of Approval.--A joint resolution described in
this paragraph means only a joint resolution which is introduced within
the 10-day period beginning on the date on which the Commission submits
recommendations under section 102(c) and--
            (1) which does not have a preamble;
            (2) the matter after the resolving clause of which is as
        follows: ``That Congress approves the recommendations of the
        Independent Commission on Medicare concerning methods to
        control outlays under the medicare program for fiscal year
        ________, as submitted by the Commission on ______________.'',
        the first blank space being filled in with the appropriate
        fiscal year and the second
         blank space being filled in with the appropriate date; and
            (3) the title of which is as follows: ``Joint resolution
        approving recommendations of the Independent Commission on
        Medicare concerning methods to control outlays under the
        medicare program for fiscal year ________, as submitted by the
        Commission on ______________.'', the first blank space being
        filled in with the appropriate fiscal year and the second blank
        space being filled in with the appropriate date.
    (c) Procedures for Consideration of Resolution of Approval.--
Subject to subsection (d), the provisions of section 2908 (other than
subsection (a)) of the Defense Base Closure and Realignment Act of 1990
shall apply to the consideration of a joint resolution described in
subsection (b) in the same manner as such provisions apply to a joint
resolution described in section 2908(a) of such Act.
    (d) Special Rules.--For purposes of applying subsection (c) with
respect to such provisions--
            (1) any reference to the Committee on Armed Services of the
        House of Representatives shall be deemed a reference to an
        appropriate committee of the House of Representatives
        (specified by the Speaker of the House of Representatives at
        the time of submission of recommendations under subsection (c))
        and any reference to the Committee on Armed Services of the
        Senate shall be deemed a reference to an appropriate committee
        of the Senate (specified by the majority leader of the Senate
        at the time of submission of recommendations by the Commission
        under section 102(c)); and
            (2) any reference to the date on which the President
        transmits a report shall be deemed a reference to the date on
        which the Commission submits recommendations under section
        102(c).

SEC. 104. NO TERMINATION OF COMMISSION.

    Section 14(a)(2)(B) of the Federal Advisory Committee Act (5 U.S.C.
App.; relating to the termination of advisory committees) shall not
apply to the Commission.

          TITLE II--CONTROLLING OUTLAYS UNDER MEDICARE PROGRAM

SEC. 201. ESTABLISHMENT OF ANNUAL LIMITS ON OUTLAYS.

    Not later than April 15 of each year (beginning with 1996),
Congress shall in the concurrent resolution on the budget for the
fiscal year beginning on the following October 1 establish a limit on
total outlays to be made under the medicare program for the fiscal
year.

SEC. 202. ENFORCEMENT OF LIMITS THROUGH SEQUESTRATION.

    (a) In General.--Part C of the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C. 900 et seq.) is amended by
inserting after section 252 the following new section:

``SEC. 252A. SEQUESTRATION WITH RESPECT TO MEDICARE.

    ``(a) Sequestration.--If, with respect to a fiscal year (beginning
with fiscal year 1997), Congress has not enacted a joint resolution
under section 103(b) of the Commission to Save Medicare Act of 1995
before the first day of the fiscal year, there shall be a sequestration
to eliminate any budgetary excess in the medicare program as described
in subsection (b).
    ``(b) Eliminating a Budgetary Excess.--
            ``(1) In general.--Outlays under the medicare program shall
        be reduced during a fiscal year as provided by paragraph (2),
        as necessary to eliminate any amount by which estimated outlays
        under the program in the year exceed the limit for such outlays
        established for the year by Congress pursuant to section 201 of
        the Commission to Save Medicare Act of 1995.
            ``(2) Reductions described.--In carrying out paragraph (1),
        the President shall--
                    ``(A) reduce payments made under the medicare
                program by a uniform percentage sufficient to reduce 50
                percent of the amount described in paragraph (1); and
                    ``(B) increase premiums, deductibles, copayments,
                and coinsurance required to be paid under the program
                by a uniform percentage sufficient to reduce 50 percent
                of the amount described in paragraph (1).
    ``(c) Part-Year Appropriations and OMB Estimates.--Paragraphs (4)
and (7) of section 251(a) shall apply to sequestration of amounts under
this section in the same manner as those paragraphs apply to
discretionary appropriations and sequestrations under that section.
    ``(d) Coordination With Other Sequestration.--
            ``(1) In general.--Reductions under subsection (b) for a
        fiscal year shall supersede any reduction otherwise made under
        section 252 or 253.
            ``(2) Reports.--On the dates specified in section 254(a),
        OMB and CBO shall issue preview, update, and final reports on
        medicare sequestration under this section. Such reports shall
        specify--
                    ``(A) the estimated amount described in subsection
                (b)(1) for the fiscal year;
                    ``(B) the estimated uniform percentage described in
                subsection (b)(2)(A) of the fiscal year; and
                    ``(C) the estimated uniform percentage described in
                subsection (b)(2)(B) of the fiscal year.
            ``(3) Rules for application of reductions.--The provisions
        of section 256(d) shall apply to reductions under this
        section.''.
    (b) Clerical Amendment.--The table of contents for part C of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900
et seq.) is amended by inserting after the item relating to section 252
the following:

        ``Sec. 252A. Sequestration with respect to medicare.''.

Summary: TABLE OF CONTENTS: Title I: Independent Commission on Medicare Title II: Controlling Outlays Under Medicare Program Commission to Save Medicare Act of 1995 - Title I: Independent Commission on Medicare - Establishes the Independent Commission on Medicare to: (1) report to the Congress and the President during December of each year on certain aspects of the Medicare program under title XVIII of the Social Security Act involving projected outlays and benefits. And (2) report to the Congress during July of each year specific recommendations on certain changes to ensure that total program outlays for the fiscal year involved do not exceed specified limits. Precludes such recommendations from including changes relating to the payment of payroll taxes for financing the program. Provides procedures for expedited congressional consideration of recommendations. Title II: Controlling Outlays Under Medicare Program - Provides that Congress, not later than April 15 of each year, shall, in the concurrent resolution on the budget for the following fiscal year, establish a limit on total outlays to be made under the Medicare program for the fiscal year involved. Provides for the enforcement of such limits through sequestration under the Balanced Budget and Emergency Deficit Control Act of 1985 .

Commission to Save Medicare Act of 1995


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Livestock Protection and
Ranching Opportunity Act of 2014''.

SEC. 2. SENSE OF CONGRESS REGARDING COUNTRY OF ORIGIN LABELING.

    It is the sense of Congress that--
            (1) the overwhelming majority of consumers in the United
        States want to know where animals used to produce the meat
        eaten by the consumers is born, raised, and slaughtered;
            (2) country-of-origin labeling provides information that
        consumers in the United States have a right to know; and
            (3) country-of-origin labeling facilitates supply chain
        information critical for food safety.

SEC. 3. PROHIBITION ON IMPORTATION OF FRESH MEAT AND MEAT PRODUCTS FROM
              COUNTRIES WITH FOOT-AND-MOUTH DISEASE.

    Section 10404 of the Animal Health Protection Act (7 U.S.C. 8303)
is amended by adding at the end the following:
    ``(d) Prohibition on Importation of Fresh Meat and Meat Products
From Countries With Foot-and-Mouth Disease.--Notwithstanding any other
provision of law, until the date on which the Secretary of Agriculture
certifies to Congress that a country is free of foot-and-mouth disease
without vaccination, the Secretary may not--
            ``(1) allow the importation of fresh meat or meat products
        from that country; or
            ``(2) initiate, administer, finalize, or enforce any
        rulemaking allowing for the new importation of any fresh meat
        or meat product from that country.''.

SEC. 4. BRUCELLOSIS RESEARCH AND COMPENSATION.

    (a) Livestock Disease Initiative.--Title IV of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7624 et
seq.) is amended by inserting after the title heading the following:

``SEC. 401. LIVESTOCK DISEASE INITIATIVE.

