To provide financial relief for individuals and entities affected by Hurricane Katrina.

SA 1678. Mr. LIEBERMAN proposed an amendment to the bill H.R. 2862,
making appropriations for Science, the Departments of State, Justice,
and Commerce, and related agencies for the fiscal year ending september
30, 2006, and for other purposes; as follows:

On page 191, between lines 9 and 10, insert the following:

TITLE VII--FINANCIAL RELIEF

Subtitle A--Limitation on Payments

SEC. 701. SHORT TITLE.

This subtitle may be cited as the ``Hurricane Emergency
Limitation on Payments (HELP) Act of 2005''.

SEC. 702. DEFINITIONS.

In this subtitle:
(1) Disaster.--The term ``Disaster'' means the major
disasters declared by the President on August 29, 2005,
relating to damage caused by Hurricane Katrina.
(2) Injured person.--The term ``injured person'' means any
individual or entity that suffers harm resulting from the
Disaster that makes the individual or entity eligible to
receive, and the individual or entity submits an application
in good faith to receive--
(A) housing assistance under section 408(b) of the Robert
T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5174(b));
(B) financial assistance to address other needs under
section 408(e) of that Act (42 U.S.C. 5174(e));
(C) unemployment assistance under section 410 of that Act
(42 U.S.C. 5177) (as amended by subtitle C);
(D) a disaster loan under section 7(b) of the Small
Business Act (15 U.S.C. 636(b)); or
(E) an emergency loan made under subtitle C of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et
seq.).

SEC. 703. MORATORIUM ON PAYMENTS.

(a) In General.--Except as otherwise provided in this
subtitle, no injured person shall be subject to a penalty or
a requirement to pay interest for a failure of the injured
person, as a result of the Disaster, to make timely payment
of a financial obligation for any loan made, subsidized, or
guaranteed by the United States.
(b) Applicability to Loans.--The moratorium under
subsection (a) shall not apply to any loan made to or assumed
by an injured person on or after August 29, 2005.
(c) Period of Effectiveness.--The moratorium under
subsection (a) shall apply in accordance with section 761 to
the failure of an injured person to make timely payments.
(d) Eligibility.--If a Federal agency responsible for
administering a benefit program referred to in section 702(2)
determines that an individual or entity that has applied to
receive a benefit under the program is not eligible to
receive the benefit, the individual or entity, for purposes
of the moratorium under subsection (a), shall cease to be
considered an injured person as of the date on which the
individual or entity receives notice of the determination of
the Federal agency.
(e) Federal Responsibility.--In the case of a moratorium on
payments on a loan subsidized or guaranteed by the United
States, nothing in this section excuses the United States
from any liability of the United States to the lender under
the terms of the agreement between the United States and the
lender.
(f) Effect of Other Law.--The moratorium under subsection
(a) shall apply to an injured person only if, and to the
extent that, the injured person is not excused from, or
eligible to be excused from, the obligation under other
applicable law.

Subtitle B--Individual and Household Assistance

SEC. 711. INDIVIDUAL AND HOUSEHOLD ASSISTANCE.

(a) Maximum Amounts.--Notwithstanding section 408 of the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5174), in providing assistance to individuals
and households affected by Hurricane Katrina, the President
may waive the limitation on total assistance under subsection
(h) of that section.
(b) Mortgage and Rental Assistance.--
(1) In general.--During the 18-month period beginning on
the date of enactment of this Act, the President may provide
assistance in the form of mortgage or rental payments for
persons described in paragraph (2).
(2) Eligible persons.--Assistance under paragraph (1) may
be provided to any individual or household that--
(A) resided on August 29, 2005, in an area that is subject
to a declaration by the President of a major disaster under
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.) in connection with
Hurricane Katrina; and
(B) as a result of financial hardship caused by a major
disaster described in subparagraph (A), is subject to
dispossession or eviction from a residence due to foreclosure
of a mortgage or lien or termination of a lease entered into
before the date on which the major disaster is declared.
(c) Types of Housing Assistance.--No limitation relating to
the maximum amount of assistance under paragraph (2) or (3)
of section 408(c) of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5174(c)) shall apply
with respect to major disaster FEMA-1603-DR-Louisiana, FEMA-
1604-DR-Mississippi, or FEMA-1605-DR-Alabama.
(d) Financial Assistance To Address Other Needs.--
Notwithstanding section 408(g)(2) of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C.
5174(g)(2)), in the case of financial assistance provided
under subsection (e) of that section to any individual or
household in response to a major disaster referred to in
subsection (c), the Federal share shall be 100 percent.

