SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States-Japan Trade Equalizing
Act of 1993''.

                   TITLE I--FINDINGS AND DEFINITIONS

SEC. 101. FINDINGS, PURPOSE, AND DISCLAIMERS.

    (a) Findings.--The Congress makes the following findings:
            (1) The United States trade deficit with Japan has
        increased substantially over the past decade. In 1991, the
        United States trade deficit with Japan was $43,400,000,000. The
        trade deficit increased by 14 percent in 1 year, to over
        $49,400,000,000 by the end of 1992.
            (2) The traditional domestic motor vehicle and motor
        vehicle parts sector directly employs more than 1 million
        workers and indirectly employs several million more. The
        workers are skilled, hard working, productive, capable, and
        proud of their work. The workers and their employers have
        achieved great improvements in quality, performance, fuel
        economy, safety, and design of domestic motor vehicles.
            (3) The domestic motor vehicle and motor vehicle parts
        sector directly and indirectly accounts for about 12 percent of
        our gross national product and generates more than
        $200,000,000,000 a year in revenue.
            (4) The domestic motor vehicle and motor vehicle parts
        sector is a major consumer of steel, glass, textiles, rubber,
        aluminum, machine tools, chemicals, electronics, and other
        important products.
            (5) Recognizing the competitive pressures facing the motor
        vehicle industry, Japan has operated under a voluntary export
        restraint arrangement since 1981 that has not been recognized
        or enforced by the United States Government.
            (6) Since 1986 the United States Government has engaged,
        with little result, in a negotiating process with the
        Government of Japan to obtain fair access to the markets of
        that nation for United States producers of motor vehicle parts
        and manufacturers of motor vehicles.
            (7) Despite these negotiating efforts, in 1992 the United
        States posted a $49,400,000,000 trade deficit with Japan of
        which over $30,000,000,000 was accounted for by the automotive
        sector deficit ($9,800,000,000 of which was attributable to
        motor vehicle parts), and there is little evidence that the
        Japanese Government is seriously trying to eliminate such
        deficits which are detrimental to the United States economy and
        jobs.
            (8) In addition to transplant assembly facilities in the
        United States that are owned or controlled by Japanese persons,
        motor vehicles and motor vehicle parts are being imported from
        Japan into the United States in such increased quantities and
        under such conditions as to cause, or threaten to cause,
        serious injury to domestic manufacturers of like or directly
        competitive products and to the domestic workers producing such
        products.
            (9) In the last 5 years, transplant assembly facilities in
        the United States that are owned or controlled by persons from
        Japan have not shifted significantly their procurement to
        traditional United States producers of motor vehicle parts, as
        illustrated by the fact that--
                    (A) the United States automotive parts trade
                deficit with Japan grew between 1985 and 1990 at an
                annual average rate of 17 percent and totaled
                $9,800,000,000 in 1992; and
                    (B) only 12.5 percent of the customs value of
                vehicles manufactured in such transplant facilities in
                the United States is based on parts produced by
                traditional United States motor vehicle parts
                producers, while 35.1 percent of such value is based on
                imports from Japan and 32.4 percent of such value is
                based on purchases from Japanese-affiliated parts
                producers located in the United States.
            (10) The pattern of procurement described in paragraph (9)
        has contributed significantly to the overall United States
        merchandise trade deficit with Japan.
            (11) The continuation of current procurement practices by
        automobile companies owned or controlled by persons from Japan
        and the increased production of vehicles by transplant
        facilities in the United States is projected to result in a 110
        percent (or $21,990,000,000) increase in the United States
        motor vehicle parts trade deficit by 1994.
            (12) Aftermarket parts are likely to account for 50 percent
        of the motor vehicle parts trade deficit with Japan by 1994
        because transplant facilities are not purchasing sufficient
        quantities of original equipment from United States suppliers.
            (13) Traditional United States motor vehicle parts
        manufacturers are particularly underrepresented in the
        production of motor vehicles produced by transplant facilities
        in the United States in the following 3 major, high value-added
        vehicle systems:
                    (A) Engines.
                    (B) Transmissions.
                    (C) Body structures.
            (14) In the 1991 National Trade Estimates Report, the
        United States Trade Representative listed ``close and durable
        relationships'' between Japanese motor vehicle makers and
        suppliers as a barrier to United States motor vehicle parts
        sales in Japan.
            (15) The market share of Japanese motor vehicle
        manufacturers in the European Community is currently 10 percent
        while their market share in the United States is about 35
        percent.
            (16) The European Community has negotiated an understanding
        with the Government of Japan limiting the market share of motor
        vehicles produced by Japanese motor vehicle manufacturing
        companies both in Japan and in the European Community to less
        than 16 percent until the year 2000.
            (17) The home market for motor vehicles and motor vehicle
        parts in Japan remains largely closed to all foreign
        manufacturers whose combined market share equals no more than 3
        percent.
            (18) Japan's nontariff market barriers include onerous
        inspection and certification systems that discriminate against
        foreign-made motor vehicles and motor vehicle parts, a tax
        system that discriminates against foreign-made products, closed
        distribution systems and dealer networks, and government-
        tolerated ``Keiretsu'' relationships involving motor vehicle
        and motor vehicle parts manufacturers and dealers. At the same
        time, Japanese firms enjoy open markets in the United States
        with no limitations or discrimination.
    (b) Purpose.--The purpose of this Act is to decrease the
merchandise trade deficit of the United States with Japan by providing
for a staged merchandise trade deficit reduction over a 5-year period.
    (c) Congressional Disclaimers.--It is the intent of Congress that
this Act shall not be deemed to modify or amend the terms or conditions
of any international treaty, convention, or agreement that may be
applicable to motor vehicles and motor vehicle parts and to which the
United States, on the date of the enactment of this Act, is a party,
including, but not limited to, the terms or conditions of any such
treaty, convention, or agreement which provide for the resolution of
conflicts between the parties thereto. Nothing in this Act shall be
construed (1) to confer jurisdiction upon any court of the United
States to consider and resolve such conflicts, or (2) to alter or amend
any law existing on the date of the enactment of this Act which may
confer such jurisdiction in such courts.

SEC. 102. DEFINITIONS.

    For purposes of this Act:
            (1) Motor vehicle and motor vehicle parts.--
                    (A) The term ``motor vehicle'' means any article of
                a kind described in heading 8703 or 8704 of the
                Harmonized Tariff Schedule of the United States.
                    (B) The term ``motor vehicle parts'' means any
                article of a kind described in the following provisions
                of the Harmonized Tariff Schedule of the United States
                if suitable for use in the manufacture or repair of
                motor vehicles:
                            (i) Subheadings 8407.31.00 through
                        8407.34.20 (relating to spark-ignition
                        reciprocating or rotary internal combustion
                        piston engines).
                            (ii) Subheading 8408.20 (relating to the
                        compression-ignition internal combustion
                        engines).
                            (iii) Subheading 8409 (relating to parts
                        suitable for use solely or principally with
                        engines described in clauses (i) and (ii)).
                            (iv) Subheading 8483 (relating to
                        transmission shafts and related parts).
                            (v) Subheadings 8706.00.10 and 8706.00.15
                        (relating to chassis fitted with engines).
                            (vi) Heading 8707 (relating to motor
                        vehicle bodies).
                            (vii) Heading 8708 (relating to bumpers,
                        brakes and servo brakes, gear boxes, drive
                        axles, nondriving axles, road wheels,
                        suspension shock absorbers, radiators, mufflers
                        and exhaust pipes, clutches, steering wheels,
                        steering columns, steering boxes, and other
                        parts and accessories of motor vehicles).
                The Secretary shall by regulation include as motor
                vehicle parts such other articles (described by
                classification under such Harmonized Tariff Schedule)
                that the Secretary considers appropriate for the
                purposes of this Act.
                    (C)(i) The term ``Japanese motor vehicle'' means a
                motor vehicle which is the product of Japan.
                    (ii) The term ``Japanese motor vehicle part'' means
                a motor vehicle part which is the product of Japan.
            (2) Entered.--The term ``entered'' means entered, or
        withdrawn from warehouse for consumption, in the customs
        territory of the United States.
            (3) Import restriction implementation period.--The term
        ``import restriction implementation period'' means a calendar
        year which--
                    (A) occurs after 1994 and before calendar year
                2001, and
                    (B) follows a calendar year with respect to which
                the Secretary finds, under section 201(b), that the
                trade deficit reduction target was not met.
            (4) Interstate sale.--The term ``interstate sale'' means
        sale or distribution in the interstate commerce of the United
        States.
            (5) Baseline deficit.--(A) The term ``baseline deficit''
        means the average monthly merchandise trade deficit, as
        computed by the Secretary, of the United States with Japan
        during calendar year 1993.
            (B) In computing merchandise trade deficits under this
        section, the value of bilateral trade between the United States
        and Japan in--
                    (i) crude petroleum; and
                    (ii) nonmonetary gold;
        shall not be included.
            (6) Secretary.--The term ``Secretary'' means the Secretary
        of Commerce.
            (7) Trade representative.--The term ``Trade
        Representative'' means the United States Trade Representative.

