between the National Park Service, the New York State Canal
Corporation, other Federal and State agencies, and nongovernmental organizations;
(11) recommend specific areas for development of interpretive, educational, and technical assistance centers associated
with the Corridor; and
(12) contain a program for implementation of the Canalway
Plan by all necessary parties.
(b) APPROVAL OF THE CANALWAY PLAN.—The Secretary and
the Governor shall approve or disapprove the Canalway Plan not
later than 90 days after receiving the Canalway Plan.
(c) CRITERIA.—The Secretary may not approve the plan unless
the Secretary finds that the plan, if implemented, would adequately
protect the significant historical, cultural, natural, and recreational
resources of the Corridor and consistent with such protection provide adequate and appropriate outdoor recreational opportunities
and economic activities within the Corridor. In determining whether
or not to approve the Canalway Plan, the Secretary shall consider
whether—
(1) the Commission has afforded adequate opportunity,
including public hearings, for public and governmental involvement in the preparation of the Canalway Plan; and
(2) the Secretary has received adequate assurances from
the Governor and appropriate State officials that the recommended implementation program identified in the plan will
be initiated within a reasonable time after the date of approval
of the Canalway Plan and such program will ensure effective
implementation of State and local aspects of the Canalway
Plan.
(d) DISAPPROVAL OF CANALWAY PLAN.—If the Secretary or the
Governor do not approve the Canalway Plan, the Secretary or
the Governor shall advise the Commission in writing within 90
days the reasons therefore and shall indicate any recommendations
for revisions. Following completion of any necessary revisions of
the Canalway Plan, the Secretary and the Governor shall have
90 days to either approve or disapprove of the revised Canalway
Plan.
(e) AMENDMENTS TO CANALWAY PLAN.—The Secretary and the
Governor shall review substantial amendments to the Canalway
Plan. Funds appropriated pursuant to this title may not be
expended to implement the changes made by such amendments
until the Secretary and the Governor approve the amendments.
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114 STAT. 2763A–302
PUBLIC LAW 106–554—APPENDIX D
SEC. 807. DUTIES OF THE SECRETARY.
(a) IN GENERAL.—The Secretary is authorized to assist the
Commission in the preparation of the Canalway Plan.
(b) TECHNICAL ASSISTANCE.—Pursuant to an approved
Canalway Plan, the Secretary is authorized to enter into cooperative
agreements with, provide technical assistance to and award grants
to the Commission to provide for the preservation and interpretation
of the natural, cultural, historical, recreational, and scenic resources
of the Corridor, if requested by the Commission.
(c) EARLY ACTIONS.—Prior to approval of the Canalway Plan,
with the approval of the Commission, the Secretary may provide
technical and planning assistance for early actions that are important to the purposes of this title and that protect and preserve
resources.
(d) CANALWAY PLAN IMPLEMENTATION.—Upon approval of the
Canalway Plan, the Secretary is authorized to implement those
activities that the Canalway Plan has identified that are the responsibility of the Secretary or agent of the Secretary to undertake
in the implementation of the Canalway Plan.
(e) DETAIL.—Each fiscal year during the existence of the
Commission and upon the request of the Commission, the Secretary
shall detail to the Commission, on a nonreimbursable basis, two
employees of the Department of the Interior to enable the Commission to carry out the Commission’s duties with regard to the
preparation and approval of the Canalway Plan. Such detail shall
be without interruption or loss of civil service status, benefits,
or privileges.
SEC. 808. DUTIES OF OTHER FEDERAL ENTITIES.
Any Federal entity conducting or supporting any activity
directly affecting the Corridor, and any unit of Government acting
pursuant to a grant of Federal funds or a Federal permit or agreement conducting or supporting such activities may—
(1) consult with the Secretary and the Commission with
respect to such activities;
(2) cooperate with the Secretary and the Commission in
carrying out their duties under this title and coordinate such
activities with the carrying out of such duties; and
(3) conduct or support such activities in a manner consistent with the Canalway Plan unless the Federal entity, after
consultation with the Secretary and the Commission, determines there is no practicable alternative.
SEC. 809. SAVINGS PROVISIONS.
(a) AUTHORITY OF GOVERNMENTS.—Nothing in this title shall
be construed to modify, enlarge, or diminish any authority of the
Federal, State, or local governments to regulate any use of land
as provided for by law or regulation.
(b) ZONING OR LAND.—Nothing in this title shall be construed
to grant powers of zoning or land use to the Commission.
(c) LOCAL AUTHORITY AND PRIVATE PROPERTY.—Nothing in this
title shall be construed to affect or to authorize the Commission
to interfere with—
(1) the rights of any person with respect to private property;
(2) any local zoning ordinance or land use plan of the
State of New York or political subdivision thereof; or
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–303
(3) any State or local canal-related development plans
including but not limited to the Canal Recreationway Plan
and the Canal Revitalization Program.
(d) FISH AND WILDLIFE.—The designation of the Corridor shall
not be diminish the authority of the State of New York to manage
fish and wildlife, including the regulation of fishing and hunting
within the Corridor.
SEC. 810. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—
(1) CORRIDOR.—There is authorized to be appropriated for
the Corridor not more than $1,000,000 for any fiscal year.
Not more than a total of $10,000,000 may be appropriated
for the Corridor under this title.
(2) MATCHING REQUIREMENT.—Federal funding provided
under this paragraph may not exceed 50 percent of the total
cost of any activity carried out with such funds. The nonFederal share of such support may be in the form of cash,
services, or in-kind contributions, fairly valued.
(b) OTHER FUNDING.—In addition to the sums authorized in
subsection (a), there are authorized to be appropriated to the Secretary of the Interior such sums as are necessary for the Secretary
for planning and technical assistance.
TITLE IX—LAW ENFORCEMENT PAY EQUITY
SEC. 901. SHORT TITLE.
This title may be cited as the ‘‘Law Enforcement Pay Equity
Act of 2000’’.
SEC. 902. ESTABLISHMENT OF UNIFORM SALARY SCHEDULE FOR
UNITED STATES SECRET SERVICE UNIFORMED DIVISION
AND UNITED STATES PARK POLICE.
(a) IN GENERAL.—Section 501(c)(1) of the District of Columbia
Police and Firemen’s Salary Act of 1958 (sec. 4–416(c)(1), D.C.
Code) is amended to read as follows:
‘‘(c)(1) The annual rates of basic compensation of officers and
members of the United States Secret Service Uniformed Division
and the United States Park Police, serving in classes corresponding
or similar to those in the salary schedule in section 101, shall
be fixed in accordance with the following schedule of rates:
‘‘Salary
class and
title
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Time
between
steps
52 weeks
Years in
service
1
2
3
5
7
9
34,587
36,626
42,378
38,306
44,502
46,151
41,001
46,620
48,446
43,728
48,746
50,746
45,407
50,837
53,056
50,910
53,462
59,802
56,545
62,799
69,163
72,760
79,768
85,158
1:
3:
4:
5:
Private ...
Detective
Sergeant
Lieutenant 1 ........
7: Captain 1
8: Inspector/
Major 1 ....
9: Deputy
Chief 1 .....
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114 STAT. 2763A–304
‘‘Salary
class and
title
PUBLIC LAW 106–554—APPENDIX D
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
10: Assistant
Chief 2
11: Chief,
United
States Secret Service Uniformed
Division,
United
States
Park Police 3
1 The rate of basic pay for positions in Salary Class 5, 7, 8, and 9 is limited to 95 percent of the
rate of pay for level V of the Executive Schedule.
2 The rate of basic pay for positions in Salary Class 10 will be equal to 95 percent of the rate of
pay for level V of the Executive Schedule.
3 The rate of basic pay for positions in Salary Class 11 will be equal to the rate of pay for level V
of the Executive Schedule.
‘‘Salary
class and
title
Step 8
Time
between
steps
Years in
service
1:
3:
4:
5:
Private ...
Detective
Sergeant
Lieutenant 1 ........
7: Captain 1
8: Inspector/
Major 1 ....
9: Deputy
Chief 1 .....
10: Assistant
Chief 2
11: Chief,
United
States Secret Service Uniformed
Division,
United
States
Park Police 3
Step 9
104 weeks
11
Step 10
Step 11
Step 12
156 weeks
13
15
Step 13
Step 14
208 weeks
18
22
26
30
47,107
52,972
55,372
48,801
55,086
57,691
50,498
57,204
59,999
53,448
61,212
63,558
55,394
63,337
65,867
57,036
65,462
68,176
58,746
67,426
70,221
59,120
65,797
61,688
68,757
64,258
71,747
68,197
76,292
70,744
79,309
73,290
82,325
75,489
84,796
76,542
80,524
83,983
87,645
91,827
95,464
99,075
90,578
95,980
99,968
103,957
107,945
111,933
115,291
1 The rate of basic pay for positions in Salary Class 5, 7, 8, and 9 is limited to 95 percent of the
rate of pay for level V of the Executive Schedule.
2 The rate of basic pay for positions in Salary Class 10 will be equal to 95 percent of the rate of
pay for level V of the Executive Schedule.
3 The rate of basic pay for positions in Salary Class 11 will be equal to the rate of pay for level V
of the Executive Schedule.
(b) FREEZE OF CURRENT RATE FOR LOCALITY-BASED COMPARABILITY ADJUSTMENTS.—Notwithstanding any other provision
of law, including this title or any provision of law amended by
this title, no officer or member of the United States Secret Service
Uniformed Division or the United States Park Police may be paid
locality pay under section 5304 or section 5304a of title 5, United
States Code, at a percentage rate for the applicable locality in
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–305
excess of the rate in effect for pay periods during calendar year
2000.
(c) CONFORMING AMENDMENTS.—
(1) APPLICATION OF PROVISIONS TO PARK POLICE.—Section
501(c) of such Act (sec. 4–416(c), D.C. Code) is amended—
(A) in paragraph (2), by striking ‘‘Treasury’’ and inserting the following: ‘‘Treasury, and the annual rates of basic
compensation of officers and members of the United States
Park Police shall be adjusted by the Secretary of the
Interior,’’;
(B) in paragraph (5), by inserting after ‘‘Uniformed
Division’’ the following: ‘‘or officers and members of the
United States Park Police’’;
(C) in paragraph (6)(A), by inserting after ‘‘Uniformed
Division’’ the following: ‘‘or the United States Park Police’’;
and
(D) in paragraph (7)(A), by inserting after ‘‘Uniformed
Division’’ the following: ‘‘or the United States Park Police’’.
(2) TERMINATION OF CURRENT ADJUSTMENT AUTHORITY.—
Section 501(b) of such Act (sec. 4–416(b), D.C. Code) is amended
by adding at the end the following new paragraph:
‘‘(4) This subsection shall not apply with respect to any pay
period for which the salary schedule under subsection (c) applies
to the United States Park Police.’’.
SEC. 903. REVISION OF CAPS ON MAXIMUM COMPENSATION.
(a) ANNUAL SALARY UNDER SCHEDULE.—Section 501(c)(2) of
the District of Columbia Police and Firemen’s Salary Act of 1958
(sec. 4–416(c)(2), D.C. Code) is amended by striking the period
at the end and inserting the following: ‘‘, except that in no case
may the annual rate of basic compensation for any such officer
or member exceed the rate of basic pay payable for level IV of
the Executive Schedule contained in subchapter II of chapter 53
of title 5, United States Code.’’.
(b) REPEAL OF CAP ON COMBINED BASIC PAY AND LONGEVITY
PAY.—Section 501(c) of such Act (sec. 4–416(c), D.C. Code) is amended by striking paragraph (4).
(c) LIMITATION ON PAY PERIOD EARNINGS FOR COMP TIME.—
Section 1(h) of the Act entitled ‘‘An Act to provide a 5-day week
for officers and members of the Metropolitan Police force, the United
States Park Police force, and the White House Police force, and
for other purposes’’, approved August 15, 1950 (sec. 4–1104(h),
D.C. Code), is amended—
(1) in paragraphs (1) and (2), by striking ‘‘Metropolitan
Police force; or of the Fire Department of the District of Columbia; or of the United States Park Police’’ each place it appears
and inserting ‘‘Metropolitan Police force or of the Fire Department of the District of Columbia’’; and
(2) in paragraph (3), by inserting after ‘‘United States
Secret Service Uniformed Division’’ each place it appears the
following: ‘‘or of the United States Park Police’’.
SEC. 904. DETERMINATION OF SERVICE STEP ADJUSTMENTS.
(a) METHOD FOR DETERMINATION OF ADJUSTMENTS.—Section
303(a) of the District of Columbia Police and Firemen’s Salary
Act of 1958 (sec. 4–412(a), D.C. Code) is amended—
(1) in the matter preceding paragraph (1), by ‘‘Each’’ and
inserting ‘‘Except as provided in paragraph (5), each’’; and
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114 STAT. 2763A–306
PUBLIC LAW 106–554—APPENDIX D
(2) by adding at the end the following new paragraph:
‘‘(5) Each officer and member of the United States Secret
Service Uniformed Division and the United States Park Police
with a current performance rating of ‘satisfactory’ or better,
shall have a service step adjustment in the following manner:
‘‘(A) Each officer and member in service step 1, 2,
or 3 shall be advanced in compensation successively to
the next higher service step at the beginning of the 1st
pay period immediately subsequent to the completion of
52 calendar weeks of active service in the officer’s or member’s service step.
‘‘(B) Each officer and member in service step 4, 5,
6, 7, 8, or 9 shall be advanced in compensation successively
to the next higher service step at the beginning of the
1st pay period immediately subsequent to the completion
of 104 calendar weeks of active service in the officer’s
or member’s service step.
‘‘(C) Each officer and member in service step 10 shall
be advanced in compensation successively to the next
higher service step at the beginning of the 1st pay period
immediately subsequent to the completion of 156 calendar
weeks of active service in the officer’s or member’s service
step.
‘‘(D) Each officer and member in service steps 11, 12,
or 13 shall be advanced in compensation successively to
the next higher service step at the beginning of the 1st
pay period immediately subsequent to the completion of
208 calendar weeks of active service in the officer’s or
member’s service step.’’.
(b) USE OF TOTAL CREDITABLE SERVICE TO DETERMINE STEP
PLACEMENT.—Section 304 of such Act (sec. 4–413, D.C. Code) is
amended—
(1) in subsection (a), by striking ‘‘(b)’’ and inserting ‘‘(b)
or (c)’’; and
(2) by adding at the end the following new subsection:
‘‘(c)(1) Each officer and member of the United States Secret
Service Uniformed Division or the United States Park Police who
is promoted or transferred to a higher salary shall receive basic
compensation in accordance with the officer’s or member’s total
creditable service.
‘‘(2) For purposes of this subsection, an officer’s or member’s
creditable service is any police service in pay status with the United
States Secret Service Uniformed Division, United States Park
Police, or Metropolitan Police Department.’’.
(c) CONFORMING AMENDMENT.—Section 401(a) of such Act (sec.
4–415(a), D.C. Code) is amended by adding at the end the following
new paragraph:
‘‘(4) This subsection shall not apply to officers and members
of the United States Secret Service Uniformed Division or the
United States Park Police.’’.
SEC. 905. CONVERSION TO NEW SALARY SCHEDULE.
(a) IN GENERAL.—
(1) DETERMINATION OF RATES OF BASIC PAY.—Effective on
the first day of the 1st pay period beginning 6 months after
the date of enactment of this Act, the Secretary of the Treasury
shall fix the rates of basic pay for officers and members of
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–307
the United States Secret Service Uniformed Division, and the
Secretary of the Interior shall fix the rates of basic pay for
officers and members of the United States Park Police, in
accordance with this subsection.
(2) PLACEMENT ON REVISED SALARY SCHEDULE.—
(A) IN GENERAL.—Each officer and member shall be
placed in and receive basic compensation at the corresponding scheduled service step of the salary schedule under
section 501(c) of the District of Columbia Police and Firemen’s Salary Act of 1958 (as amended by section 902(a))
in accordance with the member’s total years of creditable
service, receiving credit for all service step adjustments.
If the scheduled rate of pay for the step to which the
officer or member would be assigned in accordance with
this paragraph is lower than the officer’s or member’s
salary immediately prior to the enactment of this paragraph, the officer or member will be placed in and receive
compensation at the next higher service step.
(B) CREDIT FOR INCREASES DURING TRANSITION.—Each
member whose position is to be converted to the salary
schedule under section 501(b) of the District of Columbia
Police and Firemen’s Salary Act of 1958 (as amended by
subsection (a)) and who, prior to the effective date of this
section has earned, but has not been credited with, an
increase in his or her rate of pay shall be afforded that
increase before such member is placed in the corresponding
service step in the salary schedule under section 501(b).
(C) CREDITABLE SERVICE DESCRIBED.—For purposes of
this paragraph, an officer’s or member’s creditable service
is any police service in pay status with the United States
Secret Service Uniformed Division, United States Park
Police, or Metropolitan Police Department.
(b) HOLD HARMLESS FOR CURRENT TOTAL COMPENSATION.—
Notwithstanding any other provision of law, if the total rate of
compensation for an officer or employee for any pay period occurring
after conversion to the salary schedule pursuant to subsection (a)
(determined by taking into account any locality-based comparability
adjustments, longevity pay, and other adjustments paid in addition
to the rate of basic compensation) is less than the officer’s or
employee’s total rate of compensation (as so determined) on the
date of enactment, the rate of compensation for the officer or
employee for the pay period shall be equal to—
(1) the rate of compensation on the date of enactment
(as so determined); increased by
(2) a percentage equal to 50 percent of sum of the percentage adjustments made in the rate of basic compensation under
section 501(c) of the District of Columbia Police and Firemen’s
Salary Act of 1958 (as amended by subsection (a)) for pay
periods occurring after the date of enactment and prior to
the pay period involved.
(c) CONVERSION NOT TREATED AS TRANSFER OR PROMOTION.—
The conversion of positions and individuals to appropriate classes
of the salary schedule under section 501(c) of the District of Columbia Police and Firemen’s Salary Act of 1958 (as amended by section
902(a)) and the initial adjustments of rates of basic pay of those
positions and individuals in accordance with subsection (a) shall
not be considered to be transfers or promotions within the meaning
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114 STAT. 2763A–308
PUBLIC LAW 106–554—APPENDIX D
of section 304 of the District of Columbia Police and Firemen’s
Salary Act of 1958 (sec. 4–413, D.C. Code).
(d) TRANSFER OF CREDIT FOR SATISFACTORY SERVICE.—Each
individual whose position is converted to the salary schedule under
section 501(c) of the District of Columbia Police and Firemen’s
Salary Act of 1958 (as amended by section 902(a)) in accordance
with subsection (a) shall be granted credit for purposes of such
individual’s first service step adjustment under the salary schedule
in such section 501(c) for all satisfactory service performed by
the individual since the individual’s last increase in basic pay
prior to the adjustment under that section.
(e) ADJUSTMENT TO TAKE INTO ACCOUNT GENERAL SCHEDULE
ADJUSTMENTS DURING TRANSITION.—The rates provided under the
salary schedule under section 501(c) of the District of Columbia
Police and Firemen’s Salary Act of 1958 (as amended by section
902(a)) shall be increased by the percentage of any annual adjustment applicable to the General Schedule authorized under section
5303 of title 5, United States Code, which takes effect during
the period which begins on the date of the enactment of this
Act and ends on the first day of the first pay period beginning
6 months after the date of enactment of this Act.
(f ) CONVERSION NOT TREATED AS SALARY INCREASE FOR PURPOSES OF CERTAIN PENSIONS AND ALLOWANCES.—The conversion
of positions and individuals to appropriate classes of the salary
schedule under section 501(c) of the District of Columbia Police
and Firemen’s Salary Act of 1958 (as amended by section 2(a))
and the initial adjustments of rates of basic pay of those positions
and individuals in accordance with subsection (a) shall not be
treated as an increase in salary for purposes of section 3 of the
Act entitled ‘‘An Act to provide increased pensions for widows
and children of deceased members of the Police Department and
the Fire Department of the District of Columbia’’, approved August
4, 1949 (sec. 4–604, D.C. Code), or section 301 of the District
of Columbia Police and Firemen’s Salary Act of 1953 (sec. 4–605,
D.C. Code).
SEC. 906. PAY ADJUSTMENTS FOR CERTAIN POSITIONS.
(a) TECHNICIAN DUTY.—Section 302 of the District of Columbia
Police and Firemen’s Salary Act of 1958 (sec. 4–411, D.C. Code)
is amended—
(1) in subsection (b), by striking ‘‘$810 per annum’’ and
inserting the following: ‘‘$810 per annum, except in the case
of an officer or member of the United States Secret Service
Uniformed Division or the United States Park Police, who
shall receive a per annum amount equal to 6 percent of the
sum of such officer’s or member’s rate of basic compensation
plus locality pay adjustments’’;
(2) in subsection (c), by striking ‘‘$595 per annum’’ each
place it appears and inserting the following: ‘‘$595 per annum,
except in the case of an officer or member of the United States
Park Police, who shall receive a per annum amount equal
to 6 percent of the sum of such officer’s or member’s rate
of basic compensation plus locality pay adjustments’’; and
(3) in subsection (e), by inserting after ‘‘Whenever any
officer or member’’ the following: ‘‘(other than an officer or
member of the United States Secret Service Uniformed Division
or the United States Park Police)’’.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–309
(b) HELICOPTER PILOT, BOMB DISPOSAL, OR SCUBA DIVING
DUTY.—Section 202 of such Act (sec. 4–408, D.C. Code) is amended
by striking ‘‘$2,270 per annum’’ and inserting the following: ‘‘$2,270
per annum, except in the case of an officer or member of the
United States Park Police, who shall receive a per annum amount
equal to 7 percent of the sum of such officer’s or member’s rate
of basic compensation plus locality pay adjustments’’.
SEC. 907. CONFORMING PROVISIONS RELATING TO FEDERAL LAW
ENFORCEMENT PAY REFORM ACT.
(a) TERMINATION OF EXISTING SPECIAL SALARY RATES AND
ADJUSTMENTS.—Beginning on the effective date of this Act—
(1) no existing special salary rates shall be authorized
for members of the United States Park Police under section
5305 of title 5, United States Code (or any previous similar
provision of law); and
(2) no special rates of pay or special pay adjustments
shall be applicable to members of the United States Park
Police pursuant to section 405 of the Federal Law Enforcement
Pay Reform Act of 1990.
(b) CONFORMING AMENDMENTS.—(1) Section 405(b) of the Federal Law Enforcement Pay Reform Act of 1990 (5 U.S.C. 5303
note) is amended to read as follows:
‘‘(b) This subsection applies with respect to any—
‘‘(1) special agent within the Diplomatic Security Service;
‘‘(2) probation officer (referred to in section 3672 of title
18, United States Code); or
‘‘(3) pretrial services officer (referred to in section 3153
of title 18, United States Code).’’.
(2) Section 405(c) of such Act (5 U.S.C. 5303 note) is amended
to read as follows:
‘‘(c) For purposes of this section, the term ‘appropriate agency
head’ means—
‘‘(1) with respect to any individual under subsection (b)(1),
the Secretary of State; or
‘‘(2) with respect to any individual under subsection (b)(2)
or (b)(3), the Director of the Administrative Office of the United
States Courts.’’.
SEC. 908. SERVICE LONGEVITY PAYMENTS FOR METROPOLITAN
POLICE DEPARTMENT.
(a) INCLUSION OF SERVICE LONGEVITY PAYMENTS IN AMOUNT
OF FEDERAL BENEFIT PAYMENTS MADE TO METROPOLITAN POLICE
DEPARTMENT OFFICERS AND MEMBERS.—Section 11012 of the District of Columbia Retirement Protection Act of 1997 (Public Law
105–33; 111 Stat. 718; D.C. Code, sec. 1–762.2) is amended by
adding at the end the following new subsection:
‘‘(e) TREATMENT OF INCREASES IN CERTAIN POLICE SERVICE
LONGEVITY PAYMENTS.—For purposes of subsection (a), in determining the amount of a Federal benefit payment made to an officer
or member of the Metropolitan Police Department, the benefit payment to which the officer or member is entitled under the District
Retirement Program shall include any amounts which would have
been included in the benefit payment under such Program if the
amendments made by the Police Recruiting and Retention Enhancement Amendment Act of 1999 had taken effect prior to the freeze
date.’’.
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114 STAT. 2763A–310
PUBLIC LAW 106–554—APPENDIX D
(b) CONFORMING AMENDMENT.—Section 11003(5) of such Act
(Public Law 105–33; 111 Stat. 717; D.C. Code, sec. 1–761.2(5))
is amended by inserting after ‘‘except as’’ the following: ‘‘provided
under section 11012(e) and as’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply with respect to Federal benefit payments made after
the date of the enactment of this Act.
SEC. 909. EFFECTIVE DATE.
Except as provided in section 908(c), this title and the amendments made by this title shall become effective on the first day
of the first pay period beginning 6 months after the date of enactment.
TITLE X
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
ADMINISTRATIVE PROVISIONS
SEC. 1001. Section 206(d) of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 2000 (42 U.S.C. 12701 note) is
amended—
(1) in paragraph (1), by striking ‘‘V’’ and inserting ‘‘III’’;
and
(2) in paragraph (4), by striking ‘‘reimbursable’’ and inserting ‘‘non-reimbursable’’.
SEC. 1002. For purposes of part 2, subpart B of the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992
(Public Law 102–550), notwithstanding any other provision of law
or regulation, for purposes of measuring the extent of compliance
with the housing goals for the years 2001, 2002, and 2003, the
Secretary of Housing and Urban Development shall assign, in the
case of the Federal Home Loan Mortgage Corporation, 1.35 units
of credit toward achievement of each housing goal for each unit
of multifamily housing (excepting units located in properties having
between 5 and 50 units) qualifying as affordable under such housing
goal.
SEC. 1003. Notwithstanding any other provision of law, neither
the City of Toledo, Ohio, nor the Secretary of Housing and Urban
Development (HUD) is required to enforce any requirements associated with Housing Development Grant number 00H006H6402 provided to the City of Toledo, Ohio, that prohibit or restrict the
conversion of the rental units in the Beacon Place project to condominium ownership: Provided, That the City of Toledo and the
Secretary of HUD are authorized to take any actions necessary
to cause any such prohibition or restriction to be removed from
the appropriate land records and otherwise terminated: Provided
further, That converted units shall remain available as rental housing to those persons, including low- and very-low-income persons
who presently reside in the units: Provided further, That the conversion proposal for Beacon Place apartments shall not reduce the
number of affordable housing units in Toledo: Provided further,
That any and all proceeds from such conversion are used to retire
debt associated with the Beacon Place project or to rehabilitate
the properties known as the Cubbon Properties.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–311
SEC. 1004. The Comptroller General of the United States shall
conduct a study on the following topics—
(a)(1) The adequacy of the capital structure of the Federal
Home Loan Bank (FHLB) System as it relates to the risks
posed by: (A) the traditional advances business of the FHLB
System; (B) the expanded collateral provisions and permissible
uses of advances under the Gramm-Leach-Bliley Act of 1999;
and (C) the MPF, and other programs providing for the direct
acquisition of mortgages. The analysis should examine the
credit risk, interest rate risk, and operations risk associated
with each structure;
(2) The risks associated with further growth in the direct
acquisition of mortgages by the Federal Home Loan Bank System; and
(3) A comparison of the risk-based capital standard proposed by the Federal Housing Finance Board for the Federal
Home Loan Bank System to the standard proposed by the
Office of Federal Housing Enterprise Oversight for the Federal
National Mortgage Association and the Federal Home Loan
Mortgage Corporation.
(b) Not later than 6 months after the date of the enactment
of this Act, the Comptroller General shall submit to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Banking and Financial Services
of the House of Representatives a report on the study required
under subsection (a).
TITLE XI
DEPARTMENT OF THE TREASURY
ADMINISTRATIVE PROVISION
SEC. 1101. HONORING THE NAVAJO CODE TALKERS.
(a) Congress finds that—
(1) on December 7, 1941, the Japanese Empire attacked
Pearl Harbor and war was declared by Congress the following
day;
(2) the military code, developed by the United States for
transmitting messages, had been deciphered by the Japanese,
and a search by United States intelligence was made to develop
new means to counter the enemy;
(3) the United States Government called upon the Navajo
Nation to support the military effort by recruiting and enlisting
29 Navajo men to serve as Marine Corps Radio Operators;
(4) the number of Navajo enlistees later increased to more
than 350;
(5) at the time, the Navajos were often treated as secondclass citizens, and they were a people who were discouraged
from using their own native language;
(6) the Navajo Marine Corps Radio Operators, who became
known as the ‘‘Navajo Code Talkers’’, were used to develop
a code using their native language to communicate military
messages in the Pacific;
(7) to the enemy’s frustration, the code developed by these
Native Americans proved to be unbreakable, and was used
extensively throughout the Pacific theater;
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114 STAT. 2763A–312
PUBLIC LAW 106–554—APPENDIX D
(8) the Navajo language, discouraged in the past, was
instrumental in developing the most significant and successful
military code of the time;
(9) at Iwo Jima alone, the Navajo Code Talkers passed
over 800 error-free messages in a 48-hour period;
(10) use of the Navajo Code was so successful, that—
(A) military commanders credited it in saving the lives
of countless American soldiers and in the success of the
engagements of the United States in the battles of Guadalcanal, Tarawa, Saipan, Iwo Jima, and Okinawa;
(B) some Code Talkers were guarded by fellow marines,
whose role was to kill them in case of imminent capture
by the enemy; and
(C) the Navajo Code was kept secret for 23 years
after the end of World War II;
(11) following the conclusion of World War II, the Department of Defense maintained the secrecy of the Navajo code
until it was declassified in 1968; and
(12) only then did a realization of the sacrifice and valor
of these brave Native Americans emerge from history.
(b)(1) To express recognition by the United States and its
citizens in honoring the Navajo Code Talkers, who distinguished
themselves in performing a unique, highly successful communications operation that greatly assisted in saving countless lives and
hastening the end of World War II in the Pacific, the President
is authorized—
(A) to award to each of the original 29 Navajo Code Talkers,
or a surviving family member, on behalf of the Congress, a
gold medal of appropriate design, honoring the Navajo Code
Talkers; and
(B) to award to each person who qualified as a Navajo
Code Talker (MOS 642), or a surviving family member, on
behalf of the Congress, a silver medal of appropriate design,
honoring the Navajo Code Talkers.
(2) For purposes of the awards authorized by paragraph (1),
the Secretary of the Treasury (in this section referred to as the
‘‘Secretary’’) shall strike gold and silver medals with suitable
emblems, devices, and inscriptions, to be determined by the Secretary.
(c) The Secretary may strike and sell duplicates in bronze
of the medals struck pursuant to this section, under such regulations as the Secretary may prescribe, and a price sufficient to
cover the costs thereof, including labor, materials, dies, use of
machinery, and overhead expenses, and the cost of the medals.
(d) The medals struck pursuant to this section are national
medals for purposes of chapter 51, of title 31, United States Code.
(e)(1) There is authorized to be charged against the United
States Mint Public Enterprise Fund, such sums as may be necessary
to pay for the costs of the medals authorized by this section.
(2) Amounts received from the sale of duplicate medals under
this section shall be deposited in the United States Mint Public
Enterprise Fund.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–313
TITLE XII
ENVIRONMENTAL PROTECTION AGENCY
ADMINISTRATIVE PROVISION
SEC. 1201. ABOVEGROUND STORAGE TANK GRANT PROGRAM.
(a) DEFINITIONS.—In this provision:
(1) ABOVEGROUND STORAGE TANK.—The term ‘‘aboveground
storage tank’’ means any tank or combination of tanks (including any connected pipe)—
(A) that is used to contain an accumulation of regulated
substances; and
(B) the volume of which (including the volume of any
connected pipe) is located wholly above the surface of the
ground.
(2) ADMINISTRATOR.—The term ‘‘Administrator’’ means the
Administrator of the Environmental Protection Agency.
(3) DENALI COMMISSION.—The term ‘‘Denali Commission’’
means the commission established by section 303(a) of the
Denali Commission Act of 1998 (42 U.S.C. 3121 note).
(4) FEDERAL ENVIRONMENTAL LAW.—The term ‘‘Federal
environmental law’’ means—
(A) the Oil Pollution Control Act of 1990 (33 U.S.C.
2701 et seq.);
(B) the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et
seq.);
(C) the Solid Waste Disposal Act (42 U.S.C. 6901 et
seq.);
(D) the Federal Water Pollution Control Act (33 U.S.C.
1251 et seq.); or
(E) any other Federal law that is applicable to the
release into the environment of a regulated substance,
as determined by the Administrator.
(5) NATIVE VILLAGE.—The term ‘‘Native village’’ has the
meaning given the term in section 11(b) in Public Law 92–
203 (85 Stat. 688).
(6) PROGRAM.—The term ‘‘program’’ means the Aboveground Storage Tank Grant Program established by subsection
(b)(1).
(7) REGULATED SUBSTANCE.—The term ‘‘regulated substance’’ has the meaning given the term in section 9001 of
the Solid Waste Disposal Act (42 U.S.C. 6991).
(8) STATE.—The term ‘‘State’’ means the State of Alaska.
(b) ESTABLISHMENT.—
(1) IN GENERAL.—There is established a grant program
to be known as the ‘‘Aboveground Storage Tank Grant Program’’.
(2) GRANTS.—Under the program, the Administrator shall
award a grant to—
(A) the State, on behalf of a Native village; or
(B) the Denali Commission.
(c) USE OF GRANTS.—The State or the Denali Commission
shall use the funds of a grant under subsection (b) to repair,
upgrade, or replace one or more aboveground storage tanks that—
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114 STAT. 2763A–314
PUBLIC LAW 106–554—APPENDIX D
(1) leaks or poses an imminent threat of leaking, as certified
by the Administrator, the Commandant of the Coast Guard,
or any other appropriate Federal or State agency (as determined
by the Administrator); and
(2) is located in a Native village—
(A) the median household income of which is less than
80 percent of the median household income in the State;
(B) that is located—
(i) within the boundaries of—
(I) a unit of the National Park System;
(II) a unit of the National Wildlife Refuge
System; or
(III) a National Forest; or
(ii) on public land under the administrative jurisdiction of the Bureau of Land Management; or
(C) that receives payments from the Federal Government under chapter 69 of title 31, United States Code
(commonly known as ‘‘payments in lieu of taxes’’).
(d) REPORTS.—Not later than 1 year after the date on which
the State or the Denali Commission receives a grant under subsection (c), and annually thereafter, the State or the Denali Commission, as the case may be, shall submit a report describing each
project completed with grant funds and any projects planned for
the following year, to—
(1) the Administrator;
(2) the Committee on Resources of the House of Representatives;
(3) the Committee on Environment and Public Works of
the Senate;
(4) the Committee on Appropriations of the House of Representatives; and
(5) the Committee on Appropriations of the Senate.
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this Act, to remain available until
expended—
(1) $20,000,000 for fiscal year 2001; and
(2) such sums as are necessary for each fiscal year thereafter.
TITLE XIII
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
ADMINISTRATIVE PROVISION
SEC. 1301. Of the proceeds in any fiscal year from the sale
of timber on Federal property at the John C. Stennis Space Center,
or on additional real property within the restricted easement area
adjacent to the Center, any funds that are in excess of the amount
necessary for the expenses of commonly accepted forest management
practices on such properties may be retained and used by the
National Aeronautics and Space Administration for the acquisition
from willing sellers of up to a total of 500 acres of real property
to establish education and visitor programs and facilities that promote and preserve the regional and national history of the area,
including the contributions of Stennis Space Center, and, as necessary, for wetlands mitigation.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–315
TITLE XIV—CERTAIN ALASKAN CRUISE SHIP OPERATIONS
SEC. 1401. PURPOSE.
The purpose of this title is to:
(1) Ensure that cruise vessels operating in the waters of
the Alexander Archipelago and the navigable waters of the
United States within the State of Alaska and within the
Kachemak Bay National Estuarine Research Reserve comply
with all applicable environmental laws, including, but not limited to, the Federal Water Pollution Control Act, as amended
(33 U.S.C. 1251 et seq.), the Act to Prevent Pollution from
Ships, as amended (33 U.S.C. 1901 et seq.), and the protections
contained within this title.
(2) Ensure that cruise vessels do not discharge untreated
sewage within the waters of the Alexander Archipelago, the
navigable waters of the United States in the State of Alaska,
or within the Kachemak Bay National Estuarine Research
Reserve.
(3) Prevent the unregulated discharge of treated sewage
and graywater while in ports in the State of Alaska or traveling
near the shore in the Alexander Archipelago and the navigable
waters of the United States in the State of Alaska or within
the Kachemak Bay National Estuarine Research Reserve.
(4) Ensure that discharges of sewage and graywater from
cruise vessels operating in the Alexander Archipelago and the
navigable waters of the United States in the State of Alaska
or within the Kachemak Bay National Estuarine Research
Reserve can be monitored for compliance with the requirements
contained in this title.
SEC. 1402. APPLICABILITY.
This title applies to all cruise vessels authorized to carry 500
or more passengers for hire.
SEC. 1403. PROHIBITION ON DISCHARGE OF UNTREATED SEWAGE.
No person shall discharge any untreated sewage from a cruise
vessel into the waters of the Alexander Archipelago or the navigable
waters of the United States within the State of Alaska or within
the Kachemak Bay National Estuarine Research Reserve.
SEC. 1404. LIMITATIONS ON DISCHARGE OF TREATED SEWAGE OR
GRAYWATER.
(a) No person shall discharge any treated sewage or graywater
from a cruise vessel into the waters of the Alexander Archipelago
or the navigable waters of the United States within the State
of Alaska or within the Kachemak Bay National Estuarine Research
Reserve unless—
(1) the cruise vessel is underway and proceeding at a
speed of not less than six knots;
(2) the cruise vessel is not less than one nautical mile
from the nearest shore, except in areas designated by the
Secretary, in consultation with the State of Alaska;
(3) the discharge complies with all applicable cruise vessel
effluent standards established pursuant to this title and any
other applicable law; and
(4) the cruise vessel is not in an area where the discharge
of treated sewage or graywater is prohibited.
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114 STAT. 2763A–316
PUBLIC LAW 106–554—APPENDIX D
(b) The Administrator, in consultation with the Secretary, may
promulgate regulations allowing the discharge of treated sewage
or graywater, otherwise prohibited under paragraphs (a)(1) and
(a)(2) of this section, where the discharge meets effluent standards
determined by the Administrator as appropriate for discharges into
the marine environment. In promulgating such regulations, the
Administrator shall take into account the best available scientific
information on the environmental effects of the regulated discharges. The effluent discharge standards promulgated under this
section shall, at a minimum, be consistent with all relevant State
of Alaska water quality standards in force at the time of the
enactment of this title.
(c) Until such time as the Administrator promulgates regulations under paragraph (b) of this section, treated sewage and
graywater may be discharged from vessels subject to this title
in circumstances otherwise prohibited under paragraphs (a)(1) and
(a)(2) of this section, provided that—
(1) the discharge satisfies the minimum level of effluent
quality specified in 40 CFR 133.102, as in effect on the date
of enactment of this section;
(2) the geometric mean of the samples from the discharge
during any 30-day period does not exceed 20 fecal coliform/
100 ml and not more than 10 percent of the samples exceed
40 fecal coliform/100 ml;
(3) concentrations of total residual chlorine may not exceed
10.0 µg/l; and
(4) prior to any such discharge occurring, the owner, operator or master, or other person in charge of a cruise vessel,
can demonstrate test results from at least five samples taken
from the vessel representative of the effluent to be discharged,
on different days over a 30-day period, conducted in accordance
with the guidelines promulgated by the Administrator in 40
CFR Part 136, which confirm that the water quality of the
effluents proposed for discharge is in compliance with paragraphs (1), (2), and (3) of this subsection. To the extent not
otherwise being done by the owner, operator, master or other
person in charge of a cruise vessel pursuant to section 1406,
the owner, operator, master or other person in charge of a
cruise vessel shall demonstrate continued compliance through
periodic sampling. Such sampling and test results shall be
considered environmental compliance records that must be
made available for inspection pursuant to section 1406(d) of
this title.
SEC. 1405. SAFETY EXCEPTION.
Sections 1403 and 1404 of this title shall not apply to discharges
made for the purpose of securing the safety of the cruise vessel
or saving life at sea, provided that all reasonable precautions have
been taken for the purpose of preventing or minimizing the discharge.
SEC. 1406. INSPECTION AND SAMPLING REGIME.
(a) The Secretary shall incorporate into the commercial vessel
examination program an inspection regime sufficient to verify that
cruise vessels visiting ports in the State of Alaska or operating
in the waters of the Alexander Archipelago or the navigable waters
of the United States within the State of Alaska or within the
Kachemak Bay National Estuarine Research Reserve are in full
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–317
compliance with this title, the Federal Water Pollution Control
Act, as amended, and any regulations issued thereunder, other
applicable Federal laws and regulations, and all applicable international treaty requirements.
(b) The inspection regime shall, at a minimum, include—
(1) examination of environmental compliance records and
procedures; and
(2) inspection of the functionality and proper operation
of installed equipment for abatement and control of any discharge.
(c) The inspection regime may—
(1) include unannounced inspections of any aspect of cruise
vessel operations, equipment or discharges pertinent to the
verification under subsection (a) of this section; and
(2) require the owner, operator or master, or other person
in charge of a cruise vessel subject to this title to maintain
and produce a logbook detailing the times, types, volumes or
flow rates and locations of any discharges of sewage or
graywater under this title.
(d) The inspection regime shall incorporate a plan for sampling
and testing cruise vessel discharges to ensure that any discharges
of sewage or graywater are in compliance with this title, the Federal
Water Pollution Control Act, as amended, and any other applicable
laws and regulations, and may require the owner, operator or
master, or other person in charge of a cruise vessel subject to
this title to conduct such samples or tests, and to produce any
records of such sampling or testing at the request of the Secretary
or Administrator.
SEC. 1407. CRUISE VESSEL EFFLUENT STANDARDS.
Pursuant to this title and the authority of the Federal Water
Pollution Control Act, as amended, the Administrator may promulgate effluent standards for treated sewage and graywater from
cruise vessels operating in the waters of the Alexander Archipelago
or the navigable waters of the United States within the State
of Alaska or within the Kachemak Bay National Estuarine Research
Reserve. Regulations implementing such standards shall take into
account the best available scientific information on the environmental effects of the regulated discharges and the availability of
new technologies for wastewater treatment. Until such time as
the Administrator promulgates such effluent standards, treated
sewage effluent discharges shall not have a fecal coliform bacterial
count of greater than 200 per 100 milliliters nor suspended solids
greater than 150 milligrams per liter.
SEC. 1408. REPORTS.
(a) Any owner, operator or master, or other person in charge
of a cruise vessel who has knowledge of a discharge from the
cruise vessel in violation of section 1403 or 1404 or pursuant to
section 1405 of this title, or any regulations promulgated thereunder, shall immediately report that discharge to the Secretary,
who shall provide a copy to the Administrator upon request.
(b) The Secretary may prescribe the form of reports required
under this section.
SEC. 1409. ENFORCEMENT.
(a) ADMINISTRATIVE PENALTIES.—
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114 STAT. 2763A–318
PUBLIC LAW 106–554—APPENDIX D
(1) VIOLATIONS.—Any person who violates section 1403,
1404, 1408, or 1413 of this title, or any regulations promulgated
pursuant to this title may be assessed a class I or class II
civil penalty by the Secretary or Administrator.
(2) CLASSES OF PENALTIES.—
(A) CLASS I.—The amount of a class I civil penalty
under this section may not exceed $10,000 per violation,
except that the maximum amount of any class I civil penalty under this section shall not exceed $25,000. Before
assessing a civil penalty under this clause, the Secretary
or Administrator, as the case may be, shall give to the
person to be assessed such penalty written notice of the
Secretary’s or Administrator’s proposal to assess the penalty and the opportunity to request, within 30 days of
the date the notice is received by such person, a hearing
on the proposed penalty. Such hearing shall not be subject
to section 554 or 556 of title 5, but shall provide a reasonable opportunity to be heard and to present evidence.
(B) CLASS II.—The amount of a class II civil penalty
under this section may not exceed $10,000 per day for
each day during which the violation continues, except that
the maximum amount of any class II civil penalty under
this section shall not exceed $125,000. Except as otherwise
provided in this subsection, a class II civil penalty shall
be assessed and collected in the same manner, and subject
to the same provisions as in the case of civil penalties
assessed and collected after notice and an opportunity for
a hearing on the record in accordance with section 554
of title 5, United States Code. The Secretary and Administrator may issue rules for discovery procedures for hearings
under this paragraph.
(3) RIGHTS OF INTERESTED PERSONS.—
(A) PUBLIC NOTICE.—Before issuing an order assessing
a class II civil penalty under this section, the Secretary
or Administrator, as the case may be, shall provide public
notice of and reasonable opportunity to comment on the
proposed issuance of each order.
(B) PRESENTATION OF EVIDENCE.—Any person who comments on a proposed assessment of a class II civil penalty
under this section shall be given notice of any hearing
held under this paragraph and of the order assessing such
penalty. In any hearing held under this paragraph, such
person shall have a reasonable opportunity to be heard
and present evidence.
(C) RIGHTS OF INTERESTED PERSONS TO A HEARING.—
If no hearing is held under subsection (2) before issuance
of an order assessing a class II civil penalty under this
section, any person who commented on the proposed assessment may petition, within 30 days after the issuance of
such order, the Administrator or Secretary, as the case
may be, to set aside such order and to provide a hearing
on the penalty. If the evidence presented by the petitioner
in support of the petition is material and was not considered in the issuance of the order, the Administrator or
Secretary shall immediately set aside such order and provide a hearing in accordance with subsection (2)(B). If
the Administrator or Secretary denies a hearing under
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–319
this clause, the Administrator or Secretary shall provide
to the petitioner, and publish in the Federal Register, notice
of and the reasons for such denial.
(4) FINALITY OF ORDER.—An order assessing a class II
civil penalty under this paragraph shall become final 30 days
after its issuance unless a petition for judicial review is filed
under subparagraph (6) or a hearing is requested under subsection (3)(C). If such a hearing is denied, such order shall
become final 30 days after such denial.
(5) EFFECT OF ACTION ON COMPLIANCE.—No action by the
Administrator or Secretary under this paragraph shall affect
any person’s obligation to comply with any section of this title.
(6) JUDICIAL REVIEW.—Any person against whom a civil
penalty is assessed under this paragraph or who commented
on the proposed assessment of such penalty in accordance with
subsection (3) may obtain review of such assessment—
(A) in the case of assessment of a class I civil penalty,
in the United States District Court for the District of
Columbia or in the District of Alaska; or
(B) in the case of assessment of a class II civil penalty,
in the United States Court of Appeals for the District
of Columbia Circuit or for any other circuit in which such
person resides or transacts business, by filing a notice
of appeal in such court within the 30-day period beginning
on the date the civil penalty order is issued and by simultaneously sending a copy of such notice by certified mail
to the Administrator or Secretary, as the case may be,
and the Attorney General. The Administrator or Secretary
shall promptly file in such court a certified copy of the
record on which the order was issued. Such court shall
not set aside or remand such order unless there is not
substantial evidence in the record, taken as a whole, to
support the finding of a violation or unless the Administrator’s or Secretary’s assessment of the penalty constitutes
an abuse of discretion and shall not impose additional
civil penalties for the same violation unless the Administrator’s or Secretary’s assessment of the penalty constitutes
an abuse of discretion.
(7) COLLECTION.—If any person fails to pay an assessment
of a civil penalty—
(A) after the assessment has become final, or
(B) after a court in an action brought under subsection
(6) has entered a final judgment in favor of the Administrator or Secretary, as the case may be, the Administrator
or Secretary shall request the Attorney General to bring
a civil action in an appropriate district court to recover
the amount assessed (plus interest at currently prevailing
rates from the date of the final order or the date of the
final judgment, as the case may be). In such an action,
the validity, amount, and appropriateness of such penalty
shall not be subject to review. Any person who fails to
pay on a timely basis the amount of an assessment of
a civil penalty as described in the first sentence of this
subparagraph shall be required to pay, in addition to such
amount and interest, attorneys fees and costs for collection
proceedings and a quarterly nonpayment penalty for each
quarter during which such failure to pay persists. Such
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114 STAT. 2763A–320
PUBLIC LAW 106–554—APPENDIX D
nonpayment penalty shall be in an amount equal to 20
percent of the aggregate amount of such person’s penalties
and nonpayment penalties which are unpaid as of the
beginning of such quarter.
(8) SUBPOENAS.—The Administrator or Secretary, as the
case may be, may issue subpoenas for the attendance and
testimony of witnesses and the production of relevant papers,
books, or documents in connection with hearings under this
section. In case of contumacy or refusal to obey a subpoena
issued pursuant to this subsection and served upon any person,
the district court of the United States for any district in which
such person is found, resides, or transacts business, upon
application by the United States and after notice to such person,
shall have jurisdiction to issue an order requiring such person
to appear and give testimony before the Administrator or Secretary or to appear and produce documents before the Administrator or Secretary, or both, and any failure to obey such
order of the court may be punished by such court as a contempt
thereof.
(b) CIVIL PENALTIES.—
(1) IN GENERAL.—Any person who violates section 1403,
1404, 1408, or 1413 of this title, or any regulations promulgated
pursuant to this title shall be subject to a civil penalty not
to exceed $25,000 per day for each violation. Each day a violation continues constitutes a separate violation.
(2) JURISDICTION.—An action to impose a civil penalty
under this section may be brought in the district court of
the United States for the district in which the defendant is
located, resides, or transacts business, and such court shall
have jurisdiction to assess such penalty.
(3) LIMITATION.—A person is not liable for a civil judicial
penalty under this paragraph for a violation if the person
has been assessed a civil administrative penalty under paragraph (a) for the violation.
(c) DETERMINATION OF AMOUNT.—In determining the amount
of a civil penalty under paragraphs (a) or (b) of this section, the
court, the Secretary or the Administrator, as the case may be,
shall consider the seriousness of the violation or violations, the
economic benefit (if any) resulting from the violation, any history
of such violations, any good-faith efforts to comply with the
applicable requirements, the economic impact of the penalty on
the violator, and other such matters as justice may require.
(d) CRIMINAL PENALTIES.—
(1) NEGLIGENT VIOLATIONS.—Any person who negligently
violates section 1403, 1404, 1408, or 1413 of this title, or
any regulations promulgated pursuant to this title commits
a Class A misdemeanor.
(2) KNOWING VIOLATIONS.—Any person who knowingly violates section 1403, 1404, 1408, or 1413 of this title, or any
regulations promulgated pursuant to this title commits a Class
D felony.
(3) FALSE STATEMENTS.—Any person who knowingly makes
any false statement, representation, or certification in any
record, report or other document filed or required to be maintained under this title or the regulations issued thereunder,
or who falsifies, tampers with, or knowingly renders inaccurate
any testing or monitoring device or method required to be
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–321
maintained under this title, or the regulations issued thereunder, commits a Class D felony.
(e) AWARDS.—
(1) The Secretary, the Administrator, or the court, when
assessing any fines or civil penalties, as the case may be,
may pay from any fines or civil penalties collected under this
section an amount not to exceed one-half of the penalty or
fine collected, to any individual who furnishes information
which leads to the payment of the penalty or fine. If several
individuals provide such information, the amount shall be
divided equitably among such individuals. No officer or
employee of the United States, the State of Alaska or any
federally recognized Tribe who furnishes information or renders
service in the performance of his or her official duties shall
be eligible for payment under this subsection.
(2) The Secretary, Administrator or the court, when assessing any fines or civil penalties, as the case may be, may pay,
from any fines or civil penalties collected under this section,
to the State of Alaska or to any federally recognized Tribe
providing information or investigative assistance which leads
to payment of the penalty or fine, an amount which reflects
the level of information or investigative assistance provided.
Should the State of Alaska or a federally recognized Tribe
and an individual under paragraph (1) of this section be eligible
for an award, the Secretary, the Administrator, or the court,
as the case may be, shall divide the amount equitably.
(f ) LIABILITY IN REM.—A cruise vessel operated in violation
of this title or the regulations issued thereunder is liable in rem
for any fine imposed under subsection (d) of this section or for
any civil penalty imposed under subsections (a) or (b) of this section,
and may be proceeded against in the United States district court
of any district in which the cruise vessel may be found.
(g) COMPLIANCE ORDERS.—
(1) IN GENERAL.—Whenever on the basis of any information
available to him the Administrator finds that any person is
in violation of section 1403, 1404, 1408, or 1413 of this title,
or any regulations promulgated pursuant to this title, the
Administrator shall issue an order requiring such person to
comply with such section or requirement, or shall bring a
civil action in accordance with subsection (b).
(2) COPIES OF ORDERS, SERVICE.—A copy of any order issued
under this subsection shall be sent immediately by the Administrator to the State of Alaska. In any case in which an order
under this subsection is issued to a corporation, a copy of
such order shall be served on any appropriate corporate officer.
Any order issued under this subsection shall be by personal
service, shall state with reasonable specificity the nature of
the violation, and shall specify a time for compliance not to
exceed 30 days in the case of a violation of an interim compliance schedule or operation and maintenance requirement and
not to exceed a time the Administrator determines to be reasonable in the case of a violation of a final deadline, taking into
account the seriousness of the violation and any good faith
efforts to comply with applicable requirements.
(h) CIVIL ACTIONS.—The Administrator is authorized to commence a civil action for appropriate relief, including a permanent
or temporary injunction, for any violation for which he is authorized
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114 STAT. 2763A–322
PUBLIC LAW 106–554—APPENDIX D
to issue a compliance order under this subsection. Any action under
subsection (h) may be brought in the district court of the United
States for the district in which the defendant is located or resides
or is doing business, and such court shall have jurisdiction to
restrain such violation and to require compliance. Notice of the
commencement of such action shall be given immediately to the
State of Alaska.
SEC. 1410. DESIGNATION OF CRUISE VESSEL NO-DISCHARGE ZONES.
If the State of Alaska determines that the protection and
enhancement of the quality of some or all of the waters of the
Alexander Archipelago or the navigable waters of the United States
within the State of Alaska or within the Kachemak Bay National
Estuarine Research Reserve require greater environmental protection, the State of Alaska may petition the Administrator to prohibit
the discharge of graywater and sewage from cruise vessels operating
in such waters. The establishment of such a prohibition shall be
achieved in the same manner as the petitioning process and prohibition of the discharge of sewage pursuant to section 312(f ) of the
Federal Water Pollution Control Act, as amended, and the regulations promulgated thereunder.
SEC. 1411. SAVINGS CLAUSE.
(a) Nothing in this title shall be construed as restricting, affecting, or amending any other law or the authority of any department,
instrumentality, or agency of the United States.
(b) Nothing in this title shall in any way affect or restrict,
or be construed to affect or restrict, the authority of the State
of Alaska or any political subdivision thereof—
(1) to impose additional liability or additional requirements;
or
(2) to impose, or determine the amount of a fine or penalty
(whether criminal or civil in nature) for any violation of law;
relating to the discharge of sewage (whether treated or
untreated) or graywater in the waters of the Alexander
Archipelago and the navigable waters of the United States
within the State of Alaska or within the Kachemak Bay
National Estuarine Research Reserve.
SEC. 1412. REGULATIONS.
The Secretary and the Administrator each may prescribe any
regulations necessary to carry out the provisions of this title.
SEC. 1413. INFORMATION GATHERING AUTHORITY.
The authority of sections 308(a) and (b) of the Federal Water
Pollution Control Act, as amended, shall be available to the
Administrator to carry out the provisions of this title. The Administrator and the Secretary shall minimize, to the extent practicable,
duplication of or inconsistency with the inspection, sampling, testing, recordkeeping, and reporting requirements established by the
Secretary under section 1406 of this title.
SEC. 1414. DEFINITIONS.
In this title:
(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the
Administrator of the United States Environmental Protection
Agency.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–323
(2) CRUISE VESSEL.—The term ‘‘cruise vessel’’ means a passenger vessel as defined in section 2101(22) of title 46, United
States Code. The term ‘‘cruise vessel’’ does not include a vessel
of the United States operated by the Federal Government or
a vessel owned and operated by the government of a State.
(3) DISCHARGE.—The term ‘‘discharge’’ means any release
however caused from a cruise vessel, and includes any escape,
disposal, spilling, leaking, pumping, emitting, or emptying.
(4) GRAYWATER.—The term ‘‘graywater’’ means only galley,
dishwasher, bath, and laundry waste water. The term does
not include other wastes or waste streams.
(5) NAVIGABLE WATERS.—The term ‘‘navigable waters’’ has
the same meaning as in section 502 of the Federal Water
Pollution Control Act, as amended.
(6) PERSON.—The term ‘‘person’’ means an individual, corporation, partnership, limited liability company, association,
State, municipality, commission, or political subdivision of a
State, or any federally recognized tribe.
(7) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of the department in which the United States Coast Guard
is operating.
(8) SEWAGE.—The term ‘‘sewage’’ means human body
wastes and the wastes from toilets and other receptacles
intended to receive or retain body waste.
(9) TREATED SEWAGE.—The term ‘‘treated sewage’’ means
sewage meeting all applicable effluent limitation standards and
processing requirements of the Federal Water Pollution Control
Act, as amended and of this title, and regulations promulgated
under either.
(10) UNTREATED SEWAGE.—The term ‘‘untreated sewage’’
means sewage that is not treated sewage.
(11) WATERS OF THE ALEXANDER ARCHIPELAGO.—The term
‘‘waters of the Alexander Archipelago’’ means all waters under
the sovereignty of the United States within or near Southeast
Alaska, beginning at a point 58°11′41′′N, 136°39′25′′W [near
Cape Spencer Light], thence southeasterly along a line three
nautical miles seaward of the baseline from which the breadth
of the territorial sea is measured in the Pacific Ocean and
the Dixon Entrance, except where this line intersects geodesics
connecting the following five pairs of points:
(1) 58°05′17′′N, 136°33′49′′W and 58°11′41′′N,
136°39′25′′W [Cross Sound].
(2) 56°09′40′′N, 134°40′00′′W and 55°49′15′′N,
134°17′40′′W [Chatham Strait].
(3) 55°49′15′′N, 134°17′40′′W and 55°50′30′′N,
133°54′15′′W [Sumner Strait].
(4) 54°41′30′′N, 132°01′00′′W and 54°51′′30′′N,
131°20′45′′W [Clarence Strait].
(5) 54°51′30′′N, 131°20′45′′W and 54°46′15′′N,
130°52′00′′W [Revillagigedo Channel].
The portion of each such geodesic situated beyond three nautical
miles from the baseline from which the breadth of the territorial
sea is measured forms the outer limit of the waters of the Alexander
Archipelago in those five locations.
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114 STAT. 2763A–324
PUBLIC LAW 106–554—APPENDIX D
TITLE XV—LIFE ACT AMENDMENTS
SEC. 1501. SHORT TITLE.
This title may be cited as the ‘‘LIFE Act Amendments of 2000’’.
SEC. 1502. SUBSTITUTION OF ALTERNATIVE ADJUSTMENT PROVISION.
(a) EXTENDED APPLICATION OF SECTION 245(i).—
(1) IN GENERAL.—Paragraph (1) of section 245(i) of the
Immigration and Nationality Act (8 U.S.C. 1255(i)) is
amended—
(A) in subparagraph (A), by striking ‘‘and’’ at the end;
(B) in subparagraph (B)(i), by striking ‘‘January 14,
1998’’ and inserting ‘‘April 30, 2001’’;
(C) in subparagraph (B), by adding ‘‘and’’ at the end;
and
(D) by inserting after subparagraph (B) the following
new subparagraph:
‘‘(C) who, in the case of a beneficiary of a petition for
classification, or an application for labor certification, described
in subparagraph (B) that was filed after January 14, 1998,
is physically present in the United States on the date of the
enactment of the LIFE Act Amendments of 2000;’’.
(2) MODIFICATION IN USE OF FUNDS.—Paragraph (3)(B) of
such section is amended by inserting before the period the
following: ‘‘, except that in the case of fees attributable to
applications for a beneficiary with respect to whom a petition
for classification, or an application for labor certification,
described in paragraph (1)(B) was filed after January 14, 1998,
one-half of such remaining portion shall be deposited by the
Attorney General into the Immigration Examinations Fee
Account established under section 286(m)’’.
(b) CONFORMING AMENDMENTS.—
(1) Subsection (m) of section 245 of the Immigration and
Nationality Act, as added by section 1102(c) of the Legal
Immigration Family Equity Act, is repealed.
(2) Section 245 of the Immigration and Nationality Act,
as amended by section 1102(d)(2) of the Legal Immigration
Family Equity Act, is amended by striking ‘‘or (m)’’ each place
it appears.
SEC. 1503. MODIFICATION OF SECTION 1104 ADJUSTMENT PROVISIONS.
(a) INCLUSION OF ADDITIONAL CLASS.—Section 1104(b) of the
Legal Immigration Family Equity Act is amended—
(1) in paragraph (1), by striking ‘‘or’’ at the end;
(2) in paragraph (2), by striking the period at the end
and inserting ‘‘; or’’; and
(3) by adding at the end the following new paragraph:
‘‘(3) Zambrano v. INS, vacated sub nom. Immigration and
Naturalization Service v. Zambrano, 509 U.S. 918 (1993).’’.
(b) CONFORMING APPLICATION OF CONSENT PROVISION.—Section
1104(c) of the Legal Immigration Family Equity Act is amended
by adding at the end the following new paragraph:
‘‘(10) CONFORMING APPLICATION OF CONSENT PROVISION.—
In addition to the waivers provided in subsection (d)(2) of
such section 245A of the Immigration and Nationality Act,
the Attorney General may grant the alien a waiver of the
grounds of inadmissibility under subparagraphs (A) and (C)
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–325
of section 212(a)(9) of such Act (8 U.S.C. 1182(a)(9)). In granting
such waivers, the Attorney General shall use standards used
in granting consent under subparagraphs (A)(iii) and (C)(ii)
of such section.’’.
(c) INAPPLICABILITY OF REMOVAL ORDER REINSTATEMENT.—Section 1104 of such Act is further amended—
(1) by redesignating subsection (g) as subsection (h); and
(2) by inserting after subsection (f ) the following new subsection:
‘‘(g) INAPPLICABILITY OF REMOVAL ORDER REINSTATEMENT.—
Section 241(a)(5) of the Immigration and Nationality Act shall
not apply with respect to an alien who is applying for adjustment
of status under this section.’’.
SEC. 1504. APPLICATION OF FAMILY UNITY PROVISIONS TO SPOUSES
AND UNMARRIED CHILDREN OF CERTAIN LIFE ACT
BENEFICIARIES.
(a) IMMIGRATION BENEFITS.—Except as provided in subsection
(d), in the case of an eligible spouse or child (as described in
subsection (b)), the Attorney General—
(1) shall not remove the alien on a ground specified in
paragraph (1)(A), (1)(B), (1)(C), or (3)(A) of section 237(a) of
the Immigration and Nationality Act (8 U.S.C. 1227(a)), other
than so much of paragraph (1)(A) of such section as relates
to a ground of inadmissibility described in paragraph (2) or
(3) of section 212(a) of such Act (8 U.S.C. 1182(a)); and
(2) shall authorize the alien to engage in employment in
the United States during the period of time in which protection
is provided under paragraph (1) and shall provide the alien
with an ‘‘employment authorized’’ endorsement or other appropriate document signifying authorization of employment.
(b) ELIGIBLE SPOUSES AND CHILDREN.—For purposes of this
section, the term ‘‘eligible spouse or child’’ means an alien who
is the spouse or unmarried child of an alien described in section
1104(b) of the Legal Immigration Family Equity Act if the spouse
or child—
(1) entered the United States before December 1, 1988;
and
(2) resided in the United States on such date.
(c) PROCESS FOR RELIEF FOR ELIGIBLE SPOUSES AND CHILDREN
OUTSIDE THE UNITED STATES.—If an alien has obtained lawful
permanent resident status under section 1104 of the Legal Immigration Family Equity Act and the alien has an eligible spouse or
child who is no longer physically present in the United States,
the Attorney General shall establish a process under which the
eligible spouse or child may be paroled into the United States
in order to obtain the benefits of subsection (a) unless the Attorney
General finds that the spouse or child would be inadmissible or
deportable on any ground, other than a ground for which the
alien would not be subject to removal under subsection (a)(1). An
alien so paroled shall not be treated as paroled into the United
States for purposes of section 201(c)(4) of the Immigration and
Nationality Act (8 U.S.C. 1151(c)(4)).
(d) EXCEPTION.—An alien is not eligible for the benefits of
this section if the Attorney General finds that—
(1) the alien has been convicted of a felony or three or
more misdemeanors in the United States; or
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114 STAT. 2763A–326
PUBLIC LAW 106–554—APPENDIX D
(2) the alien is described in section 241(b)(3)(B) of the
Immigration and Nationality Act (8 U.S.C. 1231(b)(3)(B)).
(e) APPLICATION OF DEFINITIONS.—Except as otherwise specifically provided in this section, the definitions contained in the
Immigration and Nationality Act shall apply in the administration
of this section.
SEC. 1505. MISCELLANEOUS AMENDMENTS TO VARIOUS ADJUSTMENT
AND RELIEF ACTS.
(a) NICARAGUAN ADJUSTMENT AND CENTRAL AMERICAN RELIEF
ACT.—
(1) IN GENERAL.—Section 202(a) of the Nicaraguan Adjustment and Central American Relief Act is amended—
(A) by redesignating paragraph (2) as paragraph (3);
and
(B) by inserting after paragraph (1) the following new
paragraph:
‘‘(2) RULES IN APPLYING CERTAIN PROVISIONS.—In the case
of an alien described in subsection (b) or (d) who is applying
for adjustment of status under this section—
‘‘(A) the provisions of section 241(a)(5) of the Immigration and Nationality Act shall not apply; and
‘‘(B) the Attorney General may grant the alien a waiver
on the grounds of inadmissibility under subparagraphs (A)
and (C) of section 212(a)(9) of such Act.
In granting waivers under subparagraph (B), the Attorney General shall use standards used in granting consent under subparagraphs (A)(iii) and (C)(ii) of such section 212(a)(9).’’.
(2) PERMITTING MOTION TO REOPEN.—Notwithstanding any
time and number limitations imposed by law on motions to
reopen exclusion, removal, or deportation proceedings (except
limitations premised on an alien’s conviction of an aggravated
felony (as defined by section 101(a) of the Immigration and
Nationality Act)), a national of Cuba or Nicaragua who has
become eligible for adjustment of status under the Nicaraguan
Adjustment and Central American Relief Act as a result of
the amendments made by paragraph (1), may file one motion
to reopen exclusion, deportation, or removal proceedings to
apply for such adjustment under that Act. The scope of any
proceeding reopened on this basis shall be limited to a determination of the alien’s eligibility for adjustment of status under
that Act. All such motions shall be filed within 180 days of
the date of the enactment of this Act.
(b) HAITIAN REFUGEE IMMIGRATION FAIRNESS ACT OF 1998.—
(1) INAPPLICABILITY OF CERTAIN PROVISIONS.—Section
902(a) of the Haitian Refugee Immigration Fairness Act of
1998 is amended—
(A) by redesignating paragraph (2) as paragraph (3);
and
(B) by inserting after paragraph (1) the following new
paragraph:
‘‘(2) INAPPLICABILITY OF CERTAIN PROVISIONS.—In the case
of an alien described in subsection (b) or (d) who is applying
for adjustment of status under this section—
‘‘(A) the provisions of section 241(a)(5) of the Immigration and Nationality Act shall not apply; and
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–327
‘‘(B) the Attorney General may grant the alien a waiver
on the grounds of inadmissibility under subparagraphs (A)
and (C) of section 212(a)(9) of such Act.
In granting waivers under subparagraph (B), the Attorney General shall use standards used in granting consent under subparagraphs (A)(iii) and (C)(ii) of such section 212(a)(9).’’.
(2) PERMITTING MOTION TO REOPEN.—Notwithstanding any
time and number limitations imposed by law on motions to
reopen exclusion, removal, or deportation proceedings (except
limitations premised on an alien’s conviction of an aggravated
felony (as defined by section 101(a) of the Immigration and
Nationality Act)), a national of Haiti who has become eligible
for adjustment of status under the Haitian Refugee Immigration Fairness Act of 1998 as a result of the amendments made
by paragraph (1), may file one motion to reopen exclusion,
deportation, or removal proceedings to apply for such adjustment under that Act. The scope of any proceeding reopened
on this basis shall be limited to a determination of the alien’s
eligibility for adjustment of status under that Act. All such
motions shall be filed within 180 days of the date of the enactment of this Act.
(c) SECTION 309 OF IIRIRA.—Section 309 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 is amended
by adding at the end the following new subsection:
‘‘(h) RELIEF AND MOTIONS TO REOPEN.—
‘‘(1) RELIEF.—An alien described in subsection (c)(5)(C)(i)
who is otherwise eligible for—
‘‘(A) suspension of deportation pursuant to section
244(a) of the Immigration and Nationality Act, as in effect
before the title III–A effective date; or
‘‘(B) cancellation of removal, pursuant to section
240A(b) of the Immigration and Nationality Act and subsection (f ) of this section;
shall not be barred from applying for such relief by operation
of section 241(a)(5) of the Immigration and Nationality Act,
as in effect after the title III–A effective date.
‘‘(2) ADDITIONAL MOTION TO REOPEN PERMITTED.—Notwithstanding any limitation imposed by law on motions to reopen
removal or deportation proceedings (except limitations premised
on an alien’s conviction of an aggravated felony (as defined
by section 101(a) of the Immigration and Nationality Act)),
any alien who is described in subsection (c)(5)(C)(i) and who
has become eligible for cancellation of removal or suspension
of deportation as a result of the enactment of paragraph (1)
may file one motion to reopen removal or deportation proceedings in order to apply for cancellation of removal or suspension
of deportation. The scope of any proceeding reopened on this
basis shall be limited to a determination of the alien’s eligibility
for cancellation of removal or suspension of deportation. The
Attorney General shall designate a specific time period in which
all such motions to reopen are required to be filed. The period
shall begin not later than 60 days after the date of the enactment of this subsection and shall extend for a period not to
exceed 240 days.
‘‘(3) CONSTRUCTION.—Nothing in this subsection shall preclude an alien from filing a motion to reopen pursuant to
section 240(b)(5)(C)(ii) of the Immigration and Nationality Act,
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114 STAT. 2763A–328
PUBLIC LAW 106–554—APPENDIX D
or section 242B(c)(3)(B) of such Act (as in effect before the
title III–A effective date).’’.
SEC. 1506. EFFECTIVE DATE.
This title shall take effect as if included in the enactment
of the Legal Immigration Family Equity Act.
TITLE XVI—IMPROVING LITERACY THROUGH FAMILY
LITERACY PROJECTS
SEC. 1601. SHORT TITLE.
This title may be cited as the ‘‘Literacy Involves Families
Together Act’’.
SEC. 1602. AUTHORIZATION OF APPROPRIATIONS.
Section 1002(b) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6302(b)) is amended by striking
‘‘$118,000,000 for fiscal year 1995’’ and inserting ‘‘$250,000,000
for fiscal year 2001’’.
SEC. 1603. IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.
Section 1111(c) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6311(c)) is amended—
(1) in paragraph (5), by striking ‘‘and’’ at the end;
(2) in paragraph (6), by striking the period at the end
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(7) the State educational agency will encourage local educational agencies and individual schools participating in a program assisted under this part to offer family literacy services
(using funds under this part), if the agency or school determines
that a substantial number of students served under this part
by the agency or school have parents who do not have a high
school diploma or its recognized equivalent or who have low
levels of literacy.’’.
SEC. 1604. EVEN START FAMILY LITERACY PROGRAMS.
(a) PART HEADING.—The part heading for part B of title I
of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
6361 et seq.) is amended to read as follows:
‘‘PART B—WILLIAM F. GOODLING EVEN START
FAMILY LITERACY PROGRAMS’’.
(b) STATEMENT OF PURPOSE.—Section 1201 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6361) is amended—
(1) in paragraph (1), by inserting ‘‘high quality’’ after ‘‘build
on’’; and
(2) by amending paragraph (2) to read as follows:
‘‘(2) promote the academic achievement of children and
adults;’’;
(3) by striking the period at the end of paragraph (3)
and inserting ‘‘; and’’; and
(4) by adding at the end the following:
‘‘(4) use instructional programs based on scientifically based
reading research (as defined in section 2252) and the prevention
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–329
of reading difficulties for children and adults, to the extent
such research is available.’’.
(c) PROGRAM AUTHORIZED.—
(1) RESERVATION FOR MIGRANT PROGRAMS, OUTLYING AREAS,
AND INDIAN TRIBES.—Section 1202(a) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6362(a)) is
amended—
(A) in paragraph (1), in the matter preceding subparagraph (A), by inserting ‘‘(or, if such appropriated amount
exceeds $200,000,000, 6 percent of such amount)’’ after
‘‘1002(b)’’;
(B) in paragraph (2), by striking ‘‘If the amount of
funds made available under this subsection exceeds
$4,600,000,’’ and inserting ‘‘After the date of the enactment
of the Literacy Involves Families Together Act,’’; and
(C) by adding at the end the following:
‘‘(3) COORDINATION OF PROGRAMS FOR AMERICAN INDIANS.—
The Secretary shall ensure that programs under paragraph
(1)(C) are coordinated with family literacy programs operated
by the Bureau of Indian Affairs in order to avoid duplication
and to encourage the dissemination of information on high
quality family literacy programs serving American Indians.’’.
(2) RESERVATION FOR FEDERAL ACTIVITIES.—Section 1202(b)
of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6362(b)) is amended to read as follows:
‘‘(b) RESERVATION FOR FEDERAL ACTIVITIES.—
‘‘(1) EVALUATION, TECHNICAL ASSISTANCE, PROGRAM
IMPROVEMENT, AND REPLICATION ACTIVITIES.—From amounts
appropriated under section 1002(b), the Secretary may reserve
not more than 3 percent of such amounts for purposes of—
‘‘(A) carrying out the evaluation required by section
1209; and
‘‘(B) providing, through grants or contracts with eligible
organizations, technical assistance, program improvement,
and replication activities.
‘‘(2) RESEARCH.—In the case of fiscal years 2001 through
2004, if the amount appropriated under section 1002(b) for
any of such years—
‘‘(A) is equal to or less than the amounts appropriated
for the preceding fiscal year, the Secretary may reserve
from such amount only the amount necessary to continue
multiyear activities carried out pursuant to section 1211(b)
that began during or prior to the preceding fiscal year;
or
‘‘(B) exceeds the amount appropriated for the preceding
fiscal year, the Secretary shall reserve from such excess
amount $2,000,000 or 50 percent, whichever is less, to
carry out section 1211(b).’’.
(d) RESERVATION FOR GRANTS.—Section 1202(c)(1) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6362(c)(1)) is amended—
(1) by striking ‘‘From funds reserved under section
2260(b)(3), the Secretary shall award grants,’’ and inserting
‘‘For any fiscal year for which at least one State applies and
submits an application that meets the requirements and goals
of this subsection and for which the amount appropriated under
section 1002(b) exceeds the amount appropriated under such
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114 STAT. 2763A–330
PUBLIC LAW 106–554—APPENDIX D
section for the preceding fiscal year, the Secretary shall reserve,
from the amount of such excess remaining after the application
of subsection (b)(2), the amount of such remainder or
$1,000,000, whichever is less, to award grants,’’; and
(2) by adding at the end ‘‘No State may receive more
than one grant under this subsection.’’.
(e) ALLOCATIONS.—Section 1202(d)(2) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6362(d)(2)) is amended
by striking ‘‘that section’’ and inserting ‘‘that part’’.
(f ) STATE LEVEL ACTIVITIES.—Section 1203(a) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6363(a)) is
amended—
(1) by striking ‘‘5 percent’’ and inserting ‘‘a total of 6
percent’’; and
(2) in paragraph (1), by inserting before the semicolon
the following: ‘‘, not to exceed half of such total’’.
(g) SUBGRANTS FOR LOCAL PROGRAMS.—Section 1203(b)(2) of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
6363(b)(2)) is amended to read as follows:
‘‘(2) MINIMUM SUBGRANT AMOUNTS.—
‘‘(A) IN GENERAL.—Except as provided in subparagraphs (B) and (C), no State shall award a subgrant under
paragraph (1) in an amount less than $75,000.
‘‘(B) SUBGRANTEES IN NINTH AND SUCCEEDING YEARS.—
No State shall award a subgrant under paragraph (1) in
an amount less than $52,500 to an eligible entity for a
fiscal year to carry out an Even Start program that is
receiving assistance under this part or its predecessor
authority for the ninth (or any subsequent) fiscal year.
‘‘(C) EXCEPTION FOR SINGLE SUBGRANT.—A State may
award one subgrant in each fiscal year of sufficient size,
scope, and quality to be effective in an amount less than
$75,000 if, after awarding subgrants under paragraph (1)
for such fiscal year in accordance with subparagraphs (A)
and (B), less than $75,000 is available to the State to
award such subgrants.’’.
(h) USES OF FUNDS.—Section 1204 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6364) is amended—
(1) in subsection (a), by striking ‘‘family-centered education
programs’’ and inserting ‘‘family literacy services’’; and
(2) by adding at the end the following:
‘‘(c) USE OF FUNDS FOR FAMILY LITERACY SERVICES.—
‘‘(1) IN GENERAL.—From funds reserved under section
1203(a), a State may use a portion of such funds to assist
eligible entities receiving a subgrant under section 1203(b) in
improving the quality of family literacy services provided under
Even Start programs under this part, except that in no case
may a State’s use of funds for this purpose for a fiscal year
result in a decrease from the level of activities and services
provided to program participants in the preceding year.
‘‘(2) PRIORITY.—In carrying out paragraph (1), a State shall
give priority to programs that were of low quality, as evaluated
based on the indicators of program quality developed by the
State under section 1210.
‘‘(3) TECHNICAL ASSISTANCE TO HELP LOCAL PROGRAMS RAISE
ADDITIONAL FUNDS.—In carrying out paragraph (1), a State
may use the funds referred to in such paragraph to provide
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–331
technical assistance to help local programs of demonstrated
effectiveness to access and leverage additional funds for the
purpose of expanding services and reducing waiting lists,
including requesting and applying for non-Federal resources.
‘‘(4) TECHNICAL ASSISTANCE AND TRAINING.—Assistance
under paragraph (1) shall be in the form of technical assistance
and training, provided by a State through a grant, contract,
or cooperative agreement with an entity that has experience
in offering high quality training and technical assistance to
family literacy providers.’’.
(i) PROGRAM ELEMENTS.—Section 1205 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6365) is amended—
(1) by redesignating paragraphs (9) and (10) as paragraphs
(14) and (15), respectively;
(2) by redesignating paragraphs (5) through (8) as paragraphs (6) through (9), respectively;
(3) by inserting after paragraph (4) the following:
‘‘(5) with respect to the qualifications of staff the cost
of whose salaries are paid, in whole or in part, with Federal
funds provided under this part, ensure that—
‘‘(A) not later than 4 years after the date of the enactment of the Literacy Involves Families Together Act—
‘‘(i) a majority of the individuals providing academic instruction—
‘‘(I) shall have obtained an associate’s, bachelor’s, or graduate degree in a field related to
early childhood education, elementary or secondary
school education, or adult education; and
‘‘(II) if applicable, shall meet qualifications
established by the State for early childhood education, elementary or secondary school education,
or adult education provided as part of an Even
Start program or another family literacy program;
‘‘(ii) the individual responsible for administration
of family literacy services under this part has received
training in the operation of a family literacy program;
and
‘‘(iii) paraprofessionals who provide support for
academic instruction have a high school diploma or
its recognized equivalent; and
‘‘(B) beginning on the date of the enactment of the
Literacy Involves Families Together Act, all new personnel
hired to provide academic instruction—
‘‘(i) have obtained an associate’s, bachelor’s, or
graduate degree in a field related to early childhood
education, elementary or secondary school education,
or adult education; and
‘‘(ii) if applicable, meet qualifications established
by the State for early childhood education, elementary
or secondary school education, or adult education provided as part of an Even Start program or another
family literacy program;’’;
(4) in paragraph (8) (as so redesignated by paragraph (2),
by striking ‘‘or enrichment’’ and inserting ‘‘and enrichment’’.
(5) by inserting after paragraph (9) (as so redesignated
by paragraph (2)) the following:
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114 STAT. 2763A–332
PUBLIC LAW 106–554—APPENDIX D
‘‘(10) use instructional programs based on scientifically
based reading research (as defined in section 2252) for children
and adults, to the extent such research is available;
‘‘(11) encourage participating families to attend regularly
and to remain in the program a sufficient time to meet their
program goals;
‘‘(12) include reading readiness activities for preschool children based on scientifically based reading research (as defined
in section 2252), to the extent available, to ensure children
enter school ready to learn to read;
‘‘(13) if applicable, promote the continuity of family literacy
to ensure that individuals retain and improve their educational
outcomes’’; and
(5) in paragraph (14) (as so redesignated), by striking ‘‘program.’’ and inserting ‘‘program to be used for program improvement.’’.
( j) ELIGIBLE PARTICIPANTS.—Section 1206 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6366) is amended—
(1) in subsection (a)(1)(B) by striking ‘‘part;’’ and inserting
‘‘part, or who are attending secondary school;’’; and
(2) in subsection (b), by adding at the end the following:
‘‘(3) CHILDREN 8 YEARS OF AGE OR OLDER.—If an Even
Start program assisted under this part collaborates with a
program under part A, and funds received under such part
A program contribute to paying the cost of providing programs
under this part to children 8 years of age or older, the Even
Start program, notwithstanding subsection (a)(2), may permit
the participation of children 8 years of age or older if the
focus of the program continues to remain on families with
young children.’’.
(k) PLAN.—Section 1207(c) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6367(c)) is amended—
(1) in paragraph (1)—
(A) in the matter preceding subparagraph (A), by
inserting ‘‘and continuous improvement’’ after ‘‘plan of operation’’;
(B) in subparagraph (A), by striking ‘‘goals;’’ and inserting ‘‘objectives, strategies to meet such objectives, and how
they are consistent with the program indicators established
by the State;’’;
(C) in subparagraph (E), by striking ‘‘and’’ at the end;
(D) in subparagraph (F)—
(i) by striking ‘‘Act, the Goals 2000: Educate America Act,’’ and inserting ‘‘Act’’; and
(ii) by striking the period at the end and inserting
‘‘; and’’; and
(E) by adding at the end the following:
‘‘(G) a description of how the plan provides for rigorous
and objective evaluation of progress toward the program
objectives described in subparagraph (A) and for continuing
use of evaluation data for program improvement.’’; and
(2) in paragraph (2), in the matter preceding subparagraph
(A), by striking ‘‘(1)(A)’’ and inserting ‘‘(1)’’.
(l) AWARD OF SUBGRANTS.—Section 1208 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6368) is amended—
(1) in subsection (a)—
(A) in paragraph (1)(B)—
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–333
(i) by striking ‘‘including a high’’ and inserting
‘‘such as a high’’; and
(ii) by striking ‘‘part A;’’ and inserting ‘‘part A,
a high number or percentage of parents who have
been victims of domestic violence, or a high number
or percentage of parents who are receiving assistance
under a State program funded under part A of title
IV of the Social Security Act (42 U.S.C. 601 et seq.);’’;
(B) in paragraph (1)(F), by striking ‘‘Federal’’ and
inserting ‘‘non-Federal’’;
(C) in paragraph (1)(H), by inserting ‘‘family literacy
projects and other’’ before ‘‘local educational agencies’’; and
(D) in paragraph (3), in the matter preceding subparagraph (A), by striking ‘‘one or more of the following individuals:’’ and inserting ‘‘one individual with expertise in family
literacy programs, and may include other individuals, such
as one or more of the following:’’; and
(2) in subsection (b)—
(A) by striking paragraph (3) and inserting the following:
‘‘(3) CONTINUING ELIGIBILITY.—In awarding subgrant funds
to continue a program under this part after the first year,
the State educational agency shall review the progress of each
eligible entity in meeting the objectives of the program referred
to in section 1207(c)(1)(A) and shall evaluate the program based
on the indicators of program quality developed by the State
under section 1210.’’; and
(B) by amending paragraph (5)(B) to read as follows:
‘‘(B) The Federal share of any subgrant renewed under
subparagraph (A) shall be limited in accordance with section
1204(b).’’.
(m) RESEARCH.—Section 1211 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6369b) is amended—
(1) in subsection (b), by striking ‘‘subsection (a)’’ and inserting ‘‘subsections (a) and (b)’’;
(2) by redesignating subsection (b) as subsection (c); and
(3) by inserting after subsection (a) the following:
‘‘(b) SCIENTIFICALLY BASED RESEARCH ON FAMILY LITERACY.—
‘‘(1) IN GENERAL.—From amounts reserved under section
1202(b)(2), the National Institute for Literacy, in consultation
with the Secretary, shall carry out research that—
‘‘(A) is scientifically based reading research (as defined
in section 2252); and
‘‘(B) determines—
‘‘(i) the most effective ways of improving the literacy skills of adults with reading difficulties; and
‘‘(ii) how family literacy services can best provide
parents with the knowledge and skills they need to
support their children’s literacy development.
‘‘(2) USE OF EXPERT ENTITY.—The National Institute for
Literacy, in consultation with the Secretary, shall carry out
the research under paragraph (1) through an entity, including
a Federal agency, that has expertise in carrying out longitudinal
studies of the development of literacy skills in children and
has developed effective interventions to help children with reading difficulties.’’.
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114 STAT. 2763A–334
PUBLIC LAW 106–554—APPENDIX D
(n) INDICATORS OF PROGRAM QUALITY.—Not later than 30 days
after the date of the enactment of this Act, the Secretary shall
notify each State that receives funds under part B of title I of
the Elementary and Secondary Education Act of 1965 that to be
eligible to receive fiscal year 2001 funds under part B, such State
shall submit to the Secretary, not later than June 30, 2001, its
indicators of program quality as described in section 1210 of the
Elementary and Secondary Education Act of 1965. A State that
fails to comply with this subsection shall be ineligible to receive
funds under such part in subsequent years unless such State submits to the Secretary, not later than June 30 of the year in which
funds are requested, its indicators of program quality as described
in section 1210 of the Elementary and Secondary Education Act
of 1965.
SEC. 1605. EDUCATION OF MIGRATORY CHILDREN.
Section 1304(b) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6394(b)) is amended—
(1) in paragraph (5), by striking ‘‘and’’ at the end;
(2) in paragraph (6), by striking the period at the end
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(7) a description of how the State will encourage programs
and projects assisted under this part to offer family literacy
services if the program or project serves a substantial number
of migratory children who have parents who do not have a
high school diploma or its recognized equivalent or who have
low levels of literacy.’’.
SEC. 1606. DEFINITIONS.
(a) IN GENERAL.—Section 14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801) is amended—
(1) by redesignating paragraphs (15) through (29) as paragraphs (16) through (30), respectively; and
(2) by inserting after paragraph (14) the following:
‘‘(15) FAMILY LITERACY SERVICES.—The term ‘family literacy
services’ means services provided to participants on a voluntary
basis that are of sufficient intensity in terms of hours, and
of sufficient duration, to make sustainable changes in a family,
and that integrate all of the following activities:
‘‘(A) Interactive literacy activities between parents and
their children.
‘‘(B) Training for parents regarding how to be the primary teacher for their children and full partners in the
education of their children.
‘‘(C) Parent literacy training that leads to economic
self-sufficiency.
‘‘(D) An age-appropriate education to prepare children
for success in school and life experiences.’’.
(b) CONFORMING AMENDMENTS.—
(1) EVEN START FAMILY LITERACY PROGRAMS.—Section
1202(e) of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6362(e)) is amended—
(A) by striking paragraph (3); and
(B) by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–335
(2) READING AND LITERACY GRANTS.—(A) Section 2252 of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
6661a) is amended—
(i) by striking paragraph (2); and
(ii) by redesignating paragraphs (3) through (5) as
paragraphs (2) through (4), respectively.
(B) Section 2260 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6661i) is amendmed—
(i) in subsection (a), by striking ‘‘and section 1202(c)’’
each place it appears, and
(ii) in subsection (b)—
(I) in paragraph (1), by inserting ‘‘and’’ after the
semicolon;
(II) in paragraph (2), by striking ‘‘; and ’’ and
inserting a period; and
(III) by striking paragraph (3).
SEC. 1607. INDIAN EDUCATION.
(a) EARLY CHILDHOOD DEVELOPMENT PROGRAM.—Section 1143
of the Education Amendments of 1978 (25 U.S.C. 2023) is
amended—
(1) in subsection (b)(1), in the matter preceding subparagraph (A)—
(A) by striking ‘‘(f )’’ and inserting ‘‘(g)’’; and
(B) by striking ‘‘(e))’’ and inserting ‘‘(f ))’’;
(2) in subsection (d)(1)—
(A) by redesignating subparagraphs (D) and (E) as
subparagraphs (E) and (F), respectively; and
(B) by inserting after subparagraph (C) the following:
‘‘(D) family literacy services,’’;
(3) in subsection (e), by striking ‘‘(f ),’’ and inserting ‘‘(g),’’;
(4) by redesignating subsections (e) and (f ) as subsections
(f ) and (g), respectively; and
(5) by inserting after subsection (d) the following:
‘‘(e) Family literacy programs operated under this section, and
other family literacy programs operated by the Bureau of Indian
Affairs, shall be coordinated with family literacy programs for American Indian children under part B of title I of the Elementary
and Secondary Education Act of 1965 in order to avoid duplication
and to encourage the dissemination of information on quality family
literacy programs serving American Indians.’’.
(b) DEFINITIONS.—Section 1146 of the Education Amendments
of 1978 (25 U.S.C. 2026) is amended—
(1) by redesignating paragraphs (7) through (14) as paragraphs (8) through (15), respectively; and
(2) by inserting after paragraph (6) the following:
‘‘(7) the term ‘family literacy services’ has the meaning
given such term in section 14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801);’’.
TITLE XVII—CHILDREN’S INTERNET
PROTECTION
SEC. 1701. SHORT TITLE.
This title may be cited as the ‘‘Children’s Internet Protection
Act’’.
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114 STAT. 2763A–336
PUBLIC LAW 106–554—APPENDIX D
SEC. 1702. DISCLAIMERS.
(a) DISCLAIMER REGARDING CONTENT.—Nothing in this title
or the amendments made by this title shall be construed to prohibit
a local educational agency, elementary or secondary school, or
library from blocking access on the Internet on computers owned
or operated by that agency, school, or library to any content other
than content covered by this title or the amendments made by
this title.
(b) DISCLAIMER REGARDING PRIVACY.—Nothing in this title or
the amendments made by this title shall be construed to require
the tracking of Internet use by any identifiable minor or adult
user.
SEC. 1703. STUDY OF TECHNOLOGY PROTECTION MEASURES.
(a) IN GENERAL.—Not later than 18 months after the date
of the enactment of this Act, the National Telecommunications
and Information Administration shall initiate a notice and comment
proceeding for purposes of—
(1) evaluating whether or not currently available technology
protection measures, including commercial Internet blocking
and filtering software, adequately addresses the needs of educational institutions;
(2) making recommendations on how to foster the development of measures that meet such needs; and
(3) evaluating the development and effectiveness of local
Internet safety policies that are currently in operation after
community input.
(b) DEFINITIONS.—In this section:
(1) TECHNOLOGY PROTECTION MEASURE.—The term ‘‘technology protection measure’’ means a specific technology that
blocks or filters Internet access to visual depictions that are—
(A) obscene, as that term is defined in section 1460
of title 18, United States Code;
(B) child pornography, as that term is defined in section
2256 of title 18, United States Code; or
(C) harmful to minors.
(2) HARMFUL TO MINORS.—The term ‘‘harmful to minors’’
means any picture, image, graphic image file, or other visual
depiction that—
(A) taken as a whole and with respect to minors,
appeals to a prurient interest in nudity, sex, or excretion;
(B) depicts, describes, or represents, in a patently offensive way with respect to what is suitable for minors, an
actual or simulated sexual act or sexual contact, actual
or simulated normal or perverted sexual acts, or a lewd
exhibition of the genitals; and
(C) taken as a whole, lacks serious literary, artistic,
political, or scientific value as to minors.
(3) SEXUAL ACT; SEXUAL CONTACT.—The terms ‘‘sexual act’’
and ‘‘sexual contact’’ have the meanings given such terms in
section 2246 of title 18, United States Code.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–337
Subtitle A—Federal Funding for
Educational Institution Computers
SEC. 1711. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR
SCHOOLS.
Title III of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6801 et seq.) is amended by adding at the end
the following:
‘‘PART F—LIMITATION ON AVAILABILITY OF
CERTAIN FUNDS FOR SCHOOLS
‘‘SEC. 3601. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR
SCHOOLS.
‘‘(a) INTERNET SAFETY.—
‘‘(1) IN GENERAL.—No funds made available under this
title to a local educational agency for an elementary or secondary school that does not receive services at discount rates
under section 254(h)(5) of the Communications Act of 1934,
as added by section 1721 of Children’s Internet Protection
Act, may be used to purchase computers used to access the
Internet, or to pay for direct costs associated with accessing
the Internet, for such school unless the school, school board,
local educational agency, or other authority with responsibility
for administration of such school both—
‘‘(A)(i) has in place a policy of Internet safety for minors
that includes the operation of a technology protection measure with respect to any of its computers with Internet
access that protects against access through such computers
to visual depictions that are—
‘‘(I) obscene;
‘‘(II) child pornography; or
‘‘(III) harmful to minors; and
‘‘(ii) is enforcing the operation of such technology
protection measure during any use of such computers by
minors; and
‘‘(B)(i) has in place a policy of Internet safety that
includes the operation of a technology protection measure
with respect to any of its computers with Internet access
that protects against access through such computers to
visual depictions that are—
‘‘(I) obscene; or
‘‘(II) child pornography; and
‘‘(ii) is enforcing the operation of such technology
protection measure during any use of such computers.
‘‘(2) TIMING AND APPLICABILITY OF IMPLEMENTATION.—
‘‘(A) IN GENERAL.—The local educational agency with
responsibility for a school covered by paragraph (1) shall
certify the compliance of such school with the requirements
of paragraph (1) as part of the application process for
the next program funding year under this Act following
the effective date of this section, and for each subsequent
program funding year thereafter.
‘‘(B) PROCESS.—
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114 STAT. 2763A–338
PUBLIC LAW 106–554—APPENDIX D
‘‘(i) SCHOOLS WITH INTERNET SAFETY POLICIES AND
TECHNOLOGY PROTECTION MEASURES IN PLACE.—A local
educational agency with responsibility for a school covered by paragraph (1) that has in place an Internet
safety policy meeting the requirements of paragraph
(1) shall certify its compliance with paragraph (1) during each annual program application cycle under this
Act.
‘‘(ii) SCHOOLS WITHOUT INTERNET SAFETY POLICIES
AND TECHNOLOGY PROTECTION MEASURES IN PLACE.—
A local educational agency with responsibility for a
school covered by paragraph (1) that does not have
in place an Internet safety policy meeting the requirements of paragraph (1)—
‘‘(I) for the first program year after the effective date of this section in which the local educational agency is applying for funds for such
school under this Act, shall certify that it is undertaking such actions, including any necessary
procurement procedures, to put in place an Internet safety policy that meets such requirements;
and
‘‘(II) for the second program year after the
effective date of this section in which the local
educational agency is applying for funds for such
school under this Act, shall certify that such school
is in compliance with such requirements.
Any school covered by paragraph (1) for which the
local educational agency concerned is unable to certify
compliance with such requirements in such second program year shall be ineligible for all funding under
this title for such second program year and all subsequent program years until such time as such school
comes into compliance with such requirements.
‘‘(iii) WAIVERS.—Any school subject to a certification under clause (ii)(II) for which the local educational agency concerned cannot make the certification otherwise required by that clause may seek
a waiver of that clause if State or local procurement
rules or regulations or competitive bidding requirements prevent the making of the certification otherwise
required by that clause. The local educational agency
concerned shall notify the Secretary of the applicability
of that clause to the school. Such notice shall certify
that the school will be brought into compliance with
the requirements in paragraph (1) before the start
of the third program year after the effective date of
this section in which the school is applying for funds
under this title.
‘‘(3) DISABLING DURING CERTAIN USE.—An administrator,
supervisor, or person authorized by the responsible authority
under paragraph (1) may disable the technology protection
measure concerned to enable access for bona fide research
or other lawful purposes.
‘‘(4) NONCOMPLIANCE.—
‘‘(A) USE OF GENERAL EDUCATION PROVISIONS ACT REMEDIES.—Whenever the Secretary has reason to believe that
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–339
any recipient of funds under this title is failing to comply
substantially with the requirements of this subsection, the
Secretary may—
‘‘(i) withhold further payments to the recipient
under this title,
‘‘(ii) issue a complaint to compel compliance of
the recipient through a cease and desist order, or
‘‘(iii) enter into a compliance agreement with a
recipient to bring it into compliance with such requirements,
in same manner as the Secretary is authorized to take
such actions under sections 455, 456, and 457, respectively,
of the General Education Provisions Act (20 U.S.C. 1234d).
‘‘(B) RECOVERY OF FUNDS PROHIBITED.—The actions
authorized by subparagraph (A) are the exclusive remedies
available with respect to the failure of a school to comply
substantially with a provision of this subsection, and the
Secretary shall not seek a recovery of funds from the recipient for such failure.
‘‘(C) RECOMMENCEMENT OF PAYMENTS.—Whenever the
Secretary determines (whether by certification or other
appropriate evidence) that a recipient of funds who is subject to the withholding of payments under subparagraph
(A)(i) has cured the failure providing the basis for the
withholding of payments, the Secretary shall cease the
withholding of payments to the recipient under that
subparagraph.
‘‘(5) DEFINITIONS.—In this section:
‘‘(A) COMPUTER.—The term ‘computer’ includes any
hardware, software, or other technology attached or connected to, installed in, or otherwise used in connection
with a computer.
‘‘(B) ACCESS TO INTERNET.—A computer shall be considered to have access to the Internet if such computer is
equipped with a modem or is connected to a computer
network which has access to the Internet.
‘‘(C) ACQUISITION OR OPERATION.—A elementary or
secondary school shall be considered to have received funds
under this title for the acquisition or operation of any
computer if such funds are used in any manner, directly
or indirectly—
‘‘(i) to purchase, lease, or otherwise acquire or
obtain the use of such computer; or
‘‘(ii) to obtain services, supplies, software, or other
actions or materials to support, or in connection with,
the operation of such computer.
‘‘(D) MINOR.—The term ‘minor’ means an individual
who has not attained the age of 17.
‘‘(E) CHILD PORNOGRAPHY.—The term ‘child pornography’ has the meaning given such term in section 2256
of title 18, United States Code.
‘‘(F) HARMFUL TO MINORS.—The term ‘harmful to
minors’ means any picture, image, graphic image file, or
other visual depiction that—
‘‘(i) taken as a whole and with respect to minors,
appeals to a prurient interest in nudity, sex, or excretion;
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114 STAT. 2763A–340
PUBLIC LAW 106–554—APPENDIX D
‘‘(ii) depicts, describes, or represents, in a patently
offensive way with respect to what is suitable for
minors, an actual or simulated sexual act or sexual
contact, actual or simulated normal or perverted sexual
acts, or a lewd exhibition of the genitals; and
‘‘(iii) taken as a whole, lacks serious literary, artistic, political, or scientific value as to minors.
‘‘(G) OBSCENE.—The term ‘obscene’ has the meaning
given such term in section 1460 of title 18, United States
Code.
‘‘(H) SEXUAL ACT; SEXUAL CONTACT.—The terms ‘sexual
act’ and ‘sexual contact’ have the meanings given such
terms in section 2246 of title 18, United States Code.
‘‘(b) EFFECTIVE DATE.—This section shall take effect 120 days
after the date of the enactment of the Children’s Internet Protection
Act.
‘‘(c) SEPARABILITY.—If any provision of this section is held
invalid, the remainder of this section shall not be affected thereby.’’.
SEC. 1712. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR
LIBRARIES.
(a) AMENDMENT.—Section 224 of the Museum and Library Services Act (20 U.S.C. 9134(b)) is amended—
(1) in subsection (b)—
(A) by redesignating paragraph (6) as paragraph (7);
and
(B) by inserting after paragraph (5) the following new
paragraph:
‘‘(6) provide assurances that the State will comply with
subsection (f ); and’’; and
(2) by adding at the end the following new subsection:
‘‘(f ) INTERNET SAFETY.—
‘‘(1) IN GENERAL.—No funds made available under this
Act for a library described in section 213(2)(A) or (B) that
does not receive services at discount rates under section
254(h)(6) of the Communications Act of 1934, as added by
section 1721 of this Children’s Internet Protection Act, may
be used to purchase computers used to access the Internet,
or to pay for direct costs associated with accessing the Internet,
for such library unless—
‘‘(A) such library—
‘‘(i) has in place a policy of Internet safety for
minors that includes the operation of a technology
protection measure with respect to any of its computers
with Internet access that protects against access
through such computers to visual depictions that are—
‘‘(I) obscene;
‘‘(II) child pornography; or
‘‘(III) harmful to minors; and
‘‘(ii) is enforcing the operation of such technology
protection measure during any use of such computers
by minors; and
‘‘(B) such library—
‘‘(i) has in place a policy of Internet safety that
includes the operation of a technology protection measure with respect to any of its computers with Internet
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–341
access that protects against access through such
computers to visual depictions that are—
‘‘(I) obscene; or
‘‘(II) child pornography; and
‘‘(ii) is enforcing the operation of such technology
protection measure during any use of such computers.
‘‘(2) ACCESS TO OTHER MATERIALS.—Nothing in this subsection shall be construed to prohibit a library from limiting
Internet access to or otherwise protecting against materials
other than those referred to in subclauses (I), (II), and (III)
of paragraph (1)(A)(i).
‘‘(3) DISABLING DURING CERTAIN USE.—An administrator,
supervisor, or other authority may disable a technology protection measure under paragraph (1) to enable access for bona
fide research or other lawful purposes.
‘‘(4) TIMING AND APPLICABILITY OF IMPLEMENTATION.—
‘‘(A) IN GENERAL.—A library covered by paragraph (1)
shall certify the compliance of such library with the requirements of paragraph (1) as part of the application process
for the next program funding year under this Act following
the effective date of this subsection, and for each subsequent program funding year thereafter.
‘‘(B) PROCESS.—
‘‘(i) LIBRARIES WITH INTERNET SAFETY POLICIES AND
TECHNOLOGY PROTECTION MEASURES IN PLACE.—A
library covered by paragraph (1) that has in place
an Internet safety policy meeting the requirements
of paragraph (1) shall certify its compliance with paragraph (1) during each annual program application cycle
under this Act.
‘‘(ii) LIBRARIES WITHOUT INTERNET SAFETY POLICIES
AND TECHNOLOGY PROTECTION MEASURES IN PLACE.—
A library covered by paragraph (1) that does not have
in place an Internet safety policy meeting the requirements of paragraph (1)—
‘‘(I) for the first program year after the effective date of this subsection in which the library
applies for funds under this Act, shall certify that
it is undertaking such actions, including any necessary procurement procedures, to put in place
an Internet safety policy that meets such requirements; and
‘‘(II) for the second program year after the
effective date of this subsection in which the
library applies for funds under this Act, shall certify that such library is in compliance with such
requirements.
Any library covered by paragraph (1) that is unable
to certify compliance with such requirements in such
second program year shall be ineligible for all funding
under this Act for such second program year and all
subsequent program years until such time as such
library comes into compliance with such requirements.
‘‘(iii) WAIVERS.—Any library subject to a certification under clause (ii)(II) that cannot make the certification otherwise required by that clause may seek
a waiver of that clause if State or local procurement
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114 STAT. 2763A–342
PUBLIC LAW 106–554—APPENDIX D
rules or regulations or competitive bidding requirements prevent the making of the certification otherwise
required by that clause. The library shall notify the
Director of the Institute of Museum and Library Services of the applicability of that clause to the library.
Such notice shall certify that the library will comply
with the requirements in paragraph (1) before the start
of the third program year after the effective date of
this subsection for which the library is applying for
funds under this Act.
‘‘(5) NONCOMPLIANCE.—
‘‘(A) USE OF GENERAL EDUCATION PROVISIONS ACT REMEDIES.—Whenever the Director of the Institute of Museum
and Library Services has reason to believe that any recipient of funds this Act is failing to comply substantially
with the requirements of this subsection, the Director
may—
‘‘(i) withhold further payments to the recipient
under this Act,
‘‘(ii) issue a complaint to compel compliance of
the recipient through a cease and desist order, or
‘‘(iii) enter into a compliance agreement with a
recipient to bring it into compliance with such requirements.
‘‘(B) RECOVERY OF FUNDS PROHIBITED.—The actions
authorized by subparagraph (A) are the exclusive remedies
available with respect to the failure of a library to comply
substantially with a provision of this subsection, and the
Director shall not seek a recovery of funds from the recipient for such failure.
‘‘(C) RECOMMENCEMENT OF PAYMENTS.—Whenever the
Director determines (whether by certification or other
appropriate evidence) that a recipient of funds who is subject to the withholding of payments under subparagraph
(A)(i) has cured the failure providing the basis for the
withholding of payments, the Director shall cease the
withholding of payments to the recipient under that
subparagraph.
‘‘(6) SEPARABILITY.—If any provision of this subsection is
held invalid, the remainder of this subsection shall not be
affected thereby.
‘‘(7) DEFINITIONS.—In this section:
‘‘(A) CHILD PORNOGRAPHY.—The term ‘child pornography’ has the meaning given such term in section 2256
of title 18, United States Code.
‘‘(B) HARMFUL TO MINORS.—The term ‘harmful to
minors’ means any picture, image, graphic image file, or
other visual depiction that—
‘‘(i) taken as a whole and with respect to minors,
appeals to a prurient interest in nudity, sex, or excretion;
‘‘(ii) depicts, describes, or represents, in a patently
offensive way with respect to what is suitable for
minors, an actual or simulated sexual act or sexual
contact, actual or simulated normal or perverted sexual
acts, or a lewd exhibition of the genitals; and
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–343
‘‘(iii) taken as a whole, lacks serious literary, artistic, political, or scientific value as to minors.
‘‘(C) MINOR.—The term ‘minor’ means an individual
who has not attained the age of 17.
‘‘(D) OBSCENE.—The term ‘obscene’ has the meaning
given such term in section 1460 of title 18, United States
Code.
‘‘(E) SEXUAL ACT; SEXUAL CONTACT.—The terms ‘sexual
act’ and ‘sexual contact’ have the meanings given such
terms in section 2246 of title 18, United States Code.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall take effect 120 days after the date of the enactment of this
Act.
Subtitle B—Universal Service Discounts
SEC. 1721. REQUIREMENT FOR SCHOOLS AND LIBRARIES TO ENFORCE
INTERNET SAFETY POLICIES WITH TECHNOLOGY
PROTECTION MEASURES FOR COMPUTERS WITH INTERNET ACCESS AS CONDITION OF UNIVERSAL SERVICE DISCOUNTS.
(a) SCHOOLS.—Section 254(h) of the Communications Act of
1934 (47 U.S.C. 254(h)) is amended—
(1) by redesignating paragraph (5) as paragraph (7); and
(2) by inserting after paragraph (4) the following new paragraph (5):
‘‘(5) REQUIREMENTS FOR CERTAIN SCHOOLS WITH COMPUTERS
HAVING INTERNET ACCESS.—
‘‘(A) INTERNET SAFETY.—
‘‘(i) IN GENERAL.—Except as provided in clause
(ii), an elementary or secondary school having computers with Internet access may not receive services at
discount rates under paragraph (1)(B) unless the
school, school board, local educational agency, or other
authority with responsibility for administration of the
school—
‘‘(I) submits to the Commission the certifications described in subparagraphs (B) and (C);
‘‘(II) submits to the Commission a certification
that an Internet safety policy has been adopted
and implemented for the school under subsection
(l); and
‘‘(III) ensures the use of such computers in
accordance with the certifications.
‘‘(ii) APPLICABILITY.—The prohibition in clause (i)
shall not apply with respect to a school that receives
services at discount rates under paragraph (1)(B) only
for purposes other than the provision of Internet access,
Internet service, or internal connections.
‘‘(iii) PUBLIC NOTICE; HEARING.—An elementary or
secondary school described in clause (i), or the school
board, local educational agency, or other authority with
responsibility for administration of the school, shall
provide reasonable public notice and hold at least one
public hearing or meeting to address the proposed
Internet safety policy. In the case of an elementary
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114 STAT. 2763A–344
PUBLIC LAW 106–554—APPENDIX D
or secondary school other than an elementary or
secondary school as defined in section 14101 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 8801), the notice and hearing required by this
clause may be limited to those members of the public
with a relationship to the school.
‘‘(B) CERTIFICATION WITH RESPECT TO MINORS.—A certification under this subparagraph is a certification that
the school, school board, local educational agency, or other
authority with responsibility for administration of the
school—
‘‘(i) is enforcing a policy of Internet safety for
minors that includes monitoring the online activities
of minors and the operation of a technology protection
measure with respect to any of its computers with
Internet access that protects against access through
such computers to visual depictions that are—
‘‘(I) obscene;
‘‘(II) child pornography; or
‘‘(III) harmful to minors; and
‘‘(ii) is enforcing the operation of such technology
protection measure during any use of such computers
by minors.
‘‘(C) CERTIFICATION WITH RESPECT TO ADULTS.—A certification under this paragraph is a certification that the
school, school board, local educational agency, or other
authority with responsibility for administration of the
school—
‘‘(i) is enforcing a policy of Internet safety that
includes the operation of a technology protection measure with respect to any of its computers with Internet
access that protects against access through such
computers to visual depictions that are—
‘‘(I) obscene; or
‘‘(II) child pornography; and
‘‘(ii) is enforcing the operation of such technology
protection measure during any use of such computers.
‘‘(D) DISABLING DURING ADULT USE.—An administrator,
supervisor, or other person authorized by the certifying
authority under subparagraph (A)(i) may disable the technology protection measure concerned, during use by an
adult, to enable access for bona fide research or other
lawful purpose.
‘‘(E) TIMING OF IMPLEMENTATION.—
‘‘(i) IN GENERAL.—Subject to clause (ii) in the case
of any school covered by this paragraph as of the
effective date of this paragraph under section 1721(h)
of the Children’s Internet Protection Act, the certification under subparagraphs (B) and (C) shall be
made—
‘‘(I) with respect to the first program funding
year under this subsection following such effective
date, not later than 120 days after the beginning
of such program funding year; and
‘‘(II) with respect to any subsequent program
funding year, as part of the application process
for such program funding year.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–345
‘‘(ii) PROCESS.—
‘‘(I) SCHOOLS
WITH INTERNET SAFETY POLICY
AND
TECHNOLOGY
PROTECTION
MEASURES
IN
PLACE.—A school covered by clause (i) that has
in place an Internet safety policy and technology
protection measures meeting the requirements
necessary for certification under subparagraphs (B)
and (C) shall certify its compliance with subparagraphs (B) and (C) during each annual program
application cycle under this subsection, except that
with respect to the first program funding year
after the effective date of this paragraph under
section 1721(h) of the Children’s Internet Protection Act, the certifications shall be made not later
than 120 days after the beginning of such first
program funding year.
‘‘(II) SCHOOLS WITHOUT INTERNET SAFETY POLICY AND TECHNOLOGY PROTECTION MEASURES IN
PLACE.—A school covered by clause (i) that does
not have in place an Internet safety policy and
technology protection measures meeting the
requirements necessary for certification under subparagraphs (B) and (C)—
‘‘(aa) for the first program year after the
effective date of this subsection in which it
is applying for funds under this subsection,
shall certify that it is undertaking such
actions, including any necessary procurement
procedures, to put in place an Internet safety
policy and technology protection measures
meeting the requirements necessary for certification under subparagraphs (B) and (C); and
‘‘(bb) for the second program year after
the effective date of this subsection in which
it is applying for funds under this subsection,
shall certify that it is in compliance with subparagraphs (B) and (C).
Any school that is unable to certify compliance
with such requirements in such second program
year shall be ineligible for services at discount
rates or funding in lieu of services at such rates
under this subsection for such second year and
all subsequent program years under this subsection, until such time as such school comes into
compliance with this paragraph.
‘‘(III) WAIVERS.—Any school subject to subclause (II) that cannot come into compliance with
subparagraphs (B) and (C) in such second year
program may seek a waiver of subclause (II)(bb)
if State or local procurement rules or regulations
or competitive bidding requirements prevent the
making of the certification otherwise required by
such subclause. A school, school board, local educational agency, or other authority with responsibility for administration of the school shall notify
the Commission of the applicability of such subclause to the school. Such notice shall certify that
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114 STAT. 2763A–346
PUBLIC LAW 106–554—APPENDIX D
the school in question will be brought into compliance before the start of the third program year
after the effective date of this subsection in which
the school is applying for funds under this subsection.
‘‘(F) NONCOMPLIANCE.—
‘‘(i) FAILURE TO SUBMIT CERTIFICATION.—Any
school that knowingly fails to comply with the application guidelines regarding the annual submission of
certification required by this paragraph shall not be
eligible for services at discount rates or funding in
lieu of services at such rates under this subsection.
‘‘(ii) FAILURE TO COMPLY WITH CERTIFICATION.—
Any school that knowingly fails to ensure the use of
its computers in accordance with a certification under
subparagraphs (B) and (C) shall reimburse any funds
and discounts received under this subsection for the
period covered by such certification.
‘‘(iii) REMEDY OF NONCOMPLIANCE.—
‘‘(I) FAILURE TO SUBMIT.—A school that has
failed to submit a certification under clause (i)
may remedy the failure by submitting the certification to which the failure relates. Upon submittal
of such certification, the school shall be eligible
for services at discount rates under this subsection.
‘‘(II) FAILURE TO COMPLY.—A school that has
failed to comply with a certification as described
in clause (ii) may remedy the failure by ensuring
the use of its computers in accordance with such
certification. Upon submittal to the Commission
of a certification or other appropriate evidence of
such remedy, the school shall be eligible for services at discount rates under this subsection.’’.
(b) LIBRARIES.—Such section 254(h) is further amended by
inserting after paragraph (5), as amended by subsection (a) of
this section, the following new paragraph:
‘‘(6) REQUIREMENTS FOR CERTAIN LIBRARIES WITH COMPUTERS HAVING INTERNET ACCESS.—
‘‘(A) INTERNET SAFETY.—
‘‘(i) IN GENERAL.—Except as provided in clause
(ii), a library having one or more computers with Internet access may not receive services at discount rates
under paragraph (1)(B) unless the library—
‘‘(I) submits to the Commission the certifications described in subparagraphs (B) and (C);
and
‘‘(II) submits to the Commission a certification
that an Internet safety policy has been adopted
and implemented for the library under subsection
(l); and
‘‘(III) ensures the use of such computers in
accordance with the certifications.
‘‘(ii) APPLICABILITY.—The prohibition in clause (i)
shall not apply with respect to a library that receives
services at discount rates under paragraph (1)(B) only
for purposes other than the provision of Internet access,
Internet service, or internal connections.
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–347
‘‘(iii) PUBLIC NOTICE; HEARING.—A library
described in clause (i) shall provide reasonable public
notice and hold at least one public hearing or meeting
to address the proposed Internet safety policy.
‘‘(B) CERTIFICATION WITH RESPECT TO MINORS.—A certification under this subparagraph is a certification that
the library—
‘‘(i) is enforcing a policy of Internet safety that
includes the operation of a technology protection measure with respect to any of its computers with Internet
access that protects against access through such
computers to visual depictions that are—
‘‘(I) obscene;
‘‘(II) child pornography; or
‘‘(III) harmful to minors; and
‘‘(ii) is enforcing the operation of such technology
protection measure during any use of such computers
by minors.
‘‘(C) CERTIFICATION WITH RESPECT TO ADULTS.—A certification under this paragraph is a certification that the
library—
‘‘(i) is enforcing a policy of Internet safety that
includes the operation of a technology protection measure with respect to any of its computers with Internet
access that protects against access through such computers to visual depictions that are—
‘‘(I) obscene; or
‘‘(II) child pornography; and
‘‘(ii) is enforcing the operation of such technology
protection measure during any use of such computers.
‘‘(D) DISABLING DURING ADULT USE.—An administrator,
supervisor, or other person authorized by the certifying
authority under subparagraph (A)(i) may disable the technology protection measure concerned, during use by an
adult, to enable access for bona fide research or other
lawful purpose.
‘‘(E) TIMING OF IMPLEMENTATION.—
‘‘(i) IN GENERAL.—Subject to clause (ii) in the case
of any library covered by this paragraph as of the
effective date of this paragraph under section 1721(h)
of the Children’s Internet Protection Act, the certification under subparagraphs (B) and (C) shall be
made—
‘‘(I) with respect to the first program funding
year under this subsection following such effective
date, not later than 120 days after the beginning
of such program funding year; and
‘‘(II) with respect to any subsequent program
funding year, as part of the application process
for such program funding year.
‘‘(ii) PROCESS.—
‘‘(I) LIBRARIES WITH INTERNET SAFETY POLICY
AND
TECHNOLOGY
PROTECTION
MEASURES
PLACE.—A library covered by clause (i) that
IN
has
in place an Internet safety policy and technology
protection measures meeting the requirements
necessary for certification under subparagraphs (B)
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114 STAT. 2763A–348
PUBLIC LAW 106–554—APPENDIX D
and (C) shall certify its compliance with subparagraphs (B) and (C) during each annual program
application cycle under this subsection, except that
with respect to the first program funding year
after the effective date of this paragraph under
section 1721(h) of the Children’s Internet Protection Act, the certifications shall be made not later
than 120 days after the beginning of such first
program funding year.
‘‘(II) LIBRARIES WITHOUT INTERNET SAFETY
POLICY AND TECHNOLOGY PROTECTION MEASURES
IN PLACE.—A library covered by clause (i) that
does not have in place an Internet safety policy
and technology protection measures meeting the
requirements necessary for certification under subparagraphs (B) and (C)—
‘‘(aa) for the first program year after the
effective date of this subsection in which it
is applying for funds under this subsection,
shall certify that it is undertaking such
actions, including any necessary procurement
procedures, to put in place an Internet safety
policy and technology protection measures
meeting the requirements necessary for certification under subparagraphs (B) and (C); and
‘‘(bb) for the second program year after
the effective date of this subsection in which
it is applying for funds under this subsection,
shall certify that it is in compliance with subparagraphs (B) and (C).
Any library that is unable to certify compliance
with such requirements in such second program
year shall be ineligible for services at discount
rates or funding in lieu of services at such rates
under this subsection for such second year and
all subsequent program years under this subsection, until such time as such library comes into
compliance with this paragraph.
‘‘(III) WAIVERS.—Any library subject to subclause (II) that cannot come into compliance with
subparagraphs (B) and (C) in such second year
may seek a waiver of subclause (II)(bb) if State
or local procurement rules or regulations or
competitive bidding requirements prevent the
making of the certification otherwise required by
such subclause. A library, library board, or other
authority with responsibility for administration of
the library shall notify the Commission of the applicability of such subclause to the library. Such
notice shall certify that the library in question
will be brought into compliance before the start
of the third program year after the effective date
of this subsection in which the library is applying
for funds under this subsection.
‘‘(F) NONCOMPLIANCE.—
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–349
‘‘(i) FAILURE TO SUBMIT CERTIFICATION.—Any
library that knowingly fails to comply with the application guidelines regarding the annual submission of
certification required by this paragraph shall not be
eligible for services at discount rates or funding in
lieu of services at such rates under this subsection.
‘‘(ii) FAILURE TO COMPLY WITH CERTIFICATION.—
Any library that knowingly fails to ensure the use
of its computers in accordance with a certification
under subparagraphs (B) and (C) shall reimburse all
funds and discounts received under this subsection
for the period covered by such certification.
‘‘(iii) REMEDY OF NONCOMPLIANCE.—
‘‘(I) FAILURE TO SUBMIT.—A library that has
failed to submit a certification under clause (i)
may remedy the failure by submitting the certification to which the failure relates. Upon submittal
of such certification, the library shall be eligible
for services at discount rates under this subsection.
‘‘(II) FAILURE TO COMPLY.—A library that has
failed to comply with a certification as described
in clause (ii) may remedy the failure by ensuring
the use of its computers in accordance with such
certification. Upon submittal to the Commission
of a certification or other appropriate evidence of
such remedy, the library shall be eligible for services at discount rates under this subsection.’’.
(c) DEFINITIONS.—Paragraph (7) of such section, as redesignated
by subsection (a)(1) of this section, is amended by adding at the
end the following:
‘‘(D) MINOR.—The term ‘minor’ means any individual
who has not attained the age of 17 years.
‘‘(E) OBSCENE.—The term ‘obscene’ has the meaning
given such term in section 1460 of title 18, United States
Code.
‘‘(F) CHILD PORNOGRAPHY.—The term ‘child pornography’ has the meaning given such term in section 2256
of title 18, United States Code.
‘‘(G) HARMFUL TO MINORS.—The term ‘harmful to
minors’ means any picture, image, graphic image file, or
other visual depiction that—
‘‘(i) taken as a whole and with respect to minors,
appeals to a prurient interest in nudity, sex, or excretion;
‘‘(ii) depicts, describes, or represents, in a patently
offensive way with respect to what is suitable for
minors, an actual or simulated sexual act or sexual
contact, actual or simulated normal or perverted sexual
acts, or a lewd exhibition of the genitals; and
‘‘(iii) taken as a whole, lacks serious literary, artistic, political, or scientific value as to minors.
‘‘(H) SEXUAL ACT; SEXUAL CONTACT.—The terms ‘sexual
act’ and ‘sexual contact’ have the meanings given such
terms in section 2246 of title 18, United States Code.
‘‘(I) TECHNOLOGY PROTECTION MEASURE.—The term
‘technology protection measure’ means a specific technology
that blocks or filters Internet access to the material covered
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114 STAT. 2763A–350
PUBLIC LAW 106–554—APPENDIX D
by a certification under paragraph (5) or (6) to which such
certification relates.’’.
(d) CONFORMING AMENDMENT.—Paragraph (4) of such section
is amended by striking ‘‘paragraph (5)(A)’’ and inserting ‘‘paragraph
(7)(A)’’.
(e) SEPARABILITY.—If any provision of paragraph (5) or (6)
of section 254(h) of the Communications Act of 1934, as amended
by this section, or the application thereof to any person or circumstance is held invalid, the remainder of such paragraph and
the application of such paragraph to other persons or circumstances
shall not be affected thereby.
(f ) REGULATIONS.—
(1) REQUIREMENT.—The Federal Communications Commission shall prescribe regulations for purposes of administering
the provisions of paragraphs (5) and (6) of section 254(h) of
the Communications Act of 1934, as amended by this section.
(2) DEADLINE.—Notwithstanding any other provision of
law, the Commission shall prescribe regulations under paragraph (1) so as to ensure that such regulations take effect
120 days after the date of the enactment of this Act.
(g) AVAILABILITY OF CERTAIN FUNDS FOR ACQUISITION OF TECHNOLOGY PROTECTION MEASURES.—
(1) IN GENERAL.—Notwithstanding any other provision of
law, funds available under section 3134 or part A of title
VI of the Elementary and Secondary Education Act of 1965,
or under section 231 of the Library Services and Technology
Act, may be used for the purchase or acquisition of technology
protection measures that are necessary to meet the requirements of this title and the amendments made by this title.
No other sources of funds for the purchase or acquisition of
such measures are authorized by this title, or the amendments
made by this title.
(2) TECHNOLOGY PROTECTION MEASURE DEFINED.—In this
section, the term ‘‘technology protection measure’’ has the
meaning given that term in section 1703.
(h) EFFECTIVE DATE.—The amendments made by this section
shall take effect 120 days after the date of the enactment of this
Act.
Subtitle C—Neighborhood Children’s
Internet Protection
SEC. 1731. SHORT TITLE.
This subtitle may be cited as the ‘‘Neighborhood Children’s
Internet Protection Act’’.
SEC. 1732. INTERNET SAFETY POLICY REQUIRED.
Section 254 of the Communications Act of 1934 (47 U.S.C.
254) is amended by adding at the end the following:
‘‘(l) INTERNET SAFETY POLICY REQUIREMENT FOR SCHOOLS AND
LIBRARIES.—
‘‘(1) IN GENERAL.—In carrying out its responsibilities under
subsection (h), each school or library to which subsection (h)
applies shall—
‘‘(A) adopt and implement an Internet safety policy
that addresses—
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PUBLIC LAW 106–554—APPENDIX D
114 STAT. 2763A–351
‘‘(i) access by minors to inappropriate matter on
the Internet and World Wide Web;
‘‘(ii) the safety and security of minors when using
electronic mail, chat rooms, and other forms of direct
electronic communications;
‘‘(iii) unauthorized access, including so-called
‘hacking’, and other unlawful activities by minors
online;
‘‘(iv) unauthorized disclosure, use, and dissemination of personal identification information regarding
minors; and
‘‘(v) measures designed to restrict minors’ access
to materials harmful to minors; and
‘‘(B) provide reasonable public notice and hold at least
one public hearing or meeting to address the proposed
Internet safety policy.
‘‘(2) LOCAL DETERMINATION OF CONTENT.—A determination
regarding what matter is inappropriate for minors shall be
made by the school board, local educational agency, library,
or other authority responsible for making the determination.
No agency or instrumentality of the United States Government
may—
‘‘(A) establish criteria for making such determination;
‘‘(B) review the determination made by the certifying
school, school board, local educational agency, library, or
other authority; or
‘‘(C) consider the criteria employed by the certifying
school, school board, local educational agency, library, or
other authority in the administration of subsection
(h)(1)(B).
‘‘(3) AVAILABILITY FOR REVIEW.—Each Internet safety policy
adopted under this subsection shall be made available to the
Commission, upon request of the Commission, by the school,
school board, local educational agency, library, or other authority responsible for adopting such Internet safety policy for
purposes of the review of such Internet safety policy by the
Commission.
‘‘(4) EFFECTIVE DATE.—This subsection shall apply with
respect to schools and libraries on or after the date that is
120 days after the date of the enactment of the Children’s
Internet Protection Act.’’.
SEC. 1733. IMPLEMENTING REGULATIONS.
Not later than 120 days after the date of enactment of this
Act, the Federal Communications Commission shall prescribe regulations for purposes of section 254(l) of the Communications Act
of 1934, as added by section 1732 of this Act.
Subtitle D—Expedited Review
SEC. 1741. EXPEDITED REVIEW.
(a) THREE-JUDGE DISTRICT COURT HEARING.—Notwithstanding
any other provision of law, any civil action challenging the constitutionality, on its face, of this title or any amendment made by
this title, or any provision thereof, shall be heard by a district
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114 STAT. 2763A–352
PUBLIC LAW 106–554—APPENDIX D
court of three judges convened pursuant to the provisions of section
2284 of title 28, United States Code.
(b) APPELLATE REVIEW.—Notwithstanding any other provision
of law, an interlocutory or final judgment, decree, or order of the
court of three judges in an action under subsection (a) holding
this title or an amendment made by this title, or any provision
thereof, unconstitutional shall be reviewable as a matter of right
by direct appeal to the Supreme Court. Any such appeal shall
be filed not more than 20 days after entry of such judgment,
decree, or order.
This Act may be cited as the ‘‘Miscellaneous Appropriations
Act, 2001’’.
ENDNOTE: Appendixes D–1 and D–2 were added pursuant to the provisions of sections 125
and 127 of this Appendix (114 Stat. 2763A–229).
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PUBLIC LAW 106–554—APPENDIX D–1 114 STAT. 2763A–353
APPENDIX D–1—S. 2273
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Black Rock Desert-High Rock
Canyon Emigrant Trails National Conservation Area Act of 2000’’.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) The areas of northwestern Nevada known as the Black
Rock Desert and High Rock Canyon contain and surround
the last nationally significant, untouched segments of the historic California emigrant Trails, including wagon ruts, historic
inscriptions, and a wilderness landscape largely unchanged
since the days of the pioneers.
(2) The relative absence of development in the Black Rock
Desert and high Rock Canyon areas from emigrant times to
the present day offers a unique opportunity to capture the
terrain, sights, and conditions of the overland trails as they
were experienced by the emigrants and to make available to
both present and future generations of Americans the opportunity of experiencing emigrant conditions in an unaltered setting.
(3) The Black Rock Desert and High Rock Canyon areas
are unique segments of the Northern Great Basin and contain
broad representation of the Great Basin’s land forms and plant
and animal species, including golden eagles and other birds
of prey, sage grouse, mule deer, pronghorn antelope, bighorn
sheep, free roaming horses and burros, threatened fish and
sensitive plants.
(4) The Black Rock-High Rock region contains a number
of cultural and natural resources that have been declared
eligible for National Historic Landmark and Natural Landmark
status, including a portion of the 1843–44 John Charles Fremont exploration route, the site of the death of Peter Lassen,
early military facilities, and examples of early homesteading
and mining.
(5) The archeological, paleontological, and geographical
resources of the Black Rock-High Rock region include numerous
prehistoric and historic Native American sites, wooly mammoth
sites, some of the largest natural potholes of North America,
and a remnant dry Pleistocene lakebed (playa) where the curvature of the Earth may be observed.
(6) The two large wilderness mosaics that frame the conservation area offer exceptional opportunities for solitude and
serve to protect the integrity of the viewshed of the historic
emigrant trails.
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114 STAT. 2763A–354 PUBLIC LAW 106–554—APPENDIX D–1
(7) Public lands in the conservation area have been used
for domestic livestock grazing for over a century, with resultant
benefits to community stability and contributions to the local
and State economies. It has not been demonstrated that
continuation of this use would be incompatible with appropriate
protection and sound management of the resource values of
these lands; therefore, it is expected that such grazing will
continue in accordance with the management plan for the conservation area and other applicable laws and regulations.
(8) The Black Rock Desert playa is a unique natural
resource that serves as the primary destination for the majority
of visitors to the conservation area, including visitors associated
with large-scale permitted events. It is expected that such
permitted events will continue to be administered in accordance
with the management plan for the conservation area and other
applicable laws and regulations.
SEC. 3. DEFINITIONS.
As used in this Act:
(1) The term ‘‘Secretary’’ means the Secretary of the
Interior.
(2) The term ‘‘public lands’’ has the meaning stated in
section 103(e) of the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1702(e)).
