SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Financial Management
Improvement Act of 1996''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds the following:
            (1) Much effort has been devoted to strengthening Federal
        internal accounting controls in the past. Although progress has
        been made in recent years, Federal accounting standards have
        not been uniformly implemented in financial management systems
        for agencies.
            (2) Federal financial management continues to be seriously
        deficient, and Federal financial management and fiscal
        practices have failed to--
                    (A) identify costs fully;
                    (B) reflect the total liabilities of congressional
                actions; and
                    (C) accurately report the financial condition of
                the Federal Government.
            (3) Current Federal accounting practices do not accurately
        report financial results of the Federal Government or the full
        costs of programs and activities. The continued use of these
        practices undermines the Government's ability to provide
        credible and reliable financial data and encourages already
        widespread Government waste, and will not assist in achieving a
        balanced budget.
            (4) Waste and inefficiency in the Federal Government
        undermine the confidence of the American people in the
        Government and reduce the Federal Government's ability to
        address vital public needs adequately.
            (5) To rebuild the accountability and credibility of the
        Federal Government, and restore public confidence in the
        Federal Government, agencies must incorporate accounting
        standards and reporting objectives established for the Federal
        Government into their financial management systems so that all
        the assets and liabilities, revenues, and expenditures or
        expenses, and the full costs of programs and activities of the
        Federal Government can be consistently and accurately recorded,
        monitored, and uniformly reported throughout the Federal
        Government.
            (6) Since its establishment in October 1990, the Federal
        Accounting Standards Advisory Board (hereinafter referred to as
        the ``FASAB'') has made substantial progress toward developing
        and recommending a comprehensive set of accounting concepts and
        standards for the Federal Government. When the accounting
        concepts and standards developed by FASAB are incorporated into
        Federal financial management systems, agencies will be able to
        provide cost and financial information that will assist the
        Congress and financial managers to evaluate the cost and
        performance of Federal programs and activities, and will
        therefore provide important information that has been lacking,
        but is needed for improved decisionmaking by financial managers
        and the Congress.
            (7) The development of financial management systems with
        the capacity to support these standards and concepts will, over
        the long term, improve Federal financial management.
    (b) Purposes.--The purposes of this Act are to--
            (1) provide for consistency of accounting by an agency from
        one fiscal year to the next, and uniform accounting standards
        throughout the Federal Government;
            (2) require Federal financial management systems to support
        full disclosure of Federal financial data, including the full
        costs of Federal programs and activities, to the citizens, the
        Congress, the President, and agency management, so that
        programs and activities can be considered based on their full
        costs and merits;
            (3) increase the accountability and credibility of Federal
        financial management;
            (4) improve performance, productivity and efficiency of
        Federal Government financial management;
            (5) establish financial management systems to support
        controlling the cost of Federal Government;
            (6) build upon and complement the Chief Financial Officers
        Act of 1990 (Public Law 101-576; 104 Stat. 2838), the
        Government Performance and Results Act of 1993 (Public Law 103-
        62; 107 Stat. 285), and the Government Management Reform Act of
        1994 (Public Law 103-356; 108 Stat. 3410); and
            (7) increase the capability of agencies to monitor
        execution of the budget by more readily permitting reports that
        compare spending of resources to results of activities.

SEC. 3. IMPLEMENTATION OF FEDERAL FINANCIAL MANAGEMENT IMPROVEMENTS.

    (a) In General.--Each agency shall implement and maintain financial
management systems that comply with Federal financial management
systems requirements, applicable Federal accounting standards, and the
United States Government Standard General Ledger at the transaction
level.
    (b) Priority.--Each agency shall give priority in funding and
provide sufficient resources to implement this Act.
    (c) Audit Compliance Finding.--
            (1) In general.--Each audit required by section 3521(e) of
        title 31, United States Code, shall report whether the agency
        financial management systems comply with the requirements of
        subsection (a).
            (2) Content of reports.--When the person performing the
        audit required by section 3521(e) of title 31, United States
        Code, reports that the agency financial management systems do
        not comply with the requirements of subsection (a), the person
        performing the audit shall include in the report on the audit--
            (A) the name and position of any officer or employee
        responsible for the financial management systems that have been
        found not to comply with the requirements of subsection (a);
            (B) all facts pertaining to the failure to comply with the
        requirements of subsection (a), including--
                    (i) the nature and extent of the noncompliance;
                    (ii) the primary reason or cause of the
                noncompliance;
                    (iii) any official responsible for the
                noncompliance; and
                    (iv) any relevant comments from any responsible
                officer or employee; and
            (C) a statement with respect to the recommended remedial
        actions and the timeframes to implement such actions.
    (d) Compliance Determination.--
            (1) In general.--No later than the date described under
        paragraph (2), the Director, acting through the Controller of
        the Office of Federal Financial Management, shall determine
        whether the financial management systems of an agency comply
        with the requirements of subsection (a). Such determination
        shall be based on--
                    (A) a review of the report on the applicable
                agency-wide audited financial statement;
                    (B) the agency comments on such report; and
                    (C) any other information the Director considers
                relevant and appropriate.
            (2) Date of determination.--The determination under
        paragraph (1) shall be made no later than 90 days after the
        earlier of--
                    (A) the date of the receipt of an agency-wide
                audited financial statement; or
                    (B) the last day of the fiscal year following the
                year covered by such statement.
    (e) Compliance Implementation.--
            (1) In general.--If the Director determines that the
        financial management systems of an agency do not comply with
        the requirements of subsection (a), the head of the agency, in
        consultation with the Director, shall establish a remediation
        plan that shall include the resources, remedies, and
        intermediate target dates necessary to bring the agency's
        financial management systems into compliance.
            (2) Time period for compliance.--A remediation plan shall
        bring the agency's financial management systems into compliance
        no later than 2 years after the date on which the Director
        makes a determination under paragraph (1), unless the agency,
        with concurrence of the Director--
                    (A) determines that the agency's financial
                management systems are so deficient as to preclude
                compliance with the requirements of subsection (a)
                within 2 years;
                    (B) specifies the most feasible date for bringing
                the agency's financial management systems into
                compliance with the requirements of subsection (a); and
                    (C) designates an official of the agency who shall
                be responsible for bringing the agency's financial
                management systems into compliance with the
                requirements of subsection (a) by the date specified
                under subparagraph (B).
            (3) Transfer of funds for certain improvements.--For an
        agency that has established a remediation plan under paragraph
        (2), the head of the agency, to the extent provided in an
        appropriation and with the concurrence of the Director, may
        transfer not to exceed 2 percent of available agency
        appropriations to be merged with and to be available for the
        same period of time as the appropriation or fund to which
        transferred, for priority financial management system
        improvements. Such authority shall be used only for priority
        financial management system improvements as identified by the
        head of the agency, with the concurrence of the Director, and
        in no case for an item for which Congress has denied funds. The
        head of the agency shall notify Congress 30 days before such a
        transfer is made pursuant to such authority.
            (4) Report if noncompliance within time period.--If an
        agency fails to bring its financial management systems into
        compliance within the time period specified under paragraph
        (2), the Director shall submit a report of such failure to the
        Committees on Governmental Affairs and Appropriations of the
        Senate and the Committees on Government Reform and Oversight
        and Appropriations of the House of Representatives. The report
        shall include--
                    (A) the name and position of any officer or
                employee responsible for the financial management
                systems that have been found not to comply with the
                requirements of subsection (a);
                    (B) the facts pertaining to the failure to comply
                with the requirements of subsection (a), including the
                nature and extent of the noncompliance, the primary
                reason or cause for the failure to comply, and any
                extenuating circumstances;
                    (C) a statement of the remedial actions needed; and
                    (D) a statement of any administrative action to be
                taken with respect to any responsible officer or
                employee.
    (f) Personal Responsibility.--Any financial officer or program
manager who knowingly and willfully commits, permits, or authorizes
material deviation from the requirements of subsection (a) may be
subject to administrative disciplinary action, suspension from duty, or
removal from office.

SEC. 4. APPLICATION TO CONGRESS AND THE JUDICIAL BRANCH.

    (a) In General.--The Federal financial management requirements of
this Act may be adopted by--
            (1) the Senate by resolution as an exercise of the
        rulemaking power of the Senate;
            (2) the House of Representatives by resolution as an
        exercise of the rulemaking power of the House of
        Representatives; or
            (3) the Judicial Conference of the United States by
        regulation for the judicial branch.
    (b) Study and Report.--No later than October 1, 1997--
            (1) the Secretary of the Senate and the Clerk of the House
        of Representatives shall jointly conduct a study and submit a
        report to Congress on how the offices and committees of the
        Senate and the House of Representatives, and all offices and
        agencies of the legislative branch may achieve compliance with
        financial management and accounting standards in a manner
        comparable to the requirements of this Act; and
            (2) the Chief Justice of the United States shall conduct a
        study and submit a report to Congress on how the judiciary may
        achieve compliance with financial management and accounting
        standards in a manner comparable to the requirements of this
        Act.