             TITLE II--MERCHANDISE TRADE DEFICIT REDUCTION

SEC. 201. STAGED TRADE DEFICIT REDUCTION.

    (a) Trade Deficit Reduction Targets.--
            (1) In general.--The trade deficit reduction target for
        each of the calendar years listed below is an average monthly
        merchandise trade deficit of the United States with Japan
        during such year that does not exceed an amount that equals the
        applicable percentage of the baseline deficit that appears
        opposite such year:

Calendar year                       Applicable percentage of baseline
                                            deficit
    1994..........................................           80 percent
    1995..........................................           60 percent
    1996..........................................           40 percent
    1997..........................................           20 percent
    1998..........................................            0 percent
            (2) Special rule for 1998.--For calendar year 1998, the 0
        percent trade deficit reduction target shall be treated as
        having been met if the merchandise trade deficit of the United
        States with Japan during such year does not exceed--
                    (A) an amount equal to 5 percent of the value of
                the aggregate bilateral merchandise trade between the
                United States and Japan during such year; or
                    (B) $5,000,000,000.
    (b) Computations.--
            (1) In general.--Not later than January 1 following each
        calendar year listed in subsection (a)(1), the Secretary shall
        compute whether the trade deficit reduction target for such
        year was met.
            (2) Announcement of import restriction implementation
        period.--If the Secretary finds under paragraph (1) that the
        trade deficit reduction target specified under subsection (a)
        for a calendar year was not met, the Secretary shall announce,
        by publication in the Federal Register, that the import
        restriction implementation period is in effect beginning on
        January 1 of the year after the year to which the finding
        applies.

SEC. 202. COMPUTATION OF IMPORT RESTRICTIONS IF TRADE DEFICIT REDUCTION
              TARGET NOT MET.

    (a) In General.--On January 1 of the first calendar year (and each
calendar year thereafter) for which an import restriction
implementation period is in effect, the Secretary shall compute and
publish in the Federal Register the quantitative import restrictions
for such calendar year.
    (b) Computation.--
            (1) In general.--For purposes of subsection (a), the term
        ``quantitative import restrictions'' means the aggregate
        quantity of Japanese motor vehicles and the aggregate quantity
        of Japanese motor vehicle parts that may be entered into the
        United States (in accordance with paragraph (2) or (3)) for a
        calendar year described in subsection (a).
            (2) First year restrictions.--The aggregate quantity of
        Japanese motor vehicles and Japanese motor vehicle parts that
        may be entered into the United States, during the first
        calendar year for which an import restriction implementation
        period is in effect, may not exceed the aggregate quantity of
        such motor vehicles and the aggregate quantity of such motor
        vehicle parts entered into the United States during 1993,
        reduced by 20 percent.
            (3) Subsequent years.--In the case of any calendar year for
        which an import restriction period is in effect after the first
        such calendar year, the aggregate quantity of Japanese motor
        vehicles and Japanese motor vehicle parts that may be entered
        into the United States shall not exceed the amount of such
        motor vehicles and motor vehicle parts entered during the most
        recent preceding calendar year for which an import restriction
        implementation period was in effect, reduced by 20 percent.
            (4) Administration.--In order to prevent import surging or
        to otherwise ensure the efficient administration of this Act,
        the Secretary may impose temporary quantitative import
        restrictions on Japanese motor vehicles and Japanese motor
        vehicle parts entered during the first 3 months of a calendar
        year in an import restriction implementation period.

SEC. 203. REPORTS.

    Within 30 days after a computation is made under section 201 or 202
with respect to a calendar year, the Secretary shall submit to the
Congress a report setting forth the bases of the computation.

SEC. 204. SENSE OF CONGRESS REGARDING ACHIEVEMENT OF MERCHANDISE TRADE
              DEFICIT REDUCTION TARGETS.

    It is the sense of the Congress that representatives of the United
States and Japanese Governments should undertake continuing discussions
regarding the means and measures, to be selected by the Japanese
Government, to achieve the merchandise trade deficit reduction targets
required under section 201(a). During the discussions, the Trade
Representative should particularly address market access priorities for
United States exports to Japan.

Summary: TABLE OF CONTENTS: Title I: Findings and Definitions Title II: Merchandise Trade Deficit Reduction United States-Japan Trade Equalizing Act of 1993 - Title I: Findings and Definitions - Sets forth congressional findings and purposes with respect to access to Japanese markets by US manufacturers of motor vehicles and motor vehicle parts. Title II: Merchandise Trade Deficit Reduction - Sets forth annual merchandise trade deficit reduction targets with respect to Japan's trade deficit with the United States. Requires the Secretary of Commerce to: (1) compute annually whether the target has been met for each year. (2) publish in the Federal Register that the import restriction implementation period is in effect for the year following the year a target has not been met. And (3) compute annually and publish in the Federal Register the quantitative import restrictions for years in which import restrictions are effective. Prohibits the quantity of Japanese motor vehicles and parts that may be entered into the United States in: (1) the first year in which a restriction is in effect from exceeding the quantity of such vehicles and parts entered during 1993, reduced by 20 percent. And (2) subsequent years from exceeding the quantity entered during the most recent year for which a restriction was in effect, reduced by 20 percent. Authorizes the Secretary to impose temporary quantitative import restrictions on such motor vehicles and parts during the first three months of an import restriction implementation period in order to prevent surging. Expresses the sense of the Congress that representatives of the US and Japanese Governments should undertake continuing discussions regarding the measures to be selected by the Japanese Government to achieve the merchandise trade deficit reduction targets.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Executive Appointee Ethics
Improvement Act''.

SEC. 2. AMENDMENTS TO SECTION 207 OF TITLE 18.

    (a) Extension of Post-Employment Ban on Lobbying for Certain Former
Government Employees.--Section 207 of title 18, United States Code, is
amended--
            (1) in subsection (c)--
                    (A) in the subsection heading, by striking ``One-
                year'' and inserting ``Two-Year'';
                    (B) in paragraph (1)--
                            (i) by striking ``within 1 year after'' and
                        inserting ``within 2 years after''; and
                            (ii) by striking ``within 1 year before
                        such termination''; and
                    (C) in paragraph (2), by adding at the end the
                following:
            ``(D) Not later than 30 days after a waiver is granted
        under subparagraph (C), the waiver shall be published in the
        Federal Register and accompanied by a signed statement by the
        Director of the Office of Government Ethics describing in
        detail the reasons for providing such waiver unless such a
        description would compromise national security.'';
            (2) in subsection (d)(1), in the matter following
        subparagraph (C), by striking ``within 2 years'' and inserting
        ``within 5 years''; and
            (3) in subsection (d)(2)(A), by striking ``in such
        position'' and all that follows through ``terminated''.
    (b) Lifetime Ban on Representation of Foreign Entities for Certain
High-Level Former Employees.--Section 207(f) of such title is amended--
            (1) in paragraph (1), by inserting ``(or, in the case of an
        individual described in paragraph (2), at any time)'' after
        ``within 1 year'';
            (2) in paragraph (2), by striking ``paragraph (1)'' and
        inserting ``paragraphs (1) and (2)'';
            (3) by redesignating paragraphs (2) and (3) as paragraphs
        (3) and (4); and
            (4) by inserting after paragraph (1) the following new
        paragraph:
            ``(2) Description of individuals subject to lifetime ban.--
        An individual described in this paragraph is any individual who
        was--
                    ``(A) employed in a position described under
                sections 5312 through 5316 of title 5, United States
                Code (relating to the Executive Schedule);
                    ``(B) a limited term appointee, limited emergency
                appointee, or noncareer appointee in the Senior
                Executive Service, as defined under paragraphs (5),
                (6), and (7), respectively, of section 3132(a) of title
                5, United States Code; or
                    ``(C) employed in a position of a confidential or
                policy-determining character under schedule C of
                subpart C of part 213 of title 5 of the Code of Federal
                Regulations.''.