(3) The term ‘‘conservation area’’ means the Black Rock
Desert-High Rock Canyon Emigrant Trails National Conservation Area established pursuant to section 4 of this Act.
SEC. 4. ESTABLISHMENT OF THE CONSERVATION AREA.
(a) ESTABLISHMENT AND PURPOSES.—In order to conserve, protect, and enhance for the benefit and enjoyment of present and
future generations the unique and nationally important historical,
cultural, paleontological, scenic, scientific, biological, educational,
wildlife, riparian, wilderness, endangered species, and recreational
values and resources associated with the Applegate-Lassen and
Nobles Trails corridors and surrounding areas, there is hereby
established the Black Rock Desert-High Rock Canyon Emigrant
Trails National Conservation Area in the State of Nevada.
(b) AREAS INCLUDED.—The conservation area shall consist of
approximately 797,100 acres of public lands as generally depicted
on the map entitled ‘‘Black Rock Desert Emigrant Trail National
Conservation Area’’ and dated July 19, 2000.
(c) MAPS AND LEGAL DESCRIPTION.—As soon as practicable after
the date of the enactment of this Act, the Secretary shall submit
to Congress a map and legal description of the conservation area.
The map and legal description shall have the same force and
effect as if included in this Act, except the Secretary may correct
clerical and typographical errors in such map and legal description.
Copies of the map and legal description shall be on file and available
for public inspection in the appropriate offices of the Bureau of
Land Management.
SEC. 5. MANAGEMENT.
(a) MANAGEMENT.—The Secretary, acting through the Bureau
of Land Management, shall manage the conservation area in a
manner that conserves, protects, and enhances its resources and
values, including those resources and values specified in subsection
4(a), in accordance with this Act, the Federal Land Policy and
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PUBLIC LAW 106–554—APPENDIX D–1 114 STAT. 2763A–355
Management Act of 1976 (43 U.S.C. 1701 et seq.), and other
applicable provisions of law.
(b) ACCESS.—
(1) IN GENERAL.—The Secretary shall maintain adequate
access for the reasonable use and enjoyment of the conservation
area.
(2) PRIVATE LAND.—The Secretary shall provide reasonable
access to privately owned land or interests in land within
the boundaries of the conservation area.
(3) EXISTING PUBLIC ROADS.—The Secretary is authorized
to maintain existing public access within the boundaries of
the conservation area in a manner consistent with the purposes
for which the conservation area was established.
(c) USES.—
(1) IN GENERAL.—The Secretary shall only allow such uses
of the conservation area as the Secretary finds will further
the purposes for which the conservation area is established.
(2) OFF-HIGHWAY VEHICLE USE.—Except where needed for
administrative purposes or to respond to an emergency, use
of motorized vehicles in the conservation area shall be permitted only on roads and trails and in other areas designated
for use of motorized vehicles as part of the management plan
prepared pursuant to subsection (e).
(3) PERMITTED EVENTS.—The Secretary may continue to
permit large-scale events in defined, low impact areas of the
Black Rock Desert playa in the conservation area in accordance
with the management plan prepared pursuant to subsection
(e).
(d) HUNTING, TRAPPING, AND FISHING.—Nothing in this Act
shall be deemed to diminish the jurisdiction of the State of Nevada
with respect to fish and wildlife management, including regulation
of hunting and fishing, on public lands within the conservation
area.
(e) MANAGEMENT PLAN.—Within three years following the date
of enactment of this Act, the Secretary shall develop a comprehensive resource management plan for the long-term protection and
management of the conservation area. The plan shall be developed
with full public participation and shall describe the appropriate
uses and management of the conservation area consistent with
the provisions of this Act. The plan may incorporate appropriate
decisions contained in any current management or activity plan
for the area and may use information developed in previous studies
of the lands within or adjacent to the conservation area.
(f) GRAZING.—Where the Secretary of the Interior currently
permits livestock grazing in the conservation area, such grazing
shall be allowed to continue subject to all applicable laws, regulations, and executive orders.
(g) VISITOR SERVICE FACILITIES.—The Secretary is authorized
to establish, in cooperation with other public or private entities
as the Secretary may deem appropriate, visitor service facilities
for the purpose of providing information about the historical, cultural, ecological, recreational, and other resources of the conservation area.
SEC. 6. WITHDRAWAL.
Subject to valid existing rights, all Federal lands within the
conservation area and all lands and interests therein which are
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114 STAT. 2763A–356 PUBLIC LAW 106–554—APPENDIX D–1
hereafter acquired by the United States are hereby withdrawn
from all forms of entry, appropriation, or disposal under the public
land laws, from location, entry, and patent under the mining laws,
from operation of the mineral leasing and geothermal leasing laws
and from the minerals materials laws and all amendments thereto.
SEC. 7. NO BUFFER ZONES.
The Congress does not intend for the establishment of the
conservation area to lead to the creation of protective perimeters
or buffer zones around the conservation area. The fact that there
may be activities or uses on lands outside the conservation area
that would not be permitted in the conservation area shall not
preclude such activities or uses on such lands up to the boundary
of the conservation area consistent with other applicable laws.
SEC. 8. WILDERNESS.
(a) DESIGNATION.—In furtherance of the purposes of the Wilderness Act of 1964 (16 U.S.C. 1131 et seq.), the following lands
in the State of Nevada are designated as wilderness, and, therefore,
as components of the National Wilderness Preservation System:
(1) Certain lands in the Black Rock Desert Wilderness
Study Area comprised of approximately 315,700 acres, as generally depicted on a map entitled ‘‘Black Rock Desert Wilderness—Proposed’’ and dated July 19, 2000, and which shall
be known as the Black Rock Desert Wilderness.
(2) Certain lands in the Pahute Peak Wilderness Study
Area comprised of approximately 57,400 acres, as generally
depicted on a map entitled ‘‘Pahute Peak Wilderness—Proposed’’ and dated July 19, 2000, and which shall be known
as the Pahute Peak Wilderness.
(3) Certain lands in the North Black Rock Range Wilderness Study Area comprised of approximately 30,800 acres, as
generally depicted on a map entitled ‘‘North Black Rock Range
Wilderness—Proposed’’ and dated July 19, 2000, and which
shall be known as the North Black Rock Range Wilderness.
(4) Certain lands in the East Fork High Rock Canyon
Wilderness Study Area comprised of approximately 52,800
acres, as generally depicted on a map entitled ‘‘East Fork
High Rock Canyon Wilderness—Proposed’’ and dated July 19,
2000, and which shall be known as the East Fork High Rock
Canyon Wilderness.
(5) Certain lands in the High Rock Lake Wilderness Study
Area comprised of approximately 59,300 acres, as generally
depicted on a map entitled ‘‘High Rock Lake Wilderness—
Proposed’’ and dated July 19, 2000, and which shall be known
as the High Rock Lake Wilderness.
(6) Certain lands in the Little High Rock Canyon Wilderness Study Area comprised of approximately 48,700 acres, as
generally depicted on a map entitled ‘‘Little High Rock Canyon
Wilderness—Proposed’’ and dated July 19, 2000, and which
shall be known as the Little High Rock Canyon Wilderness.
(7) Certain lands in the High Rock Canyon Wilderness
Study Area and Yellow Rock Canyon Wilderness Study Area
comprised of approximately 46,600 acres, as generally depicted
on a map entitled ‘‘High Rock Canyon Wilderness—Proposed’’
and dated July 19, 2000, and which shall be known as the
High Rock Canyon Wilderness.
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PUBLIC LAW 106–554—APPENDIX D–1 114 STAT. 2763A–357
(8) Certain lands in the Calico Mountains Wilderness Study
Area comprised of approximately 65,400 acres, as generally
depicted on a map entitled ‘‘Calico Mountains Wilderness—
Proposed’’ and dated July 19, 2000, and which shall be known
as the Calico Mountains Wilderness.
(9) Certain lands in the South Jackson Mountains Wilderness Study Area comprised of approximately 56,800 acres, as
generally depicted on a map entitled ‘‘South Jackson Mountains
Wilderness—Proposed’’ and dated July 19, 2000, and which
shall be known as the South Jackson Mountains Wilderness.
(10) Certain lands in the North Jackson Mountains Wilderness Study Area comprised of approximately 24,000 acres, as
generally depicted on a map entitled ‘‘North Jackson Mountains
Wilderness—Proposed’’ and dated July 19, 2000, and which
shall be known as the North Jackson Mountains Wilderness.
(b) ADMINISTRATION OF WILDERNESS AREAS.—Subject to valid
existing rights, each wilderness area designated by this Act shall
be administered by the Secretary in accordance with the provisions
of the Wilderness Act, except that any reference in such provisions
to the effective date of the Wilderness Act shall be deemed to
be a reference to the date of enactment of this Act and any reference
to the Secretary of Agriculture shall be deemed to be a reference
to the Secretary of the Interior.
(c) MAPS AND LEGAL DESCRIPTION.—As soon as practicable after
the date of the enactment of this Act, the Secretary shall submit
to Congress a map and legal description of the wilderness areas
designated under this Act. The map and legal description shall
have the same force and effect as if included in this Act, except
the Secretary may correct clerical and typographical errors in such
map and legal description. Copies of the map and legal description
shall be on file and available for public inspection in the appropriate
offices of the Bureau of Land Management.
(d) GRAZING.—Within the wilderness areas designated under
subsection (a), the grazing of livestock, where established prior
to the date of enactment of this Act, shall be permitted to continue
subject to such reasonable regulations, policies, and practices as
the Secretary deems necessary, as long as such regulations, policies,
and practices fully conform with and implement the intent of Congress regarding grazing in such areas as such intent is expressed
in the Wilderness Act and section 101(f) of Public Law 101–628.
SEC. 9. AUTHORIZATION OF APPROPRIATIONS.
There is hereby authorized to be appropriated such sums as
may be necessary to carry out the provisions of this Act.
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PUBLIC LAW 106–554—APPENDIX D–2 114 STAT. 2763A–359
APPENDIX D–2—S. 2885
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Jamestown 400th Commemoration Commission Act of 2000’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress finds that—
(1) the founding of the colony at Jamestown, Virginia in
1607, the first permanent English colony in the New World,
and the capital of Virginia for 92 years, has major significance
in the history of the United States;
(2) the settlement brought people from throughout the
Atlantic Basin together to form a multicultural society, including English, other Europeans, Native Americans, and Africans;
(3) the economic, political, religious, and social institutions
that developed during the first 9 decades of the existence of
Jamestown continue to have profound effects on the United
States, particularly in English common law and language, cross
cultural relationships, and economic structure and status;
(4) the National Park Service, the Association for the
Preservation of Virginia Antiquities, and the Jamestown-Yorktown Foundation of the Commonwealth of Virginia collectively
own and operate significant resources related to the early history of Jamestown; and
(5) in 1996—
(A) the Commonwealth of Virginia designated the
Jamestown-Yorktown Foundation as the State agency
responsible for planning and implementing the Commonwealth’s portion of the commemoration of the 400th
anniversary of the founding of the Jamestown settlement;
(B) the Foundation created the Celebration 2007 Steering Committee, known as the Jamestown 2007 Steering
Committee; and
(C) planning for the commemoration began.
(b) PURPOSE.—The purpose of this Act is to establish the Jamestown 400th Commemoration Commission to—
(1) ensure a suitable national observance of the Jamestown
2007 anniversary by complementing the programs and activities
of the Commonwealth of Virginia;
(2) cooperate with and assist the programs and activities
of the State in observance of the Jamestown 2007 anniversary;
(3) assist in ensuring that Jamestown 2007 observances
provide an excellent visitor experience and beneficial interaction
between visitors and the natural and cultural resources of
the Jamestown sites;
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114 STAT. 2763A–360 PUBLIC LAW 106–554—APPENDIX D–2
(4) assist in ensuring that the Jamestown 2007 observances
are inclusive and appropriately recognize the experiences of
all people present in 17th century Jamestown;
(5) provide assistance to the development of Jamestownrelated programs and activities;
(6) facilitate international involvement in the Jamestown
2007 observances;
(7) support and facilitate marketing efforts for a commemorative coin, stamp, and related activities for the Jamestown
2007 observances; and
(8) assist in the appropriate development of heritage tourism and economic benefits to the United States.
SEC. 3. DEFINITIONS.
In this Act:
(1) COMMEMORATION.—The term ‘‘commemoration’’ means
the commemoration of the 400th anniversary of the founding
of the Jamestown settlement.
(2) COMMISSION.—The term ‘‘Commission’’ means the
Jamestown 400th Commemoration Commission established by
section 4(a).
(3) GOVERNOR.—The term ‘‘Governor’’ means the Governor
of Virginia.
(4) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of the Interior.
(5) STATE.—The term ‘‘State’’ means the Commonwealth
of Virginia, including agencies and entities of the Commonwealth.
SEC. 4. JAMESTOWN 400TH COMMEMORATION COMMISSION.
(a) IN GENERAL.—There is established a commission to be
known as the ‘‘Jamestown 400th Commemoration Commission’’.
(b) MEMBERSHIP.—
(1) IN GENERAL.—The Commission shall be composed of
15 members, of whom—
(A) 4 members shall be appointed by the Secretary,
taking into consideration the recommendations of the
Chairperson of the Jamestown 2007 Steering Committee;
(B) 4 members shall be appointed by the Secretary,
taking into consideration the recommendations of the Governor;
(C) 2 members shall be employees of the National
Park Service, of which—
(i) 1 shall be the Director of the National Park
Service (or a designee); and
(ii) 1 shall be an employee of the National Park
Service having experience relevant to the commemoration, to be appointed by the Secretary; and
(D) 5 members shall be individuals that have an
interest in, support for, and expertise appropriate to, the
commemoration, to be appointed by the Secretary.
(2) TERM; VACANCIES.—
(A) TERM.—A member of the Commission shall be
appointed for the life of the Commission.
(B) VACANCIES.—
(i) IN GENERAL.—A vacancy on the Commission
shall be filled in the same manner in which the original
appointment was made.
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PUBLIC LAW 106–554—APPENDIX D–2 114 STAT. 2763A–361
(ii) PARTIAL TERM.—A member appointed to fill
a vacancy on the Commission shall serve for the
remainder of the term for which the predecessor of
the member was appointed.
(3) MEETINGS.—
(A) IN GENERAL.—The Commission shall meet—
(i) at least twice each year; or
(ii) at the call of the Chairperson or the majority
of the members of the Commission.
(B) INITIAL MEETING.—Not later than 30 days after
the date on which all members of the Commission have
been appointed, the Commission shall hold the initial meeting of the Commission.
(4) VOTING.—
(A) IN GENERAL.—The Commission shall act only on
an affirmative vote of a majority of the members of the
Commission.
(B) QUORUM.—A majority of the Commission shall constitute a quorum.
(5) CHAIRPERSON.—The Secretary shall appoint a Chairperson of the Commission, taking into consideration any recommendations of the Governor.
(c) DUTIES.—
(1) IN GENERAL.—The Commission shall—
(A) plan, develop, and execute programs and activities
appropriate to commemorate the 400th anniversary of the
founding of Jamestown;
(B) generally facilitate Jamestown-related activities
throughout the United States;
(C) encourage civic, patriotic, historical, educational,
religious, economic, and other organizations throughout the
United States to organize and participate in anniversary
activities to expand the understanding and appreciation
of the significance of the founding and early history of
Jamestown;
(D) coordinate and facilitate for the public scholarly
research on, publication about, and interpretation of,
Jamestown; and
(E) ensure that the 400th anniversary of Jamestown
provides a lasting legacy and long-term public benefit by
assisting in the development of appropriate programs and
facilities.
(2) PLANS; REPORTS.—
(A) STRATEGIC PLAN; ANNUAL PERFORMANCE PLANS.—
In accordance with the Government Performance and
Results Act of 1993 (Public Law 103–62; 107 Stat. 285),
the Commission shall prepare a strategic plan and annual
performance plans for the activities of the Commission
carried out under this Act.
(B) FINAL REPORT.—Not later than September 30, 2008,
the Commission shall complete a final report that
contains—
(i) a summary of the activities of the Commission;
(ii) a final accounting of funds received and
expended by the Commission; and
(iii) the findings and recommendations of the
Commission.
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114 STAT. 2763A–362 PUBLIC LAW 106–554—APPENDIX D–2
(d) POWERS OF THE COMMISSION.—The Commission may—
(1) accept donations and make dispersions of money, personal services, and real and personal property related to Jamestown and of the significance of Jamestown in the history of
the United States;
(2) appoint such advisory committees as the Commission
determines to be necessary to carry out this Act;
(3) authorize any member or employee of the Commission
to take any action that the Commission is authorized to take
by this Act;
(4) procure supplies, services, and property, and make or
enter into contracts, leases or other legal agreements, to carry
out this Act (except that any contracts, leases or other legal
agreements made or entered into by the Commission shall
not extend beyond the date of termination of the Commission);
(5) use the United States mails in the same manner and
under the same conditions as other Federal agencies;
(6) subject to approval by the Commission, make grants
in amounts not to exceed $10,000 to communities and nonprofit
organizations to develop programs to assist in the commemoration;
(7) make grants to research and scholarly organizations
to research, publish, or distribute information relating to the
early history of Jamestown; and
(8) provide technical assistance to States, localities, and
nonprofit organizations to further the commemoration.
(e) COMMISSION PERSONNEL MATTERS.—
(1) COMPENSATION OF MEMBERS OF THE COMMISSION.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), a member of the Commission shall serve without compensation.
(B) FEDERAL EMPLOYEES.—A member of the Commission who is an officer or employee of the Federal Government shall serve without compensation in addition to the
compensation received for the services of the member as
an officer or employee of the Federal Government.
(C) TRAVEL EXPENSES.—A member of the Commission
shall be allowed travel expenses, including per diem in
lieu of subsistence, at rates authorized for an employee
of an agency under subchapter I of chapter 57 of title
5, United States Code, while away from the home or regular
place of business of the member in the performance of
the duties of the Commission.
(2) STAFF.—
(A) IN GENERAL.—The Chairperson of the Commission
may, without regard to the civil service laws (including
regulations), appoint and terminate an executive director
and such other additional personnel as are necessary to
enable the Commission to perform the duties of the
Commission.
(B) CONFIRMATION OF EXECUTIVE DIRECTOR.—The
employment of an executive director shall be subject to
confirmation by the Commission.
(3) COMPENSATION.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), the Chairperson of the Commission may fix the compensation of the executive director and other personnel
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PUBLIC LAW 106–554—APPENDIX D–2 114 STAT. 2763A–363
without regard to the provisions of chapter 51 and subchapter III of chapter 53 of title 5, United States Code,
relating to classification of positions and General Schedule
pay rates.
(B) MAXIMUM RATE OF PAY.—The rate of pay for the
executive director and other personnel shall not exceed
the rate payable for level V of the Executive Schedule
under section 5316 of title 5, United States Code.
(4) DETAIL OF GOVERNMENT EMPLOYEES.—
(A) FEDERAL EMPLOYEES.—
(i) IN GENERAL.—On the request of the Commission, the head of any Federal agency may detail, on
a reimbursable or nonreimbursable basis, any of the
personnel of the agency to the Commission to assist
the Commission in carrying out the duties of the
Commission under this Act.
(ii) CIVIL SERVICE STATUS.—The detail of an
employee under clause (i) shall be without interruption
or loss of civil service status or privilege.
(B) STATE EMPLOYEES.—The Commission may—
(i) accept the services of personnel detailed from
States (including subdivisions of States); and
(ii) reimburse States for services of detailed personnel.
(5) VOLUNTEER AND UNCOMPENSATED SERVICES.—Notwithstanding section 1342 of title 31, United States Code, the
Commission may accept and use voluntary and uncompensated
services as the Commission determines necessary.
(6) SUPPORT SERVICES.—The Director of the National Park
Service shall provide to the Commission, on a reimbursable
basis, such administrative support services as the Commission
may request.
(f) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERVICES.—The Chairperson of the Commission may procure temporary
and intermittent services in accordance with section 3109(b) of
title 5, United States Code, at rates for individuals that do not
exceed the daily equivalent of the annual rate of basic pay prescribed for level V of the Executive Schedule under section 5316
of that title.
(g) FACA NONAPPLICABILITY.—Section 14(b) of the Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply to the
Commission.
(h) NO EFFECT ON AUTHORITY.—Nothing in this section supersedes the authority of the State, the National Park Service, or
the Association for the Preservation of Virginia Antiquities, concerning the commemoration.
(i) TERMINATION.—The Commission shall terminate on December 31, 2008.
SEC. 5. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are
necessary to carry out this Act.
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–365
APPENDIX E—H.R. 5660
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Commodity
Futures Modernization Act of 2000’’.
(b) TABLE OF CONTENTS.—The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
TITLE I—COMMODITY FUTURES MODERNIZATION
Sec. 101. Definitions.
Sec. 102. Agreements, contracts, and transactions in foreign currency, government
securities, and certain other commodities.
Sec. 103. Legal certainty for excluded derivative transactions.
Sec. 104. Excluded electronic trading facilities.
Sec. 105. Hybrid instruments; swap transactions.
Sec. 106. Transactions in exempt commodities.
Sec. 107. Application of commodity futures laws.
Sec. 108. Protection of the public interest.
Sec. 109. Prohibited transactions.
Sec. 110. Designation of boards of trade as contract markets.
Sec. 111. Derivatives transaction execution facilities.
Sec. 112. Derivatives clearing.
Sec. 113. Common provisions applicable to registered entities.
Sec. 114. Exempt boards of trade.
Sec. 115. Suspension or revocation of designation as contract market.
Sec. 116. Authorization of appropriations.
Sec. 117. Preemption.
Sec. 118. Predispute resolution agreements for institutional customers.
Sec. 119. Consideration of costs and benefits and antitrust laws.
Sec. 120. Contract enforcement between eligible counterparties.
Sec. 121. Special procedures to encourage and facilitate bona fide hedging by agricultural producers.
Sec. 122. Rule of construction.
Sec. 123. Technical and conforming amendments.
Sec. 124. Privacy.
Sec. 125. Report to Congress.
Sec. 126. International activities of the Commodity Futures Trading Commission.
TITLE II—COORDINATED REGULATION OF SECURITY FUTURES PRODUCTS
Subtitle A—Securities Law Amendments
Definitions under the Securities Exchange Act of 1934.
Regulatory relief for markets trading security futures products.
Regulatory relief for intermediaries trading security futures products.
Special provisions for interagency cooperation.
Maintenance of market integrity for security futures products.
Special provisions for the trading of security futures products.
Clearance and settlement.
Amendments relating to registration and disclosure issues under the Securities Act of 1933 and the Securities Exchange Act of 1934.
Sec. 209. Amendments to the Investment Company Act of 1940 and the Investment
Advisers Act of 1940.
Sec. 210. Preemption of State laws.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
201.
202.
203.
204.
205.
206.
207.
208.
Subtitle B—Amendments to the Commodity Exchange Act
Sec. 251. Jurisdiction of Securities and Exchange Commission; other provisions.
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114 STAT. 2763A–366
PUBLIC LAW 106–554—APPENDIX E
Sec. 252. Application of the Commodity Exchange Act to national securities exchanges and national securities associations that trade security futures.
Sec. 253. Notification of investigations and enforcement actions.
Sec.
Sec.
Sec.
Sec.
301.
302.
303.
304.
TITLE III—LEGAL CERTAINTY FOR SWAP AGREEMENTS
Swap agreement.
Amendments to the Securities Act of 1933.
Amendments to the Securities Exchange Act of 1934.
Savings provision.
TITLE IV—REGULATORY RESPONSIBILITY FOR BANK PRODUCTS
Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Exclusion of identified banking products commonly offered on or before
December 5, 2000.
Sec. 404. Exclusion of certain identified banking products offered by banks after
December 5, 2000.
Sec. 405. Exclusion of certain other identified banking products.
Sec. 406. Administration of the predominance test.
Sec. 407. Exclusion of covered swap agreements.
Sec. 408. Contract enforcement.
SEC. 2. PURPOSES.
The purposes of this Act are—
(1) to reauthorize the appropriation for the Commodity
Futures Trading Commission;
(2) to streamline and eliminate unnecessary regulation for
the commodity futures exchanges and other entities regulated
under the Commodity Exchange Act;
(3) to transform the role of the Commodity Futures Trading
Commission to oversight of the futures markets;
(4) to provide a statutory and regulatory framework for
allowing the trading of futures on securities;
(5) to clarify the jurisdiction of the Commodity Futures
Trading Commission over certain retail foreign exchange transactions and bucket shops that may not be otherwise regulated;
(6) to promote innovation for futures and derivatives and
to reduce systemic risk by enhancing legal certainty in the
markets for certain futures and derivatives transactions;
(7) to reduce systemic risk and provide greater stability
to markets during times of market disorder by allowing the
clearing of transactions in over-the-counter derivatives through
appropriately regulated clearing organizations; and
(8) to enhance the competitive position of United States
financial institutions and financial markets.
TITLE I—COMMODITY FUTURES
MODERNIZATION
SEC. 101. DEFINITIONS.
Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is
amended—
(1) by redesignating paragraphs (1) through (7), (8) through
(12), (13) through (15), and (16) as paragraphs (2) through
(8), (16) through (20), (22) through (24), and (28), respectively;
(2) by inserting before paragraph (2) (as redesignated by
paragraph (1)) the following:
‘‘(1) ALTERNATIVE TRADING SYSTEM.—The term ‘alternative
trading system’ means an organization, association, or group
of persons that—
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–367
‘‘(A) is registered as a broker or dealer pursuant to
section 15(b) of the Securities Exchange Act of 1934 (except
paragraph (11) thereof );
‘‘(B) performs the functions commonly performed by
an exchange (as defined in section 3(a)(1) of the Securities
Exchange Act of 1934);
‘‘(C) does not—
‘‘(i) set rules governing the conduct of subscribers
other than the conduct of such subscribers’ trading
on the alternative trading system; or
‘‘(ii) discipline subscribers other than by exclusion
from trading; and
‘‘(D) is exempt from the definition of the term
‘exchange’ under such section 3(a)(1) by rule or regulation
of the Securities and Exchange Commission on terms that
require compliance with regulations of its trading functions.’’;
(3) by striking paragraph (2) (as redesignated by paragraph
(1)) and inserting the following:
‘‘(2) BOARD OF TRADE.—The term ‘board of trade’ means
any organized exchange or other trading facility.’’;
(4) by inserting after paragraph (8) (as redesignated by
paragraph (1)) the following:
‘‘(9) DERIVATIVES CLEARING ORGANIZATION.—
‘‘(A) IN GENERAL.—The term ‘derivatives clearing
organization’ means a clearinghouse, clearing association,
clearing corporation, or similar entity, facility, system, or
organization that, with respect to an agreement, contract,
or transaction—
‘‘(i) enables each party to the agreement, contract,
or transaction to substitute, through novation or otherwise, the credit of the derivatives clearing organization
for the credit of the parties;
‘‘(ii) arranges or provides, on a multilateral basis,
for the settlement or netting of obligations resulting
from such agreements, contracts, or transactions
executed by participants in the derivatives clearing
organization; or
‘‘(iii) otherwise provides clearing services or
arrangements that mutualize or transfer among
participants in the derivatives clearing organization
the credit risk arising from such agreements, contracts,
or transactions executed by the participants.
‘‘(B) EXCLUSIONS.—The term ‘derivatives clearing
organization’ does not include an entity, facility, system,
or organization solely because it arranges or provides for—
‘‘(i) settlement, netting, or novation of obligations
resulting from agreements, contracts, or transactions,
on a bilateral basis and without a central counterparty;
‘‘(ii) settlement or netting of cash payments
through an interbank payment system; or
‘‘(iii) settlement, netting, or novation of obligations
resulting from a sale of a commodity in a transaction
in the spot market for the commodity.
‘‘(10) ELECTRONIC TRADING FACILITY.—The term ‘electronic
trading facility’ means a trading facility that—
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114 STAT. 2763A–368
PUBLIC LAW 106–554—APPENDIX E
‘‘(A) operates by means of an electronic or telecommunications network; and
‘‘(B) maintains an automated audit trail of bids, offers,
and the matching of orders or the execution of transactions
on the facility.
‘‘(11) ELIGIBLE COMMERCIAL ENTITY.—The term ‘eligible
commercial entity’ means, with respect to an agreement, contract or transaction in a commodity—
‘‘(A) an eligible contract participant described in clause
(i), (ii), (v), (vii), (viii), or (ix) of paragraph (12)(A) that,
in connection with its business—
‘‘(i) has a demonstrable ability, directly or through
separate contractual arrangements, to make or take
delivery of the underlying commodity;
‘‘(ii) incurs risks, in addition to price risk, related
to the commodity; or
‘‘(iii) is a dealer that regularly provides risk
management or hedging services to, or engages in market-making activities with, the foregoing entities
involving transactions to purchase or sell the commodity or derivative agreements, contracts, or transactions
in the commodity;
‘‘(B) an eligible contract participant, other than a natural person or an instrumentality, department, or agency
of a State or local governmental entity, that—
‘‘(i) regularly enters into transactions to purchase
or sell the commodity or derivative agreements, contracts, or transactions in the commodity; and
‘‘(ii) either—
‘‘(I) in the case of a collective investment
vehicle whose participants include persons other
than—
‘‘(aa) qualified eligible persons, as defined
in Commission rule 4.7(a) (17 CFR 4.7(a));
‘‘(bb) accredited investors, as defined in
Regulation D of the Securities and Exchange
Commission under the Securities Act of 1933
(17 CFR 230.501(a)), with total assets of
$2,000,000; or
‘‘(cc) qualified purchasers, as defined in
section 2(a)(51)(A) of the Investment Company
Act of 1940;
in each case as in effect on the date of the enactment of the Commodity Futures Modernization Act
of 2000, has, or is one of a group of vehicles under
common control or management having in the
aggregate, $1,000,000,000 in total assets; or
‘‘(II) in the case of other persons, has, or is
one of a group of persons under common control
or management having in the aggregate,
$100,000,000 in total assets; or
‘‘(C) such other persons as the Commission shall determine appropriate and shall designate by rule, regulation,
or order.
‘‘(12) ELIGIBLE CONTRACT PARTICIPANT.—The term ‘eligible
contract participant’ means—
‘‘(A) acting for its own account—
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–369
‘‘(i) a financial institution;
‘‘(ii) an insurance company that is regulated by
a State, or that is regulated by a foreign government
and is subject to comparable regulation as determined
by the Commission, including a regulated subsidiary
or affiliate of such an insurance company;
‘‘(iii) an investment company subject to regulation
under the Investment Company Act of 1940 (15 U.S.C.
80a–1 et seq.) or a foreign person performing a similar
role or function subject as such to foreign regulation
(regardless of whether each investor in the investment
company or the foreign person is itself an eligible contract participant);
‘‘(iv) a commodity pool that—
‘‘(I) has total assets exceeding $5,000,000; and
‘‘(II) is formed and operated by a person subject to regulation under this Act or a foreign person
performing a similar role or function subject as
such to foreign regulation (regardless of whether
each investor in the commodity pool or the foreign
person is itself an eligible contract participant);
‘‘(v) a corporation, partnership, proprietorship,
organization, trust, or other entity—
‘‘(I) that has total assets exceeding
$10,000,000;
‘‘(II) the obligations of which under an agreement, contract, or transaction are guaranteed or
otherwise supported by a letter of credit or
keepwell, support, or other agreement by an entity
described in subclause (I), in clause (i), (ii), (iii),
(iv), or (vii), or in subparagraph (C); or
‘‘(III) that—
‘‘(aa) has a net worth exceeding
$1,000,000; and
‘‘(bb) enters into an agreement, contract,
or transaction in connection with the conduct
of the entity’s business or to manage the risk
associated with an asset or liability owned
or incurred or reasonably likely to be owned
or incurred by the entity in the conduct of
the entity’s business;
‘‘(vi) an employee benefit plan subject to the
Employee Retirement Income Security Act of 1974 (29
U.S.C. 1001 et seq.), a governmental employee benefit
plan, or a foreign person performing a similar role
or function subject as such to foreign regulation—
‘‘(I) that has total assets exceeding $5,000,000;
or
‘‘(II) the investment decisions of which are
made by—
‘‘(aa) an investment adviser or commodity
trading advisor subject to regulation under the
Investment Advisers Act of 1940 (15 U.S.C.
80b–1 et seq.) or this Act;
‘‘(bb) a foreign person performing a similar
role or function subject as such to foreign regulation;
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114 STAT. 2763A–370
PUBLIC LAW 106–554—APPENDIX E
‘‘(cc) a financial institution; or
‘‘(dd) an insurance company described in
clause (ii), or a regulated subsidiary or affiliate
of such an insurance company;
‘‘(vii)(I) a governmental entity (including the
United States, a State, or a foreign government) or
political subdivision of a governmental entity;
‘‘(II) a multinational or supranational government
entity; or
‘‘(III) an instrumentality, agency, or department
of an entity described in subclause (I) or (II);
except that such term does not include an entity,
instrumentality, agency, or department referred to in
subclause (I) or (III) of this clause unless (aa) the
entity, instrumentality, agency, or department is a person described in clause (i), (ii), or (iii) of section
1a(11)(A); (bb) the entity, instrumentality, agency, or
department owns and invests on a discretionary basis
$25,000,000 or more in investments; or (cc) the agreement, contract, or transaction is offered by, and entered
into with, an entity that is listed in any of subclauses
(I) through (VI) of section 2(c)(2)(B)(ii);
‘‘(viii)(I) a broker or dealer subject to regulation
under the Securities Exchange Act of 1934 (15 U.S.C.
78a et seq.) or a foreign person performing a similar
role or function subject as such to foreign regulation,
except that, if the broker or dealer or foreign person
is a natural person or proprietorship, the broker or
dealer or foreign person shall not be considered to
be an eligible contract participant unless the broker
or dealer or foreign person also meets the requirements
of clause (v) or (xi);
‘‘(II) an associated person of a registered broker
or dealer concerning the financial or securities activities of which the registered person makes and keeps
records under section 15C(b) or 17(h) of the Securities
Exchange Act of 1934 (15 U.S.C. 78o–5(b), 78q(h));
‘‘(III) an investment bank holding company (as
defined in section 17(i) of the Securities Exchange Act
of 1934 (15 U.S.C. 78q(i));
‘‘(ix) a futures commission merchant subject to
regulation under this Act or a foreign person performing a similar role or function subject as such to foreign
regulation, except that, if the futures commission merchant or foreign person is a natural person or
proprietorship, the futures commission merchant or
foreign person shall not be considered to be an eligible
contract participant unless the futures commission
merchant or foreign person also meets the requirements of clause (v) or (xi);
‘‘(x) a floor broker or floor trader subject to regulation under this Act in connection with any transaction
that takes place on or through the facilities of a registered entity or an exempt board of trade, or any
affiliate thereof, on which such person regularly trades;
or
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–371
‘‘(xi) an individual who has total assets in an
amount in excess of—
‘‘(I) $10,000,000; or
‘‘(II) $5,000,000 and who enters into the agreement, contract, or transaction in order to manage
the risk associated with an asset owned or liability
incurred, or reasonably likely to be owned or
incurred, by the individual;
‘‘(B)(i) a person described in clause (i), (ii), (iv), (v),
(viii), (ix), or (x) of subparagraph (A) or in subparagraph
(C), acting as broker or performing an equivalent agency
function on behalf of another person described in subparagraph (A) or (C); or
‘‘(ii) an investment adviser subject to regulation under
the Investment Advisers Act of 1940, a commodity trading
advisor subject to regulation under this Act, a foreign person performing a similar role or function subject as such
to foreign regulation, or a person described in clause (i),
(ii), (iv), (v), (viii), (ix), or (x) of subparagraph (A) or in
subparagraph (C), in any such case acting as investment
manager or fiduciary (but excluding a person acting as
broker or performing an equivalent agency function) for
another person described in subparagraph (A) or (C) and
who is authorized by such person to commit such person
to the transaction; or
‘‘(C) any other person that the Commission determines
to be eligible in light of the financial or other qualifications
of the person.
‘‘(13) EXCLUDED COMMODITY.—The term ‘excluded commodity’ means—
‘‘(i) an interest rate, exchange rate, currency, security, security index, credit risk or measure, debt or
equity instrument, index or measure of inflation, or
other macroeconomic index or measure;
‘‘(ii) any other rate, differential, index, or measure
of economic or commercial risk, return, or value that
is—
‘‘(I) not based in substantial part on the value
of a narrow group of commodities not described
in clause (i); or
‘‘(II) based solely on one or more commodities
that have no cash market;
‘‘(iii) any economic or commercial index based on
prices, rates, values, or levels that are not within the
control of any party to the relevant contract, agreement, or transaction; or
‘‘(iv) an occurrence, extent of an occurrence, or
contingency (other than a change in the price, rate,
value, or level of a commodity not described in clause
(i)) that is—
‘‘(I) beyond the control of the parties to the
relevant contract, agreement, or transaction; and
‘‘(II) associated with a financial, commercial,
or economic consequence.
‘‘(14) EXEMPT COMMODITY.—The term ‘exempt commodity’
means a commodity that is not an excluded commodity or
an agricultural commodity.
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114 STAT. 2763A–372
PUBLIC LAW 106–554—APPENDIX E
‘‘(15) FINANCIAL INSTITUTION.—The term ‘financial institution’ means—
‘‘(A) a corporation operating under the fifth undesignated paragraph of section 25 of the Federal Reserve Act
(12 U.S.C. 603), commonly known as ‘an agreement corporation’;
‘‘(B) a corporation organized under section 25A of the
Federal Reserve Act (12 U.S.C. 611 et seq.), commonly
known as an ‘Edge Act corporation’;
‘‘(C) an institution that is regulated by the Farm Credit
Administration;
‘‘(D) a Federal credit union or State credit union (as
defined in section 101 of the Federal Credit Union Act
(12 U.S.C. 1752));
‘‘(E) a depository institution (as defined in section 3
of the Federal Deposit Insurance Act (12 U.S.C. 1813));
‘‘(F) a foreign bank or a branch or agency of a foreign
bank (each as defined in section 1(b) of the International
Banking Act of 1978 (12 U.S.C. 3101(b)));
‘‘(G) any financial holding company (as defined in section 2 of the Bank Holding Company Act of 1956);
‘‘(H) a trust company; or
‘‘(I) a similarly regulated subsidiary or affiliate of an
entity described in any of subparagraphs (A) through (H).’’;
(5) by inserting after paragraph (20) (as redesignated by
paragraph (1)) the following:
‘‘(21) HYBRID INSTRUMENT.—The term ‘hybrid instrument’
means a security having one or more payments indexed to
the value, level, or rate of, or providing for the delivery of,
one or more commodities.’’;
(6) by striking paragraph (24) (as redesignated by paragraph (1)) and inserting the following:
‘‘(24) MEMBER OF A CONTRACT MARKET; MEMBER OF A
DERIVATIVES TRANSACTION EXECUTION FACILITY.—The term
‘member’ means, with respect to a contract market or derivatives transaction execution facility, an individual, association,
partnership, corporation, or trust—
‘‘(A) owning or holding membership in, or admitted
to membership representation on, the contract market or
derivatives transaction execution facility; or
‘‘(B) having trading privileges on the contract market
or derivatives transaction execution facility.
‘‘(25) NARROW-BASED SECURITY INDEX.—
‘‘(A) The term ‘narrow-based security index’ means an
index—
‘‘(i) that has 9 or fewer component securities;
‘‘(ii) in which a component security comprises more
than 30 percent of the index’s weighting;
‘‘(iii) in which the five highest weighted component
securities in the aggregate comprise more than 60 percent of the index’s weighting; or
‘‘(iv) in which the lowest weighted component securities comprising, in the aggregate, 25 percent of the
index’s weighting have an aggregate dollar value of
average daily trading volume of less than $50,000,000
(or in the case of an index with 15 or more component
securities, $30,000,000), except that if there are two
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–373
or more securities with equal weighting that could
be included in the calculation of the lowest weighted
component securities comprising, in the aggregate, 25
percent of the index’s weighting, such securities shall
be ranked from lowest to highest dollar value of average daily trading volume and shall be included in
the calculation based on their ranking starting with
the lowest ranked security.
‘‘(B) Notwithstanding subparagraph (A), an index is
not a narrow-based security index if—
‘‘(i)(I) it has at least 9 component securities;
‘‘(II) no component security comprises more than
30 percent of the index’s weighting; and
‘‘(III) each component security is—
‘‘(aa) registered pursuant to section 12 of the
Securities Exchange Act of 1934;
‘‘(bb) one of 750 securities with the largest
market capitalization; and
‘‘(cc) one of 675 securities with the largest
dollar value of average daily trading volume;
‘‘(ii) a board of trade was designated as a contract
market by the Commodity Futures Trading Commission with respect to a contract of sale for future delivery on the index, before the date of the enactment
of the Commodity Futures Modernization Act of 2000;
‘‘(iii)(I) a contract of sale for future delivery on
the index traded on a designated contract market or
registered derivatives transaction execution facility for
at least 30 days as a contract of sale for future delivery
on an index that was not a narrow-based security
index; and
‘‘(II) it has been a narrow-based security index
for no more than 45 business days over 3 consecutive
calendar months;
‘‘(iv) a contract of sale for future delivery on the
index is traded on or subject to the rules of a foreign
board of trade and meets such requirements as are
jointly established by rule or regulation by the Commission and the Securities and Exchange Commission;
‘‘(v) no more than 18 months have passed since
the date of the enactment of the Commodity Futures
Modernization Act of 2000 and—
‘‘(I) it is traded on or subject to the rules
of a foreign board of trade;
‘‘(II) the offer and sale in the United States
of a contract of sale for future delivery on the
index was authorized before the date of the enactment of the Commodity Futures Modernization Act
of 2000; and
‘‘(III) the conditions of such authorization continue to be met; or
‘‘(vi) a contract of sale for future delivery on the
index is traded on or subject to the rules of a board
of trade and meets such requirements as are jointly
established by rule, regulation, or order by the
Commission and the Securities and Exchange Commission.
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114 STAT. 2763A–374
PUBLIC LAW 106–554—APPENDIX E
‘‘(C) Within 1 year after the date of the enactment
of the Commodity Futures Modernization Act of 2000, the
Commission and the Securities and Exchange Commission
jointly shall adopt rules or regulations that set forth the
requirements under subparagraph (B)(iv).
‘‘(D) An index that is a narrow-based security index
solely because it was a narrow-based security index for
more than 45 business days over 3 consecutive calendar
months pursuant to clause (iii) of subparagraph (B) shall
not be a narrow-based security index for the 3 following
calendar months.
‘‘(E) For purposes of subparagraphs (A) and (B)—
‘‘(i) the dollar value of average daily trading volume and the market capitalization shall be calculated
as of the preceding 6 full calendar months; and
‘‘(ii) the Commission and the Securities and
Exchange Commission shall, by rule or regulation,
jointly specify the method to be used to determine
market capitalization and dollar value of average daily
trading volume.
‘‘(26) OPTION.—The term ‘option’ means an agreement, contract, or transaction that is of the character of, or is commonly
known to the trade as, an ‘option’, ‘privilege’, ‘indemnity’, ‘bid’,
‘offer’, ‘put’, ‘call’, ‘advance guaranty’, or ‘decline guaranty’.
‘‘(27) ORGANIZED EXCHANGE.—The term ‘organized
exchange’ means a trading facility that—
‘‘(A) permits trading—
‘‘(i) by or on behalf of a person that is not an
eligible contract participant; or
‘‘(ii) by persons other than on a principal-to-principal basis; or
‘‘(B) has adopted (directly or through another nongovernmental entity) rules that—
‘‘(i) govern the conduct of participants, other than
rules that govern the submission of orders or execution
of transactions on the trading facility; and
‘‘(ii) include disciplinary sanctions other than the
exclusion of participants from trading.’’; and
(7) by adding at the end the following:
‘‘(29) REGISTERED ENTITY.—The term ‘registered entity’
means—
‘‘(A) a board of trade designated as a contract market
under section 5;
‘‘(B) a derivatives transaction execution facility registered under section 5a;
‘‘(C) a derivatives clearing organization registered
under section 5b; and
‘‘(D) a board of trade designated as a contract market
under section 5f.
‘‘(30) SECURITY.—The term ‘security’ means a security as
defined in section 2(a)(1) of the Securities Act of 1933 (15
U.S.C. 77b(a)(1)) or section 3(a)(10) of the Securities Exchange
Act of 1934 (15 U.S.C. 78c(a)(10)).
‘‘(31) SECURITY FUTURE.—The term ‘security future’ means
a contract of sale for future delivery of a single security or
of a narrow-based security index, including any interest therein
or based on the value thereof, except an exempted security
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–375
under section 3(a)(12) of the Securities Exchange Act of 1934
as in effect on the date of the enactment of the Futures Trading
Act of 1982 (other than any municipal security as defined
in section 3(a)(29) of the Securities Exchange Act of 1934 as
in effect on the date of the enactment of the Futures Trading
Act of 1982). The term ‘security future’ does not include any
agreement, contract, or transaction excluded from this Act
under section 2(c), 2(d), 2(f ), or 2(g) of this Act (as in effect
on the date of the enactment of the Commodity Futures Modernization Act of 2000) or title IV of the Commodity Futures
Modernization Act of 2000.
‘‘(32) SECURITY FUTURES PRODUCT.—The term ‘security
futures product’ means a security future or any put, call, straddle, option, or privilege on any security future.
‘‘(33) TRADING FACILITY.—
‘‘(A) IN GENERAL.—The term ‘trading facility’ means
a person or group of persons that constitutes, maintains,
or provides a physical or electronic facility or system in
which multiple participants have the ability to execute
or trade agreements, contracts, or transactions by accepting
bids and offers made by other participants that are open
to multiple participants in the facility or system.
‘‘(B) EXCLUSIONS.—The term ‘trading facility’ does not
include—
‘‘(i) a person or group of persons solely because
the person or group of persons constitutes, maintains,
or provides an electronic facility or system that enables
participants to negotiate the terms of and enter into
bilateral transactions as a result of communications
exchanged by the parties and not from interaction
of multiple bids and multiple offers within a predetermined, nondiscretionary automated trade matching
and execution algorithm;
‘‘(ii) a government securities dealer or government
securities broker, to the extent that the dealer or
broker executes or trades agreements, contracts, or
transactions in government securities, or assists persons in communicating about, negotiating, entering
into, executing, or trading an agreement, contract, or
transaction in government securities (as the terms
‘government securities dealer’, ‘government securities
broker’, and ‘government securities’ are defined in section 3(a) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a))); or
‘‘(iii) facilities on which bids and offers, and acceptances of bids and offers effected on the facility, are
not binding.
Any person, group of persons, dealer, broker, or facility
described in clause (i) or (ii) is excluded from the meaning
of the term ‘trading facility’ for the purposes of this Act
without any prior specific approval, certification, or other
action by the Commission.
‘‘(C) SPECIAL RULE.—A person or group of persons that
would not otherwise constitute a trading facility shall not
be considered to be a trading facility solely as a result
of the submission to a derivatives clearing organization
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114 STAT. 2763A–376
PUBLIC LAW 106–554—APPENDIX E
of transactions executed on or through the person or group
of persons.’’.
SEC. 102. AGREEMENTS, CONTRACTS, AND TRANSACTIONS IN FOREIGN
CURRENCY, GOVERNMENT SECURITIES, AND CERTAIN
OTHER COMMODITIES.
Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a,
3, 4, 4a) is amended by adding at the end the following:
‘‘(c) AGREEMENTS, CONTRACTS, AND TRANSACTIONS IN FOREIGN
CURRENCY, GOVERNMENT SECURITIES, AND CERTAIN OTHER
COMMODITIES.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
nothing in this Act (other than section 5a (to the extent provided
in section 5a(g)), 5b, 5d, or 12(e)(2)(B)) governs or applies
to an agreement, contract, or transaction in—
‘‘(A) foreign currency;
‘‘(B) government securities;
‘‘(C) security warrants;
‘‘(D) security rights;
‘‘(E) resales of installment loan contracts;
‘‘(F) repurchase transactions in an excluded commodity;
or
‘‘(G) mortgages or mortgage purchase commitments.
‘‘(2) COMMISSION JURISDICTION.—
‘‘(A) AGREEMENTS, CONTRACTS, AND TRANSACTIONS
TRADED ON AN ORGANIZED EXCHANGE.—This Act applies
to, and the Commission shall have jurisdiction over, an
agreement, contract, or transaction described in paragraph
(1) that is—
‘‘(i) a contract of sale of a commodity for future
delivery (or an option on such a contract), or an option
on a commodity (other than foreign currency or a security or a group or index of securities), that is executed
or traded on an organized exchange; or
‘‘(ii) an option on foreign currency executed or
traded on an organized exchange that is not a national
securities exchange registered pursuant to section 6(a)
of the Securities Exchange Act of 1934.
‘‘(B) AGREEMENTS, CONTRACTS, AND TRANSACTIONS IN
RETAIL FOREIGN CURRENCY.—This Act applies to, and the
Commission shall have jurisdiction over, an agreement,
contract, or transaction in foreign currency that—
‘‘(i) is a contract of sale of a commodity for future
delivery (or an option on such a contract) or an option
(other than an option executed or traded on a national
securities exchange registered pursuant to section 6(a)
of the Securities Exchange Act of 1934); and
‘‘(ii) is offered to, or entered into with, a person
that is not an eligible contract participant, unless the
counterparty, or the person offering to be the
counterparty, of the person is—
‘‘(I) a financial institution;
‘‘(II) a broker or dealer registered under section 15(b) or 15C of the Securities Exchange Act
of 1934 (15 U.S.C. 78o(b), 78o–5) or a futures
commission merchant registered under this Act;
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–377
‘‘(III) an associated person of a broker or dealer
registered under section 15(b) or 15C of the Securities Exchange Act of 1934 (15 U.S.C. 78o(b), 78o–
5), or an affiliated person of a futures commission
merchant registered under this Act, concerning the
financial or securities activities of which the registered person makes and keeps records under section 15C(b) or 17(h) of the Securities Exchange
Act of 1934 (15 U.S.C. 78o–5(b), 78q(h)) or section
4f(c)(2)(B) of this Act;
‘‘(IV) an insurance company described in section 1a(12)(A)(ii) of this Act, or a regulated subsidiary or affiliate of such an insurance company;
‘‘(V) a financial holding company (as defined
in section 2 of the Bank Holding Company Act
of 1956); or
‘‘(VI) an investment bank holding company (as
defined in section 17(i) of the Securities Exchange
Act of 1934).
‘‘(C) Notwithstanding subclauses (II) and (III) of
subparagraph (B)(ii), agreements, contracts, or transactions
described in subparagraph (B) shall be subject to sections
4b, 4c(b), 6(c) and 6(d) (to the extent that sections 6(c)
and 6(d) prohibit manipulation of the market price of any
commodity, in interstate commerce, or for future delivery
on or subject to the rules of any market), 6c, 6d, and
8(a) if they are entered into by a futures commission merchant or an affiliate of a futures commission merchant
that is not also an entity described in subparagraph (B)(ii)
of this paragraph.’’.
SEC. 103. LEGAL CERTAINTY FOR EXCLUDED DERIVATIVE TRANSACTIONS.
Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a,
3, 4, 4a) is further amended by adding at the end the following:
‘‘(d) EXCLUDED DERIVATIVE TRANSACTIONS.—
‘‘(1) IN GENERAL.—Nothing in this Act (other than section
5b or 12(e)(2)(B) governs or applies to an agreement, contract,
or transaction in an excluded commodity if—
‘‘(A) the agreement, contract, or transaction is entered
into only between persons that are eligible contract participants at the time at which the persons enter into the
agreement, contract, or transaction; and
‘‘(B) the agreement, contract, or transaction is not
executed or traded on a trading facility.
‘‘(2) ELECTRONIC TRADING FACILITY EXCLUSION.—Nothing
in this Act (other than section 5a (to the extent provided
in section 5a(g)), 5b, 5d, or 12(e)(2)(B)) governs or applies
to an agreement, contract, or transaction in an excluded
commodity if—
‘‘(A) the agreement, contract, or transaction is entered
into on a principal-to-principal basis between parties trading for their own accounts or as described in section
1a(12)(B)(ii);
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114 STAT. 2763A–378
PUBLIC LAW 106–554—APPENDIX E
‘‘(B) the agreement, contract, or transaction is entered
into only between persons that are eligible contract participants described in subparagraph (A), (B)(ii), or (C) of section 1a(12)) at the time at which the persons enter into
the agreement, contract, or transaction; and
‘‘(C) the agreement, contract, or transaction is executed
or traded on an electronic trading facility.’’.
SEC. 104. EXCLUDED ELECTRONIC TRADING FACILITIES.
Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a,
3, 4, 4a) is further amended by adding at the end the following:
‘‘(e) EXCLUDED ELECTRONIC TRADING FACILITIES.—
‘‘(1) IN GENERAL.—Nothing in this Act (other than section
12(e)(2)(B)) governs or is applicable to an electronic trading
facility that limits transactions authorized to be conducted on
its facilities to those satisfying the requirements of section
2(d)(2), 2(g), or 2(h)(3).
‘‘(2) EFFECT ON AUTHORITY TO ESTABLISH AND OPERATE.—
Nothing in this Act shall prohibit a board of trade designated
by the Commission as a contract market or derivatives transaction execution facility, or operating as an exempt board of
trade from establishing and operating an electronic trading
facility excluded under this Act pursuant to paragraph (1).
‘‘(3) EFFECT ON TRANSACTIONS.—No failure by an electronic
trading facility to limit transactions as required by paragraph
(1) of this subsection or to comply with section 2(h)(5) shall
in itself affect the legality, validity, or enforceability of an
agreement, contract, or transaction entered into or traded on
the electronic trading facility or cause a participant on the
system to be in violation of this Act.
‘‘(4) SPECIAL RULE.—A person or group of persons that
would not otherwise constitute a trading facility shall not be
considered to be a trading facility solely as a result of the
submission to a derivatives clearing organization of transactions
executed on or through the person or group of persons.’’.
SEC. 105. HYBRID INSTRUMENTS; SWAP TRANSACTIONS.
(a) HYBRID INSTRUMENTS.—Section 2 of the Commodity
Exchange Act (7 U.S.C. 2, 2a, 3, 4, 4a) is further amended by
adding at the end the following:
‘‘(f ) EXCLUSION FOR QUALIFYING HYBRID INSTRUMENTS.—
‘‘(1) IN GENERAL.—Nothing in this Act (other than section
12(e)(2)(B)) governs or is applicable to a hybrid instrument
that is predominantly a security.
‘‘(2) PREDOMINANCE.—A hybrid instrument shall be considered to be predominantly a security if—
‘‘(A) the issuer of the hybrid instrument receives payment in full of the purchase price of the hybrid instrument,
substantially contemporaneously with delivery of the
hybrid instrument;
‘‘(B) the purchaser or holder of the hybrid instrument
is not required to make any payment to the issuer in
addition to the purchase price paid under subparagraph
(A), whether as margin, settlement payment, or otherwise,
during the life of the hybrid instrument or at maturity;
‘‘(C) the issuer of the hybrid instrument is not subject
by the terms of the instrument to mark-to-market margining requirements; and
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–379
‘‘(D) the hybrid instrument is not marketed as a contract of sale of a commodity for future delivery (or option
on such a contract) subject to this Act.
‘‘(3) MARK-TO-MARKET MARGINING REQUIREMENTS.—For the
purposes of paragraph (2)(C), mark-to-market margining
requirements do not include the obligation of an issuer of
a secured debt instrument to increase the amount of collateral
held in pledge for the benefit of the purchaser of the secured
debt instrument to secure the repayment obligations of the
issuer under the secured debt instrument.’’.
(b) SWAP TRANSACTIONS.—Section 2 of the Commodity
Exchange Act (7 U.S.C. 2, 2a, 3, 4, 4a) is further amended by
adding at the end the following:
‘‘(g) EXCLUDED SWAP TRANSACTIONS.—No provision of this Act
(other than section 5a (to the extent provided in section 5a(g)),
5b, 5d, or 12(e)(2)) shall apply to or govern any agreement, contract,
or transaction in a commodity other than an agricultural commodity
if the agreement, contract, or transaction is—
‘‘(1) entered into only between persons that are eligible
contract participants at the time they enter into the agreement,
contract, or transaction;
‘‘(2) subject to individual negotiation by the parties; and
‘‘(3) not executed or traded on a trading facility.’’.
(c) STUDY REGARDING RETAIL SWAPS.—
(1) IN GENERAL.—The Board of Governors of the Federal
Reserve System, the Secretary of the Treasury, the Commodity
Futures Trading Commission, and the Securities and Exchange
Commission shall conduct a study of issues involving the offering of swap agreements to persons other than eligible contract
participants (as defined in section 1a of the Commodity
Exchange Act).
(2) MATTERS TO BE ADDRESSED.—The study shall address—
(A) the potential uses of swap agreements by persons
other than eligible contract participants;
(B) the extent to which financial institutions are willing
to offer swap agreements to persons other than eligible
contract participants;
(C) the appropriate regulatory structure to address
customer protection issues that may arise in connection
with the offer of swap agreements to persons other than
eligible contract participants; and
(D) such other relevant matters deemed necessary or
appropriate to address.
(3) REPORT.—Before the end of the 1-year period beginning
on the date of the enactment of this Act, a report on the
findings and conclusions of the study required by paragraph
(1) shall be submitted to Congress, together with such recommendations for legislative action as are deemed necessary
and appropriate.
SEC. 106. TRANSACTIONS IN EXEMPT COMMODITIES.
Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a,
3, 4, 4a) is further amended by adding at the end the following:
‘‘(h) LEGAL CERTAINTY FOR CERTAIN TRANSACTIONS IN EXEMPT
COMMODITIES.—
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114 STAT. 2763A–380
PUBLIC LAW 106–554—APPENDIX E
‘‘(1) Except as provided in paragraph (2), nothing in this
Act shall apply to a contract, agreement, or transaction in
an exempt commodity which—
‘‘(A) is entered into solely between persons that are
eligible contract participants at the time the persons enter
into the agreement, contract, or transaction; and
‘‘(B) is not entered into on a trading facility.
‘‘(2) An agreement, contract, or transaction described in
paragraph (1) of this subsection shall be subject to—
‘‘(A) sections 5b and 12(e)(2)(B);
‘‘(B) sections 4b, 4o, 6(c), 6(d), 6c, 6d, and 8a, and
the regulations of the Commission pursuant to section 4c(b)
proscribing fraud in connection with commodity option
transactions, to the extent the agreement, contract, or
transaction is not between eligible commercial entities
(unless one of the entities is an instrumentality, department, or agency of a State or local governmental entity)
and would otherwise be subject to such sections and regulations; and
‘‘(C) sections 6(c), 6(d), 6c, 6d, 8a, and 9(a)(2), to the
extent such sections prohibit manipulation of the market
price of any commodity in interstate commerce and the
agreement, contract, or transaction would otherwise be subject to such sections.
‘‘(3) Except as provided in paragraph (4), nothing in this
Act shall apply to an agreement, contract, or transaction in
an exempt commodity which is—
‘‘(A) entered into on a principal-to-principal basis solely
between persons that are eligible commercial entities at
the time the persons enter into the agreement, contract,
or transaction; and
‘‘(B) executed or traded on an electronic trading facility.
‘‘(4) An agreement, contract, or transaction described in
paragraph (3) of this subsection shall be subject to—
‘‘(A) sections 5a (to the extent provided in section 5a(g)),
5b, 5d, and 12(e)(2)(B);
‘‘(B) sections 4b and 4o and the regulations of the
Commission pursuant to section 4c(b) proscribing fraud
in connection with commodity option transactions to the
extent the agreement, contract, or transaction would otherwise be subject to such sections and regulations;
‘‘(C) sections 6(c) and 9(a)(2), to the extent such sections
prohibit manipulation of the market price of any commodity
in interstate commerce and to the extent the agreement,
contract, or transaction would otherwise be subject to such
sections; and
‘‘(D) such rules and regulations as the Commission
may prescribe if necessary to ensure timely dissemination
by the electronic trading facility of price, trading volume,
and other trading data to the extent appropriate, if the
Commission determines that the electronic trading facility
performs a significant price discovery function for transactions in the cash market for the commodity underlying
any agreement, contract, or transaction executed or traded
on the electronic trading facility.
‘‘(5) An electronic trading facility relying on the exemption
provided in paragraph (3) shall—
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114 STAT. 2763A–381
‘‘(A) notify the Commission of its intention to operate
an electronic trading facility in reliance on the exemption
set forth in paragraph (3), which notice shall include—
‘‘(i) the name and address of the facility and a
person designated to receive communications from the
Commission;
‘‘(ii) the commodity categories that the facility
intends to list or otherwise make available for trading
on the facility in reliance on the exemption set forth
in paragraph (3);
‘‘(iii) certifications that—
‘‘(I) no executive officer or member of the
governing board of, or any holder of a 10 percent
or greater equity interest in, the facility is a person
described in any of subparagraphs (A) through
(H) of section 8a(2);
‘‘(II) the facility will comply with the conditions for exemption under this paragraph; and
‘‘(III) the facility will notify the Commission
of any material change in the information previously provided by the facility to the Commission
pursuant to this paragraph; and
‘‘(iv) the identity of any derivatives clearing
organization to which the facility transmits or intends
to transmit transaction data for the purpose of facilitating the clearance and settlement of transactions conducted on the facility in reliance on the exemption
set forth in paragraph (3);
‘‘(B)(i)(I) provide the Commission with access to the
facility’s trading protocols and electronic access to the facility with respect to transactions conducted in reliance on
the exemption set forth in paragraph (3); or
‘‘(II) provide such reports to the Commission regarding
transactions executed on the facility in reliance on the
exemption set forth in paragraph (3) as the Commission
may from time to time request to enable the Commission
to satisfy its obligations under this Act;
‘‘(ii) maintain for 5 years, and make available for
inspection by the Commission upon request, records of
activities related to its business as an electronic trading
facility exempt under paragraph (3), including—
‘‘(I) information relating to data entry and transaction details sufficient to enable the Commission to
reconstruct trading activity on the facility conducted
in reliance on the exemption set forth in paragraph
(3); and
‘‘(II) the name and address of each participant
on the facility authorized to enter into transactions
in reliance on the exemption set forth in paragraph
(3); and
‘‘(iii) upon special call by the Commission, provide to
the Commission, in a form and manner and within the
period specified in the special call, such information related
to its business as an electronic trading facility exempt
under paragraph (3), including information relating to data
entry and transaction details in respect of transactions
entered into in reliance on the exemption set forth in
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114 STAT. 2763A–382
PUBLIC LAW 106–554—APPENDIX E
paragraph (3), as the Commission may determine
appropriate—
‘‘(I) to enforce the provisions specified in subparagraphs (B) and (C) of paragraph (4);
‘‘(II) to evaluate a systemic market event; or
‘‘(III) to obtain information requested by a Federal
financial regulatory authority in order to enable the
regulator to fulfill its regulatory or supervisory responsibilities;
‘‘(C)(i) upon receipt of any subpoena issued by or on
behalf of the Commission to any foreign person who the
Commission believes is conducting or has conducted transactions in reliance on the exemption set forth in paragraph
(3) on or through the electronic trading facility relating
to the transactions, promptly notify the foreign person of,
and transmit to the foreign person, the subpoena in a
manner reasonable under the circumstances, or as specified
by the Commission; and
‘‘(ii) if the Commission has reason to believe that a
person has not timely complied with a subpoena issued
by or on behalf of the Commission pursuant to clause
(i), and the Commission in writing has directed that a
facility relying on the exemption set forth in paragraph
(3) deny or limit further transactions by the person, the
facility shall deny that person further trading access to
the facility or, as applicable, limit that person’s access
to the facility for liquidation trading only;
‘‘(D) comply with the requirements of this paragraph
applicable to the facility and require that each participant,
as a condition of trading on the facility in reliance on
the exemption set forth in paragraph (3), agree to comply
with all applicable law;
‘‘(E) have a reasonable basis for believing that participants authorized to conduct transactions on the facility
in reliance on the exemption set forth in paragraph (3)
are eligible commercial entities; and
‘‘(F) not represent to any person that the facility is
registered with, or designated, recognized, licensed, or
approved by the Commission.
‘‘(6) A person named in a subpoena referred to in paragraph
(5)(C) that believes the person is or may be adversely affected
or aggrieved by action taken by the Commission under this
section, shall have the opportunity for a prompt hearing after
the Commission acts under procedures that the Commission
shall establish by rule, regulation, or order.’’.
SEC. 107. APPLICATION OF COMMODITY FUTURES LAWS.
Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a,
3, 4, 4a) is further amended by adding at the end the following:
‘‘(i) APPLICATION OF COMMODITY FUTURES LAWS.—
‘‘(1) No provision of this Act shall be construed as implying
or creating any presumption that—
‘‘(A) any agreement, contract, or transaction that is
excluded from this Act under section 2(c), 2(d), 2(e), 2(f ),
or 2(g) of this Act or title IV of the Commodity Futures
Modernization Act of 2000, or exempted under section 2(h)
or 4(c) of this Act; or
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114 STAT. 2763A–383
‘‘(B) any agreement, contract, or transaction, not otherwise subject to this Act, that is not so excluded or exempted,
is or would otherwise be subject to this Act.
‘‘(2) No provision of, or amendment made by, the Commodity Futures Modernization Act of 2000 shall be construed as
conferring jurisdiction on the Commission with respect to any
such agreement, contract, or transaction, except as expressly
provided in section 5a of this Act (to the extent provided in
section 5a(g) of this Act), 5b of this Act, or 5d of this Act.’’.
SEC. 108. PROTECTION OF THE PUBLIC INTEREST.
The Commodity Exchange Act is amended by striking section
3 (7 U.S.C. 5) and inserting the following:
‘‘SEC. 3. FINDINGS AND PURPOSE.
‘‘(a) FINDINGS.—The transactions subject to this Act are entered
into regularly in interstate and international commerce and are
affected with a national public interest by providing a means for
managing and assuming price risks, discovering prices, or disseminating pricing information through trading in liquid, fair and financially secure trading facilities.
‘‘(b) PURPOSE.—It is the purpose of this Act to serve the public
interests described in subsection (a) through a system of effective
self-regulation of trading facilities, clearing systems, market participants and market professionals under the oversight of the Commission. To foster these public interests, it is further the purpose
of this Act to deter and prevent price manipulation or any other
disruptions to market integrity; to ensure the financial integrity
of all transactions subject to this Act and the avoidance of systemic
risk; to protect all market participants from fraudulent or other
abusive sales practices and misuses of customer assets; and to
promote responsible innovation and fair competition among boards
of trade, other markets and market participants.’’.
SEC. 109. PROHIBITED TRANSACTIONS.
Section 4c of the Commodity Exchange Act (7 U.S.C. 6c) is
amended by striking ‘‘SEC. 4c.’’ and all that follows through subsection (a) and inserting the following:
‘‘SEC. 4c. PROHIBITED TRANSACTIONS.
‘‘(a) IN GENERAL.—
‘‘(1) PROHIBITION.—It shall be unlawful for any person to
offer to enter into, enter into, or confirm the execution of
a transaction described in paragraph (2) involving the purchase
or sale of any commodity for future delivery (or any option
on such a transaction or option on a commodity) if the transaction is used or may be used to—
‘‘(A) hedge any transaction in interstate commerce in
the commodity or the product or byproduct of the commodity;
‘‘(B) determine the price basis of any such transaction
in interstate commerce in the commodity; or
‘‘(C) deliver any such commodity sold, shipped, or
received in interstate commerce for the execution of the
transaction.
‘‘(2) TRANSACTION.—A transaction referred to in paragraph
(1) is a transaction that—
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‘‘(A)(i) is, of the character of, or is commonly known
to the trade as, a ‘wash sale’ or ‘accommodation trade’;
or
‘‘(ii) is a fictitious sale; or
‘‘(B) is used to cause any price to be reported, registered, or recorded that is not a true and bona fide price.’’.
SEC. 110. DESIGNATION OF BOARDS OF TRADE AS CONTRACT MARKETS.
The Commodity Exchange Act is amended—
(1) by redesignating section 5b (7 U.S.C. 7b) as section
5e; and
(2) by striking sections 5 and 5a (7 U.S.C. 7, 7a) and
inserting the following:
‘‘SEC. 5. DESIGNATION OF BOARDS OF TRADE AS CONTRACT MARKETS.
‘‘(a) APPLICATIONS.—A board of trade applying to the Commission for designation as a contract market shall submit an application
to the Commission that includes any relevant materials and records
the Commission may require consistent with this Act.
‘‘(b) CRITERIA FOR DESIGNATION.—
‘‘(1) IN GENERAL.—To be designated as a contract market,
the board of trade shall demonstrate to the Commission that
the board of trade meets the criteria specified in this subsection.
‘‘(2) PREVENTION OF MARKET MANIPULATION.—The board
of trade shall have the capacity to prevent market manipulation
through market surveillance, compliance, and enforcement
practices and procedures, including methods for conducting
real-time monitoring of trading and comprehensive and
accurate trade reconstructions.
‘‘(3) FAIR AND EQUITABLE TRADING.—The board of trade
shall establish and enforce trading rules to ensure fair and
equitable trading through the facilities of the contract market,
and the capacity to detect, investigate, and discipline any person that violates the rules. The rules may authorize—
‘‘(A) transfer trades or office trades;
‘‘(B) an exchange of—
‘‘(i) futures in connection with a cash commodity
transaction;
‘‘(ii) futures for cash commodities; or
‘‘(iii) futures for swaps; or
‘‘(C) a futures commission merchant, acting as principal
or agent, to enter into or confirm the execution of a contract
for the purchase or sale of a commodity for future delivery
if the contract is reported, recorded, or cleared in accordance with the rules of the contract market or a derivatives
clearing organization.
‘‘(4) TRADE EXECUTION FACILITY.—The board of trade
shall—
‘‘(A) establish and enforce rules defining, or specifications detailing, the manner of operation of the trade execution facility maintained by the board of trade, including
rules or specifications describing the operation of any electronic matching platform; and
‘‘(B) demonstrate that the trade execution facility operates in accordance with the rules or specifications.
‘‘(5) FINANCIAL INTEGRITY OF TRANSACTIONS.—The board
of trade shall establish and enforce rules and procedures for
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114 STAT. 2763A–385
ensuring the financial integrity of transactions entered into
by or through the facilities of the contract market, including
the clearance and settlement of the transactions with a derivatives clearing organization.
‘‘(6) DISCIPLINARY PROCEDURES.—The board of trade shall
establish and enforce disciplinary procedures that authorize
the board of trade to discipline, suspend, or expel members
or market participants that violate the rules of the board of
trade, or similar methods for performing the same functions,
including delegation of the functions to third parties.
‘‘(7) PUBLIC ACCESS.—The board of trade shall provide the
public with access to the rules, regulations, and contract specifications of the board of trade.
‘‘(8) ABILITY TO OBTAIN INFORMATION.—The board of trade
shall establish and enforce rules that will allow the board
of trade to obtain any necessary information to perform any
of the functions described in this subsection, including the
capacity to carry out such international information-sharing
agreements as the Commission may require.
‘‘(c) EXISTING CONTRACT MARKETS.—A board of trade that is
designated as a contract market on the date of the enactment
of the Commodity Futures Modernization Act of 2000 shall be
considered to be a designated contract market under this section.
‘‘(d) CORE PRINCIPLES FOR CONTRACT MARKETS.—
‘‘(1) IN GENERAL.—To maintain the designation of a board
of trade as a contract market, the board of trade shall comply
with the core principles specified in this subsection. The board
of trade shall have reasonable discretion in establishing the
manner in which it complies with the core principles.
‘‘(2) COMPLIANCE WITH RULES.—The board of trade shall
monitor and enforce compliance with the rules of the contract
market, including the terms and conditions of any contracts
to be traded and any limitations on access to the contract
market.
‘‘(3) CONTRACTS NOT READILY SUBJECT TO MANIPULATION.—
The board of trade shall list on the contract market only contracts that are not readily susceptible to manipulation.
‘‘(4) MONITORING OF TRADING.—The board of trade shall
monitor trading to prevent manipulation, price distortion, and
disruptions of the delivery or cash-settlement process.
‘‘(5) POSITION LIMITATIONS OR ACCOUNTABILITY.—To reduce
the potential threat of market manipulation or congestion, especially during trading in the delivery month, the board of trade
shall adopt position limitations or position accountability for
speculators, where necessary and appropriate.
‘‘(6) EMERGENCY AUTHORITY.—The board of trade shall
adopt rules to provide for the exercise of emergency authority,
in consultation or cooperation with the Commission, where
necessary and appropriate, including the authority to—
‘‘(A) liquidate or transfer open positions in any contract;
‘‘(B) suspend or curtail trading in any contract; and
‘‘(C) require market participants in any contract to
meet special margin requirements.
‘‘(7) AVAILABILITY OF GENERAL INFORMATION.—The board
of trade shall make available to market authorities, market
participants, and the public information concerning—
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‘‘(A) the terms and conditions of the contracts of the
contract market; and
‘‘(B) the mechanisms for executing transactions on or
through the facilities of the contract market.
‘‘(8) DAILY PUBLICATION OF TRADING INFORMATION.—The
board of trade shall make public daily information on settlement prices, volume, open interest, and opening and closing
ranges for actively traded contracts on the contract market.
‘‘(9) EXECUTION OF TRANSACTIONS.—The board of trade
shall provide a competitive, open, and efficient market and
mechanism for executing transactions.
‘‘(10) TRADE INFORMATION.—The board of trade shall maintain rules and procedures to provide for the recording and
safe storage of all identifying trade information in a manner
that enables the contract market to use the information for
purposes of assisting in the prevention of customer and market
abuses and providing evidence of any violations of the rules
of the contract market.
‘‘(11) FINANCIAL INTEGRITY OF CONTRACTS.—The board of
trade shall establish and enforce rules providing for the financial integrity of any contracts traded on the contract market
(including the clearance and settlement of the transactions
with a derivatives clearing organization), and rules to ensure
the financial integrity of any futures commission merchants
and introducing brokers and the protection of customer funds.
‘‘(12) PROTECTION OF MARKET PARTICIPANTS.—The board
of trade shall establish and enforce rules to protect market
participants from abusive practices committed by any party
acting as an agent for the participants.
‘‘(13) DISPUTE RESOLUTION.—The board of trade shall establish and enforce rules regarding and provide facilities for alternative dispute resolution as appropriate for market participants
and any market intermediaries.
‘‘(14) GOVERNANCE FITNESS STANDARDS.—The board of trade
shall establish and enforce appropriate fitness standards for
directors, members of any disciplinary committee, members
of the contract market, and any other persons with direct
access to the facility (including any parties affiliated with any
of the persons described in this paragraph).
‘‘(15) CONFLICTS OF INTEREST.—The board of trade shall
establish and enforce rules to minimize conflicts of interest
in the decisionmaking process of the contract market and establish a process for resolving such conflicts of interest.
‘‘(16) COMPOSITION OF BOARDS OF MUTUALLY OWNED CONTRACT MARKETS.—In the case of a mutually owned contract
market, the board of trade shall ensure that the composition
of the governing board reflects market participants.
‘‘(17) RECORDKEEPING.—The board of trade shall maintain
records of all activities related to the business of the contract
market in a form and manner acceptable to the Commission
for a period of 5 years.
‘‘(18) ANTITRUST CONSIDERATIONS.—Unless necessary or
appropriate to achieve the purposes of this Act, the board
of trade shall endeavor to avoid—
‘‘(A) adopting any rules or taking any actions that
result in any unreasonable restraints of trade; or
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–387
‘‘(B) imposing any material anticompetitive burden on
trading on the contract market.
‘‘(e) CURRENT AGRICULTURAL COMMODITIES.—
‘‘(1) Subject to paragraph (2) of this subsection, a contract
for purchase or sale for future delivery of an agricultural
commodity enumerated in section 1a(4) that is available for
trade on a contract market, as of the date of the enactment
of this subsection, may be traded only on a contract market
designated under this section.
‘‘(2) In order to promote responsible economic or financial
innovation and fair competition, the Commission, on application
by any person, after notice and public comment and opportunity
for hearing, may prescribe rules and regulations to provide
for the offer and sale of contracts for future delivery or options
on such contracts to be conducted on a derivatives transaction
execution facility.’’.
SEC. 111. DERIVATIVES TRANSACTION EXECUTION FACILITIES.
The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended
by inserting after section 5 (as amended by section 110(2)) the
following:
‘‘SEC. 5a. DERIVATIVES TRANSACTION EXECUTION FACILITIES.
‘‘(a) IN GENERAL.—In lieu of compliance with the contract market designation requirements of sections 4(a) and 5, a board of
trade may elect to operate as a registered derivatives transaction
execution facility if the facility is—
‘‘(1) designated as a contract market and meets the requirements of this section; or
‘‘(2) registered as a derivatives transaction execution facility under subsection (c) of this section.
‘‘(b) REQUIREMENTS FOR TRADING.—
‘‘(1) IN GENERAL.—A registered derivatives transaction
execution facility under subsection (a) may trade any contract
of sale of a commodity for future delivery (or option on such
a contract) on or through the facility only by satisfying the
requirements of this section.
‘‘(2) REQUIREMENTS FOR UNDERLYING COMMODITIES.—A registered derivatives transaction execution facility may trade any
contract of sale of a commodity for future delivery (or option
on such a contract) only if—
‘‘(A) the underlying commodity has a nearly inexhaustible deliverable supply;
‘‘(B) the underlying commodity has a deliverable supply
that is sufficiently large that the contract is highly unlikely
to be susceptible to the threat of manipulation;
‘‘(C) the underlying commodity has no cash market;
‘‘(D)(i) the contract is a security futures product, and
(ii) the registered derivatives transaction execution facility
is a national securities exchange registered under the Securities Exchange Act of 1934;
‘‘(E) the Commission determines, based on the market
characteristics, surveillance history, self-regulatory record,
and capacity of the facility that trading in the contract
(or option) is highly unlikely to be susceptible to the threat
of manipulation; or
‘‘(F) except as provided in section 5(e)(2), the underlying commodity is a commodity other than an agricultural
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commodity enumerated in section 1a(4), and trading access
to the facility is limited to eligible commercial entities
trading for their own account.
‘‘(3) ELIGIBLE TRADERS.—To trade on a registered derivatives transaction execution facility, a person shall—
‘‘(A) be an eligible contract participant; or
‘‘(B) be a person trading through a futures commission
merchant that—
‘‘(i) is registered with the Commission;
‘‘(ii) is a member of a futures self-regulatory
organization or, if the person trades only security
futures products on the facility, a national securities
association registered under section 15A(a) of the Securities Exchange Act of 1934;
‘‘(iii) is a clearing member of a derivatives clearing
organization; and
‘‘(iv) has net capital of at least $20,000,000.
‘‘(4) TRADING BY CONTRACT MARKETS.—A board of trade
that is designated as a contract market shall, to the extent
that the contract market also operates a registered derivatives
transaction execution facility—
‘‘(A) provide a physical location for the contract market
trading of the board of trade that is separate from trading
on the derivatives transaction execution facility of the board
of trade; or
‘‘(B) if the board of trade uses the same electronic
trading system for trading on the contract market and
derivatives transaction execution facility of the board of
trade, identify whether the electronic trading is taking
place on the contract market or the derivatives transaction
execution facility.
‘‘(c) CRITERIA FOR REGISTRATION.—
‘‘(1) IN GENERAL.—To be registered as a registered derivatives transaction execution facility, the board of trade shall
be required to demonstrate to the Commission only that the
board of trade meets the criteria specified in subsection (b)
and this subsection.
‘‘(2) DETERRENCE OF ABUSES.—The board of trade shall
establish and enforce trading and participation rules that will
deter abuses and has the capacity to detect, investigate, and
enforce those rules, including means to—
‘‘(A) obtain information necessary to perform the functions required under this section; or
‘‘(B) use technological means to—
‘‘(i) provide market participants with impartial
access to the market; and
‘‘(ii) capture information that may be used in
establishing whether rule violations have occurred.
‘‘(3) TRADING PROCEDURES.—The board of trade shall establish and enforce rules or terms and conditions defining, or
specifications detailing, trading procedures to be used in entering and executing orders traded on the facilities of the board
of trade. The rules may authorize—
‘‘(A) transfer trades or office trades;
‘‘(B) an exchange of—
‘‘(i) futures in connection with a cash commodity
transaction;
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‘‘(ii) futures for cash commodities; or
‘‘(iii) futures for swaps; or
‘‘(C) a futures commission merchant, acting as principal
or agent, to enter into or confirm the execution of a contract
for the purchase or sale of a commodity for future delivery
if the contract is reported, recorded, or cleared in accordance with the rules of the registered derivatives transaction
execution facility or a derivatives clearing organization.
‘‘(4) FINANCIAL INTEGRITY OF TRANSACTIONS.—The board
of trade shall establish and enforce rules or terms and conditions providing for the financial integrity of transactions
entered on or through the facilities of the board of trade,
and rules or terms and conditions to ensure the financial integrity of any futures commission merchants and introducing brokers and the protection of customer funds.
‘‘(d) CORE PRINCIPLES FOR REGISTERED DERIVATIVES TRANSACTION EXECUTION FACILITIES.—
‘‘(1) IN GENERAL.—To maintain the registration of a board
of trade as a derivatives transaction execution facility, a board
of trade shall comply with the core principles specified in this
subsection. The board of trade shall have reasonable discretion
in establishing the manner in which the board of trade complies
with the core principles.
‘‘(2) COMPLIANCE WITH RULES.—The board of trade shall
monitor and enforce the rules of the facility, including any
terms and conditions of any contracts traded on or through
the facility and any limitations on access to the facility.
‘‘(3) MONITORING OF TRADING.—The board of trade shall
monitor trading in the contracts of the facility to ensure orderly
trading in the contract and to maintain an orderly market
while providing any necessary trading information to the
Commission to allow the Commission to discharge the responsibilities of the Commission under the Act.
‘‘(4) DISCLOSURE OF GENERAL INFORMATION.—The board of
trade shall disclose publicly and to the Commission information
concerning—
‘‘(A) contract terms and conditions;
‘‘(B) trading conventions, mechanisms, and practices;
‘‘(C) financial integrity protections; and
‘‘(D) other information relevant to participation in trading on the facility.
‘‘(5) DAILY PUBLICATION OF TRADING INFORMATION.—The
board of trade shall make public daily information on settlement prices, volume, open interest, and opening and closing
ranges for contracts traded on the facility if the Commission
determines that the contracts perform a significant price discovery function for transactions in the cash market for the
commodity underlying the contracts.
‘‘(6) FITNESS STANDARDS.—The board of trade shall establish and enforce appropriate fitness standards for directors,
members of any disciplinary committee, members, and any
other persons with direct access to the facility, including any
parties affiliated with any of the persons described in this
paragraph.
‘‘(7) CONFLICTS OF INTEREST.—The board of trade shall
establish and enforce rules to minimize conflicts of interest
in the decision making process of the derivatives transaction
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execution facility and establish a process for resolving such
conflicts of interest.
‘‘(8) RECORDKEEPING.—The board of trade shall maintain
records of all activities related to the business of the derivatives
transaction execution facility in a form and manner acceptable
to the Commission for a period of 5 years.
‘‘(9) ANTITRUST CONSIDERATIONS.—Unless necessary or
appropriate to achieve the purposes of this Act, the board
of trade shall endeavor to avoid—
‘‘(A) adopting any rules or taking any actions that
result in any unreasonable restraint of trade; or
‘‘(B) imposing any material anticompetitive burden on
trading on the derivatives transaction execution facility.
‘‘(e) USE OF BROKER-DEALERS, DEPOSITORY INSTITUTIONS, AND
FARM CREDIT SYSTEM INSTITUTIONS AS INTERMEDIARIES.—
‘‘(1) IN GENERAL.—With respect to transactions other than
transactions in security futures products, a registered derivatives transaction execution facility may by rule allow a brokerdealer, depository institution, or institution of the Farm Credit
System that meets the requirements of paragraph (2) to—
‘‘(A) act as an intermediary in transactions executed
on the facility on behalf of customers of the broker-dealer,
depository institution, or institution of the Farm Credit
System; and
‘‘(B) receive funds of customers to serve as margin
or security for the transactions.
‘‘(2) REQUIREMENTS.—The requirements referred to in paragraph (1) are that—
‘‘(A) the broker-dealer be in good standing with the
Securities and Exchange Commission, or the depository
institution or institution of the Farm Credit System be
in good standing with Federal bank regulatory agencies
(including the Farm Credit Administration), as applicable;
and
‘‘(B) if the broker-dealer, depository institution, or
institution of the Farm Credit System carries or holds
customer accounts or funds for transactions on the derivatives transaction execution facility for more than 1 business
day, the broker-dealer, depository institution, or institution
of the Farm Credit System is registered as a futures
commission merchant and is a member of a registered
futures association.
‘‘(3) IMPLEMENTATION.—The Commission shall cooperate
and coordinate with the Securities and Exchange Commission,
the Secretary of the Treasury, and Federal banking regulatory
agencies (including the Farm Credit Administration) in adopting rules and taking any other appropriate action to facilitate
the implementation of this subsection.
‘‘(f ) SEGREGATION OF CUSTOMER FUNDS.—Not later than 180
days after the date of the enactment of the Commodity Futures
Modernization Act of 2000, consistent with regulations adopted
by the Commission, a registered derivatives transaction execution
facility may authorize a futures commission merchant to offer any
customer of the futures commission merchant that is an eligible
contract participant the right to not segregate the customer funds
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of the customer that are carried with the futures commission merchant for purposes of trading on or through the facilities of the
registered derivatives transaction execution facility.
‘‘(g) ELECTION TO TRADE EXCLUDED AND EXEMPT COMMODITIES.—
‘‘(1) IN GENERAL.—Notwithstanding subsection (b)(2) of this
section, a board of trade that is or elects to become a registered
derivatives transaction execution facility may trade on the facility any agreements, contracts, or transactions involving
excluded or exempt commodities other than securities, except
contracts of sale for future delivery of exempt securities under
section 3(a)(12) of the Securities Exchange Act of 1934 as
in effect on the date of the enactment of the Futures Trading
Act of 1982, that are otherwise excluded from this Act under
section 2(c), 2(d), or 2(g) of this Act, or exempt under section
2(h) of this Act.
‘‘(2) EXCLUSIVE JURISDICTION OF THE COMMISSION.—The
Commission shall have exclusive jurisdiction over agreements,
contracts, or transactions described in paragraph (1) to the
extent that the agreements, contracts, or transactions are
traded on a derivatives transaction execution facility.’’.
SEC. 112. DERIVATIVES CLEARING.
(a) IN GENERAL.—Subtitle A of title IV of the Federal Deposit
Insurance Corporation Improvement Act of 1991 is amended—
(1) by inserting before the section heading for section 401,
the following new heading:
‘‘CHAPTER 1—BILATERAL AND CLEARING
ORGANIZATION NETTING’’;
(2) in section 402, by striking ‘‘this subtitle’’ and inserting
‘‘this chapter’’; and
(3) by inserting after section 407, the following new chapter:
‘‘CHAPTER 2—MULTILATERAL CLEARING
ORGANIZATIONS
‘‘SEC. 408. DEFINITIONS.
For purposes of this chapter, the following definitions shall
apply:
‘‘(1) MULTILATERAL CLEARING ORGANIZATION.—The term
‘multilateral clearing organization’ means a system utilized
by more than two participants in which the bilateral credit
exposures of participants arising from the transactions cleared
are effectively eliminated and replaced by a system of guarantees, insurance, or mutualized risk of loss.
‘‘(2) OVER-THE-COUNTER DERIVATIVE INSTRUMENT.—The
term ‘over-the-counter derivative instrument’ includes—
‘‘(A) any agreement, contract, or transaction, including
the terms and conditions incorporated by reference in any
such agreement, contract, or transaction, which is an
interest rate swap, option, or forward agreement, including
a rate floor, rate cap, rate collar, cross-currency rate swap,
basis swap, and forward rate agreement; a same day-tomorrow, tomorrow-next, forward, or other foreign exchange
or precious metals agreement; a currency swap, option,
or forward agreement; an equity index or equity swap,
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option, or forward agreement; a debt index or debt swap,
option, or forward agreement; a credit spread or credit
swap, option, or forward agreement; a commodity index
or commodity swap, option, or forward agreement; and
a weather swap, weather derivative, or weather option;
‘‘(B) any agreement, contract or transaction similar
to any other agreement, contract, or transaction referred
to in this clause that is presently, or in the future becomes,
regularly entered into by parties that participate in swap
transactions (including terms and conditions incorporated
by reference in the agreement) and that is a forward,
swap, or option on one or more occurrences of any event,
rates, currencies, commodities, equity securities or other
equity instruments, debt securities or other debt
instruments, economic or other indices or measures of economic or other risk or value;
‘‘(C) any agreement, contract, or transaction excluded
from the Commodity Exchange Act under section 2(c), 2(d),
2(f ), or 2(g) of such Act, or exempted under section 2(h)
or 4(c) of such Act; and
‘‘(D) any option to enter into any, or any combination
of, agreements, contracts or transactions referred to in
this subparagraph.
‘‘(3) OTHER DEFINITIONS.—The terms ‘insured State nonmember bank’, ‘State member bank’, and ‘affiliate’ have the
same meanings as in section 3 of the Federal Deposit Insurance
Act.
‘‘SEC. 409. MULTILATERAL CLEARING ORGANIZATIONS.
‘‘(a) IN GENERAL.—Except with respect to clearing organizations
described in subsection (b), no person may operate a multilateral
clearing organization for over-the-counter derivative instruments,
or otherwise engage in activities that constitute such a multilateral
clearing organization unless the person is a national bank, a State
member bank, an insured State nonmember bank, an affiliate of
a national bank, a State member bank, or an insured State nonmember bank, or a corporation chartered under section 25A of
the Federal Reserve Act.
‘‘(b) CLEARING ORGANIZATIONS.—Subsection (a) shall not apply
to any clearing organization that—
‘‘(1) is registered as a clearing agency under the Securities
Exchange Act of 1934;
‘‘(2) is registered as a derivatives clearing organization
under the Commodity Exchange Act; or
‘‘(3) is supervised by a foreign financial regulator that
the Comptroller of the Currency, the Board of Governors of
the Federal Reserve System, the Federal Deposit Insurance
Corporation, the Securities and Exchange Commission, or the
Commodity Futures Trading Commission, as applicable, has
determined satisfies appropriate standards.’’.
(b) RESOLUTION OF CLEARING BANKS.—The Federal Reserve
Act (12 U.S.C. 221 et seq.) is amended by inserting after section
9A the following new section:
‘‘SEC. 9B. RESOLUTION OF CLEARING BANKS.
‘‘(a) CONSERVATORSHIP OR RECEIVERSHIP.—
‘‘(1) APPOINTMENT.—The Board may appoint a conservator
or receiver to take possession and control of any uninsured
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State member bank which operates, or operates as, a multilateral clearing organization pursuant to section 409 of the Federal
Deposit Insurance Corporation Improvement Act of 1991 to
the same extent and in the same manner as the Comptroller
of the Currency may appoint a conservator or receiver for
a national bank.
‘‘(2) POWERS.—The conservator or receiver for an uninsured
State member bank referred to in paragraph (1) shall exercise
the same powers, functions, and duties, subject to the same
limitations, as a conservator or receiver for a national bank.
‘‘(b) BOARD AUTHORITY.—The Board shall have the same
authority with respect to any conservator or receiver appointed
under subsection (a), and the uninsured State member bank for
which the conservator or receiver has been appointed, as the
Comptroller of the Currency has with respect to a conservator
or receiver for a national bank and the national bank for which
the conservator or receiver has been appointed.
‘‘(c) BANKRUPTCY PROCEEDINGS.—The Board (in the case of
an uninsured State member bank which operates, or operates as,
such a multilateral clearing organization) may direct a conservator
or receiver appointed for the bank to file a petition pursuant to
title 11, United States Code, in which case, title 11, United States
Code, shall apply to the bank in lieu of otherwise applicable Federal
or State insolvency law.’’.
(c) TECHNICAL AND CONFORMING AMENDMENTS TO TITLE 11,
UNITED STATES CODE.—
(1) BANKRUPTCY CODE DEBTORS.—Section 109(b)(2) of title
11, United States Code, is amended by striking ‘‘; or’’ and
inserting the following: ‘‘, except that an uninsured State member bank, or a corporation organized under section 25A of
the Federal Reserve Act, which operates, or operates as, a
multilateral clearing organization pursuant to section 409 of
the Federal Deposit Insurance Corporation Improvement Act
of 1991 may be a debtor if a petition is filed at the direction
of the Board of Governors of the Federal Reserve System;
or’’.
(2) CHAPTER 7 DEBTORS.—Section 109(d) of title 11, United
States Code, is amended to read as follows:
‘‘(d) Only a railroad, a person that may be a debtor under
chapter 7 of this title (except a stockbroker or a commodity broker),
and an uninsured State member bank, or a corporation organized
under section 25A of the Federal Reserve Act, which operates,
or operates as, a multilateral clearing organization pursuant to
section 409 of the Federal Deposit Insurance Corporation Improvement Act of 1991 may be a debtor under chapter 11 of this title.’’.
(3) DEFINITION OF FINANCIAL INSTITUTION.—Section 101(22)
of title 11, United States Code, is amended to read as follows:
‘‘(22) the term ‘financial institution’—
‘‘(A) means—
‘‘(i) a Federal reserve bank or an entity (domestic
or foreign) that is a commercial or savings bank, industrial savings bank, savings and loan association, trust
company, or receiver or conservator for such entity
and, when any such Federal reserve bank, receiver,
conservator, or entity is acting as agent or custodian
for a customer in connection with a securities contract,
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114 STAT. 2763A–394
PUBLIC LAW 106–554—APPENDIX E
as defined in section 741 of this title, the customer;
or
‘‘(ii) in connection with a securities contract, as
defined in section 741 of this title, an investment company registered under the Investment Company Act
of 1940; and
‘‘(B) includes any person described in subparagraph
(A) which operates, or operates as, a multilateral clearing
organization pursuant to section 409 of the Federal Deposit
Insurance Corporation Improvement Act of 1991;’’.
(4) DEFINITION OF UNINSURED STATE MEMBER BANK.—Section 101 of title 11, United States Code, is amended by inserting
after paragraph (54) the following new paragraph—
‘‘(54A) the term ‘uninsured State member bank’ means a State
member bank (as defined in section 3 of the Federal Deposit Insurance Act) the deposits of which are not insured by the Federal
Deposit Insurance Corporation; and’’.
(5) SUBCHAPTER V OF CHAPTER 7.—
(A) IN GENERAL.—Section 103 of title 11, United States
Code, is amended—
(i) by redesignating subsections (e) through (i) as
subsections (f ) through ( j), respectively; and
(ii) by inserting after subsection (d) the following
new subsection:
‘‘(e) SCOPE OF APPLICATION.—Subchapter V of chapter 7 of
this title shall apply only in a case under such chapter concerning
the liquidation of an uninsured State member bank, or a corporation
organized under section 25A of the Federal Reserve Act, which
operates, or operates as, a multilateral clearing organization pursuant to section 409 of the Federal Deposit Insurance Corporation
Improvement Act of 1991.’’.
(B) CLEARING BANK LIQUIDATION.—Chapter 7 of title
11, United States Code, is amended by adding at the end
the following new subchapter:
‘‘SUBCHAPTER V—CLEARING BANK LIQUIDATION
‘‘§ 781. Definitions
‘‘For purposes of this subchapter, the following definitions shall
apply:
‘‘(1) BOARD.—The term ‘Board’ means the Board of Governors of the Federal Reserve System.
‘‘(2) DEPOSITORY INSTITUTION.—The term ‘depository
institution’ has the same meaning as in section 3 of the Federal
Deposit Insurance Act.
‘‘(3) CLEARING BANK.—The term ‘clearing bank’ means an
uninsured State member bank, or a corporation organized
under section 25A of the Federal Reserve Act, which operates,
or operates as, a multilateral clearing organization pursuant
to section 409 of the Federal Deposit Insurance Corporation
Improvement Act of 1991.
‘‘§ 782. Selection of trustee
‘‘(a) IN GENERAL.—
‘‘(1) APPOINTMENT.—Notwithstanding any other provision
of this title, the conservator or receiver who files the petition
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–395
shall be the trustee under this chapter, unless the Board designates an alternative trustee.
‘‘(2) SUCCESSOR.—The Board may designate a successor
trustee if required.
‘‘(b) AUTHORITY OF TRUSTEE.—Whenever the Board appoints
or designates a trustee, chapter 3 and sections 704 and 705 of
this title shall apply to the Board in the same way and to the
same extent that they apply to a United States trustee.
‘‘§ 783. Additional powers of trustee
‘‘(a) DISTRIBUTION OF PROPERTY NOT OF THE ESTATE.—The
trustee under this subchapter has power to distribute property
not of the estate, including distributions to customers that are
mandated by subchapters III and IV of this chapter.
‘‘(b) DISPOSITION OF INSTITUTION.—The trustee under this subchapter may, after notice and a hearing—
‘‘(1) sell the clearing bank to a depository institution or
consortium of depository institutions (which consortium may
agree on the allocation of the clearing bank among the consortium);
‘‘(2) merge the clearing bank with a depository institution;
‘‘(3) transfer contracts to the same extent as could a receiver
for a depository institution under paragraphs (9) and (10) of
section 11(e) of the Federal Deposit Insurance Act;
‘‘(4) transfer assets or liabilities to a depository institution;
and
‘‘(5) transfer assets and liabilities to a bridge bank as
provided in paragraphs (1), (3)(A), (5), and (6) of section 11(n)
of the Federal Deposit Insurance Act, paragraphs (9) through
(13) of such section, and subparagraphs (A) through (H) and
subparagraph (K) of paragraph (4) of such section 11(n), except
that—
‘‘(A) the bridge bank to which such assets or liabilities
are transferred shall be treated as a clearing bank for
the purpose of this subsection; and
‘‘(B) any references in any such provision of law to
the Federal Deposit Insurance Corporation shall be construed to be references to the appointing agency and that
references to deposit insurance shall be omitted.
‘‘(c) CERTAIN TRANSFERS INCLUDED.—Any reference in this section to transfers of liabilities includes a ratable transfer of liabilities
within a priority class.
‘‘§ 784. Right to be heard
‘‘The Board or a Federal reserve bank (in the case of a clearing
bank that is a member of that bank) may raise and may appear
and be heard on any issue in a case under this subchapter.’’.
(6) DEFINITIONS OF CLEARING ORGANIZATION, CONTRACT
MARKET, AND RELATED DEFINITIONS.—
(A) Section 761(2) of title 11, United States Code, is
amended to read as follows:
‘‘(2) ‘clearing organization’ means a derivatives clearing
organization registered under the Act;’’.
(B) Section 761(7) of title 11, United States Code, is
amended to read as follows:
‘‘(7) ‘contract market’ means a registered entity;’’.
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(C) Section 761(8) of title 11, United States Code, is
amended to read as follows:
‘‘(8) ‘contract of sale’, ‘commodity’, ‘derivatives clearing
organization’, ‘future delivery’, ‘board of trade’, ‘registered
entity’, and ‘futures commission merchant’ have the meanings
assigned to those terms in the Act;’’.
(d) CLERICAL AMENDMENT.—The table of sections for chapter
7 of title 11, United States Code, is amended by adding at the
end the following new items:
‘‘SUBCHAPTER V—CLEARING BANK LIQUIDATION
‘‘Sec.
‘‘781.
‘‘782.
‘‘783.
‘‘784.
Definitions.
Selection of trustee.
Additional powers of trustee.
Right to be heard.’’.
(e) RESOLUTION OF EDGE ACT CORPORATIONS.—The 16th
undesignated paragraph of section 25A of the Federal Reserve
Act (12 U.S.C. 624) is amended to read as follows:
‘‘(16) APPOINTMENT OF RECEIVER OR CONSERVATOR.—
‘‘(A) IN GENERAL.—The Board may appoint a conservator or receiver for a corporation organized under the provisions of this section to the same extent and in the same
manner as the Comptroller of the Currency may appoint
a conservator or receiver for a national bank, and the
conservator or receiver for such corporation shall exercise
the same powers, functions, and duties, subject to the same
limitations, as a conservator or receiver for a national
bank.
‘‘(B) EQUIVALENT AUTHORITY.—The Board shall have
the same authority with respect to any conservator or
receiver appointed for a corporation organized under the
provisions of this section under this paragraph and any
such corporation as the Comptroller of the Currency has
with respect to a conservator or receiver of a national
bank and the national bank for which a conservator or
receiver has been appointed.
‘‘(C) TITLE 11 PETITIONS.—The Board may direct the
conservator or receiver of a corporation organized under
the provisions of this section to file a petition pursuant
to title 11, United States Code, in which case, title 11,
United States Code, shall apply to the corporation in lieu
of otherwise applicable Federal or State insolvency law.’’.
(f ) DERIVATIVES CLEARING ORGANIZATIONS.—The Commodity
Exchange Act (7 U.S.C. 1 et seq.) is amended by inserting after
section 5a, as added by section 111 of this Act, the following:
‘‘SEC. 5b. DERIVATIVES CLEARING ORGANIZATIONS.
‘‘(a) REGISTRATION REQUIREMENT.—It shall be unlawful for a
derivatives clearing organization, unless registered with the
Commission, directly or indirectly to make use of the mails or
any means or instrumentality of interstate commerce to perform
the functions of a derivatives clearing organization described in
section 1a(9) of this Act with respect to a contract of sale of a
commodity for future delivery (or option on such a contract) or
option on a commodity, in each case unless the contract or option—
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‘‘(1) is excluded from this Act by section 2(a)(1)(C)(i), 2(c),
2(d), 2(f ), or 2(g) of this Act or title IV of the Commodity
Futures Modernization Act of 2000, or exempted under section
2(h) or 4(c) of this Act; or
‘‘(2) is a security futures product cleared by a clearing
agency registered under the Securities Exchange Act of 1934.
‘‘(b) VOLUNTARY REGISTRATION.—A derivatives clearing
organization that clears agreements, contracts, or transactions
excluded from this Act by section 2(c), 2(d), 2(f ), or 2(g) of this
Act or title IV of the Commodity Futures Modernization Act of
2000, or exempted under section 2(h) or 4(c) of this Act, or other
over-the-counter derivative instruments (as defined in the Federal
Deposit Insurance Corporation Improvement Act of 1991) may register with the Commission as a derivatives clearing organization.
‘‘(c) REGISTRATION OF DERIVATIVES CLEARING ORGANIZATIONS.—
‘‘(1) APPLICATION.—A person desiring to register as a
derivatives clearing organization shall submit to the Commission an application in such form and containing such information as the Commission may require for the purpose of making
the determinations required for approval under paragraph (2).
‘‘(2) CORE PRINCIPLES.—
‘‘(A) IN GENERAL.—To be registered and to maintain
registration as a derivatives clearing organization, an
applicant shall demonstrate to the Commission that the
applicant complies with the core principles specified in
this paragraph. The applicant shall have reasonable discretion in establishing the manner in which it complies with
the core principles.
‘‘(B) FINANCIAL RESOURCES.—The applicant shall demonstrate that the applicant has adequate financial, operational, and managerial resources to discharge the responsibilities of a derivatives clearing organization.
‘‘(C) PARTICIPANT AND PRODUCT ELIGIBILITY.—The
applicant shall establish—
‘‘(i) appropriate admission and continuing eligibility standards (including appropriate minimum financial requirements) for members of and participants
in the organization; and
‘‘(ii) appropriate standards for determining eligibility of agreements, contracts, or transactions submitted to the applicant.
‘‘(D) RISK MANAGEMENT.—The applicant shall have the
ability to manage the risks associated with discharging
the responsibilities of a derivatives clearing organization
through the use of appropriate tools and procedures.
‘‘(E) SETTLEMENT PROCEDURES.—The applicant shall
have the ability to—
‘‘(i) complete settlements on a timely basis under
varying circumstances;
‘‘(ii) maintain an adequate record of the flow of
funds associated with each transaction that the
applicant clears; and
‘‘(iii) comply with the terms and conditions of any
permitted netting or offset arrangements with other
clearing organizations.
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114 STAT. 2763A–398
PUBLIC LAW 106–554—APPENDIX E
‘‘(F) TREATMENT OF FUNDS.—The applicant shall have
standards and procedures designed to protect and ensure
the safety of member and participant funds.
‘‘(G) DEFAULT RULES AND PROCEDURES.—The applicant
shall have rules and procedures designed to allow for efficient, fair, and safe management of events when members
or participants become insolvent or otherwise default on
their obligations to the derivatives clearing organization.
‘‘(H) RULE ENFORCEMENT.—The applicant shall—
‘‘(i) maintain adequate arrangements and
resources for the effective monitoring and enforcement
of compliance with rules of the applicant and for resolution of disputes; and
‘‘(ii) have the authority and ability to discipline,
limit, suspend, or terminate a member’s or participant’s activities for violations of rules of the applicant.
‘‘(I) SYSTEM SAFEGUARDS.—The applicant shall demonstrate that the applicant—
‘‘(i) has established and will maintain a program
of oversight and risk analysis to ensure that the automated systems of the applicant function properly and
have adequate capacity and security; and
‘‘(ii) has established and will maintain emergency
procedures and a plan for disaster recovery, and will
periodically test backup facilities sufficient to ensure
daily processing, clearing, and settlement of transactions.
‘‘(J) REPORTING.—The applicant shall provide to the
Commission all information necessary for the Commission
to conduct the oversight function of the applicant with
respect to the activities of the derivatives clearing organization.
‘‘(K) RECORDKEEPING.—The applicant shall maintain
records of all activities related to the business of the
applicant as a derivatives clearing organization in a form
and manner acceptable to the Commission for a period
of 5 years.
‘‘(L) PUBLIC INFORMATION.—The applicant shall make
information concerning the rules and operating procedures
governing the clearing and settlement systems (including
default procedures) available to market participants.
‘‘(M) INFORMATION-SHARING.—The applicant shall—
‘‘(i) enter into and abide by the terms of all appropriate and applicable domestic and international
information-sharing agreements; and
‘‘(ii) use relevant information obtained from the
agreements in carrying out the clearing organization’s
risk management program.
‘‘(N) ANTITRUST CONSIDERATIONS.—Unless appropriate
to achieve the purposes of this Act, the derivatives clearing
organization shall avoid—
‘‘(i) adopting any rule or taking any action that
results in any unreasonable restraint of trade; or
‘‘(ii) imposing any material anticompetitive burden
on trading on the contract market.
‘‘(3) ORDERS CONCERNING COMPETITION.—A derivatives
clearing organization may request the Commission to issue
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114 STAT. 2763A–399
an order concerning whether a rule or practice of the applicant
is the least anticompetitive means of achieving the objectives,
purposes, and policies of this Act.
‘‘(d) EXISTING DERIVATIVES CLEARING ORGANIZATIONS.—A
derivatives clearing organization shall be deemed to be registered
under this section to the extent that the derivatives clearing
organization clears agreements, contracts, or transactions for a
board of trade that has been designated by the Commission as
a contract market for such agreements, contracts, or transactions
before the date of the enactment of this section.
‘‘(e) APPOINTMENT OF TRUSTEE.—
‘‘(1) IN GENERAL.—If a proceeding under section 5e results
in the suspension or revocation of the registration of a derivatives clearing organization, or if a derivatives clearing organization withdraws from registration, the Commission, on notice
to the derivatives clearing organization, may apply to the appropriate United States district court where the derivatives clearing organization is located for the appointment of a trustee.
‘‘(2) ASSUMPTION OF JURISDICTION.—If the Commission
applies for appointment of a trustee under paragraph (1)—
‘‘(A) the court may take exclusive jurisdiction over
the derivatives clearing organization and the records and
assets of the derivatives clearing organization, wherever
located; and
‘‘(B) if the court takes jurisdiction under subparagraph
(A), the court shall appoint the Commission, or a person
designated by the Commission, as trustee with power to
take possession and continue to operate or terminate the
operations of the derivatives clearing organization in an
orderly manner for the protection of participants, subject
to such terms and conditions as the court may prescribe.
‘‘(f ) LINKING OF REGULATED CLEARING FACILITIES.—
‘‘(1) IN GENERAL.—The Commission shall facilitate the linking or coordination of derivatives clearing organizations registered under this Act with other regulated clearance facilities
for the coordinated settlement of cleared transactions.
‘‘(2) COORDINATION.—In carrying out paragraph (1), the
Commission shall coordinate with the Federal banking agencies
and the Securities and Exchange Commission.’’.
SEC. 113. COMMON PROVISIONS APPLICABLE TO REGISTERED ENTITIES.
The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended
by inserting after section 5b (as added by section 112(f )) the following:
‘‘SEC. 5c. COMMON PROVISIONS APPLICABLE TO REGISTERED ENTITIES.
‘‘(a) ACCEPTABLE BUSINESS PRACTICES UNDER CORE PRINCIPLES.—
‘‘(1) IN GENERAL.—Consistent with the purposes of this
Act, the Commission may issue interpretations, or approve
interpretations submitted to the Commission, of sections 5(d),
5a(d), and 5b(d)(2) to describe what would constitute an acceptable business practice under such sections.
‘‘(2) EFFECT OF INTERPRETATION.—An interpretation issued
under paragraph (1) shall not provide the exclusive means
for complying with such sections.
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‘‘(b) DELEGATION OF FUNCTIONS UNDER CORE PRINCIPLES.—
‘‘(1) IN GENERAL.—A contract market or derivatives transaction execution facility may comply with any applicable core
principle through delegation of any relevant function to a registered futures association or another registered entity.
‘‘(2) RESPONSIBILITY.—A contract market or derivatives
transaction execution facility that delegates a function under
paragraph (1) shall remain responsible for carrying out the
function.
‘‘(3) NONCOMPLIANCE.—If a contract market or derivatives
transaction execution facility that delegates a function under
paragraph (1) becomes aware that a delegated function is not
being performed as required under this Act, the contract market
or derivatives transaction execution facility shall promptly take
steps to address the noncompliance.
‘‘(c) NEW CONTRACTS, NEW RULES, AND RULE AMENDMENTS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), a registered
entity may elect to list for trading or accept for clearing any
new contract or other instrument, or may elect to approve
and implement any new rule or rule amendment, by providing
to the Commission (and the Secretary of the Treasury, in the
case of a contract of sale of a government security for future
delivery (or option on such a contract) or a rule or rule amendment specifically related to such a contract) a written certification that the new contract or instrument or clearing of the
new contract or instrument, new rule, or rule amendment complies with this Act (including regulations under this Act).
‘‘(2) PRIOR APPROVAL.—
‘‘(A) IN GENERAL.—A registered entity may request that
the Commission grant prior approval to any new contract
or other instrument, new rule, or rule amendment.
‘‘(B) PRIOR APPROVAL REQUIRED.—Notwithstanding any
other provision of this section, a designated contract market
shall submit to the Commission for prior approval each
rule amendment that materially changes the terms and
conditions, as determined by the Commission, in any contract of sale for future delivery of a commodity specifically
enumerated in section 1a(4) (or any option thereon) traded
through its facilities if the rule amendment applies to
contracts and delivery months which have already been
listed for trading and have open interest.
‘‘(C) DEADLINE.—If prior approval is requested under
subparagraph (A), the Commission shall take final action
on the request not later than 90 days after submission
of the request, unless the person submitting the request
agrees to an extension of the time limitation established
under this subparagraph.
‘‘(3) APPROVAL.—The Commission shall approve any such
new contract or instrument, new rule, or rule amendment
unless the Commission finds that the new contract or
instrument, new rule, or rule amendment would violate this
Act.
‘‘(d) VIOLATION OF CORE PRINCIPLES.—
‘‘(1) IN GENERAL.—If the Commission determines, on the
basis of substantial evidence, that a registered entity is violating any applicable core principle specified in section 5(d), 5a(d),
or 5b(d)(2), the Commission shall—
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‘‘(A) notify the registered entity in writing of the determination; and
‘‘(B) afford the registered entity an opportunity to make
appropriate changes to bring the registered entity into
compliance with the core principles.
‘‘(2) FAILURE TO MAKE CHANGES.—If, not later than 30
days after receiving a notification under paragraph (1), a registered entity fails to make changes that, in the opinion of
the Commission, are necessary to comply with the core principles, the Commission may take further action in accordance
with this Act.
‘‘(e) RESERVATION OF EMERGENCY AUTHORITY.—Nothing in this
section shall limit or in any way affect the emergency powers
of the Commission provided in section 8a(9).’’.
SEC. 114. EXEMPT BOARDS OF TRADE.
The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended
by inserting after section 5c (as added by section 113) the following:
‘‘SEC. 5d. EXEMPT BOARDS OF TRADE.
‘‘(a) ELECTION TO REGISTER WITH THE COMMISSION.—A board
of trade that meets the requirements of subsection (b) of this
section may operate as an exempt board of trade on receipt from
the board of trade of a notice, provided in such manner as the
Commission may by rule or regulation prescribe, that the board
of trade elects to operate as an exempt board of trade. Except
as otherwise provided in this section, no provision of this Act
(other than subparagraphs (C) and (D) of sections 2(a)(1) and
12(e)(2)(B)) shall apply with respect to a contract of sale of a
commodity for future delivery (or option on such a contract) traded
on or through the facilities of an exempt board of trade.
‘‘(b) CRITERIA FOR EXEMPTION.—To qualify for an exemption
under subsection (a), a board of trade shall limit trading on or
through the facilities of the board of trade to contracts of sale
of a commodity for future delivery (or options on such contracts
or on a commodity)—
‘‘(1) for which the underlying commodity has—
‘‘(A) a nearly inexhaustible deliverable supply;
‘‘(B) a deliverable supply that is sufficiently large, and
a cash market sufficiently liquid, to render any contract
traded on the commodity highly unlikely to be susceptible
to the threat of manipulation; or
‘‘(C) no cash market;
‘‘(2) that are entered into only between persons that are
eligible contract participants at the time at which the persons
enter into the contract; and
‘‘(3) that are not contracts of sale (or options on such
a contract or on a commodity) for future delivery of any security,
including any group or index of securities or any interest in,
or based on the value of, any security or any group or index
of securities.
‘‘(c) ANTIMANIPULATION REQUIREMENTS.—A party to a contract
of sale of a commodity for future delivery (or option on such a
contract or on a commodity) that is traded on an exempt board
of trade shall be subject to sections 4b, 4c(b), 4o, 6(c), and 9(a)(2),
and the Commission shall enforce those provisions with respect
to any such trading.
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‘‘(d) PRICE DISCOVERY.—If the Commission finds that an exempt
board of trade is a significant source of price discovery for transactions in the cash market for the commodity underlying any contract, agreement, or transaction traded on or through the facilities
of the board of trade, the board of trade shall disseminate publicly
on a daily basis trading volume, opening and closing price ranges,
open interest, and other trading data as appropriate to the market.
‘‘(e) JURISDICTION.—The Commission shall have exclusive jurisdiction over any account, agreement, contract, or transaction involving a contract of sale of a commodity for future delivery, or option
on such a contract or on a commodity, to the extent that the
account, agreement, contract, or transaction is traded on an exempt
board of trade.
‘‘(f ) SUBSIDIARIES.—A board of trade that is designated as a
contract market or registered as a derivatives transaction execution
facility may operate an exempt board of trade by establishing a
separate subsidiary or other legal entity and otherwise satisfying
the requirements of this section.
‘‘(g) An exempt board of trade that meets the requirements
of subsection (b) shall not represent to any person that the board
of trade is registered with, or designated, recognized, licensed,
or approved by the Commission.’’.
SEC. 115. SUSPENSION OR REVOCATION OF DESIGNATION AS CONTRACT MARKET.
Section 5e of the Commodity Exchange Act (7 U.S.C. 7b) (as
redesignated by section 20(1)) is amended to read as follows:
‘‘SEC. 5e. SUSPENSION OR REVOCATION OF DESIGNATION AS REGISTERED ENTITY.
‘‘The failure of a registered entity to comply with any provision
of this Act, or any regulation or order of the Commission under
this Act, shall be cause for the suspension of the registered entity
for a period not to exceed 180 days, or revocation of designation
as a registered entity in accordance with the procedures and subject
to the judicial review provided in section 6(b).’’.
SEC. 116. AUTHORIZATION OF APPROPRIATIONS.
Section 12(d) of the Commodity Exchange Act (7 U.S.C. 16(d))
is amended by striking ‘‘2000’’ and inserting ‘‘2005’’.
SEC. 117. PREEMPTION.
Section 12 of the Commodity Exchange Act (7 U.S.C. 16(e))
is amended by striking subsection (e) and inserting the following:
‘‘(e) RELATION TO OTHER LAW, DEPARTMENTS, OR AGENCIES.—
‘‘(1) Nothing in this Act shall supersede or preempt—
‘‘(A) criminal prosecution under any Federal criminal
statute;
‘‘(B) the application of any Federal or State statute
(except as provided in paragraph (2)), including any rule
or regulation thereunder, to any transaction in or involving
any commodity, product, right, service, or interest—
‘‘(i) that is not conducted on or subject to the
rules of a registered entity or exempt board of trade;
‘‘(ii) (except as otherwise specified by the Commission by rule or regulation) that is not conducted on
or subject to the rules of any board of trade, exchange,
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114 STAT. 2763A–403
or market located outside the United States, its territories or possessions; or
‘‘(iii) that is not subject to regulation by the
Commission under section 4c or 19; or
‘‘(C) the application of any Federal or State statute,
including any rule or regulation thereunder, to any person
required to be registered or designated under this Act
who shall fail or refuse to obtain such registration or designation.
‘‘(2) This Act shall supersede and preempt the application
of any State or local law that prohibits or regulates gaming
or the operation of bucket shops (other than antifraud provisions of general applicability) in the case of—
‘‘(A) an electronic trading facility excluded under section 2(e) of this Act; and
‘‘(B) an agreement, contract, or transaction that is
excluded from this Act under section 2(c), 2(d), 2(f ), or
2(g) of this Act or title IV of the Commodity Futures
Modernization Act of 2000, or exempted under section 2(h)
or 4(c) of this Act (regardless of whether any such agreement, contract, or transaction is otherwise subject to this
Act).’’.
SEC. 118. PREDISPUTE RESOLUTION AGREEMENTS FOR INSTITUTIONAL CUSTOMERS.
Section 14 of the Commodity Exchange Act (7 U.S.C. 18) is
amended by striking subsection (g) and inserting the following:
‘‘(g) PREDISPUTE RESOLUTION AGREEMENTS FOR INSTITUTIONAL
CUSTOMERS.—Nothing in this section prohibits a registered futures
commission merchant from requiring a customer that is an eligible
contract participant, as a condition to the commission merchant’s
conducting a transaction for the customer, to enter into an agreement waiving the right to file a claim under this section.’’.
SEC. 119. CONSIDERATION OF COSTS AND BENEFITS AND ANTITRUST
LAWS.
Section 15 of the Commodity Exchange Act (7 U.S.C. 19) is
amended by striking ‘‘SEC. 15. The Commission’’ and inserting
the following:
‘‘SEC. 15. CONSIDERATION OF COSTS AND BENEFITS AND ANTITRUST
LAWS.
‘‘(a) COSTS AND BENEFITS.—
‘‘(1) IN GENERAL.—Before promulgating a regulation under
this Act or issuing an order (except as provided in paragraph
(3)), the Commission shall consider the costs and benefits of
the action of the Commission.
‘‘(2) CONSIDERATIONS.—The costs and benefits of the proposed Commission action shall be evaluated in light of—
‘‘(A) considerations of protection of market participants
and the public;
‘‘(B) considerations of the efficiency, competitiveness,
and financial integrity of futures markets;
‘‘(C) considerations of price discovery;
‘‘(D) considerations of sound risk management practices; and
‘‘(E) other public interest considerations.
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114 STAT. 2763A–404
PUBLIC LAW 106–554—APPENDIX E
‘‘(3) APPLICABILITY.—This subsection does not apply to the
following actions of the Commission:
‘‘(A) An order that initiates, is part of, or is the result
of an adjudicatory or investigative process of the Commission.
‘‘(B) An emergency action.
‘‘(C) A finding of fact regarding compliance with a
requirement of the Commission.
‘‘(b) ANTITRUST LAWS.—The Commission’’.
SEC.
120.
CONTRACT
ENFORCEMENT
COUNTERPARTIES.
BETWEEN
ELIGIBLE
Section 22(a) of the Commodity Exchange Act (7 U.S.C. 25(a))
is amended by adding at the end the following:
ENFORCEMENT
BETWEEN
ELIGIBLE
‘‘(4)
CONTRACT
COUNTERPARTIES.—No agreement, contract, or transaction
between eligible contract participants or persons reasonably
believed to be eligible contract participants, and no hybrid
instrument sold to any investor, shall be void, voidable, or
unenforceable, and no such party shall be entitled to rescind,
or recover any payment made with respect to, such an agreement, contract, transaction, or instrument under this section
or any other provision of Federal or State law, based solely
on the failure of the agreement, contract, transaction, or
instrument to comply with the terms or conditions of an exemption or exclusion from any provision of this Act or regulations
of the Commission.’’.
SEC. 121. SPECIAL PROCEDURES TO ENCOURAGE AND FACILITATE
BONA FIDE HEDGING BY AGRICULTURAL PRODUCERS.
The Commodity Exchange Act, as otherwise amended by this
Act, is amended by inserting after section 4o the following:
‘‘SEC. 4p. SPECIAL PROCEDURES TO ENCOURAGE AND FACILITATE
BONA FIDE HEDGING BY AGRICULTURAL PRODUCERS.
‘‘(a) AUTHORITY.—The Commission shall consider issuing rules
or orders which—
‘‘(1) prescribe procedures under which each contract market
is to provide for orderly delivery, including temporary storage
costs, of any agricultural commodity enumerated in section
1a(4) which is the subject of a contract for purchase or sale
for future delivery;
‘‘(2) increase the ease with which domestic agricultural
producers may participate in contract markets, including by
addressing cost and margin requirements, so as to better enable
the producers to hedge price risk associated with their production;
‘‘(3) provide flexibility in the minimum quantities of such
agricultural commodities that may be the subject of a contract
for purchase or sale for future delivery that is traded on a
contract market, to better allow domestic agricultural producers
to hedge such price risk; and
‘‘(4) encourage contract markets to provide information and
otherwise facilitate the participation of domestic agricultural
producers in contract markets.
‘‘(b) REPORT.—Within 1 year after the date of the enactment
of this section, the Commission shall submit to the Committee
on Agriculture of the House of Representatives and the Committee
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–405
on Agriculture, Nutrition, and Forestry of the Senate a report
on the steps it has taken to implement this section and on the
activities of contract markets pursuant to this section.’’.
SEC. 122. RULE OF CONSTRUCTION.
Except as expressly provided in this Act or an amendment
made by this Act, nothing in this Act or an amendment made
by this Act supersedes, affects, or otherwise limits or expands
the scope and applicability of laws governing the Securities and
Exchange Commission.
SEC. 123. TECHNICAL AND CONFORMING AMENDMENTS.
(a) COMMODITY EXCHANGE ACT.—
(1) Section 1a of the Commodity Exchange Act (7 U.S.C.
1a) (as amended by section 101) is amended—
(A) in paragraphs (5), (6), (16), (17), (20), and (23),
by inserting ‘‘or derivatives transaction execution facility’’
after ‘‘contract market’’ each place it appears; and
(B) in paragraph (24)—
(i) in the paragraph heading, by striking ‘‘CONTRACT MARKET’’ and inserting ‘‘REGISTERED ENTITY’’;
(ii) by striking ‘‘contract market’’ each place it
appears and inserting ‘‘registered entity’’; and
(iii) by adding at the end the following:
‘‘A participant in an alternative trading system that is designated as a contract market pursuant to section 5f is deemed
a member of the contract market for purposes of transactions
in security futures products through the contract market.’’.
(2) Section 2 of the Commodity Exchange Act (7 U.S.C.
2, 2a, 4, 4a, 3) is amended—
(A) by striking ‘‘SEC. 2. (a)(1)(A)(i) The’’ and inserting
the following:
‘‘SEC. 2. JURISDICTION OF COMMISSION; LIABILITY OF PRINCIPAL FOR
ACT OF AGENT; COMMODITY FUTURES TRADING COMMISSION; TRANSACTION IN INTERSTATE COMMERCE.
ING
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‘‘(a) JURISDICTION OF COMMISSION; COMMODITY FUTURES TRADCOMMISSION.—
‘‘(1) JURISDICTION OF COMMISSION.—
‘‘(A) IN GENERAL.—The’’; and
(B) in subsection (a)(1)—
(i) in subparagraph (A) (as amended by subparagraph (A) of this paragraph)—
(I) by striking ‘‘subparagraph (B) of this
subparagraph’’ and inserting ‘‘subparagraphs (C)
and (D) of this paragraph and subsections (c)
through (i) of this section’’;
(II) by striking ‘‘contract market designated
pursuant to section 5 of this Act’’ and inserting
‘‘contract market designated or derivatives transaction execution facility registered pursuant to section 5 or 5a’’;
(III) by striking clause (ii); and
(IV) in clause (iii), by striking ‘‘(iii) The’’ and
inserting the following:
‘‘(B) LIABILITY OF PRINCIPAL FOR ACT OF AGENT.—The’’;
and
(ii) in subparagraph (B)—
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114 STAT. 2763A–406
PUBLIC LAW 106–554—APPENDIX E
(I) by striking ‘‘(B)’’ and inserting ‘‘(C)’’;
(II) in clause (v)—
(aa) by striking ‘‘section 3 of the Securities
Act of 1933’’; and
(bb) by inserting ‘‘or subparagraph (D)’’
after ‘‘subparagraph’’; and
(III) by moving clauses (i) through (v) 4 ems
to the right;
(C) in subsection (a)(7), by striking ‘‘contract market’’
and inserting ‘‘registered entity’’;
(D) in subsection (a)(8)(B)(ii)—
(i) in the first sentence, by striking ‘‘designation
as a contract market’’ and inserting ‘‘designation or
registration as a contract market or derivatives transaction execution facility’’;
(ii) in the second sentence, by striking ‘‘designate
a board of trade as a contract market’’ and inserting
‘‘designate or register a board of trade as a contract
market or derivatives transaction execution facility’’;
and
(iii) in the fourth sentence, by striking ‘‘designating, or refusing, suspending, or revoking the designation of, a board of trade as a contract market involving
transactions for future delivery referred to in this
clause or in considering possible emergency action
under section 8a(9) of this Act’’ and inserting ‘‘designating, registering, or refusing, suspending, or revoking
the designation or registration of, a board of trade
as a contract market or derivatives transaction execution facility involving transactions for future delivery
referred to in this clause or in considering any possible
action under this Act (including without limitation
emergency action under section 8a(9))’’, and by striking
‘‘designation, suspension, revocation, or emergency
action’’ and inserting ‘‘designation, registration,
suspension, revocation, or action’’; and
(E) in subsection (a), by moving paragraphs (2) through
(9) 2 ems to the right.
(3) Section 4 of the Commodity Exchange Act (7 U.S.C.
6) is amended—
(A) in subsection (a)—
(i) in paragraph (1), by striking ‘‘designated by
the Commission as a ‘contract market’ for’’ and inserting ‘‘designated or registered by the Commission as
a contract market or derivatives transaction execution
facility for’’;
(ii) in paragraph (2), by striking ‘‘member of such’’;
and
(iii) in paragraph (3), by inserting ‘‘or derivatives
transaction execution facility’’ after ‘‘contract market’’;
and
(B) in subsection (c)—
(i) in paragraph (1)—
(I) by striking ‘‘designated as a contract market’’ and inserting ‘‘designated or registered as
a contract market or derivatives transaction execution facility’’; and
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–407
(II) by striking ‘‘section 2(a)(1)(B)’’ and inserting ‘‘subparagraphs (C)(ii) and (D) of section
2(a)(1), except that the Commission and the Securities and Exchange Commission may by rule, regulation, or order jointly exclude any agreement, contract, or transaction from section 2(a)(1)(D)’’; and
(ii) in paragraph (2)(B)(ii), by inserting ‘‘or derivatives transaction execution facility’’ after ‘‘contract market’’.
(4) Section 4a of the Commodity Exchange Act (7 U.S.C.
6a) is amended—
(A) in subsection (a)—
(i) in the first sentence, by inserting ‘‘or derivatives
transaction execution facilities’’ after ‘‘contract markets’’; and
(ii) in the second sentence, by inserting ‘‘or derivatives transaction execution facility’’ after ‘‘contract market’’;
(B) in subsection (b)—
(i) in paragraph (1), by inserting ‘‘, or derivatives
transaction execution facility or facilities,’’ after ‘‘markets’’; and
(ii) in paragraph (2), by inserting ‘‘or derivatives
transaction execution facility’’ after ‘‘contract market’’;
and
(C) in subsection (e)—
(i) by striking ‘‘contract market or’’ each place it
appears and inserting ‘‘contract market, derivatives
transaction execution facility, or’’;
(ii) by striking ‘‘licensed or designated’’ each place
it appears and inserting ‘‘licensed, designated, or registered’’; and
(iii) by striking ‘‘contract market, or’’ and inserting
‘‘contract market or derivatives transaction execution
facility, or’’.
(5) Section 4b(a) of the Commodity Exchange Act (7 U.S.C.
6b(a)) is amended by striking ‘‘contract market’’ each place
it appears and inserting ‘‘registered entity’’.
(6) Sections 4c(g), 4d, 4e, and 4f of the Commodity
Exchange Act (7 U.S.C. 6c(g), 6d, 6e, 6f ) are amended by
inserting ‘‘or derivatives transaction execution facility’’ after
‘‘contract market’’ each place it appears.
(7) Section 4g of the Commodity Exchange Act (7 U.S.C.
6g) is amended—
(A) in subsection (b), by striking ‘‘clearinghouse and
contract market’’ and inserting ‘‘registered entity’’; and
(B) in subsection (f ), by striking ‘‘clearinghouses, contract markets, and exchanges’’ and inserting ‘‘registered
entities’’.
(8) Section 4h of the Commodity Exchange Act (7 U.S.C.
6h) is amended by striking ‘‘contract market’’ each place it
appears and inserting ‘‘registered entity’’.
(9) Section 4i of the Commodity Exchange Act (7 U.S.C.
6i) is amended in the first sentence by inserting ‘‘or derivatives
transaction execution facility’’ after ‘‘contract market’’.