    ``(a) In General.--There is established in the Department a
livestock disease initiative under which the Secretary shall provide to
eligible entities competitive grants for research and development
described in subsection (d).
    ``(b) Eligible Entities.--To be eligible to receive a grant under
this section, an entity shall be--
            ``(1) a Federal agency;
            ``(2) a National Laboratory;
            ``(3) an institution of higher education;
            ``(4) a research institution; or
            ``(5) a State agricultural experiment station.
    ``(c) Priority.--In awarding grants under this section, the
Secretary shall give priority to research and development relating to
bovine brucellosis, bovine tuberculosis, and other zoonotic diseases in
livestock that are covered by a high-priority research and extension
initiative authorized under section 1672 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5925).
    ``(d) Use of Grants.--An entity that receives a grant under this
section shall use the grant to conduct research and development
relating to surveillance methods, vaccines, vaccination delivery
systems, or diagnostic tests for diseases in domestic livestock that
present a potential concern to public health and safety, as determined
by the Secretary.
    ``(e) Matching Funds.--
            ``(1) In general.--In awarding grants under this section,
        the Secretary may give priority to proposals from eligible
        entities that provide matching funds for the grants in a manner
        as determined by the Secretary, but shall not require eligible
        entities to have matching funds as a requirement of being
        awarded a grant.
            ``(2) Exemption.--The matching funds requirement under
        section 1492 of the National Agricultural Research, Extension,
        and Teaching Policy Act of 1977 (7 U.S.C. 3371) shall not apply
        in the case of a grant awarded under this section.
    ``(f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2015 through 2018.''.
    (b) Assistance for Losses Due to Brucellosis.--Section 1501(c) of
the Agricultural Act of 2014 (7 U.S.C. 9081(c)) is amended--
            (1) in paragraph (1)(A), by inserting ``or brucellosis''
        after ``fire condition'' both places it appears;
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``or'' at the
                end;
                    (B) in subparagraph (B), by striking the period at
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(C) brucellosis, as described in paragraph
                (6).''; and
            (3) by adding at the end the following:
            ``(6) Assistance for losses due to brucellosis.--
                    ``(A) In general.--An eligible livestock producer
                may receive assistance under this paragraph only if the
                grazing losses occur due to quarantine of livestock
                under section 10407 of the Farm Security and Rural
                Investment Act of 2002 (7 U.S.C. 8306) due to
                brucellosis infection in the Greater Yellowstone
                Designated Surveillance Area, as determined by the
                Secretary.
                    ``(B) Payment rate.--The payment rate for
                assistance under this paragraph shall be equal to 60
                percent of the monthly feed cost (as determined under
                paragraph (3)(C)) for the total number of livestock of
                the eligible livestock producer subject to
                quarantine.''.

SEC. 5. LIVESTOCK INDEMNITY PAYMENTS.

    Section 1501(b) of the Agricultural Act of 2014 (7 U.S.C. 9081(b))
is amended by striking paragraph (2) and inserting the following:
            ``(2) Payment rates.--Indemnity payments to an eligible
        producer on a farm under paragraph (1) shall be made at a rate
        of 75 percent of the higher of, as determined by the
        Secretary--
                    ``(A) the market value of the applicable livestock
                on the earliest day that information is available to
                the Secretary; or
                    ``(B) the applicable nationwide price of the
                applicable livestock for the previous calendar year.''.

SEC. 6. LIVESTOCK FORAGE DISASTER PROGRAM.

    Section 1501(c)(3)(C) of the Agricultural Act of 2014 (7 U.S.C.
9081(c)(3)(C)) is amended by adding at the end the following:
                            ``(iv) High-value forage.--The Secretary
                        may provide for a price adjustment in the
                        monthly feed cost in the case of high-value
                        forage, as determined by the Secretary.''.

Summary: American Livestock Protection and Ranching Opportunity Act of 2014 - Expresses the sense of Congress that: the majority of consumers in the United States want to know where animals used to produce the meat eaten are born, raised, and slaughtered. Country-of-origin labeling provides information that consumers have a right to know. And country-of-origin labeling facilitates supply chain information critical for food safety. Amends the Animal Health Protection Act to prohibit the Secretary of Agriculture (USDA) from allowing or advancing regulations that allow the importation of fresh meat and meat products from a country until the Secretary certifies to Congress that a country is free of foot-and-mouth disease without vaccination. Amends the Agricultural Research, Extension, and Education Reform Act of 1998 to establish a USDA livestock disease initiative to provide competitive grants for research and development related to surveillance methods, vaccines, vaccination delivery systems, or diagnostic tests for diseases in domestic livestock that present a potential concern to public health and safety. Makes federal agencies, national laboratories, institutions of higher education, research institutions, and state agricultural experiment stations eligible for grants. Amends the Agricultural Act of 2014 to provide eligible livestock producers with assistance for losses due to brucellosis and to alter the payment rates USDA uses to provide agricultural disaster assistance under the Livestock Indemnity Program and the Livestock Forage Disaster Program.