SEC. 3. PROHIBITION ON PARTICIPATION IN MATTER RELATING TO PREVIOUS
              EMPLOYMENT.

    (a) In General.--Chapter 11 of title 18, United States Code, is
amended by inserting after section 219 the following new section:
``Sec. 220. Prohibition on participation in matter relating to previous
              employment
    ``(a) During the 2-year period beginning on the date an individual
is appointed to a covered position at an agency, any such individual
who has not received a waiver under subsection (b)--
            ``(1) who participates in any particular matter involving
        specific parties that is directly and substantially related to
        the individual's former employer or former clients, or
            ``(2) with respect to any such individual who was a
        registered lobbyist under the Lobbying Disclosure Act of 1995,
        or who was not a registered lobbyist under such Act but who
        engaged in lobbying activity as defined in subsection (c),
        during the 2-year period preceding the date of such
        appointment, who--
                    ``(A) participates in any particular matter on
                which the individual made a lobbying contact (in the
                case of a registered lobbyist under such Act), or
                engaged in such activity, during such 2-year period,
                    ``(B) participates in the specific issue area in
                which such particular matter falls, or
                    ``(C) seeks or accepts employment with any agency
                with respect to which the individual made a lobbying
                contact (in the case of a registered lobbyist under
                such Act), or engaged in such activity, during such 2-
                year period,
shall be punished as provided in section 216 of this title.
    ``(b)(1) The Director of the Office of Management and Budget, in
consultation with the Counsel to the President, may waive the
requirements of subsection (a) with respect to any individual covered
by such subsection if the Director certifies, in writing, to the
Committee on Oversight and Government Reform of the House of
Representatives, the Committee on Homeland Security and Governmental
Affairs of the Senate, and the appropriate congressional committees of
jurisdiction, that it is in the public interest to grant the waiver.
    ``(2) For purposes of carrying out paragraph (1)--
            ``(A) the public interest includes exigent circumstances
        relating to public health, public safety, or national security;
            ``(B) de minimis contact with an agency shall be cause for
        a waiver of subsection (a)(2); and
            ``(C) any waiver shall take effect when the certification
        is published in the Federal Register, accompanied by a signed
        statement by the Director describing in detail the reasons for
        providing the waiver unless such a description would compromise
        national security.
    ``(c)(1) In this section, the term `lobbying activity' means, with
respect to an individual, knowingly making, with the intent to
influence, any communication to or appearance before any officer or
employee of the Federal Government on behalf of another person as an
employee of a lobbying firm or lobbying organization, in connection
with any matter on which such person seeks official action by such
officer or employee of the Federal Government. The previous sentence
applies only with respect to an individual who spends greater than 20%
of the individual's time as an employee of a lobbying firm or lobbying
organization engaged in such lobbying activity.
    ``(2) In paragraph (1), the term `lobbying firm' means any firm,
corporation, or limited liability company in which--
            ``(A) employees of the firm in the aggregate make 2 or more
        lobbying contacts at any time on behalf of a particular client;
        and
            ``(B) the firm receives or expects to receive from a
        particular client for matters related to lobbying activities at
        least the amount specified in section 4(a)(3)(A) of the
        Lobbying Disclosure Act of 1995 (2 U.S.C. 1603(a)(3)(A)) in the
        quarterly period during which registration would be made under
        such Act.
    ``(3) In paragraph (1), the term `lobbying organization' includes
any organization in which--
            ``(A) employees of the firm in the aggregate make 2 or more
        lobbying contacts at any time on its behalf; and
            ``(B) the organization expends in connection with lobbying
        activities at least the amount specified in section 4(a)(3)(B)
        of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1603(a)(3)(A))
        in the quarterly period during which registration would be made
        under such Act.
    ``(4) In this subsection, the term `employee' has the meaning given
such term in section 3(5) of the Lobbying Disclosure Act of 1995 (2
U.S.C. 1602(5)).
    ``(d) In this section, the following definitions apply:
            ``(1) The term `agency' means an `Executive agency' (as
        that term is defined in section 105 of title 5), the Executive
        Office of the President, the United States Postal Service, and
        the Postal Regulatory Commission, but does not include the
        Government Accountability Office.
            ``(2) The term `covered position'--
                    ``(A) means any--
                            ``(i) full-time, non-career position which
                        requires appointment by the President or Vice-
                        President;
                            ``(ii) non-career position within the
                        Senior Executive Service or other SES-type
                        system; or
                            ``(iii) position that has been excepted
                        from the competitive service by reason of being
                        of a confidential or policymaking character,
                        including positions under schedule C of subpart
                        C of part 213 of title 5 of the Code of Federal
                        Regulations; and
                    ``(B) does not include any individual appointed as
                a member of the Senior Foreign Service or solely as a
                uniformed service commissioned officer.
            ``(3) The term `directly and substantially related to
        former employer or former clients' means matters in which the
        individual's former employer or a former client is a party or
        represents a party.
            ``(4) The term `former client' means any person for whom
        the individual served personally as agent, attorney, or
        consultant, but does include instances where the service
        provided was limited to a speech or similar appearance or
        clients of the individual's former employer to whom the
        individual did not personally provide services.
            ``(5) The term `former employer' means any person for whom
        the individual has within the 2 years prior to the date of
        appointment served as an employee, officer, director, trustee,
        or general partner, but does not include any agency or other
        entity of the Federal Government, Native American tribe, or any
        United States territory or possession.
            ``(6) The term `lobbying contact' has the meaning given
        such term in section 3(8) of the Lobbying Disclosure Act of
        1995 (2 U.S.C. 1602(8)).
            ``(7) The term `particular matter' has the meaning given
        that term in section 207 and section 2635.402(b)(3) of title 5,
        Code of Federal Regulations, or any successor regulation.
            ``(8) The term `participate' means to participate
        personally and substantially.
            ``(9) The term `particular matter involving specific
        parties' has the meaning as set forth in section 2641.201(h) of
        title 5, Code of Federal Regulations, or any successor
        regulation, except that it shall also include any meeting or
        other communication relating to the performance of an
        individual's official duties with a former employer or former
        client, unless the communication applies to a particular matter
        of general applicability and participation in the meeting or
        other event is open to all interested parties.''.
    (b) Clerical Amendment.--The table of sections of chapter 11 of
title 18, United States Code, is amended by inserting after the item
relating to section 219 the following new item:

``220. Prohibition on participation in matter relating to previous
                            employment.''.
    (c) Application.--The amendments made after subsection (a) shall
apply to any individual appointed to a covered position (as that term
is defined in section 220(d)(2) of title 18, United States Code, as
added by such subsection) after the date of enactment of this Act.

Summary: Executive Appointee Ethics Improvement Act This bill lengthens from one to two years the ban on certain senior personnel of the executive branch and independent agencies from lobbying the department or agency in which the person served. If the Director of the Office of Government Ethics decides to waive this restriction, such decision shall be published in the Federal Register unless it would compromise national security. The bill lengthens from two to five years the ban on certain very senior personnel of the executive branch and independent agencies, including the Vice President, from lobbying any office or employee of any department or agency in which such person served. Certain high-level employees of the executive branch are subject to a lifetime ban on knowingly representing a foreign entity before any officer or employee of any department or agency of the United States with the intent to influence a decision of such officer or employee. During a two-year period beginning on the date an individual is appointed to a covered position, such individual is banned from participating in any matter involving specific parties that is directly related to the individual's former employer or former clients. Additionally, any individual who was a registered lobbyist or who engaged in lobbying activities during a two-year period prior to appointment is prohibited from participating in any particular matter on which the individual made a lobbying contact or participating in the specific issue area in which the matter falls. The Office of Management and Budget (OMB) may waive these requirements if OMB certifies in writing to various congressional committees that it is in the public interest to grant the waiver.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Resource Efficient Appliance
Incentives Act of 2005.''.