SEC. 5. REPORTING REQUIREMENTS.

    (a) Reports by Director.--No later than March 31 of each year, the
Director shall submit a report to the Congress regarding implementation
of this Act. The Director may include the report in the financial
management status report and the 5-year financial management plan
submitted under section 3512(a)(1) of title 31, United States Code.
    (b) Reports by the Comptroller General.--No later than October 1,
1997, and October 1, of each year thereafter, the Comptroller General
of the United States shall report to the appropriate committees of the
Congress concerning--
            (1) compliance with the requirements of section 3(a) of
        this Act, including whether the financial statements of the
        Federal Government have been prepared in accordance with
        applicable accounting standards; and
            (2) the adequacy of uniform accounting standards for the
        Federal Government.

SEC. 6. CONFORMING AMENDMENTS.

    (a) Audits by Agencies.--Section 3521(f)(1) of title 31, United
States Code, is amended in the first sentence by inserting ``and the
Controller of the Office of Federal Financial Management'' before the
period.
    (b) Financial Management Status Report.--Section 3512(a)(2) of
title 31, United States Code, is amended by--
            (1) in subparagraph (D) by striking ``and'' after the
        semicolon;
            (2) by redesignating subparagraph (E) as subparagraph (F);
        and
            (3) by inserting after subparagraph (D) the following:
                    ``(E) a listing of agencies whose financial
                management systems do not comply substantially with the
                requirements of the Federal Financial Management
                Improvement Act of 1996, the period of time that such
                agencies have not been in compliance, and a summary
                statement of the efforts underway to remedy the
                noncompliance; and''.

SEC. 7. DEFINITIONS.

    For purposes of this Act:
            (1) Agency.--The term ``agency'' means a department or
        agency of the United States Government as defined in section
        901(b) of title 31, United States Code.
            (2) Director.--The term ``Director'' means the Director of
        the Office of Management and Budget.
            (3) Federal accounting standards.--The term ``Federal
        accounting standards'' means applicable accounting principles,
        standards, and requirements consistent with section
        902(a)(3)(A) of title 31, United States Code, and includes
        concept statements with respect to the objectives of Federal
        financial reporting.
            (4) Financial management systems.--The term ``financial
        management systems'' includes the financial systems and the
        financial portions of mixed systems necessary to support
        financial management, including automated and manual processes,
        procedures, controls, data, hardware, software, and support
        personnel dedicated to the operation and maintenance of system
        functions.
            (5) Financial system.--The term ``financial system''
        includes an information system, comprised of one or more
        applications, that is used for--
                    (A) collecting, processing, maintaining,
                transmitting, or reporting data about financial events;
                    (B) supporting financial planning or budgeting
                activities;
                    (C) accumulating and reporting costs information;
                or
                    (D) supporting the preparation of financial
                statements.
            (6) Mixed system.--The term ``mixed system'' means an
        information system that supports both financial and
        nonfinancial functions of the Federal Government or components
        thereof.

SEC. 8. EFFECTIVE DATE.

    This Act shall take effect on October 1, 1996.

            Passed the Senate August 2, 1996.

            Attest:

                                             KELLY D. JOHNSTON,

                                                             Secretary.

Summary: Federal Financial Management Improvement Act of 1996 - Requires each Federal agency to: (1) implement and maintain financial management systems that comply with Federal requirements, Federal accounting standards, and the US Government Standard General Ledger at the transaction level. And (2) give priority in funding and provide sufficient resources to implement this Act. Requires: (1) audit reporting of whether an agency's financial management systems comply with requirements. (2) compliance determination by the Director of the Office of Management and Budget (OMB), acting through the Controller of the Office of Federal Financial Management. And (3) if there is noncompliance with the standards, a remediation plan. Sets forth a limitation on the time period for bringing the agency's financial management systems into compliance. Allows the transfer of up to two percent of agency funds for priority financial management system improvements for an agency with a remediation plan. Requires a report by the Director of OMB if an agency fails to bring its financial management systems into compliance within the specified time period. Directs the: (1) Secretary of the Senate and the Clerk of the House, jointly, to study and submit a report to the Congress on how the Congress and the legislative branch may achieve compliance. And (2) Chief Justice of the United States to study and submit a report to the Congress on how the judiciary may achieve such compliance. Sets forth: (1) reporting requirements, (2) conforming amendments, (3) definitions, and (4) the effective date.


SECTION 1. BREAKTHROUGH THERAPIES.

    (a) In General.--Section 506 (21 U.S.C. 356) is amended--
            (1) by redesignating subsection (d) as subsection (f);
            (2) by redesignating subsections (a) through (c) as
        subsections (b) through (d), respectively;
            (3) by inserting before subsection (b), as so redesignated,
        the following:
    ``(a) Designation of a Drug as a Breakthrough Therapy.--
            ``(1) In general.--The Secretary shall, at the request of
        the sponsor of a drug, expedite the development and review of
        such drug if the drug is intended, alone or in combination with
        1 or more other drugs, to treat a serious or life-threatening
        disease or condition and preliminary clinical evidence
        indicates that the drug may demonstrate substantial improvement
        over existing therapies on 1 or more clinically significant
        endpoints, such as substantial treatment effects observed early
        in clinical development. (In this section, such a drug is
        referred to as a `breakthrough therapy'.)
            ``(2) Request for designation.--The sponsor of a drug may
        request the Secretary to designate the drug as a breakthrough
        therapy. A request for the designation may be made concurrently
        with, or at any time after, the submission of an application
        for the investigation of the drug under section 505(i) or
        section 351(a)(3) of the Public Health Service Act.
            ``(3) Designation.--
                    ``(A) In general.--Not later than 60 calendar days
                after the receipt of a request under paragraph (2), the
                Secretary shall determine whether the drug that is the
                subject of the request meets the criteria described in
                paragraph (1). If the Secretary finds that the drug
                meets the criteria, the Secretary shall designate the
                drug as a breakthrough therapy and shall take such
                actions as are appropriate to expedite the development
                and review of the application for approval of such
                drug.
                    ``(B) Actions.--The actions to expedite the
                development and review of an application under
                subparagraph (A) may include, as appropriate--
                            ``(i) holding meetings with the sponsor and
                        the review team throughout the development of
                        the drug;
                            ``(ii) providing timely advice to, and
                        interactive communication with, the sponsor
                        regarding the development of the drug to ensure
                        that the development program to gather the non-
                        clinical and clinical data necessary for
                        approval is as efficient as practicable;
                            ``(iii) involving senior managers and
                        experienced review staff, as appropriate, in a
                        collaborative, cross-disciplinary review;
                            ``(iv) assigning a cross-disciplinary
                        project lead for the Food and Drug
                        Administration review team to facilitate an
                        efficient review of the development program and
                        to serve as a scientific liaison between the
                        review team and the sponsor; and
                            ``(v) taking steps to ensure that the
                        design of the clinical trials is as efficient
                        as practicable, when scientifically
                        appropriate, such as by minimizing the number
                        of patients exposed to a potentially less
                        efficacious treatment.'';
            (4) in subsection (f)(1), as so redesignated, by striking
        ``applicable to accelerated approval'' and inserting
        ``applicable to breakthrough therapies, accelerated approval,
        and''; and
            (5) by adding at the end the following:
    ``(g) Report.--Beginning in fiscal year 2013, the Secretary shall
annually prepare and submit to the Committee on Health, Education,
Labor, and Pensions of the Senate and the Committee on Energy and
Commerce of the House of Representatives, and make publicly available,
with respect to this section for the previous fiscal year--
            ``(1) the number of drugs for which a sponsor requested
        designation as a breakthrough therapy; and
            ``(2) the number of products designated as a breakthrough
        therapy.''.
    (b) Guidance; Amended Regulations.--
            (1) In general.--
                    (A) Guidance.--Not later than 18 months after the
                date of enactment of this Act, the Secretary of Health
                and Human Services (referred to in this section as the
                ``Secretary'') shall issue draft guidance on
                implementing the requirements with respect to
                breakthrough therapies, as set forth in section 506(a)
                of the Federal Food, Drug, and Cosmetic Act (21 U.S.C.
                356(a)), as amended by this section. The Secretary
                shall issue final guidance not later than 1 year after
                the close of the comment period for the draft guidance.
                    (B) Amended regulations.--
                            (i) In general.--If the Secretary
                        determines that it is necessary to amend the
                        regulations under title 21, Code of Federal
                        Regulations in order to implement the
                        amendments made by this section to section
                        506(a) of the Federal Food, Drug, and Cosmetic
                        Act, the Secretary shall amend such regulations
                        not later than 2 years after the date of
                        enactment of this Act.
                            (ii) Procedure.--In amending regulations
                        under clause (i), the Secretary shall--
                                    (I) issue a notice of proposed
                                rulemaking that includes the proposed
                                regulation;
                                    (II) provide a period of not less
                                than 60 days for comments on the
                                proposed regulation; and
                                    (III) publish the final regulation
                                not less than 30 days before the
                                effective date of the regulation.
                            (iii) Restrictions.--Notwithstanding any
                        other provision of law, the Secretary shall
                        promulgate regulations implementing the
                        amendments made by this section only as
                        described in clause (ii).
            (2) Requirements.--Guidance issued under this section
        shall--
                    (A) specify the process and criteria by which the
                Secretary makes a designation under section 506(a)(3)
                of the Federal Food, Drug, and Cosmetic Act; and
                    (B) specify the actions the Secretary shall take to
                expedite the development and review of a breakthrough
                therapy pursuant to such designation under such section
                506(a)(3), including updating good review management
                practices to reflect breakthrough therapies.
    (c) Independent Review.--Not later than 3 years after the date of
enactment of this Act, the Comptroller General of the United States, in
consultation with appropriate experts, shall assess the manner by which
the Food and Drug Administration has applied the processes described in
section 506(a) of the Federal Food, Drug, and Cosmetic Act, as amended
by this section, and the impact of such processes on the development
and timely availability of innovative treatments for patients affected
by serious or life-threatening conditions. Such assessment shall be
made publicly available upon completion.
    (d) Conforming Amendments.--Section 506B(e) (21 U.S.C. 356b) is
amended by striking ``section 506(b)(2)(A)'' each place such term
appears and inserting ``section 506(c)(2)(A)''.

