To increase the end strength of the Army and to structure the additional forces for constabulary duty.

TEXT OF AMENDMENTS

SA 1828. Mr. COCHRAN (for himself, Mr. Crapo, Mr. Domenici, Mrs.
Lincoln, Mr. Craig, Mr. Wyden, Mrs. Feinstein, Mr. McCain, Mr. Baucus,
Ms. Murkowski, Mr. Thomas, Mr. Daschle, Mr. Burns, and Mr. Johnson)
submitted an amendment intended to be proposed by him to the bill H.R.
1904, to improve the capacity of the Secretary of Agriculture and the
Secretary of the Interior to plan and conduct hazardous fuels reduction
projects on National Forest System lands and Bureau of Land Management
lands aimed at protecting communities, watersheds, and certain other
at-risk lands from catastrophic wildfire, to enhance efforts to protect
watersheds and address threats to forest and rangeland health,
including catastrophic wildfire, across the landscape, and for other
purposes; which was ordered to lie on the table; as follows:

Strike section 1 through title I and insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Healthy
Forests Restoration Act of 2003''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.

TITLE I--HAZARDOUS FUEL REDUCTION ON FEDERAL LAND

Sec. 101. Definitions.
Sec. 102. Authorized hazardous fuel reduction projects.
Sec. 103. Prioritization.
Sec. 104. Environmental analysis.
Sec. 105. Special administrative review process.
Sec. 106. Judicial review in United States district courts.
Sec. 107. Effect of title.
Sec. 108. Authorization of appropriations.

TITLE II--BIOMASS

Sec. 201. Findings.
Sec. 202. Definitions.
Sec. 203. Grants to improve commercial value of forest biomass for
electric energy, useful heat, transportation fuels,
compost, value-added products, and petroleum-based
product substitutes.
Sec. 204. Reporting requirement.
Sec. 205. Improved biomass use research program.
Sec. 206. Rural revitalization through forestry.

TITLE III--WATERSHED FORESTRY ASSISTANCE

Sec. 301. Findings and purposes.
Sec. 302. Watershed forestry assistance program.
Sec. 303. Tribal watershed forestry assistance.

TITLE IV--INSECT INFESTATIONS AND RELATED DISEASES

Sec. 401. Findings and purpose.
Sec. 402. Definitions.
Sec. 403. Accelerated information gathering regarding forest-damaging
insects.
Sec. 404. Applied silvicultural assessments.
Sec. 405. Relation to other laws.
Sec. 406. Authorization of appropriations.

TITLE V--HEALTHY FORESTS RESERVE PROGRAM

Sec. 501. Establishment of healthy forests reserve program.
Sec. 502. Eligibility and enrollment of lands in program.
Sec. 503. Restoration plans.
Sec. 504. Financial assistance.
Sec. 505. Technical assistance.
Sec. 506. Protections and measures
Sec. 507. Involvement by other agencies and organizations.
Sec. 508. Authorization of appropriations.

TITLE VI--PUBLIC LAND CORPS

Sec. 601. Purposes.
Sec. 602. Definitions.
Sec. 603. Public Land Corps.
Sec. 604. Nondisplacement.
Sec. 605. Authorization of appropriations.

TITLE VII--RURAL COMMUNITY FORESTRY ENTERPRISE PROGRAM

Sec. 701. Purpose
Sec. 702. Definitions.
Sec. 703. Rural community forestry enterprise program.

TITLE VIII--MISCELLANEOUS PROVISIONS

Sec. 801. Forest inventory and management.
Sec. 802. Program for emergency treatment and reduction of nonnative
invasive plants.
Sec. 803. USDA National Agroforestry Center.
Sec. 804. Upland Hardwoods Research Center.
Sec. 805. Sense of Congress regarding enhanced community fire
protection.

SEC. 2. PURPOSES.

The purposes of this Act are--
(1) to reduce wildfire risk to communities, municipal water
supplies, and other at-risk Federal land through a
collaborative process of planning, prioritizing, and
implementing hazardous fuel reduction projects;
(2) to authorize grant programs to improve the commercial
value of forest biomass (that otherwise contributes to the
risk of catastrophic fire or insect or disease infestation)
for producing electric energy, useful heat, transportation
fuel, and petroleum-based product substitutes, and for other
commercial purposes;
(3) to enhance efforts to protect watersheds and address
threats to forest and rangeland health, including
catastrophic wildfire, across the landscape;
(4) to promote systematic gathering of information to
address the impact of insect and disease infestations and
other damaging agents on forest and rangeland health;
(5) to improve the capacity to detect insect and disease
infestations at an early stage, particularly with respect to
hardwood forests; and
(6) to protect, restore, and enhance forest ecosystem
components--
(A) to promote the recovery of threatened and endangered
species;
(B) to improve biological diversity; and
(C) to enhance productivity and carbon sequestration.

SEC. 3. DEFINITIONS.

In this Act:
(1) Federal land.--The term ``Federal land'' means--
(A) land of the National Forest System (as defined in
section 11(a) of the Forest and Rangeland Renewable Resources
Planning Act of 1974 (16 U.S.C 1609(a))) administered by the
Secretary of Agriculture, acting through the Chief of the
Forest Service; and
(B) public lands (as defined in section 103 of the Federal
Land Policy and Management Act of 1976 (43 U.S.C 1702)), the
surface of which is administered by the Secretary of the
Interior, acting through the Director of the Bureau of Land
Management.
(2) 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).

TITLE I--HAZARDOUS FUEL REDUCTION ON FEDERAL LAND

SEC. 101. DEFINITIONS.

In this title:
(1) At-risk community.--The term ``at-risk community''
means an area--
(A) that is comprised of--
(i) an interface community as defined in the notice
entitled ``Urban Wildlife Interface Communities Within the
Vicinity of Federal Lands That Are at High Risk From
Wildfire'' issued by the Secretary of Agriculture and the
Secretary of the Interior in accordance with title IV of the
Department of the Interior and Related Agencies
Appropriations Act, 2001 (114 Stat. 1009) (66 Fed. Reg. 753,
January 4, 2001); or
(ii) a group of homes and other structures with basic
infrastructure and services (such as utilities and
collectively maintained transportation routes) within or
adjacent to Federal land;
(B) in which conditions are conducive to a large-scale
wildland fire disturbance event; and
(C) for which a significant threat to human life or
property exists as a result of a wildland fire disturbance
event.
(2) Authorized hazardous fuel reduction project.--The term
``authorized hazardous fuel reduction project'' means the
measures and methods described in the definition of
``appropriate tools'' contained in the glossary of the
Implementation Plan, on Federal land described in section
102(a) and conducted under sections 103 and 104.
(3) Community wildfire protection plan.--The term
``community wildfire protection plan'' means a plan for an
at-risk community that--
(A) is developed within the context of the collaborative
agreements and the guidance

[[Page S12548]]

established by the Wildland Fire Leadership Council and
agreed to by the applicable local government, local fire
department, and State natural resources department, in
consultation with interested parties and the Federal land
management agencies managing land in the vicinity of the at-
risk community;
(B) identifies and prioritizes areas for hazardous fuel
reduction treatments and recommends the types and methods of
treatment on Federal and non-Federal land that will protect 1
or more at-risk communities and essential infrastructure; and
(C) recommends measures to reduce structural ignitability
throughout the at-risk community.
(4) Condition class 2.--The term ``condition class 2'',
with respect to an area of Federal land, means the condition
class description developed by the Forest Service Rocky
Mountain Research Station in the general technical report
entitled ``Development of Coarse-Scale Spatial Data for
Wildland Fire and Fuel Management'' (RMRS-87), dated April
2000 (including any subsequent revision to the report), under
which--
(A) fire regimes on the land have been moderately altered
from historical ranges;
(B) there exists a moderate risk of losing key ecosystem
components from fire;
(C) fire frequencies have increased or decreased from
historical frequencies by 1 or more return intervals,
resulting in moderate changes to--
(i) the size, frequency, intensity, or severity of fires;
or
(ii) landscape patterns; and
(D) vegetation attributes have been moderately altered from
the historical range of the attributes.
(5) Condition class 3.--The term ``condition class 3'',
with respect to an area of Federal land, means the condition
class description developed by the Rocky Mountain Research
Station in the general technical report referred to in
paragraph (4) (including any subsequent revision to the
report), under which--
(A) fire regimes on land have been significantly altered
from historical ranges;
(B) there exists a high risk of losing key ecosystem
components from fire;
(C) fire frequencies have departed from historical
frequencies by multiple return intervals, resulting in
dramatic changes to--
(i) the size, frequency, intensity, or severity of fires;
or
(ii) landscape patterns; and
(D) vegetation attributes have been significantly altered
from the historical range of the attributes.
(6) Day.--The term ``day'' means--
(A) a calendar day; or
(B) if a deadline imposed by this title would expire on a
nonbusiness day, the end of the next business day.
(7) Decision document.--The term ``decision document''
means--
(A) a decision notice (as that term is used in the Forest
Service Handbook);
(B) a decision record (as that term is used in the Bureau
of Land Management Handbook); and
(C) a record of decision (as that term is used in
applicable regulations of the Council on Environmental
Quality).
(8) Fire regime i.--The term ``fire regime I'' means an
area--
(A) in which historically there have been low-severity
fires with a frequency of 0 through 35 years; and
(B) that is located primarily in low elevation forests of
pine, oak, or pinyon juniper.
(9) Fire regime ii.--The term ``fire regime II'' means an
area--
(A) in which historically there are stand replacement
severity fires with a frequency of 0 through 35 years; and
(B) that is located primarily in low- to mid-elevation
rangeland, grassland, or shrubland.
(10) Fire regime iii.--The term ``fire regime III'' means
an area--
(A) in which historically there are mixed severity fires
with a frequency of 35 through 100 years; and
(B) that is located primarily in forests of mixed conifer,
dry Douglas fir, or wet Ponderosa pine.
(11) Implementation plan.--The term ``Implementation Plan''
means the Implementation Plan for the Comprehensive Strategy
for a Collaborative Approach for Reducing Wildland Fire Risks
to Communities and the Environment, dated May 2002, developed
pursuant to the conference report to accompany the Department
of the Interior and Related Agencies Appropriations Act, 2001
(House Report 106-64) (and subsequent revisions).
(12) Municipal water supply system.--The term ``municipal
water supply system'' means the reservoirs, canals, ditches,
flumes, laterals, pipes, pipelines, and other surface
facilities and systems constructed or installed for the
collection, impoundment, storage, transportation, or
distribution of drinking water.
(13) Resource management plan.--The term ``resource
management plan'' means--
(A) a land and resource management plan prepared for 1 or
more units of land of the National Forest System described in
section 3(1)(A) under section 6 of the Forest and Rangeland
Renewable Resources Planning Act of 1974 (16 U.S.C. 1604); or
(B) a land use plan prepared for 1 or more units of the
public land described in section 3(1)(B) under section 202 of
the Federal Land Policy and Management Act of 1976 (43 U.S.C.
1712).
(14) Secretary.--The term ``Secretary'' means--
(A) the Secretary of Agriculture, with respect to land of
the National Forest System described in section 3(1)(A); and
(B) the Secretary of the Interior, with respect to public
lands described in section 3(1)(B).
(15) Threatened and endangered species habitat.--The term
``threatened and endangered species habitat'' means Federal
land identified in--
(A) a determination that a species is an endangered species
or a threatened species under the Endangered Species Act of
1973 (16 U.S.C. 1531 et seq.);
(B) a designation of critical habitat of the species under
that Act; or
(C) a recovery plan prepared for the species under that
Act.
(16) Wildland-urban interface.--The term ``wildland-urban
interface'' means--
(A) an area within or adjacent to an at-risk community that
is identified in recommendations to the Secretary in a
community wildfire protection plan; or
(B) in the case of any area for which a community wildfire
protection plan is not in effect--
(i) an area extending \1/2\-mile from the boundary of an
at-risk community;
(ii) an area extending more than \1/2\-mile from the
boundary of an at-risk community, if the land adjacent to the
at-risk community--

(I) has a sustained steep slope that creates the potential
for wildfire behavior endangering the at-risk community; or
(II) has a geographic feature that aids in creating an
effective fire break, such as a road or ridge top, within \3/
4\-mile of the nearest at-risk community boundary; and

(iii) an area that is adjacent to an evacuation route for
an at-risk community that the Secretary determines, in
cooperation with the at-risk community, requires hazardous
fuel reduction to provide safer evacuation from the at-risk
community.

SEC. 102. AUTHORIZED HAZARDOUS FUEL REDUCTION PROJECTS.

(a) Authorized Projects.--As soon as practicable after the
date of enactment of this Act, the Secretary shall implement
authorized hazardous fuel reduction projects, consistent with
the Implementation Plan, on--
(1) Federal land in wildland-urban interface areas;
(2) condition class 3 Federal land, in such proximity to a
municipal water supply system or a stream feeding such a
system within a municipal watershed that a significant risk
exists that a fire disturbance event would have adverse
effects on the water quality of the municipal water supply or
the maintenance of the system, including a risk to water
quality posed by erosion following such a fire disturbance
event;
(3) condition class 2 Federal land located within fire
regime I, fire regime II, or fire regime III, in such
proximity to a municipal water supply system or a stream
feeding such a system within a municipal watershed that a
significant risk exists that a fire disturbance event would
have adverse effects on the water quality of the municipal
water supply or the maintenance of the system, including a
risk to water quality posed by erosion following such a fire
disturbance event;
(4) Federal land on which windthrow or blowdown, ice storm
damage, or the existence of disease or insect infestation,
poses a significant threat to an ecosystem component, or
forest or rangeland resource, on the Federal land or adjacent
non-Federal land;
(5) Federal land not covered by paragraphs (1) through (4)
that contains threatened and endangered species habitat, if--
(A) natural fire regimes on that land are identified as
being important for, or wildfire is identified as a threat
to, an endangered species, a threatened species, or habitat
of an endangered species or threatened species in a species
recovery plan prepared under section 4 of the Endangered
Species Act of 1973 (16 U.S.C. 1533), or a notice published
in the Federal Register determining a species to be an
endangered species or a threatened species or designating
critical habitat;
(B) the authorized hazardous fuel reduction project will
provide enhanced protection from catastrophic wildfire for
the endangered species, threatened species, or habitat of the
endangered species or threatened species; and
(C) the Secretary complies with any applicable guidelines
specified in any management or recovery plan described in
subparagraph (A).
(b) Relation to Agency Plans.--An authorized hazardous fuel
reduction project shall be conducted consistent with the
resource management plan and other relevant administrative
policies or decisions applicable to the Federal land covered
by the project.
(c) Acreage Limitation.--Not more than a total of
20,000,000 acres of Federal land may be treated under
authorized hazardous fuel reduction projects.
(d) Exclusion of Certain Federal Land.--The Secretary may
not conduct an authorized hazardous fuel reduction project
that would occur on--
(1) a component of the National Wilderness Preservation
System;
(2) Federal land on which, by Act of Congress or
Presidential proclamation, the removal of vegetation is
prohibited or restricted; or