SEC. 2. CREDIT FOR ENERGY EFFICIENT APPLIANCES.

    (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. 45J. ENERGY EFFICIENT APPLIANCE CREDIT.

    ``(a) General Rule.--
            ``(1) In general.--For purposes of section 38, the energy
        efficient appliance credit determined under this section for
        any taxable year is an amount equal to the sum of the credit
        amounts determined under paragraph (2) for each type of
        qualified energy efficient appliance produced by the taxpayer
        during the calendar year ending with or within the taxable
        year.
            ``(2) Credit amounts.--The credit amount determined for any
        type of qualified energy efficient appliance is--
                    ``(A) the applicable amount determined under
                subsection (b) with respect to such type, multiplied by
                    ``(B) the eligible production for such type.
    ``(b) Applicable Amount.--
            ``(1) In general.--For purposes of subsection (a)--
                    ``(A) Dishwashers.--The applicable amount is the
                energy savings amount in the case of a dishwasher
                which--
                            ``(i) is manufactured in calendar year 2006
                        or 2007, and
                            ``(ii) meets the requirements of the Energy
                        Star program which are in effect for
                        dishwashers in 2007.
                    ``(B) Clothes washers.--The applicable amount is--
                            ``(i) $50, in the case of a clothes washer
                        which--
                                    ``(I) is manufactured in calendar
                                year 2005, and
                                    ``(II) has an MEF of at least 1.42,
                            ``(ii) $100, in the case of a clothes
                        washer which--
                                    ``(I) is manufactured in calendar
                                year 2005, 2006, or 2007, and
                                    ``(II) meets the requirements of
                                the Energy Star program which are in
                                effect for clothes washers in 2007, and
                            ``(iii) the energy and water savings
                        amount, in the case of a clothes washer which--
                                    ``(I) is manufactured in calendar
                                year 2008, 2009, or 2010, and
                                    ``(II) meets the requirements of
                                the Energy Star program which are in
                                effect for clothes washers in 2010.
                    ``(C) Refrigerators.--
                            ``(i) 15 percent savings.--The applicable
                        amount is $75 in the case of a refrigerator
                        which--
                                    ``(I) is manufactured in calendar
                                year 2005 or 2006, and
                                    ``(II) consumes at least 15 percent
                                less kilowatt hours per year than the
                                2001 energy conservation standard.
                            ``(ii) 20 percent savings.--In the case of
                        a refrigerator which consumes at least 20
                        percent less kilowatt hours per year than the
                        2001 energy conservation standards, the
                        applicable amount is--
                                    ``(I) $125 for a refrigerator which
                                is manufactured in calendar year 2005,
                                2006, or 2007, and
                                    ``(II) $100 for a refrigerator
                                which is manufactured in calendar year
                                2008.
                            ``(iii) 25 percent savings.--In the case of
                        a refrigerator which consumes at least 25
                        percent less kilowatt hours per year than the
                        2001 energy conservation standards, the
                        applicable amount is--
                                    ``(I) $175 for a refrigerator which
                                is manufactured in calendar year 2005,
                                2006, or 2007, and
                                    ``(II) $150 for a refrigerator
                                which is manufactured in calendar year
                                2008, 2009, or 2010.
            ``(2) Energy savings amount.--For purposes of paragraph
        (1)(A)--
                    ``(A) In general.--The energy savings amount is the
                lesser of--
                            ``(i) the product of--
                                    ``(I) $3, and
                                    ``(II) 100 multiplied by the energy
                                savings percentage, or
                            ``(ii) $100.
                    ``(B) Energy savings percentage.--For purposes of
                subparagraph (A), the energy savings percentage is the
                ratio of--
                            ``(i) the EF required by the Energy Star
                        program for dishwashers in 2007 minus the EF
                        required by the Energy Star program for
                        dishwashers in 2005, to
                            ``(ii) the EF required by the Energy Star
                        program for dishwashers in 2007.
            ``(3) Energy and water savings amount.--For purposes of
        paragraph (1)(B)(iii)--
                    ``(A) In general.--The energy and water savings
                amount is the lesser of--
                            ``(i) the product of--
                                    ``(I) $10, and
                                    ``(II) 100 multiplied by the energy
                                and water savings percentage, or
                            ``(ii) $200.
                    ``(B) Energy and water savings percentage.--For
                purposes of subparagraph (A), the energy and water
                savings percentage is the average of the MEF savings
                percentage and the WF savings percentage.
                    ``(C) MEF savings percentage.--For purposes of this
                subparagraph, the MEF savings percentage is the ratio
                of--
                            ``(i) the MEF required by the Energy Star
                        program for clothes washers in 2010 minus the
                        MEF required by the Energy Star program for
                        clothes washers in 2007, to
                            ``(ii) the MEF required by the Energy Star
                        program for clothes washers in 2010.
                    ``(D) WF savings percentage.--For purposes of this
                subparagraph, the WF savings percentage is the ratio
                of--
                            ``(i) the WF required by the Energy Star
                        program for clothes washers in 2010 minus the
                        WF required by the Energy Star program for
                        clothes washers in 2007, to
                            ``(ii) the WF required by the Energy Star
                        program for clothes washers in 2010.
    ``(c) Eligible Production.--
            ``(1) In general.--Except as provided in paragraphs (2) and
        (3), the eligible production in a calendar year with respect to
        each type of energy efficient appliance is the excess of--
                    ``(A) the number of appliances of such type which
                are produced by the taxpayer in the United States
                during such calendar year, over
                    ``(B) the average number of appliances of such type
                which were produced by the taxpayer (or any
                predecessor) in the United States during the preceding
                3-calendar year period.
            ``(2) Special rule for refrigerators.--The eligible
        production in a calendar year with respect to each type of
        refrigerator described in subsection (b)(1)(C) is the excess
        of--
                    ``(A) the number of appliances of such type which
                are produced by the taxpayer in the United States
                during such calendar year, over
                    ``(B) 110 percent of the average number of
                appliances of such type which were produced by the
                taxpayer (or any predecessor) in the United States
                during the preceding 3-calendar year period.
            ``(3) Special rule for 2005 production.--For purposes of
        determining eligible production for calendar year 2005--
                    ``(A) only production after the date of enactment
                of this section shall be taken into account under
                paragraphs (1)(A) and (2)(A), and
                    ``(B) the amount taken into account under
                paragraphs (1)(B) and (2)(B) shall be an amount which
                bears the same ratio to the amount which would (but for
                this paragraph) be taken into account under such
                paragraph as--
                            ``(i) the number of days in calendar year
                        2005 after the date of enactment of this
                        section, bears to
                            ``(ii) 365.
    ``(d) Types of Energy Efficient Appliance.--For purposes of this
section, the types of energy efficient appliances are--
            ``(1) dishwashers described in subsection (b)(1)(A),
            ``(2) clothes washers described in subsection (b)(1)(B)(i),
            ``(3) clothes washers described in subsection
        (b)(1)(B)(ii),
            ``(4) clothes washers described in subsection
        (b)(1)(B)(iii),
            ``(5) refrigerators described in subsection (b)(1)(C)(i),
            ``(6) refrigerators described in subsection
        (b)(1)(C)(ii)(I),
            ``(7) refrigerators described in subsection
        (b)(1)(C)(ii)(II),
            ``(8) refrigerators described in subsection
        (b)(1)(C)(iii)(I), and
            ``(9) refrigerators described in subsection
        (b)(1)(C)(iii)(II).
    ``(e) Limitations.--
            ``(1) Aggregate credit amount allowed.--The aggregate
        amount of credit allowed under subsection (a) with respect to a
        taxpayer for any taxable year shall not exceed $75,000,000
        reduced by the amount of the credit allowed under subsection
        (a) to the taxpayer (or any predecessor) for all prior taxable
        years.
            ``(2) Amount allowed for certain appliances.--
                    ``(A) In general.--In the case of appliances
                described in subparagraph (C), the aggregate amount of
                the credit allowed under subsection (a) with respect to
                a taxpayer for any taxable year shall not exceed
                $20,000,000 reduced by the amount of the credit allowed
                under subsection (a) to the taxpayer (or any
                predecessor) for all prior taxable years with respect
                to such appliances.
                    ``(B) Election to increase allowable credit.--In
                the case of any taxpayer who makes an election under
                this subparagraph--
                            ``(i) subparagraph (A) shall be applied by
                        substituting `$25,000,000' for `$20,000,000',
                        and
                            ``(ii) the aggregate amount of the credit
                        allowed under subsection (a) with respect to
                        such taxpayer for any taxable year for
                        appliances described in subparagraph (C) and
                        the additional appliances described in
                        subparagraph (D) shall not exceed $50,000,000
                        reduced by the amount of the credit allowed
                        under subsection (a) to the taxpayer (or any
                        predecessor) for all prior taxable years with
                        respect to such appliances.
                    ``(C) Appliances described.--The appliances
                described in this subparagraph are--
                            ``(i) clothes washers described in
                        subsection (b)(1)(B)(i), and
                            ``(ii) refrigerators described in
                        subsection (b)(1)(C)(i).
                    ``(D) Additional appliances.--The additional
                appliances described in this subparagraph are--
                            ``(i) refrigerators described in subsection
                        (b)(1)(C)(ii)(I), and
                            ``(ii) refrigerators described in
                        subsection (b)(1)(C)(ii)(II).
            ``(3) Limitation based on gross receipts.--The credit
        allowed under subsection (a) with respect to a taxpayer for the
        taxable year shall not exceed an amount equal to 2 percent of
        the average annual gross receipts of the taxpayer for the 3
        taxable years preceding the taxable year in which the credit is
        determined.
            ``(4) Gross receipts.--For purposes of this subsection, the
        rules of paragraphs (2) and (3) of section 448(c) shall apply.
    ``(f) Definitions.--For purposes of this section--
            ``(1) Qualified energy efficient appliance.--The term
        `qualified energy efficient appliance' means--
                    ``(A) any dishwasher described in subsection
                (b)(1)(A),
                    ``(B) any clothes washer described in subsection
                (b)(1)(B), and
                    ``(C) any refrigerator described in subsection
                (b)(1)(C).
            ``(2) Dishwasher.--The term `dishwasher' means a
        residential dishwasher subject to the energy conservation
        standards established by the Department of Energy.
            ``(3) Clothes washer.--The term `clothes washer' means a
        residential model clothes washer, including a residential style
        coin operated washer.
            ``(4) Refrigerator.--The term `refrigerator' means a
        residential model automatic defrost refrigerator-freezer which
        has an internal volume of at least 16.5 cubic feet.
            ``(5) MEF.--The term `MEF' means the modified energy factor
        established by the Department of Energy for compliance with the
        Federal energy conservation standards.
            ``(6) EF.--The term `EF' means the energy factor
        established by the Department of Energy for compliance with the
        Federal energy conservation standards.
            ``(7) WF.--The term `WF' means Water Factor (as determined
        by the Secretary of Energy).
            ``(8) Produced.--The term `produced' includes manufactured.
            ``(9) 2001 energy conservation standard.--The term `2001
        energy conservation standard' means the energy conservation
        standards promulgated by the Department of Energy and effective
        July 1, 2001.
    ``(g) Special Rules.--For purposes of this section--
            ``(1) In general.--Rules similar to the rules of
        subsections (c), (d), and (e) of section 52 shall apply.
            ``(2) Controlled group.--
                    ``(A) In general.--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 a single producer.
                    ``(B) Inclusion of foreign corporations.--For
                purposes of subparagraph (A), in applying subsections
                (a) and (b) of section 52 to this section, section 1563
                shall be applied without regard to subsection (b)(2)(C)
                thereof.
            ``(3) Verification.--No amount shall be allowed as a credit
        under subsection (a) with respect to which the taxpayer has not
        submitted such information or certification as the Secretary,
        in consultation with the Secretary of Energy, determines
        necessary.''.
    (b) Conforming Amendment.--Section 38(b) of the Internal Revenue
Code of 1986 (relating to general business credit) is amended by
striking ``plus'' at the end of paragraph (18), by striking the period
at the end of paragraph (19) and inserting ``, plus'', and by adding at
the end the following new paragraph:
            ``(20) the energy efficient appliance credit determined
        under section 45J(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 adding at the end the following new item:

        ``Sec. 45J. Energy efficient appliance credit''.
    (d) Effective Date.--The amendments made by this section shall
apply to appliances produced after the date of the enactment of this
Act, in taxable years ending after such date.

Summary: Resource Efficient Appliance Incentives Act of 2005 - Amends the Internal Revenue Code to allow a business tax credit for the production of certain water and energy efficient appliances . Bases the amount of such credit on specified energy and water efficiency ratings.

A bill to amend the Internal Revenue Code of 1986 to allow for an energy efficient appliance credit.


SECTION 1. PAYMENT OF BENEFITS FOR MONTH OF RECIPIENT'S DEATH.

    (a) Old-Age Insurance Benefits.--Section 202(a) of the Social
Security Act (42 U.S.C. 402(a)) is amended by striking ``the month
preceding'' in the matter following subparagraph (B).
    (b) Wife's Insurance Benefits.--
            (1) In general.--Section 202(b)(1) of such Act (42 U.S.C.
        402(b)(1)) is amended--
                    (A) by striking ``and ending with the month'' in
                the matter immediately following clause (ii) and
                inserting ``and ending with the month in which she dies
                or (if earlier) with the month'';
                    (B) by striking subparagraph (E); and
                    (C) by redesignating subparagraphs (F) through (K)
                as subparagraphs (E) through (J), respectively.
            (2) Conforming amendment.--Section 202(b)(5)(B) of such Act
        (42 U.S.C. 402(b)(5)(B)) is amended by striking ``(E), (F),
        (H), or (J)'' and inserting ``(E), (G), or (I)''.
    (c) Husband's Insurance Benefits.--
            (1) In general.--Section 202(c)(1) of such Act (42 U.S.C.
        402(c)(1)) is amended--
                    (A) by striking ``and ending with the month'' in
                the matter immediately following clause (ii) and
                inserting ``and ending with the month in which he dies
                or (if earlier) with the month'';
                    (B) by striking subparagraph (E); and
                    (C) by redesignating subparagraphs (F) through (K)
                as subparagraphs (E) through (J), respectively.
            (2) Conforming amendment.--Section 202(c)(5)(B) of such Act
        (42 U.S.C. 402(c)(5)(B)) is amended by striking ``(E), (F),
        (H), or (J)'' and inserting ``(E), (G), or (I)''.
    (d) Child's Insurance Benefits.--Section 202(d)(1) of such Act (42
U.S.C. 402(d)(1)) is amended--
            (1) by striking ``and ending with the month'' in the matter
        immediately preceding subparagraph (D) and inserting ``and
        ending with the month in which such child dies or (if earlier)
        with the month''; and
            (2) by striking ``dies, or'' in subparagraph (D).
    (e) Widow's Insurance Benefits.--Section 202(e)(1) of such Act (42
U.S.C. 402(e)(1)) is amended by striking ``ending with the month
preceding the first month in which any of the following occurs: she
remarries, dies,'' in the matter following subparagraph (F) and
inserting ``ending with the month in which she dies or (if earlier)
with the month preceding the first month in which any of the following
occurs: she remarries, or''.
    (f) Widower's Insurance Benefits.--Section 202(f)(1) of such Act
(42 U.S.C. 402(f)(1)) is amended by striking ``ending with the month
preceding the first month in which any of the following occurs: he
remarries, dies,'' in the matter following subparagraph (F) and
inserting ``ending with the month in which he dies or (if earlier) with
the month preceding the first month in which any of the following
occurs: he remarries,''.
    (g) Mother's and Father's Insurance Benefits.--Section 202(g)(1) of
such Act (42 U.S.C. 402(g)(1)) is amended--
            (1) by inserting ``with the month in which he or she dies
        or (if earlier)'' after ``and ending'' in the matter following
        subparagraph (F); and
            (2) by striking ``he or she remarries, or he or she dies''
        and inserting ``or he or she remarries''.
    (h) Parent's Insurance Benefits.--Section 202(h)(1) of such Act (42
U.S.C. 402(h)(1)) is amended by striking ``ending with the month
preceding the first month in which any of the following occurs: such
parent dies, marries,'' in the matter following subparagraph (E) and
inserting ``ending with the month in which such parent dies or (if
earlier) with the month preceding the first month in which any of the
following occurs: such parent marries,''.
    (i) Disability Insurance Benefits.--Section 223(a)(1) of such Act
(42 U.S.C. 423(a)(1)) is amended by striking ``ending with the month
preceding whichever of the following months is the earliest: the month
in which he dies,'' in the matter following subparagraph (D) and
inserting the following: ``ending with the month in which he dies or
(if earlier) with whichever of the following months is the earliest:''.
    (j) Benefits at Age 72 for Certain Uninsured Individuals.--Section
228(a) of such Act (42 U.S.C. 428(a)) is amended by striking ``the
month preceding'' in the matter following paragraph (4).

