To provide Federal assistance to States and local jurisdictions to prosecute hate crimes.

TEXT OF AMENDMENTS

SA 3176. Ms. LANDRIEU submitted an amendment intended to be proposed
by her to the bill S. 2400, to authorize appropriations for fiscal year
2005 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

On page 130, between lines 9 and 10, insert the following:

SEC. 642. FULL SBP SURVIVOR BENEFITS FOR SURVIVING SPOUSES
OVER AGE 62.

(a) Phased Increase in Basic Annuity to 55 Percent.--(1)
Subsection (a)(1)(B)(i) of section 1451 of title 10, United
States Code, is amended by striking ``35 percent of the base
amount.'' and inserting ``the product of the base amount and
the percent applicable for the month. The percent applicable
for a month is 35 percent for months beginning before October
2005, 40 percent for months beginning after September 2005
and before April 2006, 45 percent for months beginning after
March 2006 and before April 2007, 50 percent for months
beginning after March 2007 and before April 2008, and 55
percent for months beginning after March 2008.''.
(2) Subsection (a)(2)(B)(i)(I) of such section is amended
by striking ``35 percent'' and inserting ``the percent
specified under paragraph (1)(B)(i) as being applicable for
the month''.
(3) Subsection (c)(1)(B)(i) of such section is amended--
(A) by striking ``35 percent'' and inserting ``the
applicable percent''; and
(B) by adding at the end the following: ``The percent
applicable for a month under the preceding sentence is the
percent specified under subsection (a)(1)(B)(i) as being
applicable for the month.''.
(4) The heading for subsection (d)(2)(A) of such section is
amended to read as follows: ``Computation   of   Annuity.--
''.
(b) Phased Elimination of Supplemental Annuity.--(1)
Section 1457(b) of title 10, United States Code, is amended--
(A) by striking ``5, 10, 15, or 20 percent'' and inserting
``the applicable percent''; and
(B) by inserting after the first sentence the following:
``The percent used for the computation shall be an even
multiple of 5 percent and, whatever the percent specified in
the election, may not exceed 20 percent for months beginning
before October 2005, 15 percent for months beginning after
September 2005 and before April 2006, 10 percent for months
beginning after March 2006 and before April 2007, and 5
percent for months beginning after March 2007.''.
(2) Effective on April 1, 2008, chapter 73 of such title is
amended--
(A) by striking subchapter III; and
(B) by striking the item relating to subchapter III in the
table of subchapters at the beginning of that chapter.
(c) Recomputation of Annuities.--(1) Effective on the first
day of each month referred to in paragraph (2)--
(A) each annuity under section 1450 of title 10, United
States Code, that commenced before that month, is computed
under a provision of section 1451 of that title amended by
subsection (a), and is payable for that month shall be
recomputed so as to be equal to the amount that would be in
effect if the percent applicable for that month under that
provision, as so amended, had been used for the initial
computation of the annuity; and
(B) each supplemental survivor annuity under section 1457
of such title that commenced before that month and is payable
for that month shall be recomputed so as to be equal to the
amount that would be in effect if the percent applicable for
that month under that section, as amended by this section,
had been used for the initial computation of the supplemental
survivor annuity.
(2) The requirements for recomputation of annuities under
paragraph (1) apply with respect to the following months:
(A) October 2005.
(B) April 2006.
(C) April 2007.
(D) April 2008.
(d) Recomputation of Retired Pay Reductions for
Supplemental Survivor Annuities.--The Secretary of Defense
shall take such actions as are necessitated by the amendments
made by subsection (b) and the requirements of subsection
(c)(1)(B) to ensure that the reductions in retired pay under
section 1460 of title 10, United States Code, are adjusted to
achieve the objectives set forth in subsection (b) of that
section.
(e) Open Enrollment Period For Survivor Benefit Plan
Commencing October 1, 2005.--(1)(A) An eligible retired or
former member may elect to participate in the Survivor
Benefit Plan under subchapter II of chapter 73 of title 10,
United States Code, during the open enrollment period
specified in paragraph (5).
(B) An eligible retired or former member who elects under
subparagraph (A) to participate in the Survivor Benefit Plan
at the maximum level may also elect during the open
enrollment period to participate in the Supplemental Survivor
Benefit Plan established under subchapter III of chapter 73
of title 10, United States Code.
(C) For purposes of subparagraphs (A) and (B), an eligible
retired or former member is a member or former member of the
uniformed services who on the day before the first day of the
open enrollment period is not a participant in the Survivor
Benefit Plan and--
(i) is entitled to retired pay; or
(ii) would be entitled to retired pay under chapter 1223 of
title 10, United States Code, but for the fact that such
member or former member is under 60 years of age.
(D) A person making an election under subparagraph (A) by
reason of eligibility under subparagraph (C)(i) shall be
treated for all purposes as providing a standard annuity
under the Survivor Benefit Plan.
(E) A person making an election under subparagraph (A) by
reason of eligibility under subparagraph (C)(ii) shall be
treated for all purposes as providing a reserve-component
annuity under the Survivor Benefit Plan.
(2) A person who on the day before the first day of the
open enrollment period is a participant in the Survivor
Benefit Plan but is not participating at the maximum base
amount or is providing coverage under the Plan for a
dependent child and not for the person's spouse or former
spouse may, during the open enrollment period, elect to--
(A) participate in the Plan at a higher base amount (not in
excess of the participant's retired pay); or
(B) provide annuity coverage under the Plan for the
person's spouse or former spouse at a base amount not less
than the base amount provided for the dependent child.
(3)(A) A person who is eligible to make an election under
this paragraph may elect during the open enrollment period to
participate in the Supplemental Survivor Benefit Plan
established under subchapter III of chapter 73 of title 10,
United States Code.
(B) Except as provided in subparagraph (C), a person is
eligible to make an election under subparagraph (A) if on the
day before the first day of the open enrollment period the
person--
(i) is a participant in the Survivor Benefit Plan at the
maximum level, or during the open enrollment period the
person increases the level of such participation to the
maximum level under paragraph (2) of this subsection; and
(ii) under that Plan is providing annuity coverage for the
person's spouse or a former spouse.
(C) A person is not eligible to make an election under
subparagraph (A) if (as determined by the Secretary
concerned) the annuity of a spouse or former spouse
beneficiary of that person under the Survivor Benefit Plan is
to be computed under section 1451(e) of title 10, United
States Code. However, such a person may during the open
enrollment period waive the right to have that annuity
computed under such section 1451(e). Any such election is
irrevocable. A person making such a waiver may make an
election under subparagraph (A) as in the case of any other
participant in the Survivor Benefit Plan.
(4) An election under this subsection shall be made in
writing, signed by the person making the election, and
received by the Secretary concerned before the end of the
open enrollment period. Any such election shall be made
subject to the same conditions, and with the same
opportunities for designation of beneficiaries and
specification of base amount, that apply under the Survivor
Benefit Plan or the Supplemental Survivor Benefit Plan, as
the case may be. A person making an election under paragraph
(1) to provide a reserve-component annuity shall make a
designation described in section 1448(e) of title 10, United
States Code. Any such election shall be effective as of the
first day of the first calendar month following the month in
which the election is received by the Secretary concerned.
(5) The open enrollment period under this section shall be
the one-year period beginning on October 1, 2005.
(6) If a person making an election under this subsection
dies before the end of the two-year period beginning on the
effective date of the election, the election is void and the
amount of any reduction in retired pay of the person that is
attributable to the election shall be paid in a lump sum to
the person who would have been the deceased person's
beneficiary under the voided election if

[[Page S5811]]

the deceased person had died after the end of such two-year
period.
(7) The provisions of sections 1449, 1453, and 1454 of
title 10, United States Code, are applicable to a person
making an election, and to an election, under this subsection
in the same manner as if the election were made under the
Survivor Benefit Plan or the Supplemental Survivor Benefit
Plan, as the case may be.
(8) The Secretary of Defense may require that the premium
for a person making an election under paragraph (1)(A) or (2)
include, in addition to the amount required under section
1452(a) of title 10, United States Code, an amount determined
under regulations prescribed by the Secretary of Defense for
the purposes of this subsection. Any such amount shall be
stated as a percentage of the base amount of the person
making the election and shall reflect the number of years
that have elapsed since the person retired, but may not
exceed 4.5 percent of that person's base amount.
(f) Report Concerning Open Season.--Not later than July 1,
2005, the Secretary of Defense shall submit to the Committees
on Armed Services of the Senate and the House of
Representatives a report on the open season authorized by
subsection (e) for the Survivor Benefit Plan. The report
shall include the following:
(1) A description of the Secretary's plans for
implementation of the open season.
(2) The Secretary's estimates of the costs associated with
the open season, including any anticipated effect of the open
season on the actuarial status of the Department of Defense
Military Retirement Fund.
(3) Any recommendation by the Secretary for further
legislative action.
______

SA 3177. Mr. CHAFEE submitted an amendment intended to be proposed by
him to the bill S. 2400, to authorize appropriations for fiscal year
2005 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

On page 176, after line 21, insert the following:

SEC. 844. APPLICABILITY OF BERRY AMENDMENT TO PROCUREMENTS OF
ARMED FORCES UNIFORMS AND UNIFORM ITEMS WITH
NONAPPROPRIATED FUNDS.

(a) Applicability.--Section 2533a of title 10, United
States Code, is amended--
(1) in subsection (b)(1), by striking subparagraph (B) and
inserting the following:
``(B) clothing, including--
``(i) uniforms (including uniform headware) of the armed
forces; and
``(ii) insignia, medals, other award appurtenances and
decorations, other devices and accessories, belts, and belt
buckles for armed forces uniforms;''; and
(2) in subsection (g), by inserting ``, other than uniforms
and uniform items described in clauses (i) and (ii) of
subsection (b)(1)(B),'' after ``items''.
(b) Effective Date and Applicability.--This section and the
amendments made by this section shall take effect 180 days
after the date of the enactment of this Act and shall apply
with respect to expenditures made on or after such effective
date.
______

SA 3178. Mr. GREGG (for himself and Mr. Kennedy) proposed an
amendment to the bill S. 15, to amend the Public Health Service Act to
provide protections and countermeasures against chemical, radiological,
or nuclear agents that may be used in a terrorist attack against the
United States by giving the National Institutes of Health contracting
flexibility, infrastructure improvements, and expediting the scientific
peer review process, and streamlining the Food and Drug Administration
approval process of countermeasures; as follows:

Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Project BioShield Act of
2004''.

SEC. 2. BIOMEDICAL COUNTERMEASURE RESEARCH AND DEVELOPMENT--
AUTHORITIES.

(a) In General.--Part B of title III of the Public Health
Service Act (42 U.S.C. 243 et seq.) is amended by inserting
after section 319F the following section:

``SEC. 319F-1. AUTHORITY FOR USE OF CERTAIN PROCEDURES
REGARDING QUALIFIED COUNTERMEASURE RESEARCH AND
DEVELOPMENT ACTIVITIES.

``(a) In General.--
``(1) Authority.--In conducting and supporting research and
development activities regarding countermeasures under
section 319F(h), the Secretary may conduct and support such
activities in accordance with this section and, in
consultation with the Director of the National Institutes of
Health, as part of the program under section 446, if the
activities concern qualified countermeasures.
``(2) Qualified countermeasure.--For purposes of this
section, the term `qualified countermeasure' means a drug (as
that term is defined by section 201(g)(1) of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 321(g)(1))),
biological product (as that term is defined by section 351(i)
of this Act (42 U.S.C. 262(i))), or device (as that term is
defined by section 201(h) of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 321(h))) that the Secretary
determines to be a priority (consistent with sections 302(2)
and 304(a) of the Homeland Security Act of 2002) to--
``(A) treat, identify, or prevent harm from any biological,
chemical, radiological, or nuclear agent that may cause a
public health emergency affecting national security; or
``(B) treat, identify, or prevent harm from a condition
that may result in adverse health consequences or death and
may be caused by administering a drug, biological product, or
device that is used as described in subparagraph (A).
``(3) Interagency cooperation.--
``(A) In general.--In carrying out activities under this
section, the Secretary is authorized, subject to subparagraph
(B), to enter into interagency agreements and other
collaborative undertakings with other agencies of the United
States Government.
``(B) Limitation.--An agreement or undertaking under this
paragraph shall not authorize another agency to exercise the
authorities provided by this section.
``(4) Availability of facilities to the secretary.--In any
grant, contract, or cooperative agreement entered into under
the authority provided in this section with respect to a
biocontainment laboratory or other related or ancillary
specialized research facility that the Secretary determines
necessary for the purpose of performing, administering, or
supporting qualified countermeasure research and development,
the Secretary may provide that the facility that is the
object of such grant, contract, or cooperative agreement
shall be available as needed to the Secretary to respond to
public health emergencies affecting national security.
``(5) Transfers of qualified countermeasures.--Each
agreement for an award of a grant, contract, or cooperative
agreement under section 319F(h) for the development of a
qualified countermeasure shall provide that the recipient of
the award will comply with all applicable export-related
controls with respect to such countermeasure.
``(b) Expedited Procurement Authority.--
``(1) Increased simplified acquisition threshold for
qualified countermeasure procurements.--
``(A) In general.--For any procurement by the Secretary of
property or services for use (as determined by the Secretary)
in performing, administering, or supporting qualified
countermeasure research or development activities under this
section that the Secretary determines necessary to respond to
pressing research and development needs under this section,
the amount specified in section 4(11) of the Office of
Federal Procurement Policy Act (41 U.S.C. 403(11)), as
applicable pursuant to section 302A(a) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C.
252a(a)), shall be deemed to be $25,000,000 in the
administration, with respect to such procurement, of--
``(i) section 303(g)(1)(A) of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253(g)(1)(A))
and its implementing regulations; and
``(ii) section 302A(b) of such Act (41 U.S.C. 252a(b)) and
its implementing regulations.
``(B) Application of certain provisions.--Notwithstanding
subparagraph (A) and the provision of law and regulations
referred to in such subparagraph, each of the following
provisions shall apply to procurements described in this
paragraph to the same extent that such provisions would apply
to such procurements in the absence of subparagraph (A):
``(i) Chapter 37 of title 40, United States Code (relating
to contract work hours and safety standards).
``(ii) Subsections (a) and (b) of section 7 of the Anti-
Kickback Act of 1986 (41 U.S.C. 57(a) and (b)).
``(iii) Section 304C of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 254d)
(relating to the examination of contractor records).
``(iv) Section 3131 of title 40, United States Code
(relating to bonds of contractors of public buildings or
works).
``(v) Subsection (a) of section 304 of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 254(a))
(relating to contingent fees to middlemen).
``(vi) Section 6002 of the Solid Waste Disposal Act (42
U.S.C. 6962).
``(vii) Section 1354 of title 31, United States Code
(relating to the limitation on the use of appropriated funds
for contracts with entities not meeting veterans employment
reporting requirements).
``(C) Internal controls to be instituted.--The Secretary
shall institute appropriate internal controls for
procurements that are under this paragraph, including
requirements with regard to documenting the justification for
use of the authority in this paragraph with respect to the
procurement involved.
``(D) Authority to limit competition.--In conducting a
procurement under this paragraph, the Secretary may not use
the authority provided for under subparagraph (A) to conduct
a procurement on a basis other than full and open competition
unless the Secretary determines that the mission of the
BioShield Program under the Project BioShield Act of 2004
would be seriously impaired without such a limitation.

[[Page S5812]]

``(2) Procedures other than full and open competition.--
``(A) In general.--In using the authority provided in
section 303(c)(1) of title III of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253(c)(1)) to
use procedures other than competitive procedures in the case
of a procurement described in paragraph (1) of this
subsection, the phrase `available from only one responsible
source' in such section 303(c)(1) shall be deemed to mean
`available from only one responsible source or only from a
limited number of responsible sources'.
``(B) Relation to other authorities.--The authority under
subparagraph (A) is in addition to any other authority to use
procedures other than competitive procedures.
``(C) Applicable government-wide regulations.--The
Secretary shall implement this paragraph in accordance with
government-wide regulations implementing such section
303(c)(1) (including requirements that offers be solicited
from as many potential sources as is practicable under the
circumstances, that required notices be published, and that
submitted offers be considered), as such regulations apply to
procurements for which an agency has authority to use
procedures other than competitive procedures when the
property or services needed by the agency are available from
only one responsible source or only from a limited number of
responsible sources and no other type of property or services
will satisfy the needs of the agency.
``(3) Increased micropurchase threshold.--
``(A) In general.--For a procurement described by paragraph
(1), the amount specified in subsections (c), (d), and (f) of
section 32 of the Office of Federal Procurement Policy Act
(41 U.S.C. 428) shall be deemed to be $15,000 in the
administration of that section with respect to such
procurement.
``(B) Internal controls to be instituted.--The Secretary
shall institute appropriate internal controls for purchases
that are under this paragraph and that are greater than
$2,500.
``(C) Exception to preference for purchase card
mechanism.--No provision of law establishing a preference for
using a Government purchase card method for purchases shall
apply to purchases that are under this paragraph and that are
greater than $2,500.
``(4) Review.--
``(A) Review allowed.--Notwithstanding subsection (f),
section 1491 of title 28, United States Code, and section
3556 of title 31 of such Code, review of a contracting agency
decision relating to a procurement described in paragraph (1)
may be had only by filing a protest--
``(i) with a contracting agency; or
``(ii) with the Comptroller General under subchapter V of
chapter 35 of title 31, United States Code.
``(B) Override of stay of contract award or performance
committed to agency discretion.--Notwithstanding section 1491
of title 28, United States Code, and section 3553 of title 31
of such Code, the following authorizations by the head of a
procuring activity are committed to agency discretion:
``(i) An authorization under section 3553(c)(2) of title
31, United States Code, to award a contract for a procurement
described in paragraph (1) of this subsection.
``(ii) An authorization under section 3553(d)(3)(C) of such
title to perform a contract for a procurement described in
paragraph (1) of this subsection.
``(c) Authority to Expedite Peer Review.--
``(1) In general.--The Secretary may, as the Secretary
determines necessary to respond to pressing qualified
countermeasure research and development needs under this
section, employ such expedited peer review procedures
(including consultation with appropriate scientific experts)
as the Secretary, in consultation with the Director of NIH,
deems appropriate to obtain assessment of scientific and
technical merit and likely contribution to the field of
qualified countermeasure research, in place of the peer
review and advisory council review procedures that would be
required under sections 301(a)(3), 405(b)(1)(B), 405(b)(2),
406(a)(3)(A), 492, and 494, as applicable to a grant,
contract, or cooperative agreement--
``(A) that is for performing, administering, or supporting
qualified countermeasure research and development activities;
and
``(B) the amount of which is not greater than $1,500,000.
``(2) Subsequent phases of research.--The Secretary's
determination of whether to employ expedited peer review with
respect to any subsequent phases of a research grant,
contract, or cooperative agreement under this section shall
be determined without regard to the peer review procedures
used for any prior peer review of that same grant, contract,
or cooperative agreement. Nothing in the preceding sentence
may be construed to impose any requirement with respect to
peer review not otherwise required under any other law or
regulation.
``(d) Authority for Personal Services Contracts.--
``(1) In general.--For the purpose of performing,
administering, or supporting qualified countermeasure
research and development activities, the Secretary may, as
the Secretary determines necessary to respond to pressing
qualified countermeasure research and development needs under
this section, obtain by contract (in accordance with section
3109 of title 5, United States Code, but without regard to
the limitations in such section on the period of service and
on pay) the personal services of experts or consultants who
have scientific or other professional qualifications, except
that in no case shall the compensation provided to any such
expert or consultant exceed the daily equivalent of the
annual rate of compensation for the President.
``(2) Federal tort claims act coverage.--
``(A) In general.--A person carrying out a contract under
paragraph (1), and an officer, employee, or governing board
member of such person, shall, subject to a determination by
the Secretary, be deemed to be an employee of the Department
of Health and Human Services for purposes of claims under
sections 1346(b) and 2672 of title 28, United States Code,
for money damages for personal injury, including death,
resulting from performance of functions under such contract.
``(B) Exclusivity of remedy.--The remedy provided by
subparagraph (A) shall be exclusive of any other civil action
or proceeding by reason of the same subject matter against
the entity involved (person, officer, employee, or governing
board member) for any act or omission within the scope of the
Federal Tort Claims Act.
``(C) Recourse in case of gross misconduct or contract
violation.--
``(i) In general.--Should payment be made by the United
States to any claimant bringing a claim under this paragraph,
either by way of administrative determination, settlement, or
court judgment, the United States shall have, notwithstanding
any provision of State law, the right to recover against any
entity identified in subparagraph (B) for that portion of the
damages so awarded or paid, as well as interest and any costs
of litigation, resulting from the failure of any such entity
to carry out any obligation or responsibility assumed by such
entity under a contract with the United States or from any
grossly negligent or reckless conduct or intentional or
willful misconduct on the part of such entity.
``(ii) Venue.--The United States may maintain an action
under this subparagraph against such entity in the district
court of the United States in which such entity resides or
has its principal place of business.
``(3) Internal controls to be instituted.--
``(A) In general.--The Secretary shall institute
appropriate internal controls for contracts under this
subsection, including procedures for the Secretary to make a
determination of whether a person, or an officer, employee,
or governing board member of a person, is deemed to be an
employee of the Department of Health and Human Services
pursuant to paragraph (2).
``(B) Determination of employee status to be final.--A
determination by the Secretary under subparagraph (A) that a
person, or an officer, employee, or governing board member of
a person, is or is not deemed to be an employee of the
Department of Health and Human Services shall be final and
binding on the Secretary and the Attorney General and other
parties to any civil action or proceeding.
``(4) Number of personal services contracts limited.--The
number of experts and consultants whose personal services are
obtained under paragraph (1) shall not exceed 30 at any time.
``(e) Streamlined Personnel Authority.--
``(1) In general.--In addition to any other personnel
authorities, the Secretary may, as the Secretary determines
necessary to respond to pressing qualified countermeasure
research and development needs under this section, without
regard to those provisions of title 5, United States Code,
governing appointments in the competitive service, and
without regard to the provisions of chapter 51 and subchapter
III of chapter 53 of such title relating to classification
and General Schedule pay rates, appoint professional and
technical employees, not to exceed 30 such employees at any
time, to positions in the National Institutes of Health to
perform, administer, or support qualified countermeasure
research and development activities in carrying out this
section.
``(2) Limitations.--The authority provided for under
paragraph (1) shall be exercised in a manner that--
``(A) recruits and appoints individuals based solely on
their abilities, knowledge, and skills;
``(B) does not discriminate for or against any applicant
for employment on any basis described in section 2302(b)(1)
of title 5, United States Code;
``(C) does not allow an official to appoint an individual
who is a relative (as defined in section 3110(a)(3) of such
title) of such official;
``(D) does not discriminate for or against an individual
because of the exercise of any activity described in
paragraph (9) or (10) of section 2302(b) of such title; and
``(E) accords a preference, among equally qualified
persons, to persons who are preference eligibles (as defined
in section 2108(3) of such title).
``(3) Internal controls to be instituted.--The Secretary
shall institute appropriate internal controls for
appointments under this subsection.
``(f) Actions Committed to Agency Discretion.--Actions by
the Secretary under the authority of this section are
committed to agency discretion.''.
(b) Technical Amendment.--Section 481A of the Public Health
Service Act (42 U.S.C. 287a-2) is amended--
(1) in subsection (a)(1), by inserting ``or the Director of
the National Institute of Allergy

[[Page S5813]]

and Infectious Diseases'' after ``Director of the Center'';
(2) in subsection (c)--
(A) in paragraph (1), by inserting ``or the Director of the
National Institute of Allergy and Infectious Diseases'' after
``Director of the Center''; and
(B) in paragraph (2), in the matter preceding subparagraph
(A), by striking ``subsection (i)'' and inserting
``subsection (i)(1)'';
(3) in subsection (d), by inserting ``or the Director of
the National Institute of Allergy and Infectious Diseases''
after ``Director of the Center'';
(4) in subsection (e)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph (A), by inserting
``or the Director of the National Institute of Allergy and
Infectious Diseases'' after ``Director of the Center'';
(ii) in subparagraph (A), by inserting ``(or, in the case
of the Institute, 75 percent)'' after ``50 percent''; and
(iii) in subparagraph (B), by inserting ``(or, in the case
of the Institute, 75 percent)'' after ``40 percent'';
(B) in paragraph (2), by inserting ``or the Director of the
National Institute of Allergy and Infectious Diseases'' after
``Director of the Center''; and
(C) in paragraph (4), by inserting ``of the Center or the
Director of the National Institute of Allergy and Infectious
Diseases'' after ``Director'';
(5) in subsection (f)--
(A) in paragraph (1), by inserting ``in the case of an
award by the Director of the Center,'' before ``the
applicant''; and
(B) in paragraph (2), by inserting ``of the Center or the
Director of the National Institute of Allergy and Infectious
Diseases'' after ``Director''; and
(6) in subsection (i)--
(A) by striking ``Appropriations.--For the purpose of
carrying out this section,'' and inserting the following:
``Appropriations.--
``(1) Center.--For the purpose of carrying out this section
with respect to the Center,''; and
(B) by adding at the end the following:
``(2) National institute of allergy and infectious
diseases.--For the purpose of carrying out this section with
respect to the National Institute of Allergy and Infectious
Diseases, there are authorized to be appropriated such sums
as may be necessary for each of the fiscal years 2004 and
2005.''.
(c) Additional Authorizations of Appropriations.--Section
2106 of the Public Health Service Act (42 U.S.C. 300aa-6) is
amended--
(1) in subsection (a), by striking ``authorized to be
appropriated'' and all that follows and inserting the
following: ``authorized to be appropriated such sums as may
be necessary for each of the fiscal years 2004 and 2005.'';
and
(2) in subsection (b), by striking ``authorized to be
appropriated'' and all that follows and inserting the
following: ``authorized to be appropriated such sums as may
be necessary for each of the fiscal years 2004 and 2005.''.
(d) Technical Amendments.--Section 319F of the Public
Health Service Act (42 U.S.C. 247d-6) is amended--
(1) in subsection (a), by inserting ``the Secretary of
Homeland Security,'' after ``Management Agency,''; and
(2) in subsection (h)(4)(B), by striking ``to diagnose
conditions'' and inserting ``to treat, identify, or prevent
conditions''.
(e) Rule of Construction.--Nothing in this section has any
legal effect on sections 302(2), 302(4), 304(a), or 304(b) of
the Homeland Security Act of 2002.

SEC. 3. BIOMEDICAL COUNTERMEASURES PROCUREMENT.