[[Page S12549]]

(3) a Wilderness Study Area.
(e) Old Growth Stands.--
(1) Definitions.--In this subsection and subsection (f):
(A) Covered project.--The term ``covered project'' means an
authorized hazardous fuel reduction project carried out under
paragraph (1), (2), (3), or (5) of subsection (a).
(B) Old growth stand.--The term ``old growth stand'' has
the meaning given the term under standards used pursuant to
paragraphs (3) and (4), based on the structure and
composition characteristic of the forest type, and in
accordance with applicable law, including section 6(g)(3)(B)
of the Forest and Rangeland Renewable Resources Planning Act
of 1974 (16 U.S.C. 1604(g)(3)(B)).
(C) Standards.--The term ``standards'' means definitions,
designations, standards, guidelines, goals, or objectives
established for an old growth stand under a resource
management plan developed in accordance with applicable law,
including section 6(g)(3)(B) of the Forest and Rangeland
Renewable Resources Planning Act of 1974 (16 U.S.C.
1604(g)(3)(B)).
(2) Project requirements.--In carrying out a covered
project, the Secretary shall fully maintain, or contribute
toward the restoration of, the structure and composition of
old growth stands according to the pre-fire suppression old
growth conditions characteristic of the forest type, taking
into account the contribution of the stand to landscape fire
adaptation and watershed health, and retaining the large
trees contributing to old growth structure.
(3) Newer standards.--
(A) In general.--If the standards for an old growth stand
were established during the 10-year period ending on the date
of enactment of this Act, the Secretary shall meet the
requirements of paragraph (2) by implementing the standards.
(B) Amendments or revisions.--Any amendment or revision to
standards for which final administrative approval is granted
after the date of enactment of this Act shall be consistent
with paragraph (2).
(4) Older standards.--
(A) In general.--If the standards for an old growth stand
were established before the 10-year period described in
paragraph (3)(A), the Secretary shall meet the requirements
of paragraph (2) by implementing the standards--
(i) during the 2-year period beginning on the date of
enactment of this Act; or
(ii) if the Secretary is in the process of revising a
resource management plan as of the date of enactment of this
Act, during the 3-year period beginning on the date of
enactment of this Act.
(B) Review required.--During the applicable period
described in subparagraph (A) for the standards for an old
growth stand under a resource management plan, the Secretary
shall--
(i) review the standards, taking into account any relevant
scientific information made available since the adoption of
the standards; and
(ii) revise the standards to be consistent with paragraph
(2), if necessary to reflect relevant scientific information
the Secretary did not consider in formulating the resource
management plan.
(C) Review not completed.--
(i) In general.--If the Secretary does not complete the
review of the standards in accordance with subparagraph (B),
during the period described in clause (ii), the Secretary
shall not carry out any portion of a covered project in a
stand that is identified as an old growth stand (based on
substantial supporting evidence) by any person during
scoping.
(ii) Period.--Clause (i) applies during the period--

(I) beginning on the termination of the applicable period
for the standards described in subparagraph (A); and
(II) ending on the date the Secretary completes the action
required by subparagraph (B) for the standards.

(5) Effect on civil actions.--A person may bring a civil
action based on standards for an old growth stand under a
resource management plan only by challenging a plan
amendment, plan revision, or project implementing the
standards of the plan, in accordance with applicable
provisions of law (including the National Forest Management
Act of 1976 (16 U.S.C. 1600 et seq.) and the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.)).
(f) Large Tree Retention.--Subject to subsection (e), the
Secretary shall carry out a covered project in a manner
that--
(1) focuses largely on small diameter trees, thinning,
strategic fuel breaks, and prescribed fire to modify fire
behavior, as measured by the projected reduction of
uncharacteristically severe wildfire effects for the forest
type (such as adverse soil impacts, tree mortality or other
impacts); and
(2) maximizes the retention of large trees, as appropriate
for the forest type, to the extent that the trees promote
fire-resilient stands and the purposes of section 6(g)(3)(B)
of the Forest and Rangeland Renewable Resources Planning Act
of 1976 (16 U.S.C. 1604(g)(3)(B)).
(g) Monitoring and Assessing Forest and Rangeland Health.--
(1) In general.--For each Forest Service administrative
region and each Bureau of Land Management State Office, the
Secretary shall--
(A) monitor the results of the projects authorized under
this section; and
(B) not later than 5 years after the date of enactment of
this Act, and each 5 years thereafter, issue a report that
includes--
(i) an evaluation of the progress towards project goals;
and
(ii) recommendations for modifications to the projects and
management treatments.
(2) Consistency of projects with recommendations.--An
authorized hazardous fuel reduction project approved
following the issuance of a monitoring report shall, to the
maximum extent practicable, be consistent with any applicable
recommendations in the report.
(3) Similar vegetation types.--The results of a monitoring
report shall be made available in, and (if appropriate) used
for, a project conducted in a similar vegetation type on land
under the jurisdiction of the Secretary.
(4) Monitoring and assessments.--From a representative
sample of authorized hazardous fuel reduction projects, for
each management unit, monitoring and assessment shall include
a description of the effects on changes in condition class,
using the Fire Regime Condition Class Guidebook or successor
guidance, specifically comparing end results to--
(A) pretreatment conditions;
(B) historical fire regimes; and
(C) any applicable watershed or landscape goals or
objectives in the resource management plan or other relevant
direction.
(5) Tracking.--For each management unit, the Secretary
shall track acres burned, by the degree of severity, by large
wildfires (as defined by the Secretary).
(6) Monitoring and maintenance of treated areas.--The
Secretary shall, to the maximum extent practicable, develop a
process for monitoring the need for maintenance of treated
areas, over time, in order to preserve the forest health
benefits achieved.

SEC. 103. PRIORITIZATION.

(a) In General.--In accordance with the Implementation
Plan, the Secretary shall develop an annual program of work
for Federal land that gives priority to authorized hazardous
fuel reduction projects that provide for the protection of
at-risk communities or watersheds or that implement community
wildfire protection plans.
(b) Collaboration.--
(1) In general.--The Secretary shall consider
recommendations under subsection (a) that are made by at-risk
communities that have developed community wildfire protection
plans.
(2) Exemption.--The Federal Advisory Committee Act (5
U.S.C. App.) shall not apply to the planning process and
recommendations concerning community wildfire protection
plans.
(c) Administration.--
(1) In general.--Federal agency involvement in a community
wildfire protection plan, or a recommendation made in a
community wildfire protection plan, shall not be considered a
Federal agency action under the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.).
(2) Compliance.--In implementing authorized hazardous fuel
reduction projects on Federal land, the Secretary shall, in
accordance with section 104, comply with the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
(d) Funding Allocation.--
(1) Federal land.--
(A) In general.--Subject to subparagraph (B), the Secretary
shall use not less than 50 percent of the funds allocated for
authorized hazardous fuel reduction projects in the wildland-
urban interface.
(B) Applicability and allocation.--The funding allocation
in subparagraph (A) shall apply at the national level, and
the Secretary may allocate the proportion of funds
differently than is required under subparagraph (A) within
individual management units as appropriate, in particular to
conduct authorized hazardous fuel reduction projects on land
described in section 102(a)(4).
(2) Non-federal land.--In providing financial assistance
under any provision of law for authorized hazardous fuel
reduction projects on non-Federal land, the Secretary shall
consider recommendations made by at-risk communities that
have developed community wildfire protection plans.

SEC. 104. ENVIRONMENTAL ANALYSIS.

(a) Authorized Hazardous Fuel Reduction Projects.--Except
as otherwise provided in this title, the Secretary shall
conduct authorized hazardous fuel reduction projects in
accordance with--
(1) the National Environmental Policy Act of 1969 (42
U.S.C. 4331 et seq.); and
(2) other applicable laws.
(b) Environmental Assessment or Impact Statements.--
(1) In general.--The Secretary shall prepare an
environmental assessment or an environmental impact statement
(pursuant to section 102(2) of the National Environmental
Policy Act of 1969 (42 U.S.C. 4332(2))) for any authorized
hazardous fuel reduction project.
(2) Alternatives.--In the environmental assessment or
environmental impact statement prepared under paragraph (1),
the Secretary shall study, develop, and describe--
(A) the proposed agency action;
(B) the alternative of no action; and
(C) an additional action alternative, if the additional
alternative--
(i) is proposed during scoping or the collaborative
process; and

[[Page S12550]]

(ii) meets the purpose and need of the project, in
accordance with regulations promulgated by the Council on
Environmental Quality.
(3) Multiple additional alternatives.--If more than 1
additional alternative is proposed under paragraph (2)(C),
the Secretary shall--
(A) select which additional alternative to consider; and
(B) provide a written record describing the reasons for the
selection.
(c) Public Notice and Meeting.--
(1) Public notice.--The Secretary shall provide notice of
each authorized hazardous fuel reduction project in
accordance with applicable regulations and administrative
guidelines.
(2) Public meeting.--During the preparation stage of each
authorized hazardous fuel reduction project, the Secretary
shall--
(A) conduct a public meeting at an appropriate location
proximate to the administrative unit of the Federal land on
which the authorized hazardous fuel reduction project will be
conducted; and
(B) provide advance notice of the location, date, and time
of the meeting.
(d) Public Collaboration.--In order to encourage meaningful
public participation during preparation of authorized
hazardous fuel reduction projects, the Secretary shall
facilitate collaboration among State and local governments
and Indian tribes, and participation of interested persons,
during the preparation of each authorized fuel reduction
project in a manner consistent with the Implementation Plan.
(e) Environmental Analysis and Public Comment.--In
accordance with section 102(2) of the National Environmental
Policy Act of 1969 (42 U.S.C. 4332(2)) and the applicable
regulations and administrative guidelines, the Secretary
shall provide an opportunity for public comment during the
preparation of any environmental assessment or environmental
impact statement for an authorized hazardous fuel reduction
project.
(f) Decision Document.--The Secretary shall sign a decision
document for authorized hazardous fuel reduction projects and
provide notice of the final agency actions.
(g) Project Monitoring.--In accordance with the
Implementation Plan, the Secretary shall monitor the
implementation of authorized hazardous fuel reduction
projects.

SEC. 105. SPECIAL ADMINISTRATIVE REVIEW PROCESS.

(a) Interim Final Regulations.--
(1) In general.--Not later than 30 days after the date of
the enactment of this Act, the Secretary of Agriculture shall
promulgate interim final regulations to establish a
predecisional administrative review process for the period
described in paragraph (2) that will serve as the sole means
by which a person can seek administrative review regarding an
authorized hazardous fuel reduction project on Forest Service
land.
(2) Period.--The predecisional administrative review
process required under paragraph (1) shall occur during the
period--
(A) beginning after the completion of the environmental
assessment or environmental impact statement; and
(B) ending not later than the date of the issuance of the
final decision approving the project.
(3) Effective date.--The interim final regulations
promulgated under paragraph (1) shall take effect on the date
of promulgation of the regulations.
(b) Final Regulations.--The Secretary shall promulgate
final regulations to establish the process described in
subsection (a)(1) after the interim final regulations have
been published and reasonable time has been provided for
public comment.
(c) Administrative Review.--
(1) In general.--A person may bring a civil action
challenging an authorized hazardous fuel reduction project in
a Federal district court only if the person has challenged
the authorized hazardous fuel reduction project by
exhausting--
(A) the administrative review process established by the
Secretary of Agriculture under this section; or
(B) the administrative hearings and appeals procedures
established by the Department of the Interior.
(2) Issues.--An issue may be considered in the judicial
review of an action under section 106 only if the issue was
raised in an administrative review process described in
paragraph (1).
(3) Exception.--An exception to the requirement of
exhausting the administrative review process before seeking
judicial review shall be available if a Federal court finds
that the futility or inadequacy exception applies to a
specific plaintiff or claim.

SEC. 106. JUDICIAL REVIEW IN UNITED STATES DISTRICT COURTS.

(a) Venue.--Notwithstanding section 1391 of title 28,
United States Code, or other applicable law, an authorized
hazardous fuels reduction project conducted under this title
shall be subject to judicial review only in the United States
district court for the district in which the Federal land to
be treated under the authorized hazardous fuels reduction
project is located.
(b) Expeditious Completion of Judicial Review.--In the
judicial review of an action challenging an authorized
hazardous fuel reduction project under subsection (a),
Congress encourages a court of competent jurisdiction to
expedite, to the maximum extent practicable, the proceedings
in the action with the goal of rendering a final
determination on jurisdiction, and (if jurisdiction exists) a
final determination on the merits, as soon as practicable
after the date on which a complaint or appeal is filed to
initiate the action.
(c) Injunctions.--
(1) In general.--Subject to paragraph (2), the length of
any preliminary injunctive relief and stays pending appeal
covering an authorized hazardous fuel reduction project
carried out under this title shall not exceed 60 days.
(2) Renewal.--
(A) In general.--A court of competent jurisdiction may
issue 1 or more renewals of any preliminary injunction, or
stay pending appeal, granted under paragraph (1).
(B) Updates.--In each renewal of an injunction in an
action, the parties to the action shall present the court
with updated information on the status of the authorized
hazardous fuel reduction project.
(3) Balancing of short- and long-term effects.--As part of
its weighing the equities while considering any request for
an injunction that applies to an agency action under an
authorized hazardous fuel reduction project, the court
reviewing the project shall balance the impact to the
ecosystem likely affected by the project of--
(A) the short- and long-term effects of undertaking the
agency action; against
(B) the short- and long-term effects of not undertaking the
agency action.

SEC. 107. EFFECT OF TITLE.

(a) Other Authority.--Nothing in this title affects, or
otherwise biases, the use by the Secretary of other statutory
or administrative authority (including categorical exclusions
adopted to implement the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.)) to conduct a hazardous fuel
reduction project on Federal land (including Federal land
identified in section 102(d)) that is not conducted using the
process authorized by section 104.
(b) National Forest System.--Nothing in this title affects,
or otherwise biases, the notice, comment, and appeal
procedures for projects and activities of the National Forest
System contained in part 215 of title 36, Code of Federal
Regulations, or the consideration or disposition of any legal
action brought with respect to the procedures.

SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated $760,000,000 for
each fiscal year to carry out--
(1) activities authorized by this title; and
(2) other hazardous fuel reduction activities of the
Secretary, including making grants to States for activities
authorized by law.
______

SA 1829. Mrs. LINCOLN submitted an amendment intended to be proposed
by her to the bill S. 1689, making emergency supplemental
appropriations for Iraq and Afghanistan security and reconstruction for
the fiscal year ending September 30, 2004, and for other purposes;
which was ordered to lie on the table; as follows:

At the end, add the following:

DIVISION B--RELIEF FOR MILITARY FAMILIES

SECTION 1. SHORT TITLE, ETC.