SEC. 2. COMPUTATION AND PAYMENT OF LAST MONTHLY PAYMENT.

    (a) Old-Age and Survivors Insurance Benefits.--Section 202 of the
Social Security Act (42 U.S.C. 402) is amended by adding at the end the
following new subsection:

    ``Last Payment of Monthly Insurance Benefit Terminated by Death

    ``(y) The amount of any individual's monthly insurance benefit
under this section paid for the month in which the individual dies
shall be an amount equal to--
            ``(1) the amount of such benefit (as determined without
        regard to this subsection), multiplied by
            ``(2) a fraction--
                    ``(A) the numerator of which is the number of days
                in such month preceding the date of such individual's
                death, and
                    ``(B) the denominator of which is the number of
                days in such month,
rounded, if not a multiple of $1, to the next lower multiple of $1.
This subsection shall apply with respect to such benefit after all
other adjustments with respect to such benefit provided by this title
have been made. Payment of such benefit for such month shall be made as
provided in section 204(d).''.
    (b) Disability Insurance Benefits.--Section 223 of such Act (42
U.S.C. 423) is amended by adding at the end the following new
subsection:

             ``Last Payment of Benefit Terminated by Death

    ``(j) The amount of any individual's monthly benefit under this
section paid for the month in which the individual dies shall be an
amount equal to--
            ``(1) the amount of such benefit (as determined without
        regard to this subsection), multiplied by
            ``(2) a fraction--
                    ``(A) the numerator of which is the number of days
                in such month preceding the date of such individual's
                death, and
                    ``(B) the denominator of which is the number of
                days in such month,
rounded, if not a multiple of $1, to the next lower multiple of $1.
This subsection shall apply with respect to such benefit after all
other adjustments with respect to such benefit provided by this title
have been made. Payment of such benefit for such month shall be made as
provided in section 204(d).''.
    (c) Benefits at Age 72 for Certain Uninsured Individuals.--Section
228 of such Act (42 U.S.C. 428) is amended by adding at the end the
following new subsection:

             ``Last Payment of Benefit Terminated by Death

    ``(i) The amount of any individual's monthly benefit under this
section paid for the month in which the individual dies shall be an
amount equal to--
            ``(1) the amount of such benefit (as determined without
        regard to this subsection), multiplied by
            ``(2) a fraction--
                    ``(A) the numerator of which is the number of days
                in such month preceding the date of such individual's
                death, and
                    ``(B) the denominator of which is the number of
                days in such month,
rounded, if not a multiple of $1, to the next lower multiple of $1.
This subsection shall apply with respect to such benefit after all
other adjustments with respect to such benefit provided by this title
have been made. Payment of such benefit for such month shall be made as
provided in section 204(d).''.

SEC. 3. EFFECTIVE DATE.

    The amendments made by this Act shall apply with respect to deaths
occurring on or after the date of the enactment of this Act.

Summary: Amends title II of the Social Security Act to provide that a beneficiary shall be entitled to a prorated benefit for the month in which he or she dies.

To amend title II of the Social Security Act to provide that a monthly insurance benefit thereunder shall be paid for the month in which the recipient dies and that such benefit shall be payable for such month only to the extent proportionate to the number of days in such month preceding the date of the recipient's death.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Private Mortgage Insurance Technical
Corrections and Clarification Act''.

SEC. 2. CHANGES IN AMORTIZATION SCHEDULE.

    (a) Treatment of Adjustable Rate Mortgages.--The Homeowners
Protection Act of 1998 (12 U.S.C. 4901 et seq.) is amended--
            (1) in section 2--
                    (A) in paragraph (2)(B)(i), by striking
                ``amortization schedules'' and inserting ``the
                amortization schedule then in effect'';
                    (B) in paragraph (16)(B), by striking
                ``amortization schedules'' and inserting ``the
                amortization schedule then in effect'';
                    (C) by redesignating paragraphs (6) through (16)
                (as amended by the preceding provisions of this
                paragraph) as paragraphs (8) through (18),
                respectively; and
                    (D) by inserting after paragraph (5) the following
                new paragraph:
            ``(6) Amortization schedule then in effect.--The term
        `amortization schedule then in effect' means, with respect to
        an adjustable rate mortgage, a schedule established at the time
        at which the residential mortgage transaction is consummated
        or, if such schedule has been changed or recalculated, is the
        most recent schedule under the terms of the note or mortgage,
        which shows--
                    ``(A) the amount of principal and interest that is
                due at regular intervals to retire the principal
                balance and accrued interest over the remaining
                amortization period of the loan; and
                    ``(B) the unpaid balance of the loan after each
                such scheduled payment is made.''; and
            (2) in section 3(f)(1)(B)(ii), by striking ``amortization
        schedules'' and inserting ``the amortization schedule then in
        effect''.
    (b) Treatment of Balloon Mortgages.--Paragraph (1) of section 2 of
the Homeowners Protection Act of 1998 (12 U.S.C. 4901(1)) is amended by
adding at the end the following new sentence: ``A residential mortgage
that (A) does not fully amortize over the term of the obligation, and
(B) contains a conditional right to refinance or modify the unamortized
principal at the maturity date of the term, shall be considered to be
an adjustable rate mortgage for purposes of this Act.''.
    (c) Treatment of Loan Modifications.--
            (1) In general.--Section 3 of the Homeowners Protection Act
        of 1998 (12 U.S.C. 4902) is amended--
                    (A) by redesignating subsections (d) through (f) as
                subsections (e) through (g), respectively; and
                    (B) by inserting after subsection (c) the following
                new subsection:
    ``(d) Treatment of Loan Modifications.--If a mortgagor and
mortgagee (or holder of the mortgage) agree to a modification of the
terms or conditions of a loan pursuant to a residential mortgage
transaction, the cancellation date, termination date, or final
termination shall be recalculated to reflect the modified terms and
conditions of such loan.''.
            (2) Conforming amendments.--Section 4(a) of the Homeowners
        Protection Act of 1998 (12 U.S.C. 4903(a)) is amended--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph
                        (A), by striking ``section 3(f)(1)'' and
                        inserting ``section 3(g)(1)'';
                            (ii) in subparagraph (A)(ii)(IV), by
                        striking ``section 3(f)'' and inserting
                        ``section 3(g)''; and
                            (iii) in subparagraph (B)(iii), by striking
                        ``section 3(f)'' and inserting ``section
                        3(g)''; and
                    (B) in paragraph (2), by striking ``section
                3(f)(1)'' and inserting ``section 3(g)(1)''.

SEC. 3. DELETION OF AMBIGUOUS REFERENCES TO RESIDENTIAL MORTGAGES.

    (a) Termination of Private Mortgage Insurance.--Section 3 of the
Homeowners Protection Act of 1998 (12 U.S.C. 4902) is amended--
            (1) in subsection (c), by inserting ``on residential
        mortgage transactions'' after ``imposed''; and
            (2) in subsection (g) (as so redesignated by section
        2(c)(1)(A) of this Act)--
                    (A) in paragraph (1), in the matter preceding
                subparagraph (A), by striking ``mortgage or'';
                    (B) in paragraph (2), by striking ``mortgage or'';
                and
                    (C) in paragraph (3), by striking ``mortgage or''
                and inserting ``residential mortgage or residential''.
    (b) Disclosure Requirements.--Section 4 of the Homeowners
Protection Act of 1998 (12 U.S.C. 4903(a)) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``mortgage or'' the first
                        place it appears; and
                            (ii) by striking ``mortgage or'' the second
                        place it appears and inserting ``residential'';
                        and
                    (B) in paragraph (2), by striking ``mortgage or''
                and inserting ``residential'';
            (2) in subsection (c), by striking ``paragraphs (1)(B) and
        (3) of subsection (a)'' and inserting ``subsection (a)(3)'';
        and
            (3) in subsection (d), by inserting before the period at
        the end the following: ``, which disclosures shall relate to
        the mortgagor's rights under this Act''.
    (c) Disclosure Requirements for Lender-Paid Mortgage Insurance.--
Section 6 of the Homeowners Protection Act of 1998 (12 U.S.C. 4905) is
amended--
            (1) in subsection (c)--
                    (A) in the matter preceding paragraph (1), by
                striking ``a residential mortgage or''; and
                    (B) in paragraph (2), by inserting ``transaction''
                after ``residential mortgage''; and
            (2) in subsection (d), by inserting ``transaction'' after
        ``residential mortgage''.