Summary: Amends the Federal Food, Drug, and Cosmetic Act to direct the Secretary of Health and Human Services (HHS), at the request of the sponsor of a drug, to expedite the drug's development and review if: (1) it is intended, either alone or in combination, to treat a serious life-threatening disease or condition. And (2) preliminary clinical evidence indicates that the drug may demonstrate substantial improvement over existing therapies on one or more clinically significant endpoints. Authorizes the drug's sponsor to request the Secretary to designate the drug as a breakthrough therapy. Requires the Secretary, within 60 days of such request, to determine whether the drug meets such criteria and, if so, make such designation, followed by appropriate actions to expedite its development and review for approval. Requires an annual report from the Secretary to Congress on drugs for which breakthrough designations were requested and approved. Directs the Secretary to issue guidance on implementing requirements with respect to breakthrough therapies and to amend promulgated regulations. Requires the Comptroller General to assess the manner by which the Food and Drug Administration (FDA) has applied the processes established by this Act and their impact on the development and timely availability of innovative treatments for patients affected by serious or life-threatening conditions.

To amend chapter V of the Federal Food, Drug, and Cosmetic Act to expedite the development and review of breakthrough therapies.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Kids First Research Act of 2013''.

SEC. 2. TERMINATION OF TAXPAYER FINANCING OF PRESIDENTIAL ELECTION
              CAMPAIGNS.

    (a) Termination of Designation of Income Tax Payments.--Section
6096 of the Internal Revenue Code of 1986 is amended by adding at the
end the following new subsection:
    ``(d) Termination.--This section shall not apply to taxable years
ending on or after the date of the enactment of this subsection.''.
    (b) Termination of Fund and Account.--
            (1) Termination of presidential election campaign fund.--
                    (A) In general.--Chapter 95 of such Code is amended
                by adding at the end the following new section:

``SEC. 9014. TERMINATION.

    ``The provisions of this chapter shall not apply with respect to
any presidential election (or any presidential nominating convention)
after the date of the enactment of this section, or to any candidate in
such an election.''.
                    (B) Conversion of fund to 10-year pediatric
                research initiative fund.--Section 9006 of such Code is
                amended by adding at the end the following new
                subsection:
    ``(d) Conversion to 10-Year Pediatric Research Initiative Fund.--
            ``(1) Conversion.--Effective on the date of the enactment
        of the Kids First Research Act of 2013--
                    ``(A) the special fund established under this
                section shall be known and designated as the `10-Year
                Pediatric Research Initiative Fund'; and
                    ``(B) all amounts in the fund as of such date shall
                be available only for the purpose provided in section
                402A(a)(2) of the Public Health Service Act, and only
                to the extent and in such amounts as are provided in
                advance in appropriation Acts.
            ``(2) Termination.--Any amounts in the fund that remain
        unobligated on October 1, 2024, shall be deposited into the
        general fund of the Treasury.''.
            (2) Termination of account.--Chapter 96 of such Code is
        amended by adding at the end the following new section:

``SEC. 9043. TERMINATION.

    ``The provisions of this chapter shall not apply to any candidate
with respect to any presidential election after the date of the
enactment of this section.''.
    (c) Clerical Amendments.--
            (1) The table of sections for chapter 95 of such Code is
        amended by adding at the end the following new item:

``Sec. 9014. Termination.''.
            (2) The table of sections for chapter 96 of such Code is
        amended by adding at the end the following new item:

``Sec. 9043. Termination.''.

SEC. 3. 10-YEAR PEDIATRIC RESEARCH INITIATIVE.

    (a) Allocation of NIH Funds in Common Fund for Pediatric
Research.--Paragraph (7) of section 402(b) of the Public Health Service
Act (42 U.S.C. 282(b)) is amended to read as follows:
            ``(7)(A) shall, through the Division of Program
        Coordination, Planning, and Strategic Initiatives--
                    ``(i) identify research that represents important
                areas of emerging scientific opportunities, rising
                public health challenges, or knowledge gaps that
                deserve special emphasis and would benefit from
                conducting or supporting additional research that
                involves collaboration between 2 or more national
                research institutes or national centers, or would
                otherwise benefit from strategic coordination and
                planning;
                    ``(ii) include information on such research in
                reports under section 403; and
                    ``(iii) in the case of such research supported with
                funds referred to in subparagraph (B)--
                            ``(I) require as appropriate that proposals
                        include milestones and goals for the research;
                            ``(II) require that the proposals include
                        timeframes for funding of the research; and
                            ``(III) ensure appropriate consideration of
                        proposals for which the principal investigator
                        is an individual who has not previously served
                        as the principal investigator of research
                        conducted or supported by the National
                        Institutes of Health;
            ``(B)(i) may, with respect to funds reserved under section
        402A(c)(1) for the Common Fund, allocate such funds to the
        national research institutes and national centers for
        conducting and supporting research that is identified under
        subparagraph (A); and
            ``(ii) shall, with respect to funds appropriated to the
        Common Fund under section 402A(a)(2), allocate such funds to
        the national research institutes and national centers for
        making grants for pediatric research that is identified under
        subparagraph (A); and
            ``(C) may assign additional functions to the Division in
        support of responsibilities identified in subparagraph (A), as
        determined appropriate by the Director;''.
    (b) Funding for 10-Year Pediatric Research Initiative.--Section
402A of the Public Health Service Act (42 U.S.C. 282a) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (1) through (3) as
                subparagraphs (A) through (C), respectively, and moving
                the indentation of each such subparagraph 2 ems to the
                right;
                    (B) by striking ``For purposes of carrying out this
                title'' and inserting the following:
            ``(1) This title.--For purposes of carrying out this
        title''; and
                    (C) by adding at the end the following:
            ``(2) Funding for 10-year pediatric research initiative
        through common fund.--For carrying out section
        402(b)(7)(B)(ii), there is authorized to be appropriated, out
        of funds in the 10-Year Pediatric Research Initiative Fund
        established by section 9006 of the Internal Revenue Code of
        1986, and in addition to amounts otherwise made available under
        paragraph (1) of this subsection and reserved under subsection
        (c)(1)(B)(i) of this section, $13,000,000 for each of fiscal
        years 2014 through 2023.''; and
            (2) in subsections (c)(1)(B), (c)(1)(D), and (d), by
        striking ``subsection (a)'' each place it appears and inserting
        ``subsection (a)(1)''.
    (c) Supplement, Not Supplant; Prohibition Against Transfer.--Funds
appropriated under section 402A(a)(2) of the Public Health Service Act,
as added by subsection (b)--
            (1) shall be used to supplement, not supplant, the funds
        otherwise allocated by the National Institutes of Health for
        pediatric research; and
            (2) notwithstanding any transfer authority in any
        appropriation Act, shall not be used for any purpose other than
        making grants as described in section 402(b)(7)(B)(ii) of the
        Public Health Service Act, as added by subsection (a).