(a) Short Title.--This division may be cited as the
``Military Families Tax Relief Act of 2003''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this division 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.--

Sec. 1. Short title, etc.

TITLE I--IMPROVING TAX EQUITY FOR MILITARY PERSONNEL

Sec. 101. Exclusion of gain from sale of a principal residence by a
member of the uniformed services or the Foreign Service.
Sec. 102. Exclusion from gross income of certain death gratuity
payments.
Sec. 103. Exclusion for amounts received under Department of Defense
homeowners assistance program.
Sec. 104. Expansion of combat zone filing rules to contingency
operations.
Sec. 105. Modification of membership requirement for exemption from tax
for certain veterans' organizations.
Sec. 106. Clarification of the treatment of certain dependent care
assistance programs.
Sec. 107. Clarification relating to exception from additional tax on
certain distributions from qualified tuition programs,
etc. on account of attendance at military academy.
Sec. 108. Suspension of tax-exempt status of terrorist organizations.
Sec. 109. Above-the-line deduction for overnight travel expenses of
National Guard and Reserve members.
Sec. 110. Tax relief and assistance for families of Space Shuttle
Columbia heroes.

TITLE II--UNIFORM DEFINITION OF CHILD

Sec. 201. Uniform definition of child, etc.

[[Page S12551]]

Sec. 202. Modifications of definition of head of household.
Sec. 203. Modifications of dependent care credit.
Sec. 204. Modifications of child tax credit.
Sec. 205. Modifications of earned income credit.
Sec. 206. Modifications of deduction for personal exemption for
dependents.
Sec. 207. Technical and conforming amendments.
Sec. 208. Effective date.

TITLE III--CHILD TAX CREDIT

Sec. 301. Acceleration of increase in refundability of the child tax
credit.
Sec. 302. Reduction in marriage penalty in child tax credit.
Sec. 303. Application of EGTRRA sunset to this section.

TITLE IV--OTHER PROVISIONS

Sec. 401. Extension of IRS user fees.
Sec. 402. Partial payment of tax liability in installment agreements.
Sec. 403. Revision of tax rules on expatriation.
Sec. 404. Extension of customs user fees.

TITLE I--IMPROVING TAX EQUITY FOR MILITARY PERSONNEL

SEC. 101. EXCLUSION OF GAIN FROM SALE OF A PRINCIPAL
RESIDENCE BY A MEMBER OF THE UNIFORMED SERVICES
OR THE FOREIGN SERVICE.

(a) In General.--Subsection (d) of section 121 (relating to
exclusion of gain from sale of principal residence) is
amended by redesignating paragraph (9) as paragraph (10) and
by inserting after paragraph (8) the following new paragraph:
``(9) Members of uniformed services and foreign service.--
``(A) In general.--At the election of an individual with
respect to a property, the running of the 5-year period
described in subsections (a) and (c)(1)(B) and paragraph (7)
of this subsection with respect to such property shall be
suspended during any period that such individual or such
individual's spouse is serving on qualified official extended
duty as a member of the uniformed services or of the Foreign
Service of the United States.
``(B) Maximum period of suspension.--The 5-year period
described in subsection (a) shall not be extended more than
10 years by reason of subparagraph (A).
``(C) Qualified official extended duty.--For purposes of
this paragraph--
``(i) In general.--The term `qualified official extended
duty' means any extended duty while serving at a duty station
which is at least 50 miles from such property or while
residing under Government orders in Government quarters.
``(ii) Uniformed services.--The term `uniformed services'
has the meaning given such term by section 101(a)(5) of title
10, United States Code, as in effect on the date of the
enactment of this paragraph.
``(iii) Foreign service of the united states.--The term
`member of the Foreign Service of the United States' has the
meaning given the term `member of the Service' by paragraph
(1), (2), (3), (4), or (5) of section 103 of the Foreign
Service Act of 1980, as in effect on the date of the
enactment of this paragraph.
``(iv) Extended duty.--The term `extended duty' means any
period of active duty pursuant to a call or order to such
duty for a period in excess of 90 days or for an indefinite
period.
``(D) Special rules relating to election.--
``(i) Election limited to 1 property at a time.--An
election under subparagraph (A) with respect to any property
may not be made if such an election is in effect with respect
to any other property.
``(ii) Revocation of election.--An election under
subparagraph (A) may be revoked at any time.''.
(b) Effective Date; Special Rule.--
(1) Effective date.--The amendments made by this section
shall take effect as if included in the amendments made by
section 312 of the Taxpayer Relief Act of 1997.
(2) Waiver of limitations.--If refund or credit of any
overpayment of tax resulting from the amendments made by this
section is prevented at any time before the close of the 1-
year period beginning on the date of the enactment of this
Act by the operation of any law or rule of law (including res
judicata), such refund or credit may nevertheless be made or
allowed if claim therefor is filed before the close of such
period.

SEC. 102. EXCLUSION FROM GROSS INCOME OF CERTAIN DEATH
GRATUITY PAYMENTS.

(a) In General.--Subsection (b)(3) of section 134 (relating
to certain military benefits) is amended by adding at the end
the following new subparagraph:
``(C) Exception for death gratuity adjustments made by
law.--Subparagraph (A) shall not apply to any adjustment to
the amount of death gratuity payable under chapter 75 of
title 10, United States Code, which is pursuant to a
provision of law enacted after September 9, 1986.''.
(b) Conforming Amendment.--Subparagraph (A) of section
134(b)(3) is amended by striking ``subparagraph (B)'' and
inserting ``subparagraphs (B) and (C)''.
(c) Effective Date.--The amendments made by this section
shall apply with respect to deaths occurring after September
10, 2001.

SEC. 103. EXCLUSION FOR AMOUNTS RECEIVED UNDER DEPARTMENT OF
DEFENSE HOMEOWNERS ASSISTANCE PROGRAM.

(a) In General.--Section 132(a) (relating to the exclusion
from gross income of certain fringe benefits) is amended by
striking ``or'' at the end of paragraph (6), by striking the
period at the end of paragraph (7) and inserting ``, or'',
and by adding at the end the following new paragraph:
``(8) qualified military base realignment and closure
fringe.''.
(b) Qualified Military Base Realignment and Closure
Fringe.--Section 132 is amended by redesignating subsection
(n) as subsection (o) and by inserting after subsection (m)
the following new subsection:
``(n) Qualified Military Base Realignment and Closure
Fringe.--For purposes of this section--
``(1) In general.--The term `qualified military base
realignment and closure fringe' means 1 or more payments
under the authority of section 1013 of the Demonstration
Cities and Metropolitan Development Act of 1966 (42 U.S.C.
3374) (as in effect on the date of the enactment of this
subsection) to offset the adverse effects on housing values
as a result of a military base realignment or closure.
``(2) Limitation.--With respect to any property, such term
shall not include any payment referred to in paragraph (1) to
the extent that the sum of all of such payments related to
such property exceeds the maximum amount described in clause
(1) of subsection (c) of such section (as in effect on such
date).''.
(c) Effective Date.--The amendments made by this section
shall apply to payments made after the date of the enactment
of this Act.

SEC. 104. EXPANSION OF COMBAT ZONE FILING RULES TO
CONTINGENCY OPERATIONS.

(a) In General.--Section 7508(a) (relating to time for
performing certain acts postponed by reason of service in
combat zone) is amended--
(1) by inserting ``, or when deployed outside the United
States away from the individual's permanent duty station
while participating in an operation designated by the
Secretary of Defense as a contingency operation (as defined
in section 101(a)(13) of title 10, United States Code) or
which became such a contingency operation by operation of
law'' after ``section 112'',
(2) by inserting in the first sentence ``or at any time
during the period of such contingency operation'' after ``for
purposes of such section'',
(3) by inserting ``or operation'' after ``such an area'',
and
(4) by inserting ``or operation'' after ``such area''.
(b) Conforming Amendments.--
(1) Section 7508(d) is amended by inserting ``or
contingency operation'' after ``area''.
(2) The heading for section 7508 is amended by inserting
``OR CONTINGENCY OPERATION'' after ``COMBAT ZONE''.
(3) The item relating to section 7508 in the table of
sections for chapter 77 is amended by inserting ``or
contingency operation'' after ``combat zone''.
(c) Effective Date.--The amendments made by this section
shall apply to any period for performing an act which has not
expired before the date of the enactment of this Act.

SEC. 105. MODIFICATION OF MEMBERSHIP REQUIREMENT FOR
EXEMPTION FROM TAX FOR CERTAIN VETERANS'
ORGANIZATIONS.

(a) In General.--Subparagraph (B) of section 501(c)(19)
(relating to list of exempt organizations) is amended by
striking ``or widowers'' and inserting ``, widowers,
ancestors, or lineal descendants''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. 106. CLARIFICATION OF THE TREATMENT OF CERTAIN DEPENDENT
CARE ASSISTANCE PROGRAMS.

(a) In General.--Section 134(b) (defining qualified
military benefit) is amended by adding at the end the
following new paragraph:
``(4) Clarification of certain benefits.--For purposes of
paragraph (1), such term includes any dependent care
assistance program (as in effect on the date of the enactment
of this paragraph) for any individual described in paragraph
(1)(A).''.
(b) Conforming Amendments.--
(1) Section 134(b)(3)(A), as amended by section 102, is
amended by inserting ``and paragraph (4)'' after
``subparagraphs (B) and (C)''.
(2) Section 3121(a)(18) is amended by striking ``or 129''
and inserting ``, 129, or 134(b)(4)''.
(3) Section 3306(b)(13) is amended by striking ``or 129''
and inserting ``, 129, or 134(b)(4)''.
(4) Section 3401(a)(18) is amended by striking ``or 129''
and inserting ``, 129, or 134(b)(4)''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2002.
(d) No Inference.--No inference may be drawn from the
amendments made by this section with respect to the tax
treatment of any amounts under the program described in
section 134(b)(4) of the Internal Revenue Code of 1986 (as
added by this section) for any taxable year beginning before
January 1, 2003.

[[Page S12552]]

SEC. 107. CLARIFICATION RELATING TO EXCEPTION FROM ADDITIONAL
TAX ON CERTAIN DISTRIBUTIONS FROM QUALIFIED
TUITION PROGRAMS, ETC. ON ACCOUNT OF ATTENDANCE
AT MILITARY ACADEMY.

(a) In General.--Subparagraph (B) of section 530(d)(4)
(relating to exceptions from additional tax for distributions
not used for educational purposes) is amended by striking
``or'' at the end of clause (iii), by redesignating clause
(iv) as clause (v), and by inserting after clause (iii) the
following new clause:
``(iv) made on account of the attendance of the designated
beneficiary at the United States Military Academy, the United
States Naval Academy, the United States Air Force Academy,
the United States Coast Guard Academy, or the United States
Merchant Marine Academy, to the extent that the amount of the
payment or distribution does not exceed the costs of advanced
education (as defined by section 2005(e)(3) of title 10,
United States Code, as in effect on the date of the enactment
of this section) attributable to such attendance, or''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2002.

SEC. 108. SUSPENSION OF TAX-EXEMPT STATUS OF TERRORIST
ORGANIZATIONS.

(a) In General.--Section 501 (relating to exemption from
tax on corporations, certain trusts, etc.) is amended by
redesignating subsection (p) as subsection (q) and by
inserting after subsection (o) the following new subsection:
``(p) Suspension of Tax-Exempt Status of Terrorist
Organizations.--
``(1) In general.--The exemption from tax under subsection
(a) with respect to any organization described in paragraph
(2), and the eligibility of any organization described in
paragraph (2) to apply for recognition of exemption under
subsection (a), shall be suspended during the period
described in paragraph (3).
``(2) Terrorist organizations.--An organization is
described in this paragraph if such organization is
designated or otherwise individually identified--
``(A) under section 212(a)(3)(B)(vi)(II) or 219 of the
Immigration and Nationality Act as a terrorist organization
or foreign terrorist organization,
``(B) in or pursuant to an Executive order which is related
to terrorism and issued under the authority of the
International Emergency Economic Powers Act or section 5 of
the United Nations Participation Act of 1945 for the purpose
of imposing on such organization an economic or other
sanction, or
``(C) in or pursuant to an Executive order issued under the
authority of any Federal law if--
``(i) the organization is designated or otherwise
individually identified in or pursuant to such Executive
order as supporting or engaging in terrorist activity (as
defined in section 212(a)(3)(B) of the Immigration and
Nationality Act) or supporting terrorism (as defined in
section 140(d)(2) of the Foreign Relations Authorization Act,
Fiscal Years 1988 and 1989); and
``(ii) such Executive order refers to this subsection.
``(3) Period of suspension.--With respect to any
organization described in paragraph (2), the period of
suspension--
``(A) begins on the later of--
``(i) the date of the first publication of a designation or
identification described in paragraph (2) with respect to
such organization, or
``(ii) the date of the enactment of this subsection, and
``(B) ends on the first date that all designations and
identifications described in paragraph (2) with respect to
such organization are rescinded pursuant to the law or
Executive order under which such designation or
identification was made.
``(4) Denial of deduction.--No deduction shall be allowed
under any provision of this title, including sections 170,
545(b)(2), 556(b)(2), 642(c), 2055, 2106(a)(2), and 2522,
with respect to any contribution to an organization described
in paragraph (2) during the period described in paragraph
(3).
``(5) Denial of administrative or judicial challenge of
suspension or denial of deduction.--Notwithstanding section
7428 or any other provision of law, no organization or other
person may challenge a suspension under paragraph (1), a
designation or identification described in paragraph (2), the
period of suspension described in paragraph (3), or a denial
of a deduction under paragraph (4) in any administrative or
judicial proceeding relating to the Federal tax liability of
such organization or other person.
``(6) Erroneous designation.--
``(A) In general.--If--
``(i) the tax exemption of any organization described in
paragraph (2) is suspended under paragraph (1),
``(ii) each designation and identification described in
paragraph (2) which has been made with respect to such
organization is determined to be erroneous pursuant to the
law or Executive order under which such designation or
identification was made, and
``(iii) the erroneous designations and identifications
result in an overpayment of income tax for any taxable year
by such organization,

credit or refund (with interest) with respect to such
overpayment shall be made.
``(B) Waiver of limitations.--If the credit or refund of
any overpayment of tax described in subparagraph (A)(iii) is
prevented at any time by the operation of any law or rule of
law (including res judicata), such credit or refund may
nevertheless be allowed or made if the claim therefor is
filed before the close of the 1-year period beginning on the
date of the last determination described in subparagraph
(A)(ii).
``(7) Notice of Suspensions.--If the tax exemption of any
organization is suspended under this subsection, the Internal
Revenue Service shall update the listings of tax-exempt
organizations and shall publish appropriate notice to
taxpayers of such suspension and of the fact that
contributions to such organization are not deductible during
the period of such suspension.''.
(b) Effective Date.--The amendments made by this section
shall apply to designations made before, on, or after the
date of the enactment of this Act.