Subtitle C--Unemployment Assistance

SEC. 721. UNEMPLOYMENT ASSISTANCE.

Section 410 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5177) is amended by
striking the section heading and all that follows through the
end of subsection (a) and inserting the following:

``SEC. 410. UNEMPLOYMENT ASSISTANCE.

``(a) Provision of Unemployment Assistance.--
``(1) Assistance.--
``(A) In general.--The President shall provide to any
individual unemployed as a result of a major disaster such
benefit assistance as the President determines to be
appropriate.
``(B) Location of employment.--An individual that is
unemployed as a result of a major disaster as determined
under subparagraph (A) may receive assistance under this
subsection regardless of whether the individual was employed
at a location within the declared disaster area.
``(C) Reason for unemployment.--For purposes of this
subsection, an individual who is unemployed because a loss of
business resulting from a major disaster contributed
importantly to the employer's decision to reduce or terminate
employment shall be considered to be an individual unemployed
as a result of a major disaster.
``(D) Eligibility.--An individual shall be eligible to
receive assistance under this subsection regardless of
whether the individual is eligible to receive, or has
exhausted eligibility for, State unemployment compensation.
``(2) Availability.--Assistance provided to an unemployed
individual under paragraph (1) shall be available as long as
the unemployment of the individual caused by the major
disaster continues, or until the individual is reemployed in
at least a comparable position, but not longer than 52 weeks
after the date on which the unemployed individual first
receives assistance.
``(3) Maximum and minimum weekly amounts.--The amount of
assistance provided to an unemployed individual under this
subsection for each week of unemployment shall be--
``(A) unless the amount is less than the amount described
in subparagraph (B), not more than the maximum weekly amount
authorized under the unemployment compensation law of the
State in which the disaster occurred; and
``(B) not less than the national average weekly
unemployment benefit provided to an individual as of the date
of the major disaster for which unemployment assistance is
provided.
``(4) Period for application.--The President shall accept
applications for assistance under this subsection for--
``(A) the 90-day period beginning on the date on which the
applicable major disaster is declared; or
``(B) such longer period as may be established by the
President.
``(5) Cooperation with states.--The President shall provide
assistance under this subsection through agreements with
States that, in the judgment of the President, have an
adequate system for administering the assistance through
existing State agencies.''.

Subtitle D--Tax Relief

SEC. 731. REQUIRED EXERCISE OF AUTHORITY UNDER SECTION 7508A
FOR TAX RELIEF FOR VICTIMS OF HURRICANE
KATRINA.

In the case of any taxpayer determined by the Secretary of
the Treasury to be affected by the Presidentially declared
disaster relating to Hurricane Katrina, the Secretary of the
Treasury shall specify a period under section 7508A of the
Internal Revenue Code of 1986 of not less than 6 months
beginning on August 29, 2005, that may be disregarded with
respect to all of the acts described in section 7508(a)(1) of
such Code and amounts described in paragraph (2) of section
7508A(a)

[[Page S9883]]

of such Code relating to any employment tax liability of the
taxpayer.

SEC. 732. PENALTY FREE WITHDRAWALS FROM RETIREMENT PLANS FOR
VICTIMS OF HURRICANE KATRINA.

(a) Exclusion From Income of Certain Distributions Which
Are Repaid.--Section 72 of the Internal Revenue Code of 1986
(relating to individual retirement accounts) is amended by
redesignating subsection (x) as subsection (y) and by
inserting after subsection (w) the following new subsection:
``(x) Repayable Distributions From Qualified Retirement
Plans for Victims of Hurricane Katrina.--
``(1) In general.--Notwithstanding any other provision of
this section, gross income shall not include any qualified
distribution.
``(2) Repayment requirement.--
``(A) Addition to tax.--If the required recontributions
made by the taxpayer during the repayment period are less
than the qualified distribution, the tax imposed by this
chapter for the last taxable year in the repayment period
shall be increased by the amount determined under
subparagraph (B).
``(B) Determination of amount.--The amount determined under
this subparagraph shall be an amount which bears the same
ratio to the tax benefit amount as--
``(i) the excess (if any) of the qualified distribution
over required recontributions made during the repayment
period, bears to
``(ii) the qualified distribution.
``(C) Repayment period.--For purposes of this subsection,
the term `repayment period' means, with respect to any
qualified distribution, the 5-taxable year period beginning
after the taxable year in which such distribution is
received.
``(D) Tax benefit amount.--For purposes of this subsection,
the term `tax benefit amount' means, with respect to any
qualified distribution, the aggregate reduction in the tax
imposed by this chapter for the taxable year in which such
distribution is received by reason of the exclusion under
paragraph (1).
``(3) Qualified distribution.--For purposes of this
subsection, the term `qualified distribution' means any
distribution to an individual who has a principal place of
abode within the area designated as a disaster area by the
President under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act in connection with Hurricane
Katrina--
``(A) if such distribution is made during the 6-month
period beginning on the date such declaration is made, and
``(B) to the extent such distribution does not exceed the
excess of--
``(i) the amount of expenses incurred as a result of such
disaster, over
``(ii) the amount of such expenses which are compensated
for by insurance or otherwise.
``(4) Recontribution of qualified distributions.--
``(A) In general.--If an individual received a qualified
distribution, such individual shall make required
recontributions in the manner provided in this paragraph to
an individual retirement plan maintained for the benefit of
such individual.
``(B) Method of making recontribution.--Any required
recontribution--
``(i) shall be made during the repayment period for the
qualified distribution,
``(ii) shall not exceed the qualified distribution reduced
by any prior recontribution under this paragraph with respect
to such distribution, and
``(iii) shall be made by making a payment in cash to the
qualified retirement plan from which the qualified
distribution was made.