(a) Additional Authority Regarding Strategic National
Stockpile.--
(1) Transfer of program.--Section 121 of the Public Health
Security and Bioterrorism Preparedness and Response Act of
2002 (116 Stat. 611; 42 U.S.C. 300hh-12) is transferred from
such Act to the Public Health Service Act, is redesignated as
section 319F-2, and is inserted after section 319F-1 of the
Public Health Service Act (as added by section 2 of this
Act).
(2) Additional authority.--Section 319F-2 of the Public
Health Service Act, as added by paragraph (1), is amended to
read as follows:

``SEC. 319F-2. STRATEGIC NATIONAL STOCKPILE.

``(a) Strategic National Stockpile.--
``(1) In general.--The Secretary, in coordination with the
Secretary of Homeland Security (referred to in this section
as the `Homeland Security Secretary'), shall maintain a
stockpile or stockpiles of drugs, vaccines and other
biological products, medical devices, and other supplies in
such numbers, types, and amounts as are determined by the
Secretary to be appropriate and practicable, taking into
account other available sources, to provide for the emergency
health security of the United States, including the emergency
health security of children and other vulnerable populations,
in the event of a bioterrorist attack or other public health
emergency.
``(2) Procedures.--The Secretary, in managing the stockpile
under paragraph (1), shall--
``(A) consult with the working group under section 319F(a);
``(B) ensure that adequate procedures are followed with
respect to such stockpile for inventory management and
accounting, and for the physical security of the stockpile;
``(C) in consultation with Federal, State, and local
officials, take into consideration the timing and location of
special events;
``(D) review and revise, as appropriate, the contents of
the stockpile on a regular basis to ensure that emerging
threats, advanced technologies, and new countermeasures are
adequately considered;
``(E) devise plans for the effective and timely supply-
chain management of the stockpile, in consultation with
appropriate Federal, State and local agencies, and the public
and private health care infrastructure;
``(F) deploy the stockpile as required by the Secretary of
Homeland Security to respond to an actual or potential
emergency;
``(G) deploy the stockpile at the discretion of the
Secretary to respond to an actual or potential public health
emergency or other situation in which deployment is necessary
to protect the public health or safety; and
``(H) ensure the adequate physical security of the
stockpile.
``(b) Smallpox Vaccine Development.--
``(1) In general.--The Secretary shall award contracts,
enter into cooperative agreements, or carry out such other
activities as may reasonably be required in order to ensure
that the stockpile under subsection (a) includes an amount of
vaccine against smallpox as determined by such Secretary to
be sufficient to meet the health security needs of the United
States.
``(2) Rule of construction.--Nothing in this section shall
be construed to limit the private distribution, purchase, or
sale of vaccines from sources other than the stockpile
described in subsection (a).
``(c) Additional Authority Regarding Procurement of Certain
Biomedical Countermeasures; Availability of Special Reserve
Fund.--
``(1) In general.--
``(A) Use of fund.--A security countermeasure may, in
accordance with this subsection, be procured with amounts in
the special reserve fund under paragraph (10).
``(B) Security countermeasure.--For purposes of this
subsection, the term `security countermeasure' means a drug
(as that term is defined by section 201(g)(1) of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 321(g)(1))),
biological product (as that term is defined by section 351(i)
of this Act (42 U.S.C. 262(i))), or device (as that term is
defined by section 201(h) of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 321(h))) that--
``(i)(I) -the Secretary determines to be a priority
(consistent with sections 302(2) and 304(a) of the Homeland
Security Act of 2002) to treat, identify, or prevent harm
from any biological, chemical, radiological, or nuclear agent
identified as a material threat under paragraph (2)(A)(ii),
or to treat, identify, or prevent harm from a condition that
may result in adverse health consequences or death and may be
caused by administering a drug, biological product, or device
against such an agent;
``(II) the Secretary determines under paragraph (2)(B)(ii)
to be a necessary countermeasure; and
``(III)(aa) is approved or cleared under chapter V of the
Federal Food, Drug, and Cosmetic Act or licensed under
section 351 of this Act; or
``(bb) is a countermeasure for which the Secretary
determines that sufficient and satisfactory clinical
experience or research data (including data, if available,
from pre-clinical and clinical trials) support a reasonable
conclusion that the countermeasure will qualify for approval
or licensing within eight years after the date of a
determination under paragraph (5); or
``(ii) is authorized for emergency use under section 564 of
the Federal Food, Drug, and Cosmetic Act.
``(2) Determination of material threats.--
``(A) Material threat.--The Homeland Security Secretary, in
consultation with the Secretary and the heads of other
agencies as appropriate, shall on an ongoing basis--
``(i) assess current and emerging threats of chemical,
biological, radiological, and nuclear agents; and
``(ii) determine which of such agents present a material
threat against the United States population sufficient to
affect national security.
``(B) Public health impact; necessary countermeasures.--The
Secretary shall on an ongoing basis--
``(i) assess the potential public health consequences for
the United States population of exposure to agents identified
under subparagraph (A)(ii); and
``(ii) determine, on the basis of such assessment, the
agents identified under subparagraph (A)(ii) for which
countermeasures are necessary to protect the public health.
``(C) Notice to congress.--The Secretary and the Homeland
Security Secretary shall promptly notify the designated
congressional committees (as defined in paragraph (10)) that
a determination has been made pursuant to subparagraph (A) or
(B).
``(D) Assuring access to threat information.--In making the
assessment and determination required under subparagraph (A),
the Homeland Security Secretary shall use all relevant
information to which such Secretary is entitled under section
202 of the Homeland Security Act of 2002, including but not
limited to information, regardless of its level of
classification, relating to current and emerging threats of
chemical, biological, radiological, and nuclear agents.
``(3) Assessment of availability and appropriateness of
countermeasures.--The

[[Page S5814]]

Secretary, in consultation with the Homeland Security
Secretary, shall assess on an ongoing basis the availability
and appropriateness of specific countermeasures to address
specific threats identified under paragraph (2).
``(4) Call for development of countermeasures; commitment
for recommendation for procurement.--
``(A) Proposal to the president.--If, pursuant to an
assessment under paragraph (3), the Homeland Security
Secretary and the Secretary make a determination that a
countermeasure would be appropriate but is either currently
unavailable for procurement as a security countermeasure or
is approved, licensed, or cleared only for alternative uses,
such Secretaries may jointly submit to the President a
proposal to--
``(i) issue a call for the development of such
countermeasure; and
``(ii) make a commitment that, upon the first development
of such countermeasure that meets the conditions for
procurement under paragraph (5), the Secretaries will, based
in part on information obtained pursuant to such call, make a
recommendation under paragraph (6) that the special reserve
fund under paragraph (10) be made available for the
procurement of such countermeasure.
``(B) Countermeasure specifications.--The Homeland Security
Secretary and the Secretary shall, to the extent practicable,
include in the proposal under subparagraph (A)--
``(i) estimated quantity of purchase (in the form of number
of doses or number of effective courses of treatments
regardless of dosage form);
``(ii) necessary measures of minimum safety and
effectiveness;
``(iii) estimated price for each dose or effective course
of treatment regardless of dosage form; and
``(iv) other information that may be necessary to encourage
and facilitate research, development, and manufacture of the
countermeasure or to provide specifications for the
countermeasure.
``(C) Presidential approval.--If the President approves a
proposal under subparagraph (A), the Homeland Security
Secretary and the Secretary shall make known to persons who
may respond to a call for the countermeasure involved--
``(i) the call for the countermeasure;
``(ii) specifications for the countermeasure under
subparagraph (B); and
``(iii) the commitment described in subparagraph (A)(ii).
``(5) Secretary's determination of countermeasures
appropriate for funding from special reserve fund.--
``(A) In general.--The Secretary, in accordance with the
provisions of this paragraph, shall identify specific
security countermeasures that the Secretary determines, in
consultation with the Homeland Security Secretary, to be
appropriate for inclusion in the stockpile under subsection
(a) pursuant to procurements made with amounts in the special
reserve fund under paragraph (10) (referred to in this
subsection individually as a `procurement under this
subsection').
``(B) Requirements.--In making a determination under
subparagraph (A) with respect to a security countermeasure,
the Secretary shall determine and consider the following:
``(i) The quantities of the product that will be needed to
meet the needs of the stockpile.
``(ii) The feasibility of production and delivery within
eight years of sufficient quantities of the product.
``(iii) Whether there is a lack of a significant commercial
market for the product at the time of procurement, other than
as a security countermeasure.
``(6) Recommendation for president's approval.--
``(A) Recommendation for procurement.--In the case of a
security countermeasure that the Secretary has, in accordance
with paragraphs (3) and (5), determined to be appropriate for
procurement under this subsection, the Homeland Security
Secretary and the Secretary shall jointly submit to the
President, in coordination with the Director of the Office of
Management and Budget, a recommendation that the special
reserve fund under paragraph (10) be made available for the
procurement of such countermeasure.
``(B) Presidential approval.--The special reserve fund
under paragraph (10) is available for a procurement of a
security countermeasure only if the President has approved a
recommendation under subparagraph (A) regarding the
countermeasure.
``(C) Notice to designated congressional committees.--The
Secretary and the Homeland Security Secretary shall notify
the designated congressional committees of each decision of
the President to approve a recommendation under subparagraph
(A). Such notice shall include an explanation of the decision
to make available the special reserve fund under paragraph
(10) for procurement of such a countermeasure, including,
where available, the number of, nature of, and other
information concerning potential suppliers of such
countermeasure, and whether other potential suppliers of the
same or similar countermeasures were considered and rejected
for procurement under this section and the reasons therefor.
``(D) Subsequent specific countermeasures.--Procurement
under this subsection of a security countermeasure for a
particular purpose does not preclude the subsequent
procurement under this subsection of any other security
countermeasure for such purpose if the Secretary has
determined under paragraph (5)(A) that such countermeasure is
appropriate for inclusion in the stockpile and if, as
determined by the Secretary, such countermeasure provides
improved safety or effectiveness, or for other reasons
enhances preparedness to respond to threats of use of a
biological, chemical, radiological, or nuclear agent. Such a
determination by the Secretary is committed to agency
discretion.
``(E) Rule of construction.--Recommendations and approvals
under this paragraph apply solely to determinations that the
special reserve fund under paragraph (10) will be made
available for a procurement of a security countermeasure, and
not to the substance of contracts for such procurement or
other matters relating to awards of such contracts.
``(7) Procurement.--
``(A) In general.--For purposes of a procurement under this
subsection that is approved by the President under paragraph
(6), the Homeland Security Secretary and the Secretary shall
have responsibilities in accordance with subparagraphs (B)
and (C).
``(B) Interagency agreement; costs.--
``(i) Interagency agreement.--The Homeland Security
Secretary shall enter into an agreement with the Secretary
for procurement of a security countermeasure in accordance
with the provisions of this paragraph. The special reserve
fund under paragraph (10) shall be available for payments
made by the Secretary to a vendor for such procurement.
``(ii) Other costs.--The actual costs to the Secretary
under this section, other than the costs described in clause
(i), shall be paid from the appropriation provided for under
subsection (f)(1).
``(C) Procurement.--
``(i) In general.--The Secretary shall be responsible for--

``(I) arranging for procurement of a security
countermeasure, including negotiating terms (including
quantity, production schedule, and price) of, and entering
into, contracts and cooperative agreements, and for carrying
out such other activities as may reasonably be required, in
accordance with the provisions of this subparagraph; and
``(II) promulgating such regulations as the Secretary
determines necessary to implement the provisions of this
subsection.

``(ii) Contract terms.--A contract for procurements under
this subsection shall (or, as specified below, may) include
the following terms:

``(I) Payment conditioned on delivery.--The contract shall
provide that no payment may be made until delivery has been
made of a portion, acceptable to the Secretary, of the total
number of units contracted for, except that, notwithstanding
any other provision of law, the contract may provide that, if
the Secretary determines (in the Secretary's discretion) that
an advance payment is necessary to ensure success of a
project, the Secretary may pay an amount, not to exceed 10
percent of the contract amount, in advance of delivery. The
contract shall provide that such advance payment is required
to be repaid if there is a failure to perform by the vendor
under the contract. Nothing in this subclause may be
construed as affecting rights of vendors under provisions of
law or regulation (including the Federal Acquisition
Regulation) relating to termination of contracts for the
convenience of the Government.
``(II) Discounted payment.--The contract may provide for a
discounted price per unit of a product that is not licensed,
cleared, or approved as described in paragraph
(1)(B)(i)(III)(aa) at the time of delivery, and may provide
for payment of an additional amount per unit if the product
becomes so licensed, cleared, or approved before the
expiration date of the contract (including an additional
amount per unit of product delivered before the effective
date of such licensing, clearance, or approval).
``(III) Contract duration.--The contract shall be for a
period not to exceed five years, except that, in first
awarding the contract, the Secretary may provide for a longer
duration, not exceeding eight years, if the Secretary
determines that complexities or other difficulties in
performance under the contract justify such a period. The
contract shall be renewable for additional periods, none of
which shall exceed five years.
``(IV) Storage by vendor.--The contract may provide that
the vendor will provide storage for stocks of a product
delivered to the ownership of the Federal Government under
the contract, for such period and under such terms and
conditions as the Secretary may specify, and in such case
amounts from the special reserve fund under paragraph (10)
shall be available for costs of shipping, handling, storage,
and related costs for such product.
``(V) Product approval.--The contract shall provide that
the vendor seek approval, clearance, or licensing of the
product from the Secretary; for a timetable for the
development of data and other information to support such
approval, clearance, or licensing; and that the Secretary may
waive part or all of this contract term on request of the
vendor or on the initiative of the Secretary.
``(VI) Non-stockpile transfers of security
countermeasures.--The contract shall provide that the vendor
will comply with all applicable export-related controls with
respect to such countermeasure.

``(iii) Availability of simplified acquisition
procedures.--

[[Page S5815]]

``(I) In general.--If the Secretary determines that there
is a pressing need for a procurement of a specific
countermeasure, the amount of the procurement under this
subsection shall be deemed to be below the threshold amount
specified in section 4(11) of the Office of Federal
Procurement Policy Act (41 U.S.C. 403(11)), for purposes of
application to such procurement, pursuant to section 302A(a)
of the Federal Property and Administrative Services Act of
1949 (41 U.S.C. 252a(a)), of--

``(aa) section 303(g)(1)(A) of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253(g)(1)(A))
and its implementing regulations; and
``(bb) section 302A(b) of such Act (41 U.S.C. 252a(b)) and
its implementing regulations.

``(II) Application of certain provisions.--Notwithstanding
subclause (I) and the provision of law and regulations
referred to in such clause, each of the following provisions
shall apply to procurements described in this clause to the
same extent that such provisions would apply to such
procurements in the absence of subclause (I):

``(aa) Chapter 37 of title 40, United States Code (relating
to contract work hours and safety standards).
``(bb) Subsections (a) and (b) of section 7 of the Anti-
Kickback Act of 1986 (41 U.S.C. 57(a) and (b)).
``(cc) Section 304C of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 254d)
(relating to the examination of contractor records).
``(dd) Section 3131 of title 40, United States Code
(relating to bonds of contractors of public buildings or
works).
``(ee) Subsection (a) of section 304 of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C.
254(a)) (relating to contingent fees to middlemen).
``(ff) Section 6002 of the Solid Waste Disposal Act (42
U.S.C. 6962).
``(gg) Section 1354 of title 31, United States Code
(relating to the limitation on the use of appropriated funds
for contracts with entities not meeting veterans employment
reporting requirements).

``(III) Internal controls to be established.--The Secretary
shall establish appropriate internal controls for
procurements made under this clause, including requirements
with respect to documentation of the justification for the
use of the authority provided under this paragraph with
respect to the procurement involved.
``(IV) Authority to limit competition.--In conducting a
procurement under this subparagraph, the Secretary may not
use the authority provided for under subclause (I) to conduct
a procurement on a basis other than full and open competition
unless the Secretary determines that the mission of the
BioShield Program under the Project BioShield Act of 2004
would be seriously impaired without such a limitation.

``(iv) Procedures other than full and open competition.--

``(I) In general.--In using the authority provided in
section 303(c)(1) of title III of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253(c)(1)) to
use procedures other than competitive procedures in the case
of a procurement under this subsection, the phrase `available
from only one responsible source' in such section 303(c)(1)
shall be deemed to mean `available from only one responsible
source or only from a limited number of responsible sources'.
``(II) Relation to other authorities.--The authority under
subclause (I) is in addition to any other authority to use
procedures other than competitive procedures.
``(III) Applicable government-wide regulations.--The
Secretary shall implement this clause in accordance with
government-wide regulations implementing such section
303(c)(1) (including requirements that offers be solicited
from as many potential sources as is practicable under the
circumstances, that required notices be published, and that
submitted offers be considered), as such regulations apply to
procurements for which an agency has authority to use
procedures other than competitive procedures when the
property or services needed by the agency are available from
only one responsible source or only from a limited number of
responsible sources and no other type of property or services
will satisfy the needs of the agency.

``(v) Premium provision in multiple award contracts.--

``(I) In general.--If, under this subsection, the Secretary
enters into contracts with more than one vendor to procure a
security countermeasure, such Secretary may, notwithstanding
any other provision of law, include in each of such contracts
a provision that--

``(aa) identifies an increment of the total quantity of
security countermeasure required, whether by percentage or by
numbers of units; and
``(bb) promises to pay one or more specified premiums based
on the priority of such vendors' production and delivery of
the increment identified under item (aa), in accordance with
the terms and conditions of the contract.

``(II) Determination of government's requirement not
reviewable.--If the Secretary includes in each of a set of
contracts a provision as described in subclause (I), such
Secretary's determination of the total quantity of security
countermeasure required, and any amendment of such
determination, is committed to agency discretion.

``(vi) Extension of closing date for receipt of proposals
not reviewable.--A decision by the Secretary to extend the
closing date for receipt of proposals for a procurement under
this subsection is committed to agency discretion.
``(vii) Limiting competition to sources responding to
request for information.--In conducting a procurement under
this subsection, the Secretary may exclude a source that has
not responded to a request for information under section
303A(a)(1)(B) of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 253a(a)(1)(B)) if such
request has given notice that the Secretary may so exclude
such a source.
``(8) Interagency cooperation.--
``(A) In general.--In carrying out activities under this
section, the Homeland Security Secretary and the Secretary
are authorized, subject to subparagraph (B), to enter into
interagency agreements and other collaborative undertakings
with other agencies of the United States Government.
``(B) Limitation.--An agreement or undertaking under this
paragraph shall not authorize another agency to exercise the
authorities provided by this section to the Homeland Security
Secretary or to the Secretary.
``(9) Restrictions on use of funds.--Amounts in the special
reserve fund under paragraph (10) shall not be used to pay--
``(A) costs for the purchase of vaccines under procurement
contracts entered into before the date of the enactment of
the Project BioShield Act of 2004; or
``(B) costs other than payments made by the Secretary to a
vendor for a procurement of a security countermeasure under
paragraph (7).
``(10) Definitions.--
``(A) Special reserve fund.--For purposes of this
subsection, the term `special reserve fund' has the meaning
given such term in section 510 of the Homeland Security Act
of 2002.
``(B) Designated congressional committees.--For purposes of
this section, the term `designated congressional committees'
means the following committees of the Congress:
``(i) In the House of Representatives: the Committee on
Energy and Commerce, the Committee on Appropriations, the
Committee on Government Reform, and the Select Committee on
Homeland Security (or any successor to the Select Committee).
``(ii) In the Senate: the appropriate committees.
``(d) Disclosures.--No Federal agency shall disclose under
section 552 of title 5, United States Code, any information
identifying the location at which materials in the stockpile
under subsection (a) are stored.
``(e) Definition.--For purposes of subsection (a), the term
`stockpile' includes--
``(1) a physical accumulation (at one or more locations) of
the supplies described in subsection (a); or
``(2) a contractual agreement between the Secretary and a
vendor or vendors under which such vendor or vendors agree to
provide to such Secretary supplies described in subsection
(a).
``(f) Authorization of Appropriations.--
``(1) Strategic national stockpile.--For the purpose of
carrying out subsection (a), there are authorized to be
appropriated $640,000,000 for fiscal year 2002, and such sums
as may be necessary for each of fiscal years 2003 through
2006. Such authorization is in addition to amounts in the
special reserve fund referred to in subsection (c)(10)(A).
``(2) Smallpox vaccine development.--For the purpose of
carrying out subsection (b), there are authorized to be
appropriated $509,000,000 for fiscal year 2002, and such sums
as may be necessary for each of fiscal years 2003 through
2006.''.
(b) Amendments to Homeland Security Act of 2002.--Title V
of the Homeland Security Act of 2002 (116 Stat. 2212; 6
U.S.C. 311 et seq.) is amended--
(1) in section 502(3) (6 U.S.C. 312(3))--
(A) in subparagraph (B), by striking ``the Strategic
National Stockpile,''; and
(B) in subparagraph (D), by inserting ``, including
requiring deployment of the Strategic National Stockpile,''
after ``resources''; and
(2) by adding at the end the following:

``SEC. 510. PROCUREMENT OF SECURITY COUNTERMEASURES FOR
STRATEGIC NATIONAL STOCKPILE.

``(a) Authorization of Appropriations.--For the procurement
of security countermeasures under section 319F-2(c) of the
Public Health Service Act (referred to in this section as the
`security countermeasures program'), there is authorized to
be appropriated up to $5,593,000,000 for the fiscal years
2004 through 2013. Of the amounts appropriated under the
preceding sentence, not to exceed $3,418,000,000 may be
obligated during the fiscal years 2004 through 2008, of which
not to exceed $890,000,000 may be obligated during fiscal
year 2004.
``(b) Special Reserve Fund.--For purposes of the security
countermeasures program, the term `special reserve fund'
means the `Biodefense Countermeasures' appropriations account
or any other appropriation made under subsection (a).
``(c) Availability.--Amounts appropriated under subsection
(a) become available for a procurement under the security
countermeasures program only upon the approval by the
President of such availability for the procurement in
accordance with paragraph (6)(B) of such program.
``(d) Related Authorizations of Appropriations.--

[[Page S5816]]

``(1) Threat assessment capabilities.--For the purpose of
carrying out the responsibilities of the Secretary for terror
threat assessment under the security countermeasures program,
there are authorized to be appropriated such sums as may be
necessary for each of the fiscal years 2004 through 2006, for
the hiring of professional personnel within the Directorate
for Information Analysis and Infrastructure Protection, who
shall be analysts responsible for chemical, biological,
radiological, and nuclear threat assessment (including but
not limited to analysis of chemical, biological,
radiological, and nuclear agents, the means by which such
agents could be weaponized or used in a terrorist attack, and
the capabilities, plans, and intentions of terrorists and
other non-state actors who may have or acquire such agents).
All such analysts shall meet the applicable standards and
qualifications for the performance of intelligence activities
promulgated by the Director of Central Intelligence pursuant
to section 104 of the National Security Act of 1947.
``(2) Intelligence sharing infrastructure.--For the purpose
of carrying out the acquisition and deployment of secure
facilities (including information technology and physical
infrastructure, whether mobile and temporary, or permanent)
sufficient to permit the Secretary to receive, not later than
180 days after the date of enactment of the Project BioShield
Act of 2004, all classified information and products to which
the Under Secretary for Information Analysis and
Infrastructure Protection is entitled under subtitle A of
title II, there are authorized to be appropriated such sums
as may be necessary for each of the fiscal years 2004 through
2006.''.
(c) Stockpile Functions Transferred.--
(1) In general.--Except as provided in paragraph (2), there
shall be transferred to the Secretary of Health and Human
Services the functions, personnel, assets, unexpended
balances, and liabilities of the Strategic National
Stockpile, including the functions of the Secretary of
Homeland Security relating thereto.
(2) Exceptions.--
(A) Functions.--The transfer of functions pursuant to
paragraph (1) shall not include such functions as are
explicitly assigned to the Secretary of Homeland Security by
this Act (including the amendments made by this Act).
(B) Assets and unexpended balances.--The transfer of assets
and unexpended balances pursuant to paragraph (1) shall not
include the funds appropriated under the heading ``biodefense
countermeasures'' in the Department of Homeland Security
Appropriations Act, 2004 (Public law 108-90).
(3) Conforming amendment.--Section 503 of the Homeland
Security Act of 2002 (6 U.S.C. 313) is amended by striking
paragraph (6).

SEC. 4. AUTHORIZATION FOR MEDICAL PRODUCTS FOR USE IN
EMERGENCIES.

(a) In General.--Section 564 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 360bbb-3) is amended to read as
follows:

``SEC. 564. AUTHORIZATION FOR MEDICAL PRODUCTS FOR USE IN
EMERGENCIES.