SEC. 4. PROHIBITION AGAINST NIH RESEARCH ON HEALTH ECONOMICS.

    Section 402A of the Public Health Service Act (42 U.S.C. 282a) is
amended by adding at the end the following:
    ``(f) Health Economics Research.--
            ``(1) Ongoing research.--Before continuing any health
        economics research grant, project, or activity that is ongoing
        as of the date of the enactment of this subsection, the
        Director of NIH shall submit to the Congress a report that
        outlines the justification for such ongoing grant, project, or
        activity, including the reason for giving priority to such
        ongoing grant, project, or activity over research on pediatric
        diseases and disorders, such as autism, cancer, and other
        pediatric genetic disorders without cures.
            ``(2) New research.--The Director of NIH may not initiate
        any health economics research grant, project, or activity
        until--
                    ``(A) the Director has submitted the report
                described in paragraph (1); and
                    ``(B) a Federal law has been enacted authorizing
                the National Institutes of Health to use funding
                specifically for health economics research.''.

Summary: Kids First Research Act of 2013 - Amends the Internal Revenue Code to terminate: (1) the taxpayer election to designate $3 of income tax liability for financing of presidential election campaigns, (2) the Presidential Election Campaign Fund, and (3) the Presidential Primary Matching Payment Account. Redesignates the Presidential Election Campaign Fund as the 10-Year Pediatric Research Initiative Fund. Makes amounts in the Fund available only for allocation to national research institutes and national centers through the Common Fund for making grants for pediatric research under this Act. Requires deposit into the Treasury general fund of any amounts in the Pediatric Research Initiative Fund that remain unobligated on October 1, 2024. Amends the Public Health Service Act to require the Director of the National Institutes of Health (NIH), through the Division of Program Coordination, Planning, and Strategic Initiatives, to allocate funds appropriated under this Act to the national research institutes and national centers for making grants for pediatric research representing important areas of emerging scientific opportunities, rising public health challenges, or knowledge gaps that deserve special emphasis and would benefit from conducting or supporting additional research that involves collaboration between two or more national research institutes or national centers, or would otherwise benefit from strategic coordination and planning. Authorizes $13 million out of the 10-Year Pediatric Research Initiative Fund for each of FY2014-FY2023 for pediatric research through the Common Fund. Requires such funds to supplement, not supplant, funds otherwise allocated by NIH for pediatric research. Prohibits the use of such amounts for any purpose other than making grants for pediatric research described in this Act. Requires the Director of NIH, before continuing any health economics research grant, project, or activity, to report to Congress on the justification for such research, including the reason for giving it priority over research on pediatric diseases and disorders. Prohibits the Director from initiating any health economics research grant, project, or activity until the Director has submitted the report outlining the justification and a federal law has been enacted authorizing NIH to use funding specifically for health economics research.

Kids First Research Act of 2013


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Informed P2P User Act''.

SEC. 2. CONDUCT PROHIBITED.

    (a) Notice and Consent Required for File-sharing Software.--
            (1) Notice and consent required prior to installation.--It
        is unlawful for any covered entity to install on a protected
        computer or offer or make available for installation or
        download on a protected computer a covered file-sharing program
        unless such program--
                    (A) immediately prior to the installation or
                downloading of such program--
                            (i) provides clear and conspicuous notice
                        that such program allows files on the protected
                        computer to be made available for searching by
                        and copying to one or more other computers; and
                            (ii) obtains the informed consent to the
                        installation of such program from an owner or
                        authorized user of the protected computer; and
                    (B) immediately prior to initial activation of a
                file-sharing function of such program--
                            (i) provides clear and conspicuous notice
                        of which files on the protected computer are to
                        be made available for searching by and copying
                        to another computer; and
                            (ii) obtains the informed consent from an
                        owner or authorized user of the protected
                        computer for such files to be made available
                        for searching and copying to another computer.
            (2) Non-application to pre-installed software.--Nothing in
        paragraph (1)(A) shall apply to the installation of a covered
        file-sharing program on a computer prior to the first sale of
        such computer to an end user, provided that notice is provided
        to the end user who first purchases the computer that such a
        program has been installed on the computer.
            (3) Non-application to software upgrades.--Once the notice
        and consent requirements of paragraphs (1)(A) and (1)(B) have
        been satisfied with respect to the installation or initial
        activation of a covered file-sharing program on a protected
        computer after the effective date of this Act, the notice and
        consent requirements of paragraphs (1)(A) and (1)(B) do not
        apply to the installation or initial activation of software
        modifications or upgrades to a covered file-sharing program
        installed on that protected computer at the time of the
        software modifications or upgrades so long as those software
        modifications or upgrades do not--
                    (A) make files on the protected computer available
                for searching by and copying to one or more other
                computers that were not already made available by the
                covered file-sharing program for searching by and
                copying to one or more other computers; or
                    (B) add to the types or locations of files that can
                be made available by the covered file-sharing program
                for searching by and copying to one or more other
                computers.
    (b) Preventing the Disabling or Removal of Certain Software.--It is
unlawful for any covered entity--
            (1) to prevent the reasonable efforts of an owner or
        authorized user of a protected computer from blocking the
        installation of a covered file-sharing program or file-sharing
        function thereof; or
            (2) to prevent an owner or authorized user of a protected
        computer from having a reasonable means to either--
                    (A) disable from the protected computer any covered
                file-sharing program; or
                    (B) remove from the protected computer any covered
                file-sharing program that the covered entity caused to
                be installed on that computer or induced another
                individual to install.

SEC. 3. ENFORCEMENT.

    (a) Unfair and Deceptive Acts and Practices.--A violation of
section 2 shall be treated as a violation of a rule defining an unfair
or deceptive act or practice prescribed under section 18(a)(1)(B) of
the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
    (b) Federal Trade Commission Enforcement.--The Federal Trade
Commission shall enforce this Act in the same manner, by the same
means, and with the same jurisdiction as though all applicable terms
and provisions of the Federal Trade Commission Act were incorporated
into and made a part of this Act.
    (c) Preservation of Federal and State Authority.--Nothing in this
Act shall be construed to limit or supersede any other Federal or State
law.

SEC. 4. DEFINITIONS.

    As used in this Act--
            (1) the term ``commercial entity'' means an entity engaged
        in acts or practices in or affecting commerce, as such term is
        defined in section 4 of the Federal Trade Commission Act (15
        U.S.C. 44);
            (2) the term ``covered entity'' means--
                    (A) a commercial entity that develops a covered
                file-sharing program; and
                    (B) a commercial entity that disseminates or
                distributes a covered file-sharing program and is owned
                or operated by the commercial entity that developed the
                covered file-sharing program;
            (3) the term ``protected computer'' has the meaning given
        such term in section 1030(e)(2) of title 18, United States
        Code; and
            (4) the term ``covered file-sharing program''--
                    (A) means a program, application, or software that
                is commercially marketed or distributed to the public
                and that enables--
                            (i) a file or files on the protected
                        computer on which such program is installed to
                        be designated as available for searching by and
                        copying to one or more other computers owned by
                        another person;
                            (ii) the searching of files on the
                        protected computer on which such program is
                        installed and the copying of any such file to a
                        computer owned by another person--
                                    (I) at the initiative of such other
                                computer and without requiring any
                                action by an owner or authorized user
                                of the protected computer on which such
                                program is installed; and
                                    (II) without requiring an owner or
                                authorized user of the protected
                                computer on which such program is
                                installed to have selected or
                                designated a computer owned by another
                                person as the recipient of any such
                                file; and
                            (iii) the protected computer on which such
                        program is installed to search files on one or
                        more other computers owned by another person
                        using the same or a compatible program,
                        application, or software, and to copy files
                        from the other computer to such protected
                        computer; and
                    (B) does not include a program, application, or
                software designed primarily to--
                            (i) operate as a server that is accessible
                        over the Internet using the Internet Domain
                        Name system;
                            (ii) transmit or receive email messages,
                        instant messaging, real-time audio or video
                        communications, or real-time voice
                        communications; or
                            (iii) provide network or computer security,
                        network management, hosting and backup
                        services, maintenance, diagnostics, technical
                        support or repair, or to detect or prevent
                        fraudulent activities; and
            (5) the term ``initial activation of a file-sharing
        function'' means--
                    (A) the first time the file sharing function of a
                covered file-sharing program is activated on a
                protected computer; and
                    (B) does not include subsequent uses of the program
                on that protected computer.