SEC. 4. CANCELLATION RIGHTS AFTER CANCELLATION DATE.

    Section 3 of the Homeowners Protection Act of 1998 (12 U.S.C. 4902)
is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by
                inserting after ``cancellation date'' the following:
                ``or any later date that the mortgagor fulfills all of
                the requirements under paragraphs (1) through (4)'';
                    (B) in paragraph (2), by striking ``and'' at the
                end;
                    (C) by redesignating paragraph (3) as paragraph
                (4); and
                    (D) by inserting after paragraph (2) the following
                new paragraph:
            ``(3) is current on the payments required by the terms of
        the residential mortgage transaction; and''; and
            (2) in subsection (e)(1)(B) (as so redesignated by section
        2(c)(1)(A) of this Act), by striking ``subsection ``(a)(3)''
        and inserting ``subsection (a)(4)''.

SEC. 5. CLARIFICATION OF CANCELLATION AND TERMINATION ISSUES AND LENDER
              PAID MORTGAGE INSURANCE DISCLOSURE REQUIREMENTS.

    (a) Good Payment History.--Section 2(4) of the Homeowners
Protection Act of 1998 (12 U.S.C. 4901(4)) is amended--
            (1) in subparagraph (A)--
                    (A) by inserting ``the later of (i)'' before ``the
                date''; and
                    (B) by inserting ``, or (ii) the date that the
                mortgagor submits a request for cancellation under
                section 3(a)(1)'' before the semicolon; and
            (2) in subparagraph (B)--
                    (A) by inserting ``the later of (i)'' before ``the
                date''; and
                    (B) by inserting ``, or (ii) the date that the
                mortgagor submits a request for cancellation under
                section 3(a)(1)'' before the period at the end.
    (b) Automatic Termination.--Paragraph (2) of section 3(b) of the
Homeowners Protection Act of 1998 (12 U.S.C. 4902(b)(2)) is amended to
read as follows:
            ``(2) if the mortgagor is not current on the termination
        date, on the first day of the first month beginning after the
        date that the mortgagor becomes current on the payments
        required by the terms of the residential mortgage
        transaction.''.
    (c) Premium Payments.--Section 3 of the Homeowners Protection Act
of 1998 (12 U.S.C. 4902) is amended by adding at the end the following
new subsection:
    ``(h) Accrued Obligation for Premium Payments.--The cancellation or
termination under this section of the private mortgage insurance of a
mortgagor shall not affect the rights of any mortgagee, servicer, or
mortgage insurer to enforce any obligation of such mortgagor for
premium payments accrued prior to the date on which such cancellation
or termination occurred.''.

SEC. 6. DEFINITIONS.

    (a) Refinanced.--Section 6(c)(1)(B)(ii) of the Homeowners
Protection Act of 1998 (12 U.S.C. 4905(c)(1)(B)(ii)) is amended by
inserting after ``refinanced'' the following: ``(under the meaning
given such term in the regulations issued by the Board of Governors of
the Federal Reserve System to carry out the Truth in Lending Act (15
U.S.C. 1601 et seq.))''.
    (b) Midpoint of the Amortization Period.--Section 2 of the
Homeowners Protection Act of 1998 (12 U.S.C. 4901) is amended by
inserting after paragraph (6) (as added by section 2(a)(1)(D) of this
Act) the following new paragraph:
            ``(7) Midpoint of the amortization period.--The term
        ``midpoint of the amortization period'' means, with respect to
        a residential mortgage transaction, the point in time that is
        halfway through the period that begins upon the first day of
        the amortization period established at the time a residential
        mortgage transaction is consummated and ends upon the
        completion of the entire period over which the mortgage is
        scheduled to be amortized.''.
    (c) Original Value.--Section 2(12) of the Homeowners Protection Act
of 1998 (12 U.S.C. 4901(10)) (as so redesignated by section 2(a)(1)(C)
of this Act) is amended--
            (1) by inserting ``transaction'' after ``a residential
        mortgage''; and
            (2) by adding at the end the following new sentence: ``In
        the case of a residential mortgage transaction for refinancing
        the principal residence of the mortgagor, such term means only
        the appraised value relied upon by the mortgagee to approve the
        refinance transaction.''.
    (d) Principal Residence.--Section 2 of the Homeowners Protection
Act of 1998 (12 U.S.C. 4901) is amended--
            (1) in paragraph (14) (as so redesignated by section
        2(a)(1)(C) of this Act) by striking ``primary'' and inserting
        ``principal''; and
            (2) in paragraph (15) (as so redesignated by section
        2(a)(1)(C) of this Act) by striking ``primary'' and inserting
        ``principal''.

            Passed the House of Representatives May 23, 2000.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.

Summary: Includes balloon mortgages within the definition of adjustable rate mortgages. States that if a residential mortgage loan is modified the cancellation date, termination date, or final agreement shall be recalculated to reflect such modifications. Extends mortgage insurance cancellation rights beyond the cancellation date for a qualifying borrower who is current on required payments. Revises the automatic termination date with respect to a mortgagor who is not current on payments as of the mortgage termination date. States that the cancellation or termination of private mortgage insurance shall not affect the rights of any mortgagee, servicer, or insurer to enforce any accrued obligation for premium payments. Revises specified definitions.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Climate Service Act of
2009''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Weather, climate change, and climate variability affect
        public safety, environmental services and security, human
        health, agriculture, energy use, water resources, and other
        factors vital to national security and human welfare.
            (2) Climate forecasts create opportunities for society to
        prepare, potentially reducing the costs of climate-related
        events, as well as serving national needs related to enhancing
        economic growth, managing risk, protecting life and property,
        and promoting environmental stewardship.
            (3) Information on predicted climate and climate impacts is
        not being fully disseminated or used well, despite the
        increasing predictability of climate.
            (4) The United States lacks adequate research,
        infrastructure, and coordinated outreach and communication
        mechanisms to meet national climate monitoring, prediction, and
        decision support needs for adapting to and mitigating the
        impacts of climate change and climate variability.
            (5) Increasing societal resilience to climate impacts
        requires understanding climate trends and variations as well as
        possible, understanding the impacts of climate on human and
        nonhuman systems, providing decision-relevant tools based on
        that information, and increasing society's capacity to act on
        that information.

SEC. 3. PURPOSE.

    It is the purpose of this Act to establish a National Climate
Service that will assist the Nation and the world in understanding,
anticipating, and responding to climate, climate change, and climate
variability and their impacts and implications. The Service shall
inform the public through the sustained production and delivery of
authoritative, timely, useful information about impacts on local,
State, regional, tribal, national, and global scales. The Service shall
be user-centric, by ensuring that the information is accessible,
consistent with users' ability to respond, and based on user needs and
limitations. The Service shall provide such usable information through
a sustained network of observations, modeling, and research activities.

SEC. 4. NATIONAL CLIMATE SERVICE.