``(a) In General.--
``(1) Emergency uses.--Notwithstanding sections 505,
510(k), and 515 of this Act and section 351 of the Public
Health Service Act, and subject to the provisions of this
section, the Secretary may authorize the introduction into
interstate commerce, during the effective period of a
declaration under subsection (b), of a drug, device, or
biological product intended for use in an actual or potential
emergency (referred to in this section as an `emergency
use').
``(2) Approval status of product.--An authorization under
paragraph (1) may authorize an emergency use of a product
that--
``(A) is not approved, licensed, or cleared for commercial
distribution under a provision of law referred to in such
paragraph (referred to in this section as an `unapproved
product'); or
``(B) is approved, licensed, or cleared under such a
provision, but which use is not under such provision an
approved, licensed, or cleared use of the product (referred
to in this section as an `unapproved use of an approved
product').
``(3) Relation to other uses.--An emergency use authorized
under paragraph (1) for a product is in addition to any other
use that is authorized for the product under a provision of
law referred to in such paragraph.
``(4) Definitions.--For purposes of this section:
``(A) The term `biological product' has the meaning given
such term in section 351 of the Public Health Service Act.
``(B) The term `emergency use' has the meaning indicated
for such term in paragraph (1).
``(C) The term `product' means a drug, device, or
biological product.
``(D) The term `unapproved product' has the meaning
indicated for such term in paragraph (2)(A).
``(E) The term `unapproved use of an approved product' has
the meaning indicated for such term in paragraph (2)(B).
``(b) Declaration of Emergency.--
``(1) In general.--The Secretary may declare an emergency
justifying the authorization under this subsection for a
product on the basis of--
``(A) a determination by the Secretary of Homeland Security
that there is a domestic emergency, or a significant
potential for a domestic emergency, involving a heightened
risk of attack with a specified biological, chemical,
radiological, or nuclear agent or agents;
``(B) a determination by the Secretary of Defense that
there is a military emergency, or a significant potential for
a military emergency, involving a heightened risk to United
States military forces of attack with a specified biological,
chemical, radiological, or nuclear agent or agents; or
``(C) a determination by the Secretary of a public health
emergency under section 319 of the Public Health Service Act
that affects, or has a significant potential to affect,
national security, and that involves a specified biological,
chemical, radiological, or nuclear agent or agents, or a
specified disease or condition that may be attributable to
such agent or agents.
``(2) Termination of declaration.--
``(A) In general.--A declaration under this subsection
shall terminate upon the earlier of--
``(i) a determination by the Secretary, in consultation as
appropriate with the Secretary of Homeland Security or the
Secretary of Defense, that the circumstances described in
paragraph (1) have ceased to exist; or
``(ii) the expiration of the one-year period beginning on
the date on which the declaration is made.
``(B) Renewal.--Notwithstanding subparagraph (A), the
Secretary may renew a declaration under this subsection, and
this paragraph shall apply to any such renewal.
``(C) Disposition of product.--If an authorization under
this section with respect to an unapproved product ceases to
be effective as a result of a termination under subparagraph
(A) of this paragraph, the Secretary shall consult with the
manufacturer of such product with respect to the appropriate
disposition of the product.
``(3) Advance notice of termination.--The Secretary shall
provide advance notice that a declaration under this
subsection will be terminated. The period of advance notice
shall be a period reasonably determined to provide--
``(A) in the case of an unapproved product, a sufficient
period for disposition of the product, including the return
of such product (except such quantities of product as are
necessary to provide for continued use consistent with
subsection (f)(2)) to the manufacturer (in the case of a
manufacturer that chooses to have such product returned); and
``(B) in the case of an unapproved use of an approved
product, a sufficient period for the disposition of any
labeling, or any information under subsection (e)(2)(B)(ii),
as the case may be, that was provided with respect to the
emergency use involved.
``(4) Publication.--The Secretary shall promptly publish in
the Federal Register each declaration, determination, advance
notice of termination, and renewal under this subsection.
``(c) Criteria for Issuance of Authorization.--The
Secretary may issue an authorization under this section with
respect to the emergency use of a product only if, after
consultation with the Director of the National Institutes of
Health and the Director of the Centers for Disease Control
and Prevention (to the extent feasible and appropriate given
the circumstances of the emergency involved), the Secretary
concludes--
``(1) that an agent specified in a declaration under
subsection (b) can cause a serious or life-threatening
disease or condition;
``(2) that, based on the totality of scientific evidence
available to the Secretary, including data from adequate and
well-controlled clinical trials, if available, it is
reasonable to believe that--
``(A) the product may be effective in diagnosing, treating,
or preventing--
``(i) such disease or condition; or
``(ii) a serious or life-threatening disease or condition
caused by a product authorized under this section, approved
or cleared under this Act, or licensed under section 351 of
the Public Health Service Act, for diagnosing, treating, or
preventing such a disease or condition caused by such an
agent; and
``(B) the known and potential benefits of the product, when
used to diagnose, prevent, or treat such disease or
condition, outweigh the known and potential risks of the
product;
``(3) that there is no adequate, approved, and available
alternative to the product for diagnosing, preventing, or
treating such disease or condition; and
``(4) that such other criteria as the Secretary may by
regulation prescribe are satisfied.
``(d) Scope of Authorization.--An authorization of a
product under this section shall state--
``(1) each disease or condition that the product may be
used to diagnose, prevent, or treat within the scope of the
authorization;
``(2) the Secretary's conclusions, made under subsection
(c)(2)(B), that the known and potential benefits of the
product, when used to diagnose, prevent, or treat such
disease or condition, outweigh the known and potential risks
of the product; and
``(3) the Secretary's conclusions, made under subsection
(c), concerning the safety and potential effectiveness of the
product in diagnosing, preventing, or treating such diseases
or conditions, including an assessment of the available
scientific evidence.
``(e) Conditions of Authorization.--
``(1) Unapproved product.--
``(A) Required conditions.--With respect to the emergency
use of an unapproved product, the Secretary, to the extent
practicable

[[Page S5817]]

given the circumstances of the emergency, shall, for a person
who carries out any activity for which the authorization is
issued, establish such conditions on an authorization under
this section as the Secretary finds necessary or appropriate
to protect the public health, including the following:
``(i) Appropriate conditions designed to ensure that health
care professionals administering the product are informed--

``(I) that the Secretary has authorized the emergency use
of the product;
``(II) of the significant known and potential benefits and
risks of the emergency use of the product, and of the extent
to which such benefits and risks are unknown; and
``(III) of the alternatives to the product that are
available, and of their benefits and risks.

``(ii) Appropriate conditions designed to ensure that
individuals to whom the product is administered are
informed--

``(I) that the Secretary has authorized the emergency use
of the product;
``(II) of the significant known and potential benefits and
risks of such use, and of the extent to which such benefits
and risks are unknown; and
``(III) of the option to accept or refuse administration of
the product, of the consequences, if any, of refusing
administration of the product, and of the alternatives to the
product that are available and of their benefits and risks.

``(iii) Appropriate conditions for the monitoring and
reporting of adverse events associated with the emergency use
of the product.
``(iv) For manufacturers of the product, appropriate
conditions concerning recordkeeping and reporting, including
records access by the Secretary, with respect to the
emergency use of the product.
``(B) Authority for additional conditions.--With respect to
the emergency use of an unapproved product, the Secretary
may, for a person who carries out any activity for which the
authorization is issued, establish such conditions on an
authorization under this section as the Secretary finds
necessary or appropriate to protect the public health,
including the following:
``(i) Appropriate conditions on which entities may
distribute the product with respect to the emergency use of
the product (including limitation to distribution by
government entities), and on how distribution is to be
performed.
``(ii) Appropriate conditions on who may administer the
product with respect to the emergency use of the product, and
on the categories of individuals to whom, and the
circumstances under which, the product may be administered
with respect to such use.
``(iii) Appropriate conditions with respect to the
collection and analysis of information, during the period
when the authorization is in effect, concerning the safety
and effectiveness of the product with respect to the
emergency use of such product.<plus-minus>
``(iv) For persons other than manufacturers of the product,
appropriate conditions concerning recordkeeping and
reporting, including records access by the Secretary, with
respect to the emergency use of the product.
``(2) Unapproved use.--With respect to the emergency use of
a product that is an unapproved use of an approved product:
``(A) For a manufacturer of the product who carries out any
activity for which the authorization is issued, the Secretary
shall, to the extent practicable given the circumstances of
the emergency, establish conditions described in clauses (i)
and (ii) of paragraph (1)(A), and may establish conditions
described in clauses (iii) and (iv) of such paragraph.
``(B)(i) If the authorization under this section regarding
the emergency use authorizes a change in the labeling of the
product, but the manufacturer of the product chooses not to
make such change, such authorization may not authorize
distributors of the product or any other person to alter or
obscure the labeling provided by the manufacturer.
``(ii) In the circumstances described in clause (i), for a
person who does not manufacture the product and who chooses
to act under this clause, an authorization under this section
regarding the emergency use shall, to the extent practicable
given the circumstances of the emergency, authorize such
person to provide appropriate information with respect to
such product in addition to the labeling provided by the
manufacturer, subject to compliance with clause (i). While
the authorization under this section is effective, such
additional information shall not be considered labeling for
purposes of section 502.
``(C) The Secretary may establish with respect to the
distribution and administration of the product for the
unapproved use conditions no more restrictive than those
established by the Secretary with respect to the distribution
and administration of the product for the approved use.
``(3) Good manufacturing practice.--With respect to the
emergency use of a product for which an authorization under
this section is issued (whether an unapproved product or an
unapproved use of an approved product), the Secretary may
waive or limit, to the extent appropriate given the
circumstances of the emergency, requirements regarding
current good manufacturing practice otherwise applicable to
the manufacture, processing, packing, or holding of products
subject to regulation under this Act, including such
requirements established under section 501.
``(4) Advertising.--The Secretary may establish conditions
on advertisements and other promotional descriptive printed
matter that relate to the emergency use of a product for
which an authorization under this section is issued (whether
an unapproved product or an unapproved use of an approved
product), including, as appropriate--
``(A) with respect to drugs and biological products,
requirements applicable to prescription drugs pursuant to
section 502(n); or
``(B) with respect to devices, requirements applicable to
restricted devices pursuant to section 502(r).
``(f) Duration of Authorization.--
``(1) In general.--Except as provided in paragraph (2), an
authorization under this section shall be effective until the
earlier of the termination of the declaration under
subsection (b) or a revocation under subsection (g).
``(2) Continued use after end of effective period.--
Notwithstanding the termination of the declaration under
subsection (b) or a revocation under subsection (g), an
authorization shall continue to be effective to provide for
continued use of an unapproved product with respect to a
patient to whom it was administered during the period
described by paragraph (1), to the extent found necessary by
such patient's attending physician.
``(g) Revocation of Authorization.--
``(1) Review.--The Secretary shall periodically review the
circumstances and the appropriateness of an authorization
under this section.
``(2) Revocation.--The Secretary may revoke an
authorization under this section if the criteria under
subsection (c) for issuance of such authorization are no
longer met or other circumstances make such revocation
appropriate to protect the public health or safety.
``(h) Publication; Confidential Information.--
``(1) Publication.--The Secretary shall promptly publish in
the Federal Register a notice of each authorization, and each
termination or revocation of an authorization under this
section, and an explanation of the reasons therefor (which
may include a summary of data or information that has been
submitted to the Secretary in an application under section
505(i) or section 520(g), even if such summary may indirectly
reveal the existence of such application).
``(2) Confidential information.--Nothing in this section
alters or amends section 1905 of title 18, United States
Code, or section 552(b)(4) of title 5 of such Code.
``(i) Actions Committed to Agency Discretion.--Actions
under the authority of this section by the Secretary, by the
Secretary of Defense, or by the Secretary of Homeland
Security are committed to agency discretion.
``(j) Rules of Construction.--The following applies with
respect to this section:
``(1) Nothing in this section impairs the authority of the
President as Commander in Chief of the Armed Forces of the
United States under article II, section 2 of the United
States Constitution.
``(2) Nothing in this section impairs the authority of the
Secretary of Defense with respect to the Department of
Defense, including the armed forces, under other provisions
of Federal law.
``(3) Nothing in this section (including any exercise of
authority by a manufacturer under subsection (e)(2)) impairs
the authority of the United States to use or manage
quantities of a product that are owned or controlled by the
United States (including quantities in the stockpile
maintained under section 319F-2 of the Public Health Service
Act).
``(k) Relation to Other Provisions.--If a product is the
subject of an authorization under this section, the use of
such product within the scope of the authorization shall not
be considered to constitute a clinical investigation for
purposes of section 505(i), section 520(g), or any other
provision of this Act or section 351 of the Public Health
Service Act.
``(l) Option to Carry Out Authorized Activities.--Nothing
in this section provides the Secretary any authority to
require any person to carry out any activity that becomes
lawful pursuant to an authorization under this section, and
no person is required to inform the Secretary that the person
will not be carrying out such activity, except that a
manufacturer of a sole-source unapproved product authorized
for emergency use shall report to the Secretary within a
reasonable period of time after the issuance by the Secretary
of such authorization if such manufacturer does not intend to
carry out any activity under the authorization. This section
only has legal effect on a person who carries out an activity
for which an authorization under this section is issued. This
section does not modify or affect activities carried out
pursuant to other provisions of this Act or section 351 of
the Public Health Service Act. Nothing in this subsection may
be construed as restricting the Secretary from imposing
conditions on persons who carry out any activity pursuant to
an authorization under this section.''.
(b) Repeal of Termination Provision.--Subsection (d) of
section 1603 of the National Defense Authorization Act for
Fiscal Year 2004 (10 U.S.C. 1107a note) is repealed.

SEC. 5. REPORTS REGARDING AUTHORITIES UNDER THIS ACT.

(a) Secretary of Health and Human Services.--
(1) Annual reports on particular exercises of authority.--

[[Page S5818]]

(A) Relevant authorities.--The Secretary of Health and
Human Services (referred to in this subsection as the
``Secretary'') shall submit reports in accordance with
subparagraph (B) regarding the exercise of authority under
the following provisions of law:
(i) With respect to section 319F-1 of the Public Health
Service Act (as added by section 2 of this Act):

(I) Subsection (b)(1) (relating to increased simplified
acquisition threshold).
(II) Subsection (b)(2) (relating to procedures other than
full and open competition).
(III) Subsection (c) (relating to expedited peer review
procedures).

(ii) With respect to section 319F-2 of the Public Health
Service Act (as added by section 3 of this Act):

(I) Subsection (c)(7)(C)(iii) (relating to simplified
acquisition procedures).
(II) Subsection (c)(7)(C)(iv) (relating to procedures other
than full and open competition).
(III) Subsection (c)(7)(C)(v) (relating to premium
provision in multiple-award contracts).

(iii) With respect to section 564 of the Federal Food,
Drug, and Cosmetic Act (as added by section 4 of this Act):

(I) Subsection (a)(1) (relating to emergency uses of
certain drugs and devices).
(II) Subsection (b)(1) (relating to a declaration of an
emergency).
(III) Subsection (e) (relating to conditions on
authorization).

(B) Contents of reports.--The Secretary shall annually
submit to the designated congressional committees a report
that summarizes--
(i) the particular actions that were taken under the
authorities specified in subparagraph (A), including, as
applicable, the identification of the threat agent,
emergency, or the biomedical countermeasure with respect to
which the authority was used;
(ii) the reasons underlying the decision to use such
authorities, including, as applicable, the options that were
considered and rejected with respect to the use of such
authorities;
(iii) the number of, nature of, and other information
concerning the persons and entities that received a grant,
cooperative agreement, or contract pursuant to the use of
such authorities, and the persons and entities that were
considered and rejected for such a grant, cooperative
agreement, or contract, except that the report need not
disclose the identity of any such person or entity; and
(iv) whether, with respect to each procurement that is
approved by the President under section 319F-2(c)(6) of the
Public Health Service Act (as added by section 3 of this
Act), a contract was entered into within one year after such
approval by the President.
(2) Annual summaries regarding certain activity.--The
Secretary shall annually submit to the designated
congressional committees a report that summarizes the
activity undertaken pursuant to the following authorities
under section 319F-1 of the Public Health Service Act (as
added by section 2 of this Act):
(A) Subsection (b)(3) (relating to increased micropurchase
threshold).
(B) Subsection (d) (relating to authority for personal
services contracts).
(C) Subsection (e) (relating to streamlined personnel
authority).

With respect to subparagraph (B), the report shall include a
provision specifying, for the one-year period for which the
report is submitted, the number of persons who were paid
amounts greater than $100,000 and the number of persons who
were paid amounts between $50,000 and $100,000.
(3) Report on additional barriers to procurement of
security countermeasures.--Not later than one year after the
date of the enactment of this Act, the Secretary, in
consultation with the Secretary of Homeland Security, shall
report to the designated congressional committees any
potential barriers to the procurement of security
countermeasures that have not been addressed by this Act.
(b) General Accounting Office Review.--
(1) In general.--Four years after the date of the enactment
of this Act, the Comptroller General of the United States
shall initiate a study--
(A)(i) to review the Secretary of Health and Human
Services' utilization of the authorities granted under this
Act with respect to simplified acquisition procedures,
procedures other than full and open competition, increased
micropurchase thresholds, personal services contracts,
streamlined personnel authority, and the purchase of security
countermeasures under the special reserve fund; and
(ii) to make recommendations to improve the utilization or
effectiveness of such authorities in the future;
(B)(i) to review and assess the adequacy of the internal
controls instituted by such Secretary with respect to such
authorities, where required by this Act; and
(ii) to make recommendations to improve the effectiveness
of such controls;
(C)(i) to review such Secretary's utilization of the
authority granted under this Act to authorize an emergency
use of a biomedical countermeasure, including the means by
which the Secretary determines whether and under what
conditions any such authorizations should be granted and the
benefits and adverse impacts, if any, resulting from the use
of such authority; and
(ii) to make recommendations to improve the utilization or
effectiveness of such authority and to enhance protection of
the public health;
(D) to identify any purchases or procurements that would
not have been made or would have been significantly delayed
except for the authorities described in subparagraph (A)(i);
and
(E)(i) to determine whether and to what extent activities
undertaken pursuant to the biomedical countermeasure research
and development authorities established in this Act have
enhanced the development of biomedical countermeasures
affecting national security; and
(ii) to make recommendations to improve the ability of the
Secretary to carry out these activities in the future.
(2) Additional provisions regarding determination on
development of biomedical countermeasures affecting national
security.--In the report under paragraph (1), the
determination under subparagraph (E) of such paragraph shall
include--
(A) the Comptroller General's assessment of the current
availability of countermeasures to address threats identified
by the Secretary of Homeland Security;
(B) the Comptroller General's assessment of the extent to
which programs and activities under this Act will reduce any
gap between the threat and the availability of
countermeasures to an acceptable level of risk; and
(C)(i) the Comptroller General's assessment of threats to
national security that are posed by technology that will
enable, during the 10-year period beginning on the date of
the enactment of this Act, the development of antibiotic
resistant, mutated, or bioengineered strains of biological
agents; and
(ii) recommendations on short-term and long-term
governmental strategies for addressing such threats,
including recommendations for Federal policies regarding
research priorities, the development of countermeasures, and
investments in technology.
(3) Report.--A report providing the results of the study
under paragraph (1) shall be submitted to the designated
congressional committees not later than five years after the
date of the enactment of this Act.
(c) Report Regarding Biocontainment Facilities.--Not later
than 120 days after the date of the enactment of this Act,
the Secretary of Homeland Security and the Secretary of
Health and Human Services shall jointly report to the
designated congressional committees whether there is a lack
of adequate large-scale biocontainment facilities necessary
for the testing of security countermeasures in accordance
with Food and Drug Administration requirements.
(d) Designated Congressional Committees.--For purposes of
this section, the term ``designated congressional
committees'' means the following committees of the Congress:
(1) In the House of Representatives: the Committee on
Energy and Commerce, the Committee on Appropriations, the
Committee on Government Reform, and the Select Committee on
Homeland Security (or any successor to the Select Committee).
(2) In the Senate: the appropriate committees.

SEC. 6. OUTREACH.

The Secretary of Health and Human Services shall develop
outreach measures to ensure to the extent practicable that
diverse institutions, including Historically Black Colleges
and Universities and those serving large proportions of Black
or African Americans, American Indians, Appalachian
Americans, Alaska Natives, Asians, Native Hawaiians, other
Pacific Islanders, Hispanics or Latinos, or other
underrepresented populations, are meaningfully aware of
available research and development grants, contracts,
cooperative agreements, and procurements conducted under
sections 2 and 3 of this Act.

SEC. 7. RECOMMENDATION FOR EXPORT CONTROLS ON CERTAIN
BIOMEDICAL COUNTERMEASURES.

Upon the award of any grant, contract, or cooperative
agreement under section 2 or 3 of this Act for the research,
development, or procurement of a qualified countermeasure or
a security countermeasure (as those terms are defined in this
Act), the Secretary of Health and Human Services shall, in
consultation with the heads of other appropriate Federal
agencies, determine whether the countermeasure involved in
such grant, contract, or cooperative agreement is subject to
existing export-related controls and, if not, may make a
recommendation to the appropriate Federal agency or agencies
that such countermeasure should be included on the list of
controlled items subject to such controls.

SEC. 8. ENSURING COORDINATION, COOPERATION AND THE
ELIMINATION OF UNNECESSARY DUPLICATION IN
PROGRAMS DESIGNED TO PROTECT THE HOMELAND FROM
BIOLOGICAL, CHEMICAL, RADIOLOGICAL, AND NUCLEAR
AGENTS.

(a) Ensuring Coordination of Programs.--The Secretary of
Health and Human Services, the Secretary of Homeland
Security, and the Secretary of Defense shall ensure that the
activities of their respective Departments coordinate,
complement, and do not unnecessarily duplicate programs to
identify potential domestic threats from biological,
chemical, radiological or nuclear agents, detect domestic
incidents involving such agents, analyze such incidents, and
develop necessary countermeasures. The aforementioned
Secretaries shall further ensure that information and
technology possessed

[[Page S5819]]

by the Departments relevant to these activities are shared
with the other Departments.
(b) Designation of Agency Coordination Officer.--The
Secretary of Health and Human Services, the Secretary of
Homeland Security, and the Secretary of Defense shall each
designate an officer or employee of their respective
Departments who shall coordinate, through regular meetings
and communications, with the other aforementioned Departments
such programs and activities carried out by their
Departments.

SEC. 9. AUTHORITY OF THE SECRETARY OF HEALTH AND HUMAN
SERVICES DURING NATIONAL EMERGENCIES.

Section 1135(b) of the Social Security Act (42 U.S.C.
1320b-5(b)) is amended--
(1) by striking paragraph (3) and inserting the following:
``(3) actions under section 1867 (relating to examination
and treatment for emergency medical conditions and women in
labor) for--
``(A) a transfer of an individual who has not been
stabilized in violation of subsection (c) of such section if
the transfer is necessitated by the circumstances of the
declared emergency in the emergency area during the emergency
period; or
``(B) the direction or relocation of an individual to
receive medical screening in an alternate location pursuant
to an appropriate State emergency preparedness plan;'';
(2) in paragraph (5), by striking ``and'' at the end;
(3) in paragraph (6), by striking the period and inserting
``; and'';
(4) by inserting after paragraph (6), the following:
``(7) sanctions and penalties that arise from noncompliance
with the following requirements (as promulgated under the
authority of section 264(c) of the Health Insurance
Portability and Accountability Act of 1996 (42 U.S.C. 1320d-2
note)--
``(A) section 164.510 of title 45, Code of Federal
Regulations, relating to--
``(i) requirements to obtain a patient's agreement to speak
with family members or friends; and
``(ii) the requirement to honor a request to opt out of the
facility directory;
``(B) section 164.520 of such title, relating to the
requirement to distribute a notice; or
``(C) section 164.522 of such title, relating to--
``(i) the patient's right to request privacy restrictions;
and
``(ii) the patient's right to request confidential
communications.''; and
(5) by adding at the end the following: ``A waiver or
modification provided for under paragraph (3) or (7) shall
only be in effect if such actions are taken in a manner that
does not discriminate among individuals on the basis of their
source of payment or of their ability to pay, and shall be
limited to a 72-hour period beginning upon implementation of
a hospital disaster protocol. A waiver or modification under
such paragraph (7) shall be withdrawn after such period and
the provider shall comply with the requirements under such
paragraph for any patient still under the care of the
provider.''.
______

SA 3179. Mr. LOTT (for himself and Mr. Cochran) submitted an
amendment intended to be proposed by him to the bill S. 2400, to
authorize appropriations for fiscal year 2005 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe personnel
strengths for such fiscal year for the Armed Services, and for other
purposes; which was ordered to lie on the table; as follows:

On page 30, between lines 14 and 15, insert the following:

SEC. 217. ADVANCED FERRITE ANTENNA.

(a) Amount for Development and Testing.--Of the amount
authorized to be appropriated under section 201(2),
$3,000,000 shall be available for development and testing of
the Advanced Ferrite Antenna.
(b) Adjustments to Authorizations of Appropriations.--(1)
The amount authorized to be appropriated under section 201(2)
is hereby increased by $3,000,000.
(2) The amount authorized to be appropriated under section
102(a)(3) is hereby reduced by $3,000,000, to be derived from
the amounts for the LCU(X) program.
______

SA 3180. Mr. GREGG (for himself and Mr. Kennedy) proposed an
amendment to the bill S. 15, to amend the Public Health Service Act to
provide protections and countermeasures against chemical, radiological,
or nuclear agents that may be used in a terrorist attack against the
United States by giving the National Institutes of Health contracting
flexibility, infrastructure improvements, and expediting the scientific
peer review process, and streamlining the Food and Drug Administration
approval process of countermeasures; as follows:

Amend the title so as to read: To amend the Public Health
Service Act to provide protections and countermeasures
against chemical, radiological, or nuclear agents that may be
used in a terrorist attack against the United States by
giving the National Institutes of Health contracting
flexibility, infrastructure improvements, and expediting the
scientific peer review process, and streamlining the Food and
Drug Administration approval process of countermeasures.''.
______

SA 3181. Ms. CANTWELL (for herself, Mr. Hollings, Mrs. Murray, Mrs.
Clinton, Mrs. Feinstein, Mr. Lautenberg, and Mr. Schumer) submitted an
amendment intended to be proposed by her to the bill S. 2400, to
authorize appropriations for fiscal year 2005 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe personnel
strengths for such fiscal year for the Armed Services, and for other
purposes; which was ordered to lie on the table; as follows:

Beginning on page 384, strike line 3 and all that follows
through page 391, line 7, and insert the following:

SEC. 3117. ANNUAL REPORT ON EXPENDITURES FOR SAFEGUARDS AND
SECURITY.

(a) Annual Report Required.--Subtitle C of title XLVII of
the Atomic Energy Defense Act (50 U.S.C. 2771 et seq.) is
amended by adding at the end the following new section:

``SEC. 4732. ANNUAL REPORT ON EXPENDITURES FOR SAFEGUARDS AND
SECURITY.

``The Secretary of Energy shall submit to Congress each
year, in the budget justification materials submitted to
Congress in support of the budget of the President for the
fiscal year beginning in such year (as submitted under
section 1105(a) of title 31, United States Code), the
following:
``(1) A detailed description and accounting of the proposed
obligations and expenditures by the Department of Energy for
safeguards and security in carrying out programs necessary
for the national security for the fiscal year covered by such
budget, including any technologies on safeguards and security
proposed to be deployed or implemented during such fiscal
year.
``(2) With respect to the fiscal year ending in the year
before the year in which such budget is submitted, a detailed
description and accounting of--
``(A) the policy on safeguards and security, including any
modifications in such policy adopted or implemented during
such fiscal year;
``(B) any initiatives on safeguards and security in effect
or implemented during such fiscal year;
``(C) the amount obligated and expended for safeguards and
security during such fiscal year, set forth by total amount,
by amount per program, and by amount per facility; and
``(D) the technologies on safeguards and security deployed
or implemented during such fiscal year.''.
(b) Clerical Amendment.--The table of contents for that Act
is amended by inserting after the item relating to section
4731 the following new item:

``Sec. 4732. Annual report on expenditures for safeguards and
security.''.

SEC. 3118. AUTHORITY TO CONSOLIDATE COUNTERINTELLIGENCE
OFFICES OF DEPARTMENT OF ENERGY AND NATIONAL
NUCLEAR SECURITY ADMINISTRATION WITHIN NATIONAL
NUCLEAR SECURITY ADMINISTRATION.

