SECTION 1. AUTHORIZATIONS OF APPROPRIATIONS FOR UNITED STATES CUSTOMS
              SERVICE AND IMMIGRATION AND NATURALIZATION SERVICE.

    (a) In General.--
            (1) Customs service.--In order to enhance border
        investigative resources on the Southwest border, enhance
        investigative resources for anticorruption efforts, intensify
        efforts against drug smuggling and money-laundering
        organizations, process cargo, reduce commercial and passenger
        traffic waiting times, and open all primary lanes during peak
        hours at certain ports on the Southwest and Northern borders,
        in addition to any other amount appropriated, there are
        authorized to be appropriated for salaries, expenses, and
        equipment for the United States Customs Service for purposes of
        carrying out this section--
                    (A) $161,248,584 for fiscal year 1999;
                    (B) $185,751,328 for fiscal year 2000; and
                    (C) such sums as may be necessary in each fiscal
                year thereafter.
            (2) INS.--In order to enhance enforcement and inspection
        resources on the Southwest land border of the United States,
        enhance investigative resources for anticorruption efforts and
        efforts against drug smuggling and money-laundering
        organizations, process cargo, reduce commercial and passenger
        traffic waiting times, and open all primary lanes during peak
        hours at major land border ports of entry on the Southwest and
        Northern land borders of the United States, in addition to any
        other amounts appropriated, there are authorized to be
        appropriated for salaries, expenses, and equipment for the
        Immigration and Naturalization Service for purposes of carrying
        out this section--
                    (A) $113,604,000 for fiscal year 1999;
                    (B) $121,064,000 for fiscal year 2000; and
                    (C) such sums as may be necessary in each fiscal
                year thereafter.
    (b) Fiscal Year 1999.--
            (1) Customs service.--Of the amounts authorized to be
        appropriated under subsection (a)(1)(A) for fiscal year 1999
        for the United States Customs Service, $48,404,000 shall be
        available until expended for acquisition and other expenses
        associated with implementation and full deployment of narcotics
        enforcement and cargo processing technology along the Southwest
        border, including--
                    (A) $6,000,000 for 8 Vehicle and Container
                Inspection Systems (VACIS);
                    (B) $11,000,000 for 5 mobile truck x-rays with
                transmission and backscatter imaging;
                    (C) $12,000,000 for the upgrade of 8 fixed-site
                truck x-rays from the present energy level of 450,000
                electron volts to 1,000,000 electron volts (1-MeV);
                    (D) $7,200,000 for 8 1-MeV pallet x-rays;
                    (E) $1,000,000 for 200 portable contraband
                detectors (busters) to be distributed among ports where
                the current allocations are inadequate;
                    (F) $600,000 for 50 contraband detection kits to be
                distributed among all Southwest border ports based on
                traffic volume;
                    (G) $500,000 for 25 ultrasonic container inspection
                units to be distributed among all ports receiving
                liquid-filled cargo and to ports with a hazardous
                material inspection facility;
                    (H) $2,450,000 for 7 automated targeting systems;
                    (I) $360,000 for 30 rapid tire deflator systems to
                be distributed to those ports where port runners are a
                threat;
                    (J) $480,000 for 20 Portable Treasury Enforcement
                Communications System (TECS) terminals to be moved
                among ports as needed;
                    (K) $1,000,000 for 20 remote watch surveillance
                camera systems at ports where there are suspicious
                activities at loading docks, vehicle queues, secondary
                inspection lanes, or areas where visual surveillance or
                observation is obscured;
                    (L) $1,254,000 for 57 weigh-in-motion sensors to be
                distributed among the ports with the greatest volume of
                outbound traffic;
                    (M) $180,000 for 36 AM radio ``Welcome to the
                United States'' stations, with 1 station to be located
                at each border crossing;
                    (N) $1,040,000 for 260 inbound vehicle counters to
                be installed at every inbound vehicle lane;
                    (O) $950,000 for 38 spotter camera systems to
                counter the surveillance of Customs inspection
                activities by persons outside the boundaries of ports
                where such surveillance activities are occurring;
                    (P) $390,000 for 60 inbound commercial truck
                transponders to be distributed to all ports of entry;
                    (Q) $1,600,000 for 40 narcotics vapor and particle
                detectors to be distributed to each border crossing;
                and
                    (R) $400,000 for license plate reader automatic
                targeting software to be installed at each port to
                target inbound vehicles.
            (2) INS.--Of the amounts authorized to be appropriated
        under subsection (a)(2)(A) for fiscal year 1999 for the
        Immigration and Naturalization Service, $15,090,000 shall be
        available until expended for acquisition and other expenses
        associated with implementation and full deployment of narcotics
        enforcement and cargo processing technology along the Southwest
        land border of the United States, including--
                    (A) $11,000,000 for 5 mobile truck x-rays with
                transmission and backscatter imaging to be distributed
                to border patrol checkpoints;
                    (B) $200,000 for 10 ultrasonic container inspection
                units to be distributed to border patrol checkpoints;
                    (C) $240,000 for 10 Portable Treasury Enforcement
                Communications System (TECS) terminals to be
                distributed to border patrol checkpoints;
                    (D) $1,000,000 for 20 remote watch surveillance
                camera systems to be distributed to border patrol
                checkpoints;
                    (E) $175,000 for 35 AM radio ``Welcome to the
                United States'' stations, with 1 station to be located
                at each permanent border patrol checkpoint;
                    (F) $875,000 for 35 spotter camera systems, with 1
                system to be located at each permanent border patrol
                checkpoint; and
                    (G) $1,600,000 for 40 narcotics vapor and particle
                detectors to be distributed to border patrol
                checkpoints.
    (c) Fiscal Year 2000 and Thereafter.--
            (1) Customs service.--Of the amounts authorized to be
        appropriated under subparagraphs (B) and (C) of subsection
        (a)(1) for the United States Customs Service for fiscal year
        2000 and each fiscal year thereafter, $4,840,400 shall be for
        the maintenance and support of the equipment and training of
        personnel to maintain and support the equipment described in
        subsection (b)(1), based on an estimate of 10 percent of the
        cost of such equipment.
            (2) INS.--Of the amounts authorized to be appropriated
        under subparagraphs (B) and (C) of subsection (a)(2) for the
        Immigration and Naturalization Service for fiscal year 2000 and
        each fiscal year thereafter, $1,509,000 shall be for the
        maintenance and support of the equipment and training of
        personnel to maintain and support the equipment described in
        subsection (b)(2), based on an estimate of 10 percent of the
        cost of such equipment.
    (d) New Technologies; Use of Funds.--
            (1) In general.--The Commissioner of Customs may use the
        amounts authorized to be appropriated for equipment under this
        section for equipment other than the equipment specified in
        subsection (b)(1) if such other equipment--
                    (A)(i) is technologically superior to the equipment
                specified in subsection (b)(1); and
                    (ii) will achieve at least the same results at a
                cost that is the same or less than the equipment
                specified in subsection (b)(1); or
                    (B) can be obtained at a lower cost than the
                equipment authorized in subparagraphs (A) through (R)
                of such subsection.
            (2) Transfer of funds.--Notwithstanding any other provision
        of this section, the Commissioner of Customs may reallocate an
        amount not to exceed 10 percent of the amount specified in any
        of subparagraphs (A) through (R) of subsection (b)(1) for
        equipment specified in any other of such subparagraphs (A)
        through (R).
            (3) INS.--With respect to the amounts and equipment
        specified in subsection (b)(2), the Attorney General shall have
        the same authority as is granted the Commissioner of Customs by
        paragraphs (1) and (2) with respect to the amounts and
        equipment specified in subsection (b)(1).
    (e) Peak Hours and Investigative Resource Enhancement.--
            (1) Customs service.--Of the amounts authorized to be
        appropriated under subsection (a)(1) for fiscal years 1999 and
        2000, $112,844,584 in fiscal year 1999 and $180,910,928 for
        fiscal year 2000 shall be for--
                    (A) a net increase of 535 inspectors and 60 special
                agents for the Southwest border and 375 inspectors for
                the Northern border, in order to open all primary lanes
                on the Southwest and Northern borders during peak hours
                and enhance investigative resources;
                    (B) a net increase of 285 inspectors and canine
                enforcement officers to be distributed at large cargo
                facilities as needed to process and screen cargo
                (including rail cargo) and reduce commercial waiting
                times on the Southwest border;
                    (C) a net increase of 360 special agents, 40
                intelligence analysts, and additional resources to be
                distributed among offices that have jurisdiction over
                major metropolitan drug or narcotics distribution and
                transportation centers for intensification of efforts
                against drug smuggling and money-laundering
                organizations;
                    (D) a net increase of 50 positions and additional
                resources to the Office of Internal Affairs to enhance
                investigative resources for anticorruption efforts; and
                    (E) the costs incurred as a result of the increase
                in personnel hired pursuant to this section.
            (2) INS.--Of the amounts authorized to be appropriated
        under subsection (a)(2) for fiscal years 1999 and 2000,
        $98,514,000 in fiscal year 1999 and $119,555,000 for fiscal
        year 2000 shall be for--
                    (A) a net increase of 535 inspectors for the
                Southwest land border and 375 inspectors for the
                Northern land border, in order to open all primary
                lanes on the Southwest and Northern borders during peak
                hours and enhance investigative resources;
                    (B) a net increase of 100 inspectors and canine
                enforcement officers for border patrol checkpoints;
                    (C) 100 canine enforcement vehicles to be used by
                the Border Patrol for inspection and enforcement, and
                to reduce waiting times, at the Southwest land border
                of the United States;
                    (D) a net increase of 40 intelligence analysts and
                additional resources to be distributed among border
                patrol sectors that have jurisdiction over major
                metropolitan drug or narcotics distribution and
                transportation centers for intensification of efforts
                against drug smuggling and money-laundering
                organizations;
                    (E) a net increase of 50 positions and additional
                resources to the Office of the Inspector General of the
                Department of Justice to enhance investigative
                resources for anticorruption efforts; and
                    (F) the costs incurred as a result of the increase
                in personnel hired pursuant to this section.