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114 STAT. 2763A–408
PUBLIC LAW 106–554—APPENDIX E
(10) Section 4l of the Commodity Exchange Act (7 U.S.C.
6l) is amended by inserting ‘‘or derivatives transaction execution facilities’’ after ‘‘contract markets’’ each place it appears.
(11) Section 4p of the Commodity Exchange Act (7 U.S.C.
6p) is amended—
(A) in the third sentence of subsection (a), by striking
‘‘Act or contract markets’’ and inserting ‘‘Act, contract markets, or derivatives transaction execution facilities’’; and
(B) in subsection (b), by inserting ‘‘derivatives transaction execution facility,’’ after ‘‘contract market,’’.
(12) Section 6 of the Commodity Exchange Act (7 U.S.C.
8, 9, 9a, 9b, 13b, 15) is amended—
(A) in subsection (a)—
(i) in the first sentence—
(I) by striking ‘‘board of trade desiring to be
designated a ‘contract market’ shall make application to the Commission for such designation’’ and
inserting ‘‘person desiring to be designated or registered as a contract market or derivatives transaction execution facility shall make application to
the Commission for the designation or registration’’;
(II) by striking ‘‘above conditions’’ and inserting ‘‘conditions set forth in this Act’’; and
(III) by striking ‘‘above requirements’’ and
inserting ‘‘the requirements of this Act’’;
(ii) in the second sentence, by striking ‘‘designation
as a contract market within one year’’ and inserting
‘‘designation or registration as a contract market or
derivatives transaction execution facility within 180
days’’;
(iii) in the third sentence—
(I) by striking ‘‘board of trade’’ and inserting
‘‘person’’; and
(II) by striking ‘‘one-year period’’ and inserting
‘‘180-day period’’; and
(iv) in the last sentence, by striking ‘‘designate
as a ‘contract market’ any board of trade that has
made application therefor, such board of trade’’ and
inserting ‘‘designate or register as a contract market
or derivatives transaction execution facility any person
that has made application therefor, the person’’;
(B) in subsection (b)—
(i) in the first sentence—
(I) by striking ‘‘designation of any board of
trade as a ‘contract market’ upon’’ and inserting
‘‘designation or registration of any contract market
or derivatives transaction execution facility on’’;
(II) by striking ‘‘board of trade’’ each place
it appears and inserting ‘‘contract market or
derivatives transaction execution facility’’; and
(III) by striking ‘‘designation as set forth in
section 5 of this Act’’ and inserting ‘‘designation
or registration as set forth in sections 5 through
5b or section 5f’’;
(ii) in the second sentence—
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–409
(I) by striking ‘‘board of trade’’ the first place
it appears and inserting ‘‘contract market or
derivatives transaction execution facility’’; and
(II) by striking ‘‘board of trade’’ the second
and third places it appears and inserting ‘‘person’’;
and
(iii) in the last sentence, by striking ‘‘board of
trade’’ each place it appears and inserting ‘‘person’’;
(C) in subsection (c)—
(i) by striking ‘‘contract market’’ each place it
appears and inserting ‘‘registered entity’’;
(ii) by striking ‘‘contract markets’’ each place it
appears and inserting ‘‘registered entities’’; and
(iii) by striking ‘‘trading privileges’’ each place it
appears and inserting ‘‘privileges’’;
(D) in subsection (d), by striking ‘‘contract market’’
each place it appears and inserting ‘‘registered entity’’;
and
(E) in subsection (e), by striking ‘‘trading on all contract
markets’’ each place it appears and inserting ‘‘the privileges
of all registered entities’’.
(13) Section 6a of the Commodity Exchange Act (7 U.S.C.
10a) is amended—
(A) in the first sentence of subsection (a), by striking
‘‘designated as a ‘contract market’ shall’’ and inserting ‘‘designated or registered as a contract market or a derivatives
transaction execution facility’’; and
(B) in subsection (b), by striking ‘‘designated as a contract market’’ and inserting ‘‘designated or registered as
a contract market or a derivatives transaction execution
facility’’.
(14) Section 6b of the Commodity Exchange Act (7 U.S.C.
13a) is amended—
(A) by striking ‘‘contract market’’ each place it appears
and inserting ‘‘registered entity’’;
(B) in the first sentence, by striking ‘‘designation as
set forth in section 5 of this Act’’ and inserting ‘‘designation
or registration as set forth in sections 5 through 5c’’; and
(C) in the last sentence, by striking ‘‘the contract market’s ability’’ and inserting ‘‘the ability of the registered
entity’’.
(15) Section 6c(a) of the Commodity Exchange Act (7 U.S.C.
13a–1(a)) by striking ‘‘contract market’’ and inserting ‘‘registered entity’’.
(16) Section 6d(1) of the Commodity Exchange Act (7 U.S.C.
13a–2(1)) is amended by inserting ‘‘derivatives transaction
execution facility,’’ after ‘‘contract market,’’.
(17) Section 7 of the Commodity Exchange Act (7 U.S.C.
11) is amended—
(A) in the first sentence—
(i) by striking ‘‘board of trade’’ and inserting ‘‘person’’;
(ii) by inserting ‘‘or registered’’ after ‘‘designated’’;
(iii) by inserting ‘‘or registration’’ after ‘‘designation’’ each place it appears; and
(iv) by striking ‘‘contract market’’ each place it
appears and inserting ‘‘registered entity’’;
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114 STAT. 2763A–410
PUBLIC LAW 106–554—APPENDIX E
(B) in the second sentence—
(i) by striking ‘‘designation of such board of trade
as a contract market’’ and inserting ‘‘designation or
registration of the registered entity’’; and
(ii) by striking ‘‘contract markets’’ and inserting
‘‘registered entities’’; and
(C) in the last sentence—
(i) by striking ‘‘board of trade’’ and inserting ‘‘person’’; and
(ii) by striking ‘‘designated again a contract market’’ and inserting ‘‘designated or registered again a
registered entity’’.
(18) Section 8(c) of the Commodity Exchange Act (7 U.S.C.
12(c)) is amended in the first sentence by striking ‘‘board of
trade’’ and inserting ‘‘registered entity’’.
(19) Section 8a of the Commodity Exchange Act (7 U.S.C.
12a) is amended—
(A) by striking ‘‘contract market’’ each place it appears
and inserting ‘‘registered entity’’; and
(B) in paragraph (2)(F), by striking ‘‘trading privileges’’
and inserting ‘‘privileges’’.
(20) Sections 8b and 8c(e) of the Commodity Exchange
Act (7 U.S.C. 12b, 12c(e)) are amended by striking ‘‘contract
market’’ each place it appears and inserting ‘‘registered entity’’.
(21) Section 8e of the Commodity Exchange Act (7 U.S.C.
12e) is repealed.
(22) Section 9 of the Commodity Exchange Act (7 U.S.C.
13) is amended by striking ‘‘contract market’’ each place it
appears and inserting ‘‘registered entity’’.
(23) Section 14 of the Commodity Exchange Act (7 U.S.C.
18) is amended—
(A) in subsection (a)(1)(B), by striking ‘‘contract market’’ and inserting ‘‘registered entity’’; and
(B) in subsection (f ), by striking ‘‘contract markets’’
and inserting ‘‘registered entities’’.
(24) Section 17 of the Commodity Exchange Act (7 U.S.C.
21) is amended by striking ‘‘contract market’’ each place it
appears and inserting ‘‘registered entity’’.
(25) Section 22 of the Commodity Exchange Act (7 U.S.C.
25) is amended—
(A) in subsection (a)—
(i) in paragraph (1)—
(I) by striking ‘‘contract market, clearing
organization of a contract market, licensed board
of trade,’’ and inserting ‘‘registered entity’’; and
(II) in subparagraph (C)(i), by striking ‘‘contract market’’ and inserting ‘‘registered entity’’;
(ii) in paragraph (2), by striking ‘‘sections 5a(11),’’
and inserting ‘‘sections 5(d)(13), 5b(b)(1)(E),’’; and
(iii) in paragraph (3), by striking ‘‘contract market’’
and inserting ‘‘registered entity’’; and
(B) in subsection (b)—
(i) in paragraph (1)—
(I) by striking ‘‘contract market or clearing
organization of a contract market’’ and inserting
‘‘registered entity’’;
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–411
(II) by striking ‘‘section 5a(8) and section 5a(9)
of this Act’’ and inserting ‘‘sections 5 through 5c’’;
(III) by striking ‘‘contract market, clearing
organization of a contract market, or licensed
board of trade’’ and inserting ‘‘registered entity’’;
and
(IV) by striking ‘‘contract market or licensed
board of trade’’ and inserting ‘‘registered entity’’;
(ii) in paragraph (3)—
(I) by striking ‘‘a contract market, clearing
organization, licensed board of trade,’’ and inserting ‘‘registered entity’’; and
(II) by striking ‘‘contract market, licensed
board of trade’’ and inserting ‘‘registered entity’’;
(iii) in paragraph (4), by striking ‘‘contract market,
licensed board of trade, clearing organization,’’ and
inserting ‘‘registered entity’’; and
(iv) in paragraph (5), by striking ‘‘contract market,
licensed board of trade, clearing organization,’’ and
inserting ‘‘registered entity’’.
(b) FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT
ACT OF 1991.—Section 402(2) of the Federal Deposit Insurance
Corporation Improvement Act of 1991 (12 U.S.C. 4402(2)) is amended by striking subparagraph (B) and inserting the following:
‘‘(B) that is registered as a derivatives clearing
organization under section 5b of the Commodity Exchange
Act.’’.
SEC. 124. PRIVACY.
The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended
by inserting after section 5f (as added by section 252) the following:
‘‘SEC. 5g. PRIVACY.
‘‘(a) TREATMENT AS FINANCIAL INSTITUTIONS.—Notwithstanding
section 509(3)(B) of the Gramm-Leach-Bliley Act, any futures
commission merchant, commodity trading advisor, commodity pool
operator, or introducing broker that is subject to the jurisdiction
of the Commission under this Act with respect to any financial
activity shall be treated as a financial institution for purposes
of title V of such Act with respect to such financial activity.
‘‘(b) TREATMENT OF CFTC AS FEDERAL FUNCTIONAL REGULATOR.—For purposes of title V of such Act, the Commission shall
be treated as a Federal functional regulator within the meaning
of section 509(2) of such Act and shall prescribe regulations under
such title within 6 months after the date of the enactment of
this section.’’.
SEC. 125. REPORT TO CONGRESS.
(a) The Commodity Futures Trading Commission (in this section referred to as the ‘‘Commission’’) shall undertake and complete
a study of the Commodity Exchange Act (in this section referred
to as ‘‘the Act’’) and the Commission’s rules, regulations and orders
governing the conduct of persons required to be registered under
the Act, not later than 1 year after the date of the enactment
of this Act. The study shall identify—
(1) the core principles and interpretations of acceptable
business practices that the Commission has adopted or intends
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114 STAT. 2763A–412
PUBLIC LAW 106–554—APPENDIX E
to adopt to replace the provisions of the Act and the Commission’s rules and regulations thereunder;
(2) the rules and regulations that the Commission has
determined must be retained and the reasons therefor;
(3) the extent to which the Commission believes it can
effect the changes identified in paragraph (1) of this subsection
through its exemptive authority under section 4(c) of the Act;
and
(4) the regulatory functions the Commission currently performs that can be delegated to a registered futures association
(within the meaning of the Act) and the regulatory functions
that the Commission has determined must be retained and
the reasons therefor.
(b) In conducting the study, the Commission shall solicit the
views of the public as well as Commission registrants, registered
entities, and registered futures associations (all within the meaning
of the Act).
(c) The Commission shall transmit to the Committee on Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report of the
results of its study, which shall include an analysis of comments
received.
SEC. 126. INTERNATIONAL ACTIVITIES OF THE COMMODITY FUTURES
TRADING COMMISSION.
(a) FINDINGS.—The Congress finds that—
(1) derivatives markets serving United States industry are
increasingly global in scope;
(2) developments in data processing and communications
technologies enable users of risk management services to analyze and compare those services on a worldwide basis;
(3) financial services regulatory policy must be flexible
to account for rapidly changing derivatives industry business
practices;
(4) regulatory impediments to the operation of global business interests can compromise the competitiveness of United
States businesses;
(5) events that disrupt financial markets and economies
are often global in scope, require rapid regulatory response,
and coordinated regulatory effort across international jurisdictions;
(6) through its membership in the International
Organisation of Securities Commissions, the Commodity
Futures Trading Commission has promoted beneficial communication among market regulators and international regulatory
cooperation; and
(7) the Commodity Futures Trading Commission and other
United States financial regulators and self-regulatory organizations should continue to foster productive and cooperative working relationships with their counterparts in foreign jurisdictions.
(b) SENSE OF THE CONGRESS.—It is the sense of the Congress
that, consistent with its responsibilities under the Commodity
Exchange Act, the Commodity Futures Trading Commission should,
as part of its international activities, continue to coordinate with
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–413
foreign regulatory authorities, to participate in international regulatory organizations and forums, and to provide technical assistance
to foreign government authorities, in order to encourage—
(1) the facilitation of cross-border transactions through the
removal or lessening of any unnecessary legal or practical
obstacles;
(2) the development of internationally accepted regulatory
standards of best practice;
(3) the enhancement of international supervisory cooperation and emergency procedures;
(4) the strengthening of international cooperation for customer and market protection; and
(5) improvements in the quality and timeliness of international information sharing.
TITLE II—COORDINATED REGULATION
OF SECURITY FUTURES PRODUCTS
Subtitle A—Securities Law Amendments
SEC. 201. DEFINITIONS UNDER THE SECURITIES EXCHANGE ACT OF
1934.
Section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)) is amended—
(1) in paragraph (10), by inserting ‘‘security future,’’ after
‘‘treasury stock,’’;
(2) by striking paragraph (11) and inserting the following:
‘‘(11) The term ‘equity security’ means any stock or similar
security; or any security future on any such security; or any
security convertible, with or without consideration, into such
a security, or carrying any warrant or right to subscribe to
or purchase such a security; or any such warrant or right;
or any other security which the Commission shall deem to
be of similar nature and consider necessary or appropriate,
by such rules and regulations as it may prescribe in the public
interest or for the protection of investors, to treat as an equity
security.’’;
(3) in paragraph (13), by adding at the end the following:
‘‘For security futures products, such term includes any contract,
agreement, or transaction for future delivery.’’;
(4) in paragraph (14), by adding at the end the following:
‘‘For security futures products, such term includes any contract,
agreement, or transaction for future delivery.’’; and
(5) by adding at the end the following:
‘‘(55)(A) The term ‘security future’ means a contract of
sale for future delivery of a single security or of a narrowbased security index, including any interest therein or based
on the value thereof, except an exempted security under section
3(a)(12) of the Securities Exchange Act of 1934 as in effect
on the date of the enactment of the Futures Trading Act of
1982 (other than any municipal security as defined in section
3(a)(29) as in effect on the date of the enactment of the Futures
Trading Act of 1982). The term ‘security future’ does not include
any agreement, contract, or transaction excluded from the
Commodity Exchange Act under section 2(c), 2(d), 2(f ), or 2(g)
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114 STAT. 2763A–414
PUBLIC LAW 106–554—APPENDIX E
of the Commodity Exchange Act (as in effect on the date of
the enactment of the Commodity Futures Modernization Act
of 2000) or title IV of the Commodity Futures Modernization
Act of 2000.
‘‘(B) The term ‘narrow-based security index’ means an
index—
‘‘(i) that has 9 or fewer component securities;
‘‘(ii) in which a component security comprises more
than 30 percent of the index’s weighting;
‘‘(iii) in which the five highest weighted component
securities in the aggregate comprise more than 60 percent
of the index’s weighting; or
‘‘(iv) in which the lowest weighted component securities
comprising, in the aggregate, 25 percent of the index’s
weighting have an aggregate dollar value of average daily
trading volume of less than $50,000,000 (or in the case
of an index with 15 or more component securities,
$30,000,000), except that if there are two or more securities
with equal weighting that could be included in the calculation of the lowest weighted component securities comprising, in the aggregate, 25 percent of the index’s weighting,
such securities shall be ranked from lowest to highest
dollar value of average daily trading volume and shall
be included in the calculation based on their ranking starting with the lowest ranked security.
‘‘(C) Notwithstanding subparagraph (B), an index is not
a narrow-based security index if—
‘‘(i)(I) it has at least nine component securities;
‘‘(II) no component security comprises more than 30
percent of the index’s weighting; and
‘‘(III) each component security is—
‘‘(aa) registered pursuant to section 12 of the Securities Exchange Act of 1934;
‘‘(bb) one of 750 securities with the largest market
capitalization; and
‘‘(cc) one of 675 securities with the largest dollar
value of average daily trading volume;
‘‘(ii) a board of trade was designated as a contract
market by the Commodity Futures Trading Commission
with respect to a contract of sale for future delivery on
the index, before the date of the enactment of the Commodity Futures Modernization Act of 2000;
‘‘(iii)(I) a contract of sale for future delivery on the
index traded on a designated contract market or registered
derivatives transaction execution facility for at least 30
days as a contract of sale for future delivery on an index
that was not a narrow-based security index; and
‘‘(II) it has been a narrow-based security index for
no more than 45 business days over 3 consecutive calendar
months;
‘‘(iv) a contract of sale for future delivery on the index
is traded on or subject to the rules of a foreign board
of trade and meets such requirements as are jointly established by rule or regulation by the Commission and the
Commodity Futures Trading Commission;
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–415
‘‘(v) no more than 18 months have passed since the
date of the enactment of the Commodity Futures Modernization Act of 2000 and—
‘‘(I) it is traded on or subject to the rules of a
foreign board of trade;
‘‘(II) the offer and sale in the United States of
a contract of sale for future delivery on the index
was authorized before the date of the enactment of
the Commodity Futures Modernization Act of 2000;
and
‘‘(III) the conditions of such authorization continue
to be met; or
‘‘(vi) a contract of sale for future delivery on the index
is traded on or subject to the rules of a board of trade
and meets such requirements as are jointly established
by rule, regulation, or order by the Commission and the
Commodity Futures Trading Commission.
‘‘(D) Within 1 year after the enactment of the Commodity
Futures Modernization Act of 2000, the Commission and the
Commodity Futures Trading Commission jointly shall adopt
rules or regulations that set forth the requirements under
clause (iv) of subparagraph (C).
‘‘(E) An index that is a narrow-based security index solely
because it was a narrow-based security index for more than
45 business days over 3 consecutive calendar months pursuant
to clause (iii) of subparagraph (C) shall not be a narrow-based
security index for the 3 following calendar months.
‘‘(F) For purposes of subparagraphs (B) and (C) of this
paragraph—
‘‘(i) the dollar value of average daily trading volume
and the market capitalization shall be calculated as of
the preceding 6 full calendar months; and
‘‘(ii) the Commission and the Commodity Futures Trading Commission shall, by rule or regulation, jointly specify
the method to be used to determine market capitalization
and dollar value of average daily trading volume.
‘‘(56) The term ‘security futures product’ means a security
future or any put, call, straddle, option, or privilege on any
security future.
‘‘(57)(A) The term ‘margin’, when used with respect to
a security futures product, means the amount, type, and form
of collateral required to secure any extension or maintenance
of credit, or the amount, type, and form of collateral required
as a performance bond related to the purchase, sale, or carrying
of a security futures product.
‘‘(B) The terms ‘margin level’ and ‘level of margin’, when
used with respect to a security futures product, mean the
amount of margin required to secure any extension or maintenance of credit, or the amount of margin required as a performance bond related to the purchase, sale, or carrying of a security
futures product.
‘‘(C) The terms ‘higher margin level’ and ‘higher level of
margin’, when used with respect to a security futures product,
mean a margin level established by a national securities
exchange registered pursuant to section 6(g) that is higher
than the minimum amount established and in effect pursuant
to section 7(c)(2)(B).’’.
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114 STAT. 2763A–416
PUBLIC LAW 106–554—APPENDIX E
SEC. 202. REGULATORY RELIEF FOR MARKETS TRADING SECURITY
FUTURES PRODUCTS.
(a) EXPEDITED REGISTRATION AND EXEMPTION.—Section 6 of
the Securities Exchange Act of 1934 (15 U.S.C. 78f ) is amended
by adding at the end the following:
‘‘(g) NOTICE REGISTRATION OF SECURITY FUTURES PRODUCT
EXCHANGES.—
‘‘(1) REGISTRATION REQUIRED.—An exchange that lists or
trades security futures products may register as a national
securities exchange solely for the purposes of trading security
futures products if—
‘‘(A) the exchange is a board of trade, as that term
is defined by the Commodity Exchange Act (7 U.S.C. 1a(2)),
that—
‘‘(i) has been designated a contract market by the
Commodity Futures Trading Commission and such designation is not suspended by order of the Commodity
Futures Trading Commission; or
‘‘(ii) is registered as a derivative transaction execution facility under section 5a of the Commodity
Exchange Act and such registration is not suspended
by the Commodity Futures Trading Commission; and
‘‘(B) such exchange does not serve as a market place
for transactions in securities other than—
‘‘(i) security futures products; or
‘‘(ii) futures on exempted securities or groups or
indexes of securities or options thereon that have been
authorized under section 2(a)(1)(C) of the Commodity
Exchange Act.
‘‘(2) REGISTRATION BY NOTICE FILING.—
‘‘(A) FORM AND CONTENT.—An exchange required to
register only because such exchange lists or trades security
futures products may register for purposes of this section
by filing with the Commission a written notice in such
form as the Commission, by rule, may prescribe containing
the rules of the exchange and such other information and
documents concerning such exchange, comparable to the
information and documents required for national securities
exchanges under section 6(a), as the Commission, by rule,
may prescribe as necessary or appropriate in the public
interest or for the protection of investors. If such exchange
has filed documents with the Commodity Futures Trading
Commission, to the extent that such documents contain
information satisfying the Commission’s informational
requirements, copies of such documents may be filed with
the Commission in lieu of the required written notice.
‘‘(B) IMMEDIATE EFFECTIVENESS.—Such registration
shall be effective contemporaneously with the submission
of notice, in written or electronic form, to the Commission,
except that such registration shall not be effective if such
registration would be subject to suspension or revocation.
‘‘(C) TERMINATION.—Such registration shall be terminated immediately if any of the conditions for registration
set forth in this subsection are no longer satisfied.
‘‘(3) PUBLIC AVAILABILITY.—The Commission shall promptly
publish in the Federal Register an acknowledgment of receipt
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–417
of all notices the Commission receives under this subsection
and shall make all such notices available to the public.
‘‘(4) EXEMPTION OF EXCHANGES FROM SPECIFIED PROVISIONS.—
‘‘(A) TRANSACTION EXEMPTIONS.—An exchange that is
registered under paragraph (1) of this subsection shall
be exempt from, and shall not be required to enforce compliance by its members with, and its members shall not,
solely with respect to those transactions effected on such
exchange in security futures products, be required to comply with, the following provisions of this title and the
rules thereunder:
‘‘(i) Subsections (b)(2), (b)(3), (b)(4), (b)(7), (b)(9),
(c), (d), and (e) of this section.
‘‘(ii) Section 8.
‘‘(iii) Section 11.
‘‘(iv) Subsections (d), (f ), and (k) of section 17.
‘‘(v) Subsections (a), (f ), and (h) of section 19.
‘‘(B) RULE CHANGE EXEMPTIONS.—An exchange that
registered under paragraph (1) of this subsection shall
also be exempt from submitting proposed rule changes
pursuant to section 19(b) of this title, except that—
‘‘(i) such exchange shall file proposed rule changes
related to higher margin levels, fraud or manipulation,
recordkeeping, reporting, listing standards, or decimal
pricing for security futures products, sales practices
for security futures products for persons who effect
transactions in security futures products, or rules effectuating such exchange’s obligation to enforce the securities laws pursuant to section 19(b)(7);
‘‘(ii) such exchange shall file pursuant to sections
19(b)(1) and 19(b)(2) proposed rule changes related
to margin, except for changes resulting in higher margin levels; and
‘‘(iii) such exchange shall file pursuant to section
19(b)(1) proposed rule changes that have been abrogated by the Commission pursuant to section
19(b)(7)(C).
‘‘(5) TRADING IN SECURITY FUTURES PRODUCTS.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), it shall
be unlawful for any person to execute or trade a security
futures product until the later of—
‘‘(i) 1 year after the date of the enactment of the
Commodity Futures Modernization Act of 2000; or
‘‘(ii) such date that a futures association registered
under section 17 of the Commodity Exchange Act has
met the requirements set forth in section 15A(k)(2)
of this title.
‘‘(B) PRINCIPAL-TO-PRINCIPAL TRANSACTIONS.—Notwithstanding subparagraph (A), a person may execute or trade
a security futures product transaction if—
‘‘(i) the transaction is entered into—
‘‘(I) on a principal-to-principal basis between
parties trading for their own accounts or as
described in section 1a(12)(B)(ii) of the Commodity
Exchange Act; and
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114 STAT. 2763A–418
PUBLIC LAW 106–554—APPENDIX E
‘‘(II) only between eligible contract participants (as defined in subparagraphs (A), (B)(ii),
and (C) of such section 1a(12)) at the time at
which the persons enter into the agreement, contract, or transaction; and
‘‘(ii) the transaction is entered into on or after
the later of—
‘‘(I) 8 months after the date of the enactment
of the Commodity Futures Modernization Act of
2000; or
‘‘(II) such date that a futures association registered under section 17 of the Commodity
Exchange Act has met the requirements set forth
in section 15A(k)(2) of this title.’’.
(b) COMMISSION REVIEW OF PROPOSED RULE CHANGES.—
(1) EXPEDITED REVIEW.—Section 19(b) of the Securities
Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended by adding
at the end the following:
‘‘(7) SECURITY FUTURES PRODUCT RULE CHANGES.—
‘‘(A) FILING REQUIRED.—A self-regulatory organization
that is an exchange registered with the Commission pursuant to section 6(g) of this title or that is a national securities
association registered pursuant to section 15A(k) of this
title shall file with the Commission, in accordance with
such rules as the Commission may prescribe, copies of
any proposed rule change or any proposed change in, addition to, or deletion from the rules of such self-regulatory
organization (hereinafter in this paragraph collectively
referred to as a ‘proposed rule change’) that relates to
higher margin levels, fraud or manipulation, recordkeeping,
reporting, listing standards, or decimal pricing for security
futures products, sales practices for security futures products for persons who effect transactions in security futures
products, or rules effectuating such self-regulatory
organization’s obligation to enforce the securities laws.
Such proposed rule change shall be accompanied by a concise general statement of the basis and purpose of such
proposed rule change. The Commission shall, upon the
filing of any proposed rule change, promptly publish notice
thereof together with the terms of substance of the proposed
rule change or a description of the subjects and issues
involved. The Commission shall give interested persons
an opportunity to submit data, views, and arguments
concerning such proposed rule change.
‘‘(B) FILING WITH CFTC.—A proposed rule change filed
with the Commission pursuant to subparagraph (A) shall
be filed concurrently with the Commodity Futures Trading
Commission. Such proposed rule change may take effect
upon filing of a written certification with the Commodity
Futures Trading Commission under section 5c(c) of the
Commodity Exchange Act, upon a determination by the
Commodity Futures Trading Commission that review of
the proposed rule change is not necessary, or upon approval
of the proposed rule change by the Commodity Futures
Trading Commission.
‘‘(C) ABROGATION OF RULE CHANGES.—Any proposed
rule change of a self-regulatory organization that has taken
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–419
effect pursuant to subparagraph (B) may be enforced by
such self-regulatory organization to the extent such rule
is not inconsistent with the provisions of this title, the
rules and regulations thereunder, and applicable Federal
law. At any time within 60 days of the date of the filing
of a written certification with the Commodity Futures Trading Commission under section 5c(c) of the Commodity
Exchange Act, the date the Commodity Futures Trading
Commission determines that review of such proposed rule
change is not necessary, or the date the Commodity Futures
Trading Commission approves such proposed rule change,
the Commission, after consultation with the Commodity
Futures Trading Commission, may summarily abrogate the
proposed rule change and require that the proposed rule
change be refiled in accordance with the provisions of paragraph (1), if it appears to the Commission that such proposed rule change unduly burdens competition or efficiency,
conflicts with the securities laws, or is inconsistent with
the public interest and the protection of investors. Commission action pursuant to the preceding sentence shall not
affect the validity or force of the rule change during the
period it was in effect and shall not be reviewable under
section 25 of this title nor deemed to be a final agency
action for purposes of section 704 of title 5, United States
Code.
‘‘(D) REVIEW OF RESUBMITTED ABROGATED RULES.—
‘‘(i) PROCEEDINGS.—Within 35 days of the date of
publication of notice of the filing of a proposed rule
change that is abrogated in accordance with subparagraph (C) and refiled in accordance with paragraph
(1), or within such longer period as the Commission
may designate up to 90 days after such date if the
Commission finds such longer period to be appropriate
and publishes its reasons for so finding or as to which
the self-regulatory organization consents, the Commission shall—
‘‘(I) by order approve such proposed rule
change; or
‘‘(II) after consultation with the Commodity
Futures Trading Commission, institute proceedings to determine whether the proposed rule
change should be disapproved. Proceedings under
subclause (II) shall include notice of the grounds
for disapproval under consideration and opportunity for hearing and be concluded within 180
days after the date of publication of notice of the
filing of the proposed rule change. At the conclusion of such proceedings, the Commission, by order,
shall approve or disapprove such proposed rule
change. The Commission may extend the time for
conclusion of such proceedings for up to 60 days
if the Commission finds good cause for such extension and publishes its reasons for so finding or
for such longer period as to which the self-regulatory organization consents.
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114 STAT. 2763A–420
PUBLIC LAW 106–554—APPENDIX E
‘‘(ii) GROUNDS FOR APPROVAL.—The Commission
shall approve a proposed rule change of a self-regulatory organization under this subparagraph if the
Commission finds that such proposed rule change does
not unduly burden competition or efficiency, does not
conflict with the securities laws, and is not inconsistent
with the public interest or the protection of investors.
The Commission shall disapprove such a proposed rule
change of a self-regulatory organization if it does not
make such finding. The Commission shall not approve
any proposed rule change prior to the 30th day after
the date of publication of notice of the filing thereof,
unless the Commission finds good cause for so doing
and publishes its reasons for so finding.’’.
(2) DECIMAL PRICING PROVISIONS.—Section 19(b) of the
Securities Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended
by inserting after paragraph (7), as added by paragraph (1),
the following:
‘‘(8) DECIMAL PRICING.—Not later than 9 months after the
date on which trading in any security futures product commences under this title, all self-regulatory organizations listing
or trading security futures products shall file proposed rule
changes necessary to implement decimal pricing of security
futures products. The Commission may not require such rules
to contain equal minimum increments in such decimal pricing.’’.
(3) CONSULTATION PROVISIONS.—Section 19(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended by
inserting after paragraph (8), as added by paragraph (2), the
following:
‘‘(9) CONSULTATION WITH CFTC.—
‘‘(A) CONSULTATION REQUIRED.—The Commission shall
consult with and consider the views of the Commodity
Futures Trading Commission prior to approving or disapproving a proposed rule change filed by a national securities association registered pursuant to section 15A(a) or
a national securities exchange subject to the provisions
of subsection (a) that primarily concerns conduct related
to transactions in security futures products, except where
the Commission determines that an emergency exists
requiring expeditious or summary action and publishes
its reasons therefor.
‘‘(B) RESPONSES TO CFTC COMMENTS AND FINDINGS.—
If the Commodity Futures Trading Commission comments
in writing to the Commission on a proposed rule that
has been published for comment, the Commission shall
respond in writing to such written comment before approving or disapproving the proposed rule. If the Commodity
Futures Trading Commission determines, and notifies the
Commission, that such rule, if implemented or as applied,
would—
‘‘(i) adversely affect the liquidity or efficiency of
the market for security futures products; or
‘‘(ii) impose any burden on competition not necessary or appropriate in furtherance of the purposes
of this section,
the Commission shall, prior to approving or disapproving
the proposed rule, find that such rule is necessary and
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–421
appropriate in furtherance of the purposes of this section
notwithstanding the Commodity Futures Trading Commission’s determination.’’.
(c) REVIEW OF DISCIPLINARY PROCEEDINGS.—Section 19(d) of
the Securities Exchange Act of 1934 (15 U.S.C. 78s(d)) is amended
by adding at the end the following:
‘‘(3) The provisions of this subsection shall apply to an exchange
registered pursuant to section 6(g) of this title or a national securities association registered pursuant to section 15A(k) of this title
only to the extent that such exchange or association imposes any
final disciplinary sanction for—
‘‘(A) a violation of the Federal securities laws or the rules
and regulations thereunder; or
‘‘(B) a violation of a rule of such exchange or association,
as to which a proposed change would be required to be filed
under section 19 of this title, except that, to the extent that
the exchange or association rule violation relates to any
account, agreement, contract, or transaction, this subsection
shall apply only to the extent such violation involves a security
futures product.’’.
SEC. 203. REGULATORY RELIEF FOR INTERMEDIARIES TRADING SECURITY FUTURES PRODUCTS.
(a) EXPEDITED REGISTRATION AND EXEMPTIONS.—
(1) AMENDMENT.—Section 15(b) of the Securities Exchange
Act of 1934 (15 U.S.C. 78o(b)) is amended by adding at the
end the following:
‘‘(11) BROKER/DEALER REGISTRATION WITH RESPECT TO
TRANSACTIONS IN SECURITY FUTURES PRODUCTS.—
‘‘(A) NOTICE REGISTRATION.—
‘‘(i) CONTENTS OF NOTICE.—Notwithstanding paragraphs (1) and (2), a broker or dealer required to
register only because it effects transactions in security
futures products on an exchange registered pursuant
to section 6(g) may register for purposes of this section
by filing with the Commission a written notice in such
form and containing such information concerning such
broker or dealer and any persons associated with such
broker or dealer as the Commission, by rule, may
prescribe as necessary or appropriate in the public
interest or for the protection of investors. A broker
or dealer may not register under this paragraph unless
that broker or dealer is a member of a national securities association registered under section 15A(k).
‘‘(ii) IMMEDIATE EFFECTIVENESS.—Such registration
shall be effective contemporaneously with the submission of notice, in written or electronic form, to the
Commission, except that such registration shall not
be effective if the registration would be subject to
suspension or revocation under paragraph (4).
‘‘(iii) SUSPENSION.—Such registration shall be suspended immediately if a national securities association
registered pursuant to section 15A(k) of this title suspends the membership of that broker or dealer.
‘‘(iv) TERMINATION.—Such registration shall be
terminated immediately if any of the above stated
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114 STAT. 2763A–422
PUBLIC LAW 106–554—APPENDIX E
conditions for registration set forth in this paragraph
are no longer satisfied.
‘‘(B) EXEMPTIONS FOR REGISTERED BROKERS AND
DEALERS.—A broker or dealer registered pursuant to the
requirements of subparagraph (A) shall be exempt from
the following provisions of this title and the rules thereunder with respect to transactions in security futures products:
‘‘(i) Section 8.
‘‘(ii) Section 11.
‘‘(iii) Subsections (c)(3) and (c)(5) of this section.
‘‘(iv) Section 15B.
‘‘(v) Section 15C.
‘‘(vi) Subsections (d), (e), (f ), (g), (h), and (i) of
section 17.’’.
(2) CONFORMING AMENDMENT.—Section 28(e) of the Securities Exchange Act of 1934 (15 U.S.C. 78bb(e)) is amended
by adding at the end the following:
‘‘(4) The provisions of this subsection shall not apply with
regard to securities that are security futures products.’’.
(b) FLOOR BROKERS AND FLOOR TRADERS.—Section 15(b) of
the Securities Exchange Act of 1934 (15 U.S.C. 78o(b)) is amended
by inserting after paragraph (11), as added by subsection (a), the
following:
‘‘(12) EXEMPTION FOR SECURITY FUTURES PRODUCT
EXCHANGE MEMBERS.—
‘‘(A) REGISTRATION EXEMPTION.—A natural person shall
be exempt from the registration requirements of this section if such person—
‘‘(i) is a member of a designated contract market
registered with the Commission as an exchange pursuant to section 6(g);
‘‘(ii) effects transactions only in securities on the
exchange of which such person is a member; and
‘‘(iii) does not directly accept or solicit orders from
public customers or provide advice to public customers
in connection with the trading of security futures products.
‘‘(B) OTHER EXEMPTIONS.—A natural person exempt
from registration pursuant to subparagraph (A) shall also
be exempt from the following provisions of this title and
the rules thereunder:
‘‘(i) Section 8.
‘‘(ii) Section 11.
‘‘(iii) Subsections (c)(3), (c)(5), and (e) of this section.
‘‘(iv) Section 15B.
‘‘(v) Section 15C.
‘‘(vi) Subsections (d), (e), (f ), (g), (h), and (i) of
section 17.’’.
(c) LIMITED PURPOSE NATIONAL SECURITIES ASSOCIATION.—Section 15A of the Securities Exchange Act of 1934 (15 U.S.C. 78o–
3) is amended by adding at the end the following:
‘‘(k) LIMITED PURPOSE NATIONAL SECURITIES ASSOCIATION.—
‘‘(1) REGULATION OF MEMBERS WITH RESPECT TO SECURITY
FUTURES PRODUCTS.—A futures association registered under
section 17 of the Commodity Exchange Act shall be a registered
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–423
national securities association for the limited purpose of regulating the activities of members who are registered as brokers
or dealers in security futures products pursuant to section
15(b)(11).
‘‘(2) REQUIREMENTS FOR REGISTRATION.—Such a securities
association shall—
‘‘(A) be so organized and have the capacity to carry
out the purposes of the securities laws applicable to security
futures products and to comply, and (subject to any rule
or order of the Commission pursuant to section 19(g)(2))
to enforce compliance by its members and persons associated with its members, with the provisions of the securities
laws applicable to security futures products, the rules and
regulations thereunder, and its rules;
‘‘(B) have rules that—
‘‘(i) are designed to prevent fraudulent and
manipulative acts and practices, to promote just and
equitable principles of trade, and, in general, to protect
investors and the public interest, including rules
governing sales practices and the advertising of security futures products reasonably comparable to those
of other national securities associations registered
pursuant to subsection (a) that are applicable to security futures products; and
‘‘(ii) are not designed to regulate by virtue of any
authority conferred by this title matters not related
to the purposes of this title or the administration of
the association;
‘‘(C) have rules that provide that (subject to any rule
or order of the Commission pursuant to section 19(g)(2))
its members and persons associated with its members shall
be appropriately disciplined for violation of any provision
of the securities laws applicable to security futures products, the rules or regulations thereunder, or the rules of
the association, by expulsion, suspension, limitation of
activities, functions, and operations, fine, censure, being
suspended or barred from being associated with a member,
or any other fitting sanction; and
‘‘(D) have rules that ensure that members and natural
persons associated with members meet such standards of
training, experience, and competence necessary to effect
transactions in security futures products and are tested
for their knowledge of securities and security futures products.
‘‘(3) EXEMPTION FROM RULE CHANGE SUBMISSION.—Such a
securities association shall be exempt from submitting proposed
rule changes pursuant to section 19(b) of this title, except
that—
‘‘(A) the association shall file proposed rule changes
related to higher margin levels, fraud or manipulation,
recordkeeping, reporting, listing standards, or decimal pricing for security futures products, sales practices for,
advertising of, or standards of training, experience, competence, or other qualifications for security futures products
for persons who effect transactions in security futures products, or rules effectuating the association’s obligation to
enforce the securities laws pursuant to section 19(b)(7);
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114 STAT. 2763A–424
PUBLIC LAW 106–554—APPENDIX E
‘‘(B) the association shall file pursuant to sections
19(b)(1) and 19(b)(2) proposed rule changes related to margin, except for changes resulting in higher margin levels;
and
‘‘(C) the association shall file pursuant to section
19(b)(1) proposed rule changes that have been abrogated
by the Commission pursuant to section 19(b)(7)(C).
‘‘(4) OTHER EXEMPTIONS.—Such a securities association
shall be exempt from and shall not be required to enforce
compliance by its members, and its members shall not, solely
with respect to their transactions effected in security futures
products, be required to comply, with the following provisions
of this title and the rules thereunder:
‘‘(A) Section 8.
‘‘(B) Subsections (b)(1), (b)(3), (b)(4), (b)(5), (b)(8),
(b)(10), (b)(11), (b)(12), (b)(13), (c), (d), (e), (f ), (g), (h),
and (i) of this section.
‘‘(C) Subsections (d), (f ), and (k) of section 17.
‘‘(D) Subsections (a), (f ), and (h) of section 19.’’.
(d) EXEMPTION UNDER THE SECURITIES INVESTOR PROTECTION
ACT OF 1970.—
(1) Section 16(14) of the Securities Investor Protection Act
of 1970 (15 U.S.C. 78lll(14)) is amended by inserting ‘‘or any
security future as that term is defined in section 3(a)(55)(A)
of the Securities Exchange Act of 1934,’’ after ‘‘certificate of
deposit for a security,’’.
(2) Section 3(a)(2)(A) of the Securities Investor Protection
Act of 1970 (15 U.S.C. 78ccc(a)(2)(A)) is amended—
(A) in clause (i), by striking ‘‘and’’ after the semicolon;
(B) in clause (ii), by striking the period and inserting
‘‘; and’’; and
(C) by adding at the end the following:
‘‘(iii) persons who are registered as a broker or
dealer pursuant to section 15(b)(11)(A) of the Securities
Exchange Act of 1934.’’.
SEC. 204. SPECIAL PROVISIONS FOR INTERAGENCY COOPERATION.
Section 17(b) of the Securities Exchange Act of 1934 (15 U.S.C.
78q(b)) is amended—
(1) by striking ‘‘(b) All’’ and inserting the following:
‘‘(b) RECORDS SUBJECT TO EXAMINATION.—
‘‘(1) PROCEDURES FOR COOPERATION WITH OTHER AGENCIES.—All’’;
(2) by striking ‘‘prior to conducting any such examination
of a registered clearing ’’ and inserting the following: ‘‘prior
to conducting any such examination of a—
‘‘(A) registered clearing ’’;
(3) by redesignating the last sentence as paragraph (4)(C);
(4) by striking the period at the end of the first sentence
and inserting the following: ‘‘; or
‘‘(B) broker or dealer registered pursuant to section
15(b)(11), exchange registered pursuant to section 6(g), or
national securities association registered pursuant to section 15A(k) gives notice to the Commodity Futures Trading
Commission of such proposed examination and consults
with the Commodity Futures Trading Commission concerning the feasibility and desirability of coordinating such
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–425
examination with examinations conducted by the Commodity Futures Trading Commission in order to avoid unnecessary regulatory duplication or undue regulatory burdens
for such broker or dealer or exchange.’’;
(5) by adding at the end the following new paragraphs:
‘‘(2) FURNISHING DATA AND REPORTS TO CFTC.—The
Commission shall notify the Commodity Futures Trading
Commission of any examination conducted of any broker or
dealer registered pursuant to section 15(b)(11), exchange registered pursuant to section 6(g), or national securities association registered pursuant to section 15A(k) and, upon request,
furnish to the Commodity Futures Trading Commission any
examination report and data supplied to, or prepared by, the
Commission in connection with such examination.
‘‘(3) USE OF CFTC REPORTS.—Prior to conducting an examination under paragraph (1), the Commission shall use the
reports of examinations, if the information available therein
is sufficient for the purposes of the examination, of—
‘‘(A) any broker or dealer registered pursuant to section
15(b)(11);
‘‘(B) exchange registered pursuant to section 6(g); or
‘‘(C) national securities association registered pursuant
to section 15A(k);
that is made by the Commodity Futures Trading Commission,
a national securities association registered pursuant to section
15A(k), or an exchange registered pursuant to section 6(g).
‘‘(4) RULES OF CONSTRUCTION.—
‘‘(A) Notwithstanding any other provision of this subsection, the records of a broker or dealer registered pursuant to section 15(b)(11), an exchange registered pursuant
to section 6(g), or a national securities association registered pursuant to section 15A(k) described in this
subparagraph shall not be subject to routine periodic
examinations by the Commission.
‘‘(B) Any recordkeeping rules adopted under this subsection for a broker or dealer registered pursuant to section
15(b)(11), an exchange registered pursuant to section 6(g),
or a national securities association registered pursuant to
section 15A(k) shall be limited to records with respect
to persons, accounts, agreements, contracts, and transactions involving security futures products.’’; and
(6) in paragraph (4)(C) (as redesignated by paragraph (3)
of this section), by striking ‘‘Nothing in the proviso to the
preceding sentence’’ and inserting ‘‘Nothing in the proviso in
paragraph (1)’’.
SEC. 205. MAINTENANCE OF MARKET INTEGRITY FOR SECURITY
FUTURES PRODUCTS.
(a) ADDITION OF SECURITY FUTURES PRODUCTS TO OPTION-SPEENFORCEMENT PROVISIONS.—
(1) PROHIBITION AGAINST MANIPULATION.—Section 9(b) of
the Securities Exchange Act of 1934 (15 U.S.C. 78i(b)) is
amended—
(A) in paragraph (1)—
(i) by inserting ‘‘(A)’’ after ‘‘acquires’’; and
(ii) by striking ‘‘; or’’ and inserting ‘‘; or (B) any
security futures product on the security; or’’;
CIFIC
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114 STAT. 2763A–426
PUBLIC LAW 106–554—APPENDIX E
(B) in paragraph (2)—
(i) by inserting ‘‘(A)’’ after ‘‘interest in any’’; and
(ii) by striking ‘‘; or’’ and inserting ‘‘; or (B) such
security futures product; or’’; and
(C) in paragraph (3)—
(i) by inserting ‘‘(A)’’ after ‘‘interest in any’’; and
(ii) by inserting ‘‘; or (B) such security futures
product’’ after ‘‘privilege’’.
(2) MANIPULATION IN OPTIONS AND OTHER DERIVATIVE PRODUCTS.—Section 9(g) of the Securities Exchange Act of 1934
(15 U.S.C. 78i(g)) is amended—
(A) by inserting ‘‘(1)’’ after ‘‘(g)’’;
(B) by inserting ‘‘other than a security futures product’’
after ‘‘future delivery’’; and
(C) by adding at the end the following:
‘‘(2) Notwithstanding the Commodity Exchange Act, the
Commission shall have the authority to regulate the trading of
any security futures product to the extent provided in the securities
laws.’’.
(3) LIABILITY OF CONTROLLING PERSONS AND PERSONS WHO
AID AND ABET VIOLATIONS.—Section 20(d) of the Securities
Exchange Act of 1934 (15 U.S.C. 78t(d)) is amended by striking
‘‘or privilege’’ and inserting ‘‘, privilege, or security futures
product’’.
(4) LIABILITY TO CONTEMPORANEOUS TRADERS FOR INSIDER
TRADING.—Section 21A(a)(1) of the Securities Exchange Act
of 1934 (15 U.S.C. 78u–1(a)(1)) is amended by striking
‘‘standardized options, the Commission—’’ and inserting
‘‘standardized options or security futures products, the Commission—’’.
(5) ENFORCEMENT CONSULTATION.—Section 21 of the Securities Exchange Act of 1934 (15 U.S.C. 78u) is amended by
adding at the end the following:
‘‘(i) INFORMATION TO CFTC.—The Commission shall provide
the Commodity Futures Trading Commission with notice of the
commencement of any proceeding and a copy of any order entered
by the Commission against any broker or dealer registered pursuant
to section 15(b)(11), any exchange registered pursuant to section
6(g), or any national securities association registered pursuant to
section 15A(k).’’.
SEC. 206. SPECIAL PROVISIONS FOR THE TRADING OF SECURITY
FUTURES PRODUCTS.
(a) LISTING STANDARDS AND CONDITIONS FOR TRADING.—Section
6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f ) is amended
by inserting after subsection (g), as added by section 202, the
following:
‘‘(h) TRADING IN SECURITY FUTURES PRODUCTS.—
‘‘(1) TRADING ON EXCHANGE OR ASSOCIATION REQUIRED.—
It shall be unlawful for any person to effect transactions in
security futures products that are not listed on a national
securities exchange or a national securities association registered pursuant to section 15A(a).
‘‘(2) LISTING STANDARDS REQUIRED.—Except as otherwise
provided in paragraph (7), a national securities exchange or
a national securities association registered pursuant to section
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–427
15A(a) may trade only security futures products that (A) conform with listing standards that such exchange or association
files with the Commission under section 19(b) and (B) meet
the criteria specified in section 2(a)(1)(D)(i) of the Commodity
Exchange Act.
‘‘(3) REQUIREMENTS FOR LISTING STANDARDS AND CONDITIONS FOR TRADING.—Such listing standards shall—
‘‘(A) except as otherwise provided in a rule, regulation,
or order issued pursuant to paragraph (4), require that
any security underlying the security future, including each
component security of a narrow-based security index, be
registered pursuant to section 12 of this title;
‘‘(B) require that if the security futures product is
not cash settled, the market on which the security futures
product is traded have arrangements in place with a registered clearing agency for the payment and delivery of
the securities underlying the security futures product;
‘‘(C) be no less restrictive than comparable listing
standards for options traded on a national securities
exchange or national securities association registered
pursuant to section 15A(a) of this title;
‘‘(D) except as otherwise provided in a rule, regulation,
or order issued pursuant to paragraph (4), require that
the security future be based upon common stock and such
other equity securities as the Commission and the
Commodity Futures Trading Commission jointly determine
appropriate;
‘‘(E) require that the security futures product is cleared
by a clearing agency that has in place provisions for linked
and coordinated clearing with other clearing agencies that
clear security futures products, which permits the security
futures product to be purchased on one market and offset
on another market that trades such product;
‘‘(F) require that only a broker or dealer subject to
suitability rules comparable to those of a national securities
association registered pursuant to section 15A(a) effect
transactions in the security futures product;
‘‘(G) require that the security futures product be subject
to the prohibition against dual trading in section 4j of
the Commodity Exchange Act (7 U.S.C. 6j) and the rules
and regulations thereunder or the provisions of section
11(a) of this title and the rules and regulations thereunder,
except to the extent otherwise permitted under this title
and the rules and regulations thereunder;
‘‘(H) require that trading in the security futures product not be readily susceptible to manipulation of the price
of such security futures product, nor to causing or being
used in the manipulation of the price of any underlying
security, option on such security, or option on a group
or index including such securities;
‘‘(I) require that procedures be in place for coordinated
surveillance among the market on which the security
futures product is traded, any market on which any security
underlying the security futures product is traded, and other
markets on which any related security is traded to detect
manipulation and insider trading;
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‘‘(J) require that the market on which the security
futures product is traded has in place audit trails necessary
or appropriate to facilitate the coordinated surveillance
required in subparagraph (I);
‘‘(K) require that the market on which the security
futures product is traded has in place procedures to coordinate trading halts between such market and any market
on which any security underlying the security futures product is traded and other markets on which any related
security is traded; and
‘‘(L) require that the margin requirements for a security futures product comply with the regulations prescribed
pursuant to section 7(c)(2)(B), except that nothing in this
subparagraph shall be construed to prevent a national
securities exchange or national securities association from
requiring higher margin levels for a security futures product when it deems such action to be necessary or appropriate.
‘‘(4) AUTHORITY TO MODIFY CERTAIN LISTING STANDARD
REQUIREMENTS.—
‘‘(A) AUTHORITY TO MODIFY.—The Commission and the
Commodity Futures Trading Commission, by rule, regulation, or order, may jointly modify the listing standard
requirements specified in subparagraph (A) or (D) of paragraph (3) to the extent such modification fosters the
development of fair and orderly markets in security futures
products, is necessary or appropriate in the public interest,
and is consistent with the protection of investors.
‘‘(B) AUTHORITY TO GRANT EXEMPTIONS.—The Commission and the Commodity Futures Trading Commission, by
order, may jointly exempt any person from compliance
with the listing standard requirement specified in subparagraph (E) of paragraph (3) to the extent such exemption
fosters the development of fair and orderly markets in
security futures products, is necessary or appropriate in
the public interest, and is consistent with the protection
of investors.
‘‘(5) REQUIREMENTS FOR OTHER PERSONS TRADING SECURITY
FUTURE PRODUCTS.—It shall be unlawful for any person (other
than a national securities exchange or a national securities
association registered pursuant to section 15A(a)) to constitute,
maintain, or provide a marketplace or facilities for bringing
together purchasers and sellers of security future products or
to otherwise perform with respect to security future products
the functions commonly performed by a stock exchange as
that term is generally understood, unless a national securities
association registered pursuant to section 15A(a) or a national
securities exchange of which such person is a member—
‘‘(A) has in place procedures for coordinated surveillance among such person, the market trading the securities
underlying the security future products, and other markets
trading related securities to detect manipulation and
insider trading;
‘‘(B) has rules to require audit trails necessary or
appropriate to facilitate the coordinated surveillance
required in subparagraph (A); and
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–429
‘‘(C) has rules to require such person to coordinate
trading halts with markets trading the securities underlying the security future products and other markets trading
related securities.
‘‘(6) DEFERRAL OF OPTIONS ON SECURITY FUTURES TRADING.—No person shall offer to enter into, enter into, or confirm
the execution of any put, call, straddle, option, or privilege
on a security future, except that, after 3 years after the date
of the enactment of this subsection, the Commission and the
Commodity Futures Trading Commission may by order jointly
determine to permit trading of puts, calls, straddles, options,
or privileges on any security future authorized to be traded
under the provisions of this Act and the Commodity Exchange
Act.
‘‘(7) DEFERRAL OF LINKED AND COORDINATED CLEARING.—
‘‘(A) Notwithstanding paragraph (2), until the compliance date, a national securities exchange or national securities association registered pursuant to section 15A(a) may
trade a security futures product that does not—
‘‘(i) conform with any listing standard promulgated
to meet the requirement specified in subparagraph
(E) of paragraph (3); or
‘‘(ii) meet the criterion specified in section
2(a)(1)(D)(i)(IV) of the Commodity Exchange Act.
‘‘(B) The Commission and the Commodity Futures
Trading Commission shall jointly publish in the Federal
Register a notice of the compliance date no later than
165 days before the compliance date.
‘‘(C) For purposes of this paragraph, the term ‘compliance date’ means the later of—
‘‘(i) 180 days after the end of the first full calendar
month period in which the average aggregate comparable share volume for all security futures products
based on single equity securities traded on all national
securities exchanges, any national securities associations registered pursuant to section 15A(a), and all
other persons equals or exceeds 10 percent of the average aggregate comparable share volume of options on
single equity securities traded on all national securities
exchanges and any national securities associations registered pursuant to section 15A(a); or
‘‘(ii) 2 years after the date on which trading in
any security futures product commences under this
title.’’.
(b) MARGIN.—Section 7 of the Securities Exchange Act of 1934
(15 U.S.C. 78g) is amended—
(1) in subsection (a), by inserting ‘‘or a security futures
product’’ after ‘‘exempted security’’;
(2) in subsection (c)(1)(A), by inserting ‘‘except as provided
in paragraph (2),’’ after ‘‘security),’’;
(3) by redesignating paragraph (2) of subsection (c) as
paragraph (3) of such subsection; and
(4) by inserting after paragraph (1) of such subsection
the following:
‘‘(2) MARGIN REGULATIONS.—
‘‘(A) COMPLIANCE WITH MARGIN RULES REQUIRED.—It
shall be unlawful for any broker, dealer, or member of
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PUBLIC LAW 106–554—APPENDIX E
a national securities exchange to, directly or indirectly,
extend or maintain credit to or for, or collect margin from
any customer on, any security futures product unless such
activities comply with the regulations—
‘‘(i) which the Board shall prescribe pursuant to
subparagraph (B); or
‘‘(ii) if the Board determines to delegate the authority to prescribe such regulations, which the Commission and the Commodity Futures Trading Commission
shall jointly prescribe pursuant to subparagraph (B).
If the Board delegates the authority to prescribe such regulations under clause (ii) and the Commission and the
Commodity Futures Trading Commission have not jointly
prescribed such regulations within a reasonable period of
time after the date of such delegation, the Board shall
prescribe such regulations pursuant to subparagraph (B).
‘‘(B) CRITERIA FOR ISSUANCE OF RULES.—The Board
shall prescribe, or, if the authority is delegated pursuant
to subparagraph (A)(ii), the Commission and the Commodity Futures Trading Commission shall jointly prescribe,
such regulations to establish margin requirements, including the establishment of levels of margin (initial and
maintenance) for security futures products under such
terms, and at such levels, as the Board deems appropriate,
or as the Commission and the Commodity Futures Trading
Commission jointly deem appropriate—
‘‘(i) to preserve the financial integrity of markets
trading security futures products;
‘‘(ii) to prevent systemic risk;
‘‘(iii) to require that—
‘‘(I) the margin requirements for a security
future product be consistent with the margin
requirements for comparable option contracts
traded on any exchange registered pursuant to
section 6(a) of this title; and
‘‘(II) initial and maintenance margin levels for
a security future product not be lower than the
lowest level of margin, exclusive of premium,
required for any comparable option contract traded
on any exchange registered pursuant to section
6(a) of this title, other than an option on a security
future;
except that nothing in this subparagraph shall be construed to prevent a national securities exchange or
national securities association from requiring higher
margin levels for a security future product when it
deems such action to be necessary or appropriate; and
‘‘(iv) to ensure that the margin requirements (other
than levels of margin), including the type, form, and
use of collateral for security futures products, are and
remain consistent with the requirements established
by the Board, pursuant to subparagraphs (A) and (B)
of paragraph (1).’’.
(c) INCORPORATION OF SECURITY FUTURES PRODUCTS INTO THE
NATIONAL MARKET SYSTEM.—Section 11A of the Securities
Exchange Act of 1934 (15 U.S.C. 78k–1) is amended by adding
at the end the following:
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PUBLIC LAW 106–554—APPENDIX E
‘‘(e) NATIONAL MARKETS SYSTEM
FOR
114 STAT. 2763A–431
SECURITY FUTURES PROD-
UCTS.—
‘‘(1) CONSULTATION AND COOPERATION REQUIRED.—With
respect to security futures products, the Commission and the
Commodity Futures Trading Commission shall consult and
cooperate so that, to the maximum extent practicable, their
respective regulatory responsibilities may be fulfilled and the
rules and regulations applicable to security futures products
may foster a national market system for security futures products if the Commission and the Commodity Futures Trading
Commission jointly determine that such a system would be
consistent with the congressional findings in subsection (a)(1).
In accordance with this objective, the Commission shall, at
least 15 days prior to the issuance for public comment of
any proposed rule or regulation under this section concerning
security futures products, consult and request the views of
the Commodity Futures Trading Commission.
‘‘(2) APPLICATION OF RULES BY ORDER OF CFTC.—No rule
adopted pursuant to this section shall be applied to any person
with respect to the trading of security futures products on
an exchange that is registered under section 6(g) unless the
Commodity Futures Trading Commission has issued an order
directing that such rule is applicable to such persons.’’.
(d) INCORPORATION OF SECURITY FUTURES PRODUCTS INTO THE
NATIONAL SYSTEM FOR CLEARANCE AND SETTLEMENT.—Section
17A(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78q–
1(b)) is amended by adding at the end the following:
‘‘(7)(A) A clearing agency that is regulated directly or indirectly
by the Commodity Futures Trading Commission through its association with a designated contract market for security futures products
that is a national securities exchange registered pursuant to section
6(g), and that would be required to register pursuant to paragraph
(1) of this subsection only because it performs the functions of
a clearing agency with respect to security futures products effected
pursuant to the rules of the designated contract market with which
such agency is associated, is exempted from the provisions of this
section and the rules and regulations thereunder, except that if
such a clearing agency performs the functions of a clearing agency
with respect to a security futures product that is not cash settled,
it must have arrangements in place with a registered clearing
agency to effect the payment and delivery of the securities underlying the security futures product.
‘‘(B) Any clearing agency that performs the functions of a clearing agency with respect to security futures products must coordinate
with and develop fair and reasonable links with any and all other
clearing agencies that perform the functions of a clearing agency
with respect to security futures products, in order to permit, as
of the compliance date (as defined in section 6(h)(6)(C)), security
futures products to be purchased on one market and offset on
another market that trades such products.’’.
(e) MARKET EMERGENCY POWERS AND CIRCUIT BREAKERS.—
Section 12(k) of the Securities Exchange Act of 1934 (15 U.S.C.
78l(k)) is amended—
(1) in paragraph (1), by adding at the end the following:
‘‘If the actions described in subparagraph (A) or (B) involve
a security futures product, the Commission shall consult with
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114 STAT. 2763A–432
PUBLIC LAW 106–554—APPENDIX E
and consider the views of the Commodity Futures Trading
Commission.’’; and
(2) in paragraph (2)(B), by inserting after the first sentence
the following: ‘‘If the actions described in subparagraph (A)
involve a security futures product, the Commission shall consult
with and consider the views of the Commodity Futures Trading
Commission.’’.
(f ) TRANSACTION FEES.—Section 31 of the Securities Exchange
Act of 1934 (15 U.S.C. 78ee) is amended—
(1) in subsection (a), by inserting ‘‘and assessments’’ after
‘‘fees’’;
(2) in subsections (b), (c), and (d)(1), by striking ‘‘and other
evidences of indebtedness’’ and inserting ‘‘other evidences of
indebtedness, and security futures products’’;
(3) in subsection (f ), by inserting ‘‘or assessment’’ after
‘‘fee’’;
(4) in subsection (g), by inserting ‘‘and assessment’’ after
‘‘fee’’;
(5) by redesignating subsections (e), (f ), and (g) as subsections (f ), (g), and (h), respectively; and
(6) by inserting after subsection (d) the following new subsection:
‘‘(e) ASSESSMENTS ON SECURITY FUTURES TRANSACTIONS.—Each
national securities exchange and national securities association
shall pay to the Commission an assessment equal to $0.02 for
each round turn transaction (treated as including one purchase
and one sale of a contract of sale for future delivery) on a security
future traded on such national securities exchange or by or through
any member of such association otherwise than on a national securities exchange, except that for fiscal year 2007 or any succeeding
fiscal year such assessment shall be equal to $0.0075 for each
such transaction. Assessments collected pursuant to this subsection
shall be deposited and collected as general revenue of the Treasury.’’.
(g) EXEMPTION FROM SHORT SALE PROVISIONS.—Section 10(a)
of the Securities Exchange Act of 1934 (15 U.S.C 78j(a)) is
amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and
(2) by adding at the end the following:
‘‘(2) Paragraph (1) of this subsection shall not apply to security
futures products.’’.
(h) RULEMAKING AUTHORITY TO ADDRESS DUPLICATIVE REGULATION OF DUAL REGISTRANTS.—Section 15(c)(3) of the Securities
Exchange Act of 1934 (15 U.S.C. 78o(c)(3)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(3)’’; and
(2) by adding at the end the following:
‘‘(B) Consistent with this title, the Commission, in consultation
with the Commodity Futures Trading Commission, shall issue such
rules, regulations, or orders as are necessary to avoid duplicative
or conflicting regulations applicable to any broker or dealer registered with the Commission pursuant to section 15(b) (except paragraph (11) thereof ), that is also registered with the Commodity
Futures Trading Commission pursuant to section 4f(a) of the
Commodity Exchange Act (except paragraph (2) thereof ), with
respect to the application of: (i) the provisions of section 8, section
15(c)(3), and section 17 of this title and the rules and regulations
thereunder related to the treatment of customer funds, securities,
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–433
or property, maintenance of books and records, financial reporting,
or other financial responsibility rules, involving security futures
products; and (ii) similar provisions of the Commodity Exchange
Act and rules and regulations thereunder involving security futures
products.’’.
(i) OBLIGATION TO ADDRESS DUPLICATIVE REGULATION OF DUAL
REGISTRANTS.—Section 6 of the Securities Exchange Act of 1934
(15 U.S.C. 78f ) is amended by inserting after subsection (h), as
added by subsection (a) of this section, the following:
‘‘(i) Consistent with this title, each national securities exchange
registered pursuant to subsection (a) of this section shall issue
such rules as are necessary to avoid duplicative or conflicting rules
applicable to any broker or dealer registered with the Commission
pursuant to section 15(b) (except paragraph (11) thereof ), that
is also registered with the Commodity Futures Trading Commission
pursuant to section 4f(a) of the Commodity Exchange Act (except
paragraph (2) thereof ), with respect to the application of—
(1) rules of such national securities exchange of the type
specified in section 15(c)(3)(B) involving security futures products; and
(2) similar rules of national securities exchanges registered
pursuant to section 6(g) and national securities associations
registered pursuant to section 15A(k) involving security futures
products.’’.
( j) OBLIGATION TO ADDRESS DUPLICATIVE REGULATION OF DUAL
REGISTRANTS.—Section 15A of the Securities Exchange Act of 1934
(15 U.S.C. 78o–3) is amended by inserting after subsection (k),
as added by section 203, the following:
‘‘(l) Consistent with this title, each national securities association registered pursuant to subsection (a) of this section shall issue
such rules as are necessary to avoid duplicative or conflicting rules
applicable to any broker or dealer registered with the Commission
pursuant to section 15(b) (except paragraph (11) thereof ), that
is also registered with the Commodity Futures Trading Commission
pursuant to section 4f(a) of the Commodity Exchange Act (except
paragraph (2) thereof ), with respect to the application of—
‘‘(1) rules of such national securities association of the
type specified in section 15(c)(3)(B) involving security futures
products; and
‘‘(2) similar rules of national securities associations registered pursuant to subsection (k) of this section and national
securities exchanges registered pursuant to section 6(g) involving security futures products.’’.
(k) OBLIGATION TO PUT IN PLACE PROCEDURES AND ADOPT
RULES.—
(1) NATIONAL SECURITIES ASSOCIATIONS.—Section 15A of
the Securities Exchange Act of 1934 (15 U.S.C. 78o–3) is amended by inserting after subsection (l), as added by subsection
( j) of this section, the following new subsection:
‘‘(m) PROCEDURES AND RULES FOR SECURITY FUTURE PRODUCTS.—A national securities association registered pursuant to subsection (a) shall, not later than 8 months after the date of the
enactment of the Commodity Futures Modernization Act of 2000,
implement the procedures specified in section 6(h)(5)(A) of this
title and adopt the rules specified in subparagraphs (B) and (C)
of section 6(h)(5) of this title.’’.
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114 STAT. 2763A–434
PUBLIC LAW 106–554—APPENDIX E
(2) NATIONAL SECURITIES EXCHANGES.—Section 6 of the
Securities Exchange Act of 1934 (15 U.S.C. 78f ) is amended
by inserting after subsection (i), as added by subsection (i)
of this section, the following new subsection:
‘‘( j) PROCEDURES AND RULES FOR SECURITY FUTURE PRODUCTS.—A national securities exchange registered pursuant to subsection (a) shall implement the procedures specified in section
6(h)(5)(A) of this title and adopt the rules specified in subparagraphs
(B) and (C) of section 6(h)(5) of this title not later than 8 months
after the date of receipt of a request from an alternative trading
system for such implementation and rules.’’.
(l) OBLIGATION TO ADDRESS SECURITY FUTURES PRODUCTS
TRADED ON FOREIGN EXCHANGES.—Section 6 of the Securities
Exchange Act of 1934 (15 U.S.C. 78f ) is amended by adding after
subsection ( j), as added by subsection (k) of this section, the following:
‘‘(k)(1) To the extent necessary or appropriate in the public
interest, to promote fair competition, and consistent with the promotion of market efficiency, innovation, and expansion of investment opportunities, the protection of investors, and the maintenance
of fair and orderly markets, the Commission and the Commodity
Futures Trading Commission shall jointly issue such rules, regulations, or orders as are necessary and appropriate to permit the
offer and sale of a security futures product traded on or subject
to the rules of a foreign board of trade to United States persons.
‘‘(2) The rules, regulations, or orders adopted under paragraph
(1) shall take into account, as appropriate, the nature and size
of the markets that the securities underlying the security futures
product reflect.’’.
SEC. 207. CLEARANCE AND SETTLEMENT.
Section 17A(b) of the Securities Exchange Act of 1934 (15
U.S.C. 78q–1(b)) is amended—
(1) in paragraph (3)(A), by inserting ‘‘and derivative agreements, contracts, and transactions’’ after ‘‘prompt and accurate
clearance and settlement of securities transactions’’;
(2) in paragraph (3)(F), by inserting ‘‘and, to the extent
applicable, derivative agreements, contracts, and transactions’’
after ‘‘designed to promote the prompt and accurate clearance
and settlement of securities transactions’’; and
(3) by inserting after paragraph (7), as added by section
206(d), the following:
‘‘(8) A registered clearing agency shall be permitted to provide
facilities for the clearance and settlement of any derivative agreements, contracts, or transactions that are excluded from the
Commodity Exchange Act, subject to the requirements of this section and to such rules and regulations as the Commission may
prescribe as necessary or appropriate in the public interest, for
the protection of investors, or otherwise in furtherance of the purposes of this title.’’.
SEC. 208. AMENDMENTS RELATING TO REGISTRATION AND DISCLOSURE ISSUES UNDER THE SECURITIES ACT OF 1933 AND
THE SECURITIES EXCHANGE ACT OF 1934.
(a) AMENDMENTS TO THE SECURITIES ACT OF 1933.—
(1) TREATMENT OF SECURITY FUTURES PRODUCTS.—Section
2(a) of the Securities Act of 1933 (15 U.S.C. 77b(a)) is
amended—
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–435
(A) in paragraph (1), by inserting ‘‘security future,’’
after ‘‘treasury stock,’’;
(B) in paragraph (3), by adding at the end the following:
‘‘Any offer or sale of a security futures product by or on
behalf of the issuer of the securities underlying the security
futures product, an affiliate of the issuer, or an underwriter, shall constitute a contract for sale of, sale of, offer
for sale, or offer to sell the underlying securities.’’; and
(C) by adding at the end the following:
‘‘(16) The terms ‘security future’, ‘narrow-based security
index’, and ‘security futures product’ have the same meanings
as provided in section 3(a)(55) of the Securities Exchange Act
of 1934.’’.
(2) EXEMPTION FROM REGISTRATION.—Section 3(a) of the
Securities Act of 1933 (15 U.S.C. 77c(a)) is amended by adding
at the end the following:
‘‘(14) Any security futures product that is—
‘‘(A) cleared by a clearing agency registered under section 17A of the Securities Exchange Act of 1934 or exempt
from registration under subsection (b)(7) of such section
17A; and
‘‘(B) traded on a national securities exchange or a
national securities association registered pursuant to section 15A(a) of the Securities Exchange Act of 1934.’’.
(3) CONFORMING AMENDMENT.—Section 12(a)(2) of the Securities Act of 1933 (15 U.S.C. 77l(a)(2)) is amended by striking
‘‘paragraph (2)’’ and inserting ‘‘paragraphs (2) and (14)’’.
(b) AMENDMENTS TO THE SECURITIES EXCHANGE ACT OF 1934.—
(1) EXEMPTION FROM REGISTRATION.—Section 12(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78l(a)) is amended
by adding at the end the following: ‘‘The provisions of this
subsection shall not apply in respect of a security futures product traded on a national securities exchange.’’.
(2) EXEMPTIONS FROM REPORTING REQUIREMENT.—Section
12(g)(5) of the Securities Exchange Act of 1934 (15 U.S.C.
78l(g)(5)) is amended by adding at the end the following: ‘‘For
purposes of this subsection, a security futures product shall
not be considered a class of equity security of the issuer of
the securities underlying the security futures product.’’.
(3) TRANSACTIONS BY CORPORATE INSIDERS.—Section 16 of
the Securities Exchange Act of 1934 (15 U.S.C. 78p) is amended
by adding at the end the following:
‘‘(f ) TREATMENT OF TRANSACTIONS IN SECURITY FUTURES PRODUCTS.—The provisions of this section shall apply to ownership of
and transactions in security futures products.’’.
SEC. 209. AMENDMENTS TO THE INVESTMENT COMPANY ACT OF 1940
AND THE INVESTMENT ADVISERS ACT OF 1940.
(a) DEFINITIONS UNDER THE INVESTMENT COMPANY ACT OF
1940 AND THE INVESTMENT ADVISERS ACT OF 1940.—
(1) Section 2(a)(36) of the Investment Company Act of
1940 (15 U.S.C. 80a–2(a)(36)) is amended by inserting ‘‘security
future,’’ after ‘‘treasury stock,’’.
(2) Section 202(a)(18) of the Investment Advisers Act of
1940 (15 U.S.C. 80b–2(a)(18)) is amended by inserting ‘‘security
future,’’ after ‘‘treasury stock,’’.
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114 STAT. 2763A–436
PUBLIC LAW 106–554—APPENDIX E
(3) Section 2(a) of the Investment Company Act of 1940
(15 U.S.C. 80a–2(a)) is amended by adding at the end the
following:
‘‘(52) The terms ‘security future’ and ‘narrow-based security
index’ have the same meanings as provided in section 3(a)(55)
of the Securities Exchange Act of 1934.’’.
(4) Section 202(a) of the Investment Advisers Act of 1940
(15 U.S.C. 80b–2(a)) is amended by adding at the end the
following:
‘‘(27) The terms ‘security future’ and ‘narrow-based security
index’ have the same meanings as provided in section 3(a)(55)
of the Securities Exchange Act of 1934.’’.
(b) OTHER PROVISION.—Section 203(b) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–3(b)) is amended—
(1) by striking ‘‘or’’ at the end of paragraph (4);
(2) by striking the period at the end of paragraph (5)
and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(6) any investment adviser that is registered with the
Commodity Futures Trading Commission as a commodity trading advisor whose business does not consist primarily of acting
as an investment adviser, as defined in section 202(a)(11) of
this title, and that does not act as an investment adviser
to—
‘‘(A) an investment company registered under title I
of this Act; or
‘‘(B) a company which has elected to be a business
development company pursuant to section 54 of title I
of this Act and has not withdrawn its election.’’.
SEC. 210. PREEMPTION OF STATE LAWS.
Section 28(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78bb(a)) is amended—
(1) in the last sentence—
(A) by inserting ‘‘subject to this title’’ after ‘‘privilege,
or other security’’; and
(B) by striking ‘‘any such instrument, if such
instrument is traded pursuant to rules and regulations
of a self-regulatory organization that are filed with the
Commission pursuant to section 19(b) of this Act’’ and
inserting ‘‘any such security’’; and
(2) by adding at the end the following new sentence: ‘‘No
provision of State law regarding the offer, sale, or distribution
of securities shall apply to any transaction in a security futures
product, except that this sentence shall not be construed as
limiting any State antifraud law of general applicability.’’.
Subtitle B—Amendments to the
Commodity Exchange Act
SEC. 251. JURISDICTION OF SECURITIES AND EXCHANGE COMMISSION;
OTHER PROVISIONS.
(a) JURISDICTION OF SECURITIES AND EXCHANGE COMMISSION.—
(1) Section 2(a)(1)(C) of the Commodity Exchange Act (7
U.S.C. 2a) (as redesignated by section 34(a)(2)(C)) is amended—
(A) in clause (ii)—
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–437
(i) by inserting ‘‘or register a derivatives transaction execution facility that trades or executes,’’ after
‘‘contract market in,’’;
(ii) by inserting after ‘‘contracts) for future delivery’’ the following: ‘‘, and no derivatives transaction
execution facility shall trade or execute such contracts
of sale (or options on such contracts) for future delivery,’’;
(iii) by striking ‘‘making such application demonstrates and the Commission expressly finds that the
specific contract (or option on such contract) with
respect to which the application has been made meets’’
and inserting ‘‘or the derivatives transaction execution
facility, and the applicable contract, meet’’; and
(iv) by striking subclause (III) of clause (ii) and
inserting the following:
‘‘(III) Such group or index of securities shall not constitute a narrow-based security index.’’;
(B) by striking clause (iii);
(C) by striking clause (iv) and inserting the following:
‘‘(iii) If, in its discretion, the Commission determines that
a stock index futures contract, notwithstanding its conformance
with the requirements in clause (ii) of this subparagraph, can
reasonably be used as a surrogate for trading a security (including a security futures product), it may, by order, require such
contract and any option thereon be traded and regulated as
security futures products as defined in section 3(a)(56) of the
Securities Exchange Act of 1934 and section 1a of this Act
subject to all rules and regulations applicable to security futures
products under this Act and the securities laws as defined
in section 3(a)(47) of the Securities Exchange Act of 1934.’’;
and
(D) by redesignating clause (v) as clause (iv).
(2) Section 2(a)(1) of the Commodity Exchange Act (7 U.S.C.
2, 2a, 4) is amended by adding at the end the following:
‘‘(D)(i) Notwithstanding any other provision of this Act, the
Securities and Exchange Commission shall have jurisdiction and
authority over security futures as defined in section 3(a)(55) of
the Securities Exchange Act of 1934, section 2(a)(16) of the Securities Act of 1933, section 2(a)(52) of the Investment Company Act
of 1940, and section 202(a)(27) of the Investment Advisers Act
of 1940, options on security futures, and persons effecting transactions in security futures and options thereon, and this Act shall
apply to and the Commission shall have jurisdiction with respect
to accounts, agreements (including any transaction which is of
the character of, or is commonly known to the trade as, an ‘option’,
‘privilege’, ‘indemnity’, ‘bid’, ‘offer’, ‘put’, ‘call’, ‘advance guaranty’,
or ‘decline guaranty’), contracts, and transactions involving, and
may designate a board of trade as a contract market in, or register
a derivatives transaction execution facility that trades or executes,
a security futures product as defined in section 1a of this Act:
Provided, however, That, except as provided in clause (vi) of this
subparagraph, no board of trade shall be designated as a contract
market with respect to, or registered as a derivatives transaction
execution facility for, any such contracts of sale for future delivery
unless the board of trade and the applicable contract meet the
following criteria:
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114 STAT. 2763A–438
PUBLIC LAW 106–554—APPENDIX E
‘‘(I) Except as otherwise provided in a rule, regulation,
or order issued pursuant to clause (v) of this subparagraph,
any security underlying the security future, including each
component security of a narrow-based security index, is registered pursuant to section 12 of the Securities Exchange Act
of 1934.
‘‘(II) If the security futures product is not cash settled,
the board of trade on which the security futures product is
traded has arrangements in place with a clearing agency registered pursuant to section 17A of the Securities Exchange
Act of 1934 for the payment and delivery of the securities
underlying the security futures product.
‘‘(III) Except as otherwise provided in a rule, regulation,
or order issued pursuant to clause (v) of this subparagraph,
the security future is based upon common stock and such
other equity securities as the Commission and the Securities
and Exchange Commission jointly determine appropriate.
‘‘(IV) The security futures product is cleared by a clearing
agency that has in place provisions for linked and coordinated
clearing with other clearing agencies that clear security futures
products, which permits the security futures product to be
purchased on a designated contract market, registered derivatives transaction execution facility, national securities exchange
registered under section 6(a) of the Securities Exchange Act
of 1934, or national securities association registered pursuant
to section 15A(a) of the Securities Exchange Act of 1934 and
offset on another designated contract market, registered derivatives transaction execution facility, national securities exchange
registered under section 6(a) of the Securities Exchange Act
of 1934, or national securities association registered pursuant
to section 15A(a) of the Securities Exchange Act of 1934.
‘‘(V) Only futures commission merchants, introducing brokers, commodity trading advisors, commodity pool operators
or associated persons subject to suitability rules comparable
to those of a national securities association registered pursuant
to section 15A(a) of the Securities Exchange Act of 1934 solicit,
accept any order for, or otherwise deal in any transaction
in or in connection with the security futures product.
‘‘(VI) The security futures product is subject to a prohibition
against dual trading in section 4j of this Act and the rules
and regulations thereunder or the provisions of section 11(a)
of the Securities Exchange Act of 1934 and the rules and
regulations thereunder, except to the extent otherwise permitted under the Securities Exchange Act of 1934 and the
rules and regulations thereunder.
‘‘(VII) Trading in the security futures product is not readily
susceptible to manipulation of the price of such security futures
product, nor to causing or being used in the manipulation
of the price of any underlying security, option on such security,
or option on a group or index including such securities;
‘‘(VIII) The board of trade on which the security futures
product is traded has procedures in place for coordinated
surveillance among such board of trade, any market on which
any security underlying the security futures product is traded,
and other markets on which any related security is traded
to detect manipulation and insider trading, except that, if the
board of trade is an alternative trading system, a national
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114 STAT. 2763A–439
securities association registered pursuant to section 15A(a) of
the Securities Exchange Act of 1934 or national securities
exchange registered pursuant to section 6(a) of the Securities
Exchange Act of 1934 of which such alternative trading system
is a member has in place such procedures.
‘‘(IX) The board of trade on which the security futures
product is traded has in place audit trails necessary or appropriate to facilitate the coordinated surveillance required in subclause (VIII), except that, if the board of trade is an alternative
trading system, a national securities association registered
pursuant to section 15A(a) of the Securities Exchange Act of
1934 or national securities exchange registered pursuant to
section 6(a) of the Securities Exchange Act of 1934 of which
such alternative trading system is a member has rules to
require such audit trails.
‘‘(X) The board of trade on which the security futures
product is traded has in place procedures to coordinate trading
halts between such board of trade and markets on which any
security underlying the security futures product is traded and
other markets on which any related security is traded, except
that, if the board of trade is an alternative trading system,
a national securities association registered pursuant to section
15A(a) of the Securities Exchange Act of 1934 or national
securities exchange registered pursuant to section 6(a) of the
Securities Exchange Act of 1934 of which such alternative
trading system is a member has rules to require such coordinated trading halts.
‘‘(XI) The margin requirements for a security futures product comply with the regulations prescribed pursuant to section
7(c)(2)(B) of the Securities Exchange Act of 1934, except that
nothing in this subclause shall be construed to prevent a board
of trade from requiring higher margin levels for a security
futures product when it deems such action to be necessary
or appropriate.
‘‘(ii) It shall be unlawful for any person to offer, to enter
into, to execute, to confirm the execution of, or to conduct any
office or business anywhere in the United States, its territories
or possessions, for the purpose of soliciting, or accepting any order
for, or otherwise dealing in, any transaction in, or in connection
with, a security futures product unless—
‘‘(I) the transaction is conducted on or subject to the rules
of a board of trade that—
‘‘(aa) has been designated by the Commission as a
contract market in such security futures product; or
‘‘(bb) is a registered derivatives transaction execution
facility for the security futures product that has provided
a certification with respect to the security futures product
pursuant to clause (vii);
‘‘(II) the contract is executed or consummated by, through,
or with a member of the contract market or registered derivatives transaction execution facility; and
‘‘(III) the security futures product is evidenced by a record
in writing which shows the date, the parties to such security
futures product and their addresses, the property covered, and
its price, and each contract market member or registered
derivatives transaction execution facility member shall keep
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114 STAT. 2763A–440
PUBLIC LAW 106–554—APPENDIX E
the record for a period of 3 years from the date of the transaction, or for a longer period if the Commission so directs,
which record shall at all times be open to the inspection of
any duly authorized representative of the Commission.
‘‘(iii)(I) Except as provided in subclause (II) but notwithstanding
any other provision of this Act, no person shall offer to enter
into, enter into, or confirm the execution of any option on a security
future.
‘‘(II) After 3 years after the date of the enactment of the
Commodity Futures Modernization Act of 2000, the Commission
and the Securities and Exchange Commission may by order jointly
determine to permit trading of options on any security future
authorized to be traded under the provisions of this Act and the
Securities Exchange Act of 1934.
‘‘(iv)(I) All relevant records of a futures commission merchant
or introducing broker registered pursuant to section 4f(a)(2), floor
broker or floor trader exempt from registration pursuant to section
4f(a)(3), associated person exempt from registration pursuant to
section 4k(6), or board of trade designated as a contract market
in a security futures product pursuant to section 5f shall be subject
to such reasonable periodic or special examinations by representatives of the Commission as the Commission deems necessary or
appropriate in the public interest, for the protection of investors,
or otherwise in furtherance of the purposes of this Act, and the
Commission, before conducting any such examination, shall give
notice to the Securities and Exchange Commission of the proposed
examination and consult with the Securities and Exchange Commission concerning the feasibility and desirability of coordinating the
examination with examinations conducted by the Securities and
Exchange Commission in order to avoid unnecessary regulatory
duplication or undue regulatory burdens for the registrant or board
of trade.
‘‘(II) The Commission shall notify the Securities and Exchange
Commission of any examination conducted of any futures commission merchant or introducing broker registered pursuant to section
4f(a)(2), floor broker or floor trader exempt from registration pursuant to section 4f(a)(3), associated person exempt from registration
pursuant to section 4k(6), or board of trade designated as a contract
market in a security futures product pursuant to section 5f, and,
upon request, furnish to the Securities and Exchange Commission
any examination report and data supplied to or prepared by the
Commission in connection with the examination.
‘‘(III) Before conducting an examination under subclause (I),
the Commission shall use the reports of examinations, unless the
information sought is unavailable in the reports, of any futures
commission merchant or introducing broker registered pursuant
to section 4f(a)(2), floor broker or floor trader exempt from registration pursuant to section 4f(a)(3), associated person exempt from
registration pursuant to section 4k(6), or board of trade designated
as a contract market in a security futures product pursuant to
section 5f that is made by the Securities and Exchange Commission,
a national securities association registered pursuant to section
15A(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78o–
3(a)), or a national securities exchange registered pursuant to section 6(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78f(a)).
‘‘(IV) Any records required under this subsection for a futures
commission merchant or introducing broker registered pursuant
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–441
to section 4f(a)(2), floor broker or floor trader exempt from registration pursuant to section 4f(a)(3), associated person exempt from
registration pursuant to section 4k(6), or board of trade designated
as a contract market in a security futures product pursuant to
section 5f, shall be limited to records with respect to accounts,
agreements, contracts, and transactions involving security futures
products.
‘‘(v)(I) The Commission and the Securities and Exchange
Commission, by rule, regulation, or order, may jointly modify the
criteria specified in subclause (I) or (III) of clause (i), including
the trading of security futures based on securities other than equity
securities, to the extent such modification fosters the development
of fair and orderly markets in security futures products, is necessary
or appropriate in the public interest, and is consistent with the
protection of investors.
‘‘(II) The Commission and the Securities and Exchange Commission, by order, may jointly exempt any person from compliance
with the criterion specified in clause (i)(IV) to the extent such
exemption fosters the development of fair and orderly markets
in security futures products, is necessary or appropriate in the
public interest, and is consistent with the protection of investors.
‘‘(vi)(I) Notwithstanding clauses (i) and (vii), until the compliance date, a board of trade shall not be required to meet the
criterion specified in clause (i)(IV).
‘‘(II) The Commission and the Securities and Exchange Commission shall jointly publish in the Federal Register a notice of the
compliance date no later than 165 days before the compliance
date.
‘‘(III) For purposes of this clause, the term ‘compliance date’
means the later of—
‘‘(aa) 180 days after the end of the first full calendar
month period in which the average aggregate comparable share
volume for all security futures products based on single equity
securities traded on all designated contract markets and registered derivatives transaction execution facilities equals or
exceeds 10 percent of the average aggregate comparable share
volume of options on single equity securities traded on all
national securities exchanges registered pursuant to section
6(a) of the Securities Exchange Act of 1934 and any national
securities associations registered pursuant to section 15A(a)
of such Act; or
‘‘(bb) 2 years after the date on which trading in any security
futures product commences under this Act.
‘‘(vii) It shall be unlawful for a board of trade to trade or
execute a security futures product unless the board of trade has
provided the Commission with a certification that the specific security futures product and the board of trade, as applicable, meet
the criteria specified in subclauses (I) through (XI) of clause (i),
except as otherwise provided in clause (vi).’’.
(b) MARGIN ON SECURITY FUTURES.—Section 2(a)(1)(C)(vi) of
the Commodity Exchange Act (7 U.S.C. 2a(vi)) (as redesignated
by section 34) is amended—
(1) by redesignating subclause (V) as subclause (VI); and
(2) by striking ‘‘(vi)(I)’’ and all that follows through subclause (IV) and inserting the following:
‘‘(v)(I) Notwithstanding any other provision of this Act,
any contract market in a stock index futures contract (or option
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114 STAT. 2763A–442
PUBLIC LAW 106–554—APPENDIX E
thereon) other than a security futures product, or any derivatives transaction execution facility on which such contract or
option is traded, shall file with the Board of Governors of
the Federal Reserve System any rule establishing or changing
the levels of margin (initial and maintenance) for such stock
index futures contract (or option thereon) other than security
futures products.
‘‘(II) The Board may at any time request any contract
market or derivatives transaction execution facility to set the
margin for any stock index futures contract (or option thereon),
other than for any security futures product, at such levels
as the Board in its judgment determines are appropriate to
preserve the financial integrity of the contract market or derivatives transaction execution facility, or its clearing system, or
to prevent systemic risk. If the contract market or derivatives
transaction execution facility fails to do so within the time
specified by the Board in its request, the Board may direct
the contract market or derivatives transaction execution facility
to alter or supplement the rules of the contract market or
derivatives transaction execution facility as specified in the
request.
‘‘(III) Subject to such conditions as the Board may determine, the Board may delegate any or all of its authority,
relating to margin for any stock index futures contract (or
option thereon), other than security futures products, under
this clause to the Commission.
‘‘(IV) It shall be unlawful for any futures commission merchant to, directly or indirectly, extend or maintain credit to
or for, or collect margin from any customer on any security
futures product unless such activities comply with the regulations prescribed pursuant to section 7(c)(2)(B) of the Securities
Exchange Act of 1934.
‘‘(V) Nothing in this clause shall supersede or limit the
authority granted to the Commission in section 8a(9) to direct
a contract market or registered derivatives transaction execution facility, on finding an emergency to exist, to raise temporary margin levels on any futures contract, or option on
the contract covered by this clause, or on any security futures
product.’’.
(c) DUAL TRADING.—Section 4j of the Commodity Exchange
Act (7 U.S.C. 6j) is amended to read as follows:
‘‘SEC. 4j. RESTRICTIONS ON DUAL TRADING IN SECURITY FUTURES
PRODUCTS ON DESIGNATED CONTRACT MARKETS AND
REGISTERED DERIVATIVES TRANSACTION EXECUTION
FACILITIES.
‘‘(a) The Commission shall issue regulations to prohibit the
privilege of dual trading in security futures products on each contract market and registered derivatives transaction execution facility. The regulations issued by the Commission under this section—
‘‘(1) shall provide that the prohibition of dual trading thereunder shall take effect upon issuance of the regulations; and
‘‘(2) shall provide exceptions, as the Commission determines
appropriate, to ensure fairness and orderly trading in security
futures product markets, including—
‘‘(A) exceptions for spread transactions and the correction of trading errors;
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–443
‘‘(B) allowance for a customer to designate in writing
not less than once annually a named floor broker to execute
orders for such customer, notwithstanding the regulations
to prohibit the privilege of dual trading required under
this section; and
‘‘(C) other measures reasonably designed to accommodate unique or special characteristics of individual boards
of trade or contract markets, to address emergency or
unusual market conditions, or otherwise to further the
public interest consistent with the promotion of market
efficiency, innovation, and expansion of investment
opportunities, the protection of investors, and with the
purposes of this section.
‘‘(b) As used in this section, the term ‘dual trading’ means
the execution of customer orders by a floor broker during the
same trading session in which the floor broker executes any trade
in the same contract market or registered derivatives transaction
execution facility for—
‘‘(1) the account of such floor broker;
‘‘(2) an account for which such floor broker has trading
discretion; or
‘‘(3) an account controlled by a person with whom such
floor broker has a relationship through membership in a broker
association.
‘‘(c) As used in this section, the term ‘broker association’ shall
include two or more contract market members or registered derivatives transaction execution facility members with floor trading privileges of whom at least one is acting as a floor broker, who—
‘‘(1) engage in floor brokerage activity on behalf of the
same employer,
‘‘(2) have an employer and employee relationship which
relates to floor brokerage activity,
‘‘(3) share profits and losses associated with their brokerage
or trading activity, or
‘‘(4) regularly share a deck of orders.’’.
(d) EXEMPTION FROM REGISTRATION FOR INVESTMENT ADVISERS.—Section 4m of the Commodity Exchange Act (7 U.S.C. 6m)
is amended by adding at the end the following:
‘‘(3) Subsection (1) of this section shall not apply to any commodity trading advisor that is registered with the Securities and
Exchange Commission as an investment adviser whose business
does not consist primarily of acting as a commodity trading advisor,
as defined in section 1a(6), and that does not act as a commodity
trading advisor to any investment trust, syndicate, or similar form
of enterprise that is engaged primarily in trading in any commodity
for future delivery on or subject to the rules of any contract market
or registered derivatives transaction execution facility.’’.
(e) EXEMPTION FROM INVESTIGATIONS OF MARKETS IN UNDERLYING SECURITIES.—Section 16 of the Commodity Exchange Act (7
U.S.C. 20) is amended by adding at the end the following:
‘‘(e) This section shall not apply to investigations involving
any security underlying a security futures product.’’.
(f ) RULEMAKING AUTHORITY TO ADDRESS DUPLICATIVE REGULATION OF DUAL REGISTRANTS.—Section 4d of the Commodity
Exchange Act (7 U.S.C. 6d) is amended—
(1) by inserting ‘‘(a)’’ before the first undesignated paragraph;
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114 STAT. 2763A–444
PUBLIC LAW 106–554—APPENDIX E
(2) by inserting ‘‘(b)’’ before the second undesignated paragraph; and
(3) by adding at the end the following:
‘‘(c) Consistent with this Act, the Commission, in consultation
with the Securities and Exchange Commission, shall issue such
rules, regulations, or orders as are necessary to avoid duplicative
or conflicting regulations applicable to any futures commission merchant registered with the Commission pursuant to section 4f(a)
(except paragraph (2) thereof ), that is also registered with the
Securities and Exchange Commission pursuant to section 15(b)
of the Securities Exchange Act (except paragraph (11) thereof ),
involving the application of—
‘‘(1) section 8, section 15(c)(3), and section 17 of the Securities Exchange Act of 1934 and the rules and regulations thereunder related to the treatment of customer funds, securities,
or property, maintenance of books and records, financial reporting or other financial responsibility rules (as defined in section
3(a)(40) of the Securities Exchange Act of 1934), involving security futures products; and
‘‘(2) similar provisions of this Act and the rules and regulations thereunder involving security futures products.’’.
(g) OBLIGATION TO ADDRESS DUPLICATIVE REGULATION OF DUAL
REGISTRANTS.—Section 17 of the Commodity Exchange Act (7 U.S.C.
21) is amended by adding at the end the following:
‘‘(r) Consistent with this Act, each futures association registered
under this section shall issue such rules as are necessary to avoid
duplicative or conflicting rules applicable to any futures commission
merchant registered with the Commission pursuant to section 4f(a)
of this Act (except paragraph (2) thereof ), that is also registered
with the Securities and Exchange Commission pursuant to section
15(b) of the Securities and Exchange Act of 1934 (except paragraph
(11) thereof ), with respect to the application of—
‘‘(1) rules of such futures association of the type specified
in section 4d(3) of this Act involving security futures products;
and
‘‘(2) similar rules of national securities associations registered pursuant to section 15A(a) of the Securities and
Exchange Act of 1934 involving security futures products.’’.
(h) OBLIGATION TO ADDRESS DUPLICATIVE REGULATION OF DUAL
REGISTRANTS.—Section 5c of the Commodity Exchange Act (as
added by section 114) is amended by adding at the end the following:
‘‘(f ) Consistent with this Act, each designated contract market
and registered derivatives transaction execution facility shall issue
such rules as are necessary to avoid duplicative or conflicting rules
applicable to any futures commission merchant registered with
the Commission pursuant to section 4f(a) of this Act (except paragraph (2) thereof ), that is also registered with the Securities and
Exchange Commission pursuant to section 15(b) of the Securities
Exchange Act of 1934 (except paragraph (11) thereof ) with respect
to the application of—
‘‘(1) rules of such designated contract market or registered
derivatives transaction execution facility of the type specified
in section 4d(3) of this Act involving security futures products;
and
‘‘(2) similar rules of national securities associations registered pursuant to section 15A(a) of the Securities Exchange
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–445
Act of 1934 and national securities exchanges registered pursuant to section 6(g) of such Act involving security futures products.’’.
(i) OBLIGATION TO ADDRESS SECURITY FUTURES PRODUCTS
TRADED ON FOREIGN EXCHANGES.—Section 2(a)(1) of the Commodity
Exchange Act (7 U.S.C. 2, 2a, and 4) is amended by adding at
the end the following:
‘‘(E)(i) To the extent necessary or appropriate in the public
interest, to promote fair competition, and consistent with promotion
of market efficiency, innovation, and expansion of investment
opportunities, the protection of investors, and the maintenance
of fair and orderly markets, the Commission and the Securities
and Exchange Commission shall jointly issue such rules, regulations, or orders as are necessary and appropriate to permit the
offer and sale of a security futures product traded on or subject
to the rules of a foreign board of trade to United States persons.
‘‘(ii) The rules, regulations, or orders adopted under clause
(i) shall take into account, as appropriate, the nature and size
of the markets that the securities underlying the security futures
product reflects.’’.
( j) SECURITY FUTURES PRODUCTS TRADED ON FOREIGN BOARDS
OF TRADE.—Section 2(a)(1) of the Commodity Exchange Act (7
U.S.C. 2, 2a, and 4) is amended by adding at the end the following:
‘‘(F)(i) Nothing in this Act is intended to prohibit a futures
commission merchant from carrying security futures products
traded on or subject to the rules of a foreign board of trade in
the accounts of persons located outside of the United States.
‘‘(ii) Nothing in this Act is intended to prohibit any eligible
contract participant located in the United States from purchasing
or carrying securities futures products traded on or subject to
the rules of a foreign board of trade, exchange, or market to the
same extent such person may be authorized to purchase or carry
other securities traded on a foreign board of trade, exchange, or
market so long as any underlying security for such security futures
products is traded principally on, by, or through any exchange
or market located outside the United States.’’.
SEC. 252. APPLICATION OF THE COMMODITY EXCHANGE ACT TO
NATIONAL SECURITIES EXCHANGES AND NATIONAL
SECURITIES ASSOCIATIONS THAT TRADE SECURITY
FUTURES.
(a) NOTICE DESIGNATION OF NATIONAL SECURITIES EXCHANGES
NATIONAL SECURITIES ASSOCIATIONS.—The Commodity
Exchange Act is amended by inserting after section 5e (7 U.S.C.
7b), as redesignated by section 21(1), the following:
AND
‘‘SEC. 5f. DESIGNATION OF SECURITIES EXCHANGES AND ASSOCIATIONS AS CONTRACT MARKETS.
‘‘(a) Any board of trade that is registered with the Securities
and Exchange Commission as a national securities exchange, is
a national securities association registered pursuant to section
15A(a) of the Securities Exchange Act of 1934, or is an alternative
trading system shall be a designated contract market in security
futures products if—
‘‘(1) such national securities exchange, national securities
association, or alternative trading system lists or trades no
other contracts of sale for future delivery, except for security
futures products;
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114 STAT. 2763A–446
PUBLIC LAW 106–554—APPENDIX E
‘‘(2) such national securities exchange, national securities
association, or alternative trading system files written notice
with the Commission in such form as the Commission, by
rule, may prescribe containing such information as the Commission, by rule, may prescribe as necessary or appropriate in
the public interest or for the protection of customers; and
‘‘(3) the registration of such national securities exchange,
national securities association, or alternative trading system
is not suspended pursuant to an order by the Securities and
Exchange Commission.
Such designation shall be effective contemporaneously with the
submission of notice, in written or electronic form, to the Commission.
‘‘(b)(1) A national securities exchange, national securities
association, or alternative trading system that is designated as
a contract market pursuant to section 5f shall be exempt from
the following provisions of this Act and the rules thereunder:
‘‘(A) Subsections (c), (e), and (g) of section 4c.
‘‘(B) Section 4j.
‘‘(C) Section 5.
‘‘(D) Section 5c.
‘‘(E) Section 6a.
‘‘(F) Section 8(d).
‘‘(G) Section 9(f ).
‘‘(H) Section 16.
‘‘(2) An alternative trading system that is a designated contract
market under this section shall be required to be a member of
a futures association registered under section 17 and shall be
exempt from any provision of this Act that would require such
alternative trading system to—
‘‘(A) set rules governing the conduct of subscribers other
than the conduct of such subscribers’ trading on such alternative trading system; or
‘‘(B) discipline subscribers other than by exclusion from
trading.
‘‘(3) To the extent that an alternative trading system is exempt
from any provision of this Act pursuant to paragraph (2) of this
subsection, the futures association registered under section 17 of
which the alternative trading system is a member shall set rules
governing the conduct of subscribers to the alternative trading
system and discipline the subscribers.
‘‘(4)(A) Except as provided in subparagraph (B), but notwithstanding any other provision of this Act, the Commission, by rule,
regulation, or order, may conditionally or unconditionally exempt
any designated contract market in security futures subject to the
designation requirement of this section from any provision of this
Act or of any rule or regulation thereunder, to the extent such
exemption is necessary or appropriate in the public interest and
is consistent with the protection of investors.
‘‘(B) The Commission shall, by rule or regulation, determine
the procedures under which an exemptive order under this section
is granted and may, in its sole discretion, decline to entertain
any application for an order of exemption under this section.
‘‘(C) An alternative trading system shall not be deemed to
be an exchange for any purpose as a result of the designation
of such alternative trading system as a contract market under
this section.’’.
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–447
(b) NOTICE REGISTRATION OF CERTAIN SECURITIES BROKERDEALERS; EXEMPTION FROM REGISTRATION FOR CERTAIN SECURITIES
BROKER-DEALERS.—Section 4f(a) of the Commodity Exchange Act
(7 U.S.C. 6f(a)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and
(2) by adding at the end the following:
‘‘(2) Notwithstanding paragraph (1), and except as provided
in paragraph (3), any broker or dealer that is registered with
the Securities and Exchange Commission shall be registered as
a futures commission merchant or introducing broker, as applicable,
if—
‘‘(A) the broker or dealer limits its solicitation of orders,
acceptance of orders, or execution of orders, or placing of orders
on behalf of others involving any contracts of sale of any
commodity for future delivery, on or subject to the rules of
any contract market or registered derivatives transaction execution facility to security futures products;
‘‘(B) the broker or dealer files written notice with the
Commission in such form as the Commission, by rule, may
prescribe containing such information as the Commission, by
rule, may prescribe as necessary or appropriate in the public
interest or for the protection of investors;
‘‘(C) the registration of the broker or dealer is not suspended pursuant to an order of the Securities and Exchange
Commission; and
‘‘(D) the broker or dealer is a member of a national securities association registered pursuant to section 15A(a) of the
Securities Exchange Act of 1934.
The registration shall be effective contemporaneously with the
submission of notice, in written or electronic form, to the Commission.
‘‘(3) A floor broker or floor trader shall be exempt from the
registration requirements of section 4e and paragraph (1) of this
subsection if—
‘‘(A) the floor broker or floor trader is a broker or dealer
registered with the Securities and Exchange Commission;
‘‘(B) the floor broker or floor trader limits its solicitation
of orders, acceptance of orders, or execution of orders, or placing
of orders on behalf of others involving any contracts of sale
of any commodity for future delivery, on or subject to the
rules of any contract market to security futures products; and
‘‘(C) the registration of the floor broker or floor trader
is not suspended pursuant to an order of the Securities and
Exchange Commission.’’.
(c) EXEMPTION FOR SECURITIES BROKER-DEALERS FROM CERTAIN PROVISIONS OF THE COMMODITY EXCHANGE ACT.—Section 4f(a)
of the Commodity Exchange Act (7 U.S.C. 6f(a)) is amended by
inserting after paragraph (3), as added by subsection (b) of this
section, the following:
‘‘(4)(A) A broker or dealer that is registered as a futures commission merchant or introducing broker pursuant to paragraph (2),
or that is a floor broker or floor trader exempt from registration
pursuant to paragraph (3), shall be exempt from the following
provisions of this Act and the rules thereunder:
‘‘(i) Subsections (b), (d), (e), and (g) of section 4c.
‘‘(ii) Sections 4d, 4e, and 4h.
‘‘(iii) Subsections (b) and (c) of this section.
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114 STAT. 2763A–448
PUBLIC LAW 106–554—APPENDIX E
‘‘(iv) Section 4j.
‘‘(v) Section 4k(1).
‘‘(vi) Section 4p.
‘‘(vii) Section 6d.
‘‘(viii) Subsections (d) and (g) of section 8.
‘‘(ix) Section 16.
‘‘(B)(i) Except as provided in clause (ii) of this subparagraph,
but notwithstanding any other provision of this Act, the Commission, by rule, regulation, or order, may conditionally or unconditionally exempt any broker or dealer subject to the registration requirement of paragraph (2), or any broker or dealer exempt from registration pursuant to paragraph (3), from any provision of this Act
or of any rule or regulation thereunder, to the extent the exemption
is necessary or appropriate in the public interest and is consistent
with the protection of investors.
‘‘(ii) The Commission shall, by rule or regulation, determine
the procedures under which an exemptive order under this section
shall be granted and may, in its sole discretion, decline to entertain
any application for an order of exemption under this section.
‘‘(C)(i) A broker or dealer that is registered as a futures commission merchant or introducing broker pursuant to paragraph (2)
or an associated person thereof, or that is a floor broker or floor
trader exempt from registration pursuant to paragraph (3), shall
not be required to become a member of any futures association
registered under section 17.
‘‘(ii) No futures association registered under section 17 shall
limit its members from carrying an account, accepting an order,
or transacting business with a broker or dealer that is registered
as a futures commission merchant or introducing broker pursuant
to paragraph (2) or an associated person thereof, or that is a
floor broker or floor trader exempt from registration pursuant to
paragraph (3).’’.
(d) EXEMPTIONS FOR ASSOCIATED PERSONS OF SECURITIES
BROKER-DEALERS.—Section 4k of the Commodity Exchange Act (7
U.S.C. 6k), is amended by inserting after paragraph (4), as added
by subsection (c) of this section, the following:
‘‘(5) Any associated person of a broker or dealer that is registered with the Securities and Exchange Commission, and who
limits its solicitation of orders, acceptance of orders, or execution
of orders, or placing of orders on behalf of others involving any
contracts of sale of any commodity for future delivery or any option
on such a contract, on or subject to the rules of any contract
market or registered derivatives transaction execution facility to
security futures products, shall be exempt from the following provisions of this Act and the rules thereunder:
‘‘(A) Subsections (b), (d), (e), and (g) of section 4c.
‘‘(B) Sections 4d, 4e, and 4h.
‘‘(C) Subsections (b) and (c) of section 4f.
‘‘(D) Section 4j.
‘‘(E) Paragraph (1) of this section.
‘‘(F) Section 4p.
‘‘(G) Section 6d.
‘‘(H) Subsections (d) and (g) of section 8.
‘‘(I) Section 16.’’.
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–449
SEC. 253. NOTIFICATION OF INVESTIGATIONS AND ENFORCEMENT
ACTIONS.
(a) Section 8(a) of the Commodity Exchange Act (7 U.S.C.
12(a)) is amended by adding at the end the following:
‘‘(3) The Commission shall provide the Securities and Exchange
Commission with notice of the commencement of any proceeding
and a copy of any order entered by the Commission against any
futures commission merchant or introducing broker registered
pursuant to section 4f(a)(2), any floor broker or floor trader exempt
from registration pursuant to section 4f(a)(3), any associated person
exempt from registration pursuant to section 4k(6), or any board
of trade designated as a contract market pursuant to section 5f.’’.
(b) Section 6 of the Commodity Exchange Act (7 U.S.C. 8,
9, 9a, 9b, 13b, 15) is amended by adding at the end the following:
‘‘(g) The Commission shall provide the Securities and Exchange
Commission with notice of the commencement of any proceeding
and a copy of any order entered by the Commission pursuant
to subsections (c) and (d) of this section against any futures commission merchant or introducing broker registered pursuant to section
4f(a)(2), any floor broker or floor trader exempt from registration
pursuant to section 4f(a)(3), any associated person exempt from
registration pursuant to section 4k(6), or any board of trade designated as a contract market pursuant to section 5f.’’.
(c) Section 6c of the Commodity Exchange Act (7 U.S.C. 13a–
1) is amended by adding at the end the following:
‘‘(h) The Commission shall provide the Securities and Exchange
Commission with notice of the commencement of any proceeding
and a copy of any order entered by the Commission against any
futures commission merchant or introducing broker registered
pursuant to section 4f(a)(2), any floor broker or floor trader exempt
from registration pursuant to section 4f(a)(3), any associated person
exempt from registration pursuant to section 4k(6), or any board
of trade designated as a contract market pursuant to section 5f.’’.
TITLE III—LEGAL CERTAINTY FOR
SWAP AGREEMENTS
SEC. 301. SWAP AGREEMENT.
(a) AMENDMENT.—Title II of the Gramm-Leach-Bliley Act (Public Law 106–102) is amended by inserting after section 206 the
following new sections:
‘‘SEC. 206A. SWAP AGREEMENT.
‘‘(a) IN GENERAL.—Except as provided in subsection (b), as
used in this section, the term ‘swap agreement’ means any agreement, contract, or transaction between eligible contract participants
(as defined in section 1a(12) of the Commodity Exchange Act as
in effect on the date of the enactment of this section), other than
a person that is an eligible contract participant under section
1a(12)(C) of the Commodity Exchange Act, the material terms of
which (other than price and quantity) are subject to individual
negotiation, and that—
‘‘(1) is a put, call, cap, floor, collar, or similar option of
any kind for the purchase or sale of, or based on the value
of, one or more interest or other rates, currencies, commodities,
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114 STAT. 2763A–450
PUBLIC LAW 106–554—APPENDIX E
indices, quantitative measures, or other financial or economic
interests or property of any kind;
‘‘(2) provides for any purchase, sale, payment or delivery
(other than a dividend on an equity security) that is dependent
on the occurrence, non-occurrence, or the extent of the occurrence of an event or contingency associated with a potential
financial, economic, or commercial consequence;
‘‘(3) provides on an executory basis for the exchange, on
a fixed or contingent basis, of one or more payments based
on the value or level of one or more interest or other rates,
currencies, commodities, securities, instruments of indebtedness, indices, quantitative measures, or other financial or economic interests or property of any kind, or any interest therein
or based on the value thereof, and that transfers, as between
the parties to the transaction, in whole or in part, the financial
risk associated with a future change in any such value or
level without also conveying a current or future direct or
indirect ownership interest in an asset (including any enterprise
or investment pool) or liability that incorporates the financial
risk so transferred, including any such agreement, contract,
or transaction commonly known as an interest rate swap,
including a rate floor, rate cap, rate collar, cross-currency rate
swap, basis swap, currency swap, equity index swap, equity
swap, debt index swap, debt swap, credit spread, credit default
swap, credit swap, weather swap, or commodity swap;
‘‘(4) provides for the purchase or sale, on a fixed or contingent basis, of any commodity, currency, instrument, interest,
right, service, good, article, or property of any kind; or
‘‘(5) is any combination or permutation of, or option on,
any agreement, contract, or transaction described in any of
paragraphs (1) through (4).
‘‘(b) EXCLUSIONS.—The term ‘swap agreement’ does not
include—
‘‘(1) any put, call, straddle, option, or privilege on any
security, certificate of deposit, or group or index of securities,
including any interest therein or based on the value thereof;
‘‘(2) any put, call, straddle, option, or privilege entered
into on a national securities exchange registered pursuant to
section 6(a) of the Securities Exchange Act of 1934 relating
to foreign currency;
‘‘(3) any agreement, contract, or transaction providing for
the purchase or sale of one or more securities on a fixed
basis;
‘‘(4) any agreement, contract, or transaction providing for
the purchase or sale of one or more securities on a contingent
basis, unless such agreement, contract, or transaction predicates such purchase or sale on the occurrence of a bona fide
contingency that might reasonably be expected to affect or
be affected by the creditworthiness of a party other than a
party to the agreement, contract, or transaction;
‘‘(5) any note, bond, or evidence of indebtedness that is
a security as defined in section 2(a)(1) of the Securities Act
of 1933 or section 3(a)(10) of the Securities Exchange Act of
1934; or
‘‘(6) any agreement, contract, or transaction that is—
‘‘(A) based on a security; and
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114 STAT. 2763A–451
‘‘(B) entered into directly or through an underwriter
(as defined in section 2(a) of the Securities Act of 1933)
by the issuer of such security for the purposes of raising
capital, unless such agreement, contract, or transaction
is entered into to manage a risk associated with capital
raising.
‘‘(c) RULE OF CONSTRUCTION REGARDING MASTER AGREEMENTS.—As used in this section, the term ‘swap agreement’ shall
be construed to include a master agreement that provides for an
agreement, contract, or transaction that is a swap agreement pursuant to subsections (a) and (b), together with all supplements to
any such master agreement, without regard to whether the master
agreement contains an agreement, contract, or transaction that
is not a swap agreement pursuant to subsections (a) and (b), except
that the master agreement shall be considered to be a swap agreement only with respect to each agreement, contract, or transaction
under the master agreement that is a swap agreement pursuant
to subsections (a) and (b).
‘‘SEC. 206B. SECURITY-BASED SWAP AGREEMENT.
‘‘As used in this section, the term ‘security-based swap agreement’ means a swap agreement (as defined in section 206A) of
which a material term is based on the price, yield, value, or volatility of any security or any group or index of securities, or any
interest therein.
‘‘SEC. 206C. NON-SECURITY-BASED SWAP AGREEMENT.
‘‘As used in this section, the term ‘non-security-based swap
agreement’ means any swap agreement (as defined in section 206A)
that is not a security-based swap agreement (as defined in section
206B).’’.
(b) SECURITY DEFINITION.—As used in the amendment made
by subsection (a), the term ‘‘security’’ has the same meaning as
in section 2(a)(1) of the Securities Act of 1933 or section 3(a)(10)
of the Securities Exchange Act of 1934.
SEC. 302. AMENDMENTS TO THE SECURITIES ACT OF 1933.
(a) ENFORCEMENT FOCUS.—The Securities Act of 1933 is amended by inserting after section 2 (15 U.S.C. 77b) the following new
section:
‘‘SEC. 2A. SWAP AGREEMENTS.
‘‘(a) NON-SECURITY-BASED SWAP AGREEMENTS.—The definition
of ‘security’ in section 2(a)(1) of this title does not include any
non-security-based swap agreement (as defined in section 206C
of the Gramm-Leach-Bliley Act).
‘‘(b) SECURITY-BASED SWAP AGREEMENTS.—
‘‘(1) The definition of ‘security’ in section 2(a)(1) of this
title does not include any security-based swap agreement (as
defined in section 206B of the Gramm-Leach-Bliley Act).
‘‘(2) The Commission is prohibited from registering, or
requiring, recommending, or suggesting, the registration under
this title of any security-based swap agreement (as defined
in section 206B of the Gramm-Leach-Bliley Act). If the Commission becomes aware that a registrant has filed a registration
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114 STAT. 2763A–452
PUBLIC LAW 106–554—APPENDIX E
statement with respect to such a swap agreement, the Commission shall promptly so notify the registrant. Any such registration statement with respect to such a swap agreement shall
be void and of no force or effect.
‘‘(3) The Commission is prohibited from—
‘‘(A) promulgating, interpreting, or enforcing rules; or
‘‘(B) issuing orders of general applicability;
under this title in a manner that imposes or specifies reporting
or recordkeeping requirements, procedures, or standards as
prophylactic measures against fraud, manipulation, or insider
trading with respect to any security-based swap agreement
(as defined in section 206B of the Gramm-Leach-Bliley Act).
‘‘(4) References in this title to the ‘purchase’ or ‘sale’ of
a security-based swap agreement shall be deemed to mean
the execution, termination (prior to its scheduled maturity
date), assignment, exchange, or similar transfer or conveyance
of, or extinguishing of rights or obligations under, a securitybased swap agreement (as defined in section 206B of the
Gramm-Leach-Bliley Act), as the context may require.’’.
(b) ANTI-FRAUD AND ANTI-MANIPULATION ENFORCEMENT
AUTHORITY.—Section 17(a) of the Securities Act of 1933 (15 U.S.C.
77q(a)) is amended to read as follows:
‘‘(a) It shall be unlawful for any person in the offer or sale
of any securities or any security-based swap agreement (as defined
in section 206B of the Gramm-Leach-Bliley Act) by the use of
any means or instruments of transportation or communication in
interstate commerce or by use of the mails, directly or indirectly—
‘‘(1) to employ any device, scheme, or artifice to defraud,
or
‘‘(2) to obtain money or property by means of any untrue
statement of a material fact or any omission to state a material
fact necessary in order to make the statements made, in light
of the circumstances under which they were made, not misleading; or
‘‘(3) to engage in any transaction, practice, or course of
business which operates or would operate as a fraud or deceit
upon the purchaser.’’.
(c) LIMITATION.—Section 17 of the Securities Act of 1933 is
amended by adding at the end the following new subsection:
‘‘(d) The authority of the Commission under this section with
respect to security-based swap agreements (as defined in section
206B of the Gramm-Leach-Bliley Act) shall be subject to the restrictions and limitations of section 2A(b) of this title.’’.
SEC. 303. AMENDMENTS TO THE SECURITIES EXCHANGE ACT OF 1934.
(a) ENFORCEMENT FOCUS.—The Securities Exchange Act of 1934
is amended by inserting after section 3 (15 U.S.C. 78c) the following
new section:
‘‘SEC. 3A. SWAP AGREEMENTS.
‘‘(a) NON-SECURITY-BASED SWAP AGREEMENTS.—The definition
of ‘security’ in section 3(a)(10) of this title does not include any
non-security-based swap agreement (as defined in section 206C
of the Gramm-Leach-Bliley Act).
‘‘(b) SECURITY-BASED SWAP AGREEMENTS.—
‘‘(1) The definition of ‘security’ in section 3(a)(10) of this
title does not include any security-based swap agreement (as
defined in section 206B of the Gramm-Leach-Bliley Act).
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–453
‘‘(2) The Commission is prohibited from registering, or
requiring, recommending, or suggesting, the registration under
this title of any security-based swap agreement (as defined
in section 206B of the Gramm-Leach-Bliley Act). If the Commission becomes aware that a registrant has filed a registration
application with respect to such a swap agreement, the Commission shall promptly so notify the registrant. Any such registration with respect to such a swap agreement shall be void
and of no force or effect.
‘‘(3) Except as provided in section 16(a) with respect to
reporting requirements, the Commission is prohibited from—
‘‘(A) promulgating, interpreting, or enforcing rules; or
‘‘(B) issuing orders of general applicability;
under this title in a manner that imposes or specifies reporting
or recordkeeping requirements, procedures, or standards as
prophylactic measures against fraud, manipulation, or insider
trading with respect to any security-based swap agreement
(as defined in section 206B of the Gramm-Leach-Bliley Act).
‘‘(4) References in this title to the ‘purchase’ or ‘sale’ of
a security-based swap agreement (as defined in section 206B
of the Gramm-Leach-Bliley Act) shall be deemed to mean the
execution, termination (prior to its scheduled maturity date),
assignment, exchange, or similar transfer or conveyance of,
or extinguishing of rights or obligations under, a security-based
swap agreement, as the context may require.’’.
(b) ANTI-FRAUD, ANTI-MANIPULATION ENFORCEMENT AUTHORITY.—Paragraphs (2) through (5) of section 9(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78i(a)(2)–(5)) are amended to
read as follows:
‘‘(2) To effect, alone or with one or more other persons, a
series of transactions in any security registered on a national securities exchange or in connection with any security-based swap agreement (as defined in section 206B of the Gramm-Leach-Bliley Act)
with respect to such security creating actual or apparent active
trading in such security, or raising or depressing the price of such
security, for the purpose of inducing the purchase or sale of such
security by others.
‘‘(3) If a dealer or broker, or other person selling or offering
for sale or purchasing or offering to purchase the security or a
security-based swap agreement (as defined in section 206B of the
Gramm-Leach-Bliley Act) with respect to such security, to induce
the purchase or sale of any security registered on a national securities exchange or any security-based swap agreement (as defined
in section 206B of the Gramm-Leach-Bliley Act) with respect to
such security by the circulation or dissemination in the ordinary
course of business of information to the effect that the price of
any such security will or is likely to rise or fall because of market
operations of any one or more persons conducted for the purpose
of raising or depressing the price of such security.
‘‘(4) If a dealer or broker, or the person selling or offering
for sale or purchasing or offering to purchase the security or a
security-based swap agreement (as defined in section 206B of the
Gramm-Leach-Bliley Act) with respect to such security, to make,
regarding any security registered on a national securities exchange
or any security-based swap agreement (as defined in section 206B
of the Gramm-Leach-Bliley Act) with respect to such security, for
the purpose of inducing the purchase or sale of such security or
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114 STAT. 2763A–454
PUBLIC LAW 106–554—APPENDIX E
such security-based swap agreement, any statement which was
at the time and in the light of the circumstances under which
it was made, false or misleading with respect to any material
fact, and which he knew or had reasonable ground to believe was
so false or misleading.
‘‘(5) For a consideration, received directly or indirectly from
a dealer or broker, or other person selling or offering for sale
or purchasing or offering to purchase the security or a securitybased swap agreement (as defined in section 206B of the GrammLeach-Bliley Act) with respect to such security, to induce the purchase of any security registered on a national securities exchange
or any security-based swap agreement (as defined in section 206B
of the Gramm-Leach-Bliley Act) with respect to such security by
the circulation or dissemination of information to the effect that
the price of any such security will or is likely to rise or fall
because of the market operations of any one or more persons conducted for the purpose of raising or depressing the price of such
security.’’.
(c) LIMITATION.—Section 9 of the Securities Exchange Act of
1934 is amended by adding at the end the following new subsection:
‘‘(i) The authority of the Commission under this section with
respect to security-based swap agreements (as defined in section
206B of the Gramm-Leach-Bliley Act) shall be subject to the restrictions and limitations of section 3A(b) of this title.’’.
(d) REGULATIONS ON THE USE OF MANIPULATIVE AND DECEPTIVE
DEVICES.—Section 10 of the Securities Exchange Act of 1934 (15
U.S.C. 78j) is amended—
(1) in subsection (b), by inserting ‘‘or any securities-based
swap agreement (as defined in section 206B of the GrammLeach-Bliley Act),’’ before ‘‘any manipulative or deceptive
device’’; and
(2) by adding at the end the following:
‘‘Rules promulgated under subsection (b) that prohibit fraud,
manipulation, or insider trading (but not rules imposing or specifying reporting or recordkeeping requirements, procedures, or standards as prophylactic measures against fraud, manipulation, or
insider trading), and judicial precedents decided under subsection
(b) and rules promulgated thereunder that prohibit fraud, manipulation, or insider trading, shall apply to security-based swap agreements (as defined in section 206B of the Gramm-Leach-Bliley Act)
to the same extent as they apply to securities. Judicial precedents
decided under section 17(a) of the Securities Act of 1933 and sections
9, 15, 16, 20, and 21A of this title, and judicial precedents decided
under applicable rules promulgated under such sections, shall apply
to security-based swap agreements (as defined in section 206B
of the Gramm-Leach-Bliley Act) to the same extent as they apply
to securities.’’.
(e) BROKER, DEALER ANTI-FRAUD, ANTI-MANIPULATION
ENFORCEMENT AUTHORITY.—Section 15(c)(1) of the Securities
Exchange Act of 1934 (15 U.S.C. 78o(c)(1)) is amended to read
as follows:
‘‘(c)(1)(A) No broker or dealer shall make use of the mails
or any means or instrumentality of interstate commerce to effect
any transaction in, or to induce or attempt to induce the purchase
or sale of, any security (other than commercial paper, bankers’
acceptances, or commercial bills) otherwise than on a national securities exchange of which it is a member, or any security-based
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–455
swap agreement (as defined in section 206B of the Gramm-LeachBliley Act), by means of any manipulative, deceptive, or other
fraudulent device or contrivance.
‘‘(B) No municipal securities dealer shall make use of the mails
or any means or instrumentality of interstate commerce to effect
any transaction in, or to induce or attempt to induce the purchase
or sale of, any municipal security or any security-based swap agreement (as defined in section 206B of the Gramm-Leach-Bliley Act)
involving a municipal security by means of any manipulative, deceptive, or other fraudulent device or contrivance.
‘‘(C) No government securities broker or government securities
dealer shall make use of the mails or any means or instrumentality
of interstate commerce to effect any transaction in, or to induce
or to attempt to induce the purchase or sale of, any government
security or any security-based swap agreement (as defined in section
206B of the Gramm-Leach-Bliley Act) involving a government security by means of any manipulative, deceptive, or other fraudulent
device or contrivance.’’.
(f ) LIMITATION.—Section 15 of the Securities Exchange Act
of 1934 (15 U.S.C. 78o) is amended by adding at the end the
following new subsection:
‘‘(i) The authority of the Commission under this section with
respect to security-based swap agreements (as defined in section
206B of the Gramm-Leach-Bliley Act) shall be subject to the restrictions and limitations of section 3A(b) of this title.’’.
(g) ANTI-INSIDER TRADING ENFORCEMENT AUTHORITY.—Subsections (a) and (b) of section 16 (15 U.S.C. 78p(a), (b)) of the
Securities Exchange of 1934 are amended to read as follows:
‘‘(a) Every person who is directly or indirectly the beneficial
owner of more than 10 per centum of any class of any equity
security (other than an exempted security) which is registered
pursuant to section 12 of this title, or who is a director or an
officer of the issuer of such security, shall file, at the time of
the registration of such security on a national securities exchange
or by the effective date of a registration statement filed pursuant
to section 12(g) of this title, or within ten days after he becomes
such beneficial owner, director, or officer, a statement with the
Commission (and, if such security is registered on a national securities exchange, also with the exchange) of the amount of all equity
securities of such issuer of which he is the beneficial owner, and
within ten days after the close of each calendar month thereafter,
if there has been a change in such ownership or if such person
shall have purchased or sold a security-based swap agreement
(as defined in section 206B of the Gramm-Leach-Bliley Act) involving such equity security during such month, shall file with the
Commission (and if such security is registered on a national securities exchange, shall also file with the exchange), a statement
indicating his ownership at the close of the calendar month and
such changes in his ownership and such purchases and sales of
such security-based swap agreements as have occurred during such
calendar month.
‘‘(b) For the purpose of preventing the unfair use of information
which may have been obtained by such beneficial owner, director,
or officer by reason of his relationship to the issuer, any profit
realized by him from any purchase and sale, or any sale and
purchase, of any equity security of such issuer (other than an
exempted security) or a security-based swap agreement (as defined
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114 STAT. 2763A–456
PUBLIC LAW 106–554—APPENDIX E
in section 206B of the Gramm-Leach-Bliley Act) involving any such
equity security within any period of less than six months, unless
such security or security-based swap agreement was acquired in
good faith in connection with a debt previously contracted, shall
inure to and be recoverable by the issuer, irrespective of any
intention on the part of such beneficial owner, director, or officer
in entering into such transaction of holding the security or securitybased swap agreement purchased or of not repurchasing the security
or security-based swap agreement sold for a period exceeding six
months. Suit to recover such profit may be instituted at law or
in equity in any court of competent jurisdiction by the issuer,
or by the owner of any security of the issuer in the name and
in behalf of the issuer if the issuer shall fail or refuse to bring
such suit within sixty days after request or shall fail diligently
to prosecute the same thereafter; but no such suit shall be brought
more than two years after the date such profit was realized. This
subsection shall not be construed to cover any transaction where
such beneficial owner was not such both at the time of the purchase
and sale, or the sale and purchase, of the security or securitybased swap agreement (as defined in section 206B of the GrammLeach-Bliley Act) involved, or any transaction or transactions which
the Commission by rules and regulations may exempt as not comprehended within the purpose of this subsection.’’.
(h) LIMITATION.—Section 16 of the Securities Exchange Act
of 1934 (15 U.S.C. 78p) is amended by adding at the end the
following new subsection:
‘‘(g) The authority of the Commission under this section with
respect to security-based swap agreements (as defined in section
206B of the Gramm-Leach-Bliley Act) shall be subject to the restrictions and limitations of section 3A(b) of this title.’’.
(i) MATERIAL NONPUBLIC INFORMATION.—Section 20(d) of the
Securities Exchange Act of 1934 (15 U.S.C. 78t(d)) is amended
to read as follows:
‘‘(d) Wherever communicating, or purchasing or selling a security while in possession of, material nonpublic information would
violate, or result in liability to any purchaser or seller of the
security under any provisions of this title, or any rule or regulation
thereunder, such conduct in connection with a purchase or sale
of a put, call, straddle, option, privilege or security-based swap
agreement (as defined in section 206B of the Gramm-Leach-Bliley
Act) with respect to such security or with respect to a group or
index of securities including such security, shall also violate and
result in comparable liability to any purchaser or seller of that
security under such provision, rule, or regulation.’’.
( j) LIMITATION.—Section 20 of the Securities Exchange Act
of 1934 (15 U.S.C. 78t) is amended by adding at the end the
following new subsection:
‘‘(f ) The authority of the Commission under this section with
respect to security-based swap agreements (as defined in section
206B of the Gramm-Leach-Bliley Act) shall be subject to the restrictions and limitations of section 3A(b) of this title.’’.
(k) CIVIL PENALTIES.—Section 21A(a)(1) of the Securities
Exchange Act of 1934 (15 U.S.C. 78u–1(a)(1)) is amended by inserting after ‘‘purchasing or selling a security’’ the following: ‘‘or security-based swap agreement (as defined in section 206B of the
Gramm-Leach-Bliley Act)’’.
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114 STAT. 2763A–457
(l) LIMITATION.—Section 21A of the Securities Exchange Act
of 1934 (15 U.S.C. 78u–1) is amended by adding at the end the
following new subsection:
‘‘(g) The authority of the Commission under this section with
respect to security-based swap agreements (as defined in section
206B of the Gramm-Leach-Bliley Act) shall be subject to the restrictions and limitations of section 3A(b) of this title.’’.
SEC. 304. SAVINGS PROVISIONS.
Nothing in this Act or the amendments made by this Act
shall be construed as finding or implying that any swap agreement
is or is not a security for any purpose under the securities laws.
Nothing in this Act or the amendments made by this Act shall
be construed as finding or implying that any swap agreement
is or is not a futures contract or commodity option for any purpose
under the Commodity Exchange Act.
TITLE IV—REGULATORY
RESPONSIBILITY FOR BANK PRODUCTS
SEC. 401. SHORT TITLE.