(a) Authority.--The Secretary of Energy may consolidate the
counterintelligence programs and functions referred to in
subsection (b) within the Office of Defense Nuclear
Counterintelligence of the National Nuclear Security
Administration and provide for their discharge by that
Office.
(b) Covered Programs and Functions.--The programs and
functions referred to in this subsection are as follows:
(1) The functions and programs of the Office of
Counterintelligence of the Department of Energy under section
215 of the Department of Energy Organization Act (42 U.S.C.
7144b).
(2) The functions and programs of the Office of Defense
Nuclear Counterintelligence of the National Nuclear Security
Administration under section 3232 of the National Nuclear
Security Administration Act (50 U.S.C. 2422), including the
counterintelligence programs under section 3233 of that Act
(50 U.S.C. 2423).
(c) Establishment of Policy.--The Secretary shall have the
responsibility to establish policy for the discharge of the
counterintelligence programs and functions consolidated
within the National Nuclear Security Administration under
subsection (a) as provided for under section 213 of the
Department of Energy Organization Act (42 U.S.C. 7144).
(d) Preservation of Counterintelligence Capability.--In
consolidating counterintelligence programs and functions
within the National Nuclear Security Administration under
subsection (a), the Secretary shall ensure that the
counterintelligence capabilities of the Department of Energy
and the National Nuclear Security Administration are in no
way degraded or compromised.
(e) Report on Exercise of Authority.--In the event the
Secretary exercises the authority in subsection (a), the
Secretary shall submit to the congressional defense
committees a report on the exercise of the authority. The
report shall include--
(1) a description of the manner in which the
counterintelligence programs and functions referred to in
subsection (b) shall be consolidated within the Office of
Defense Nuclear Counterintelligence of the National Nuclear
Security Administration and discharged by that Office;

[[Page S5820]]

(2) a notice of the date on which that Office shall
commence the discharge of such programs and functions, as so
consolidated; and
(3) a proposal for such legislative action as the Secretary
considers appropriate to effectuate the discharge of such
programs and functions, as so consolidated, by that Office.
(f) Deadline for Exercise of Authority.--The authority in
subsection (a) may be exercised, if at all, not later than
one year after the date of the enactment of this Act.

SEC. 3119. ON-SITE TREATMENT AND STORAGE OF WASTES FROM
REPROCESSING ACTIVITIES AND RELATED WASTE.

(a) Authority.--Of the amount authorized to be appropriated
by section 3102(a)(1) for environmental management for
defense site acceleration completion, $350,000,000 shall be
available for the following purposes at the sites referred to
in subsection (b):
(1) The safe management of tanks or tank farms used to
store waste from reprocessing activities.
(2) The on-site treatment and storage of wastes from
reprocessing activities and related waste.
(3) The consolidation of tank waste.
(4) The emptying and cleaning of storage tanks.
(b) Sites.--The sites referred to in this subsection are as
follows:
(1) The Idaho National Engineering and Environmental
Laboratory, Idaho.
(2) The Savannah River Site, Aiken, South Carolina.
(3) The Hanford Site, Richland, Washington.
______

SA 3182. Ms. CANTWELL submitted an amendment intended to be proposed
to amendment SA 3170 submitted by Mr. Graham of South Carolina and
intended to be proposed to the bill S. 2400, to authorize
appropriations for fiscal year 2005 for military activities of the
Department of Defense, for military construction, and for defense
activities of the Department of Energy, to prescribe personnel
strengths for such fiscal year for the Armed Services, and for other
purposes; which was ordered to lie on the table; as follows:

On page 2, strike line 11.
______

SA 3183. Mr. SMITH (for himself and Mr. Kennedy) submitted an
amendment intended to be proposed by him to the bill S. 2400, to
authorize appropriations for fiscal year 2005 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe personnel
strengths for such fiscal year for the Armed Services, and for other
purposes; which was ordered to lie on the table; as follows:

At the end of the bill insert the following:

TITLE __--LOCAL LAW ENFORCEMENT ENHANCEMENT ACT.

SEC. __01. SHORT TITLE.

This title may be cited as the ``Local Law Enforcement
Enhancement Act of 2004''.

SEC. __02. FINDINGS.

Congress makes the following findings:
(1) The incidence of violence motivated by the actual or
perceived race, color, religion, national origin, gender,
sexual orientation, or disability of the victim poses a
serious national problem.
(2) Such violence disrupts the tranquility and safety of
communities and is deeply divisive.
(3) State and local authorities are now and will continue
to be responsible for prosecuting the overwhelming majority
of violent crimes in the United States, including violent
crimes motivated by bias. These authorities can carry out
their responsibilities more effectively with greater Federal
assistance.
(4) Existing Federal law is inadequate to address this
problem.
(5) The prominent characteristic of a violent crime
motivated by bias is that it devastates not just the actual
victim and the family and friends of the victim, but
frequently savages the community sharing the traits that
caused the victim to be selected.
(6) Such violence substantially affects interstate commerce
in many ways, including--
(A) by impeding the movement of members of targeted groups
and forcing such members to move across State lines to escape
the incidence or risk of such violence; and
(B) by preventing members of targeted groups from
purchasing goods and services, obtaining or sustaining
employment, or participating in other commercial activity.
(7) Perpetrators cross State lines to commit such violence.
(8) Channels, facilities, and instrumentalities of
interstate commerce are used to facilitate the commission of
such violence.
(9) Such violence is committed using articles that have
traveled in interstate commerce.
(10) For generations, the institutions of slavery and
involuntary servitude were defined by the race, color, and
ancestry of those held in bondage. Slavery and involuntary
servitude were enforced, both prior to and after the adoption
of the 13th amendment to the Constitution of the United
States, through widespread public and private violence
directed at persons because of their race, color, or
ancestry, or perceived race, color, or ancestry. Accordingly,
eliminating racially motivated violence is an important means
of eliminating, to the extent possible, the badges,
incidents, and relics of slavery and involuntary servitude.
(11) Both at the time when the 13th, 14th, and 15th
amendments to the Constitution of the United States were
adopted, and continuing to date, members of certain religious
and national origin groups were and are perceived to be
distinct ``races''. Thus, in order to eliminate, to the
extent possible, the badges, incidents, and relics of
slavery, it is necessary to prohibit assaults on the basis of
real or perceived religions or national origins, at least to
the extent such religions or national origins were regarded
as races at the time of the adoption of the 13th, 14th, and
15th amendments to the Constitution of the United States.
(12) Federal jurisdiction over certain violent crimes
motivated by bias enables Federal, State, and local
authorities to work together as partners in the investigation
and prosecution of such crimes.
(13) The problem of crimes motivated by bias is
sufficiently serious, widespread, and interstate in nature as
to warrant Federal assistance to States and local
jurisdictions.

SEC. __03. DEFINITION OF HATE CRIME.

In this title, the term ``hate crime'' has the same meaning
as in section 280003(a) of the Violent Crime Control and Law
Enforcement Act of 1994 (28 U.S.C. 994 note).

SEC. __04. SUPPORT FOR CRIMINAL INVESTIGATIONS AND
PROSECUTIONS BY STATE AND LOCAL LAW ENFORCEMENT
OFFICIALS.

(a) Assistance Other Than Financial Assistance.--
(1) In general.--At the request of a law enforcement
official of a State or Indian tribe, the Attorney General may
provide technical, forensic, prosecutorial, or any other form
of assistance in the criminal investigation or prosecution of
any crime that--
(A) constitutes a crime of violence (as defined in section
16 of title 18, United States Code);
(B) constitutes a felony under the laws of the State or
Indian tribe; and
(C) is motivated by prejudice based on the race, color,
religion, national origin, gender, sexual orientation, or
disability of the victim, or is a violation of the hate crime
laws of the State or Indian tribe.
(2) Priority.--In providing assistance under paragraph (1),
the Attorney General shall give priority to crimes committed
by offenders who have committed crimes in more than 1 State
and to rural jurisdictions that have difficulty covering the
extraordinary expenses relating to the investigation or
prosecution of the crime.
(b) Grants.--
(1) In general.--The Attorney General may award grants to
assist State, local, and Indian law enforcement officials
with the extraordinary expenses associated with the
investigation and prosecution of hate crimes.
(2) Office of justice programs.--In implementing the grant
program, the Office of Justice Programs shall work closely
with the funded jurisdictions to ensure that the concerns and
needs of all affected parties, including community groups and
schools, colleges, and universities, are addressed through
the local infrastructure developed under the grants.
(3)  Application.--
(A) In general.--Each State that desires a grant under this
subsection shall submit an application to the Attorney
General at such time, in such manner, and accompanied by or
containing such information as the Attorney General shall
reasonably require.
(B) Date for submission.--Applications submitted pursuant
to subparagraph (A) shall be submitted during the 60-day
period beginning on a date that the Attorney General shall
prescribe.
(C) Requirements.--A State or political subdivision of a
State or tribal official applying for assistance under this
subsection shall--
(i) describe the extraordinary purposes for which the grant
is needed;
(ii) certify that the State, political subdivision, or
Indian tribe lacks the resources necessary to investigate or
prosecute the hate crime;
(iii) demonstrate that, in developing a plan to implement
the grant, the State, political subdivision, or tribal
official has consulted and coordinated with nonprofit,
nongovernmental victim services programs that have experience
in providing services to victims of hate crimes; and
(iv) certify that any Federal funds received under this
subsection will be used to supplement, not supplant, non-
Federal funds that would otherwise be available for
activities funded under this subsection.
(4) Deadline.--An application for a grant under this
subsection shall be approved or disapproved by the Attorney
General not later than 30 business days after the date on
which the Attorney General receives the application.
(5) Grant amount.--A grant under this subsection shall not
exceed $100,000 for any single jurisdiction within a 1 year
period.
(6) Report.--Not later than December 31, 2005, the Attorney
General shall submit to Congress a report describing the
applications submitted for grants under this subsection, the
award of such grants, and the purposes for which the grant
amounts were expended.
(7) Authorization of appropriations.--There is authorized
to be appropriated to

[[Page S5821]]

carry out this subsection $5,000,000 for each of fiscal years
2005 and 2006.

SEC. __05. GRANT PROGRAM.

(a) Authority To Make Grants.--The Office of Justice
Programs of the Department of Justice shall award grants, in
accordance with such regulations as the Attorney General may
prescribe, to State and local programs designed to combat
hate crimes committed by juveniles, including programs to
train local law enforcement officers in identifying,
investigating, prosecuting, and preventing hate crimes.
(b) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this section.

SEC. __06. AUTHORIZATION FOR ADDITIONAL PERSONNEL TO ASSIST
STATE AND LOCAL LAW ENFORCEMENT.

There are authorized to be appropriated to the Department
of the Treasury and the Department of Justice, including the
Community Relations Service, for fiscal years 2005, 2006, and
2007 such sums as are necessary to increase the number of
personnel to prevent and respond to alleged violations of
section 249 of title 18, United States Code, as added by
section __07.

SEC. __07. PROHIBITION OF CERTAIN HATE CRIME ACTS.

(a) In General.--Chapter 13 of title 18, United States
Code, is amended by adding at the end the following:

``Sec. 249. Hate crime acts

``(a) In General.--
``(1) Offenses involving actual or perceived race, color,
religion, or national origin.--Whoever, whether or not acting
under color of law, willfully causes bodily injury to any
person or, through the use of fire, a firearm, or an
explosive or incendiary device, attempts to cause bodily
injury to any person, because of the actual or perceived
race, color, religion, or national origin of any person--
``(A) shall be imprisoned not more than 10 years, fined in
accordance with this title, or both; and
``(B) shall be imprisoned for any term of years or for
life, fined in accordance with this title, or both, if--
``(i) death results from the offense; or
``(ii) the offense includes kidnaping or an attempt to
kidnap, aggravated sexual abuse or an attempt to commit
aggravated sexual abuse, or an attempt to kill.
``(2) Offenses involving actual or perceived religion,
national origin, gender, sexual orientation, or disability.--
``(A) In general.--Whoever, whether or not acting under
color of law, in any circumstance described in subparagraph
(B), willfully causes bodily injury to any person or, through
the use of fire, a firearm, or an explosive or incendiary
device, attempts to cause bodily injury to any person,
because of the actual or perceived religion, national origin,
gender, sexual orientation, or disability of any person--
``(i) shall be imprisoned not more than 10 years, fined in
accordance with this title, or both; and
``(ii) shall be imprisoned for any term of years or for
life, fined in accordance with this title, or both, if--

``(I) death results from the offense; or
``(II) the offense includes kidnaping or an attempt to
kidnap, aggravated sexual abuse or an attempt to commit
aggravated sexual abuse, or an attempt to kill.

``(B) Circumstances described.--For purposes of
subparagraph (A), the circumstances described in this
subparagraph are that--
``(i) the conduct described in subparagraph (A) occurs
during the course of, or as the result of, the travel of the
defendant or the victim--

``(I) across a State line or national border; or

``(II) using a channel, facility, or instrumentality of
interstate or foreign commerce;

``(ii) the defendant uses a channel, facility, or
instrumentality of interstate or foreign commerce in
connection with the conduct described in subparagraph (A);
``(iii) in connection with the conduct described in
subparagraph (A), the defendant employs a firearm, explosive
or incendiary device, or other weapon that has traveled in
interstate or foreign commerce; or
``(iv) the conduct described in subparagraph (A)--

``(I) interferes with commercial or other economic activity
in which the victim is engaged at the time of the conduct; or
``(II) otherwise affects interstate or foreign commerce.

``(b) Certification Requirement.--No prosecution of any
offense described in this subsection may be undertaken by the
United States, except under the certification in writing
of the Attorney General, the Deputy Attorney General, the
Associate Attorney General, or any Assistant Attorney
General specially designated by the Attorney General
that--
``(1) he or she has reasonable cause to believe that the
actual or perceived race, color, religion, national origin,
gender, sexual orientation, or disability of any person was a
motivating factor underlying the alleged conduct of the
defendant; and
``(2) he or his designee or she or her designee has
consulted with State or local law enforcement officials
regarding the prosecution and determined that--
``(A) the State does not have jurisdiction or does not
intend to exercise jurisdiction;
``(B) the State has requested that the Federal Government
assume jurisdiction;
``(C) the State does not object to the Federal Government
assuming jurisdiction; or
``(D) the verdict or sentence obtained pursuant to State
charges left demonstratively unvindicated the Federal
interest in eradicating bias-motivated violence.
``(c) Definitions.--In this section--
``(1) the term `explosive or incendiary device' has the
meaning given the term in section 232 of this title; and
``(2) the term `firearm' has the meaning given the term in
section 921(a) of this title.''.
(b) Technical and Conforming Amendment.--The analysis for
chapter 13 of title 18, United States Code, is amended by
adding at the end the following:

``249. Hate crime acts.''.

SEC. __08. DUTIES OF FEDERAL SENTENCING COMMISSION.

(a) Amendment of Federal Sentencing Guidelines.--Pursuant
to the authority provided under section 994 of title 28,
United States Code, the United States Sentencing Commission
shall study the issue of adult recruitment of juveniles to
commit hate crimes and shall, if appropriate, amend the
Federal sentencing guidelines to provide sentencing
enhancements (in addition to the sentencing enhancement
provided for the use of a minor during the commission of an
offense) for adult defendants who recruit juveniles to assist
in the commission of hate crimes.
(b) Consistency With Other Guidelines.--In carrying out
this section, the United States Sentencing Commission shall--
(1) ensure that there is reasonable consistency with other
Federal sentencing guidelines; and
(2) avoid duplicative punishments for substantially the
same offense.

SEC. __09. STATISTICS.

Subsection (b)(1) of the first section of the Hate Crimes
Statistics Act (28 U.S.C. 534 note) is amended by inserting
``gender,'' after ``race,''.

SEC. __10. SEVERABILITY.

If any provision of this title, an amendment made by this
title, or the application of such provision or amendment to
any person or circumstance is held to be unconstitutional,
the remainder of this title, the amendments made by this
title, and the application of the provisions of such to any
person or circumstance shall not be affected thereby.
______

SA 3184. Mr. GRAHAM of Florida (for himself and Mr. Nelson of
Florida) submitted an amendment intended to be proposed by him to the
bill S. 2400, to authorize appropriations for fiscal year 2005 for
military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

At end of subtitle B of title I, add the following:

SEC. 113. INTEGRATION OF JAVELIN ANTI-ARMOR MISSILE SYSTEM
INTO ENGAGEMENT SKILLS TRAINER 2000.

The amount authorized to be appropriated by section 101(5)
for other procurement for the Army is hereby increased by
$3,000,000, with the amount of the increase to be allocated
to the integration of the JAVELIN anti-armor missile system
into the Engagement Skills Trainer 2000 in order to allow
soldiers in infantry rifle platoons to train will all their
organic weapons.
______

SA 3185. Mr. GRAHAM of Florida (for himself and Mr. Nelson of
Florida) submitted an amendment intended to be proposed by him to the
bill S. 2400, to authorize appropriations for fiscal year 2005 for
military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

At the end of subtitle B of title III, add the following:

SEC. 313. NAVAL PROFESSIONAL MILITARY EDUCATION.

The amount authorized to be appropriated by section 301(2)
for operation and maintenance for the Navy is hereby
increased by $4,000,000, with the amount of the increase to
be allocated to Naval Professional Military Education (NPME).
______

SA 3186. Mr. GRAHAM of Florida (for himself and Mr. Nelson of
Florida) submitted an amendment intended to be proposed by him to the
bill S. 2400, to authorize appropriations for fiscal year 2005 for
military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

At the end of subtitle B of title II, add the following:

SEC. 217. ADVANCED DIGITAL RADAR SYSTEM.

The amount authorized to be appropriated by section 201(1)
for research, development,

[[Page S5822]]

test, and evaluation, Army, is hereby increased by
$3,000,000, with the amount of the increase to be made
available for initial development of the Advanced Digital
Radar System (ADRS) (PE 0605602A).
______

SA 3187. Mr. GRAHAM of Florida (for himself and Mr. Nelson of
Florida) submitted an amendment intended to be proposed by him to the
bill S. 2400, to authorize appropriations for fiscal year 2005 for
military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

At the end of subtitle B of title III, add the following:

SEC. 313. DEPLOYMENT AND EXPANSION OF CIVIL SUPPORT TEAM
TRAINER PROGRAM.

The amount authorized to be appropriated by section 301(1)
for operation and maintenance for the Army is hereby
increased by $5,000,000, with the amount of the increase to
be allocated to deploy and expand the scenarios in the Civil
Support Team Trainer (CSTT) program, a simulations based
training program for the National Guard Weapons of Mass
Destruction Civil Support Teams (WMD-CSTs).
______

SA 3188. Mr. GRAHAM of Florida (for himself and Mr. Nelson of
Florida) submitted an amendment intended to be proposed by him to the
bill S. 2400, to authorize appropriations for fiscal year 2005 for
military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

At the end of subtitle B of title III, add the following:

SEC. 313. ROTARY WING NIGHT VISION GOGGLE TRAINING.

The amount authorized to be appropriated by section 301(2)
for operation and maintenance for the Navy is hereby
increased by $4,000,000, with the amount of the increase to
be allocated to the development of rotary wing night vision
goggle (NVG) training.
______

SA 3189. Mr. GRAHAM of Florida (for himself and Mr. Nelson of
Florida) submitted an amendment intended to be proposed by him to the
bill S. 2400, to authorize appropriations for fiscal year 2005 for
military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

At the end of subtitle B of title II, add the following:

SEC. 217. RAPID RESPONSE NETWORKING FOR MULTIPLE
APPLICATIONS.

The amount authorized to be appropriated by section 201(4)
for research, development, test, and evaluation, Defense-wide
activities, is hereby increased by $1,500,000, with the
amount of the increase to be allocated to the Defense Threat
Reducation Agency and made available to the University of
North Florida for the purpose of permitting the University to
continue its ongoing research on Rapid Response networking
for Multiple Applications.
______

SA 3190. Mr. DASCHLE submitted an amendment intended to be proposed
by him to the bill S. 2400, to authorize appropriations for fiscal year
2005 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

On page 131, between lines 17 and 18, insert the
following:

SEC. 653. RELIEF FOR MOBILIZED MILITARY RESERVISTS FROM
CERTAIN FEDERAL AGRICULTURAL LOAN OBLIGATIONS.

Subtitle D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981-2009dd-7) is amended by inserting after
section 331F the following:

``SEC. 332. RELIEF FOR MOBILIZED MILITARY RESERVISTS FROM
CERTAIN AGRICULTURAL LOAN OBLIGATIONS.

``(a) Forgiveness of Interest Payments Due While Borrower
Is a Mobilized Military Reservist.--Any requirement that a
borrower of a direct loan made under this title make any
interest payment on the loan that would otherwise be required
to be made while the borrower is a mobilized military
reservist is hereby rescinded.
``(b) Deferral of Principal Payments Due While or After
Borrower Is a Mobilized Military Reservist.--The due date of
any payment of principal on a direct loan made to a borrower
under this title that would otherwise be required to be made
while or after the borrower is a mobilized military reservist
is hereby deferred for a period equal in length to the period
for which the borrower is a mobilized military reservist.
``(c) Mobilized Military Reservist.--In this section, the
term `mobilized military reservist' means an individual who--
``(1) is on active duty under section 688, 12301(a),
12301(g), 12302, 12304, 12306, or 12406, or chapter 15 of
title 10, United States Code, or any other provision of law
during a war or during a national emergency declared by the
President or Congress, regardless of the location at which
the active duty service is performed; or
``(2) in the case of a member of the National Guard, is on
full-time National Guard duty (as defined in section
101(d)(5) of title 10, United States Code) under a call to
active service authorized by the President or the Secretary
of Defense for a period of more than 30 consecutive days
under section 502(f) of title 32, United States Code, for
purposes of responding to a national emergency declared by
the President and supported by Federal funds.''.
______

SA 3191. Mr. KYL (for himself and Mr. Cornyn) proposed an amendment
to the bill S. 2400, to authorize appropriations for fiscal year 2005
for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; as follows:

At the end of the amendment, insert the following:

SEC. 858. SENSE OF THE SENATE REGARDING EXCISE TAXES ON
EXCESS FEE TRANSACTIONS OF CERTAIN ATTORNEYS.

It is the sense of the Senate that Congress should, as soon
as practicable, enact the following legislation:

SEC. __. EXCISE TAXES ON EXCESS FEE TRANSACTIONS OF CERTAIN
ATTORNEYS.

(a) Imposition of Tax.--
(1) In general.--Subchapter D of chapter 42 of the Internal
Revenue Code of 1986 (relating to failure by certain
charitable organizations to meet certain qualification
requirements) is amended by adding at the end the following
new section:

``SEC. 4959. TAXES ON EXCESS FEE TRANSACTIONS.

``(a) Initial Taxes.--
``(1) In general.--There is hereby imposed on the
collecting attorney in each excess fee transaction a tax
equal to 5 percent of the excess fee.
``(2) Payment.--The tax imposed by paragraph (1) shall be
paid by any collecting attorney referred to in subsection
(f)(1) with respect to such transaction.
``(b) Additional Tax on the Collecting Attorney.--
``(1) In general.--In any case in which a tax is imposed by
subsection (a) on an excess fee transaction and the excess
fee involved in such transaction is not corrected within the
taxable period, there is hereby imposed a tax equal to 200
percent of the excess fee involved.
``(2) Payment.--The tax imposed by this paragraph shall be
paid by any collecting attorney referred to in subsection
(f)(1) with respect to such transaction.
``(c) Excess Fee Transaction; Excess Fee.--For purposes of
this section--
``(1) Excess fee transaction.--
``(A) In general.--The term `excess fee transaction' means
any transaction in which a fee is provided by an applicable
plaintiff (including payments resulting from litigation on
behalf of an applicable plaintiff determined on an hourly or
percentage basis, whether such fee is paid from the
applicable plaintiff's recovery, pursuant to a separately
negotiated agreement, or in any other manner), directly or
indirectly, to or for the use of any collecting attorney with
respect to such applicable plaintiff if the amount of the fee
provided exceeds the value of the services received in
exchange therefor or subsection (g)(1) applies.
``(B) Determination of value.--For purposes of subparagraph
(A), in determining whether the amount of the fee provided
exceeds the value of the services received in exchange
therefor, the value of the services shall be the sum of--
``(i) the reasonable expenses incurred by the collecting
attorney in the course of the representation of the
applicable plaintiff, and
``(ii) a reasonable fee based on--

``(I) the number of hours of non-duplicative, professional
quality legal work provided by the collecting attorney of
material value to the outcome of the representation of the
applicable plaintiff, taking into account the factors
described in subparagraphs (B) and (D) of subsection (h)(2),
``(II) reasonable hourly rates for the individuals
performing such work based on hourly rates charged by other
attorneys for the rendition of comparable services, including
rates charged by adversary defense counsel in the
representation, taking into account the factors described in
subparagraphs (A), (C), (E), and (G) of subsection (h)(2),
and
``(III) to the extent such items are not taken into account
in establishing the reasonable hourly rates under subclause
(II), an appropriate adjustment rate determined in accordance
with subparagraph (C) to compensate the collecting attorney
for periods of

[[Page S5823]]

substantial risk of non-payment of fees and for skillful or
innovative services which increase the amount of the
applicable plaintiff's recovery.

``(iii) Fees in certain settlements.--For purposes of this
subparagraph, the value of services for any collecting
attorney receiving fees under the Master Settlement Agreement
shall be deemed to include a reasonable fee that is based on
a reasonable hourly rate (including appropriate adjustment
rates) of not less than $20,000 per hour
``(C) Adjustment rate.--
``(i) In general.--For purposes of this paragraph, an
appropriate adjustment rate is a percentage of the reasonable
hourly rate under subparagraph (B)(ii)(II) which is added to
the amount of such rate and which is not more than the sum of
one risk percentage and one skill percentage described in
clauses (ii) and (iii), respectively.
``(ii) Risk percentage.--For purposes of this subparagraph,
the term `risk percentage' means a percentage rate that is
proportional to the collecting attorney's risk of nonrecovery
of fees and which is--

``(I) in the case of a collecting attorney who assumed a
substantial risk of nonpayment of fees, not more than 100
percent,
``(II) in the case of a collecting attorney who assumed a
substantial risk of nonpayment of fees and devoted more than
8,000 hours of legal work (as described in subparagraph
(B)(ii)(I)) and more than 2 years to the case before
resolution of all claims, not more than 200 percent, or
``(III) in the case of a collecting attorney who assumed a
substantial risk of nonpayment of fees and devoted more than
15,000 hours of legal work (as described in subparagraph
(B)(ii)(I)) and more than 4 years to the case before
resolution of all claims, not more than 300 percent.