Summary: Authorizes additional appropriations for personnel and equipment for the United States Customs Service and the Immigration and Naturalization Service.

To authorize additional appropriations for personnel and technology for the United States Customs Service and the Immigration and Naturalization Service, which have joint responsibility at ports of entry, in order to increase inspection and enforcement at ports of entry and to expedite and facilitate the flow of legal commercial and passenger traffic at United States borders and interior checkpoints.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Swan Creek Black River Confederated
Ojibwa Tribes of Michigan Act''.

SEC. 2. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``Tribe'' means the Swan Creek and Black River
        Confederated Ojibwa Tribes of Michigan;
            (2) the term ``member'' means an individual who is eligible
        for enrollment in the Tribe pursuant to section 4; and
            (3) the term ``Secretary'' means the Secretary of the
        Interior.

SEC. 3. FINDINGS.

    The Congress finds the following:
            (1) The Tribe is the descendant of, and political successor
        to, the signatories of the 1785 Treaty of McIntosh (7 Stat.
        16); the 1789 Treaty of Fort Harmar (7 Stat. 28); the 1795
        Treaty of Greenville (7 Stat. 49); the 1805 Treaty with the
        Wyandot (7 Stat. 87); the 1807 Treaty of Detroit (7 Stat. 105);
        the 1808 Treaty of Detroit (7 Stat. 112); the Treaty of 1815 (7
        Stat. 131); the Treaty of 1816 (7 Stat. 146); the Treaty of
        1817 (7 Stat. 160); the Treaty of 1833 (7 Stat. 431); the 1836
        Treaty of Washington (7 Stat. 503); the 1855 Treaty of Detroit
        (11 Stat. 633); and the Treaty of 1864 (14 Stat. 657).
            (2) The aboriginal lands of the Tribe comprise the area
        which is now known as Monroe, Shiawassee, Lenawee, Wayne,
        Oakland, Macomb, St. Clair, Lapeer, Sanilac, Livingston,
        Washtenaw, Genesee, and Tuscola Counties in southeastern lower
        Michigan. The boundaries of the Tribe's aboriginal lands extend
        from Monroe County in the Southeast, to Sanilac County in the
        North, to Genesee County in the West.
            (3) The cession treaties, from the 1807 Treaty of Detroit
        through the 1836 Treaty of Washington, legitimated seizure of
        tribal lands by settlers, forced the Tribe to relinquish most
        of its rich aboriginal lands in southeastern Michigan,
        relegating the Tribe to small tracts of land in Macomb, Wayne,
        Washtenaw, and St. Clair counties in Michigan, and its members
        to small annuity payments by the United States.
            (4) The 1836 Treaty of Washington compelled the Tribe to
        relinquish the small tracts of land granted in the 1807 Treaty
        of Detroit, purportedly in exchange for future annuity payments
        and an equivalent amount of land in Kansas. The 1807 treaty did
        not require the Tribe to relocate to the lands in Kansas and
        only 51 members actually did so. According to the 1845 United
        States Richmond census documents, the majority of the Tribe
        migrated north to Lapeer County, Michigan or remained in the
        counties of Macomb, Wayne, Washtenaw, and St. Clair.
            (5) Pursuant to the 1855 Treaty of Detroit, members of the
        Tribe were requested to relocate from their homes in Lapeer,
        Macomb, Wayne, Washtenaw, and St. Clair counties in Michigan to
        non-aboriginal lands further north in Isabella County,
        Michigan, where tribal members were entitled to individual land
        allotments. Many members remained in Lapeer, Macomb, Wayne,
        Washtenaw, and St. Clair counties. For the administrative
        convenience of the Federal Government, the 1855 Treaty of
        Detroit also relocated the Saginaw Band of Chippewa Indians,
        including some Potowatomis and Ottawas to the newly-established
        reservation lands in Isabella County. Article 6 of that treaty
        also provided that the organization of the Tribe and of the
        Saginaw Band of Chippewa Indians was dissolved, ``except so far
        as may be necessary for the purpose of carrying into effect''
        the provisions of the treaty.
            (6) Another 1855 Treaty of Detroit (11 Stat. 624) similarly
        grouped different bands of Ottawa and Chippewa Indians for
        administrative convenience. Article 5 of that treaty provided
        for dissolution of the organization of these bands except so
        far as may be necessary for the purpose of carrying into effect
the provisions of that treaty. Subsequent judicial interpretation of
that article determined that its intent was to dissolve the Federal
Government's fictional coupling of these tribes, not to destroy their
independent sovereign existence. Public Law 103-324 confirmed this
interpretation by reaffirming the Federal recognition of the Little
River Band of Ottawa Indians as a tribe separate and distinct from the
Chippewa Indians.
            (7) The Treaty of 1864 confirmed continued Federal
        acknowledgement of the Tribe by specifically naming the Swan
        Creek and Black River Chippewas in that treaty's preamble.
            (8) Over time and without justification, the Federal
        Government unilaterally withdrew from the Federal relationship
        established with the Tribe through the aforementioned treaties.
        The Tribe brought suit against the Federal Government for
        amounts past due under the treaties. In 1910 and 1924, the
        Congress enacted jurisdictional acts (36 Stat. 829 and 43 Stat.
        137, respectively) to enable the Tribe and the Saginaw Band of
        Chippewa to file their respective claims against the United
        States. These claims, filed in 1927, were later incorporated
        into Indian Claims Commission Dockets 57, 59, and 13-E, and
        United Claims Court Docket 13-F.
            (9) Beginning in 1935, the Tribe petitioned for
        reorganization and assistance pursuant to the Act of June 18,
        1934 (25 U.S.C. 461 et seq., commonly referred to as the
        ``Indian Reorganization Act''). Due to misinterpretation of
        Article 6 of the 1855 Treaty of Detroit, the Commissioner of
        Indian Affairs concluded that the Tribe could not organize
        separately from the Saginaw Band of Chippewa Indians. Due to
        the lack of funding available for tribal land acquisition, the
        Swan Creek Black River Ojibwa Bands were unable to purchase
        their own reservation lands.
            (10) In 1939, agents of the Federal Government made an
        administrative decision not to provide services or extend the
        benefits of the Indian Reorganization Act to any additional
        Indian tribes located in Michigan's lower peninsula, as
        recognized by the 1807 Treaty of Detroit (7 Stat. 105), the
        1819 Treaty of Saginaw (7 Stat. 203), the March 28, 1836 Treaty
        of Washington (7 Stat. 491), and the May 9, 1836 Treaty of
        Washington (7 Stat. 503).
            (11) In 1986, Congress enacted Public Law 99-346 (100 Stat.
        674) to distribute judgment funds awarded in settlement of the
        claims brought by the Tribe and the Saginaw Band in Dockets 57,
        59, 13-E, and 13-F in a nondiscriminatory manner to the
        claimants and their descendants. This Act, like the
        jurisdictional Acts of 1910 and 1924, contained no clear and
        unambiguous intent to terminate the Federal relationship with
        the Tribe. To the contrary, these Acts acknowledged that the
        Tribe possessed collective sovereign rights in tribal lands and
        funds, a primary criterion for Federal recognition.
            (12) Despite administrative denials of requests by the
        Tribe to organize its own federally recognized tribal
        government, the Tribe continued to carry out its governmental
        functions through various formal and informal political and
        social structures, including a Tribal Council. Between 1937 and
        1991, the Tribe conducted many of its government functions
        through associations organized by Swan Creek members, including
        the Saginaw Rural and Urban Indian Association. In 1991, the
        Tribe chartered a State-sanctioned, non-profit tribal
        government and agreed to seek Federal recognition of its
        confederation of Swan Creek and Black River Ojibwa Bands as a
        distinct tribe.
            (13) Other tribes in Michigan, whose members are
        descendants of the signatories to one or more of the treaties
        listed in paragraph (1) have been recognized by the Federal
        Government as distinct Indian tribes, including the Pokagon
        Band of Potawatomi Indians, the Huron Potawatomi Band of
        Indians, the Grand Traverse Band of Ottawa and Chippewa
        Indians, the Sault St. Marie Tribe of Chippewa Indians, the Bay
        Mills Band of Chippewa Indians, the Saginaw Chippewa Tribe of
        Michigan, and the Little Traverse Bay Bands of Odawa Indians.
            (14) The Tribe has at least 300 eligible members who
        continue to reside close to what was recognized in the 1807
        Treaty of Detroit as their ancestral homelands in southeastern
        lower Michigan.
            (15) The United States Government, the government of the
        State of Michigan, and local governments have had continuous
        dealings with the recognized political leaders of the Tribe
        since 1785.
            (16) In light of the treaty relations between the Tribe and
        the United States, the Tribe's recognition as a tribe in Acts
        of Congress, and Federal recognition of the Tribe's rights in
        tribal lands and funds, it is appropriate for Congress to
        reaffirm and clarify the Federal relationship of the Tribe in
        the same manner as Congress has reaffirmed Federal recognition
        of the Lac Vieux Desert Band of Lake Superior Chippewa Indians,
the Pokagon Band of Potawatomi Indians, the Little Traverse Bay Bands
of Odawa Indians, and the Little River Band of Ottawa Indians.