SEC. 109. ABOVE-THE-LINE DEDUCTION FOR OVERNIGHT TRAVEL
EXPENSES OF NATIONAL GUARD AND RESERVE MEMBERS.

(a) Deduction Allowed.--Section 162 (relating to certain
trade or business expenses) is amended by redesignating
subsection (p) as subsection (q) and inserting after
subsection (o) the following new subsection:
``(p) Treatment of Expenses of Members of Reserve Component
of Armed Forces of the United States.--For purposes of
subsection (a)(2), in the case of an individual who performs
services as a member of a reserve component of the Armed
Forces of the United States at any time during the taxable
year, such individual shall be deemed to be away from home in
the pursuit of a trade or business for any period during
which such individual is away from home in connection with
such service.''.
(b) Deduction Allowed Whether or Not Taxpayer Elects To
Itemize.--Section 62(a)(2) (relating to certain trade and
business deductions of employees) is amended by adding at the
end the following new subparagraph:
``(E) Certain expenses of members of reserve components of
the armed forces of the united states.--The deductions
allowed by section 162 which consist of expenses, determined
at a rate not in excess of the rates for travel expenses
(including per diem in lieu of subsistence) authorized for
employees of agencies under subchapter I of chapter 57 of
title 5, United States Code, paid or incurred by the taxpayer
in connection with the performance of services by such
taxpayer as a member of a reserve component of the Armed
Forces of the United States for any period during which such
individual is more than 100 miles away from home in
connection with such services.''.
(c) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred in taxable years
beginning after December 31, 2002.

SEC. 110. TAX RELIEF AND ASSISTANCE FOR FAMILIES OF SPACE
SHUTTLE COLUMBIA HEROES.

(a) Income Tax Relief.--
(1) In general.--Subsection (d) of section 692 (relating to
income taxes of members of Armed Forces and victims of
certain terrorist attacks on death) is amended by adding at
the end the following new paragraph:
``(5) Relief with respect to astronauts.--The provisions of
this subsection shall apply to any astronaut whose death
occurs in the line of duty, except that paragraph (3)(B)
shall be applied by using the date of the death of the
astronaut rather than September 11, 2001.''.
(2) Conforming amendments.--
(A) Section 5(b)(1) is amended by inserting ``,
astronauts,'' after ``Forces''.
(B) Section 6013(f)(2)(B) is amended by inserting ``,
astronauts,'' after ``Forces''.
(3) Clerical amendments.--
(A) The heading of section 692 is amended by inserting ``,
ASTRONAUTS,'' after ``FORCES''.
(B) The item relating to section 692 in the table of
sections for part II of subchapter J of chapter 1 is amended
by inserting ``, astronauts,'' after ``Forces''.
(4) Effective date.--The amendments made by this subsection
shall apply with respect to any astronaut whose death occurs
after December 31, 2002.
(b) Death Benefit Relief.--
(1) In general.--Subsection (i) of section 101 (relating to
certain death benefits) is amended by adding at the end the
following new paragraph:
``(4) Relief with respect to astronauts.--The provisions of
this subsection shall apply to any astronaut whose death
occurs in the line of duty.''.
(2) Clerical amendment.--The heading for subsection (i) of
section 101 is amended by inserting ``or Astronauts'' after
``Victims''.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts paid after December 31, 2002, with
respect to deaths occurring after such date.
(c) Estate Tax Relief.--
(1) In general.--Section 2201(b) (defining qualified
decedent) is amended by striking ``and'' at the end of
paragraph (1)(B), by striking the period at the end of
paragraph (2) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(3) any astronaut whose death occurs in the line of
duty.''.
(2) Clerical amendments.--
(A) The heading of section 2201 is amended by inserting ``,
DEATHS OF ASTRONAUTS,'' after ``FORCES''.
(B) The item relating to section 2201 in the table of
sections for subchapter C of chapter 11 is amended by
inserting ``, deaths of astronauts,'' after ``Forces''.

[[Page S12553]]

(3) Effective date.--The amendments made by this subsection
shall apply to estates of decedents dying after December 31,
2002.

TITLE II--UNIFORM DEFINITION OF CHILD

SEC. 201. UNIFORM DEFINITION OF CHILD, ETC.

Section 152 is amended to read as follows:

``SEC. 152. DEPENDENT DEFINED.

``(a) In General.--For purposes of this subtitle, the term
`dependent' means--
``(1) a qualifying child, or
``(2) a qualifying relative.
``(b) Exceptions.--For purposes of this section--
``(1) Dependents ineligible.--If an individual is a
dependent of a taxpayer for any taxable year of such taxpayer
beginning in a calendar year, such individual shall be
treated as having no dependents for any taxable year of such
individual beginning in such calendar year.
``(2) Married dependents.--An individual shall not be
treated as a dependent of a taxpayer under subsection (a) if
such individual has made a joint return with the individual's
spouse under section 6013 for the taxable year beginning in
the calendar year in which the taxable year of the taxpayer
begins.
``(3) Citizens or nationals of other countries.--
``(A) In general.--The term `dependent' does not include an
individual who is not a citizen or national of the United
States unless such individual is a resident of the United
States or a country contiguous to the United States.
``(B) Exception for adopted child.--Subparagraph (A) shall
not exclude any child of a taxpayer (within the meaning of
subsection (f)(1)(B)) from the definition of `dependent' if--
``(i) for the taxable year of the taxpayer, the child has
the same principal place of abode as the taxpayer and is a
member of the taxpayer's household, and
``(ii) the taxpayer is a citizen or national of the United
States.
``(c) Qualifying Child.--For purposes of this section--
``(1) In general.--The term `qualifying child' means, with
respect to any taxpayer for any taxable year, an individual--
``(A) who bears a relationship to the taxpayer described in
paragraph (2),
``(B) who has the same principal place of abode as the
taxpayer for more than one-half of such taxable year,
``(C) who meets the age requirements of paragraph (3), and
``(D) who has not provided over one-half of such
individual's own support for the calendar year in which the
taxable year of the taxpayer begins.
``(2) Relationship.--For purposes of paragraph (1)(A), an
individual bears a relationship to the taxpayer described in
this paragraph if such individual is--
``(A) a child of the taxpayer or a descendant of such a
child, or
``(B) a brother, sister, stepbrother, or stepsister of the
taxpayer or a descendant of any such relative.
``(3) Age requirements.--
``(A) In general.--For purposes of paragraph (1)(C), an
individual meets the requirements of this paragraph if such
individual--
``(i) has not attained the age of 19 as of the close of the
calendar year in which the taxable year of the taxpayer
begins, or
``(ii) is a student who has not attained the age of 24 as
of the close of such calendar year.
``(B) Special rule for disabled.--In the case of an
individual who is permanently and totally disabled (as
defined in section 22(e)(3)) at any time during such calendar
year, the requirements of subparagraph (A) shall be treated
as met with respect to such individual.
``(4) Special rule relating to 2 or more claiming
qualifying child.--
``(A) In general.--Except as provided in subparagraph (B)
and subsection (e), if (but for this paragraph) an individual
may be and is claimed as a qualifying child by 2 or more
taxpayers for a taxable year beginning in the same calendar
year, such individual shall be treated as the qualifying
child of the taxpayer who is--
``(i) a parent of the individual, or
``(ii) if clause (i) does not apply, the taxpayer with the
highest adjusted gross income for such taxable year.
``(B) More than 1 parent claiming qualifying child.--If the
parents claiming any qualifying child do not file a joint
return together, such child shall be treated as the
qualifying child of--
``(i) the parent with whom the child resided for the
longest period of time during the taxable year, or
``(ii) if the child resides with both parents for the same
amount of time during such taxable year, the parent with the
highest adjusted gross income.
``(d) Qualifying Relative.--For purposes of this section--
``(1) In general.--The term `qualifying relative' means,
with respect to any taxpayer for any taxable year, an
individual--
``(A) who bears a relationship to the taxpayer described in
paragraph (2),
``(B) whose gross income for the calendar year in which
such taxable year begins is less than the exemption amount
(as defined in section 151(d)),
``(C) with respect to whom the taxpayer provides over one-
half of the individual's support for the calendar year in
which such taxable year begins, and
``(D) who is not a qualifying child of such taxpayer or of
any other taxpayer for any taxable year beginning in the
calendar year in which such taxable year begins.
``(2) Relationship.--For purposes of paragraph (1)(A), an
individual bears a relationship to the taxpayer described in
this paragraph if the individual is any of the following with
respect to the taxpayer:
``(A) A child or a descendant of a child.
``(B) A brother, sister, stepbrother, or stepsister.
``(C) The father or mother, or an ancestor of either.
``(D) A stepfather or stepmother.
``(E) A son or daughter of a brother or sister of the
taxpayer.
``(F) A brother or sister of the father or mother of the
taxpayer.
``(G) A son-in-law, daughter-in-law, father-in-law, mother-
in-law, brother-in-law, or sister-in-law.
``(H) An individual (other than an individual who at any
time during the taxable year was the spouse, determined
without regard to section 7703, of the taxpayer) who, for the
taxable year of the taxpayer, has the same principal place of
abode as the taxpayer and is a member of the taxpayer's
household.
``(3) Special rule relating to multiple support
agreements.--For purposes of paragraph (1)(C), over one-half
of the support of an individual for a calendar year shall be
treated as received from the taxpayer if--
``(A) no one person contributed over one-half of such
support,
``(B) over one-half of such support was received from 2 or
more persons each of whom, but for the fact that any such
person alone did not contribute over one-half of such
support, would have been entitled to claim such individual as
a dependent for a taxable year beginning in such calendar
year,
``(C) the taxpayer contributed over 10 percent of such
support, and
``(D) each person described in subparagraph (B) (other than
the taxpayer) who contributed over 10 percent of such support
files a written declaration (in such manner and form as the
Secretary may by regulations prescribe) that such person will
not claim such individual as a dependent for any taxable year
beginning in such calendar year.
``(4) Special rule relating to income of handicapped
dependents.--
``(A) In general.--For purposes of paragraph (1)(B), the
gross income of an individual who is permanently and totally
disabled (as defined in section 22(e)(3)) at any time during
the taxable year shall not include income attributable to
services performed by the individual at a sheltered workshop
if--
``(i) the availability of medical care at such workshop is
the principal reason for the individual's presence there, and
``(ii) the income arises solely from activities at such
workshop which are incident to such medical care.
``(B) Sheltered workshop defined.--For purposes of
subparagraph (A), the term `sheltered workshop' means a
school--
``(i) which provides special instruction or training
designed to alleviate the disability of the individual, and
``(ii) which is operated by an organization described in
section 501(c)(3) and exempt from tax under section 501(a),
or by a State, a possession of the United States, any
political subdivision of any of the foregoing, the United
States, or the District of Columbia.
``(5) Special rules for support.--For purposes of this
subsection--
``(A) payments to a spouse which are includible in the
gross income of such spouse under section 71 or 682 shall not
be treated as a payment by the payor spouse for the support
of any dependent, and
``(B) in the case of the remarriage of a parent, support of
a child received from the parent's spouse shall be treated as
received from the parent.
``(e) Special Rule for Divorced Parents.--
``(1) In general.--Notwithstanding subsection (c)(4) or
(d)(1)(C), if--
``(A) a child receives over one-half of the child's support
during the calendar year from the child's parents--
``(i) who are divorced or legally separated under a decree
of divorce or separate maintenance,
``(ii) who are separated under a written separation
agreement, or
``(iii) who live apart at all times during the last 6
months of the calendar year, and
``(B) such child is in the custody of 1 or both of the
child's parents for more than one-half of the calendar year,
such child shall be treated as being the qualifying child or
qualifying relative of the noncustodial parent for a calendar
year if the requirements described in paragraph (2) are met.
``(2) Requirements.--For purposes of paragraph (1), the
requirements described in this paragraph are met if--
``(A) a decree of divorce or separate maintenance or
written separation agreement between the parents applicable
to the taxable year beginning in such calendar year provides
that--
``(i) the noncustodial parent shall be entitled to any
deduction allowable under section 151 for such child, or
``(ii) the custodial parent will sign a written declaration
(in such manner and form as the Secretary may prescribe) that
such parent will not claim such child as a dependent for such
taxable year, or

[[Page S12554]]

``(B) in the case of such an agreement executed before
January 1, 1985, the noncustodial parent provides at least
$600 for the support of such child during such calendar year.

For purposes of subparagraph (B), amounts expended for the
support of a child or children shall be treated as received
from the noncustodial parent to the extent that such parent
provided amounts for such support.
``(3) Custodial parent and noncustodial parent.--For
purposes of this subsection--
``(A) Custodial parent.--The term `custodial parent' means
the parent with whom a child shared the same principal place
of abode for the greater portion of the calendar year.
``(B) Noncustodial parent.--The term `noncustodial parent'
means the parent who is not the custodial parent.
``(4) Exception for multiple-support agreements.--This
subsection shall not apply in any case where over one-half of
the support of the child is treated as having been received
from a taxpayer under the provision of subsection (d)(3).
``(f) Other Definitions and Rules.--For purposes of this
section--
``(1) Child defined.--
``(A) In general.--The term `child' means an individual who
is--
``(i) a son, daughter, stepson, or stepdaughter of the
taxpayer, or
``(ii) an eligible foster child of the taxpayer.
``(B) Adopted child.--In determining whether any of the
relationships specified in subparagraph (A)(i) or paragraph
(4) exists, a legally adopted individual of the taxpayer, or
an individual who is placed with the taxpayer by an
authorized placement agency for adoption by the taxpayer,
shall be treated as a child of such individual by blood.
``(C) Eligible foster child.--For purposes of subparagraph
(A)(ii), the term `eligible foster child' means an individual
who is placed with the taxpayer by an authorized placement
agency or by judgment, decree, or other order of any court of
competent jurisdiction.
``(2) Student defined.--The term `student' means an
individual who during each of 5 calendar months during the
calendar year in which the taxable year of the taxpayer
begins--
``(A) is a full-time student at an educational organization
described in section 170(b)(1)(A)(ii), or
``(B) is pursuing a full-time course of institutional on-
farm training under the supervision of an accredited agent of
an educational organization described in section
170(b)(1)(A)(ii) or of a State or political subdivision of a
State.
``(3) Determination of household status.--An individual
shall not be treated as a member of the taxpayer's household
if at any time during the taxable year of the taxpayer the
relationship between such individual and the taxpayer is in
violation of local law.
``(4) Brother and sister.--The terms `brother' and `sister'
include a brother or sister by the half blood.
``(5) Special support test in case of students.--For
purposes of subsections (c)(1)(D) and (d)(1)(C), in the case
of an individual who is--
``(A) a child of the taxpayer, and
``(B) a student,

amounts received as scholarships for study at an educational
organization described in section 170(b)(1)(A)(ii) shall not
be taken into account.
``(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 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 subsection
(c)(1)(B) with respect to a 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--
``(i) the deduction under section 151(c),
``(ii) the credit under section 24 (relating to child tax
credit),
``(iii) whether an individual is a surviving spouse or a
head of a household (as such terms are defined in section 2),
and
``(iv) the earned income credit under section 32.
``(C) Comparable treatment of certain qualifying
relatives.--For purposes of this section, 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) a
qualifying relative of the taxpayer for the portion of the
taxable year before the date of the kidnapping,
shall be treated as a qualifying relative of the taxpayer for
all taxable years ending during the period that the child 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).
``(7) Cross references.--

``For provision treating child as dependent of both parents for
purposes of certain provisions, see sections 105(b), 132(h)(2)(B), and
213(d)(5).''.