This title may be cited as the ‘‘Legal Certainty for Bank Products Act of 2000’’.
SEC. 402. DEFINITIONS.
(a) BANK.—In this title, the term ‘‘bank’’ means—
(1) any depository institution (as defined in section 3(c)
of the Federal Deposit Insurance Act);
(2) any foreign bank or branch or agency of a foreign
bank (each as defined in section 1(b) of the International Banking Act of 1978);
(3) any Federal or State credit union (as defined in section
101 of the Federal Credit Union Act);
(4) any corporation organized under section 25A of the
Federal Reserve Act;
(5) any corporation operating under section 25 of the Federal Reserve Act;
(6) any trust company; or
(7) any subsidiary of any entity described in paragraph
(1) through (6) of this subsection, if the subsidiary is regulated
as if the subsidiary were part of the entity and is not a broker
or dealer (as such terms are defined in section 3 of the Securities Exchange Act of 1934) or a futures commission merchant
(as defined in section 1a(20) of the Commodity Exchange Act).
(b) IDENTIFIED BANKING PRODUCT.—In this title, the term
‘‘identified banking product’’ shall have the same meaning as in
paragraphs (1) through (5) of section 206(a) of the Gramm-LeachBliley Act, except that in applying such section for purposes of
this title—
(1) the term ‘‘bank’’ shall have the meaning given in subsection (a) of this section; and
(2) the term ‘‘qualified investor’’ means eligible contract
participant (as defined in section 1a(12) of the Commodity
Exchange Act, as in effect on the date of the enactment of
the Commodity Futures Modernization Act of 2000).
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114 STAT. 2763A–458
PUBLIC LAW 106–554—APPENDIX E
(c) HYBRID INSTRUMENT.—In this title, the term ‘‘hybrid
instrument’’ means an identified banking product not excluded by
section 403 of this Act, offered by a bank, having one or more
payments indexed to the value, level, or rate of, or providing for
the delivery of, one or more commodities (as defined in section
1a(4) of the Commodity Exchange Act).
(d) COVERED SWAP AGREEMENT.—In this title, the term ‘‘covered
swap agreement’’ means a swap agreement (as defined in section
206(b) of the Gramm-Leach-Bliley Act), including a credit or equity
swap, based on a commodity other than an agricultural commodity
enumerated in section 1a(4) of the Commodity Exchange Act if—
(1) the swap agreement—
(A) is entered into only between persons that are
eligible contract participants (as defined in section 1a(12)
of the Commodity Exchange Act, as in effect on the date
of the enactment of the Commodity Futures Modernization
Act of 2000) at the time the persons enter into the swap
agreement; and
(B) is not entered into or executed on a trading facility
(as defined in section 1a(33) of the Commodity Exchange
Act); or
(2) the swap agreement—
(A) is entered into or executed on an electronic trading
facility (as defined in section 1a(10) of the Commodity
Exchange Act);
(B) is entered into on a principal-to-principal basis
between parties trading for their own accounts or as
described in section 1a(12)(B)(ii) of the Commodity
Exchange Act;
(C) is entered into only between persons that are
eligible contract participants as described in subparagraph
(A), (B)(ii), or (C) of section 1a(12) of the Commodity
Exchange Act, as in effect on the date of the enactment
of the Commodity Futures Modernization Act of 2000, at
the time the persons enter into the swap agreement; and
(D) is an agreement, contract or transaction in an
excluded commodity (as defined in section 1a(13) of the
Commodity Exchange Act).
SEC. 403. EXCLUSION OF IDENTIFIED BANKING PRODUCTS COMMONLY
OFFERED ON OR BEFORE DECEMBER 5, 2000.
No provision of the Commodity Exchange Act shall apply to,
and the Commodity Futures Trading Commission shall not exercise
regulatory authority with respect to, an identified banking product
if—
(1) an appropriate banking agency certifies that the product
has been commonly offered, entered into, or provided in the
United States by any bank on or before December 5, 2000,
under applicable banking law; and
(2) the product was not prohibited by the Commodity
Exchange Act and not regulated by the Commodity Futures
Trading Commission as a contract of sale of a commodity for
future delivery (or an option on such a contract) or an option
on a commodity, on or before December 5, 2000.
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–459
SEC. 404. EXCLUSION OF CERTAIN IDENTIFIED BANKING PRODUCTS
OFFERED BY BANKS AFTER DECEMBER 5, 2000.
No provision of the Commodity Exchange Act shall apply to,
and the Commodity Futures Trading Commission shall not exercise
regulatory authority with respect to, an identified banking product
which had not been commonly offered, entered into, or provided
in the United States by any bank on or before December 5, 2000,
under applicable banking law if—
(1) the product has no payment indexed to the value, level,
or rate of, and does not provide for the delivery of, any commodity (as defined in section 1a(4) of the Commodity Exchange
Act); or
(2) the product or commodity is otherwise excluded from
the Commodity Exchange Act.
SEC. 405. EXCLUSION OF CERTAIN OTHER IDENTIFIED BANKING PRODUCTS.
(a) IN GENERAL.—No provision of the Commodity Exchange
Act shall apply to, and the Commodity Futures Trading Commission
shall not exercise regulatory authority with respect to, a banking
product if the product is a hybrid instrument that is predominantly
a banking product under the predominance test set forth in subsection (b).
(b) PREDOMINANCE TEST.—A hybrid instrument shall be considered to be predominantly a banking product for purposes of this
section if—
(1) the issuer of the hybrid instrument receives payment
in full of the purchase price of the hybrid instrument substantially contemporaneously with delivery of the hybrid
instrument;
(2) the purchaser or holder of the hybrid instrument is
not required to make under the terms of the instrument, or
any arrangement referred to in the instrument, any payment
to the issuer in addition to the purchase price referred to
in paragraph (1), whether as margin, settlement payment, or
otherwise during the life of the hybrid instrument or at maturity;
(3) the issuer of the hybrid instrument is not subject by
the terms of the instrument to mark-to-market margining
requirements; and
(4) the hybrid instrument is not marketed as a contract
of sale of a commodity for future delivery (or option on such
a contract) subject to the Commodity Exchange Act.
(c) MARK-TO-MARKET MARGINING REQUIREMENT.—For purposes
of subsection (b)(3), mark-to-market margining requirements shall
not include the obligation of an issuer of a secured debt instrument
to increase the amount of collateral held in pledge for the benefit
of the purchaser of the secured debt instrument to secure the
repayment obligations of the issuer under the secured debt
instrument.
SEC. 406. ADMINISTRATION OF THE PREDOMINANCE TEST.
(a) IN GENERAL.—No provision of the Commodity Exchange
Act shall apply to, and the Commodity Futures Trading Commission
shall not regulate, a hybrid instrument, unless the Commission
determines, by or under a rule issued in accordance with this
section, that—
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114 STAT. 2763A–460
PUBLIC LAW 106–554—APPENDIX E
(1) the action is necessary and appropriate in the public
interest;
(2) the action is consistent with the Commodity Exchange
Act and the purposes of the Commodity Exchange Act; and
(3) the hybrid instrument is not predominantly a banking
product under the predominance test set forth in section 405(b)
of this Act.
(b) CONSULTATION.—Before commencing a rulemaking or making a determination pursuant to a rule issued under this title,
the Commodity Futures Trading Commission shall consult with
and seek the concurrence of the Board of Governors of the Federal
Reserve System concerning—
(1) the nature of the hybrid instrument; and
(2) the history, purpose, extent, and appropriateness of
the regulation of the hybrid instrument under the Commodity
Exchange Act and under appropriate banking laws.
(c) OBJECTION TO COMMISSION REGULATION.—
(1) FILING OF PETITION FOR REVIEW.—The Board of Governors of the Federal Reserve System may obtain review of
any rule or determination referred to in subsection (a) in the
United States Court of Appeals for the District of Columbia
Circuit by filing in the court, not later than 60 days after
the date of publication of the rule or determination, a written
petition requesting that the rule or determination be set aside.
Any proceeding to challenge any such rule or determination
shall be expedited by the court.
(2) TRANSMITTAL OF PETITION AND RECORD.—A copy of a
petition described in paragraph (1) shall be transmitted as
soon as possible by the Clerk of the court to an officer or
employee of the Commodity Futures Trading Commission designated for that purpose. Upon receipt of the petition, the
Commission shall file with the court the rule or determination
under review and any documents referred to therein, and any
other relevant materials prescribed by the court.
(3) EXCLUSIVE JURISDICTION.—On the date of the filing
of a petition under paragraph (1), the court shall have jurisdiction, which shall become exclusive on the filing of the materials
set forth in paragraph (2), to affirm and enforce or to set
aside the rule or determination at issue.
(4) STANDARD OF REVIEW.—The court shall determine to
affirm and enforce or set aside a rule or determination of
the Commodity Futures Trading Commission under this section, based on the determination of the court as to whether—
(A) the subject product is predominantly a banking
product; and
(B) making the provision or provisions of the Commodity Exchange Act at issue applicable to the subject
instrument is appropriate in light of the history, purpose,
and extent of regulation under such Act, this title, and
under the appropriate banking laws, giving deference neither to the views of the Commodity Futures Trading
Commission nor the Board of Governors of the Federal
Reserve System.
(5) JUDICIAL STAY.—The filing of a petition by the Board
pursuant to paragraph (1) shall operate as a judicial stay,
until the date on which the determination of the court is
final (including any appeal of the determination).
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PUBLIC LAW 106–554—APPENDIX E
114 STAT. 2763A–461
(6) OTHER AUTHORITY TO CHALLENGE.—Any aggrieved party
may seek judicial review pursuant to section 6(c) of the
Commodity Exchange Act of a determination or rulemaking
by the Commodity Futures Trading Commission under this
section.
SEC. 407. EXCLUSION OF COVERED SWAP AGREEMENTS.
No provision of the Commodity Exchange Act (other than section 5b of such Act with respect to the clearing of covered swap
agreements) shall apply to, and the Commodity Futures Trading
Commission shall not exercise regulatory authority with respect
to, a covered swap agreement offered, entered into, or provided
by a bank.
SEC. 408. CONTRACT ENFORCEMENT.
(a) HYBRID INSTRUMENTS.—No hybrid instrument shall be void,
voidable, or unenforceable, and no party to a hybrid instrument
shall be entitled to rescind, or recover any payment made with
respect to, a hybrid instrument under any provision of Federal
or State law, based solely on the failure of the hybrid instrument
to satisfy the predominance test set forth in section 405(b) of
this Act or to comply with the terms or conditions of an exemption
or exclusion from any provision of the Commodity Exchange Act
or any regulation of the Commodity Futures Trading Commission.
(b) COVERED SWAP AGREEMENTS.—No covered swap agreement
shall be void, voidable, or unenforceable, and no party to a covered
swap agreement shall be entitled to rescind, or recover any payment
made with respect to, a covered swap agreement under any provision of Federal or State law, based solely on the failure of the
covered swap agreement to comply with the terms or conditions
of an exemption or exclusion from any provision of the Commodity
Exchange Act or any regulation of the Commodity Futures Trading
Commission.
(c) PREEMPTION.—This title shall supersede and preempt the
application of any State or local law that prohibits or regulates
gaming or the operation of bucket shops (other than antifraud
provisions of general applicability) in the case of—
(1) a hybrid instrument that is predominantly a banking
product; or
(2) a covered swap agreement.
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–463
APPENDIX F—H.R. 5661
SECTION 1. SHORT TITLE; AMENDMENTS TO SOCIAL SECURITY ACT;
REFERENCES TO OTHER ACTS; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Medicare,
Medicaid, and SCHIP Benefits Improvement and Protection Act
of 2000’’.
(b) AMENDMENTS TO SOCIAL SECURITY ACT.—Except as otherwise specifically provided, whenever in this Act an amendment
is expressed in terms of an amendment to or repeal of a section
or other provision, the reference shall be considered to be made
to that section or other provision of the Social Security Act.
(c) REFERENCES TO OTHER ACTS.—In this Act:
(1) BALANCED BUDGET ACT OF 1997.—The term ‘‘BBA’’ means
the Balanced Budget Act of 1997 (Public Law 105–33; 111
Stat. 251).
(2) MEDICARE, MEDICAID, AND SCHIP BALANCED BUDGET
REFINEMENT ACT OF 1999.—The term ‘‘BBRA’’ means the Medicare, Medicaid, and SCHIP Balanced Budget Refinement Act
of 1999 (Appendix F, 113 Stat. 1501A–321), as enacted into
law by section 1000(a)(6) of Public Law 106–113.
(d) TABLE OF CONTENTS.—The table of contents of this Act
is as follows:
Sec. 1. Short title; amendments to Social Security Act; references to other Acts;
table of contents.
TITLE I—MEDICARE BENEFICIARY IMPROVEMENTS
Sec.
Sec.
Sec.
Sec.
Sec.
101.
102.
103.
104.
105.
Subtitle A—Improved Preventive Benefits
Coverage of biennial screening pap smear and pelvic exams.
Coverage of screening for glaucoma.
Coverage of screening colonoscopy for average risk individuals.
Modernization of screening mammography benefit.
Coverage of medical nutrition therapy services for beneficiaries with diabetes or a renal disease.
Subtitle B—Other Beneficiary Improvements
Sec. 111. Acceleration of reduction of beneficiary copayment for hospital outpatient
department services.
Sec. 112. Preservation of coverage of drugs and biologicals under part B of the
medicare program.
Sec. 113. Elimination of time limitation on medicare benefits for immunosuppressive drugs.
Sec. 114. Imposition of billing limits on drugs.
Sec. 115. Waiver of 24-month waiting period for medicare coverage of individuals
disabled with amyotrophic lateral sclerosis (ALS).
Subtitle C—Demonstration Projects and Studies
Sec. 121. Demonstration project for disease management for severely chronically ill
medicare beneficiaries.
Sec. 122. Cancer prevention and treatment demonstration for ethnic and racial minorities.
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114 STAT. 2763A–464
PUBLIC LAW 106–554—APPENDIX F
Sec. 123. Study on medicare coverage of routine thyroid screening.
Sec. 124. MedPAC study on consumer coalitions.
Sec. 125. Study on limitation on State payment for medicare cost-sharing affecting
access to services for qualified medicare beneficiaries.
Sec. 126. Studies on preventive interventions in primary care for older Americans.
Sec. 127. MedPAC study and report on medicare coverage of cardiac and pulmonary rehabilitation therapy services.
Sec. 128. Lifestyle modification program demonstration.
TITLE II—RURAL HEALTH CARE IMPROVEMENTS
Subtitle A—Critical Access Hospital Provisions
Sec. 201. Clarification of no beneficiary cost-sharing for clinical diagnostic laboratory tests furnished by critical access hospitals.
Sec. 202. Assistance with fee schedule payment for professional services under allinclusive rate.
Sec. 203. Exemption of critical access hospital swing beds from SNF PPS.
Sec. 204. Payment in critical access hospitals for emergency room on-call physicians.
Sec. 205. Treatment of ambulance services furnished by certain critical access hospitals.
Sec. 206. GAO study on certain eligibility requirements for critical access hospitals.
Subtitle B—Other Rural Hospitals Provisions
Sec. 211. Treatment of rural disproportionate share hospitals.
Sec. 212. Option to base eligibility for medicare dependent, small rural hospital
program on discharges during two of the three most recently audited
cost reporting periods.
Sec. 213. Extension of option to use rebased target amounts to all sole community
hospitals.
Sec. 214. MedPAC analysis of impact of volume on per unit cost of rural hospitals
with psychiatric units.
Sec.
Sec.
Sec.
Sec.
Sec.
221.
222.
223.
224.
225.
Subtitle C—Other Rural Provisions
Assistance for providers of ambulance services in rural areas.
Payment for certain physician assistant services.
Revision of medicare reimbursement for telehealth services.
Expanding access to rural health clinics.
MedPAC study on low-volume, isolated rural health care providers.
TITLE III—PROVISIONS RELATING TO PART A
Subtitle A—Inpatient Hospital Services
Sec. 301. Revision of acute care hospital payment update for 2001.
Sec. 302. Additional modification in transition for indirect medical education (IME)
percentage adjustment.
Sec. 303. Decrease in reductions for disproportionate share hospital (DSH) payments.
Sec. 304. Wage index improvements.
Sec. 305. Payment for inpatient services of rehabilitation hospitals.
Sec. 306. Payment for inpatient services of psychiatric hospitals.
Sec. 307. Payment for inpatient services of long-term care hospitals.
Subtitle B—Adjustments to PPS Payments for Skilled Nursing Facilities
Sec. 311. Elimination of reduction in skilled nursing facility (SNF) market basket
update in 2001.
Sec. 312. Increase in nursing component of PPS Federal rate.
Sec. 313. Application of SNF consolidated billing requirement limited to part A covered stays.
Sec. 314. Adjustment of rehabilitation RUGs to correct anomaly in payment rates.
Sec. 315. Establishment of process for geographic reclassification.
Subtitle C—Hospice Care
Sec. 321. Five percent increase in payment base.
Sec. 322. Clarification of physician certification.
Sec. 323. MedPAC report on access to, and use of, hospice benefit.
Subtitle D—Other Provisions
Sec. 331. Relief from medicare part A late enrollment penalty for group buy-in for
State and local retirees.
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–465
TITLE IV—PROVISIONS RELATING TO PART B
Subtitle A—Hospital Outpatient Services
Sec. 401. Revision of hospital outpatient PPS payment update.
Sec. 402. Clarifying process and standards for determining eligibility of devices for
pass-through payments under hospital outpatient PPS.
Sec. 403. Application of OPD PPS transitional corridor payments to certain hospitals that did not submit a 1996 cost report.
Sec. 404. Application of rules for determining provider-based status for certain entities.
Sec. 405. Treatment of children’s hospitals under prospective payment system.
Sec. 406. Inclusion of temperature monitored cryoablation in transitional passthrough for certain medical devices, drugs, and biologicals under OPD
PPS.
Subtitle B—Provisions Relating to Physicians’ Services
Sec. 411. GAO studies relating to physicians’ services.
Sec. 412. Physician group practice demonstration.
Sec. 413. Study on enrollment procedures for groups that retain independent contractor physicians.
Subtitle C—Other Services
Sec. 421. One-year extension of moratorium on therapy caps; report on standards
for supervision of physical therapy assistants.
Sec. 422. Update in renal dialysis composite rate.
Sec. 423. Payment for ambulance services.
Sec. 424. Ambulatory surgical centers.
Sec. 425. Full update for durable medical equipment.
Sec. 426. Full update for orthotics and prosthetics.
Sec. 427. Establishment of special payment provisions and requirements for prosthetics and certain custom-fabricated orthotic items.
Sec. 428. Replacement of prosthetic devices and parts.
Sec. 429. Revised part B payment for drugs and biologicals and related services.
Sec. 430. Contrast enhanced diagnostic procedures under hospital prospective payment system.
Sec. 431. Qualifications for community mental health centers.
Sec. 432. Payment of physician and nonphysician services in certain Indian providers.
Sec. 433. GAO study on coverage of surgical first assisting services of certified registered nurse first assistants.
Sec. 434. MedPAC study and report on medicare reimbursement for services provided by certain providers.
Sec. 435. MedPAC study and report on medicare coverage of services provided by
certain nonphysician providers.
Sec. 436. GAO study and report on the costs of emergency and medical transportation services.
Sec. 437. GAO studies and reports on medicare payments.
Sec. 438. MedPAC study on access to outpatient pain management services.
TITLE V—PROVISIONS RELATING TO PARTS A AND B
Subtitle A—Home Health Services
Sec. 501. One-year additional delay in application of 15 percent reduction on payment limits for home health services.
Sec. 502. Restoration of full home health market basket update for home health
services for fiscal year 2001.
Sec. 503. Temporary two-month periodic interim payment.
Sec. 504. Use of telehealth in delivery of home health services.
Sec. 505. Study on costs to home health agencies of purchasing nonroutine medical
supplies.
Sec. 506. Treatment of branch offices; GAO study on supervision of home health
care provided in isolated rural areas.
Sec. 507. Clarification of the homebound definition under the medicare home
health benefit.
Sec. 508. Temporary increase for home health services furnished in a rural area.
Subtitle B—Direct Graduate Medical Education
Sec. 511. Increase in floor for direct graduate medical education payments.
Sec. 512. Change in distribution formula for Medicare+Choice-related nursing and
allied health education costs.
Subtitle C—Changes in Medicare Coverage and Appeals Process
Sec. 521. Revisions to medicare appeals process.
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114 STAT. 2763A–466
PUBLIC LAW 106–554—APPENDIX F
Sec. 522. Revisions to medicare coverage process.
Subtitle D—Improving Access to New Technologies
Sec. 531. Reimbursement improvements for new clinical laboratory tests and durable medical equipment.
Sec. 532. Retention of HCPCS level III codes.
Sec. 533. Recognition of new medical technologies under inpatient hospital PPS.
Subtitle E—Other Provisions
Increase in reimbursement for bad debt.
Treatment of certain physician pathology services under medicare.
Extension of advisory opinion authority.
Change in annual MedPAC reporting.
Development of patient assessment instruments.
GAO report on impact of the Emergency Medical Treatment and Active
Labor Act (EMTALA) on hospital emergency departments.
Sec. 547. Clarification of application of temporary payment increases for 2001.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
541.
542.
543.
544.
545.
546.
TITLE VI—PROVISIONS RELATING TO PART C (MEDICARE+CHOICE
PROGRAM) AND OTHER MEDICARE MANAGED CARE PROVISIONS
Sec.
Sec.
Sec.
Sec.
Sec.
601.
602.
603.
604.
605.
Sec. 606.
Sec. 607.
Sec. 608.
Sec. 609.
Subtitle A—Medicare+Choice Payment Reforms
Increase in minimum payment amount.
Increase in minimum percentage increase.
Phase-in of risk adjustment.
Transition to revised Medicare+Choice payment rates.
Revision of payment rates for ESRD patients enrolled in Medicare+Choice
plans.
Permitting premium reductions as additional benefits under
Medicare+Choice plans.
Full implementation of risk adjustment for congestive heart failure enrollees for 2001.
Expansion of application of Medicare+Choice new entry bonus.
Report on inclusion of certain costs of the Department of Veterans Affairs
and military facility services in calculating Medicare+Choice payment
rates.
Subtitle B—Other Medicare+Choice Reforms
Sec. 611. Payment of additional amounts for new benefits covered during a contract
term.
Sec. 612. Restriction on implementation of significant new regulatory requirements
midyear.
Sec. 613. Timely approval of marketing material that follows model marketing language.
Sec. 614. Avoiding duplicative regulation.
Sec. 615. Election of uniform local coverage policy for Medicare+Choice plan covering multiple localities.
Sec. 616. Eliminating health disparities in Medicare+Choice program.
Sec. 617. Medicare+Choice program compatibility with employer or union group
health plans.
Sec. 618. Special medigap enrollment antidiscrimination provision for certain beneficiaries.
Sec. 619. Restoring effective date of elections and changes of elections of
Medicare+Choice plans.
Sec. 620. Permitting ESRD beneficiaries to enroll in another Medicare+Choice plan
if the plan in which they are enrolled is terminated.
Sec. 621. Providing choice for skilled nursing facility services under the
Medicare+Choice program.
Sec. 622. Providing for accountability of Medicare+Choice plans.
Sec. 623. Increased civil money penalty for Medicare+Choice organizations that terminate contracts mid-year.
Subtitle C—Other Managed Care Reforms
Sec. 631. One-year extension of social health maintenance organization (SHMO)
demonstration project.
Sec. 632. Revised terms and conditions for extension of medicare community nursing organization (CNO) demonstration project.
Sec. 633. Extension of medicare municipal health services demonstration projects.
Sec. 634. Service area expansion for medicare cost contracts during transition period.
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–467
TITLE VII—MEDICAID
Sec. 701. DSH payments.
Sec. 702. New prospective payment system for Federally-qualified health centers
and rural health clinics.
Sec. 703. Streamlined approval of continued State-wide section 1115 medicaid
waivers.
Sec. 704. Medicaid county-organized health systems.
Sec. 705. Deadline for issuance of final regulation relating to medicaid upper payment limits.
Sec. 706. Alaska FMAP.
Sec. 707. One-year extension of welfare-to-work transition.
Sec. 708. Additional entities qualified to determine medicaid presumptive eligibility
for low-income children.
Sec. 709. Development of uniform QMB/SLMB application form.
Sec. 710. Technical corrections.
TITLE VIII—STATE CHILDREN’S HEALTH INSURANCE PROGRAM
Sec. 801. Special rule for redistribution and availability of unused fiscal year 1998
and 1999 SCHIP allotments.
Sec. 802. Authority to pay medicaid expansion SCHIP costs from title XXI appropriation.
Sec. 803. Application of medicaid child presumptive eligibility provisions.
TITLE IX—OTHER PROVISIONS
Subtitle A—PACE Program
Sec. 901. Extension of transition for current waivers.
Sec. 902. Continuing of certain operating arrangements permitted.
Sec. 903. Flexibility in exercising waiver authority.
Subtitle B—Outreach to Eligible Low-Income Medicare Beneficiaries
Sec. 911. Outreach on availability of medicare cost-sharing assistance to eligible
low-income medicare beneficiaries.
Subtitle C—Maternal and Child Health Block Grant
Sec. 921. Increase in authorization of appropriations for the maternal and child
health services block grant.
Subtitle D—Diabetes
Sec. 931. Increase in appropriations for special diabetes programs for type I diabetes and Indians.
Sec. 932. Appropriations for Ricky Ray Hemophilia Relief Fund.
Subtitle E—Information on Nursing Facility Staffing
Sec. 941. Posting of information on nursing facility staffing.
Subtitle F—Adjustment of Multiemployer Plan Benefits Guaranteed
Sec. 951. Multiemployer plan benefits guaranteed.
TITLE I—MEDICARE BENEFICIARY
IMPROVEMENTS
Subtitle A—Improved Preventive Benefits
SEC. 101. COVERAGE OF BIENNIAL SCREENING PAP SMEAR AND PELVIC EXAMS.
(a) IN GENERAL.—
(1) BIENNIAL SCREENING PAP SMEAR.—Section 1861(nn)(1)
(42 U.S.C. 1395x(nn)(1)) is amended by striking ‘‘3 years’’ and
inserting ‘‘2 years’’.
(2) BIENNIAL SCREENING PELVIC EXAM.—Section 1861(nn)(2)
(42 U.S.C. 1395x(nn)(2)) is amended by striking ‘‘3 years’’ and
inserting ‘‘2 years’’.
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114 STAT. 2763A–468
PUBLIC LAW 106–554—APPENDIX F
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply to items and services furnished on or after July
1, 2001.
SEC. 102. COVERAGE OF SCREENING FOR GLAUCOMA.
(a) COVERAGE.—Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)) is
amended—
(1) by striking ‘‘and’’ at the end of subparagraph (S);
(2) by inserting ‘‘and’’ at the end of subparagraph (T);
and
(3) by adding at the end the following:
‘‘(U) screening for glaucoma (as defined in subsection (uu))
for individuals determined to be at high risk for glaucoma,
individuals with a family history of glaucoma and individuals
with diabetes;’’.
(b) SERVICES DESCRIBED.—Section 1861 (42 U.S.C. 1395x) is
amended by adding at the end the following new subsection:
‘‘Screening for Glaucoma
‘‘(uu) The term ‘screening for glaucoma’ means a dilated eye
examination with an intraocular pressure measurement, and a
direct ophthalmoscopy or a slit-lamp biomicroscopic examination
for the early detection of glaucoma which is furnished by or under
the direct supervision of an optometrist or ophthalmologist who
is legally authorized to furnish such services under State law (or
the State regulatory mechanism provided by State law) of the
State in which the services are furnished, as would otherwise be
covered if furnished by a physician or as an incident to a physician’s
professional service, if the individual involved has not had such
an examination in the preceding year.’’.
(c) CONFORMING AMENDMENT.—Section 1862(a)(1)(F) (42 U.S.C.
1395y(a)(1)(F)) is amended—
(1) by striking ‘‘and,’’; and
(2) by adding at the end the following: ‘‘and, in the case
of screening for glaucoma, which is performed more frequently
than is provided under section 1861(uu),’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to services furnished on or after January 1, 2002.
SEC. 103. COVERAGE OF SCREENING COLONOSCOPY FOR AVERAGE
RISK INDIVIDUALS.
(a) IN GENERAL.—Section 1861(pp) (42 U.S.C. 1395x(pp)) is
amended—
(1) in paragraph (1)(C), by striking ‘‘In the case of an
individual at high risk for colorectal cancer, screening
colonoscopy’’ and inserting ‘‘Screening colonoscopy’’; and
(2) in paragraph (2), by striking ‘‘In paragraph (1)(C), an’’
and inserting ‘‘An’’.
(b) FREQUENCY LIMITS FOR SCREENING COLONOSCOPY.—Section
1834(d) (42 U.S.C. 1395m(d)) is amended—
(1) in paragraph (2)(E)(ii), by inserting before the period
at the end the following: ‘‘or, in the case of an individual
who is not at high risk for colorectal cancer, if the procedure
is performed within the 119 months after a previous screening
colonoscopy’’; and
(2) in paragraph (3)—
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PUBLIC LAW 106–554—APPENDIX F
(A) in the heading by striking ‘‘FOR
114 STAT. 2763A–469
INDIVIDUALS AT
HIGH RISK FOR COLORECTAL CANCER’’;
(B) in subparagraph (A), by striking ‘‘for individuals
at high risk for colorectal cancer (as defined in section
1861(pp)(2))’’; and
(C) in subparagraph (E), by inserting before the period
at the end the following: ‘‘or for other individuals if the
procedure is performed within the 119 months after a
previous screening colonoscopy or within 47 months after
a previous screening flexible sigmoidoscopy’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to colorectal cancer screening services provided on or
after July 1, 2001.
SEC. 104. MODERNIZATION OF SCREENING MAMMOGRAPHY BENEFIT.
(a) INCLUSION IN PHYSICIAN FEE SCHEDULE.—Section 1848( j)(3)
(42 U.S.C. 1395w–4( j)(3)) is amended by inserting ‘‘(13),’’ after
‘‘(4),’’.
(b) CONFORMING AMENDMENT.—Section 1834(c) (42 U.S.C.
1395m(c)) is amended to read as follows:
‘‘(c) PAYMENT AND STANDARDS FOR SCREENING MAMMOGRAPHY.—
‘‘(1) IN GENERAL.—With respect to expenses incurred for
screening mammography (as defined in section 1861(jj)), payment may be made only—
‘‘(A) for screening mammography conducted consistent
with the frequency permitted under paragraph (2); and
‘‘(B) if the screening mammography is conducted by
a facility that has a certificate (or provisional certificate)
issued under section 354 of the Public Health Service Act.
‘‘(2) FREQUENCY COVERED.—
‘‘(A) IN GENERAL.—Subject to revision by the Secretary
under subparagraph (B)—
‘‘(i) no payment may be made under this part
for screening mammography performed on a woman
under 35 years of age;
‘‘(ii) payment may be made under this part for
only one screening mammography performed on a
woman over 34 years of age, but under 40 years of
age; and
‘‘(iii) in the case of a woman over 39 years of
age, payment may not be made under this part for
screening mammography performed within 11 months
following the month in which a previous screening
mammography was performed.
‘‘(B) REVISION OF FREQUENCY.—
‘‘(i) REVIEW.—The Secretary, in consultation with
the Director of the National Cancer Institute, shall
review periodically the appropriate frequency for
performing screening mammography, based on age and
such other factors as the Secretary believes to be pertinent.
‘‘(ii) REVISION OF FREQUENCY.—The Secretary, taking into consideration the review made under clause
(i), may revise from time to time the frequency with
which screening mammography may be paid for under
this subsection.’’.
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114 STAT. 2763A–470
PUBLIC LAW 106–554—APPENDIX F
(c) EFFECTIVE DATE.—The amendments made by subsections
(a) and (b) shall apply with respect to screening mammographies
furnished on or after January 1, 2002.
(d) PAYMENT FOR NEW TECHNOLOGIES.—
(1) TESTS FURNISHED IN 2001.—
(A) SCREENING.—For a screening mammography (as
defined in section 1861(jj) of the Social Security Act (42
U.S.C. 1395x(jj))) furnished during the period beginning
on April 1, 2001, and ending on December 31, 2001, that
uses a new technology, payment for such screening
mammography shall be made as follows:
(i) In the case of a technology which directly takes
a digital image (without involving film), in an amount
equal to 150 percent of the amount of payment under
section 1848 of such Act (42 U.S.C. 1395w–4) for a
bilateral diagnostic mammography (under HCPCS code
76091) for such year.
(ii) In the case of a technology which allows conversion of a standard film mammogram into a digital
image and subsequently analyzes such resulting image
with software to identify possible problem areas, in
an amount equal to the limit that would otherwise
be applied under section 1834(c)(3) of such Act (42
U.S.C. 1395m(c)(3)) for 2001, increased by $15.
(B) BILATERAL DIAGNOSTIC MAMMOGRAPHY.—For a
bilateral diagnostic mammography furnished during the
period beginning on April 1, 2001, and ending on December
31, 2001, that uses a new technology described in subparagraph (A), payment for such mammography shall be the
amount of payment provided for under such subparagraph.
(C) ALLOCATION OF AMOUNTS.—The Secretary shall provide for an appropriate allocation of the amounts under
subparagraphs (A) and (B) between the professional and
technical components.
(D) IMPLEMENTATION OF PROVISION.—The Secretary of
Health and Human Services may implement the provisions
of this paragraph by program memorandum or otherwise.
(2) CONSIDERATION OF NEW HCPCS CODE FOR NEW TECHNOLOGIES AFTER 2001.—The Secretary shall determine, for such
mammographies performed after 2001, whether the assignment
of a new HCPCS code is appropriate for mammography that
uses a new technology. If the Secretary determines that a
new code is appropriate for such mammography, the Secretary
shall provide for such new code for such tests furnished after
2001.
(3) NEW TECHNOLOGY DESCRIBED.—For purposes of this
subsection, a new technology with respect to a mammography
is an advance in technology with respect to the test or equipment that results in the following:
(A) A significant increase or decrease in the resources
used in the test or in the manufacture of the equipment.
(B) A significant improvement in the performance of
the test or equipment.
(C) A significant advance in medical technology that
is expected to significantly improve the treatment of medicare beneficiaries.
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–471
(4) HCPCS CODE DEFINED.—The term ‘‘HCPCS code’’ means
a code under the Health Care Financing Administration Common Procedure Coding System (HCPCS).
SEC. 105. COVERAGE OF MEDICAL NUTRITION THERAPY SERVICES
FOR BENEFICIARIES WITH DIABETES OR A RENAL DISEASE.
(a) COVERAGE.—Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)), as
amended by section 102(a), is amended—
(1) in subparagraph (T), by striking ‘‘and’’ at the end;
(2) in subparagraph (U), by inserting ‘‘and’’ at the end;
and
(3) by adding at the end the following new subparagraph:
‘‘(V) medical nutrition therapy services (as defined in subsection (vv)(1)) in the case of a beneficiary with diabetes or
a renal disease who—
‘‘(i) has not received diabetes outpatient self-management training services within a time period determined
by the Secretary;
‘‘(ii) is not receiving maintenance dialysis for which
payment is made under section 1881; and
‘‘(iii) meets such other criteria determined by the Secretary after consideration of protocols established by dietitian or nutrition professional organizations;’’.
(b) SERVICES DESCRIBED.—Section 1861 (42 U.S.C. 1395x), as
amended by section 102(b), is amended by adding at the end the
following:
‘‘Medical Nutrition Therapy Services; Registered Dietitian or
Nutrition Professional
‘‘(vv)(1) The term ‘medical nutrition therapy services’ means
nutritional diagnostic, therapy, and counseling services for the purpose of disease management which are furnished by a registered
dietitian or nutrition professional (as defined in paragraph (2))
pursuant to a referral by a physician (as defined in subsection
(r)(1)).
‘‘(2) Subject to paragraph (3), the term ‘registered dietitian
or nutrition professional’ means an individual who—
‘‘(A) holds a baccalaureate or higher degree granted by
a regionally accredited college or university in the United States
(or an equivalent foreign degree) with completion of the academic requirements of a program in nutrition or dietetics, as
accredited by an appropriate national accreditation organization
recognized by the Secretary for this purpose;
‘‘(B) has completed at least 900 hours of supervised dietetics
practice under the supervision of a registered dietitian or nutrition professional; and
‘‘(C)(i) is licensed or certified as a dietitian or nutrition
professional by the State in which the services are performed;
or
‘‘(ii) in the case of an individual in a State that does
not provide for such licensure or certification, meets such other
criteria as the Secretary establishes.
‘‘(3) Subparagraphs (A) and (B) of paragraph (2) shall not
apply in the case of an individual who, as of the date of the
enactment of this subsection, is licensed or certified as a dietitian
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114 STAT. 2763A–472
PUBLIC LAW 106–554—APPENDIX F
or nutrition professional by the State in which medical nutrition
therapy services are performed.’’.
(c) PAYMENT.—Section 1833(a)(1) (42 U.S.C. 1395l(a)(1)) is
amended—
(1) by striking ‘‘and’’ before ‘‘(S)’’; and
(2) by inserting before the semicolon at the end the following: ‘‘, and (T) with respect to medical nutrition therapy services
(as defined in section 1861(vv)), the amount paid shall be
80 percent of the lesser of the actual charge for the services
or 85 percent of the amount determined under the fee schedule
established under section 1848(b) for the same services if furnished by a physician’’.
(d) APPLICATION OF LIMITS ON BILLING.—Section 1842(b)(18)(C)
(42 U.S.C. 1395u(b)(18)(C)) is amended by adding at the end the
following new clause:
‘‘(vi) A registered dietitian or nutrition professional.’’.
(e) EFFECTIVE DATE.—The amendments made by this section
shall apply to services furnished on or after January 1, 2002.
(f ) STUDY.—Not later than July 1, 2003, the Secretary of Health
and Human Services shall submit to Congress a report that contains
recommendations with respect to the expansion to other medicare
beneficiary populations of the medical nutrition therapy services
benefit (furnished under the amendments made by this section).
Subtitle B—Other Beneficiary
Improvements
SEC.
111.
ACCELERATION OF REDUCTION OF BENEFICIARY
COPAYMENT FOR HOSPITAL OUTPATIENT DEPARTMENT
SERVICES.
(a) REDUCING THE UPPER LIMIT ON BENEFICIARY COPAYMENT.—
(1) IN GENERAL.—Section 1833(t)(8)(C) (42 U.S.C.
1395l(t)(8)(C)) is amended to read as follows:
‘‘(C) LIMITATION ON COPAYMENT AMOUNT.—
‘‘(i) TO INPATIENT HOSPITAL DEDUCTIBLE AMOUNT.—
In no case shall the copayment amount for a procedure
performed in a year exceed the amount of the inpatient
hospital deductible established under section 1813(b)
for that year.
‘‘(ii) TO SPECIFIED PERCENTAGE.—The Secretary
shall reduce the national unadjusted copayment
amount for a covered OPD service (or group of such
services) furnished in a year in a manner so that
the effective copayment rate (determined on a national
unadjusted basis) for that service in the year does
not exceed the following percentage:
‘‘(I) For procedures performed in 2001, on or
after April 1, 2001, 57 percent.
‘‘(II) For procedures performed in 2002 or
2003, 55 percent.
‘‘(III) For procedures performed in 2004, 50
percent.
‘‘(IV) For procedures performed in 2005, 45
percent.
‘‘(V) For procedures performed in 2006 and
thereafter, 40 percent.’’.
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–473
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall apply with respect to services furnished on or after
April 1, 2001.
(b) CONSTRUCTION REGARDING LIMITING INCREASES IN COSTSHARING.—Nothing in this Act or the Social Security Act shall
be construed as preventing a hospital from waiving the amount
of any coinsurance for outpatient hospital services under the medicare program under title XVIII of the Social Security Act that
may have been increased as a result of the implementation of
the prospective payment system under section 1833(t) of the Social
Security Act (42 U.S.C. 1395l(t)).
(c) GAO STUDY OF REDUCTION IN MEDIGAP PREMIUM LEVELS
RESULTING FROM REDUCTIONS IN COINSURANCE.—The Comptroller
General of the United States shall work, in concert with the
National Association of Insurance Commissioners, to evaluate the
extent to which the premium levels for medicare supplemental
policies reflect the reductions in coinsurance resulting from the
amendment made by subsection (a). Not later than April 1, 2004,
the Comptroller General shall submit to Congress a report on
such evaluation and the extent to which the reductions in beneficiary coinsurance effected by such amendment have resulted in
actual savings to medicare beneficiaries.
SEC. 112. PRESERVATION OF COVERAGE OF DRUGS AND BIOLOGICALS
UNDER PART B OF THE MEDICARE PROGRAM.
(a) IN GENERAL.—Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)) is
amended, in each of subparagraphs (A) and (B), by striking ‘‘(including drugs and biologicals which cannot, as determined in accordance
with regulations, be self-administered)’’ and inserting ‘‘(including
drugs and biologicals which are not usually self-administered by
the patient)’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to drugs and biologicals administered on or after the
date of the enactment of this Act.
SEC. 113. ELIMINATION OF TIME LIMITATION ON MEDICARE BENEFITS
FOR IMMUNOSUPPRESSIVE DRUGS.
(a) IN GENERAL.—Section 1861(s)(2)(J) (42 U.S.C. 1395x(s)(2)(J))
is amended by striking ‘‘, but only’’ and all that follows up to
the semicolon at the end.
(b) CONFORMING AMENDMENTS.—
(1) EXTENDED COVERAGE.—Section 1832 (42 U.S.C. 1395k)
is amended—
(A) by striking subsection (b); and
(B) by redesignating subsection (c) as subsection (b).
(2) PASS-THROUGH; REPORT.—Section 227 of BBRA is
amended by striking subsection (d).
(c) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to drugs furnished on or after the date of the enactment
of this Act.
SEC. 114. IMPOSITION OF BILLING LIMITS ON DRUGS.
(a) IN GENERAL.—Section 1842(o) (42 U.S.C. 1395u(o)) is
amended by adding at the end the following new paragraph:
‘‘(3)(A) Payment for a charge for any drug or biological for
which payment may be made under this part may be made only
on an assignment-related basis.
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114 STAT. 2763A–474
PUBLIC LAW 106–554—APPENDIX F
‘‘(B) The provisions of subsection (b)(18)(B) shall apply to
charges for such drugs or biologicals in the same manner as they
apply to services furnished by a practitioner described in subsection
(b)(18)(C).’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to items furnished on or after January 1, 2001.
SEC. 115. WAIVER OF 24-MONTH WAITING PERIOD FOR MEDICARE COVERAGE OF INDIVIDUALS DISABLED WITH AMYOTROPHIC
LATERAL SCLEROSIS (ALS).
(a) IN GENERAL.—Section 226 (42 U.S.C. 426) is amended—
(1) by redesignating subsection (h) as subsection ( j) and
by moving such subsection to the end of the section; and
(2) by inserting after subsection (g) the following new subsection:
‘‘(h) For purposes of applying this section in the case of an
individual medically determined to have amyotrophic lateral sclerosis (ALS), the following special rules apply:
‘‘(1) Subsection (b) shall be applied as if there were no
requirement for any entitlement to benefits, or status, for a
period longer than 1 month.
‘‘(2) The entitlement under such subsection shall begin
with the first month (rather than twenty-fifth month) of entitlement or status.
‘‘(3) Subsection (f ) shall not be applied.’’.
(b) CONFORMING AMENDMENT.—Section 1837 (42 U.S.C. 1395p)
is amended by adding at the end the following new subsection:
‘‘( j) In applying this section in the case of an individual who
is entitled to benefits under part A pursuant to the operation
of section 226(h), the following special rules apply:
‘‘(1) The initial enrollment period under subsection (d) shall
begin on the first day of the first month in which the individual
satisfies the requirement of section 1836(1).
‘‘(2) In applying subsection (g)(1), the initial enrollment
period shall begin on the first day of the first month of entitlement to disability insurance benefits referred to in such subsection.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to benefits for months beginning July 1, 2001.
Subtitle C—Demonstration Projects and
Studies
SEC. 121. DEMONSTRATION PROJECT FOR DISEASE MANAGEMENT FOR
SEVERELY
CHRONICALLY
ILL
MEDICARE
BENEFICIARIES.
(a) IN GENERAL.—The Secretary of Health and Human Services
shall conduct a demonstration project under this section (in this
section referred to as the ‘‘project’’) to demonstrate the impact
on costs and health outcomes of applying disease management
to medicare beneficiaries with diagnosed, advanced-stage congestive
heart failure, diabetes, or coronary heart disease. In no case may
the number of participants in the project exceed 30,000 at any
time.
(b) VOLUNTARY PARTICIPATION.—
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–475
(1) ELIGIBILITY.—Medicare beneficiaries are eligible to
participate in the project only if—
(A) they meet specific medical criteria demonstrating
the appropriate diagnosis and the advanced nature of their
disease;
(B) their physicians approve of participation in the
project; and
(C) they are not enrolled in a Medicare+Choice plan.
(2) BENEFITS.—A beneficiary who is enrolled in the project
shall be eligible—
(A) for disease management services related to their
chronic health condition; and
(B) for payment for all costs for prescription drugs
without regard to whether or not they relate to the chronic
health condition, except that the project may provide for
modest cost-sharing with respect to prescription drug coverage.
(c) CONTRACTS WITH DISEASE MANAGEMENT ORGANIZATIONS.—
(1) IN GENERAL.—The Secretary of Health and Human
Services shall carry out the project through contracts with
up to three disease management organizations. The Secretary
shall not enter into such a contract with an organization unless
the organization demonstrates that it can produce improved
health outcomes and reduce aggregate medicare expenditures
consistent with paragraph (2).
(2) CONTRACT PROVISIONS.—Under such contracts—
(A) such an organization shall be required to provide
for prescription drug coverage described in subsection
(b)(2)(B);
(B) such an organization shall be paid a fee negotiated
and established by the Secretary in a manner so that
(taking into account savings in expenditures under parts
A and B of the medicare program under title XVIII of
the Social Security Act) there will be a net reduction in
expenditures under the medicare program as a result of
the project; and
(C) such an organization shall guarantee, through an
appropriate arrangement with a reinsurance company or
otherwise, the net reduction in expenditures described in
subparagraph (B).
(3) PAYMENTS.—Payments to such organizations shall be
made in appropriate proportion from the Trust Funds established under title XVIII of the Social Security Act.
(d) APPLICATION OF MEDIGAP PROTECTIONS TO DEMONSTRATION
PROJECT ENROLLEES.—(1) Subject to paragraph (2), the provisions
of section 1882(s)(3) (other than clauses (i) through (iv) of subparagraph (B)) and 1882(s)(4) of the Social Security Act shall apply
to enrollment (and termination of enrollment) in the demonstration
project under this section, in the same manner as they apply
to enrollment (and termination of enrollment) with a
Medicare+Choice organization in a Medicare+Choice plan.
(2) In applying paragraph (1)—
(A) any reference in clause (v) or (vi) of section 1882(s)(3)(B)
of such Act to 12 months is deemed a reference to the period
of the demonstration project; and
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114 STAT. 2763A–476
PUBLIC LAW 106–554—APPENDIX F
(B) the notification required under section 1882(s)(3)(D)
of such Act shall be provided in a manner specified by the
Secretary of Health and Human Services.
(e) DURATION.—The project shall last for not longer than 3
years.
(f ) WAIVER.—The Secretary of Health and Human Services
shall waive such provisions of title XVIII of the Social Security
Act as may be necessary to provide for payment for services under
the project in accordance with subsection (c)(3).
(g) REPORT.—The Secretary of Health and Human Services
shall submit to Congress an interim report on the project not
later than 2 years after the date it is first implemented and a
final report on the project not later than 6 months after the date
of its completion. Such reports shall include information on the
impact of the project on costs and health outcomes and recommendations on the cost-effectiveness of extending or expanding the project.
SEC. 122. CANCER PREVENTION AND TREATMENT DEMONSTRATION
FOR ETHNIC AND RACIAL MINORITIES.
(a) DEMONSTRATION.—
(1) IN GENERAL.—The Secretary of Health and Human
Services (in this section referred to as the ‘‘Secretary’’) shall
conduct demonstration projects (in this section referred to as
‘‘demonstration projects’’) for the purpose of developing models
and evaluating methods that—
(A) improve the quality of items and services provided
to target individuals in order to facilitate reduced disparities in early detection and treatment of cancer;
(B) improve clinical outcomes, satisfaction, quality of
life, and appropriate use of medicare-covered services and
referral patterns among those target individuals with cancer;
(C) eliminate disparities in the rate of preventive cancer screening measures, such as pap smears and prostate
cancer screenings, among target individuals; and
(D) promote collaboration with community-based
organizations to ensure cultural competency of health care
professionals and linguistic access for persons with limited
English proficiency.
(2) TARGET INDIVIDUAL DEFINED.—In this section, the term
‘‘target individual’’ means an individual of a racial and ethnic
minority group, as defined by section 1707 of the Public Health
Service Act, who is entitled to benefits under part A, and
enrolled under part B, of title XVIII of the Social Security
Act.
(b) PROGRAM DESIGN.—
(1) INITIAL DESIGN.—Not later than 1 year after the date
of the enactment of this Act, the Secretary shall evaluate best
practices in the private sector, community programs, and academic research of methods that reduce disparities among
individuals of racial and ethnic minority groups in the prevention and treatment of cancer and shall design the demonstration
projects based on such evaluation.
(2) NUMBER AND PROJECT AREAS.—Not later than 2 years
after the date of the enactment of this Act, the Secretary
shall implement at least nine demonstration projects, including
the following:
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–477
(A) Two projects for each of the four following major
racial and ethnic minority groups:
(i) American Indians, including Alaska Natives,
Eskimos, and Aleuts.
(ii) Asian Americans and Pacific Islanders.
(iii) Blacks.
(iv) Hispanics.
The two projects must target different ethnic subpopulations.
(B) One project within the Pacific Islands.
(C) At least one project each in a rural area and
inner-city area.
(3) EXPANSION OF PROJECTS; IMPLEMENTATION OF DEMONSTRATION PROJECT RESULTS.—If the initial report under subsection (c) contains an evaluation that demonstration projects—
(A) reduce expenditures under the medicare program
under title XVIII of the Social Security Act; or
(B) do not increase expenditures under the medicare
program and reduce racial and ethnic health disparities
in the quality of health care services provided to target
individuals and increase satisfaction of beneficiaries and
health care providers;
the Secretary shall continue the existing demonstration projects
and may expand the number of demonstration projects.
(c) REPORT TO CONGRESS.—
(1) IN GENERAL.—Not later than 2 years after the date
the Secretary implements the initial demonstration projects,
and biannually thereafter, the Secretary shall submit to Congress a report regarding the demonstration projects.
(2) CONTENTS OF REPORT.—Each report under paragraph
(1) shall include the following:
(A) A description of the demonstration projects.
(B) An evaluation of—
(i) the cost-effectiveness of the demonstration
projects;
(ii) the quality of the health care services provided
to target individuals under the demonstration projects;
and
(iii) beneficiary and health care provider satisfaction under the demonstration projects.
(C) Any other information regarding the demonstration
projects that the Secretary determines to be appropriate.
(d) WAIVER AUTHORITY.—The Secretary shall waive compliance
with the requirements of title XVIII of the Social Security Act
to such extent and for such period as the Secretary determines
is necessary to conduct demonstration projects.
(e) FUNDING.—
(1) DEMONSTRATION PROJECTS.—
(A) STATE PROJECTS.—Except as provided in subparagraph (B), the Secretary shall provide for the transfer
from the Federal Hospital Insurance Trust Fund and the
Federal Supplementary Insurance Trust Fund under title
XVIII of the Social Security Act, in such proportions as
the Secretary determines to be appropriate, of such funds
as are necessary for the costs of carrying out the demonstration projects.
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114 STAT. 2763A–478
PUBLIC LAW 106–554—APPENDIX F
(B) TERRITORY PROJECTS.—In the case of a demonstration project described in subsection (b)(2)(B), amounts shall
be available only as provided in any Federal law making
appropriations for the territories.
(2) LIMITATION.—In conducting demonstration projects, the
Secretary shall ensure that the aggregate payments made by
the Secretary do not exceed the sum of the amount which
the Secretary would have paid under the program for the
prevention and treatment of cancer if the demonstration
projects were not implemented, plus $25,000,000.
SEC. 123. STUDY ON MEDICARE COVERAGE OF ROUTINE THYROID
SCREENING.
(a) STUDY.—The Secretary of Health and Human Services shall
request the National Academy of Sciences, and as appropriate in
conjunction with the United States Preventive Services Task Force,
to conduct a study on the addition of coverage of routine thyroid
screening using a thyroid stimulating hormone test as a preventive
benefit provided to medicare beneficiaries under title XVIII of the
Social Security Act for some or all medicare beneficiaries. In
conducting the study, the Academy shall consider the short-term
and long-term benefits, and costs to the medicare program, of
such addition.
(b) REPORT.—Not later than 2 years after the date of the
enactment of this Act, the Secretary of Health and Human Services
shall submit a report on the findings of the study conducted under
subsection (a) to the Committee on Ways and Means and the
Committee on Commerce of the House of Representatives and the
Committee on Finance of the Senate.
SEC. 124. MEDPAC STUDY ON CONSUMER COALITIONS.
(a) STUDY.—The Medicare Payment Advisory Commission shall
conduct a study that examines the use of consumer coalitions in
the marketing of Medicare+Choice plans under the medicare program under title XVIII of the Social Security Act. The study shall
examine—
(1) the potential for increased efficiency in the medicare
program through greater beneficiary knowledge of their health
care options, decreased marketing costs of Medicare+Choice
organizations, and creation of a group market;
(2) the implications of Medicare+Choice plans and medicare
supplemental policies (under section 1882 of the Social Security
Act (42 U.S.C. 1395ss)) offering medicare beneficiaries in the
same geographic location different benefits and premiums based
on their affiliation with a consumer coalition;
(3) how coalitions should be governed, how they should
be accountable to the Secretary of Health and Human Services,
and how potential conflicts of interest in the activities of consumer coalitions should be avoided; and
(4) how such coalitions should be funded.
(b) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Commission shall submit to Congress a report
on the study conducted under subsection (a). The report shall
include a recommendation on whether and how a demonstration
project might be conducted for the operation of consumer coalitions
under the medicare program.
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–479
(c) CONSUMER COALITION DEFINED.—For purposes of this section, the term ‘‘consumer coalition’’ means a nonprofit, communitybased group of organizations that—
(1) provides information to medicare beneficiaries about
their health care options under the medicare program; and
(2) negotiates benefits and premiums for medicare beneficiaries who are members or otherwise affiliated with the
group of organizations with Medicare+Choice organizations
offering Medicare+Choice plans, issuers of medicare supplemental policies, issuers of long-term care coverage, and pharmacy benefit managers.
SEC. 125. STUDY ON LIMITATION ON STATE PAYMENT FOR MEDICARE
COST-SHARING AFFECTING ACCESS TO SERVICES FOR
QUALIFIED MEDICARE BENEFICIARIES.
(a) IN GENERAL.—The Secretary of Health and Human Services
shall conduct a study to determine if access to certain services
(including mental health services) for qualified medicare beneficiaries has been affected by limitations on a State’s payment
for medicare cost-sharing for such beneficiaries under section
1902(n) of the Social Security Act (42 U.S.C. 1396a(n)). As part
of such study, the Secretary shall analyze the effect of such payment
limitation on providers who serve a disproportionate share of such
beneficiaries.
(b) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Secretary shall submit to Congress a report
on the study under subsection (a). The report shall include recommendations regarding any changes that should be made to the
State payment limits under section 1902(n) for qualified medicare
beneficiaries to ensure appropriate access to services.
SEC. 126. STUDIES ON PREVENTIVE INTERVENTIONS IN PRIMARY CARE
FOR OLDER AMERICANS.
(a) STUDIES.—The Secretary of Health and Human Services,
acting through the United States Preventive Services Task Force,
shall conduct a series of studies designed to identify preventive
interventions that can be delivered in the primary care setting
and that are most valuable to older Americans.
(b) MISSION STATEMENT.—The mission statement of the United
States Preventive Services Task Force is amended to include the
evaluation of services that are of particular relevance to older
Americans.
(c) REPORT.—Not later than 1 year after the date of the enactment of this Act, and annually thereafter, the Secretary of Health
and Human Services shall submit to Congress a report on the
conclusions of the studies conducted under subsection (a), together
with recommendations for such legislation and administrative
actions as the Secretary considers appropriate.
SEC. 127. MEDPAC STUDY AND REPORT ON MEDICARE COVERAGE OF
CARDIAC AND PULMONARY REHABILITATION THERAPY
SERVICES.
(a) STUDY.—
(1) IN GENERAL.—The Medicare Payment Advisory Commission shall conduct a study on coverage of cardiac and pulmonary
rehabilitation therapy services under the medicare program
under title XVIII of the Social Security Act.
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114 STAT. 2763A–480
PUBLIC LAW 106–554—APPENDIX F
(2) FOCUS.—In conducting the study under paragraph (1),
the Commission shall focus on the appropriate—
(A) qualifying diagnoses required for coverage of cardiac and pulmonary rehabilitation therapy services;
(B) level of physician direct involvement and supervision in furnishing such services; and
(C) level of reimbursement for such services.
(b) REPORT.—Not later than 18 months after the date of the
enactment of this Act, the Commission shall submit to Congress
a report on the study conducted under subsection (a) together
with such recommendations for legislation and administrative
action as the Commission determines appropriate.
SEC. 128. LIFESTYLE MODIFICATION PROGRAM DEMONSTRATION.
(a) IN GENERAL.—The Secretary of Health and Human Services
shall carry out the demonstration project known as the Lifestyle
Modification Program Demonstration, as described in the Health
Care Financing Administration Memorandum of Understanding
entered into on November 13, 2000, and as subsequently modified,
(in this section referred to as the ‘‘project’’) in accordance with
the following requirements:
(1) The project shall include no fewer than 1,800 medicare
beneficiaries who complete under the project the entire course
of treatment under the Lifestyle Modification Program.
(2) The project shall be conducted over a course of 4 years.
(b) STUDY ON COST-EFFECTIVENESS.—
(1) STUDY.—The Secretary shall conduct a study on the
cost-effectiveness of the Lifestyle Modification Program as conducted under the project. In determining whether such Program
is cost-effective, the Secretary shall determine (using a control
group under a matched paired experimental design) whether
expenditures incurred for medicare beneficiaries enrolled under
the project exceed expenditures for the control group of medicare beneficiaries with similar health conditions who are not
enrolled under the project.
(2) REPORTS.—
(A) INITIAL REPORT.—Not later that 1 year after the
date on which 900 medicare beneficiaries have completed
the entire course of treatment under the Lifestyle Modification Program under the project, the Secretary shall submit
to Congress an initial report on the study conducted under
paragraph (1).
(B) FINAL REPORT.—Not later that 1 year after the
date on which 1,800 medicare beneficiaries have completed
the entire course of treatment under such Program under
the project, the Secretary shall submit to Congress a final
report on the study conducted under paragraph (1).
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–481
TITLE II—RURAL HEALTH CARE
IMPROVEMENTS
Subtitle A—Critical Access Hospital
Provisions
SEC. 201. CLARIFICATION OF NO BENEFICIARY COST-SHARING FOR
CLINICAL DIAGNOSTIC LABORATORY TESTS FURNISHED
BY CRITICAL ACCESS HOSPITALS.
(a) PAYMENT CLARIFICATION.—Section 1834(g) (42 U.S.C.
1395m(g)) is amended by adding at the end the following new
paragraph:
‘‘(4) NO BENEFICIARY COST-SHARING FOR CLINICAL DIAGNOSTIC LABORATORY SERVICES.—No coinsurance, deductible,
copayment, or other cost-sharing otherwise applicable under
this part shall apply with respect to clinical diagnostic laboratory services furnished as an outpatient critical access hospital
service. Nothing in this title shall be construed as providing
for payment for clinical diagnostic laboratory services furnished
as part of outpatient critical access hospital services, other
than on the basis described in this subsection.’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Paragraphs (1)(D)(i) and (2)(D)(i) of section 1833(a) (42
U.S.C. 1395l(a)) are each amended by striking ‘‘or which are
furnished on an outpatient basis by a critical access hospital’’.
(2) Section 403(d)(2) of BBRA (113 Stat. 1501A–371) is
amended by striking ‘‘The amendment made by subsection (a)
shall apply’’ and inserting ‘‘Paragraphs (1) through (3) of section
1834(g) of the Social Security Act (as amended by paragraph
(1)) apply’’.
(c) EFFECTIVE DATES.—The amendment made—
(1) by subsection (a) shall apply to services furnished on
or after the date of the enactment of BBRA;
(2) by subsection (b)(1) shall apply as if included in the
enactment of section 403(e)(1) of BBRA (113 Stat. 1501A–371);
and
(3) by subsection (b)(2) shall apply as if included in the
enactment of section 403(d)(2) of BBRA (113 Stat. 1501A–
371).
SEC. 202. ASSISTANCE WITH FEE SCHEDULE PAYMENT FOR PROFESSIONAL SERVICES UNDER ALL-INCLUSIVE RATE.
(a)
IN
GENERAL.—Section
1834(g)(2)(B)
(42
U.S.C.
1395m(g)(2)(B)) is amended by inserting ‘‘115 percent of’’ before
‘‘such amounts’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply with respect to items and services furnished on or
after July 1, 2001.
SEC. 203. EXEMPTION OF CRITICAL ACCESS HOSPITAL SWING BEDS
FROM SNF PPS.
(a) IN GENERAL.—Section 1888(e)(7) (42 U.S.C. 1395yy(e)(7))
is amended—
(1) in the heading, by striking ‘‘TRANSITION FOR’’ and inserting ‘‘TREATMENT OF’’;
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114 STAT. 2763A–482
PUBLIC LAW 106–554—APPENDIX F
(2) in subparagraph (A), by striking ‘‘IN GENERAL.—The’’
and inserting ‘‘TRANSITION.—Subject to subparagraph (C), the’’;
(3) in subparagraph (A), by inserting ‘‘(other than critical
access hospitals)’’ after ‘‘facilities described in subparagraph
(B)’’;
(4) in subparagraph (B), by striking ‘‘, for which payment’’
and all that follows before the period; and
(5) by adding at the end the following new subparagraph:
‘‘(C) EXEMPTION FROM PPS OF SWING-BED SERVICES FURNISHED IN CRITICAL ACCESS HOSPITALS.—The prospective
payment system established under this subsection shall
not apply to services furnished by a critical access hospital
pursuant to an agreement under section 1883.’’.
(b) PAYMENT ON A REASONABLE COST BASIS FOR SWING BED
SERVICES FURNISHED BY CRITICAL ACCESS HOSPITALS.—Section
1883(a) (42 U.S.C. 1395tt(a)) is amended—
(1) in paragraph (2)(A), by inserting ‘‘(other than a critical
access hospital)’’ after ‘‘any hospital’’; and
(2) by adding at the end the following new paragraph:
‘‘(3) Notwithstanding any other provision of this title, a critical
access hospital shall be paid for covered skilled nursing facility
services furnished under an agreement entered into under this
section on the basis of the reasonable costs of such services (as
determined under section 1861(v)).’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to cost reporting periods beginning on or after the
date of the enactment of this Act.
SEC. 204. PAYMENT IN CRITICAL ACCESS HOSPITALS FOR EMERGENCY
ROOM ON-CALL PHYSICIANS.
(a) IN GENERAL.—Section 1834(g) (42 U.S.C. 1395m(g)), as
amended by section 201(a), is further amended by adding at the
end the following new paragraph:
‘‘(5) COVERAGE OF COSTS FOR EMERGENCY ROOM ON-CALL
PHYSICIANS.—In determining the reasonable costs of outpatient
critical access hospital services under paragraphs (1) and (2)(A),
the Secretary shall recognize as allowable costs, amounts (as
defined by the Secretary) for reasonable compensation and
related costs for emergency room physicians who are on-call
(as defined by the Secretary) but who are not present on the
premises of the critical access hospital involved, and are not
otherwise furnishing physicians’ services and are not on-call
at any other provider or facility.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to cost reporting periods beginning on or after October
1, 2001.
SEC. 205. TREATMENT OF AMBULANCE SERVICES FURNISHED BY CERTAIN CRITICAL ACCESS HOSPITALS.
(a) IN GENERAL.—Section 1834(l) (42 U.S.C. 1395m(l)) is amended by adding at the end the following new paragraph:
‘‘(8) SERVICES FURNISHED BY CRITICAL ACCESS HOSPITALS.—
Notwithstanding any other provision of this subsection, the
Secretary shall pay the reasonable costs incurred in furnishing
ambulance services if such services are furnished—
‘‘(A) by a critical access hospital (as defined in section
1861(mm)(1)), or
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–483
‘‘(B) by an entity that is owned and operated by a
critical access hospital,
but only if the critical access hospital or entity is the only
provider or supplier of ambulance services that is located within
a 35-mile drive of such critical access hospital.’’.
(b) CONFORMING AMENDMENT.—Section 1833(a)(1)(R) (42 U.S.C.
1395l(a)(1)(R)) is amended—
(1) by striking ‘‘ambulance service,’’ and inserting ‘‘ambulance services, (i)’’; and
(2) by inserting before the comma at the end the following:
‘‘and (ii) with respect to ambulance services described in section
1834(l)(8), the amounts paid shall be the amounts determined
under section 1834(g) for outpatient critical access hospital
services’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to services furnished on or after the date of the enactment of this Act.
SEC. 206. GAO STUDY ON CERTAIN ELIGIBILITY REQUIREMENTS FOR
CRITICAL ACCESS HOSPITALS.
(a) STUDY.—The Comptroller General of the United States shall
conduct a study on the eligibility requirements for critical access
hospitals under section 1820(c) of the Social Security Act (42 U.S.C.
1395i–4(c)) with respect to limitations on average length of stay
and number of beds in such a hospital, including an analysis of—
(1) the feasibility of having a distinct part unit as part
of a critical access hospital for purposes of the medicare program under title XVIII of such Act; and
(2) the effect of seasonal variations in patient admissions
on critical access hospital eligibility requirements with respect
to limitations on average annual length of stay and number
of beds.
(b) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall submit to Congress
a report on the study conducted under subsection (a) together
with recommendations regarding—
(1) whether distinct part units should be permitted as
part of a critical access hospital under the medicare program;
(2) if so permitted, the payment methodologies that should
apply with respect to services provided by such units;
(3) whether, and to what extent, such units should be
included in or excluded from the bed limits applicable to critical
access hospitals under the medicare program; and
(4) any adjustments to such eligibility requirements to
account for seasonal variations in patient admissions.
Subtitle B—Other Rural Hospitals
Provisions
SEC. 211. TREATMENT OF RURAL DISPROPORTIONATE SHARE HOSPITALS.
(a)
APPLICATION
OF
UNIFORM
THRESHOLD.—Section
1886(d)(5)(F)(v) (42 U.S.C. 1395ww(d)(5)(F)(v)) is amended—
(1) in subclause (II), by inserting ‘‘(or 15 percent, for discharges occurring on or after April 1, 2001)’’ after ‘‘30 percent’’;
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114 STAT. 2763A–484
PUBLIC LAW 106–554—APPENDIX F
(2) in subclause (III), by inserting ‘‘(or 15 percent, for
discharges occurring on or after April 1, 2001)’’ after ‘‘40 percent’’; and
(3) in subclause (IV), by inserting ‘‘(or 15 percent, for discharges occurring on or after April 1, 2001)’’ after ‘‘45 percent’’.
(b) ADJUSTMENT OF PAYMENT FORMULAS.—
(1) SOLE COMMUNITY HOSPITALS.—Section 1886(d)(5)(F) (42
U.S.C. 1395ww(d)(5)(F)) is amended—
(A) in clause (iv)(VI), by inserting after ‘‘10 percent’’
the following: ‘‘or, for discharges occurring on or after April
1, 2001, is equal to the percent determined in accordance
with clause (x)’’; and
(B) by adding at the end the following new clause:
‘‘(x) For purposes of clause (iv)(VI) (relating to sole community
hospitals), in the case of a hospital for a cost reporting period
with a disproportionate patient percentage (as defined in clause
(vi)) that—
‘‘(I) is less than 19.3, the disproportionate share adjustment
percentage is determined in accordance with the following formula: (P–15)(.65) + 2.5;
‘‘(II) is equal to or exceeds 19.3, but is less than 30.0,
such adjustment percentage is equal to 5.25 percent; or
‘‘(III) is equal to or exceeds 30, such adjustment percentage
is equal to 10 percent,
where ‘P’ is the hospital’s disproportionate patient percentage (as
defined in clause (vi)).’’.
(2) RURAL REFERRAL CENTERS.—Such section is further
amended—
(A) in clause (iv)(V), by inserting after ‘‘clause (viii)’’
the following: ‘‘or, for discharges occurring on or after April
1, 2001, is equal to the percent determined in accordance
with clause (xi)’’; and
(B) by adding at the end the following new clause:
‘‘(xi) For purposes of clause (iv)(V) (relating to rural referral
centers), in the case of a hospital for a cost reporting period with
a disproportionate patient percentage (as defined in clause (vi))
that—
‘‘(I) is less than 19.3, the disproportionate share adjustment
percentage is determined in accordance with the following formula: (P–15)(.65) + 2.5;
‘‘(II) is equal to or exceeds 19.3, but is less than 30.0,
such adjustment percentage is equal to 5.25 percent; or
‘‘(III) is equal to or exceeds 30, such adjustment percentage
is determined in accordance with the following formula: (P–
30)(.6) + 5.25,
where ‘P’ is the hospital’s disproportionate patient percentage (as
defined in clause (vi)).’’.
(3) SMALL RURAL HOSPITALS GENERALLY.—Such section is
further amended—
(A) in clause (iv)(III), by inserting after ‘‘4 percent’’
the following: ‘‘or, for discharges occurring on or after April
1, 2001, is equal to the percent determined in accordance
with clause (xii)’’; and
(B) by adding at the end the following new clause:
‘‘(xii) For purposes of clause (iv)(III) (relating to small rural
hospitals generally), in the case of a hospital for a cost reporting
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–485
period with a disproportionate patient percentage (as defined in
clause (vi)) that—
‘‘(I) is less than 19.3, the disproportionate share adjustment
percentage is determined in accordance with the following formula: (P–15)(.65) + 2.5; or
‘‘(II) is equal to or exceeds 19.3, such adjustment percentage
is equal to 5.25 percent,
where ‘P’ is the hospital’s disproportionate patient percentage (as
defined in clause (vi)).’’.
(4) HOSPITALS THAT ARE BOTH SOLE COMMUNITY HOSPITALS
AND RURAL REFERRAL CENTERS.—Such section is further amended, in clause (iv)(IV), by inserting after ‘‘clause (viii)’’ the following: ‘‘or, for discharges occurring on or after April 1, 2001,
the greater of the percentages determined under clause (x)
or (xi)’’.
(5) URBAN HOSPITALS WITH LESS THAN 100 BEDS.—Such
section is further amended—
(A) in clause (iv)(II), by inserting after ‘‘5 percent’’
the following: ‘‘or, for discharges occurring on or after April
1, 2001, is equal to the percent determined in accordance
with clause (xiii)’’; and
(B) by adding at the end the following new clause:
‘‘(xiii) For purposes of clause (iv)(II) (relating to urban hospitals
with less than 100 beds), in the case of a hospital for a cost
reporting period with a disproportionate patient percentage (as
defined in clause (vi)) that—
‘‘(I) is less than 19.3, the disproportionate share adjustment
percentage is determined in accordance with the following formula: (P–15)(.65) + 2.5; or
‘‘(II) is equal to or exceeds 19.3, such adjustment percentage
is equal to 5.25 percent,
where ‘P’ is the hospital’s disproportionate patient percentage (as
defined in clause (vi)).’’.
SEC. 212. OPTION TO BASE ELIGIBILITY FOR MEDICARE DEPENDENT,
SMALL RURAL HOSPITAL PROGRAM ON DISCHARGES
DURING TWO OF THE THREE MOST RECENTLY AUDITED
COST REPORTING PERIODS.
(a) IN GENERAL.—Section 1886(d)(5)(G)(iv)(IV) (42 U.S.C.
1395ww(d)(5)(G)(iv)(IV)) is amended by inserting ‘‘, or two of the
three most recently audited cost reporting periods for which the
Secretary has a settled cost report,’’ after ‘‘1987’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply with respect to cost reporting periods beginning on
or after April 1, 2001.
SEC. 213. EXTENSION OF OPTION TO USE REBASED TARGET AMOUNTS
TO ALL SOLE COMMUNITY HOSPITALS.
(a) IN GENERAL.—Section 1886(b)(3)(I)(i) (42 U.S.C.
1395ww(b)(3)(I)(i)) is amended—
(1) in the matter preceding subclause (I), by striking ‘‘that
for its cost reporting period beginning during 1999’’ and all
that follows through ‘‘for such target amount’’ and inserting
‘‘there shall be substituted for the amount otherwise determined
under subsection (d)(5)(D)(i), if such substitution results in
a greater amount of payment under this section for the hospital’’;
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114 STAT. 2763A–486
PUBLIC LAW 106–554—APPENDIX F
(2) in subclause (I), by striking ‘‘target amount otherwise
applicable’’ and all that follows through ‘‘target amount’)’’ and
inserting ‘‘the amount otherwise applicable to the hospital
under subsection (d)(5)(D)(i) (referred to in this clause as the
‘subsection (d)(5)(D)(i) amount’)’’; and
(3) in each of subclauses (II) and (III), by striking ‘‘subparagraph (C) target amount’’ and inserting ‘‘subsection (d)(5)(D)(i)
amount’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall take effect as if included in the enactment of section 405
of BBRA (113 Stat. 1501A–372).
SEC. 214. MEDPAC ANALYSIS OF IMPACT OF VOLUME ON PER UNIT
COST OF RURAL HOSPITALS WITH PSYCHIATRIC UNITS.
The Medicare Payment Advisory Commission, in its study conducted pursuant to subsection (a) of section 411 of BBRA (113
Stat. 1501A–377), shall include—
(1) in such study an analysis of the impact of volume
on the per unit cost of rural hospitals with psychiatric units;
and
(2) in its report under subsection (b) of such section a
recommendation on whether special treatment for such hospitals may be warranted.
Subtitle C—Other Rural Provisions
SEC. 221. ASSISTANCE FOR PROVIDERS OF AMBULANCE SERVICES IN
RURAL AREAS.
(a) TRANSITIONAL ASSISTANCE IN CERTAIN MILEAGE RATES.—
Section 1834(l) (42 U.S.C. 1395m(l)) is amended by adding at the
end the following new paragraph:
‘‘(8) TRANSITIONAL ASSISTANCE FOR RURAL PROVIDERS.—In
the case of ground ambulance services furnished on or after
July 1, 2001, and before January 1, 2004, for which the
transportation originates in a rural area (as defined in section
1886(d)(2)(D)) or in a rural census tract of a metropolitan
statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the
Federal Register on February 27, 1992 (57 Fed. Reg. 6725)),
the fee schedule established under this subsection shall provide
that, with respect to the payment rate for mileage for a trip
above 17 miles, and up to 50 miles, the rate otherwise established shall be increased by not less than 1⁄2 of the additional
payment per mile established for the first 17 miles of such
a trip originating in a rural area.’’.
(b) GAO STUDIES ON THE COSTS OF AMBULANCE SERVICES FURNISHED IN RURAL AREAS.—
(1) STUDY.—The Comptroller General of the United States
shall conduct a study on each of the matters described in
paragraph (2).
(2) MATTERS DESCRIBED.—The matters referred to in paragraph (1) are the following:
(A) The cost of efficiently providing ambulance services
for trips originating in rural areas, with special emphasis
on collection of cost data from rural providers.
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–487
(B) The means by which rural areas with low population densities can be identified for the purpose of designating areas in which the cost of providing ambulance
services would be expected to be higher than similar services provided in more heavily populated areas because of
low usage. Such study shall also include an analysis of
the additional costs of providing ambulance services in
areas designated under the previous sentence.
(3) REPORT.—Not later than June 30, 2002, the Comptroller
General shall submit to Congress a report on the results of
the studies conducted under paragraph (1) and shall include
recommendations on steps that should be taken to assure access
to ambulance services in rural areas.
(c) ADJUSTMENT IN RURAL RATES.—In providing for adjustments
under subparagraph (D) of section 1834(l)(2) of the Social Security
Act (42 U.S.C. 1395m(l)(2)) for years beginning with 2004, the
Secretary of Health and Human Services shall take into consideration the recommendations contained in the report under subsection
(b)(2) and shall adjust the fee schedule payment rates under such
section for ambulance services provided in low density rural areas
based on the increased cost (if any) of providing such services
in such areas.
(d) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to services furnished on or after July 1, 2001. In applying
such amendment to services furnished on or after such date and
before January 1, 2002, the amount of the rate increase provided
under such amendment shall be equal to $1.25 per mile.
SEC. 222. PAYMENT FOR CERTAIN PHYSICIAN ASSISTANT SERVICES.
(a) PAYMENT FOR CERTAIN PHYSICIAN ASSISTANT SERVICES.—
Section 1842(b)(6)(C) (42 U.S.C. 1395u(b)(6)(C)) is amended—
(1) by striking ‘‘for such services provided before January
1, 2003,’’; and
(2) by striking the semicolon at the end and inserting
a comma.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall take effect on the date of the enactment of this Act.
SEC. 223. REVISION OF MEDICARE REIMBURSEMENT FOR TELEHEALTH SERVICES.
(a) TIME LIMIT FOR BBA PROVISION.—Section 4206(a) of BBA
(42 U.S.C. 1395l note) is amended by striking ‘‘Not later than
January 1, 1999’’ and inserting ‘‘For services furnished on and
after January 1, 1999, and before October 1, 2001’’.
(b) EXPANSION OF MEDICARE PAYMENT FOR TELEHEALTH SERVICES.—Section 1834 (42 U.S.C. 1395m) is amended by adding at
the end the following new subsection:
‘‘(m) PAYMENT FOR TELEHEALTH SERVICES.—
‘‘(1) IN GENERAL.—The Secretary shall pay for telehealth
services that are furnished via a telecommunications system
by a physician (as defined in section 1861(r)) or a practitioner
(described in section 1842(b)(18)(C)) to an eligible telehealth
individual enrolled under this part notwithstanding that the
individual physician or practitioner providing the telehealth
service is not at the same location as the beneficiary. For
purposes of the preceding sentence, in the case of any Federal
telemedicine demonstration program conducted in Alaska or
Hawaii, the term ‘telecommunications system’ includes store-
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114 STAT. 2763A–488
PUBLIC LAW 106–554—APPENDIX F
and-forward technologies that provide for the asynchronous
transmission of health care information in single or multimedia
formats.
‘‘(2) PAYMENT AMOUNT.—
‘‘(A) DISTANT SITE.—The Secretary shall pay to a physician or practitioner located at a distant site that furnishes
a telehealth service to an eligible telehealth individual
an amount equal to the amount that such physician or
practitioner would have been paid under this title had
such service been furnished without the use of a telecommunications system.
‘‘(B) FACILITY FEE FOR ORIGINATING SITE.—With respect
to a telehealth service, subject to section 1833(a)(1)(U),
there shall be paid to the originating site a facility fee
equal to—
‘‘(i) for the period beginning on October 1, 2001,
and ending on December 31, 2001, and for 2002, $20;
and
‘‘(ii) for a subsequent year, the facility fee specified
in clause (i) or this clause for the preceding year
increased by the percentage increase in the MEI (as
defined in section 1842(i)(3)) for such subsequent year.
‘‘(C) TELEPRESENTER NOT REQUIRED.—Nothing in this
subsection shall be construed as requiring an eligible telehealth individual to be presented by a physician or practitioner at the originating site for the furnishing of a service
via a telecommunications system, unless it is medically
necessary (as determined by the physician or practitioner
at the distant site).
‘‘(3) LIMITATION ON BENEFICIARY CHARGES.—
‘‘(A) PHYSICIAN AND PRACTITIONER.—The provisions of
section 1848(g) and subparagraphs (A) and (B) of section
1842(b)(18) shall apply to a physician or practitioner receiving payment under this subsection in the same manner
as they apply to physicians or practitioners under such
sections.
‘‘(B) ORIGINATING SITE.—The provisions of section
1842(b)(18) shall apply to originating sites receiving a facility fee in the same manner as they apply to practitioners
under such section.
‘‘(4) DEFINITIONS.—For purposes of this subsection:
‘‘(A) DISTANT SITE.—The term ‘distant site’ means the
site at which the physician or practitioner is located at
the time the service is provided via a telecommunications
system.
‘‘(B) ELIGIBLE TELEHEALTH INDIVIDUAL.—The term
‘eligible telehealth individual’ means an individual enrolled
under this part who receives a telehealth service furnished
at an originating site.
‘‘(C) ORIGINATING SITE.—
‘‘(i) IN GENERAL.—The term ‘originating site’ means
only those sites described in clause (ii) at which the
eligible telehealth individual is located at the time
the service is furnished via a telecommunications system and only if such site is located—
‘‘(I) in an area that is designated as a rural
health professional shortage area under section
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–489
332(a)(1)(A) of the Public Health Service Act (42
U.S.C. 254e(a)(1)(A));
‘‘(II) in a county that is not included in a
Metropolitan Statistical Area; or
‘‘(III) from an entity that participates in a
Federal telemedicine demonstration project that
has been approved by (or receives funding from)
the Secretary of Health and Human Services as
of December 31, 2000.
‘‘(ii) SITES DESCRIBED.—The sites referred to in
clause (i) are the following sites:
‘‘(I) The office of a physician or practitioner.
‘‘(II) A critical access hospital (as defined in
section 1861(mm)(1)).
‘‘(III) A rural health clinic (as defined in section 1861(aa)(s)).
‘‘(IV) A Federally qualified health center (as
defined in section 1861(aa)(4)).
‘‘(V) A hospital (as defined in section 1861(e)).
‘‘(D) PHYSICIAN.—The term ‘physician’ has the meaning
given that term in section 1861(r).
‘‘(E) PRACTITIONER.—The term ‘practitioner’ has the
meaning given that term in section 1842(b)(18)(C).
‘‘(F) TELEHEALTH SERVICE.—
‘‘(i) IN GENERAL.—The term ‘telehealth service’
means professional consultations, office visits, and
office psychiatry services (identified as of July 1, 2000,
by HCPCS codes 99241–99275, 99201–99215, 90804–
90809, and 90862 (and as subsequently modified by
the Secretary)), and any additional service specified
by the Secretary.
‘‘(ii) YEARLY UPDATE.—The Secretary shall establish a process that provides, on an annual basis, for
the addition or deletion of services (and HCPCS codes),
as appropriate, to those specified in clause (i) for
authorized payment under paragraph (1).’’.
(c) CONFORMING AMENDMENT.—Section 1833(a)(1) (42 U.S.C.
1395l(1)), as amended by section 105(c), is further amended—
(1) by striking ‘‘and (T)’’ and inserting ‘‘(T)’’; and
(2) by inserting before the semicolon at the end the following: ‘‘, and (U) with respect to facility fees described in section
1834(m)(2)(B), the amounts paid shall be 80 percent of the
lesser of the actual charge or the amounts specified in such
section’’.
(d) STUDY AND REPORT ON ADDITIONAL COVERAGE.—
(1) STUDY.—The Secretary of Health and Human Services
shall conduct a study to identify—
(A) settings and sites for the provision of telehealth
services that are in addition to those permitted under
section 1834(m) of the Social Security Act, as added by
subsection (b);
(B) practitioners that may be reimbursed under such
section for furnishing telehealth services that are in addition to the practitioners that may be reimbursed for such
services under such section; and
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114 STAT. 2763A–490
PUBLIC LAW 106–554—APPENDIX F
(C) geographic areas in which telehealth services may
be reimbursed that are in addition to the geographic areas
where such services may be reimbursed under such section.
(2) REPORT.—Not later than 2 years after the date of the
enactment of this Act, the Secretary shall submit to Congress
a report on the study conducted under paragraph (1) together
with such recommendations for legislation that the Secretary
determines are appropriate.
(e) EFFECTIVE DATE.—The amendments made by subsections
(b) and (c) shall be effective for services furnished on or after
October 1, 2001.
SEC. 224. EXPANDING ACCESS TO RURAL HEALTH CLINICS.
(a) IN GENERAL.—The matter in section 1833(f ) (42 U.S.C.
1395l(f )) preceding paragraph (1) is amended by striking ‘‘rural
hospitals’’ and inserting ‘‘hospitals’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to services furnished on or after July 1, 2001.
SEC. 225. MEDPAC STUDY ON LOW-VOLUME, ISOLATED RURAL HEALTH
CARE PROVIDERS.
(a) STUDY.—The Medicare Payment Advisory Commission shall
conduct a study on the effect of low patient and procedure volume
on the financial status of low-volume, isolated rural health care
providers participating in the medicare program under title XVIII
of the Social Security Act.
(b) REPORT.—Not later than 18 months after the date of the
enactment of this Act, the Commission shall submit to Congress
a report on the study conducted under subsection (a) indicating—
(1) whether low-volume, isolated rural health care providers
are having, or may have, significantly decreased medicare margins or other financial difficulties resulting from any of the
payment methodologies described in subsection (c);
(2) whether the status as a low-volume, isolated rural
health care provider should be designated under the medicare
program and any criteria that should be used to qualify for
such a status; and
(3) any changes in the payment methodologies described
in subsection (c) that are necessary to provide appropriate
reimbursement under the medicare program to low-volume,
isolated rural health care providers (as designated pursuant
to paragraph (2)).
(c) PAYMENT METHODOLOGIES DESCRIBED.—The payment methodologies described in this subsection are the following:
(1) The prospective payment system for hospital outpatient
department services under section 1833(t) of the Social Security
Act (42 U.S.C. 1395l(t)).
(2) The fee schedule for ambulance services under section
1834(l) of such Act (42 U.S.C. 1395m(l)).
(3) The prospective payment system for inpatient hospital
services under section 1886 of such Act (42 U.S.C. 1395ww).
(4) The prospective payment system for routine service
costs of skilled nursing facilities under section 1888(e) of such
Act (42 U.S.C. 1395yy(e)).
(5) The prospective payment system for home health services under section 1895 of such Act (42 U.S.C. 1395fff ).
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–491
TITLE III—PROVISIONS RELATING TO
PART A
Subtitle A—Inpatient Hospital Services
SEC. 301. REVISION OF ACUTE CARE HOSPITAL PAYMENT UPDATE
FOR 2001.
(a) IN GENERAL.—Section 1886(b)(3)(B)(i) (42 U.S.C.
1395ww(b)(3)(B)(i)) is amended—
(1) in subclause (XVI), by striking ‘‘minus 1.1 percentage
points for hospitals (other than sole community hospitals) in
all areas, and the market basket percentage increase for sole
community hospitals,’’ and inserting ‘‘for hospitals in all areas,’’;
(2) in subclause (XVII)—
(A) by striking ‘‘minus 1.1 percentage points’’ and
inserting ‘‘minus 0.55 percentage points; and
(B) by striking ‘‘and’’ at the end;
(3) by redesignating subclause (XVIII) as subclause (XIX);
(4) in subclause (XIX), as so redesignated, by striking ‘‘fiscal
year 2003’’ and inserting ‘‘fiscal year 2004’’; and
(5) by inserting after subclause (XVII) the following new
subclause:
‘‘(XVIII) for fiscal year 2003, the market basket percentage
increase minus 0.55 percentage points for hospitals in all areas,
and’’.
(b) SPECIAL RULE FOR PAYMENT FOR FISCAL YEAR 2001.—Notwithstanding the amendment made by subsection (a), for purposes
of making payments for fiscal year 2001 for inpatient hospital
services furnished by subsection (d) hospitals (as defined in section
1886(d)(1)(B) of the Social Security Act (42 U.S.C. 1395ww(d)(1)(B)),
the ‘‘applicable percentage increase’’ referred to in section
1886(b)(3)(B)(i) of such Act (42 U.S.C. 1395ww(b)(3)(B)(i))—
(1) for discharges occurring on or after October 1, 2000,
and before April 1, 2001, shall be determined in accordance
with subclause (XVI) of such section as in effect on the day
before the date of the enactment of this Act; and
(2) for discharges occurring on or after April 1, 2001, and
before October 1, 2001, shall be equal to—
(A) the market basket percentage increase plus 1.1
percentage points for hospitals (other than sole community
hospitals) in all areas; and
(B) the market basket percentage increase for sole
community hospitals.
(c) CONSIDERATION OF PRICE OF BLOOD AND BLOOD PRODUCTS
IN MARKET BASKET INDEX.—The Secretary of Health and Human
Services shall, when next (after the date of the enactment of this
Act) rebasing and revising the hospital market basket index (as
defined in section 1886(b)(3)(B)(iii) of the Social Security Act (42
U.S.C. 1395ww(b)(3)(B)(iii))), consider the prices of blood and blood
products purchased by hospitals and determine whether those prices
are adequately reflected in such index.
(d) MEDPAC STUDY AND REPORT REGARDING CERTAIN HOSPITAL
COSTS.—
(1) STUDY.—The Medicare Payment Advisory Commission
shall conduct a study on—
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114 STAT. 2763A–492
PUBLIC LAW 106–554—APPENDIX F
(A) any increased costs incurred by subsection (d) hospitals (as defined in paragraph (1)(B) of section 1886(d)
of the Social Security Act (42 U.S.C. 1395ww(d))) in providing inpatient hospital services to medicare beneficiaries
under title XVIII of such Act during the period beginning
on October 1, 1983, and ending on September 30, 1999,
that were attributable to—
(i) complying with new blood safety measure
requirements; and
(ii) providing such services using new technologies;
(B) the extent to which the prospective payment system
for such services under such section provides adequate
and timely recognition of such increased costs;
(C) the prospects for (and to the extent practicable,
the magnitude of ) cost increases that hospitals will incur
in providing such services that are attributable to complying with new blood safety measure requirements and
providing such services using new technologies during the
10 years after the date of the enactment of this Act; and
(D) the feasibility and advisability of establishing
mechanisms under such payment system to provide for
more timely and accurate recognition of such cost increases
in the future.
(2) CONSULTATION.—In conducting the study under this
subsection, the Commission shall consult with representatives
of the blood community, including—
(A) hospitals;
(B) organizations involved in the collection, processing,
and delivery of blood; and
(C) organizations involved in the development of new
blood safety technologies.
(3) REPORT.—Not later than 1 year after the date of the
enactment of this Act, the Commission shall submit to Congress
a report on the study conducted under paragraph (1) together
with such recommendations for legislation and administrative
action as the Commission determines appropriate.
(e) ADJUSTMENT FOR INPATIENT CASE MIX CHANGES.—
(1) IN GENERAL.—Section 1886(d)(3)(A) (42 U.S.C.
1395ww(d)(3)(A)) is amended by adding at the end the following
new clause:
‘‘(vi) Insofar as the Secretary determines that the adjustments under paragraph (4)(C)(i) for a previous fiscal year (or
estimates that such adjustments for a future fiscal year) did
(or are likely to) result in a change in aggregate payments
under this subsection during the fiscal year that are a result
of changes in the coding or classification of discharges that
do not reflect real changes in case mix, the Secretary may
adjust the average standardized amounts computed under this
paragraph for subsequent fiscal years so as to eliminate the
effect of such coding or classification changes.’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall apply to discharges occurring on or after October
1, 2001.
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–493
SEC. 302. ADDITIONAL MODIFICATION IN TRANSITION FOR INDIRECT
MEDICAL EDUCATION (IME) PERCENTAGE ADJUSTMENT.
(a) IN GENERAL.—Section 1886(d)(5)(B)(ii) (42 U.S.C.
1395ww(d)(5)(B)(ii)) is amended—
(1) in subclause (V) by striking ‘‘and’’ at the end;
(2) by redesignating subclause (VI) as subclause (VII);
(3) in subclause (VII) as so redesignated, by striking ‘‘2001’’
and inserting ‘‘2002’’; and
(4) by inserting after subclause (V) the following new subclause:
‘‘(VI) during fiscal year 2002, ‘c’ is equal to 1.6; and’’.
(b) SPECIAL RULE FOR PAYMENT FOR FISCAL YEAR 2001.—Notwithstanding paragraph (5)(B)(ii)(V) of section 1886(d) of the Social
Security Act (42 U.S.C. 1395ww(d)(5)(B)(ii)(V)), for purposes of making payments for subsection (d) hospitals (as defined in paragraph
(1)(B) of such section) with indirect costs of medical education,
the indirect teaching adjustment factor referred to in paragraph
(5)(B)(ii) of such section shall be determined, for discharges occurring on or after April 1, 2001, and before October 1, 2001, as
if ‘‘c’’ in paragraph (5)(B)(ii)(V) of such section equalled 1.66 rather
than 1.54.
(c) CONFORMING AMENDMENT RELATING TO DETERMINATION OF
STANDARDIZED AMOUNT.—Section 1886(d)(2)(C)(i) (42 U.S.C.
1395ww(d)(2)(C)(i)) is amended by inserting ‘‘or of section 302 of
the Medicare, Medicaid, and SCHIP Benefits Improvement and
Protection Act of 2000’’ after ‘‘Balanced Budget Refinement Act
of 1999’’.
(d) CLERICAL AMENDMENTS.—Section 1886(d)(5)(B) (42 U.S.C.
1395ww(d)(5)(B)), as amended by subsection (a), is further amended
by moving the indentation of each of the following 2 ems to the
left:
(1) Clauses (ii), (v), and (vi).
(2) Subclauses (I) (II), (III), (IV), (V), and (VII) of clause
(ii).
(3) Subclauses (I) and (II) of clause (vi) and the flush
sentence at the end of such clause.
SEC. 303. DECREASE IN REDUCTIONS FOR DISPROPORTIONATE SHARE
HOSPITAL (DSH) PAYMENTS.
(a) IN GENERAL.—Section 1886(d)(5)(F)(ix) (42 U.S.C.
1395ww(d)(5)(F)(ix)) is amended—
(1) in subclause (III), by striking ‘‘each of’’ and by inserting
‘‘and 2 percent, respectively’’ after ‘‘3 percent’’; and
(2) in subclause (IV), by striking ‘‘4 percent’’ and inserting
‘‘3 percent’’.
(b) SPECIAL RULE FOR PAYMENT FOR FISCAL YEAR 2001.—Notwithstanding the amendment made by subsection (a)(1), for purposes of making disproportionate share payments for subsection
(d) hospitals (as defined in section 1886(d)(1)(B) of the Social Security Act (42 U.S.C. 1395ww(d)(1)(B)) for fiscal year 2001, the additional payment amount otherwise determined under clause (ii) of
section 1886(d)(5)(F) of the Social Security Act (42 U.S.C.
1395ww(d)(5)(F))—
(1) for discharges occurring on or after October 1, 2000,
and before April 1, 2001, shall be adjusted as provided by
clause (ix)(III) of such section as in effect on the day before
the date of the enactment of this Act; and
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114 STAT. 2763A–494
PUBLIC LAW 106–554—APPENDIX F
(2) for discharges occurring on or after April 1, 2001, and
before October 1, 2001, shall, instead of being reduced by 3
percent as provided by clause (ix)(III) of such section as in
effect after the date of the enactment of this Act, be reduced
by 1 percent.
(c) CONFORMING AMENDMENTS RELATING TO DETERMINATION
OF STANDARDIZED AMOUNT.—Section 1886(d)(2)(C)(iv) (42 U.S.C.
1395ww(d)(2)(C)(iv)), is amended—
(1) by striking ‘‘1989 or’’ and inserting ‘‘1989,’’; and
(2) by inserting ‘‘, or the enactment of section 303 of the
Medicare, Medicaid, and SCHIP Benefits Improvement and
Protection Act of 2000’’ after ‘‘Omnibus Budget Reconciliation
Act of 1990’’.
(d) TECHNICAL AMENDMENT.—
(1) IN GENERAL.—Section 1886(d)(5)(F)(i) (42 U.S.C.
1395ww(d)(5)(F)(i)) is amended by striking ‘‘and before October
1, 1997,’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) is effective as if included in the enactment of BBA.
(e) REFERENCE TO CHANGES IN DSH FOR RURAL HOSPITALS.—
For additional changes in the DSH program for rural hospitals,
see section 211.
SEC. 304. WAGE INDEX IMPROVEMENTS.
(a) DURATION OF WAGE INDEX RECLASSIFICATION; USE OF 3YEAR
WAGE
DATA.—Section
1886(d)(10)(D)
(42
U.S.C.
1395ww(d)(10)(D)) is amended by adding at the end the following
new clauses:
‘‘(v) Any decision of the Board to reclassify a subsection (d)
hospital for purposes of the adjustment factor described in subparagraph (C)(i)(II) for fiscal year 2001 or any fiscal year thereafter
shall be effective for a period of 3 fiscal years, except that the
Secretary shall establish procedures under which a subsection (d)
hospital may elect to terminate such reclassification before the
end of such period.
‘‘(vi) Such guidelines shall provide that, in making decisions
on applications for reclassification for the purposes described in
clause (v) for fiscal year 2003 and any succeeding fiscal year,
the Board shall base any comparison of the average hourly wage
for the hospital with the average hourly wage for hospitals in
an area on—
‘‘(I) an average of the average hourly wage amount for
the hospital from the most recently published hospital wage
survey data of the Secretary (as of the date on which the
hospital applies for reclassification) and such amount from
each of the two immediately preceding surveys; and
‘‘(II) an average of the average hourly wage amount for
hospitals in such area from the most recently published hospital
wage survey data of the Secretary (as of the date on which
the hospital applies for reclassification) and such amount from
each of the two immediately preceding surveys.’’.
(b) PROCESS TO PERMIT STATEWIDE WAGE INDEX CALCULATION
AND APPLICATION.—
(1) IN GENERAL.—The Secretary of Health and Human
Services shall establish a process (based on the voluntary process utilized by the Secretary of Health and Human Services
under section 1848 of the Social Security Act (42 U.S.C. 1395w–
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–495
4) for purposes of computing and applying a statewide
geographic adjustment factor) under which an appropriate
statewide entity may apply to have all the geographic areas
in a State treated as a single geographic area for purposes
of computing and applying the area wage index under section
1886(d)(3)(E) of such Act (42 U.S.C. 1395ww(d)(3)(E)). Such
process shall be established by October 1, 2001, for reclassifications beginning in fiscal year 2003.
(2) PROHIBITION ON INDIVIDUAL HOSPITAL RECLASSIFICATION.—Notwithstanding any other provision of law, if the Secretary applies a statewide geographic wage index under paragraph (1) with respect to a State, any application submitted
by a hospital in that State under section 1886(d)(10) of the
Social Security Act (42 U.S.C. 1395ww(d)(10)) for geographic
reclassification shall not be considered.
(c) COLLECTION OF INFORMATION ON OCCUPATIONAL MIX.—
(1) IN GENERAL.—The Secretary of Health and Human
Services shall provide for the collection of data every 3 years
on occupational mix for employees of each subsection (d) hospital (as defined in section 1886(d)(1)(D) of the Social Security
Act (42 U.S.C. 1395ww(d)(1)(D))) in the provision of inpatient
hospital services, in order to construct an occupational mix
adjustment in the hospital area wage index applied under
section 1886(d)(3)(E) of such Act (42 U.S.C. 1395ww(d)(3)(E)).
(2) APPLICATION.—The third sentence of section
1886(d)(3)(E) (42 U.S.C. 1395ww(d)(3)(E)) is amended by striking ‘‘To the extent determined feasible by the Secretary, such
survey shall measure’’ and inserting ‘‘Not less often than once
every 3 years the Secretary (through such survey or otherwise)
shall measure’’.
(3) EFFECTIVE DATE.—By not later than September 30,
2003, for application beginning October 1, 2004, the Secretary
shall first complete—
(A) the collection of data under paragraph (1); and
(B) the measurement under the third sentence of section 1886(d)(3)(E), as amended by paragraph (2).
SEC. 305. PAYMENT FOR INPATIENT SERVICES OF REHABILITATION
HOSPITALS.
(a) ASSISTANCE WITH ADMINISTRATIVE COSTS ASSOCIATED WITH
COMPLETION OF PATIENT ASSESSMENT.—Section 1886( j)(3)(B) (42
U.S.C. 1395ww( j)(3)(B)) is amended by striking ‘‘98 percent’’ and
inserting ‘‘98 percent for fiscal year 2001 and 100 percent for
fiscal year 2002’’.
(b) ELECTION TO APPLY FULL PROSPECTIVE PAYMENT RATE
WITHOUT PHASE-IN.—
(1) IN GENERAL.—Paragraph (1) of section 1886( j) (42
U.S.C. 1395ww( j)) is amended—
(A) in subparagraph (A), by inserting ‘‘other than a
facility making an election under subparagraph (F)’’ before
‘‘in a cost reporting period’’;
(B) in subparagraph (B), by inserting ‘‘or, in the case
of a facility making an election under subparagraph (F),
for any cost reporting period described in such subparagraph,’’ after ‘‘2002,’’; and
(C) by adding at the end the following new subparagraph:
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114 STAT. 2763A–496
PUBLIC LAW 106–554—APPENDIX F
‘‘(F) ELECTION TO APPLY FULL PROSPECTIVE PAYMENT
SYSTEM.—A rehabilitation facility may elect, not later than
30 days before its first cost reporting period for which
the payment methodology under this subsection applies
to the facility, to have payment made to the facility under
this subsection under the provisions of subparagraph (B)
(rather than subparagraph (A)) for each cost reporting
period to which such payment methodology applies.’’.
(2) CLARIFICATION.—Paragraph (3)(B) of such section is
amended by inserting ‘‘but not taking into account any payment
adjustment resulting from an election permitted under paragraph (1)(F)’’ after ‘‘paragraphs (4) and (6)’’.
(c) EFFECTIVE DATE.—The amendments made by this section
take effect as if included in the enactment of BBA.
SEC. 306. PAYMENT FOR INPATIENT SERVICES OF PSYCHIATRIC HOSPITALS.
With respect to hospitals described in clause (i) of section
1886(d)(1)(B) of the Social Security Act (42 U.S.C. 1395ww(d)(1)(B))
and psychiatric units described in the matter following clause (v)
of such section, in making incentive payments to such hospitals
under section 1886(b)(1)(A) of such Act (42 U.S.C. 1395ww(b)(1)(A))
for cost reporting periods beginning on or after October 1, 2000,
and before October 1, 2001, the Secretary of Health and Human
Services, in clause (ii) of such section, shall substitute ‘‘3 percent’’
for ‘‘2 percent’’.
SEC. 307. PAYMENT FOR INPATIENT SERVICES OF LONG-TERM CARE
HOSPITALS.
(a) INCREASED TARGET AMOUNTS AND CAPS FOR LONG-TERM
CARE HOSPITALS BEFORE IMPLEMENTATION OF THE PROSPECTIVE
PAYMENT SYSTEM.—
(1)
IN
GENERAL.—Section
1886(b)(3)
(42
U.S.C.
1395ww(b)(3)) is amended—
(A) in subparagraph (H)(ii)(III), by inserting ‘‘subject
to subparagraph (J),’’ after ‘‘2002,’’; and
(B) by adding at the end the following new subparagraph:
‘‘(J) For cost reporting periods beginning during fiscal year
2001, for a hospital described in subsection (d)(1)(B)(iv)—
‘‘(i) the limiting or cap amount otherwise determined under
subparagraph (H) shall be increased by 2 percent; and
‘‘(ii) the target amount otherwise determined under
subparagraph (A) shall be increased by 25 percent (subject
to the limiting or cap amount determined under subparagraph
(H), as increased by clause (i)).’’.
(2) APPLICATION.—The amendments made by subsection
(a) and by section 122 of BBRA (113 Stat. 1501A–331) shall
not be taken into account in the development and implementation of the prospective payment system under section 123 of
BBRA (113 Stat. 1501A–331).
(b) IMPLEMENTATION OF PROSPECTIVE PAYMENT SYSTEM FOR
LONG-TERM CARE HOSPITALS.—
(1) MODIFICATION OF REQUIREMENT.—In developing the
prospective payment system for payment for inpatient hospital
services provided in long-term care hospitals described in section 1886(d)(1)(B)(iv) of the Social Security Act (42 U.S.C.
1395ww(d)(1)(B)(iv)) under the medicare program under title
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–497
XVIII of such Act required under section 123 of BBRA, the
Secretary of Health and Human Services shall examine the
feasibility and the impact of basing payment under such a
system on the use of existing (or refined) hospital diagnosisrelated groups (DRGs) that have been modified to account
for different resource use of long-term care hospital patients
as well as the use of the most recently available hospital
discharge data. The Secretary shall examine and may provide
for appropriate adjustments to the long-term hospital payment
system, including adjustments to DRG weights, area wage
adjustments, geographic reclassification, outliers, updates, and
a disproportionate share adjustment consistent with section
1886(d)(5)(F) of the Social Security Act (42 U.S.C.
1395ww(d)(5)(F)).
(2) DEFAULT IMPLEMENTATION OF SYSTEM BASED ON EXISTING DRG METHODOLOGY.—If the Secretary is unable to implement the prospective payment system under section 123 of
the BBRA by October 1, 2002, the Secretary shall implement
a prospective payment system for such hospitals that bases
payment under such a system using existing hospital diagnosisrelated groups (DRGs), modified where feasible to account for
resource use of long-term care hospital patients using the most
recently available hospital discharge data for such services
furnished on or after that date.
Subtitle B—Adjustments to PPS Payments
for Skilled Nursing Facilities
SEC. 311. ELIMINATION OF REDUCTION IN SKILLED NURSING FACILITY
(SNF) MARKET BASKET UPDATE IN 2001.
(a) IN GENERAL.—Section 1888(e)(4)(E)(ii) (42 U.S.C.
1395yy(e)(4)(E)(ii)) is amended—
(1) by redesignating subclauses (II) and (III) as subclauses
(III) and (IV), respectively;
(2) in subclause (III), as so redesignated—
(A) by striking ‘‘each of fiscal years 2001 and 2002’’
and inserting ‘‘each of fiscal years 2002 and 2003’’; and
(B) by striking ‘‘minus 1 percentage point’’ and inserting ‘‘minus 0.5 percentage points’’; and
(3) by inserting after subclause (I) the following new subclause:
‘‘(II) for fiscal year 2001, the rate computed
for the previous fiscal year increased by the skilled
nursing facility market basket percentage change
for the fiscal year;’’.
(b) SPECIAL RULE FOR PAYMENT FOR FISCAL YEAR 2001.—Notwithstanding the amendments made by subsection (a), for purposes
of making payments for covered skilled nursing facility services
under section 1888(e) of the Social Security Act (42 U.S.C.
1395yy(e)) for fiscal year 2001, the Federal per diem rate referred
to in paragraph (4)(E)(ii) of such section—
(1) for the period beginning on October 1, 2000, and ending
on March 31, 2001, shall be the rate determined in accordance
with the law as in effect on the day before the date of the
enactment of this Act; and
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(2) for the period beginning on April 1, 2001, and ending
on September 30, 2001, shall be the rate that would have
been determined under such section if ‘‘plus 1 percentage point’’
had been substituted for ‘‘minus 1 percentage point’’ under
subclause (II) of such paragraph (as in effect on the day before
the date of the enactment of this Act).
(c) RELATION TO TEMPORARY INCREASE IN BBRA.—The
increases provided under section 101 of BBRA (113 Stat. 1501A–
325) shall be in addition to any increase resulting from the amendments made by subsection (a).
(d) GAO REPORT ON ADEQUACY OF SNF PAYMENT RATES.—
Not later than July 1, 2002, the Comptroller General of the United
States shall submit to Congress a report on the adequacy of medicare payment rates to skilled nursing facilities and the extent
to which medicare contributes to the financial viability of such
facilities. Such report shall take into account the role of private
payors, medicaid, and case mix on the financial performance of
these facilities, and shall include an analysis (by specific RUG
classification) of the number and characteristics of such facilities.
(e) HCFA STUDY OF CLASSIFICATION SYSTEMS FOR SNF RESIDENTS.—
(1) STUDY.—The Secretary of Health and Human Services
shall conduct a study of the different systems for categorizing
patients in medicare skilled nursing facilities in a manner
that accounts for the relative resource utilization of different
patient types.
(2) REPORT.—Not later than January 1, 2005, the Secretary
shall submit to Congress a report on the study conducted under
subsection (a). Such report shall include such recommendations
regarding changes in law as may be appropriate.
SEC. 312. INCREASE IN NURSING COMPONENT OF PPS FEDERAL RATE.
(a) IN GENERAL.—The Secretary of Health and Human Services
shall increase by 16.66 percent the nursing component of the casemix adjusted Federal prospective payment rate specified in Tables
3 and 4 of the final rule published in the Federal Register by
the Health Care Financing Administration on July 31, 2000 (65
Fed. Reg. 46770) and as subsequently updated, effective for services
furnished on or after April 1, 2001, and before October 1, 2002.
(b) GAO AUDIT OF NURSING STAFF RATIOS.—
(1) AUDIT.—The Comptroller General of the United States
shall conduct an audit of nursing staffing ratios in a representative sample of medicare skilled nursing facilities. Such sample
shall cover selected States and shall include broad representation with respect to size, ownership, location, and medicare
volume. Such audit shall include an examination of payroll
records and medicaid cost reports of individual facilities.
(2) REPORT.—Not later than August 1, 2002, the Comptroller General shall submit to Congress a report on the audits
conducted under paragraph (1). Such report shall include an
assessment of the impact of the increased payments under
this subtitle on increased nursing staff ratios and shall make
recommendations as to whether increased payments under subsection (a) should be continued.
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–499
SEC. 313. APPLICATION OF SNF CONSOLIDATED BILLING REQUIREMENT LIMITED TO PART A COVERED STAYS.
(a) IN GENERAL.—Section 1862(a)(18) (42 U.S.C. 1395y(a)(18))
is amended by striking ‘‘or of a part of a facility that includes
a skilled nursing facility (as determined under regulations),’’ and
inserting ‘‘during a period in which the resident is provided covered
post-hospital extended care services (or, for services described in
section 1861(s)(2)(D), which are furnished to such an individual
without regard to such period),’’.
(b) CONFORMING AMENDMENTS.—(1) Section 1842(b)(6)(E) (42
U.S.C. 1395u(b)(6)(E)) is amended—
(A) by inserting ‘‘by, or under arrangements made by, a
skilled nursing facility’’ after ‘‘furnished’’;
(B) by striking ‘‘or of a part of a facility that includes
a skilled nursing facility (as determined under regulations)’’;
and
(C) by striking ‘‘(without regard to whether or not the
item or service was furnished by the facility, by others under
arrangement with them made by the facility, under any other
contracting or consulting arrangement, or otherwise)’’.
(2) Section 1842(t) (42 U.S.C. 1395u(t)) is amended by striking
‘‘by a physician’’ and ‘‘or of a part of a facility that includes a
skilled nursing facility (as determined under regulations),’’.
(3) Section 1866(a)(1)(H)(ii)(I) (42 U.S.C. 1395cc(a)(1)(H)(ii)(I))
is amended by inserting after ‘‘who is a resident of the skilled
nursing facility’’ the following: ‘‘during a period in which the resident is provided covered post-hospital extended care services (or,
for services described in section 1861(s)(2)(D), that are furnished
to such an individual without regard to such period)’’.
(c) EFFECTIVE DATE.—The amendments made by subsections
(a) and (b) shall apply to services furnished on or after January
1, 2001.
(d) OVERSIGHT.—The Secretary of Health and Human Services,
through the Office of the Inspector General in the Department
of Health and Human Services or otherwise, shall monitor payments
made under part B of the title XVIII of the Social Security Act
for items and services furnished to residents of skilled nursing
facilities during a time in which the residents are not being provided
medicare covered post-hospital extended care services to ensure
that there is not duplicate billing for services or excessive services
provided.
SEC. 314. ADJUSTMENT OF REHABILITATION RUGS TO CORRECT
ANOMALY IN PAYMENT RATES.
(a) ADJUSTMENT FOR REHABILITATION RUGS.—
(1) IN GENERAL.—For purposes of computing payments for
covered skilled nursing facility services under paragraph (1)
of section 1888(e) of the Social Security Act (42 U.S.C.
1395yy(e)) for such services furnished on or after April 1, 2001,
and before the date described in section 101(c)(2) of BBRA
(113 Stat. 1501A–324), the Secretary of Health and Human
Services shall increase by 6.7 percent the adjusted Federal
per diem rate otherwise determined under paragraph (4) of
such section (but for this section) for covered skilled nursing
facility services for RUG–III rehabilitation groups described
in paragraph (2) furnished to an individual during the period
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114 STAT. 2763A–500
PUBLIC LAW 106–554—APPENDIX F
in which such individual is classified in such a RUG–III category.
(2) REHABILITATION GROUPS DESCRIBED.—The RUG–III
rehabilitation groups for which the adjustment described in
paragraph (1) applies are RUC, RUB, RUA, RVC, RVB, RVA,
RHC, RHB, RHA, RMC, RMB, RMA, RLB, and RLA, as specified in Tables 3 and 4 of the final rule published in the Federal
Register by the Health Care Financing Administration on July
31, 2000 (65 Fed. Reg. 46770).
(b) CORRECTION WITH RESPECT TO REHABILITATION RUGS.—
(1) IN GENERAL.—Section 101(b) of BBRA (113 Stat. 1501A–
324) is amended by striking ‘‘CA1, RHC, RMC, and RMB’’
and inserting ‘‘and CA1’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall apply to services furnished on or after April 1, 2001.
(c) REVIEW BY OFFICE OF INSPECTOR GENERAL.—The Inspector
General of the Department of Health and Human Services shall
review the medicare payment structure for services classified within
rehabilitation resource utilization groups (RUGs) (as in effect after
the date of the enactment of the BBRA) to assess whether payment
incentives exist for the delivery of inadequate care. Not later than
October 1, 2001, the Inspector General shall submit to Congress
a report on such review.
SEC. 315. ESTABLISHMENT OF PROCESS FOR GEOGRAPHIC RECLASSIFICATION.
(a) IN GENERAL.—The Secretary of Health and Human Services
may establish a procedure for the geographic reclassification of
a skilled nursing facility for purposes of payment for covered skilled
nursing facility services under the prospective payment system
established under section 1888(e) of the Social Security Act (42
U.S.C. 1395yy(e)). Such procedure may be based upon the method
for geographic reclassifications for inpatient hospitals established
under section 1886(d)(10) of the Social Security Act (42 U.S.C.
1395ww(d)(10)).
(b) REQUIREMENT FOR SKILLED NURSING FACILITY WAGE
DATA.—In no case may the Secretary implement the procedure
under subsection (a) before such time as the Secretary has collected
data necessary to establish an area wage index for skilled nursing
facilities based on wage data from such facilities.
Subtitle C—Hospice Care
SEC. 321. FIVE PERCENT INCREASE IN PAYMENT BASE.
(a) IN GENERAL.—Section 1814(i)(1)(C)(ii)(VI) (42 U.S.C.
1395f(i)(1)(C)(ii)(VI)) is amended by inserting ‘‘, plus, in the case
of fiscal year 2001, 5.0 percentage points’’ before the semicolon
at the end.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to hospice care furnished on or after April 1, 2001.
In applying clause (ii) of section 1814(i)(1)(C) of the Social Security
Act (42 U.S.C. 1395f(i)(1)(C)) beginning with fiscal year 2002, the
payment rates in effect under such section during the period beginning on April 1, 2001, and ending on September 30, shall be
treated as the payment rates in effect during fiscal year 2001.
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–501
(c) NO EFFECT ON BBRA TEMPORARY INCREASE.—The provisions
of this section shall have no effect on the application of section
131 of BBRA.
(d) APPLICATION OF WAGE INDEX.—Notwithstanding section
1814(i) of the Social Security Act (42 U.S.C. 1395f(i)), the Secretary
of Health and Human Services shall use 1.0043 as the hospice
wage index value for the Wichita, Kansas Metropolitan Statistical
Area in calculating payments under such section for a hospice
program providing hospice care in such area during fiscal year
2000. The Secretary may provide for an appropriate timely lump
sum payment to reflect the application of the previous sentence.
(e) TECHNICAL AMENDMENT.—Section 1814(a)(7)(A)(ii) (42
U.S.C. 1395f(a)(7)(A)(ii)) is amended by striking the period at the
end and inserting a semicolon.
SEC. 322. CLARIFICATION OF PHYSICIAN CERTIFICATION.
(a) CERTIFICATION BASED ON NORMAL COURSE OF ILLNESS.—
(1) IN GENERAL.—Section 1814(a) (42 U.S.C. 1395f(a)) is
amended by adding at the end the following new sentence:
‘‘The certification regarding terminal illness of an individual
under paragraph (7) shall be based on the physician’s or medical
director’s clinical judgment regarding the normal course of the
individual’s illness.’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall apply to certifications made on or after the date
of the enactment of this Act.
(b) STUDY AND REPORT ON PHYSICIAN CERTIFICATION REQUIREMENT FOR HOSPICE BENEFITS.—
(1) STUDY.—The Secretary of Health and Human Services
shall conduct a study to examine the appropriateness of the
certification regarding terminal illness of an individual under
section 1814(a)(7) of the Social Security Act (42 U.S.C.
1395f(a)(7)) that is required in order for such individual to
receive hospice benefits under the medicare program under
title XVIII of such Act. In conducting such study, the Secretary
shall take into account the effect of the amendment made
by subsection (a).
(2) REPORT.—Not later than 2 years after the date of the
enactment of this Act, the Secretary of Health and Human
Services shall submit to Congress a report on the study conducted under paragraph (1), together with any recommendations for legislation that the Secretary deems appropriate.
SEC. 323. MEDPAC REPORT ON ACCESS TO, AND USE OF, HOSPICE
BENEFIT.
(a) IN GENERAL.—The Medicare Payment Advisory Commission
shall conduct a study to examine the factors affecting the use
of hospice benefits under the medicare program under title XVIII
of the Social Security Act, including a delay in the time (relative
to death) of entry into a hospice program, and differences in such
use between urban and rural hospice programs and based upon
the presenting condition of the patient.
(b) REPORT.—Not later than 18 months after the date of the
enactment of this Act, the Commission shall submit to Congress
a report on the study conducted under subsection (a), together
with any recommendations for legislation that the Commission
deems appropriate.
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114 STAT. 2763A–502
PUBLIC LAW 106–554—APPENDIX F
Subtitle D—Other Provisions
SEC. 331. RELIEF FROM MEDICARE PART A LATE ENROLLMENT PENALTY FOR GROUP BUY-IN FOR STATE AND LOCAL RETIREES.
(a) IN GENERAL.—Section 1818 (42 U.S.C. 1395i–2) is
amended—
(1) in subsection (c)(6), by inserting before the semicolon
at the end the following: ‘‘and shall be subject to reduction
in accordance with subsection (d)(6)’’; and
(2) by adding at the end of subsection (d) the following
new paragraph:
‘‘(6)(A) In the case where a State, a political subdivision of
a State, or an agency or instrumentality of a State or political
subdivision thereof determines to pay, for the life of each individual,
the monthly premiums due under paragraph (1) on behalf of each
of the individuals in a qualified State or local government retiree
group who meets the conditions of subsection (a), the amount of
any increase otherwise applicable under section 1839(b) (as applied
and modified by subsection (c)(6) of this section) with respect to
the monthly premium for benefits under this part for an individual
who is a member of such group shall be reduced by the total
amount of taxes paid under section 3101(b) of the Internal Revenue
Code of 1986 by such individual and under section 3111(b) by
the employers of such individual on behalf of such individual with
respect to employment (as defined in section 3121(b) of such Code).
‘‘(B) For purposes of this paragraph, the term ‘qualified State
or local government retiree group’ means all of the individuals
who retire prior to a specified date that is before January 1, 2002,
from employment in one or more occupations or other broad classes
of employees of—
‘‘(i) the State;
‘‘(ii) a political subdivision of the State; or
‘‘(iii) an agency or instrumentality of the State or political
subdivision of the State.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply to premiums for months beginning with January
1, 2002.
TITLE IV—PROVISIONS RELATING TO
PART B
Subtitle A—Hospital Outpatient Services
SEC. 401. REVISION OF HOSPITAL OUTPATIENT PPS PAYMENT UPDATE.
(a) IN GENERAL.—Section 1833(t)(3)(C)(iii) (42 U.S.C.
1395l(t)(3)(C)(iii)) is amended by striking ‘‘in each of 2000, 2001,
and 2002’’ and inserting ‘‘in each of 2000 and 2002’’.
(b) ADJUSTMENT FOR CASE MIX CHANGES.—
(1) IN GENERAL.—Section 1833(t)(3)(C) (42 U.S.C.
1395l(t)(3)(C)) is amended—
(A) by redesignating clause (iii) as clause (iv); and
(B) by inserting after clause (ii) the following new
clause:
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–503
‘‘(iii) ADJUSTMENT FOR SERVICE MIX CHANGES.—
Insofar as the Secretary determines that the adjustments for service mix under paragraph (2) for a previous year (or estimates that such adjustments for
a future year) did (or are likely to) result in a change
in aggregate payments under this subsection during
the year that are a result of changes in the coding
or classification of covered OPD services that do not
reflect real changes in service mix, the Secretary may
adjust the conversion factor computed under this
subparagraph for subsequent years so as to eliminate
the effect of such coding or classification changes.’’.
(2) EFFECTIVE DATE.—The amendments made by paragraph
(1) shall take effect as if included in the enactment of BBA.
(c) SPECIAL RULE FOR PAYMENT FOR 2001.—Notwithstanding
the amendment made by subsection (a), for purposes of making
payments under section 1833(t) of the Social Security Act (42 U.S.C.
1395l(t)) for covered OPD services furnished during 2001, the medicare OPD fee schedule amount under such section—
(1) for services furnished on or after January 1, 2001,
and before April 1, 2001, shall be the medicare OPD fee schedule amount for 2001 as determined under the provisions of
law in effect on the day before the date of the enactment
of this Act; and
(2) for services furnished on or after April 1, 2001, and
before January 1, 2002, shall be the fee schedule amount (as
determined taking into account the amendment made by subsection (a)), increased by a transitional percentage allowance
equal to 0.32 percent (to account for the timing of implementation of the full market basket update).
SEC. 402. CLARIFYING PROCESS AND STANDARDS FOR DETERMINING
ELIGIBILITY OF DEVICES FOR PASS-THROUGH PAYMENTS UNDER HOSPITAL OUTPATIENT PPS.
(a) IN GENERAL.—Section 1833(t)(6) (42 U.S.C. 1395l(t)(6)) is
amended—
(1) by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively; and
(2) by striking subparagraph (B) and inserting the following
new subparagraphs:
‘‘(B) USE OF CATEGORIES IN DETERMINING ELIGIBILITY
OF A DEVICE FOR PASS-THROUGH PAYMENTS.—The following
provisions apply for purposes of determining whether a
medical device qualifies for additional payments under
clause (ii) or (iv) of subparagraph (A):
‘‘(i) ESTABLISHMENT OF INITIAL CATEGORIES.—
‘‘(I) IN GENERAL.—The Secretary shall initially
establish under this clause categories of medical
devices based on type of device by April 1, 2001.
Such categories shall be established in a manner
such that each medical device that meets the
requirements of clause (ii) or (iv) of subparagraph
(A) as of January 1, 2001, is included in such
a category and no such device is included in more
than one category. For purposes of the preceding
sentence, whether a medical device meets such
requirements as of such date shall be determined
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114 STAT. 2763A–504
PUBLIC LAW 106–554—APPENDIX F
on the basis of the program memoranda issued
before such date.
‘‘(II) AUTHORIZATION OF IMPLEMENTATION
OTHER THAN THROUGH REGULATIONS.—The categories may be established under this clause by
program memorandum or otherwise, after consultation with groups representing hospitals,
manufacturers of medical devices, and other
affected parties.
‘‘(ii) ESTABLISHING CRITERIA FOR ADDITIONAL CATEGORIES.—
‘‘(I) IN GENERAL.—The Secretary shall establish criteria that will be used for creation of additional categories (other than those established
under clause (i)) through rulemaking (which may
include use of an interim final rule with comment
period).
‘‘(II) STANDARD.—Such categories shall be
established under this clause in a manner such
that no medical device is described by more than
one category. Such criteria shall include a test
of whether the average cost of devices that would
be included in a category and are in use at the
time the category is established is not insignificant, as described in subparagraph (A)(iv)(II).
‘‘(III) DEADLINE.—Criteria shall first be established under this clause by July 1, 2001. The Secretary may establish in compelling circumstances
categories under this clause before the date such
criteria are established.
‘‘(IV) ADDING CATEGORIES.—The Secretary
shall promptly establish a new category of medical
devices under this clause for any medical device
that meets the requirements of subparagraph
(A)(iv) and for which none of the categories in
effect (or that were previously in effect) is appropriate.
‘‘(iii) PERIOD FOR WHICH CATEGORY IS IN EFFECT.—
A category of medical devices established under clause
(i) or (ii) shall be in effect for a period of at least
2 years, but not more than 3 years, that begins—
‘‘(I) in the case of a category established under
clause (i), on the first date on which payment
was made under this paragraph for any device
described by such category (including payments
made during the period before April 1, 2001); and
‘‘(II) in the case of any other category, on
the first date on which payment is made under
this paragraph for any medical device that is
described by such category.
‘‘(iv) REQUIREMENTS TREATED AS MET.—A medical
device shall be treated as meeting the requirements
of subparagraph (A)(iv), regardless of whether the
device meets the requirement of subclause (I) of such
subparagraph, if—
‘‘(I) the device is described by a category established and in effect under clause (i); or
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114 STAT. 2763A–505
‘‘(II) the device is described by a category
established and in effect under clause (ii) and an
application under section 515 of the Federal Food,
Drug, and Cosmetic Act has been approved with
respect to the device, or the device has been cleared
for market under section 510(k) of such Act, or
the device is exempt from the requirements of
section 510(k) of such Act pursuant to subsection
(l) or (m) of section 510 of such Act or section
520(g) of such Act.
Nothing in this clause shall be construed as requiring
an application or prior approval (other than that
described in subclause (II)) in order for a covered device
described by a category to qualify for payment under
this paragraph.
‘‘(C) LIMITED PERIOD OF PAYMENT.—
‘‘(i) DRUGS AND BIOLOGICALS.—The payment under
this paragraph with respect to a drug or biological
shall only apply during a period of at least 2 years,
but not more than 3 years, that begins—
‘‘(I) on the first date this subsection is implemented in the case of a drug or biological described
in clause (i), (ii), or (iii) of subparagraph (A) and
in the case of a drug or biological described in
subparagraph (A)(iv) and for which payment under
this part is made as an outpatient hospital service
before such first date; or
‘‘(II) in the case of a drug or biological
described in subparagraph (A)(iv) not described
in subclause (I), on the first date on which payment
is made under this part for the drug or biological
as an outpatient hospital service.
‘‘(ii) MEDICAL DEVICES.—Payment shall be made
under this paragraph with respect to a medical device
only if such device—
‘‘(I) is described by a category of medical
devices established and in effect under subparagraph (B); and
‘‘(II) is provided as part of a service (or group
of services) paid for under this subsection and
provided during the period for which such category
is in effect under such subparagraph.’’.
(b) CONFORMING AMENDMENTS.—Section 1833(t) (42 U.S.C.
1395l(t)) is further amended—
(1) in paragraph (6)(A)(iv)(II), by striking ‘‘the cost of the
device, drug, or biological’’ and inserting ‘‘the cost of the drug
or biological or the average cost of the category of devices’’;
(2) in paragraph (6)(D) (as redesignated by subsection
(a)(1)), by striking ‘‘subparagraph (D)(iii)’’ in the matter preceding clause (i) and inserting ‘‘subparagraph (E)(iii)’’; and
(3) in paragraph (12)(E), by striking ‘‘additional payments
(consistent with paragraph (6)(B))’’ and inserting ‘‘additional
payments, the determination and deletion of initial and new
categories (consistent with subparagraphs (B) and (C) of paragraph (6))’’.
(c) EFFECTIVE DATE.—The amendments made by this section
take effect on the date of the enactment of this Act.
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114 STAT. 2763A–506
PUBLIC LAW 106–554—APPENDIX F
(d) TRANSITION.—
(1) IN GENERAL.—In the case of a medical device provided
as part of a service (or group of services) furnished during
the period before initial categories are implemented under
subparagraph (B)(i) of section 1833(t)(6) of the Social Security
Act (as amended by subsection (a)), payment shall be made
for such device under such section in accordance with the
provisions in effect before the date of the enactment of this
Act. In addition, beginning on the date that is 30 days after
the date of the enactment of this Act, payment shall be made
for such a device that is not included in a program memorandum described in such subparagraph if the Secretary of Health
and Human Services determines that the device (including
a device that would have been included in such program memoranda but for the requirement of subparagraph (A)(iv)(I) of
that section) is likely to be described by such an initial category.
(2) APPLICATION OF CURRENT PROCESS.—Notwithstanding
any other provision of law, the Secretary shall continue to
accept applications with respect to medical devices under the
process established pursuant to paragraph (6) of section 1833(t)
of the Social Security Act (as in effect on the day before the
date of the enactment of this Act) through December 1, 2000,
and any device—
(A) with respect to which an application was submitted
(pursuant to such process) on or before such date; and
(B) that meets the requirements of clause (ii) or (iv)
of subparagraph (A) of such paragraph (as determined
pursuant to such process),
shall be treated as a device with respect to which an initial
category is required to be established under subparagraph (B)(i)
of such paragraph (as amended by subsection (a)(2)).
SEC. 403. APPLICATION OF OPD PPS TRANSITIONAL CORRIDOR PAYMENTS TO CERTAIN HOSPITALS THAT DID NOT SUBMIT
A 1996 COST REPORT.
(a) IN GENERAL.—Section 1833(t)(7)(F)(ii)(I) (42 U.S.C.
1395l(t)(7)(F)(ii)(I)) is amended by inserting ‘‘(or in the case of
a hospital that did not submit a cost report for such period, during
the first subsequent cost reporting period ending before 2001 for
which the hospital submitted a cost report)’’ after ‘‘1996’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect as if included in the enactment of BBRA.
SEC. 404. APPLICATION OF RULES FOR DETERMINING PROVIDERBASED STATUS FOR CERTAIN ENTITIES.