SEC. 4. FEDERAL RECOGNITION.

    (a) Federal Recognition.--Federal recognition of the Swan Creek
Black River Confederated Ojibwa Tribes of Michigan Indians is hereby
affirmed. All laws and regulations of the United States of general
application to Indians or nations, tribes, or bands of Indians,
including the Act of June 18, 1934 (25 U.S.C. 461 et seq.) (commonly
referred to as the ``Indian Reorganization Act''), which are not
inconsistent with any specific provision of this Act shall be
applicable to the Tribe and its members.
    (b) Federal Services and Benefits.--
            (1) In general.--The Tribe and its members shall be
        eligible, on and after the date of the enactment of this Act,
        for all future services and benefits furnished to federally
        recognized Indian tribes without regard to the existence of a
        reservation for the Tribe or the location of the residence of
        any member on or near any Indian reservation.
            (2) Service area.--For purposes of the delivery of Federal
        services to enrolled members of the Tribe, the Tribe's service
        area shall be deemed to be the area comprised of Monroe,
        Shiawassee, Lenawee, Wayne, Oakland, Macomb, St. Clair, Lapeer,
        Sanilac, Washtenaw, Genesee, and Tuscola Counties in
        southeastern lower Michigan. Such services shall be provided
        notwithstanding the establishment of a reservation for the
        Tribe after the date of enactment of this Act. Services may be
        provided to members outside the named service area unless
        prohibited by law or regulation.

SEC. 5. REAFFIRMATION OF RIGHTS.

    (a) In General.--All rights and privileges of the Tribe, and the
members thereof, which may have been abrogated or diminished before the
date of enactment of this Act are hereby reaffirmed.
    (b) Existing Rights of Tribe.--Nothing in this Act shall be
construed to diminish any right or privilege of the Tribe, or the
members thereof, that existed prior to the date of enactment of this
Act. Except as otherwise specifically provided in any other provision
of this Act, nothing in this Act shall be construed as altering or
affecting any legal or equitable claim the Tribe might have to enforce
any right or privilege reserved by or granted to the Tribe which was
wrongfully denied to or taken from the Tribe prior to the enactment of
this Act.

SEC. 6. TRIBAL LANDS.

    The Tribe's tribal lands shall consist of all real property, now or
hereafter held by, or in trust for, the Tribe. The Secretary shall
acquire real property for the benefit of the Tribe. Any such property
shall be taken by the Secretary in the name of the United States in
trust for the benefit of the Tribe and shall become part of the Tribe's
reservation. All lands restored to the Tribe pursuant to this section,
whether now or hereafter held, shall be within those lands previously
ceded by the Tribe in the 1807 Treaty of Detroit (7 Stat. 105).

SEC. 7. MEMBERSHIP.

    Not later than 18 months after the date of the enactment of this
Act, the Tribe shall submit to the Secretary membership rolls
consisting of all individuals eligible for membership in the Tribe. The
qualifications for inclusion on the membership rolls of the Tribe shall
be determined by the membership clause in the governing documents of
the Tribe in consultation with the Secretary. Upon completion of the
rolls, the Secretary shall immediately publish notice of such in the
Federal Register. The Tribe shall ensure that such rolls are maintained
and kept current.

SEC. 8. CONSTITUTION AND GOVERNING BODY.

    (a) Constitution.--
            (1) Adoption.--Not later than 24 months after the date of
        the enactment of this Act, the Secretary shall conduct, by
        secret ballot and in accordance with the provisions of section
        16 of the Act of June 18, 1934 (25 U.S.C. 476), an election to
        adopt a constitution and bylaws for the Tribe.
            (2) Interim governing documents.--Until such time as a new
        constitution is adopted under paragraph (1), the governing
        documents in effect on the date of enactment of this Act shall
        be the interim governing documents for the Tribe.
    (b) Officials.--
            (1) Election.--Not later than 6 months after the Tribe
        adopts a constitution and bylaws pursuant to subsection (a),
        the Secretary shall conduct elections by secret ballot for the
        purpose of electing officials for the Tribe as provided in the
        constitution. The election shall be conducted according to the
        procedures described in subsection (a) except to the extent
        that such procedures conflict with the constitution of the
        Tribe.
            (2) Interim government.--Until such time as the Tribe
        elects new officials pursuant to paragraph (1), the governing
        body of the Tribe shall be the governing body in place on the
        date of the enactment of this Act, or any new governing body
        selected under the election procedures specified in the interim
        governing documents of the Tribe.