``(iii) Skill percentage.--For purposes of this
subparagraph, the term `skill percentage' means, in the case
of a collecting attorney who has demonstrated exceptionally
skillful or innovative legal service which generated a
recovery for the applicable plaintiff substantially greater
than the typical recovery in similar cases, a percentage rate
that is proportional to the increase in the applicable
plaintiff's recovery and that is not more than 100 percent.
``(iv) Limitation.--An appropriate adjustment rate shall
not increase the collecting attorney's fee above an amount
that is proportional to the applicable plaintiff's recovery.
``(D) Court approval of fees.--Fee payments approved by any
court shall be presumed to not be in excess of the value of
the services received in exchange therefor if the court
approving the fee--
``(i) did not approve an adjustment rate greater than that
determined to be appropriate under subparagraph (C) in a case
where such fee included an adjustment rate, and
``(ii) obtained and relied upon a report of a legal
auditing firm with respect to such fee in accordance with the
procedures in paragraph (12).
``(2) Excess fee.--The term `excess fee' means the excess
referred to in paragraph (1)(A).
``(d) Joint and Several Liability.--For purposes of this
section, if more than 1 person is liable for any tax imposed
by subsection (a), all such persons shall be jointly and
severally liable for such tax.
``(e) Applicable Plaintiff.--For purposes of this section,
the term `applicable plaintiff' means any person represented
by a collecting attorney with respect to a claim described in
subsection (f)(1).
``(f) Other Definitions and Rules.--For purposes of this
section--
``(1) Collecting attorney.--The term `collecting attorney'
means any person engaged in the practice of law who
represents--
``(A) any governmental entity, including any State,
municipality, or political subdivision of a State, or any
person acting on such entity's behalf, including pursuant to
Federal or State Qui Tam statutes, in a claim for recoupment
of payments made or to be made by such entity to or on behalf
of any natural person by reason, directly or indirectly, of a
breach of duty that causes damage to such natural person,
``(B) any organization described in paragraph (3) or (4) of
section 501(c) and exempt from tax under section 501(a), in a
claim for damages based on a breach of duty, whether civil or
criminal, causing damage to such organization,
``(C) any natural person seeking to recover damages in a
claim based on breaches of duty, whether civil or criminal,
causing damage to such natural person, or
``(D) any assignee or other holder of claims described in
subparagraph (A), (B), or (C),
when 1 or more of such claims, whether or not joined in 1
action, involve the same or a coordinated group of
plaintiff's attorneys or similarly situated defendants, arise
out of the same transaction or set of facts or involve
substantially similar liability issues, and result in
settlements or judgments aggregating at least $100,000,000.
``(2) Taxable period.--The term `taxable period' means,
with respect to any excess fee transaction, the period
beginning with the date on which the transaction occurs and
ending 90 days after the earliest of--
``(A) the date of the mailing of a notice of deficiency
under section 6212 with respect to the tax imposed by
subsection (a), or
``(B) the date on which the tax imposed by subsection (a)
is assessed.
``(3) Master settlement agreement.--The term `Master
Settlement Agreement' means that certain Master Settlement
Agreement of November 23, 1998, and other, concluded
Settlement Agreements based on State health care expenditures
pursuant to title XIX of the Social Security Act (42 U.S.C.
1396 et seq.), including lawsuits involving the States of
Florida, Minnesota, Mississippi, and Texas.
``(4) Correction.--
``(A) General rule.--Any excess fee transaction is
corrected by undoing the excess fee to the extent possible
and taking any additional measures necessary to place the
applicable plaintiff in a financial position not worse than
that in which such plaintiff would be if the collecting
attorney were dealing under the highest fiduciary standards.
``(B) Payment of excess fees.--
``(i) In general.--Except as provided in clause (ii), a
collecting attorney corrects an excess fee transaction by
paying any excess fees plus interest to the applicable
plaintiff.
``(ii) Certain settlements.--In the case of excess fees
arising from or related to the Master Settlement Agreement,
the collecting attorney corrects an excess fee transaction by
paying any excess fees plus interest to the Secretary of the
Treasury.
``(C) No waiver of fee.--No collecting attorney may avoid
imposition of any tax imposed by this section by transferring
any portion of the excess fee or refusing to accept any
portion of the excess fee.
``(5) Limited Reasonable Cause.--For purposes of section
4962(a), an excess fee transaction shall not be treated as an
event which was due to reasonable cause if the amount of the
fee provided would exceed the value of the services received
in exchange therefor determined with the maximum adjustment
rate allowed under subsection (c)(1)(C).
``(g) Disclosure Requirements.--
``(1) Treatment as excess fee.--Any fee provided after the
date of the enactment of this subsection by an applicable
plaintiff (including payments resulting from litigation on
behalf of an applicable plaintiff determined on an hourly or
percentage basis, whether such fee is paid from the
applicable plaintiff's recovery, pursuant to a separately
negotiated agreement, or in any other manner), directly or
indirectly, to or for the use of any collecting attorney with
respect to such applicable plaintiff shall be deemed to be an
excess fee provided in an excess fee transaction unless the
disclosure requirements described in paragraph (2) are met.
``(2) Contents of statement.--The disclosure requirements
of this paragraph are met for any taxable year in which a
collecting attorney receives any fees with respect to a claim
described in subsection (f)(1), if such collecting attorney--
``(A) includes in the return of tax for such taxable year a
statement including the information described in subsection
(c)(1) with respect to such claim, and
``(B) provides a statement including the information
described in subsection (c)(1) to the applicable plaintiff
prior to the deadline (including extensions) for filing such
return.
``(h) Legal Auditing Firm.--
``(1) In general.--In any case before a Federal district
court or a State court in which the court approves fees paid
to a collecting attorney, the court shall seek bids from
legal auditing firms with a specialty in reviewing attorney
billings and select 1 such legal auditing firm to review the
billing records submitted by the collecting attorney, under
the same standards the firm would use if it were hired by a
private party to review legal bills submitted to the party,
for the reasonableness of such attorney's billing patterns
and practices. The court shall require the collecting
attorney to submit billing records, cost records, and any
other information sought by such firm in its review.
``(2) Review by legal auditing firm.--In reviewing the
billing records and work performed by the collecting
attorney, the legal auditing firm shall address all relevant
matters, including--
``(A) the hourly rates of the collecting attorney compared
with the prevailing market rates for the services rendered by
the collecting attorney,
``(B) the number of hours worked by the collecting attorney
on the case compared with other cases that the collecting
attorney worked on during the same period,
``(C) whether the collecting attorney performed tasks that
could have been performed by attorneys with lower billing
rates,
``(D) whether the collecting attorney used appropriate
billing methodology, including keeping contemporaneous time
records and using appropriate billing time increments,
``(E) whether particular tasks were staffed appropriately,
``(F) whether the costs and expenses submitted by the
collecting attorney were reasonable,
``(G) whether the collecting attorney exercised billing
judgment, and
``(H) any other matters normally addressed by the legal
auditing firm when reviewing attorney billings for private
clients.
``(3) Filing of report; response; burden of proof.--The
court shall set a date for the filing of the report of the
legal auditing firm, and allow the collecting attorney or any
applicable plaintiff to respond to the report within a
reasonable time period. The report shall be presumed correct
unless rebutted by the collecting attorney or any applicable
plaintiff by clear and convincing evidence.
``(4) Fee for legal auditing firm.--The fee for the report
of the legal auditing firm shall be paid from the collecting
attorney's

[[Page S5824]]

fee award, the applicable plaintiff's recovery, or both in a
manner determined by the court.
``(i) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
this section, including regulations to prevent avoidance of
the purposes of this section and regulations requiring
recordkeeping and information reporting.''.
(2) Conforming and clerical amendments.--
(A) Subsections (a), (b), and (c) of section 4963 of the
Internal Revenue Code of 1986 are each amended by inserting
``4959,'' after ``4958,''.
(B) Subsection (e) of section 6213 of such Code is amended
by inserting ``4959 (relating to excess fee transactions),''
before ``4971''.
(C) Paragraphs (2) and (3) of section 7422(g) of such Code
are each amended by inserting ``4959,'' after ``4958,''.
(D) The heading for subchapter D of chapter 42 of such Code
is amended to read as follows:

``Subchapter D--Failure by Certain Charitable Organizations and Persons
to Meet Certain Qualification Requirements and Fiduciary Standards.''.

(E) The table of subchapters for chapter 42 of such Code is
amended by striking the item relating to subchapter D and
inserting the following:

``Subchapter D. Failure by certain charitable organizations and persons
to meet certain qualification requirements and fiduciary
standards.''.

(F) The table of sections for subchapter D of chapter 42 of
such Code is amended by adding at the end the following new
item:

``Sec. 4959. Taxes on excess fee transactions.''.

(3) Effective date.--The amendments made by this subsection
shall apply to excess fees paid on or after the date of the
enactment of this Act.
(b) Declatory Judgments Relating to Excise Taxes on Excise
Fee Transactions of Certain Attorneys.--
(1) In general.--Subchapter B of chapter 76 of the Internal
Revenue Code of 1986 (relating to judicial proceedings) is
amended by redesignating section 7437 as section 7438 and by
inserting after section 7436 the following new section:

``SEC. 7437. DECLARATORY JUDGMENTS RELATING TO TAX ON EXCESS
FEE TRANSACTIONS.

``(a) In General.--In a case of actual controversy
involving--
``(1) a determination by the Secretary or the collecting
attorney with respect to the imposition of the excise tax on
excess fee transactions on such collecting attorney under
section 4959, or
``(2) a failure by the Secretary or the collecting attorney
to make such a determination,

upon the filing of an appropriate pleading by an applicable
plaintiff, the Tax Court may make a declaration with respect
to such determination or failure. Any such declaration shall
have the force and effect of a decision of the Tax Court and
shall be reviewable as such.
``(b) Deferential Review.--If a collecting attorney's fee
has been approved by a court in accordance with section
4959(c)(1)(D) or by the Secretary pursuant to section 4959,
the Tax Court shall review the fee only for an abuse of
discretion.
``(c) Legal Auditing Firm.--In any petition for a
declaration referred to in subsection (a):
``(1) No previous report.--If a report by a legal auditing
firm that meets the requirements of section 4959(h) has not
been previously produced and relied on by another court, the
Tax Court shall hire such a legal auditing firm and rely on
its report pursuant to the procedures in section 4959(h).
``(2) Second report.--
``(A) In general.--If a report by a legal auditing firm has
been approved by a court in accordance with section 4959, the
Tax Court shall hire a second legal auditing firm upon the
request of the petitioner.
``(B) Fee for report.--The Tax Court may direct the
petitioner to pay the fee for any report of a legal auditing
firm provided pursuant to subparagraph (A).
``(d) Time for Bringing Action.--No proceeding may be
initiated under this section by any person until 90 days
after such person first notifies the Secretary of the excess
fee transaction with respect to which the proceeding relates.
``(e) Definitions.--For purposes of this section, any term
used in this section and also in section 4959 shall have the
meaning given such term by section 4959.''.
(2) Clerical amendment.--The table of sections for
subchapter B of chapter 76 of the Internal Revenue Code of
1986 is amended by striking the item relating to section 7437
and by inserting the following new items:

``Sec. 7437. Declaratory judgments relating to tax on excess fee
transactions.
``Sec. 7438. Cross references.''.

(3) Effective date.--The amendments made by this subsection
shall apply to actions filed on or after the date of the
enactment of this Act.
(c) Use of Certain Fees.--Any fees collected by the
Secretary of the Treasury pursuant to section
4959(f)(4)(B)(ii) of the Internal Revenue Code of 1986 (as
added by subsection (a)), shall be made available to the
Secretary of Defense, as provided by appropriation Acts, for
making expenditures to address the readiness, force
protection, and safety needs arising out of the ongoing
global war on terrorism. Such expenditures shall include
additional--
(1) up-armored High Mobility Multipurpose Wheeled Vehicles;
(2) add-on ballistic protection for medium and heavy
wheeled vehicles;
(3) Interceptor Body Armor, including add-on protection for
the shoulder and side body areas;
(4) unmanned aerial vehicles;
(5) ammunition and selected items of high priority (such as
vehicles, night vision devices, sensors, and Javelin
missiles); and
(6) replacement of equipment lost in combat.
______

SA 3192. Mr. DOMENICI (for himself, Mrs. Feinstein, Mr. Lugar, Mr.
Biden, Mr. Alexander, Mr. Bingaman, Mr. Reed, Mr. Akaka, Mr. Warner,
Mr. Levin, and Mr. Feingold) proposed an amendment to the bill S. 2400,
to authorize appropriations for fiscal year 2005 for military
activities of the Department of Defense, for military construction, and
for defense activities of the Department of Energy, to prescribe
personnel strengths for such fiscal year for the Armed Services, and
for other purposes; as follows:

At the end of subtitle C of title XXXI, add the following:

SEC. 3132. ACCELERATION OF REMOVAL OR SECURITY OF FISSILE
MATERIALS, RADIOLOGICAL MATERIALS, AND RELATED
EQUIPMENT AT VULNERABLE SITES WORLDWIDE.

(a) Sense of Congress.--(1) It is the sense of Congress
that the security, including the rapid removal or secure
storage, of high-risk, proliferation-attractive fissile
materials, radiological materials, and related equipment at
vulnerable sites worldwide should be a top priority among the
activities to achieve the national security of the United
States.
(2) It is the sense of Congress that the President may
establish in the Department of Energy a task force to be
known as the Task Force on Nuclear Materials to carry out the
program authorized by subsection (b).
(b) Program Authorized.--The Secretary of Energy may carry
out a program to undertake an accelerated, comprehensive
worldwide effort to mitigate the threats posed by high-risk,
proliferation-attractive fissile materials, radiological
materials, and related equipment located at sites potentially
vulnerable to theft or diversion.
(c) Program Elements.--(1) Activities under the program
under subsection (b) may include the following:
(A) Accelerated efforts to secure, remove, or eliminate
proliferation-attractive fissile materials or radiological
materials in research reactors, other reactors, and other
facilities worldwide.
(B) Arrangements for the secure shipment of proliferation-
attractive fissile materials, radiological materials, and
related equipment to other countries willing to accept such
materials and equipment, or to the United States if such
countries cannot be identified, and the provision of secure
storage or disposition of such materials and equipment
following shipment.
(C) The transportation of proliferation-attractive fissile
materials, radiological materials, and related equipment from
sites identified as proliferation risks to secure facilities
in other countries or in the United States.
(D) The processing and packaging of proliferation-
attractive fissile materials, radiological materials, and
related equipment in accordance with required standards for
transport, storage, and disposition.
(E) The provision of interim security upgrades for
vulnerable, proliferation-attractive fissile materials and
radiological materials and related equipment pending their
removal from their current sites.
(F) The utilization of funds to upgrade security and
accounting at sites where proliferation-attractive fissile
materials or radiological materials will remain for an
extended period of time in order to ensure that such
materials are secure against plausible potential threats and
will remain so in the future.
(G) The management of proliferation-attractive fissile
materials, radiological materials, and related equipment at
secure facilities.
(H) Actions to ensure that security, including security
upgrades at sites and facilities for the storage or
disposition of proliferation-attractive fissile materials,
radiological materials, and related equipment, continues to
function as intended.
(I) The provision of technical support to the International
Atomic Energy Agency (IAEA), other countries, and other
entities to facilitate removal of, and security upgrades to
facilities that contain, proliferation-attractive fissile
materials, radiological materials, and related equipment
worldwide.
(J) The development of alternative fuels and irradiation
targets based on low-enriched uranium to convert research or
other reactors fueled by highly-enriched uranium to such
alternative fuels, as well as the conversion of reactors and
irradiation targets employing highly-enriched uranium to
employment of such alternative fuels and targets.

[[Page S5825]]

(K) Accelerated actions for the blend down of highly-
enriched uranium to low-enriched uranium.
(L) The provision of assistance in the closure and
decommissioning of sites identified as presenting risks of
proliferation of proliferation-attractive fissile materials,
radiological materials, and related equipment.
(M) Programs to--
(i) assist in the placement of employees displaced as a
result of actions pursuant to the program in enterprises not
representing a proliferation threat; and
(ii) convert sites identified as presenting risks of
proliferation regarding proliferation-attractive fissile
materials, radiological materials, and related equipment to
purposes not representing a proliferation threat to the
extent necessary to eliminate the proliferation threat.
(2) The Secretary of Energy shall, in coordination with the
Secretary of State, carry out the program in consultation
with, and with the assistance of, appropriate departments,
agencies, and other entities of the United States Government.
(3) The Secretary of Energy shall, with the concurrence of
the Secretary of State, carry out activities under the
program in collaboration with such foreign governments, non-
governmental organizations, and other international entities
as the Secretary considers appropriate for the program.
(d) Reports.--(1) Not later than March 15, 2005, the
Secretary shall submit to Congress a classified interim
report on the program under subsection (b).
(2) Not later than January 1, 2006, the Secretary shall
submit to Congress a classified final report that includes
the following:
(A) A survey by the Secretary of the facilities and sites
worldwide that contain proliferation-attractive fissile
materials, radiological materials, or related equipment.
(B) A list of sites determined by the Secretary to be of
the highest priority, taking into account risk of theft from
such sites, for removal or security of proliferation-
attractive fissile materials, radiological materials, or
related equipment, organized by level of priority.
(C) A plan, including activities under the program under
this section, for the removal, security, or both of
proliferation-attractive fissile materials, radiological
materials, or related equipment at vulnerable facilities and
sites worldwide, including measurable milestones, metrics,
and estimated costs for the implementation of the plan.
(3) A summary of each report under this subsection shall
also be submitted to Congress in unclassified form.
(e) Funding.--Amounts authorized to be appropriated to the
Secretary of Energy for defense nuclear nonproliferation
activities shall be available for purposes of the program
under this section.
(f) Definitions.--In this section:
(1) The term ``fissile materials'' means plutonium, highly-
enriched uranium, or other material capable of sustaining an
explosive nuclear chain reaction, including irradiated items
containing such materials if the radiation field from such
items is not sufficient to prevent the theft or misuse of
such items.
(2) The term ``radiological materials'' includes Americium-
241, Californium-252, Cesium-137, Cobalt-60, Iridium-192,
Plutonium-238, Radium-226 and Strontium-90, Curium-244,
Strontium-90, and irradiated items containing such materials,
or other materials designated by the Secretary of Energy for
purposes of this paragraph.
(3) The term ``related equipment'' includes equipment
useful for enrichment of uranium in the isotope 235 and for
extraction of fissile materials from irradiated fuel rods and
other equipment designated by the Secretary of Energy for
purposes of this section.
(4) The term ``highly-enriched uranium'' means uranium
enriched to or above 20 percent in isotope 235.
(5) The term ``low-enriched uranium'' means uranium
enriched below 20 percent in isotope 235.
(6) The term ``proliferation-attractive'', in the case of
fissile materials and radiological materials, means
quantities and types of such materials that are determined by
the Secretary of Energy to present a significant risk to the
national security of the United States if diverted to a use
relating to proliferation.
______

SA 3193. Mrs. MURRAY submitted an amendment intended to be proposed
by her to the bill S. 2400, to authorize appropriations for fiscal year
2005 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

At the end of division A, add the following:

TITLE XIII--BENEFITS FOR RESERVES ON EXTENDED TOURS OF ACTIVE DUTY

SEC. 1301. SHORT TITLE.

This title may be cited as the ``Guard and Reserve Enhanced
Benefits Act of 2004''.

Subtitle A--Family Assistance Benefits

SEC. 1311. MILITARY FAMILY LEAVE.

(a) General Requirements for Leave.--
(1) Definitions.--Section 101 of the Family and Medical
Leave Act of 1993 (29 U.S.C. 2611) is amended by adding at
the end the following:
``(14) Active duty.--The term `active duty' means duty
under a call or order to active duty under a provision of law
referred to in section 101(a)(13)(B) of title 10, United
States Code.
``(15) Qualified member.--The term `qualified member' means
a member of the reserve components on active duty for a
period of more than 30 days.''.
(2) Entitlement to leave.--Section 102(a)(1) of such Act
(29 U.S.C. 2612(a)) is amended by adding at the end the
following:
``(E) Because the spouse, son, daughter, or parent of the
employee is a qualified member.''.
(3) Schedule.--Section 102(b)(1) of such Act (29 U.S.C.
2612(b)(1)) is amended by inserting after the second sentence
the following: ``Leave under subsection (a)(1)(E) may be
taken intermittently or on a reduced leave schedule.''.
(4) Substitution of paid leave.--Section 102(d)(2)(A) of
such Act (29 U.S.C. 2612(d)(2)(A)) is amended by striking
``(A), (B), or (C)'' and inserting ``(A), (B), (C), or (E)''.
(5) Notice.--Section 102(e) of such Act (29 U.S.C. 2612(e))
is amended by adding at the end the following:
``(3) Notice for military family leave.--In any case in
which an employee seeks leave under subsection (a)(1)(E), the
employee shall provide such notice as is practicable.''.
(6) Certification.--Section 103 of such Act (29 U.S.C.
2613) is amended by adding at the end the following:
``(f) Certification for Military Family Leave.--An employer
may require that a request for leave under section
102(a)(1)(E) be supported by a certification issued at such
time and in such manner as the Secretary may by regulation
prescribe.''.
(b) Military Family Leave for Civil Service Employees.--
(1) Definitions.--Section 6381 of title 5, United States
Code, is amended--
(A) in paragraph (5), by striking ``and'' at the end;
(B) in paragraph (6), by striking the period and inserting
``; and''; and
(C) by adding at the end the following:
``(7) the term `active duty' means duty under a call or
order to active duty under a provision of law referred to in
section 101(a)(13)(B) of title 10, United States Code; and
``(8) the term `qualified member' means a member of the
reserve components on active duty for a period of more than
30 days.''.
(2) Entitlement to leave.--Section 6382(a) of such title is
amended by adding at the end the following:
``(E) Because the spouse, son, daughter, or parent of the
employee is a qualified member.''.
(3) Schedule.--Section 6382(b)(1) of such title is amended
by inserting after the second sentence the following: ``Leave
under subsection (a)(1)(E) may be taken intermittently or on
a reduced leave schedule.''.
(4) Substitution of paid leave.--Section 6382(d) of such
title is amended by striking ``(A), (B), (C), or (D)'' and
inserting ``(A), (B), (C), (D), or (E)''.
(5) Notice.--Section 6382(e) of such title is amended by
adding at the end the following:
``(3) In any case in which an employee seeks leave under
subsection (a)(1)(E), the employee shall provide such notice
as is practicable.''.
(6) Certification.--Section 6383 of such title is amended
by adding at the end the following:
``(f) An employing agency may require that a request for
leave under section 6382(a)(1)(E) be supported by a
certification issued at such time and in such manner as the
Office of Personnel Management may by regulation
prescribe.''.

SEC. 1312. CHILD CARE ASSISTANCE FOR MILITARY DEPENDENTS.

(a) Authorization of Appropriations.--Section 658B of the
Child Care and Development Block Grant Act of 1990 (42 U.S.C.
9858) is amended--
(1) by striking ``There is'' and inserting ``(a) In
General.--There is'';
(2) in subsection (a), as so designated, by inserting
``(except section 658T)'' after ``this subchapter''; and
(3) by adding at the end the following:
``(b) Child Care for Certain Military Dependents.--There is
authorized to be appropriated to carry out section 658T
$200,000,000 for each of fiscal years 2005 through 2009.''.
(b) Child Care Assistance.--The Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) is amended
by adding at the end the following:

``SEC. 658T. CHILD CARE ASSISTANCE FOR MILITARY DEPENDENTS.

``(a) In General.--The Secretary shall make grants to
eligible spouses to assist the spouses in paying for the cost
of child care services provided to dependents by eligible
child care providers. In making the grants, the Secretary
shall give priority to eligible spouses of qualified members
on active duty for a period of more than 6 months.
``(b) Definitions.--In this section:
``(1) Active duty.--The term `active duty' means duty under
a call or order to active duty under a provision of law
referred to in section 101(a)(13)(B) of title 10, United
States Code.
``(2) Active duty for a period of more than 30 days.--The
term `active duty for a period of more than 30 days' has the
meaning given the term in section 101(d)(2) of title 10,
United States Code.
``(3) Dependent.--The term `dependent' means an individual
who is--
``(A) a dependent, as defined in section 401 of title 37,
United States Code, except that

[[Page S5826]]

such term does not include a person described in paragraph
(1) or (3) of subsection (a) of such section; and
``(B) an individual described in subparagraphs (A) and (B)
of section 658P(4).
``(4) Eligible spouse.--The term `eligible spouse' means a
person who--
``(A) is a parent of one or more dependents of a qualified
member; and
``(B) has the primary responsibility for the care of one or
more such dependents.
``(5) Qualified member.--The term `qualified member' means
a member of the reserve components of the Armed Forces on
active duty for a period of more than 30 days.
``(c) Applications.--To be eligible to receive a grant
under this section, a spouse shall submit an application to
the Secretary, at such time, in such manner, and containing
such information as the Secretary may require, including a
description of the eligible child care provider who provides
the child care services assisted through the grant.
``(d) Rule.--The provisions of this subchapter, other than
section 658P and provisions referenced in section 658P, that
apply to assistance provided under this subchapter shall not
apply to assistance provided under this section.''.
(c) Conforming Amendments.--Section 658O of the Child Care
and Development Block Grant Act of 1990 (42 U.S.C. 9858m) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``appropriated under this
subchapter'' and inserting ``appropriated under section
658B(a)''; and
(B) in paragraph (2), by striking ``appropriated under
section 658B'' and inserting ``appropriated under section
658(a)''; and
(2) in subsection (b)(1), by striking ``appropriated under
section 658B'' and inserting ``appropriated under section
658(a)''.

Subtitle B--Education Benefits

PART I--MONTGOMERY GI BILL BENEFITS

SEC. 1321. BASIC EDUCATIONAL ASSISTANCE FOR MEMBERS OF
SELECTED RESERVE SERVING EXTENDED OR RECURRING
PERIODS ON ACTIVE DUTY.

(a) Entitlement.--(1) Subsection (a)(1) of section 3011 of
title 38, United States Code, is amended--
(A) in subparagraph (B), by striking ``or'' at the end;
(B) in subparagraph (C), by adding ``or'' at the end; and
(C) by adding at the end the following new subparagraph:
``(D) after September 11, 2001, while a member of the
Selected Reserve--
``(i) serves at least 12 months of continuous active duty
in the Armed Forces; or
``(ii) during any 60-month period, serves an aggregate of
24 months of continuous active duty in the Armed Forces;''.
(2) Subsection (d)(3) of such section is amended by
striking ``The period of service'' and inserting ``Except in
the case of an individual described in subsection (a)(1)(D),
the period of service''.
(b) Exclusion From Contributions for Increased
Assistance.--Subsection (e)(1) of such section is amended by
inserting ``(other than an individual described in subsection
(a)(1)(D)'' after ``Any individual''.
(c) Amount of Assistance.--Section 3015(a) of such title is
amended by inserting after ``three years'' the following:
``or an individual whose service on active duty on which such
entitlement is based is described in clause (i) or (ii) of
section 3011(a)(1)(D) of this title''.