SEC. 202. MODIFICATIONS OF DEFINITION OF HEAD OF HOUSEHOLD.

(a) Head of Household.--Clause (i) of section 2(b)(1)(A) is
amended to read as follows:
``(i) a qualifying child of the individual (as defined in
section 152(c), determined without regard to section 152(e)),
but not if such child--

``(I) is married at the close of the taxpayer's taxable
year, and
``(II) is not a dependent of such individual by reason of
section 152(b)(2) or 152(b)(3), or both, or''.

(b) Conforming Amendments.--
(1) Section 2(b)(2) is amended by striking subparagraph (A)
and by redesignating subparagraphs (B), (C), and (D) as
subparagraphs (A), (B), and (C), respectively.
(2) Clauses (i) and (ii) of section 2(b)(3)(B) are amended
to read as follows:
``(i) subparagraph (H) of section 152(d)(2), or
``(ii) paragraph (3) of section 152(d).''.

SEC. 203. MODIFICATIONS OF DEPENDENT CARE CREDIT.

(a) In General.--Section 21(a)(1) is amended by striking
``In the case of an individual who maintains a household
which includes as a member one or more qualifying individuals
(as defined in subsection (b)(1))'' and inserting ``In the
case of an individual for which there are 1 or more
qualifying individuals (as defined in subsection (b)(1)) with
respect to such individual''.
(b) Qualifying Individual.--Paragraph (1) of section 21(b)
is amended to read as follows:
``(1) Qualifying individual.--The term `qualifying
individual' means--
``(A) a dependent of the taxpayer (as defined in section
152(a)(1)) who has not attained age 13,
``(B) a dependent of the taxpayer who is physically or
mentally incapable of caring for himself or herself and who
has the same principal place of abode as the taxpayer for
more than one-half of such taxable year, or
``(C) the spouse of the taxpayer, if the spouse is
physically or mentally incapable of caring for himself or
herself and who has the same principal place of abode as the
taxpayer for more than one-half of such taxable year.''.
(c) Conforming Amendment.--Paragraph (1) of section 21(e)
is amended to read as follows:
``(1) Place of abode.--An individual shall not be treated
as having the same principal place of abode of the taxpayer
if at any time during the taxable year of the taxpayer the
relationship between the individual and the taxpayer is in
violation of local law.''.

SEC. 204. MODIFICATIONS OF CHILD TAX CREDIT.

(a) In General.--Paragraph (1) of section 24(c) is amended
to read as follows:
``(1) In general.--The term `qualifying child' means a
qualifying child of the taxpayer (as defined in section
152(c)) who has not attained age 17.''.
(b) Conforming Amendment.--Section 24(c)(2) is amended by
striking ``the first sentence of section 152(b)(3)'' and
inserting ``subparagraph (A) of section 152(b)(3)''.

SEC. 205. MODIFICATIONS OF EARNED INCOME CREDIT.

(a) Qualifying Child.--Paragraph (3) of section 32(c) is
amended to read as follows:
``(3) Qualifying child.--
``(A) In general.--The term `qualifying child' means a
qualifying child of the taxpayer (as defined in section
152(c), determined without regard to paragraph (1)(D) thereof
and section 152(e)).
``(B) Married individual.--The term `qualifying child'
shall not include an individual who is married as of the
close of the taxpayer's taxable year unless the taxpayer is
entitled to a deduction under section 151 for such taxable
year with respect to such individual (or would be so entitled
but for section 152(e)).
``(C) Place of abode.--For purposes of subparagraph (A),
the requirements of section 152(c)(1)(B) shall be met only if
the principal place of abode is in the United States.
``(D) Identification requirements.--
``(i) In general.--A qualifying child shall not be taken
into account under subsection (b) unless the taxpayer
includes the name, age, and TIN of the qualifying child on
the return of tax for the taxable year.
``(ii) Other methods.--The Secretary may prescribe other
methods for providing the information described in clause
(i).''.
(b) Conforming Amendments.--
(1) Section 32(c)(1) is amended by striking subparagraph
(C) and by redesignating subparagraphs (D), (E), (F), and (G)
as subparagraphs (C), (D), (E), and (F), respectively.
(2) Section 32(c)(4) is amended by striking ``(3)(E)'' and
inserting ``(3)(C)''.
(3) Section 32(m) is amended by striking ``subsections
(c)(1)(F)'' and inserting ``subsections (c)(1)(E)''.

SEC. 206. MODIFICATIONS OF DEDUCTION FOR PERSONAL EXEMPTION
FOR DEPENDENTS.

Subsection (c) of section 151 is amended to read as
follows:
``(c) Additional Exemption for Dependents.--An exemption of
the exemption amount for each individual who is a dependent
(as defined in section 152) of the taxpayer for the taxable
year.''.

[[Page S12555]]

SEC. 207. TECHNICAL AND CONFORMING AMENDMENTS.

(1) Section 2(a)(1)(B)(i) is amended by inserting ``,
determined without regard to subsections (b)(1), (b)(2), and
(d)(1)(B) thereof'' after ``section 152''.
(2) Section 21(e)(5) is amended--
(A) by striking ``paragraph (2) or (4) of'' in subparagraph
(A), and
(B) by striking ``within the meaning of section 152(e)(1)''
and inserting ``as defined in section 152(e)(3)(A)''.
(3) Section 21(e)(6)(B) is amended by striking ``section
151(c)(3)'' and inserting ``section 152(f)(1)''.
(4) Section 25B(c)(2)(B) is amended by striking
``151(c)(4)'' and inserting ``152(f)(2)''.
(5)(A) Subparagraphs (A) and (B) of section 51(i)(1) are
each amended by striking ``paragraphs (1) through (8) of
section 152(a)'' both places it appears and inserting
``subparagraphs (A) through (G) of section 152(d)(2)''.
(B) Section 51(i)(1)(C) is amended by striking
``152(a)(9)'' and inserting ``152(d)(2)(H)''.
(6) Section 72(t)(2)(D)(i)(III) is amended by inserting ``,
determined without regard to subsections (b)(1), (b)(2), and
(d)(1)(B) thereof'' after ``section 152''.
(7) Section 72(t)(7)(A)(iii) is amended by striking
``151(c)(3)'' and inserting ``152(f)(1)''.
(8) Section 42(i)(3)(D)(ii)(I) is amended by inserting ``,
determined without regard to subsections (b)(1), (b)(2), and
(d)(1)(B) thereof'' after ``section 152''.
(9) Subsections (b) and (c)(1) of section 105 are amended
by inserting ``, determined without regard to subsections
(b)(1), (b)(2), and (d)(1)(B) thereof'' after ``section
152''.
(10) Section 120(d)(4) is amended by inserting
``(determined without regard to subsections (b)(1), (b)(2),
and (d)(1)(B) thereof)'' after ``section 152''.
(11) Section 125(e)(1)(D) is amended by inserting ``,
determined without regard to subsections (b)(1), (b)(2), and
(d)(1)(B) thereof'' after ``section 152''.
(12) Section 129(c)(2) is amended by striking ``151(c)(3)''
and inserting ``152(f)(1)''.
(13) The first sentence of section 132(h)(2)(B) is amended
by striking ``151(c)(3)'' and inserting ``152(f)(1)''.
(14) Section 153 is amended by striking paragraph (1) and
by redesignating paragraphs (2), (3), and (4) as paragraphs
(1), (2), and (3), respectively.
(15) Section 170(g)(1) is amended by inserting
``(determined without regard to subsections (b)(1), (b)(2),
and (d)(1)(B) thereof)'' after ``section 152''.
(16) Section 170(g)(3) is amended by striking ``paragraphs
(1) through (8) of section 152(a)'' and inserting
``subparagraphs (A) through (G) of section 152(d)(2)''.
(17) Section 213(a) is amended by inserting ``, determined
without regard to subsections (b)(1), (b)(2), and (d)(1)(B)
thereof'' after ``section 152''.
(18) The second sentence of section 213(d)(11) is amended
by striking ``paragraphs (1) through (8) of section 152(a)''
and inserting ``subparagraphs (A) through (G) of section
152(d)(2)''.
(19) Section 220(d)(2)(A) is amended by inserting ``,
determined without regard to subsections (b)(1), (b)(2), and
(d)(1)(B) thereof'' after ``section 152''.
(20) Section 221(d)(4) is amended by inserting
``(determined without regard to subsections (b)(1), (b)(2),
and (d)(1)(B) thereof)'' after ``section 152''.
(21) Section 529(e)(2)(B) is amended by striking
``paragraphs (1) through (8) of section 152(a)'' and
inserting ``subparagraphs (A) through (G) of section
152(d)(2)''.
(22) Section 2032A(c)(7)(D) is amended by striking
``section 151(c)(4)'' and inserting ``section 152(f)(2)''.
(23) Section 2057(d)(2)(B) is amended by inserting ``,
determined without regard to subsections (b)(1), (b)(2), and
(d)(1)(B) thereof'' after ``section 152''.
(24) Section 7701(a)(17) is amended by striking
``152(b)(4), 682,'' and inserting ``682''.
(25) Section 7702B(f)(2)(C)(iii) is amended by striking
``paragraphs (1) through (8) of section 152(a)'' and
inserting ``subparagraphs (A) through (G) of section
152(d)(2)''.
(26) Section 7703(b)(1) is amended--
(A) by striking ``151(c)(3)'' and inserting ``152(f)(1)'',
and
(B) by striking ``paragraph (2) or (4) of''.

SEC. 208. EFFECTIVE DATE.

The amendments made by this title shall apply to taxable
years beginning after December 31, 2003.

TITLE III--CHILD TAX CREDIT

SEC. 301. ACCELERATION OF INCREASE IN REFUNDABILITY OF THE
CHILD TAX CREDIT.

(a) Acceleration of Refundability.--
(1) In general.--Section 24(d)(1)(B)(i) (relating to
portion of credit refundable) is amended by striking ``(10
percent in the case of taxable years beginning before January
1, 2005)''.
(2) Advance payment.--Subsection (b) of section 6429
(relating to advance payment of portion of increased child
credit for 2003) is amended by striking ``and'' at the end of
paragraph (2), by striking the period at the end of paragraph
(3) and inserting ``, and'', and by adding at the end the
following new paragraph:
``(4) section 24(d)(1)(B)(i) applied without regard to the
first parenthetical therein.''.
(3) Earned income includes combat pay.--Section 24(d)(1) is
amended by adding at the end the following new sentence:
``For purposes of subparagraph (B), any amount excluded from
gross income by reason of section 112 shall be treated as
earned income which is taken into account in computing
taxable income for the taxable year.''.
(b) Effective Dates.--
(1) Subsections (a)(1) and (a)(3).--The amendments made by
subsections (a)(1) and (a)(3) shall apply to taxable years
beginning after December 31, 2002.
(2) Subsection (a)(2).--The amendments made by subsection
(a)(2) shall take effect as if included in the amendments
made by section 101(b) of the Jobs and Growth Tax Relief
Reconciliation Act of 2003.

SEC. 302. REDUCTION IN MARRIAGE PENALTY IN CHILD TAX CREDIT.

(a) In General.--Section 24(b)(2) (defining threshold
amount) is amended--
(1) by inserting ``($115,000 for taxable years beginning in
2008 or 2009, and $150,000 for taxable years beginning in
2010)'' after ``$110,000'', and
(2) by striking ``$55,000'' in subparagraph (C) and
inserting ``\1/2\ of the amount in effect under subparagraph
(A)''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2002.

SEC. 303. APPLICATION OF EGTRRA SUNSET TO THIS SECTION.

Each amendment made by this title shall be subject to title
IX of the Economic Growth and Tax Relief Reconciliation Act
of 2001 to the same extent and in the same manner as the
provision of such Act to which such amendment relates.

TITLE IV--OTHER PROVISIONS

SEC. 401. EXTENSION OF INTERNAL REVENUE SERVICE USER FEES.

(a) In General.--Chapter 77 (relating to miscellaneous
provisions) is amended by adding at the end the following new
section:

``SEC. 7528. INTERNAL REVENUE SERVICE USER FEES.

``(a) General Rule.--The Secretary shall establish a
program requiring the payment of user fees for--
``(1) requests to the Internal Revenue Service for ruling
letters, opinion letters, and determination letters, and
``(2) other similar requests.
``(b) Program Criteria.--
``(1) In general.--The fees charged under the program
required by subsection (a)--
``(A) shall vary according to categories (or subcategories)
established by the Secretary,
``(B) shall be determined after taking into account the
average time for (and difficulty of) complying with requests
in each category (and subcategory), and
``(C) shall be payable in advance.
``(2) Exemptions, etc.--
``(A) In general.--The Secretary shall provide for such
exemptions (and reduced fees) under such program as the
Secretary determines to be appropriate.
``(B) Exemption for certain requests regarding pension
plans.--The Secretary shall not require payment of user fees
under such program for requests for determination letters
with respect to the qualified status of a pension benefit
plan maintained solely by 1 or more eligible employers or any
trust which is part of the plan. The preceding sentence shall
not apply to any request--
``(i) made after the later of--

``(I) the fifth plan year the pension benefit plan is in
existence, or
``(II) the end of any remedial amendment period with
respect to the plan beginning within the first 5 plan years,
or

``(ii) made by the sponsor of any prototype or similar plan
which the sponsor intends to market to participating
employers.
``(C) Definitions and special rules.--For purposes of
subparagraph (B)--
``(i) Pension benefit plan.--The term `pension benefit
plan' means a pension, profit-sharing, stock bonus, annuity,
or employee stock ownership plan.
``(ii) Eligible employer.--The term `eligible employer'
means an eligible employer (as defined in section
408(p)(2)(C)(i)(I)) which has at least 1 employee who is not
a highly compensated employee (as defined in section 414(q))
and is participating in the plan. The determination of
whether an employer is an eligible employer under
subparagraph (B) shall be made as of the date of the request
described in such subparagraph.
``(iii) Determination of average fees charged.--For
purposes of any determination of average fees charged, any
request to which subparagraph (B) applies shall not be taken
into account.
``(3) Average fee requirement.--The average fee charged
under the program required by subsection (a) shall not be
less than the amount determined under the following table:

Average
``Category                                                          fee
Employee plan ruling and opinion............................$250 ....