SEC. 5. RULEMAKING.

    The Federal Trade Commission may promulgate regulations under
section 553 of title 5, United States Code to accomplish the purposes
of this Act. In promulgating rules under this Act, the Federal Trade
Commission shall not require the deployment or use of any specific
products or technologies.

SEC. 6. NONAPPLICATION TO GOVERNMENT.

    The prohibition in section 2 of this Act shall not apply to the
Federal Government or any instrumentality of the Federal Government,
nor to any State government or government of a subdivision of a State.

            Passed the House of Representatives December 8, 2009.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.

Summary: Informed P2P User Act - Makes it unlawful for any commercial entity that developed a file sharing program or distributed such a program to install, make available for installation, or download a file sharing program without: (1) immediately before program installation or downloading, providing conspicuous notice that the program allows files to be searched and copied by one or more other computers and obtaining informed consent to the installation from an owner. And (2) immediately before initial activation of a file sharing function of the program, providing conspicuous notice of which files will be made available and obtaining the owner's informed consent. Exempts: (1) modifications or upgrades of a program that was originally installed in compliance with this Act, provided certain requirements are met. And (2) pre-installed software. Makes it unlawful for such an entity to prevent the reasonable efforts of an owner or authorized user to block the installation of such a program or to prevent such a user from having a reasonable way to disable or remove the program. Treats a violation of this Act as a violation of a rule defining an unfair or deceptive act or practice prescribed under the Federal Trade Commission Act. Prohibits construing this Act to limit or supersede any other federal or state law. Defines protected computer to include a computer used by a financial institution or the federal government or which is used in or affecting interstate or foreign commerce or communication, including a computer located outside the United States that is used in a way that affects US interstate or foreign commerce. Makes this Act inapplicable to the federal or any state government or subdivision.

To prevent the inadvertent disclosure of information on a computer through the use of certain "peer-to-peer" file sharing programs without first providing notice and obtaining consent from an owner or authorized user of the computer.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pension Protection and
Diversification Act of 2001''.

SEC. 2. 20-PERCENT LIMITATION ON EMPLOYER STOCK AND REAL PROPERTY HELD
              BY PARTICIPANT IN CERTAIN INDIVIDUAL ACCOUNT PLANS.

    (a) In General.--Section 407 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1107) is amended by adding at the end
the following:
    ``(g) Diversification Requirements Applicable to Certain Individual
Account Plans.--
            ``(1) In general.--An applicable individual account plan
        shall not be treated as an eligible individual account plan (as
        defined in subsection (d)(3)) unless the plan meets--
                    ``(A) the acquisition and holding requirements of
                paragraph (2), and
                    ``(B) the divestment requirement of paragraph (3).
            ``(2) Acquisition and holding requirements.--A plan meets
        the requirements of this paragraph only if--
                    ``(A) the plan may not acquire qualifying employer
                securities or qualifying employer real property to the
                extent that, immediately after the acquisition, the
                fair market value of all qualifying employer securities
                and qualifying employer real property allocated (or to
                be allocated) to any participant or beneficiary would
                exceed 20 percent of the fair market value of all
                assets allocated (or to be allocated) to such
                participant or beneficiary under the plan, and
                    ``(B) as of the last day of any calendar quarter,
                the fair market value of all qualifying employer
                securities and qualifying employer real property
                allocated (or to be allocated) to any participant or
                beneficiary does not exceed 20 percent of the fair
                market value of all assets allocated (or to be
                allocated) to such participant or beneficiary.
            ``(3) Opportunity for employee to divest employer
        securities.--A plan meets the requirements of this paragraph if
        each employee who has a nonforfeitable right to 100 percent of
        the employee's accrued benefit derived from employer
        contributions may, at any time after the 90th day following the
        allocation of any qualifying employer securities or qualifying
        employer real property to the employee under the plan, direct
        the plan to divest the employee's account of such securities or
        property and reinvest an equivalent amount in other assets.
            ``(4) Divestiture.--
                    ``(A) In general.--The Secretary shall prescribe
                regulations under which--
                            ``(i) a plan is given a reasonable period
                        of time to divest itself of qualifying employer
                        securities and qualifying employer real
                        property in order to meet the requirements of
                        this subsection, and
                            ``(ii) in the case of a plan in which a
                        participant or beneficiary exercises control
                        over assets in an account, the participant is
                        given reasonable notice of the requirement, and
                        a reasonable period of time, to make such
                        divestiture.
                    ``(B) Waiver in de minimis cases.--The Secretary
                may by regulations waive the application of paragraph
                (2)(B) in cases where the failure with respect to any
                participant or beneficiary is de minimis and due solely
                to market fluctuation.
            ``(5) Definitions and special rules.--For purposes of this
        subsection--
                    ``(A) Applicable individual account plan.--The term
                `applicable individual account plan' means an
                individual account plan other than an employee stock
                ownership plan as defined in section 4975(e)(7) of the
                Internal Revenue Code of 1986.
                    ``(B) Aggregation.--All applicable individual
                account plans (other than multiemployer plans)
                maintained by the same employer shall be treated as a
                single plan.
            ``(6) Transition rules.--
                    ``(A) In general.--If, as of December 31, 2002, the
                fair market value of qualifying employer securities and
                qualifying employer real property allocated (or to be
                allocated) under any plan to any one participant or
                beneficiary exceeds 20 percent of the fair market value
                of all assets so allocated (or to be allocated), the
                plan shall be treated as meeting the requirements of
                paragraph (2)(B). This subparagraph shall cease to
                apply if any such securities or property are allocated
                after December 31, 2002, to the participant or
                beneficiary without the requirements of paragraph
                (2)(A) or subparagraph (B) being met.
                    ``(B) Contractual requirements.--If qualifying
                employer securities or qualifying employer real
                property are acquired after December 31, 2002, pursuant
                to a contract in effect on the date of enactment of
                this subsection and at all times thereafter, the fair
                market value of such securities or property as of
                December 31, 2002, shall be taken into account under
                subparagraph (A).''
    (b) Conforming Amendment.--Section 407(b)(1) of such Act (29 U.S.C.
1107(b)(1)) is amended by striking ``Subsection (a)'' and inserting
``Subject to subsection (g), subsection (a)''.

SEC. 3. IMPROVEMENTS IN ABILITY OF EMPLOYEES TO DIVERSIFY ASSETS IN
              ESOPS.

    (a) In General.--Subparagraph (B)(iii) of section 401(a)(28) of the
Internal Revenue Code of 1986 (relating to additional requirements for
employee stock ownerships plans) is amended--
            (1) by striking ``10 years'' and inserting ``5 years'', and
            (2) by striking ``age 55'' and inserting ``age 35''.
    (b) Trustee-to-Trustee Transfer Required.--Clause (ii) of section
401(a)(28)(B) of such Code is amended by adding at the end the
following new flush sentence:
                        ``In the case of a qualified participant who
                        has not attained the age of 55 on or before the
                        date of any distribution described in subclause
                        (I), a plan shall be treated as meeting the
                        requirements of subclause (I) only if such
                        distribution is made in the form of a direct
                        trustee-to-trustee transfer to an eligible
                        retirement plan (as defined in paragraph
                        (31)(D)) specified by the participant.''

SEC. 4. REDUCTION IN DEDUCTION FOR EMPLOYER MATCHING CONTRIBUTIONS TO
              DEFINED CONTRIBUTION PLANS MADE IN EMPLOYER SECURITIES.

    Section 404(a) of the Internal Revenue Code of 1986 (relating to
deduction for contributions of an employer to an employee trust, etc.)
is amended by adding at the end the following:
            ``(12) Limitations on deductions for employer matching
        contributions made in employer securities.--In the case of an
        employer matching contribution of employer securities (as
        defined in section 409(l)) to a defined contribution plan other
        than an employee stock ownership plan (as defined in section
        4975(e)(7)), the amount of the deduction allowed shall be equal
        to 50 percent of the amount allowable without regard to this
        paragraph.''

SEC. 5. EFFECTIVE DATES.

    (a) In General.--The amendments made by this Act shall apply to
years beginning after December 31, 2002.
    (b) Collective Bargaining Agreements.--In the case of a plan
maintained pursuant to one or more collective bargaining agreements
between employee representatives and one or more employers ratified by
the date of the enactment of this Act, the amendments made by this Act
shall not apply with respect to employees covered by any such agreement
for plan years beginning before the earlier of--
            (1) the later of--
                    (A) the date on which the last of such collective
                bargaining agreements terminates (determined without
                regard to any extension thereof on or after such date
                of enactment), or
                    (B) January 1, 2003, or
            (2) January 1, 2005.