SEC. 9. JURISDICTION.

    The Tribe shall have jurisdiction to the full extent allowed by law
over all lands taken into trust for the benefit of the Tribe by the
Secretary. The Tribe shall exercise jurisdiction over all its members
who reside within its service area, as specified in section 4(b)(2) in
matters pursuant to the Indian Child Welfare Act of 1978 (25 U.S.C.
1901 et seq.) as if the members were residing upon a reservation as
defined in that Act.

Summary: Swan Creek Black River Confederated Ojibwa Tribes of Michigan Act - Reaffirms Federal recognition of the Swan Creek Black River Confederated Ojibwa Tribes of Michigan Indians as a distinct Indian tribe. Provides for the Tribe's tribal lands to be taken by the Secretary of Interior in trust for the benefit of the Tribe. Directs the Secretary of the Interior to conduct by secret ballot an election to adopt a constitution and bylaws for the Tribe.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reserve Employer Tax Credit Act of
2001''.

SEC. 2. TAX CREDIT FOR RESERVE FORCES PARTICIPATION.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to business-related
credits) is amended by adding at the end the following new section:

``SEC. 45E. RESERVE FORCE PARTICIPATION CREDIT.

    ``(a) General Rule.--For purposes of section 38, the reserve force
participation credit determined under this section is an amount equal
to the sum of--
            ``(1) the employment credit with respect to all qualified
        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) In general.--The employment credit with respect to a
        qualified employee of the taxpayer for any taxable year is
        equal to 50 percent of the amount of qualified compensation
        that would have been paid to the employee with respect to all
        periods during which the employee participates in qualified
        reserve duty to the exclusion of normal employment duties,
        including time spent in a travel status had the employee not
        been participating in qualified reserve duty. 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.
            ``(2) 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 employee
        participates in qualified reserve duty, the term `qualified
        compensation' means compensation--
                    ``(A) which is normally contingent on the
                employee's presence for work and which would be
                deductible from the taxpayer's gross income under
                section 162(a)(1) if the employee were present and
                receiving such compensation, and
                    ``(B) 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 employee participates in qualified reserve 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 employee.
            ``(3) Qualified employee.--The term `qualified employee'
        means a person who--
                    ``(A) has been an employee of the taxpayer for the
                21-day period immediately preceding the period during
                which the employee participates in qualified reserve
                duty, and
                    ``(B) 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.
    ``(c) Self-Employment Credit.--
            ``(1) In general.--The self-employment credit of a
        qualified self-employed taxpayer for any taxable year is equal
        to 50 percent of the excess, if any, of--
                    ``(A) the self-employed taxpayer's average daily
                self-employment income for the taxable year over
                    ``(B) the average daily military pay and allowances
                received by the taxpayer during the taxable year, while
                participating in qualified reserve duty to the
                exclusion of the taxpayer's normal self-employment
                duties for the number of days the taxpayer participates
                in qualified reserve duty during the taxable year,
                including time spent in a travel status.
            ``(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) of the taxpayer for the taxable year
                divided by the difference between--
                            ``(i) 365, and
                            ``(ii) the number of days the taxpayer
                        participates in qualified reserve 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 duty,
                        divided by
                            ``(ii) the total number of days the
                        taxpayer participates in qualified reserve
                        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) 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) Credit In Addition to Deduction.--The employment credit
provided in this section is in addition to any deduction otherwise
allowable with respect to compensation actually paid to a qualified
employee during any period the employee participates in qualified
reserve duty to the exclusion of normal employment duties.
    ``(e) Limitations.--
            ``(1) Maximum credit.--
                    ``(A) In general.--The credit allowed by subsection
                (a) for the taxable year--
                            ``(i) shall not exceed $7,500 in the
                        aggregate, and
                            ``(ii) shall not exceed $2,000 with respect
                        to each qualified employee.
                    ``(B) Controlled groups.--For purposes of applying
                the limitations in subparagraph (A)--
                            ``(i) all members of a controlled group
                        shall be treated as one taxpayer, and
                            ``(ii) such limitations shall be allocated
                        among the members of such group in such manner
                        as the Secretary may prescribe.
                For purposes of this subparagraph, all persons treated
                as a single employer under subsection (a) or (b) of
                section 52 or subsection (m) or (o) of section 414
                shall be treated as members of a controlled group.
            ``(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 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 two 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 for
        which the person on whose behalf the credit would otherwise be
        allowable 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, or
                    ``(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.--
            ``(1) 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.
            ``(2) Qualified reserve duty.--The term `qualified reserve
        duty' includes only active duty performed, as designated in the
        reservist's military orders, in support of a contingency
        operation as defined in section 101(a)(13) of title 10, United
        States Code.
            ``(3) Normal employment and self-employment duties.--A
        person shall be deemed to be participating in qualified reserve
        duty to the exclusion of normal employment or self-employment
        duties if the person does not engage in or undertake any
        substantial activity related to the person's normal employment
        or self-employment duties while participating in qualified
        reserve duty unless in an authorized leave status or other
        authorized absence from military duties. If a person engages in
        or undertakes any substantial activity related to the person's
        normal employment or self-employment duties at any time while
        participating in a period of qualified reserve duty, unless
        during a period of authorized leave or other authorized absence
        from military duties, the person shall be deemed to have
        engaged in or undertaken such activity for the entire period of
qualified reserve duty.
            ``(4) Certain rules to apply.--Rules similar to the rules
        of subsections (c), (d), and (e) of section 52 shall apply for
        purposes of this section.''
    (b) Conforming Amendment.--Section 38(b) of the Internal Revenue
Code of 1986 (relating to general business credit) is amended--
            (1) by striking ``plus'' at the end of paragraph (12),
            (2) by striking the period at the end of paragraph (13) and
        inserting ``, plus'', and
            (3) by adding at the end the following new paragraph:
            ``(14) the reserve force participation credit determined
        under section 45E(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section 45D the
following new item:

                              ``Sec. 45E. Reserve force participation
                                        credit.''.
    (d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the calendar year which includes
the date of the enactment of this Act.

SEC. 3. DEDUCTION OF CERTAIN EXPENSES PAID OR INCURRED BY MEMBERS OF
              THE RESERVE COMPONENTS OF THE ARMED FORCES.

    (a) In General.--Paragraph (2) of section 62(a) of the Internal
Revenue Code of 1986 (defining adjusted gross income) is amended by
adding at the end the following new subparagraph:
                    ``(D) Certain expenses of members of reserve
                components of the armed forces of the united states.--
                The deductions allowed by part VI (section 161 and
                following) which consist of--
                            ``(i) expenses of travel, meals, and
                        lodging while away from home, and
                            ``(ii) expenses of transportation,
                paid or incurred by the taxpayer in connection with the
                performance of services by such taxpayer as a member of
                a Reserve component of the Armed Forces (as defined in
                section 10101 of title 10, United States Code).''.
    (b) Two Percent Floor on Itemized Deductions Not To Apply.--
Subsection (b) of section 67 of such Code is amended by striking
``and'' at the end of paragraph (11), by striking the period at the end
of paragraph (12) and inserting ``, and'', and by adding at the end the
following new paragraph:
            ``(13) the deductions under part VI (section 161 and
        following) for expenses paid or incurred by the taxpayer in
        connection with the performance of services by such taxpayer as
        a member of a Reserve component of the Armed Forces (as defined
        in section 10101 of title 10, United States Code).''.
    (c) 50-Percent Ceiling on Deduction for Meal and Entertainment,
Etc., Expenses Not To Apply.--Paragraph (2) of section 274(n) of such
Code is amended by striking ``or'' at the end of subparagraph (D), by
striking the period at the end of subparagraph (E) and inserting ``,
or'', and by inserting after subparagraph (E) the following new
subparagraph:
                    ``(F) any expense in connection with the
                performance of services by the taxpayer as a member of
                a Reserve component of the Armed Forces (as defined in
                section 10101 of title 10, United States Code).''.
    (d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the calendar year which includes
the date of the enactment of this Act.