SEC. 1322. INCREASE IN AMOUNT OF EDUCATIONAL ASSISTANCE FOR
MEMBERS OF SELECTED RESERVE.

(a) Increase in Amounts.--Section 16131(b)(1) of title 10,
United States Code, is amended--
(1) in subparagraph (A), by striking ``$251'' and inserting
``$400'';
(2) in subparagraph (B), by striking ``$188'' and inserting
``$300''; and
(3) in subparagraph (C), by striking ``$125'' and inserting
``$200''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on the date of the enactment of this Act,
and shall apply with respect to monthly rates of educational
assistance for months beginning on or after that date.

SEC. 1323. MODIFICATION OF TIME LIMITATION FOR USE OF
ENTITLEMENT TO EDUCATIONAL ASSISTANCE OF
MEMBERS OF SELECTED RESERVE.

Section 16133(a)(2) of title 10, United States Code, is
amended--
(1) by inserting ``that is five years after the date''
after ``on the date''; and
(2) by striking ``first'' and inserting ``later''.

PART II--OTHER EDUCATION BENEFITS

SEC. 1326. STUDENT LOAN DEFERMENTS.

(a) FFEL and Direct Subsidized Loans.--Section 428(b)(1)(M)
of the Higher Education Act of 1965 (20 U.S.C. 1078(b)(1)(M))
is amended--
(1) in clause (ii), by striking ``or'' after the semicolon;
(2) in clause (iii), by inserting ``or'' after the
semicolon; and
(3) by inserting after clause (iii) the following:
``(iv) during which the borrower is a member of the reserve
components of the Armed Forces on active duty for a period of
more than 30 days under a call or order to active duty under
a provision of law referred to in section 101(a)(13)(B) of
title 10, United States Code, and for 3 months following
discharge or release from such active duty.''.
(b) Consolidation Loans.--Section 428C(b)(4)(C)(ii) of the
Higher Education Act of 1965 (20 U.S.C. 1078-3(b)(4)(C)(ii))
is amended--
(1) in subclause (II), by striking ``or'' after the
semicolon;
(2) in subclause (III), by striking ``or (II)'' and
inserting ``, (II) or (III)'';
(3) by redesignating subclause (III) (as so amended) as
subclause (IV); and
(4) by inserting after subclause (II) the following:
``(III) by the Secretary, in the case of a consolidation
loan of a student who is on an active duty deferment under
section 428(b)(1)(M)(iv); or''.
(c) FFEL and Direct Unsubsidized Loans.--Section 428H(e)(2)
of the Higher Education Act of 1965 (20 U.S.C. 1078-8(e)(2))
is amended by adding at the end the following:
``(C) Notwithstanding subparagraph (A), interest on loans
made under this section for which payments of principal are
deferred because the student is on an active duty deferment
under section 428(b)(1)(M)(iv) shall be paid by the
Secretary.''.
(d) Perkins Loans.--Section 464(c)(2)(A) of the Higher
Education Act of 1965 (20 U.S.C. 1087dd(c)(2)(A)) is
amended--
(1) in clause (iii), by striking ``or'' after the
semicolon;
(2) in clause (iv), by inserting ``or'' after the
semicolon; and
(3) by inserting after clause (iv) the following:
``(v) during which the borrower is a member of the reserve
components of the Armed Forces on active duty for a period of
more than 30 days under a call or order to active duty under
a provision of law referred to in section 101(a)(13)(B) of
title 10, United States Code, and for 3 months following
discharge or release from such active duty.''.

SEC. 1327. PRESERVATION OF EDUCATIONAL STATUS AND TUITION.

(a) In General.--Title VII of the Servicemembers Civil
Relief Act (50 U.S.C. App. 501 et seq.), as amended by
section 1 of Public Law 108-189 (117 Stat. 2835), is further
amended by adding at the end the following new section:

``SEC. 707. PRESERVATION OF EDUCATIONAL STATUS AND TUITION.

``(a) Leave of Absence.--A servicemember who is a member of
the reserve components on active duty for a period of more
than 30 days under a call or order to active duty under a
provision of law referred to in section 101(a)(13)(B) of
title 10, United States Code, and who is enrolled as a
student at an institution of higher education at the time of
entry into the service on active duty, shall be granted a
leave of absence from the institution during the period of
the service on active duty and for one year after the
conclusion of the service on active duty.
``(b) Educational Status.--
``(1) In general.--A servicemember on a leave of absence
from an institution of higher education under subsection (a)
shall be entitled, upon completion of the leave of absence,
to be restored to the educational status the servicemember
had attained before entering into the service on active duty
as described in that subsection without loss of academic
credits earned, scholarships or grants awarded, or, subject
to paragraph (2), tuition and other fees paid before the
entry of the servicemember into the service on active duty.
``(2) Tuition.--
``(A) Refund.--An institution of higher education shall
refund tuition or fees paid or credit the tuition and fees to
the next period of enrollment after a servicemember returns
from the leave of absence, at the option of the
servicemember. Notwithstanding the 180-day limitation
referred to in subsection (a)(2)(B) of section 484B of the
Higher Education Act of 1965 (20 U.S.C. 1091b), a
servicemember on a leave of absence under this section shall
not be treated as having withdrawn for purposes of such
section 484B unless the servicemember fails to return upon
the completion of the leave of absence.
``(B) Amount of refund.--If a servicemember requests a
refund for a period of enrollment, the percentage of the
tuition and fees that shall be refunded shall be equal to 100
percent minus--
``(i) the percentage of the period of enrollment (for which
the tuition and fees were paid) that was completed (as
determined in accordance with subsection (d) of such section
484B) as of the day the servicemember withdrew, provided that
such date occurs on or before the completion of 60 percent of
the period of enrollment; or
``(ii) 100 percent, if the day the person withdrew occurs
after the servicemember has completed 60 percent of the
period of enrollment.''.
(b) Clerical Amendment.--The table of contents of that Act
is amended by adding at the end the following new item:

``Sec. 707. Preservation of educational status and tuition.''.

Subtitle C--Compensation and Retirement Benefits

SEC. 1331. NONREDUCTION IN PAY FOR FEDERAL EMPLOYEES WHO ARE
RESERVES SERVING ON ACTIVE DUTY IN THE
UNIFORMED SERVICES FOR EXTENDED PERIODS.

(a) In General.--Subchapter IV of chapter 55 of title 5,
United States Code, is amended by adding at the end the
following:

[[Page S5827]]

``Sec. 5538. Nonreduction in pay of Reserves on active duty
in the uniformed services for extended periods

``(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 for a period of more
than 30 days 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 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.''.
(b) 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 of Reserves on active duty in the uniformed
services for extended periods.''

(c) Effective Date.--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 added by
this section) beginning on or after the date of enactment of
this Act.

SEC. 1332. CREDIT FOR INCOME DIFFERENTIAL FOR EMPLOYMENT OF
ACTIVATED MILITARY RESERVIST AND REPLACEMENT
PERSONNEL.

(a) In General.--Subpart B of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to
foreign tax credit, etc.) is amended by adding at the end the
following new section:

``SEC. 30B. EMPLOYER WAGE CREDIT FOR ACTIVATED MILITARY
RESERVISTS.

``(a) General Rule.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year
an amount equal to the sum of--
``(1) in the case of a small business employer, the
employment credit with respect to all qualified employees and
qualified replacement employees of the taxpayer, plus
``(2) the self-employment credit of a qualified self-
employed taxpayer.
``(b) Employment Credit.--For purposes of this section--
``(1) Qualified employees.--
``(A) In general.--The employment credit with respect to a
qualified employee of the taxpayer for any taxable year is
equal to the lesser of--
``(i) the excess, if any, of--

``(I) the qualified employee's average daily qualified
compensation for the taxable year, over
``(II) the average daily military pay and allowances
received by the qualified employee during the taxable year,

while participating in qualified reserve component duty to
the exclusion of the qualified employee's normal employment
duties for the number of days the qualified employee
participates in qualified reserve component duty during the
taxable year, including time spent in a travel status, or

``(ii) $6,000.

The employment credit, with respect to all qualified
employees, is equal to the sum of the employment credits for
each qualified employee under this subsection.
``(B) Average daily qualified compensation and average
daily military pay and allowances.--As used with respect to a
qualified employee--
``(i) the term `average daily qualified compensation' means
the qualified compensation of the qualified employee for the
taxable year divided by the difference between--

``(I) 365, and
``(II) the number of days the qualified employee
participates in qualified reserve component duty during the
taxable year, including time spent in a travel status, and

``(ii) the term `average daily military pay and allowances'
means--

``(I) the amount paid to the qualified employee during the
taxable year as military pay and allowances on account of the
qualified employee's participation in qualified reserve
component duty, divided by

``(II) the total number of days the qualified employee
participates in qualified reserve component duty, including
time spent in travel status.

``(C) Qualified compensation.--When used with respect to
the compensation paid or that would have been paid to a
qualified employee for any period during which the qualified
employee participates in qualified reserve component duty,
the term `qualified compensation' means--
``(i) compensation which is normally contingent on the
qualified employee's presence for work and which would be
deductible from the taxpayer's gross income under section
162(a)(1) if the qualified employee were present and
receiving such compensation,
``(ii) compensation which is not characterized by the
taxpayer as vacation or holiday pay, or as sick leave or pay,
or as any other form of pay for a nonspecific leave of
absence, and with respect to which the number of days the
qualified employee participates in qualified reserve
component duty does not result in any reduction in the amount
of vacation time, sick leave, or other nonspecific leave
previously credited to or earned by the qualified employee,
and
``(iii) group health plan costs (if any) with respect to
the qualified employee.
``(D) Qualified employee.--The term `qualified employee'
means a person who--
``(i) has been an employee of the taxpayer for the 91-day
period immediately preceding the period during which the
employee participates in qualified reserve component duty,
and
``(ii) is a member of the Ready Reserve of a reserve
component of an Armed Force of the United States as defined
in sections 10142 and 10101 of title 10, United States Code.
``(2) Qualified replacement employees.--
``(A) In general.--The employment credit with respect to a
qualified replacement employee of the taxpayer for any
taxable year is equal to the lesser of--
``(i) the individual's qualified compensation attributable
to service rendered as a qualified replacement employee, or
``(ii) $6,000.
The employment credit, with respect to all qualified
replacement employees, is equal to the sum of the employment
credits for each qualified replacement employee under this
subsection.
``(B) Qualified compensation.--When used with respect to
the compensation paid to a qualified replacement employee,
the term `qualified compensation' means--
``(i) compensation which is normally contingent on the
qualified replacement employee's presence for work and which
is deductible from the taxpayer's gross income under section
162(a)(1),
``(ii) compensation which is not characterized by the
taxpayer as vacation or holiday pay, or as sick leave or pay,
or as any other form of pay for a nonspecific leave of
absence, and
``(iii) group health plan costs (if any) with respect to
the qualified replacement employee.
``(C) Qualified replacement employee.--The term `qualified
replacement employee' means an individual who is hired to
replace a qualified employee or a qualified self-employed
taxpayer, but only with respect to the period during which
such employee or taxpayer participates in qualified reserve
component duty, including time spent in travel status.
``(c) Self-Employment Credit.--For purposes of this
section--
``(1) In general.--The self-employment credit of a
qualified self-employed taxpayer for any taxable year is
equal to the lesser of--
``(A) the excess, if any, of--

[[Page S5828]]

``(i) the self-employed taxpayer's average daily self-
employment income for the taxable year over
``(ii) the average daily military pay and allowances
received by the taxpayer during the taxable year, while
participating in qualified reserve component duty to the
exclusion of the taxpayer's normal self-employment duties for
the number of days the taxpayer participates in qualified
reserve component duty during the taxable year, including
time spent in a travel status, or
``(B) $6,000.
``(2) Average daily self-employment income and average
daily military pay and allowances.--As used with respect to a
self-employed taxpayer--
``(A) the term `average daily self-employment income' means
the self-employment income (as defined in section 1402(b)) of
the taxpayer for the taxable year plus the amount paid for
insurance which constitutes medical care for the taxpayer for
such year (within the meaning of section 162(l)) divided by
the difference between--
``(i) 365, and
``(ii) the number of days the taxpayer participates in
qualified reserve component duty during the taxable year,
including time spent in a travel status, and
``(B) the term `average daily military pay and allowances'
means--
``(i) the amount paid to the taxpayer during the taxable
year as military pay and allowances on account of the
taxpayer's participation in qualified reserve component duty,
divided by
``(ii) the total number of days the taxpayer participates
in qualified reserve component duty, including time spent in
travel status.
``(3) Qualified self-employed taxpayer.--The term
`qualified self-employed taxpayer' means a taxpayer who--
``(A) has net earnings from self-employment (as defined in
section 1402(a)) for the taxable year, and
``(B) is a member of the Ready Reserve of a reserve
component of an Armed Force of the United States.
``(d) Coordination With Other Credits.--The amount of
credit otherwise allowable under sections 51(a) and 1396(a)
with respect to any employee shall be reduced by the credit
allowed by this section with respect to such employee.
``(e) Limitations.--
``(1) Application with other credits.--The credit allowed
under subsection (a) for any taxable year shall not exceed
the excess (if any) of--
``(A) the regular tax for the taxable year reduced by the
sum of the credits allowable under subpart A and sections 27,
29, and 30, over
``(B) the tentative minimum tax for the taxable year.
``(2) Disallowance for failure to comply with employment or
reemployment rights of members of the reserve components of
the armed forces of the united states.--No credit shall be
allowed under subsection (a) to a taxpayer for--
``(A) any taxable year, beginning after the date of the
enactment of this section, in which the taxpayer is under a
final order, judgment, or other process issued or required by
a district court of the United States under section 4323 of
title 38 of the United States Code with respect to a
violation of chapter 43 of such title, and
``(B) the 2 succeeding taxable years.
``(3) Disallowance with respect to persons ordered to
active duty for training.--No credit shall be allowed under
subsection (a) to a taxpayer with respect to any period by
taking into account any person who is called or ordered to
active duty for any of the following types of duty:
``(A) Active duty for training under any provision of title
10, United States Code.
``(B) Training at encampments, maneuvers, outdoor target
practice, or other exercises under chapter 5 of title 32,
United States Code.
``(C) Full-time National Guard duty, as defined in section
101(d)(5) of title 10, United States Code.
``(f) General Definitions and Special Rules.--For purposes
of this section--
``(1) Small business employer.--
``(A) In general.--The term `small business employer'
means, with respect to any taxable year, any employer who
employed an average of 50 or fewer employees on business days
during such taxable year.
``(B) Controlled groups.--For purposes of subparagraph (A),
all persons treated as a single employer under subsection
(b), (c), (m), or (o) of section 414 shall be treated as a
single employer.
``(2) Military pay and allowances.--The term `military pay'
means pay as that term is defined in section 101(21) of title
37, United States Code, and the term `allowances' means the
allowances payable to a member of the Armed Forces of the
United States under chapter 7 of that title.
``(3) Qualified reserve component duty.--The term
`qualified reserve component duty' means active duty
performed for a period not less than 180 days under a call or
order to active duty under a provision of law referred to in
section 101(a)(13)(B) of title 10, United States Code.
``(4) Carryback and carryforward allowed.--
``(A) In general.--If the credit allowable under subsection
(a) for a taxable year exceeds the amount of the limitation
under subsection (e)(1) for such taxable year (in this
paragraph referred to as the `unused credit year'), such
excess shall be a credit carryback to each of the 3 taxable
years preceding the unused credit year and a credit
carryforward to each of the 20 taxable years following the
unused credit year.
``(B) Rules.--Rules similar to the rules of section 39
shall apply with respect to the credit carryback and credit
carryforward under subparagraph (A).
``(5) Certain rules to apply.--Rules similar to the rules
of subsections (c), (d), and (e) of section 52 shall
apply.''.
(b) No Deduction for Compensation Taken Into Account for
Credit.--Section 280C(a) of the Internal Revenue Code of 1986
(relating to rule for employment credits) is amended--
(1) by inserting ``or compensation'' after ``salaries'',
and
(2) by inserting ``30B,'' before ``45A(a)''.
(c) Conforming Amendment.--Section 55(c)(2) of the Internal
Revenue Code of 1986 is amended by inserting ``30B(e)(1),''
after ``30(b)(3),''.
(d) Clerical Amendment.--The table of sections for subpart
B of part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986 is amended by adding at the end 30A the
following new item:

``Sec. 30B. Employer wage credit for activated military reservists.''.

(e) Effective Date.--The amendments made by this section
shall apply to amounts paid after the date of the enactment
of this Act, in taxable years ending after such date.

SEC. 1333. REDUCED MINIMUM AGE FOR ELIGIBILITY FOR NON-
REGULAR SERVICE RETIRED PAY.

Section 12731(a)(1) of title 10, United States Code, is
amended by striking ``60 years of age'' and inserting ``55
years of age''.

Subtitle D--Health Care Benefits

SEC. 1341. EXPANDED ELIGIBILITY OF READY RESERVE MEMBERS
UNDER TRICARE PROGRAM.

(a) Unconditional Eligibility.--Subsection (a) of section
1076b of title 10, United States Code, is amended by striking
``and receive benefits'' and all that follows through ``an
employer-sponsored health benefits plan''.
(b) Permanent Authority.--Subsection (l) of such section is
repealed.
(c) Conforming Amendments.--Such section is further
amended--
(1) by striking subsections (i) and (j); and
(2) by redesignating subsection (k) as subsection (i).

SEC. 1342. CONTINUATION OF NON-TRICARE HEALTH BENEFITS PLAN
COVERAGE FOR CERTAIN RESERVES CALLED OR ORDERED
TO ACTIVE DUTY AND THEIR DEPENDENTS.

(a) Required Continuation.--(1) Chapter 55 of title 10,
United States Code, is amended by inserting after section
1078a the following new section:

``Sec. 1078b. Continuation of non-TRICARE health benefits
plan coverage for dependents of certain Reserves called or
ordered to active duty

``(a) Payment of Premiums.--The Secretary concerned shall
pay the applicable premium to continue in force any qualified
health benefits plan coverage for the members of the family
of an eligible reserve component member for the benefits
coverage continuation period if timely elected by the member
in accordance with regulations prescribed under subsection
(g).
``(b) Eligible Member; Family Members.--(1) A member of a
reserve component is eligible for payment of the applicable
premium for continuation of qualified health benefits plan
coverage under subsection (a) while serving on active duty
for a period of more than 30 days pursuant to a call or order
issued under a provision of law referred to in section
101(a)(13)(B) of this title during a war or a national
emergency declared by the President or Congress.
``(2) For the purposes of this section, the members of the
family of an eligible reserve component member include only
the member's dependents described in subparagraphs (A), (D),
and (I) of section 1072(2) of this title.
``(c) Qualified Health Benefits Plan Coverage.--For the
purposes of this section, health benefits plan coverage for
the members of the family of a reserve component member
called or ordered to active duty is qualified health benefits
plan coverage if--
``(1) the coverage was in force on the date on which the
Secretary notified the reserve component member that issuance
of the call or order was pending or, if no such notification
was provided, the date of the call or order;
``(2) on such date, the coverage applied to the reserve
component member and members of the family of the reserve
component member; and
``(3) the coverage has not lapsed.
``(d) Applicable Premium.--The applicable premium payable
under this section for continuation of health benefits plan
coverage for the family members of a reserve component member
is the amount of the premium payable by the member for the
coverage of the family members.
``(e) Benefits Coverage Continuation Period.--The benefits
coverage continuation period under this section for qualified
health benefits plan coverage for the family members of an
eligible reserve component member called or ordered to active
duty is the period that--
``(1) begins on the date of the call or order; and

[[Page S5829]]

``(2) ends at the end of the day on which the active duty
terminates.
``(f) Extension of Period of COBRA Coverage.--
Notwithstanding any other provision of law--
``(1) any period of coverage under a COBRA continuation
provision (as defined in section 9832(d)(1) of the Internal
Revenue Code of 1986) for an eligible reserve component
member under this section shall be deemed to be equal to the
benefits coverage continuation period for such member under
this section; and
``(2) with respect to the election of any period of
coverage under a COBRA continuation provision (as so
defined), rules similar to the rules under section
4980B(f)(5)(C) of such Code shall apply.
``(g) Regulations.--The Secretary of Defense shall
prescribe regulations for carrying out this section. The
regulations shall include such requirements for making an
election of payment of applicable premiums as the Secretary
considers appropriate.''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section
1078a the following new item:

``1078b. Continuation of non-TRICARE health benefits plan coverage for
dependents of certain Reserves called or ordered to
active duty.''.

(b) Applicability.--Section 1078b of title 10, United
States Code (as added by subsection (a)), shall apply with
respect to calls or orders of members of reserve components
of the Armed Forces to active duty as described in subsection
(b) of such section, that are issued by the Secretary of a
military department before, on, or after the date of the
enactment of this Act, but only with respect to qualified
health benefits plan coverage (as described in subsection (c)
of such section) that is in effect on or after the date of
the enactment of this Act.
______

SA 3194. Mrs. MURRAY submitted an amendment intended to be proposed
by her to the bill S. 2400, to authorize appropriations for fiscal year
2005 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

On page 247, after line 21, insert the following:

SEC. 717. RESTORATION OF PREVIOUS POLICY REGARDING
RESTRICTIONS ON USE OF DEPARTMENT OF DEFENSE
MEDICAL FACILITIES OVERSEAS.

Section 1093(b) of title 10, United States Code, is
amended--
(1) by inserting ``in the United States'' after ``treatment
facility''; and
(2) by inserting ``in the United States'' after
``Department of Defense''.
______

SA 3195. Mrs. MURRAY (for herself and Mr. Edwards) submitted an
amendment intended to be proposed by her to the bill S. 2400, to
authorize appropriations for fiscal year 2005 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe personnel
strengths for such fiscal year for the Armed Services, and for other
purposes; which was ordered to lie on the table; as follows:

At the end of title X, add the following:

SEC. __. CHILD CARE ASSISTANCE FOR MILITARY DEPENDENTS.

(a) Authorization of Appropriations.--Section 658B of the
Child Care and Development Block Grant Act of 1990 (42 U.S.C.
9858) is amended--
(1) by striking ``There is'' and inserting ``(a) In
General.--There is'';
(2) in subsection (a), as so designated, by inserting
``(except section 658T)'' after ``this subchapter''; and
(3) by adding at the end the following:
``(b) Child Care for Certain Military Dependents.--There is
authorized to be appropriated to carry out section 658T
$200,000,000 for each of fiscal years 2005 through 2009.''.
(b) Child Care Assistance.--The Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) is amended
by adding at the end the following:

``SEC. 658T. CHILD CARE ASSISTANCE FOR MILITARY DEPENDENTS.

``(a) In General.--The Secretary shall make grants to
eligible spouses to assist the spouses in paying for the cost
of child care services provided to dependents by eligible
child care providers. In making the grants, the Secretary
shall give priority to eligible spouses of qualified members
on active duty for a period of more than 6 months.
``(b) Definitions.--In this section:
``(1) Active duty.--The term `active duty' means duty under
a call or order to active duty under a provision of law
referred to in section 101(a)(13)(B) of title 10, United
States Code.
``(2) Active duty for a period of more than 30 days.--The
term `active duty for a period of more than 30 days' has the
meaning given the term in section 101(d)(2) of title 10,
United States Code.
``(3) Dependent.--The term `dependent' means an individual
who is--
``(A) a dependent, as defined in section 401 of title 37,
United States Code, except that such term does not include a
person described in paragraph (1) or (3) of subsection (a) of
such section; and
``(B) an individual described in subparagraphs (A) and (B)
of section 658P(4).
``(4) Eligible spouse.--The term `eligible spouse' means a
person who--
``(A) is a parent of one or more dependents of a qualified
member; and
``(B) has the primary responsibility for the care of one or
more such dependents.
``(5) Qualified member.--The term `qualified member' means
a member of the reserve components of the Armed Forces on
active duty for a period of more than 30 days.
``(c) Applications.--To be eligible to receive a grant
under this section, a spouse shall submit an application to
the Secretary, at such time, in such manner, and containing
such information as the Secretary may require, including a
description of the eligible child care provider who provides
the child care services assisted through the grant.
``(d) Rule.--The provisions of this subchapter, other than
section 658P and provisions referenced in section 658P, that
apply to assistance provided under this subchapter shall not
apply to assistance provided under this section.''.
(c) Conforming Amendments.--Section 658O of the Child Care
and Development Block Grant Act of 1990 (42 U.S.C. 9858m) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``appropriated under this
subchapter'' and inserting ``appropriated under section
658B(a)''; and
(B) in paragraph (2), by striking ``appropriated under
section 658B'' and inserting ``appropriated under section
658(a)''; and
(2) in subsection (b)(1), by striking ``appropriated under
section 658B'' and inserting ``appropriated under section
658(a)''.
______

SA 3196. Mr. DURBIN (for himself, Ms. Mikulski, Ms. Landrieu, Mrs.
Murray, Mr. Dayton, and Mr. Corzine) submitted an amendment intended to
be proposed by him to the bill S. 2400, to authorize appropriations for
fiscal year 2005 for military activities of the Department of Defense,
for military construction, and for defense activities of the Department
of Energy, to prescribe personnel strengths for such fiscal year for
the Armed Services, and for other purposes; which was ordered to lie on
the table; as follows:

At the appropriate place, insert the following:

SEC. __. NONREDUCTION IN PAY WHILE FEDERAL EMPLOYEE IS
PERFORMING ACTIVE SERVICE IN THE UNIFORMED
SERVICES OR NATIONAL GUARD.

(a) Short Title.--This section may be cited as the
``Reservists Pay Security Act of 2004''.
(b) 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
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;

[[Page S5830]]

``(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 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) For purposes of 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.''.
(c) Clerical 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.''.