Summary: Pension Protection and Diversification Act of 2001 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) to: (1) limit to 20 percent the portion of funds which may be invested in the employer's stock and real property by an employee's individual account plans under section 401(k) of the Internal Revenue Code. And (2) allow an employee to direct the plan to divest the employee's account of such employer securities or property and to reinvest an equal amount in other assets, at any time after 90 days following allocation of employer securities or real property to the employee's individual account plan. Exempts employee stock ownership plans (ESOPS) from these new ERISA provisions. Amends Internal Revenue Code to: (1) allow employees to diversify assets in ESOPS after five years, and after they've reached age 35. And (2) reduce by 50 percent the allowable deduction for employer matching contributions to defined contribution plans made in employer securities.

A bill to amend the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986 to ensure that individual account plans protect workers by limiting the amount of employer stock each worker may hold and encouraging diversification of investment of plan assets, and for other purposes.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Smart Water Management Conservation
and Efficiency Act of 2014''.

SEC. 2. SMART WATER MANAGEMENT PILOT PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) a utility;
                    (B) a municipality;
                    (C) a water district; and
                    (D) any other authority that provides drinking
                water, wastewater treatment, or water reuse services.
            (2) Secretary.--The term ``Secretary'' means the Secretary
        of Energy.
            (3) Smart water management pilot program.--The term ``smart
        water management pilot program'' or ``pilot program'' means the
        pilot program established under subsection (b).
    (b) Smart Water Management Pilot Program.--
            (1) In general.--The Secretary shall establish and carry
        out a smart water management pilot program in accordance with
        this section.
            (2) Purpose.--The purpose of the smart water management
        pilot program is to award grants to eligible entities to
        demonstrate and deploy novel and innovative technology-based
        solutions that will--
                    (A) increase the energy and water efficiency of
                drinking water, wastewater treatment, and water reuse
                systems;
                    (B) improve drinking water, water reuse, and
                wastewater treatment systems to help communities across
                the United States make significant progress in
                conserving water, saving energy, and reducing costs;
                and
                    (C) support the implementation of innovative
                processes and the installation of advanced automated
                systems that provide real-time data on energy and
                water.
            (3) Project selection.--
                    (A) In general.--The Secretary shall make
                competitive, merit-reviewed grants under the pilot
                program to not less than 3, but not more than 5,
                eligible entities.
                    (B) Selection criteria.--In selecting an eligible
                entity to receive a grant under the pilot program, the
                Secretary shall consider--
                            (i) energy and cost savings;
                            (ii) the novelty of the technology to be
                        used;
                            (iii) the degree to which the project
                        integrates next-generation sensors, software,
                        analytics, and management tools;
                            (iv) the anticipated cost-effectiveness of
                        the pilot project in terms of energy efficiency
                        savings, water savings or reuse, and
                        infrastructure costs averted;
                            (v) whether the technology can be deployed
                        in a variety of geographic regions and the
                        degree to which the technology can be
                        implemented on a smaller or larger scale; and
                            (vi) whether the project will be completed
                        in 5 years or less.
                    (C) Applications.--
                            (i) In general.--Subject to clause (ii), an
                        eligible entity seeking a grant under the pilot
                        program shall submit to the Secretary an
                        application at such time, in such manner, and
                        containing such information as the Secretary
                        determines to be necessary.
                            (ii) Contents.--An application under clause
                        (i) shall, at a minimum, include--
                                    (I) a description of the project;
                                    (II) a description of the
                                technology to be used in the project;
                                    (III) the anticipated results,
                                including energy and water savings, of
                                the project;
                                    (IV) a comprehensive budget for the
                                project;
                                    (V) the names of the project lead
                                organization and any partners;
                                    (VI) the number of users to be
                                served by the project; and
                                    (VII) any other information that
                                the Secretary determines to be
                                necessary to complete the review and
                                selection of a grant recipient.
            (4) Administration.--
                    (A) In general.--Not later than 300 days after the
                date of enactment of this Act, the Secretary shall
                select grant recipients under this section.
                    (B) Evaluations.--The Secretary shall annually
                carry out an evaluation of each project for which a
                grant is provided under this section that--
                            (i) evaluates the progress and impact of
                        the project; and
                            (ii) assesses the degree to which the
                        project is meeting the goals of the pilot
                        program.
                    (C) Technical assistance.--On the request of a
                grant recipient, the Secretary shall provide technical
                assistance.
                    (D) Best practices.--The Secretary shall make
                available to the public--
                            (i) a copy of each evaluation carried out
                        under subparagraph (B); and
                            (ii) a description of any best practices
                        identified by the Secretary as a result of
                        those evaluations.
                    (E) Report to congress.--The Secretary shall submit
                to Congress a report containing the results of each
                evaluation carried out under subparagraph (B).
    (c) Funding.--
            (1) In general.--The Secretary shall use not less than
        $7,500,000 of amounts made available to the Secretary to carry
        out this section.
            (2) Prioritization.--In funding activities under this
        section, the Secretary shall prioritize funding in the
        following manner:
                    (A) Any unobligated amounts made available to the
                Secretary to carry out the activities of the Energy
                Efficiency and Renewable Energy Office.
                    (B) Any unobligated amounts (other than those
                described in subparagraph (A)) made available to the
                Secretary.

Summary: Smart Water Management Conservation and Efficiency Act of 2014 - Directs the Secretary of Energy (DOE) to establish and carry out a smart water management pilot program to award grants to three to five eligible entities to demonstrate and deploy novel and innovative technology-based solutions that will: (1) increase the energy and water efficiency of drinking water, wastewater treatment, and water reuse systems. (2) improve such systems to help communities make significant progress in conserving water, saving energy, and reducing costs. And (3) support the implementation of innovative processes and the installation of advanced automated systems that provide real-time data on energy and water. Directs the Secretary, in selecting grant recipient, to consider: energy and cost savings, the novelty of the technology to be used. The degree to which the project integrates next-generation sensors, software, analytics, and management tools. The anticipated cost-effectiveness of the pilot project in terms of energy efficiency savings, water savings or reuse, and infrastructure costs averted. Whether the technology can be deployed in a variety of geographic regions and the degree to which the technology can be implemented on a smaller or larger scale. And whether the project will be completed in five years or less. Requires the Secretary to evaluate, annually, each project for which a grant is provided and make best practices identified available to the public.


SECTION 1. TRANSFER OF ADMINISTRATIVE JURISDICTION.