Summary: Reserve Employer Tax Credit Act of 2001 - Amends the Internal Revenue Code to provide: (1) employers a business tax credit for a portion of compensation that was not paid with respect to members of the military reserves who were absent from work on qualified reserve duty, (2) a comparable credit for participating self-employed individuals. And (3) for the deduction of certain expenses paid or incurred by members of a Reserve component of the armed forces.

To amend the Internal Revenue Code of 1986 to allow employers a credit against income tax with respect to employees who participate in the military reserves, to allow a comparable credit for participating self-employed individuals, and to restore the pre-1986 status of deductions incurred in connection with services performed as a member of a Reserve component of the Armed Forces.


SECTION 1. SHORT TITLE.

    This title may be cited as the ``Temporary Emergency Unemployment
Compensation Act of 2001''.

SEC. 2. FEDERAL-STATE AGREEMENTS.

    (a) In General.--Any State which desires to do so may enter into
and participate in an agreement under this title with the Secretary of
Labor (in this title referred to as the ``Secretary''). Any State which
is a party to an agreement under this title may, upon providing 30 days
written notice to the Secretary, terminate such agreement.
    (b) Provisions of Agreement.--Any agreement under subsection (a)
shall provide that the State agency of the State will make payments of
temporary emergency unemployment compensation to individuals who--
            (1) have exhausted all rights to regular compensation under
        the State law;
            (2) have no rights to compensation (including both regular
        compensation and extended compensation) with respect to a week
        under such law or any other State unemployment compensation law
        or to compensation under any other Federal law (and are not
        paid or entitled to be paid any additional compensation under
        any State or Federal law); and
            (3) are not receiving compensation with respect to such
        week under the unemployment compensation law of Canada.
    (c) Exhaustion of Benefits.--For purposes of subsection (b)(1), an
individual shall be deemed to have exhausted such individual's rights
to regular compensation under a State law when--
            (1) no payments of regular compensation can be made under
        such law because such individual has received all regular
        compensation available to such individual based on employment
        or wages during such individual's base period; or
            (2) such individual's rights to such compensation have been
        terminated by reason of the expiration of the benefit year with
        respect to which such rights existed.
    (d) Weekly Benefit Amount.--For purposes of any agreement under
this title--
            (1) the amount of temporary emergency unemployment
        compensation which shall be payable to any individual for any
        week of total unemployment shall be equal to the amount of the
        regular compensation (including dependents' allowances) payable
        to such individual during such individual's benefit year under
        the State law for a week of total unemployment;
            (2) the terms and conditions of the State law which apply
        to claims for regular compensation and to the payment thereof
        shall apply to claims for temporary emergency unemployment
        compensation and the payment thereof, except where inconsistent
        with the provisions of this title or with the regulations or
        operating instructions of the Secretary promulgated to carry
        out this title; and
            (3) the maximum amount of temporary emergency unemployment
        compensation payable to any individual for whom a temporary
        emergency unemployment compensation account is established
        under section 3 shall not exceed the amount established in such
        account for such individual.
    (e) Election by States.--Notwithstanding any other provision of
Federal law (and if State law permits), the Governor of a State is
authorized and may elect to trigger off an extended compensation period
in order to provide payment of temporary emergency unemployment
compensation to individuals who have exhausted their rights to regular
compensation under State law.

SEC. 3. TEMPORARY EMERGENCY UNEMPLOYMENT COMPENSATION ACCOUNT.

    (a) In General.--Any agreement under this title shall provide that
the State will establish, for each eligible individual who files an
application for temporary emergency unemployment compensation, a
temporary emergency unemployment compensation account with respect to
such individual's benefit year.
    (b) Amount in Account.--
            (1) In general.--The amount established in an account under
        subsection (a) shall be equal to 13 times the individual's
        average weekly benefit amount for the benefit year.
            (2) Reduction for extended benefits.--The amount in an
        account under paragraph (1) shall be reduced (but not below
        zero) by the aggregate amount of extended compensation (if any)
        received by such individual relating to the same benefit year
        under the Federal-State Extended Unemployment Compensation Act
        of 1970 (26 U.S.C. 3304 note).
            (3) Weekly benefit amount.--For purposes of this
        subsection, an individual's weekly benefit amount for any week
        is the amount of regular compensation (including dependents'
        allowances) under the State law payable to such individual for
        such week for total unemployment.

SEC. 4. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE PAYMENT OF
              TEMPORARY EMERGENCY UNEMPLOYMENT COMPENSATION.

    (a) General Rule.--There shall be paid to each State that has
entered into an agreement under this title an amount equal to 100
percent of the temporary emergency unemployment compensation paid to
individuals by the State pursuant to such agreement.
    (b) Treatment of Reimbursable Compensation.--No payment shall be
made to any State under this section in respect of any compensation to
the extent the State is entitled to reimbursement in respect of such
compensation under the provisions of any Federal law other than this
title or chapter 85 of title 5, United States Code. A State shall not
be entitled to any reimbursement under such chapter 85 in respect of
any compensation to the extent the State is entitled to reimbursement
under this title in respect of such compensation.
    (c) Determination of Amount.--Sums payable to any State by reason
of such State having an agreement under this title shall be payable,
either in advance or by way of reimbursement (as may be determined by
the Secretary), in such amounts as the Secretary estimates the State
will be entitled to receive under this title for each calendar month,
reduced or increased, as the case may be, by any amount by which the
Secretary finds that the Secretary's estimates for any prior calendar
month were greater or less than the amounts which should have been paid
to the State. Such estimates may be made on the basis of such
statistical, sampling, or other method as may be agreed upon by the
Secretary and the State agency of the State involved.

SEC. 5. FINANCING PROVISIONS.

    (a) In General.--Funds in the extended unemployment compensation
account (as established by section 905(a) of the Social Security Act
(42 U.S.C. 1105(a)) of the Unemployment Trust Fund (as established by
section 904(a) of such Act (42 U.S.C. 1104(a)) shall be used for the
making of payments to States having agreements entered into under this
title.
    (b) Certification.--The Secretary shall from time to time certify
to the Secretary of the Treasury for payment to each State the sums
payable to such State under this title. The Secretary of the Treasury,
prior to audit or settlement by the General Accounting Office, shall
make payments to the State in accordance with such certification, by
transfers from the extended unemployment compensation account (as so
established) to the account of such State in the Unemployment Trust
Fund (as so established).
    (c) Assistance to States.--There are appropriated, without fiscal
year limitation, such funds as may be necessary for purposes of
assisting States (as provided in title III of the Social Security Act
(42 U.S.C. 501 et seq.) in meeting the costs of administration of
agreements under this title.
    (d) Authorization of Appropriations for Certain Payments.--There
are appropriated from the general fund of the Treasury, without fiscal
year limitation, to the extended unemployment compensation account (as
so established) of the Unemployment Trust Fund (as so established) such
sums as the Secretary estimates to be necessary to make the payments
under this section in respect of--
            (1) compensation payable under chapter 85 of title 5,
        United States Code; and
            (2) compensation payable on the basis of services to which
        section 3309(a)(1) of the Internal Revenue Code of 1986
        applies.
Amounts appropriated pursuant to the preceding sentence shall not be
required to be repaid.