An individual making a required recontribution under this
paragraph shall designate (in the manner prescribed by the
Secretary) such contribution as a required recontribution
under this paragraph and shall specify the qualified
distribution with respect to which such recontribution is
being made.
``(C) Treatment of contribution.--For purposes of this
title, any required recontribution under this paragraph shall
not be taken into account for purposes of any limitation on
contributions to a qualified retirement plan (as so defined).
``(5) Other special rules.--
``(A) Basis rules not affected.--The tax treatment under
this chapter of any distribution (other than a qualified
distribution) shall be determined as if this subsection had
not been enacted.
``(B) Aggregation rule.--For purposes of this subsection,
all qualified distributions received by an individual during
a taxable year shall be treated as a single distribution.''.
(b) Effective Date.--The amendments made by this section
shall apply to distributions received after the date of the
enactment of this Act, in taxable years ending after such
date.

Subtitle D--Hurricane Katrina Food Assistance Relief

SEC. 741. SHORT TITLE.

This subtitle may be cited as the ``Hurricane Katrina Food
Assistance Relief Act of 2005''.

SEC. 742. DEFINITION OF SECRETARY.

In this subtitle, the term ``Secretary'' means the
Secretary of Agriculture.

SEC. 743. FOOD STAMP PROGRAM DISASTER AUTHORITY.

(a) In General.--Section 5(h) of the Food Stamp Act of 1977
(7 U.S.C. 2014(h)) is amended by adding at the end the
following:
``(4) Response to hurricane katrina.--
``(A) Definitions.--In this paragraph:
``(i) Affected area.--
``(I) In general.--The term `affected area' means an area
of a State that the Secretary determines was affected by
Hurricane Katrina or a related condition.
``(II) Inclusion.--The term `affected area' includes any
area that, as a result of Hurricane Katrina or a related
condition, was covered by--

``(aa) a natural disaster declaration under section 321(a)
of the Consolidated Farm and Rural Development Act (7 U.S.C.
1961(a)); or
``(bb) a major disaster or emergency designation under the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5121 et seq.).

``(ii) Affected household.--
``(I) In general.--The term `affected household' means a
household--

``(aa) in an affected area;
``(bb) in which a member worked immediately prior to August
29, 2005, in an affected area; or
``(cc) that was displaced as a result of Hurricane Katrina
or a related condition to other areas of the same or another
State.