    (a) Transfer From BLM to Department of Energy.--
            (1) In general.--Administrative jurisdiction over the
        following parcels of land in the State of Washington,
        comprising approximately 49,280 acres, is transferred from the
        Secretary of the Interior, acting through the Director of the
        Bureau of Land Management, to the Secretary of Energy:
                    (A) Sections 6 and 8, the portion of the NE\1/4\ of
                18 north of the north right-of-way for Horn Rapids
                Road, T10N, R28E, Willamette Meridian.
                    (B) Section 6, the portion of S\1/2\ of 12 north of
                the north right-of-way of Horn Rapids Road, the portion
                of 2 north of the north right-of-way of Route 240,
                NE\1/2\ of 8, N\1/2\ and W\1/2\, SW\1/4\ and the
                portion of the NE\1/4\, SE\1/4\ of 4, north of the
                Yakima River, T10N, R27E, Willamette Meridian.
                    (C) NW\1/4\ of 2, T11N, R24E, Willamette Meridian.
                    (D) NE\1/4\ of the NE\1/4\ of 4, NE\1/4\ and the
                N\1/2\ of the NW\1/4\ of 2, NW\1/4\ and W\1/2\ of the
                NE\1/4\ of 6, T11N, R26E, Willamette Meridian.
                    (E) Sections 2, 4, 6, 8, 10, 12, 14, and 24, T11N,
                R26E, Willamette Meridian.
                    (F) Sections 2, 8, 10, 12, 14, 18, 22, 24, 26, 28,
                30, 32, 34, and the NE\1/4\ and SE\1/4\ of 4, SW\1/4\
                of 6, NW\1/4\, SW\1/4\ and SE\1/4\ of 20, T11N, R27E,
                Willamette Meridian.
                    (G) Sections 4, 6, 8, 10, 18, 20, 28, 30, and 32,
                NW\1/4\ and SW\1/4\ of 22 and all land lying west of
                the Columbia River in 2, T11N, R28E, Willamette
                Meridian.
                    (H) Sections 14, 24, and 26, T12N, R24E, Willamette
                Meridian.
                    (I) Sections 6, 8, 10, 18, 22, 24, and 30, NW\1/4\,
                NE\1/4\ and SE\1/4\ of 4, W\1/2\, and the E\1/2\ of the
                NE\1/4\ and the NE\1/4\ of the SE\1/4\ of 20, N\1/2\ of
                the NW\1/4\ and N\1/2\ of the NE\1/4\ and SW\1/4\ of
                the SE\1/4\ and SE\1/4\ of the SW\1/4\ of 26, NE\1/4\
                of the NE\1/4\ of 32, S\1/2\ of the NW\1/4\ and S\1/2\
                of the NE\1/4\ and S\1/2\ of 34, T12N, R25E, Willamette
                Meridian.
                    (J) Sections 20, 22, 24, 26, 28, 30, 32, and 34,
                T12N, R26E, Willamette Meridian.
                    (K) Sections 14, 18, 20, 22, 24, 26, 28, 30, 32,
                and 34, NE\1/4\ and S\1/2\ of the SE\1/4\ of 4, S\1/2\
                and NW\1/4\ of the SW\1/4\ of 6, SW\1/4\, and the NW\1/
                4\, SW\1/4\, SE\1/4\ of the SE\1/4\ and SW\1/4\ of the
                NW\1/4\ of 8, T12N, R27E, Willamette Meridian.
                    (L) Section 30, S\1/2\ and NW\1/4\ of 32, S\1/2\ of
                34, T12N, R28E, Willamette Meridian.
                    (M) S\1/2\ of the NW\1/4\ and SW\1/4\ of 14, N\1/2\
                of the NE\1/4\ of 24, SW\1/4\ of the SE\1/4\ of 22,
                T13N, R24E, Willamette Meridian.
                    (N) Sections 24, 28, S\1/2\ of the SE\1/4\ and
                SW\1/4\ of 18, NW\1/4\ of the SE\1/4\ of 20, S\1/2\ of
                32, T13N, R25E, Willamette Meridian.
            (2) Withdrawal and use.--The land described in paragraph
        (1) is withdrawn from all forms of appropriation under the
        public land laws, including the mining and mineral leasing
        laws, and reserved for the use of the Hanford project of the
        Department of Energy.
            (3) Authorities.--
                    (A) In general.--The Secretary of Energy shall
                exercise all of the authorities with respect to the
                land described in paragraph (1) under the Atomic Energy
                Act of 1954 (42 U.S.C. 2011 et seq.) and the Atomic
                Energy Community Act of 1955 (42 U.S.C. 2301 et seq.).
                    (B) Disposal.--Any disposal of land described in
                paragraph (1) under the Atomic Energy Act of 1954 (42
                U.S.C. 2011 et seq.) or the Atomic Energy Community Act
                of 1955 (42 U.S.C. 2301 et seq.) shall be subject to
                valid existing rights of third parties.
                    (C) Effect.--This paragraph does not add to,
                modify, or eliminate any authority of the Secretary of
                Energy to dispose of property under the Atomic Energy
                Act of 1954 (42 U.S.C. 2011 et seq.) or the Atomic
                Energy Community Act of 1955 (42 U.S.C. 2301 et seq.).
    (b) Transfer From Department of Energy to BLM.--
            (1) In general.--Administrative jurisdiction over the
        following parcels of land in the State of Washington,
        comprising approximately 48,640 acres, is transferred from the
        Secretary of Energy to the Secretary of the Interior, acting
        through the Director of the Bureau of Land Management:
                    (A) Sections 13, 24, 25, 34-36, NE\1/4\ and SE\1/4\
                of 11, NE\1/4\ and SE\1/4\ of 14, NE\1/4\ and SE\1/4\
                of 23, NE\1/4\ and SE\1/4\ of 26, SW\1/4\ and SE\1/4\
                of 33, except NW\1/4\ of section 12, T14N, R26E,
                Willamette Meridian.
                    (B) Sections 7, 17-20, 28-34, T14N, R27E,
                Willamette Meridian.
                    (C) Sections 1-4, 9-13, 15-17, 20-24, SE\1/4\ of 5,
                NE\1/4\, SE\1/4\ and SW\1/4\ of 8, NE\1/4\ and NW\1/4\
                of 27, NE\1/4\ and NW\1/4\ of 26, NW\1/4\, NE\1/4\ and
                SE\1/4\ of 25, NW\1/4\ and SW\1/4\ of the NW\1/4\ of
                14, NW\1/4\ and NE\1/4\ of the SW\1/4\ of 14, NW\1/4\
                and NE\1/4\ of the SE\1/4\ of 14, SW\1/4\ and SE\1/4\
                of the NE\1/4\ of 14, T13N, R26E, Willamette Meridian.
                    (D) Sections 3-10, 14-17, 19-30, 35, 36, NE\1/4\
                and NW\1/4\ of 31, NE\1/4\ and NW\1/4\ of 32, NE\1/4\
                and NW\1/4\ of 33, NW\1/4\, NE\1/4\ and SE\1/4\ of 34,
                NE\1/4\ and SE\1/4\ of NW\1/4\ NE\1/4\ and SE\1/4\
                SW\1/4\ of 18, T13N, R27E, Willamette Meridian.
                    (E) Sections 30-32, T13N, R28E, Willamette
                Meridian.
                    (F) Section 1, NW\1/4\ and NE\1/4\ of 2, NE\1/4\ of
                12, NW\1/4\ and SW\1/4\ of the SE\1/4\ of 12, NE\1/4\
                and SE\1/4\ of 13, T12N, R27E, Willamette Meridian.
                    (G) Sections 4, 5, 7, 9, 10, 15-17, 19, 21, 23, 27,
                29, NE\1/4\ and SE\1/4\ of 6, NE\1/4\ and NW\1/4\ of 8,
                NE\1/4\ and NW\1/4\ of 33, NE\1/4\ and NW\1/4\ of 35,
                T12N, R28E, Willamette Meridian.
            (2) Status.--The land described in paragraph (1)--
                    (A) shall be treated as public land (within the
                meaning of section 103 of the Federal Land Policy and
                Management Act of 1976 (43 U.S.C. 1702)) and shall be
                subject to all of the laws (including regulations)
                applicable to the public land; and
                    (B) is withdrawn from all forms of appropriation
                under the public land laws, including the mining and
                mineral leasing laws, and reserved for the use of the
                Secretary of Energy in connection with the Hanford
                operations of the Department of Energy until the
                withdrawal and reservation are revoked by order of the
                Secretary of the Interior with the concurrence of the
                Secretary of Energy.

Summary: Transfers administrative jurisdiction over specified lands in the State of Washington from: (1) the Secretary of the Interior, acting through the Bureau of Land Management, to the Secretary of Energy. And (2) the Secretary of Energy to the Secretary of the Interior, acting through the Bureau of Land Management. Withdraws such lands from all forms of appropriation under the public land laws, including the mining and mineral leasing law. Sets forth: (1) reservations of such lands in connection with the Hanford project of the Department of Energy. And (2) authorities and disposal requirements under the Atomic Energy Act of 1954 with respect to the lands transferred to the Secretary of Energy.

To transfer administrative jurisdiction over certain parcels of land in the State of Washington from the Secretary of the Interior to the Secretary of Energy and to transfer administrative jurisdiction over certain parcels of land in the State of Washington from the Secretary of Energy to the Secretary of the Interior.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Managed Care Plan Accountability Act
of 1997''.

SEC. 2. IMPROVEMENTS IN ERISA ENFORCEMENT WITH RESPECT TO MANAGED CARE
              GROUP HEALTH PLANS.