SEC. 6. FRAUD AND OVERPAYMENTS.

    (a) In General.--If an individual knowingly has made, or caused to
be made by another, a false statement or representation of a material
fact, or knowingly has failed, or caused another to fail, to disclose a
material fact, and as a result of such false statement or
representation or of such nondisclosure such individual has received an
amount of temporary emergency unemployment compensation under this
title to which he was not entitled, such individual--
            (1) shall be ineligible for further temporary emergency
        unemployment compensation under this title in accordance with
        the provisions of the applicable State unemployment
        compensation law relating to fraud in connection with a claim
        for unemployment compensation; and
            (2) shall be subject to prosecution under section 1001 of
        title 18, United States Code.
    (b) Repayment.--In the case of individuals who have received
amounts of temporary emergency unemployment compensation under this
title to which they were not entitled, the State shall require such
individuals to repay the amounts of such emergency unemployment
compensation to the State agency, except that the State agency may
waive such repayment if it determines that--
            (1) the payment of such emergency unemployment compensation
        was without fault on the part of any such individual; and
            (2) such repayment would be contrary to equity and good
        conscience.
    (c) Recovery by State Agency.--
            (1) In general.--The State agency may recover the amount to
        be repaid, or any part thereof, by deductions from any
        temporary emergency unemployment compensation payable to such
        individual under this title or from any unemployment
        compensation payable to such individual under any Federal
        unemployment compensation law administered by the State agency
        or under any other Federal law administered by the State agency
        which provides for the payment of any assistance or allowance
        with respect to any week of unemployment, during the 3-year
        period after the date such individuals received the payment of
        the temporary emergency unemployment compensation to which they
        were not entitled, except that no single deduction may exceed
        50 percent of the weekly benefit amount from which such
        deduction is made.
            (2) Opportunity for hearing.--No repayment shall be
        required, and no deduction shall be made, until a determination
        has been made, notice thereof and an opportunity for a fair
        hearing has been given to the individual, and the determination
        has become final.
    (d) Review.--Any determination by a State agency under this section
shall be subject to review in the same manner and to the same extent as
determinations under the State unemployment compensation law, and only
in that manner and to that extent.

SEC. 7. DEFINITIONS.

    In this title, the terms ``compensation'', ``regular
compensation'', ``extended compensation'', ``additional compensation'',
``benefit year'', ``base period'', ``State'', ``State agency'', ``State
law'', and ``week'' have the respective meanings given such terms under
section 205 of the Federal-State Extended Unemployment Compensation Act
of 1970 (26 U.S.C. 3304 note).

SEC. 8. APPLICABILITY.

    An agreement entered into under this Act shall apply to weeks of
unemployment--
            (1) beginning no earlier than the first day of the first
        week beginning after the date on which such agreement is
        entered into; and
            (2) ending before the date that is 18 months after the date
        of enactment of this Act.

SEC. 9. TEMPORARY REDUCTION IN INTEREST RATE APPLICABLE TO REPAYMENTS
              OF ADVANCES TO STATE UNEMPLOYMENT FUNDS.

    With respect to advances made to a State under section 1201 of the
Social Security Act (42 U.S.C. 1321) during the period beginning on the
date of enactment of this Act and ending on the date that is 18 months
after such date of enactment, the rate of interest paid by a State on
such an advance shall be determined under section 1202(b)(4) of the
such Act (42 U.S.C. 1322(b)(4)) by substituting ``5 percent'' for ``10
percent'' in the matter preceding subparagraph (A).

Summary: Temporary Emergency Unemployment Compensation Act of 2001 - Provides for a program of temporary emergency unemployment compensation (TEUC). Sets forth TEUC program requirements for Federal-State agreements, formulas for determining amounts in individual TEUC accounts and weekly benefits, payments to States, and financing. Includes among eligibility requirements an individual's not having rights, with respect to a week, to other compensation . Reduces an individual TEUC account by the aggregate amount of any extended compensation for the same benefit year. Applies TEUC agreements to weeks of unemployment: (1) beginning on or after the first day of the first week after the date on which such agreement is entered into. And (2) ending before the date that is 18 months after enactment of this Act. Provides for a temporary reduction in the interest rate applicable to repayments of advances to State unemployment funds.

A bill to provide for a program of temporary enhanced unemployment benefits.


SECTION 1. LIMITATION ON LIABILITY FOR PROTECTION OF COPYRIGHTED WORKS
              ON PEER-TO-PEER NETWORKS.