Exempt organization ruling..................................$350 ....

Employee plan determination.................................$300 ....

Exempt organization determination...........................$275 ....

Chief counsel ruling........................................$200.....

``(c) Termination.--No fee shall be imposed under this
section with respect to requests made after September 30,
2013.''.
(b) Conforming Amendments.--
(1) The table of sections for chapter 77 is amended by
adding at the end the following new item:

``Sec. 7528. Internal Revenue Service user fees.''.
(2) Section 10511 of the Revenue Act of 1987 is repealed.

[[Page S12556]]

(3) Section 620 of the Economic Growth and Tax Relief
Reconciliation Act of 2001 is repealed.
(c) Limitations.--Notwithstanding any other provision of
law, any fees collected pursuant to section 7528 of the
Internal Revenue Code of 1986, as added by subsection (a),
shall not be expended by the Internal Revenue Service unless
provided by an appropriations Act.
(d) Effective Date.--The amendments made by this section
shall apply to requests made after the date of the enactment
of this Act.

SEC. 402. PARTIAL PAYMENT OF TAX LIABILITY IN INSTALLMENT
AGREEMENTS.

(a) In General.--
(1) Section 6159(a) (relating to authorization of
agreements) is amended--
(A) by striking ``satisfy liability for payment of'' and
inserting ``make payment on'', and
(B) by inserting ``full or partial'' after ``facilitate''.
(2) Section 6159(c) (relating to Secretary required to
enter into installment agreements in certain cases) is
amended in the matter preceding paragraph (1) by inserting
``full'' before ``payment''.
(b) Requirement To Review Partial Payment Agreements Every
Two Years.--Section 6159 is amended by redesignating
subsections (d) and (e) as subsections (e) and (f),
respectively, and inserting after subsection (c) the
following new subsection:
``(d) Secretary Required To Review Installment Agreements
for Partial Collection Every Two Years.--In the case of an
agreement entered into by the Secretary under subsection (a)
for partial collection of a tax liability, the Secretary
shall review the agreement at least once every 2 years.''.
(c) Effective Date.--The amendments made by this section
shall apply to agreements entered into on or after the date
of the enactment of this Act.

SEC. 403. REVISION OF TAX RULES ON EXPATRIATION.

(a) In General.--Subpart A of part II of subchapter N of
chapter 1 is amended by inserting after section 877 the
following new section:

``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.

``(a) General Rules.--For purposes of this subtitle--
``(1) Mark to market.--Except as provided in subsections
(d) and (f), all property of a covered expatriate to whom
this section applies shall be treated as sold on the day
before the expatriation date for its fair market value.
``(2) Recognition of gain or loss.--In the case of any sale
under paragraph (1)--
``(A) notwithstanding any other provision of this title,
any gain arising from such sale shall be taken into account
for the taxable year of the sale, and
``(B) any loss arising from such sale shall be taken into
account for the taxable year of the sale to the extent
otherwise provided by this title, except that section 1091
shall not apply to any such loss.

Proper adjustment shall be made in the amount of any gain or
loss subsequently realized for gain or loss taken into
account under the preceding sentence.
``(3) Exclusion for certain gain.--
``(A) In general.--The amount which, but for this
paragraph, would be includible in the gross income of any
individual by reason of this section shall be reduced (but
not below zero) by $600,000. For purposes of this paragraph,
allocable expatriation gain taken into account under
subsection (f)(2) shall be treated in the same manner as an
amount required to be includible in gross income.
``(B) Cost-of-living adjustment.--
``(i) In general.--In the case of an expatriation date
occurring in any calendar year after 2003, the $600,000
amount under subparagraph (A) shall 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, determined by
substituting `calendar year 2002' for `calendar year 1992' in
subparagraph (B) thereof.

``(ii) Rounding rules.--If any amount after adjustment
under clause (i) is not a multiple of $1,000, such amount
shall be rounded to the next lower multiple of $1,000.
``(4) Election to continue to be taxed as united states
citizen.--
``(A) In general.--If a covered expatriate elects the
application of this paragraph--
``(i) this section (other than this paragraph and
subsection (i)) shall not apply to the expatriate, but
``(ii) in the case of property to which this section would
apply but for such election, the expatriate shall be subject
to tax under this title in the same manner as if the
individual were a United States citizen.
``(B) Requirements.--Subparagraph (A) shall not apply to an
individual unless the individual--
``(i) provides security for payment of tax in such form and
manner, and in such amount, as the Secretary may require,
``(ii) consents to the waiver of any right of the
individual under any treaty of the United States which would
preclude assessment or collection of any tax which may be
imposed by reason of this paragraph, and
``(iii) complies with such other requirements as the
Secretary may prescribe.
``(C) Election.--An election under subparagraph (A) shall
apply to all property to which this section would apply but
for the election and, once made, shall be irrevocable. Such
election shall also apply to property the basis of which is
determined in whole or in part by reference to the property
with respect to which the election was made.
``(b) Election To Defer Tax.--
``(1) In general.--If the taxpayer elects the application
of this subsection with respect to any property treated as
sold by reason of subsection (a), the payment of the
additional tax attributable to such property shall be
postponed until the due date of the return for the taxable
year in which such property is disposed of (or, in the case
of property disposed of in a transaction in which gain is not
recognized in whole or in part, until such other date as the
Secretary may prescribe).
``(2) Determination of tax with respect to property.--For
purposes of paragraph (1), the additional tax attributable to
any property is an amount which bears the same ratio to the
additional tax imposed by this chapter for the taxable year
solely by reason of subsection (a) as the gain taken into
account under subsection (a) with respect to such property
bears to the total gain taken into account under subsection
(a) with respect to all property to which subsection (a)
applies.
``(3) Termination of postponement.--No tax may be postponed
under this subsection later than the due date for the return
of tax imposed by this chapter for the taxable year which
includes the date of death of the expatriate (or, if earlier,
the time that the security provided with respect to the
property fails to meet the requirements of paragraph (4),
unless the taxpayer corrects such failure within the time
specified by the Secretary).
``(4) Security.--
``(A) In general.--No election may be made under paragraph
(1) with respect to any property unless adequate security is
provided to the Secretary with respect to such property.
``(B) Adequate security.--For purposes of subparagraph (A),
security with respect to any property shall be treated as
adequate security if--
``(i) it is a bond in an amount equal to the deferred tax
amount under paragraph (2) for the property, or
``(ii) the taxpayer otherwise establishes to the
satisfaction of the Secretary that the security is adequate.
``(5) Waiver of certain rights.--No election may be made
under paragraph (1) unless the taxpayer consents to the
waiver of any right under any treaty of the United States
which would preclude assessment or collection of any tax
imposed by reason of this section.
``(6) Elections.--An election under paragraph (1) shall
only apply to property described in the election and, once
made, is irrevocable. An election may be made under paragraph
(1) with respect to an interest in a trust with respect to
which gain is required to be recognized under subsection
(f)(1).
``(7) Interest.--For purposes of section 6601--
``(A) the last date for the payment of tax shall be
determined without regard to the election under this
subsection, and
``(B) section 6621(a)(2) shall be applied by substituting
`5 percentage points' for `3 percentage points' in
subparagraph (B) thereof.
``(c) Covered Expatriate.--For purposes of this section--
``(1) In general.--Except as provided in paragraph (2), the
term `covered expatriate' means an expatriate.
``(2) Exceptions.--An individual shall not be treated as a
covered expatriate if--
``(A) the individual--
``(i) became at birth a citizen of the United States and a
citizen of another country and, as of the expatriation date,
continues to be a citizen of, and is taxed as a resident of,
such other country, and
``(ii) has not been a resident of the United States (as
defined in section 7701(b)(1)(A)(ii)) during the 5 taxable
years ending with the taxable year during which the
expatriation date occurs, or
``(B)(i) the individual's relinquishment of United States
citizenship occurs before such individual attains age 18\1/
2\, and
``(ii) the individual has been a resident of the United
States (as so defined) for not more than 5 taxable years
before the date of relinquishment.
``(d) Exempt Property; Special Rules for Pension Plans.--
``(1) Exempt property.--This section shall not apply to the
following:
``(A) United states real property interests.--Any United
States real property interest (as defined in section
897(c)(1)), other than stock of a United States real property
holding corporation which does not, on the day before the
expatriation date, meet the requirements of section
897(c)(2).
``(B) Specified property.--Any property or interest in
property not described in subparagraph (A) which the
Secretary specifies in regulations.
``(2) Special rules for certain retirement plans.--
``(A) In general.--If a covered expatriate holds on the day
before the expatriation date any interest in a retirement
plan to which this paragraph applies--
``(i) such interest shall not be treated as sold for
purposes of subsection (a)(1), but
``(ii) an amount equal to the present value of the
expatriate's nonforfeitable accrued benefit shall be treated
as having been received by such individual on such date as a
distribution under the plan.

[[Page S12557]]

``(B) Treatment of subsequent distributions.--In the case
of any distribution on or after the expatriation date to or
on behalf of the covered expatriate from a plan from which
the expatriate was treated as receiving a distribution under
subparagraph (A), the amount otherwise includible in gross
income by reason of the subsequent distribution shall be
reduced by the excess of the amount includible in gross
income under subparagraph (A) over any portion of such amount
to which this subparagraph previously applied.
``(C) Treatment of subsequent distributions by plan.--For
purposes of this title, a retirement plan to which this
paragraph applies, and any person acting on the plan's
behalf, shall treat any subsequent distribution described in
subparagraph (B) in the same manner as such distribution
would be treated without regard to this paragraph.
``(D) Applicable plans.--This paragraph shall apply to--
``(i) any qualified retirement plan (as defined in section
4974(c)),
``(ii) an eligible deferred compensation plan (as defined
in section 457(b)) of an eligible employer described in
section 457(e)(1)(A), and
``(iii) to the extent provided in regulations, any foreign
pension plan or similar retirement arrangements or programs.
``(e) Definitions.--For purposes of this section--
``(1) Expatriate.--The term `expatriate' means--
``(A) any United States citizen who relinquishes
citizenship, and
``(B) any long-term resident of the United States who--
``(i) ceases to be a lawful permanent resident of the
United States (within the meaning of section 7701(b)(6)), or
``(ii) commences to be treated as a resident of a foreign
country under the provisions of a tax treaty between the
United States and the foreign country and who does not waive
the benefits of such treaty applicable to residents of the
foreign country.
``(2) Expatriation date.--The term `expatriation date'
means--
``(A) the date an individual relinquishes United States
citizenship, or
``(B) in the case of a long-term resident of the United
States, the date of the event described in clause (i) or (ii)
of paragraph (1)(B).
``(3) Relinquishment of citizenship.--A citizen shall be
treated as relinquishing United States citizenship on the
earliest of--
``(A) the date the individual renounces such individual's
United States nationality before a diplomatic or consular
officer of the United States pursuant to paragraph (5) of
section 349(a) of the Immigration and Nationality Act (8
U.S.C. 1481(a)(5)),
``(B) the date the individual furnishes to the United
States Department of State a signed statement of voluntary
relinquishment of United States nationality confirming the
performance of an act of expatriation specified in paragraph
(1), (2), (3), or (4) of section 349(a) of the Immigration
and Nationality Act (8 U.S.C. 1481(a)(1)-(4)),
``(C) the date the United States Department of State issues
to the individual a certificate of loss of nationality, or
``(D) the date a court of the United States cancels a
naturalized citizen's certificate of naturalization.

Subparagraph (A) or (B) shall not apply to any individual
unless the renunciation or voluntary relinquishment is
subsequently approved by the issuance to the individual of a
certificate of loss of nationality by the United States
Department of State.
``(4) Long-term resident.--The term `long-term resident'
has the meaning given to such term by section 877(e)(2).
``(f) Special Rules Applicable to Beneficiaries' Interests
in Trust.--
``(1) In general.--Except as provided in paragraph (2), if
an individual is determined under paragraph (3) to hold an
interest in a trust on the day before the expatriation date--
``(A) the individual shall not be treated as having sold
such interest,
``(B) such interest shall be treated as a separate share in
the trust, and
``(C)(i) such separate share shall be treated as a separate
trust consisting of the assets allocable to such share,
``(ii) the separate trust shall be treated as having sold
its assets on the day before the expatriation date for their
fair market value and as having distributed all of its assets
to the individual as of such time, and
``(iii) the individual shall be treated as having
recontributed the assets to the separate trust.

Subsection (a)(2) shall apply to any income, gain, or loss of
the individual arising from a distribution described in
subparagraph (C)(ii). In determining the amount of such
distribution, proper adjustments shall be made for
liabilities of the trust allocable to an individual's share
in the trust.
``(2) Special rules for interests in qualified trusts.--
``(A) In general.--If the trust interest described in
paragraph (1) is an interest in a qualified trust--
``(i) paragraph (1) and subsection (a) shall not apply, and
``(ii) in addition to any other tax imposed by this title,
there is hereby imposed on each distribution with respect to
such interest a tax in the amount determined under
subparagraph (B).
``(B) Amount of tax.--The amount of tax under subparagraph
(A)(ii) shall be equal to the lesser of--
``(i) the highest rate of tax imposed by section 1(e) for
the taxable year which includes the day before the
expatriation date, multiplied by the amount of the
distribution, or
``(ii) the balance in the deferred tax account immediately
before the distribution determined without regard to any
increases under subparagraph (C)(ii) after the 30th day
preceding the distribution.
``(C) Deferred tax account.--For purposes of subparagraph
(B)(ii)--
``(i) Opening balance.--The opening balance in a deferred
tax account with respect to any trust interest is an amount
equal to the tax which would have been imposed on the
allocable expatriation gain with respect to the trust
interest if such gain had been included in gross income under
subsection (a).
``(ii) Increase for interest.--The balance in the deferred
tax account shall be increased by the amount of interest
determined (on the balance in the account at the time the
interest accrues), for periods after the 90th day after the
expatriation date, by using the rates and method applicable
under section 6621 for underpayments of tax for such periods,
except that section 6621(a)(2) shall be applied by
substituting `5 percentage points' for `3 percentage points'
in subparagraph (B) thereof.
``(iii) Decrease for taxes previously paid.--The balance in
the tax deferred account shall be reduced--

``(I) by the amount of taxes imposed by subparagraph (A) on
any distribution to the person holding the trust interest,
and
``(II) in the case of a person holding a nonvested
interest, to the extent provided in regulations, by the
amount of taxes imposed by subparagraph (A) on distributions
from the trust with respect to nonvested interests not held
by such person.