``(II) Inclusion.--The term `affected household' includes a
household containing 1 or more individuals that were
displaced as a result of Hurricane Katrina or a related
condition, as determined by the Secretary.
``(iii) Disaster recovery period.--
``(I) In general.--The term `disaster recovery period'
means the period of 180 days beginning on the date of
enactment of this paragraph.
``(II) Extension.--The disaster recovery period shall be
extended for another 180 days unless the President determines
that the extension is not necessary to fully meet the needs
of affected households.
``(B) Disaster recovery period.--During the disaster
recovery period--
``(i) clauses (iv) and (v) of subsection (g)(2)(B),
subsections (d) and (o) of section 6, and section 8(c)(1)
shall not apply to affected households;
``(ii) the application of an affected household shall be
processed under the procedures established under section
11(e)(9);
``(iii) at the option of the State agency, the State agency
may increase the value to the affected household of the
thrifty food plan determined under section 3(o) by 6 percent
when calculating the value of the allotment for an affected
household under section 8(a), in lieu of making the
adjustment otherwise required by clause (iv);
``(iv) except in the case of a household to which clause
(iii) applies, the State agency shall calculate the income of
an affected household using a standard deduction of $323 in
lieu of the deduction provided under subsection (e)(1);
``(v) the Secretary shall pay each State agency an amount
equal to 100 percent of administrative costs allowable under
section 16(a) related to serving affected households in lieu
of the payments section 16(a) would otherwise require for
those costs;
``(vi) an affected household shall be considered to meet
the requirements of subsection (c)(2) if the income of the
affected household, as calculated under subsection (c)(2),
does not exceed the level permitted under subsection (c)(1)
by more than 50 percent;
``(vii) any funds designated for rebuilding or relocation
(including payments from Federal, State, or local
governments, charitable organizations, employers, or
insurance companies) shall be excluded from consideration
under subsection (g) in determining the eligibility of an
affected household; and
``(viii) an affected household may not be considered to
customarily purchase food and prepare meals together with
other individuals if the affected household did not
customarily purchase food and prepare meals for home
consumption with those individuals immediately prior to
August 29, 2005.
``(C) Duplicate participation.--
``(i) In general.--The Secretary shall take such actions as
are prudent and reasonable under the circumstances to
identify affected households that are participating in more
than 1 State and to terminate the duplicate participation of
those households.
``(ii) No action taken.--Except in the case of deliberate
falsehoods, no action may be taken against any affected
household relating to any duplicate participation during the
disaster recovery period that takes place prior to
termination under clause (i).
``(D) Claims relating to benefits.--Except in the case of
intentional program violations as determined under section
6(b), no claim may be established under section 13(b)
relating to benefits issued under this subsection.
``(E) Payment error rate.--For purposes of determining the
payment error rate of a State agency under section 16(c), the
Secretary shall disregard any errors resulting from the
application of this paragraph to an affected household during
the disaster recovery period.
``(F) Savings clause.--This paragraph shall not apply in
any area of a State to the extent that there is in effect in
the area an emergency food stamp plan approved by the
Secretary that is more generous than the assistance provided
under this paragraph.''.
(b) Program Information Activities.--
(1) In general.--From funds otherwise appropriated for the
food stamp program established under the Food Stamp Act of
1977 (7 U.S.C. 2011 et seq.), the Secretary may use not more
than $5,000,000 for the period of fiscal year 2005 through
2006 to enter into contracts with nonprofit organizations to
provide affected households (as defined in section
5(h)(4)(A)(i) of the Food Stamp Act of

[[Page S9884]]

1977 (as added by subsection (a)) with information about and
assistance in completing the application process for any food
assistance programs for which the Secretary provides funds or
commodities.
(2) Expediting provisions.--Notwithstanding any other
provision of law, the Secretary shall not be required--
(A) to provide public notice of the availability of funds
described in paragraph (1); or
(B) to accept competitive bids for contracts under this
subsection.

SEC. 744. EMERGENCY FOOD ASSISTANCE PROGRAM AND SECTION 32
ASSISTANCE.

(a) Definition of Eligible Recipient.--In this section, the
term ``eligible recipient'' means an individual or household
that, as determined by the Secretary in consultation with the
Secretary of Homeland Security--
(1) is a victim of Hurricane Katrina or a related
condition;
(2) has been displaced by Hurricane Katrina or a related
condition; or
(3) is temporarily housing 1 or more individuals displaced
by Hurricane Katrina or a related condition.
(b) Assistance.--
(1) In general.--In addition to funds already obligated to
carry out the emergency food assistance program established
under the Emergency Food Assistance Act of 1983 (7 U.S.C.
7501 et seq.), the Secretary, in consultation with the
Secretary of Homeland Security, shall use not more than
$200,000,000 of funds made available under that Act to
provide a variety of food to eligible recipient agencies for
providing food assistance to eligible recipients, including--
(A) special supplemental foods for pregnant women and
infants or for other individuals with special needs;
(B) infant formula;
(C) bottled water; and
(D) fruit juices.
(2) Use of funds.--Funds made available under paragraph (1)
may be used to provide commodities in accordance with--
(A) section 27 of the Food Stamp Act of 1977 (7 U.S.C.
2036);
(B) section 203A of the Emergency Food Assistance Act of
1983 (7 U.S.C. 7504); and
(C) section 204 of the Emergency Food Assistance Act of
1983 (7 U.S.C. 7508).
(c) Section 32 Funding.--In addition to funds obligated for
fiscal years 2005 and 2006 under section 32 of the Act of
August 24, 1935 (7 U.S.C. 612c), the Secretary shall use not
more than $200,000,000 of funds made available under that
section to provide food assistance to eligible recipients,
including food described in subparagraphs (A) through (D) of
subsection (b)(1).