(a) GRANDFATHER.—Notwithstanding any other provision of
law, effective October 1, 2000, for purposes of provider-based status
under title XVIII of the Social Security Act—
(1) any facility or organization that is treated as providerbased in relation to a hospital or critical access hospital under
such title as of such date shall continue to be treated as
provider-based in relation to such hospital or critical access
hospital under such title until October 1, 2002; and
(2) the requirements, limitations, and exclusions specified
in subsections (d), (e), (f ), and (h) of section 413.65 of title
42, Code of Federal Regulations, shall not apply to such facility
or organization in relation to such hospital or critical access
hospital until October 1, 2002.
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114 STAT. 2763A–507
(b) CONTINUING CRITERIA FOR MEETING GEOGRAPHIC LOCATION
REQUIREMENT.—Except as provided in subsection (a), in making
determinations of provider-based status on or after October 1, 2000,
the following rules shall apply:
(1) The facility or organization shall be treated as satisfying
any requirements and standards for geographic location in relation to a hospital or a critical access hospital if the facility
or organization—
(A) satisfies the requirements of section 413.65(d)(7)
of title 42, Code of Federal Regulations; or
(B) is located not more than 35 miles from the main
campus of the hospital or critical access hospital.
(2) The facility or organization shall be treated as satisfying
any of the requirements and standards for geographic location
in relation to a hospital or a critical access hospital if the
facility or organization is owned and operated by a hospital
or critical access hospital that—
(A) is owned or operated by a unit of State or local
government, is a public or private nonprofit corporation
that is formally granted governmental powers by a unit
of State or local government, or is a private hospital that
has a contract with a State or local government that
includes the operation of clinics located off the main campus
of the hospital to assure access in a well-defined service
area to health care services for low-income individuals
who are not entitled to benefits under title XVIII (or medical assistance under a State plan under title XIX) of the
Social Security Act; and
(B) has a disproportionate share adjustment percentage
(as determined under section 1886(d)(5)(F) of such Act (42
U.S.C. 1395ww(d)(5)(F))) greater than 11.75 percent or is
described in clause (i)(II) of such section.
(c) TEMPORARY CRITERIA.—For purposes of title XVIII of the
Social Security Act, a facility or organization for which a determination of provider-based status in relation to a hospital or critical
access hospital is requested on or after October 1, 2000, and before
October 1, 2002, shall be treated as having provider-based status
in relation to such a hospital or a critical access hospital for any
period before a determination is made with respect to such status
pursuant to such request.
(d) DEFINITIONS.—For purposes of this section, the terms ‘‘hospital’’ and ‘‘critical access hospital’’ have the meanings given such
terms in subsections (e) and (mm)(1), respectively, of section 1861
of the Social Security Act (42 U.S.C. 1395x).
SEC. 405. TREATMENT OF CHILDREN’S HOSPITALS UNDER PROSPECTIVE PAYMENT SYSTEM.
(a) IN GENERAL.—Section 1833(t) (42 U.S.C. 1395l(t)) is
amended—
(1) in the heading of paragraph (7)(D)(ii), by inserting
‘‘AND CHILDREN’S HOSPITALS’’ after ‘‘CANCER HOSPITALS’’; and
(2) in paragraphs (7)(D)(ii) and (11), by striking ‘‘section
1886(d)(1)(B)(v)’’ and inserting ‘‘clause (iii) or (v) of section
1886(d)(1)(B)’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply as if included in the enactment of section 202
of BBRA (113 Stat. 1501A–342).
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114 STAT. 2763A–508
PUBLIC LAW 106–554—APPENDIX F
SEC. 406. INCLUSION OF TEMPERATURE MONITORED CRYOABLATION
IN TRANSITIONAL PASS-THROUGH FOR CERTAIN MEDICAL DEVICES, DRUGS, AND BIOLOGICALS UNDER OPD
PPS.
(a) IN GENERAL.—Section 1833(t)(6)(A)(ii) (42 U.S.C.
1395l(t)(6)(A)(ii)) is amended by inserting ‘‘or temperature monitored cryoablation’’ after ‘‘device of brachytherapy’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to devices furnished on or after April 1, 2001.
Subtitle B—Provisions Relating to
Physicians’ Services
SEC. 411. GAO STUDIES RELATING TO PHYSICIANS’ SERVICES.
(a) STUDY OF SPECIALIST PHYSICIANS’ SERVICES FURNISHED IN
PHYSICIANS’ OFFICES AND HOSPITAL OUTPATIENT DEPARTMENT
SERVICES.—
(1) STUDY.—The Comptroller General of the United States
shall conduct a study to examine the appropriateness of furnishing in physicians’ offices specialist physicians’ services (such
as gastrointestinal endoscopic physicians’ services) which are
ordinarily furnished in hospital outpatient departments. In
conducting this study, the Comptroller General shall—
(A) review available scientific and clinical evidence
about the safety of performing procedures in physicians’
offices and hospital outpatient departments;
(B) assess whether resource-based practice expense relative values established by the Secretary of Health and
Human Services under the medicare physician fee schedule
under section 1848 of the Social Security Act (42 U.S.C.
1395w–4) for such specialist physicians’ services furnished
in physicians’ offices and hospital outpatient departments
create an incentive to furnish such services in physicians’
offices instead of hospital outpatient departments; and
(C) assess the implications for access to care for medicare beneficiaries if the medicare program were not to
cover such services in physicians’ offices.
(2) REPORT.—Not later than July 1, 2001, the Comptroller
General shall submit to Congress a report on such study and
include such recommendations as the Comptroller General
determines to be appropriate.
(b) STUDY OF THE RESOURCE-BASED PRACTICE EXPENSE SYSTEM.—
(1) STUDY.—The Comptroller General of the United States
shall conduct a study on the refinements to the practice expense
relative value units during the transition to a resource-based
practice expense system for physician payments under the
medicare program under title XVIII of the Social Security Act.
Such study shall examine how the Secretary of Health and
Human Services has accepted and used the practice expense
data submitted under section 212 of BBRA (113 Stat. 1501A–
350).
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–509
(2) REPORT.—Not later than July 1, 2001, the Comptroller
General shall submit to Congress a report on the study conducted under paragraph (1) together with recommendations
regarding—
(A) improvements in the process for acceptance and
use of practice expense data under section 212 of BBRA;
(B) any change or adjustment that is appropriate to
ensure full access to a spectrum of care for beneficiaries
under the medicare program; and
(C) the appropriateness of payments to physicians.
SEC. 412. PHYSICIAN GROUP PRACTICE DEMONSTRATION.
(a) IN GENERAL.—Title XVIII is amended by inserting after
section 1866 the following new sections:
‘‘DEMONSTRATION
OF APPLICATION OF PHYSICIAN VOLUME INCREASES
TO GROUP PRACTICES
‘‘SEC. 1866A. (a) DEMONSTRATION PROGRAM AUTHORIZED.—
‘‘(1) IN GENERAL.—The Secretary shall conduct demonstration projects to test and, if proven effective, expand the use
of incentives to health care groups participating in the program
under this title that—
‘‘(A) encourage coordination of the care furnished to
individuals under the programs under parts A and B by
institutional and other providers, practitioners, and suppliers of health care items and services;
‘‘(B) encourage investment in administrative structures
and processes to ensure efficient service delivery; and
‘‘(C) reward physicians for improving health outcomes.
Such projects shall focus on the efficiencies of furnishing health
care in a group-practice setting as compared to the efficiencies
of furnishing health care in other health care delivery systems.
‘‘(2) ADMINISTRATION BY CONTRACT.—Except as otherwise
specifically provided, the Secretary may administer the program
under this section in accordance with section 1866B.
‘‘(3) DEFINITIONS.—For purposes of this section, terms have
the following meanings:
‘‘(A) PHYSICIAN.—Except as the Secretary may otherwise provide, the term ‘physician’ means any individual
who furnishes services which may be paid for as physicians’
services under this title.
‘‘(B) HEALTH CARE GROUP.—The term ‘health care
group’ means a group of physicians (as defined in subparagraph (A)) organized at least in part for the purpose of
providing physicians’ services under this title. As the Secretary finds appropriate, a health care group may include
a hospital and any other individual or entity furnishing
items or services for which payment may be made under
this title that is affiliated with the health care group under
an arrangement structured so that such individual or entity
participates in a demonstration under this section and
will share in any bonus earned under subsection (d).
‘‘(b) ELIGIBILITY CRITERIA.—
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114 STAT. 2763A–510
PUBLIC LAW 106–554—APPENDIX F
‘‘(1) IN GENERAL.—The Secretary is authorized to establish
criteria for health care groups eligible to participate in a demonstration under this section, including criteria relating to numbers of health care professionals in, and of patients served
by, the group, scope of services provided, and quality of care.
‘‘(2) PAYMENT METHOD.—A health care group participating
in the demonstration under this section shall agree with respect
to services furnished to beneficiaries within the scope of the
demonstration (as determined under subsection (c))—
‘‘(A) to be paid on a fee-for-service basis; and
‘‘(B) that payment with respect to all such services
furnished by members of the health care group to such
beneficiaries shall (where determined appropriate by the
Secretary) be made to a single entity.
‘‘(3) DATA REPORTING.—A health care group participating
in a demonstration under this section shall report to the Secretary such data, at such times and in such format as the
Secretary requires, for purposes of monitoring and evaluation
of the demonstration under this section.
‘‘(c) PATIENTS WITHIN SCOPE OF DEMONSTRATION.—
‘‘(1) IN GENERAL.—The Secretary shall specify, in accordance with this subsection, the criteria for identifying those
patients of a health care group who shall be considered within
the scope of the demonstration under this section for purposes
of application of subsection (d) and for assessment of the
effectiveness of the group in achieving the objectives of this
section.
‘‘(2) OTHER CRITERIA.—The Secretary may establish additional criteria for inclusion of beneficiaries within a demonstration under this section, which may include frequency of contact
with physicians in the group or other factors or criteria that
the Secretary finds to be appropriate.
‘‘(3) NOTICE REQUIREMENTS.—In the case of each beneficiary
determined to be within the scope of a demonstration under
this section with respect to a specific health care group, the
Secretary shall ensure that such beneficiary is notified of the
incentives, and of any waivers of coverage or payment rules,
applicable to such group under such demonstration.
‘‘(d) INCENTIVES.—
‘‘(1) PERFORMANCE TARGET.—The Secretary shall establish
for each health care group participating in a demonstration
under this section—
‘‘(A) a base expenditure amount, equal to the average
total payments under parts A and B for patients served
by the health care group on a fee-for-service basis in a
base period determined by the Secretary; and
‘‘(B) an annual per capita expenditure target for
patients determined to be within the scope of the demonstration, reflecting the base expenditure amount adjusted
for risk and expected growth rates.
‘‘(2) INCENTIVE BONUS.—The Secretary shall pay to each
participating health care group (subject to paragraph (4)) a
bonus for each year under the demonstration equal to a portion
of the medicare savings realized for such year relative to the
performance target.
‘‘(3) ADDITIONAL BONUS FOR PROCESS AND OUTCOME
IMPROVEMENTS.—At such time as the Secretary has established
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–511
appropriate criteria based on evidence the Secretary determines
to be sufficient, the Secretary shall also pay to a participating
health care group (subject to paragraph (4)) an additional bonus
for a year, equal to such portion as the Secretary may designate
of the saving to the program under this title resulting from
process improvements made by and patient outcome improvements attributable to activities of the group.
‘‘(4) LIMITATION.—The Secretary shall limit bonus payments under this section as necessary to ensure that the aggregate expenditures under this title (inclusive of bonus payments)
with respect to patients within the scope of the demonstration
do not exceed the amount which the Secretary estimates would
be expended if the demonstration projects under this section
were not implemented.
‘‘PROVISIONS
FOR ADMINISTRATION OF DEMONSTRATION PROGRAM
‘‘SEC. 1866B. (a) GENERAL ADMINISTRATIVE AUTHORITY.—
‘‘(1) BENEFICIARY ELIGIBILITY.—Except as otherwise provided by the Secretary, an individual shall only be eligible
to receive benefits under the program under section 1866A
(in this section referred to as the ‘demonstration program’)
if such individual—
‘‘(A) is enrolled under the program under part B and
entitled to benefits under part A; and
‘‘(B) is not enrolled in a Medicare+Choice plan under
part C, an eligible organization under a contract under
section 1876 (or a similar organization operating under
a demonstration project authority), an organization with
an agreement under section 1833(a)(1)(A), or a PACE program under section 1894.
‘‘(2) SECRETARY’S DISCRETION AS TO SCOPE OF PROGRAM.—
The Secretary may limit the implementation of the demonstration program to—
‘‘(A) a geographic area (or areas) that the Secretary
designates for purposes of the program, based upon such
criteria as the Secretary finds appropriate;
‘‘(B) a subgroup (or subgroups) of beneficiaries or
individuals and entities furnishing items or services (otherwise eligible to participate in the program), selected on
the basis of the number of such participants that the Secretary finds consistent with the effective and efficient
implementation of the program;
‘‘(C) an element (or elements) of the program that
the Secretary determines to be suitable for implementation;
or
‘‘(D) any combination of any of the limits described
in subparagraphs (A) through (C).
‘‘(3) VOLUNTARY RECEIPT OF ITEMS AND SERVICES.—Items
and services shall be furnished to an individual under the
demonstration program only at the individual’s election.
‘‘(4) AGREEMENTS.—The Secretary is authorized to enter
into agreements with individuals and entities to furnish health
care items and services to beneficiaries under the demonstration program.
‘‘(5) PROGRAM STANDARDS AND CRITERIA.—The Secretary
shall establish performance standards for the demonstration
program including, as applicable, standards for quality of health
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114 STAT. 2763A–512
PUBLIC LAW 106–554—APPENDIX F
care items and services, cost-effectiveness, beneficiary satisfaction, and such other factors as the Secretary finds appropriate.
The eligibility of individuals or entities for the initial award,
continuation, and renewal of agreements to provide health care
items and services under the program shall be conditioned,
at a minimum, on performance that meets or exceeds such
standards.
‘‘(6) ADMINISTRATIVE REVIEW OF DECISIONS AFFECTING
INDIVIDUALS AND ENTITIES FURNISHING SERVICES.—An individual or entity furnishing services under the demonstration program shall be entitled to a review by the program administrator
(or, if the Secretary has not contracted with a program administrator, by the Secretary) of a decision not to enter into, or
to terminate, or not to renew, an agreement with the entity
to provide health care items or services under the program.
‘‘(7) SECRETARY’S REVIEW OF MARKETING MATERIALS.—An
agreement with an individual or entity furnishing services
under the demonstration program shall require the individual
or entity to guarantee that it will not distribute materials
that market items or services under the program without the
Secretary’s prior review and approval.
‘‘(8) PAYMENT IN FULL.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), an individual or entity receiving payment from the
Secretary under a contract or agreement under the demonstration program shall agree to accept such payment
as payment in full, and such payment shall be in lieu
of any payments to which the individual or entity would
otherwise be entitled under this title.
‘‘(B) COLLECTION OF DEDUCTIBLES AND COINSURANCE.—
Such individual or entity may collect any applicable deductible or coinsurance amount from a beneficiary.
‘‘(b) CONTRACTS FOR PROGRAM ADMINISTRATION.—
‘‘(1) IN GENERAL.—The Secretary may administer the demonstration program through a contract with a program administrator in accordance with the provisions of this subsection.
‘‘(2) SCOPE OF PROGRAM ADMINISTRATOR CONTRACTS.—The
Secretary may enter into such contracts for a limited geographic
area, or on a regional or national basis.
‘‘(3) ELIGIBLE CONTRACTORS.—The Secretary may contract
for the administration of the program with—
‘‘(A) an entity that, under a contract under section
1816 or 1842, determines the amount of and makes payments for health care items and services furnished under
this title; or
‘‘(B) any other entity with substantial experience in
managing the type of program concerned.
‘‘(4) CONTRACT AWARD, DURATION, AND RENEWAL.—
‘‘(A) IN GENERAL.—A contract under this subsection
shall be for an initial term of up to three years, renewable
for additional terms of up to three years.
‘‘(B) NONCOMPETITIVE AWARD AND RENEWAL FOR ENTITIES ADMINISTERING PART A OR PART B PAYMENTS.—The
Secretary may enter or renew a contract under this subsection with an entity described in paragraph (3)(A) without
regard to the requirements of section 5 of title 41, United
States Code.
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–513
‘‘(5) APPLICABILITY OF FEDERAL ACQUISITION REGULATION.—
The Federal Acquisition Regulation shall apply to program
administration contracts under this subsection.
‘‘(6) PERFORMANCE STANDARDS.—The Secretary shall establish performance standards for the program administrator
including, as applicable, standards for the quality and costeffectiveness of the program administered, and such other factors as the Secretary finds appropriate. The eligibility of entities
for the initial award, continuation, and renewal of program
administration contracts shall be conditioned, at a minimum,
on performance that meets or exceeds such standards.
‘‘(7) FUNCTIONS OF PROGRAM ADMINISTRATOR.—A program
administrator shall perform any or all of the following functions,
as specified by the Secretary:
‘‘(A) AGREEMENTS WITH ENTITIES FURNISHING HEALTH
CARE ITEMS AND SERVICES.—Determine the qualifications
of entities seeking to enter or renew agreements to provide
services under the demonstration program, and as appropriate enter or renew (or refuse to enter or renew) such
agreements on behalf of the Secretary.
‘‘(B) ESTABLISHMENT OF PAYMENT RATES.—Negotiate
or otherwise establish, subject to the Secretary’s approval,
payment rates for covered health care items and services.
‘‘(C) PAYMENT OF CLAIMS OR FEES.—Administer payments for health care items or services furnished under
the program.
‘‘(D) PAYMENT OF BONUSES.—Using such guidelines as
the Secretary shall establish, and subject to the approval
of the Secretary, make bonus payments as described in
subsection (c)(2)(A)(ii) to entities furnishing items or services for which payment may be made under the program.
‘‘(E) OVERSIGHT.—Monitor the compliance of individuals and entities with agreements under the program with
the conditions of participation.
‘‘(F) ADMINISTRATIVE REVIEW.—Conduct reviews of
adverse determinations specified in subsection (a)(6).
‘‘(G) REVIEW OF MARKETING MATERIALS.—Conduct a
review of marketing materials proposed by an entity furnishing services under the program.
‘‘(H) ADDITIONAL FUNCTIONS.—Perform such other
functions as the Secretary may specify.
‘‘(8) LIMITATION OF LIABILITY.—The provisions of section
1157(b) shall apply with respect to activities of contractors
and their officers, employees, and agents under a contract
under this subsection.
‘‘(9) INFORMATION SHARING.—Notwithstanding section 1106
and section 552a of title 5, United States Code, the Secretary
is authorized to disclose to an entity with a program administration contract under this subsection such information (including
medical information) on individuals receiving health care items
and services under the program as the entity may require
to carry out its responsibilities under the contract.
‘‘(c) RULES APPLICABLE TO BOTH PROGRAM AGREEMENTS AND
PROGRAM ADMINISTRATION CONTRACTS.—
‘‘(1) RECORDS, REPORTS, AND AUDITS.—The Secretary is
authorized to require entities with agreements to provide health
care items or services under the demonstration program, and
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PUBLIC LAW 106–554—APPENDIX F
entities with program administration contracts under subsection (b), to maintain adequate records, to afford the Secretary
access to such records (including for audit purposes), and to
furnish such reports and other materials (including audited
financial statements and performance data) as the Secretary
may require for purposes of implementation, oversight, and
evaluation of the program and of individuals’ and entities’
effectiveness in performance of such agreements or contracts.
‘‘(2) BONUSES.—Notwithstanding any other provision of
law, but subject to subparagraph (B)(ii), the Secretary may
make bonus payments under the demonstration program from
the Federal Health Insurance Trust Fund and the Federal
Supplementary Medical Insurance Trust Fund in amounts that
do not exceed the amounts authorized under the program in
accordance with the following:
‘‘(A) PAYMENTS TO PROGRAM ADMINISTRATORS.—The
Secretary may make bonus payments under the program
to program administrators.
‘‘(B) PAYMENTS TO ENTITIES FURNISHING SERVICES.—
‘‘(i) IN GENERAL.—Subject to clause (ii), the Secretary may make bonus payments to individuals or
entities furnishing items or services for which payment
may be made under the demonstration program, or
may authorize the program administrator to make such
bonus payments in accordance with such guidelines
as the Secretary shall establish and subject to the
Secretary’s approval.
‘‘(ii) LIMITATIONS.—The Secretary may condition
such payments on the achievement of such standards
related to efficiency, improvement in processes or outcomes of care, or such other factors as the Secretary
determines to be appropriate.
‘‘(3) ANTIDISCRIMINATION LIMITATION.—The Secretary shall
not enter into an agreement with an entity to provide health
care items or services under the demonstration program, or
with an entity to administer the program, unless such entity
guarantees that it will not deny, limit, or condition the coverage
or provision of benefits under the program, for individuals
eligible to be enrolled under such program, based on any health
status-related factor described in section 2702(a)(1) of the Public
Health Service Act.
‘‘(d) LIMITATIONS ON JUDICIAL REVIEW.—The following actions
and determinations with respect to the demonstration program
shall not be subject to review by a judicial or administrative tribunal:
‘‘(1) Limiting the implementation of the program under
subsection (a)(2).
‘‘(2) Establishment of program participation standards
under subsection (a)(5) or the denial or termination of, or
refusal to renew, an agreement with an entity to provide health
care items and services under the program.
‘‘(3) Establishment of program administration contract
performance standards under subsection (b)(6), the refusal to
renew a program administration contract, or the noncompetitive
award or renewal of a program administration contract under
subsection (b)(4)(B).
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–515
‘‘(4) Establishment of payment rates, through negotiation
or otherwise, under a program agreement or a program
administration contract.
‘‘(5) A determination with respect to the program (where
specifically authorized by the program authority or by subsection (c)(2))—
‘‘(A) as to whether cost savings have been achieved,
and the amount of savings; or
‘‘(B) as to whether, to whom, and in what amounts
bonuses will be paid.
‘‘(e) APPLICATION LIMITED TO PARTS A AND B.—None of the
provisions of this section or of the demonstration program shall
apply to the programs under part C.
‘‘(f ) REPORTS TO CONGRESS.—Not later than two years after
the date of the enactment of this section, and biennially thereafter
for six years, the Secretary shall report to Congress on the use
of authorities under the demonstration program. Each report shall
address the impact of the use of those authorities on expenditures,
access, and quality under the programs under this title.’’.
(b) GAO REPORT.—Not later than 2 years after the date on
which the demonstration project under section 1866A of the Social
Security Act, as added by subsection (a), is implemented, the
Comptroller General of the United States shall submit to Congress
a report on such demonstration project. The report shall include
such recommendations with respect to changes to the demonstration
project that the Comptroller General determines appropriate.
SEC. 413. STUDY ON ENROLLMENT PROCEDURES FOR GROUPS THAT
RETAIN INDEPENDENT CONTRACTOR PHYSICIANS.
(a) IN GENERAL.—The Comptroller General of the United States
shall conduct a study of the current medicare enrollment process
for groups that retain independent contractor physicians with
particular emphasis on hospital-based physicians, such as emergency department staffing groups. In conducting the evaluation,
the Comptroller General shall consult with groups that retain
independent contractor physicians and shall—
(1) review the issuance of individual medicare provider
numbers and the possible medicare program integrity
vulnerabilities of the current process;
(2) review direct and indirect costs associated with the
current process incurred by the medicare program and groups
that retain independent contractor physicians;
(3) assess the effect on program integrity by the enrollment
of groups that retain independent contractor hospital-based
physicians; and
(4) develop suggested procedures for the enrollment of these
groups.
(b) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall submit to Congress
a report on the study conducted under subsection (a).
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114 STAT. 2763A–516
PUBLIC LAW 106–554—APPENDIX F
Subtitle C—Other Services
SEC. 421. ONE-YEAR EXTENSION OF MORATORIUM ON THERAPY CAPS;
REPORT ON STANDARDS FOR SUPERVISION OF PHYSICAL
THERAPY ASSISTANTS.
(a) IN GENERAL.—Section 1833(g)(4) (42 U.S.C. 1395l(g)(4)) is
amended by striking ‘‘2000 and 2001.’’ and inserting ‘‘2000, 2001,
and 2002.’’.
(b) CONFORMING AMENDMENT TO CONTINUE FOCUSED MEDICAL
REVIEWS OF CLAIMS DURING MORATORIUM PERIOD.—Section
221(a)(2) of BBRA (113 Stat. 1501A–351) is amended by striking
‘‘(under the amendment made by paragraph (1)(B))’’.
(c) STUDY ON STANDARDS FOR SUPERVISION OF PHYSICAL THERAPIST ASSISTANTS.—
(1) STUDY.—The Secretary of Health and Human Services
shall conduct a study of the implications—
(A) of eliminating the ‘‘in the room’’ supervision
requirement for medicare payment for services of physical
therapy assistants who are supervised by physical therapists; and
(B) of such requirement on the cap imposed under
section 1833(g) of the Social Security Act (42 U.S.C.
1395l(g)) on physical therapy services.
(2) REPORT.—Not later than 18 months after the date of
the enactment of this Act, the Secretary shall submit to Congress a report on the study conducted under paragraph (1).
SEC. 422. UPDATE IN RENAL DIALYSIS COMPOSITE RATE.
(a) UPDATE.—
(1) IN GENERAL.—The last sentence of section 1881(b)(7)
(42 U.S.C. 1395rr(b)(7)) is amended by striking ‘‘for such services furnished on or after January 1, 2001, by 1.2 percent’’
and inserting ‘‘for such services furnished on or after January
1, 2001, by 2.4 percent’’.
(2) PROHIBITION ON EXCEPTIONS.—
(A) IN GENERAL.—Subject to subparagraphs (B) and
(C), the Secretary of Health and Human Services may
not provide for an exception under section 1881(b)(7) of
the Social Security Act (42 U.S.C. 1395rr(b)(7)) on or after
December 31, 2000.
(B) DEADLINE FOR NEW APPLICATIONS.—In the case
of a facility that during 2000 did not file for an exception
rate under such section, the facility may submit an application for an exception rate by not later than July 1, 2001.
(C) PROTECTION OF APPROVED EXCEPTION RATES.—Any
exception rate under such section in effect on December
31, 2000 (or, in the case of an application under subparagraph (B), as approved under such application) shall continue in effect so long as such rate is greater than the
composite rate as updated by the amendment made by
paragraph (1).
(b) DEVELOPMENT OF ESRD MARKET BASKET.—
(1) DEVELOPMENT.—The Secretary of Health and Human
Services shall collect data and develop an ESRD market basket
whereby the Secretary can estimate, before the beginning of
a year, the percentage by which the costs for the year of
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–517
the mix of labor and nonlabor goods and services included
in the ESRD composite rate under section 1881(b)(7) of the
Social Security Act (42 U.S.C. 1395rr(b)(7)) will exceed the
costs of such mix of goods and services for the preceding year.
In developing such index, the Secretary may take into account
measures of changes in—
(A) technology used in furnishing dialysis services;
(B) the manner or method of furnishing dialysis services; and
(C) the amounts by which the payments under such
section for all services billed by a facility for a year exceed
the aggregate allowable audited costs of such services for
such facility for such year.
(2) REPORT.—The Secretary of Health and Human Services
shall submit to Congress a report on the index developed under
paragraph (1) no later than July 1, 2002, and shall include
in the report recommendations on the appropriateness of an
annual or periodic update mechanism for renal dialysis services
under the medicare program under title XVIII of the Social
Security Act based on such index.
(c) INCLUSION OF ADDITIONAL SERVICES IN COMPOSITE RATE.—
(1) DEVELOPMENT.—The Secretary of Health and Human
Services shall develop a system which includes, to the maximum
extent feasible, in the composite rate used for payment under
section 1881(b)(7) of the Social Security Act (42 U.S.C.
1395rr(b)(7)), payment for clinical diagnostic laboratory tests
and drugs (including drugs paid under section 1881(b)(11)(B)
of such Act (42 U.S.C. 1395rr(b)(11)(B)) that are routinely used
in furnishing dialysis services to medicare beneficiaries but
which are currently separately billable by renal dialysis facilities.
(2) REPORT.—The Secretary shall include, as part of the
report submitted under subsection (b)(2), a report on the system
developed under paragraph (1) and recommendations on the
appropriateness of incorporating the system into medicare payment for renal dialysis services.
(d) GAO STUDY ON ACCESS TO SERVICES.—
(1) STUDY.—The Comptroller General of the United States
shall study access of medicare beneficiaries to renal dialysis
services. Such study shall include whether there is a sufficient
supply of facilities to furnish needed renal dialysis services,
whether medicare payment levels are appropriate, taking into
account audited costs of facilities for all services furnished,
to ensure continued access to such services, and improvements
in access (and quality of care) that may result in the increased
use of long nightly and short daily hemodialysis modalities.
(2) REPORT.—Not later than January 1, 2003, the Comptroller General shall submit to Congress a report on the study
conducted under paragraph (1).
(e) SPECIAL RULE FOR PAYMENT FOR 2001.—Notwithstanding
the amendment made by subsection (a)(1), for purposes of making
payments under section 1881(b) of the Social Security Act (42
U.S.C. 1395rr(b)) for dialysis services furnished during 2001, the
composite rate payment under paragraph (7) of such section—
(1) for services furnished on or after January 1, 2001,
and before April 1, 2001, shall be the composite rate payment
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114 STAT. 2763A–518
PUBLIC LAW 106–554—APPENDIX F
determined under the provisions of law in effect on the day
before the date of the enactment of this Act; and
(2) for services furnished on or after April 1, 2001, and
before January 1, 2002, shall be the composite rate payment
(as determined taking into account the amendment made by
subsection (a)(1)) increased by a transitional percentage allowance equal to 0.39 percent (to account for the timing of
implementation of the CPI update).
SEC. 423. PAYMENT FOR AMBULANCE SERVICES.
(a) RESTORATION OF FULL CPI INCREASE FOR 2001.—
(1) IN GENERAL.—Section 1834(l)(3) (42 U.S.C. 1395m(l)(3))
is amended by striking ‘‘reduced in the case of 2001 and 2002’’
each place it appears and inserting ‘‘reduced in the case of
2002’’.
(2) SPECIAL RULE FOR PAYMENT FOR 2001.—Notwithstanding
the amendment made by paragraph (1), for purposes of making
payments for ambulance services under part B of title XVIII
of the Social Security Act, for services furnished during 2001,
the ‘‘percentage increase in the consumer price index’’ specified
in section 1834(l)(3)(B) of such Act (42 U.S.C. 1395m(l)(3)(B))—
(A) for services furnished on or after January 1, 2001,
and before July 1, 2001, shall be the percentage increase
for 2001 as determined under the provisions of law in
effect on the day before the date of the enactment of this
Act; and
(B) for services furnished on or after July 1, 2001,
and before January 1, 2002, shall be equal to 4.7 percent.
(b) MILEAGE PAYMENTS.—
(1) IN GENERAL.—Section 1834(l)(2)(E) (42 U.S.C.
1395m(l)(2)(E)) is amended by inserting before the period at
the end the following: ‘‘, except that such phase-in shall provide
for full payment of any national mileage rate for ambulance
services provided by suppliers that are paid by carriers in
any of the 50 States where payment by a carrier for such
services for all such suppliers in such State did not, prior
to the implementation of the fee schedule, include a separate
amount for all mileage within the county from which the beneficiary is transported’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall apply to services furnished on or after July 1, 2001.
SEC. 424. AMBULATORY SURGICAL CENTERS.
(a) DELAY IN IMPLEMENTATION OF PROSPECTIVE PAYMENT SYSTEM.—The Secretary of Health and Human Services may not implement a revised prospective payment system for services of ambulatory surgical facilities under section 1833(i) of the Social Security
Act (42 U.S.C. 1395l(i)) before January 1, 2002.
(b) EXTENDING PHASE-IN TO 4 YEARS.—Section 226 of the BBRA
(113 Stat. 1501A–354) is amended by striking paragraphs (1) and
(2) and inserting the following:
‘‘(1) in the first year of its implementation, only a proportion
(specified by the Secretary and not to exceed one-fourth) of
the payment for such services shall be made in accordance
with such system and the remainder shall be made in accordance with current regulations; and
‘‘(2) in each of the following 2 years a proportion (specified
by the Secretary and not to exceed one-half and three-fourths,
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–519
respectively) of the payment for such services shall be made
under such system and the remainder shall be made in accordance with current regulations.’’.
(c) DEADLINE FOR USE OF 1999 OR LATER COST SURVEYS.—
Section 226 of BBRA (113 Stat. 1501A–354) is amended by adding
at the end the following:
‘‘By not later than January 1, 2003, the Secretary shall incorporate
data from a 1999 medicare cost survey or a subsequent cost survey
for purposes of implementing or revising such system.’’.
SEC. 425. FULL UPDATE FOR DURABLE MEDICAL EQUIPMENT.
(a) IN GENERAL.—Section 1834(a)(14) (42 U.S.C. 1395m(a)(14))
is amended—
(1) by redesignating subparagraph (D) as subparagraph
(F);
(2) in subparagraph (C)—
(A) by striking ‘‘through 2002’’ and inserting ‘‘through
2000’’; and
(B) by striking ‘‘and’’ at the end; and
(3) by inserting after subparagraph (C) the following new
subparagraphs:
‘‘(D) for 2001, the percentage increase in the consumer
price index for all urban consumers (U.S. city average)
for the 12-month period ending with June 2000;
‘‘(E) for 2002, 0 percentage points; and’’.
(b) SPECIAL RULE FOR PAYMENT FOR 2001.—Notwithstanding
the amendments made by subsection (a), for purposes of making
payments for durable medical equipment under section 1834(a)
of the Social Security Act (42 U.S.C. 1395m(a)), other than for
oxygen and oxygen equipment specified in paragraph (9) of such
section, the payment basis recognized for 2001 under such section—
(1) for items furnished on or after January 1, 2001, and
before July 1, 2001, shall be the payment basis for 2001 as
determined under the provisions of law in effect on the day
before the date of the enactment of this Act (including the
application of section 228(a)(1) of BBRA); and
(2) for items furnished on or after July 1, 2001, and before
January 1, 2002, shall be the payment basis that is determined
under such section 1834(a) if such section 228(a)(1) did not
apply and taking into account the amendment made by subsection (a), increased by a transitional percentage allowance
equal to 3.28 percent (to account for the timing of implementation of the CPI update).
SEC. 426. FULL UPDATE FOR ORTHOTICS AND PROSTHETICS.
(a)
IN
GENERAL.—Section
1834(h)(4)(A)
(42
U.S.C.
1395m(h)(4)(A)) is amended—
(1) by redesignating clause (vi) as clause (viii);
(2) in clause (v)—
(A) by striking ‘‘through 2002’’ and inserting ‘‘through
2000’’; and
(B) by striking ‘‘and’’ at the end; and
(3) by inserting after clause (v) the following new clause:
‘‘(vi) for 2001, the percentage increase in the consumer price index for all urban consumers (U.S. city
average) for the 12-month period ending with June
2000;
‘‘(vii) for 2002, 1 percent; and’’.
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114 STAT. 2763A–520
PUBLIC LAW 106–554—APPENDIX F
(b) SPECIAL RULE FOR PAYMENT FOR 2001.—Notwithstanding
the amendments made by subsection (a), for purposes of making
payments for prosthetic devices and orthotics and prosthetics (as
defined in subparagraphs (B) and (C) of paragraph (4) of section
1834(h) of the Social Security Act (42 U.S.C. 1395m(h)) under
such section, the payment basis recognized for 2001 under paragraph (2) of such section—
(1) for items furnished on or after January 1, 2001, and
before July 1, 2001, shall be the payment basis for 2001 as
determined under the provisions of law in effect on the day
before the date of the enactment of this Act; and
(2) for items furnished on or after July 1, 2001, and before
January 1, 2002, shall be the payment basis that is determined
under such section taking into account the amendments made
by subsection (a), increased by a transitional percentage allowance equal to 2.6 percent (to account for the timing of
implementation of the CPI update).
SEC. 427. ESTABLISHMENT OF SPECIAL PAYMENT PROVISIONS AND
REQUIREMENTS FOR PROSTHETICS AND CERTAIN CUSTOM-FABRICATED ORTHOTIC ITEMS.
(a) IN GENERAL.—Section 1834(h)(1) (42 U.S.C. 1395m(h)(1))
is amended by adding at the end the following:
‘‘(F) SPECIAL PAYMENT RULES FOR CERTAIN PROSTHETICS
AND CUSTOM-FABRICATED ORTHOTICS.—
‘‘(i) IN GENERAL.—No payment shall be made under
this subsection for an item of custom-fabricated
orthotics described in clause (ii) or for an item of
prosthetics unless such item is—
‘‘(I) furnished by a qualified practitioner; and
‘‘(II) fabricated by a qualified practitioner or
a qualified supplier at a facility that meets such
criteria as the Secretary determines appropriate.
‘‘(ii) DESCRIPTION OF CUSTOM-FABRICATED ITEM.—
‘‘(I) IN GENERAL.—An item described in this
clause is an item of custom-fabricated orthotics
that requires education, training, and experience
to custom-fabricate and that is included in a list
established by the Secretary in subclause (II). Such
an item does not include shoes and shoe inserts.
‘‘(II) LIST OF ITEMS.—The Secretary, in consultation with appropriate experts in orthotics
(including national organizations representing
manufacturers of orthotics), shall establish and
update as appropriate a list of items to which
this subparagraph applies. No item may be
included in such list unless the item is individually
fabricated for the patient over a positive model
of the patient.
‘‘(iii) QUALIFIED PRACTITIONER DEFINED.—In this
subparagraph, the term ‘qualified practitioner’ means
a physician or other individual who—
‘‘(I) is a qualified physical therapist or a qualified occupational therapist;
‘‘(II) in the case of a State that provides for
the licensing of orthotics and prosthetics, is
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–521
licensed in orthotics or prosthetics by the State
in which the item is supplied; or
‘‘(III) in the case of a State that does not
provide for the licensing of orthotics and prosthetics, is specifically trained and educated to provide
or manage the provision of prosthetics and customdesigned or -fabricated orthotics, and is certified
by the American Board for Certification in
Orthotics and Prosthetics, Inc. or by the Board
for Orthotist/Prosthetist Certification, or is
credentialed and approved by a program that the
Secretary determines, in consultation with appropriate experts in orthotics and prosthetics, has
training and education standards that are necessary to provide such prosthetics and orthotics.
‘‘(iv) QUALIFIED SUPPLIER DEFINED.—In this
subparagraph, the term ‘qualified supplier’ means any
entity that is accredited by the American Board for
Certification in Orthotics and Prosthetics, Inc. or by
the Board for Orthotist/Prosthetist Certification, or
accredited and approved by a program that the Secretary determines has accreditation and approval
standards that are essentially equivalent to those of
such Board.’’.
(b) EFFECTIVE DATE.—Not later than 1 year after the date
of the enactment of this Act, the Secretary of Health and Human
Services shall promulgate revised regulations to carry out the
amendment made by subsection (a) using a negotiated rulemaking
process under subchapter III of chapter 5 of title 5, United States
Code.
(c) GAO STUDY AND REPORT.—
(1) STUDY.—The Comptroller General of the United States
shall conduct a study on HCFA Ruling 96–1, issued on September 1, 1996, with respect to distinguishing orthotics from durable medical equipment under the medicare program under title
XVIII of the Social Security Act. The study shall assess the
following matters:
(A) The compliance of the Secretary of Health and
Human Services with the Administrative Procedures Act
(under chapter 5 of title 5, United States Code) in making
such ruling.
(B) The potential impact of such ruling on the health
care furnished to medicare beneficiaries under the medicare
program, especially those beneficiaries with degenerative
musculoskeletal conditions.
(C) The potential for fraud and abuse under the medicare program if payment were provided for orthotics used
as a component of durable medical equipment only when
made under the special payment provision for certain
prosthetics and custom-fabricated orthotics under section
1834(h)(1)(F) of the Social Security Act, as added by subsection (a) and furnished by qualified practitioners under
that section.
(D) The impact on payments under titles XVIII and
XIX of the Social Security Act if such ruling were overturned.
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114 STAT. 2763A–522
PUBLIC LAW 106–554—APPENDIX F
(2) REPORT.—Not later than 6 months after the date of
the enactment of this Act, the Comptroller General shall submit
to Congress a report on the study conducted under paragraph
(1).
SEC. 428. REPLACEMENT OF PROSTHETIC DEVICES AND PARTS.
(a) IN GENERAL.—Section 1834(h)(1) (42 U.S.C. 1395m(h)(1)),
as amended by section 427(a), is further amended by adding at
the end the following new subparagraph:
‘‘(G) REPLACEMENT OF PROSTHETIC DEVICES AND
PARTS.—
‘‘(i) IN GENERAL.—Payment shall be made for the
replacement of prosthetic devices which are artificial
limbs, or for the replacement of any part of such
devices, without regard to continuous use or useful
lifetime restrictions if an ordering physician determines that the provision of a replacement device, or
a replacement part of such a device, is necessary
because of any of the following:
‘‘(I) A change in the physiological condition
of the patient.
‘‘(II) An irreparable change in the condition
of the device, or in a part of the device.
‘‘(III) The condition of the device, or the part
of the device, requires repairs and the cost of such
repairs would be more than 60 percent of the
cost of a replacement device, or, as the case may
be, of the part being replaced.
‘‘(ii) CONFIRMATION MAY BE REQUIRED IF DEVICE
OR PART BEING REPLACED IS LESS THAN 3 YEARS OLD.—
If a physician determines that a replacement device,
or a replacement part, is necessary pursuant to clause
(i)—
‘‘(I) such determination shall be controlling;
and
‘‘(II) such replacement device or part shall be
deemed to be reasonable and necessary for purposes of section 1862(a)(1)(A);
except that if the device, or part, being replaced is
less than 3 years old (calculated from the date on
which the beneficiary began to use the device or part),
the Secretary may also require confirmation of necessity of the replacement device or replacement part,
as the case may be.’’.
(b) PREEMPTION OF RULE.—The provisions of section
1834(h)(1)(G) as added by subsection (a) shall supersede any rule
that as of the date of the enactment of this Act may have applied
a 5-year replacement rule with regard to prosthetic devices.
(c) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to items replaced on or after April 1, 2001.
SEC. 429. REVISED PART B PAYMENT FOR DRUGS AND BIOLOGICALS
AND RELATED SERVICES.
FOR
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(a) RECOMMENDATIONS FOR REVISED PAYMENT METHODOLOGY
DRUGS AND BIOLOGICALS.—
(1) STUDY.—
(A) IN GENERAL.—The Comptroller General of the
United States shall conduct a study on the reimbursement
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–523
for drugs and biologicals under the current medicare payment methodology (provided under section 1842(o) of the
Social Security Act (42 U.S.C. 1395u(o))) and for related
services under part B of title XVIII of such Act. In the
study, the Comptroller General shall—
(i) identify the average prices at which such drugs
and biologicals are acquired by physicians and other
suppliers;
(ii) quantify the difference between such average
prices and the reimbursement amount under such section; and
(iii) determine the extent to which (if any) payment
under such part is adequate to compensate physicians,
providers of services, or other suppliers of such drugs
and biologicals for costs incurred in the administration,
handling, or storage of such drugs or biologicals.
(B) CONSULTATION.—In conducting the study under
subparagraph (A), the Comptroller General shall consult
with physicians, providers of services, and suppliers of
drugs and biologicals under the medicare program under
title XVIII of such Act, as well as other organizations
involved in the distribution of such drugs and biologicals
to such physicians, providers of services, and suppliers.
(2) REPORT.—Not later than 9 months after the date of
the enactment of this Act, the Comptroller General shall submit
to Congress and to the Secretary of Health and Human Services
a report on the study conducted under this subsection, and
shall include in such report recommendations for revised payment methodologies described in paragraph (3).
(3) RECOMMENDATIONS FOR REVISED PAYMENT METHODOLOGIES.—
(A) IN GENERAL.—The Comptroller General shall provide specific recommendations for revised payment methodologies for reimbursement for drugs and biologicals and
for related services under the medicare program. The
Comptroller
General
may
include
in
the
recommendations—
(i) proposals to make adjustments under subsection
(c) of section 1848 of the Social Security Act (42 U.S.C.
1395w–4) for the practice expense component of the
physician fee schedule under such section for the costs
incurred in the administration, handling, or storage
of certain categories of such drugs and biologicals, if
appropriate; and
(ii) proposals for new payments to providers of
services or suppliers for such costs, if appropriate.
(B) ENSURING PATIENT ACCESS TO CARE.—In making
recommendations under this paragraph, the Comptroller
General shall ensure that any proposed revised payment
methodology is designed to ensure that medicare beneficiaries continue to have appropriate access to health care
services under the medicare program.
(C) MATTERS CONSIDERED.—In making recommendations under this paragraph, the Comptroller General shall
consider—
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114 STAT. 2763A–524
PUBLIC LAW 106–554—APPENDIX F
(i) the method and amount of reimbursement for
similar drugs and biologicals made by large group
health plans;
(ii) as a result of any revised payment methodology, the potential for patients to receive inpatient or
outpatient hospital services in lieu of services in a
physician’s office; and
(iii) the effect of any revised payment methodology
on the delivery of drug therapies by hospital outpatient
departments.
(D) COORDINATION WITH BBRA STUDY.—In making recommendations under this paragraph, the Comptroller General shall conclude and take into account the results of
the study provided for under section 213(a) of BBRA (113
Stat. 1501A–350).
(b) IMPLEMENTATION OF NEW PAYMENT METHODOLOGY.—
(1) IN GENERAL.—Notwithstanding any other provision of
law, based on the recommendations contained in the report
under subsection (a), the Secretary of Health and Human Services, subject to paragraph (2), shall revise the payment methodology under section 1842(o) of the Social Security Act (42
U.S.C. 1395u(o)) for drugs and biologicals furnished under part
B of the medicare program. To the extent the Secretary determines appropriate, the Secretary may provide for the adjustments to payments amounts referred to in subsection (a)(3)(A)(i)
or additional payments referred to in subsection (a)(2)(A)(ii).
(2) LIMITATION.—In revising the payment methodology
under paragraph (1), in no case may the estimated aggregate
payments for drugs and biologicals under the revised system
(including additional payments referred to in subsection
(a)(3)(A)(ii)) exceed the aggregate amount of payment for such
drugs and biologicals, as projected by the Secretary, that would
have been made under the payment methodology in effect under
such section 1842(o).
(c) MORATORIUM ON DECREASES IN PAYMENT RATES.—Notwithstanding any other provision of law, effective for drugs and
biologicals furnished on or after January 1, 2001, the Secretary
may not directly or indirectly decrease the rates of reimbursement
(in effect as of such date) for drugs and biologicals under the
current medicare payment methodology (provided under section
1842(o) of the Social Security Act (42 U.S.C. 1395u(o))) until such
time as the Secretary has reviewed the report submitted under
subsection (a)(2).
SEC. 430. CONTRAST ENHANCED DIAGNOSTIC PROCEDURES UNDER
HOSPITAL PROSPECTIVE PAYMENT SYSTEM.
(a) SEPARATE CLASSIFICATION.—Section 1833(t)(2) (42 U.S.C.
1395l(t)(2)) is amended—
(1) by striking ‘‘and’’ at the end of subparagraph (E);
(2) by striking the period at the end of subparagraph (F)
and inserting ‘‘; and’’; and
(3) by inserting after subparagraph (F) the following new
subparagraph:
‘‘(G) the Secretary shall create additional groups of
covered OPD services that classify separately those procedures that utilize contrast agents from those that do not.’’.
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–525
(b) CONFORMING AMENDMENT.—Section 1861(t)(1) (42 U.S.C.
1395x(t)(1)) is amended by inserting ‘‘(including contrast agents)’’
after ‘‘only such drugs’’.
(c) EFFECTIVE DATE.—The amendments made by this section
apply to items and services furnished on or after July 1, 2001.
SEC. 431. QUALIFICATIONS FOR COMMUNITY MENTAL HEALTH CENTERS.
(a) MEDICARE PROGRAM.—Section 1861(ff )(3)(B) (42 U.S.C.
1395x(ff )(3)(B)) is amended by striking ‘‘entity’’ and all that follows
and inserting the following: ‘‘entity that—
‘‘(i)(I) provides the mental health services described in section 1913(c)(1) of the Public Health Service Act; or
‘‘(II) in the case of an entity operating in a State that
by law precludes the entity from providing itself the service
described in subparagraph (E) of such section, provides for
such service by contract with an approved organization or entity
(as determined by the Secretary);
‘‘(ii) meets applicable licensing or certification requirements
for community mental health centers in the State in which
it is located; and
‘‘(iii) meets such additional conditions as the Secretary
shall specify to ensure (I) the health and safety of individuals
being furnished such services, (II) the effective and efficient
furnishing of such services, and (III) the compliance of such
entity with the criteria described in section 1931(c)(1) of the
Public Health Service Act.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply with respect to community mental health centers with
respect to services furnished on or after the first day of the third
month beginning after the date of the enactment of this Act.
SEC. 432. PAYMENT OF PHYSICIAN AND NONPHYSICIAN SERVICES IN
CERTAIN INDIAN PROVIDERS.
(a) IN GENERAL.—Section 1880 (42 U.S.C. 1395qq) is amended—
(1) by redesignating subsection (e), as added by section
3(b)(1) of the Alaska Native and American Indian Direct
Reimbursement Act of 2000 (Public Law 106–417), as subsection (f ); and
(2) by inserting after subsection (d) the following new subsection:
‘‘(e)(1)(A) Notwithstanding section 1835(d), subject to subparagraph (B), the Secretary shall make payment under part B to
a hospital or an ambulatory care clinic (whether provider-based
or freestanding) that is operated by the Indian Health Service
or by an Indian tribe or tribal organization (as defined for purposes
of subsection (a)) for services described in paragraph (2) furnished
in or at the direction of the hospital or clinic under the same
situations, terms, and conditions as would apply if the services
were furnished in or at the direction of such a hospital or clinic
that was not operated by such Service, tribe, or organization.
‘‘(B) Payment shall not be made for services under subparagraph (A) to the extent that payment is otherwise made for such
services under this title.
‘‘(2) The services described in this paragraph are the following:
‘‘(A) Services for which payment is made under section
1848.
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114 STAT. 2763A–526
PUBLIC LAW 106–554—APPENDIX F
‘‘(B) Services furnished by a practitioner described in section 1842(b)(18)(C) for which payment under part B is made
under a fee schedule.
‘‘(C) Services furnished by a physical therapist or occupational therapist as described in section 1861(p) for which payment under part B is made under a fee schedule.
‘‘(3) Subsection (c) shall not apply to payments made under
this subsection.’’.
(b) CONFORMING AMENDMENTS.—
(1) COVERAGE AMENDMENT.—Section 1862(a)(3) (42 U.S.C.
1395y(a)(3)) is amended—
(A) by striking the second comma after ‘‘1861(aa)(1)’’;
and
(B) by inserting ‘‘in the case of services for which
payment may be made under section 1880(e),’’ after ‘‘as
defined in section 1861(aa)(3),’’.
(2) DIRECT PAYMENT AMENDMENT.—The first sentence of
section 1842(b)(6) (42 U.S.C. 1395u(b)(6)) is amended—
(A) by striking ‘‘and (F)’’ and inserting ‘‘(F)’’; and
(B) by inserting before the period the following: ‘‘,
and (G) in the case of services in a hospital or clinic
to which section 1880(e) applies, payment shall be made
to such hospital or clinic’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to services furnished on or after July 1, 2001.
SEC. 433. GAO STUDY ON COVERAGE OF SURGICAL FIRST ASSISTING
SERVICES OF CERTIFIED REGISTERED NURSE FIRST
ASSISTANTS.
(a) STUDY.—The Comptroller General of the United States shall
conduct a study on the effect on the medicare program under
title XVIII of the Social Security Act and on medicare beneficiaries
of coverage under the program of surgical first assisting services
of certified registered nurse first assistants. The Comptroller General shall consider the following when conducting the study:
(1) Any impact on the quality of care furnished to medicare
beneficiaries by reason of such coverage.
(2) Appropriate education and training requirements for
certified registered nurse first assistants who furnish such first
assisting services.
(3) Appropriate rates of payment under the program to
such certified registered nurse first assistants for furnishing
such services, taking into account the costs of compensation,
overhead, and supervision attributable to certified registered
nurse first assistants.
(b) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall submit to Congress
a report on the study conducted under subsection (a).
SEC. 434. MEDPAC STUDY AND REPORT ON MEDICARE REIMBURSEMENT FOR SERVICES PROVIDED BY CERTAIN PROVIDERS.
(a) STUDY.—The Medicare Payment Advisory Commission shall
conduct a study on the appropriateness of the current payment
rates under the medicare program under title XVIII of the Social
Security Act for services provided by a—
(1) certified nurse-midwife (as defined in subsection (gg)(2)
of section 1861 of such Act (42 U.S.C. 1395x));
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–527
(2) physician assistant (as defined in subsection (aa)(5)(A)
of such section);
(3) nurse practitioner (as defined in such subsection); and
(4) clinical nurse specialist (as defined in subsection
(aa)(5)(B) of such section).
The study shall separately examine the appropriateness of such
payment rates for orthopedic physician assistants, taking into
consideration the requirements for accreditation, training, and education.
(b) REPORT.—Not later than 18 months after the date of the
enactment of this Act, the Commission shall submit to Congress
a report on the study conducted under subsection (a), together
with any recommendations for legislation that the Commission
determines to be appropriate as a result of such study.
SEC. 435. MEDPAC STUDY AND REPORT ON MEDICARE COVERAGE OF
SERVICES PROVIDED BY CERTAIN NONPHYSICIAN
PROVIDERS.
(a) STUDY.—
(1) IN GENERAL.—The Medicare Payment Advisory Commission shall conduct a study to determine the appropriateness
of providing coverage under the medicare program under title
XVIII of the Social Security Act for services provided by a—
(A) surgical technologist;
(B) marriage counselor;
(C) marriage and family therapist;
(D) pastoral care counselor; and
(E) licensed professional counselor of mental health.
(2) COSTS TO PROGRAM.—The study shall consider the shortterm and long-term benefits, and costs to the medicare program,
of providing the coverage described in paragraph (1).
(b) REPORT.—Not later than 18 months after the date of the
enactment of this Act, the Commission shall submit to Congress
a report on the study conducted under subsection (a), together
with any recommendations for legislation that the Commission
determines to be appropriate as a result of such study.
SEC. 436. GAO STUDY AND REPORT ON THE COSTS OF EMERGENCY
AND MEDICAL TRANSPORTATION SERVICES.
(a) STUDY.—The Comptroller General of the United States shall
conduct a study on the costs of providing emergency and medical
transportation services across the range of acuity levels of conditions
for which such transportation services are provided.
(b) REPORT.—Not later than 18 months after the date of the
enactment of this Act, the Comptroller General shall submit to
Congress a report on the study conducted under subsection (a),
together with recommendations for any changes in methodology
or payment level necessary to fairly compensate suppliers of emergency and medical transportation services and to ensure the access
of beneficiaries under the medicare program under title XVIII of
the Social Security Act.
SEC. 437. GAO STUDIES AND REPORTS ON MEDICARE PAYMENTS.
(a) GAO STUDY ON HCFA POST-PAYMENT AUDIT PROCESS.—
(1) STUDY.—The Comptroller General of the United States
shall conduct a study on the post-payment audit process under
the medicare program under title XVIII of the Social Security
Act as such process applies to physicians, including the proper
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114 STAT. 2763A–528
PUBLIC LAW 106–554—APPENDIX F
level of resources that the Health Care Financing Administration should devote to educating physicians regarding—
(A) coding and billing;
(B) documentation requirements; and
(C) the calculation of overpayments.
(2) REPORT.—Not later than 18 months after the date of
the enactment of this Act, the Comptroller General shall submit
to Congress a report on the study conducted under paragraph
(1) together with specific recommendations for changes or
improvements in the post-payment audit process described in
such paragraph.
(b) GAO STUDY ON ADMINISTRATION AND OVERSIGHT.—
(1) STUDY.—The Comptroller General of the United States
shall conduct a study on the aggregate effects of regulatory,
audit, oversight, and paperwork burdens on physicians and
other health care providers participating in the medicare program under title XVIII of the Social Security Act.
(2) REPORT.—Not later than 18 months after the date of
the enactment of this Act, the Comptroller General shall submit
to Congress a report on the study conducted under paragraph
(1) together with recommendations regarding any area in
which—
(A) a reduction in paperwork, an ease of administration, or an appropriate change in oversight and review
may be accomplished; or
(B) additional payments or education are needed to
assist physicians and other health care providers in understanding and complying with any legal or regulatory
requirements.
SEC. 438. MEDPAC STUDY ON ACCESS TO OUTPATIENT PAIN MANAGEMENT SERVICES.
(a) STUDY.—The Medicare Payment Advisory Commission shall
conduct a study on the barriers to coverage and payment for outpatient interventional pain medicine procedures under the medicare
program under title XVIII of the Social Security Act. Such study
shall examine—
(1) the specific barriers imposed under the medicare program on the provision of pain management procedures in hospital outpatient departments, ambulatory surgery centers, and
physicians’ offices; and
(2) the consistency of medicare payment policies for pain
management procedures in those different settings.
(b) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Commission shall submit to Congress a report
on the study.
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–529
TITLE V—PROVISIONS RELATING TO
PARTS A AND B
Subtitle A—Home Health Services
SEC. 501. ONE-YEAR ADDITIONAL DELAY IN APPLICATION OF 15 PERCENT REDUCTION ON PAYMENT LIMITS FOR HOME
HEALTH SERVICES.
(a) IN GENERAL.—Section 1895(b)(3)(A)(i) (42 U.S.C.
1395fff(b)(3)(A)(i)) is amended—
(1) by redesignating subclause (II) as subclause (III);
(2) in subclause (III), as redesignated, by striking
‘‘described in subclause (I)’’ and inserting ‘‘described in subclause (II)’’; and
(3) by inserting after subclause (I) the following new subclause:
‘‘(II) For the 12-month period beginning after
the period described in subclause (I), such amount
(or amounts) shall be equal to the amount (or
amounts) determined under subclause (I), updated
under subparagraph (B).’’.
(b) CHANGE IN REPORT.—Section 302(c) of BBRA (113 Stat.
1501A–360) is amended—
(1) by striking ‘‘Not later than’’ and all that follows through
‘‘(42 U.S.C. 1395fff )’’ and inserting ‘‘Not later than April 1,
2002’’; and
(2) by striking ‘‘Secretary’’ and inserting ‘‘Comptroller General of the United States’’.
(c) CASE MIX ADJUSTMENT CORRECTIONS.—
(1) IN GENERAL.—Section 1895(b)(3)(B) (42 U.S.C.
1395fff(b)(3)(B)) is amended by adding at the end the following
new clause:
‘‘(iv) ADJUSTMENT FOR CASE MIX CHANGES.—Insofar
as the Secretary determines that the adjustments
under paragraph (4)(A)(i) for a previous fiscal year
(or estimates that such adjustments for a future fiscal
year) did (or are likely to) result in a change in aggregate payments under this subsection during the fiscal
year that are a result of changes in the coding or
classification of different units of services that do not
reflect real changes in case mix, the Secretary may
adjust the standard prospective payment amount (or
amounts) under paragraph (3) for subsequent fiscal
years so as to eliminate the effect of such coding or
classification changes.’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall apply to episodes concluding on or after October 1,
2001.
SEC. 502. RESTORATION OF FULL HOME HEALTH MARKET BASKET
UPDATE FOR HOME HEALTH SERVICES FOR FISCAL YEAR
2001.
(a) IN GENERAL.—Section 1861(v)(1)(L)(x)
1395x(v)(1)(L)(x)) is amended—
(1) by striking ‘‘2001,’’; and
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114 STAT. 2763A–530
PUBLIC LAW 106–554—APPENDIX F
(2) by adding at the end the following: ‘‘With respect to
cost reporting periods beginning during fiscal year 2001, the
update to any limit under this subparagraph shall be the home
health market basket index.’’.
(b) SPECIAL RULE FOR PAYMENT FOR FISCAL YEAR 2001 BASED
ON ADJUSTED PROSPECTIVE PAYMENT AMOUNTS.—
(1) IN GENERAL.—Notwithstanding the amendments made
by subsection (a), for purposes of making payments under section 1895(b) of the Social Security Act (42 U.S.C. 1395fff(b))
for home health services furnished during fiscal year 2001,
the Secretary of Health and Human Services shall—
(A) with respect to episodes and visits ending on or
after October 1, 2000, and before April 1, 2001, use the
final standardized and budget neutral prospective payment
amounts for 60-day episodes and standardized average per
visit amounts for fiscal year 2001 as published by the
Secretary in the Federal Register on July 3, 2000 (65
Fed. Reg. 41128–41214); and
(B) with respect to episodes and visits ending on or
after April 1, 2001, and before October 1, 2001, use such
amounts increased by 2.2 percent.
(2) NO EFFECT ON OTHER PAYMENTS OR DETERMINATIONS.—
The Secretary shall not take the provisions of paragraph (1)
into account for purposes of payments, determinations, or
budget neutrality adjustments under section 1895 of the Social
Security Act.
SEC. 503. TEMPORARY TWO-MONTH PERIODIC INTERIM PAYMENT.
(a) IN GENERAL.—Notwithstanding the amendments made by
section 4603(b) of BBA (42 U.S.C. 1395fff note), in the case of
a home health agency that was receiving periodic interim payments
under section 1815(e)(2) of the Social Security Act (42 U.S.C.
1395g(e)(2)) as of September 30, 2000, and that is not described
in subsection (b), the Secretary of Health and Human Services
shall, as soon as practicable, make a single periodic interim payment
to such agency in an amount equal to four times the last full
fortnightly periodic interim payment made to such agency under
the payment system in effect prior to the implementation of the
prospective payment system under section 1895(b) of such Act (42
U.S.C. 1395fff(b)). Such amount of such periodic interim payment
shall be included in the tentative settlement of the last cost report
for the home health agency under the payment system in effect
prior to the implementation of such prospective payment system,
regardless of the ending date of such cost report.
(b) EXCEPTIONS.—The Secretary shall not make an additional
periodic interim payment under subsection (a) in the case of a
home health agency (determined as of the day that such payment
would otherwise be made) that—
(1) notifies the Secretary that such agency does not want
to receive such payment;
(2) is not receiving payments pursuant to section 405.371
of title 42, Code of Federal Regulations;
(3) is excluded from the medicare program under title
XI of the Social Security Act;
(4) no longer has a provider agreement under section 1866
of such Act (42 U.S.C. 1395cc);
(5) is no longer in business; or
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–531
(6) is subject to a court order providing for the withholding
of medicare payments under title XVIII of such Act.
SEC. 504. USE OF TELEHEALTH IN DELIVERY OF HOME HEALTH SERVICES.
Section 1895 (42 U.S.C. 1395fff ) is amended by adding at
the end the following new subsection:
‘‘(e) CONSTRUCTION RELATED TO HOME HEALTH SERVICES.—
‘‘(1) TELECOMMUNICATIONS.—Nothing in this section shall
be construed as preventing a home health agency furnishing
a home health unit of service for which payment is made
under the prospective payment system established by this section for such units of service from furnishing services via a
telecommunication system if such services—
‘‘(A) do not substitute for in-person home health services ordered as part of a plan of care certified by a physician
pursuant to section 1814(a)(2)(C) or 1835(a)(2)(A); and
‘‘(B) are not considered a home health visit for purposes
of eligibility or payment under this title.
‘‘(2) PHYSICIAN CERTIFICATION.—Nothing in this section
shall be construed as waiving the requirement for a physician
certification under section 1814(a)(2)(C) or 1835(a)(2)(A) of such
Act (42 U.S.C. 1395f(a)(2)(C), 1395n(a)(2)(A)) for the payment
for home health services, whether or not furnished via a telecommunications system.’’.
SEC. 505. STUDY ON COSTS TO HOME HEALTH AGENCIES OF PURCHASING NONROUTINE MEDICAL SUPPLIES.
(a) STUDY.—The Comptroller General of the United States shall
conduct a study on variations in prices paid by home health agencies
furnishing home health services under the medicare program under
title XVIII of the Social Security Act in purchasing nonroutine
medical supplies, including ostomy supplies, and volumes of such
supplies used, shall determine the effect (if any) of variations on
prices and volumes in the provision of such services.
(b) REPORT.—Not later than August 15, 2001, the Comptroller
General shall submit to Congress a report on the study conducted
under subsection (a), and shall include in the report recommendations respecting whether payment for nonroutine medical supplies
furnished in connection with home health services should be made
separately from the prospective payment system for such services.
SEC. 506. TREATMENT OF BRANCH OFFICES; GAO STUDY ON SUPERVISION OF HOME HEALTH CARE PROVIDED IN ISOLATED
RURAL AREAS.
(a) TREATMENT OF BRANCH OFFICES.—
(1) IN GENERAL.—Notwithstanding any other provision of
law, in determining for purposes of title XVIII of the Social
Security Act whether an office of a home health agency constitutes a branch office or a separate home health agency,
neither the time nor distance between a parent office of the
home health agency and a branch office shall be the sole
determinant of a home health agency’s branch office status.
(2) CONSIDERATION OF FORMS OF TECHNOLOGY IN DEFINITION OF SUPERVISION.—The Secretary of Health and Human
Services may include forms of technology in determining what
constitutes ‘‘supervision’’ for purposes of determining a home
heath agency’s branch office status under paragraph (1).
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114 STAT. 2763A–532
PUBLIC LAW 106–554—APPENDIX F
(b) GAO STUDY.—
(1) STUDY.—The Comptroller General of the United States
shall conduct a study of the provision of adequate supervision
to maintain quality of home health services delivered under
the medicare program under title XVIII of the Social Security
Act in isolated rural areas. The study shall evaluate the methods that home health agency branches and subunits use to
maintain adequate supervision in the delivery of services to
clients residing in those areas, how these methods of supervision compare to requirements that subunits independently
meet medicare conditions of participation, and the resources
utilized by subunits to meet such conditions.
(2) REPORT.—Not later than January 1, 2002, the Comptroller General shall submit to Congress a report on the study
conducted under paragraph (1). The report shall include recommendations on whether exceptions are needed for subunits
and branches of home health agencies under the medicare
program to maintain access to the home health benefit or
whether alternative policies should be developed to assure adequate supervision and access and recommendations on whether
a national standard for supervision is appropriate.
SEC. 507. CLARIFICATION OF THE HOMEBOUND DEFINITION UNDER
THE MEDICARE HOME HEALTH BENEFIT.
(a) CLARIFICATION.—
(1) IN GENERAL.—Sections 1814(a) and 1835(a) (42 U.S.C.
1395f(a) and 1395n(a)) are each amended—
(A) in the last sentence, by striking ‘‘, and that absences
of the individual from home are infrequent or of relatively
short duration, or are attributable to the need to receive
medical treatment’’; and
(B) by adding at the end the following new sentences:
‘‘Any absence of an individual from the home attributable
to the need to receive health care treatment, including
regular absences for the purpose of participating in therapeutic, psychosocial, or medical treatment in an adult daycare program that is licensed or certified by a State, or
accredited, to furnish adult day-care services in the State
shall not disqualify an individual from being considered
to be ‘confined to his home’. Any other absence of an
individual from the home shall not so disqualify an individual if the absence is of infrequent or of relatively short
duration. For purposes of the preceding sentence, any
absence for the purpose of attending a religious service
shall be deemed to be an absence of infrequent or short
duration.’’.
(2) EFFECTIVE DATE.—The amendments made by paragraph
(1) shall apply to home health services furnished on or after
the date of the enactment of this Act.
(b) STUDY.—
(1) IN GENERAL.—The Comptroller General of the United
States shall conduct an evaluation of the effect of the amendment on the cost of and access to home health services under
the medicare program under title XVIII of the Social Security
Act.
(2) REPORT.—Not later than 1 year after the date of the
enactment of this Act, the Comptroller General shall submit
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–533
to Congress a report on the study conducted under paragraph
(1).
SEC. 508. TEMPORARY INCREASE FOR HOME HEALTH SERVICES FURNISHED IN A RURAL AREA.
(a) 24-MONTH INCREASE BEGINNING APRIL 1, 2001.—In the
case of home health services furnished in a rural area (as defined
in section 1886(d)(2)(D) of the Social Security Act (42 U.S.C.
1395ww(d)(2)(D))) on or after April 1, 2001, and before April 1,
2003, the Secretary of Health and Human Services shall increase
the payment amount otherwise made under section 1895 of such
Act (42 U.S.C. 1395fff ) for such services by 10 percent.
(b) WAIVING BUDGET NEUTRALITY.—The Secretary shall not
reduce the standard prospective payment amount (or amounts)
under section 1895 of the Social Security Act (42 U.S.C. 1395fff )
applicable to home health services furnished during a period to
offset the increase in payments resulting from the application of
subsection (a).
Subtitle B—Direct Graduate Medical
Education
SEC. 511. INCREASE IN FLOOR FOR DIRECT GRADUATE MEDICAL EDUCATION PAYMENTS.
Section 1886(h)(2)(D)(iii) (42 U.S.C. 1395ww(h)(2)(D)(iii)) is
amended—
(1) in the heading, by striking ‘‘IN FISCAL YEAR 2001 AT
70 PERCENT OF’’ and inserting ‘‘FOR’’; and
(2) by inserting after ‘‘70 percent’’ the following: ‘‘, and
for the cost reporting period beginning during fiscal year 2002
shall not be less than 85 percent,’’.
SEC.
512.
CHANGE
IN
DISTRIBUTION
FORMULA
FOR
MEDICARE+CHOICE-RELATED NURSING AND ALLIED
HEALTH EDUCATION COSTS.
(a)
IN
GENERAL.—Section
1886(l)(2)(C)
(42
U.S.C.
1395ww(l)(2)(C)) is amended by striking all that follows ‘‘multiplied
by’’ and inserting the following: ‘‘the ratio of—
‘‘(i) the product of (I) the Secretary’s estimate of
the ratio of the amount of payments made under section 1861(v) to the hospital for nursing and allied
health education activities for the hospital’s cost reporting period ending in the second preceding fiscal year,
to the hospital’s total inpatient days for such period,
and (II) the total number of inpatient days (as established by the Secretary) for such period which are
attributable to services furnished to individuals who
are enrolled under a risk sharing contract with an
eligible organization under section 1876 and who are
entitled to benefits under part A or who are enrolled
with a Medicare+Choice organization under part C;
to
‘‘(ii) the sum of the products determined under
clause (i) for such cost reporting periods.’’.
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114 STAT. 2763A–534
PUBLIC LAW 106–554—APPENDIX F
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to portions of cost reporting periods occurring on or
after January 1, 2001.
Subtitle C—Changes in Medicare Coverage
and Appeals Process
SEC. 521. REVISIONS TO MEDICARE APPEALS PROCESS.
(a) CONDUCT OF RECONSIDERATIONS OF DETERMINATIONS BY
INDEPENDENT CONTRACTORS.—Section 1869 (42 U.S.C. 1395ff ) is
amended to read as follows:
‘‘DETERMINATIONS;
APPEALS
‘‘SEC. 1869. (a) INITIAL DETERMINATIONS.—
‘‘(1) PROMULGATIONS OF REGULATIONS.—The Secretary shall
promulgate regulations and make initial determinations with
respect to benefits under part A or part B in accordance with
those regulations for the following:
‘‘(A) The initial determination of whether an individual
is entitled to benefits under such parts.
‘‘(B) The initial determination of the amount of benefits
available to the individual under such parts.
‘‘(C) Any other initial determination with respect to
a claim for benefits under such parts, including an initial
determination by the Secretary that payment may not be
made, or may no longer be made, for an item or service
under such parts, an initial determination made by a utilization and quality control peer review organization under
section 1154(a)(2), and an initial determination made by
an entity pursuant to a contract (other than a contract
under section 1852) with the Secretary to administer provisions of this title or title XI.
‘‘(2) DEADLINES FOR MAKING INITIAL DETERMINATIONS.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), in
promulgating regulations under paragraph (1), initial
determinations shall be concluded by not later than the
45-day period beginning on the date the fiscal intermediary
or the carrier, as the case may be, receives a claim for
benefits from an individual as described in paragraph (1).
Notice of such determination shall be mailed to the individual filing the claim before the conclusion of such 45-day
period.
‘‘(B) CLEAN CLAIMS.—Subparagraph (A) shall not apply
with respect to any claim that is subject to the requirements of section 1816(c)(2) or 1842(c)(2).
‘‘(3) REDETERMINATIONS.—
‘‘(A) IN GENERAL.—In promulgating regulations under
paragraph (1) with respect to initial determinations, such
regulations shall provide for a fiscal intermediary or a
carrier to make a redetermination with respect to a claim
for benefits that is denied in whole or in part.
‘‘(B) LIMITATIONS.—
‘‘(i) APPEAL RIGHTS.—No initial determination may
be reconsidered or appealed under subsection (b) unless
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–535
the fiscal intermediary or carrier has made a redetermination of that initial determination under this paragraph.
‘‘(ii) DECISIONMAKER.—No redetermination may be
made by any individual involved in the initial determination.
‘‘(C) DEADLINES.—
‘‘(i) FILING FOR REDETERMINATION.—A redetermination under subparagraph (A) shall be available
only if notice is filed with the Secretary to request
the redetermination by not later than the end of the
120-day period beginning on the date the individual
receives notice of the initial determination under paragraph (2).
‘‘(ii) CONCLUDING REDETERMINATIONS.—Redeterminations shall be concluded by not later than the
30-day period beginning on the date the fiscal intermediary or the carrier, as the case may be, receives
a request for a redetermination. Notice of such determination shall be mailed to the individual filing the
claim before the conclusion of such 30-day period.
‘‘(D) CONSTRUCTION.—For purposes of the succeeding
provisions of this section a redetermination under this
paragraph shall be considered to be part of the initial
determination.
‘‘(b) APPEAL RIGHTS.—
‘‘(1) IN GENERAL.—
‘‘(A) RECONSIDERATION OF INITIAL DETERMINATION.—
Subject to subparagraph (D), any individual dissatisfied
with any initial determination under subsection (a)(1) shall
be entitled to reconsideration of the determination, and,
subject to subparagraphs (D) and (E), a hearing thereon
by the Secretary to the same extent as is provided in
section 205(b) and to judicial review of the Secretary’s
final decision after such hearing as is provided in section
205(g). For purposes of the preceding sentence, any reference to the ‘Commissioner of Social Security’ or the ‘Social
Security Administration’ in subsection (g) or (l) of section
205 shall be considered a reference to the ‘Secretary’ or
the ‘Department of Health and Human Services’, respectively.
‘‘(B) REPRESENTATION BY PROVIDER OR SUPPLIER.—
‘‘(i) IN GENERAL.—Sections 206(a), 1102, and 1871
shall not be construed as authorizing the Secretary
to prohibit an individual from being represented under
this section by a person that furnishes or supplies
the individual, directly or indirectly, with services or
items, solely on the basis that the person furnishes
or supplies the individual with such a service or item.
‘‘(ii) MANDATORY WAIVER OF RIGHT TO PAYMENT
FROM BENEFICIARY.—Any person that furnishes services or items to an individual may not represent an
individual under this section with respect to the issue
described in section 1879(a)(2) unless the person has
waived any rights for payment from the beneficiary
with respect to the services or items involved in the
appeal.
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114 STAT. 2763A–536
PUBLIC LAW 106–554—APPENDIX F
‘‘(iii) PROHIBITION ON PAYMENT FOR REPRESENTAa person furnishes services or items to an
individual and represents the individual under this
section, the person may not impose any financial liability on such individual in connection with such representation.
‘‘(iv) REQUIREMENTS FOR REPRESENTATIVES OF A
BENEFICIARY.—The provisions of section 205( j) and of
section 206 (other than subsection (a)(4) of such section) regarding representation of claimants shall apply
to representation of an individual with respect to
appeals under this section in the same manner as
they apply to representation of an individual under
those sections.
‘‘(C) SUCCESSION OF RIGHTS IN CASES OF ASSIGNMENT.—
The right of an individual to an appeal under this section
with respect to an item or service may be assigned to
the provider of services or supplier of the item or service
upon the written consent of such individual using a standard form established by the Secretary for such an assignment.
‘‘(D) TIME LIMITS FOR FILING APPEALS.—
‘‘(i) RECONSIDERATIONS.—Reconsideration under
subparagraph (A) shall be available only if the individual described in subparagraph (A) files notice with
the Secretary to request reconsideration by not later
than the end of the 180-day period beginning on the
date the individual receives notice of the redetermination under subsection (a)(3), or within such additional
time as the Secretary may allow.
‘‘(ii) HEARINGS CONDUCTED BY THE SECRETARY.—
The Secretary shall establish in regulations time limits
for the filing of a request for a hearing by the Secretary
in accordance with provisions in sections 205 and 206.
‘‘(E) AMOUNTS IN CONTROVERSY.—
‘‘(i) IN GENERAL.—A hearing (by the Secretary)
shall not be available to an individual under this section if the amount in controversy is less than $100,
and judicial review shall not be available to the individual if the amount in controversy is less than $1,000.
‘‘(ii) AGGREGATION OF CLAIMS.—In determining the
amount in controversy, the Secretary, under regulations, shall allow two or more appeals to be aggregated
if the appeals involve—
‘‘(I) the delivery of similar or related services
to the same individual by one or more providers
of services or suppliers, or
‘‘(II) common issues of law and fact arising
from services furnished to two or more individuals
by one or more providers of services or suppliers.
‘‘(F) EXPEDITED PROCEEDINGS.—
‘‘(i) EXPEDITED DETERMINATION.—In the case of an
individual who has received notice from a provider
of services that such provider plans—
‘‘(I) to terminate services provided to an
individual and a physician certifies that failure
to continue the provision of such services is likely
TION.—If
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–537
to place the individual’s health at significant risk,
or
‘‘(II) to discharge the individual from the provider of services,
the individual may request, in writing or orally, an
expedited determination or an expedited reconsideration of an initial determination made under subsection (a)(1), as the case may be, and the Secretary
shall provide such expedited determination or expedited reconsideration.
‘‘(ii) EXPEDITED HEARING.—In a hearing by the Secretary under this section, in which the moving party
alleges that no material issues of fact are in dispute,
the Secretary shall make an expedited determination
as to whether any such facts are in dispute and, if
not, shall render a decision expeditiously.
‘‘(G) REOPENING AND REVISION OF DETERMINATIONS.—
The Secretary may reopen or revise any initial determination or reconsidered determination described in this subsection under guidelines established by the Secretary in
regulations.
‘‘(c) CONDUCT OF RECONSIDERATIONS BY INDEPENDENT CONTRACTORS.—
‘‘(1) IN GENERAL.—The Secretary shall enter into contracts
with qualified independent contractors to conduct reconsiderations of initial determinations made under subparagraphs (B)
and (C) of subsection (a)(1). Contracts shall be for an initial
term of three years and shall be renewable on a triennial
basis thereafter.
‘‘(2) QUALIFIED INDEPENDENT CONTRACTOR.—For purposes
of this subsection, the term ‘qualified independent contractor’
means an entity or organization that is independent of any
organization under contract with the Secretary that makes
initial determinations under subsection (a)(1), and that meets
the requirements established by the Secretary consistent with
paragraph (3).
‘‘(3) REQUIREMENTS.—Any qualified independent contractor
entering into a contract with the Secretary under this subsection shall meet all of the following requirements:
‘‘(A) IN GENERAL.—The qualified independent contractor shall perform such duties and functions and assume
such responsibilities as may be required by the Secretary
to carry out the provisions of this subsection, and shall
have sufficient training and expertise in medical science
and legal matters to make reconsiderations under this subsection.
‘‘(B) RECONSIDERATIONS.—
‘‘(i) IN GENERAL.—The qualified independent contractor shall review initial determinations. Where an
initial determination is made with respect to whether
an item or service is reasonable and necessary for
the diagnosis or treatment of illness or injury (under
section 1862(a)(1)(A)), such review shall include consideration of the facts and circumstances of the initial
determination by a panel of physicians or other appropriate health care professionals and any decisions with
respect to the reconsideration shall be based on
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114 STAT. 2763A–538
PUBLIC LAW 106–554—APPENDIX F
applicable information, including clinical experience
and medical, technical, and scientific evidence.
‘‘(ii) EFFECT OF NATIONAL AND LOCAL COVERAGE
DETERMINATIONS.—
‘‘(I) NATIONAL COVERAGE DETERMINATIONS.—
If the Secretary has made a national coverage
determination pursuant to the requirements established under the third sentence of section 1862(a),
such determination shall be binding on the qualified independent contractor in making a decision
with respect to a reconsideration under this section.
‘‘(II) LOCAL COVERAGE DETERMINATIONS.—If
the Secretary has made a local coverage determination, such determination shall not be binding
on the qualified independent contractor in making
a decision with respect to a reconsideration under
this section. Notwithstanding the previous sentence, the qualified independent contractor shall
consider the local coverage determination in making such decision.
‘‘(III) ABSENCE OF NATIONAL OR LOCAL COVERAGE DETERMINATION.—In the absence of such
a national coverage determination or local coverage
determination, the qualified independent contractor shall make a decision with respect to the
reconsideration based on applicable information,
including clinical experience and medical, technical, and scientific evidence.
‘‘(C) DEADLINES FOR DECISIONS.—
‘‘(i) RECONSIDERATIONS.—Except as provided in
clauses (iii) and (iv), the qualified independent contractor shall conduct and conclude a reconsideration under
subparagraph (B), and mail the notice of the decision
with respect to the reconsideration by not later than
the end of the 30-day period beginning on the date
a request for reconsideration has been timely filed.
‘‘(ii) CONSEQUENCES OF FAILURE TO MEET DEADLINE.—In the case of a failure by the qualified
independent contractor to mail the notice of the decision by the end of the period described in clause (i)
or to provide notice by the end of the period described
in clause (iii), as the case may be, the party requesting
the reconsideration or appeal may request a hearing
before the Secretary, notwithstanding any requirements for a reconsidered determination for purposes
of the party’s right to such hearing.
‘‘(iii) EXPEDITED RECONSIDERATIONS.—The qualified independent contractor shall perform an expedited
reconsideration under subsection (b)(1)(F) as follows:
‘‘(I) DEADLINE FOR DECISION.—Notwithstanding section 216( j) and subject to clause (iv), not
later than the end of the 72-hour period beginning
on the date the qualified independent contractor
has received a request for such reconsideration
and has received such medical or other records
needed for such reconsideration, the qualified
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–539
independent contractor shall provide notice (by
telephone and in writing) to the individual and
the provider of services and attending physician
of the individual of the results of the reconsideration. Such reconsideration shall be conducted
regardless of whether the provider of services or
supplier will charge the individual for continued
services or whether the individual will be liable
for payment for such continued services.
‘‘(II) CONSULTATION WITH BENEFICIARY.—In
such reconsideration, the qualified independent
contractor shall solicit the views of the individual
involved.
‘‘(III) SPECIAL RULE FOR HOSPITAL DISCHARGES.—A reconsideration of a discharge from
a hospital shall be conducted under this clause
in accordance with the provisions of paragraphs
(2), (3), and (4) of section 1154(e) as in effect on
the date that precedes the date of the enactment
of this subparagraph.
‘‘(iv) EXTENSION.—An individual requesting a
reconsideration under this subparagraph may be
granted such additional time as the individual specifies
(not to exceed 14 days) for the qualified independent
contractor to conclude the reconsideration. The individual may request such additional time orally or in writing.
‘‘(D) LIMITATION ON INDIVIDUAL REVIEWING DETERMINATIONS.—
‘‘(i) PHYSICIANS AND HEALTH CARE PROFESSIONAL.—
No physician or health care professional under the
employ of a qualified independent contractor may
review—
‘‘(I) determinations regarding health care services furnished to a patient if the physician or
health care professional was directly responsible
for furnishing such services; or
‘‘(II) determinations regarding health care
services provided in or by an institution, organization, or agency, if the physician or any member
of the family of the physician or health care professional has, directly or indirectly, a significant
financial interest in such institution, organization,
or agency.
‘‘(ii) FAMILY DESCRIBED.—For purposes of this
paragraph, the family of a physician or health care
professional includes the spouse (other than a spouse
who is legally separated from the physician or health
care professional under a decree of divorce or separate
maintenance), children (including stepchildren and
legally adopted children), grandchildren, parents, and
grandparents of the physician or health care professional.
‘‘(E) EXPLANATION OF DECISION.—Any decision with
respect to a reconsideration of a qualified independent contractor shall be in writing, and shall include a detailed
explanation of the decision as well as a discussion of the
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114 STAT. 2763A–540
PUBLIC LAW 106–554—APPENDIX F
pertinent facts and applicable regulations applied in making such decision, and in the case of a determination of
whether an item or service is reasonable and necessary
for the diagnosis or treatment of illness or injury (under
section 1862(a)(1)(A)) an explanation of the medical and
scientific rationale for the decision.
‘‘(F) NOTICE REQUIREMENTS.—Whenever a qualified
independent contractor makes a decision with respect to
a reconsideration under this subsection, the qualified
independent contractor shall promptly notify the entity
responsible for the payment of claims under part A or
part B of such decision.
‘‘(G) DISSEMINATION OF DECISIONS ON RECONSIDERATIONS.—Each qualified independent contractor shall make
available all decisions with respect to reconsiderations of
such qualified independent contractors to fiscal intermediaries (under section 1816), carriers (under section
1842), peer review organizations (under part B of title
XI),
Medicare+Choice
organizations
offering
Medicare+Choice plans under part C, other entities under
contract with the Secretary to make initial determinations
under part A or part B or title XI, and to the public.
The Secretary shall establish a methodology under which
qualified independent contractors shall carry out this
subparagraph.
‘‘(H) ENSURING CONSISTENCY IN DECISIONS.—Each
qualified independent contractor shall monitor its decisions
with respect to reconsiderations to ensure the consistency
of such decisions with respect to requests for reconsideration of similar or related matters.
‘‘(I) DATA COLLECTION.—
‘‘(i) IN GENERAL.—Consistent with the requirements of clause (ii), a qualified independent contractor
shall collect such information relevant to its functions,
and keep and maintain such records in such form
and manner as the Secretary may require to carry
out the purposes of this section and shall permit access
to and use of any such information and records as
the Secretary may require for such purposes.
‘‘(ii) TYPE OF DATA COLLECTED.—Each qualified
independent contractor shall keep accurate records of
each decision made, consistent with standards established by the Secretary for such purpose. Such records
shall be maintained in an electronic database in a
manner that provides for identification of the following:
‘‘(I) Specific claims that give rise to appeals.
‘‘(II) Situations suggesting the need for
increased education for providers of services, physicians, or suppliers.
‘‘(III) Situations suggesting the need for
changes in national or local coverage policy.
‘‘(IV) Situations suggesting the need for
changes in local medical review policies.
‘‘(iii)
ANNUAL
REPORTING.—Each
qualified
independent contractor shall submit annually to the
Secretary (or otherwise as the Secretary may request)
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–541
records maintained under this paragraph for the previous year.
‘‘(J) HEARINGS BY THE SECRETARY.—The qualified
independent contractor shall (i) prepare such information
as is required for an appeal of a decision of the contractor
with respect to a reconsideration to the Secretary for a
hearing, including as necessary, explanations of issues
involved in the decision and relevant policies, and (ii)
participate in such hearings as required by the Secretary.
‘‘(4) NUMBER OF QUALIFIED INDEPENDENT CONTRACTORS.—
The Secretary shall enter into contracts with not fewer than
12 qualified independent contractors under this subsection.
‘‘(5) LIMITATION ON QUALIFIED INDEPENDENT CONTRACTOR
LIABILITY.—No qualified independent contractor having a contract with the Secretary under this subsection and no person
who is employed by, or who has a fiduciary relationship with,
any such qualified independent contractor or who furnishes
professional services to such qualified independent contractor,
shall be held by reason of the performance of any duty, function,
or activity required or authorized pursuant to this subsection
or to a valid contract entered into under this subsection, to
have violated any criminal law, or to be civilly liable under
any law of the United States or of any State (or political
subdivision thereof ) provided due care was exercised in the
performance of such duty, function, or activity.
‘‘(d) DEADLINES FOR HEARINGS BY THE SECRETARY.—
‘‘(1) HEARING BY ADMINISTRATIVE LAW JUDGE.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), an administrative law judge shall conduct and conclude
a hearing on a decision of a qualified independent contractor under subsection (c) and render a decision on such
hearing by not later than the end of the 90-day period
beginning on the date a request for hearing has been
timely filed.
‘‘(B) WAIVER OF DEADLINE BY PARTY SEEKING HEARING.—The 90-day period under subparagraph (A) shall not
apply in the case of a motion or stipulation by the party
requesting the hearing to waive such period.
‘‘(2) DEPARTMENTAL APPEALS BOARD REVIEW.—
‘‘(A) IN GENERAL.—The Departmental Appeals Board
of the Department of Health and Human Services shall
conduct and conclude a review of the decision on a hearing
described in paragraph (1) and make a decision or remand
the case to the administrative law judge for reconsideration
by not later than the end of the 90-day period beginning
on the date a request for review has been timely filed.
‘‘(B) DAB HEARING PROCEDURE.—In reviewing a decision on a hearing under this paragraph, the Departmental
Appeals Board shall review the case de novo.
‘‘(3) CONSEQUENCES OF FAILURE TO MEET DEADLINES.—
‘‘(A) HEARING BY ADMINISTRATIVE LAW JUDGE.—In the
case of a failure by an administrative law judge to render
a decision by the end of the period described in paragraph
(1), the party requesting the hearing may request a review
by the Departmental Appeals Board of the Department
of Health and Human Services, notwithstanding any
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114 STAT. 2763A–542
PUBLIC LAW 106–554—APPENDIX F
requirements for a hearing for purposes of the party’s
right to such a review.
‘‘(B) DEPARTMENTAL APPEALS BOARD REVIEW.—In the
case of a failure by the Departmental Appeals Board to
render a decision by the end of the period described in
paragraph (2), the party requesting the hearing may seek
judicial review, notwithstanding any requirements for a
hearing for purposes of the party’s right to such judicial
review.
‘‘(e) ADMINISTRATIVE PROVISIONS.—
‘‘(1) LIMITATION ON REVIEW OF CERTAIN REGULATIONS.—
A regulation or instruction that relates to a method for determining the amount of payment under part B and that was
initially issued before January 1, 1981, shall not be subject
to judicial review.
‘‘(2) OUTREACH.—The Secretary shall perform such outreach activities as are necessary to inform individuals entitled
to benefits under this title and providers of services and suppliers with respect to their rights of, and the process for, appeals
made under this section. The Secretary shall use the tollfree telephone number maintained by the Secretary under section 1804(b) to provide information regarding appeal rights
and respond to inquiries regarding the status of appeals.
‘‘(3) CONTINUING EDUCATION REQUIREMENT FOR QUALIFIED
INDEPENDENT
JUDGES.—The
CONTRACTORS
AND
ADMINISTRATIVE
LAW
Secretary shall provide to each qualified
independent contractor, and, in consultation with the Commissioner of Social Security, to administrative law judges that
decide appeals of reconsiderations of initial determinations or
other decisions or determinations under this section, such
continuing education with respect to coverage of items and
services under this title or policies of the Secretary with respect
to part B of title XI as is necessary for such qualified independent contractors and administrative law judges to make informed
decisions with respect to appeals.
‘‘(4) REPORTS.—
‘‘(A) ANNUAL REPORT TO CONGRESS.—The Secretary
shall submit to Congress an annual report describing the
number of appeals for the previous year, identifying issues
that require administrative or legislative actions, and
including any recommendations of the Secretary with
respect to such actions. The Secretary shall include in
such report an analysis of determinations by qualified
independent contractors with respect to inconsistent
decisions and an analysis of the causes of any such
inconsistencies.
‘‘(B) SURVEY.—Not less frequently than every 5 years,
the Secretary shall conduct a survey of a valid sample
of individuals entitled to benefits under this title who have
filed appeals of determinations under this section, providers
of services, and suppliers to determine the satisfaction
of such individuals or entities with the process for appeals
of determinations provided for under this section and education and training provided by the Secretary with respect
to that process. The Secretary shall submit to Congress
a report describing the results of the survey, and shall
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–543
include any recommendations for administrative or legislative actions that the Secretary determines appropriate.’’.
(b) APPLICABILITY OF REQUIREMENTS AND LIMITATIONS ON
LIABILITY OF QUALIFIED INDEPENDENT CONTRACTORS TO
MEDICARE+CHOICE INDEPENDENT APPEALS CONTRACTORS.—Section
1852(g)(4) (42 U.S.C. 1395w–22(g)(4)) is amended by adding at
the end the following: ‘‘The provisions of section 1869(c)(5) shall
apply to independent outside entities under contract with the Secretary under this paragraph.’’.
(c) CONFORMING AMENDMENT.—Section 1154(e) (42 U.S.C.
1320c–3(e)) is amended by striking paragraphs (2), (3), and (4).
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply with respect to initial determinations made on or after
October 1, 2002.
SEC. 522. REVISIONS TO MEDICARE COVERAGE PROCESS.
(a) REVIEW OF DETERMINATIONS.—Section 1869 (42 U.S.C.
1395ff ), as amended by section 521, is further amended by adding
at the end the following new subsection:
‘‘(f ) REVIEW OF COVERAGE DETERMINATIONS.—
‘‘(1) NATIONAL COVERAGE DETERMINATIONS.—
‘‘(A) IN GENERAL.—Review of any national coverage
determination shall be subject to the following limitations:
‘‘(i) Such a determination shall not be reviewed
by any administrative law judge.
‘‘(ii) Such a determination shall not be held unlawful or set aside on the ground that a requirement
of section 553 of title 5, United States Code, or section
1871(b) of this title, relating to publication in the Federal Register or opportunity for public comment, was
not satisfied.
‘‘(iii) Upon the filing of a complaint by an aggrieved
party, such a determination shall be reviewed by the
Departmental Appeals Board of the Department of
Health and Human Services. In conducting such a
review, the Departmental Appeals Board—
‘‘(I) shall review the record and shall permit
discovery and the taking of evidence to evaluate
the reasonableness of the determination, if the
Board determines that the record is incomplete
or lacks adequate information to support the validity of the determination;
‘‘(II) may, as appropriate, consult with appropriate scientific and clinical experts; and
‘‘(III) shall defer only to the reasonable findings of fact, reasonable interpretations of law, and
reasonable applications of fact to law by the Secretary.
‘‘(iv) The Secretary shall implement a decision of
the Departmental Appeals Board within 30 days of
receipt of such decision.
‘‘(v) A decision of the Departmental Appeals Board
constitutes a final agency action and is subject to
judicial review.
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114 STAT. 2763A–544
PUBLIC LAW 106–554—APPENDIX F
‘‘(B) DEFINITION OF NATIONAL COVERAGE DETERMINApurposes of this section, the term ‘national coverage determination’ means a determination by the Secretary with respect to whether or not a particular item
or service is covered nationally under this title, but does
not include a determination of what code, if any, is assigned
to a particular item or service covered under this title
or a determination with respect to the amount of payment
made for a particular item or service so covered.
‘‘(2) LOCAL COVERAGE DETERMINATION.—
‘‘(A) IN GENERAL.—Review of any local coverage determination shall be subject to the following limitations:
‘‘(i) Upon the filing of a complaint by an aggrieved
party, such a determination shall be reviewed by an
administrative law judge of the Social Security
Administration. The administrative law judge—
‘‘(I) shall review the record and shall permit
discovery and the taking of evidence to evaluate
the reasonableness of the determination, if the
administrative law judge determines that the
record is incomplete or lacks adequate information
to support the validity of the determination;
‘‘(II) may, as appropriate, consult with appropriate scientific and clinical experts; and
‘‘(III) shall defer only to the reasonable findings of fact, reasonable interpretations of law, and
reasonable applications of fact to law by the Secretary.
‘‘(ii) Upon the filing of a complaint by an aggrieved
party, a decision of an administrative law judge under
clause (i) shall be reviewed by the Departmental
Appeals Board of the Department of Health and
Human Services.
‘‘(iii) The Secretary shall implement a decision of
the administrative law judge or the Departmental
Appeals Board within 30 days of receipt of such decision.
‘‘(iv) A decision of the Departmental Appeals Board
constitutes a final agency action and is subject to
judicial review.
‘‘(B) DEFINITION OF LOCAL COVERAGE DETERMINATION.—For purposes of this section, the term ‘local coverage
determination’ means a determination by a fiscal intermediary or a carrier under part A or part B, as applicable,
respecting whether or not a particular item or service is
covered on an intermediary- or carrier-wide basis under
such parts, in accordance with section 1862(a)(1)(A).
‘‘(3) NO MATERIAL ISSUES OF FACT IN DISPUTE.—In the case
of a determination that may otherwise be subject to review
under paragraph (1)(A)(iii) or paragraph (2)(A)(i), where the
moving party alleges that—
‘‘(A) there are no material issues of fact in dispute,
and
‘‘(B) the only issue of law is the constitutionality of
a provision of this title, or that a regulation, determination,
or ruling by the Secretary is invalid,
TION.—For
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–545
the moving party may seek review by a court of competent
jurisdiction without filing a complaint under such paragraph
and without otherwise exhausting other administrative remedies.
‘‘(4) PENDING NATIONAL COVERAGE DETERMINATIONS.—
‘‘(A) IN GENERAL.—In the event the Secretary has not
issued a national coverage or noncoverage determination
with respect to a particular type or class of items or services, an aggrieved person (as described in paragraph (5))
may submit to the Secretary a request to make such a
determination with respect to such items or services. By
not later than the end of the 90-day period beginning
on the date the Secretary receives such a request (notwithstanding the receipt by the Secretary of new evidence (if
any) during such 90-day period), the Secretary shall take
one of the following actions:
‘‘(i) Issue a national coverage determination, with
or without limitations.
‘‘(ii) Issue a national noncoverage determination.
‘‘(iii) Issue a determination that no national coverage or noncoverage determination is appropriate as
of the end of such 90-day period with respect to
national coverage of such items or services.
‘‘(iv) Issue a notice that states that the Secretary
has not completed a review of the request for a national
coverage determination and that includes an identification of the remaining steps in the Secretary’s review
process and a deadline by which the Secretary will
complete the review and take an action described in
subclause (I), (II), or (III).
‘‘(B) DEEMED ACTION BY THE SECRETARY.—In the case
of an action described in clause (i)(IV), if the Secretary
fails to take an action referred to in such clause by the
deadline specified by the Secretary under such clause, then
the Secretary is deemed to have taken an action described
in clause (i)(III) as of the deadline.
‘‘(C) EXPLANATION OF DETERMINATION.—When issuing
a determination under clause (i), the Secretary shall include
an explanation of the basis for the determination. An action
taken under clause (i) (other than subclause (IV)) is deemed
to be a national coverage determination for purposes of
review under subparagraph (A).
‘‘(5) STANDING.—An action under this subsection seeking
review of a national coverage determination or local coverage
determination may be initiated only by individuals entitled
to benefits under part A, or enrolled under part B, or both,
who are in need of the items or services that are the subject
of the coverage determination.
‘‘(6) PUBLICATION ON THE INTERNET OF DECISIONS OF HEARINGS OF THE SECRETARY.—Each decision of a hearing by the
Secretary with respect to a national coverage determination
shall be made public, and the Secretary shall publish each
decision on the Medicare Internet site of the Department of
Health and Human Services. The Secretary shall remove from
such decision any information that would identify any individual, provider of services, or supplier.
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114 STAT. 2763A–546
PUBLIC LAW 106–554—APPENDIX F
‘‘(7) ANNUAL
REPORT ON NATIONAL COVERAGE DETERMINA-
TIONS.—
‘‘(A) IN GENERAL.—Not later than December 1 of each
year, beginning in 2001, the Secretary shall submit to
Congress a report that sets forth a detailed compilation
of the actual time periods that were necessary to complete
and fully implement national coverage determinations that
were made in the previous fiscal year for items, services,
or medical devices not previously covered as a benefit under
this title, including, with respect to each new item, service,
or medical device, a statement of the time taken by the
Secretary to make and implement the necessary coverage,
coding, and payment determinations, including the time
taken to complete each significant step in the process of
making and implementing such determinations.
‘‘(B) PUBLICATION OF REPORTS ON THE INTERNET.—The
Secretary shall publish each report submitted under clause
(i) on the medicare Internet site of the Department of
Health and Human Services.
‘‘(8) CONSTRUCTION.—Nothing in this subsection shall be
construed as permitting administrative or judicial review pursuant to this section insofar as such review is explicitly prohibited
or restricted under another provision of law.’’.
(b) ESTABLISHMENT OF A PROCESS FOR COVERAGE DETERMINATIONS.—Section 1862(a) (42 U.S.C. 1395y(a)) is amended by adding
at the end the following new sentence: ‘‘In making a national
coverage determination (as defined in paragraph (1)(B) of section
1869(f )) the Secretary shall ensure that the public is afforded
notice and opportunity to comment prior to implementation by
the Secretary of the determination; meetings of advisory committees
established under section 1114(f ) with respect to the determination
are made on the record; in making the determination, the Secretary
has considered applicable information (including clinical experience
and medical, technical, and scientific evidence) with respect to
the subject matter of the determination; and in the determination,
provide a clear statement of the basis for the determination (including responses to comments received from the public), the assumptions underlying that basis, and make available to the public the
data (other than proprietary data) considered in making the determination.’’.
(c) IMPROVEMENTS TO THE MEDICARE ADVISORY COMMITTEE
PROCESS.—Section 1114 (42 U.S.C. 1314) is amended by adding
at the end the following new subsection:
‘‘(i)(1) Any advisory committee appointed under subsection (f )
to advise the Secretary on matters relating to the interpretation,
application, or implementation of section 1862(a)(1) shall assure
the full participation of a nonvoting member in the deliberations
of the advisory committee, and shall provide such nonvoting member
access to all information and data made available to voting members
of the advisory committee, other than information that—
‘‘(A) is exempt from disclosure pursuant to subsection (a)
of section 552 of title 5, United States Code, by reason of
subsection (b)(4) of such section (relating to trade secrets);
or
‘‘(B) the Secretary determines would present a conflict of
interest relating to such nonvoting member.
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–547
‘‘(2) If an advisory committee described in paragraph (1)
organizes into panels of experts according to types of items or
services considered by the advisory committee, any such panel
of experts may report any recommendation with respect to such
items or services directly to the Secretary without the prior approval
of the advisory committee or an executive committee thereof.’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply with respect to—
(1) a review of any national or local coverage determination
filed,
(2) a request to make such a determination made, and
(3) a national coverage determination made,
on or after October 1, 2001.
Subtitle D—Improving Access to New
Technologies
SEC. 531. REIMBURSEMENT IMPROVEMENTS FOR NEW CLINICAL LABORATORY TESTS AND DURABLE MEDICAL EQUIPMENT.
(a) PAYMENT RULE FOR NEW LABORATORY TESTS.—Section
1833(h)(4)(B)(viii) (42 U.S.C. 1395l(h)(4)(B)(viii)) is amended by
inserting before the period at the end the following: ‘‘(or 100 percent
of such median in the case of a clinical diagnostic laboratory test
performed on or after January 1, 2001, that the Secretary determines is a new test for which no limitation amount has previously
been established under this subparagraph)’’.
(b) ESTABLISHMENT OF CODING AND PAYMENT PROCEDURES FOR
NEW CLINICAL DIAGNOSTIC LABORATORY TESTS AND OTHER ITEMS
ON A FEE SCHEDULE.—Not later than 1 year after the date of
the enactment of this Act, the Secretary of Health and Human
Services shall establish procedures for coding and payment determinations for the categories of new clinical diagnostic laboratory
tests and new durable medical equipment under part B of title
XVIII of the Social Security Act that permit public consultation
in a manner consistent with the procedures established for
implementing coding modifications for ICD–9–CM.
(c) REPORT ON PROCEDURES USED FOR ADVANCED, IMPROVED
TECHNOLOGIES.—Not later than 1 year after the date of the enactment of this Act, the Secretary of Health and Human Services
shall submit to Congress a report that identifies the specific procedures used by the Secretary under part B of title XVIII of the
Social Security Act to adjust payments for clinical diagnostic laboratory tests and durable medical equipment which are classified to
existing codes where, because of an advance in technology with
respect to the test or equipment, there has been a significant
increase or decrease in the resources used in the test or in the
manufacture of the equipment, and there has been a significant
improvement in the performance of the test or equipment. The
report shall include such recommendations for changes in law as
may be necessary to assure fair and appropriate payment levels
under such part for such improved tests and equipment as reflects
increased costs necessary to produce improved results.
SEC. 532. RETENTION OF HCPCS LEVEL III CODES.
(a) IN GENERAL.—The Secretary of Health and Human Services
shall maintain and continue the use of level III codes of the HCPCS
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114 STAT. 2763A–548
PUBLIC LAW 106–554—APPENDIX F
coding system (as such system was in effect on August 16, 2000)
through December 31, 2003, and shall make such codes available
to the public.
(b) DEFINITION.—For purposes of this section, the term ‘‘HCPCS
Level III codes’’ means the alphanumeric codes for local use under
the Health Care Financing Administration Common Procedure Coding System (HCPCS).
SEC. 533. RECOGNITION OF NEW MEDICAL TECHNOLOGIES UNDER
INPATIENT HOSPITAL PPS.
(a) EXPEDITING RECOGNITION OF NEW TECHNOLOGIES INTO
INPATIENT PPS CODING SYSTEM.—
(1) REPORT.—Not later than April 1, 2001, the Secretary
of Health and Human Services shall submit to Congress a
report on methods of expeditiously incorporating new medical
services and technologies into the clinical coding system used
with respect to payment for inpatient hospital services furnished under the medicare program under title XVIII of the
Social Security Act, together with a detailed description of
the Secretary’s preferred methods to achieve this purpose.
(2) IMPLEMENTATION.—Not later than October 1, 2001, the
Secretary shall implement the preferred methods described in
the report transmitted pursuant to paragraph (1).
(b) ENSURING APPROPRIATE PAYMENTS FOR HOSPITALS INCORPORATING NEW MEDICAL SERVICES AND TECHNOLOGIES.—
(1) ESTABLISHMENT OF MECHANISM.—Section 1886(d)(5) (42
U.S.C. 1395ww(d)(5)) is amended by adding at the end the
following new subparagraphs:
‘‘(K)(i) Effective for discharges beginning on or after October
1, 2001, the Secretary shall establish a mechanism to recognize
the costs of new medical services and technologies under the payment system established under this subsection. Such mechanism
shall be established after notice and opportunity for public comment
(in the publications required by subsection (e)(5) for a fiscal year
or otherwise).
‘‘(ii) The mechanism established pursuant to clause (i) shall—
‘‘(I) apply to a new medical service or technology if, based
on the estimated costs incurred with respect to discharges
involving such service or technology, the DRG prospective payment rate otherwise applicable to such discharges under this
subsection is inadequate;
‘‘(II) provide for the collection of data with respect to the
costs of a new medical service or technology described in subclause (I) for a period of not less than two years and not
more than three years beginning on the date on which an
inpatient hospital code is issued with respect to the service
or technology;
‘‘(III) subject to paragraph (4)(C)(iii), provide for additional
payment to be made under this subsection with respect to
discharges involving a new medical service or technology
described in subclause (I) that occur during the period described
in subclause (II) in an amount that adequately reflects the
estimated average cost of such service or technology; and
‘‘(IV) provide that discharges involving such a service or
technology that occur after the close of the period described
in subclause (II) will be classified within a new or existing
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–549
diagnosis-related group with a weighting factor under paragraph (4)(B) that is derived from cost data collected with respect
to discharges occurring during such period.
‘‘(iii) For purposes of clause (ii)(II), the term ‘inpatient hospital
code’ means any code that is used with respect to inpatient hospital
services for which payment may be made under this subsection
and includes an alphanumeric code issued under the International
Classification of Diseases, 9th Revision, Clinical Modification (‘ICD–
9–CM’) and its subsequent revisions.
‘‘(iv) For purposes of clause (ii)(III), the term ‘additional payment’ means, with respect to a discharge for a new medical service
or technology described in clause (ii)(I), an amount that exceeds
the prospective payment rate otherwise applicable under this subsection to discharges involving such service or technology that would
be made but for this subparagraph.
‘‘(v) The requirement under clause (ii)(III) for an additional
payment may be satisfied by means of a new-technology group
(described in subparagraph (L)), an add-on payment, a payment
adjustment, or any other similar mechanism for increasing the
amount otherwise payable with respect to a discharge under this
subsection. The Secretary may not establish a separate fee schedule
for such additional payment for such services and technologies,
by utilizing a methodology established under subsection (a) or (h)
of section 1834 to determine the amount of such additional payment,
or by other similar mechanisms or methodologies.
‘‘(vi) For purposes of this subparagraph and subparagraph (L),
a medical service or technology will be considered a ‘new medical
service or technology’ if the service or technology meets criteria
established by the Secretary after notice and an opportunity for
public comment.
‘‘(L)(i) In establishing the mechanism under subparagraph (K),
the Secretary may establish new-technology groups into which a
new medical service or technology will be classified if, based on
the estimated average costs incurred with respect to discharges
involving such service or technology, the DRG prospective payment
rate otherwise applicable to such discharges under this subsection
is inadequate.
‘‘(ii) Such groups—
‘‘(I) shall not be based on the costs associated with a
specific new medical service or technology; but
‘‘(II) shall, in combination with the applicable standardized
amounts and the weighting factors assigned to such groups
under paragraph (4)(B), reflect such cost cohorts as the Secretary determines are appropriate for all new medical services
and technologies that are likely to be provided as inpatient
hospital services in a fiscal year.
‘‘(iii) The methodology for classifying specific hospital discharges
within a diagnosis-related group under paragraph (4)(A) or a newtechnology group shall provide that a specific hospital discharge
may not be classified within both a diagnosis-related group and
a new-technology group.’’.
(2) PRIOR CONSULTATION.—The Secretary of Health and
Human Services shall consult with groups representing hospitals, physicians, and manufacturers of new medical technologies before publishing the notice of proposed rulemaking
required by section 1886(d)(5)(K)(i) of the Social Security Act
(as added by paragraph (1)).
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114 STAT. 2763A–550
PUBLIC LAW 106–554—APPENDIX F
(3) CONFORMING AMENDMENT.—Section 1886(d)(4)(C)(i) (42
U.S.C. 1395ww(d)(4)(C)(i)) is amended by striking ‘‘technology,’’
and inserting ‘‘technology (including a new medical service
or technology under paragraph (5)(K)),’’.
Subtitle E—Other Provisions
SEC. 541. INCREASE IN REIMBURSEMENT FOR BAD DEBT.
Section 1861(v)(1)(T) (42 U.S.C. 1395x(v)(1)(T)) is amended—
(1) in clause (ii), by striking ‘‘and’’ at the end;
(2) in clause (iii)—
(A) by striking ‘‘during a subsequent fiscal year’’ and
inserting ‘‘during fiscal year 2000’’; and
(B) by striking the period at the end and inserting
‘‘, and’’; and
(3) by adding at the end the following new clause:
‘‘(iv) for cost reporting periods beginning during a subsequent fiscal year, by 30 percent of such amount otherwise
allowable.’’.
SEC. 542. TREATMENT OF CERTAIN PHYSICIAN PATHOLOGY SERVICES
UNDER MEDICARE.
(a) IN GENERAL.—When an independent laboratory furnishes
the technical component of a physician pathology service to a feefor-service medicare beneficiary who is an inpatient or outpatient
of a covered hospital, the Secretary of Health and Human Services
shall treat such component as a service for which payment shall
be made to the laboratory under section 1848 of the Social Security
Act (42 U.S.C. 1395w–4) and not as an inpatient hospital service
for which payment is made to the hospital under section 1886(d)
of such Act (42 U.S.C. 1395ww(d)) or as an outpatient hospital
service for which payment is made to the hospital under section
1833(t) of such Act (42 U.S.C. 1395l(t)).
(b) DEFINITIONS.—For purposes of this section:
(1) COVERED HOSPITAL.—The term ‘‘covered hospital’’
means, with respect to an inpatient or an outpatient, a hospital
that had an arrangement with an independent laboratory that
was in effect as of July 22, 1999, under which a laboratory
furnished the technical component of physician pathology services to fee-for-service medicare beneficiaries who were hospital
inpatients or outpatients, respectively, and submitted claims
for payment for such component to a medicare carrier (that
has a contract with the Secretary under section 1842 of the
Social Security Act, 42 U.S.C. 1395u) and not to such hospital.
(2) FEE-FOR-SERVICE MEDICARE BENEFICIARY.—The term
‘‘fee-for-service medicare beneficiary’’ means an individual
who—
(A) is entitled to benefits under part A, or enrolled
under part B, or both, of such title; and
(B) is not enrolled in any of the following:
(i) A Medicare+Choice plan under part C of such
title.
(ii) A plan offered by an eligible organization under
section 1876 of such Act (42 U.S.C. 1395mm).
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–551
(iii) A program of all-inclusive care for the elderly
(PACE) under section 1894 of such Act (42 U.S.C.
1395eee).
(iv) A social health maintenance organization
(SHMO) demonstration project established under section 4018(b) of the Omnibus Budget Reconciliation Act
of 1987 (Public Law 100–203).
(c) EFFECTIVE DATE.—This section shall apply to services furnished during the 2-year period beginning on January 1, 2001.
(d) GAO REPORT.—
(1) STUDY.—The Comptroller General of the United States
shall conduct a study of the effects of the previous provisions
of this section on hospitals and laboratories and access of feefor-service medicare beneficiaries to the technical component
of physician pathology services.
(2) REPORT.—Not later than April 1, 2002, the Comptroller
General shall submit to Congress a report on such study. The
report shall include recommendations about whether such
provisions should be extended after the end of the period specified in subsection (c) for either or both inpatient and outpatient
hospital services, and whether the provisions should be
extended to other hospitals.
SEC. 543. EXTENSION OF ADVISORY OPINION AUTHORITY.
Section 1128D(b)(6) (42 U.S.C. 1320a–7d(b)(6)) is amended by
striking ‘‘and before the date which is 4 years after such date
of enactment’’.
SEC. 544. CHANGE IN ANNUAL MEDPAC REPORTING.
(a) REVISION OF DEADLINES FOR SUBMISSION OF REPORTS.—
(1) IN GENERAL.—Section 1805(b)(1)(D) (42 U.S.C. 1395b–
6(b)(1)(D)) is amended by striking ‘‘June 1 of each year (beginning with 1998),’’ and inserting ‘‘June 15 of each year,’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall apply beginning with 2001.
(b) REQUIREMENT FOR ON THE RECORD VOTES ON RECOMMENDATIONS.—Section 1805(b) (42 U.S.C. 1395b–6(b)) is amended by adding at the end the following new paragraph:
‘‘(7) VOTING AND REPORTING REQUIREMENTS.—With respect
to each recommendation contained in a report submitted under
paragraph (1), each member of the Commission shall vote on
the recommendation, and the Commission shall include, by
member, the results of that vote in the report containing the
recommendation.’’.
SEC. 545. DEVELOPMENT OF PATIENT ASSESSMENT INSTRUMENTS.
(a) DEVELOPMENT.—
(1) IN GENERAL.—Not later than January 1, 2005, the Secretary of Health and Human Services shall submit to the
Committee on Ways and Means and the Committee on Commerce of the House of Representatives and the Committee
on Finance of the Senate a report on the development of standard instruments for the assessment of the health and functional
status of patients, for whom items and services described in
subsection (b) are furnished, and include in the report a recommendation on the use of such standard instruments for
payment purposes.
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114 STAT. 2763A–552
PUBLIC LAW 106–554—APPENDIX F
(2) DESIGN FOR COMPARISON OF COMMON ELEMENTS.—The
Secretary shall design such standard instruments in a manner
such that—
(A) elements that are common to the items and services
described in subsection (b) may be readily comparable and
are statistically compatible;
(B) only elements necessary to meet program objectives
are collected; and
(C) the standard instruments supersede any other
assessment instrument used before that date.
(3) CONSULTATION.—In developing an assessment
instrument under paragraph (1), the Secretary shall consult
with the Medicare Payment Advisory Commission, the Agency
for Healthcare Research and Quality, and qualified organizations representing providers of services and suppliers under
title XVIII.
(b) DESCRIPTION OF SERVICES.—For purposes of subsection (a),
items and services described in this subsection are those items
and services furnished to individuals entitled to benefits under
part A, or enrolled under part B, or both of title XVIII of the
Social Security Act for which payment is made under such title,
and include the following:
(1) Inpatient and outpatient hospital services.
(2) Inpatient and outpatient rehabilitation services.
(3) Covered skilled nursing facility services.
(4) Home health services.
(5) Physical or occupational therapy or speech-language
pathology services.
(6) Items and services furnished to such individuals determined to have end stage renal disease.
(7) Partial hospitalization services and other mental health
services.
(8) Any other service for which payment is made under
such title as the Secretary determines to be appropriate.
SEC. 546. GAO REPORT ON IMPACT OF THE EMERGENCY MEDICAL
TREATMENT AND ACTIVE LABOR ACT (EMTALA) ON HOSPITAL EMERGENCY DEPARTMENTS.
(a) REPORT.—The Comptroller General of the United States
shall submit a report to the Committee on Commerce and the
Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate by May 1, 2001,
on the effect of the Emergency Medical Treatment and Active
Labor Act on hospitals, emergency physicians, and physicians covering emergency department call throughout the United States.
(b) REPORT REQUIREMENTS.—The report should evaluate—
(1) the extent to which hospitals, emergency physicians,
and physicians covering emergency department call provide
uncompensated services in relation to the requirements of
EMTALA;
(2) the extent to which the regulatory requirements and
enforcement of EMTALA have expanded beyond the legislation’s original intent;
(3) estimates for the total dollar amount of EMTALArelated care uncompensated costs to emergency physicians,
physicians covering emergency department call, hospital emergency departments, and other hospital services;
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–553
(4) the extent to which different portions of the United
States may be experiencing different levels of uncompensated
EMTALA-related care;
(5) the extent to which EMTALA would be classified as
an unfunded mandate if it were enacted today;
(6) the extent to which States have programs to provide
financial support for such uncompensated care;
(7) possible sources of funds, including medicare hospital
bad debt accounts, that are available to hospitals to assist
with the cost of such uncompensated care; and
(8) the financial strain that illegal immigration populations,
the uninsured, and the underinsured place on hospital emergency departments, other hospital services, emergency physicians, and physicians covering emergency department call.
(c) DEFINITION.—In this section, the terms ‘‘Emergency Medical
Treatment and Active Labor Act’’ and ‘‘EMTALA’’ mean section
1867 of the Social Security Act (42 U.S.C. 1395dd).
SEC. 547. CLARIFICATION OF APPLICATION OF TEMPORARY PAYMENT
INCREASES FOR 2001.
(a) INPATIENT HOSPITAL SERVICES.—The payment increase provided under the following sections shall not apply to discharges
occurring after fiscal year 2001 and shall not be taken into account
in calculating the payment amounts applicable for discharges occurring after such fiscal year:
(1) Section 301(b)(2)(A) (relating to acute care hospital payment update).
(2) Section 302(b) (relating to IME percentage adjustment).
(3) Section 303(b)(2) (relating to DSH payments).
(b) SKILLED NURSING FACILITY SERVICES.—The payment
increase provided under section 311(b)(2) (relating to covered skilled
nursing facility services) shall not apply to services furnished after
fiscal year 2001 and shall not be taken into account in calculating
the payment amounts applicable for services furnished after such
fiscal year.
(c) HOME HEALTH SERVICES.—
(1) TRANSITIONAL ALLOWANCE FOR FULL MARKETBASKET
INCREASE.—The payment increase provided under section
502(b)(1)(B) shall not apply to episodes and visits ending after
fiscal year 2001 and shall not be taken into account in calculating the payment amounts applicable for subsequent episodes
and visits.
(2) TEMPORARY INCREASE FOR RURAL HOME HEALTH SERVICES.—The payment increase provided under section 508(a) for
the period beginning on April 1, 2001, and ending on September
30, 2002, shall not apply to episodes and visits ending after
such period, and shall not be taken into account in calculating
the payment amounts applicable for episodes and visits occurring after such period.
(d) CALENDAR YEAR 2001 PROVISIONS.—The payment increase
provided under the following sections shall not apply after calendar
year 2001 and shall not be taken into account in calculating the
payment amounts applicable for items and services furnished after
such year:
(1) Section 401(c)(2) (relating to covered OPD services).
(2) Section 422(e)(2) (relating to renal dialysis services
paid for on a composite rate basis).
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114 STAT. 2763A–554
PUBLIC LAW 106–554—APPENDIX F
(3) Section 423(a)(2)(B) (relating to ambulance services).
(4) Section 425(b)(2) (relating to durable medical equipment).
(5) Section 426(b)(2) (relating to prosthetic devices and
orthotics and prosthetics).
TITLE VI—PROVISIONS RELATING TO
PART C (MEDICARE+CHOICE PROGRAM) AND OTHER MEDICARE MANAGED CARE PROVISIONS
Subtitle A—Medicare+Choice Payment
Reforms
SEC. 601. INCREASE IN MINIMUM PAYMENT AMOUNT.
(a) IN GENERAL.—Section 1853(c)(1)(B) (42 U.S.C. 1395w–
23(c)(1)(B)) is amended—
(1) by redesignating clause (ii) as clause (iv);
(2) by inserting after clause (i) the following new clauses:
‘‘(ii) For 1999 and 2000, the minimum amount
determined under clause (i) or this clause, respectively,
for the preceding year, increased by the national per
capita Medicare+Choice growth percentage described
in paragraph (6)(A) applicable to 1999 or 2000, respectively.
‘‘(iii)(I) Subject to subclause (II), for 2001, for any
area in a Metropolitan Statistical Area with a population of more than 250,000, $525, and for any other
area $475.
‘‘(II) In the case of an area outside the 50 States
and the District of Columbia, the amount specified
in this clause shall not exceed 120 percent of the
amount determined under clause (ii) for such area
for 2000.’’; and
(3) in clause (iv), as so redesignated—
(A) by striking ‘‘a succeeding year’’ and inserting ‘‘2002
and each succeeding year’’; and
(B) by striking ‘‘clause (i)’’ and inserting ‘‘clause (iii)’’.
(b) SPECIAL RULE FOR JANUARY AND FEBRUARY OF 2001.—
(1) IN GENERAL.—Notwithstanding the amendments made
by subsection (a), for purposes of making payments under section 1853 of the Social Security Act (42 U.S.C. 1395w–23)
for January and February 2001, the annual Medicare+Choice
capitation rate for a Medicare+Choice payment area shall be
calculated, and the excess amount under section 1854(f )(1)(B)
of such Act (42 U.S.C. 1395w–24(f )(1)(B)) shall be determined,
as if such amendments had not been enacted.
(2) CONSTRUCTION.—Paragraph (1) shall not be taken into
account in computing such capitation rate for 2002 and subsequent years.
SEC. 602. INCREASE IN MINIMUM PERCENTAGE INCREASE.
(a) IN GENERAL.—Section 1853(c)(1)(C) (42 U.S.C. 1395w–
23(c)(1)(C)) is amended—
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–555
(1) by redesignating clause (ii) as clause (iv);
(2) by inserting after clause (i) the following new clauses:
‘‘(ii) For 1999 and 2000, 102 percent of the annual
Medicare+Choice capitation rate under this paragraph
for the area for the previous year.
‘‘(iii) For 2001, 103 percent of the annual
Medicare+Choice capitation rate under this paragraph
for the area for 2000.’’; and
(3) in clause (iv), as so redesignated, by striking ‘‘a subsequent year’’ and inserting ‘‘2002 and each succeeding year’’.
(b) APPLICATION OF SPECIAL RULE FOR JANUARY AND FEBRUARY
OF 2001.—The provisions of section 601(b) shall apply with respect
to the amendments made by subsection (a) in the same manner
as they apply to the amendments made by section 601(a).
SEC. 603. PHASE-IN OF RISK ADJUSTMENT.
Section 1853(a)(3)(C) (42 U.S.C. 1395w–23(a)(3)(C)) is
amended—
(1) in clause (ii)—
(A) in subclause (I), by striking ‘‘and 2001’’ and inserting ‘‘and each succeeding year through 2003’’ and by striking ‘‘and’’ at the end; and
(B) by striking subclause (II) and inserting the following new subclauses:
‘‘(II) 30 percent of such capitation rate in 2004;
‘‘(III) 50 percent of such capitation rate in
2005;
‘‘(IV) 75 percent of such capitation rate in
2006; and
‘‘(V) 100 percent of such capitation rate in
2007 and succeeding years.’’; and
(2) by adding at the end the following new clause:
‘‘(iii) DATA FOR RISK ADJUSTMENT METHODOLOGY.—
Such risk adjustment methodology for 2004 and each
succeeding year, shall be based on data from inpatient
hospital and ambulatory settings.’’.
SEC. 604. TRANSITION TO REVISED MEDICARE+CHOICE PAYMENT
RATES.
(a) ANNOUNCEMENT OF REVISED MEDICARE+CHOICE PAYMENT
RATES.—Within 2 weeks after the date of the enactment of this
Act, the Secretary of Health and Human Services shall determine,
and shall announce (in a manner intended to provide notice to
interested parties) Medicare+Choice capitation rates under section
1853 of the Social Security Act (42 U.S.C. 1395w–23) for 2001,
revised in accordance with the provisions of this Act.
(b) REENTRY INTO PROGRAM PERMITTED FOR MEDICARE+CHOICE
PROGRAMS.—A Medicare+Choice organization that provided notice
to the Secretary of Health and Human Services before the date
of the enactment of this Act that it was terminating its contract
under part C of title XVIII of the Social Security Act or was
reducing the service area of a Medicare+Choice plan offered under
such part shall be permitted to continue participation under such
part, or to maintain the service area of such plan, for 2001 if
it submits the Secretary with the information described in section
1854(a)(1) of the Social Security Act (42 U.S.C. 1395w–24(a)(1))
within 2 weeks after the date revised rates are announced by
the Secretary under subsection (a).
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114 STAT. 2763A–556
PUBLIC LAW 106–554—APPENDIX F
(c) REVISED SUBMISSION OF PROPOSED PREMIUMS AND RELATED
INFORMATION.—If—
(1) a Medicare+Choice organization provided notice to the
Secretary of Health and Human Services as of July 3, 2000,
that it was renewing its contract under part C of title XVIII
of the Social Security Act for all or part of the service area
or areas served under its current contract, and
(2) any part of the service area or areas addressed in
such notice includes a payment area for which the
Medicare+Choice capitation rate under section 1853(c) of such
Act (42 U.S.C. 1395w–23(c)) for 2001, as determined under
subsection (a), is higher than the rate previously determined
for such year,
such organization shall revise its submission of the information
described in section 1854(a)(1) of the Social Security Act (42 U.S.C.
1395w–24(a)(1)), and shall submit such revised information to the
Secretary, within 2 weeks after the date revised rates are
announced by the Secretary under subsection (a). In making such
submission, the organization may only reduce beneficiary premiums,
reduce beneficiary cost-sharing, enhance benefits, utilize the stabilization fund described in section 1854(f )(2) of such Act (42 U.S.C.
1395w–24(f )(2)), or stabilize or enhance beneficiary access to providers (so long as such stabilization or enhancement does not result
in increased beneficiary premiums, increased beneficiary cost-sharing, or reduced benefits).
(d) WAIVER OF LIMITS ON STABILIZATION FUND.—Any regulatory
provision that limits the proportion of the excess amount that
can be withheld in such stabilization fund for a contract period
shall not apply with respect to submissions described in subsections
(b) and (c).
(e) DISREGARD OF NEW RATE ANNOUNCEMENT IN APPLYING
PASS-THROUGH FOR NEW NATIONAL COVERAGE DETERMINATIONS.—
For purposes of applying section 1852(a)(5) of the Social Security
Act (42 U.S.C. 1395w–22(a)(5)), the announcement of revised rates
under subsection (a) shall not be treated as an announcement
under section 1853(b) of such Act (42 U.S.C. 1395w–23(b)).
SEC. 605. REVISION OF PAYMENT RATES FOR ESRD PATIENTS
ENROLLED IN MEDICARE+CHOICE PLANS.
(a) IN GENERAL.—Section 1853(a)(1)(B) (42 U.S.C. 1395w–
23(a)(1)(B)) is amended by adding at the end the following: ‘‘In
establishing such rates, the Secretary shall provide for appropriate
adjustments to increase each rate to reflect the demonstration rate
(including the risk adjustment methodology associated with such
rate) of the social health maintenance organization end-stage renal
disease capitation demonstrations (established by section 2355 of
the Deficit Reduction Act of 1984, as amended by section 13567(b)
of the Omnibus Budget Reconciliation Act of 1993), and shall compute such rates by taking into account such factors as renal treatment modality, age, and the underlying cause of the end-stage
renal disease.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to payments for months beginning with January 2002.
(c) PUBLICATION.—Not later than 6 months after the date of
the enactment of this Act, the Secretary of Health and Human
Services shall publish for public comment a description of the
appropriate adjustments described in the last sentence of section
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–557
1853(a)(1)(B) of the Social Security Act (42 U.S.C. 1395w–
23(a)(1)(B)), as added by subsection (a). The Secretary shall publish
such adjustments in final form by not later than July 1, 2001,
so that the amendment made by subsection (a) is implemented
on a timely basis consistent with subsection (b).
SEC. 606. PERMITTING PREMIUM REDUCTIONS AS ADDITIONAL BENEFITS UNDER MEDICARE+CHOICE PLANS.
(a) IN GENERAL.—
(1) AUTHORIZATION OF PART B PREMIUM REDUCTIONS.—Section 1854(f )(1) (42 U.S.C. 1395w–24(f )(1)) is amended—
(A) by redesignating subparagraph (E) as subparagraph (F); and
(B) by inserting after subparagraph (D) the following
new subparagraph:
‘‘(E) PREMIUM REDUCTIONS.—
‘‘(i) IN GENERAL.—Subject to clause (ii), as part
of providing any additional benefits required under
subparagraph (A), a Medicare+Choice organization
may elect a reduction in its payments under section
1853(a)(1)(A) with respect to a Medicare+Choice plan
and the Secretary shall apply such reduction to reduce
the premium under section 1839 of each enrollee in
such plan as provided in section 1840(i).