    (a) In General.--Chapter 5 of title 17, United States Code, is
amended by adding at the end the following new section:
``Sec. 514. Remedies for infringement: use of technologies to prevent
              infringement of copyrighted works on peer-to-peer
              computer networks
    ``(a) In General.--Notwithstanding any State or Federal statute or
other law, and subject to the limitations set forth in subsections (b)
and (c), a copyright owner shall not be liable in any criminal or civil
action for disabling, interfering with, blocking, diverting, or
otherwise impairing the unauthorized distribution, display,
performance, or reproduction of his or her copyrighted work on a
publicly accessible peer-to-peer file trading network, if such
impairment does not, without authorization, alter, delete, or otherwise
impair the integrity of any computer file or data residing on the
computer of a file trader.
    ``(b) Exceptions.--Subsection (a) shall not apply to a copyright
owner in a case in which--
            ``(1) in the course of taking an action permitted by
        subsection (a), the copyright owner--
                    ``(A) impairs the availability within a publicly
                accessible peer-to-peer file trading network of a
                computer file or data that does not contain a work, or
                portion thereof, in which the copyright owner has an
                exclusive right granted under section 106, except as
                may be reasonably necessary to impair the distribution,
                display, performance, or reproduction of such a work,
                or portion thereof, in violation of any of the
                exclusive rights of the copyright owner under section
                106;
                    ``(B) causes economic loss to any person other than
                affected file traders; or
                    ``(C) causes economic loss of more than $50.00 per
                impairment to the property of the affected file trader,
                other than economic loss involving computer files or
                data made available through a publicly accessible peer-
                to-peer file trading network that contain works in
                which the owner has an exclusive right granted under
                section 106; or
            ``(2) the copyright owner fails to comply with the
        requirements of subsection (c).
    ``(c) Notification Requirement.--(1) A copyright owner shall not be
liable under subsection (a) for an act to which subsection (a) applies
only if--
            ``(A) the copyright owner has notified the Department of
        Justice, in such manner as the Attorney General shall specify,
        of the specific technologies the copyright owner intends to use
        to impair the unauthorized distribution, display, performance,
        or reproduction of the owner's copyrighted works over a
        publicly accessible peer-to-peer file trading network; and
            ``(B) the notification under paragraph (1) was made at
        least 7 days before the copyright owner engaged in the act.
    ``(2) At the request of an affected file trader or the assignee of
an Internet Protocol address used by an affected file trader, a
copyright owner shall provide notice to the affected file trader or
assignee (as the case may be) of--
            ``(A) the reason for impairing trading in the computer file
        or data containing the copyrighted work of the copyright owner;
            ``(B) the name and address of the copyright owner; and
            ``(C) the right of the affected file trader to bring an
        action described in subsection (d).
    ``(3) The notification by a copyright owner under paragraph (1)
shall not be construed for any purpose as an admission of an unlawful
act.
    ``(d) Cause of Action for Wrongful Impairment.--(1) If, pursuant to
the authority provided by subsection (a), a copyright owner knowingly
and intentionally impairs the distribution, display, performance, or
reproduction of a particular computer file or data, and has no
reasonable basis to believe that such distribution, display,
performance, or reproduction constitutes an infringement of copyright,
and an affected file trader suffers economic loss in excess of $250 as
a result of the act by the copyright owner, the affected file trader
may seek compensation for such economic loss in accordance with the
following:
            ``(A) The affected file trader may file a claim for such
        compensation with the Attorney General not later than 1 year
        after the date on which the claim accrues. The Attorney General
        shall, not later than 10 days after the claim is filed, serve
        notice of the claim on the copyright owner against whom the
        claim is brought, and shall investigate the claim. The claim
        shall be in writing under oath or affirmation and shall contain
        such information and be in such form as the Attorney General
        requires. The claim shall not be made public by the Attorney
General.
            ``(B) If the Attorney General determines after such
        investigation that there is not reasonable cause to believe
        that the facts alleged in the claim are true, the Attorney
        General shall dismiss the claim and promptly notify the
        affected file trader and the copyright owner against whom the
        claim is brought of the Attorney General's action.
            ``(C) If the Attorney General determines after such
        investigation that there is reasonable cause to believe that
        the facts alleged in the claim are true, the Attorney General
        shall promptly notify the affected file trader and the
        copyright owner of the Attorney General's determination.
            ``(D) The Attorney General shall make the determination on
        reasonable cause as promptly as possible, but in no case later
        than 120 days after the date on which the claim is filed.
            ``(E) The affected file trader may seek compensation for
        the economic loss that is the subject of the claim, plus
        reasonable attorney's fees, in the appropriate United States
        district court by filing an action in such court--
                    ``(i) not later than 60 days after being notified
                of the Attorney General's determination under
                subparagraph (C); or
                    ``(ii) if the Attorney General has not made a
                determination on the claim within the 120-day period
                specified in subparagraph (D), not later than 60 days
                after the end of that 120-day period.
    ``(2) The cause of action established by this subsection shall only
be available as a remedy against impairing actions that would not be
lawful but for subsection (a).
    ``(e) Suits by United States.--The Attorney General of the United
States may seek injunctive relief in the appropriate United States
district court to prevent a copyright owner from engaging in impairing
activities that would not be lawful but for subsection (a) if that
owner has engaged in a pattern or practice of impairing the
distribution, display, performance, or reproduction of computer files
or data without a reasonable basis to believe that infringement of
copyright has occurred.
    ``(f) Construction With Other Statutes.--(1) Nothing in this
section shall be construed as limiting the authority of a copyright
owner to take any otherwise lawful action to enforce any of the
exclusive rights granted by section 106.
    ``(2) Nothing in this section shall limit any remedies available to
a person under section 1030 of title 18, or under any other State or
Federal statute or any other law, against a copyright owner who fails
to qualify for the protections afforded under subsection (a).
    ``(3) Actions taken by a copyright owner pursuant to subsection (a)
shall not be considered by a court for any other purpose under this
title, including in determining whether a particular use of a work is
infringing.
    ``(g) Nondisclosure of Information.--Information contained in any
notification under subsection (c)(1)(A) may not be made available to
the public under section 552 of title 5.
    ``(h) Definitions.--In this section--
            ``(1) the term `economic loss' means monetary costs only;
            ``(2) `peer-to-peer file trading network' means two or more
        computers which are connected by computer software that--
                    ``(A) is primarily designed to--
                            ``(i) enable the connected computers to
                        transmit files or data to other connected
                        computers;
                            ``(ii) enable the connected computers to
                        request the transmission of files or data from
                        other connected computers; and
                            ``(iii) enable the designation of files or
                        data on the connected computers as available
                        for transmission; and
                    ``(B) does not permanently route all file or data
                inquiries or searches through a designated, central
                computer located in the United States;
            ``(3) a peer-to-peer file trading network is `publicly
        accessible' if--
                    ``(A) participation in the network is substantially
                open to the public; and
                    ``(B) the network enables the transmission of
                computer files or data over the Internet or any other
                public network of computers;
            ``(4) the term `file trader' means an individual who is
        utilizing a publicly accessible, peer-to-peer file trading
        network to transmit, make available for transmission, or
        download computer files or data, or the owner of a computer
        that is connected to a publicly accessible, peer-to-peer file
        trading network and is engaged in the transmission of computer
        files or data through the peer-to-peer file trading network;
            ``(5) the term `distribution', in the case of a computer
        connected to a peer-to-peer file trading network, includes the
        placement of a computer file or data in an area of a computer
        that is accessible to other computers connected to the peer-to-
        peer file trading network; and
            ``(6) the term `copyright owner' means a legal or
        beneficial owner of an exclusive right under section 106 and
        any party authorized to act on the owner's behalf.''.
    (b) Conforming Amendment.--The table of sections for chapter 5 of
title 17, United States Code, is amended by adding at the end the
following new item:

``514. Remedies for infringement: use of technologies to prevent
                            infringement of copyrighted works on peer-
                            to-peer computer networks.''.

Summary: Amends Federal copyright law to protect a copyright owner from liability in any criminal or civil action for impairing, with appropriate technology, the unauthorized distribution, display, performance, or reproduction of his or her copyrighted work on a publicly accessible peer-to-peer file trading network, if such impairment does not, without authorization, alter, delete, or otherwise impair the integrity of any computer file or data residing on the computer of a file trader. Denies such liability protection to a copyright owner who does not comply with certain notification requirements or who: (1) impairs the availability within a publicly accessible peer-to-peer file trading network of a computer file or data that does not contain a work in which the owner has an exclusive copyright. (2) causes economic loss to any person other than affected file traders. Or (3) causes other economic loss of more than $50.00 per impairment to the property of the affected file trader. Conditions a copyright owner's protection from liability upon seven-days' notice to the Department of Justice of the specific technologies intended for use to impair unauthorized distribution, display, performance, or reproduction of a copyrighted work. Requires notice as well, upon request, to an affected file trader or the assignee of an Internet Protocol address used by an affected file trader. Provides for a cause of action against a copyright owner for wrongful impairment, including an action by the Attorney General for injunctive relief in certain circumstances.

To amend title 17, United States Code, to limit the liability of copyright owners for protecting their works on peer-to-peer networks.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Independent Bipartisan Commission on
Campaign Finance Reform Act of 1997''.

SEC. 2. ESTABLISHMENT AND DUTIES OF COMMISSION.

    (a) Establishment.--There is established a commission to be known
as the ``Independent Bipartisan Commission on Campaign Finance Reform''
(referred to in this Act as the ``Commission'').
    (b) Duties.--The duties of the Commission are to study the law
relating to elections for Federal office and to report and recommend
legislation to reform that law.

SEC. 3. MEMBERSHIP OF COMMISSION.

    (a) Composition.--
            (1) Number.--The Commission shall be composed of 12 members
        appointed by the President not later than the date that is 15
        days after the date of enactment of this Act.
            (2) Requirements.--The members shall be appointed from
        among individuals who--
                    (A) are not incumbent Members of Congress; and
                    (B) are specially qualified to serve on the
                Commission by reason of education, training, or
                experience.
    (b) Appointment.--
            (1) In general.--Members shall be appointed as follows:
                    (A) 3 members (one of whom is a political
                independent (as defined in paragraph (3))) shall be
                appointed from among a list of nominees submitted by
                the Speaker of the House of Representatives.
                    (B) 3 members (one of whom is a political
                independent) shall be appointed from among a list of
                nominees submitted by the Majority Leader of the
                Senate.
                    (C) 3 members (one of whom is a political
                independent) shall be appointed from among a list of
                nominees submitted by the Minority Leader of the House
                of Representatives.
                    (D) 3 members (one of whom is a political
                independent) shall be appointed from among a list of
                nominees submitted by the Minority Leader of the
                Senate.
            (2) Failure to submit list of nominees.--If an official
        described in subparagraph (A), (B), (C), or (D) of paragraph
        (1) fails to submit a list of nominees to the President during
        the 15-day period that begins on the date of enactment of this
        Act--
                    (A) the applicable subparagraph shall no longer
                apply; and
                    (B) the President shall appoint 3 members (one of
                whom is a political independent) who meet the
                requirements described in subsection (a) and such other
                criteria as the President may determine to apply.
            (3) Political independent.--In this subsection, the term
        ``political independent'' means an individual who at no time on
        or after January 1, 1992--
                    (A) has held elective office as a member of the
                Democratic or Republican party;
                    (B) has received any compensation from the
                Democratic or Republican party or from a Democratic or
                Republican party officeholder or candidate; or
                    (C) has provided substantial volunteer services or
                made any substantial contribution to the Democratic or
                Republican party or to a Democratic or Republican party
                officeholder or candidate.
    (c) Chairperson.--At the time of the appointment, the President
shall designate 1 member of the Commission as the chairperson of the
Commission.
    (d) Period of Appointment.--A member of the Commission shall be
appointed for the life of the Commission.
    (e) Vacancy.--A vacancy in the Commission shall be filled in the
manner in which the original appointment was made.
    (f) Political Affiliation.--Not more than 4 members of the
Commission may be of the same political party (as defined in section
301 of the Federal Election Campaign Act of 1971 (2 U.S.C. 431)).