``(D) Allocable expatriation gain.--For purposes of this
paragraph, the allocable expatriation gain with respect to
any beneficiary's interest in a trust is the amount of gain
which would be allocable to such beneficiary's vested and
nonvested interests in the trust if the beneficiary held
directly all assets allocable to such interests.
``(E) Tax deducted and withheld.--
``(i) In general.--The tax imposed by subparagraph (A)(ii)
shall be deducted and withheld by the trustees from the
distribution to which it relates.
``(ii) Exception where failure to waive treaty rights.--If
an amount may not be deducted and withheld under clause (i)
by reason of the distributee failing to waive any treaty
right with respect to such distribution--

``(I) the tax imposed by subparagraph (A)(ii) shall be
imposed on the trust and each trustee shall be personally
liable for the amount of such tax, and
``(II) any other beneficiary of the trust shall be entitled
to recover from the distributee the amount of such tax
imposed on the other beneficiary.

``(F) Disposition.--If a trust ceases to be a qualified
trust at any time, a covered expatriate disposes of an
interest in a qualified trust, or a covered expatriate
holding an interest in a qualified trust dies, then, in lieu
of the tax imposed by subparagraph (A)(ii), there is hereby
imposed a tax equal to the lesser of--
``(i) the tax determined under paragraph (1) as if the day
before the expatriation date were the date of such cessation,
disposition, or death, whichever is applicable, or
``(ii) the balance in the tax deferred account immediately
before such date.
Such tax shall be imposed on the trust and each trustee shall
be personally liable for the amount of such tax and any other
beneficiary of the trust shall be entitled to recover from
the covered expatriate or the estate the amount of such tax
imposed on the other beneficiary.
``(G) Definitions and special rules.--For purposes of this
paragraph--
``(i) Qualified trust.--The term `qualified trust' means a
trust which is described in section 7701(a)(30)(E).
``(ii) Vested interest.--The term `vested interest' means
any interest which, as of the day before the expatriation
date, is vested in the beneficiary.
``(iii) Nonvested interest.--The term `nonvested interest'
means, with respect to any beneficiary, any interest in a
trust which is not a vested interest. Such interest shall be
determined by assuming the maximum exercise of discretion in
favor of the beneficiary and the occurrence of all
contingencies in favor of the beneficiary.
``(iv) Adjustments.--The Secretary may provide for such
adjustments to the bases of assets in a trust or a deferred
tax account, and the timing of such adjustments, in order to
ensure that gain is taxed only once.
``(v) Coordination with retirement plan rules.--This
subsection shall not apply to an interest in a trust which is
part of a retirement plan to which subsection (d)(2) applies.
``(3) Determination of beneficiaries' interest in trust.--
``(A) Determinations under paragraph (1).--For purposes of
paragraph (1), a beneficiary's interest in a trust shall be
based upon all relevant facts and circumstances, including
the terms of the trust instrument

[[Page S12558]]

and any letter of wishes or similar document, historical
patterns of trust distributions, and the existence of and
functions performed by a trust protector or any similar
adviser.
``(B) Other determinations.--For purposes of this section--
``(i) Constructive ownership.--If a beneficiary of a trust
is a corporation, partnership, trust, or estate, the
shareholders, partners, or beneficiaries shall be deemed to
be the trust beneficiaries for purposes of this section.
``(ii) Taxpayer return position.--A taxpayer shall clearly
indicate on its income tax return--

``(I) the methodology used to determine that taxpayer's
trust interest under this section, and
``(II) if the taxpayer knows (or has reason to know) that
any other beneficiary of such trust is using a different
methodology to determine such beneficiary's trust interest
under this section.

``(g) Termination of Deferrals, etc.--In the case of any
covered expatriate, notwithstanding any other provision of
this title--
``(1) any period during which recognition of income or gain
is deferred shall terminate on the day before the
expatriation date, and
``(2) any extension of time for payment of tax shall cease
to apply on the day before the expatriation date and the
unpaid portion of such tax shall be due and payable at the
time and in the manner prescribed by the Secretary.
``(h) Imposition of Tentative Tax.--
``(1) In general.--If an individual is required to include
any amount in gross income under subsection (a) for any
taxable year, there is hereby imposed, immediately before the
expatriation date, a tax in an amount equal to the amount of
tax which would be imposed if the taxable year were a short
taxable year ending on the expatriation date.
``(2) Due date.--The due date for any tax imposed by
paragraph (1) shall be the 90th day after the expatriation
date.
``(3) Treatment of tax.--Any tax paid under paragraph (1)
shall be treated as a payment of the tax imposed by this
chapter for the taxable year to which subsection (a) applies.
``(4) Deferral of tax.--The provisions of subsection (b)
shall apply to the tax imposed by this subsection to the
extent attributable to gain includible in gross income by
reason of this section.
``(i) Special Liens for Deferred Tax Amounts.--
``(1) Imposition of lien.--
``(A) In general.--If a covered expatriate makes an
election under subsection (a)(4) or (b) which results in the
deferral of any tax imposed by reason of subsection (a), the
deferred amount (including any interest, additional amount,
addition to tax, assessable penalty, and costs attributable
to the deferred amount) shall be a lien in favor of the
United States on all property of the expatriate located in
the United States (without regard to whether this section
applies to the property).
``(B) Deferred amount.--For purposes of this subsection,
the deferred amount is the amount of the increase in the
covered expatriate's income tax which, but for the election
under subsection (a)(4) or (b), would have occurred by reason
of this section for the taxable year including the
expatriation date.
``(2) Period of lien.--The lien imposed by this subsection
shall arise on the expatriation date and continue until--
``(A) the liability for tax by reason of this section is
satisfied or has become unenforceable by reason of lapse of
time, or
``(B) it is established to the satisfaction of the
Secretary that no further tax liability may arise by reason
of this section.
``(3) Certain rules apply.--The rules set forth in
paragraphs (1), (3), and (4) of section 6324A(d) shall apply
with respect to the lien imposed by this subsection as if it
were a lien imposed by section 6324A.
``(j) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(b) Inclusion in Income of Gifts and Bequests Received by
United States Citizens and Residents From Expatriates.--
Section 102 (relating to gifts, etc. not included in gross
income) is amended by adding at the end the following new
subsection:
``(d) Gifts and Inheritances From Covered Expatriates.--
``(1) In general.--Subsection (a) shall not exclude from
gross income the value of any property acquired by gift,
bequest, devise, or inheritance from a covered expatriate
after the expatriation date. For purposes of this subsection,
any term used in this subsection which is also used in
section 877A shall have the same meaning as when used in
section 877A.
``(2) Exceptions for transfers otherwise subject to estate
or gift tax.--Paragraph (1) shall not apply to any property
if either--
``(A) the gift, bequest, devise, or inheritance is--
``(i) shown on a timely filed return of tax imposed by
chapter 12 as a taxable gift by the covered expatriate, or
``(ii) included in the gross estate of the covered
expatriate for purposes of chapter 11 and shown on a timely
filed return of tax imposed by chapter 11 of the estate of
the covered expatriate, or
``(B) no such return was timely filed but no such return
would have been required to be filed even if the covered
expatriate were a citizen or long-term resident of the United
States.''.
(c) Definition of Termination of United States
Citizenship.--Section 7701(a) is amended by adding at the end
the following new paragraph:
``(48) Termination of united states citizenship.--
``(A) In general.--An individual shall not cease to be
treated as a United States citizen before the date on which
the individual's citizenship is treated as relinquished under
section 877A(e)(3).
``(B) Dual citizens.--Under regulations prescribed by the
Secretary, subparagraph (A) shall not apply to an individual
who became at birth a citizen of the United States and a
citizen of another country.''.
(d) Ineligibility for Visa or Admission to United States.--
(1) In general.--Section 212(a)(10)(E) of the Immigration
and Nationality Act (8 U.S.C. 1182(a)(10)(E)) is amended to
read as follows:
``(E) Former citizens not in compliance with expatriation
revenue provisions.--Any alien who is a former citizen of the
United States who relinquishes United States citizenship
(within the meaning of section 877A(e)(3) of the Internal
Revenue Code of 1986) and who is not in compliance with
section 877A of such Code (relating to expatriation).''.
(2) Availability of information.--
(A) In general.--Section 6103(l) (relating to disclosure of
returns and return information for purposes other than tax
administration) is amended by adding at the end the following
new paragraph:
``(19) Disclosure to deny visa or admission to certain
expatriates.--Upon written request of the Attorney General or
the Attorney General's delegate, the Secretary shall disclose
whether an individual is in compliance with section 877A (and
if not in compliance, any items of noncompliance) to officers
and employees of the Federal agency responsible for
administering section 212(a)(10)(E) of the Immigration and
Nationality Act solely for the purpose of, and to the extent
necessary in, administering such section 212(a)(10)(E).''.
(B) Safeguards.--
(i) Technical amendments.--Paragraph (4) of section
6103(p), as amended by section 202(b)(2)(B) of the Trade Act
of 2002 (Public Law 107-210; 116 Stat. 961), is amended by
striking ``or (17)'' after ``any other person described in
subsection (l)(16)'' each place it appears and inserting ``or
(18)''.
(ii) Conforming amendments.--Section 6103(p)(4) (relating
to safeguards), as amended by clause (i), is amended by
striking ``or (18)'' after ``any other person described in
subsection (l)(16)'' each place it appears and inserting
``(18), or (19)''.
(3) Effective dates.--
(A) In general.--Except as provided in subparagraph (B),
the amendments made by this subsection shall apply to
individuals who relinquish United States citizenship on or
after the date of the enactment of this Act.
(B) Technical amendments.--The amendments made by paragraph
(2)(B)(i) shall take effect as if included in the amendments
made by section 202(b)(2)(B) of the Trade Act of 2002 (Public
Law 107-210; 116 Stat. 961).
(e) Conforming Amendments.--
(1) Section 877 is amended by adding at the end the
following new subsection:
``(g) Application.--This section shall not apply to an
expatriate (as defined in section 877A(e)) whose expatriation
date (as so defined) occurs on or after February 5, 2003.''.
(2) Section 2107 is amended by adding at the end the
following new subsection:
``(f) Application.--This section shall not apply to any
expatriate subject to section 877A.''.
(3) Section 2501(a)(3) is amended by adding at the end the
following new subparagraph:
``(F) Application.--This paragraph shall not apply to any
expatriate subject to section 877A.''.
(4)(A) Paragraph (1) of section 6039G(d) is amended by
inserting ``or 877A'' after ``section 877''.
(B) The second sentence of section 6039G(e) is amended by
inserting ``or who relinquishes United States citizenship
(within the meaning of section 877A(e)(3))'' after
``877(a))''.
(C) Section 6039G(f) is amended by inserting ``or
877A(e)(2)(B)'' after ``877(e)(1)''.
(f) Clerical Amendment.--The table of sections for subpart
A of part II of subchapter N of chapter 1 is amended by
inserting after the item relating to section 877 the
following new item:

``Sec. 877A. Tax responsibilities of expatriation.''.
(g) Effective Date.--
(1) In general.--Except as provided in this subsection, the
amendments made by this section shall apply to expatriates
(within the meaning of section 877A(e) of the Internal
Revenue Code of 1986, as added by this section) whose
expatriation date (as so defined) occurs on or after February
5, 2003.
(2) Gifts and bequests.--Section 102(d) of the Internal
Revenue Code of 1986 (as added by subsection (b)) shall apply
to gifts and bequests received on or after February 5, 2003,
from an individual or the estate of an individual whose
expatriation date (as so defined) occurs after such date.
(3) Due date for tentative tax.--The due date under section
877A(h)(2) of the Internal Revenue Code of 1986, as added by
this section, shall in no event occur before the 90th day
after the date of the enactment of this Act.

[[Page S12559]]

SEC. 404. EXTENSION OF CUSTOMS USER FEES.

Section 13031(j)(3) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended
by striking ``September 30, 2003'' and inserting ``March 31,
2010''.
______

SA 1830. Mr. BINGAMAN (for himself, Mr. Lugar, Mr. Lieberman, Mr.
Bayh, Mrs. Clinton, Mr. Durbin, Ms. Landrieu, Mrs. Lincoln, Mr. Smith,
Mr. Reid, Mr. Corzine, Mr. Conrad, Mr. Byrd, Mr. Leahy, and Mr.
Jeffords) proposed an amendment to the bill S. 1689, making emergency
supplemental appropriations for Iraq and Afghanistan security and
reconstruction for the fiscal year ending September 30, 2004, and for
other purposes; as follows:

At the appropriate place, insert the following:
Sec. __. (a) Findings.--Congress makes the following
findings:
(1) According to President George W. Bush, Operation Iraqi
Freedom was ``fought for the cause of liberty, and for the
peace of the world . . .'' and ``to free a nation by breaking
a dangerous and aggressive regime''.
(2) The military victory in Iraq has been characterized by
President George W. Bush as one of the ``swiftest advances in
heavy arms in history''.
(3) There are more than 130,000 Soldiers, Sailors, Airmen,
and Marines of the United States serving in the Iraqi Theater
of Operations, far from family and friends, and for an
unknown duration.
(4) Since the beginning of Operation Iraqi Freedom, almost
300 members of the Armed Forces of the United States have
died in Iraq and nearly 1,500 have been wounded in action.
(5) Congress has authorized and Presidents have issued
specific decorations recognizing the sacrifice and service of
the members of the Armed Forces of the United States in the
Korean War, the Vietnam conflict, and the liberation of
Kuwait.
(6) Current Department of Defense guidance authorizes the
award of only one expeditionary medal for overseas duty in
Afghanistan, the Philippines, and Iraq.
(7) The conflict in Iraq is significant enough in scope and
sacrifice to warrant a specific military decoration for the
liberation of Iraq.
(b) Authorization of Award of Campaign Medal.--The
Secretary concerned may award a campaign medal of appropriate
design, with ribbons and appurtenances, to any person who
serves in any capacity with the Armed Forces in the Southwest
Asia region in connection with Operation Iraqi Freedom.
(c) Name of Medal.--The campaign medal authorized by
subsection (b) shall be known as the ``Iraqi Liberation
Medal''.
(d) Prohibition on Concurrent Award of Global War on
Terrorism Expeditionary Medal.--A person who is awarded the
campaign medal authorized by subsection (b) for service
described in that subsection may not also be awarded the
Global War on Terrorism Expeditionary Medal for that service.
(e) Other Limitations.--The award of the campaign medal
authorized by subsection (b) shall be subject to such
limitations as the President may prescribe.
(f) Regulations.--(1) Each Secretary concerned shall
prescribe regulations on the award of the campaign medal
authorized by subsection (b).
(2) The regulations prescribed under paragraph (1) shall
not go into effect until approved by the Secretary of
Defense.
(3) The Secretary of Defense shall ensure that the
regulations prescribed under paragraph (1) are uniform, so
far as practicable.
(g) Secretary Concerned Defined.--In this section, the term
``Secretary concerned'' means the following:
(1) The Secretary of the Army with respect to matters
concerning members of the Army.
(2) The Secretary of the Navy with respect to matters
concerning members of the Navy, Marine Corps, and Coast Guard
when it is operating as a service in the Navy.
(3) The Secretary of the Air Force with respect to matters
concerning members of the Air Force.
(4) The Secretary of Homeland Security with respect to
matters concerning members of the Coast Guard when it is not
operating as a service in the Navy.
______

SA 1831. Mr. BAUCUS submitted an amendment intended to be proposed by
him to the bill S. 1689, making emergency supplemental appropriations
for Iraq and Afghanistan security and reconstruction for the fiscal
year ending September 30, 2004, and for other purposes; which was
ordered to lie on the table; as follows:

At the appropriate place insert the following:

SEC. __. REVENUE PROVISIONS.