‘‘(ii) AMOUNT OF REDUCTION.—The amount of the
reduction under clause (i) with respect to any enrollee
in a Medicare+Choice plan—
‘‘(I) may not exceed 125 percent of the premium described under section 1839(a)(3); and
‘‘(II) shall apply uniformly to each enrollee
of the Medicare+Choice plan to which such reduction applies.’’.
(2) CONFORMING AMENDMENTS.—
(A) ADJUSTMENT OF PAYMENTS TO MEDICARE+CHOICE
ORGANIZATIONS.—Section 1853(a)(1)(A) (42 U.S.C. 1395w–
23(a)(1)(A)) is amended by inserting ‘‘reduced by the
amount of any reduction elected under section 1854(f )(1)(E)
and’’ after ‘‘for that area,’’.
(B) ADJUSTMENT AND PAYMENT OF PART B PREMIUMS.—
(i) ADJUSTMENT OF PREMIUMS.—Section 1839(a)(2)
(42 U.S.C. 1395r(a)(2)) is amended by striking ‘‘shall’’
and all that follows and inserting the following: ‘‘shall
be the amount determined under paragraph (3),
adjusted as required in accordance with subsections
(b), (c), and (f ), and to reflect 80 percent of any reduction elected under section 1854(f )(1)(E).’’.
(ii) PAYMENT OF PREMIUMS.—Section 1840 (42
U.S.C. 1395s) is amended by adding at the end the
following new subsection:
‘‘(i) In the case of an individual enrolled in a Medicare+Choice
plan, the Secretary shall provide for necessary adjustments of the
monthly beneficiary premium to reflect 80 percent of any reduction
elected under section 1854(f )(1)(E). To the extent to which the
Secretary determines that such an adjustment is appropriate, with
the concurrence of any agency responsible for the administration
of such benefits, such premium adjustment may be provided
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114 STAT. 2763A–558
PUBLIC LAW 106–554—APPENDIX F
directly, as an adjustment to any social security, railroad retirement, or civil service retirement benefits, or, in the case of an
individual who receives medical assistance under title XIX for medicare costs described in section 1905(p)(3)(A)(ii), as an adjustment
to the amount otherwise owed by the State for such medical assistance.’’.
(C) INFORMATION COMPARING PLAN PREMIUMS UNDER
PART
C.—Section
1851(d)(4)(B) (42 U.S.C. 1395w–
21(d)(4)(B)) is amended—
(i) by striking ‘‘PREMIUMS.—The’’ and inserting
‘‘PREMIUMS.—
‘‘(i) IN GENERAL.—The’’; and
(ii) by adding at the end the following new clause:
‘‘(ii) REDUCTIONS.—The reduction in part B premiums, if any.’’.
(D) TREATMENT OF REDUCTION FOR PURPOSES OF DETERMINING GOVERNMENT CONTRIBUTION UNDER PART B.—Section 1844 (42 U.S.C. 1395w) is amended by adding at
the end the following new subsection:
‘‘(c) The Secretary shall determine the Government contribution
under subparagraphs (A) and (B) of subsection (a)(1) without regard
to any premium reduction resulting from an election under section
1854(f )(1)(E).’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply to years beginning with 2003.
SEC. 607. FULL IMPLEMENTATION OF RISK ADJUSTMENT FOR CONGESTIVE HEART FAILURE ENROLLEES FOR 2001.
(a) IN GENERAL.—Section 1853(a)(3)(C) (42 U.S.C. 1395w–
23(a)(3)(C)) is amended—
(1) in clause (ii), by striking ‘‘Such risk adjustment’’ and
inserting ‘‘Except as provided in clause (iii), such risk adjustment’’; and
(2) by adding at the end the following new clause:
‘‘(iii) FULL IMPLEMENTATION OF RISK ADJUSTMENT
FOR CONGESTIVE HEART FAILURE ENROLLEES FOR 2001.—
‘‘(I) EXEMPTION FROM PHASE-IN.—Subject to
subclause (II), the Secretary shall fully implement
the risk adjustment methodology described in
clause (i) with respect to each individual who has
had a qualifying congestive heart failure inpatient
diagnosis (as determined by the Secretary under
such risk adjustment methodology) during the
period beginning on July 1, 1999, and ending on
June 30, 2000, and who is enrolled in a coordinated
care plan that is the only coordinated care plan
offered on January 1, 2001, in the service area
of the individual.
‘‘(II) PERIOD OF APPLICATION.—Subclause (I)
shall only apply during the 1-year period beginning
on January 1, 2001.’’.
(b) EXCLUSION FROM DETERMINATION OF THE BUDGET NEUTRALITY FACTOR.—Section 1853(c)(5) (42 U.S.C. 1395w–23(c)(5)) is
amended by striking ‘‘subsection (i)’’ and inserting ‘‘subsections
(a)(3)(C)(iii) and (i)’’.
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–559
SEC. 608. EXPANSION OF APPLICATION OF MEDICARE+CHOICE NEW
ENTRY BONUS.
(a) IN GENERAL.—Section 1853(i)(1) (42 U.S.C. 1395w–23(i)(1))
is amended in the matter preceding subparagraph (A) by inserting
‘‘, or filed notice with the Secretary as of October 3, 2000, that
they will not be offering such a plan as of January 1, 2001’’ after
‘‘January 1, 2000’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply as if included in the enactment of BBRA.
SEC. 609. REPORT ON INCLUSION OF CERTAIN COSTS OF THE DEPARTMENT OF VETERANS AFFAIRS AND MILITARY FACILITY
SERVICES IN CALCULATING MEDICARE+CHOICE PAYMENT RATES.
The Secretary of Health and Human Services shall report to
Congress by not later than January 1, 2003, on a method to phasein the costs of military facility services furnished by the Department
of Veterans Affairs, and the costs of military facility services furnished by the Department of Defense, to medicare-eligible beneficiaries in the calculation of an area’s Medicare+Choice capitation
payment. Such report shall include on a county-by-county basis—
(1) the actual or estimated cost of such services to medicareeligible beneficiaries;
(2) the change in Medicare+Choice capitation payment
rates if such costs are included in the calculation of payment
rates;
(3) one or more proposals for the implementation of payment adjustments to Medicare+Choice plans in counties where
the payment rate has been affected due to the failure to calculate the cost of such services to medicare-eligible beneficiaries; and
(4) a system to ensure that when a Medicare+Choice
enrollee receives covered services through a facility of the
Department of Veterans Affairs or the Department of Defense
there is an appropriate payment recovery to the medicare program under title XVIII of the Social Security Act.
Subtitle B—Other Medicare+Choice
Reforms
SEC. 611. PAYMENT OF ADDITIONAL AMOUNTS FOR NEW BENEFITS
COVERED DURING A CONTRACT TERM.
(a) IN GENERAL.—Section 1853(c)(7) (42 U.S.C. 1395w–23(c)(7))
is amended to read as follows:
‘‘(7) ADJUSTMENT FOR NATIONAL COVERAGE DETERMINATIONS
AND LEGISLATIVE CHANGES IN BENEFITS.—If the Secretary
makes a determination with respect to coverage under this
title or there is a change in benefits required to be provided
under this part that the Secretary projects will result in a
significant increase in the costs to Medicare+Choice of providing
benefits under contracts under this part (for periods after any
period described in section 1852(a)(5)), the Secretary shall
adjust appropriately the payments to such organizations under
this part. Such projection and adjustment shall be based on
an analysis by the Chief Actuary of the Health Care Financing
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114 STAT. 2763A–560
PUBLIC LAW 106–554—APPENDIX F
Administration of the actuarial costs associated with the new
benefits.’’.
(b) CONFORMING AMENDMENT.—Section 1852(a)(5) (42 U.S.C.
1395w–22(a)(5)) is amended—
(1) in the heading, by inserting ‘‘AND LEGISLATIVE CHANGES
IN BENEFITS’’ after ‘‘NATIONAL COVERAGE DETERMINATIONS’’;
(2) by inserting ‘‘or legislative change in benefits required
to be provided under this part’’ after ‘‘national coverage determination’’;
(3) in subparagraph (A), by inserting ‘‘or legislative change
in benefits’’ after ‘‘such determination’’;
(4) in subparagraph (B), by inserting ‘‘or legislative change’’
after ‘‘if such coverage determination’’; and
(5) by adding at the end the following:
‘‘The projection under the previous sentence shall be based
on an analysis by the Chief Actuary of the Health Care Financing Administration of the actuarial costs associated with the
coverage determination or legislative change in benefits.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
are effective on the date of the enactment of this Act and shall
apply to national coverage determinations and legislative changes
in benefits occurring on or after such date.
SEC. 612. RESTRICTION ON IMPLEMENTATION OF SIGNIFICANT NEW
REGULATORY REQUIREMENTS MIDYEAR.
(a) IN GENERAL.—Section 1856(b) (42 U.S.C. 1395w–26(b)) is
amended by adding at the end the following new paragraph:
‘‘(4) PROHIBITION OF MIDYEAR IMPLEMENTATION OF SIGNIFICANT NEW REGULATORY REQUIREMENTS.—The Secretary may
not implement, other than at the beginning of a calendar year,
regulations under this section that impose new, significant
regulatory requirements on a Medicare+Choice organization
or plan.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
takes effect on the date of the enactment of this Act.
SEC. 613. TIMELY APPROVAL OF MARKETING MATERIAL THAT FOLLOWS MODEL MARKETING LANGUAGE.
(a) IN GENERAL.—Section 1851(h) (42 U.S.C. 1395w–21(h)) is
amended—
(1) in paragraph (1)(A), by inserting ‘‘(or 10 days in the
case described in paragraph (5))’’ after ‘‘45 days’’; and
(2) by adding at the end the following new paragraph:
‘‘(5) SPECIAL TREATMENT OF MARKETING MATERIAL FOLLOWING MODEL MARKETING LANGUAGE.—In the case of marketing
material of an organization that uses, without modification,
proposed model language specified by the Secretary, the period
specified in paragraph (1)(A) shall be reduced from 45 days
to 10 days.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply to marketing material submitted on or after January
1, 2001.
SEC. 614. AVOIDING DUPLICATIVE REGULATION.
(a) IN GENERAL.—Section 1856(b)(3)(B) (42 U.S.C. 1395w–
26(b)(3)(B)) is amended—
(1) in clause (i), by inserting ‘‘(including cost-sharing
requirements)’’ after ‘‘Benefit requirements’’; and
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–561
(2) by adding at the end the following new clause:
‘‘(iv) Requirements relating to marketing materials
and summaries and schedules of benefits regarding
a Medicare+Choice plan.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) take effect on the date of the enactment of this Act.
SEC. 615. ELECTION OF UNIFORM LOCAL COVERAGE POLICY FOR
MEDICARE+CHOICE PLAN COVERING MULTIPLE LOCALITIES.
Section 1852(a)(2) (42 U.S.C. 1395w–22(a)(2)) is amended by
adding at the end the following new subparagraph:
‘‘(C) ELECTION OF UNIFORM COVERAGE POLICY.—In the
case of a Medicare+Choice organization that offers a
Medicare+Choice plan in an area in which more than one
local coverage policy is applied with respect to different
parts of the area, the organization may elect to have the
local coverage policy for the part of the area that is most
beneficial to Medicare+Choice enrollees (as identified by
the Secretary) apply with respect to all Medicare+Choice
enrollees enrolled in the plan.’’.
SEC. 616. ELIMINATING HEALTH DISPARITIES IN MEDICARE+CHOICE
PROGRAM.
(a) QUALITY ASSURANCE PROGRAM FOCUS ON RACIAL AND ETHMINORITIES.—Subparagraphs (A) and (B) of section 1852(e)(2)
(42 U.S.C. 1395w–22(e)(2)) are each amended by adding at the
end the following:
‘‘Such program shall include a separate focus (with respect
to all the elements described in this subparagraph) on
racial and ethnic minorities.’’.
(b) REPORT.—Section 1852(e) (42 U.S.C. 1395w–22(e)) is amended by adding at the end the following new paragraph:
‘‘(5) REPORT TO CONGRESS.—
‘‘(A) IN GENERAL.—Not later than 2 years after the
date of the enactment of this paragraph, and biennially
thereafter, the Secretary shall submit to Congress a report
regarding how quality assurance programs conducted under
this subsection focus on racial and ethnic minorities.
‘‘(B) CONTENTS OF REPORT.—Each such report shall
include the following:
‘‘(i) A description of the means by which such
programs focus on such racial and ethnic minorities.
‘‘(ii) An evaluation of the impact of such programs
on eliminating health disparities and on improving
health outcomes, continuity and coordination of care,
management of chronic conditions, and consumer satisfaction.
‘‘(iii) Recommendations on ways to reduce clinical
outcome disparities among racial and ethnic minorities.’’.
NIC
SEC.
617.
MEDICARE+CHOICE PROGRAM COMPATIBILITY
EMPLOYER OR UNION GROUP HEALTH PLANS.
WITH
(a) IN GENERAL.—Section 1857 (42 U.S.C. 1395w–27) is amended by adding at the end the following new subsection:
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114 STAT. 2763A–562
PUBLIC LAW 106–554—APPENDIX F
‘‘(i) MEDICARE+CHOICE PROGRAM COMPATIBILITY WITH
EMPLOYER OR UNION GROUP HEALTH PLANS.—To facilitate the offering of Medicare+Choice plans under contracts between
Medicare+Choice organizations and employers, labor organizations,
or the trustees of a fund established by one or more employers
or labor organizations (or combination thereof ) to furnish benefits
to the entity’s employees, former employees (or combination thereof )
or members or former members (or combination thereof ) of the
labor organizations, the Secretary may waive or modify requirements that hinder the design of, the offering of, or the enrollment
in such Medicare+Choice plans.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply with respect to years beginning with 2001.
SEC. 618. SPECIAL MEDIGAP ENROLLMENT ANTIDISCRIMINATION
PROVISION FOR CERTAIN BENEFICIARIES.
(a) DISENROLLMENT WINDOW IN ACCORDANCE WITH BENECIRCUMSTANCE.—Section
1882(s)(3)
(42
U.S.C.
1395ss(s)(3)) is amended—
(1) in subparagraph (A), in the matter following clause
(iii), by striking ‘‘, subject to subparagraph (E), seeks to enroll
under the policy not later than 63 days after the date of
the termination of enrollment described in such subparagraph’’
and inserting ‘‘seeks to enroll under the policy during the
period specified in subparagraph (E)’’; and
(2) by striking subparagraph (E) and inserting the following
new subparagraph:
‘‘(E) For purposes of subparagraph (A), the time period specified
in this subparagraph is—
‘‘(i) in the case of an individual described in subparagraph
(B)(i), the period beginning on the date the individual receives
a notice of termination or cessation of all supplemental health
benefits (or, if no such notice is received, notice that a claim
has been denied because of such a termination or cessation)
and ending on the date that is 63 days after the applicable
notice;
‘‘(ii) in the case of an individual described in clause (ii),
(iii), (v), or (vi) of subparagraph (B) whose enrollment is terminated involuntarily, the period beginning on the date that
the individual receives a notice of termination and ending on
the date that is 63 days after the date the applicable coverage
is terminated;
‘‘(iii) in the case of an individual described in subparagraph
(B)(iv)(I), the period beginning on the earlier of (I) the date
that the individual receives a notice of termination, a notice
of the issuer’s bankruptcy or insolvency, or other such similar
notice, if any, and (II) the date that the applicable coverage
is terminated, and ending on the date that is 63 days after
the date the coverage is terminated;
‘‘(iv) in the case of an individual described in clause (ii),
(iii), (iv)(II), (iv)(III), (v), or (vi) of subparagraph (B) who
disenrolls voluntarily, the period beginning on the date that
is 60 days before the effective date of the disenrollment and
ending on the date that is 63 days after such effective date;
and
‘‘(v) in the case of an individual described in subparagraph
(B) but not described in the preceding provisions of this
FICIARY’S
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–563
subparagraph, the period beginning on the effective date of
the disenrollment and ending on the date that is 63 days
after such effective date.’’.
(b) EXTENDED MEDIGAP ACCESS FOR INTERRUPTED TRIAL PERIODS.—Section 1882(s)(3) (42 U.S.C. 1395ss(s)(3)), as amended by
subsection (a), is further amended by adding at the end the following
new subparagraph:
‘‘(F)(i) Subject to clause (ii), for purposes of this paragraph—
‘‘(I) in the case of an individual described in subparagraph
(B)(v) (or deemed to be so described, pursuant to this subparagraph) whose enrollment with an organization or provider
described in subclause (II) of such subparagraph is involuntarily
terminated within the first 12 months of such enrollment, and
who, without an intervening enrollment, enrolls with another
such organization or provider, such subsequent enrollment shall
be deemed to be an initial enrollment described in such
subparagraph; and
‘‘(II) in the case of an individual described in clause (vi)
of subparagraph (B) (or deemed to be so described, pursuant
to this subparagraph) whose enrollment with a plan or in
a program described in such clause is involuntarily terminated
within the first 12 months of such enrollment, and who, without
an intervening enrollment, enrolls in another such plan or
program, such subsequent enrollment shall be deemed to be
an initial enrollment described in such clause.
‘‘(ii) For purposes of clauses (v) and (vi) of subparagraph (B),
no enrollment of an individual with an organization or provider
described in clause (v)(II), or with a plan or in a program described
in clause (vi), may be deemed to be an initial enrollment under
this clause after the 2-year period beginning on the date on which
the individual first enrolled with such an organization, provider,
plan, or program.’’.
SEC. 619. RESTORING EFFECTIVE DATE OF ELECTIONS AND CHANGES
OF ELECTIONS OF MEDICARE+CHOICE PLANS.
(a) OPEN ENROLLMENT.—Section 1851(f )(2) (42 U.S.C. 1395w–
21(f )(2)) is amended by striking ‘‘, except that if such election
or change is made after the 10th day of any calendar month,
then the election or change shall not take effect until the first
day of the second calendar month following the date on which
the election or change is made’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to elections and changes of coverage made on or after
June 1, 2001.
SEC. 620. PERMITTING ESRD BENEFICIARIES TO ENROLL IN ANOTHER
MEDICARE+CHOICE PLAN IF THE PLAN IN WHICH THEY
ARE ENROLLED IS TERMINATED.
(a) IN GENERAL.—Section 1851(a)(3)(B) (42 U.S.C. 1395w–
21(a)(3)(B)) is amended by striking ‘‘except that’’ and all that follows
and inserting the following: ‘‘except that—
‘‘(i) an individual who develops end-stage renal
disease while enrolled in a Medicare+Choice plan may
continue to be enrolled in that plan; and
‘‘(ii) in the case of such an individual who is
enrolled in a Medicare+Choice plan under clause (i)
(or subsequently under this clause), if the enrollment
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114 STAT. 2763A–564
PUBLIC LAW 106–554—APPENDIX F
is discontinued under circumstances described in section 1851(e)(4)(A), then the individual will be treated
as a ‘Medicare+Choice eligible individual’ for purposes
of electing to continue enrollment in another
Medicare+Choice plan.’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendment made by subsection (a)
shall apply to terminations and discontinuations occurring on
or after the date of the enactment of this Act.
(2) APPLICATION TO PRIOR PLAN TERMINATIONS.—Clause (ii)
of section 1851(a)(3)(B) of the Social Security Act (as inserted
by subsection (a)) shall also apply to individuals whose enrollment in a Medicare+Choice plan was terminated or discontinued after December 31, 1998, and before the date of the
enactment of this Act. In applying this paragraph, such an
individual shall be treated, for purposes of part C of title
XVIII of the Social Security Act, as having discontinued enrollment in such a plan as of the date of the enactment of this
Act.
SEC. 621. PROVIDING CHOICE FOR SKILLED NURSING FACILITY SERVICES UNDER THE MEDICARE+CHOICE PROGRAM.
(a) IN GENERAL.—Section 1852 (42 U.S.C. 1395w–22) is amended by adding at the end the following new subsection:
‘‘(l) RETURN TO HOME SKILLED NURSING FACILITIES FOR COVERED POST-HOSPITAL EXTENDED CARE SERVICES.—
‘‘(1) ENSURING RETURN TO HOME SNF.—
‘‘(A) IN GENERAL.—In providing coverage of post-hospital extended care services, a Medicare+Choice plan shall
provide for such coverage through a home skilled nursing
facility if the following conditions are met:
‘‘(i) ENROLLEE ELECTION.—The enrollee elects to
receive such coverage through such facility.
‘‘(ii) SNF AGREEMENT.—The facility has a contract
with the Medicare+Choice organization for the provision of such services, or the facility agrees to accept
substantially similar payment under the same terms
and conditions that apply to similarly situated skilled
nursing facilities that are under contract with the
Medicare+Choice organization for the provision of such
services and through which the enrollee would otherwise receive such services.
‘‘(B) MANNER OF PAYMENT TO HOME SNF.—The
organization shall provide payment to the home skilled
nursing facility consistent with the contract or the agreement described in subparagraph (A)(ii), as the case may
be.
‘‘(2) NO LESS FAVORABLE COVERAGE.—The coverage provided
under paragraph (1) (including scope of services, cost-sharing,
and other criteria of coverage) shall be no less favorable to
the enrollee than the coverage that would be provided to the
enrollee with respect to a skilled nursing facility the posthospital extended care services of which are otherwise covered
under the Medicare+Choice plan.
‘‘(3) RULE OF CONSTRUCTION.—Nothing in this subsection
shall be construed to do the following:
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–565
‘‘(A) To require coverage through a skilled nursing
facility that is not otherwise qualified to provide benefits
under part A for medicare beneficiaries not enrolled in
a Medicare+Choice plan.
‘‘(B) To prevent a skilled nursing facility from refusing
to accept, or imposing conditions upon the acceptance of,
an enrollee for the receipt of post-hospital extended care
services.
‘‘(4) DEFINITIONS.—In this subsection:
‘‘(A) HOME SKILLED NURSING FACILITY.—The term
‘home skilled nursing facility’ means, with respect to an
enrollee who is entitled to receive post-hospital extended
care services under a Medicare+Choice plan, any of the
following skilled nursing facilities:
‘‘(i) SNF RESIDENCE AT TIME OF ADMISSION.—The
skilled nursing facility in which the enrollee resided
at the time of admission to the hospital preceding
the receipt of such post-hospital extended care services.
‘‘(ii) SNF IN CONTINUING CARE RETIREMENT COMMUNITY.—A skilled nursing facility that is providing such
services through a continuing care retirement community (as defined in subparagraph (B)) which provided
residence to the enrollee at the time of such admission.
‘‘(iii) SNF RESIDENCE OF SPOUSE AT TIME OF DISCHARGE.—The skilled nursing facility in which the
spouse of the enrollee is residing at the time of discharge from such hospital.
‘‘(B) CONTINUING CARE RETIREMENT COMMUNITY.—The
term ‘continuing care retirement community’ means, with
respect to an enrollee in a Medicare+Choice plan, an
arrangement under which housing and health-related services are provided (or arranged) through an organization
for the enrollee under an agreement that is effective for
the life of the enrollee or for a specified period.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply with respect to contracts entered into or renewed on
or after the date of the enactment of this Act.
(c) MEDPAC STUDY.—
(1) STUDY.—The Medicare Payment Advisory Commission
shall conduct a study analyzing the effects of the amendment
made by subsection (a) on Medicare+Choice organizations. In
conducting such study, the Commission shall examine the
effects (if any) such amendment has had—
(A) on the scope of additional benefits provided under
the Medicare+Choice program;
(B) on the administrative and other costs incurred
by Medicare+Choice organizations; and
(C) on the contractual relationships between such
organizations and skilled nursing facilities.
(2) REPORT.—Not later than 2 years after the date of the
enactment of this Act, the Commission shall submit to Congress
a report on the study conducted under paragraph (1).
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114 STAT. 2763A–566
PUBLIC LAW 106–554—APPENDIX F
SEC. 622. PROVIDING FOR ACCOUNTABILITY OF MEDICARE+CHOICE
PLANS.
(a) MANDATORY REVIEW OF ACR SUBMISSIONS BY THE CHIEF
ACTUARY OF THE HEALTH CARE FINANCING ADMINISTRATION.—Section 1854(a)(5)(A) (42 U.S.C. 1395w–24(a)(5)(A)) is amended—
(1) by striking ‘‘value’’ and inserting ‘‘values’’; and
(2) by adding at the end the following: ‘‘The Chief Actuary
of the Health Care Financing Administration shall review the
actuarial assumptions and data used by the Medicare+Choice
organization with respect to such rates, amounts, and values
so submitted to determine the appropriateness of such assumptions and data.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply to submissions made on or after May 1, 2001.
SEC. 623. INCREASED CIVIL MONEY PENALTY FOR MEDICARE+CHOICE
ORGANIZATIONS THAT TERMINATE CONTRACTS MIDYEAR.
(a) IN GENERAL.—Section 1857(g)(3) (42 U.S.C. 1395w–27(g)(3))
is amended by adding at the end the following new subparagraph:
‘‘(D) Civil monetary penalties of not more than
$100,000, or such higher amount as the Secretary may
establish by regulation, where the finding under subsection
(c)(2)(A) is based on the organization’s termination of its
contract under this section other than at a time and in
a manner provided for under subsection (a).’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to terminations occurring after the date of the enactment
of this Act.
Subtitle C—Other Managed Care Reforms
SEC. 631. ONE-YEAR EXTENSION OF SOCIAL HEALTH MAINTENANCE
ORGANIZATION (SHMO) DEMONSTRATION PROJECT.
Section 4018(b)(1) of the Omnibus Budget Reconciliation Act
of 1987, as amended by section 531(a)(1) of BBRA (113 Stat. 1501A–
388), is amended by striking ‘‘18 months’’ and inserting ‘‘30 months’’.
SEC. 632. REVISED TERMS AND CONDITIONS FOR EXTENSION OF MEDICARE COMMUNITY NURSING ORGANIZATION (CNO) DEMONSTRATION PROJECT.
(a) IN GENERAL.—Section 532 of BBRA (113 Stat. 1501A–388)
is amended—
(1) in subsection (a), by striking the second sentence; and
(2) by striking subsection (b) and inserting the following
new subsection:
‘‘(b) TERMS AND CONDITIONS.—
‘‘(1) JANUARY THROUGH SEPTEMBER 2000.—For the 9-month
period beginning with January 2000, any such demonstration
project shall be conducted under the same terms and conditions
as applied to such demonstration during 1999.
‘‘(2) OCTOBER 2000 THROUGH DECEMBER 2001.—For the 15month period beginning with October 2000, any such demonstration project shall be conducted under the same terms
and conditions as applied to such demonstration during 1999,
except that the following modifications shall apply:
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–567
‘‘(A) BASIC CAPITATION RATE.—The basic capitation rate
paid for services covered under the project (other than
case management services) per enrollee per month and
furnished during—
‘‘(i) the period beginning with October 1, 2000,
and ending with December 31, 2000, shall be determined by actuarially adjusting the actual capitation
rate paid for such services in 1999 for inflation, utilization, and other changes to the CNO service package,
and by reducing such adjusted capitation rate by 10
percent in the case of the demonstration sites located
in Arizona, Minnesota, and Illinois, and 15 percent
for the demonstration site located in New York; and
‘‘(ii) 2001 shall be determined by actuarially
adjusting the capitation rate determined under clause
(i) for inflation, utilization, and other changes to the
CNO service package.
‘‘(B) TARGETED CASE MANAGEMENT FEE.—Effective
October 1, 2000—
‘‘(i) the case management fee per enrollee per
month for—
‘‘(I) the period described in subparagraph (A)(i)
shall be determined by actuarially adjusting the
case management fee for 1999 for inflation; and
‘‘(II) 2001 shall be determined by actuarially
adjusting the amount determined under subclause
(I) for inflation; and
‘‘(ii) such case management fee shall be paid only
for enrollees who are classified as moderately frail
or frail pursuant to criteria established by the Secretary.
‘‘(C) GREATER UNIFORMITY IN CLINICAL FEATURES
AMONG SITES.—Each project shall implement for each site—
‘‘(i) protocols for periodic telephonic contact with
enrollees based on—
‘‘(I) the results of such standardized written
health assessment; and
‘‘(II) the application of appropriate care planning approaches;
‘‘(ii) disease management programs for targeted
diseases (such as congestive heart failure, arthritis,
diabetes, and hypertension) that are highly prevalent
in the enrolled populations;
‘‘(iii) systems and protocols to track enrollees
through hospitalizations, including pre-admission planning, concurrent management during inpatient hospital stays, and post-discharge assessment, planning,
and follow-up; and
‘‘(iv) standardized patient educational materials for
specified diseases and health conditions.
‘‘(D) QUALITY IMPROVEMENT.—Each project shall implement at each site once during the 15-month period—
‘‘(i) enrollee satisfaction surveys; and
‘‘(ii) reporting on specified quality indicators for
the enrolled population.
‘‘(c) EVALUATION.—
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114 STAT. 2763A–568
PUBLIC LAW 106–554—APPENDIX F
‘‘(1) PRELIMINARY REPORT.—Not later than July 1, 2001,
the Secretary of Health and Human Services shall submit
to the Committees on Ways and Means and Commerce of
the House of Representatives and the Committee on Finance
of the Senate a preliminary report that—
‘‘(A) evaluates such demonstration projects for the
period beginning July 1, 1997, and ending December 31,
1999, on a site-specific basis with respect to the impact
on per beneficiary spending, specific health utilization
measures, and enrollee satisfaction; and
‘‘(B) includes a similar evaluation of such projects for
the portion of the extension period that occurs after
September 30, 2000.
‘‘(2) FINAL REPORT.—The Secretary shall submit a final
report to such Committees on such demonstration projects not
later than July 1, 2002. Such report shall include the same
elements as the preliminary report required by paragraph (1),
but for the period after December 31, 1999.
‘‘(3) METHODOLOGY FOR SPENDING COMPARISONS.—Any
evaluation of the impact of the demonstration projects on per
beneficiary spending included in such reports shall include
a comparison of—
‘‘(A) data for all individuals who—
‘‘(i) were enrolled in such demonstration projects
as of the first day of the period under evaluation;
and
‘‘(ii) were enrolled for a minimum of 6 months
thereafter; with
‘‘(B) data for a matched sample of individuals who
are enrolled under part B of title XVIII of the Social Security Act and are not enrolled in such a project, or in
a Medicare+Choice plan under part C of such title, a plan
offered by an eligible organization under section 1876 of
such Act, or a health care prepayment plan under section
1833(a)(1)(A) of such Act.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall be effective as if included in the enactment of section
532 of BBRA (113 Stat. 1501A–388).
SEC. 633. EXTENSION OF MEDICARE MUNICIPAL HEALTH SERVICES
DEMONSTRATION PROJECTS.
Section 9215(a) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (42 U.S.C. 1395b–1 note), as amended by section
6135 of the Omnibus Budget Reconciliation Act of 1989, section
13557 of the Omnibus Budget Reconciliation Act of 1993, section
4017 of BBA, and section 534 of BBRA (113 Stat. 1501A–390),
is amended by striking ‘‘December 31, 2002’’ and inserting ‘‘December 31, 2004’’.
SEC. 634. SERVICE AREA EXPANSION FOR MEDICARE COST CONTRACTS DURING TRANSITION PERIOD.
Section 1876(h)(5) (42 U.S.C. 1395mm(h)(5)) is amended—
(1) by redesignating subparagraph (B) as subparagraph
(C); and
(2) by inserting after subparagraph (A), the following new
subparagraph:
‘‘(B) Subject to subparagraph (C), the Secretary shall approve
an application for a modification to a reasonable cost contract
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–569
under this section in order to expand the service area of such
contract if—
‘‘(i) such application is submitted to the Secretary on or
before September 1, 2003; and
‘‘(ii) the Secretary determines that the organization with
the contract continues to meet the requirements applicable
to such organizations and contracts under this section.’’.
TITLE VII—MEDICAID
SEC. 701. DSH PAYMENTS.
(a) MODIFICATIONS TO DSH ALLOTMENTS.—
(1) INCREASED ALLOTMENTS FOR FISCAL YEARS 2001 AND
2002.—
(A) IN GENERAL.—Section 1923(f ) (42 U.S.C. 1396r–
4(f )) is amended—
(i) in paragraph (2), by striking ‘‘The DSH allotment’’ and inserting ‘‘Subject to paragraph (4), the
DSH allotment’’;
(ii) by redesignating paragraph (4) as paragraph
(6); and
(iii) by inserting after paragraph (3) the following
new paragraph:
‘‘(4) SPECIAL RULE FOR FISCAL YEARS 2001 AND 2002.—
‘‘(A) IN GENERAL.—Notwithstanding paragraph (2), the
DSH allotment for any State for—
‘‘(i) fiscal year 2001, shall be the DSH allotment
determined under paragraph (2) for fiscal year 2000
increased, subject to subparagraph (B) and paragraph
(5), by the percentage change in the consumer price
index for all urban consumers (all items; U.S. city
average) for fiscal year 2000; and
‘‘(ii) fiscal year 2002, shall be the DSH allotment
determined under clause (i) increased, subject to
subparagraph (B) and paragraph (5), by the percentage
change in the consumer price index for all urban
consumers (all items; U.S. city average) for fiscal year
2001.
‘‘(B) LIMITATION.—Subparagraph (B) of paragraph (3)
shall apply to subparagraph (A) of this paragraph in the
same manner as that subparagraph (B) applies to paragraph (3)(A).
‘‘(C) NO APPLICATION TO ALLOTMENTS AFTER FISCAL
YEAR 2002.—The DSH allotment for any State for fiscal
year 2003 or any succeeding fiscal year shall be determined
under paragraph (3) without regard to the DSH allotments
determined under subparagraph (A) of this paragraph.’’.
(2) SPECIAL RULE FOR MEDICAID DSH ALLOTMENT FOR
EXTREMELY LOW DSH STATES.—
(A) IN GENERAL.—Section 1923(f ) (42 U.S.C. 1396r–
4(f )), as amended by paragraph (1), is amended by inserting
after paragraph (4) the following new paragraph:
‘‘(5) SPECIAL RULE FOR EXTREMELY LOW DSH STATES.—In
the case of a State in which the total expenditures under
the State plan (including Federal and State shares) for disproportionate share hospital adjustments under this section
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114 STAT. 2763A–570
PUBLIC LAW 106–554—APPENDIX F
for fiscal year 1999, as reported to the Administrator of the
Health Care Financing Administration as of August 31, 2000,
is greater than 0 but less than 1 percent of the State’s total
amount of expenditures under the State plan for medical assistance during the fiscal year, the DSH allotment for fiscal year
2001 shall be increased to 1 percent of the State’s total amount
of expenditures under such plan for such assistance during
such fiscal year. In subsequent fiscal years, such increased
allotment is subject to an increase for inflation as provided
in paragraph (3)(A).’’.
(B) CONFORMING AMENDMENT.—Section 1923(f )(3)(A)
(42 U.S.C. 1396r–4(f )(3)(A)) is amended by inserting ‘‘and
paragraph (5)’’ after ‘‘subparagraph (B)’’.
(3) EFFECTIVE DATE.—The amendments made by paragraphs (1) and (2) take effect on the date the final regulation
required under section 705(a) (relating to the application of
an aggregate upper payment limit test for State medicaid
spending for inpatient hospital services, outpatient hospital
services, nursing facility services, intermediate care facility
services for the mentally retarded, and clinic services provided
by government facilities that are not State-owned or operated
facilities) is published in the Federal Register.
(b) ASSURING IDENTIFICATION OF MEDICAID MANAGED CARE
PATIENTS.—
(1) IN GENERAL.—Section 1932 (42 U.S.C. 1396u–2) is
amended by adding at the end the following new subsection:
‘‘(g) IDENTIFICATION OF PATIENTS FOR PURPOSES OF MAKING
DSH PAYMENTS.—Each contract with a managed care entity under
section 1903(m) or under section 1905(t)(3) shall require the entity
either—
‘‘(1) to report to the State information necessary to determine the hospital services provided under the contract (and
the identity of hospitals providing such services) for purposes
of applying sections 1886(d)(5)(F) and 1923; or
‘‘(2) to include a sponsorship code in the identification
card issued to individuals covered under this title in order
that a hospital may identify a patient as being entitled to
benefits under this title.’’.
(2) CLARIFICATION OF COUNTING MANAGED CARE MEDICAID
PATIENTS.—Section 1923 (42 U.S.C. 1396r–4) is amended—
(A) in subsection (a)(2)(D), by inserting after ‘‘the
proportion of low-income and medicaid patients’’ the following: ‘‘(including such patients who receive benefits through
a managed care entity)’’;
(B) in subsection (b)(2), by inserting after ‘‘a State
plan approved under this title in a period’’ the following:
‘‘(regardless of whether such patients receive medical
assistance on a fee-for-service basis or through a managed
care entity)’’; and
(C) in subsection (b)(3)(A)(i), by inserting after ‘‘under
a State plan under this title’’ the following: ‘‘(regardless
of whether the services were furnished on a fee-for-service
basis or through a managed care entity)’’.
(3) EFFECTIVE DATES.—
(A) The amendment made by paragraph (1) shall apply
to contracts as of January 1, 2001.
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–571
(B) The amendments made by paragraph (2) shall
apply to payments made on or after January 1, 2001.
(c) APPLICATION OF MEDICAID DSH TRANSITION RULE TO PUBLIC
HOSPITALS IN ALL STATES.—
(1) IN GENERAL.—During the period described in paragraph
(3), with respect to a State, section 4721(e) of the Balanced
Budget Act of 1997 (Public Law 105–33; 111 Stat. 514), as
amended by section 607 of BBRA (113 Stat. 1501A–396), shall
be applied as though—
(A) ‘‘September 30, 2002’’ were substituted for ‘‘July
1, 1997’’ each place it appears;
(B) ‘‘hospitals owned or operated by a State (as defined
for purposes of title XIX of such Act), or by an instrumentality or a unit of government within a State (as so defined)’’
were substituted for ‘‘the State of California’’;
(C) paragraph (3) were redesignated as paragraph (4);
(D) ‘‘and’’ were omitted from the end of paragraph
(2); and
(E) the following new paragraph were inserted after
paragraph (2):
‘‘(3) ‘(as defined in subparagraph (B) but without regard
to clause (ii) of that subparagraph and subject to subsection
(d))’ were substituted for ‘(as defined in subparagraph (B))’
in subparagraph (A) of such section; and’’.
(2) SPECIAL RULE.—With respect to California, section
4721(e) of the Balanced Budget Act of 1997 (Public Law 105–
33; 111 Stat. 514), as so amended, shall be applied without
regard to paragraph (1).
(3) PERIOD DESCRIBED.—The period described in this paragraph is the period that begins, with respect to a State, on
the first day of the first State fiscal year that begins after
September 30, 2002, and ends on the last day of the succeeding
State fiscal year.
(4) APPLICATION TO WAIVERS.—With respect to a State
operating under a waiver of the requirements of title XIX
of the Social Security Act (42 U.S.C. 1396 et seq.) under section
1115 of such Act (42 U.S.C. 1315), the amount by which any
payment adjustment made by the State under title XIX of
such Act (42 U.S.C. 1396 et seq.), after the application of
section 4721(e) of the Balanced Budget Act of 1997 under
paragraph (1) to such State, exceeds the costs of furnishing
hospital services provided by hospitals described in such section
shall be fully reflected as an increase in the baseline expenditure limit for such waiver.
(d) ASSISTANCE FOR CERTAIN PUBLIC HOSPITALS.—
(1) IN GENERAL.—Beginning with fiscal year 2002, notwithstanding section 1923(f ) of the Social Security Act (42 U.S.C.
1396r–4(f )) and subject to paragraph (3), with respect to a
State, payment adjustments made under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.) to a hospital described
in paragraph (2) shall be made without regard to the DSH
allotment limitation for the State determined under section
1923(f ) of that Act (42 U.S.C. 1396r–4(f )).
(2) HOSPITAL DESCRIBED.—A hospital is described in this
paragraph if the hospital—
(A) is owned or operated by a State (as defined for
purposes of title XIX of the Social Security Act), or by
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114 STAT. 2763A–572
PUBLIC LAW 106–554—APPENDIX F
an instrumentality or a unit of government within a State
(as so defined);
(B) as of October 1, 2000—
(i) is in existence and operating as a hospital
described in subparagraph (A); and
(ii) is not receiving disproportionate share hospital
payments from the State in which it is located under
title XIX of such Act; and
(C) has a low-income utilization rate (as defined in
section 1923(b)(3) of the Social Security Act (42 U.S.C.
1396r–4(b)(3))) in excess of 65 percent.
(3) LIMITATION ON EXPENDITURES.—
(A) IN GENERAL.—With respect to any fiscal year, the
aggregate amount of Federal financial participation that
may be provided for payment adjustments described in
paragraph (1) for that fiscal year for all States may not
exceed the amount described in subparagraph (B) for the
fiscal year.
(B) AMOUNT DESCRIBED.—The amount described in this
subparagraph for a fiscal year is as follows:
(i) For fiscal year 2002, $15,000,000.
(ii) For fiscal year 2003, $176,000,000.
(iii) For fiscal year 2004, $269,000,000.
(iv) For fiscal year 2005, $330,000,000.
(v) For fiscal year 2006 and each fiscal year thereafter, $375,000,000.
(e) DSH PAYMENT ACCOUNTABILITY STANDARDS.—Not later
than September 30, 2002, the Secretary of Health and Human
Services shall implement accountability standards to ensure that
Federal funds provided with respect to disproportionate share hospital adjustments made under section 1923 of the Social Security
Act (42 U.S.C. 1396r–4) are used to reimburse States and hospitals
eligible for such payment adjustments for providing uncompensated
health care to low-income patients and are otherwise made in
accordance with the requirements of section 1923 of that Act.
SEC. 702. NEW PROSPECTIVE PAYMENT SYSTEM FOR FEDERALLYQUALIFIED HEALTH CENTERS AND RURAL HEALTH CLINICS.
(a) IN GENERAL.—Section 1902(a) (42 U.S.C. 1396a(a)) is
amended—
(1) in paragraph (13)—
(A) in subparagraph (A), by adding ‘‘and’’ at the end;
(B) in subparagraph (B), by striking ‘‘and’’ at the end;
and
(C) by striking subparagraph (C); and
(2) by inserting after paragraph (14) the following new
paragraph:
‘‘(15) provide for payment for services described in clause
(B) or (C) of section 1905(a)(2) under the plan in accordance
with subsection (aa);’’.
(b) NEW PROSPECTIVE PAYMENT SYSTEM.—Section 1902 (42
U.S.C. 1396a) is amended by adding at the end the following:
‘‘(aa) PAYMENT FOR SERVICES PROVIDED BY FEDERALLY-QUALIFIED HEALTH CENTERS AND RURAL HEALTH CLINICS.—
‘‘(1) IN GENERAL.—Beginning with fiscal year 2001 with
respect to services furnished on or after January 1, 2001, and
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–573
each succeeding fiscal year, the State plan shall provide for
payment for services described in section 1905(a)(2)(C) furnished by a Federally-qualified health center and services
described in section 1905(a)(2)(B) furnished by a rural health
clinic in accordance with the provisions of this subsection.
‘‘(2) FISCAL YEAR 2001.—Subject to paragraph (4), for services furnished on and after January 1, 2001, during fiscal
year 2001, the State plan shall provide for payment for such
services in an amount (calculated on a per visit basis) that
is equal to 100 percent of the average of the costs of the
center or clinic of furnishing such services during fiscal years
1999 and 2000 which are reasonable and related to the cost
of furnishing such services, or based on such other tests of
reasonableness as the Secretary prescribes in regulations under
section 1833(a)(3), or, in the case of services to which such
regulations do not apply, the same methodology used under
section 1833(a)(3), adjusted to take into account any increase
or decrease in the scope of such services furnished by the
center or clinic during fiscal year 2001.
‘‘(3) FISCAL YEAR 2002 AND SUCCEEDING FISCAL YEARS.—
Subject to paragraph (4), for services furnished during fiscal
year 2002 or a succeeding fiscal year, the State plan shall
provide for payment for such services in an amount (calculated
on a per visit basis) that is equal to the amount calculated
for such services under this subsection for the preceding fiscal
year—
‘‘(A) increased by the percentage increase in the MEI
(as defined in section 1842(i)(3)) applicable to primary care
services (as defined in section 1842(i)(4)) for that fiscal
year; and
‘‘(B) adjusted to take into account any increase or
decrease in the scope of such services furnished by the
center or clinic during that fiscal year.
‘‘(4) ESTABLISHMENT OF INITIAL YEAR PAYMENT AMOUNT FOR
NEW CENTERS OR CLINICS.—In any case in which an entity
first qualifies as a Federally-qualified health center or rural
health clinic after fiscal year 2000, the State plan shall provide
for payment for services described in section 1905(a)(2)(C) furnished by the center or services described in section
1905(a)(2)(B) furnished by the clinic in the first fiscal year
in which the center or clinic so qualifies in an amount (calculated on a per visit basis) that is equal to 100 percent
of the costs of furnishing such services during such fiscal year
based on the rates established under this subsection for the
fiscal year for other such centers or clinics located in the
same or adjacent area with a similar case load or, in the
absence of such a center or clinic, in accordance with the
regulations and methodology referred to in paragraph (2) or
based on such other tests of reasonableness as the Secretary
may specify. For each fiscal year following the fiscal year in
which the entity first qualifies as a Federally-qualified health
center or rural health clinic, the State plan shall provide for
the payment amount to be calculated in accordance with paragraph (3).
‘‘(5) ADMINISTRATION IN THE CASE OF MANAGED CARE.—
‘‘(A) IN GENERAL.—In the case of services furnished
by a Federally-qualified health center or rural health clinic
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114 STAT. 2763A–574
PUBLIC LAW 106–554—APPENDIX F
pursuant to a contract between the center or clinic and
a managed care entity (as defined in section 1932(a)(1)(B)),
the State plan shall provide for payment to the center
or clinic by the State of a supplemental payment equal
to the amount (if any) by which the amount determined
under paragraphs (2), (3), and (4) of this subsection exceeds
the amount of the payments provided under the contract.
‘‘(B) PAYMENT SCHEDULE.—The supplemental payment
required under subparagraph (A) shall be made pursuant
to a payment schedule agreed to by the State and the
Federally-qualified health center or rural health clinic, but
in no case less frequently than every 4 months.
‘‘(6) ALTERNATIVE PAYMENT METHODOLOGIES.—Notwithstanding any other provision of this section, the State plan
may provide for payment in any fiscal year to a Federallyqualified health center for services described in section
1905(a)(2)(C) or to a rural health clinic for services described
in section 1905(a)(2)(B) in an amount which is determined
under an alternative payment methodology that—
‘‘(A) is agreed to by the State and the center or clinic;
and
‘‘(B) results in payment to the center or clinic of an
amount which is at least equal to the amount otherwise
required to be paid to the center or clinic under this section.’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 4712 of the BBA (Public Law 105–33; 111 Stat.
508) is amended by striking subsection (c).
(2) Section 1915(b) (42 U.S.C. 1396n(b)) is amended by
striking ‘‘1902(a)(13)(C)’’ and inserting ‘‘1902(a)(15), 1902(aa),’’.
(d) GAO STUDY OF FUTURE REBASING.—The Comptroller General of the United States shall provide for a study on the need
for, and how to, rebase or refine costs for making payment under
the medicaid program for services provided by Federally-qualified
health centers and rural health clinics (as provided under the
amendments made by this section). The Comptroller General shall
provide for submittal of a report on such study to Congress by
not later than 4 years after the date of the enactment of this
Act.
(e) EFFECTIVE DATE.—The amendments made by this section
take effect on January 1, 2001, and shall apply to services furnished
on or after such date.
SEC. 703. STREAMLINED APPROVAL OF CONTINUED STATE-WIDE SECTION 1115 MEDICAID WAIVERS.
(a) IN GENERAL.—Section 1115 (42 U.S.C. 1315) is amended
by adding at the end the following new subsection:
‘‘(f ) An application by the chief executive officer of a State
for an extension of a waiver project the State is operating under
an extension under subsection (e) (in this subsection referred to
as the ‘waiver project’) shall be submitted and approved or disapproved in accordance with the following:
‘‘(1) The application for an extension of the waiver project
shall be submitted to the Secretary at least 120 days prior
to the expiration of the current period of the waiver project.
‘‘(2) Not later than 45 days after the date such application
is received by the Secretary, the Secretary shall notify the
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–575
State if the Secretary intends to review the terms and conditions of the waiver project. A failure to provide such notification
shall be deemed to be an approval of the application.
‘‘(3) Not later than 45 days after the date a notification
is made in accordance with paragraph (2), the Secretary shall
inform the State of proposed changes in the terms and conditions of the waiver project. A failure to provide such information
shall be deemed to be an approval of the application.
‘‘(4) During the 30-day period that begins on the date
information described in paragraph (3) is provided to a State,
the Secretary shall negotiate revised terms and conditions of
the waiver project with the State.
‘‘(5)(A) Not later than 120 days after the date an application
for an extension of the waiver project is submitted to the
Secretary (or such later date agreed to by the chief executive
officer of the State), the Secretary shall—
‘‘(i) approve the application subject to such modifications in the terms and conditions—
‘‘(I) as have been agreed to by the Secretary and
the State; or
‘‘(II) in the absence of such agreement, as are
determined by the Secretary to be reasonable, consistent with the overall objectives of the waiver project,
and not in violation of applicable law; or
‘‘(ii) disapprove the application.
‘‘(B) A failure by the Secretary to approve or disapprove
an application submitted under this subsection in accordance
with the requirements of subparagraph (A) shall be deemed
to be an approval of the application subject to such modifications in the terms and conditions as have been agreed to
(if any) by the Secretary and the State.
‘‘(6) An approval of an application for an extension of
a waiver project under this subsection shall be for a period
not to exceed 3 years.
‘‘(7) An extension of a waiver project under this subsection
shall be subject to the final reporting and evaluation requirements of paragraphs (4) and (5) of subsection (e) (taking into
account the extension under this subsection with respect to
any timing requirements imposed under those paragraphs).’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to requests for extensions of demonstration projects
pending or submitted on or after the date of the enactment of
this Act.
SEC. 704. MEDICAID COUNTY-ORGANIZED HEALTH SYSTEMS.
(a) IN GENERAL.—Section 9517(c)(3)(C) of the Comprehensive
Omnibus Budget Reconciliation Act of 1985 is amended by striking
‘‘10 percent’’ and inserting ‘‘14 percent’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
takes effect on the date of the enactment of this Act.
SEC. 705. DEADLINE FOR ISSUANCE OF FINAL REGULATION RELATING
TO MEDICAID UPPER PAYMENT LIMITS.
(a) IN GENERAL.—Not later than December 31, 2000, the Secretary of Health and Human Services (in this section referred
to as the ‘‘Secretary’’), notwithstanding any requirement of the
Administrative Procedures Act under chapter 5 of title 5, United
States Code, or any other provision of law, shall issue under sections
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114 STAT. 2763A–576
PUBLIC LAW 106–554—APPENDIX F
447.272, 447.304, and 447.321 of title 42, Code of Federal Regulations (and any other section of part 447 of title 42, Code of Federal
Regulations that the Secretary determines is appropriate), a final
regulation based on the proposed rule announced on October 5,
2000, that—
(1) modifies the upper payment limit test applied to State
medicaid spending for inpatient hospital services, outpatient
hospital services, nursing facility services, intermediate care
facility services for the mentally retarded, and clinic services
by applying an aggregate upper payment limit to payments
made to government facilities that are not State-owned or operated facilities; and
(2) provides for a transition period in accordance with
subsection (b).
(b) TRANSITION PERIOD.—
(1) IN GENERAL.—The final regulation required under subsection (a) shall provide that, with respect to a State described
in paragraph (3), the State shall be considered to be in compliance with the final regulation required under subsection (a)
so long as, for each State fiscal year during the period described
in paragraph (4), the State reduces payments under a State
medicaid plan payment provision or methodology described in
paragraph (3) (including a payment provision or methodology
described in that paragraph that was approved under a waiver
of such plan), or reduces the actual dollar payment levels
described in paragraph (3)(B), so that the amount of the payments that would otherwise have been made under such provision, methodology, or payment levels by the State for any
State fiscal year during such period is reduced by 15 percent
in the first such State fiscal year, and by an additional 15
percent in each of the next 5 State fiscal years.
(2) REQUIREMENT.—Notwithstanding paragraph (1), the
final regulation required under subsection (a) shall provide
that, for any period (or portion of a period) that occurs on
or after October 1, 2008, medicaid payments made by a State
described in paragraph (3) shall comply with such final regulation.
(3) STATE DESCRIBED.—A State described in this paragraph
is a State with a State medicaid plan payment provision or
methodology (including a payment provision or methodology
approved under a waiver of such plan) which—
(A) was approved, deemed to have been approved, or
was in effect on or before October 1, 1992 (including any
subsequent amendments or successor provisions or methodologies and whether or not a State plan amendment
was made to carry out such provision or methodology after
such date) or under which claims for Federal financial
participation were filed and paid on or before such date;
and
(B) provides for payments that are in excess of the
upper payment limit test established under the final regulation required under subsection (a) (or which would be
noncompliant with such final regulation if the actual dollar
payment levels made under the payment provision or methodology in the State fiscal year which begins during 1999
were continued).
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–577
(4) PERIOD DESCRIBED.—The period described in this paragraph is the period that begins on the first State fiscal year
that begins after September 30, 2002, and ends on September
30, 2008.
SEC. 706. ALASKA FMAP.
Notwithstanding the first sentence of section 1905(b) of the
Social Security Act (42 U.S.C. 1396d(b)), only with respect to each
of fiscal years 2001 through 2005, for purposes of titles XIX and
XXI of the Social Security Act, the State percentage used to determine the Federal medical assistance percentage for Alaska shall
be that percentage which bears the same ratio to 45 percent as
the square of the adjusted per capita income of Alaska (determined
by dividing the State’s 3-year average per capita income by 1.05)
bears to the square of the per capita income of the 50 States.
SEC. 707. ONE-YEAR EXTENSION OF WELFARE-TO-WORK TRANSITION.
(a) IN GENERAL.—Section 1925(f ) (42 U.S.C. 1396r–6(f )) is
amended by striking ‘‘2001’’ and inserting ‘‘2002’’.
(b) CONFORMING AMENDMENT.—Section 1902(e)(1)(B) (42 U.S.C.
1396a(e)(1)(B)) is amended by striking ‘‘2001’’ and inserting ‘‘2002’’.
SEC. 708. ADDITIONAL ENTITIES QUALIFIED TO DETERMINE MEDICAID
PRESUMPTIVE ELIGIBILITY FOR LOW-INCOME CHILDREN.
(a) IN GENERAL.—Section 1920A(b)(3)(A)(i) (42 U.S.C. 1396r–
1a(b)(3)(A)(i)) is amended—
(1) by striking ‘‘or (II)’’ and inserting ‘‘, (II)’’; and
(2) by inserting ‘‘eligibility of a child for medical assistance
under the State plan under this title, or eligibility of a child
for child health assistance under the program funded under
title XXI, (III) is an elementary school or secondary school,
as such terms are defined in section 14101 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 8801), an
elementary or secondary school operated or supported by the
Bureau of Indian Affairs, a State or tribal child support enforcement agency, an organization that is providing emergency food
and shelter under a grant under the Stewart B. McKinney
Homeless Assistance Act, or a State or tribal office or entity
involved in enrollment in the program under this title, under
part A of title IV, under title XXI, or that determines eligibility
for any assistance or benefits provided under any program
of public or assisted housing that receives Federal funds, including the program under section 8 or any other section of the
United States Housing Act of 1937 (42 U.S.C. 1437 et seq.)
or under the Native American Housing Assistance and SelfDetermination Act of 1996 (25 U.S.C. 4101 et seq.), or (IV)
any other entity the State so deems, as approved by the Secretary’’ before the semicolon.
(b) TECHNICAL AMENDMENTS.—Section 1920A (42 U.S.C. 1396r–
1a) is amended—
(1) in subsection (b)(3)(A)(i), by striking ‘‘42 U.S.C. 9821’’
and inserting ‘‘42 U.S.C. 9831’’;
(2) in subsection (b)(3)(A)(ii), by striking ‘‘paragraph (1)(A)’’
and inserting ‘‘paragraph (2)’’; and
(3) in subsection (c)(2), in the matter preceding subparagraph (A), by striking ‘‘subsection (b)(1)(A)’’ and inserting ‘‘subsection (b)(2)’’.
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114 STAT. 2763A–578
PUBLIC LAW 106–554—APPENDIX F
SEC. 709. DEVELOPMENT OF UNIFORM QMB/SLMB APPLICATION FORM.
(a) IN GENERAL.—Section 1905(p) (42 U.S.C. 1396d(p)) is
amended by adding at the end the following new paragraph:
‘‘(5)(A) The Secretary shall develop and distribute to States
a simplified application form for use by individuals (including both
qualified medicare beneficiaries and specified low-income medicare
beneficiaries) in applying for medical assistance for medicare costsharing under this title in the States which elect to use such
form. Such form shall be easily readable by applicants and uniform
nationally.
‘‘(B) In developing such form, the Secretary shall consult with
beneficiary groups and the States.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect 1 year after the date of the enactment of this
Act, regardless of whether regulations have been promulgated to
carry out such amendment by such date. The Secretary of Health
and Human Services shall develop the uniform application form
under such amendment by not later than 9 months after the date
of the enactment of this Act.
SEC. 710. TECHNICAL CORRECTIONS.
(a) IN GENERAL.—Section 1903(f )(4) (42 U.S.C. 1396b(f )(4)) is
amended—
(1)
by
inserting
‘‘1902(a)(10)(A)(ii)(XVII),’’
after
‘‘1902(a)(10)(A)(ii)(XVI),’’; and
(2)
by
inserting
‘‘1902(a)(10)(A)(ii)(XVIII),’’
after
‘‘1902(a)(10)(A)(ii)(XVII),’’.
(b) EFFECTIVE DATES.—(1) The amendment made by subsection
(a)(1) shall be effective as if included in the enactment of section
121 of the Foster Care Independence Act of 1999 (Public Law
106–169).
(2) The amendment made by subsection (a)(2) shall be effective
as if included in the enactment of the Breast and Cervical Cancer
Prevention and Treatment Act of 2000 (Public Law 106–354).
TITLE VIII—STATE CHILDREN’S
HEALTH INSURANCE PROGRAM
SEC. 801. SPECIAL RULE FOR REDISTRIBUTION AND AVAILABILITY
OF UNUSED FISCAL YEAR 1998 AND 1999 SCHIP ALLOTMENTS.
(a) CHANGE IN RULES FOR REDISTRIBUTION AND RETENTION
UNUSED SCHIP ALLOTMENTS FOR FISCAL YEARS 1998 AND
1999.—Section 2104 (42 U.S.C. 1397dd) is amended by adding at
the end the following new subsection:
‘‘(g) RULE FOR REDISTRIBUTION AND EXTENDED AVAILABILITY
OF FISCAL YEARS 1998 AND 1999 ALLOTMENTS.—
‘‘(1) AMOUNT REDISTRIBUTED.—
‘‘(A) IN GENERAL.—In the case of a State that expends
all of its allotment under subsection (b) or (c) for fiscal
year 1998 by the end of fiscal year 2000, or for fiscal
year 1999 by the end of fiscal year 2001, the Secretary
shall redistribute to the State under subsection (f ) (from
the fiscal year 1998 or 1999 allotments of other States,
OF
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–579
respectively, as determined by the application of paragraphs (2) and (3) with respect to the respective fiscal
year) the following amount:
‘‘(i) STATE.—In the case of one of the 50 States
or the District of Columbia, with respect to—
‘‘(I) the fiscal year 1998 allotment, the amount
by which the State’s expenditures under this title
in fiscal years 1998, 1999, and 2000 exceed the
State’s allotment for fiscal year 1998 under subsection (b); or
‘‘(II) the fiscal year 1999 allotment, the amount
by which the State’s expenditures under this title
in fiscal years 1999, 2000, and 2001 exceed the
State’s allotment for fiscal year 1999 under subsection (b).
‘‘(ii) TERRITORY.—In the case of a commonwealth
or territory described in subsection (c)(3), an amount
that bears the same ratio to 1.05 percent of the total
amount described in paragraph (2)(B)(i)(I) as the ratio
of the commonwealth’s or territory’s fiscal year 1998
or 1999 allotment under subsection (c) (as the case
may be) bears to the total of all such allotments for
such fiscal year under such subsection.
‘‘(B) EXPENDITURE RULES.—An amount redistributed
to a State under this paragraph with respect to fiscal
year 1998 or 1999—
‘‘(i) shall not be included in the determination of
the State’s allotment for any fiscal year under this
section;
‘‘(ii) notwithstanding subsection (e), shall remain
available for expenditure by the State through the
end of fiscal year 2002; and
‘‘(iii) shall be counted as being expended with
respect to a fiscal year allotment in accordance with
applicable regulations of the Secretary.
‘‘(2) EXTENSION OF AVAILABILITY OF PORTION OF UNEXPENDED FISCAL YEARS 1998 AND 1999 ALLOTMENTS.—
‘‘(A) IN GENERAL.—Notwithstanding subsection (e):
‘‘(i) FISCAL YEAR 1998 ALLOTMENT.—Of the amounts
allotted to a State pursuant to this section for fiscal
year 1998 that were not expended by the State by
the end of fiscal year 2000, the amount specified in
subparagraph (B) for fiscal year 1998 for such State
shall remain available for expenditure by the State
through the end of fiscal year 2002.
‘‘(ii) FISCAL YEAR 1999 ALLOTMENT.—Of the
amounts allotted to a State pursuant to this subsection
for fiscal year 1999 that were not expended by the
State by the end of fiscal year 2001, the amount specified in subparagraph (B) for fiscal year 1999 for such
State shall remain available for expenditure by the
State through the end of fiscal year 2002.
‘‘(B) AMOUNT REMAINING AVAILABLE FOR EXPENDITURE.—The amount specified in this subparagraph for a
State for a fiscal year is equal to—
‘‘(i) the amount by which (I) the total amount
available for redistribution under subsection (f ) from
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114 STAT. 2763A–580
PUBLIC LAW 106–554—APPENDIX F
the allotments for that fiscal year, exceeds (II) the
total amounts redistributed under paragraph (1) for
that fiscal year; multiplied by
‘‘(ii) the ratio of the amount of such State’s unexpended allotment for that fiscal year to the total
amount described in clause (i)(I) for that fiscal year.
‘‘(C) USE OF UP TO 10 PERCENT OF RETAINED 1998 ALLOTMENTS FOR OUTREACH ACTIVITIES.—Notwithstanding section 2105(c)(2)(A), with respect to any State described in
subparagraph (A)(i), the State may use up to 10 percent
of the amount specified in subparagraph (B) for fiscal year
1998 for expenditures for outreach activities approved by
the Secretary.
‘‘(3) DETERMINATION OF AMOUNTS.—For purposes of calculating the amounts described in paragraphs (1) and (2) relating to the allotment for fiscal year 1998 or fiscal year 1999,
the Secretary shall use the amounts reported by the States
not later than December 15, 2000, or November 30, 2001,
respectively, on HCFA Form 64 or HCFA Form 21, as approved
by the Secretary.’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall take effect as if included in the enactment of section 4901
of BBA (111 Stat. 552).
SEC. 802. AUTHORITY TO PAY MEDICAID EXPANSION SCHIP COSTS
FROM TITLE XXI APPROPRIATION.
(a) AUTHORITY TO PAY MEDICAID EXPANSION SCHIP COSTS
FROM TITLE XXI APPROPRIATION.—Section 2105(a) (42 U.S.C.
1397ee(a)) is amended—
(1) by redesignating subparagraphs (A) through (D) of paragraph (2) as clauses (i) through (iv), respectively, and indenting
appropriately;
(2) by redesignating paragraph (1) as subparagraph (C),
and indenting appropriately;
(3) by redesignating paragraph (2) as subparagraph (D),
and indenting appropriately;
(4) by striking ‘‘(a) IN GENERAL.—’’ and the remainder
of the text that precedes subparagraph (C), as so redesignated,
and inserting the following:
‘‘(a) PAYMENTS.—
‘‘(1) IN GENERAL.—Subject to the succeeding provisions of
this section, the Secretary shall pay to each State with a
plan approved under this title, from its allotment under section
2104, an amount for each quarter equal to the enhanced FMAP
(or, in the case of expenditures described in subparagraph
(B), the Federal medical assistance percentage (as defined in
the first sentence of section 1905(b))) of expenditures in the
quarter—
‘‘(A) for child health assistance under the plan for
targeted low-income children in the form of providing medical assistance for which payment is made on the basis
of an enhanced FMAP under the fourth sentence of section
1905(b);
‘‘(B) for the provision of medical assistance on behalf
of a child during a presumptive eligibility period under
section 1920A;’’; and
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–581
(5) by adding after subparagraph (D), as so redesignated,
the following new paragraph:
‘‘(2) ORDER OF PAYMENTS.—Payments under paragraph (1)
from a State’s allotment shall be made in the following order:
‘‘(A) First, for expenditures for items described in paragraph (1)(A).
‘‘(B) Second, for expenditures for items described in
paragraph (1)(B).
‘‘(C) Third, for expenditures for items described in paragraph (1)(C).
‘‘(D) Fourth, for expenditures for items described in
paragraph (1)(D).’’.
(b) ELIMINATION OF REQUIREMENT TO REDUCE TITLE XXI
ALLOTMENT BY MEDICAID EXPANSION SCHIP COSTS.—Section 2104
(42 U.S.C. 1397dd) is amended by striking subsection (d).
(c) AUTHORITY TO TRANSFER TITLE XXI APPROPRIATIONS TO
TITLE XIX APPROPRIATION ACCOUNT AS REIMBURSEMENT FOR
MEDICAID EXPENDITURES FOR MEDICAID EXPANSION SCHIP SERVICES.—Notwithstanding any other provision of law, all amounts
appropriated under title XXI and allotted to a State pursuant
to subsection (b) or (c) of section 2104 of the Social Security Act
(42 U.S.C. 1397dd) for fiscal years 1998 through 2000 (including
any amounts that, but for this provision, would be considered to
have expired) and not expended in providing child health assistance
or related services for which payment may be made pursuant to
subparagraph (C) or (D) of section 2105(a)(1) of such Act (42 U.S.C.
1397ee(a)(1)) (as amended by subsection (a)), shall be available
to reimburse the Grants to States for Medicaid account in an
amount equal to the total payments made to such State under
section 1903(a) of such Act (42 U.S.C. 1396b(a)) for expenditures
in such years for medical assistance described in subparagraphs
(A) and (B) of section 2105(a)(1) of such Act (42 U.S.C. 1397ee(a)(1))
(as so amended).
(d) CONFORMING AMENDMENTS.—
(1) Section 1905(b) (42 U.S.C. 1396d(b)) is amended in
the fourth sentence by striking ‘‘the State’s allotment under
section 2104 (not taking into account reductions under section
2104(d)(2)) for the fiscal year reduced by the amount of any
payments made under section 2105 to the State from such
allotment for such fiscal year’’ and inserting ‘‘the State’s available allotment under section 2104’’.
(2) Section 1905(u)(1)(B) (42 U.S.C. 1396d(u)(1)(B)) is
amended by striking ‘‘and section 2104(d)’’.
(3) Section 2104 (42 U.S.C. 1397dd), as amended by subsection (b), is further amended—
(A) in subsection (b)(1), by striking ‘‘and subsection
(d)’’; and
(B) in subsection (c)(1), by striking ‘‘subject to subsection (d),’’.
(4) Section 2105(c) (42 U.S.C. 1397ee(c)) is amended—
(A) in paragraph (2)(A), by striking all that follows
‘‘Except as provided in this paragraph,’’ and inserting ‘‘the
amount of payment that may be made under subsection
(a) for a fiscal year for expenditures for items described
in paragraph (1)(D) of such subsection shall not exceed
10 percent of the total amount of expenditures for which
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114 STAT. 2763A–582
PUBLIC LAW 106–554—APPENDIX F
payment is made under subparagraphs (A), (C), and (D)
of paragraph (1) of such subsection.’’;
(B) in paragraph (2)(B), by striking ‘‘described in subsection (a)(2)’’ and inserting ‘‘described in subsection
(a)(1)(D)’’; and
(C) in paragraph (6)(B), by striking ‘‘Except as otherwise provided by law,’’ and inserting ‘‘Except as provided
in subparagraph (A) or (B) of subsection (a)(1) or any
other provision of law,’’.
(5) Section 2110(a) (42 U.S.C. 1397jj(a)) is amended by
striking ‘‘section 2105(a)(2)(A)’’ and inserting ‘‘section
2105(a)(1)(D)(i)’’.
(e) TECHNICAL AMENDMENT.—Section 2105(d)(2)(B)(ii) (42
U.S.C. 1397ee(d)(2)(B)(ii)) is amended by striking ‘‘enhanced FMAP
under section 1905(u)’’ and inserting ‘‘enhanced FMAP under the
fourth sentence of section 1905(b)’’.
(f ) EFFECTIVE DATE.—The amendments made by this section
shall be effective as if included in the enactment of section 4901
of the BBA (111 Stat. 552).
SEC. 803. APPLICATION OF MEDICAID CHILD PRESUMPTIVE ELIGIBILITY PROVISIONS.
Section 2107(e)(1) (42 U.S.C. 1397gg(e)(1)) is amended by adding at the end the following new subparagraph:
‘‘(D) Section 1920A (relating to presumptive eligibility
for children).’’.
TITLE IX—OTHER PROVISIONS
Subtitle A—PACE Program
SEC. 901. EXTENSION OF TRANSITION FOR CURRENT WAIVERS.
Section 4803(d)(2) of BBA is amended—
(1) in subparagraph (A), by striking ‘‘24 months’’ and inserting ‘‘36 months’’;
(2) in subparagraph (A), by striking ‘‘the initial effective
date of regulations described in subsection (a)’’ and inserting
‘‘July 1, 2000’’; and
(3) in subparagraph (B), by striking ‘‘3 years’’ and inserting
‘‘4 years’’.
SEC. 902. CONTINUING OF CERTAIN OPERATING ARRANGEMENTS PERMITTED.
(a) IN GENERAL.—Section 1894(f )(2) (42 U.S.C. 1395eee(f )(2))
is amended by adding at the end the following new subparagraph:
‘‘(C) CONTINUATION OF MODIFICATIONS OR WAIVERS OF
OPERATIONAL REQUIREMENTS UNDER DEMONSTRATION STATUS.—If a PACE program operating under demonstration
authority has contractual or other operating arrangements
which are not otherwise recognized in regulation and which
were in effect on July 1, 2000, the Secretary (in close
consultation with, and with the concurrence of, the State
administering agency) shall permit any such program to
continue such arrangements so long as such arrangements
are found by the Secretary and the State to be reasonably
consistent with the objectives of the PACE program.’’.
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–583
(b) CONFORMING AMENDMENT.—Section 1934(f )(2) (42 U.S.C.
1396u–4(f )(2)) is amended by adding at the end the following new
subparagraph:
‘‘(C) CONTINUATION OF MODIFICATIONS OR WAIVERS OF
OPERATIONAL REQUIREMENTS UNDER DEMONSTRATION STATUS.—If a PACE program operating under demonstration
authority has contractual or other operating arrangements
which are not otherwise recognized in regulation and which
were in effect on July 1 2000, the Secretary (in close
consultation with, and with the concurrence of, the State
administering agency) shall permit any such program to
continue such arrangements so long as such arrangements
are found by the Secretary and the State to be reasonably
consistent with the objectives of the PACE program.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall be effective as included in the enactment of BBA.
SEC. 903. FLEXIBILITY IN EXERCISING WAIVER AUTHORITY.
In applying sections 1894(f )(2)(B) and 1934(f )(2)(B) of the Social
Security Act (42 U.S.C. 1395eee(f )(2)(B), 1396u–4(f )(2)(B)), the Secretary of Health and Human Services—
(1) shall approve or deny a request for a modification
or a waiver of provisions of the PACE protocol not later than
90 days after the date the Secretary receives the request;
and
(2) may exercise authority to modify or waive such provisions in a manner that responds promptly to the needs of
PACE programs relating to areas of employment and the use
of community-based primary care physicians.
Subtitle B—Outreach to Eligible LowIncome Medicare Beneficiaries
SEC. 911. OUTREACH ON AVAILABILITY OF MEDICARE COST-SHARING
ASSISTANCE TO ELIGIBLE LOW-INCOME MEDICARE
BENEFICIARIES.
(a) OUTREACH.—
(1) IN GENERAL.—Title XI (42 U.S.C. 1301 et seq.) is amended by inserting after section 1143 the following new section:
‘‘OUTREACH
EFFORTS TO INCREASE AWARENESS OF THE AVAILABILITY
OF MEDICARE COST-SHARING
‘‘SEC. 1144. (a) OUTREACH.—
‘‘(1) IN GENERAL.—The Commissioner of Social Security
(in this section referred to as the ‘Commissioner’) shall conduct
outreach efforts to—
‘‘(A) identify individuals entitled to benefits under the
medicare program under title XVIII who may be eligible
for medical assistance for payment of the cost of medicare
cost-sharing under the medicaid program pursuant to sections 1902(a)(10)(E) and 1933; and
‘‘(B) notify such individuals of the availability of such
medical assistance under such sections.
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114 STAT. 2763A–584
PUBLIC LAW 106–554—APPENDIX F
‘‘(2) CONTENT OF NOTICE.—Any notice furnished under
paragraph (1) shall state that eligibility for medicare costsharing assistance under such sections is conditioned upon—
‘‘(A) the individual providing to the State information
about income and resources (in the case of an individual
residing in a State that imposes an assets test for such
eligibility); and
‘‘(B) meeting the applicable eligibility criteria.
‘‘(b) COORDINATION WITH STATES.—
‘‘(1) IN GENERAL.—In conducting the outreach efforts under
this section, the Commissioner shall—
‘‘(A) furnish the agency of each State responsible for
the administration of the medicaid program and any other
appropriate State agency with information consisting of
the name and address of individuals residing in the State
that the Commissioner determines may be eligible for medical assistance for payment of the cost of medicare costsharing under the medicaid program pursuant to sections
1902(a)(10)(E) and 1933; and
‘‘(B) update any such information not less frequently
than once per year.
‘‘(2) INFORMATION IN PERIODIC UPDATES.—The periodic
updates described in paragraph (1)(B) shall include information
on individuals who are or may be eligible for the medical
assistance described in paragraph (1)(A) because such individuals have experienced reductions in benefits under title II.’’.
(2) AMENDMENT TO TITLE XIX.—Section 1905(p) (42 U.S.C.
1396d(p)), as amended by section 710(a), is amended by adding
at the end the following new paragraph:
‘‘(6) For provisions relating to outreach efforts to increase
awareness of the availability of medicare cost-sharing, see section
1144.’’.
(b) GAO REPORT.—The Comptroller General of the United
States shall conduct a study of the impact of section 1144 of the
Social Security Act (as added by subsection (a)(1)) on the enrollment
of individuals for medicare cost-sharing under the medicaid program. Not later than 18 months after the date that the Commissioner of Social Security first conducts outreach under section 1144
of such Act, the Comptroller General shall submit to Congress
a report on such study. The report shall include such recommendations for legislative changes as the Comptroller General deems
appropriate.
(c) EFFECTIVE DATE.—The amendments made by subsection
(a) shall take effect one year after the date of the enactment
of this Act.
Subtitle C—Maternal and Child Health
Block Grant
SEC. 921. INCREASE IN AUTHORIZATION OF APPROPRIATIONS FOR
THE MATERNAL AND CHILD HEALTH SERVICES BLOCK
GRANT.
(a) IN GENERAL.—Section 501(a) (42 U.S.C. 701(a)) is amended
in the matter preceding paragraph (1) by striking ‘‘$705,000,000
for fiscal year 1994’’ and inserting ‘‘$850,000,000 for fiscal year
2001’’.
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PUBLIC LAW 106–554—APPENDIX F
114 STAT. 2763A–585
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
takes effect on October 1, 2000.
Subtitle D—Diabetes
SEC. 931. INCREASE IN APPROPRIATIONS FOR SPECIAL DIABETES PROGRAMS FOR TYPE I DIABETES AND INDIANS.
(a) SPECIAL DIABETES PROGRAMS FOR TYPE I DIABETES.—Section 330B(b) of the Public Health Service Act (42 U.S.C. 254c–
2(b)) is amended—
(1) by striking ‘‘Notwithstanding ’’ and inserting the following:
‘‘(1) TRANSFERRED FUNDS.—Notwithstanding ’’; and
(2) by adding at the end the following:
‘‘(2) APPROPRIATIONS.—For the purpose of making grants
under this section, there is appropriated, out of any funds
in the Treasury not otherwise appropriated—
‘‘(A) $70,000,000 for each of fiscal years 2001 and 2002
(which shall be combined with amounts transferred under
paragraph (1) for each such fiscal years); and
‘‘(B) $100,000,000 for fiscal year 2003.’’.
(b) SPECIAL DIABETES PROGRAMS FOR INDIANS.—Section 330C(c)
of such Act (42 U.S.C. 254c–3(c)) is amended—
(1) by striking ‘‘Notwithstanding ’’ and inserting the following:
‘‘(1) TRANSFERRED FUNDS.—Notwithstanding ’’; and
(2) by adding at the end the following:
‘‘(2) APPROPRIATIONS.—For the purpose of making grants
under this section, there is appropriated, out of any money
in the Treasury not otherwise appropriated—
‘‘(A) $70,000,000 for each of fiscal years 2001 and 2002
(which shall be combined with amounts transferred under
paragraph (1) for each such fiscal years); and
‘‘(B) $100,000,000 for fiscal year 2003.’’.
(c) EXTENSION OF FINAL REPORT ON GRANT PROGRAMS.—Section
4923(b)(2) of BBA is amended by striking ‘‘2002’’ and inserting
‘‘2003’’.
SEC. 932. APPROPRIATIONS FOR RICKY RAY HEMOPHILIA RELIEF
FUND.
Section 101(e) of the Ricky Ray Hemophilia Relief Fund Act
of 1998 (42 U.S.C. 300c–22 note) is amended by adding at the
end the following: ‘‘There is appropriated to the Fund $475,000,000
for fiscal year 2001, to remain available until expended.’’.
Subtitle E—Information on Nurse Staffing
SEC. 941. POSTING OF INFORMATION ON NURSING FACILITY STAFFING.
(a) MEDICARE.—Section 1819(b) (42 U.S.C. 1395i–3(b)) is
amended by adding at the end the following new paragraph:
‘‘(8) INFORMATION ON NURSE STAFFING.—
‘‘(A) IN GENERAL.—A skilled nursing facility shall post
daily for each shift the current number of licensed and
unlicensed nursing staff directly responsible for resident
care in the facility. The information shall be displayed
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114 STAT. 2763A–586
PUBLIC LAW 106–554—APPENDIX F
in a uniform manner (as specified by the Secretary) and
in a clearly visible place.
‘‘(B) PUBLICATION OF DATA.—A skilled nursing facility
shall, upon request, make available to the public the nursing staff data described in subparagraph (A).’’.
(b) MEDICAID.—Section 1919(b) (42 U.S.C. 1395r(b)) is amended
by adding at the end the following new paragraph:
‘‘(8) INFORMATION ON NURSE STAFFING.—
‘‘(A) IN GENERAL.—A nursing facility shall post daily
for each shift the current number of licensed and unlicensed
nursing staff directly responsible for resident care in the
facility. The information shall be displayed in a uniform
manner (as specified by the Secretary) and in a clearly
visible place.
‘‘(B) PUBLICATION OF DATA.—A nursing facility shall,
upon request, make available to the public the nursing
staff data described in subparagraph (A).’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect on January 1, 2003.
Subtitle F—Adjustment of Multiemployer
Plan Benefits Guaranteed
SEC. 951. MULTIEMPLOYER PLAN BENEFITS GUARANTEED.
(a) IN GENERAL.—Section 4022A(c) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1322a(c)) is amended—
(1) by striking ‘‘$5’’ each place it appears in paragraph
(1) and inserting ‘‘$11’’;
(2) by striking ‘‘$15’’ in paragraph (1)(A)(i) and inserting
‘‘$33’’; and
(3) by striking paragraphs (2), (5), and (6) and by
redesignating paragraphs (3) and (4) as paragraphs (2) and
(3), respectively.
(b) EFFECTIVE DATE.—The amendments made by this section
shall apply to any multiemployer plan that has not received financial assistance (within the meaning of section 4261 of the Employee
Retirement Income Security Act of 1974) within the 1-year period
ending on the date of the enactment of this Act.
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–587
APPENDIX G—H.R. 5662
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Community
Renewal Tax Relief Act of 2000’’.
(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed
in terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a section
or other provision of the Internal Revenue Code of 1986.
(c) TABLE OF CONTENTS.—The table of contents for this Act
is as follows:
Sec. 1. Short title; amendment of 1986 Code.
TITLE I—COMMUNITY RENEWAL AND NEW MARKETS
Subtitle A—Tax Incentives for Renewal Communities
Sec. 101. Designation of and tax incentives for renewal communities.
Sec. 102. Work opportunity credit for hiring youth residing in renewal communities.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Subtitle B—Extension and Expansion of Empowerment Zone Incentives
111. Authority to designate nine additional empowerment zones.
112. Extension of empowerment zone treatment through 2009.
113. Twenty percent employment credit for all empowerment zones.
114. Increased expensing under section 179.
115. Higher limits on tax-exempt empowerment zone facility bonds.
116. Nonrecognition of gain on rollover of empowerment zone investments.
117. Increased exclusion of gain on sale of empowerment zone stock.
Subtitle C—New Markets Tax Credit
Sec. 121. New markets tax credit.
Subtitle D—Improvements in Low-Income Housing Credit
Modification of State ceiling on low-income housing credit.
Modification of criteria for allocating housing credits among projects.
Additional responsibilities of housing credit agencies.
Modifications to rules relating to basis of building which is eligible for
credit.
Sec. 135. Other modifications.
Sec. 136. Carryforward rules.
Sec. 137. Effective date.
Sec.
Sec.
Sec.
Sec.
131.
132.
133.
134.
Subtitle E—Other Community Renewal and New Markets Assistance
PART I—PROVISIONS
RELATING TO HOUSING AND SUBSTANCE ABUSE PREVENTION AND
TREATMENT
Sec. 141. Transfer of unoccupied and substandard HUD-held housing to local
governments and community development corporations.
Sec. 142. Transfer of HUD assets in revitalization areas.
Sec. 143. Risk-sharing demonstration.
Sec. 144. Prevention and treatment of substance abuse; services provided through
religious organizations.
PART II—ADVISORY COUNCIL
Sec. 151. Short title.
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114 STAT. 2763A–588
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
152.
153.
154.
155.
156.
157.
158.
159.
160.
PUBLIC LAW 106–554—APPENDIX G
Establishment.
Duties of Advisory Council.
Membership.
Powers of Advisory Council.
Reports.
Termination.
Applicability of Federal Advisory Committee Act.
Resources.
Effective date.
Subtitle F—Other Provisions
Sec. 161. Acceleration of phase-in of increase in volume cap on private activity
bonds.
Sec. 162. Modifications to expensing of environmental remediation costs.
Sec. 163. Extension of DC homebuyer tax credit.
Sec. 164. Extension of DC Zone through 2003.
Sec. 165. Extension of enhanced deduction for corporate donations of computer
technology.
Sec. 166. Treatment of Indian tribal governments under Federal Unemployment
Tax Act.
TITLE II—TWO-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS
ACCOUNTS
Sec. 201. Two-year extension of availability of medical savings accounts.
Sec. 202. Medical savings accounts renamed as Archer MSAs.
TITLE III—ADMINISTRATIVE AND TECHNICAL PROVISIONS
Subtitle A—Administrative Provisions
Sec. 301. Exemption of certain reporting requirements.
Sec. 302. Extension of deadlines for IRS compliance with certain notice requirements.
Sec. 303. Extension of authority for undercover operations.
Sec. 304. Confidentiality of certain documents relating to closing and similar agreements and to agreements with foreign governments.
Sec. 305. Increase in threshold for Joint Committee reports on refunds and credits.
Sec. 306. Treatment of missing children with respect to certain tax benefits.
Sec. 307. Amendments to statutes referencing yield on 52-week Treasury bills.
Sec. 308. Adjustments for Consumer Price Index error.
Sec. 309. Prevention of duplication of loss through assumption of liabilities giving
rise to a deduction.
Sec. 310. Disclosure of certain information to Congressional Budget Office.
Subtitle B—Technical Corrections
Sec. 311. Amendments related to Ticket to Work and Work Incentives Improvement Act of 1999.
Sec. 312. Amendments related to Tax and Trade Relief Extension Act of 1998.
Sec. 313. Amendments related to Internal Revenue Service Restructuring and
Reform Act of 1998.
Sec. 314. Amendments related to Taxpayer Relief Act of 1997.
Sec. 315. Amendments related to Balanced Budget Act of 1997.
Sec. 316. Amendments related to Small Business Job Protection Act of 1996.
Sec. 317. Amendment related to Revenue Reconciliation Act of 1990.
Sec. 318. Other technical corrections.
Sec. 319. Clerical changes.
TITLE IV—TAX TREATMENT OF SECURITIES FUTURES CONTRACTS
Sec. 401. Tax treatment of securities futures contracts.
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–589
TITLE I—COMMUNITY RENEWAL AND
NEW MARKETS
Subtitle A—Tax Incentives for Renewal
Communities
SEC. 101. DESIGNATION OF AND TAX INCENTIVES FOR RENEWAL
COMMUNITIES.
(a) IN GENERAL.—Chapter 1 is amended by adding at the
end the following new subchapter:
‘‘Subchapter X—Renewal Communities
‘‘Part I. Designation.
‘‘Part II. Renewal community capital gain; renewal community business.
‘‘Part III. Additional incentives.
‘‘PART I—DESIGNATION
‘‘Sec. 1400E. Designation of renewal communities.
‘‘SEC. 1400E. DESIGNATION OF RENEWAL COMMUNITIES.
‘‘(a) DESIGNATION.—
‘‘(1) DEFINITIONS.—For purposes of this title, the term
‘renewal community’ means any area—
‘‘(A) which is nominated by 1 or more local governments
and the State or States in which it is located for designation
as a renewal community (hereafter in this section referred
to as a ‘nominated area’), and
‘‘(B) which the Secretary of Housing and Urban
Development designates as a renewal community, after
consultation with—
‘‘(i) the Secretaries of Agriculture, Commerce,
Labor, and the Treasury; the Director of the Office
of Management and Budget, and the Administrator
of the Small Business Administration, and
‘‘(ii) in the case of an area on an Indian reservation,
the Secretary of the Interior.
‘‘(2) NUMBER OF DESIGNATIONS.—
‘‘(A) IN GENERAL.—Not more than 40 nominated areas
may be designated as renewal communities.
‘‘(B) MINIMUM DESIGNATION IN RURAL AREAS.—Of the
areas designated under paragraph (1), at least 12 must
be areas—
‘‘(i) which are within a local government jurisdiction or jurisdictions with a population of less than
50,000,
‘‘(ii) which are outside of a metropolitan statistical
area (within the meaning of section 143(k)(2)(B)), or
‘‘(iii) which are determined by the Secretary of
Housing and Urban Development, after consultation
with the Secretary of Commerce, to be rural areas.
‘‘(3) AREAS DESIGNATED BASED ON DEGREE OF POVERTY,
ETC.—
‘‘(A) IN GENERAL.—Except as otherwise provided in
this section, the nominated areas designated as renewal
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114 STAT. 2763A–590
PUBLIC LAW 106–554—APPENDIX G
communities under this subsection shall be those nominated areas with the highest average ranking with respect
to the criteria described in subparagraphs (B), (C), and
(D) of subsection (c)(3). For purposes of the preceding sentence, an area shall be ranked within each such criterion
on the basis of the amount by which the area exceeds
such criterion, with the area which exceeds such criterion
by the greatest amount given the highest ranking.
‘‘(B) EXCEPTION WHERE INADEQUATE COURSE OF ACTION,
ETC.—An area shall not be designated under subparagraph
(A) if the Secretary of Housing and Urban Development
determines that the course of action described in subsection
(d)(2) with respect to such area is inadequate.
‘‘(C) PREFERENCE FOR ENTERPRISE COMMUNITIES AND
EMPOWERMENT ZONES.—With respect to the first 20 designations made under this section, a preference shall be
provided to those nominated areas which are enterprise
communities or empowerment zones (and are otherwise
eligible for designation under this section).
‘‘(4) LIMITATION ON DESIGNATIONS.—
‘‘(A) PUBLICATION OF REGULATIONS.—The Secretary of
Housing and Urban Development shall prescribe by regulation no later than 4 months after the date of the enactment
of this section, after consultation with the officials described
in paragraph (1)(B)—
‘‘(i) the procedures for nominating an area under
paragraph (1)(A),
‘‘(ii) the parameters relating to the size and population characteristics of a renewal community, and
‘‘(iii) the manner in which nominated areas will
be evaluated based on the criteria specified in subsection (d).
‘‘(B) TIME LIMITATIONS.—The Secretary of Housing and
Urban Development may designate nominated areas as
renewal communities only during the period beginning on
the first day of the first month following the month in
which the regulations described in subparagraph (A) are
prescribed and ending on December 31, 2001.
‘‘(C) PROCEDURAL RULES.—The Secretary of Housing
and Urban Development shall not make any designation
of a nominated area as a renewal community under paragraph (2) unless—
‘‘(i) the local governments and the States in which
the nominated area is located have the authority—
‘‘(I) to nominate such area for designation as
a renewal community,
‘‘(II) to make the State and local commitments
described in subsection (d), and
‘‘(III) to provide assurances satisfactory to the
Secretary of Housing and Urban Development that
such commitments will be fulfilled,
‘‘(ii) a nomination regarding such area is submitted
in such a manner and in such form, and contains
such information, as the Secretary of Housing and
Urban Development shall by regulation prescribe, and
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–591
‘‘(iii) the Secretary of Housing and Urban Development determines that any information furnished is
reasonably accurate.
‘‘(5) NOMINATION PROCESS FOR INDIAN RESERVATIONS.—For
purposes of this subchapter, in the case of a nominated area
on an Indian reservation, the reservation governing body (as
determined by the Secretary of the Interior) shall be treated
as being both the State and local governments with respect
to such area.
‘‘(b) PERIOD FOR WHICH DESIGNATION IS IN EFFECT.—
‘‘(1) IN GENERAL.—Any designation of an area as a renewal
community shall remain in effect during the period beginning
on January 1, 2002, and ending on the earliest of—
‘‘(A) December 31, 2009,
‘‘(B) the termination date designated by the State and
local governments in their nomination, or
‘‘(C) the date the Secretary of Housing and Urban
Development revokes such designation.
‘‘(2) REVOCATION OF DESIGNATION.—The Secretary of Housing and Urban Development may revoke the designation under
this section of an area if such Secretary determines that the
local government or the State in which the area is located—
‘‘(A) has modified the boundaries of the area, or
‘‘(B) is not complying substantially with, or fails to
make progress in achieving, the State or local commitments, respectively, described in subsection (d).
‘‘(3) EARLIER TERMINATION OF CERTAIN BENEFITS IF EARLIER
TERMINATION OF DESIGNATION.—If the designation of an area
as a renewal community terminates before December 31, 2009,
the day after the date of such termination shall be substituted
for ‘January 1, 2010’ each place it appears in sections 1400F
and 1400J with respect to such area.
‘‘(c) AREA AND ELIGIBILITY REQUIREMENTS.—
‘‘(1) IN GENERAL.—The Secretary of Housing and Urban
Development may designate a nominated area as a renewal
community under subsection (a) only if the area meets the
requirements of paragraphs (2) and (3) of this subsection.
‘‘(2) AREA REQUIREMENTS.—A nominated area meets the
requirements of this paragraph if—
‘‘(A) the area is within the jurisdiction of one or more
local governments,
‘‘(B) the boundary of the area is continuous, and
‘‘(C) the area—
‘‘(i) has a population of not more than 200,000
and at least—
‘‘(I) 4,000 if any portion of such area (other
than a rural area described in subsection
(a)(2)(B)(i)) is located within a metropolitan statistical area (within the meaning of section
143(k)(2)(B)) which has a population of 50,000 or
greater, or
‘‘(II) 1,000 in any other case, or
‘‘(ii) is entirely within an Indian reservation (as
determined by the Secretary of the Interior).
‘‘(3) ELIGIBILITY REQUIREMENTS.—A nominated area meets
the requirements of this paragraph if the State and the local
governments in which it is located certify in writing (and the
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114 STAT. 2763A–592
PUBLIC LAW 106–554—APPENDIX G
Secretary of Housing and Urban Development, after such
review of supporting data as he deems appropriate, accepts
such certification) that—
‘‘(A) the area is one of pervasive poverty, unemployment, and general distress,
‘‘(B) the unemployment rate in the area, as determined
by the most recent available data, was at least 11⁄2 times
the national unemployment rate for the period to which
such data relate,
‘‘(C) the poverty rate for each population census tract
within the nominated area is at least 20 percent, and
‘‘(D) in the case of an urban area, at least 70 percent
of the households living in the area have incomes below
80 percent of the median income of households within
the jurisdiction of the local government (determined in
the same manner as under section 119(b)(2) of the Housing
and Community Development Act of 1974).
‘‘(4) CONSIDERATION OF OTHER FACTORS.—The Secretary
of Housing and Urban Development, in selecting any nominated
area for designation as a renewal community under this
section—
‘‘(A) shall take into account—
‘‘(i) the extent to which such area has a high
incidence of crime, or
‘‘(ii) if such area has census tracts identified in
the May 12, 1998, report of the General Accounting
Office regarding the identification of economically distressed areas, and
‘‘(B) with respect to 1 of the areas to be designated
under subsection (a)(2)(B), may, in lieu of any criteria
described in paragraph (3), take into account the existence
of outmigration from the area.
‘‘(d) REQUIRED STATE AND LOCAL COMMITMENTS.—
‘‘(1) IN GENERAL.—The Secretary of Housing and Urban
Development may designate any nominated area as a renewal
community under subsection (a) only if—
‘‘(A) the local government and the State in which the
area is located agree in writing that, during any period
during which the area is a renewal community, such
governments will follow a specified course of action which
meets the requirements of paragraph (2) and is designed
to reduce the various burdens borne by employers or
employees in such area, and
‘‘(B) the economic growth promotion requirements of
paragraph (3) are met.
‘‘(2) COURSE OF ACTION.—
‘‘(A) IN GENERAL.—A course of action meets the requirements of this paragraph if such course of action is a written
document, signed by a State (or local government) and
neighborhood organizations, which evidences a partnership
between such State or government and community-based
organizations and which commits each signatory to specific
and measurable goals, actions, and timetables. Such course
of action shall include at least 4 of the following:
‘‘(i) A reduction of tax rates or fees applying within
the renewal community.
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–593
‘‘(ii) An increase in the level of efficiency of local
services within the renewal community.
‘‘(iii) Crime reduction strategies, such as crime
prevention (including the provision of crime prevention
services by nongovernmental entities).
‘‘(iv) Actions to reduce, remove, simplify, or streamline governmental requirements applying within the
renewal community.
‘‘(v) Involvement in the program by private entities, organizations, neighborhood organizations, and
community groups, particularly those in the renewal
community, including a commitment from such private
entities to provide jobs and job training for, and technical, financial, or other assistance to, employers,
employees, and residents from the renewal community.
‘‘(vi) The gift (or sale at below fair market value)
of surplus real property (such as land, homes, and
commercial or industrial structures) in the renewal
community to neighborhood organizations, community
development corporations, or private companies.
‘‘(B) RECOGNITION OF PAST EFFORTS.—For purposes of
this section, in evaluating the course of action agreed to
by any State or local government, the Secretary of Housing
and Urban Development shall take into account the past
efforts of such State or local government in reducing the
various burdens borne by employers and employees in the
area involved.
‘‘(3) ECONOMIC GROWTH PROMOTION REQUIREMENTS.—The
economic growth promotion requirements of this paragraph
are met with respect to a nominated area if the local government and the State in which such area is located certify in
writing that such government and State (respectively) have
repealed or reduced, will not enforce, or will reduce within
the nominated area at least 4 of the following:
‘‘(A) Licensing requirements for occupations that do
not ordinarily require a professional degree.
‘‘(B) Zoning restrictions on home-based businesses
which do not create a public nuisance.
‘‘(C) Permit requirements for street vendors who do
not create a public nuisance.
‘‘(D) Zoning or other restrictions that impede the formation of schools or child care centers.
‘‘(E) Franchises or other restrictions on competition
for businesses providing public services, including taxicabs,
jitneys, cable television, or trash hauling.
This paragraph shall not apply to the extent that such regulation of businesses and occupations is necessary for and welltailored to the protection of health and safety.
‘‘(e) COORDINATION WITH TREATMENT OF EMPOWERMENT ZONES
AND ENTERPRISE COMMUNITIES.—For purposes of this title, the designation under section 1391 of any area as an empowerment zone
or enterprise community shall cease to be in effect as of the date
that the designation of any portion of such area as a renewal
community takes effect.
‘‘(f ) DEFINITIONS AND SPECIAL RULES.—For purposes of this
subchapter—
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114 STAT. 2763A–594
PUBLIC LAW 106–554—APPENDIX G
‘‘(1) GOVERNMENTS.—If more than one government seeks
to nominate an area as a renewal community, any reference
to, or requirement of, this section shall apply to all such governments.
‘‘(2) LOCAL GOVERNMENT.—The term ‘local government’
means—
‘‘(A) any county, city, town, township, parish, village,
or other general purpose political subdivision of a State,
and
‘‘(B) any combination of political subdivisions described
in subparagraph (A) recognized by the Secretary of Housing
and Urban Development.
‘‘(3) APPLICATION OF RULES RELATING TO CENSUS TRACTS.—
The rules of section 1392(b)(4) shall apply.
‘‘(4) CENSUS DATA.—Population and poverty rate shall be
determined by using 1990 census data.
‘‘PART II—RENEWAL COMMUNITY CAPITAL
GAIN; RENEWAL COMMUNITY BUSINESS
‘‘Sec. 1400F. Renewal community capital gain.
‘‘Sec. 1400G. Renewal community business defined.
‘‘SEC. 1400F. RENEWAL COMMUNITY CAPITAL GAIN.
‘‘(a) GENERAL RULE.—Gross income does not include any qualified capital gain from the sale or exchange of a qualified community
asset held for more than 5 years.
‘‘(b) QUALIFIED COMMUNITY ASSET.—For purposes of this
section—
‘‘(1) IN GENERAL.—The term ‘qualified community asset’
means—
‘‘(A) any qualified community stock,
‘‘(B) any qualified community partnership interest, and
‘‘(C) any qualified community business property.
‘‘(2) QUALIFIED COMMUNITY STOCK.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), the term ‘qualified community stock’ means any stock
in a domestic corporation if—
‘‘(i) such stock is acquired by the taxpayer after
December 31, 2001, and before January 1, 2010, at
its original issue (directly or through an underwriter)
from the corporation solely in exchange for cash,
‘‘(ii) as of the time such stock was issued, such
corporation was a renewal community business (or,
in the case of a new corporation, such corporation
was being organized for purposes of being a renewal
community business), and
‘‘(iii) during substantially all of the taxpayer’s holding period for such stock, such corporation qualified
as a renewal community business.
‘‘(B) REDEMPTIONS.—A rule similar to the rule of section 1202(c)(3) shall apply for purposes of this paragraph.
‘‘(3) QUALIFIED COMMUNITY PARTNERSHIP INTEREST.—The
term ‘qualified community partnership interest’ means any capital or profits interest in a domestic partnership if—
‘‘(A) such interest is acquired by the taxpayer after
December 31, 2001, and before January 1, 2010, from the
partnership solely in exchange for cash,
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–595
‘‘(B) as of the time such interest was acquired, such
partnership was a renewal community business (or, in
the case of a new partnership, such partnership was being
organized for purposes of being a renewal community business), and
‘‘(C) during substantially all of the taxpayer’s holding
period for such interest, such partnership qualified as a
renewal community business.
A rule similar to the rule of paragraph (2)(B) shall apply
for purposes of this paragraph.
‘‘(4) QUALIFIED COMMUNITY BUSINESS PROPERTY.—
‘‘(A) IN GENERAL.—The term ‘qualified community business property’ means tangible property if—
‘‘(i) such property was acquired by the taxpayer
by purchase (as defined in section 179(d)(2)) after
December 31, 2001, and before January 1, 2010,
‘‘(ii) the original use of such property in the
renewal community commences with the taxpayer, and
‘‘(iii) during substantially all of the taxpayer’s holding period for such property, substantially all of the
use of such property was in a renewal community
business of the taxpayer.
‘‘(B) SPECIAL RULE FOR SUBSTANTIAL IMPROVEMENTS.—
The requirements of clauses (i) and (ii) of subparagraph
(A) shall be treated as satisfied with respect to—
‘‘(i) property which is substantially improved by
the taxpayer before January 1, 2010, and
‘‘(ii) any land on which such property is located.
The determination of whether a property is substantially
improved shall be made under clause (ii) of section
1400B(b)(4)(B), except that ‘December 31, 2001’ shall be
substituted for ‘December 31, 1997’ in such clause.
‘‘(c) QUALIFIED CAPITAL GAIN.—For purposes of this section—
‘‘(1) IN GENERAL.—Except as otherwise provided in this
subsection, the term ‘qualified capital gain’ means any gain
recognized on the sale or exchange of—
‘‘(A) a capital asset, or
‘‘(B) property used in the trade or business (as defined
in section 1231(b)).
‘‘(2) GAIN BEFORE 2002 OR AFTER 2014 NOT QUALIFIED.—
The term ‘qualified capital gain’ shall not include any gain
attributable to periods before January 1, 2002, or after December 31, 2014.
‘‘(3) CERTAIN RULES TO APPLY.—Rules similar to the rules
of paragraphs (3), (4), and (5) of section 1400B(e) shall apply
for purposes of this subsection.
‘‘(d) CERTAIN RULES TO APPLY.—For purposes of this section,
rules similar to the rules of paragraphs (5), (6), and (7) of subsection
(b), and subsections (f ) and (g), of section 1400B shall apply; except
that for such purposes section 1400B(g)(2) shall be applied by
substituting ‘January 1, 2002’ for ‘January 1, 1998’ and ‘December
31, 2014’ for ‘December 31, 2008’.
‘‘(e) REGULATIONS.—The Secretary shall prescribe such regulations as may be appropriate to carry out the purposes of this
section, including regulations to prevent the abuse of the purposes
of this section.
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114 STAT. 2763A–596
PUBLIC LAW 106–554—APPENDIX G
‘‘SEC. 1400G. RENEWAL COMMUNITY BUSINESS DEFINED.
‘‘For purposes of this subchapter, the term ‘renewal community
business’ means any entity or proprietorship which would be a
qualified business entity or qualified proprietorship under section
1397C if references to renewal communities were substituted for
references to empowerment zones in such section.
‘‘PART III—ADDITIONAL INCENTIVES
‘‘Sec. 1400H. Renewal community employment credit.
‘‘Sec. 1400I. Commercial revitalization deduction.
‘‘Sec. 1400J. Increase in expensing under section 179.
‘‘SEC. 1400H. RENEWAL COMMUNITY EMPLOYMENT CREDIT.
‘‘(a) IN GENERAL.—Subject to the modification in subsection
(b), a renewal community shall be treated as an empowerment
zone for purposes of section 1396 with respect to wages paid or
incurred after December 31, 2001.
‘‘(b) MODIFICATION.—In applying section 1396 with respect to
renewal communities—
‘‘(1) the applicable percentage shall be 15 percent, and
‘‘(2) subsection (c) thereof shall be applied by substituting
‘$10,000’ for ‘$15,000’ each place it appears.
‘‘SEC. 1400I. COMMERCIAL REVITALIZATION DEDUCTION.
‘‘(a) GENERAL RULE.—At the election of the taxpayer, either—
‘‘(1) one-half of any qualified revitalization expenditures
chargeable to capital account with respect to any qualified
revitalization building shall be allowable as a deduction for
the taxable year in which the building is placed in service,
or
‘‘(2) a deduction for all such expenditures shall be allowable
ratably over the 120-month period beginning with the month
in which the building is placed in service.
‘‘(b) QUALIFIED REVITALIZATION BUILDINGS AND EXPENDITURES.—For purposes of this section—
‘‘(1) QUALIFIED REVITALIZATION BUILDING.—The term ‘qualified revitalization building’ means any building (and its structural components) if—
‘‘(A) the building is placed in service by the taxpayer
in a renewal community and the original use of the building
begins with the taxpayer, or
‘‘(B) in the case of such building not described in
subparagraph (A), such building—
‘‘(i) is substantially rehabilitated (within the meaning of section 47(c)(1)(C)) by the taxpayer, and
‘‘(ii) is placed in service by the taxpayer after the
rehabilitation in a renewal community.
‘‘(2) QUALIFIED REVITALIZATION EXPENDITURE.—
‘‘(A) IN GENERAL.—The term ‘qualified revitalization
expenditure’ means any amount properly chargeable to capital account for property for which depreciation is allowable
under section 168 (without regard to this section) and
which is—
‘‘(i) nonresidential real property (as defined in section 168(e)), or
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–597
‘‘(ii) section 1250 property (as defined in section
1250(c)) which is functionally related and subordinate
to property described in clause (i).
‘‘(B) CERTAIN EXPENDITURES NOT INCLUDED.—
‘‘(i) ACQUISITION COST.—In the case of a building
described in paragraph (1)(B), the cost of acquiring
the building or interest therein shall be treated as
a qualified revitalization expenditure only to the extent
that such cost does not exceed 30 percent of the aggregate qualified revitalization expenditures (determined
without regard to such cost) with respect to such building.
‘‘(ii) CREDITS.—The term ‘qualified revitalization
expenditure’ does not include any expenditure which
the taxpayer may take into account in computing any
credit allowable under this title unless the taxpayer
elects to take the expenditure into account only for
purposes of this section.
‘‘(c) DOLLAR LIMITATION.—The aggregate amount which may
be treated as qualified revitalization expenditures with respect to
any qualified revitalization building shall not exceed the lesser
of—
‘‘(1) $10,000,000, or
‘‘(2) the commercial revitalization expenditure amount allocated to such building under this section by the commercial
revitalization agency for the State in which the building is
located.
‘‘(d) COMMERCIAL REVITALIZATION EXPENDITURE AMOUNT.—
‘‘(1) IN GENERAL.—The aggregate commercial revitalization
expenditure amount which a commercial revitalization agency
may allocate for any calendar year is the amount of the State
commercial revitalization expenditure ceiling determined under
this paragraph for such calendar year for such agency.
‘‘(2) STATE COMMERCIAL REVITALIZATION EXPENDITURE CEILING.—The State commercial revitalization expenditure ceiling
applicable to any State—
‘‘(A) for each calendar year after 2001 and before 2010
is $12,000,000 for each renewal community in the State,
and
‘‘(B) for each calendar year thereafter is zero.
‘‘(3) COMMERCIAL REVITALIZATION AGENCY.—For purposes
of this section, the term ‘commercial revitalization agency’
means any agency authorized by a State to carry out this
section.
‘‘(4) TIME AND MANNER OF ALLOCATIONS.—Allocations under
this section shall be made at the same time and in the same
manner as under paragraphs (1) and (7) of section 42(h).
‘‘(e) RESPONSIBILITIES OF COMMERCIAL REVITALIZATION AGENCIES.—
‘‘(1) PLANS FOR ALLOCATION.—Notwithstanding any other
provision of this section, the commercial revitalization expenditure amount with respect to any building shall be zero unless—
‘‘(A) such amount was allocated pursuant to a qualified
allocation plan of the commercial revitalization agency
which is approved (in accordance with rules similar to
the rules of section 147(f )(2) (other than subparagraph
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114 STAT. 2763A–598
PUBLIC LAW 106–554—APPENDIX G
(B)(ii) thereof )) by the governmental unit of which such
agency is a part, and
‘‘(B) such agency notifies the chief executive officer
(or its equivalent) of the local jurisdiction within which
the building is located of such allocation and provides such
individual a reasonable opportunity to comment on the
allocation.
‘‘(2) QUALIFIED ALLOCATION PLAN.—For purposes of this
subsection, the term ‘qualified allocation plan’ means any
plan—
‘‘(A) which sets forth selection criteria to be used to
determine priorities of the commercial revitalization agency
which are appropriate to local conditions,
‘‘(B) which considers—
‘‘(i) the degree to which a project contributes to
the implementation of a strategic plan that is devised
for a renewal community through a citizen participation process,
‘‘(ii) the amount of any increase in permanent,
full-time employment by reason of any project, and
‘‘(iii) the active involvement of residents and nonprofit groups within the renewal community, and
‘‘(C) which provides a procedure that the agency (or
its agent) will follow in monitoring compliance with this
section.
‘‘(f ) SPECIAL RULES.—
‘‘(1) DEDUCTION IN LIEU OF DEPRECIATION.—The deduction
provided by this section for qualified revitalization expenditures
shall—
‘‘(A) with respect to the deduction determined under
subsection (a)(1), be in lieu of any depreciation deduction
otherwise allowable on account of one-half of such expenditures, and
‘‘(B) with respect to the deduction determined under
subsection (a)(2), be in lieu of any depreciation deduction
otherwise allowable on account of all of such expenditures.
‘‘(2) BASIS ADJUSTMENT, ETC.—For purposes of sections 1016
and 1250, the deduction under this section shall be treated
in the same manner as a depreciation deduction. For purposes
of section 1250(b)(5), the straight line method of adjustment
shall be determined without regard to this section.
‘‘(3) SUBSTANTIAL REHABILITATIONS TREATED AS SEPARATE
BUILDINGS.—A substantial rehabilitation (within the meaning
of section 47(c)(1)(C)) of a building shall be treated as a separate
building for purposes of subsection (a).
‘‘(4) CLARIFICATION OF ALLOWANCE OF DEDUCTION UNDER
MINIMUM TAX.—Notwithstanding section 56(a)(1), the deduction
under this section shall be allowed in determining alternative
minimum taxable income under section 55.
‘‘(g) TERMINATION.—This section shall not apply to any building
placed in service after December 31, 2009.
‘‘SEC. 1400J. INCREASE IN EXPENSING UNDER SECTION 179.
‘‘(a) IN GENERAL.—For purposes of section 1397A—
‘‘(1) a renewal community shall be treated as an empowerment zone,
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–599
‘‘(2) a renewal community business shall be treated as
an enterprise zone business, and
‘‘(3) qualified renewal property shall be treated as qualified
zone property.
‘‘(b) QUALIFIED RENEWAL PROPERTY.—For purposes of this
section—
‘‘(1) IN GENERAL.—The term ‘qualified renewal property’
means any property to which section 168 applies (or would
apply but for section 179) if—
‘‘(A) such property was acquired by the taxpayer by
purchase (as defined in section 179(d)(2)) after December
31, 2001, and before January 1, 2010, and
‘‘(B) such property would be qualified zone property
(as defined in section 1397D) if references to renewal
communities were substituted for references to empowerment zones in section 1397D.
‘‘(2) CERTAIN RULES TO APPLY.—The rules of subsections
(a)(2) and (b) of section 1397D shall apply for purposes of
this section.’’.
(b) EXCEPTION FOR COMMERCIAL REVITALIZATION DEDUCTION
FROM PASSIVE LOSS RULES.—
(1) Paragraph (3) of section 469(i) is amended by
redesignating subparagraphs (C), (D), and (E) as subparagraphs
(D), (E), and (F), respectively, and by inserting after subparagraph (B) the following new subparagraph:
‘‘(C) EXCEPTION FOR COMMERCIAL REVITALIZATION
DEDUCTION.—Subparagraph (A) shall not apply to any portion of the passive activity loss for any taxable year which
is attributable to the commercial revitalization deduction
under section 1400I.’’.
(2) Subparagraph (E) of section 469(i)(3), as redesignated
by subparagraph (A), is amended to read as follows:
‘‘(E) ORDERING RULES TO REFLECT EXCEPTIONS AND
SEPARATE PHASE-OUTS.—If subparagraph (B), (C), or (D)
applies for a taxable year, paragraph (1) shall be applied—
‘‘(i) first to the portion of the passive activity loss
to which subparagraph (C) does not apply,
‘‘(ii) second to the portion of the passive activity
credit to which subparagraph (B) or (D) does not apply,
‘‘(iii) third to the portion of such credit to which
subparagraph (B) applies,
‘‘(iv) fourth to the portion of such loss to which
subparagraph (C) applies, and
‘‘(v) then to the portion of such credit to which
subparagraph (D) applies.’’.
(3)(A) Subparagraph (B) of section 469(i)(6) is amended
by striking ‘‘or’’ at the end of clause (i), by striking the period
at the end of clause (ii) and inserting ‘‘, or’’, and by adding
at the end the following new clause:
‘‘(iii) any deduction under section 1400I (relating
to commercial revitalization deduction).’’.
(B) The heading for such subparagraph (B) is amended
by striking ‘‘OR REHABILITATION CREDIT’’ and inserting ‘‘,
REHABILITATION
CREDIT,
OR
COMMERCIAL
REVITALIZATION
DEDUCTION’’.
(c) AUDIT AND REPORT.—Not later than January 31 of 2004,
2007, and 2010, the Comptroller General of the United States
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114 STAT. 2763A–600
PUBLIC LAW 106–554—APPENDIX G
shall, pursuant to an audit of the renewal community program
established under section 1400E of the Internal Revenue Code
of 1986 (as added by subsection (a)) and the empowerment zone
and enterprise community program under subchapter U of chapter
1 of such Code, report to Congress on such program and its effect
on poverty, unemployment, and economic growth within the designated renewal communities, empowerment zones, and enterprise
communities.
(d) CLERICAL AMENDMENT.—The table of subchapters for chapter 1 is amended by adding at the end the following new item:
‘‘Subchapter X. Renewal Communities.’’.
SEC. 102. WORK OPPORTUNITY CREDIT FOR HIRING YOUTH RESIDING
IN RENEWAL COMMUNITIES.
(a) HIGH-RISK YOUTH.—Subparagraphs (A)(ii) and (B) of section
51(d)(5) are each amended by striking ‘‘empowerment zone or enterprise community’’ and inserting ‘‘empowerment zone, enterprise
community, or renewal community’’.
(b) QUALIFIED SUMMER YOUTH EMPLOYEE.—Clause (iv) of section 51(d)(7)(A) is amended by striking ‘‘empowerment zone or
enterprise community’’ and inserting ‘‘empowerment zone, enterprise community, or renewal community’’.
(c) HEADINGS.—Paragraphs (5)(B) and (7)(C) of section 51(d)
are each amended by inserting ‘‘OR COMMUNITY’’ in the heading
after ‘‘ZONE’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to individuals who begin work for the employer after
December 31, 2001.
Subtitle B—Extension and Expansion of
Empowerment Zone Incentives
SEC. 111. AUTHORITY TO DESIGNATE 9 ADDITIONAL EMPOWERMENT
ZONES.
Section 1391 is amended by adding at the end the following
new subsection:
‘‘(h) ADDITIONAL DESIGNATIONS PERMITTED.—
‘‘(1) IN GENERAL.—In addition to the areas designated under
subsections (a) and (g), the appropriate Secretaries may designate in the aggregate an additional 9 nominated areas as
empowerment zones under this section, subject to the availability of eligible nominated areas. Of that number, not more
than seven may be designated in urban areas and not more
than 2 may be designated in rural areas.
‘‘(2) PERIOD DESIGNATIONS MAY BE MADE AND TAKE
EFFECT.—A designation may be made under this subsection
after the date of the enactment of this subsection and before
January 1, 2002. Subject to subparagraphs (B) and (C) of subsection (d)(1), such designations shall remain in effect during
the period beginning on January 1, 2002, and ending on December 31, 2009.
‘‘(3) MODIFICATIONS TO ELIGIBILITY CRITERIA, ETC.—The
rules of subsection (g)(3) shall apply to designations under
this subsection.
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PUBLIC LAW 106–554—APPENDIX G
‘‘(4) EMPOWERMENT ZONES WHICH BECOME
COMMUNITIES.—The number of areas which may be
114 STAT. 2763A–601
RENEWAL
designated
as empowerment zones under this subsection shall be increased
by 1 for each area which ceases to be an empowerment zone
by reason of section 1400E(e). Each additional area designated
by reason of the preceding sentence shall have the same urban
or rural character as the area it is replacing.’’.
SEC. 112. EXTENSION OF EMPOWERMENT ZONE TREATMENT THROUGH
2009.
Subparagraph (A) of section 1391(d)(1) (relating to period for
which designation is in effect) is amended to read as follows:
‘‘(A)(i) in the case of an empowerment zone, December
31, 2009, or
‘‘(ii) in the case of an enterprise community, the close
of the 10th calendar year beginning on or after such date
of designation,’’.
SEC. 113. 20 PERCENT EMPLOYMENT CREDIT FOR ALL EMPOWERMENT
ZONES.
(a) 20 PERCENT CREDIT.—Subsection (b) of section 1396 (relating to empowerment zone employment credit) is amended to read
as follows:
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of this section,
the applicable percentage is 20 percent.’’.
(b) ALL EMPOWERMENT ZONES ELIGIBLE FOR CREDIT.—Section
1396 is amended by striking subsection (e).
(c) CONFORMING AMENDMENT.—Subsection (d) of section 1400
is amended to read as follows:
‘‘(d) SPECIAL RULE FOR APPLICATION OF EMPLOYMENT CREDIT.—
With respect to the DC Zone, section 1396(d)(1)(B) (relating to
empowerment zone employment credit) shall be applied by
substituting ‘the District of Columbia’ for ‘such empowerment
zone’.’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to wages paid or incurred after December 31, 2001.
SEC. 114. INCREASED EXPENSING UNDER SECTION 179.
(a) IN GENERAL.—Subparagraph (A) of section 1397A(a)(1) is
amended by striking ‘‘$20,000’’ and inserting ‘‘$35,000’’.
(b) EXPENSING FOR PROPERTY USED IN DEVELOPABLE SITES.—
Section 1397A is amended by striking subsection (c).
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2001.
SEC. 115. HIGHER LIMITS ON TAX-EXEMPT EMPOWERMENT ZONE
FACILITY BONDS.
(a) IN GENERAL.—Paragraph (3) of section 1394(f ) (relating
to bonds for empowerment zones designated under section 1391(g))
is amended to read as follows:
‘‘(3) EMPOWERMENT ZONE FACILITY BOND.—For purposes
of this subsection, the term ‘empowerment zone facility bond’
means any bond which would be described in subsection (a)
if—
‘‘(A) in the case of obligations issued before January
1, 2002, only empowerment zones designated under section
1391(g) were taken into account under sections 1397C and
1397D, and
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114 STAT. 2763A–602
PUBLIC LAW 106–554—APPENDIX G
‘‘(B) in the case of obligations issued after December
31, 2001, all empowerment zones (other than the District
of Columbia Enterprise Zone) were taken into account
under sections 1397C and 1397D.’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall apply to obligations issued after December 31, 2001.
SEC. 116. NONRECOGNITION OF GAIN ON ROLLOVER OF EMPOWERMENT ZONE INVESTMENTS.
(a) IN GENERAL.—Part III of subchapter U of chapter 1 is
amended—
(1) by redesignating subpart C as subpart D,
(2) by redesignating sections 1397B and 1397C as sections
1397C and 1397D, respectively, and
(3) by inserting after subpart B the following new subpart:
‘‘Subpart C—Nonrecognition of Gain on Rollover
of Empowerment Zone Investments
‘‘Sec. 1397B. Nonrecognition of gain on rollover of empowerment zone investments.
‘‘SEC. 1397B. NONRECOGNITION OF GAIN ON ROLLOVER OF EMPOWERMENT ZONE INVESTMENTS.
‘‘(a) NONRECOGNITION OF GAIN.—In the case of any sale of
a qualified empowerment zone asset held by the taxpayer for more
than 1 year and with respect to which such taxpayer elects the
application of this section, gain from such sale shall be recognized
only to the extent that the amount realized on such sale exceeds—
‘‘(1) the cost of any qualified empowerment zone asset
(with respect to the same zone as the asset sold) purchased
by the taxpayer during the 60-day period beginning on the
date of such sale, reduced by
‘‘(2) any portion of such cost previously taken into account
under this section.
‘‘(b) DEFINITIONS AND SPECIAL RULES.—For purposes of this
section—
‘‘(1) QUALIFIED EMPOWERMENT ZONE ASSET.—
‘‘(A) IN GENERAL.—The term ‘qualified empowerment
zone asset’ means any property which would be a qualified
community asset (as defined in section 1400F) if in section
1400F—
‘‘(i) references to empowerment zones were substituted for references to renewal communities,
‘‘(ii) references to enterprise zone businesses (as
defined in section 1397C) were substituted for references to renewal community businesses, and
‘‘(iii) the date of the enactment of this paragraph
were substituted for ‘December 31, 2001’ each place
it appears.
‘‘(B) TREATMENT OF DC ZONE.—The District of Columbia
Enterprise Zone shall not be treated as an empowerment
zone for purposes of this section.
‘‘(2) CERTAIN GAIN NOT ELIGIBLE FOR ROLLOVER.—This section shall not apply to—
‘‘(A) any gain which is treated as ordinary income
for purposes of this subtitle, and
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114 STAT. 2763A–603
‘‘(B) any gain which is attributable to real property,
or an intangible asset, which is not an integral part of
an enterprise zone business.
‘‘(3) PURCHASE.—A taxpayer shall be treated as having
purchased any property if, but for paragraph (4), the unadjusted
basis of such property in the hands of the taxpayer would
be its cost (within the meaning of section 1012).
‘‘(4) BASIS ADJUSTMENTS.—If gain from any sale is not
recognized by reason of subsection (a), such gain shall be
applied to reduce (in the order acquired) the basis for determining gain or loss of any qualified empowerment zone asset which
is purchased by the taxpayer during the 60-day period described
in subsection (a). This paragraph shall not apply for purposes
of section 1202.
‘‘(5) HOLDING PERIOD.—For purposes of determining
whether the nonrecognition of gain under subsection (a) applies
to any qualified empowerment zone asset which is sold—
‘‘(A) the taxpayer’s holding period for such asset and
the asset referred to in subsection (a)(1) shall be determined
without regard to section 1223, and
‘‘(B) only the first year of the taxpayer’s holding period
for the asset referred to in subsection (a)(1) shall be taken
into account for purposes of paragraphs (2)(A)(iii), (3)(C),
and (4)(A)(iii) of section 1400F(b).’’.
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (23) of section 1016(a) is amended—
(A) by striking ‘‘or 1045’’ and inserting ‘‘1045, or
1397B’’, and
(B) by striking ‘‘or 1045(b)(4)’’ and inserting ‘‘1045(b)(4),
or 1397B(b)(4)’’.
(2) Paragraph (15) of section 1223 is amended to read
as follows:
‘‘(15) Except for purposes of sections 1202(a)(2),
1202(c)(2)(A), 1400B(b), and 1400F(b), in determining the period
for which the taxpayer has held property the acquisition of
which resulted under section 1045 or 1397B in the nonrecognition of any part of the gain realized on the sale of other
property, there shall be included the period for which such
other property has been held as of the date of such sale.’’.
(3) Paragraph (2) of section 1394(b) is amended—
(A) by striking ‘‘section 1397C’’ and inserting ‘‘section
1397D’’, and
(B) by striking ‘‘section 1397C(a)(2)’’ and inserting ‘‘section 1397D(a)(2)’’.
(4) Paragraph (3) of section 1394(b) is amended—
(A) by striking ‘‘section 1397B’’ each place it appears
and inserting ‘‘section 1397C’’, and
(B) by striking ‘‘section 1397B(d)’’ and inserting ‘‘section 1397C(d)’’.
(5) Sections 1400(e) and 1400B(c) are each amended by
striking ‘‘section 1397B’’ each place it appears and inserting
‘‘section 1397C’’.
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(6) The table of subparts for part III of subchapter U
of chapter 1 is amended by striking the last item and inserting
the following new items:
‘‘Subpart C. Nonrecognition of gain on rollover of empowerment zone investments.
‘‘Subpart D. General provisions.’’.
(7) The table of sections for subpart D of such part III
is amended to read as follows:
‘‘Sec. 1397C. Enterprise zone business defined.
‘‘Sec. 1397D. Qualified zone property defined.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to qualified empowerment zone assets acquired after
the date of the enactment of this Act.
SEC. 117. INCREASED EXCLUSION OF GAIN ON SALE OF EMPOWERMENT ZONE STOCK.
(a) IN GENERAL.—Subsection (a) of section 1202 is amended
to read as follows:
‘‘(a) EXCLUSION.—
‘‘(1) IN GENERAL.—In the case of a taxpayer other than
a corporation, gross income shall not include 50 percent of
any gain from the sale or exchange of qualified small business
stock held for more than 5 years.
‘‘(2) EMPOWERMENT ZONE BUSINESSES.—
‘‘(A) IN GENERAL.—In the case of qualified small business stock acquired after the date of the enactment of
this paragraph in a corporation which is a qualified business entity (as defined in section 1397C(b)) during substantially all of the taxpayer’s holding period for such stock,
paragraph (1) shall be applied by substituting ‘60 percent’
for ‘50 percent’.
‘‘(B) CERTAIN RULES TO APPLY.—Rules similar to the
rules of paragraphs (5) and (7) of section 1400B(b) shall
apply for purposes of this paragraph.
‘‘(C) GAIN AFTER 2014 NOT QUALIFIED.—Subparagraph
(A) shall not apply to gain attributable to periods after
December 31, 2014.
‘‘(D) TREATMENT OF DC ZONE.—The District of Columbia Enterprise Zone shall not be treated as an empowerment zone for purposes of this paragraph.’’.
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (8) of section 1(h) is amended by striking
‘‘means’’ and all that follows and inserting ‘‘means the excess
of—
‘‘(A) the gain which would be excluded from gross
income under section 1202 but for the percentage limitation
in section 1202(a), over
‘‘(B) the gain excluded from gross income under section
1202.’’.
(2) The section heading for section 1202 is amended by
striking ‘‘50-PERCENT’’ and inserting ‘‘PARTIAL’’.
(3) The table of sections for part I of subchapter P of
chapter 1 is amended by striking ‘‘50-percent’’ and inserting
‘‘Partial’’.
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114 STAT. 2763A–605
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to stock acquired after the date of the enactment of
this Act.
Subtitle C—New Markets Tax Credit
SEC. 121. NEW MARKETS TAX CREDIT.
(a) IN GENERAL.—Subpart D of part IV of subchapter A of
chapter 1 (relating to business-related credits) is amended by adding
at the end the following new section:
‘‘SEC. 45D. NEW MARKETS TAX CREDIT.
‘‘(a) ALLOWANCE OF CREDIT.—
‘‘(1) IN GENERAL.—For purposes of section 38, in the case
of a taxpayer who holds a qualified equity investment on a
credit allowance date of such investment which occurs during
the taxable year, the new markets tax credit determined under
this section for such taxable year is an amount equal to the
applicable percentage of the amount paid to the qualified
community development entity for such investment at its original issue.
‘‘(2) APPLICABLE PERCENTAGE.—For purposes of paragraph
(1), the applicable percentage is—
‘‘(A) 5 percent with respect to the first 3 credit allowance dates, and
‘‘(B) 6 percent with respect to the remainder of the
credit allowance dates.
‘‘(3) CREDIT ALLOWANCE DATE.—For purposes of paragraph
(1), the term ‘credit allowance date’ means, with respect to
any qualified equity investment—
‘‘(A) the date on which such investment is initially
made, and
‘‘(B) each of the 6 anniversary dates of such date thereafter.
‘‘(b) QUALIFIED EQUITY INVESTMENT.—For purposes of this
section—
‘‘(1) IN GENERAL.—The term ‘qualified equity investment’
means any equity investment in a qualified community development entity if—
‘‘(A) such investment is acquired by the taxpayer at
its original issue (directly or through an underwriter) solely
in exchange for cash,
‘‘(B) substantially all of such cash is used by the qualified community development entity to make qualified lowincome community investments, and
‘‘(C) such investment is designated for purposes of this
section by the qualified community development entity.
Such term shall not include any equity investment issued by
a qualified community development entity more than 5 years
after the date that such entity receives an allocation under
subsection (f ). Any allocation not used within such 5-year period
may be reallocated by the Secretary under subsection (f ).
‘‘(2) LIMITATION.—The maximum amount of equity investments issued by a qualified community development entity
which may be designated under paragraph (1)(C) by such entity
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114 STAT. 2763A–606
PUBLIC LAW 106–554—APPENDIX G
shall not exceed the portion of the limitation amount allocated
under subsection (f ) to such entity.
‘‘(3) SAFE HARBOR FOR DETERMINING USE OF CASH.—The
requirement of paragraph (1)(B) shall be treated as met if
at least 85 percent of the aggregate gross assets of the qualified
community development entity are invested in qualified lowincome community investments.
‘‘(4) TREATMENT OF SUBSEQUENT PURCHASERS.—The term
‘qualified equity investment’ includes any equity investment
which would (but for paragraph (1)(A)) be a qualified equity
investment in the hands of the taxpayer if such investment
was a qualified equity investment in the hands of a prior
holder.
‘‘(5) REDEMPTIONS.—A rule similar to the rule of section
1202(c)(3) shall apply for purposes of this subsection.
‘‘(6) EQUITY INVESTMENT.—The term ‘equity investment’
means—
‘‘(A) any stock (other than nonqualified preferred stock
as defined in section 351(g)(2)) in an entity which is a
corporation, and
‘‘(B) any capital interest in an entity which is a partnership.
‘‘(c) QUALIFIED COMMUNITY DEVELOPMENT ENTITY.—For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified community development entity’ means any domestic corporation or partnership
if—
‘‘(A) the primary mission of the entity is serving, or
providing investment capital for, low-income communities
or low-income persons,
‘‘(B) the entity maintains accountability to residents
of low-income communities through their representation
on any governing board of the entity or on any advisory
board to the entity, and
‘‘(C) the entity is certified by the Secretary for purposes
of this section as being a qualified community development
entity.
‘‘(2) SPECIAL RULES FOR CERTAIN ORGANIZATIONS.—The
requirements of paragraph (1) shall be treated as met by—
‘‘(A) any specialized small business investment company (as defined in section 1044(c)(3)), and
‘‘(B) any community development financial institution
(as defined in section 103 of the Community Development
Banking and Financial Institutions Act of 1994 (12 U.S.C.