SEC. 4. POWERS OF COMMISSION.

    (a) Hearings.--
            (1) In general.--The Commission may, for the purpose of
        carrying out this Act, hold hearings, sit and act at such times
        and places, take such testimony, and receive such evidence as
        the Commission considers appropriate.
            (2) Open meetings.--In carrying out the preceding
        paragraph, the Commission shall ensure that a substantial
        number of its meetings are open meetings, with significant
        opportunities for testimony from members of the general public.
    (b) Quorum.--7 members of the Commission shall constitute a quorum,
but a lesser number may hold hearings.
    (c) Voting.--The approval of at least 9 members of the Commission
is required when approving all or a portion of the recommended
legislation.
    (d) Power of Member.--A member of the Commission may, if authorized
by the Commission, take an action that the Commission is authorized to
take under this section.

SEC. 5. ADMINISTRATIVE PROVISIONS.

    (a) Pay and Travel Expenses of Members.--
            (1) Pay rate.--Each member of the Commission shall be paid
        at a rate equal to the daily equivalent of the annual rate of
        basic pay prescribed for level IV of the Executive Schedule
        under section 5315 of title 5, United States Code, for each day
        (including travel time) during which the member is engaged in
        the actual performance of duties vested in the Commission.
            (2) Travel expenses.--Members of the Commission shall
        receive travel expenses, including per diem in lieu of
        subsistence, in accordance with sections 5702 and 5703 of title
        5, United States Code.
    (b) Staff Director.--The Commission shall, without regard to
section 5311(b) of title 5, United States Code, appoint a staff
director, who shall be paid at the rate of basic pay payable for level
IV of the Executive Schedule under section 5315 of title 5, United
States Code.
    (c) Staff of Commission; Services.--
            (1) In general.--With the approval of the Commission, the
        staff director of the Commission may appoint additional
        personnel, without regard to the provisions of title 5, United
        States Code, governing appointments in the competitive service,
        and may fix the pay of additional personnel, without regard to
        the provisions of chapter 51 and subchapter III of chapter 53
        of that title relating to classification and General Schedule
        pay rates.
            (2) Maximum rate of pay.--An an individual appointed under
        paragraph (1) may not receive pay in excess of the maximum
        annual rate of basic pay payable for grade GS-15 of the General
        Schedule under section 5332 of title 5, United States Code.
            (3) Experts and consultants.--The Commission may procure by
        contract the temporary or intermittent services of experts or
        consultants pursuant to section 3109 of title 5, United States
        Code.

SEC. 6. REPORT AND RECOMMENDED LEGISLATION.

    (a) Report.--Not later than July 1, 1998, or the date that is 240
days after the date on which the last of the members of the Commission
is appointed under section 3 (whichever occurs earlier), the Commission
shall submit to the President, the Speaker and Minority Leader of the
House of Representatives, and the Majority and Minority Leaders of the
Senate a report of the activities of the Commission.
    (b) Recommendations; Draft of Legislation.--The report under
subsection (a) shall include--
            (1) any recommendations for changes in the law (including
        regulations) relating to elections for Federal office
        (including any changes in the rules of the Senate or the House
        of Representatives) to which 9 or more members of the
        Commission agree; and
            (2) at least 1 bill (including technical and conforming
        provisions) approved by the members of the Commission to
        implement the recommendations.
    (c) Goals of Recommendations and Legislation.--In making
recommendations and preparing legislation under this section, the
Commission shall consider the following primary goals:
            (1) Encouraging fair and open Federal elections that
        provide voters with meaningful information about candidates and
        issues.
            (2) Eliminating the disproportionate influence of special
        interest financing of Federal elections.
            (3) Creating a more equitable electoral system for
        challenger and incumbent candidates.

SEC. 7. EXPEDITED CONGRESSIONAL CONSIDERATION OF LEGISLATION.

    (a) In General.--Each bill submitted under section 6(b) shall--
            (1) not later than 3 days after the Commission submits the
        bill under section 6(a), be introduced (by request) in the
        House of Representatives by the Majority Leader of the House
        and shall be introduced (by request) in the Senate by the
        Majority Leader of the Senate; and
            (2) be given expedited consideration under the same
        provisions and in the same way, subject to subsection (b), as a
        joint resolution under section 2908 of the Defense Base Closure
        and Realignment Act of 1990 (10 U.S.C. 2678 note).
    (b) Special Rules.--For purposes of applying subsection (a) with
respect to such provisions, the following rules shall apply:
            (1) Section 2908(a) of the Defense Base Closure and
        Realignment Act of 1990 (10 U.S.C. 2678 note) shall not apply.
            (2) Any reference to the resolution described in subsection
        (a) shall be deemed to be a reference to the bill submitted
        under section 6(b) of this Act.
            (3) Any reference to the Committee on National Security of
        the House of Representatives shall be deemed to be a reference
        to the Committee on House Oversight of the House of
        Representatives and any reference to the Committee on Armed
        Services of the Senate shall be deemed to be a reference to the
        Committee on Rules and Administration of the Senate.
            (4) Any reference to the date on which the President
        transmits a report shall be deemed to be a reference to the
        date on which the recommendation of the Commission is submitted
        under section 6(b).
            (5) Notwithstanding section 2908(d)(2) of the Act--
                    (A) debate on the bill in the House of
                Representatives, and on all debatable motions and
                appeals in connection with the bill, shall be limited
                to not more than 10 hours, divided equally between
                those favoring and those opposing the bill;
                    (B) debate on the bill in the Senate, and on all
                debatable motions and appeals in connection with the
                bill, shall be limited to not more than 10 hours,
                divided equally between those favoring and those
                opposing the bill; and
                    (C) debate in the Senate on any single debatable
                motion and appeal in connection with the bill shall be
                limited to not more than 1 hour, divided equally
                between the proponent of the motion and the manager of
                the bill, except that if the manager of the bill is in
                favor of the motion or appeal, the time in opposition
                to the motion or appeal shall be controlled by the
                Minority Leader or the Leader's designee, and the
                Majority and Minority Leader may each allot additional
                time from time under such Leader's control to any
                Senator during the consideration of any debatable
                motion or appeal.

SEC. 8. TERMINATION.

    The Commission shall cease to exist on the date that is 90 days
after the date of the submission of its report under section 6.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Commission such sums
as are necessary to carry out its duties under this Act.

Summary: Independent Bipartisan Commission on Campaign Finance Reform Act of 1997 - Establishes the Independent Bipartisan Commission on Campaign Finance Reform to study the law relating to elections for Federal office and to report and recommend legislation to reform that law. Provides for expedited congressional consideration of legislation submitted under this Act. Terminates the Commission 90 days after submission of its report. Authorizes appropriations.