SECTION 1. RECOGNITION OF ACCREDITING AGENCIES AND ASSOCIATIONS.

    (a) Due Process.--Paragraph (6) of section 496(a) of the Higher
Education Act of 1965 (20 U.S.C. 1099b(a)) is amended to read as
follows:
            ``(6) such agency or association shall apply procedures
        throughout the accrediting process, including evaluation,
        interim sanction, and withdrawal or termination of
        accreditation proceedings, that comply with due process,
        including the right to--
                    ``(A) adequate specification of the agency's
                accrediting requirements;
                    ``(B) written notice of deficiencies at the
                institution of higher education or program being
                examined and a reasonable time period, expressly set
                forth in the notice, to correct the deficiencies;
                    ``(C) advance notice of and an opportunity for a
                hearing by any such institution before the agency's
                decision making body prior to the agency's final
                consideration of imposition of an adverse action;
                    ``(D) appeal any adverse action by the agency
                against any such institution to an independent and
                impartial arbitration panel appointed jointly by the
                agency and the institution and conducted at the
                location of the institution;
                    ``(E) appeal, at a minimum, the adequacy of the
                evidence supporting the adverse action decision, the
                adequacy of the agency's compliance with its own
                policies and procedures, and the extent to which the
                decision of the agency was tainted by bias or prejudice
                of any agent or official of the agency;
                    ``(F) representation by counsel for any such
                institution;
                    ``(G) an arbitration panel decision that may affirm
                or reverse, but not modify, the decision appealed by
                the institution; and
                    ``(H) an allocation of the costs of the appeal that
                requires the agency and institution to each bear its
                own attorney, witness, and other costs of presentation
                of its case at the arbitration hearing and shifts the
                cost of the arbitration panel and any court reporter to
                the losing party;
        except that the Secretary may issue regulations to further
        define due process requirements as needed to protect accredited
        institutions, but may not by regulation reduce due process
        requirements available to accredited institutions, whether the
        due process is required under this paragraph or another
        provision of law or regulation;''.
    (b) Additional Criteria.--Section 496(a) is amended--
            (1) by striking ``and'' at the end of paragraph (7);
            (2) by striking the period at the end of paragraph (8) and
        inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(9) if an agency or association conducts an assessment of
        an institution's governing board--
                    ``(A) such assessment shall consistently apply the
                accreditation standard, to the greatest extent
                possible, to any State-appointed receiver, special
                trustee, or similar interim governing authority, until
                such time as governing authority is returned to the
                regular governing board; and
                    ``(B) such agency or association shall not
                terminate accreditation solely on the ground that the
                institution is under interim management of a State-
                appointed receiver, special trustee, or similar
                governing authority unless the agency or association
                determines that there are other deficiencies at the
                institution that provide grounds for termination, and
                that, after providing due process required by this
                section, the interim governing authority has not
                corrected such deficiencies within a reasonable period
                of time; and
            ``(10) such agency or association, and any officer or
        subdivision of such agency or association that makes
        accreditation recommendations to its decision-making board,
        shall conduct meetings open to public observation and comment
        and shall, at least 7 days before the time of any such meeting,
        post and distribute its meeting agenda electronically and
        otherwise to the public, and, for purposes of this paragraph--
                    ``(A) the term `meetings' includes all meetings,
                hearings, appeals, deliberations, and votes on
                accreditation matters regarding any educational
                institution or on accrediting standards, policies, or
                procedures; and
                    ``(B) the Secretary shall issue regulations to
                implement this paragraph.''.
    (c) Recognition of State Accrediting Agencies.--Section
496(a)(3)(B) (20 U.S.C. 1099b(a)(3)(B)) is amended by striking ``on or
before October 1, 1991''.