    (a) Additional Remedies for Cost-Driven Violations of Plan Terms.--
            (1) In general.--Section 502(c) of the Employee Retirement
        Income Security Act of 1974 (29 U.S.C. 1132(c)) is amended--
                    (A) by redesignating paragraph (6) as paragraph
                (7); and
                    (B) by inserting after paragraph (5) the following
                new paragraph:
    ``(6)(A) In any case in which a group health plan, or a health
insurance issuer offering health insurance coverage in connection with
such plan, provides benefits under such plan under managed care, and
such plan or issuer fails to provide any such benefit in accordance
with the terms of the plan or such coverage, insofar as such failure
occurs pursuant to a clinically or medically inappropriate decision or
determination resulting from--
            ``(i) the application of any cost containment technique,
            ``(ii) any utilization review directed at cost containment,
        or
            ``(iii) any other medical care delivery policy decision
        which restricts the ability of providers of medical care from
        utilizing their full discretion for treatment of patients,
each specified defendant shall be jointly and severally liable to any
participant or beneficiary aggrieved by such failure for actual damages
(including compensatory and consequential damages) proximately caused
by such failure, and may, in the court's discretion, be liable to such
participant or beneficiary for punitive damages.
    ``(B) For purposes of this paragraph--
            ``(i) a group health plan, or a health insurance issuer
        offering health insurance coverage in connection with the plan,
        provides benefits under `managed care' if the plan or the
        issuer--
                    ``(I) provides or arranges for the provision of the
                benefits to participants and beneficiaries primarily
                through participating providers of medical care, or
                    ``(II) provides financial incentives (such as
                variable copayments and deductibles) to induce
                participants and beneficiaries to obtain the benefits
                primarily through participating providers of medical
                care,
        or both.
            ``(ii) The term `specified defendant' means, in connection
        with any failure to provide any benefit, a person who is--
                    ``(I) the plan sponsor, or
                    ``(II) a health insurance issuer offering health
                insurance coverage in connection with the plan,
        insofar as an act or failure to act of such person constitutes
        or contributes to the failure to so provide such benefit.
            ``(iii) The term `participating' means, with respect to a
        provider of medical care in relation to a group health plan or
        health insurance coverage offered in connection with a group
        health plan, a provider that furnishes the items and services
        comprising medical care to participants and beneficiaries under
        the plan under an agreement with the plan or with a health
        insurance issuer offering the coverage.
            ``(iv) The provisions of section 733 apply in the same
        manner and to the same extent as they apply for purposes of
        part 7.
    ``(C) Remedies under this paragraph are in addition to remedies
otherwise provided under this section.''.
            (2) Concurrent jurisdiction.--Section 502(e)(1) of such Act
        (29 U.S.C. 1132(e)(1)) is amended--
                    (A) in the first sentence, by inserting ``and
                except for actions under subsection (a)(1)(A) of this
                section for the relief provided in subsection (c)(6) of
                this section,'' after ``this section,''; and
                    (B) in the last sentence, by inserting ``and under
                subsection (a)(1)(A) of this section for the relief
                provided in subsection (c)(6) of this section'' after
                ``this section''.
    (b) Indemnification for Liability of Providers Bound by Plan
Restrictions on Medical Communications.--Section 502 of such Act (29
U.S.C. 1132) is amended further by adding at the end the following new
subsection:
    ``(n)(1) In any case in which a group health plan, or a health
insurance issuer offering health insurance coverage in connection with
such plan, provides benefits under such plan under managed care, the
plan shall provide for full indemnification of any participating
provider of medical care for any liability incurred by such provider
for any failure to provide any such benefit in accordance with the
terms of the plan or such coverage, if such failure is the direct
result of a plan restriction on medical communications under the plan.
    ``(2) For purposes of this subsection--
            ``(A) the term `plan restriction on medical communications'
        under a group health plan means a provision of the plan, or of
        any health insurance coverage offered in connection with the
        plan, which prohibits, restricts, or interferes with any
        medical communication as part of--
                    ``(i) a written contract or agreement with a
                participating provider of medical care,
                    ``(ii) a written statement to a participating
                provider of medical care, or
                    ``(iii) an oral communication to a participating
                provider of medical care.
            ``(B) The term `medical communication'--
                    ``(i) means any communication made by the provider
                of medical care--
                            ``(I) regarding the mental or physical
                        health care needs or treatment of a patient and
                        the provisions, terms, or requirements of the
                        group health plan or health insurance coverage
                        or another plan or coverage relating to such
                        needs or treatment, and
                            ``(II) between the provider and a current,
                        former, or prospective patient (or the guardian
                        or legal representative of a patient), between
                        the provider and any employee or representative
                        of the plan or issuer, or between the provider
                        and any employee or representative of any State
                        or Federal authority with responsibility for
                        the licensing or oversight with respect to the
                        plan or issuer; and
                    ``(ii) includes communications concerning--
                            ``(I) any tests, consultations, and
                        treatment options,
                            ``(II) any risks or benefits associated
                        with such tests, consultations, and options,
                            ``(III) variation among any providers of
                        medical care and any institutions providing
                        such services in experience, quality, or
                        outcomes,
                            ``(IV) the basis or standard for the
                        decision of a managed care group health plan,
                        or a health insurance issuer offering health
                        insurance coverage in connection with such a
                        plan, to authorize or deny particular benefits
                        consisting of medical care,
                            ``(V) the process used by the plan or
                        issuer to determine whether to authorize or
                        deny particular benefits consisting of medical
                        care, and
                            ``(VI) any financial incentives or
                        disincentives provided by the plan or issuer to
                        a provider of medical care that are based on
                        service utilization.
            ``(C) For purposes of this paragraph, the provisions of
        subsection (c)(6)(B) apply in the same manner and to the same
        extent as they apply for purposes of subsection (c)(6), and the
        provisions of section 733 apply in the same manner and to the
        same extent as they apply for purposes of part 7.''.

SEC. 3. EXCISE TAX FOR COST-DRIVEN VIOLATIONS OF PLAN TERMS.

    (a) In General.--Chapter 100 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subchapter:

  ``Subchapter B--Failure To Provide Health Benefits Due to Improper
                 Cost-Driven Delivery Policy Decisions

                              ``Sec. 9811. Failure to provide health
                                        benefits due to improper cost-
                                        driven delivery policy
                                        decisions.

``SEC. 9811. FAILURE TO PROVIDE HEALTH BENEFITS DUE TO IMPROPER COST-
              DRIVEN DELIVERY POLICY DECISIONS.

    ``(a) General Rule.--In the case of a group health coverage to
which this section applies, there is a failure to meet the requirements
of this chapter if--
            ``(1) the provider of such coverage fails to provide any
        benefit in accordance with the terms of the coverage, and
            ``(2) such failure occurs pursuant to a clinically or
        medically inappropriate decision or determination resulting
        from the application of--
                    ``(A) any cost containment technique,
                    ``(B) any utilization review directed at cost
                containment, or
                    ``(C) any other medical care delivery policy
                decision which restricts the ability of providers of
                medical care from utilizing their full discretion for
                treatment of patients.
    ``(b) Health Coverage Providers to Which Section Applies.--This
section shall apply to any group health coverage which is provided
under managed care.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Group health coverage.--The term `group health
        coverage' means--
                    ``(A) coverage under any group health plan, and
                    ``(B) health insurance coverage provided by a
                health insurance issuer.
            ``(2) Managed care.--Group health coverage is provided
        under managed care if--
                    ``(A) such coverage is provided primarily through
                participating providers of medical care, or
                    ``(B) the provider of such coverage provides
                financial incentives (such as variable copayments and
                deductibles) to induce participants and beneficiaries
                to obtain the benefits primarily through participating
                providers of medical care,
        or both.
            ``(3) Provider.--The term `provider' means--
                    ``(A) the group health plan in the case of coverage
                described in paragraph (2)(A), and
                    ``(B) the health insurance issuer in the case of
                coverage described in paragraph (2)(B).
            ``(4) Other definitions.--The terms `group health plan',
        `health insurance coverage', and `health insurance issuer' have
        the respective meanings given such terms by section 9805.''.
    (b) Conforming Amendments.--
            (1) Subtitle K of such Code is amended by striking all that
        precedes section 9801 and inserting the following:

              ``Subtitle K--Group Health Plan Requirements

                              ``Chapter 100. Group health plan
                                        requirements.

             ``CHAPTER 100--GROUP HEALTH PLAN REQUIREMENTS

                              ``Subchapter A. Requirements relating to
                                        portability, access, and
                                        renewability.
                              ``Subchapter B. Failure to provide health
                                        benefits due to improper cost-
                                        driven delivery policy
                                        decisions.''
            (2) The table of subtitles for such Code is amended by
        striking the item relating to subtitle K and inserting the
        following new item:

                              ``Subtitle K. Group health plan
                                        requirements.''

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall apply with respect to plan
years beginning after on or after January 1, 1998.

Summary: Managed Care Plan Accountability Act of 1997 - Amends the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code (IRC) with respect to accountability for violations of requirements for managed care group health plans, especially failure to provide health benefits due to improper cost-driven delivery policy decisions. Imposes joint and several liability for actual damages, and, in the court's discretion, for punitive damages, on a group health plan, or a plan health insurance issuer, for failure to provide a benefit in accordance with plan terms, insofar as such failure occurs pursuant to a clinically or medically inappropriate decision or determination resulting from application of any cost containment technique, related utilization review, or any other medical care delivery policy decision which restricts the ability of medical care providers to use their full discretion for treatment of patients. Provides for an action for damages in either a State or Federal court. Requires managed care group health plans to provide for full indemnification of medical care providers bound by plan restrictions for any liability incurred for such a failure if it is the direct result of a plan restriction on medical communications. Amends the IRC to establish an excise tax for such cost-driven violations of plan terms.