(d) Effective Date.--
(1) In general.--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
Act.
(2) Conditional retroactive application.--
(A) In general.--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 October 11, 2002 through the
date of enactment of this Act, subject to the availability of
appropriations.
(B) Authorization of appropriations.--There are authorized
to be appropriated $100,000,000 for purposes of subparagraph
(A).
______

SA 3197. Mr. DAYTON (for himself and Mr. Feingold) submitted an
amendment intended to be proposed by him to the bill S. 2400, to
authorize appropriations for fiscal year 2005 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe personnel
strengths for such fiscal year for the Armed Services, and for other
purposes; which was ordered to lie on the table; as follows:

Beginning on page 172, strike line 11 and all that follows
through page 176, line 21.
______

SA 3198. Mr. INHOFE submitted an amendment intended to be proposed by
him to the bill S. 2400, to authorize appropriations for fiscal year
2005 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

On page 269, line 20, strike ``$150,000,000'' and insert
``$500,000,000''.
______

SA 3199. Mr. INHOFE submitted an amendment intended to be proposed by
him to the bill S. 2400, to authorize appropriations for fiscal year
2005 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

On page 195, between lines 10 and 11, insert the following:

SEC. 868. AVAILABILITY OF FEDERAL SUPPLY SCHEDULE SUPPLIES
AND SERVICES TO UNITED SERVICE ORGANIZATIONS,
INCORPORATED.

Section 220105(7) of title 36, United States Code, is
amended by inserting before the semicolon at the end the
following: ``, including to acquire from the General Services
Administration supplies and services on the Federal Supply
Schedule of the General Services Administration as if the
corporation were an executive agency of the United States''.
______

SA 3200. Mr. INHOFE submitted an amendment intended to be proposed by
him to the bill S. 2400, to authorize appropriations for fiscal year
2005 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

At the end of subtitle F of title X, add the following:

SEC. 1055. ASSISTANCE TO FOREIGN MILITARY AND SECURITY FORCES
FOR PEACEKEEPING AND PEACE ENFORCEMENT
OPERATIONS.

(a) In General.--Notwithstanding any other provision of
law, within the limitation established in subsection (c), the
Secretary of Defense may--
(1) with the concurrence of the Secretary of State, provide
assistance in fiscal year 2005 to military or security forces
of a country to enhance their capability to participate in an
international peacekeeping or peace enforcement operation; or
(2) transfer funds to the Secretary of State for the
purpose of providing such assistance.
(b) Types of Assistance.--Assistance provided under
subsection (a) may include equipment, supplies, services,
training, and funding.
(c) Limitation.--The cost of assistance provided under
subsection (a) may not exceed $100,000,000 in fiscal year
2005.
(d) Construction of Authority.--The authority to provide
assistance under subsection (a) is in addition to any other
authority to provide assistance to foreign nations or forces
under any other provision of law.
______

SA 3201. Mr. KENNEDY (for himself, Mrs. Murray, and Ms. Mikulski)
submitted an amendment intended to be proposed by him to the bill S.
2400, to authorize appropriations for fiscal year 2005 for military
activities of the Department of Defense, for military construction, and
for defense activities of the Department of Energy, to prescribe
personnel strengths for such fiscal year for the Armed Services, and
for other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle F of title III, insert the
following:

SEC. 353. EMERGENCY FUNDING FOR LOCAL EDUCATIONAL AGENCIES
ENROLLING MILITARY DEPENDENT CHILDREN.

(a) Short Title.--This section may be cited as the ``Help
for Military Children Affected by War Act of 2004''.
(b) Grants Authorized.--The Secretary of Defense is
authorized to award grants, from distributions under
subsection (e), to eligible local educational agencies for
the additional education, counseling, and other needs of
military dependent children who are affected by war or
dramatic military decisions.
(c) Definitions.--In this section:
(1) Eligible local educational agency.-- The term
``eligible local educational agency'' means a local
educational agency that--
(A) had a number of military dependent children in average
daily attendance in the schools served by the local
educational agency during the school year preceding the
school year for which the determination is made, that--
(i) equaled or exceeded 20 percent of the number of all
children in average daily attendance in the schools served by
such agency during the preceding school year; or
(ii) was 1,000 or more,
whichever is less; and
(B) is designated by the Secretary of Defense as impacted
by--
(i) Operation Iraqi Freedom;
(ii) Operation Enduring Freedom;
(iii) high operations tempo;
(iv) military base realignment or closure; or
(v) privatization of military housing.
(2) Local educational agency.--The term ``local educational
agency'' has the meaning given the term in section 9101 of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801).
(3) Military dependent child.--The term ``military
dependent child'' means a child described in subparagraph (B)
or (D)(i) of section 8003(a)(1) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7703(a)(1)).
(d) Use of funds.--Grant funds provided under this section
shall be used for--
(1) tutoring, after-school, and dropout prevention
activities for military dependent children with a parent who
is or has been impacted by war-related action described in
clause (i), (ii), or (iii) of subsection (c)(1)(B);
(2) professional development of teachers, principals, and
counselors on the needs of military dependent children with a
parent who is or has been impacted by war-related action
described in clause (i), (ii), or (iii) of subsection
(c)(1)(B);
(3) counseling and other comprehensive support services for
military dependent children with a parent who is or has been
impacted by war-related action described in clause (i), (ii),
or (iii) of subsection (c)(1)(B), including the hiring of a
military-school liaison; and
(4) other basic educational activities associated with an
increase in military dependent children.

[[Page S5831]]

(e) Distributions.--
(1) Emergency allocation petition.--Notwithstanding any
other provision of this subsection and from not more than 10
percent of funds appropriated under subsection (f)(1) for a
fiscal year, the Secretary of Defense may allocate, on a pro
rata basis, such funds to eligible local educational agencies
that anticipate a rapid increase in military dependent
children and petition the Secretary of Defense for an
emergency allocation of such funds.
(2) Pro rata distribution.--Each eligible local educational
agency not receiving funds under paragraph (1) for a fiscal
year shall receive a grant under this section for the fiscal
year in an amount that bears the same relation to the funds
appropriated under subsection (f)(1) and not allocated under
paragraph (1) for the fiscal year that do not exceed
$20,000,000 as the number of military dependent children who
were in average daily attendance in the schools served by
such agency (as determined by the Secretary of Education) for
the preceding or current school year, whichever is greater,
bears to the total number of military dependent children who
were in average daily attendance in the schools served by all
eligible local educational agencies in the preceding school
year (as so determined).
(3) Hold harmless.--The Secretary of Defense shall
distribute funds appropriated under subsection (f)(1) and not
allocated under paragraph (1) for a fiscal year that are in
excess of $20,000,000 on a pro rata basis to each eligible
local educational agency not receiving funds under paragraph
(1) for the fiscal year that experiences (A) a decrease of 20
percent or more in the number of military dependent children
who were in average daily attendance in the schools served by
such agency, (B) a decrease of 20 percent or more in the
amount of funds received under section 8003(b) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7703(b)), or (C) a decrease of 1,000 or more military
dependent children who were in average daily attendance in
the schools served by such agency, from the school year
preceding the school year for which the determination is made
to the school year for which the determination is made.
(f) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Department of Defense such sums as may be necessary to
carry out this section for fiscal year 2005 and each of the 2
succeeding fiscal years.
(2) Special rule.--Funds appropriated under paragraph (1)
are in addition to any funds made available to local
educational agencies under section 351 or 352 of this Act or
section 8003 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7703).
______

SA 3202. Mr. DASCHLE submitted an amendment intended to be proposed
by him to the bill S. 2400, to authorize appropriations for fiscal year
2005 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

On page 131, between lines 17 and 18, insert the
following:

SEC. 653. RELIEF FOR MOBILIZED MILITARY RESERVISTS FROM
CERTAIN FEDERAL AGRICULTURAL LOAN OBLIGATIONS.

The Consolidated Farm and Rural Development Act is amended
by inserting after section 331F (7 U.S.C. 1981f) the
following:

``SEC. 332. RELIEF FOR MOBILIZED MILITARY RESERVISTS FROM
CERTAIN AGRICULTURAL LOAN OBLIGATIONS.

``(a) Definition of Mobilized Military Reservist.--In this
section, the term `mobilized military reservist' means an
individual who--
``(1) is on active duty under section 688, 12301(a),
12301(g), 12302, 12304, 12306, or 12406, or chapter 15 of
title 10, United States Code, or any other provision of law
during a war or during a national emergency declared by the
President or Congress, regardless of the location at which
the active duty service is performed; or
``(2) in the case of a member of the National Guard, is on
full-time National Guard duty (as defined in section
101(d)(5) of title 10, United States Code) under a call to
active service authorized by the President or the Secretary
of Defense for a period of more than 30 consecutive days
under section 502(f) of title 32, United States Code, for
purposes of responding to a national emergency declared by
the President and supported by Federal funds.
``(b) Forgiveness of Interest Payments Due While Borrower
Is a Mobilized Military Reservist.--Any requirement that a
borrower of a direct loan made under this title make any
interest payment on the loan that would otherwise be required
to be made while the borrower is a mobilized military
reservist is rescinded.
``(c) Deferral of Principal Payments Due While or After
Borrower Is a Mobilized Military Reservist.--The due date of
any payment of principal on a direct loan made to a borrower
under this title that would otherwise be required to be made
while or after the borrower is a mobilized military reservist
is deferred for a period equal in length to the period for
which the borrower is a mobilized military reservist.
``(d) Nonaccrual of Interest.--Interest on a direct loan
made to a borrower described in this section shall not accrue
during the period the borrower is a mobilized military
reservist.
``(e) Borrower Not Considered To Be Delinquent or Receiving
Debt Forgiveness.--Notwithstanding section 373 or any other
provision of this title, a borrower who receives assistance
under this section shall not, as a result of the assistance,
be considered to be delinquent or receiving debt forgiveness
for purposes of receiving a direct or guaranteed loan under
this title.''.
______

SA 3203. Mr. DAYTON submitted an amendment intended to be proposed by
him to the bill S. 2400, to authorize appropriations for fiscal year
2005 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

On page 247, between lines 13 and 14, insert the
following:

SEC. 1022. PERIODIC DETAILED ACCOUNTING FOR OPERATIONS OF THE
GLOBAL WAR ON TERRORISM.

(a) Monthly Accounting.--Not later than 30 days after the
end of each month, the Secretary of Defense shall submit to
the chairmen and ranking members of the Committees on Armed
Services of the Senate and the House of Representatives and
to all the members of the Committees on Appropriations of the
Senate and the House of Representatives, for such month for
each operation described in subsection (b), a full accounting
of all costs incurred for such operation during such month
and all amounts expended during such month for such
operation, and the purposes for which such costs were
incurred and such amounts were expended.
(b) Operations Covered.--The operations referred to in
subsection (a) are as follows:
(1) Operation Iraqi Freedom.
(2) Operation Enduring Freedom.
(3) All other operations relating to the Global War on
Terrorism.
(c) Requirement for Comprehensiveness.--For the purpose of
providing a full and complete accounting of the costs and
expenditures under subsection (a) for operations described in
subsection (b), the Secretary shall account in the monthly
submission under subsection (a) for all costs and
expenditures that are reasonably attributable to such
operations, including personnel costs.
______

SA 3204. Mrs. CLINTON (for herself, Mr. Leahy, and Mr. Kennedy)
submitted an amendment intended to be proposed by her to the bill S.
2400, to authorize appropriations for fiscal year 2005 for military
activities of the Department of Defense, for military construction, and
for defense activities of the Department of Energy, to prescribe
personnel strengths for such fiscal year for the Armed Services, and
for other purposes; which was ordered to lie on the table; as follows:

On page 372, after line 17, insert the following:

SEC. 2844. PROHIBITION ON CLOSURE OF COMMISSARY STORES, MWR
RETAIL FACILITIES, AND DEPENDENT ELEMENTARY AND
SECONDARY SCHOOLS WITHOUT AUTHORIZATION OF
CONGRESS.

(a) Prohibition.--Notwithstanding any other provision of
law, the Secretary of Defense may not close any commissary
store, MWR retail facility, or Department of Defense
dependent elementary or secondary school without the specific
authorization of Congress for such action by law.
(b) Comptroller General Report.--Not later than 90 days
after the date of the enactment of this Act, the Comptroller
General of the United States shall submit to the appropriate
committees of Congress a report on the policy of the
Department of Defense, and the criteria utilized by the
Department, with respect to the closure of commissary stores,
MWR retail facilities, and Department of Defense dependent
elementary and secondary schools, including an assessment
whether or not such policy and criteria are consistent with
Department policies and procedures on the preservation of the
quality of life of members of the Armed Forces.
(c) Definitions.--In this section:
(1) The term ``appropriate committees of Congress'' means--
(A) the Committee on Armed Services of the Senate; and
(B) the Committee on Armed Services of the House of
Representatives.
(2) The term ``MWR retail facility'' means an exchange
store or other revenue-generating facility operated by
nonappropriated fund activities of the Department of Defense
for the morale, welfare, and recreation of members of the
Armed Forces.
______

SA 3205. Mr. WARNER (for himself and Mr. Levin) proposed an amendment
to the bill S. 2400, to authorize appropriations for fiscal year 2005
for military activities of the Department of Defense, for military
construction,

[[Page S5832]]

and for defense activities of the Department of Energy, to prescribe
personnel strengths for such fiscal year for the Armed Services, and
for other purposes; as follows:

On page 18, strike line 11, strike ``AUTHORIZATION OF
APPROPRIATIONS FOR''.
On page 18, strike lines 15 through 24, and insert the
following:
(a) Amount.--Of the amount authorized to be appropriated
for the Army for fiscal year 2005 for other procurement under
section 101(5), $610,000,000 shall be available for both of
the purposes described in subsection (b) and may be used for
either or both of such purposes.
(b) Purposes.--The purposes referred to in subsection (a)
are as follows:
On page 19, beginning on line 7, strike ``authorized to be
appropriated in'' and insert ``available under''.
On page 19, line 17, strike ``authorized to be
appropriated'' and insert ``available under''.
______

SA 3206. Mr. WARNER proposed an amendment to the bill S. 2400, to
authorize appropriations for fiscal year 2005 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe personnel
strengths for such fiscal year for the Armed Services, and for other
purposes; as follows:

On page 25, line 25, strike ``$9,698,958,000'' and insert
``$9,686,958,000''.
______

SA 3207. Mr. WARNER proposed an amendment to the bill S. 2400, to
authorize appropriations for fiscal year 2005 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe personnel
strengths for such fiscal year for the Armed Services, and for other
purposes; as follows:

On page 318, line 2, strike ``$980,557,000'' and insert
``$1,062,463,000''.
______

SA 3208. Mr. WARNER proposed an amendment to the bill S. 2400, to
authorize appropriations for fiscal year 2005 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe personnel
strengths for such fiscal year for the Armed Services, and for other
purposes; as follows:

On page 247, between lines 13 and 14, insert the following:

SEC. 1022. TECHNICAL CORRECTION TO REFERENCE TO CERTAIN
ANNUAL REPORTS.

Section 2474(f)(2) of title 10, United States Code, is
amended by striking ``section 2466(e)'' and inserting
``section 2466(d)''.
______

SA 3209. Mr. WARNER (for himself and Mr. Levin) proposed an amendment
to the bill S. 2400, to authorize appropriations for fiscal year 2005
for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; as follows:

At the end of title VII, add the following:

SEC.  . CONTINUATION OF SUB-ACUTE CARE FOR TRANSITION PERIOD.

Section 1074j(b) of title 10, United States Code, is
amended by adding at the end the following new paragraph:
``(4) The Secretary of Defense may take such actions as are
necessary to ensure that there is an effective transition in
the furnishing of part-time or intermittent home health care
benefits for covered beneficiaries who were receiving such
benefits before the establishment of the program under this
section. The actions taken under this paragraph may include
the continuation of such benefits on an extended basis for
such time as the Secretary determines appropriate.''.
______

SA 3210. Mr. WARNER (for himself and Mr. Levin) proposed an amendment
to the bill S. 2400, to authorize appropriations for fiscal year 2005
for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; as follows:

At the end of subtitle B of title VII, insert the
following:

SEC. 717. TEMPORARY AUTHORITY FOR WAIVER OF COLLECTION OF
PAYMENTS DUE FOR CHAMPUS BENEFITS RECEIVED BY
DISABLED PERSONS UNAWARE OF LOSS OF CHAMPUS
ELIGIBILITY.

(a) Authority To Waive Debt.--(1) The Secretary of Defense,
in consultation with the other administering Secretaries, may
waive (in whole or in part) the collection of payments
otherwise due from a person described in subsection (b) for
health benefits received by such person under section 1086 of
title 10, United States Code, after the termination of that
person's eligibility for such benefits.
(2) If the Secretary of Defense waives collection of
payments from a person under paragraph (1), the Secretary may
also authorize a continuation of benefits for such person
under such section 1086 for a period ending not later than
the end of the period specified in subsection (c) of this
section.
(b) Eligible Persons.--A person is eligible for relief
under subsection (a)(1) if--
(1) the person is described in paragraph (1) of subsection
(d) of section 1086 of title 10, United States Code;
(2) except for such paragraph, the person would have been
eligible for the health benefits under such section; and
(3) at the time of the receipt of such benefits--
(A) the person satisfied the criteria specified in
paragraph (2)(B) of such subsection (d); and
(B) the person was unaware of the loss of eligibility to
receive the health benefits.
(c) Period of Applicability.--The authority provided under
this section to waive collection of payments and to continue
benefits shall apply, under terms and conditions prescribed
by the Secretary of Defense, to health benefits provided
under section 1086 of title 10, United States Code, during
the period beginning on July 1, 1999, and ending at the end
of December 31, 2004.
(d) Consultation With Other Administering Secretaries.--(1)
The Secretary of Defense shall consult with the other
administering Secretaries in exercising the authority
provided in this section.
(2) In this subsection, the term ``administering
Secretaries'' has the meaning given such term in section
1072(3) of title 10, United States Code.
______

SA 3211. Mr. WARNER (for himself and Mr. Allard) proposed an
amendment to the bill S. 2400, to authorize appropriations for fiscal
year 2005 for military activities of the Department of Defense, for
military construction, and for defense activities of the Department of
Energy, to prescribe personnel strengths for such fiscal year for the
Armed Services, and for other purposes; as follows:

Strike section 3120 and insert the following:

SEC. 3120. LOCAL STAKEHOLDER ORGANIZATIONS FOR DEPARTMENT OF
ENERGY ENVIRONMENTAL MANAGEMENT 2006 CLOSURE
SITES.

(a) Establishment.--(1) The Secretary of Energy shall
establish for each Department of Energy Environmental
Management 2006 closure site a local stakeholder organization
having the responsibilities set forth in subsection (c).
(2) The local stakeholder organization shall be established
in consultation with interested elected officials of local
governments in the vicinity of the closure site concerned.
(b) Composition.--A local stakeholder organization for a
Department of Energy Environmental Management 2006 closure
site under subsection (a) shall be composed of such elected
officials of local governments in the vicinity of the closure
site concerned as the Secretary considers appropriate to
carry out the responsibilities set forth in subsection (c)
who agree to serve on the organization, or the designees of
such officials.
(c) Responsibilities.--A local stakeholder organization for
a Department of Energy Environmental Management 2006 closure
site under subsection (a) shall--
(1) solicit and encourage public participation in
appropriate activities relating to the closure and post-
closure operations of the site;
(2) disseminate information on the closure and post-closure
operations of the site to the State government of the State
in which the site is located, local and Tribal governments in
the vicinity of the site, and persons and entities having a
stake in the closure or post-closure operations of the site;
(3) transmit to appropriate officers and employees of the
Department of Energy questions and concerns of governments,
persons, and entities referred to paragraph (2) on the
closure and post-closure operations of the site; and
(4) perform such other duties as the Secretary and the
local stakeholder organization jointly determine appropriate
to assist the Secretary in meeting post-closure obligations
of the Department at the site.
(d) Deadline for Establishment.--The local stakeholder
organization for a Department of Energy Environmental
Management 2006 closure site shall be established not later
than six months before the closure of the site.
(e) Inapplicability of Federal Advisory Committee Act.--The
Federal Advisory Committee Act (5 U.S.C. App.) shall not
apply to local stakeholder organizations under this section.
(f) Department of Energy Environmental Management 2006
Closure Site Defined.--In this section, the term ``Department
of Energy Environmental Management 2006 closure site'' means
each clean up site of the Department of Energy scheduled by
the Department as of January 1, 2004, for closure in 2006.
______

SA 3212. Mr. LEVIN (for Mr. Byrd) proposed an amendment to the bill
S. 2400, to authorize appropriations for fiscal year 2005 for military
activities of the Department of Defense, for military construction, and
for defense activities of the Department of Energy,

[[Page S5833]]

to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; as follows:

On page 177, strike lines 14 through 24, and insert the
following:
(b) Increase and Realignment of Workforce.--(1)(A) During
fiscal years 2005, 2006, and 2007, the Secretary of Defense
shall increase the number of persons employed in the defense
acquisition and support workforce as follows:
(i) During fiscal year 2005, to 105 percent of the baseline
number (as defined in subparagraph (B)).
(ii) During fiscal year 2006, to 110 percent of the
baseline number.
(iii) During fiscal year 2007, to 115 percent of the
baseline number.
(B) In this paragraph, the term ``baseline number'', with
respect to persons employed in the defense acquisition and
support workforce, means the number of persons employed in
such workforce as of September 30, 2003 (determined on the
basis of full-time employee equivalence).
(C) The Secretary of Defense may waive a requirement in
subparagraph (A) and, subject to subsection (a), employ in
the defense acquisition and support workforce a lesser number
of employees if the Secretary determines and certifies to the
congressional defense committees that the cost of increasing
such workforce to the larger size as required under that
subparagraph would exceed the savings to be derived from the
additional oversight that would be achieved by having a
defense acquisition and support workforce of such larger
size.
(2) During fiscal years 2005, 2006, and 2007, the Secretary
of Defense may realign any part of the defense acquisition
and support workforce to support reinvestment in other,
higher priority positions in such workforce.
______

SA 3213. Mr. LEVIN (for Mr. Reed) proposed an amendment to the bill
S. 2400, to authorize appropriations for fiscal year 2005 for military
activities of the Department of Defense, for military construction, and
for defense activities of the Department of Energy, to prescribe
personnel strengths for such fiscal year for the Armed Services, and
for other purposes; as follows:

Strike section 1005, and insert the following:

SEC. 1005. UNIFORM FUNDING AND MANAGEMENT OF SERVICE ACADEMY
ATHLETIC AND RECREATIONAL EXTRACURRICULAR
PROGRAMS.

(a) United States Military Academy.--(1) Chapter 403 of
title 10, United States Code, is amended by adding at the end
the following new section:

``Sec. 4359. Athletic and recreational extracurricular
programs: uniform funding

``The authority and conditions provided in section 2494 of
this title shall also apply to any athletic or recreational
extracurricular program of the Academy that--
``(1) is not considered a morale, welfare, or recreation
program referred to in such section;
``(2) is funded out of appropriated funds;
``(3) is supported by a supplemental mission
nonappropriated fund instrumentality; and
``(4) is not operated as a private organization.''.
(2) The table of sections at the beginning of such title is
amended by adding at the end the following new item:

``4359. Athletic and recreational extracurricular programs: uniform
funding.''.

(b) United States Naval Academy.--(1) Chapter 603 of title
10, United States Code, is amended by adding at the end the
following new section:

``Sec. 6978. Athletic and recreational extracurricular
programs: uniform funding

``The authority and conditions provided in section 2494 of
this title shall also apply to any athletic or recreational
extracurricular program of the Naval Academy that--
``(1) is not considered a morale, welfare, or recreation
program referred to in such section;
``(2) is funded out of appropriated funds;
``(3) is supported by a supplemental mission
nonappropriated fund instrumentality; and
``(4) is not operated as a private organization.''.
(2) The table of sections at the beginning of such title is
amended by adding at the end the following new item:

``6978. Athletic and recreational extracurricular programs: uniform
funding.''.

(c) United States Air Force Academy.--(1) Chapter 903 of
title 10, United States Code, is amended by adding at the end
the following new section:

``Sec. 9358. Athletic and recreational extracurricular
programs: uniform funding

``The authority and conditions provided in section 2494 of
this title shall also apply to any athletic or recreational
extracurricular program of the Academy that--
``(1) is not considered a morale, welfare, or recreation
program referred to in such section;
``(2) is funded out of appropriated funds;
``(3) is supported by a supplemental mission
nonappropriated fund instrumentality; and
``(4) is not operated as a private organization.''.
(2) The table of sections at the beginning of such title is
amended by adding at the end the following new item:

``9358. Athletic and recreational extracurricular programs: uniform
funding.''.

(d) Effective Date and Applicability.--This section and the
amendments made by this section shall take effect on October
1, 2004, and shall apply with respect to funds appropriated
for fiscal years beginning on or after such date.
______

SA 3214. Mr. WARNER (for Mr. Sessions) proposed an amendment to the
bill S. 2400, to authorize appropriations for fiscal year 2005 for
military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; as follows:

On page 365, between lines 18 and 19, insert the following:

SEC. 2830. LAND EXCHANGE, MAXWELL AIR FORCE BASE, ALABAMA.

(a) Conveyance Authorized.--The Secretary of the Air Force
may convey to the City of Montgomery, Alabama (in this
section referred to as the ``City''), all right, title, and
interest of the United States in and to a parcel of real
property, including any improvements thereon, consisting of
approximately 28 acres and including all of the Maxwell
Heights Housing site and located at Maxwell Air Force Base,
Alabama.
(b) Consideration.--(1) As consideration for the conveyance
of property under subsection (a), the City shall convey to
the United States all right, title, and interest of the City
to a parcel of real property, including any improvements
thereon, consisting of approximately 35 acres and designated
as project AL 6-4, that is owned by the City and is
contiguous to Maxwell Air Force Base, for the purpose of
allowing the Secretary to incorporate such property into a
project for the acquisition or improvement of military
housing under subchapter IV of chapter 169 of title 10,
United States Code. The Secretary shall have administrative
jurisdiction over the real property received under this
subsection.
(2) If the fair market value of the real property received
under paragraph (1) is less than the fair market value of the
real property conveyed under subsection (a) (as determined
pursuant to an appraisal acceptable to the Secretary), the
Secretary may require the City to provide, pursuant to
negotiations between the Secretary and the City, in-kind
consideration the value of which when added to the fair
market value of the property conveyed under subsection (b)
equals the fair market value of the property conveyed under
subsection (a).
(c) Payment of Costs of Conveyance.--(1) The Secretary may
require the City to cover costs to be incurred by the
Secretary, or to reimburse the Secretary for costs incurred
by the Secretary, to carry out the conveyances under
subsections (a) and (b), including survey costs, costs
related to environmental documentation, and other
administrative costs related to the conveyances. If amounts
are collected from the City in advance of the Secretary
incurring the actual costs, and the amount collected exceeds
the costs actually incurred by the Secretary to carry out the
conveyance, the Secretary shall refund the excess amount to
the City.
(2) Amounts received as reimbursement under paragraph (1)
shall be credited to the fund or account that was used to
cover the costs incurred by the Secretary in carrying out the
conveyances. Amounts so credited shall be merged with amounts
in such fund or account, and shall be available for the same
purposes, and subject to the same conditions and limitations,
as amounts in such fund or account.
(d) Description of Property.--The exact acreage and legal
description of the property to be conveyed under subsections
(a) and (b) shall be determined by surveys satisfactory to
the Secretary.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyances under subsections (a) and (b) as the
Secretary considers appropriate to protect the interests of
the United States.
______

SA 3215. Mr. LEVIN (for Mr. Sarbanes (for himself and Ms. Mikulski))
proposed an amendment to the bill S. 2400, to authorize appropriations
for fiscal year 2005 for military activities of the Department of
Defense, for military construction, and for defense activities of the
Department of Energy, to prescribe personnel strengths for such fiscal
year for the Armed Services, and for other purposes; as follows:

At the end of subtitle C of title XXVIII, add the
following:

SEC. 2830. LAND EXCHANGE, NAVAL AIR STATION, PATUXENT RIVER,
MARYLAND.