Summary: Amends the Higher Education Act of 1965 to revise due process standards governing the accreditation process of educational institutions. Requires accrediting agencies and associations to provide educational institutions with: (1) written notice of deficiencies and a reasonable time period to correct such deficiencies. (2) advance notice of any adverse action and an opportunity for a hearing. And (3) a right to appeal an adverse action to an independent and impartial arbitration panel. Requires accrediting agencies and associations to: (1) ensure consistent application of accreditation standards to an educational institution's governing board in receivership. And (2) allow public access to meetings involving accreditation recommendations. Authorizes the Secretary of Education to issue regulations to further define due process requirements for the accreditation process.

To amend the Higher Education Act of 1965 to require accrediting agencies and associations to comply with due process throughout the accreditation process, and for other purposes.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Precision Agriculture Research,
Education, and Information Dissemination Act of 1996''.

SEC. 2. EMPHASIS ON COMPETITIVE GRANTS TO PROMOTE PRECISION
              AGRICULTURE.

    (a) Promotion of Precision Agriculture.--Subsection (k) of the
Competitive, Special, and Facilities Research Grant Act (section 2 of
Public Law 89-106; 7 U.S.C. 450i) is amended to read as follows:
    ``(k) Emphasis on Precision Agriculture.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Advisory board.--The term `advisory board'
                means the National Agricultural Research, Extension,
                Education, and Economics Advisory Board established
                under section 1408 of the National Agricultural
                Research, Extension, and Teaching Policy Act of 1977 (7
                U.S.C. 3123).
                    ``(B) Agricultural inputs.--The term `agricultural
                inputs' includes all farm management, agronomic, and
                field-applied agricultural production inputs, such as
                machinery, labor, time, fuel, irrigation water,
                commercial nutrients, livestock waste, crop protection
                chemicals, agronomic data and information, application
                and management services, seed, and other inputs used in
                agricultural production.
                    ``(C) Precision agriculture.--The term `precision
                agriculture' means an integrated information- and
                production-based farming system that is designed to
                increase long-term site-specific and whole-farm
                production efficiencies, productivity, and
                profitability while minimizing unintended impacts on
                wildlife and the environment by--
                            ``(i) combining agricultural sciences,
                        agricultural inputs and practices, agronomic
                        production databases, and precision agriculture
                        technologies to efficiently manage agronomic
                        systems;
                            ``(ii) gathering on-farm information
                        pertaining to the variation and interaction of
                        site-specific spatial and temporal factors
                        affecting crop production;
                            ``(iii) integrating the information with
                        appropriate data derived from remote sensing
                        and other precision agriculture technologies in
                        a timely manner in order to facilitate on-farm
                        decisionmaking; and
                            ``(iv) using the information to prescribe
                        and deliver site-specific application of
                        agricultural inputs and management practices in
                        agricultural production systems.
                    ``(D) Precision agriculture technologies.--The term
                `precision agriculture technologies' includes--
                            ``(i) instrumentation and techniques
                        ranging from sophisticated sensors and software
                        systems to manual sampling and data collection
                        tools that measure, record, and manage spatial
                        and temporal data;
                            ``(ii) technologies for searching out and
                        assembling information necessary for sound
                        agricultural production decisionmaking;
                            ``(iii) open systems technologies for data
                        networking and processing that produce valued
                        systems for farm management decisionmaking,
                        including high bandwidth networks, distributed
                        processing, spatial databasing, object
                        technology, global positioning systems, data
                        modeling, high performance image processing,
                        high resolution satellite imagery, digital
                        orthophotgrammetry simulation, geographic
                        information systems, computer aided design, and
                        digital cartography; and
                            ``(iv) machines that deliver information
                        based management practices, including global
                        positioning satellites, digital field mapping,
                        on-the-go yield monitoring, automated pest
                        scouting, and site-specific agricultural input
                        application to accomplish the objectives of
                        precision agriculture.
                    ``(E) Systems research.--The term `systems
                research' means an integrated, coordinated, and
                iterative investigative process that considers the
                multiple interacting components and aspects of
                precision agriculture systems, including synthesis of
                new knowledge regarding the physical-chemical-
                biological processes and complex interactions with
                cropping and natural resource systems, precision
                agriculture technologies development and
                implementation, data and information collection and
                interpretation, production scale planning, production-