SEC. 745. WIC FUNDING.

(a) In General.--In addition to other funds made available
to the Secretary for fiscal year 2005 or 2006 to carry out
the special supplemental nutrition program for women,
infants, and children established by section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786), there is authorized
to be appropriated $200,000,000, to remain available until
September 30, 2007.
(b) Emergency Designation.--The amounts made available by
the transfer of funds in or pursuant to subsection (a) are
designated as an emergency requirement pursuant to section
402 of H. Con. Res. 95 (109th Congress).
(c) Allocation of Funds.--Notwithstanding section 17(i) of
the Child Nutrition Act of 1966 (42 U.S.C. 1786(i)), the
Secretary may allocate funds made available under subsection
(a) as the Secretary determines to be necessary to provide
assistance to women, infants, and children who, as determined
by the Secretary in consultation with the Secretary of
Homeland Security--
(1) are victims of Hurricane Katrina or a related
condition; or
(2) have been displaced by Hurricane Katrina or a related
condition.

SEC. 746. REPORT.

Not later than 180 days after the date of enactment of this
Act, the Secretary, in consultation with the Secretary of
Homeland Security, shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a
report that--
(1) describes whether additional funding or authority is
needed to continue to address the food needs of eligible
recipients; and
(2) includes any determination by the President under
section 5(h)(4)(A)(iii)(II) of the Food Stamp Act of 1977 (as
added by section 743(a)) that an extension of the disaster
recovery period is not necessary to fully meet the needs of
affected households.

SEC. 747. REGULATIONS.

(a) In General.--The Secretary may promulgate such
regulations as are necessary to implement this subtitle.
(b) Procedure.--The promulgation of the regulations and
administration of this subtitle shall be made without regard
to--
(1) the notice and comment provisions of section 553 of
title 5, United States Code;
(2) the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 Fed. Reg. 13804), relating to
notices of proposed rulemaking and public participation in
rulemaking; and
(3) chapter 35 of title 44, United States Code (commonly
known as the ``Paperwork Reduction Act'').
(c) Congressional Review of Agency Rulemaking.--In carrying
out this section, the Secretary shall use the authority
provided under section 808 of title 5, United States Code.

Subtitle E--Bankruptcy Relief

SEC. 751. BANKRUPTCY RELIEF FOR VICTIMS OF HURRICANE KATRINA.

(a) In General.--Notwithstanding any other provision of
law, the provisions of title 11, United States Code, as in
effect on August 29, 2005, shall apply to any case described
in subsection (b).
(b) Eligibility.--A case described in this subsection is a
case commenced during the 12-month period beginning on the
effective date of the Bankruptcy Abuse Prevention and
Consumer Protection Act of 2005, under title 11, United
States Code (other than under chapter 12 of that title 11),
by or on behalf of a debtor--
(1) who resides, or who resided on August 29, 2005, in any
area that is subject to a declaration by the President of a
major disaster, as defined under section 102 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5122) in connection with Hurricane Katrina; and
(2) whose financial condition is materially adversely
affected by the major disaster.

Subtitle F--Administrative Matters

SEC. 761. PERIOD OF AVAILABILITY OF BENEFITS.

(a) In General.--Except as otherwise provided by this title
or an amendment made by this title, a benefit or assistance
provided by any provision of this title or an amendment made
by this title shall be available through the date that is 180
days after the date of enactment of this Act.
(b) Automatic Extension.--The period during which a benefit
or assistance described in subsection (a) is available shall
be automatically extended for an additional 180 days,
beginning on the date that is 181 days after the date of
enactment of this Act (or any earlier date on which such
period expires under a provision of this title or an
amendment made by this title), unless the President
determines that the extension of the availability of the
benefit or assistance is not necessary to fully meet the
needs of individuals and households affected by Hurricane
Katrina or a related condition.
(c) Report.--If the President determines that an extension
is not necessary under subsection (b), the President shall
submit to Congress a report describing the determination.

SEC. 762. NONDISCRIMINATION.

Each recipient of Federal funds made available pursuant to
this title or an amendment made by this title, in carrying
out programs and activities with those funds, shall comply
with all Federal laws (including regulations) prohibiting
discrimination on the basis of race, color, religion, sex,
national origin, age, or disability, including title VI of
the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.). Each
recipient of Federal funds made available pursuant to this
Act or an amendment made by this Act, in carrying out
programs and activities with those funds, shall comply with
all Federal laws (including regulations) prohibiting
discrimination on the basis of race, color, religion, sex,
national origin, age, or disability, including title VI of
the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.).
______