(a) Conveyance Authorized.--The Secretary of the Navy may
convey to the State of Maryland (in this section referred to
as ``State''), all right, title, and interest of the United
States in and to a parcel of real property, including
improvements thereon, consisting of approximately five acres
at Naval

[[Page S5834]]

Air Station, Patuxent River, Maryland, and containing the
Point Lookout Lighthouse, other structures related to the
lighthouse, and an archaeological site pertaining to the
military hospital that was located on the property during the
Civil War. The conveyance shall include artifacts pertaining
to the military hospital recovered by the Navy and held at
the installation.
(b) Property Received in Exchange.--As consideration for
the conveyance of the real property under subsection (a), the
State shall convey to the United States a parcel of real
property consisting of approximately five acres located in
Point Lookout State Park, St. Mary's County, Maryland.
(c) Payment of Costs of Conveyance.--(1) The Secretary may
require the State to cover costs to be incurred by the
Secretary, or to reimburse the Secretary for costs incurred
by the Secretary, to carry out the conveyance under
subsection (a), including survey costs, costs related to
environmental documentation, relocation expenses incurred
under subsection (b), and other administrative costs related
to the conveyance. If amounts are collected from the State in
advance of the Secretary incurring the actual costs, and the
amount collected exceeds the costs actually incurred by the
Secretary to carry out the conveyance, the Secretary shall
refund the excess amount to State.
(2) Amounts received as reimbursement under paragraph (1)
shall be credited to the fund or account that was used to
cover the costs incurred by the Secretary in carrying out the
conveyance. Amounts so credited shall be merged with amounts
in such fund or account, and shall be available for the same
purposes, and subject to the same conditions and limitations,
as amounts in such fund or account.
(d) Description of Property.--The exact acreage and legal
description of the properties to be conveyed under this
section shall be determined by surveys satisfactory to the
Secretary.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyances under this section as the Secretary
considers appropriate to protect the interests of the United
States.
______

SA 3216. Mr. FRIST (for Mr. Domenici) proposed an amendment to the
bill S. 1848, to amend the Bend Pine Nursery Land Conveyance Act to
direct the Secretary of Agriculture to sell the Bend Pine Nursery
Administration Site in the State of Oregon; as follows:

On page 4, line 22, strike ``1999'' and insert ``2004''.
______

SA 3217. Mr. FRIST (for Mr. Leahy) proposed an amendment to the bill
H.R. 417, to revoke a Public Land Order with respect to certain lands
erroneously included in the Cibola National Wildlife Refuge,
California; as follows:

At the end, add the following:

SEC. __. GREEN MOUNTAIN NATIONAL FOREST EXPANSION.

(a) In General.--The boundaries of the Green Mountain
National Forest are modified to include all parcels of land
depicted on the forest maps entitled ``Green Mountain
Expansion Area Map I'' and ``Green Mountain Expansion Area
Map II'', each dated February 20, 2002, which shall be on
file and available for public inspection in the Office of the
Chief of the Forest Service, Washington, District of
Columbia.
(b) Management.--Federally owned land delineated on the
maps acquired for National Forest purposes shall continue to
be managed in accordance with the laws (including
regulations) applicable to the National Forest System.
(c) Land and Water Conservation Fund.--For the purposes of
section 7 of the Land and Water Conservation Fund Act of 1965
(16 U.S.C. 460l-9), the boundaries of the Green Mountain
National Forest, as adjusted by this Act, shall be considered
to be the boundaries of the national forest as of January 1,
1965.
______

SA 3218. Mr. FRIST (for Mr. Grassley (for himself and Mr. Baucus))
proposed an amendment to the bill S. 882, to amend the Internal Revenue
Code of 1986 to provide improvements in tax administration and taxpayer
safe-guards, and for other purposes; as follows:

On page 186, between lines 6 and 7, insert the following:
(e) Director of Internal Revenue Service Oversight Board.--
Subsection (e) of section 7802, as amended by subsection (d),
is amended by redesignating paragraphs (3), (4), and (5) as
paragraphs (4), (5), and (6), respectively, and by inserting
after paragraph (2) the following new paragraph:
``(3) Director.--The Chairperson of the Oversight Board
shall, without regard to the provisions of title 5, United
Stated Code, governing appointments in the competitive
service, appoint a Director for the Oversight Board. The
Director shall be paid at the same rate as the highest-rate
of basic pay established for the Senior Executive Service
under section 5382 of title 5, United States Code.''.
On page 186, line 7, strike ``(e)'' and insert ``(f)''.
On page 201, strike lines 17 through 21, and insert the
following:
(1) by striking ``Annual'' in the heading and inserting
``Biennial'',
(2) by inserting ``every 2 years (beginning in 2004)''
after ``one of the semiannual reports'' in the matter
preceding subparagraph (A),
On page 206, lines 6 and 7, strike ``AND REFUND
ANTICIPATION LOAN PROVIDERS'' and insert ``, REFUND
ANTICIPATION LOAN PROVIDERS, AND PAYROLL AGENTS''.
On page 206, lines 12 and 13, strike ``AND REFUND
ANTICIPATION LOAN PROVIDERS'' and insert ``, REFUND
ANTICIPATION LOAN PROVIDERS, AND PAYROLL AGENTS''.
On page 206, lines 18 and 19, strike ``and refund
anticipation loan providers'' and insert ``, refund
anticipation loan providers, and payroll agents''.
On page 206, line 20, strike ``and''.
On page 207, line 2, strike the period and insert ``,
and''.
On page 207, between lines 2 and 3, insert the following:
``(C) to require the posting of a reasonable bond by each
registered payroll agent.
On page 208, lines 14 and 15, strike ``or refund
anticipation loan provider'' and insert ``, refund
anticipation loan provider, or payroll agent''.
On page 212, between lines 8 and 9, insert the following:

SEC. 142. JOINT TASK FORCE ON OFFERS-IN-COMPROMISE.

(a) In General.--The Secretary of the Treasury shall
establish a joint task force--
(1) to review the Internal Revenue Service's determinations
with respect to offers which raise equitable, public policy,
or economic hardship grounds for compromise of a tax
liability under section 7122 of the Internal Revenue Code of
1986,
(2) to review the extent to which the Internal Revenue
Service has used its authority to resolve longstanding cases
by forgoing penalties and interest which have accumulated as
a result of delay in determining the taxpayer's liability,
(3) to provide recommendations as to whether the Internal
Revenue Service's evaluation of offers-in-compromise should
include--
(A) the taxpayer's compliance history,
(B) errors by the Internal Revenue Service with respect to
the underlying tax,
(C) wrongful acts by a third party which gave rise to the
liability, and
(D) whether the taxpayer has made payments on the
liability, and
(4) to annually report to the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives (beginning in 2005) regarding such review and
recommendations.
(b) Members of Joint Task Force.--The membership of the
joint task force under subsection (a) shall consist of 1
representative each from the Department of the Treasury, the
Internal Revenue Service Oversight Board, the Office of the
Chief Counsel for the Internal Revenue Service, the Office of
the Taxpayer Advocate, the Office of Appeals, and the
division of the Internal Revenue Service charged with
operating the offer-in-compromise program.
(c) Report of National Taxpayer Advocate.--
(1) In general.--Clause (i) of section 7803(c)(2)(B)
(relating to annual reports), as amended by this Act, is
amended by striking ``and'' at the end of subclause (X), by
redesignating subclause (XI) as subclause (XII), and by
inserting after subclause (X) the following new subclause:

``(XI) include a list of the factors taxpayers have raised
to support their claims for offers-in compromise relief, the
number of such offers submitted, accepted, and rejected, the
number of such offers appealed, the period during which
review of such offers have remained pending, and the efforts
the Internal Revenue Service has made to correctly identify
such offers, including the training of employees in
identifying and evaluating such offers.''.

(2) Effective date.--The amendment made by paragraph (1)
shall apply to reports in calendar year 2005 and thereafter.
On page 215, after line 22, add the following:

SEC. 153. PUBLIC SUPPORT BY INDIAN TRIBAL GOVERNMENTS.

(a) In General.--Section 7871(a) (relating to Indian tribal
governments treated as States for certain purposes) is
amended by striking ``and'' at the end of subparagraph (C) of
paragraph (6), by striking the period at the end of
subparagraph (B) of paragraph (7) and inserting ``; and'',
and by adding at the end the following new paragraph:
``(8) for purposes of--
``(A) determining support of an organization described in
section 170(b)(1)(A)(vi), and
``(B) determining whether an organization is described in
paragraph (1) or (2) of section 509(a) for purposes of
section 509(a)(3).''.
(b) Effective Date.--The amendments made by this section
shall apply with respect to--
(1) support received before, on, or after the date of the
enactment of this Act, and
(2) the determination of the status of any organization
with respect to any taxable year beginning after such date of
enactment.

SEC. 154. PAYROLL AGENTS SUBJECT TO PENALTY FOR FAILURE TO
COLLECT AND PAY OVER TAX, OR ATTEMPT TO EVADE
OR DEFEAT TAX.

(a) In General.--Section 6672(a) is amended by inserting
``, including any payroll agent,'' after ``Any person''.
(b) Penalty Not Subject To Discharge in Bankruptcy.--
Section 6672(a) is amended by adding at the end the following
new sentence: ``Notwithstanding any other provision

[[Page S5835]]

of law, no penalty imposed under this section may be
discharged in bankruptcy.''.
(c) Construction.--The amendment made by subsection (a)
shall not be construed to create any inference with respect
to the interpretation of section 6672 of the Internal Revenue
Code of 1986 as such section was in effect on the day before
the date of the enactment of this Act.
(d) Effective Date.--The amendments made by this section
shall apply to failures occurring after the date of the
enactment of this Act.
Beginning on page 224, line 14, strike all through page
225, line 8, and insert the following:

SEC. 206. FREEZE OF PROVISIONS REGARDING SUSPENSION OF
INTEREST WHERE SECRETARY FAILS TO CONTACT
TAXPAYER.

(a) In General.--Section 6404(g) (relating to suspension of
interest and certain penalties where Secretary fails to
contact taxpayer) is amended by striking ``1-year period (18-
month period in the case of taxable years beginning before
January 1, 2004)'' both places it appears and inserting ``18-
month period''.
(b) Exception for Gross Misstatement.--Section 6404(g)(2)
(relating to exceptions) is amended by striking ``or'' at the
end of subparagraph (C), by redesignating subparagraph (D) as
subparagraph (E), and by inserting after subparagraph (C) the
following new subparagraph:
``(D) any interest, penalty, addition to tax, or additional
amount with respect to any gross misstatement; or''.
(c) Exception for Reportable and Listed Transactions.--
Section 6404(g)(2) (relating to exceptions), as amended by
subsection (b), is amended by striking ``or'' at the end of
subparagraph (D), by redesignating subparagraph (E) as
subparagraph (F), and by inserting after subparagraph (D) the
following new subparagraph:
``(E) any interest, penalty, addition to tax, or additional
amount with respect to any reportable transaction or listed
transaction (as defined in 6707A(c)); or''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2003.
(2) Exception for reportable or listed transactions.--The
amendments made by subsection (c) shall apply with respect to
interest accruing after May 5, 2004.
On page 232, line 15, insert ``which is 60 days after the
date'' after ``date''.
On page 400, after line 16, add the following:

PART IV--OTHER REVENUE PROVISIONS

SEC. 641. REPORTING OF TAXABLE MERGERS AND ACQUISITIONS.

(a) In General.--Subpart B of part III of subchapter A of
chapter 61 is amended by inserting after section 6043 the
following new section:

``SEC. 6043A. TAXABLE MERGERS AND ACQUISITIONS.

``(a) In General.--The acquiring corporation in any taxable
acquisition shall make a return (according to the forms or
regulations prescribed by the Secretary) setting forth--
``(1) a description of the acquisition,
``(2) the name and address of each shareholder of the
acquired corporation who is required to recognize gain (if
any) as a result of the acquisition,
``(3) the amount of money and the fair market value of
other property transferred to each such shareholder as part
of such acquisition, and
``(4) such other information as the Secretary may
prescribe.

To the extent provided by the Secretary, the requirements of
this section applicable to the acquiring corporation shall be
applicable to the acquired corporation and not to the
acquiring corporation.
``(b) Nominee Reporting.--Any person who holds stock as a
nominee for another person shall furnish in the manner
prescribed by the Secretary to such other person the
information provided by the corporation under subsection (d).
``(c) Taxable Acquisition.--For purposes of this section,
the term `taxable acquisition' means any acquisition by a
corporation of stock in or property of another corporation if
any shareholder of the acquired corporation is required to
recognize gain (if any) as a result of such acquisition.
``(d) Statements To Be Furnished to Shareholders.--Every
person required to make a return under subsection (a) shall
furnish to each shareholder whose name is required to be set
forth in such return a written statement showing--
``(1) the name, address, and phone number of the
information contact of the person required to make such
return,
``(2) the information required to be shown on such return
with respect to such shareholder, and
``(3) such other information as the Secretary may
prescribe.

The written statement required under the preceding sentence
shall be furnished to the shareholder on or before January 31
of the year following the calendar year during which the
taxable acquisition occurred.''.
(b) Assessable Penalties.--
(1) Subparagraph (B) of section 6724(d)(1) (defining
information return) is amended by redesignating clauses (ii)
through (xviii) as clauses (iii) through (xix), respectively,
and by inserting after clause (i) the following new clause:
``(ii) section 6043A(a) (relating to returns relating to
taxable mergers and acquisitions),''.
(2) Paragraph (2) of section 6724(d) (relating to
definitions) is amended by redesignating subparagraphs (F)
through (BB) as subparagraphs (G) through (CC), respectively,
and by inserting after subparagraph (E) the following new
subparagraph:
``(F) subsections (b) and (d) of section 6043A (relating to
returns relating to taxable mergers and acquisitions).''.
(c) Clerical Amendment.--The table of sections for subpart
B of part III of subchapter A of chapter 61 is amended by
inserting after the item relating to section 6043 the
following new item:

``Sec. 6043A. Returns relating to taxable mergers and acquisitions.''.

(d) Effective Date.--The amendments made by this section
shall apply to acquisitions after the date of the enactment
of this Act.

SEC. 642. MODIFICATION OF DEFINITION OF CONTROLLED GROUP OF
CORPORATIONS.

(a) In General.--Section 1563(a)(2) (relating to brother-
sister controlled group) is amended by striking
``possessing--'' and all that follows through ``(B)'' and
inserting ``possessing''.
(b) Application of Existing Rules to Other Code
Provisions.--Section 1563(f) (relating to other definitions
and rules) is amended by adding at the end the following new
paragraph:
``(5) Brother-sister controlled group definition for
provisions other than this part.--
``(A) In general.--Except as specifically provided in an
applicable provision, subsection (a)(2) shall be applied to
an applicable provision as if it read as follows:
```(2) Brother-sister controlled group.--Two or more
corporations if 5 or fewer persons who are individuals,
estates, or trusts own (within the meaning of subsection
(d)(2) stock possessing--
```(A) at least 80 percent of the total combined voting
power of all classes of stock entitled to vote, or at least
80 percent of the total value of shares of all classes of
stock, of each corporation, and
```(B) more than 50 percent of the total combined voting
power of all classes of stock entitled to vote or more than
50 percent of the total value of shares of all classes of
stock of each corporation, taking into account the stock
ownership of each such person only to the extent such stock
ownership is identical with respect to each such
corporation.'
``(B) Applicable provision.--For purposes of this
paragraph, an applicable provision is any provision of law
(other than this part) which incorporates the definition of
controlled group of corporations under subsection (a).''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
______

SA 3219. Mr. FRIST (for Mr. Inhofe) proposed an amendment to the bill
S. 1072, to authorize funds for Federal-aid highways, highway safety
programs, and transit programs, and for other purposes; as follows:

On page 40, line 9, strike ``$50,000,000'' and insert
``$60,000,000''.
On page 83, line 10, strike ``$50,000,000'' and insert
``$60,000,000''.
On page 164, between lines 20 and 21, insert the following:
``(3) Mitigation in closed basins.--
``(A) In general.--A State may use amounts deposited in the
State fund for projects to protect existing roadways from
anticipated flooding of a closed basin lake, including--
``(i) construction--

``(I) necessary for the continuation of roadway services
and the impoundment of water, as the State determines to be
appropriate; or
``(II) for a grade raise to permanently restore a roadway
the use of which is lost or reduced, or could be lost or
reduced, as a result of an actual or predicted water level
that is within 3 feet of causing inundation of the roadway in
a closed lake basin;

``(ii) monitoring, studies, evaluations, design, or
preliminary engineering relating to construction; and
``(iii) monitoring and evaluations relating to proposed
construction.
``(B) Reimbursement.--The Secretary may permit a State that
expends funds under subparagraph (A) to be reimbursed for the
expenditures through the use of amounts made available under
section 125(c)(1).

On page 407, strike lines 3 through 8 and insert the
following:
Section 1214(d)(5)(A) of the Transportation Equity Act for
the 21st Century (23 U.S.C. 202 note; 112 Stat. 206) is
amended by striking
______

SA 3220. Mr. LOTT (for himself, Mr. Cochran, Mr. Chambliss, Ms.
Snowe, and Mr. Dorgan) submitted an amendment intended to be proposed
by him to the bill S. 2400, to authorize appropriations for fiscal year
2005 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the

[[Page S5836]]

Armed Services, and for other purposes; which was ordered to lie on the
table; as follows:

At the end of subtitle B of title XXVIII, add the
following:

SEC. 2814. REPEAL OF AUTHORITY OF SECRETARY OF DEFENSE TO
RECOMMEND THAT INSTALLATIONS BE PLACED IN
INACTIVE STATUS DURING 2005 OF DEFENSE BASE
CLOSURE AND REALIGNMENT.

Section 2914 of the Defense Base Closure and Realignment
Act of 1990 (part A of title XXIX of Public Law 101-510; 10
U.S.C. 2687 note) is amended by striking subsection (c).
______

SA 3221. Mr. LOTT (for himself, Ms. Snowe, Mr. Cochran, and Ms.
Collins) submitted an amendment intended to be proposed by him to the
bill S. 2400, to authorize appropriations for fiscal year 2005 for
military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

On page 280, after line 22, insert the following:

SEC. 1068. PRESERVATION OF SEARCH AND RESCUE CAPABILITIES OF
THE FEDERAL GOVERNMENT.

The Secretary of Defense may not reduce or eliminate search
and rescue capabilities at any military installation in the
United States unless the Secretary first certifies to the
Committees on Armed Services of the Senate and the House of
Representatives that equivalent search and rescue
capabilities will be provided, without interruption and
consistent with the policies and objectives set forth in the
United States National Search and Rescue Plan entered into
force on January 1, 1999, by--
(1) the Department of Interior, the Department of Commerce,
the Department of Homeland Security, the Department of
Transportation, the Federal Communications Commission, or the
National Aeronautics and Space Administration; or
(2) the Department of Defense, either directly or through a
Department of Defense contract with an emergency medical
service provider or other private entity to provide such
capabilities.
______

SA 3222. Mr. BROWNBACK submitted an amendment intended to be proposed
by him to the bill S. 2400, to authorize appropriations for fiscal year
2005 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

At the end of subtitle F of title X, insert the following:

SEC. 1055. MILITARY EDUCATIONAL EXCHANGES WITH SENIOR
OFFICERS AND OFFICIALS OF TAIWAN.

(a) Authority for Military Educational Exchanges With
Senior Officers and Officials of Taiwan.--Chapter 41 of title
10, United States Code, is amended by inserting after section
712 the following new section:

``Sec. 712a. Military personnel exchanges: Taiwan

``(a) Requirement for Program.--The Secretary of Defense
shall establish a program for exchange of senior defense
personnel between the United States and the Republic of
Taiwan.
``(b) Purpose.--The purpose of exchanges of personnel under
the program is to improve the defenses of Taiwan against
attack by the People's Liberation Army of the People's
Republic of China.
``(c) Senior Defense Personnel.--The Department of Defense
personnel authorized to participate in the exchange program
under this section are as follows:
``(1) A general or flag officer of the armed forces.
``(2) A civilian official at the level of Deputy Assistant
Secretary of Defense or above.
``(d) Activities.--(1) Activities under the exchange
program shall include the following:
``(A) Threat analysis.
``(B) Military doctrine.
``(C) Force planning.
``(D) Logistical support.
``(E) Intelligence collection and analysis.
``(F) Operational tactics, techniques, and procedures.
``(G) Civil-military relations, including parliamentary
relations.
``(2) In the planning and conduct of activities under
subparagraphs (A) through (F) of paragraph (1), particular
emphasis shall be placed on issues relating to the defense of
Taiwan against submarine and missile attacks.
``(e) Locations.--Activities under the exchange program
shall be carried out in the United States and in Taiwan.
``(f) Activity Defined.--In this section, the term
`activity' includes an exercise, an event, and an opportunity
for observation.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting before the
item relating to section 713 the following new item:

``712a. Military personnel exchanges: Taiwan.''.
______

SA 3223. Mr. CHAMBLISS submitted an amendment intended to be proposed
by him to the bill S. 2400, to authorize appropriations for fiscal year
2005 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Services, and for other purposes; which was ordered to lie on the
table; as follows:

On page 130, between lines 9 and 10, insert the following:

SEC. 642. ELIGIBILITY FOR REDUCED NON-REGULAR SERVICE RETIRED
PAY BEFORE AGE 60.

(a) Eligibility Beginning at Age 55.--Section 12731(a)(1)
of title 10, United States Code, is amended by striking ``60
years of age'' and inserting ``55 years of age''.
(b) Reduced Retired Pay When Commenced Before Age 60.--
Section 12739 of such title is amended--
(1) in subsection (a), by inserting ``, subject to
subsection (d),'' after ``this chapter is'';
(2) by redesignating subsection (d) as subsection (e); and
(3) by inserting after subsection (c) the following new
subsection (d):
``(d) In the case of a person to whom payment of retired
pay under this chapter commences after the person attains 55
years of age and before the person attains 60 years of age,
the total amount of the monthly retired pay computed under
subsections (a), (b), and (c) shall be reduced by the
percentage specified for the age of the person when payment
of the retired pay commences, as follows:

``Age (in years) when Percentage by which retired pay is to be reduced:
55..........................................................12.5 ....

56...........................................................9.0 ....

57...........................................................6.0 ....

58...........................................................3.5 ....

59........................................................1.5.''.....

(c) Continuation of Age 60 as Minimum Age for Eligibility
for Uniformed Services Health Benefits.--Section 1074(b) of
title 10, United States Code, is amended--
(1) by inserting ``(1)'' after ``(b)''; and
(2) by adding at the end the following new paragraph:
``(2) Paragraph (1) does not apply to a member or former
member entitled to retired pay for non-regular service under
chapter 1223 of this title who is under 60 years of age.''.
(d) Effective Date.--This section and the amendments made
by this section shall take effect on the first day of the
first month that begins more than 180 days after the date of
the enactment of this Act.
______

SA 3224. Ms. COLLINS (for herself and Mr. Levin) submitted an
amendment intended to be proposed by her to the bill S. 2400, to
authorize appropriations for fiscal year 2005 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe personnel
strengths for such fiscal year for the Armed Services, and for other
purposes; which was ordered to lie on the table; as follows:

On page 290, after line 22, insert the following:

SEC. 1107. BID PROTESTS BY FEDERAL EMPLOYEES IN ACTIONS UNDER
OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A-76.

(a) Eligibility To Protest.--(1) Section 3551(2) of title
31, United States Code, is amended to read as follows:
``(2) The term `interested party'--
``(A) with respect to a contract or a solicitation or other
request for offers described in paragraph (1), means an
actual or prospective bidder or offeror whose direct economic
interest would be affected by the award of the contract or by
failure to award the contract; and
``(B) with respect to a public-private competition
conducted under Office of Management and Budget Circular A-76
regarding performance of an activity or function of a Federal
agency, includes--
``(i) any official who submitted the agency tender in such
competition; and
``(ii) any one person who, for the purpose of representing
them in a protest under this subchapter that relates to such
competition, has been designated as their agent by a majority
of the employees of such Federal agency who are engaged in
the performance of such activity or function.''.
(2)(A) Subchapter V of chapter 35 of such title is amended
by adding at the end the following new section:

``Sec. 3557. Expedited action in protests for public-private
competitions

``For protests in cases of public-private competitions
conducted under Office of Management and Budget Circular A-76
regarding performance of an activity or function of Federal
agencies, the Comptroller General shall administer the
provisions of this subchapter in a manner best suited for
expediting final resolution of such protests and final action
in such competitions.''.
(B) The chapter analysis at the beginning of such chapter
is amended by inserting after

[[Page S5837]]

the item relating to section 3556 the following new item:

``3557. Expedited action in protests for public-private
competitions.''.

(b) Right To Intervene in Civil Action.--Section 1491(b) of
title 28, United States Code, is amended by adding at the end
the following new paragraph:
``(5) If a private sector interested party commences an
action described in paragraph (1) in the case of a public-
private competition conducted under Office of Management and
Budget Circular A-76 regarding performance of an activity or
function of a Federal agency, then an official or person
described in section 3551(2)(B) of title 31 shall be entitled
to intervene in that action.''.
(c) Applicability.--Subparagraph (B) of section 3551(2) of
title 31, United States Code (as added by subsection (a)),
and paragraph (5) of section 1491(b) of title 28, United
States Code (as added by subsection (b)), shall apply to--
(1) protests and civil actions that challenge final
selections of sources of performance of an activity or
function of a Federal agency that are made pursuant to
studies initiated under Office of Management and Budget
Circular A-76 on or after January 1, 2004; and
(2) any other protests and civil actions that relate to
public-private competitions initiated under Office of
Management and Budget Circular A-76 on or after the date of
the enactment of this Act.

____________________