4702)).
‘‘(d) QUALIFIED LOW-INCOME COMMUNITY INVESTMENTS.—For
purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified low-income community investment’ means—
‘‘(A) any capital or equity investment in, or loan to,
any qualified active low-income community business,
‘‘(B) the purchase from another qualified community
development entity of any loan made by such entity which
is a qualified low-income community investment,
‘‘(C) financial counseling and other services specified
in regulations prescribed by the Secretary to businesses
located in, and residents of, low-income communities, and
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–607
‘‘(D) any equity investment in, or loan to, any qualified
community development entity.
‘‘(2) QUALIFIED ACTIVE LOW-INCOME COMMUNITY BUSINESS.—
‘‘(A) IN GENERAL.—For purposes of paragraph (1), the
term ‘qualified active low-income community business’
means, with respect to any taxable year, any corporation
(including a nonprofit corporation) or partnership if for
such year—
‘‘(i) at least 50 percent of the total gross income
of such entity is derived from the active conduct of
a qualified business within any low-income community,
‘‘(ii) a substantial portion of the use of the tangible
property of such entity (whether owned or leased) is
within any low-income community,
‘‘(iii) a substantial portion of the services performed for such entity by its employees are performed
in any low-income community,
‘‘(iv) less than 5 percent of the average of the
aggregate unadjusted bases of the property of such
entity is attributable to collectibles (as defined in section 408(m)(2)) other than collectibles that are held
primarily for sale to customers in the ordinary course
of such business, and
‘‘(v) less than 5 percent of the average of the aggregate unadjusted bases of the property of such entity
is attributable to nonqualified financial property (as
defined in section 1397C(e)).
‘‘(B) PROPRIETORSHIP.—Such term shall include any
business carried on by an individual as a proprietor if
such business would meet the requirements of subparagraph (A) were it incorporated.
‘‘(C) PORTIONS OF BUSINESS MAY BE QUALIFIED ACTIVE
LOW-INCOME COMMUNITY BUSINESS.—The term ‘qualified
active low-income community business’ includes any trades
or businesses which would qualify as a qualified active
low-income community business if such trades or
businesses were separately incorporated.
‘‘(3) QUALIFIED BUSINESS.—For purposes of this subsection,
the term ‘qualified business’ has the meaning given to such
term by section 1397C(d); except that—
‘‘(A) in lieu of applying paragraph (2)(B) thereof, the
rental to others of real property located in any low-income
community shall be treated as a qualified business if there
are substantial improvements located on such property,
and
‘‘(B) paragraph (3) thereof shall not apply.
‘‘(e) LOW-INCOME COMMUNITY.—For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘low-income community’ means
any population census tract if—
‘‘(A) the poverty rate for such tract is at least 20
percent, or
‘‘(B)(i) in the case of a tract not located within a metropolitan area, the median family income for such tract does
not exceed 80 percent of statewide median family income,
or
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114 STAT. 2763A–608
PUBLIC LAW 106–554—APPENDIX G
‘‘(ii) in the case of a tract located within a metropolitan
area, the median family income for such tract does not
exceed 80 percent of the greater of statewide median family
income or the metropolitan area median family income.
Subparagraph (B) shall be applied using possessionwide median
family income in the case of census tracts located within a
possession of the United States.
‘‘(2) TARGETED AREAS.—The Secretary may designate any
area within any census tract as a low-income community if—
‘‘(A) the boundary of such area is continuous,
‘‘(B) the area would satisfy the requirements of paragraph (1) if it were a census tract, and
‘‘(C) an inadequate access to investment capital exists
in such area.
‘‘(3) AREAS NOT WITHIN CENSUS TRACTS.—In the case of
an area which is not tracted for population census tracts, the
equivalent county divisions (as defined by the Bureau of the
Census for purposes of defining poverty areas) shall be used
for purposes of determining poverty rates and median family
income.
‘‘(f ) NATIONAL LIMITATION ON AMOUNT OF INVESTMENTS DESIGNATED.—
‘‘(1) IN GENERAL.—There is a new markets tax credit limitation for each calendar year. Such limitation is—
‘‘(A) $1,000,000,000 for 2001,
‘‘(B) $1,500,000,000 for 2002 and 2003,
‘‘(C) $2,000,000,000 for 2004 and 2005, and
‘‘(D) $3,500,000,000 for 2006 and 2007.
‘‘(2) ALLOCATION OF LIMITATION.—The limitation under
paragraph (1) shall be allocated by the Secretary among qualified community development entities selected by the Secretary.
In making allocations under the preceding sentence, the Secretary shall give priority to any entity—
‘‘(A) with a record of having successfully provided capital or technical assistance to disadvantaged businesses
or communities, or
‘‘(B) which intends to satisfy the requirement under
subsection (b)(1)(B) by making qualified low-income
community investments in 1 or more businesses in which
persons unrelated to such entity (within the meaning of
section 267(b) or 707(b)(1)) hold the majority equity
interest.
‘‘(3) CARRYOVER OF UNUSED LIMITATION.—If the new markets tax credit limitation for any calendar year exceeds the
aggregate amount allocated under paragraph (2) for such year,
such limitation for the succeeding calendar year shall be
increased by the amount of such excess. No amount may be
carried under the preceding sentence to any calendar year
after 2014.
‘‘(g) RECAPTURE OF CREDIT IN CERTAIN CASES.—
‘‘(1) IN GENERAL.—If, at any time during the 7-year period
beginning on the date of the original issue of a qualified equity
investment in a qualified community development entity, there
is a recapture event with respect to such investment, then
the tax imposed by this chapter for the taxable year in which
such event occurs shall be increased by the credit recapture
amount.
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–609
‘‘(2) CREDIT RECAPTURE AMOUNT.—For purposes of paragraph (1), the credit recapture amount is an amount equal
to the sum of—
‘‘(A) the aggregate decrease in the credits allowed to
the taxpayer under section 38 for all prior taxable years
which would have resulted if no credit had been determined
under this section with respect to such investment, plus
‘‘(B) interest at the underpayment rate established
under section 6621 on the amount determined under
subparagraph (A) for each prior taxable year for the period
beginning on the due date for filing the return for the
prior taxable year involved.
No deduction shall be allowed under this chapter for interest
described in subparagraph (B).
‘‘(3) RECAPTURE EVENT.—For purposes of paragraph (1),
there is a recapture event with respect to an equity investment
in a qualified community development entity if—
‘‘(A) such entity ceases to be a qualified community
development entity,
‘‘(B) the proceeds of the investment cease to be used
as required of subsection (b)(1)(B), or
‘‘(C) such investment is redeemed by such entity.
‘‘(4) SPECIAL RULES.—
‘‘(A) TAX BENEFIT RULE.—The tax for the taxable year
shall be increased under paragraph (1) only with respect
to credits allowed by reason of this section which were
used to reduce tax liability. In the case of credits not
so used to reduce tax liability, the carryforwards and
carrybacks under section 39 shall be appropriately
adjusted.
‘‘(B) NO CREDITS AGAINST TAX.—Any increase in tax
under this subsection shall not be treated as a tax imposed
by this chapter for purposes of determining the amount
of any credit under this chapter or for purposes of section
55.
‘‘(h) BASIS REDUCTION.—The basis of any qualified equity
investment shall be reduced by the amount of any credit determined
under this section with respect to such investment. This subsection
shall not apply for purposes of sections 1202, 1400B, and 1400F.
‘‘(i) REGULATIONS.—The Secretary shall prescribe such regulations as may be appropriate to carry out this section, including
regulations—
‘‘(1) which limit the credit for investments which are
directly or indirectly subsidized by other Federal tax benefits
(including the credit under section 42 and the exclusion from
gross income under section 103),
‘‘(2) which prevent the abuse of the purposes of this section,
‘‘(3) which provide rules for determining whether the
requirement of subsection (b)(1)(B) is treated as met,
‘‘(4) which impose appropriate reporting requirements, and
‘‘(5) which apply the provisions of this section to newly
formed entities.’’.
(b) CREDIT MADE PART OF GENERAL BUSINESS CREDIT.—
(1) IN GENERAL.—Subsection (b) of section 38 is amended
by striking ‘‘plus’’ at the end of paragraph (11), by striking
the period at the end of paragraph (12) and inserting ‘‘, plus’’,
and by adding at the end the following new paragraph:
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114 STAT. 2763A–610
PUBLIC LAW 106–554—APPENDIX G
‘‘(13) the new markets tax credit determined under section
45D(a).’’.
(2) LIMITATION ON CARRYBACK.—Subsection (d) of section
39 is amended by adding at the end the following new paragraph:
‘‘(9) NO CARRYBACK OF NEW MARKETS TAX CREDIT BEFORE
JANUARY 1, 2001.—No portion of the unused business credit
for any taxable year which is attributable to the credit under
section 45D may be carried back to a taxable year ending
before January 1, 2001.’’.
(c) DEDUCTION FOR UNUSED CREDIT.—Subsection (c) of section
196 is amended by striking ‘‘and’’ at the end of paragraph (7),
by striking the period at the end of paragraph (8) and inserting
‘‘, and’’, and by adding at the end the following new paragraph:
‘‘(9) the new markets tax credit determined under section
45D(a).’’.
(d) CLERICAL AMENDMENT.—The table of sections for subpart
D of part IV of subchapter A of chapter 1 is amended by adding
at the end the following new item:
‘‘Sec. 45D. New markets tax credit.’’.
(e) EFFECTIVE DATE.—The amendments made by this section
shall apply to investments made after December 31, 2000.
(f ) GUIDANCE ON ALLOCATION OF NATIONAL LIMITATION.—Not
later than 120 days after the date of the enactment of this Act,
the Secretary of the Treasury or the Secretary’s delegate shall
issue guidance which specifies—
(1) how entities shall apply for an allocation under section
45D(f )(2) of the Internal Revenue Code of 1986, as added by
this section;
(2) the competitive procedure through which such allocations are made; and
(3) the actions that such Secretary or delegate shall take
to ensure that such allocations are properly made to appropriate
entities.
(g) AUDIT AND REPORT.—Not later than January 31 of 2004,
2007, and 2010, the Comptroller General of the United States
shall, pursuant to an audit of the new markets tax credit program
established under section 45D of the Internal Revenue Code of
1986 (as added by subsection (a)), report to Congress on such
program, including all qualified community development entities
that receive an allocation under the new markets credit under
such section.
Subtitle D—Improvements in Low-Income
Housing Credit
SEC. 131. MODIFICATION OF STATE CEILING ON LOW-INCOME HOUSING CREDIT.
(a) IN GENERAL.—Clauses (i) and (ii) of section 42(h)(3)(C)
(relating to State housing credit ceiling) are amended to read as
follows:
‘‘(i) the unused State housing credit ceiling (if any)
of such State for the preceding calendar year,
‘‘(ii) the greater of—
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114 STAT. 2763A–611
‘‘(I) $1.75 ($1.50 for 2001) multiplied by the
State population, or
‘‘(II) $2,000,000,’’.
(b) ADJUSTMENT OF STATE CEILING FOR INCREASES IN COSTOF-LIVING.—Paragraph (3) of section 42(h) (relating to housing
credit dollar amount for agencies) is amended by adding at the
end the following new subparagraph:
‘‘(H) COST-OF-LIVING ADJUSTMENT.—
‘‘(i) IN GENERAL.—In the case of a calendar year
after 2002, the $2,000,000 and $1.75 amounts in
subparagraph (C) shall each be increased by an amount
equal to—
‘‘(I) such dollar amount, multiplied by
‘‘(II) the cost-of-living adjustment determined
under section 1(f )(3) for such calendar year by
substituting ‘calendar year 2001’ for ‘calendar year
1992’ in subparagraph (B) thereof.
‘‘(ii) ROUNDING.—
‘‘(I) In the case of the $2,000,000 amount, any
increase under clause (i) which is not a multiple
of $5,000 shall be rounded to the next lowest multiple of $5,000.
‘‘(II) In the case of the $1.75 amount, any
increase under clause (i) which is not a multiple
of 5 cents shall be rounded to the next lowest
multiple of 5 cents.’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 42(h)(3)(C), as amended by subsection (a), is
amended—
(A) by striking ‘‘clause (ii)’’ in the matter following
clause (iv) and inserting ‘‘clause (i)’’; and
(B) by striking ‘‘clauses (i)’’ in the matter following
clause (iv) and inserting ‘‘clauses (ii)’’.
(2) Section 42(h)(3)(D)(ii) is amended—
(A) by striking ‘‘subparagraph (C)(ii)’’ and inserting
‘‘subparagraph (C)(i)’’; and
(B) by striking ‘‘clauses (i)’’ in subclause (II) and inserting ‘‘clauses (ii)’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to calendar years after 2000.
SEC. 132. MODIFICATION OF CRITERIA FOR ALLOCATING HOUSING
CREDITS AMONG PROJECTS.
(a) SELECTION CRITERIA.—Subparagraph (C) of section 42(m)(1)
(relating to certain selection criteria must be used) is amended—
(1) by inserting ‘‘, including whether the project includes
the use of existing housing as part of a community revitalization
plan’’ before the comma at the end of clause (iii); and
(2) by striking clauses (v), (vi), and (vii) and inserting
the following new clauses:
‘‘(v) tenant populations with special housing needs,
‘‘(vi) public housing waiting lists,
‘‘(vii) tenant populations of individuals with children, and
‘‘(viii) projects intended for eventual tenant ownership.’’.
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114 STAT. 2763A–612
PUBLIC LAW 106–554—APPENDIX G
(b) PREFERENCE FOR COMMUNITY REVITALIZATION PROJECTS
LOCATED IN QUALIFIED CENSUS TRACTS.—Clause (ii) of section
42(m)(1)(B) is amended by striking ‘‘and’’ at the end of subclause
(I), by adding ‘‘and’’ at the end of subclause (II), and by inserting
after subclause (II) the following new subclause:
‘‘(III) projects which are located in qualified
census tracts (as defined in subsection (d)(5)(C))
and the development of which contributes to a
concerted community revitalization plan,’’.
SEC. 133. ADDITIONAL RESPONSIBILITIES OF HOUSING CREDIT AGENCIES.
(a) MARKET STUDY; PUBLIC DISCLOSURE OF RATIONALE FOR
NOT FOLLOWING CREDIT ALLOCATION PRIORITIES.—Subparagraph
(A) of section 42(m)(1) (relating to responsibilities of housing credit
agencies) is amended by striking ‘‘and’’ at the end of clause (i),
by striking the period at the end of clause (ii) and inserting a
comma, and by adding at the end the following new clauses:
‘‘(iii) a comprehensive market study of the housing
needs of low-income individuals in the area to be served
by the project is conducted before the credit allocation
is made and at the developer’s expense by a disinterested party who is approved by such agency, and
‘‘(iv) a written explanation is available to the general public for any allocation of a housing credit dollar
amount which is not made in accordance with established priorities and selection criteria of the housing
credit agency.’’.
(b) SITE VISITS.—Clause (iii) of section 42(m)(1)(B) (relating
to qualified allocation plan) is amended by inserting before the
period ‘‘and in monitoring for noncompliance with habitability
standards through regular site visits’’.
SEC. 134. MODIFICATIONS TO RULES RELATING TO BASIS OF BUILDING
WHICH IS ELIGIBLE FOR CREDIT.
(a) ADJUSTED BASIS TO INCLUDE PORTION OF CERTAIN BUILDINGS USED BY LOW-INCOME INDIVIDUALS WHO ARE NOT TENANTS
AND BY PROJECT EMPLOYEES.—Paragraph (4) of section 42(d) (relating to special rules relating to determination of adjusted basis)
is amended—
(1) by striking ‘‘subparagraph (B)’’ in subparagraph (A)
and inserting ‘‘subparagraphs (B) and (C)’’;
(2) by redesignating subparagraph (C) as subparagraph
(D); and
(3) by inserting after subparagraph (B) the following new
subparagraph:
‘‘(C) INCLUSION OF BASIS OF PROPERTY USED TO PROVIDE
SERVICES FOR CERTAIN NONTENANTS.—
‘‘(i) IN GENERAL.—The adjusted basis of any building located in a qualified census tract (as defined in
paragraph (5)(C)) shall be determined by taking into
account the adjusted basis of property (of a character
subject to the allowance for depreciation and not otherwise taken into account) used throughout the taxable
year in providing any community service facility.
‘‘(ii) LIMITATION.—The increase in the adjusted
basis of any building which is taken into account by
reason of clause (i) shall not exceed 10 percent of
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–613
the eligible basis of the qualified low-income housing
project of which it is a part. For purposes of the preceding sentence, all community service facilities which
are part of the same qualified low-income housing
project shall be treated as one facility.
‘‘(iii) COMMUNITY SERVICE FACILITY.—For purposes
of this subparagraph, the term ‘community service
facility’ means any facility designed to serve primarily
individuals whose income is 60 percent or less of area
median income (within the meaning of subsection
(g)(1)(B)).’’.
(b) CERTAIN NATIVE AMERICAN HOUSING ASSISTANCE DISREGARDED IN DETERMINING WHETHER BUILDING IS FEDERALLY SUBSIDIZED FOR PURPOSES OF THE LOW-INCOME HOUSING CREDIT.—
Subparagraph (E) of section 42(i)(2) (relating to determination of
whether building is federally subsidized) is amended—
(1) in clause (i), by inserting ‘‘or the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4101 et seq.) (as in effect on October 1, 1997)’’ after
‘‘this subparagraph)’’; and
(2) in the subparagraph heading, by inserting ‘‘OR NATIVE
AMERICAN HOUSING ASSISTANCE’’ after ‘‘HOME ASSISTANCE’’.
SEC. 135. OTHER MODIFICATIONS.
(a) ALLOCATION OF CREDIT LIMIT TO CERTAIN BUILDINGS.—
(1) The first sentence of section 42(h)(1)(E)(ii) is amended
by striking ‘‘(as of’’ the first place it appears and inserting
‘‘(as of the later of the date which is 6 months after the
date that the allocation was made or’’.
(2) The last sentence of section 42(h)(3)(C) is amended
by striking ‘‘project which’’ and inserting ‘‘project which fails
to meet the 10 percent test under paragraph (1)(E)(ii) on a
date after the close of the calendar year in which the allocation
was made or which’’.
(b) DETERMINATION OF WHETHER BUILDINGS ARE LOCATED IN
HIGH COST AREAS.—The first sentence of section 42(d)(5)(C)(ii)(I)
is amended—
(1) by inserting ‘‘either’’ before ‘‘in which 50 percent’’; and
(2) by inserting before the period ‘‘or which has a poverty
rate of at least 25 percent’’.
SEC. 136. CARRYFORWARD RULES.
(a) IN GENERAL.—Clause (ii) of section 42(h)(3)(D) (relating
to unused housing credit carryovers allocated among certain States)
is amended by striking ‘‘the excess’’ and all that follows and inserting ‘‘the excess (if any) of—
‘‘(I) the unused State housing credit ceiling
for the year preceding such year, over
‘‘(II) the aggregate housing credit dollar
amount allocated for such year.’’.
(b) CONFORMING AMENDMENT.—The second sentence of section
42(h)(3)(C) (relating to State housing credit ceiling) is amended
by striking ‘‘clauses (i) and (iii)’’ and inserting ‘‘clauses (i) through
(iv)’’.
SEC. 137. EFFECTIVE DATE.
Except as otherwise provided in this subtitle, the amendments
made by this subtitle shall apply to—
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114 STAT. 2763A–614
PUBLIC LAW 106–554—APPENDIX G
(1) housing credit dollar amounts allocated after December
31, 2000; and
(2) buildings placed in service after such date to the extent
paragraph (1) of section 42(h) of the Internal Revenue Code
of 1986 does not apply to any building by reason of paragraph
(4) thereof, but only with respect to bonds issued after such
date.
Subtitle E—Other Community Renewal
and New Markets Assistance
PART I—PROVISIONS RELATING TO HOUSING
AND SUBSTANCE ABUSE PREVENTION AND
TREATMENT
SEC. 141. TRANSFER OF UNOCCUPIED AND SUBSTANDARD HUD-HELD
HOUSING TO LOCAL GOVERNMENTS AND COMMUNITY
DEVELOPMENT CORPORATIONS.
Section 204 of the Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations
Act, 1997 (12 U.S.C. 1715z–11a) is amended—
(1) by striking ‘‘FLEXIBLE AUTHORITY.—’’ and inserting
‘‘DISPOSITION OF HUD-OWNED PROPERTIES. (a) FLEXIBLE
AUTHORITY FOR MULTIFAMILY PROJECTS.—’’; and
(2) by adding at the end the following new subsection:
‘‘(b) TRANSFER OF UNOCCUPIED AND SUBSTANDARD HOUSING
TO LOCAL GOVERNMENTS AND COMMUNITY DEVELOPMENT CORPORATIONS.—
‘‘(1) TRANSFER AUTHORITY.—Notwithstanding the authority
under subsection (a) and the last sentence of section 204(g)
of the National Housing Act (12 U.S.C. 1710(g)), the Secretary
of Housing and Urban Development shall transfer ownership
of any qualified HUD property, subject to the requirements
of this section, to a unit of general local government having
jurisdiction for the area in which the property is located or
to a community development corporation which operates within
such a unit of general local government in accordance with
this subsection, but only to the extent that units of general
local government and community development corporations consent to transfer and the Secretary determines that such transfer
is practicable.
‘‘(2) QUALIFIED HUD PROPERTIES.—For purposes of this subsection, the term ‘qualified HUD property’ means any property
for which, as of the date that notification of the property is
first made under paragraph (3)(B), not less than 6 months
have elapsed since the later of the date that the property
was acquired by the Secretary or the date that the property
was determined to be unoccupied or substandard, that is owned
by the Secretary and is—
‘‘(A) an unoccupied multifamily housing project;
‘‘(B) a substandard multifamily housing project; or
‘‘(C) an unoccupied single family property that—
‘‘(i) has been determined by the Secretary not to
be an eligible asset under section 204(h) of the National
Housing Act (12 U.S.C. 1710(h)); or
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–615
‘‘(ii) is an eligible asset under such section 204(h),
but—
‘‘(I) is not subject to a specific sale agreement
under such section; and
‘‘(II) has been determined by the Secretary
to be inappropriate for continued inclusion in the
program under such section 204(h) pursuant to
paragraph (10) of such section.
‘‘(3) TIMING.—The Secretary shall establish procedures that
provide for—
‘‘(A) time deadlines for transfers under this subsection;
‘‘(B) notification to units of general local government
and community development corporations of qualified HUD
properties in their jurisdictions;
‘‘(C) such units and corporations to express interest
in the transfer under this subsection of such properties;
‘‘(D) a right of first refusal for transfer of qualified
HUD properties to units of general local government and
community development corporations, under which—
‘‘(i) the Secretary shall establish a period during
which the Secretary may not transfer such properties
except to such units and corporations;
‘‘(ii) the Secretary shall offer qualified HUD properties that are single family properties for purchase
by units of general local government at a cost of $1
for each property, but only to the extent that the
costs to the Federal Government of disposal at such
price do not exceed the costs to the Federal Government of disposing of property subject to the procedures
for single family property established by the Secretary
pursuant to the authority under the last sentence of
section 204(g) of the National Housing Act (12 U.S.C.
1710(g));
‘‘(iii) the Secretary may accept an offer to purchase
a property made by a community development corporation only if the offer provides for purchase on a cost
recovery basis; and
‘‘(iv) the Secretary shall accept an offer to purchase
such a property that is made during such period by
such a unit or corporation and that complies with
the requirements of this paragraph; and
‘‘(E) a written explanation, to any unit of general local
government or community development corporation making
an offer to purchase a qualified HUD property under this
subsection that is not accepted, of the reason that such
offer was not acceptable.
‘‘(4) OTHER DISPOSITION.—With respect to any qualified
HUD property, if the Secretary does not receive an acceptable
offer to purchase the property pursuant to the procedure established under paragraph (3), the Secretary shall dispose of the
property to the unit of general local government in which
property is located or to community development corporations
located in such unit of general local government on a negotiated,
competitive bid, or other basis, on such terms as the Secretary
deems appropriate.
‘‘(5) SATISFACTION OF INDEBTEDNESS.—Before transferring
ownership of any qualified HUD property pursuant to this
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114 STAT. 2763A–616
PUBLIC LAW 106–554—APPENDIX G
subsection, the Secretary shall satisfy any indebtedness
incurred in connection with the property to be transferred,
by canceling the indebtedness.
‘‘(6) DETERMINATION OF STATUS OF PROPERTIES.—To ensure
compliance with the requirements of this subsection, the Secretary shall take the following actions:
‘‘(A) UPON ENACTMENT.—Upon the enactment of this
subsection, the Secretary shall promptly assess each residential property owned by the Secretary to determine
whether such property is a qualified HUD property.
‘‘(B) UPON ACQUISITION.—Upon acquiring any residential property, the Secretary shall promptly determine
whether the property is a qualified HUD property.
‘‘(C) UPDATES.—The Secretary shall periodically
reassess the residential properties owned by the Secretary
to determine whether any such properties have become
qualified HUD properties.
‘‘(7) TENANT LEASES.—This subsection shall not affect the
terms or the enforceability of any contract or lease entered
into with respect to any residential property before the date
that such property becomes a qualified HUD property.
‘‘(8) USE OF PROPERTY.—Property transferred under this
subsection shall be used only for appropriate neighborhood
revitalization efforts, including homeownership, rental units,
commercial space, and parks, consistent with local zoning regulations, local building codes, and subdivision regulations and
restrictions of record.
‘‘(9) INAPPLICABILITY TO PROPERTIES MADE AVAILABLE FOR
HOMELESS.—Notwithstanding any other provision of this subsection, this subsection shall not apply to any properties that
the Secretary determines are to be made available for use
by the homeless pursuant to subpart E of part 291 of title
24, Code of Federal Regulations, during the period that the
properties are so available.
‘‘(10) PROTECTION OF EXISTING CONTRACTS.—This subsection may not be construed to alter, affect, or annul any
legally binding obligations entered into with respect to a qualified HUD property before the property becomes a qualified
HUD property.
‘‘(11) DEFINITIONS.—For purposes of this subsection, the
following definitions shall apply:
‘‘(A) COMMUNITY DEVELOPMENT CORPORATION.—The
term ‘community development corporation’ means a nonprofit organization whose primary purpose is to promote
community development by providing housing opportunities
for low-income families.
‘‘(B) COST RECOVERY BASIS.—The term ‘cost recovery
basis’ means, with respect to any sale of a residential
property by the Secretary, that the purchase price paid
by the purchaser is equal to or greater than the sum
of: (i) the appraised value of the property, as determined
in accordance with such requirements as the Secretary
shall establish; and (ii) the costs incurred by the Secretary
in connection with such property during the period beginning on the date on which the Secretary acquires title
to the property and ending on the date on which the
sale is consummated.
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–617
‘‘(C) MULTIFAMILY HOUSING PROJECT.—The term ‘multifamily housing project’ has the meaning given the term
in section 203 of the Housing and Community Development
Amendments of 1978.
‘‘(D) RESIDENTIAL PROPERTY.—The term ‘residential
property’ means a property that is a multifamily housing
project or a single family property.
‘‘(E) SECRETARY.—The term ‘Secretary’ means the Secretary of Housing and Urban Development.
‘‘(F) SEVERE PHYSICAL PROBLEMS.—The term ‘severe
physical problems’ means, with respect to a dwelling unit,
that the unit—
‘‘(i) lacks hot or cold piped water, a flush toilet,
or both a bathtub and a shower in the unit, for the
exclusive use of that unit;
‘‘(ii) on not less than three separate occasions during the preceding winter months, was uncomfortably
cold for a period of more than 6 consecutive hours
due to a malfunction of the heating system for the
unit;
‘‘(iii) has no functioning electrical service, exposed
wiring, any room in which there is not a functioning
electrical outlet, or has experienced three or more
blown fuses or tripped circuit breakers during the
preceding 90-day period;
‘‘(iv) is accessible through a public hallway in
which there are no working light fixtures, loose or
missing steps or railings, and no elevator; or
‘‘(v) has severe maintenance problems, including
water leaks involving the roof, windows, doors, basement, or pipes or plumbing fixtures, holes or open
cracks in walls or ceilings, severe paint peeling or
broken plaster, and signs of rodent infestation.
‘‘(G) SINGLE FAMILY PROPERTY.—The term ‘single family property’ means a 1- to 4-family residence.
‘‘(H) SUBSTANDARD.—The term ‘substandard’ means,
with respect to a multifamily housing project, that 25 percent or more of the dwelling units in the project have
severe physical problems.
‘‘(I) UNIT OF GENERAL LOCAL GOVERNMENT.—The term
‘unit of general local government’ has the meaning given
such term in section 102(a) of the Housing and Community
Development Act of 1974.
‘‘(J) UNOCCUPIED.—The term ‘unoccupied’ means, with
respect to a residential property, that the unit of general
local government having jurisdiction over the area in which
the project is located has certified in writing that the
property is not inhabited.
‘‘(12) REGULATIONS.—
‘‘(A) INTERIM.—Not later than 30 days after the date
of the enactment of this subsection, the Secretary shall
issue such interim regulations as are necessary to carry
out this subsection.
‘‘(B) FINAL.—Not later than 60 days after the date
of the enactment of this subsection, the Secretary shall
issue such final regulations as are necessary to carry out
this subsection.’’.
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114 STAT. 2763A–618
PUBLIC LAW 106–554—APPENDIX G
SEC. 142. TRANSFER OF HUD ASSETS IN REVITALIZATION AREAS.
In carrying out the program under section 204(h) of the
National Housing Act (12 U.S.C. 1710(h)), upon the request of
the chief executive officer of a county or the government of appropriate jurisdiction and not later than 60 days after such request
is made, the Secretary of Housing and Urban Development shall
designate as a revitalization area all portions of such county that
meet the criteria for such designation under paragraph (3) of such
section.
SEC. 143. RISK-SHARING DEMONSTRATION.
Section 249 of the National Housing Act (12 U.S.C. 1715z–
14) is amended—
(1) by striking the section heading and inserting the following:
‘‘RISK-SHARING
DEMONSTRATION’’;
(2) by striking ‘‘reinsurance’’ each place such term appears
and insert ‘‘risk-sharing ’’;
(3) in subsection (a)—
(A) in the first sentence, by inserting ‘‘and with insured
community development financial institutions’’ after ‘‘private mortgage insurers’’;
(B) in the second sentence—
(i) by striking ‘‘two’’ and inserting ‘‘four’’; and
(ii) by striking ‘‘March 15, 1988’’ and inserting
‘‘the expiration of the 5-year period beginning on the
date of the enactment of the Community Renewal Tax
Relief Act of 2000’’; and
(C) in the third sentence—
(i) by striking ‘‘insured’’ and inserting ‘‘for which
risk of nonpayment is shared’’; and
(ii) by striking ‘‘10 percent’’ and inserting ‘‘20 percent’’;
(4) in subsection (b)—
(A) in the first sentence—
(i) by striking ‘‘to provide’’ and inserting ‘‘, in
providing ’’;
(ii) by striking ‘‘through’’ and inserting ‘‘, to enter
into’’; and
(iii) by inserting ‘‘and with insured community
development financial institutions’’ before the period
at the end;
(B) in the second sentence, by inserting ‘‘and insured
community development financial institutions’’ after ‘‘private mortgage insurance companies’’;
(C) by striking paragraph (1) and inserting the following new paragraph:
‘‘(1) assume a secondary percentage of loss on any mortgage
insured pursuant to section 203(b), 234, or 245 covering a
one- to four-family dwelling, which percentage of loss shall
be set forth in the risk-sharing contract, with the first percentage of loss to be borne by the Secretary;’’; and
(D) in paragraph (2)—
(i) by striking ‘‘carry out (under appropriate delegation) such’’ and inserting ‘‘perform or delegate underwriting,’’;
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–619
(ii) by striking ‘‘function as the Secretary pursuant
to regulations,’’ and inserting ‘‘functions as the Secretary’’; and
(iii) by inserting before the period at the end the
following: ‘‘and shall set forth in the risk-sharing contract’’;
(5) in subsection (c)—
(A) in the first sentence—
(i) by striking ‘‘of’’ the first place it appears and
inserting ‘‘for’’;
(ii) by inserting ‘‘received by the Secretary with
a private mortgage insurer or insured community
development financial institution’’ after ‘‘sharing of premiums’’;
(iii) by striking ‘‘insurance reserves’’ and inserting
‘‘loss reserves’’;
(iv) by striking ‘‘such insurance’’ and inserting
‘‘such risk-sharing contract’’; and
(v) by striking ‘‘right’’ and inserting ‘‘rights’’; and
(B) in the second sentence—
(i) by inserting ‘‘or insured community development financial institution’’ after ‘‘private mortgage
insurance company’’; and
(ii) by striking ‘‘for insurance’’ and inserting ‘‘for
risk-sharing ’’;
(6) in subsection (d), by inserting ‘‘or insured community
development financial institution’’ after ‘‘private mortgage
insurance company’’; and
(7) by adding at the end the following new subsection:
‘‘(e) INSURED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION.—For purposes of this section, the term ‘insured community
development financial institution’ means a community development
financial institution, as such term is defined in section 103 of
Reigle Community Development and Regulatory Improvement Act
of 1994 (12 U.S.C. 4702) that is an insured depository institution
(as such term is defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) or an insured credit union (as such
term is defined in section 101 of the Federal Credit Union Act
(12 U.S.C. 1752)).’’.
SEC. 144. PREVENTION AND TREATMENT OF SUBSTANCE ABUSE; SERVICES PROVIDED THROUGH RELIGIOUS ORGANIZATIONS.
Title V of the Public Health Service Act (42 U.S.C. 290aa
et seq.) is amended by adding at the end the following part:
‘‘PART G—SERVICES PROVIDED THROUGH RELIGIOUS ORGANIZATIONS
‘‘SEC. 581. APPLICABILITY TO DESIGNATED PROGRAMS.
‘‘(a) DESIGNATED PROGRAMS.—Subject to subsection (b), this
part applies to discretionary and formula grant programs administered by the Substance Abuse and Mental Health Services Administration that make awards of financial assistance to public or private
entities for the purpose of carrying out activities to prevent or
treat substance abuse (in this part referred to as a ‘designated
program’). Designated programs include the program under subpart
II of part B of title XIX (relating to formula grants to the States).
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114 STAT. 2763A–620
PUBLIC LAW 106–554—APPENDIX G
‘‘(b) LIMITATION.—This part does not apply to any award of
financial assistance under a designated program for a purpose
other than the purpose specified in subsection (a).
‘‘(c) DEFINITIONS.—For purposes of this part (and subject to
subsection (b)):
‘‘(1) The term ‘designated program’ has the meaning given
such term in subsection (a).
‘‘(2) The term ‘financial assistance’ means a grant, cooperative agreement, or contract.
‘‘(3) The term ‘program beneficiary’ means an individual
who receives program services.
‘‘(4) The term ‘program participant’ means a public or private entity that has received financial assistance under a designated program.
‘‘(5) The term ‘program services’ means treatment for substance abuse, or preventive services regarding such abuse, provided pursuant to an award of financial assistance under a
designated program.
‘‘(6) The term ‘religious organization’ means a nonprofit
religious organization.
‘‘SEC. 582. RELIGIOUS ORGANIZATIONS AS PROGRAM PARTICIPANTS.
‘‘(a) IN GENERAL.—Notwithstanding any other provision of law,
a religious organization, on the same basis as any other nonprofit
private provider—
‘‘(1) may receive financial assistance under a designated
program; and
‘‘(2) may be a provider of services under a designated
program.
‘‘(b) RELIGIOUS ORGANIZATIONS.—The purpose of this section
is to allow religious organizations to be program participants on
the same basis as any other nonprofit private provider without
impairing the religious character of such organizations, and without
diminishing the religious freedom of program beneficiaries.
‘‘(c) NONDISCRIMINATION AGAINST RELIGIOUS ORGANIZATIONS.—
‘‘(1) ELIGIBILITY AS PROGRAM PARTICIPANTS.—Religious
organizations are eligible to be program participants on the
same basis as any other nonprofit private organization as long
as the programs are implemented consistent with the Establishment Clause and Free Exercise Clause of the First Amendment
to the United States Constitution. Nothing in this Act shall
be construed to restrict the ability of the Federal Government,
or a State or local government receiving funds under such
programs, to apply to religious organizations the same eligibility conditions in designated programs as are applied to any
other nonprofit private organization.
‘‘(2) NONDISCRIMINATION.—Neither the Federal Government nor a State or local government receiving funds under
designated programs shall discriminate against an organization
that is or applies to be a program participant on the basis
that the organization has a religious character.
‘‘(d) RELIGIOUS CHARACTER AND FREEDOM.—
‘‘(1) RELIGIOUS ORGANIZATIONS.—Except as provided in this
section, any religious organization that is a program participant
shall retain its independence from Federal, State, and local
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–621
government, including such organization’s control over the definition, development, practice, and expression of its religious
beliefs.
‘‘(2) ADDITIONAL SAFEGUARDS.—Neither the Federal
Government nor a State shall require a religious organization
to—
‘‘(A) alter its form of internal governance; or
‘‘(B) remove religious art, icons, scripture, or other
symbols,
in order to be a program participant.
‘‘(e) EMPLOYMENT PRACTICES.—Nothing in this section shall
be construed to modify or affect the provisions of any other Federal
or State law or regulation that relates to discrimination in employment. A religious organization’s exemption provided under section
702 of the Civil Rights Act of 1964 regarding employment practices
shall not be affected by its participation in, or receipt of funds
from, a designated program.
‘‘(f ) RIGHTS OF PROGRAM BENEFICIARIES.—
‘‘(1) IN GENERAL.—If an individual who is a program beneficiary or a prospective program beneficiary objects to the religious character of a program participant, within a reasonable
period of time after the date of such objection such program
participant shall refer such individual to, and the appropriate
Federal, State, or local government that administers a designated program or is a program participant shall provide to
such individual (if otherwise eligible for such services), program
services that—
‘‘(A) are from an alternative provider that is accessible
to, and has the capacity to provide such services to, such
individual; and
‘‘(B) have a value that is not less than the value
of the services that the individual would have received
from the program participant to which the individual had
such objection.
Upon referring a program beneficiary to an alternative provider,
the program participant shall notify the appropriate Federal,
State, or local government agency that administers the program
of such referral.
‘‘(2) NOTICES.—Program participants, public agencies that
refer individuals to designated programs, and the appropriate
Federal, State, or local governments that administer designated
programs or are program participants shall ensure that notice
is provided to program beneficiaries or prospective program
beneficiaries of their rights under this section.
‘‘(3) ADDITIONAL REQUIREMENTS.—A program participant
making a referral pursuant to paragraph (1) shall—
‘‘(A) prior to making such referral, consider any list
that the State or local government makes available of
entities in the geographic area that provide program services; and
‘‘(B) ensure that the individual makes contact with
the alternative provider to which the individual is referred.
‘‘(4) NONDISCRIMINATION.—A religious organization that is
a program participant shall not in providing program services
or engaging in outreach activities under designated programs
discriminate against a program beneficiary or prospective program beneficiary on the basis of religion or religious belief.
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114 STAT. 2763A–622
PUBLIC LAW 106–554—APPENDIX G
‘‘(g) FISCAL ACCOUNTABILITY.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
any religious organization that is a program participant shall
be subject to the same regulations as other recipients of awards
of Federal financial assistance to account, in accordance with
generally accepted auditing principles, for the use of the funds
provided under such awards.
‘‘(2) LIMITED AUDIT.—With respect to the award involved,
a religious organization that is a program participant shall
segregate Federal amounts provided under award into a separate account from non-Federal funds. Only the award funds
shall be subject to audit by the government.
‘‘(h) COMPLIANCE.—With respect to compliance with this section
by an agency, a religious organization may obtain judicial review
of agency action in accordance with chapter 7 of title 5, United
States Code.
‘‘SEC. 583. LIMITATIONS ON USE OF FUNDS FOR CERTAIN PURPOSES.
‘‘No funds provided under a designated program shall be
expended for sectarian worship, instruction, or proselytization.
‘‘SEC. 584. EDUCATIONAL REQUIREMENTS FOR PERSONNEL IN DRUG
TREATMENT PROGRAMS.
‘‘(a) FINDINGS.—The Congress finds that—
‘‘(1) establishing unduly rigid or uniform educational qualification for counselors and other personnel in drug treatment
programs may undermine the effectiveness of such programs;
and
‘‘(2) such educational requirements for counselors and other
personnel may hinder or prevent the provision of needed drug
treatment services.
‘‘(b) NONDISCRIMINATION.—In determining whether personnel
of a program participant that has a record of successful drug treatment for the preceding three years have satisfied State or local
requirements for education and training, a State or local government shall not discriminate against education and training provided
to such personnel by a religious organization, so long as such
education and training includes basic content substantially equivalent to the content provided by nonreligious organizations that
the State or local government would credit for purposes of determining whether the relevant requirements have been satisfied.’’.
PART II—ADVISORY COUNCIL ON COMMUNITY
RENEWAL
SEC. 151. SHORT TITLE.
This part may be cited as the ‘‘Advisory Council on Community
Renewal Act’’.
SEC. 152. ESTABLISHMENT.
There is established an advisory council to be known as the
‘‘Advisory Council on Community Renewal’’ (in this part referred
to as the ‘‘Advisory Council’’).
SEC. 153. DUTIES OF ADVISORY COUNCIL.
The Advisory Council shall advise the Secretary of Housing
and Urban Development (in this part referred to as the ‘‘Secretary’’)
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–623
on the designation of renewal communities pursuant to the amendment made by section 101 and on the exercise of any other authority
granted to the Secretary pursuant to the amendments made by
this title.
SEC. 154. MEMBERSHIP.
(a) NUMBER AND APPOINTMENT.—The Advisory Council shall
be composed of 7 members appointed by the Secretary.
(b) CHAIRPERSON.—The Chairperson of the Advisory Council
(in this part referred to as the ‘‘Chairperson’’) shall be designated
by the Secretary at the time of the appointment.
(c) TERMS.—Each member shall be appointed for the life of
the Advisory Council.
(d) BASIC PAY.—
(1) CHAIRPERSON.—The Chairperson shall be paid at a
rate equal to the daily rate of basic pay for level III of the
Executive Schedule for each day (including travel time) during
which the Chairperson is engaged in the actual performance
of duties vested in the Advisory Council.
(2) OTHER MEMBERS.—Members other than the Chairperson
shall each be paid at a rate equal to the daily rate of basic
pay for level IV of the Executive Schedule for each day (including travel time) during which they are engaged in the actual
performance of duties vested in the Advisory Council.
(e) TRAVEL EXPENSES.—Each member shall receive travel
expenses, including per diem in lieu of subsistence, in accordance
with applicable provisions under subchapter I of chapter 57 of
title 5, United States Code.
(f ) QUORUM.—Four members of the Advisory Council shall constitute a quorum but a lesser number may hold hearings.
(g) MEETINGS.—The Advisory Council shall meet at the call
of the Secretary or the Chairperson.
SEC. 155. POWERS OF ADVISORY COUNCIL.
(a) HEARINGS AND SESSIONS.—The Advisory Council may, for
the purpose of carrying out this part, hold hearings, sit and act
at times and places, take testimony, and receive evidence as the
Advisory Council considers appropriate. The Advisory Council may
administer oaths or affirmations to witnesses appearing before it.
(b) POWERS OF MEMBERS AND AGENTS.—Any member or agent
of the Advisory Council may, if authorized by the Advisory Council,
take any action which the Advisory Council is authorized to take
by this section.
(c) OBTAINING OFFICIAL DATA.—The Advisory Council may
secure directly from any department or agency of the United States
information necessary to enable it to carry out this part. Upon
request of the Chairperson of the Advisory Council, the head of
that department or agency shall furnish that information to the
Advisory Council.
SEC. 156. REPORTS.
(a) ANNUAL REPORTS.—The Advisory Council shall submit to
the Secretary an annual report for each fiscal year.
(b) INTERIM REPORTS.—The Advisory Council may submit to
the Secretary such interim reports as the Advisory Council considers
appropriate.
(c) FINAL REPORT.—The Advisory Council shall transmit a final
report to the Secretary not later September 30, 2003. The final
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114 STAT. 2763A–624
PUBLIC LAW 106–554—APPENDIX G
report shall contain a detailed statement of the findings and conclusions of the Advisory Council, together with any recommendations
for legislative or administrative action that the Advisory Council
considers appropriate.
SEC. 157. TERMINATION.
(a) IN GENERAL.—The Advisory Council shall terminate 30
days after submitting its final report under section 156(c).
(b) EXTENSION.—Notwithstanding subsection (a), the Secretary
may postpone the termination of the Advisory Council for a period
not to exceed 3 years after the Advisory Council submits its final
report under section 156(c).
SEC. 158. APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.
The Federal Advisory Committee Act (5 U.S.C. App.) shall
not apply to the Advisory Council.
SEC. 159. RESOURCES.
The Secretary shall provide to the Advisory Council appropriate
resources so that the Advisory Council may carry out its duties
and fuctions under this part.
SEC. 160. EFFECTIVE DATE.
This part shall be effective 30 days after the date of its enactment.
Subtitle F—Other Provisions
SEC. 161. ACCELERATION OF PHASE-IN OF INCREASE IN VOLUME CAP
ON PRIVATE ACTIVITY BONDS.
(a) IN GENERAL.—Paragraphs (1) and (2) of section 146(d) (relating to State ceiling) are amended to read as follows:
‘‘(1) IN GENERAL.—The State ceiling applicable to any State
for any calendar year shall be the greater of—
‘‘(A) an amount equal to $75 ($62.50 in the case of
calendar year 2001) multiplied by the State population,
or
‘‘(B) $225,000,000 ($187,500,000 in the case of calendar
year 2001).
‘‘(2) COST-OF-LIVING ADJUSTMENT.—In the case of a calendar
year after 2002, each of the dollar amounts contained in paragraph (1) shall be increased by an amount equal to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment determined under
section 1(f )(3) for such calendar year by substituting ‘calendar year 2001’ for ‘calendar year 1992’ in subparagraph
(B) thereof.
If any increase determined under the preceding sentence is
not a multiple of $5 ($5,000 in the case of the dollar amount
in paragraph (1)(B)), such increase shall be rounded to the
nearest multiple thereof.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to calendar years after 2000.
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PUBLIC LAW 106–554—APPENDIX G
SEC.
162.
MODIFICATIONS TO EXPENSING
REMEDIATION COSTS.
OF
114 STAT. 2763A–625
ENVIRONMENTAL
(a) EXPENSING NOT LIMITED TO SITES IN TARGETED AREAS.—
Subsection (c) of section 198 is amended to read as follows:
‘‘(c) QUALIFIED CONTAMINATED SITE.—For purposes of this
section—
‘‘(1) IN GENERAL.—The term ‘qualified contaminated site’
means any area—
‘‘(A) which is held by the taxpayer for use in a trade
or business or for the production of income, or which is
property described in section 1221(a)(1) in the hands of
the taxpayer, and
‘‘(B) at or on which there has been a release (or threat
of release) or disposal of any hazardous substance.
‘‘(2) NATIONAL PRIORITIES LISTED SITES NOT INCLUDED.—
Such term shall not include any site which is on, or proposed
for, the national priorities list under section 105(a)(8)(B) of
the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980 (as in effect on the date of the
enactment of this section).
‘‘(3) TAXPAYER MUST RECEIVE STATEMENT FROM STATE
ENVIRONMENTAL AGENCY.—An area shall be treated as a qualified contaminated site with respect to expenditures paid or
incurred during any taxable year only if the taxpayer receives
a statement from the appropriate agency of the State in which
such area is located that such area meets the requirement
of paragraph (1)(B).
‘‘(4) APPROPRIATE STATE AGENCY.—For purposes of paragraph (3), the chief executive officer of each State may, in
consultation with the Administrator of the Environmental
Protection Agency, designate the appropriate State environmental agency within 60 days of the date of the enactment
of this section. If the chief executive officer of a State has
not designated an appropriate environmental agency within
such 60-day period, the appropriate environmental agency for
such State shall be designated by the Administrator of the
Environmental Protection Agency.’’.
(b) EXTENSION OF TERMINATION DATE.—Subsection (h) of section 198 is amended by striking ‘‘2001’’ and inserting ‘‘2003’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to expenditures paid or incurred after the date of the
enactment of this Act.
SEC. 163. EXTENSION OF DC HOMEBUYER TAX CREDIT.
Section 1400C(i) (relating to application of section) is amended
by striking ‘‘2002’’ and inserting ‘‘2004’’.
SEC. 164. EXTENSION OF DC ZONE THROUGH 2003.
(a) IN GENERAL.—The following provisions are amended by
striking ‘‘2002’’ each place it appears and inserting ‘‘2003’’:
(1) Section 1400(f ).
(2) Section 1400A(b).
(b) ZERO CAPITAL GAINS RATE.—Section 1400B (relating to zero
percent capital gains rate) is amended—
(1) by striking ‘‘2003’’ each place it appears and inserting
‘‘2004’’, and
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114 STAT. 2763A–626
PUBLIC LAW 106–554—APPENDIX G
(2) by striking ‘‘2007’’ each place it appears and inserting
‘‘2008’’.
SEC. 165. EXTENSION OF ENHANCED DEDUCTION FOR CORPORATE
DONATIONS OF COMPUTER TECHNOLOGY.
(a) EXPANSION OF COMPUTER TECHNOLOGY DONATIONS TO PUBLIBRARIES.—
(1) IN GENERAL.—Paragraph (6) of section 170(e) (relating
to special rule for contributions of computer technology and
equipment for elementary or secondary school purposes) is
amended by striking ‘‘qualified elementary or secondary educational contribution’’ each place it occurs in the headings and
text and inserting ‘‘qualified computer contribution’’.
(2) EXPANSION OF ELIGIBLE DONEES.—Clause (i) of section
170(e)(6)(B) (relating to qualified elementary or secondary educational contribution) is amended by striking ‘‘or’’ at the end
of subclause (I), by adding ‘‘or’’ at the end of subclause (II),
and by inserting after subclause (II) the following new subclause:
‘‘(III) a public library (within the meaning of
section 213(2)(A) of the Library Services and Technology Act (20 U.S.C. 9122(2)(A)), as in effect on
the date of the enactment of the Community
Renewal Tax Relief Act of 2000, established and
maintained by an entity described in subsection
(c)(1),’’.
(3) EXTENSION OF DONATION PERIOD.—Clause (ii) of section
170(e)(6)(B) is amended by striking ‘‘2 years’’ and inserting
‘‘3 years’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 170(e)(6)(B)(iv) is amended by striking ‘‘in any
grades of the K–12’’.
(2) The heading of paragraph (6) of section 170(e) is amended by striking ‘‘ELEMENTARY OR SECONDARY SCHOOL PURPOSES’’
and inserting ‘‘EDUCATIONAL PURPOSES’’.
(c) EXTENSION OF DEDUCTION.—Section 170(e)(6)(F) (relating
to termination) is amended by striking ‘‘December 31, 2000’’ and
inserting ‘‘December 31, 2003’’.
(d) STANDARDS AS TO FUNCTIONALITY AND SUITABILITY.—
Subparagraph (B) of section 170(e)(6) is amended by striking ‘‘and’’
at the end of clause (vi), by striking the period at the end of
clause (vii) and inserting ‘‘, and’’, and by adding at the end the
following new clause:
‘‘(viii) the property meets such standards, if any,
as the Secretary may prescribe by regulation to assure
that the property meets minimum functionality and
suitability standards for educational purposes.’’.
(e) DONATIONS OF COMPUTERS REACQUIRED BY MANUFACTURER.—Paragraph (6) of section 170(e) is further amended by
redesignating subparagraphs (D), (E), and (F) as subparagraphs
(E), (F), and (G), respectively, and by inserting after subparagraph
(C) the following new subparagraph:
‘‘(D) DONATIONS OF PROPERTY REACQUIRED BY MANUFACTURER.—In the case of property which is reacquired
by the person who constructed the property—
‘‘(i) subparagraph (B)(ii) shall be applied to a contribution of such property by such person by taking
LIC
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–627
into account the date that the original construction
of the property was substantially completed, and
‘‘(ii) subparagraph (B)(iii) shall not apply to such
contribution.’’.
(f ) EFFECTIVE DATE.—The amendments made by this section
shall apply to contributions made after December 31, 2000.
SEC. 166. TREATMENT OF INDIAN TRIBAL GOVERNMENTS UNDER FEDERAL UNEMPLOYMENT TAX ACT.
(a) IN GENERAL.—Section 3306(c)(7) (defining employment) is
amended—
(1) by inserting ‘‘or in the employ of an Indian tribe,’’
after ‘‘service performed in the employ of a State, or any political subdivision thereof,’’; and
(2) by inserting ‘‘or Indian tribes’’ after ‘‘wholly owned
by one or more States or political subdivisions’’.
(b) PAYMENTS IN LIEU OF CONTRIBUTIONS.—Section 3309 (relating to State law coverage of services performed for nonprofit
organizations or governmental entities) is amended—
(1) in subsection (a)(2) by inserting ‘‘, including an Indian
tribe,’’ after ‘‘the State law shall provide that a governmental
entity’’;
(2) in subsection (b)(3)(B) by inserting ‘‘, or of an Indian
tribe’’ after ‘‘of a State or political subdivision thereof’’;
(3) in subsection (b)(3)(E) by inserting ‘‘or tribal’’ after
‘‘the State’’; and
(4) in subsection (b)(5) by inserting ‘‘or of an Indian tribe’’
after ‘‘an agency of a State or political subdivision thereof’’.
(c) STATE LAW COVERAGE.—Section 3309 (relating to State law
coverage of services performed for nonprofit organizations or governmental entities) is amended by adding at the end the following
new subsection:
‘‘(d) ELECTION BY INDIAN TRIBE.—The State law shall provide
that an Indian tribe may make contributions for employment as
if the employment is within the meaning of section 3306 or make
payments in lieu of contributions under this section, and shall
provide that an Indian tribe may make separate elections for itself
and each subdivision, subsidiary, or business enterprise wholly
owned by such Indian tribe. State law may require a tribe to
post a payment bond or take other reasonable measures to assure
the making of payments in lieu of contributions under this section.
Notwithstanding the requirements of section 3306(a)(6), if, within
90 days of having received a notice of delinquency, a tribe fails
to make contributions, payments in lieu of contributions, or payment
of penalties or interest (at amounts or rates comparable to those
applied to all other employers covered under the State law) assessed
with respect to such failure, or if the tribe fails to post a required
payment bond, then service for the tribe shall not be excepted
from employment under section 3306(c)(7) until any such failure
is corrected. This subsection shall apply to an Indian tribe within
the meaning of section 4(e) of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b(e)).’’.
(d) DEFINITIONS.—Section 3306 (relating to definitions) is
amended by adding at the end the following new subsection:
‘‘(u) INDIAN TRIBE.—For purposes of this chapter, the term
‘Indian tribe’ has the meaning given to such term by section 4(e)
of the Indian Self-Determination and Education Assistance Act
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114 STAT. 2763A–628
PUBLIC LAW 106–554—APPENDIX G
(25 U.S.C. 450b(e)), and includes any subdivision, subsidiary, or
business enterprise wholly owned by such an Indian tribe.’’.
(e) EFFECTIVE DATE; TRANSITION RULE.—
(1) EFFECTIVE DATE.—The amendments made by this section shall apply to service performed on or after the date
of the enactment of this Act.
(2) TRANSITION RULE.—For purposes of the Federal
Unemployment Tax Act, service performed in the employ of
an Indian tribe (as defined in section 3306(u) of the Internal
Revenue Code of 1986 (as added by this section)) shall not
be treated as employment (within the meaning of section 3306
of such Code) if—
(A) it is service which is performed before the date
of the enactment of this Act and with respect to which
the tax imposed under the Federal Unemployment Tax
Act has not been paid, and
(B) such Indian tribe reimburses a State unemployment fund for unemployment benefits paid for service
attributable to such tribe for such period.
TITLE II—TWO-YEAR EXTENSION OF
AVAILABILITY OF MEDICAL SAVINGS
ACCOUNTS
SEC. 201. TWO-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS.
(a) IN GENERAL.—Paragraphs (2) and (3)(B) of section 220(i)
(defining cut-off year) are each amended by striking ‘‘2000’’ each
place it appears and inserting ‘‘2002’’.
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (2) of section 220( j) is amended—
(A) by striking ‘‘1998 or 1999’’ each place it appears
and inserting ‘‘1998, 1999, or 2001’’,
(B) by striking ‘‘600,000 (750,000 in the case of 1999)’’
and inserting ‘‘750,000 (600,000 in the case of 1998)’’, and
(C) by inserting after subparagraph (B) the following
new subparagraph:
‘‘(C) NO LIMITATION FOR 2000.—The numerical limitation shall not apply for 2000.’’.
(2) Subparagraph (A) of section 220( j)(4) is amended by
striking ‘‘and 1999’’ and inserting ‘‘1999, and 2001’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 202. MEDICAL SAVINGS ACCOUNTS RENAMED AS ARCHER MSAS.
(a) IN GENERAL.—The following provisions are amended by
striking ‘‘medical savings account’’ each place it appears in the
text and inserting ‘‘Archer MSA’’:
(1) Section 26(b)(2)(Q).
(2) Section 106(b).
(3) Section 138(b).
(4) Section 220.
(5) Section 848(e)(1)(B)(iv).
(6) Subsections (a)(2) and (d) of section 4973.
(7) Subsections (c)(4) and (e)(1)(D) of section 4975.
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–629
(8) Subsections (a) and (d)(2)(B) of section 4980E.
(9) Section 6051(a)(11).
(b) OTHER AMENDMENTS.—
(1) Paragraph (16) of section 62(a) is amended to read
as follows:
‘‘(16) ARCHER MSAS.—The deduction allowed by section
220.’’.
(2) The following provisions are each amended by striking
‘‘medical savings accounts’’ each place it appears in the text
and inserting ‘‘Archer MSAs’’:
(A) Paragraphs (4) and (7) of section 106(b).
(B) Subsections (c)(1)(D), (e)(2), (f )(3)(A), (i)(4)(B), and
( j) of section 220.
(C) Section 4973(d).
(D) Subsections (b) and (d)(1) of section 4980E.
(E) Section 6693(a)(2)(B).
(3) Paragraph (1) of section 220(d) is amended by inserting
‘‘as a medical savings account’’ after ‘‘United States’’.
(4) The heading for section 220(d) is amended by striking
‘‘MEDICAL SAVINGS ACCOUNT’’ and inserting ‘‘ARCHER MSA’’.
(5) The headings for sections 220(d)(1) and 3231(e)(10) are
each amended by striking ‘‘MEDICAL SAVINGS ACCOUNT’’ and
inserting ‘‘ARCHER MSA’’.
(6) The headings for sections 106(b), 138(f ), 220(i), and
4973(d) are each amended by striking ‘‘MEDICAL SAVINGS
ACCOUNTS’’ and inserting ‘‘ARCHER MSAS’’.
(7) The headings for section 220(c)(1)(C) and 4975(c)(4)
are each amended by striking ‘‘MEDICAL SAVINGS ACCOUNTS’’
and inserting ‘‘ARCHER MSAS’’.
(8) The section heading for section 220 is amended to
read as follows:
‘‘SEC. 220. ARCHER MSAS.’’.
(9) The item relating to section 220 in the table of sections
for part VII of subchapter B of chapter 1 is amended to read
as follows:
‘‘Sec. 220. Archer MSAs.’’.
(10) The provisions amended by the preceding provisions
of this section are further amended by striking ‘‘a Archer’’
each place it appears and inserting ‘‘an Archer’’.
(11) Section 220(e)(1) is further amended by striking ‘‘A
Archer’’ and inserting ‘‘An Archer’’.
TITLE III—ADMINISTRATIVE AND
TECHNICAL PROVISIONS
Subtitle A—Administrative Provisions
SEC. 301. EXEMPTION OF CERTAIN REPORTING REQUIREMENTS.
Section 3003(a)(1) of the Federal Reports Elimination and Sunset Act of 1995 (31 U.S.C. 1113 note) shall not apply to any report
required to be submitted under any of the following provisions
of law:
(1) Section 13031(f ) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(f )).
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114 STAT. 2763A–630
PUBLIC LAW 106–554—APPENDIX G
(2) Section 16(c) of the Foreign Trade Zones Act (19 U.S.C.
81p(c)).
(3) The following provisions of the Tariff Act of 1930:
(A) Section 330(c)(1) (19 U.S.C. 1330(c)(1)).
(B) Section 607(c) (19 U.S.C. 1607(c)).
(4) Section 5 of the International Coffee Agreement Act
of 1980 (19 U.S.C. 1356n).
(5) Section 351(a)(2) of the Trade Expansion Act of 1962
(19 U.S.C. 1981(a)(2)).
(6) Section 502 of the Automotive Products Trade Act of
1965 (19 U.S.C. 2032).
(7) Section 3131 of the Customs Enforcement Act of 1986
(19 U.S.C. 2081).
(8) The following provisions of the Trade Act of 1974 (19
U.S.C. 2101 et seq.):
(A)
Section
102(b)(4)(A)(ii)(I)
(19
U.S.C.
2112(b)(4)(A)(ii)(I)).
(B) Section 102(e)(1) (19 U.S.C. 2112(e)(1)).
(C) Section 102(e)(2) (19 U.S.C. 2112(e)(2)).
(D) Section 104(d) (19 U.S.C. 2114(d)).
(E) Section 125(e) (19 U.S.C. 2135(e)).
(F) Section 135(e)(1) (19 U.S.C. 2155(e)(1)).
(G) Section 141(c) (19 U.S.C. 2171(c)).
(H) Section 162 (19 U.S.C. 2212).
(I) Section 163(b) (19 U.S.C. 2213(b)).
(J) Section 163(c) (19 U.S.C. 2213(c)).
(K) Section 203(b) (19 U.S.C. 2253(b)).
(L) Section 302(b)(2)(C) (19 U.S.C. 2412(b)(2)(C)).
(M) Section 303 (19 U.S.C. 2413).
(N) Section 309 (19 U.S.C. 2419).
(O) Section 407(a) (19 U.S.C. 2437(a)).
(P) Section 502(f ) (19 U.S.C. 2462(f )).
(Q) Section 504 (19 U.S.C. 2464).
(9) The following provisions of the Trade Agreements Act
of 1979 (19 U.S.C. 2501 et seq.):
(A) Section 2(b) (19 U.S.C. 2503(b)).
(B) Section 3(c) (19 U.S.C. 2504(c)).
(C) Section 305(c) (19 U.S.C. 2515(c)).
(10) Section 303(g)(1) of the Convention on Cultural Property Implementation Act (19 U.S.C. 2602(g)(1)).
(11) The following provisions of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2701 et seq.):
(A) Section 212(a)(1)(A) (19 U.S.C. 2702(a)(1)(A)).
(B) Section 212(a)(2) (19 U.S.C. 2702(a)(2)).
(12) The following provisions of the Omnibus Trade and
Competitiveness Act of 1988 (19 U.S.C. 2901 et seq.):
(A) Section 1102 (19 U.S.C. 2902).
(B) Section 1103 (19 U.S.C. 2903).
(C) Section 1206(b) (19 U.S.C. 3006(b)).
(13) Section 123(a) of the Customs and Trade Act of 1990
(Public Law 101–382) (19 U.S.C. 2083).
(14) Section 243(b)(2) of the Caribbean Basin Economic
Recovery Expansion Act of 1990 (Public Law 101–382).
(15) The following provisions of the Internal Revenue Code
of 1986:
(A) Section 6103(p)(5).
(B) Section 7608.
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–631
(C) Section 7802(f )(3).
(D) Section 8022(3).
(E) Section 9602(a).
(16) The following provisions relating to the revenue laws
of the United States:
(A) Section 1552(c) of the Tax Reform Act of 1986
(100 Stat. 2753).
(B) Section 231 of the Deficit Reduction Act of 1984
(26 U.S.C. 801 note).
(C) Section 208 of the Tax Treatment Extension Act
of 1977 (26 U.S.C. 911 note).
(D) Section 7105 of the Technical and Miscellaneous
Revenue Act of 1988 (45 U.S.C. 369).
(17) Section 4008 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1308).
(18) Section 426 of the Black Lung Benefits Act (30 U.S.C.
936(b)).
(19) Section 7502(g) of title 31, United States Code.
(20) The following provisions of the Social Security Act:
(A) Section 215(i)(2)(C)(i) (42 U.S.C. 415(i)(2)(C)(i)).
(B) Section 221(i)(2) (42 U.S.C. 421(i)(2)).
(C) Section 221(i)(3) (42 U.S.C. 421(i)(3)).
(D) Section 233(e)(1) (42 U.S.C. 433(e)(1)).
(E) Section 452(a)(10) (42 U.S.C. 652(a)(10)).
(F) Section 452(g)(3)(B) (42 U.S.C. 652(g)(3)(B)).
(G) Section 506(a)(1) (42 U.S.C. 706(a)).
(H) Section 908 (42 U.S.C. 1108).
(I) Section 1114(f ) (42 U.S.C. 1314(f )).
(J) Section 1120 (42 U.S.C. 1320).
(K) Section 1161 (42 U.S.C. 1320c–10).
(L) Section 1875(b) (42 U.S.C. 1395ll(b)).
(M) Section 1881 (42 U.S.C. 1395rr).
(N) Section 1882 (42 U.S.C. 1395ss(f )(2)).
(21) Section 104(b) of the Social Security Independence
and Program Improvements Act of 1994 (42 USC 904 note).
(22) Section 10 of the Railroad Retirement Act of 1937
(45 U.S.C. 231f ).
(23) The following provisions of the Railroad Retirement
Act of 1974:
(A) Section 22(a)(1) (45 U.S.C. 231u(a)(1)).
(B) Section 22(b)(1) (45 U.S.C. 231u(b)(1)).
(24) Section 502 of the Railroad Retirement Solvency Act
of 1983 (45 U.S.C. 231f-1).
(25) Section 47121(c) of title 49, United States Code.
(26) The following provisions of the Omnibus Budget Reconciliation Act of 1987 (Public Law 100–203; 101 Stat. 1330182):
(A) Section 4007(c)(4) (42 U.S.C. 1395ww note).
(B) Section 4079 (42 U.S.C. 1395mm note).
(C) Section 4205 (42 U.S.C. 1395i–3 note).
(D) Section 4215 (42 U.S.C. 1396r note).
(27) The following provisions of the Inspector General Act
of 1978 (Public Law 95–452):
(A) Section 5(b).
(B) Section 5(d).
(28) The following provisions of the Public Health Service
Act:
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114 STAT. 2763A–632
PUBLIC LAW 106–554—APPENDIX G
(A) In section 308(a) (42 U.S.C. 242m(a)), subparagraphs (A), (B), (C), and (D) of paragraph (1).
(B) Section 403 (42 U.S.C. 283).
(29) Section 404 of the Health Services and Centers Amendments of 1978 (42 U.S.C. 242p) (Public Law 95–626).
(30) The following provisions of the Older Americans Act
of 1965:
(A) Section 206(d) (42 U.S.C. 3017(d)).
(B) Section 207 (42 U.S.C. 3018).
(31) Section 308 of the Age Discrimination Act of 1975
(42 U.S.C. 6106a(b)).
(32) Section 509(c)(3) of the Americans with Disabilities
Act 0f 1990 (42 U.S.C. 12209(c)(3)).
(33) Section 4207(f ) of the Omnibus Budget Reconciliation
Act of 1990 (42 U.S.C. 1395b–1 note).
SEC. 302. EXTENSION OF DEADLINES FOR IRS COMPLIANCE WITH CERTAIN NOTICE REQUIREMENTS.
(a) ANNUAL INSTALLMENT AGREEMENT NOTICE.—Section 3506
of the Internal Revenue Service Restructuring and Reform Act
of 1998 is amended by striking ‘‘July 1, 2000’’ and inserting
‘‘September 1, 2001’’.
(b) NOTICE REQUIREMENTS RELATING TO COMPUTATION OF PENALTY.—Subsection (c) of section 3306 of the Internal Revenue Service Restructuring and Reform Act of 1998 is amended—
(1) by striking ‘‘December 31, 2000’’ and inserting ‘‘June
30, 2001’’, and
(2) by adding at the end the following: ‘‘In the case of
any notice of penalty issued after June 30, 2001, and before
July 1, 2003, the requirements of section 6751(a) of the Internal
Revenue Code of 1986 shall be treated as met if such notice
contains a telephone number at which the taxpayer can request
a copy of the taxpayer’s assessment and payment history with
respect to such penalty.’’.
(c) NOTICE REQUIREMENTS RELATING TO INTEREST IMPOSED.—
Subsection (c) of section 3308 of the Internal Revenue Service
Restructuring and Reform Act of 1998 is amended—
(1) by striking ‘‘December 31, 2000’’ and inserting ‘‘June
30, 2001’’, and
(2) by adding at the end the following: ‘‘In the case of
any notice issued after June 30, 2001, and before July 1,
2003, to which section 6631 of the Internal Revenue Code
of 1986 applies, the requirements of section 6631 of such Code
shall be treated as met if such notice contains a telephone
number at which the taxpayer can request a copy of the taxpayer’s payment history relating to interest amounts included
in such notice.’’.
SEC. 303. EXTENSION OF AUTHORITY FOR UNDERCOVER OPERATIONS.
Paragraph (6), and the last sentence, of section 7608(c) are
each amended by striking ‘‘January 1, 2001’’ and inserting ‘‘January
1, 2006’’.
SEC. 304. CONFIDENTIALITY OF CERTAIN DOCUMENTS RELATING TO
CLOSING AND SIMILAR AGREEMENTS AND TO AGREEMENTS WITH FOREIGN GOVERNMENTS.
(a) CLOSING AND SIMILAR AGREEMENTS TREATED AS RETURN
INFORMATION.—Paragraph (2) of section 6103(b) (defining return
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–633
information) is amended by striking ‘‘and’’ at the end of subparagraph (B), by inserting ‘‘and’’ at the end of subparagraph (C),
and by inserting after subparagraph (C) the following new subparagraph:
‘‘(D) any agreement under section 7121, and any similar agreement, and any background information related
to such an agreement or request for such an agreement,’’.
(b) AGREEMENTS WITH FOREIGN GOVERNMENTS.—
(1) IN GENERAL.—Subchapter B of chapter 61 (relating to
miscellaneous provisions) is amended by inserting after section
6104 the following new section:
‘‘SEC. 6105. CONFIDENTIALITY OF INFORMATION ARISING UNDER
TREATY OBLIGATIONS.
‘‘(a) IN GENERAL.—Tax convention information shall not be
disclosed.
‘‘(b) EXCEPTIONS.—Subsection (a) shall not apply—
‘‘(1) to the disclosure of tax convention information to persons or authorities (including courts and administrative bodies)
which are entitled to such disclosure pursuant to a tax convention,
‘‘(2) to any generally applicable procedural rules regarding
applications for relief under a tax convention, or
‘‘(3) in any case not described in paragraphs (1) or (2),
to the disclosure of any tax convention information not relating
to a particular taxpayer if the Secretary determines, after consultation with each other party to the tax convention, that
such disclosure would not impair tax administration.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) TAX CONVENTION INFORMATION.—The term ‘tax convention information’ means any—
‘‘(A) agreement entered into with the competent
authority of one or more foreign governments pursuant
to a tax convention,
‘‘(B) application for relief under a tax convention,
‘‘(C) any background information related to such agreement or application,
‘‘(D) document implementing such agreement, and
‘‘(E) any other information exchanged pursuant to a
tax convention which is treated as confidential or secret
under the tax convention.
‘‘(2) TAX CONVENTION.—The term ‘tax convention’ means—
‘‘(A) any income tax or gift and estate tax convention,
or
‘‘(B) any other convention or bilateral agreement
(including multilateral conventions and agreements and
any agreement with a possession of the United States)
providing for the avoidance of double taxation, the prevention of fiscal evasion, nondiscrimination with respect to
taxes, the exchange of tax relevant information with the
United States, or mutual assistance in tax matters.
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114 STAT. 2763A–634
PUBLIC LAW 106–554—APPENDIX G
‘‘(d) CROSS REFERENCES.—
‘‘For penalties for the unauthorized disclosure of tax convention
information which is return or return information, see sections
7213, 7213A, and 7431.’’.
(2) CLERICAL AMENDMENT.—The table of sections for subchapter B of chapter 61 is amended by inserting after the
item relating to section 6104 the following new item:
‘‘Sec. 6105. Confidentiality of information arising under treaty obligations.’’.
(c) EXCEPTION FROM PUBLIC INSPECTION AS WRITTEN DETERMINATION.—
(1) CLOSING AND SIMILAR AGREEMENTS.—Paragraph (1) of
section 6110(b) is amended to read as follows:
‘‘(1) WRITTEN DETERMINATION.—
‘‘(A) IN GENERAL.—The term ‘written determination’
means a ruling, determination letter, technical advice
memorandum, or Chief Counsel advice.
‘‘(B) EXCEPTIONS.—Such term shall not include any
matter referred to in subparagraph (C) or (D) of section
6103(b)(2).’’.
(2) AGREEMENTS WITH FOREIGN GOVERNMENTS.—Paragraph
(1) of section 6110(l) is amended by inserting ‘‘or 6105’’ after
‘‘6104’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 305. INCREASE IN THRESHOLD FOR JOINT COMMITTEE REPORTS
ON REFUNDS AND CREDITS.
(a) GENERAL RULE.—Subsections (a) and (b) of section 6405
are each amended by striking ‘‘$1,000,000’’ and inserting
‘‘$2,000,000’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect on the date of the enactment of this Act, except
that such amendment shall not apply with respect to any refund
or credit with respect to a report that has been made before such
date of the enactment under section 6405 of the Internal Revenue
Code of 1986.
SEC. 306. TREATMENT OF MISSING CHILDREN WITH RESPECT TO CERTAIN TAX BENEFITS.
(a) IN GENERAL.—Subsection (c) of section 151 (relating to
additional exemption for dependents) is amended by adding at
the end the following new paragraph:
‘‘(6) TREATMENT OF MISSING CHILDREN.—
‘‘(A) IN GENERAL.—Solely for the purposes referred to
in subparagraph (B), a child of the taxpayer—
‘‘(i) who is presumed by law enforcement authorities to have been kidnapped by someone who is not
a member of the family of such child or the taxpayer,
and
‘‘(ii) who was (without regard to this paragraph)
the dependent of the taxpayer for the portion of the
taxable year before the date of the kidnapping,
shall be treated as a dependent of the taxpayer for all
taxable years ending during the period that the child is
kidnapped.
‘‘(B) PURPOSES.—Subparagraph (A) shall apply solely
for purposes of determining—
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–635
‘‘(i) the deduction under this section,
‘‘(ii) the credit under section 24 (relating to child
tax credit), and
‘‘(iii) whether an individual is a surviving spouse
or a head of a household (such terms are defined
in section 2).
‘‘(C) COMPARABLE TREATMENT FOR EARNED INCOME
CREDIT.—For purposes of section 32, an individual—
‘‘(i) who is presumed by law enforcement authorities to have been kidnapped by someone who is not
a member of the family of such individual or the taxpayer, and
‘‘(ii) who had, for the taxable year in which the
kidnapping occurred, the same principal place of abode
as the taxpayer for more than one-half of the portion
of such year before the date of the kidnapping,
shall be treated as meeting the requirement of section
32(c)(3)(A)(ii) with respect to a taxpayer for all taxable
years ending during the period that the individual is kidnapped.
‘‘(D) TERMINATION OF TREATMENT.—Subparagraphs (A)
and (C) shall cease to apply as of the first taxable year
of the taxpayer beginning after the calendar year in which
there is a determination that the child is dead (or, if
earlier, in which the child would have attained age 18).’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to taxable years ending after the date of the enactment
of this Act.
SEC. 307. AMENDMENTS TO STATUTES REFERENCING YIELD ON 52WEEK TREASURY BILLS.
(a) AMENDMENT TO THE ACT OF FEBRUARY 26, 1931.—Section
6 of the Act of February 26, 1931 (40 U.S.C. 258e–1) (relating
to the interest rate on compensation owed for takings of property)
is amended—
(1) in paragraph (1), by striking ‘‘the coupon issue yield
equivalent (as determined by the Secretary of the Treasury)
of the average accepted auction price for the last auction of
52 week United States Treasury bills settled immediately
before’’ and inserting ‘‘the weekly average 1-year constant maturity Treasury yield, as published by the Board of Governors
of the Federal Reserve System, for the calendar week
preceding ’’; and
(2) in paragraph (2), by striking ‘‘the coupon issue yield
equivalent (as determined by the Secretary of the Treasury)
of the average accepted auction price for the last auction of
52 week United States Treasury bills settled immediately
before’’ and inserting ‘‘the weekly average 1-year constant maturity Treasury yield, as published by the Board of Governors
of the Federal Reserve System, for the calendar week
preceding ’’.
(b) AMENDMENT TO TITLE 18, UNITED STATES CODE.—Section
3612(f )(2)(B) of title 18, United States Code (relating to the interest
rate on unpaid criminal fines and penalties of more than $2,500)
is amended by striking ‘‘the coupon issue yield equivalent (as determined by the Secretary of the Treasury) of the average accepted
auction price for the last auction of fifty-two week United States
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114 STAT. 2763A–636
PUBLIC LAW 106–554—APPENDIX G
Treasury bills settled before’’ and inserting ‘the weekly average
1-year constant maturity Treasury yield, as published by the Board
of Governors of the Federal Reserve System, for the calendar week
preceding.’’.
(c) AMENDMENT TO THE INTERNAL REVENUE CODE.—Section
995(f )(4) (relating to the interest rate on tax-deferred liability of
shareholders of domestic international sales corporations) is amended by striking ‘‘the average investment yield of United States Treasury bills with maturities of 52 weeks which were auctioned during
the 1-year period’’ and inserting ‘‘the average of the 1-year constant
maturity Treasury yields, as published by the Board of Governors
of the Federal Reserve System, for the 1-year period’’.
(d) AMENDMENTS TO TITLE 28, UNITED STATES CODE.—
(1) AMENDMENT TO SECTION 1961.—Section 1961(a) of title
28, United States Code (relating to the interest rate on money
judgments in civil cases recovered in Federal district court)
is amended by striking ‘‘the coupon issue yield equivalent (as
determined by the Secretary of the Treasury) of the average
accepted auction price for the last auction of fifty-two week
United States Treasury bills settled immediately prior to’’ and
inserting ‘‘the weekly average 1-year constant maturity Treasury yield, as published by the Board of Governors of the Federal
Reserve System, for the calendar week preceding.’’.
(2) AMENDMENT TO SECTION 2516.—Section 2516(b) of title
28, United States Code (relating to the interest rate on a
judgment against the United States affirmed by the Supreme
Court after review on petition of the United States) is amended
by striking ‘‘the coupon issue yield equivalent (as determined
by the Secretary of the Treasury) of the average accepted
auction price for the last auction of fifty-two week United
States Treasury bills settled immediately before’’ and inserting
‘‘the weekly average 1-year constant maturity Treasury yield,
as published by the Board of Governors of the Federal Reserve
System, for the calendar week preceding ’’.
SEC. 308. ADJUSTMENTS FOR CONSUMER PRICE INDEX ERROR.
(a) DETERMINATIONS BY OMB.—As soon as practicable after
the date of the enactment of this Act, the Director of the Office
of Management and Budget shall determine with respect to each
applicable Federal benefit program whether the CPI computation
error for 1999 has or will result in a shortfall in payments to
beneficiaries under such program (as compared to payments that
would have been made if the error had not occurred). As soon
as practicable after the date of the enactment of this Act, but
not later than 60 days after such date, the Director shall direct
the head of the Federal agency which administers such program
to make a payment or payments that, insofar as the Director
finds practicable and feasible—
(1) are targeted to the amount of the shortfall experienced
by individual beneficiaries, and
(2) compensate for the shortfall.
(b) COORDINATION WITH FEDERAL AGENCIES.—As soon as practicable after the date of the enactment of this Act, each Federal
agency that administers an applicable Federal benefit program
shall, in accordance with such guidelines as are issued by the
Director pursuant to this section, make an initial determination
of whether, and the extent to which, the CPI computation error
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–637
for 1999 has or will result in a shortfall in payments to beneficiaries
of an applicable Federal benefit program administered by such
agency. Not later than 30 days after such date, the head of such
agency shall submit a report to the Director and to each House
of the Congress of such determination, together with a complete
description of the nature of the shortfall.
(c) IMPLEMENTATION PURSUANT TO AGENCY REPORTS.—Upon
receipt of the report submitted by a Federal agency pursuant to
subsection (b), the Director shall review the initial determination
of the agency, the agency’s description of the nature of the shortfall,
and the compensation payments proposed by the agency. Prior
to directing payment of such payments pursuant to subsection
(a), the Director shall make appropriate adjustments (if any) in
the compensation payments proposed by the agency that the Director determines are necessary to comply with the requirements of
subsection (a) and transmit to the agency a summary report of
the review, indicating any adjustments made by the Director. The
agency shall make the compensation payments as directed by the
Director pursuant to subsection (a) in accordance with the Director’s
summary report.
(d) INCOME DISREGARD UNDER FEDERAL MEANS-TESTED BENEFIT PROGRAMS.—A payment made under this section to compensate
for a shortfall in benefits shall, in accordance with guidelines issued
by the Director pursuant to this section, be disregarded in determining income under title VIII of the Social Security Act or any
applicable Federal benefit program that is means-tested.
(e) FUNDING.—Funds otherwise available under each applicable
Federal benefit program for making benefit payments under such
program are hereby made available for making compensation payments under this section in connection with such program.
(f ) NO JUDICIAL REVIEW.—No action taken pursuant to this
section shall be subject to judicial review.
(g) DIRECTOR’S REPORT.—Not later than April 1, 2001, the
Director shall submit to each House of the Congress a report on
the activities performed by the Director pursuant to this section.
(h) DEFINITIONS.—For purposes of this section:
(1) APPLICABLE FEDERAL BENEFIT PROGRAM.—The term
‘‘applicable Federal benefit program’’ means any program of
the Government of the United States providing for regular
or periodic payments or cash assistance paid directly to individual beneficiaries, as determined by the Director of the Office
of Management and Budget.
(2) FEDERAL AGENCY.—The term ‘‘Federal agency’’ means
a department, agency, or instrumentality of the Government
of the United States.
(3) CPI COMPUTATION ERROR FOR 1999.—The term ‘‘CPI
computation error for 1999’’ means the error in the computation
of the Consumer Price Index announced by the Bureau of
Labor Statistics on September 28, 2000.
(i) TAX PROVISIONS.—In the case of taxable years (and other
periods) beginning after December 31, 2000, if any Consumer Price
Index (as defined in section 1(f )(5) of the Internal Revenue Code
of 1986) reflects the CPI computation error for 1999—
(1) the correct amount of such Index shall (in such manner
and to such extent as the Secretary of the Treasury determines
to be appropriate) be taken into account for purposes of such
Code, and
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114 STAT. 2763A–638
PUBLIC LAW 106–554—APPENDIX G
(2) tables prescribed under section 1(f ) of such Code to
reflect such correct amount shall apply in lieu of any tables
that were prescribed based on the erroneous amount.
SEC. 309. PREVENTION OF DUPLICATION OF LOSS THROUGH ASSUMPTION OF LIABILITIES GIVING RISE TO A DEDUCTION.
(a) IN GENERAL.—Section 358 (relating to basis to distributees)
is amended by adding at the end the following new subsection:
‘‘(h) SPECIAL RULES FOR ASSUMPTION OF LIABILITIES TO WHICH
SUBSECTION (d) DOES NOT APPLY.—
‘‘(1) IN GENERAL.—If, after application of the other provisions of this section to an exchange or series of exchanges,
the basis of property to which subsection (a)(1) applies exceeds
the fair market value of such property, then such basis shall
be reduced (but not below such fair market value) by the
amount (determined as of the date of the exchange) of any
liability—
‘‘(A) which is assumed in exchange for such property,
and
‘‘(B) with respect to which subsection (d)(1) does not
apply to the assumption.
‘‘(2) EXCEPTIONS.—Except as provided by the Secretary,
paragraph (1) shall not apply to any liability if—
‘‘(A) the trade or business with which the liability
is associated is transferred to the person assuming the
liability as part of the exchange, or
‘‘(B) substantially all of the assets with which the
liability is associated are transferred to the person assuming the liability as part of the exchange.
‘‘(3) LIABILITY.—For purposes of this subsection, the term
‘liability’ shall include any fixed or contingent obligation to
make payment, without regard to whether the obligation is
otherwise taken into account for purposes of this title.’’.
(b) DETERMINATION OF AMOUNT OF LIABILITY ASSUMED.—Section 357(d)(1) is amended by inserting ‘‘section 358(h),’’ after ‘‘section
358(d),’’.
(c) APPLICATION OF COMPARABLE RULES TO PARTNERSHIPS AND
S CORPORATIONS.—The Secretary of the Treasury or his delegate—
(1) shall prescribe rules which provide appropriate adjustments under subchapter K of chapter 1 of the Internal Revenue
Code of 1986 to prevent the acceleration or duplication of losses
through the assumption of (or transfer of assets subject to)
liabilities described in section 358(h)(3) of such Code (as added
by subsection (a)) in transactions involving partnerships, and
(2) may prescribe rules which provide appropriate adjustments under subchapter S of chapter 1 of such Code in transactions described in paragraph (1) involving S corporations
rather than partnerships.
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—The amendments made by this section
shall apply to assumptions of liability after October 18, 1999.
(2) RULES.—The rules prescribed under subsection (c) shall
apply to assumptions of liability after October 18, 1999, or
such later date as may be prescribed in such rules.
SEC. 310. DISCLOSURE OF CERTAIN INFORMATION TO CONGRESSIONAL BUDGET OFFICE.
(a) DISCLOSURE OF CERTAIN TAX INFORMATION.—
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–639
(1) IN GENERAL.—Subsection ( j) of section 6103 (relating
to statistical use) is amended by adding at the end the following
new paragraph:
‘‘(6) CONGRESSIONAL BUDGET OFFICE.—Upon written
request by the Director of the Congressional Budget Office,
the Secretary shall furnish to officers and employees of the
Congressional Budget Office return information for the purpose
of, but only to the extent necessary for, long-term models of
the social security and medicare programs.’’.
(2) RECORDKEEPING SAFEGUARDS.—Section 6103(p) is
amended—
(A) in paragraph (4)—
(i) in the matter preceding subparagraph (A), by
inserting ‘‘the Congressional Budget Office,’’ after
‘‘General Accounting Office,’’,
(ii) in subparagraph (E), by striking ‘‘commission
or the General Accounting Office’’ and inserting
‘‘commission, the General Accounting Office, or the
Congressional Budget Office’’,
(iii) in subparagraph (F)(ii), by striking ‘‘or the
General Accounting Office,’’ and inserting ‘‘the General
Accounting Office, or the Congressional Budget Office,’’,
and
(iv) in the matter following subparagraph (F), by
inserting ‘‘or the Congressional Budget Office’’ after
‘‘General Accounting Office’’ both places it appears,
(B) in paragraph (5), by striking ‘‘commissions and
the General Accounting Office’’ and inserting ‘‘commissions,
the General Accounting Office, and the Congressional
Budget Office’’, and
(C) in paragraph (6)(A), by inserting ‘‘and the Congressional Budget Office’’ after ‘‘commissions’’.
(b) CONFIDENTIALITY OF RECORDS.—
(1) IN GENERAL.—Section 203 of the Congressional Budget
Act of 1974 (2 U.S.C. 603) is amended by adding at the end
the following:
‘‘(e) LEVEL OF CONFIDENTIALITY.—With respect to information,
data, estimates, and statistics obtained under sections 201(d) and
201(e), the Director shall maintain the same level of confidentiality
as is required by law of the department, agency, establishment,
or regulatory agency or commission from which it is obtained.
Officers and employees of the Congressional Budget Office shall
be subject to the same statutory penalties for unauthorized disclosure or use as officers or employees of the department, agency,
establishment, or regulatory agency or commission from which it
is obtained.’’.
(2) CONFORMING AMENDMENT.—Subsection (a) of section
203 of such Act is amended by striking ‘‘subsections (c) and
(d)’’ and inserting ‘‘subsections (c), (d), and (e)’’.
Subtitle B—Technical Corrections
SEC. 311. AMENDMENTS RELATED TO TICKET TO WORK AND WORK
INCENTIVES IMPROVEMENT ACT OF 1999.
(a) AMENDMENTS RELATED TO SECTION 502 OF THE ACT.—
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114 STAT. 2763A–640
PUBLIC LAW 106–554—APPENDIX G
(1) Section 280C(c)(1) is amended by striking ‘‘or credit’’
after ‘‘deduction’’ each place it appears.
(2) Section 30A is amended by redesignating subsections
(f ) and (g) as subsections (g) and (h), respectively, and by
inserting after subsection (e) the following new subsection:
‘‘(f ) DENIAL OF DOUBLE BENEFIT.—Any wages or other expenses
taken into account in determining the credit under this section
may not be taken into account in determining the credit under
section 41.’’.
(b) AMENDMENT RELATED TO SECTION 545 OF THE ACT.—Clause
(ii) of section 857(b)(7)(B) is amended to read as follows:
‘‘(ii) EXCEPTION FOR CERTAIN AMOUNTS.—Clause (i)
shall not apply to amounts received directly or
indirectly by a real estate investment trust—
‘‘(I) for services furnished or rendered by a
taxable REIT subsidiary that are described in
paragraph (1)(B) of section 856(d), or
‘‘(II) from a taxable REIT subsidiary that are
described in paragraph (7)(C)(ii) of such section.’’.
(c) CLARIFICATION RELATED TO SECTION 538 OF THE ACT.—
The reference to section 332(b)(1) of the Internal Revenue Code
of 1986 in Treasury Regulation section 1.1502-34 shall be deemed
to include a reference to section 732(f ) of such Code.
(d) EFFECTIVE DATE.—Subsection (c) and the amendments made
by this section shall take effect as if included in the provisions
of the Ticket to Work and Work Incentives Improvement Act of
1999 to which they relate.
SEC. 312. AMENDMENTS RELATED TO TAX AND TRADE RELIEF EXTENSION ACT OF 1998.
(a) AMENDMENT RELATED TO SECTION 1004(b) OF THE ACT.—
Subsection (d) of section 6104 is amended by adding at the end
the following new paragraph:
‘‘(6) APPLICATION TO NONEXEMPT CHARITABLE TRUSTS AND
NONEXEMPT PRIVATE FOUNDATIONS.—The organizations referred
to in paragraphs (1) and (2) of section 6033(d) shall comply
with the requirements of this subsection relating to annual
returns filed under section 6033 in the same manner as the
organizations referred to in paragraph (1).’’.
(b) AMENDMENT RELATED TO SECTION 4003 OF THE ACT.—
Subsection (b) of section 4003 of the Tax and Trade Relief Extension
Act of 1998 is amended by inserting ‘‘(7)(A)(i)(II),’’ after
‘‘(5)(A)(ii)(I),’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect as if included in the provisions of the Tax and
Trade Relief Extension Act of 1998 to which they relate.
SEC. 313. AMENDMENTS RELATED TO INTERNAL REVENUE SERVICE
RESTRUCTURING AND REFORM ACT OF 1998.
(a) AMENDMENTS RELATED TO INNOCENT SPOUSE RELIEF.—
(1) ELECTION MAY BE MADE ANY TIME AFTER DEFICIENCY
ASSERTED.—Subparagraph (B) of section 6015(c)(3) is amended
by striking ‘‘shall be made’’ and inserting ‘‘may be made at
any time after a deficiency for such year is asserted but’’.
(2) CLARIFICATION REGARDING DISALLOWANCE OF REFUNDS
AND CREDITS UNDER SECTION 6015(c).—
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114 STAT. 2763A–641
(A) IN GENERAL.—Section 6015 is amended by
redesignating subsection (g) as subsection (h) and by inserting after subsection (f ) the following new subsection:
‘‘(g) CREDITS AND REFUNDS.—
‘‘(1) IN GENERAL.—Except as provided in paragraphs (2)
and (3), notwithstanding any other law or rule of law (other
than section 6511, 6512(b), 7121, or 7122), credit or refund
shall be allowed or made to the extent attributable to the
application of this section.
‘‘(2) RES JUDICATA.—In the case of any election under subsection (b) or (c), if a decision of a court in any prior proceeding
for the same taxable year has become final, such decision
shall be conclusive except with respect to the qualification
of the individual for relief which was not an issue in such
proceeding. The exception contained in the preceding sentence
shall not apply if the court determines that the individual
participated meaningfully in such prior proceeding.
‘‘(3) CREDIT AND REFUND NOT ALLOWED UNDER SUBSECTION
(c).—No credit or refund shall be allowed as a result of an
election under subsection (c).’’.
(B) CONFORMING AMENDMENT.—Paragraph (3) of section 6015(e) is amended to read as follows:
‘‘(3) LIMITATION ON TAX COURT JURISDICTION.—If a suit
for refund is begun by either individual filing the joint return
pursuant to section 6532—
‘‘(A) the Tax Court shall lose jurisdiction of the individual’s action under this section to whatever extent jurisdiction is acquired by the district court or the United States
Court of Federal Claims over the taxable years that are
the subject of the suit for refund, and
‘‘(B) the court acquiring jurisdiction shall have jurisdiction over the petition filed under this subsection.’’.
(3) CLARIFICATIONS REGARDING REVIEW BY TAX COURT.—
(A) Paragraph (1) of section 6015(e) is amended in
the matter preceding subparagraph (A) by inserting after
‘‘individual’’ the following: ‘‘against whom a deficiency has
been asserted and’’.
(B) Subparagraph (A) of section 6015(e)(1) is amended
to read as follows:
‘‘(A) IN GENERAL.—In addition to any other remedy
provided by law, the individual may petition the Tax Court
(and the Tax Court shall have jurisdiction) to determine
the appropriate relief available to the individual under
this section if such petition is filed—
‘‘(i) at any time after the earlier of—
‘‘(I) the date the Secretary mails, by certified
or registered mail to the taxpayer’s last known
address, notice of the Secretary’s final determination of relief available to the individual, or
‘‘(II) the date which is 6 months after the
date such election is filed with the Secretary, and
‘‘(ii) not later than the close of the 90th day after
the date described in clause (i)(I).’’.
(C) Subparagraph (B)(i) of section 6015(e)(1) is
amended—
(i) by striking ‘‘until the expiration of the 90-day
period described in subparagraph (A)’’ and inserting
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114 STAT. 2763A–642
PUBLIC LAW 106–554—APPENDIX G
‘‘until the close of the 90th day referred to in subparagraph (A)(ii)’’, and
(ii) by inserting ‘‘under subparagraph (A)’’ after
‘‘filed with the Tax Court’’.
(D)(i) Subsection (e) of section 6015 is amended by
adding at the end the following new paragraph:
‘‘(5) WAIVER.—An individual who elects the application of
subsection (b) or (c) (and who agrees with the Secretary’s determination of relief ) may waive in writing at any time the restrictions in paragraph (1)(B) with respect to collection of the
outstanding assessment (whether or not a notice of the Secretary’s final determination of relief has been mailed).’’.
(ii) Paragraph (2) of section 6015(e) is amended to
read as follows:
‘‘(2) SUSPENSION OF RUNNING OF PERIOD OF LIMITATIONS.—
The running of the period of limitations in section 6502 on
the collection of the assessment to which the petition under
paragraph (1)(A) relates shall be suspended—
‘‘(A) for the period during which the Secretary is
prohibited by paragraph (1)(B) from collecting by levy or
a proceeding in court and for 60 days thereafter, and
‘‘(B) if a waiver under paragraph (5) is made, from
the date the claim for relief was filed until 60 days after
the waiver is filed with the Secretary.’’.
(b) AMENDMENTS RELATED TO PROCEDURE AND ADMINISTRATION.—
(1) DISPUTES INVOLVING $50,000 OR LESS.—Section 7463
is amended by adding at the end the following new subsection:
‘‘(f ) ADDITIONAL CASES IN WHICH PROCEEDINGS MAY BE CONDUCTED UNDER THIS SECTION.—At the option of the taxpayer concurred in by the Tax Court or a division thereof before the hearing
of the case, proceedings may be conducted under this section (in
the same manner as a case described in subsection (a)) in the
case of—
‘‘(1) a petition to the Tax Court under section 6015(e)
in which the amount of relief sought does not exceed $50,000,
and
‘‘(2) an appeal under section 6330(d)(1)(A) to the Tax Court
of a determination in which the unpaid tax does not exceed
$50,000.’’.
(2) AUTHORITY TO ENJOIN COLLECTION ACTIONS.—
(A) Section 6330(e)(1) is amended by adding at the
end the following: ‘‘Notwithstanding the provisions of section 7421(a), the beginning of a levy or proceeding during
the time the suspension under this paragraph is in force
may be enjoined by a proceeding in the proper court, including the Tax Court. The Tax Court shall have no jurisdiction
under this paragraph to enjoin any action or proceeding
unless a timely appeal has been filed under subsection
(d)(1) and then only in respect of the unpaid tax or proposed
levy to which the determination being appealed relates.’’.
(B) Section 7421(a) is amended by inserting
‘‘6330(e)(1),’’ after ‘‘6246(b),’’.
(3) CLARIFICATION.—Paragraph (3) of section 6331(k) is
amended by striking ‘‘(3), (4), and (5)’’ and inserting ‘‘(3) and
(4)’’.
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–643
(c) AMENDMENT RELATED TO SECTION 1103 OF THE ACT.—Paragraph (6) of section 6103(k) is amended—
(1) by inserting ‘‘and an officer or employee of the Office
of Treasury Inspector General for Tax Administration’’ after
‘‘internal revenue officer or employee’’, and
(2) by striking ‘‘INTERNAL REVENUE’’ in the heading and
inserting ‘‘CERTAIN’’.
(d) AMENDMENT RELATED TO SECTION 3401 OF THE ACT.—
Section 6330(d)(1)(A) is amended by striking ‘‘to hear’’ and inserting
‘‘with respect to’’.
(e) AMENDMENT RELATED TO SECTION 3509 OF THE ACT.—
Subparagraph (A) of section 6110(g)(5) is amended by inserting
‘‘, any Chief Counsel advice,’’ after ‘‘technical advice memorandum’’.
(f ) EFFECTIVE DATES.—The amendments made by subsections
(a) and (b) shall take effect on the date of the enactment of this
Act. The amendments made by subsections (c), (d), and (e) shall
take effect as if included in the provisions of the Internal Revenue
Service Restructuring and Reform Act of 1998 to which they relate.
SEC. 314. AMENDMENTS RELATED TO TAXPAYER RELIEF ACT OF 1997.
(a) AMENDMENT RELATED TO SECTION 101 OF THE ACT.—Paragraph (4) of section 6211(b) is amended by striking ‘‘sections 32
and 34’’ and inserting ‘‘sections 24(d), 32, and 34’’.
(b) AMENDMENT RELATED TO SECTION 302 OF THE ACT.—The
last sentence of section 3405(e)(1)(B) is amended by inserting ‘‘(other
than a Roth IRA)’’ after ‘‘individual retirement plan’’.
(c) AMENDMENT TO SECTION 311 OF THE ACT.—Paragraph (3)
of section 311(e) of the Taxpayer Relief Act of 1997 (relating to
election to recognize gain on assets held on January 1, 2001) is
amended by adding at the end the following new sentence: ‘‘Such
an election shall not apply to any asset which is disposed of (in
a transaction in which gain or loss is recognized in whole or in
part) before the close of the 1-year period beginning on the date
that the asset would have been treated as sold under such election.’’.
(d) AMENDMENT RELATED TO SECTION 402 OF THE ACT.—The
flush sentence at the end of clause (ii) of section 56(a)(1)(A) is
amended by inserting before ‘‘or to any other property’’ the following:
‘‘(and the straight line method shall be used for such 1250 property)’’.
(e) AMENDMENTS RELATED TO SECTION 1072 OF THE ACT.—
(1) Clause (ii) of section 415(c)(3)(D) and subparagraph
(B) of section 403(b)(3) are each amended by striking ‘‘section
125 or’’ and inserting ‘‘section 125, 132(f )(4), or’’.
(2) Paragraph (2) of section 414(s) is amended by striking
‘‘section 125, 402(e)(3)’’ and inserting ‘‘section 125, 132(f )(4),
402(e)(3)’’.
(f ) AMENDMENT RELATED TO SECTION 1454 OF THE ACT.—Subsection (a) of section 7436 is amended by inserting before the
period at the end of the first sentence ‘‘and the proper amount
of employment tax under such determination’’.
(g) EFFECTIVE DATE.—The amendments made by this section
shall take effect as if included in the provisions of the Taxpayer
Relief of 1997 to which they relate.
SEC. 315. AMENDMENTS RELATED TO BALANCED BUDGET ACT OF 1997.
(a) AMENDMENTS RELATED
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PUBLIC LAW 106–554—APPENDIX G
(1) Paragraph (1) of section 9302( j) of the Balanced Budget
Act of 1997 is amended by striking ‘‘tobacco products and
cigarette papers and tubes’’ and inserting ‘‘cigarettes’’.
(2)(A) Subsection (h) of section 5702 is amended to read
as follows:
‘‘(h) MANUFACTURER OF CIGARETTE PAPERS AND TUBES.—‘Manufacturer of cigarette papers and tubes’ means any person who
manufactures cigarette paper, or makes up cigarette paper into
tubes, except for his own personal use or consumption.’’.
(B) Section 5702, as amended by subparagraph (A), is
amended by striking subsection (f ) and by redesignating subsections (g) through (p) as subsections (f ) through (o), respectively.
(3) Subsection (c) of section 5761 is amended by adding
at the end the following: ‘‘This subsection and section 5754
shall not apply to any person who relands or receives tobacco
products in the quantity allowed entry free of tax and duty
under chapter 98 of the Harmonized Tariff Schedule of the
United States, and such person may voluntarily relinquish
to the Secretary at the time of entry any excess of such quantity
without incurring the penalty under this subsection. No quantity of tobacco products other than the quantity referred to
in the preceding sentence may be relanded or received as a
personal use quantity.’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall take effect as if included in section 9302 of the Balanced
Budget Act of 1997.
SEC. 316. AMENDMENTS RELATED TO SMALL BUSINESS JOB PROTECTION ACT OF 1996.
(a) AMENDMENT RELATED TO SECTION 1201 OF THE ACT.—
Subparagraph (B) of section 51(d)(2) is amended—
(1) by striking ‘‘plan approved’’ and inserting ‘‘program
funded’’, and
(2) by striking ‘‘(relating to assistance for needy families
with minor children)’’.
(b) AMENDMENT RELATED TO SECTION 1302 OF THE ACT.—
Clause (i) of section 1361(e)(1)(A) is amended by striking ‘‘or’’ before
‘‘(III)’’ and by adding at the end the following: ‘‘or (IV) an organization described in section 170(c)(1) which holds a contingent interest
in such trust and is not a potential current beneficiary,’’.
(c) AMENDMENT RELATED TO SECTION 1401 OF THE ACT.—
Clause (ii) of section 401(k)(10)(B) is amended by adding at the
end the following new sentence: ‘‘Such term includes a distribution
of an annuity contract from—
‘‘(I) a trust which forms a part of a plan
described in section 401(a) and which is exempt
from tax under section 501(a), or
‘‘(II) an annuity plan described in section
403(a).’’.
(d) AMENDMENT RELATED TO SECTION 1427 OF THE ACT.—
Clause (ii) of section 219(c)(1)(B) is amended by striking ‘‘and’’
at the end of subclause (I), by redesignating subclause (II) as
subclause (III), and by inserting after subclause (I) the following
new subclause:
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–645
‘‘(II) the amount of any designated nondeductible contribution (as defined in section 408(o)) on
behalf of such spouse for such taxable year, and’’.
(e) EFFECTIVE DATE.—The amendments made by this section
shall take effect as if included in the provisions of the Small
Business Job Protection Act of 1996 to which they relate.
SEC. 317. AMENDMENT RELATED TO REVENUE RECONCILIATION ACT
OF 1990.
(a) AMENDMENT RELATED TO SECTION 11511 OF THE ACT.—
Subparagraph (C) of section 43(c)(1) is amended—
(1) by inserting ‘‘(as defined in section 193(b))’’ after
‘‘expenses’’, and
(2) by striking ‘‘under section 193’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall take effect as if included in section 11511 of the Revenue
Reconciliation Act of 1990.
SEC. 318. OTHER TECHNICAL CORRECTIONS.
(a) MODIFIED ENDOWMENT CONTRACTS.—
(1) Paragraph (2) of section 7702A(a) is amended by inserting ‘‘or this paragraph’’ before the period.
(2) Clause (ii) of section 7702A(c)(3)(A) is amended by striking ‘‘under the contract’’ and inserting ‘‘under the old contract’’.
(3) The amendments made by this subsection shall take
effect as if included in the amendments made by section 5012
of the Technical and Miscellaneous Revenue Act of 1988.
(b) AFFILIATED CORPORATIONS IN CONTEXT OF WORTHLESS
SECURITIES.—
(1) Subparagraph (A) of section 165(g)(3) is amended to
read as follows:
‘‘(A) the taxpayer owns directly stock in such corporation meeting the requirements of section 1504(a)(2), and’’.
(2) Paragraph (3) of section 165(g) is amended by striking
the last sentence.
(3) The amendments made by this subsection shall apply
to taxable years beginning after December 31, 1984.
(c) CERTAIN ANNUITIES ISSUED BY TAX-EXEMPT ORGANIZATIONS
NOT TREATED AS DEBT INSTRUMENTS UNDER ORIGINAL ISSUE DISCOUNT RULES.—
(1) Clause (ii) of section 1275(a)(1)(B) is amended by striking ‘‘subchapter L’’ and inserting ‘‘subchapter L (or by an entity
described in section 501(c) and exempt from tax under section
501(a) which would be subject to tax under subchapter L were
it not so exempt)’’.
(2) The amendment made by this subsection shall take
effect as if included in the amendments made by section 41
of the Tax Reform Act of 1984.
(d) TENTATIVE CARRYBACK ADJUSTMENTS OF LOSSES FROM SECTION 1256 CONTRACTS.—
(1) Subsection (a) of section 6411 is amended by striking
‘‘section 1212(a)(1)’’ and inserting ‘‘subsection (a)(1) or (c) of
section 1212’’.
(2) The amendment made by paragraph (1) shall take effect
as if included in the amendments made by section 504 of
the Economic Recovery Tax Act of 1981.
(e) CORRECTION OF CALCULATION OF AMOUNTS TO BE DEPOSITED
IN HIGHWAY TRUST FUND.—
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PUBLIC LAW 106–554—APPENDIX G
(1) Subsection (b) of section 9503 is amended by striking
paragraph (5) and redesignating paragraph (6) as paragraph
(5).
(2) The amendment made by paragraph (1) shall apply
with respect to taxes received in the Treasury after the date
of the enactment of this Act.
(f ) EXPENDITURES FROM VACCINE INJURY COMPENSATION TRUST
FUND.—Section 9510(c)(1)(A) is amended by striking ‘‘December
31, 1999’’ and inserting ‘‘October 18, 2000’’.
SEC. 319. CLERICAL CHANGES.
(1) Clause (i) of section 45(d)(7)(A) is amended by striking
‘‘paragraph (3)(A)’’ and inserting ‘‘subsection (c)(3)(A)’’.
(2) Subsection (f ) of section 67 is amended by striking
‘‘the last sentence’’ and inserting ‘‘the second sentence’’.
(3) The heading for paragraph (5) of section 408(d) is
amended to read as follows:
‘‘(5) DISTRIBUTIONS OF EXCESS CONTRIBUTIONS AFTER DUE
DATE FOR TAXABLE YEAR AND CERTAIN EXCESS ROLLOVER CONTRIBUTIONS.—’’.
(4) Paragraph (3) of section 475(g) is amended by striking
‘‘267(b) of’’ and inserting ‘‘267(b) or’’.
(5) The heading for subparagraph (B) of section 529(e)(3)
is amended by striking ‘‘UNDER GUARANTEED PLANS’’.
(6) Clause (iii) of section 530(d)(4)(B) is amended by striking
‘‘; or’’ at the end and inserting ‘‘, or’’.
(7) Paragraphs (1)(C) and (2)(C) of section 664(d) are each
amended by striking the period after ‘‘subsection (g))’’.
(8)(A) Subsection (e) of section 678 is amended by striking
‘‘an electing small business corporation’’ and inserting ‘‘an S
corporation’’.
(B) Clause (v) of section 6103(e)(1)(D) is amended to read
as follows:
‘‘(v) if the corporation was an S corporation, any
person who was a shareholder during any part of the
period covered by such return during which an election
under section 1362(a) was in effect, or’’.
(9) Paragraph (7) of section 856(c) is amended by striking
‘‘paragraph
(4)(B)(ii)(III)’’
and
inserting
‘‘paragraph
(4)(B)(iii)(III)’’
(10) Subparagraph (A) of section 856(l)(4) is amended by
striking ‘‘paragraph (9)(D)(ii)’’ and inserting ‘‘subsection
(d)(9)(D)(ii)’’.
(11) Subparagraph (B) of section 871(f )(2) is amended by
striking ‘‘19 U.S.C.’’ and inserting ‘‘(19 U.S.C.’’.
(12) Subparagraph (B) of section 995(b)(3) is amended by
striking ‘‘the Military Security Act of 1954 (22 U.S.C. 1934)’’
and inserting ‘‘section 38 of the International Security Assistance and Arms Export Control Act of 1976 (22 U.S.C. 2778)’’.
(13) Section 1391(g)(3)(C) is amended by striking ‘‘paragraph (1)(B)’’ and inserting ‘‘paragraph (1)’’.
(14)(A) Paragraph (2) of section 2035(c) is amended by
striking ‘‘paragraph (1)’’ and inserting ‘‘subsection (a)’’.
(B) Subsection (d) of section 2035 is amended by inserting
‘‘and paragraph (1) of subsection (c)’’ after ‘‘Subsection (a)’’.
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(15) Paragraph (5) of section 3121(a) is amended by striking
the semicolon at the end of subparagraph (G) and inserting
a comma.
(16) Subparagraph (B) of section 4946(c)(3) is amended
by striking ‘‘the lowest rate of compensation prescribed for
GS–16 of the General Schedule under section 5332’’ and inserting ‘‘the lowest rate of basic pay for the Senior Executive
Service under section 5382’’.
(17) Subsection (p) of section 6103 is amended—
(A) in paragraph (4), in the matter preceding subparagraph (A)—
(i) by striking the second comma after ‘‘(13)’’, and
(ii) by striking ‘‘(7)’’ and all that follows through
‘‘shall, as a condition’’ and inserting ‘‘(7), (8), (9), (12),
(15), or (16) or any other person described in subsection
(l)(16) shall, as a condition’’, and
(B) in paragraph (4)(F)(ii), by striking the second
comma after ‘‘(14)’’.
(18) Paragraph (5) of section 6166(k) is amended by striking
‘‘2035(d)(4)’’ and inserting ‘‘2035(c)(2)’’.
(19) Subsection (a) of section 6512 is amended by striking
‘‘; and’’ at the end of paragraphs (1), (2), and (5) and inserting
‘‘, and’’.
(20) Paragraph (1) of section 6611(g) is amended by striking
the comma after ‘‘(b)(3)’’.
(21) Subparagraphs (A) and (B) of section 6655(e)(5) are
amended by striking ‘‘subsections (d)(5) and (l)(3)(B)’’ and
inserting ‘‘subsection (d)(5)’’.
(22) The subchapter heading for subchapter D of chapter
67 is amended by capitalizing the first letter of the second
word.
(23)(A) Section 6724(d)(1)(B) is amended by striking clauses
(xiv) through (xvii) and inserting the following:
‘‘(xiv) subparagraph (A) or (C) of subsection (c)(4)
of section 4093 (relating to information reporting with
respect to tax on diesel and aviation fuels),
‘‘(xv) section 4101(d) (relating to information
reporting with respect to fuels taxes),
‘‘(xvi) subparagraph (C) of section 338(h)(10) (relating to information required to be furnished to the
Secretary in case of elective recognition of gain or
loss), or
‘‘(xvii) section 264(f )(5)(A)(iv) (relating to reporting
with respect to certain life insurance and annuity contracts), and’’.
(B) Section 6010(o)(4)(C) of the Internal Revenue Service
Restructuring and Reform Act of 1998 is amended by striking
‘‘inserting ‘or’, and by adding at the end’’ and inserting ‘‘inserting ‘, or’, and by adding after subparagraph (Z)’’.
(24) Subsection (a) of section 7421 is amended by striking
‘‘6672(b)’’ and inserting ‘‘6672(c)’’.
(25) Paragraph (3) of section 7430(c) is amended—
(A) in the paragraph heading, by striking ‘‘ATTORNEYS’’
and inserting ‘‘ATTORNEYS’ ’’, and
(B) in subparagraph (B), by striking ‘‘attorneys fees’’
each place it appears and inserting ‘‘attorneys’ fees’’.
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(26) Paragraph (2) of section 7603(b) is amended by striking
the semicolon at the end of subparagraphs (A), (B), (C), (D),
(E), (F), and (G) and inserting a comma.
(27) Clause (ii) of section 7802(b)(2)(B) is amended by striking ‘‘; and’’ at the end and inserting ‘‘, and’’.
(28) Paragraph (3) of section 7811(a) is amended by striking
‘‘taxpayer assistance order’’ and inserting ‘‘Taxpayer Assistance
Order’’.
(29) Paragraph (1) of section 7811(d) is amended by striking
‘‘Ombudsman’s’’ and inserting ‘‘National Taxpayer Advocate’s’’.
(30) Paragraph (3) of section 7872(f ) is amended by striking
‘‘foregoing ’’ and inserting ‘‘forgoing ’’.
TITLE IV—TAX TREATMENT OF
SECURITIES FUTURES CONTRACTS
SEC. 401. TAX TREATMENT OF SECURITIES FUTURES CONTRACTS.
(a) IN GENERAL.—Subpart IV of subchapter P of chapter 1
(relating to special rules for determining gains and losses) is amended by inserting after section 1234A the following new section:
‘‘SEC. 1234B. GAINS OR LOSSES FROM SECURITIES FUTURES CONTRACTS.
‘‘(a) TREATMENT OF GAIN OR LOSS.—
‘‘(1) IN GENERAL.—Gain or loss attributable to the sale
or exchange of a securities futures contract shall be considered
gain or loss from the sale or exchange of property which has
the same character as the property to which the contract relates
has in the hands of the taxpayer (or would have in the hands
of the taxpayer if acquired by the taxpayer).
‘‘(2) NONAPPLICATION OF SUBSECTION.—This subsection
shall not apply to—
‘‘(A) a contract which constitutes property described
in paragraph (1) or (7) of section 1221(a), and
‘‘(B) any income derived in connection with a contract
which, without regard to this subsection, is treated as
other than gain from the sale or exchange of a capital
asset.
‘‘(b) SHORT-TERM GAINS AND LOSSES.—Except as provided in
the regulations under section 1092(b) or this section, if gain or
loss on the sale or exchange of a securities futures contract to
sell property is considered as gain or loss from the sale or exchange
of a capital asset, such gain or loss shall be treated as shortterm capital gain or loss.
‘‘(c) SECURITIES FUTURES CONTRACT.—For purposes of this section, the term ‘securities futures contract’ means any security future
(as defined in section 3(a)(55)(A) of the Securities Exchange Act
of 1934, as in effect on the date of the enactment of this section).
‘‘(d) CONTRACTS NOT TREATED AS COMMODITY FUTURES CONTRACTS.—For purposes of this title, a securities futures contract
shall not be treated as a commodity futures contract.
‘‘(e) REGULATIONS.—The Secretary shall prescribe such regulations as may be appropriate to provide for the proper treatment
of securities futures contracts under this title.’’.
(b) TERMINATIONS, ETC.—Section 1234A is amended—
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–649
(1) by inserting ‘‘(other than a securities futures contract,
as defined in section 1234B)’’ after ‘‘right or obligation’’ in
paragraph (1),
(2) by striking ‘‘or’’ at the end of paragraph (1),
(3) by adding ‘‘or’’ at the end of paragraph (2), and
(4) by inserting after paragraph (2) the following new paragraph:
‘‘(3) a securities futures contract (as so defined) which
is a capital asset in the hands of the taxpayer,’’.
(c) NONRECOGNITION UNDER SECTION 1032.—The second sentence of section 1032(a) is amended by inserting ‘‘, or with respect
to a securities futures contract (as defined in section 1234B),’’
after ‘‘an option’’.
(d) TREATMENT UNDER WASH SALES RULES.—Section 1091 is
amended by adding at the end the following new subsection:
‘‘(f ) CASH SETTLEMENT.—This section shall not fail to apply
to a contract or option to acquire or sell stock or securities solely
by reason of the fact that the contract or option settles in (or
could be settled in) cash or property other than such stock or
securities.’’.
(e) TREATMENT UNDER STRADDLE RULES.—Clause (i) of section
1092(d)(3)(B) is amended by striking ‘‘or’’ at the end of subclause
(I), by redesignating subclause (II) as subclause (III), and by inserting after subclause (I) the following new subclause:
‘‘(II) a securities futures contract (as defined
in section 1234B) with respect to such stock or
substantially identical stock or securities, or’’.
(f ) TREATMENT UNDER SHORT SALES RULES.—Paragraph (2)
of section 1233(e) is amended by striking ‘‘and’’ at the end of
subparagraph (B), by striking the period at the end of subparagraph
(C) and inserting ‘‘; and’’, and by adding at the end the following:
‘‘(D) a securities futures contract (as defined in section
1234B) to acquire substantially identical property shall
be treated as substantially identical property.’’.
(g) TREATMENT UNDER SECTION 1256.—
(1)(A) Subsection (b) of section 1256 is amended by striking
‘‘and’’ at the end of paragraph (3), by striking the period at
the end of paragraph (4) and inserting ‘‘, and’’, and by adding
at the end the following:
‘‘(5) any dealer securities futures contract.
The term ‘section 1256 contract’ shall not include any securities
futures contract or option on such a contract unless such contract
or option is a dealer securities futures contract.’’.
(B) Subsection (g) of section 1256 is amended by adding
at the end the following new paragraph:
‘‘(9) DEALER SECURITIES FUTURES CONTRACT.—
‘‘(A) IN GENERAL.—The term ‘dealer securities futures
contract’ means, with respect to any dealer, any securities
futures contract, and any option on such a contract,
which—
‘‘(i) is entered into by such dealer (or, in the case
of an option, is purchased or granted by such dealer)
in the normal course of his activity of dealing in such
contracts or options, as the case may be, and
‘‘(ii) is traded on a qualified board or exchange.
‘‘(B) DEALER.—For purposes of subparagraph (A), a
person shall be treated as a dealer in securities futures
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114 STAT. 2763A–650
PUBLIC LAW 106–554—APPENDIX G
contracts or options on such contracts if the Secretary
determines that such person performs, with respect to such
contracts or options, as the case may be, functions similar
to the functions performed by persons described in paragraph (8)(A). Such determination shall be made to the
extent appropriate to carry out the purposes of this section.
‘‘(C) SECURITIES FUTURES CONTRACT.—The term ‘securities futures contract’ has the meaning given to such term
by section 1234B.’’.
(2) Paragraph (4) of section 1256(f ) is amended—
(A) by inserting ‘‘, or dealer securities futures contracts,’’ after ‘‘dealer equity options’’ in the text, and
(B) by inserting ‘‘AND DEALER SECURITIES FUTURES CONTRACTS’’ after ‘‘DEALER EQUITY OPTIONS’’ in the heading.
(3) Paragraph (6) of section 1256(g) is amended to read
as follows:
‘‘(6) EQUITY OPTION.—The term ‘equity option’ means any
option—
‘‘(A) to buy or sell stock, or
‘‘(B) the value of which is determined directly or
indirectly by reference to any stock or any narrow-based
security index (as defined in section 3(a)(55) of the Securities Exchange Act of 1934, as in effect on the date of
the enactment of this paragraph).
The term ‘equity option’ includes such an option on a group
of stocks only if such group meets the requirements for a
narrow-based security index (as so defined).’’.
(4) The Secretary of the Treasury or his delegate shall
make the determinations under section 1256(g)(9)(B) of the
Internal Revenue Code of 1986, as added by this Act, not
later than July 1, 2001.
(h) CONFORMING AMENDMENTS.—
(1) Section 1223 is amended by redesignating paragraph
(16) as paragraph (17) and by inserting after paragraph (15)
the following new paragraph:
‘‘(16) If the security to which a securities futures contract
(as defined in section 1234B) relates (other than a contract
to which section 1256 applies) is acquired in satisfaction of
such contract, in determining the period for which the taxpayer
has held such security, there shall be included the period for
which the taxpayer held such contract if such contract was
a capital asset in the hands of the taxpayer.’’.
(2) The table of sections for subpart IV of subchapter P
of chapter 1 is amended by inserting after the item relating
to section 1234A the following new item:
‘‘Sec. 1234B. Securities futures contracts.’’.
(i) DESIGNATION OF CONTRACT MARKETS.—Section 7701 is
amended by redesignating subsection (m) as subsection (n) and
by inserting after subsection (l) the following new subsection:
‘‘(m) DESIGNATION OF CONTRACT MARKETS.—Any designation
by the Commodity Futures Trading Commission of a contract market which could not have been made under the law in effect on
the day before the date of the enactment of the Commodity Futures
Modernization Act of 2000 shall apply for purposes of this title
except to the extent provided in regulations prescribed by the Secretary.’’.
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PUBLIC LAW 106–554—APPENDIX G
114 STAT. 2763A–651
( j) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the date of the enactment of this Act.
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PUBLIC LAW 106–554—APPENDIX H
114 STAT. 2763A–653
APPENDIX H—H.R. 5663
SECTION 1. NEW MARKETS VENTURE CAPITAL PROGRAM.
(a) SHORT TITLE.—This section may be cited as the ‘‘New Markets Venture Capital Program Act of 2000’’.
(b) NEW MARKETS VENTURE CAPITAL PROGRAM.—Title III of
the Small Business Investment Act of 1958 (15 U.S.C. 681 et
seq.) is amended—
(1) in the heading for the title, by striking ‘‘SMALL BUSINESS INVESTMENT COMPANIES’’and inserting ‘‘INVESTMENT DIVISION PROGRAMS’’;
(2) by inserting before the heading for section 301 the
following:
‘‘PART A—SMALL BUSINESS INVESTMENT COMPANIES’’;
and
(3) by adding at the end the following:
‘‘PART B—NEW MARKETS VENTURE CAPITAL PROGRAM
‘‘SEC. 351. DEFINITIONS.
‘‘In this part, the following definitions apply:
‘‘(1) DEVELOPMENTAL VENTURE CAPITAL.—The term
‘developmental venture capital’ means capital in the form of
equity capital investments in businesses made with a primary
objective of fostering economic development in low-income
geographic areas. For the purposes of this paragraph, the term
‘equity capital’ has the same meaning given such term in section
303(g)(4).
‘‘(2) LOW-INCOME INDIVIDUAL.—The term ‘low-income
individual’ means an individual whose income (adjusted for
family size) does not exceed—
‘‘(A) for metropolitan areas, 80 percent of the area
median income; and
‘‘(B) for nonmetropolitan areas, the greater of—
‘‘(i) 80 percent of the area median income; or
‘‘(ii) 80 percent of the statewide nonmetropolitan
area median income.
‘‘(3) LOW-INCOME GEOGRAPHIC AREA.—the term ‘low-income
geographic area’ means—
‘‘(A) any population census tract (or in the case of
an area that is not tracted for population census tracts,
the equivalent county division, as defined by the Bureau
of the Census of the Department of Commerce for purposes
of defining poverty areas), if—
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114 STAT. 2763A–654
PUBLIC LAW 106–554—APPENDIX H
‘‘(i) the poverty rate for that census tract is not
less than 20 percent;
‘‘(ii) in the case of a tract—
‘‘(I) that is located within a metropolitan area,
50 percent or more of the households in that census
tract have an income equal to less than 60 percent
of the area median gross income; or
‘‘(II) that is not located within a metropolitan
area, the median household income for such tract
does not exceed 80 percent of the statewide median
household income; or
‘‘(iii) as determined by the Administrator based
on objective criteria, a substantial population of lowincome individuals reside, an inadequate access to
investment capital exists, or other indications of economic distress exist in that census tract; or
‘‘(B) any area located within—
‘‘(i) a HUBZone (as defined in section 3(p) of the
Small Business Act and the implementing regulations
issued under that section);
‘‘(ii) an urban empowerment zone or urban enterprise community (as designated by the Secretary of
Housing and Urban Development); or
‘‘(iii) a rural empowerment zone or rural enterprise
community (as designated by the Secretary of Agriculture).
‘‘(4) NEW MARKETS VENTURE CAPITAL COMPANY.—The term
‘New Markets Venture Capital company’ means a company
that—
‘‘(A) has been granted final approval by the Administrator under section 354(e); and
‘‘(B) has entered into a participation agreement with
the Administrator.
‘‘(5) OPERATIONAL ASSISTANCE.—The term ‘operational
assistance’ means management, marketing, and other technical
assistance that assists a small business concern with business
development.
‘‘(6) PARTICIPATION AGREEMENT.—The term ‘participation
agreement’ means an agreement, between the Administrator
and a company granted final approval under section 354(e),
that—
‘‘(A) details the company’s operating plan and investment criteria; and
‘‘(B) requires the company to make investments in
smaller enterprises at least 80 percent of which are located
in low-income geographic areas.
‘‘(7) SPECIALIZED SMALL BUSINESS INVESTMENT COMPANY.—
The term ‘specialized small business investment company’
means any small business investment company that—
‘‘(A) invests solely in small business concerns that
contribute to a well-balanced national economy by facilitating ownership in such concerns by persons whose participation in the free enterprise system is hampered because
of social or economic disadvantages;
‘‘(B) is organized or chartered under State business
or nonprofit corporations statutes, or formed as a limited
partnership; and
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PUBLIC LAW 106–554—APPENDIX H
114 STAT. 2763A–655
‘‘(C) was licensed under section 301(d), as in effect
before September 30, 1996.
‘‘(8) STATE.—The term ‘State’ means such of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and any other
commonwealth, territory, or possession of the United States.
‘‘SEC. 352. PURPOSES.
‘‘The purposes of the New Markets Venture Capital Program
established under this part are—
‘‘(1) to promote economic development and the creation
of wealth and job opportunities in low-income geographic areas
and among individuals living in such areas by encouraging
developmental venture capital investments in smaller enterprises primarily located in such areas; and
‘‘(2) to establish a developmental venture capital program,
with the mission of addressing the unmet equity investment
needs of small enterprises located in low-income geographic
areas, to be administered by the Administrator—
‘‘(A) to enter into participation agreements with New
Markets Venture Capital companies;
‘‘(B) to guarantee debentures of New Markets Venture
Capital companies to enable each such company to make
developmental venture capital investments in smaller
enterprises in low-income geographic areas; and
‘‘(C) to make grants to New Markets Venture Capital
companies, and to other entities, for the purpose of providing operational assistance to smaller enterprises financed,
or expected to be financed, by such companies.
‘‘SEC. 353. ESTABLISHMENT.
‘‘In accordance with this part, the Administrator shall establish
a New Markets Venture Capital Program, under which the Administrator may—
‘‘(1) enter into participation agreements with companies
granted final approval under section 354(e) for the purposes
set forth in section 352;
‘‘(2) guarantee the debentures issued by New Markets Venture Capital companies as provided in section 355; and
‘‘(3) make grants to New Markets Venture Capital companies, and to other entities, under section 358.
‘‘SEC. 354. SELECTION OF NEW MARKETS VENTURE CAPITAL COMPANIES.
‘‘(a) ELIGIBILITY.—A company shall be eligible to apply to
participate, as a New Markets Venture Capital company, in the
program established under this part if—
‘‘(1) the company is a newly formed for-profit entity or
a newly formed for-profit subsidiary of an existing entity;
‘‘(2) the company has a management team with experience
in community development financing or relevant venture capital
financing; and
‘‘(3) the company has a primary objective of economic
development of low-income geographic areas.
‘‘(b) APPLICATION.—To participate, as a New Markets Venture
Capital company, in the program established under this part a
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114 STAT. 2763A–656
PUBLIC LAW 106–554—APPENDIX H
company meeting the eligibility requirements set forth in subsection
(a) shall submit an application to the Administrator that includes—
‘‘(1) a business plan describing how the company intends
to make successful developmental venture capital investments
in identified low-income geographic areas;
‘‘(2) information regarding the community development
finance or relevant venture capital qualifications and general
reputation of the company’s management;
‘‘(3) a description of how the company intends to work
with community organizations and to seek to address the unmet
capital needs of the communities served;
‘‘(4) a proposal describing how the company intends to
use the grant funds provided under this part to provide operational assistance to smaller enterprises financed by the company, including information regarding whether the company
intends to use licensed professionals, when necessary, on the
company’s staff or from an outside entity;
‘‘(5) with respect to binding commitments to be made to
the company under this part, an estimate of the ratio of cash
to in-kind contributions;
‘‘(6) a description of the criteria to be used to evaluate
whether and to what extent the company meets the objectives
of the program established under this part;
‘‘(7) information regarding the management and financial
strength of any parent firm, affiliated firm, or any other firm
essential to the success of the company’s business plan; and
‘‘(8) such other information as the Administrator may
require.
‘‘(c) CONDITIONAL APPROVAL.—
‘‘(1) IN GENERAL.—From among companies submitting
applications under subsection (b), the Administrator shall, in
accordance with this subsection, conditionally approval companies to participate in the New Markets Venture Capital Program.
‘‘(2) SELECTION CRITERIA.—In selecting companies under
paragraph (1), the Administrator shall consider the following:
‘‘(A) The likelihood that the company will meet the
goal of its business plan.
‘‘(B) The experience and background of the company’s
management team.
‘‘(C) The need for developmental venture capital investments in the geographic areas in which the company
intends to invest.
‘‘(D) The extent to which the company will concentrate
its activities on serving the geographic areas in which
it intends to invest.
‘‘(E) The likelihood that the company will be able to
satisfy the conditions under subsection (d).
‘‘(F) The extent to which the activities proposed by
the company will expand economic opportunities in the
geographic areas in which the company intends to invest.