    (a) Establishment.--
            (1) In general.--The Secretary of Commerce shall establish
        within the Climate Program Office of the National Oceanic and
        Atmospheric Administration a National Climate Service (in this
        Act referred to as the ``Service'') not later than one year
        after the date of enactment of this Act. The Service shall
        include a national center and a network of regional and local
        facilities for operational climate observation, modeling, and
        research.
            (2) General purpose.--The Service shall inform the public
        through the sustained production and delivery of authoritative,
        timely, useful information about impacts on local, State,
        regional, tribal, national, and global scales.
            (3) Specific services.--The Service, at minimum, shall--
                    (A) serve as a clearinghouse and technical access
                point to stakeholders for regionally and nationally
                relevant information on climate, climate impacts, and
                adaptation, developing comprehensive databases of
                information relevant to specific regional and national
                stakeholder needs;
                    (B) provide education on climate impacts,
                vulnerabilities, and application of climate information
                in decisionmaking;
                    (C) design decision-support tools that facilitate
                use of climate information in stakeholders' near-term
                operations and long-term planning
                    (D) facilitate user access to climate and climate
                impacts experts for technical assistance in use of
                climate information and to inform the climate forecast
                community of their information needs;
                    (E) provide researcher, modeler, and observations
                experts access to users to help guide direction of
                research, modeling, and observation activities; and
                    (F) propose and evaluate adaptation strategies for
                climate variability and change.
            (4) Specific functions.--The Service, at minimum, shall--
                    (A) integrate global, national, and regional
                observations to produce information and assessments of
                use to stakeholders and researchers;
                    (B) develop climate models for decision support;
                    (C) perform basic and applied research on climate
                dynamics and impacts relevant to stakeholder interests;
                    (D) create and maintain an operational delivery
                system and facilitate transition of new climate
                applications products to Service member agencies;
                    (E) establish an atmospheric monitoring and
                verification program utilizing aircraft, satellite,
                ground sensors, ocean and coastal observing systems,
                and modeling capabilities to monitor, measure, and
                verify greenhouse gas concentrations and emissions
                throughout the global oceans and atmosphere;
                    (F) develop and maintain a dialog among research
                teams, Federal agencies, and stakeholders for
                developing information relevant for planning and
                decisionmaking;
                    (G) identify climate-related vulnerabilities and
                build national capacity to increase resilience;
                    (H) articulate regional and national climate issues
                and concerns in regional and national policy arenas and
                facilitate regional-national communications on Service
                needs and performance; and
                    (I) outreach to stakeholder groups.
    (b) Action Plan.--Within 1 year after the date of enactment of this
Act, the Secretary of Commerce shall submit to the Committee on
Commerce, Science, and Transportation of the Senate and the Committee
on Science and Technology of the House of Representatives a plan of
action for the National Climate Service. The plan, at a minimum,
shall--
            (1) provide for the interpretation and communication of
        climate data, conditions, predictions, projections, and risks
        on an ongoing basis to decision and policy makers at the local,
        regional, and national levels;
            (2) design, deploy, and operate a national climate
        observing system that closes gaps in existing coverage;
            (3) support infrastructure and ability to archive and
        ensure the quality of climate data, and make federally funded
        model simulations and other relevant climate information
        available from Global Change Research Program activities and
        other sources (and related data from paleoclimate studies);
            (4) include a program for long-term stewardship, quality
        control, development of relevant climate products, and
        efficient access to all relevant climate data, products, and
        model simulations;
            (5) establish a national coordinated modeling strategy,
        including a national climate modeling center to provide a
        dedicated capability for modeling and forecasting scenarios,
        and a regular schedule of projections on long-term and short-
        term time horizons over a range of scales, including regional
        scales;
            (6) improve integrated modeling, assessment, and predictive
        capabilities needed to document and forecast climate changes
        and impacts, and to guide national, regional, and local
        planning and decisionmaking;
            (7) provide a system of regular consultation and
        coordination with Federal agencies, States, tribes,
        nongovernmental organizations, the private sector, and the
        academic community to ensure--
                    (A) that the information requirements of these
                groups are well incorporated; and
                    (B) timely and full sharing, dissemination and use
                of climate information and services in risk
                preparedness, planning, decisionmaking, and early
                warning and natural resources management, both
                domestically and internationally;
            (8) develop standards, evaluation criteria, and performance
        objectives to ensure that the Service meets the evolving
        information needs of the public, policy makers, and
        decisionmakers in the face of a changing climate;
            (9) develop funding estimates to implement the plan; and
            (10) support competitive research programs that will
        improve elements of the Service described in this Act through
        the Climate Program Office within the Service headquarter
        function.
    (c) Director.--The Administrator shall appoint a Director of the
Service, who shall oversee all processes associated with managing the
organization and executing the functions and actions described in this
Act.
    (d) National Climate Service Advisory Council.--The Administrator
shall, in consultation with the Chairmen and ranking minority members
of the Committee on Commerce, Science, and Transportation of the Senate
and the Committee on Science and Technology of the House of
Representatives, and the National Academy of Sciences, appoint the
membership of a National Climate Service Advisory Council, with members
serving 4-year terms, that shall include a diverse membership from
appropriate Federal, State, and local government, universities, and
nongovernment and private sectors who use climate information and cover
a range of sectors, such as water, drought, fisheries, coasts,
agriculture, health, natural resources, transportation, and insurance.
The Council shall advise the Director of the Service of key priorities
in climate-related issues that require the attention of the Service.
The Council shall be responsible for promoting coordination across
regional, national, and international concerns and the assessment of
evolving information needs.

SEC. 5. CONTRACT AND GRANT AUTHORITY.

    Functions vested in any Federal officer or agency by this Act or
under the program established under this Act may be exercised through
the facilities and personnel of the agency involved or, to the extent
provided or approved in advance in appropriation Acts, by other persons
or entities under contracts or grant arrangements entered into by such
officer or agency.

SEC. 6. ANNUAL REPORT.

    The Secretary of Commerce shall prepare and submit to the President
and the Congress, not later than March 31 of each year, a report on the
activities conducted pursuant to this Act during the preceding fiscal
year, including--
            (1) a summary of the achievements of the National Climate
        Service during the previous fiscal year; and
            (2) an analysis of the progress made toward achieving the
        goals and objectives of the Service.

SEC. 7. DEFINITIONS.

            (1) Administrator.--The term ``Administrator'' means the
        Administrator of the National Oceanic and Atmospheric
        Administration.
            (2) Advisory council.--The term ``Advisory Council'' refers
        to the National Climate Service Advisor Council.
            (3) Climate change.--The term ``climate change'' means any
        change in climate over time, whether due to natural variability
        or as a result of human activity.
            (4) Director.--The term ``Director'' means the director of
        the National Oceanic and Atmospheric Administration's National
        Climate Service.
            (5) Secretary.--The term ``Secretary'' means the Secretary
        of Commerce.
            (6) Service.--The term ``Service'' means the National
        Oceanic and Atmospheric Administration's National Climate
        Service.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary to carry
out this Act--
            (1) $300,000,000 for fiscal year 2011.
            (2) $350,000,000 for fiscal year 2012.
            (3) $400,000,000 for fiscal year 2013.
            (4) $450,000,000 for fiscal year 2014.
            (5) $500,000,000 for fiscal year 2015.

Summary: National Climate Service Act of 2009 - Requires the Secretary of Commerce to establish within the Climate Program Office of the National Oceanic and Atmospheric Administration (NOAA) a National Climate Service that includes a national center and a network of regional and local facilities for operational climate observation, modeling, and research. Requires the Service to: (1) inform the public about climate impacts. (2) serve as a clearinghouse and technical access point to stakeholders for information on climate, climate impacts, and adaptation, and relevant comprehensive databases of information. (3) provide education on climate impacts, vulnerabilities, and application of climate information in decisionmaking. (4) design decision-support tools that facilitate use of climate information in stakeholders' near-term operations and long-term planning. (5) facilitate user access to climate experts for technical assistance in the use of climate information and to inform the climate forecast community of their information needs. (6) provide researcher, modeler, and observations experts access to users to help guide direction of their activities. And (7) propose and evaluate adaptation strategies for climate variability and change. Sets forth the Service's functions, including establishing an atmospheric monitoring and verification program utilizing aircraft, satellite, ground sensors, ocean and coastal observing systems, and modeling capabilities to monitor, measure, and verify greenhouse gas concentrations and emissions throughout the oceans and atmosphere. Requires the Secretary to report to specified congressional committees on a plan of action for the Service. Requires the Administrator of NOAA to appoint a Director of the Service. Requires the Director to appoint members of a National Climate Service Advisory Council to promote coordination across regional, national, and international concerns and assess information needs.

To provide for the establishment of a National Climate Service, and for other purposes.