(a) Reversal of Acceleration of Reduction in Highest Income
Tax Rate.--
(1) In general.--The table contained in paragraph (2) of
section 1(i) (relating to reductions in rates after June 30,
2001) is amended to read as follows:

------------------------------------------------------------------------
The corresponding percentages shall
be substituted for the following
``In the case of taxable years                percentages:
beginning during calendar year:  --------------------------------------
28%      31%      36%       39.6%
------------------------------------------------------------------------
2001.............................    27.5%    30.5%    35.5%       39.1%
2002.............................    27.0%    30.0%    35.0%       38.6%
2003.............................    25.0%    28.0%    33.0%       35.0%
2004 and 2005....................    25.0%    28.0%    33.0%       37.6%
2006 and thereafter..............    25.0%    28.0%    33.0%    35.0%''.
------------------------------------------------------------------------

(2) Effective date.--The amendment made by this subsection
shall apply to taxable years beginning after December 31,
2003.
(3) Application of egtrra sunset to this subsection.--The
amendment made by this subsection shall be subject to title
IX of the Economic Growth and Tax Relief Reconciliation Act
of 2001 to the same extent and in the same manner as the
provision of such Act to which such amendment relates.
(b) Temporary Suspension of Reduction in Capital Gains
Rates for Individuals.--
(1) In general.--Subsection (d) of section 301 of the Jobs
and Growth Tax Relief Reconciliation Act of 2003 is amended
to read as follows:
``(d) Effective Dates.--
``(1) In general.--Except as otherwise provided by this
subsection, the amendments made by this section shall apply
to taxable years--
``(A) ending on or after May 6, 2003, and beginning before
January 1, 2004, and
``(B) beginning after December 31, 2006.
``(2) Withholding.--The amendment made by subsection
(a)(2)(C) shall apply to amounts paid after the date of the
enactment of this Act, but only with respect to taxable years
described in paragraph (1).
``(3) Small business stock.--The amendments made by
subsection (b)(3) shall apply to dispositions--
``(A) on or after May 6, 2003, and before January 1, 2004,
and
``(B) after December 31, 2006.''.
(2) Application of jgtrra sunset to this subsection.--The
amendment made by this subsection shall be subject to section
303 of the Jobs and Growth Tax Relief Reconciliation Act of
2003 to the same extent and in the same manner as the
provision of such Act to which such amendment relates.
(c) Temporary Suspension of Taxation of Dividends at
Capital Gains Rates.--
(1) In general.--Subsection (f) of section 302 of the Jobs
and Growth Tax Relief Reconciliation Act of 2003 is amended
to read as follows:
``(f) Effective Date.--
``(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable
years--
``(A) beginning after December 31, 2002, and before January
1, 2004, and
``(B) beginning after December 31, 2006.
``(2) Regulated investment companies and real estate
investment trusts.--In the case of a regulated investment
company or a real estate investment trust, the amendments
made by this section shall apply to taxable years described
is paragraph (1); except that dividends received by such a
company or trust--
``(A) before January 1, 2003, and
``(B) after December 31, 2003, and before January 1, 2007,

shall not be treated as qualified dividend income (as defined
in section 1(h)(11)(B) of the Internal Revenue Code of 1986,
as added by this Act).''.
(2) Application of jgtrra sunset to this subsection.--The
amendment made by this subsection shall be subject to section
303 of the Jobs and Growth Tax Relief Reconciliation Act of
2003 to the same extent and in the same manner as the
provision of such Act to which such amendment relates.
______

SA 1832. Mr. FEINGOLD submitted an amendment intended to be proposed
by him to the bill S. 1689, making emergency supplemental
appropriations for Iraq and Afghanistan security and reconstruction for
the fiscal year ending September 30, 2004, and for other purposes;
which was ordered to lie on the table; as follows:

On page 35, line 14, strike ``available,'' and insert
``available in both English and Arabic,''.
______

SA 1833. Mr. LEAHY submitted an amendment intended to be proposed by
him to the bill S. 1689, making emergency supplemental appropriations
for Iraq and Afghanistan security and reconstruction for the fiscal
year ending September 30, 2004, and for other purposes; which was
ordered to lie on the table; as follows:

At the appropriate place insert:
Sec.   . None of the funds made available in this or any
other Act for fiscal year 2004 may be used for any defense or
reconstruction activities in Iraq or Aghanistan coordinated
by any officer of the United States Government whose office
is not subject to appointment by the President by and with
the advice and consent of the Senate.
______

SA 1834. Mr. REED (for himself, Mr. Hagel, and Mr. Levin) submitted
an amendment intended to be proposed by him to the bill S. 1689, making
emergency supplemental appropriations for Iraq and Afghanistan security
and reconstruction for the fiscal year ending September 30, 2004, and
for other purposes; as follows:

On page 22, between lines 12 and 13, insert the following:
Sec. 316. (a) In addition to the strengths authorized by
law for personnel of the Army as of September 30, 2004,
pursuant to paragraphs (1) and (2) of section 115(a) of title
10,

[[Page S12560]]

United States Code, the Army is hereby authorized an
additional strength of 10,000 personnel as of such date,
which the Secretary of the Army may allocate as the Secretary
determines appropriate among the personnel strengths required
by such section to be authorized annually under subparagraphs
(A) and (B) of paragraph (1) of such section and paragraph
(2) of such section.
(b) The additional personnel authorized under subsection
(a) shall be trained, incorporated into an appropriate force
structure, and used to perform constabulary duty in such
specialties as military police, light infantry, civil
affairs, and special forces, and in any other military
occupational specialty that is appropriate for constabulary
duty.
(c) Of the amount appropriated under chapter 1 of this
title for the Iraq Freedom Fund, $409,000,000 shall be
available for necessary expenses for the additional personnel
authorized under subsection (a).
______

SA 1835. Mr. REID (for himself and Mrs. Lincoln) proposed an
amendment to the bill S. 1689, making emergency supplemental
appropriations for Iraq and Afghanistan security and reconstruction for
the fiscal year ending September 30, 2004, and for other purposes; as
follows:

At the end of title I, add the following:
Sec. 316. (a) Restoration of Full Retired Pay Benefits.--
Section 1414 of title 10, United States Code, is amended to
read as follows:

``Sec. 1414. Members eligible for retired pay who have
service-connected disabilities: payment of retired pay and
veterans' disability compensation

``(a) Payment of Both Retired Pay and Compensation.--Except
as provided in subsection (b), a member or former member of
the uniformed services who is entitled to retired pay (other
than as specified in subsection (c)) and who is also entitled
to veterans' disability compensation is entitled to be paid
both without regard to sections 5304 and 5305 of title 38.
``(b) Special Rule for Chapter 61 Career Retirees.--The
retired pay of a member retired under chapter 61 of this
title with 20 years or more of service otherwise creditable
under section 1405 of this title at the time of the member's
retirement is subject to reduction under sections 5304 and
5305 of title 38, but only to the extent that the amount of
the member's retired pay under chapter 61 of this title
exceeds the amount of retired pay to which the member would
have been entitled under any other provision of law based
upon the member's service in the uniformed services if the
member had not been retired under chapter 61 of this title.
``(c) Exception.--Subsection (a) does not apply to a member
retired under chapter 61 of this title with less than 20
years of service otherwise creditable under section 1405 of
this title at the time of the member's retirement.
``(d) Definitions.--In this section:
``(1) The term `retired pay' includes retainer pay,
emergency officers' retirement pay, and naval pension.
``(2) The term `veterans' disability compensation' has the
meaning given the term `compensation' in section 101(13) of
title 38.''.
(b) Repeal of Special Compensation Programs.--Sections 1413
and 1413a of such title are repealed.
(c) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by striking the items
relating to sections 1413, 1413a, and 1414 and inserting the
following:

``1414. Members eligible for retired pay who have service-connected
disabilities: payment of retired pay and veterans'
disability compensation.''.

(d) Effective Date; Prohibition on Retroactive Benefits.--
(1) In general.--The amendments made by this section shall
take effect on the first day of the first month that begins
after the date of the enactment of this Act.
(2) Retroactive benefits.--No benefits may be paid to any
person by reason of section 1414 of title 10, United States
Code, as amended by subsection (a), for any period before the
effective date under paragraph (1).
______

SA 1836. Mr. REID proposed an amendment to the bill S. 1689, making
emergency supplemental appropriations for Iraq and Afghanistan security
and reconstruction for the fiscal year ending September 30, 2004, and
for other purposes; as follows:

On page 22, between lines 12 and 13, insert the following
new section:
Sec. 316. (a) Congress makes the following findings:
(1) During Operation Desert Shield and Operation Desert
Storm (in this section, collectively referred to as the
``First Gulf War''), the regime of Saddam Hussein committed
grave human rights abuses and acts of terrorism against the
people of Iraq and citizens of the United States.
(2) United States citizens who were taken prisoner by the
regime of Saddam Hussein during the First Gulf War were
brutally tortured and forced to endure severe physical trauma
and emotional abuse.
(3) The regime of Saddam Hussein used civilian citizens of
the United States who were working in the Persian Gulf region
before and during the First Gulf War as so-called human
shields, threatening the personal safety and emotional well-
being of such civilians.
(4) Congress has recognized and authorized the right of
United States citizens, including prisoners of war, to hold
terrorist states, such as Iraq during the regime of Saddam
Hussein, liable for injuries caused by such states.
(5) The United States district courts are authorized to
adjudicate cases brought by individuals injured by terrorist
states.
(b) It is the sense of Congress that--
(1) notwithstanding section 1503 of the Emergency Wartime
Supplemental Appropriations Act, 2003 (Public Law 108-11; 117
Stat. 579) and any other provision of law, a citizen of the
United States who was a prisoner of war or who was used by
the regime of Saddam Hussein and by Iraq as a so-called human
shield during the First Gulf War should have the opportunity
to have any claim for damages caused by the regime of Saddam
Hussein and by Iraq incurred by such citizen fully
adjudicated in the appropriate United States district court;
(2) any judgment for such damages awarded to such citizen,
or the family of such citizen, should be fully enforced; and
(3) the Attorney General should enter into negotiations
with each such citizen, or the family of each such citizen,
to develop a fair and reasonable method of providing
compensation for the damages each such citizen incurred,
including using assets of the regime of Saddam Hussein held
by the Government of the United States or any other
appropriate sources to provide such compensation.
______

SA 1837. Mr. DURBIN (for himself, Ms. Mikulski, and Mr. Corzine)
proposed an amendment the bill S. 1689, making emergency supplemental
appropriations for Iraq and Afghanistan security and reconstruction for
the fiscal year ending September 30, 2004, and for other purposes; as
follows:

At the appropriate place, insert the following:
Sec. __. (a) Short Title.--This section may be cited as the
``Reservists Pay Security Act of 2003''.
(b) Nonreduction in pay While Federal Employee Is
Performing Active Service In the Uniformed Services or
National Guard.--
(1) In general.--Subchapter IV of chapter 55 of title 5,
United States Code, is amended by adding at the end the
following:

``Sec. 5538. Nonreduction in pay while serving in the
uniformed services or National Guard

``(a) An employee who is absent from a position of
employment with the Federal Government in order to perform
active duty in the uniformed services pursuant to a call or
order to active duty under a provision of law referred to in
section 101(a)(13)(B) of title 10 shall be entitled, while
serving on active duty, to receive, for each pay period
described in subsection (b), an amount equal to the amount by
which--
``(1) the amount of basic pay which would otherwise have
been payable to such employee for such pay period if such
employee's civilian employment with the Government had not
been interrupted by that service, exceeds (if at all)
``(2) the amount of pay and allowances which (as determined
under subsection (d))--
``(A) is payable to such employee for that service; and
``(B) is allocable to such pay period.
``(b)(1) Amounts under this section shall be payable with
respect to each pay period (which would otherwise apply if
the employee's civilian employment had not been
interrupted)--
``(A) during which such employee is entitled to
reemployment rights under chapter 43 of title 38 with respect
to the position from which such employee is absent (as
referred to in subsection (a)); and
``(B) for which such employee does not otherwise receive
basic pay (including by taking any annual, military, or other
paid leave) to which such employee is entitled by virtue of
such employee's civilian employment with the Government.
``(2) For purposes of this section, the period during which
an employee is entitled to reemployment rights under chapter
43 of title 38--
``(A) shall be determined disregarding the provisions of
section 4312(d) of title 38; and
``(B) shall include any period of time specified in section
4312(e) of title 38 within which an employee may report or
apply for employment or reemployment following completion of
the service on active duty to which called or ordered as
described in subsection (a).
``(c) Any amount payable under this section to an employee
shall be paid--
``(1) by such employee's employing agency;
``(2) from the appropriation or fund which would be used to
pay the employee if such employee were in a pay status; and
``(3) to the extent practicable, at the same time and in
the same manner as would basic pay if such employee's
civilian employment had not been interrupted.
``(d) The Office of Personnel Management shall, in
consultation with Secretary of Defense, prescribe any
regulations necessary to carry out the preceding provisions
of this section.
``(e)(1) The head of each agency referred to in section
2302(a)(2)(C)(ii) shall, in consultation with the Office,
prescribe procedures to

[[Page S12561]]

ensure that the rights under this section apply to the
employees of such agency.
``(2) The Administrator of the Federal Aviation
Administration shall, in consultation with the Office,
prescribe procedures to ensure that the rights under this
section apply to the employees of that agency.
``(f) In this section--
``(1) the terms `employee', `Federal Government', and
`uniformed services' have the same respective meanings as
given them in section 4303 of title 38;
``(2) the term `employing agency', as used with respect to
an employee entitled to any payments under this section,
means the agency or other entity of the Government (including
an agency referred to in section 2302(a)(2)(C)(ii)) with
respect to which such employee has reemployment rights under
chapter 43 of title 38; and
``(3) the term `basic pay' includes any amount payable
under section 5304.''.
(2) Technical and conforming amendment.--The table of
sections for chapter 55 of title 5, United States Code, is
amended by inserting after the item relating to section 5537
the following:

``5538. Nonreduction in pay while serving in the uniformed services or
National Guard.''.

(3) Effective period.--The amendments made by this section
shall apply with respect to pay periods (as described in
section 5538(b) of title 5, United States Code, as amended by
this section) beginning on or after the date of enactment of
this section and ending September 30, 2004.

____________________