‘‘(G) The strength of the company’s proposal to provide
operational assistance under this part as the proposal
relates to the ability of the applicant to meet applicable
cash requirements and properly utilize in-kind contributions, including the use of resources for the services of
licensed professionals, when necessary, whether provided
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PUBLIC LAW 106–554—APPENDIX H
114 STAT. 2763A–657
by persons on the company’s staff or by persons outside
of the company.
‘‘(H) Any other factors deemed appropriate by the
Administrator.
‘‘(3) NATIONWIDE DISTRIBUTION.—The Administrator shall
select companies under paragraph (1) in such a way that promotes investment nationwide.
‘‘(d) REQUIREMENTS TO BE MET FOR FINAL APPROVAL.—The
Administrator shall grant each conditionally approved company
a period of time, not to exceed 2 years, to satisfy the following
requirements:
‘‘(1) CAPITAL REQUIREMENT.—Each conditionally approved
company shall raise not less than $5,000,000 of private capital
or binding capital commitments from one or more investors
(other than agencies or departments of the Federal Government) who met criteria established by the Administrator.
‘‘(2) NONADMINISTRATION RESOURCES FOR OPERATIONAL
ASSISTANCE.—
‘‘(A) IN GENERAL.—In order to provide operational
assistance to smaller enterprises expected to be financed
by the company, each conditionally approved company—
‘‘(i) shall have binding commitments (for contribution in cash or in kind)—
‘‘(I) from any sources other than the Small
Business Administration that meet criteria established by the Administrator;
‘‘(II) payable or available over a multiyear
period acceptable to the Administrator (not to
exceed 10 years); and
‘‘(III) in an amount not less than 30 percent
of the total amount of capital and commitments
raised under paragraph (1);
‘‘(ii) shall have purchased an annuity—
‘‘(I) from an insurance company acceptable to
the Administrator;
‘‘(II) using funds (other than the funds raised
under paragraph (1)), from any source other than
the Administrator; and
‘‘(III) that yields cash payments over a
multiyear period acceptable to the Administrator
(not to exceed 10 years) in an amount not less
than 30 percent of the total amount of capital
and commitments raised under paragraph (1); or
‘‘(iii) shall have binding commitments (for contributions in cash or in kind) of the type described in
clause (i) and shall have purchased an annuity of the
type described in clause (ii), which in the aggregate
make available, over a multiyear period acceptable
to the Administrator (not to exceed 10 years), an
amount not less than 30 percent of the total amount
of capital and commitments raised under paragraph
(1).
‘‘(B) EXCEPTION.—The Administrator may, in the
discretion of the Administrator and based upon a showing
of special circumstances and good cause, consider an
applicant to have satisfied the requirements of subparagraph (A) if the applicant has—
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PUBLIC LAW 106–554—APPENDIX H
‘‘(i) a viable plan that reasonably projects the
capacity of the applicant to raise the amount (in cash
or in-kind) required under subparagraph (A); and
‘‘(ii) binding commitments in an amount equal to
not less than 20 percent of the total amount required
under paragraph (A).
‘‘(C) LIMITATION.—In order to comply with the requirements of subparagraphs (A) and (B), the total amount
of a company’s in-kind contributions may not exceed 50
percent of the company’s total contributions.
‘‘(e) FINAL APPROVAL; DESIGNATION.—The Administrator shall,
with respect to each applicant conditionally approved to operate
as a New Markets Venture Capital company under subsection (c),
either—
‘‘(1) grant final approval to the applicant to operate as
a New Markets Venture Capital company under this part and
designate the applicant as such a company, if the applicant—
‘‘(A) satisfies the requirements of subsection (d) on
or before the expiration of the time period described in
that subsection; and
‘‘(B) enters into a participation agreement with the
Administrator; or
‘‘(2) if the applicant fails to satisfy the requirements of
subsection (d) on or before the expiration of the time period
described in that subsection, revoke the conditional approval
granted under that subsection.
‘‘SEC. 355. DEBENTURES.
‘‘(a) IN GENERAL.—The Administrator may guarantee the timely
payment of principal and interest, as scheduled, on debentures
issued by any New Markets Venture Capital company.
‘‘(b) TERMS AND CONDITIONS.—The Administrator may make
guarantees under this section on such terms and conditions as
it deems appropriate, except that the term of any debenture guaranteed under this section shall not exceed 15 years.
‘‘(c) FULL FAITH AND CREDIT OF THE UNITED STATES.—The
full faith and credit of the United States is pledged to pay all
amounts that may be required to be paid under any guarantee
under this part.
‘‘(d) MAXIMUM GUARANTEE.—
‘‘(1) IN GENERAL.—Under this section, the Administrator
may guarantee the debentures issued by a New Markets Venture Capital company only to be extent that the total face
amount of outstanding guaranteed debentures of such company
does not exceed 150 percent of the private capital of the company, as determined by the Administrator.
‘‘(2) TREATMENT OF CERTAIN FEDERAL FUNDS.—For the purposes of paragraph (1), private capital shall include capital
that is considered to be Federal funds, if such capital is contributed by an investor other than an agency or department of
the Federal Government.
‘‘SEC. 356. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.
‘‘(a) ISSUANCE.—The Administrator may issue trust certificates
representing ownership of all or a fractional part of debentures
issued by a New Markets Venture Capital company and guaranteed
by the Administrator under this part, if such certificates are based
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PUBLIC LAW 106–554—APPENDIX H
114 STAT. 2763A–659
on and backed by a trust or pool approved by the Administrator
and composed solely of guaranteed debentures.
‘‘(b) GUARANTEE.—
‘‘(1) IN GENERAL.—The Administrator may, under such
terms and conditions as it deems appropriate, guarantee the
timely payment of the principal of and interest on trust certificates issued by the Administrator or its agents for purposes
of this section.
‘‘(2) LIMITATION.—Each guarantee under this subsection
shall be limited to the extent of principal and interest on
the guaranteed debentures that compose the trust or pool.
‘‘(3) PREPAYMENT OR DEFAULT.—In the event that a debenture in a trust or pool is prepaid, or in the event of default
of such a debenture, the guarantee of timely payment of principal and interest on the trust certificates shall be reduced
in proportion to the amount of principal and interest such
prepaid debenture represents in the trust or pool. Interest
on prepaid or defaulted debentures shall accrue and be guaranteed by the Administrator only through the date of payment
of the guarantee. At any time during its term, a trust certificate
may be called for redemption due to prepayment or default
of all debentures.
‘‘(c) FULL FAITH AND CREDIT OF THE UNITED STATES.—The
full faith and credit of the United States is pledged to pay all
amounts that may be required to be paid under any guarantee
of a trust certificate issued by the Administrator or its agents
under this section.
‘‘(d) FEES.—The Administrator shall not collect a fee for any
guarantee of a trust certificate under this section, but any agent
of the Administrator may collect a fee approved by the Administrator for the functions described in subsection (f )(2).
‘‘(e) SUBROGATION AND OWNERSHIP RIGHTS.—
‘‘(1) SUBROGATION.—In the event the Administrator pays
a claim under a guarantee issued under this section, it shall
be subrogated fully to the rights satisfied by such payment.
‘‘(2) OWNERSHIP RIGHTS.—No Federal, State, or local law
shall preclude or limit the exercise by the Administrator of
its ownership rights in the debentures residing in a trust or
pool against which trust certificates are issued under this section.
‘‘(f ) MANAGEMENT AND ADMINISTRATION.—
‘‘(1) REGISTRATION.—The Administrator may provide for
a central registration of all trust certificates issued under this
section.
‘‘(2) CONTRACTING OF FUNCTIONS.—
‘‘(A) IN GENERAL.—The Administrator may contract
with an agent or agents to carry out on behalf of the
Administrator the pooling and the central registration functions provided for in this section including, notwithstanding
any other provision of law—
‘‘(i) maintenance, on behalf of and under the direction of the Administrator, of such commercial bank
accounts or investments in obligations of the United
States as may be necessary to facilitate the creation
of trusts or pools backed by debentures guaranteed
under this part; and
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‘‘(ii) the issuance of trust certificates to facilitate
the creation of such trusts or pools.
‘‘(B) FIDELITY BOND OR INSURANCE REQUIREMENT.—Any
agent performing functions on behalf of the Administrator
under this paragraph shall provide a fidelity bond or insurance in such amounts as the Administrator determines
to be necessary to fully protect the interests of the United
States.
‘‘(3) REGULATION OF BROKERS AND DEALERS.—The Administrator may regulate brokers and dealers in trust certificates
issued under this section.
‘‘(4) ELECTRONIC REGISTRATION.—Nothing in this subsection
may be construed to prohibit the use of a book-entry or other
electronic form of registration for trust certificates issued under
this section.
‘‘SEC. 357. FEES.
‘‘Except as provided in section 356(d), the Administrator may
charge such fees as it deems appropriate with respect to any guarantee or grant issued under this part.
‘‘SEC. 358. OPERATIONAL ASSISTANCE GRANTS.
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORITY.—In accordance with this section, the
Administrator may make grants to New Markets Venture Capital companies and to other entities, as authorized by this
part, to provide operational assistance to smaller enterprises
financed, or expected to be financed, by such companies or
other entities.
‘‘(2) TERMS.—Grants made under this subsection shall be
made over a multiyear period not to exceed 10 years, under
such other terms as the Administrator may require.
‘‘(3) GRANTS TO SPECIALIZED SMALL BUSINESS INVESTMENT
COMPANIES.—
‘‘(A) AUTHORITY.—In accordance with this section, the
Administrator may make grants to specialized small business investment companies to provide operational assistance to smaller enterprises financed, or expected to be
financed, by such companies after the effective date of
the New Markets Venture Capital Program Act of 2000.
‘‘(B) USE OF FUNDS.—The proceeds of a grant made
under this paragraph may be used by the company receiving such grant only to provide operational assistance in
connection with an equity investment (made with capital
raised after the effective date of the New Markets Venture
Capital Program Act of 2000) in a business located in
a low-income geographic area.
‘‘(C) SUBMISSION OF PLANS.—A specialized small business investment company shall be eligible for a grant under
this section only if the company submits to the Administrator, in such form and manner as the Administrator
may require, a plan for use of the grant.
‘‘(4) GRANT AMOUNT.—
‘‘(A) NEW MARKETS VENTURE CAPITAL COMPANIES.—The
amount of a grant made under this subsection to a New
Markets Venture Capital company shall be equal to the
resources (in cash or in kind) raised by the company under
section 354(d)(2).
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PUBLIC LAW 106–554—APPENDIX H
114 STAT. 2763A–661
‘‘(B) OTHER ENTITIES.—The amount of a grant made
under this subsection to any entity other than a New
Markets Venture Capital company shall be equal to the
resources (in cash or in kind) raised by the entity in accordance with the requirements applicable to New Market Venture Capital companies set forth in section 354(d)(2).
‘‘(5) PRO RATA REDUCTIONS.—If the amount made available
to carry out this section is insufficient for the Administrator
to provide grants in the amounts provided for in paragraph
(4), the Administrator shall make pro rata reductions in the
amounts otherwise payable to each company and entity under
such paragraph.
‘‘(b) SUPPLEMENTAL GRANTS.—
‘‘(1) IN GENERAL.—The Administrator may make supplemental grants to New Markets Venture Capital companies
and to other entities, as authorized by this part under such
terms as the Administrator may require, to provide additional
operational assistance to smaller enterprises financed, or
expected to be financed, by the companies.
‘‘(2) MATCHING REQUIREMENT.—The Administrator may
require, as a condition of any supplemental grant made under
this subsection, that the company or entity receiving the grant
provide from resources (in a cash or in kind), other then those
provided by the Administrator, a matching contribution equal
to the amount of the supplemental grant.
‘‘(c) LIMITATION.—None of the assistance made available under
this section may be used for any overhead or general and administrative expense of a New Markets Venture Capital company or
a specialized small business investment company.
‘‘SEC. 359. BANK PARTICIPATION.
‘‘(a) IN GENERAL.—Except as provided in subsection (b), any
national bank, any member bank of the Federal Reserve System,
and (to the extent permitted under applicable State law) any
insured bank that is not a member of such system, may invest
in any New Markets Venture Capital company, or in any entity
established to invest solely in New Markets Venture Capital companies.
‘‘(b) LIMITATION.—No bank described in subsection (a) may
make investments described in such subsection that are greater
than 5 percent of the capital and surplus of the bank.
‘‘SEC. 360. FEDERAL FINANCING BANK.
‘‘Section 318 shall not apply to any debenture issued by a
New Markets Venture Capital company under this part.
‘‘SEC. 361. REPORTING REQUIREMENT.
‘‘Each New Markets Venture Capital company that participates
in the program established under this part shall provide to the
Administrator such information as the Administrator may require,
including—
‘‘(1) information related to the measurement criteria that
the company proposed in its program application; and
‘‘(2) in each case in which the company under this part
makes an investment in, or a loan or grant to, a business
that is not located in a low-income geographic area, a report
on the number and percentage of employees of the business
who reside in such areas.
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114 STAT. 2763A–662
PUBLIC LAW 106–554—APPENDIX H
‘‘SEC. 362. EXAMINATIONS.
‘‘(a) IN GENERAL.—Each New Markets Venture Capital company
that participates in the program established under this part shall
be subject to examinations made at the direction of the Investment
Division of the Small Business Administration in accordance with
this section.
‘‘(b) ASSISTANCE OF PRIVATE SECTOR ENTITIES.—Examinations
under this section may be conducted with the assistance of a private
sector entity that has both the qualifications and the expertise
necessary to conduct such examinations.
‘‘(c) COSTS.—
‘‘(1) ASSESSMENT.—
‘‘(A) IN GENERAL.—The Administrator may assess the
cost of examinations under this section, including compensation of the examiners, against the company examined.
‘‘(B) PAYMENT.—Any company against which the
Administrator assesses costs under this paragraph shall
pay such costs.
‘‘(d) DEPOSIT OF FUNDS.—Funds collected under this section
shall be deposited in the account for salaries and expenses of
the Small Business Administration.
‘‘SEC. 363. INJUNCTIONS AND OTHER ORDERS.
‘‘(a) IN GENERAL.—Whenever, in the judgment of the Administrator, a New Markets Venture Capital company or any other
person has engaged or is about to engage in any acts or practices
which constitute or will constitute a violation of any provision
of this Act, or of any rule or regulation under this Act, or of
any order issued under this Act, the Administrator may make
application to the proper district court of the United States or
a United States court of any place subject to the jurisdiction of
the United States for an order enjoining such acts or practices,
or for an order enforcing compliance with such provision, rule,
regulation, or order, and such courts shall have jurisdiction of
such actions and, upon a showing by the Administrator that such
New Markets Venture Capital company or other person has engaged
or is about to engage in any such acts or practices, a permanent
or temporary injunction, restraining order, or other order, shall
be granted without bond.
‘‘(b) JURISDICTION.—In any proceeding under subsection (a),
the court as a court of equity may, to such extent as it deems
necessary, take exclusive jurisdiction of the New Market Venture
Capital company and the assets thereof, wherever located, and
the court shall have jurisdiction in any such proceeding to appoint
a trustee or receiver to hold or administer under the direction
of the court the assets so possessed.
‘‘(c) ADMINISTRATOR AS TRUSTEE OR RECEIVER.—
‘‘(1) AUTHORITY.—The Administrator may act as trustee
or receiver of a New Markets Venture Capital company.
‘‘(2) Appointment.—Upon request of the Administrator, the
court may appoint the Administrator to act as a trustee or
receiver of a New Markets Venture Capital company unless
the court deems such appointment inequitable or otherwise
inappropriate by reason of the special circumstances involved.
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PUBLIC LAW 106–554—APPENDIX H
114 STAT. 2763A–663
‘‘SEC. 364. ADDITIONAL PENALTIES FOR NONCOMPLIANCE.
‘‘(a) IN GENERAL.—With respect to any New Markets Venture
Capital company that violates or fails to comply with any of the
provisions of this Act, of any regulation issued under this Act,
or of any participation agreement entered into under this Act,
the Administrator may in accordance with this section—
‘‘(1) void the participation agreement between the Administrator and the company; and
‘‘(2) cause the company to forfeit all of the rights and
privileges derived by the company from this Act.
‘‘(b) ADJUDICATION OF NONCOMPLIANCE.—
‘‘(1) IN GENERAL.—Before the Administrator may cause a
New Markets Venture Capital company to forfeit rights or
privileges under subsection (a), a court of the United States
of competent jurisdiction must find that the company committed
a violation, or failed to comply, in a cause of action brought
for that purpose in the district, territory, or other place subject
to the jurisdiction of the United States, in which the principal
office of the company is located.
‘‘(2) PARTIES AUTHORIZED TO FILE CAUSES OF ACTION.—
Each cause of action brought by the United States under this
subsection shall be brought by the Administrator or by the
Attorney General.
‘‘SEC. 365. UNLAWFUL ACTS AND OMISSIONS; BREACH OF FIDUCIARY
DUTY.
‘‘(a) PARTIES DEEMED TO COMMIT A VIOLATION.—Whenever any
New Markets Venture Capital company violates any provision of
this Act, of a regulation issued under this Act, or of a participation
agreement entered into under this Act, by reason of its failure
to comply with its terms or by reason of its engaging in any
act or practice that constitutes or will constitute a violation thereof,
such violation shall also be deemed to be a violation and an unlawful
act committed by any person who, directly or indirectly, authorizes,
orders, participates in, causes, brings about, counsels, aids, or abets
in the commission of any acts, practices, or transactions that constitute or will constitute, in whole or in part, such violation.
‘‘(b) FIDUCIARY DUTIES.—It shall be unlawful for any officer,
director, employee, agent, or other participant in the management
or conduct of the affairs of a New Markets Venture Capital company
to engage in any act or practice, or to omit any act or practice,
in breach of the person’s fiduciary duty as such officer, director,
employee, agent, or participant if, as a result thereof, the company
suffers or is in imminent danger of suffering financial loss or
other damage.
‘‘(c) UNLAWFUL ACTS.—Except with the written consent of the
Administrator, it shall be unlawful—
‘‘(1) for any person to take office as an officer, director,
or employee of any New Markets Venture Capital company,
or to become an agent or participant in the conduct of the
affairs or management of such a company, if the person—
‘‘(A) has been convicted of a felony, or any other criminal offense involving dishonesty or breach of trust; or
‘‘(B) has been found civilly liable in damages, or has
been permanently or temporarily enjoined by an order,
judgment, or decree of a court of competent jurisdiction,
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114 STAT. 2763A–664
PUBLIC LAW 106–554—APPENDIX H
by reason of any act or practice involving fraud, or breach
of trust; and
‘‘(2) for any person continue to serve in any of the capacities
described in paragraph (1), if—
‘‘(A) the person is convicted of a felony, or any other
criminal offense involving dishonesty or breach of trust;
or
‘‘(B) the person is found civilly liable in damages, or
is permanently or temporarily enjoined by an order, judgment, or decree of a court of competent jurisdiction, by
reason of any act or practice involving fraud or breach
of trust.
‘‘SEC. 366. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS.
‘‘Using the procedures for removing or suspending a director
or an officer of a licensee set forth in section 313 (to the extent
such procedures are not inconsistent with the requirements of this
part), the Administrator may remove or suspend any director or
officer of any New Markets Venture Capital company.
‘‘SEC. 367. REGULATIONS.
‘‘The Administrator may issue such regulations as it deems
necessary to carry out the provisions of this part in accordance
with its purposes.
‘‘SEC. 368. AUTHORIZATIONS OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There are authorized to be appropriated
for fiscal years 2001 through 2006, to remain available until
expended, the following sums:
‘‘(1) Such subsidy budget authority as may be necessary
to guarantee $150,000,000 of debentures under this part.
‘‘(2) $30,000,000 to make grants under this part.
‘‘(b) FUNDS COLLECTED FOR EXAMINATIONS.—Funds deposited
under section 362(c)(2) are authorized to be appropriated only for
the costs of examinations under section 362 and for the costs
of other oversight activities with respect to the program established
under this part.’’.
(c) CONFORMING AMENDMENT.—Section 20(e)(1)(C) of the Small
Business Act (15 U.S.C. 631 note) is amended by inserting ‘part
A of ’ before ‘‘title III’’.
(d) CALCULATION OF MAXIMUM AMOUNT OF SBIC LEVERAGE.—
(1) MAXIMUM LEVERAGE.—Section 303(b)(2) of the Small
Business Investment Act of 1958 (15 U.S.C. 683(b)(2)) is amended to read as follows:
‘‘(2) MAXIMUM LEVERAGE.—
‘‘(A) IN GENERAL.—After March 31, 1993, the maximum
amount of outstanding leverage made available to a company licensed under section 301(c) of this Act shall be
determined by the amount of such company’s private
capital—
‘‘(i) if the company has private capital of not more
than $15,000,000, the total amount of leverage shall
not exceed 300 percent of private capital;
‘‘(ii) if the company has private capital of more
than $15,000,000 but not more than $30,000,000, the
total amount of leverage shall not exceed $45,000,000
plus 200 percent of the amount of private capital over
$15,000,000; and
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PUBLIC LAW 106–554—APPENDIX H
114 STAT. 2763A–665
‘‘(iii) if the company has private capital of more
than $30,000,000, the total amount of leverage shall
not exceed $75,000,000 plus 100 percent of the amount
of private capital over $30,000,000 but not to exceed
an additional $15,000,000.
‘‘(B) ADJUSTMENTS.—
‘‘(i) IN GENERAL.—The dollar amounts in clauses
(i), (ii), and (iii) of subparagraph (A) shall be adjusted
annually to reflect increases in the Consumer Price
Index established by the Bureau of Labor Statistics
of the Department of Labor.
‘‘(ii) INITIAL ADJUSTMENTS.—The initial adjustments made under this subparagraph after the date
of the enactment of the Small Business Reauthorization Act of 1937 shall reflect only increases from March
31, 1993.
‘‘(C) INVESTMENTS IN LOW-INCOME GEOGRAPHIC
AREAS.—In calculating the outstanding leverage of a company for the purposes of subparagraph (A), the Administrator shall not include the amount of the cost basis of
any equity investment made by the company in a smaller
enterprise located in a low-income geographic area (as
defined in section 351), to the extent that the total of
such amounts does not exceed 50 percent of the company’s
private capital.’’.
(2) MAXIMUM AGGREGATE LEVERAGE.—Section 303(b)(4) of
the Small Business Investment Act of 1958 (15 U.S.C. 683(b)(4))
is amended by adding at the end the following new subparagraph:
‘‘(D) INVESTMENTS IN LOW-INCOME GEOGRAPHIC
AREAS.—In calculating the aggregate outstanding leverage
of a company for the purposes of subparagraph (A), the
Administrator shall not include the amount of the cost
basis of any equity investment made by the company in
a smaller enterprise located in a low-income geographic
area (as defined in section 351), to the extent that the
total of such amounts does not exceed 50 percent of the
company’s private capital.’’.
(e) BANKRUPTCY EXEMPTION FOR NEW MARKETS VENTURE CAPITAL COMPANIES.—Section 109(b)(2) of title 11, United States Code,
is amended by inserting ‘‘a New Markets Venture Capital company
as defined in section 351 of the Small Business Investment Act
of 1958,’’ after ‘‘homestead association,’’.
(f ) FEDERAL SAVINGS ASSOCIATIONS.—Section 5(c)(4) of the
Home Owners’ Loan Act (12 U.S.C. 1464(c)(4)) is amended by adding
at the end the following:
‘‘(F) NEW MARKETS VENTURE CAPITAL COMPANIES.—A
Federal savings association may invest in stock, obligations,
or other securities of any New Markets Venture Capital
company as defined in section 351 of the Small Business
Investment Act of 1958, except that a Federal savings
association may not make any investment under this
subparagraph if its aggregate outstanding investment
under this subparagraph would exceed 5 percent of the
capital and surplus of such savings association.’’.
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114 STAT. 2763A–666
PUBLIC LAW 106–554—APPENDIX H
SEC. 2. BUSINESSLINC GRANTS AND COOPERATIVE AGREEMENTS.
Section 8 of the Small Business Act (15 U.S.C. 637) is amended
by adding at the end the following:
‘‘(n) BUSINESS GRANTS AND COOPERATIVE AGREEMENTS.—
‘‘(1) IN GENERAL.—In accordance with this subsection, the
Administrator may make grants to and enter into cooperative
agreements with any coalition of private entities, public entities,
or any combination of private and public entities—
‘‘(A) to expand business-to-business relationships
between large and small businesses; and
‘‘(B) to provide businesses, directly or indirectly, with
online information and a database of companies that are
interested in mentor-protege programs or communitybased, statewide, or local business development programs.
‘‘(2) MATCHING REQUIREMENT.—Subject to subparagraph
(B), the Administrator may make a grant to a coalition under
paragraph (1) only if the coalition provides for activities
described in paragraph (1)(A) or (1)(B) an amount, either in
kind or in cash, equal to the grant amount.
‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection $6,600,000,
to remain available until expended, for each of fiscal years
2001 through 2006.’’.
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PUBLIC LAW 106–554—APPENDIX I
114 STAT. 2763A–667
APPENDIX I—H.R. 5667
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Small Business
Reauthorization Act of 2000’’.
(b) TABLE OF CONTENTS.—The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
TITLE I—SMALL BUSINESS INNOVATION RESEARCH PROGRAM
101. Short title.
102. Findings.
103. Extension of SBIR program.
104. Annual report.
105. Third phase assistance.
106. Report on programs for annual performance plan.
107. Output and outcome data.
108. National Research Council reports.
109. Federal agency expenditures for the SBIR program.
110. Policy directive modifications.
111. Federal and State technology partnership program.
112. Mentoring networks.
113. Simplified reporting requirements.
114. Rural outreach program extension.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
201.
202.
203.
204.
205.
206.
207.
208.
209.
210.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
TITLE III—CERTIFIED DEVELOPMENT COMPANY PROGRAM
301. Short title.
302. Women-owned businesses.
303. Maximum debenture size.
304. Fees.
305. Premier certified lenders program.
306. Sale of certain defaulted loans.
307. Loan liquidation.
TITLE II—BUSINESS LOAN PROGRAMS
Short title.
Levels of participation.
Loan amounts.
Interest on defaulted loans.
Prepayment of loans.
Guarantee fees.
Lease terms.
Appraisals for loans secured by real property.
Sale of guaranteed loans made for export purposes.
Microloan program.
TITLE IV—CORRECTIONS TO THE SMALL BUSINESS INVESTMENT ACT OF
1958
Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Investment in small business investment companies.
Sec. 404. Subsidy fees.
Sec. 405. Distributions.
Sec. 406. Conforming amendment.
TITLE V—REAUTHORIZATION OF SMALL BUSINESS PROGRAMS
Sec. 501. Short title.
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114 STAT. 2763A–668
PUBLIC LAW 106–554—APPENDIX I
Sec. 502. Reauthorization of small business programs.
Sec. 503. Additional reauthorizations.
Sec. 504. Cosponsorship.
TITLE VI—HUBZONE PROGRAM
Sec.
Sec.
Sec.
Sec.
601.
602.
603.
604.
Subtitle A—HUBZones in Native America
Short title.
HUBZone small business concern.
Qualified HUBZone small business concern.
Other definitions.
Sec.
Sec.
Sec.
Sec.
Sec.
611.
612.
613.
614.
615.
Subtitle B—Other HUBZone Provisions
Definitions.
Eligible contracts.
HUBZone redesignated areas.
Community development.
Reference corrections.
TITLE VII—NATIONAL WOMEN’S BUSINESS COUNCIL REAUTHORIZATION
Sec. 701. Short title.
Sec. 702. Membership of the Council.
Sec. 703. Repeal of procurement project.
Sec. 704. Studies and other research.
Sec. 705. Authorization of appropriations.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
801.
802.
803.
804.
805.
806.
807.
808.
809.
810.
811.
TITLE VIII—MISCELLANEOUS PROVISIONS
Loan application processing.
Application of ownership requirements.
Subcontracting preference for veterans.
Small Business Development Center Program funding.
Surety bonds.
Size standards.
Native Hawaiian organizations under section 8(a).
National Veterans Business Development Corporation correction.
Private sector resources for SCORE.
Contract data collection.
Procurement program for women-owned small business concerns.
TITLE I—SMALL BUSINESS INNOVATION
RESEARCH PROGRAM
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Small Business Innovation
Research Program Reauthorization Act of 2000’’.
SEC. 102. FINDINGS.
Congress finds that—
(1) the small business innovation research program established under the Small Business Innovation Development Act
of 1982, and reauthorized by the Small Business Research
and Development Enhancement Act of 1992 (in this title
referred to as the ‘‘SBIR program’’) is highly successful in
involving small businesses in federally funded research and
development;
(2) the SBIR program made the cost-effective and unique
research and development capabilities possessed by the small
businesses of the Nation available to Federal agencies and
departments;
(3) the innovative goods and services developed by small
businesses that participated in the SBIR program have produced innovations of critical importance in a wide variety of
high-technology fields, including biology, medicine, education,
and defense;
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PUBLIC LAW 106–554—APPENDIX I
114 STAT. 2763A–669
(4) the SBIR program is a catalyst in the promotion of
research and development, the commercialization of innovative
technology, the development of new products and services, and
the continued excellence of this Nation’s high-technology industries; and
(5) the continuation of the SBIR program will provide
expanded opportunities for one of the Nation’s vital resources,
its small businesses, will foster invention, research, and technology, will create jobs, and will increase this Nation’s competitiveness in international markets.
SEC. 103. EXTENSION OF SBIR PROGRAM.
Section 9(m) of the Small Business Act (15 U.S.C. 638(m))
is amended to read as follows:
‘‘(m) TERMINATION.—The authorization to carry out the Small
Business Innovation Research Program established under this section shall terminate on September 30, 2008.’’.
SEC. 104. ANNUAL REPORT.
Section 9(b)(7) of the Small Business Act (15 U.S.C. 638(b)(7))
is amended by striking ‘‘and the Committee on Small Business
of the House of Representatives’’ and inserting ‘‘, and to the Committee on Science and the Committee on Small Business of the House
of Representatives,’’.
SEC. 105. THIRD PHASE ASSISTANCE.
Section 9(e)(4)(C)(i) of the Small Business Act (15 U.S.C.
638(e)(4)(C)(i)) is amended by striking ‘‘; and’’ and inserting ‘‘;
or’’.
SEC. 106. REPORT ON PROGRAMS FOR ANNUAL PERFORMANCE PLAN.
Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) is
amended—
(1) in paragraph (7), by striking ‘‘and’’ at the end;
(2) in paragraph (8), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(9) include, as part of its annual performance plan as
required by subsections (a) and (b) of section 1115 of title
31, United States Code, a section on its SBIR program, and
shall submit such section to the Committee on Small Business
of the Senate, and the Committee on Science and the Committee
on Small Business of the House of Representatives; and’’.
SEC. 107. OUTPUT AND OUTCOME DATA.
(a) COLLECTION.—Section 9(g) of the Small Business Act (15
U.S.C. 638(g)), as amended by section 106 of this Act, is further
amended by adding at the end the following:
‘‘(10) collect, and maintain in a common format in accordance with subsection (v), such information from awardees as
is necessary to assess the SBIR program, including information
necessary to maintain the database described in subsection
(k).’’.
(b) REPORT TO CONGRESS.—Section 9(b)(7) of the Small Business
Act (15 U.S.C. 638(b)(7)), as amended by section 104 of this Act,
is further amended by inserting before the period at the end ‘‘,
including the data on output and outcomes collected pursuant to
subsections (g)(10) and (o)(9), and a description of the extent to
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114 STAT. 2763A–670
PUBLIC LAW 106–554—APPENDIX I
which Federal agencies are providing in a timely manner information needed to maintain the database described in subsection (k)’’.
(c) DATABASE.—Section 9(k) of the Small Business Act (15
U.S.C. 638(k)) is amended to read as follows:
‘‘(k) DATABASE.—
‘‘(1) PUBLIC DATABASE.—Not later than 180 days after the
date of the enactment of the Small Business Innovation
Research Program Reauthorization Act of 2000, the Administrator shall develop, maintain, and make available to the public
a searchable, up-to-date, electronic database that includes—
‘‘(A) the name, size, location, and an identifying number assigned by the Administrator, of each small business
concern that has received a first phase or second phase
SBIR award from a Federal agency;
‘‘(B) a description of each first phase or second phase
SBIR award received by that small business concern,
including—
‘‘(i) an abstract of the project funded by the award,
excluding any proprietary information so identified by
the small business concern;
‘‘(ii) the Federal agency making the award; and
‘‘(iii) the date and amount of the award;
‘‘(C) an identification of any business concern or
subsidiary established for the commercial application of
a product or service for which an SBIR award is made;
and
‘‘(D) information regarding mentors and Mentoring
Networks, as required by section 35(d).
‘‘(2) GOVERNMENT DATABASE.—Not later than 180 days after
the date of the enactment of the Small Business Innovation
Research Program Reauthorization Act of 2000, the Administrator, in consultation with Federal agencies required to have
an SBIR program pursuant to subsection (f )(1), shall develop
and maintain a database to be used solely for SBIR program
evaluation that—
‘‘(A) contains for each second phase award made by
a Federal agency—
‘‘(i) information collected in accordance with paragraph (3) on revenue from the sale of new products
or services resulting from the research conducted under
the award;
‘‘(ii) information collected in accordance with paragraph (3) on additional investment from any source,
other than first phase or second phase SBIR or STTR
awards, to further the research and development conducted under the award; and
‘‘(iii) any other information received in connection
with the award that the Administrator, in conjunction
with the SBIR program managers of Federal agencies,
considers relevant and appropriate;
‘‘(B) includes any narrative information that a small
business concern receiving a second phase award voluntarily submits to further describe the outputs and outcomes
of its awards;
‘‘(C) includes for each applicant for a first phase or
second phase award that does not receive such an award—
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114 STAT. 2763A–671
‘‘(i) the name, size, and location, and an identifying
number assigned by the Administration;
‘‘(ii) an abstract of the project; and
‘‘(iii) the Federal agency to which the application
was made;
‘‘(D) includes any other data collected by or available
to any Federal agency that such agency considers may
be useful for SBIR program evaluation; and
‘‘(E) is available for use solely for program evaluation
purposes by the Federal Government or, in accordance
with policy directives issued by the Administration, by
other authorized persons who are subject to a use and
nondisclosure agreement with the Federal Government
covering the use of the database.
‘‘(3) UPDATING INFORMATION FOR DATABASE.—
‘‘(A) IN GENERAL.—A small business concern applying
for a second phase award under this section shall be
required to update information in the database established
under this subsection for any prior second phase award
received by that small business concern. In complying with
this paragraph, a small business concern may apportion
sales or additional investment information relating to more
than one second phase award among those awards, if it
notes the apportionment for each award.
‘‘(B) ANNUAL UPDATES UPON TERMINATION.—A small
business concern receiving a second phase award under
this section shall—
‘‘(i) update information in the database concerning
that award at the termination of the award period;
and
‘‘(ii) be requested to voluntarily update such
information annually thereafter for a period of 5 years.
‘‘(4) PROTECTION OF INFORMATION.—Information provided
under paragraph (2) shall be considered privileged and confidential and not subject to disclosure pursuant to section 552
of title 5, United States Code.
‘‘(5) RULE OF CONSTRUCTION.—Inclusion of information in
the database under this subsection shall not be considered
to be publication for purposes of subsection (a) or (b) of section
102 of title 35, United States Code.’’.
SEC. 108. NATIONAL RESEARCH COUNCIL REPORTS.
(a) STUDY AND RECOMMENDATIONS.—The head of each agency
with a budget of more than $50,000,000 for its SBIR program
for fiscal year 1999, in consultation with the Small Business
Administration, shall, not later than 6 months after the date of
the enactment of this Act, cooperatively enter into an agreement
with the National Academy of Sciences for the National Research
Council to—
(1) conduct a comprehensive study of how the SBIR program has stimulated technological innovation and used small
businesses to meet Federal research and development needs,
including—
(A) a review of the value to the Federal research agencies of the research projects being conducted under the
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114 STAT. 2763A–672
PUBLIC LAW 106–554—APPENDIX I
SBIR program, and of the quality of research being conducted by small businesses participating under the program, including a comparison of the value of projects conducted under the SBIR program to those funded by other
Federal research and development expenditures;
(B) to the extent practicable, an evaluation of the economic benefits achieved by the SBIR program, including
the economic rate of return, and a comparison of the economic benefits, including the economic rate of return,
achieved by the SBIR program with the economic benefits,
including the economic rate of return, of other Federal
research and development expenditures;
(C) an evaluation of the noneconomic benefits achieved
by the SBIR program over the life of the program;
(D) a comparison of the allocation for fiscal year 2000
of Federal research and development funds to small
businesses with such allocation for fiscal year 1983, and
an analysis of the factors that have contributed to such
allocation; and
(E) an analysis of whether Federal agencies, in fulfilling their procurement needs, are making sufficient effort
to use small businesses that have completed a second phase
award under the SBIR program; and
(2) make recommendations with respect to—
(A) measures of outcomes for strategic plans submitted
under section 306 of title 5, United States Code, and
performance plans submitted under section 1115 of title
31, United States Code, of each Federal agency participating in the SBIR program;
(B) whether companies who can demonstrate project
feasibility, but who have not received a first phase award,
should be eligible for second phase awards, and the potential impact of such awards on the competitive selection
process of the program;
(C) whether the Federal Government should be permitted to recoup some or all of its expenses if a controlling
interest in a company receiving an SBIR award is sold
to a foreign company or to a company that is not a small
business concern;
(D) how to increase the use by the Federal Government
in its programs and procurements of technology-oriented
small businesses; and
(E) improvements to the SBIR program, if any are
considered appropriate.
(b) PARTICIPATION BY SMALL BUSINESS.—
(1) IN GENERAL.—In a manner consistent with law and
with National Research Council study guidelines and procedures, knowledgeable individuals from the small business
community with experience in the SBIR program shall be
included—
(A) in any panel established by the National Research
Council for the purpose of performing the study conducted
under this section; and
(B) among those who are asked by the National
Research Council to peer review the study.
(2) CONSULTATION.—To ensure that the concerns of small
business are appropriately considered under this subsection,
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114 STAT. 2763A–673
the National Research Council shall consult with and consider
the views of the Office of Technology and the Office of Advocacy
of the Small Business Administration and other interested parties, including entities, organizations, and individuals actively
engaged in enhancing or developing the technological capabilities of small business concerns.
(c) PROGRESS REPORTS.—The National Research Council shall
provide semiannual progress reports on the study conducted under
this section to the Committee on Science and the Committee on
Small Business of the House of Representatives, and to the Committee on Small Business of the Senate.
(d) REPORT.—The National Research Council shall transmit
to the heads of agencies entering into an agreement under this
section and to the Committee on Science and the Committee on
Small Business of the House of Representatives, and to the Committee on Small Business of the Senate—
(1) not later than 3 years after the date of the enactment
of this Act, a report including the results of the study conducted
under subsection (a)(1) and recommendations made under subsection (a)(2); and
(2) not later than 6 years after that date of the enactment,
an update of such report.
SEC. 109. FEDERAL AGENCY EXPENDITURES FOR THE SBIR PROGRAM.
Section 9(i) of the Small Business Act (15 U.S.C. 638(i)) is
amended—
(1) by striking ‘‘(i) Each Federal’’ and inserting the following:
‘‘(i) ANNUAL REPORTING.—
‘‘(1) IN GENERAL.—Each Federal’’; and
(2) by adding at the end the following:
‘‘(2) CALCULATION OF EXTRAMURAL BUDGET.—
‘‘(A) METHODOLOGY.—Not later than 4 months after
the date of the enactment of each appropriations Act for
a Federal agency required by this section to have an SBIR
program, the Federal agency shall submit to the Administrator a report, which shall include a description of the
methodology used for calculating the amount of the extramural budget of that Federal agency.
‘‘(B) ADMINISTRATOR’S ANALYSIS.—The Administrator
shall include an analysis of the methodology received from
each Federal agency referred to in subparagraph (A) in
the report required by subsection (b)(7).’’.
SEC. 110. POLICY DIRECTIVE MODIFICATIONS.
Section 9( j) of the Small Business Act (15 U.S.C. 638( j)) is
amended by adding at the end the following:
‘‘(3) ADDITIONAL MODIFICATIONS.—Not later than 120 days
after the date of the enactment of the Small Business Innovation Research Program Reauthorization Act of 2000, the
Administrator shall modify the policy directives issued pursuant
to this subsection—
‘‘(A) to clarify that the rights provided for under paragraph (2)(A) apply to all Federal funding awards under
this section, including the first phase (as described in subsection (e)(4)(A)), the second phase (as described in subsection (e)(4)(B)), and the third phase (as described in
subsection (e)(4)(C));
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114 STAT. 2763A–674
PUBLIC LAW 106–554—APPENDIX I
‘‘(B) to provide for the requirement of a succinct
commercialization plan with each application for a second
phase award that is moving toward commercialization;
‘‘(C) to require agencies to report to the Administration,
not less frequently than annually, all instances in which
an agency pursued research, development, or production
of a technology developed by a small business concern
using an award made under the SBIR program of that
agency, and determined that it was not practicable to enter
into a follow-on non-SBIR program funding agreement with
the small business concern, which report shall include,
at a minimum—
‘‘(i) the reasons why the follow-on funding agreement with the small business concern was not practicable;
‘‘(ii) the identity of the entity with which the
agency contracted to perform the research, development, or production; and
‘‘(iii) a description of the type of funding agreement
under which the research, development, or production
was obtained; and
‘‘(D) to implement subsection (v), including establishing
standardized procedures for the provision of information
pursuant to subsection (k)(3).’’.
SEC. 111. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PROGRAM.
(a) FINDINGS.—Congress finds that—
(1) programs to foster economic development among small
high-technology firms vary widely among the States;
(2) States that do not aggressively support the development
of small high-technology firms, including participation by small
business concerns in the SBIR program, are at a competitive
disadvantage in establishing a business climate that is conducive to technology development; and
(3) building stronger national, State, and local support
for science and technology research in these disadvantaged
States will expand economic opportunities in the United States,
create jobs, and increase the competitiveness of the United
States in the world market.
(b) FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PROGRAM.—
The Small Business Act (15 U.S.C. 631 et seq.) is amended—
(1) by redesignating section 34 as section 36; and
(2) by inserting after section 33 the following:
‘‘SEC. 34. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PROGRAM.
‘‘(a) DEFINITIONS.—In this section and section 35, the following
definitions apply:
‘‘(1) APPLICANT.—The term ‘applicant’ means an entity,
organization, or individual that submits a proposal for an award
or a cooperative agreement under this section.
‘‘(2) BUSINESS ADVICE AND COUNSELING.—The term ‘business advice and counseling’ means providing advice and assistance on matters described in section 35(c)(2)(B) to small business concerns to guide them through the SBIR and STTR
program process, from application to award and successful
completion of each phase of the program.
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PUBLIC LAW 106–554—APPENDIX I
114 STAT. 2763A–675
‘‘(3) FAST PROGRAM.—The term ‘FAST program’ means
the Federal and State Technology Partnership Program established under this section.
‘‘(4) MENTOR.—The term ‘mentor’ means an individual
described in section 35(c)(2).
‘‘(5) MENTORING NETWORK.—The term ‘Mentoring Network’
means an association, organization, coalition, or other entity
(including an individual) that meets the requirements of section
35(c).
‘‘(6) RECIPIENT.—The term ‘recipient’ means a person that
receives an award or becomes party to a cooperative agreement
under this section.
‘‘(7) SBIR PROGRAM.—The term ‘SBIR program’ has the
same meaning as in section 9(e)(4).
‘‘(8) STATE.—The term ‘State’ means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, and American Samoa.
‘‘(9) STTR PROGRAM.—The term ‘STTR program’ has the
same meaning as in section 9(e)(6).
‘‘(b) ESTABLISHMENT OF PROGRAM.—The Administrator shall
establish a program to be known as the Federal and State Technology Partnership Program, the purpose of which shall be to
strengthen the technological competitiveness of small business concerns in the States.
‘‘(c) GRANTS AND COOPERATIVE AGREEMENTS.—
‘‘(1) JOINT REVIEW.—In carrying out the FAST program
under this section, the Administrator and the SBIR program
managers at the National Science Foundation and the Department of Defense shall jointly review proposals submitted by
applicants and may make awards or enter into cooperative
agreements under this section based on the factors for consideration set forth in paragraph (2), in order to enhance or develop
in a State—
‘‘(A) technology research and development by small
business concerns;
‘‘(B) technology transfer from university research to
technology-based small business concerns;
‘‘(C) technology deployment and diffusion benefiting
small business concerns;
‘‘(D) the technological capabilities of small business
concerns through the establishment or operation of consortia comprised of entities, organizations, or individuals,
including—
‘‘(i) State and local development agencies and entities;
‘‘(ii) representatives of technology-based small
business concerns;
‘‘(iii) industries and emerging companies;
‘‘(iv) universities; and
‘‘(v) small business development centers; and
‘‘(E) outreach, financial support, and technical assistance to technology-based small business concerns participating in or interested in participating in an SBIR program,
including initiatives—
‘‘(i) to make grants or loans to companies to pay
a portion or all of the cost of developing SBIR proposals;
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114 STAT. 2763A–676
PUBLIC LAW 106–554—APPENDIX I
‘‘(ii) to establish or operate a Mentoring Network
within the FAST program to provide business advice
and counseling that will assist small business concerns
that have been identified by FAST program participants, program managers of participating SBIR agencies, the Administration, or other entities that are
knowledgeable about the SBIR and STTR programs
as good candidates for the SBIR and STTR programs,
and that would benefit from mentoring, in accordance
with section 35;
‘‘(iii) to create or participate in a training program
for individuals providing SBIR outreach and assistance
at the State and local levels; and
‘‘(iv) to encourage the commercialization of technology developed through SBIR program funding.
‘‘(2) SELECTION CONSIDERATIONS.—In making awards or
entering into cooperative agreements under this section, the
Administrator and the SBIR program managers referred to
in paragraph (1)—
‘‘(A) may only consider proposals by applicants that
intend to use a portion of the Federal assistance provided
under this section to provide outreach, financial support,
or technical assistance to technology-based small business
concerns participating in or interested in participating in
the SBIR program; and
‘‘(B) shall consider, at a minimum—
‘‘(i) whether the applicant has demonstrated that
the assistance to be provided would address unmet
needs of small business concerns in the community,
and whether it is important to use Federal funding
for the proposed activities;
‘‘(ii) whether the applicant has demonstrated that
a need exists to increase the number or success of
small high-technology businesses in the State, as measured by the number of first phase and second phase
SBIR awards that have historically been received by
small business concerns in the State;
‘‘(iii) whether the projected costs of the proposed
activities are reasonable;
‘‘(iv) whether the proposal integrates and coordinates the proposed activities with other State and local
programs assisting small high-technology firms in the
State; and
‘‘(v) the manner in which the applicant will measure the results of the activities to be conducted.
‘‘(3) PROPOSAL LIMIT.—Not more than one proposal may
be submitted for inclusion in the FAST program under this
section to provide services in any one State in any 1 fiscal
year.
‘‘(4) PROCESS.—Proposals and applications for assistance
under this section shall be in such form and subject to such
procedures as the Administrator shall establish.
‘‘(d) COOPERATION AND COORDINATION.—In carrying out the
FAST program under this section, the Administrator shall cooperate
and coordinate with—
‘‘(1) Federal agencies required by section 9 to have an
SBIR program; and
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PUBLIC LAW 106–554—APPENDIX I
114 STAT. 2763A–677
‘‘(2) entities, organizations, and individuals actively
engaged in enhancing or developing the technological capabilities of small business concerns, including—
‘‘(A) State and local development agencies and entities;
‘‘(B) State committees established under the Experimental Program to Stimulate Competitive Research of the
National Science Foundation (as established under section
113 of the National Science Foundation Authorization Act
of 1988 (42 U.S.C. 1862g));
‘‘(C) State science and technology councils; and
‘‘(D) representatives of technology-based small business
concerns.
‘‘(e) ADMINISTRATIVE REQUIREMENTS.—
‘‘(1) COMPETITIVE BASIS.—Awards and cooperative agreements under this section shall be made or entered into, as
applicable, on a competitive basis.
‘‘(2) MATCHING REQUIREMENTS.—
‘‘(A) IN GENERAL.—The non-Federal share of the cost
of an activity (other than a planning activity) carried out
using an award or under a cooperative agreement under
this section shall be—
‘‘(i) 50 cents for each Federal dollar, in the case
of a recipient that will serve small business concerns
located in one of the 18 States receiving the fewest
SBIR first phase awards (as described in section
9(e)(4)(A));
‘‘(ii) except as provided in subparagraph (B), 1
dollar for each Federal dollar, in the case of a recipient
that will serve small business concerns located in one
of the 16 States receiving the greatest number of such
SBIR first phase awards; and
‘‘(iii) except as provided in subparagraph (B), 75
cents for each Federal dollar, in the case of a recipient
that will serve small business concerns located in a
State that is not described in clause (i) or (ii) that
is receiving such SBIR first phase awards.
‘‘(B) LOW-INCOME AREAS.—The non-Federal share of
the cost of the activity carried out using an award or
under a cooperative agreement under this section shall
be 50 cents for each Federal dollar that will be directly
allocated by a recipient described in subparagraph (A) to
serve small business concerns located in a qualified census
tract, as that term is defined in section 42(d)(5)(C)(ii) of
the Internal Revenue Code of 1986. Federal dollars not
so allocated by that recipient shall be subject to the matching requirements of subparagraph (A).
‘‘(C) TYPES OF FUNDING.—The non-Federal share of
the cost of an activity carried out by a recipient shall
be comprised of not less than 50 percent cash and not
more than 50 percent of indirect costs and in-kind contributions, except that no such costs or contributions may be
derived from funds from any other Federal program.
‘‘(D) RANKINGS.—For purposes of subparagraph (A),
the Administrator shall reevaluate the ranking of a State
once every 2 fiscal years, beginning with fiscal year 2001,
based on the most recent statistics compiled by the
Administrator.
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114 STAT. 2763A–678
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‘‘(3) DURATION.—Awards may be made or cooperative agreements entered into under this section for multiple years, not
to exceed 5 years in total.
‘‘(f ) REPORTS.—
‘‘(1) INITIAL REPORT.—Not later than 120 days after the
date of the enactment of the Small Business Innovation
Research Program Reauthorization Act of 2000, the Administrator shall prepare and submit to the Committee on Small
Business of the Senate and the Committee on Science and
the Committee on Small Business of the House of Representatives a report, which shall include, with respect to the FAST
program, including Mentoring Networks—
‘‘(A) a description of the structure and procedures of
the program;
‘‘(B) a management plan for the program; and
‘‘(C) a description of the merit-based review process
to be used in the program.
‘‘(2) ANNUAL REPORTS.—The Administrator shall submit an
annual report to the Committee on Small Business of the
Senate and the Committee on Science and the Committee on
Small Business of the House of Representatives regarding—
‘‘(A) the number and amount of awards provided and
cooperative agreements entered into under the FAST program during the preceding year;
‘‘(B) a list of recipients under this section, including
their location and the activities being performed with the
awards made or under the cooperative agreements entered
into; and
‘‘(C) the Mentoring Networks and the mentoring database, as provided for under section 35, including—
‘‘(i) the status of the inclusion of mentoring
information in the database required by section 9(k);
and
‘‘(ii) the status of the implementation and description of the usage of the Mentoring Networks.
‘‘(g) REVIEWS BY INSPECTOR GENERAL.—
‘‘(1) IN GENERAL.—The Inspector General of the Administration shall conduct a review of—
‘‘(A) the extent to which recipients under the FAST
program are measuring the performance of the activities
being conducted and the results of such measurements;
and
‘‘(B) the overall management and effectiveness of the
FAST program.
‘‘(2) REPORT.—During the first quarter of fiscal year 2004,
the Inspector General of the Administration shall submit a
report to the Committee on Small Business of the Senate and
the Committee on Science and the Committee on Small Business of the House of Representatives on the review conducted
under paragraph (1).
‘‘(h) PROGRAM LEVELS.—
‘‘(1) IN GENERAL.—There is authorized to be appropriated
to carry out the FAST program, including Mentoring Networks,
under this section and section 35, $10,000,000 for each of
fiscal years 2001 through 2005.
‘‘(2) MENTORING DATABASE.—Of the total amount made
available under paragraph (1) for fiscal years 2001 through
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PUBLIC LAW 106–554—APPENDIX I
114 STAT. 2763A–679
2005, a reasonable amount, not to exceed a total of $500,000,
may be used by the Administration to carry out section 35(d).
‘‘(i) TERMINATION.—The authority to carry out the FAST program under this section shall terminate on September 30, 2005.’’.
(c) COORDINATION OF TECHNOLOGY DEVELOPMENT PROGRAMS.—
Section 9 of the Small Business Act (15 U.S.C. 638) is amended
by adding at the end the following:
‘‘(u) COORDINATION OF TECHNOLOGY DEVELOPMENT PROGRAMS.—
‘‘(1) DEFINITION OF TECHNOLOGY DEVELOPMENT PROGRAM.—
In this subsection, the term ‘technology development program’
means—
‘‘(A) the Experimental Program to Stimulate Competitive Research of the National Science Foundation, as established under section 113 of the National Science Foundation
Authorization Act of 1988 (42 U.S.C. 1862g);
‘‘(B) the Defense Experimental Program to Stimulate
Competitive Research of the Department of Defense;
‘‘(C) the Experimental Program to Stimulate Competitive Research of the Department of Energy;
‘‘(D) the Experimental Program to Stimulate Competitive Research of the Environmental Protection Agency;
‘‘(E) the Experimental Program to Stimulate Competitive Research of the National Aeronautics and Space
Administration;
‘‘(F) the Institutional Development Award Program of
the National Institutes of Health; and
‘‘(G) the National Research Initiative Competitive
Grants Program of the Department of Agriculture.
‘‘(2) COORDINATION REQUIREMENTS.—Each Federal agency
that is subject to subsection (f ) and that has established a
technology development program may, in each fiscal year,
review for funding under that technology development
program—
‘‘(A) any proposal to provide outreach and assistance
to one or more small business concerns interested in participating in the SBIR program, including any proposal to
make a grant or loan to a company to pay a portion
or all of the cost of developing an SBIR proposal, from
an entity, organization, or individual located in—
‘‘(i) a State that is eligible to participate in that
program; or
‘‘(ii) a State described in paragraph (3); or
‘‘(B) any proposal for the first phase of the SBIR program, if the proposal, though meritorious, is not funded
through the SBIR program for that fiscal year due to
funding restraints, from a small business concern located
in—
‘‘(i) a State that is eligible to participate in a
technology development program; or
‘‘(ii) a State described in paragraph (3).
‘‘(3) ADDITIONALLY ELIGIBLE STATE.—A State referred to
in subparagraph (A)(ii) or (B)(ii) of paragraph (2) is a State
in which the total value of contracts awarded to small business
concerns under all SBIR programs is less than the total value
of contracts awarded to small business concerns in a majority
of other States, as determined by the Administrator in biennial
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114 STAT. 2763A–680
PUBLIC LAW 106–554—APPENDIX I
fiscal years, beginning with fiscal year 2000, based on the
most recent statistics compiled by the Administrator.’’.
SEC. 112. MENTORING NETWORKS.
The Small Business Act (15 U.S.C. 631 et seq.) is amended
by inserting after section 34, as added by section 111(b)(2) of this
Act, the following:
‘‘SEC. 35. MENTORING NETWORKS.
‘‘(a) FINDINGS.—Congress finds that—
‘‘(1) the SBIR and STTR programs create jobs, increase
capacity for technological innovation, and boost international
competitiveness;
‘‘(2) increasing the quantity of applications from all States
to the SBIR and STTR programs would enhance competition
for such awards and the quality of the completed projects;
and
‘‘(3) mentoring is a natural complement to the FAST program of reaching out to new companies regarding the SBIR
and STTR programs as an effective and low-cost way to improve
the likelihood that such companies will succeed in such programs in developing and commercializing their research.
‘‘(b) AUTHORIZATION FOR MENTORING NETWORKS.—The recipient
of an award or participant in a cooperative agreement under section
34 may use a reasonable amount of such assistance for the establishment of a Mentoring Network under this section.
‘‘(c) CRITERIA FOR MENTORING NETWORKS.—A Mentoring Network established using assistance under section 34 shall—
‘‘(1) provide business advice and counseling to high technology small business concerns located in the State or region
served by the Mentoring Network and identified under section
34(c)(1)(E)(ii) as potential candidates for the SBIR or STTR
programs;
‘‘(2) identify volunteer mentors who—
‘‘(A) are persons associated with a small business concern that has successfully completed one or more SBIR
or STTR funding agreements; and
‘‘(B) have agreed to guide small business concerns
through all stages of the SBIR or STTR program process,
including providing assistance relating to—
‘‘(i) proposal writing;
‘‘(ii) marketing;
‘‘(iii) Government accounting;
‘‘(iv) Government audits;
‘‘(v) project facilities and equipment;
‘‘(vi) human resources;
‘‘(vii) third phase partners;
‘‘(viii) commercialization;
‘‘(ix) venture capital networking; and
‘‘(x) other matters relevant to the SBIR and STTR
programs;
‘‘(3) have experience working with small business concerns
participating in the SBIR and STTR programs;
‘‘(4) contribute information to the national database
referred to in subsection (d); and
‘‘(5) agree to reimburse volunteer mentors for out-of-pocket
expenses related to service as a mentor under this section.
‘‘(d) MENTORING DATABASE.—The Administrator shall—
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PUBLIC LAW 106–554—APPENDIX I
114 STAT. 2763A–681
‘‘(1) include in the database required by section 9(k)(1),
in cooperation with the SBIR, STTR, and FAST programs,
information on Mentoring Networks and mentors participating
under this section, including a description of their areas of
expertise;
‘‘(2) work cooperatively with Mentoring Networks to maintain and update the database;
‘‘(3) take such action as may be necessary to aggressively
promote Mentoring Networks under this section; and
‘‘(4) fulfill the requirements of this subsection either
directly or by contract.’’.
SEC. 113. SIMPLIFIED REPORTING REQUIREMENTS.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended
by this Act, is further amended by adding at the end the following:
‘‘(v) SIMPLIFIED REPORTING REQUIREMENTS.—The Administrator
shall work with the Federal agencies required by this section to
have an SBIR program to standardize reporting requirements for
the collection of data from SBIR applicants and awardees, including
data for inclusion in the database under subsection (k), taking
into consideration the unique needs of each agency, and to the
extent possible, permitting the updating of previously reported
information by electronic means. Such requirements shall be
designed to minimize the burden on small businesses.’’.
SEC. 114. RURAL OUTREACH PROGRAM EXTENSION.
(a) EXTENSION OF TERMINATION DATE.—Section 501(b)(2) of
the Small Business Reauthorization Act of 1997 (15 U.S.C. 638
note; 111 Stat. 2622) is amended by striking ‘‘2001’’ and inserting
‘‘2005’’.
(b) EXTENSION OF AUTHORIZATION OF APPROPRIATIONS.—Section
9(s)(2) of the Small Business Act (15 U.S.C. 638(s)(2)) is amended
by striking ‘‘for fiscal year 1998, 1999, 2000, or 2001’’ and inserting
‘‘for each of the fiscal years 2000 through 2005,’’.
TITLE II—BUSINESS LOAN PROGRAMS
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Small Business Loan Improvement Act of 2000’’.
SEC. 202. LEVELS OF PARTICIPATION.
Section 7(a)(2)(A) of the Small Business Act (15 U.S.C.
636(a)(2)(A)) is amended—
(1) in paragraph (i) by striking ‘‘$100,000’’ and inserting
‘‘$150,000’’; and
(2) in paragraph (ii)—
(A) by striking ‘‘80 percent’’ and inserting ‘‘85 percent’’;
and
(B) by striking ‘‘$100,000’’ and inserting ‘‘$150,000’’.
SEC. 203. LOAN AMOUNTS.
Section 7(a)(3)(A) of the Small Business Act (15 U.S.C.
636(a)(3)(A)) is amended by striking ‘‘$750,000,’’ and inserting,
‘‘$1,000,000 (or if the gross loan amount would exceed $2,000,000),’’.
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114 STAT. 2763A–682
PUBLIC LAW 106–554—APPENDIX I
SEC. 204. INTEREST ON DEFAULTED LOANS.
Section 7(a)(4)(B) of the Small Business Act (15 U.S.C.
636(a)(4)(B)) is amended by adding at the end the following:
‘‘(iii) APPLICABILITY.—Clauses (i) and (ii) shall not
apply to loans made on or after October 1, 2000.’’.
SEC. 205. PREPAYMENT OF LOANS.
Section 7(a)(4) of the Small Business Act (15 U.S.C. 636(a)(4))
is further amended—
(1) by striking ‘‘(4) INTEREST RATES AND FEES.—’’ and inserting ‘‘(4) INTEREST RATES AND PREPAYMENT CHARGES.—’’; and
(2) by adding at the end the following:
‘‘(C) PREPAYMENT CHARGES.—
‘‘(i) IN GENERAL.—A borrower who prepays any
loan guaranteed under this subsection shall remit to
the Administration a subsidy recoupment fee calculated in accordance with clause (ii) if—
‘‘(I) the loan is for a term of not less than
15 years;
‘‘(II) the prepayment is voluntary;
‘‘(III) the amount of prepayment in any calendar year is more than 25 percent of the outstanding balance of the loan; and
‘‘(IV) the prepayment is made within the first
3 years after disbursement of the loan proceeds.
‘‘(ii) SUBSIDY RECOUPMENT FEE.—The subsidy
recoupment fee charged under clause (i) shall be—
‘‘(I) 5 percent of the amount of prepayment,
if the borrower prepays during the first year after
disbursement;
‘‘(II) 3 percent of the amount of prepayment,
if the borrower prepays during the second year
after disbursement; and
‘‘(III) 1 percent of the amount of prepayment,
if the borrower prepays during the third year after
disbursement.’’.
SEC. 206. GUARANTEE FEES.
Section 7(a)(18) of the Small Business Act (15 U.S.C. 636(a)(18))
is amended to read as follows:
‘‘(18) GUARANTEE FEES.—
‘‘(A) IN GENERAL.—With respect to each loan guaranteed under this subsection (other than a loan that is repayable in 1 year or less), the Administration shall collect
a guarantee fee, which shall be payable by the participating
lender, and may be charged to the borrower, as follows:
‘‘(i) A guarantee fee equal to 2 percent of the
deferred participation share of a total loan amount
that is not more than $150,000.
‘‘(ii) A guarantee fee equal to 3 percent of the
deferred participation share of a total loan amount
that is more than $150,000, but not more than
$700,000.
‘‘(iii) A guarantee fee equal to 3.5 percent of the
deferred participation share of a total loan amount
that is more than $700,000.
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PUBLIC LAW 106–554—APPENDIX I
114 STAT. 2763A–683
‘‘(B) RETENTION OF CERTAIN FEES.—Lenders participating in the programs established under this subsection may
retain not more than 25 percent of a fee collected under
subparagraph (A)(i).’’.
SEC. 207. LEASE TERMS.
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is
further amended by adding at the end the following:
‘‘(28) LEASING.—In addition to such other lease arrangements as may be authorized by the Administration, a borrower
may permanently lease to one or more tenants not more than
20 percent of any property constructed with the proceeds of
a loan guaranteed under this subsection, if the borrower permanently occupies and uses not less than 60 percent of the total
business space in the property.’’.
SEC. 208. APPRAISALS FOR LOANS SECURED BY REAL PROPERTY.
(a) SMALL BUSINESS ACT.—Section 7(a) of the Small Business
Act (15 U.S.C. 636(a)) is amended by adding at the end the following:
‘‘(29) REAL ESTATE APPRAISALS.—With respect to a loan
under this subsection that is secured by commercial real property, an appraisal of such property by a State licensed or
certified appraiser—
‘‘(A) shall be required by the Administration in connection with any such loan for more than $250,000; or
‘‘(B) may be required by the Administration or the
lender in connection with any such loan for $250,000 or
less, if such appraisal is necessary for appropriate evaluation of creditworthiness.’’.
(b) SMALL BUSINESS INVESTMENT ACT OF 1958.—Section
502(3)(E) of the Small Business Investment Act of 1958 (15 U.S.C.
696(3)(E)) is amended—
(1) by striking ‘‘The collateral’’ and inserting the following:
‘‘(i) IN GENERAL.—The collateral’’; and
(2) by adding at the end the following:
‘‘(ii) APPRAISALS.—With respect to commercial real
property provided by the small business concern as
collateral, an appraisal of the property by a State
licensed or certified appraiser—
‘‘(I) shall be required by the Administration
before disbursement of the loan if the estimated
value of that property is more than $250,000; or
‘‘(II) may be required by the Administration
or the lender before disbursement of the loan if
the estimated value of that property is $250,000
or less, and such appraisal is necessary for appropriate evaluation of creditworthiness.’’.
SEC. 209. SALE OF GUARANTEED LOANS MADE FOR EXPORT PURPOSES.
Section 5(f )(1)(C) of the Small Business Act (15 U.S.C.
634(f )(1)(C)) is amended to read as follows:
‘‘(C) each loan, except each loan made under section
7(a)(14), shall have been fully disbursed to the borrower prior
to any sale.’’.
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114 STAT. 2763A–684
PUBLIC LAW 106–554—APPENDIX I
SEC. 210. MICROLOAN PROGRAM.
(a) IN GENERAL.—Section 7(m) of the Small Business Act (15
U.S.C. 636(m)) is amended—
(1) in paragraphs (1)(B)(iii) and (3)(E), by striking ‘‘$25,000’’
each place it appears and inserting ‘‘$35,000’’;
(2) in paragraphs (1)(A)(iii)(I), (3)(A)(ii), and (4)(C)(i)(II),
by striking ‘‘$7,500’’ each place it appears and inserting
‘‘$10,000’’;
(3) in paragraph (3)(E), by striking ‘‘$15,000’’ and inserting
‘‘$20,000’’;
(4) in paragraph (5)(A)—
(A) by striking ‘‘25 grants’’ and inserting ‘‘55 grants’’;
and
(B) by striking ‘‘$125,000’’ and inserting ‘‘$200,000’’;
(5) in paragraph (6)(B), by striking ‘‘$10,000’’ and inserting
‘‘$15,000’’; and
(6) in paragraph (7), by striking subparagraph (A) and
inserting the following:
‘‘(A) NUMBER OF PARTICIPANTS.—Under the program
authorized by this subsection, the Administration may
fund, on a competitive basis, not more than 300 intermediaries.’’.
(b) CONFORMING AMENDMENTS.—Section 7(m)(11)(B) of the
Small Business Act (15 U.S.C. 636(m)(11)(B)) is amended by striking
‘‘$25,000’’ and inserting ‘‘$35,000’’.
TITLE III—CERTIFIED DEVELOPMENT
COMPANY PROGRAM
SEC. 301. SHORT TITLE.
This title may be cited as the ‘‘Certified Development Company
Program Improvements Act of 2000’’.
SEC. 302. WOMEN-OWNED BUSINESSES.
Section 501(d)(3)(C) of the Small Business Investment Act of
1958 (15 U.S.C. 695(d)(3)(C)) is amended by inserting before the
comma ‘‘or women-owned business development’’.
SEC. 303. MAXIMUM DEBENTURE SIZE.
Section 502(2) of the Small Business Investment Act of 1958
(15 U.S.C. 696(2)) is amended to read as follows:
‘‘(2) Loans made by the Administration under this section
shall be limited to $1,000,000 for each such identifiable small
business concern, except loans meeting the criteria specified
in section 501(d)(3), which shall be limited to $1,300,000 for
each such identifiable small business concern.’’.
SEC. 304. FEES.
Section 503(f ) of the Small Business Investment Act of 1958
(15 U.S.C. 697(f )) is amended to read as follows:
‘‘(f ) EFFECTIVE DATE.—The fees authorized by subsections (b)
and (d) shall apply to financings approved by the Administration
on or after October 1, 1996, but shall not apply to financings
approved by the Administration on or after October 1, 2003.’’.
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PUBLIC LAW 106–554—APPENDIX I
114 STAT. 2763A–685
SEC. 305. PREMIER CERTIFIED LENDERS PROGRAM.
Section 217(b) of the Small Business Administration Reauthorization and Amendments Act of 1994 (Public Law 103–403, 15
U.S.C. 697 note) (relating to section 508 of the Small Business
Investment Act of 1958) is repealed.
SEC. 306. SALE OF CERTAIN DEFAULTED LOANS.
Section 508 of the Small Business Investment Act of 1958
(15 U.S.C. 697e) is amended—
(1) in subsection (a), by striking ‘‘On a pilot program basis,
the’’ and inserting ‘‘The’’;
(2) by redesignating subsections (d) through (i) as subsections (e) through ( j), respectively;
(3) in subsection (f ) (as redesignated by paragraph (2)),
by striking ‘‘subsection (f )’’ and inserting ‘‘subsection (g)’’;
(4) in subsection (h) (as redesignated by paragraph (2)),
by striking ‘‘subsection (f )’’ and inserting ‘‘subsection (g)’’; and
(5) by inserting after subsection (c) the following:
‘‘(d) SALE OF CERTAIN DEFAULTED LOANS.—
‘‘(1) NOTICE.—If, upon default in repayment, the Administration acquires a loan guaranteed under this section and
identifies such loan for inclusion in a bulk asset sale of
defaulted or repurchased loans or other financings, it shall
give prior notice thereof to any certified development company
which has a contingent liability under this section. The notice
shall be given to the company as soon as possible after the
financing is identified, but not less than 90 days before the
date the Administration first makes any records on such financing available for examination by prospective purchasers prior
to its offering in a package of loans for bulk sale.
‘‘(2) LIMITATIONS.—The Administration shall not offer any
loan described in paragraph (1) as part of a bulk sale unless
it—
‘‘(A) provides prospective purchasers with the opportunity to examine the Administration’s records with respect
to such loan; and
‘‘(B) provides the notice required by paragraph (1).’’.
SEC. 307. LOAN LIQUIDATION.
(a) LIQUIDATION AND FORECLOSURE.—Title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) is amended
by adding at the end the following:
‘‘SEC. 510. FORECLOSURE AND LIQUIDATION OF LOANS.
‘‘(a) DELEGATION OF AUTHORITY.—In accordance with this section, the Administration shall delegate to any qualified State or
local development company (as defined in section 503(e)) that meets
the eligibility requirements of subsection (b)(1) the authority to
foreclose and liquidate, or to otherwise treat in accordance with
this section, defaulted loans in its portfolio that are funded with
the proceeds of debentures guaranteed by the Administration under
section 503.
‘‘(b) ELIGIBILITY FOR DELEGATION.—
‘‘(1) REQUIREMENTS.—A qualified State or local development company shall be eligible for a delegation of authority
under subsection (a) if—
‘‘(A) the company—
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114 STAT. 2763A–686
PUBLIC LAW 106–554—APPENDIX I
‘‘(i) has participated in the loan liquidation pilot
program established by the Small Business Programs
Improvement Act of 1996 (15 U.S.C. 695 note), as
in effect on the day before promulgation of final regulations by the Administration implementing this section;
‘‘(ii) is participating in the Premier Certified Lenders Program under section 508; or
‘‘(iii) during the 3 fiscal years immediately prior
to seeking such a delegation, has made an average
of not less than 10 loans per year that are funded
with the proceeds of debentures guaranteed under section 503; and
‘‘(B) the company—
‘‘(i) has one or more employees—
‘‘(I) with not less than 2 years of substantive,
decision-making experience in administering the
liquidation and workout of problem loans secured
in a manner substantially similar to loans funded
with the proceeds of debentures guaranteed under
section 503; and
‘‘(II) who have completed a training program
on loan liquidation developed by the Administration in conjunction with qualified State and local
development companies that meet the requirements of this paragraph; or
‘‘(ii) submits to the Administration documentation
demonstrating that the company has contracted with
a qualified third-party to perform any liquidation
activities and secures the approval of the contract by
the Administration with respect to the qualifications
of the contractor and the terms and conditions of liquidation activities.
‘‘(2) CONFIRMATION.—On request the Administration shall
examine the qualifications of any company described in subsection (a) to determine if such company is eligible for the
delegation of authority under this section. If the Administration
determines that a company is not eligible, the Administration
shall provide the company with the reasons for such ineligibility.
‘‘(c) SCOPE OF DELEGATED AUTHORITY.—
‘‘(1) IN GENERAL.—Each qualified State or local development company to which the Administration delegates authority
under section (a) may with respect to any loan described in
subsection (a)—
‘‘(A) perform all liquidation and foreclosure functions,
including the purchase in accordance with this subsection
of any other indebtedness secured by the property securing
the loan, in a reasonable and sound manner according
to commercially accepted practices, pursuant to a liquidation plan approved in advance by the Administration under
paragraph (2)(A);
‘‘(B) litigate any matter relating to the performance
of the functions described in subparagraph (A), except that
the Administration may—
‘‘(i) defend or bring any claim if—
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PUBLIC LAW 106–554—APPENDIX I
114 STAT. 2763A–687
‘‘(I) the outcome of the litigation may adversely
affect the Administration’s management of the
loan program established under section 502; or
‘‘(II) the Administration is entitled to legal
remedies not available to a qualified State or local
development company and such remedies will
benefit either the Administration or the qualified
State or local development company; or
‘‘(ii) oversee the conduct of any such litigation;
and
‘‘(C) take other appropriate actions to mitigate loan
losses in lieu of total liquidation or foreclosures, including
the restructuring of a loan in accordance with prudent
loan servicing practices and pursuant to a workout plan
approved in advance by the Administration under paragraph (2)(C).
‘‘(2) ADMINISTRATION APPROVAL.—
‘‘(A) LIQUIDATION PLAN.—
‘‘(i) IN GENERAL.—Before carrying out functions
described in paragraph (1)(A), a qualified State or local
development company shall submit to the Administration a proposed liquidation plan.
‘‘(ii) ADMINISTRATION ACTION ON PLAN.—
‘‘(I) TIMING.—Not later than 15 business days
after a liquidation plan is received by the Administration under clause (i), the Administration shall
approve or reject the plan.
‘‘(II) NOTICE OF NO DECISION.—With respect
to any plan that cannot be approved or denied
within the 15-day period required by subclause
(I), the Administration shall within such period
provide in accordance with subparagraph (E)
notice to the company that submitted the plan.
‘‘(iii) ROUTINE ACTIONS.—In carrying out functions
described in paragraph (1)(A), a qualified State or local
development company may undertake routine actions
not addressed in a liquidation plan without obtaining
additional approval from the Administration.
‘‘(B) PURCHASE OF INDEBTEDNESS.—
‘‘(i) IN GENERAL.—In carrying out functions
described in paragraph (1)(A), a qualified State or local
development company shall submit to the Administration a request for written approval before committing
the Administration to the purchase of any other indebtedness secured by the property securing a defaulted
loan.
‘‘(ii) ADMINISTRATION ACTION ON REQUEST.—
‘‘(I) TIMING.—Not later than 15 business days
after receiving a request under clause (i), the
Administration shall approve or deny the request.
‘‘(II) NOTICE OF NO DECISION.—With respect
to any request that cannot be approved or denied
within the 15-day period required by subclause
(I), the Administration shall within such period
provide in accordance with subparagraph (E)
notice to the company that submitted the request.
‘‘(C) WORKOUT PLAN.—
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114 STAT. 2763A–688
PUBLIC LAW 106–554—APPENDIX I
‘‘(i) IN GENERAL.—In carrying out functions
described in paragraph (1)(C), a qualified State or local
development company shall submit to the Administration a proposed workout plan.
‘‘(ii) ADMINISTRATION ACTION ON PLAN.—
‘‘(I) TIMING.—Not later than 15 business days
after a workout plan is received by the Administration under clause (i), the Administration shall
approve or reject the plan.
‘‘(II) NOTICE OF NO DECISION.—With respect
to any workout plan that cannot be approved or
denied within the 15-day period required by subclause (I), the Administration shall within such
period provide in accordance with subparagraph
(E) notice to the company that submitted the plan.
‘‘(D) COMPROMISE OF INDEBTEDNESS.—In carrying out
functions described in paragraph (1)(A), a qualified State
or local development company may—
‘‘(i) consider an offer made by an obligor to compromise the debt for less than the full amount owing;
and
‘‘(ii) pursuant to such an offer, release any obligor
or other party contingently liable, if the company
secures the written approval of the Administration.
‘‘(E) CONTENTS OF NOTICE OF NO DECISION.—Any notice
provided by the Administration under subparagraph
(A)(ii)(II), (B)(ii)(II), or (C)(ii)(II)—
‘‘(i) shall be in writing;
‘‘(ii) shall state the specific reason for the Administration’s inability to act on a plan or request;
‘‘(iii) shall include an estimate of the additional
time required by the Administration to act on the
plan or request; and
‘‘(iv) if the Administration cannot act because
insufficient information or documentation was provided
by the company submitting the plan or request, shall
specify the nature of such additional information or
documentation.
‘‘(3) CONFLICT OF INTEREST.—In carrying out functions
described in paragraph (1), a qualified State or local development company shall take no action that would result in an
actual or apparent conflict of interest between the company
(or any employee of the company) and any third party lender,
associate of a third party lender, or any other person participating in a liquidation, foreclosure, or loss mitigation action.
‘‘(d) SUSPENSION OR REVOCATION OF AUTHORITY.—The Administration may revoke or suspend a delegation of authority under
this section to any qualified State or local development company,
if the Administration determines that the company—
‘‘(1) does not meet the requirements of subsection (b)(1);
‘‘(2) has violated any applicable rule or regulation of the
Administration or any other applicable law; or
‘‘(3) fails to comply with any reporting requirement that
may be established by the Administration relating to carrying
out of functions described in paragraph (1).
‘‘(e) REPORT.—
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PUBLIC LAW 106–554—APPENDIX I
114 STAT. 2763A–689
‘‘(1) IN GENERAL.—Based on information provided by qualified State and local development companies and the Administration, the Administration shall annually submit to the
Committees on Small Business of the House of Representatives
and of the Senate a report on the results of delegation of
authority under this section.
‘‘(2) CONTENTS.—Each report submitted under paragraph
(1) shall include the following information:
‘‘(A) With respect to each loan foreclosed or liquidated
by a qualified State or local development company under
this section, or for which losses were otherwise mitigated
by the company pursuant to a workout plan under this
section—
‘‘(i) the total cost of the project financed with the
loan;
‘‘(ii) the total original dollar amount guaranteed
by the Administration;
‘‘(iii) the total dollar amount of the loan at the
time of liquidation, foreclosure, or mitigation of loss;
‘‘(iv) the total dollar losses resulting from the liquidation, foreclosure, or mitigation of loss; and
‘‘(v) the total recoveries resulting from the liquidation, foreclosure, or mitigation of loss, both as a
percentage of the amount guaranteed and the total
cost of the project financed.
‘‘(B) With respect to each qualified State or local
development company to which authority is delegated
under this section, the totals of each of the amounts
described in clauses (i) through (v) of subparagraph (A).
‘‘(C) With respect to all loans subject to foreclosure,
liquidation, or mitigation under this section, the totals
of each of the amounts described in clauses (i) through
(v) of subparagraph (A).
‘‘(D) A comparison between—
‘‘(i) the information provided under subparagraph
(C) with respect to the 12-month period preceding the
date on which the report is submitted; and
‘‘(ii) the same information with respect to loans
foreclosed and liquidated, or otherwise treated, by the
Administration during the same period.
‘‘(E) The number of times that the Administration has
failed to approve or reject a liquidation plan in accordance
with subparagraph (A)(i), a workout plan in accordance
with subparagraph (C)(i), or to approve or deny a request
for purchase of indebtedness under subparagraph (B)(i),
including specific information regarding the reasons for
the Administration’s failure and any delays that resulted.’’.
(b) REGULATIONS.—
(1) IN GENERAL.—Not later than 150 days after the date
of the enactment of this Act, the Administrator shall issue
such regulations as may be necessary to carry out section
510 of the Small Business Investment Act of 1958, as added
by subsection (a) of this section.
(2) TERMINATION OF PILOT PROGRAM.—Beginning on the
date on which final regulations are issued under paragraph
(1), section 204 of the Small Business Programs Improvement
Act of 1996 (15 U.S.C. 695 note) shall cease to have effect.
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114 STAT. 2763A–690
PUBLIC LAW 106–554—APPENDIX I
TITLE
IV—CORRECTIONS
TO
THE
SMALL BUSINESS INVESTMENT ACT
OF 1958
SEC. 401. SHORT TITLE.
This title may be cited as the ‘‘Small Business Investment
Corrections Act of 2000’’.
SEC. 402. DEFINITIONS.
(a) SMALL BUSINESS CONCERN.—Section 103(5)(A)(i) of the
Small Business Investment Act of 1958 (15 U.S.C. 662(5)(A)(i))
is amended by inserting before the semicolon at the end the following: ‘‘regardless of the allocation of control during the investment
period under any investment agreement between the business concern and the entity making the investment’’.
(b) LONG TERM.—Section 103 of the Small Business Investment
Act of 1958 (15 U.S.C. 662) is amended—
(1) in paragraph (15), by striking ‘‘and’’ at the end;
(2) in paragraph (16), by striking the period at the end
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(17) the term ‘long term’, when used in connection with
equity capital or loan funds invested in any small business
concern or smaller enterprise, means any period of time not
less than 1 year.’’.
SEC. 403. INVESTMENT IN SMALL BUSINESS INVESTMENT COMPANIES.
Section 302(b) of the Small Business Investment Act of 1958
(15 U.S.C. 682(b)) is amended—
(1) by striking ‘‘(b) Notwithstanding’’ and inserting the
following:
‘‘(b) FINANCIAL INSTITUTION INVESTMENTS.—
‘‘(1) CERTAIN BANKS.—Notwithstanding’’; and
(2) by adding at the end the following:
‘‘(2) CERTAIN SAVINGS ASSOCIATIONS.—Notwithstanding any
other provision of law, any Federal savings association may
invest in any one or more small business investment companies,
or in any entity established to invest solely in small business
investment companies, except that in no event may the total
amount of such investments by any such Federal savings
association exceed 5 percent of the capital and surplus of the
Federal savings association.’’.
SEC. 404. SUBSIDY FEES.
(a) DEBENTURES.—Section 303(b) of the Small Business Investment Act of 1958 (15 U.S.C. 683(b)) is amended by striking ‘‘plus
an additional charge of 1 percent per annum which shall be paid
to and retained by the Administration’’ and inserting ‘‘plus, for
debentures obligated after September 30, 2000, an additional
charge, in an amount established annually by the Administration,
of not more than 1 percent per year as necessary to reduce to
zero the cost (as defined in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a)) to the Administration of
purchasing and guaranteeing debentures under this Act, which
shall be paid to and retained by the Administration’’.
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PUBLIC LAW 106–554—APPENDIX I
114 STAT. 2763A–691
(b) PARTICIPATING SECURITIES.—Section 303(g)(2) of the Small
Business Investment Act of 1958 (15 U.S.C. 683(g)(2)) is amended
by striking ‘‘plus an additional charge of 1 percent per annum
which shall be paid to and retained by the Administration’’ and
inserting ‘‘plus, for participating securities obligated after September 30, 2000, an additional charge, in an amount established
annually by the Administration, of not more than 1 percent per
year as necessary to reduce to zero the cost (as defined in section
502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a))
to the Administration of purchasing and guaranteeing participating
securities under this Act, which shall be paid to and retained
by the Administration’’.
SEC. 405. DISTRIBUTIONS.
Section 303(g)(8) of the Small Business Investment Act of 1958
(15 U.S.C. 683(g)(8)) is amended—
(1) by striking ‘‘subchapter s corporation’’ and inserting
‘‘subchapter S corporation’’;
(2) by striking ‘‘the end of any calendar quarter based
on a quarterly’’ and inserting ‘‘any time during any calendar
quarter based on an’’; and
(3) by striking ‘‘quarterly distributions for a calendar year,’’
and inserting ‘‘interim distributions for a calendar year,’’.
SEC. 406. CONFORMING AMENDMENT.
Section 310(c)(4) of the Small Business Investment Act of 1958
(15 U.S.C. 687b(c)(4)) is amended by striking ‘‘five years’’ and inserting ‘‘1 year’’.
TITLE V—REAUTHORIZATION OF SMALL
BUSINESS PROGRAMS
SEC. 501. SHORT TITLE.
This title may be cited as the ‘‘Small Business Programs
Reauthorization Act of 2000’’.
SEC. 502. REAUTHORIZATION OF SMALL BUSINESS PROGRAMS.
Section 20 of the Small Business Act (15 U.S.C. 631 note)
is amended by adding at the end the following:
‘‘(g) FISCAL YEAR 2001.—
‘‘(1) PROGRAM LEVELS.—The following program levels are
authorized for fiscal year 2001:
‘‘(A) For the programs authorized by this Act, the
Administration is authorized to make—
‘‘(i) $45,000,000 in technical assistance grants as
provided in section 7(m); and
‘‘(ii) $60,000,000 in direct loans, as provided in
7(m).
‘‘(B) For the programs authorized by this Act, the
Administration is authorized to make $19,050,000,000 in
deferred participation loans and other financings. Of such
sum, the Administration is authorized to make—
‘‘(i) $14,500,000,000 in general business loans as
provided in section 7(a);
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114 STAT. 2763A–692
PUBLIC LAW 106–554—APPENDIX I
‘‘(ii) $4,000,000,000 in financings as provided in
section 7(a)(13) of this Act and section 504 of the
Small Business Investment Act of 1958;
‘‘(iii) $500,000,000 in loans as provided in section
7(a)(21); and
‘‘(iv) $50,000,000 in loans as provided in section
7(m).
‘‘(C) For the programs authorized by title III of the
Small Business Investment Act of 1958, the Administration
is authorized to make—
‘‘(i) $2,500,000,000 in purchases of participating
securities; and
‘‘(ii) $1,500,000,000 in guarantees of debentures.
‘‘(D) For the programs authorized by part B of title
IV of the Small Business Investment Act of 1958, the
Administration is authorized to enter into guarantees not
to exceed $4,000,000,000 of which not more than 50 percent
may be in bonds approved pursuant to section 411(a)(3)
of that Act.
‘‘(E) The Administration is authorized to make grants
or enter cooperative agreements for a total amount of
$5,000,000 for the Service Corps of Retired Executives program authorized by section 8(b)(1).
‘‘(2) ADDITIONAL AUTHORIZATIONS.—
‘‘(A) There are authorized to be appropriated to the
Administration for fiscal year 2001 such sums as may
be necessary to carry out the provisions of this Act not
elsewhere provided for, including administrative expenses
and necessary loan capital for disaster loans pursuant to
section 7(b), and to carry out title IV of the Small Business
Investment Act of 1958, including salaries and expenses
of the Administration.
‘‘(B) Notwithstanding any other provision of this paragraph, for fiscal year 2001—
‘‘(i) no funds are authorized to be used as loan
capital for the loan program authorized by section
7(a)(21) except by transfer from another Federal
department or agency to the Administration, unless
the program level authorized for general business loans
under paragraph (1)(B)(i) is fully funded; and
‘‘(ii) the Administration may not approve loans
on its own behalf or on behalf of any other Federal
department or agency, by contract or otherwise, under
terms and conditions other than those specifically
authorized under this Act or the Small Business Investment Act of 1958, except that it may approve loans
under section 7(a)(21) of this Act in gross amounts
of not more than $1,250,000.
‘‘(h) FISCAL YEAR 2002.—
‘‘(1) PROGRAM LEVELS.—The following program levels are
authorized for fiscal year 2002:
‘‘(A) For the programs authorized by this Act, the
Administration is authorized to make—
‘‘(i) $60,000,000 in technical assistance grants as
provided in section 7(m); and
‘‘(ii) $80,000,000 in direct loans, as provided in
7(m).
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PUBLIC LAW 106–554—APPENDIX I
114 STAT. 2763A–693
‘‘(B) For the programs authorized by this Act, the
Administration is authorized to make $20,050,000,000 in
deferred participation loans and other financings. Of such
sum, the Administration is authorized to make—
‘‘(i) $15,000,000,000 in general business loans as
provided in section 7(a);
‘‘(ii) $4,500,000,000 in financings as provided in
section 7(a)(13) of this Act and section 504 of the
Small Business Investment Act of 1958;
‘‘(iii) $500,000,000 in loans as provided in section
7(a)(21); and
‘‘(iv) $50,000,000 in loans as provided in section
7(m).
‘‘(C) For the programs authorized by title III of the
Small Business Investment Act of 1958, the Administration
is authorized to make—
‘‘(i) $3,500,000,000 in purchases of participating
securities; and
‘‘(ii) $2,500,000,000 in guarantees of debentures.
‘‘(D) For the programs authorized by part B of title
IV of the Small Business Investment Act of 1958, the
Administration is authorized to enter into guarantees not
to exceed $5,000,000,000 of which not more than 50 percent
may be in bonds approved pursuant to section 411(a)(3)
of that Act.
‘‘(E) The Administration is authorized to make grants
or enter cooperative agreements for a total amount of
$6,000,000 for the Service Corps of Retired Executives program authorized by section 8(b)(1).
‘‘(2) ADDITIONAL AUTHORIZATIONS.—
‘‘(A) There are authorized to be appropriated to the
Administration for fiscal year 2002 such sums as may
be necessary to carry out the provisions of this Act not
elsewhere provided for, including administrative expenses
and necessary loan capital for disaster loans pursuant to
section 7(b), and to carry out title IV of the Small Business
Investment Act of 1958, including salaries and expenses
of the Administration.
‘‘(B) Notwithstanding any other provision of this paragraph, for fiscal year 2002—
‘‘(i) no funds are authorized to be used as loan
capital for the loan program authorized by section
7(a)(21) except by transfer from another Federal
department or agency to the Administration, unless
the program level authorized for general business loans
under paragraph (1)(B)(i) is fully funded; and
‘‘(ii) the Administration may not approve loans
on its own behalf or on behalf of any other Federal
department or agency, by contract or otherwise, under
terms and conditions other than those specifically
authorized under this Act or the Small Business Investment Act of 1958, except that it may approve loans
under section 7(a)(21) of this Act in gross amounts
of not more than $1,250,000.
‘‘(i) FISCAL YEAR 2003.—
‘‘(1) PROGRAM LEVELS.—The following program levels are
authorized for fiscal year 2003:
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114 STAT. 2763A–694
PUBLIC LAW 106–554—APPENDIX I
‘‘(A) For the programs authorized by this Act, the
Administration is authorized to make—
‘‘(i) $70,000,000 in technical assistance grants as
provided in section 7(m); and
‘‘(ii) $100,000,000 in direct loans, as provided in
7(m).
‘‘(B) For the programs authorized by this Act, the
Administration is authorized to make $21,550,000,000 in
deferred participation loans and other financings. Of such
sum, the Administration is authorized to make—
‘‘(i) $16,000,000,000 in general business loans as
provided in section 7(a);
‘‘(ii) $5,000,000,000 in financings as provided in
section 7(a)(13) of this Act and section 504 of the
Small Business Investment Act of 1958;
‘‘(iii) $500,000,000 in loans as provided in section
7(a)(21); and
‘‘(iv) $50,000,000 in loans as provided in section
7(m).
‘‘(C) For the programs authorized by title III of the
Small Business Investment Act of 1958, the Administration
is authorized to make—
‘‘(i) $4,000,000,000 in purchases of participating
securities; and
‘‘(ii) $3,000,000,000 in guarantees of debentures.
‘‘(D) For the programs authorized by part B of title
IV of the Small Business Investment Act of 1958, the
Administration is authorized to enter into guarantees not
to exceed $6,000,000,000 of which not more than 50 percent
may be in bonds approved pursuant to section 411(a)(3)
of that Act.
‘‘(E) The Administration is authorized to make grants
or enter into cooperative agreements for a total amount
of $7,000,000 for the Service Corps of Retired Executives
program authorized by section 8(b)(1).
‘‘(2) ADDITIONAL AUTHORIZATIONS.—
‘‘(A) There are authorized to be appropriated to the
Administration for fiscal year 2003 such sums as may
be necessary to carry out the provisions of this Act not
elsewhere provided for, including administrative expenses
and necessary loan capital for disaster loans pursuant to
section 7(b), and to carry out title IV of the Small Business
Investment Act of 1958, including salaries and expenses
of the Administration.
‘‘(B) Notwithstanding any other provision of this paragraph, for fiscal year 2003—
‘‘(i) no funds are authorized to be used as loan
capital for the loan program authorized by section
7(a)(21) except by transfer from another Federal
department or agency to the Administration, unless
the program level authorized for general business loans
under paragraph (1)(B)(i) is fully funded; and
‘‘(ii) the Administration may not approve loans
on its own behalf or on behalf of any other Federal
department or agency, by contract or otherwise, under
terms and conditions other than those specifically
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PUBLIC LAW 106–554—APPENDIX I
114 STAT. 2763A–695
authorized under this Act or the Small Business Investment Act of 1958, except that it may approve loans
under section 7(a)(21) of this Act in gross amounts
of not more than $1,250,000.’’.
SEC. 503. ADDITIONAL REAUTHORIZATIONS.
(a) DRUG-FREE WORKPLACE PROGRAM.—Section 27 of the Small
Business Act (15 U.S.C. 654) is amended—
(1) in the section heading, by striking ‘‘DRUG-FREE WORKPLACE DEMONSTRATION PROGRAM’’ and inserting ‘‘PAUL D.
COVERDELL DRUG-FREE WORKPLACE PROGRAM’’; and
(2) in subsection (g)(1), by striking ‘‘$10,000,000 for fiscal
years 1999 and 2000’’ and inserting ‘‘$5,000,000 for each of
fiscal years 2001 through 2003’’.
(b) HUBZONE PROGRAM.—Section 31 of the Small Business
Act (15 U.S.C. 657a) is amended by adding at the end the following:
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out the program established by this
section $10,000,000 for each of fiscal years 2001 through 2003.’’.
(c) VERY SMALL BUSINESS CONCERNS PROGRAM.—Section 304(i)
of the Small Business Administration Reauthorization and Amendments Act of 1994 (Public Law 103–403; 15 U.S.C. 644 note) is
amended by striking ‘‘September 30, 2000’’ and inserting ‘‘September 30, 2003’’.
(d) SOCIALLY AND ECONOMICALLY DISADVANTAGED BUSINESSES
PROGRAM.—Section 7102(c) of the Federal Acquisition Streamlining
Act of 1994 (Public Law 103–355; 15 U.S.C. 644 note) is amended
by striking ‘‘September 30, 2000’’ and inserting ‘‘September 30,
2003’’.
(e) SBDC SERVICES.—Section 21(c)(3)(T) of the Small Business
Act (15 U.S.C. 648(c)(3)(T)) is amended by striking ‘‘2000’’ and
inserting ‘‘2003’’.
SEC. 504. COSPONSORSHIP.
(a) IN GENERAL.—Section 8(b)(1)(A) of the Small Business Act
(15 U.S.C. 637(b)(1)(A)) is amended to read as follows:
‘‘(1)(A) to provide—
‘‘(i) technical, managerial, and informational aids to
small business concerns—
‘‘(I) by advising and counseling on matters in
connection with Government procurement and policies,
principles, and practices of good management;
‘‘(II) by cooperating and advising with—
‘‘(aa) voluntary business, professional, educational, and other nonprofit organizations,
associations, and institutions (except that the
Administration shall take such actions as it determines necessary to ensure that such cooperation
does not constitute or imply an endorsement by
the Administration of the organization or its products or services, and shall ensure that it receives
appropriate recognition in all printed materials);
and
‘‘(bb) other Federal and State agencies;
‘‘(III) by maintaining a clearinghouse for information on managing, financing, and operating small business enterprises; and
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114 STAT. 2763A–696
PUBLIC LAW 106–554—APPENDIX I
‘‘(IV) by disseminating such information, including
through recognition events, and by other activities that
the Administration determines to be appropriate; and
‘‘(ii) through cooperation with a profit-making concern
(referred to in this paragraph as a ‘cosponsor’), training,
information, and education to small business concerns,
except that the Administration shall—
‘‘(I) take such actions as it determines to be appropriate to ensure that—
‘‘(aa) the Administration receives appropriate
recognition and publicity;
‘‘(bb) the cooperation does not constitute or
imply an endorsement by the Administration of
any product or service of the cosponsor;
‘‘(cc) unnecessary promotion of the products
or services of the cosponsor is avoided; and
‘‘(dd) utilization of any one cosponsor in a
marketing area is minimized; and
‘‘(II) develop an agreement, executed on behalf of
the Administration by an employee of the Administration in Washington, the District of Columbia, that provides, at a minimum, that—
‘‘(aa) any printed material to announce the
cosponsorship or to be distributed at the
cosponsored activity, shall be approved in advance
by the Administration;
‘‘(bb) the terms and conditions of the cooperation shall be specified;
‘‘(cc) only minimal charges may be imposed
on any small business concern to cover the direct
costs of providing the assistance;
‘‘(dd) the Administration may provide to the
cosponsorship mailing labels, but not lists of names
and addresses of small business concerns compiled
by the Administration;
‘‘(ee) all printed materials containing the
names of both the Administration and the
cosponsor shall include a prominent disclaimer
that the cooperation does not constitute or imply
an endorsement by the Administration of any product or service of the cosponsor; and
‘‘(ff) the Administration shall ensure that it
receives appropriate recognition in all cosponsorship printed materials.’’.
(b) EXTENSION OF COSPONSORSHIP AUTHORITY.—Section
401(a)(2) of the Small Business Administration Reauthorization
and Amendments Act of 1994 (15 U.S.C. 637 note) is amended
by striking ‘‘September 30, 2000’’ and inserting ‘‘September 30,
2003’’.
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PUBLIC LAW 106–554—APPENDIX I
114 STAT. 2763A–697
TITLE VI—HUBZONE PROGRAM
Subtitle A—HUBZones in Native America
SEC. 601. SHORT TITLE.
This subtitle may be cited as the ‘‘HUBZones in Native America
Act of 2000’’.
SEC. 602. HUBZONE SMALL BUSINESS CONCERN.
Section 3(p)(3) of the Small Business Act (15 U.S.C. 632(p)(3))
is amended to read as follows:
‘‘(3) HUBZONE SMALL BUSINESS CONCERN.—The term
‘HUBZone small business concern’ means—
‘‘(A) a small business concern that is owned and controlled by one or more persons, each of whom is a United
States citizen;
‘‘(B) a small business concern that is—
‘‘(i) an Alaska Native Corporation owned and controlled by Natives (as determined pursuant to section
29(e)(1) of the Alaska Native Claims Settlement Act
(43 U.S.C. 1626(e)(1))); or
‘‘(ii) a direct or indirect subsidiary corporation,
joint venture, or partnership of an Alaska Native Corporation qualifying pursuant to section 29(e)(1) of the
Alaska Native Claims Settlement Act (43 U.S.C.
1626(e)(1)), if that subsidiary, joint venture, or partnership is owned and controlled by Natives (as determined
pursuant to section 29(e)(2)) of the Alaska Native
Claims Settlement Act (43 U.S.C. 1626(e)(2))); or
‘‘(C) a small business concern—
‘‘(i) that is wholly owned by one or more Indian
tribal governments, or by a corporation that is wholly
owned by one or more Indian tribal governments; or
‘‘(ii) that is owned in part by one or more Indian
tribal governments, or by a corporation that is wholly
owned by one or more Indian tribal governments, if
all other owners are either United States citizens or
small business concerns.’’.
SEC. 603. QUALIFIED HUBZONE SMALL BUSINESS CONCERN.
(a) IN GENERAL.—Section 3(p)(5)(A)(i) of the Small Business
Act (15 U.S.C. 632(p)(5)(A)(i)) is amended by striking subclauses
(I) and (II) and inserting the following:
‘‘(I) it is a HUBZone small business concern—
‘‘(aa) pursuant to subparagraph (A) or (B)
of paragraph (3), and that its principal office
is located in a HUBZone and not fewer than
35 percent of its employees reside in a
HUBZone; or
‘‘(bb) pursuant to paragraph (3)(C), and
not fewer than 35 percent of its employees
engaged in performing a contract awarded to
the small business concern on the basis of
a preference provided under section 31(b)
reside within any Indian reservation governed
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114 STAT. 2763A–698
PUBLIC LAW 106–554—APPENDIX I
by one or more of the tribal government owners, or reside within any HUBZone adjoining
any such Indian reservation;
‘‘(II) the small business concern will attempt
to maintain the applicable employment percentage
under subclause (I) during the performance of any
contract awarded to the small business concern
on the basis of a preference provided under section
31(b); and’’.
(b) CLARIFYING AMENDMENT.—Section 3(p)(5)(D)(i) of the Small
Business Act (15 U.S.C. 632(p)(5)(D)(i)) is amended by inserting
‘‘once the Administrator has made the certification required by
subparagraph (A)(i) regarding a qualified HUBZone small business
concern and has determined that subparagraph (A)(ii) does not
apply to that concern,’’ before ‘‘include’’.
SEC. 604. OTHER DEFINITIONS.
Section 3(p) of the Small Business Act (15 U.S.C. 632(p)) is
amended by adding at the end the following:
‘‘(6) NATIVE AMERICAN SMALL BUSINESS CONCERNS.—
‘‘(A) ALASKA NATIVE CORPORATION.—The term ‘Alaska
Native Corporation’ has the same meaning as the term
‘Native Corporation’ in section 3 of the Alaska Native
Claims Settlement Act (43 U.S.C. 1602).
‘‘(B) ALASKA NATIVE VILLAGE.—The term ‘Alaska Native
Village’ has the same meaning as the term ‘Native village’
in section 3 of the Alaska Native Claims Settlement Act
(43 U.S.C. 1602).
‘‘(C)
INDIAN
RESERVATION.—The
term
‘Indian
reservation’—
‘‘(i) has the same meaning as the term ‘Indian
country’ in section 1151 of title 18, United States Code,
except that such term does not include—
‘‘(I) any lands that are located within a State
in which a tribe did not exercise governmental
jurisdiction on the date of the enactment of this
paragraph, unless that tribe is recognized after
that date of the enactment by either an Act of
Congress or pursuant to regulations of the Secretary of the Interior for the administrative recognition that an Indian group exists as an Indian
tribe (part 83 of title 25, Code of Federal Regulations); and
‘‘(II) lands taken into trust or acquired by
an Indian tribe after the date of the enactment
of this paragraph if such lands are not located
within the external boundaries of an Indian reservation or former reservation or are not contiguous to the lands held in trust or restricted status
on that date of the enactment; and
‘‘(ii) in the State of Oklahoma, means lands that—
‘‘(I) are within the jurisdictional areas of an
Oklahoma Indian tribe (as determined by the Secretary of the Interior); and
‘‘(II) are recognized by the Secretary of the
Interior as eligible for trust land status under
part 151 of title 25, Code of Federal Regulations
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PUBLIC LAW 106–554—APPENDIX I
114 STAT. 2763A–699
(as in effect on the date of the enactment of this
paragraph).’’.
Subtitle B—Other HUBZone Provisions
SEC. 611. DEFINITIONS.
(a) QUALIFIED CENSUS TRACT.—Section 3(p)(4)(A) of the Small
Business Act (15 U.S.C. 632(p)(4)(A)) is amended by striking ‘‘(I)’’.
(b) QUALIFIED NONMETROPOLITAN COUNTY.—Section 3(p)(4) of
the Small Business Act (15 U.S.C. 632(p)(4)) is amended by striking
subparagraph (B) and inserting the following:
‘‘(B) QUALIFIED NONMETROPOLITAN COUNTY.—The term
‘qualified nonmetropolitan county’ means any county—
‘‘(i) that was not located in a metropolitan statistical area (as defined in section 143(k)(2)(B) of the
Internal Revenue Code of 1986) at the time of the
most recent census taken for purposes of selecting
qualified census tracts under section 42(d)(5)(C)(ii) of
the Internal Revenue Code of 1986; and
‘‘(ii) in which—
‘‘(I) the median household income is less than
80 percent of the nonmetropolitan State median
household income, based on the most recent data
available from the Bureau of the Census of the
Department of Commerce; or
‘‘(II) the unemployment rate is not less than
140 percent of the Statewide average unemployment rate for the State in which the county is
located, based on the most recent data available
from the Secretary of Labor.’’.
SEC. 612. ELIGIBLE CONTRACTS.
(a) COMMODITIES CONTRACTS.—Section 31(b)(3) of the Small
Business Act (15 U.S.C. 657a(b)(3)) is amended—
(1) by striking ‘‘In any’’ and inserting the following:
‘‘(A) IN GENERAL.—Subject to subparagraph (B), in
any’’; and
(2) by adding at the end the following:
‘‘(B) PROCUREMENT OF COMMODITIES.—For purchases
by the Secretary of Agriculture of agricultural commodities,
the price evaluation preference shall be—
‘‘(i) 10 percent, for the portion of a contract to
be awarded that is not greater than 25 percent of
the total volume being procured for each commodity
in a single invitation;
‘‘(ii) 5 percent, for the portion of a contract to
be awarded that is greater than 25 percent, but not
greater than 40 percent, of the total volume being
procured for each commodity in a single invitation;
and
‘‘(iii) zero, for the portion of a contract to be
awarded that is greater than 40 percent of the total
volume being procured for each commodity in a single
invitation.
‘‘(C) TREATMENT OF PREFERENCE.—A contract awarded
to a HUBZone small business concern under a preference
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114 STAT. 2763A–700
PUBLIC LAW 106–554—APPENDIX I
described in subparagraph (B) shall not be counted toward
the fulfillment of any requirement partially set aside for
competition restricted to small business concerns.’’.
(b) DEFINITIONS.—Section 3(p) of the Small Business Act (15
U.S.C. 632(p)), as amended by this Act, is amended—
(1) in paragraph (5)(A)(i)(III)—
(A) in item (aa), by striking ‘‘and’’ at the end; and
(B) by adding at the end the following:
‘‘(cc) in the case of a contract for the
procurement by the Secretary of Agriculture
of agricultural commodities, none of the
commodity being procured will be obtained by
the prime contractor through a subcontract
for the purchase of the commodity in substantially the final form in which it is to be supplied to the Government; and’’; and
(2) by adding at the end the following:
‘‘(7) AGRICULTURAL COMMODITY.—The term ‘agricultural
commodity’ has the same meaning as in section 102 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5602).’’.
SEC. 613. HUBZONE REDESIGNATED AREAS.
Section 3(p) of the Small Business Act (15 U.S.C. 632(p)) is
amended—
(1) in paragraph (1)—
(A) in subparagraph (B), by striking ‘‘or’’ at the end;
(B) in subparagraph (C), by striking the period at
the end and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(D) redesignated areas.’’; and
(2) in paragraph (4), by adding at the end the following:
‘‘(C) REDESIGNATED AREA.—The term ‘redesignated
area’ means any census tract that ceases to be qualified
under subparagraph (A) and any nonmetropolitan county
that ceases to be qualified under subparagraph (B), except
that a census tract or a nonmetropolitan county may be
a ‘redesignated area’ only for the 3-year period following
the date on which the census tract or nonmetropolitan
county ceased to be so qualified.’’.
SEC. 614. COMMUNITY DEVELOPMENT.
Section 3(p) of the Small Business Act (15 U.S.C. 632(p)),
as amended by this Act, is amended—
(1) in paragraph (3)—
(A) in subparagraph (B), by striking ‘‘or’’ at the end;
(B) in subparagraph (C), by striking the period at
the end and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(D) a small business concern that is—
‘‘(i) wholly owned by a community development
corporation that has received financial assistance
under part 1 of subchapter A of the Community Economic Development Act of 1981 (42 U.S.C. 9805 et
seq.); or
‘‘(ii) owned in part by one or more community
development corporations, if all other owners are either
United States citizens or small business concerns.’’;
and
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114 STAT. 2763A–701
(2) in paragraph (5)(A)(i)(I)(aa), by striking ‘‘subparagraph
(A) or (B)’’ and inserting ‘‘subparagraph (A), (B), or (D)’’.
SEC. 615. REFERENCE CORRECTIONS.
(a) SECTION 3.—Section 3(p)(5)(C) of the Small Business Act
(15 U.S.C. 632(p)(5)(C)) is amended by striking ‘‘subclause (IV)
and (V) of subparagraph (A)(i)’’ and inserting ‘‘items (aa) and (bb)
of subparagraph (A)(i)(III)’’.
(b) SECTION 8.—Section 8(d)(4)(D) of the Small Business Act
(15 U.S.C. 637(d)(4)(D)) is amended by inserting ‘‘qualified
HUBZone small business concerns,’’ after ‘‘small business concerns,’’.
TITLE VII—NATIONAL WOMEN’S
BUSINESS COUNCIL REAUTHORIZATION
SEC. 701. SHORT TITLE.
This title may be cited as the ‘‘National Women’s Business
Council Reauthorization Act of 2000’’.
SEC. 702. MEMBERSHIP OF THE COUNCIL.
Section 407 of the Women’s Business Ownership Act of 1988
(15 U.S.C. 631 note) is amended—
(1) in subsection (a), by striking ‘‘Not later’’ and all that
follows through ‘‘the President’’ and inserting ‘‘The President’’;
(2) in subsection (b)—
(A) by striking ‘‘Not later’’ and all that follows through
‘‘the Administrator’’ and inserting ‘‘The Administrator’’; and
(B) by striking ‘‘the Assistant Administrator of the
Office of Women’s Business Ownership and’’;
(3) in subsection (d), by striking ‘‘, except that’’ and all
that follows through the end of the subsection and inserting
a period; and
(4) in subsection (h), by striking ‘‘Not later’’ and all that
follows through ‘‘the Administrator’’ and inserting ‘‘The
Administrator’’.
SEC. 703. REPEAL OF PROCUREMENT PROJECT.
Section 409 of the Women’s Business Ownership Act of 1988
(15 U.S.C. 631 note) is repealed.
SEC. 704. STUDIES AND OTHER RESEARCH.
Section 410 of the Women’s Business Ownership Act of 1988
(15 U.S.C. 631 note) is amended to read as follows:
‘‘SEC. 409. STUDIES AND OTHER RESEARCH.
‘‘(a) IN GENERAL.—The Council may conduct such studies and
other research relating to the award of Federal prime contracts
and subcontracts to women-owned businesses, to access to credit
and investment capital by women entrepreneurs, or to other issues
relating to women-owned businesses, as the Council determines
to be appropriate.
‘‘(b) CONTRACT AUTHORITY.—In conducting any study or other
research under this section, the Council may contract with one
or more public or private entities.’’.
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114 STAT. 2763A–702
PUBLIC LAW 106–554—APPENDIX I
SEC. 705. AUTHORIZATION OF APPROPRIATIONS.
Section 411 of the Women’s Business Ownership Act of 1988
(15 U.S.C. 631 note) is amended to read as follows:
‘‘SEC. 410. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There is authorized to be appropriated to
carry out this title $1,000,000, for each of fiscal years 2001 through
2003, of which $550,000 shall be available in each such fiscal
year to carry out section 409.
‘‘(b) BUDGET REVIEW.—No amount made available under this
section for any fiscal year may be obligated or expended by the
Council before the date on which the Council reviews and approves
the operating budget of the Council to carry out the responsibilities
of the Council for that fiscal year.’’.
TITLE VIII—MISCELLANEOUS
PROVISIONS
SEC. 801. LOAN APPLICATION PROCESSING.
(a) STUDY.—The Administrator of the Small Business Administration shall conduct a study to determine the average time that
the Administration requires to process an application for each type
of loan or loan guarantee made under the Small Business Act
(15 U.S.C. 631 et seq.).
(b) TRANSMITTAL.—Not later than 1 year after the date of
the enactment of this Act, the Administrator shall transmit to
Congress the results of the study conducted under subsection (a).
SEC. 802. APPLICATION OF OWNERSHIP REQUIREMENTS.
(a) SMALL BUSINESS ACT.—Section 7(a) of the Small Business
Act (15 U.S.C. 636(a)) is amended by adding at the end the following:
‘‘(30) OWNERSHIP REQUIREMENTS.—Ownership requirements to determine the eligibility of a small business concern
that applies for assistance under any credit program under
this Act shall be determined without regard to any ownership
interest of a spouse arising solely from the application of the
community property laws of a State for purposes of determining
marital interests.’’.
(b) SMALL BUSINESS INVESTMENT ACT OF 1958.—Section 502
of the Small Business Investment Act of 1958 (15 U.S.C. 696)
is amended by adding at the end the following:
‘‘(6) OWNERSHIP REQUIREMENTS.—Ownership requirements
to determine the eligibility of a small business concern that
applies for assistance under any credit program under this
title shall be determined without regard to any ownership
interest of a spouse arising solely from the application of the
community property laws of a State for purposes of determining
marital interests.’’.
SEC. 803. SUBCONTRACTING PREFERENCE FOR VETERANS.
Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is
amended—
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114 STAT. 2763A–703
(1) in paragraph (1), by inserting ‘‘small business concerns
owned and controlled by veterans,’’ after ‘‘small business concerns,’’ the first place that term appears in each of the first
and second sentences;
(2) in paragraph (3)—
(A) in subparagraph (A), by inserting ‘‘small business
concerns owned and controlled by service-disabled veterans,’’ after ‘‘small business concerns owned and controlled
by veterans,’’ in each of the first and second sentences;
and
(B) in subparagraph (F), by inserting ‘‘small business
concern owned and controlled by service-disabled veterans,’’
after ‘‘small business concern owned and controlled by veterans,’’; and
(3) in each of paragraphs (4)(D), (4)(E), (6)(A), (6)(C), (6)(F),
and (10)(B), by inserting ‘‘small business concerns owned and
controlled by service-disabled veterans,’’ after ‘‘small business
concerns owned and controlled by veterans,’’.
SEC. 804. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM FUNDING.
(a) AUTHORIZATION.—
(1) IN GENERAL.—Section 20(a)(1) of the Small Business
Act (15 U.S.C. 631 note) is amended by striking ‘‘For fiscal
year 1985’’ and all that follows through ‘‘expended.’’ and inserting the following: ‘‘For fiscal year 2000 and each fiscal year
thereafter, there are authorized to be appropriated such sums
as may be necessary and appropriate, to remain available until
expended, and to be available solely—
‘‘(A) to carry out the Small Business Development Center
Program under section 21, but not to exceed the annual funding
level, as specified in section 21(a);
‘‘(B) to pay the expenses of the National Small Business
Development Center Advisory Board, as provided in section
21(i);
‘‘(C) to pay the expenses of the information sharing system,
as provided in section 21(c)(8);
‘‘(D) to pay the expenses of the association referred to
in section 21(a)(3)(A) for conducting the certification program,
as provided in section 21(k)(2); and
‘‘(E) to pay the expenses of the Administration, including
salaries of examiners, for conducting examinations as part of
the certification program conducted by the association referred
to in section 21(a)(3)(A).’’.
(2) TECHNICAL AMENDMENT.—Section 20(a) of the Small
Business Act (15 U.S.C. 631 note) is amended by moving the
margins of paragraphs (3) and (4), including subparagraphs
(A) and (B) of paragraph (4), 2 ems to the left.
(b) FUNDING FORMULA.—Section 21(a)(4)(C) of the Small Business Act (15 U.S.C. 648(a)(4)(C)) is amended to read as follows:
‘‘(C) FUNDING FORMULA.—
‘‘(i) IN GENERAL.—Subject to clause (iii), the amount
of a formula grant received by a State under this subparagraph shall be equal to an amount determined in accordance with the following formula:
‘‘(I) The annual amount made available under section 20(a) for the Small Business Development Center
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114 STAT. 2763A–704
PUBLIC LAW 106–554—APPENDIX I
Program, less any reductions made for expenses
authorized by clause (v) of this subparagraph, shall
be divided on a pro rata basis, based on the percentage
of the population of each State, as compared to the
population of the United States.
‘‘(II) If the pro rata amount calculated under subclause (I) for any State is less than the minimum
funding level under clause (iii), the Administration
shall determine the aggregate amount necessary to
achieve that minimum funding level for each such
State.
‘‘(III) The aggregate amount calculated under subclause (II) shall be deducted from the amount calculated under subclause (I) for States eligible to receive
more than the minimum funding level. The deductions
shall be made on a pro rata basis, based on the population of each such State, as compared to the total
population of all such States.
‘‘(IV) The aggregate amount deducted under subclause (III) shall be added to the grants of those States
that are not eligible to receive more than the minimum
funding level in order to achieve the minimum funding
level for each such State, except that the eligible
amount of a grant to any State shall not be reduced
to an amount below the minimum funding level.
‘‘(ii) GRANT DETERMINATION.—The amount of a grant
that a State is eligible to apply for under this subparagraph
shall be the amount determined under clause (i), subject
to any modifications required under clause (iii), and shall
be based on the amount available for the fiscal year in
which performance of the grant commences, but not including amounts distributed in accordance with clause (iv).
The amount of a grant received by a State under any
provision of this subparagraph shall not exceed the amount
of matching funds from sources other than the Federal
Government, as required under subparagraph (A).
‘‘(iii) MINIMUM FUNDING LEVEL.—The amount of the
minimum funding level for each State shall be determined
for each fiscal year based on the amount made available
for that fiscal year to carry out this section, as follows:
‘‘(I) If the amount made available is not less than
$81,500,000 and not more than $90,000,000, the minimum funding level shall be $500,000.
‘‘(II) If the amount made available is less than
$81,500,000, the minimum funding level shall be the
remainder of $500,000 minus a percentage of $500,000
equal to the percentage amount by which the amount
made available is less than $81,500,000.
‘‘(III) If the amount made available is more than
$90,000,000, the minimum funding level shall be the
sum of $500,000 plus a percentage of $500,000 equal
to the percentage amount by which the amount made
available exceeds $90,000,000.
‘‘(iv) DISTRIBUTIONS.—Subject to clause (iii), if any
State does not apply for, or use, its full funding eligibility
for a fiscal year, the Administration shall distribute the
remaining funds as follows:
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PUBLIC LAW 106–554—APPENDIX I
114 STAT. 2763A–705
‘‘(I) If the grant to any State is less than the
amount received by that State in fiscal year 2000,
the Administration shall distribute such remaining
funds, on a pro rata basis, based on the percentage
of shortage of each such State, as compared to the
total amount of such remaining funds available, to
the extent necessary in order to increase the amount
of the grant to the amount received by that State
in fiscal year 2000, or until such funds are exhausted,
whichever first occurs.
‘‘(II) If any funds remain after the application of
subclause (I), the remaining amount may be distributed
as supplemental grants to any State, as the Administration determines, in its discretion, to be appropriate,
after consultation with the association referred to in
subsection (a)(3)(A).
‘‘(v) USE OF AMOUNTS.—
‘‘(I) IN GENERAL.—Of the amounts made available
in any fiscal year to carry out this section—
‘‘(aa) not more than $500,000 may be used
by the Administration to pay expenses enumerated
in subparagraphs (B) through (D) of section
20(a)(1); and
‘‘(bb) not more than $500,000 may be used
by the Administration to pay the examination
expenses enumerated in section 20(a)(1)(E).
‘‘(II) LIMITATION.—No funds described in subclause
(I) may be used for examination expenses under section
20(a)(1)(E) if the usage would reduce the amount of
grants made available under clause (i)(I) of this
subparagraph to less than $85,000,000 (after excluding
any amounts provided in appropriations Acts for specific institutions or for purposes other than the general
small business development center program) or would
further reduce the amount of such grants below such
amount.
‘‘(vi) EXCLUSIONS.—Grants provided to a State by the
Administration or another Federal agency to carry out
subsection (a)(6) or (c)(3)(G), or for supplemental grants
set forth in clause (iv)(II) of this subparagraph, shall not
be included in the calculation of maximum funding for
a State under clause (ii) of this subparagraph.
‘‘(vii) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this subparagraph $125,000,000 for each of fiscal years 2001, 2002,
and 2003.
‘‘(viii) STATE DEFINED.—In this subparagraph, the term
‘State’ means each of the several States, the District of
Columbia, the Commonwealth of Puerto Rico, the Virgin
Islands, Guam, and American Samoa.’’.
SEC. 805. SURETY BONDS.
(a) CONTRACT AMOUNTS.—Section 411 of the Small Business
Investment Act of 1958 (15 U.S.C. 694b) is amended—
(1) in subsection (a)(1), by striking ‘‘$1,250,000’’ and inserting ‘‘$2,000,000’’; and
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114 STAT. 2763A–706
PUBLIC LAW 106–554—APPENDIX I
(2) in subsection (e)(2), by striking ‘‘$1,250,000’’ and inserting ‘‘$2,000,000’’.
(b) EXTENSION OF CERTAIN AUTHORITY.—Section 207 of the
Small Business Administration Reauthorization and Amendment
Act of 1988 (15 U.S.C. 694b note) is amended by striking ‘‘2000’’
and inserting ‘‘2003’’.
SEC. 806. SIZE STANDARDS.
(a) INDUSTRY CLASSIFICATIONS.—Section 15(a) of the Small
Business Act (15 U.S.C. 644(a)) is amended in the eighth sentence,
by striking ‘‘four-digit standard’’ and all that follows through ‘‘published’’ and inserting ‘‘definition of a ‘United States industry’ under
the North American Industry Classification System, as established’’.
(b) ANNUAL RECEIPTS.—Section 3(a)(1) of the Small Business
Act (15 U.S.C. 632(a)(1)) is amended by striking ‘‘$500,000’’ and
inserting ‘‘$750,000’’.
SEC. 807. NATIVE HAWAIIAN ORGANIZATIONS UNDER SECTION 8(a).
Section 8(a)(15)(A) of the Small Business Act (15 U.S.C.
637(a)(15)(A)) is amended to read as follows:
‘‘(A) is a nonprofit corporation that has filed articles of
incorporation with the director (or the designee thereof) of
the Hawaii Department of Commerce and Consumer Affairs,
or any successor agency,’’.
SEC. 808. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION CORRECTION.
Section 33(k) of the Small Business Act (15 U.S.C. 657c(k))
is amended—
(1) by striking paragraph (1) and inserting the following:
‘‘(1) IN GENERAL.—Subject to paragraph (2), there are
authorized to be appropriated to the Corporation to carry out
this section—
‘‘(A) $4,000,000 for fiscal year 2001;
‘‘(B) $4,000,000 for fiscal year 2002;
‘‘(C) $2,000,000 for fiscal year 2003; and
‘‘(D) $2,000,000 for fiscal year 2004.’’;
(2) in paragraph (2)(A), by striking ‘‘2001’’ each place it
appears and inserting ‘‘2002’’; and
(3) in paragraph (2)(B), by striking ‘‘2002 or 2003’’ and
inserting ‘‘2003 or 2004’’.
SEC. 809. PRIVATE SECTOR RESOURCES FOR SCORE.
Section 8(b)(1)(B) of the Small Business Act (15 U.S.C.
637(b)(1)(B)) is amended by adding at the end the following: ‘‘Notwithstanding any other provision of law, SCORE may solicit cash
and in-kind contributions from the private sector to be used to
carry out its functions under this Act, and may use payments
made by the Administration pursuant to this subparagraph for
such solicitation.’’.
SEC. 810. CONTRACT DATA COLLECTION.
Section 15 of the Small Business Act (15 U.S.C. 644) is amended
by adding at the end the following new subsection:
‘‘(p) DATABASE, ANALYSIS, AND ANNUAL REPORT WITH RESPECT
TO BUNDLED CONTRACTS.—
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PUBLIC LAW 106–554—APPENDIX I
114 STAT. 2763A–707
‘‘(1) BUNDLED CONTRACT DEFINED.—In this subsection, the
term ‘bundled contract’ has the meaning given such term in
section 3(o)(1).
‘‘(2) DATABASE.—
‘‘(A) IN GENERAL.—Not later than 180 days after the
date of the enactment of this subsection, the Administrator
of the Small Business Administration shall develop and
shall thereafter maintain a database containing data and
information regarding—
‘‘(i) each bundled contract awarded by a Federal
agency; and
‘‘(ii) each small business concern that has been
displaced as a prime contractor as a result of the
award of such a contract.
‘‘(3) ANALYSIS.—For each bundled contract that is to be
recompeted as a bundled contract, the Administrator shall
determine—
‘‘(A) the amount of savings and benefits (in accordance
with subsection (e)) achieved under the bundling of contract
requirements; and
‘‘(B) whether such savings and benefits will continue
to be realized if the contract remains bundled, and whether
such savings and benefits would be greater if the procurement requirements were divided into separate solicitations
suitable for award to small business concerns.
‘‘(4) ANNUAL REPORT ON CONTRACT BUNDLING.—
‘‘(A) IN GENERAL.—Not later than 1 year after the
date of the enactment of this paragraph, and annually
in March thereafter, the Administration shall transmit a
report on contract bundling to the Committees on Small
Business of the House of Representatives and the Senate.
‘‘(B) CONTENTS.—Each report transmitted under
subparagraph (A) shall include—
‘‘(i) data on the number, arranged by industrial
classification, of small business concerns displaced as
prime contractors as a result of the award of bundled
contracts by Federal agencies; and
‘‘(ii) a description of the activities with respect
to previously bundled contracts of each Federal agency
during the preceding year, including—
‘‘(I) data on the number and total dollar
amount of all contract requirements that were bundled; and
‘‘(II) with respect to each bundled contract,
data or information on—
‘‘(aa) the justification for the bundling of
contract requirements;
‘‘(bb) the cost savings realized by bundling
the contract requirements over the life of the
contract;
‘‘(cc) the extent to which maintaining the
bundled status of contract requirements is projected to result in continued cost savings;
‘‘(dd) the extent to which the bundling
of contract requirements complied with the
contracting agency’s small business subcontracting plan, including the total dollar
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114 STAT. 2763A–708
PUBLIC LAW 106–554—APPENDIX I
value awarded to small business concerns as
subcontractors and the total dollar value previously awarded to small business concerns
as prime contractors; and
‘‘(ee) the impact of the bundling of contract
requirements on small business concerns
unable to compete as prime contractors for
the consolidated requirements and on the
industries of such small business concerns,
including a description of any changes to the
proportion of any such industry that is composed of small business concerns.
‘‘(5) ACCESS TO DATA.—
‘‘(A) FEDERAL PROCUREMENT DATA SYSTEM.—To assist
in the implementation of this section, the Administration
shall have access to information collected through the Federal Procurement Data System.
‘‘(B) AGENCY PROCUREMENT DATA SOURCES.—To assist
in the implementation of this section, the head of each
contracting agency shall provide, upon request of the
Administration, procurement information collected through
existing agency data collection sources.’’.
SEC. 811. PROCUREMENT PROGRAM FOR WOMEN-OWNED SMALL BUSINESS CONCERNS.
Section 8 of the Small Business Act (15 U.S.C. 637) is amended
by adding at the end the following:
‘‘(m) PROCUREMENT PROGRAM FOR WOMEN-OWNED SMALL BUSINESS CONCERNS.—
‘‘(1) DEFINITIONS.—In this subsection, the following definitions apply:
‘‘(A) CONTRACTING OFFICER.—The term ‘contracting
officer’ has the meaning given such term in section 27(f )(5)
of the Office of Federal Procurement Policy Act (41 U.S.C.
423(f )(5)).
‘‘(B) SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY WOMEN.—The term ‘small business concern
owned and controlled by women’ has the meaning given
such term in section 3(n), except that ownership shall
be determined without regard to any community property
law.
‘‘(2) AUTHORITY TO RESTRICT COMPETITION.—In accordance
with this subsection, a contracting officer may restrict competition for any contract for the procurement of goods or services
by the Federal Government to small business concerns owned
and controlled by women, if—
‘‘(A) each of the concerns is not less than 51 percent
owned by one or more women who are economically disadvantaged (and such ownership is determined without
regard to any community property law);
‘‘(B) the contracting officer has a reasonable expectation that two or more small business concerns owned and
controlled by women will submit offers for the contract;
‘‘(C) the contract is for the procurement of goods or
services with respect to an industry identified by the
Administrator pursuant to paragraph (3);
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‘‘(D) the anticipated award price of the contract (including options) does not exceed—
‘‘(i) $5,000,000, in the case of a contract assigned
an industrial classification code for manufacturing; or
‘‘(ii) $3,000,000, in the case of all other contracts;
‘‘(E) in the estimation of the contracting officer, the
contract award can be made at a fair and reasonable price;
and
‘‘(F) each of the concerns—
‘‘(i) is certified by a Federal agency, a State government, or a national certifying entity approved by the
Administrator, as a small business concern owned and
controlled by women; or
‘‘(ii) certifies to the contracting officer that it is
a small business concern owned and controlled by
women and provides adequate documentation, in
accordance with standards established by the Administration, to support such certification.
‘‘(3) WAIVER.—With respect to a small business concern
owned and controlled by women, the Administrator may waive
subparagraph (2)(A) if the Administrator determines that the
concern is in an industry in which small business concerns
owned and controlled by women are substantially underrepresented.
‘‘(4) IDENTIFICATION OF INDUSTRIES.—The Administrator
shall conduct a study to identify industries in which small
business concerns owned and controlled by women are underrepresented with respect to Federal procurement contracting.
‘‘(5) ENFORCEMENT; PENALTIES.—
‘‘(A) VERIFICATION OF ELIGIBILITY.—In carrying out this
subsection, the Administrator shall establish procedures
relating to—
‘‘(i) the filing, investigation, and disposition by the
Administration of any challenge to the eligibility of
a small business concern to receive assistance under
this subsection (including a challenge, filed by an
interested party, relating to the veracity of a certification made or information provided to the Administration by a small business concern under paragraph
(2)(F)); and
‘‘(ii) verification by the Administrator of the
accuracy of any certification made or information provided to the Administration by a small business concern under paragraph (2)(F).
‘‘(B) EXAMINATIONS.—The procedures established under
subparagraph (A) may provide for program examinations
(including random program examinations) by the Administrator of any small business concern making a certification
or providing information to the Administrator under paragraph (2)(F).
‘‘(C) PENALTIES.—In addition to the penalties described
in section 16(d), any small business concern that is determined by the Administrator to have misrepresented the
status of that concern as a small business concern owned
and controlled by women for purposes of this subsection,
shall be subject to—
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‘‘(i) section 1001 of title 18, United States Code;
and
‘‘(ii) sections 3729 through 3733 of title 31, United
States Code.
‘‘(6) PROVISION OF DATA.—Upon the request of the Administrator, the head of any Federal department or agency shall
promptly provide to the Administrator such information as
the Administrator determines to be necessary to carry out
this subsection.’’.
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| File Type | application/pdf |
| File Modified | 2012-03-20 |
| File Created | 2001-03-08 |