                scale implementation, and farm production efficiencies,
                productivity, and profitability.
            ``(2) Emphasis on research, education, and information
        dissemination grants.--The Secretary of Agriculture, in
        collaboration with the advisory board, shall ensure that
        research, education, and information dissemination grants made
        under subsection (b) are, where appropriate, consistent with
        the development and promotion of precision agriculture.
        Research, education, and information dissemination projects
        supported by the grants and designed to develop and demonstrate
        precision agriculture shall address 1 or more of the following:
                    ``(A) The study and promotion of components of
                precision agriculture technologies using a systems
                research approach designed to increase long-term site-
                specific and whole-farm production efficiencies,
                productivity, and profitability.
                    ``(B) The improvement in the understanding of
                agronomic systems, including soil, water, land cover,
                and meteorological variability.
                    ``(C) The development, demonstration, and
                dissemination of information regarding precision
                agriculture technologies and systems into an integrated
                program.
                    ``(D) The promotion of systems research and
                education projects focusing on the integration of the
                multiple aspects of precision agriculture, including
                development, production-scale implementation, and farm
                production efficiencies, productivity, and
                profitability.
                    ``(E) The education of agricultural producers and
                consumers regarding the benefits of precision
                agriculture as it relates to increased long-term farm
                production efficiencies, productivity, and
                profitability, as well as the maintenance of the
                environment and improvements in international trade.
                    ``(F) The provision of training and educational
                programs for State cooperative extension services
                agents, agricultural producers, agricultural input
                machinery, product, and service providers, and
                certified crop advisers and other professionals
                involved in the agricultural production and transfer of
                integrated precision agriculture technology.
            ``(3) Priorities for research, education, and information
        dissemination grants.--In making grants to eligible entities
        under subsection (b) regarding precision agriculture, the
        Secretary, in collaboration with the advisory board, shall give
        priority to research, education, and information dissemination
        projects that are designed to accomplish the following:
                    ``(A) The use of precision agriculture technologies
                and a systems research approach to increase long-term
                site-specific and whole-farm production efficiencies,
                productivity, and profitability.
                    ``(B) The integration of research, education, and
                information dissemination components in a practical and
                readily available manner so that the findings of the
                project will be made readily usable by farmers.
                    ``(C) The promotion of the efficient use of
                agricultural inputs, rather than the uniform reduction
                in the use of agricultural inputs.
                    ``(D) The maximization of the involvement and
                cooperation of precision agriculture producers,
                certified crop advisers, State cooperative extension
                services agents, and agricultural input machinery,
                product, and service providers in precision agriculture
                systems research projects involving on-farm research,
                education, and information dissemination of precision
                agriculture.
                    ``(E) The cooperation among farms that are managed
                using precision agriculture farm production practices,
                nonprofit organizations, agribusinesses, agricultural
                input machinery, product, and service providers, land-
                grant colleges and universities, the State cooperative
                extension services, and Government agencies (including
                national laboratories).
                    ``(F) The benefits of precision agriculture in
                relationship to global food production, reducing world
                hunger, world population trends, and efforts to
                maintain and enhance the environment.
                    ``(G) The diversity of United States agricultural
                production, including production on family owned and
                operated farms, large acreage farms, small acreage
                farms, and mixed crop, specialty crop, commodity crop,
                and livestock operations.
                    ``(H) The maximization of collaboration with
                multiple agencies and other partners that includes
                leveraging of funds and resources.
            ``(4) Education and information dissemination.--
                    ``(A) Reservation of funds for projects.--Of the
                funds allocated for competitive research grants under
                subsection (b) related to precision agriculture, the
                Secretary shall reserve a portion of the funds for
                education and information dissemination projects
                regarding precision agriculture.
                    ``(B) Compliance with priorities for information
                dissemination.--In the dissemination of information
                derived from research projects regarding precision
                agriculture that are supported by grants made under
                subsection (b), the Secretary shall ensure that both
                employees of the Department of Agriculture and grant
                recipients comply with the priorities specified in
                paragraph (3).
            ``(5) Precision agriculture partnerships.--
                    ``(A) Establishment.--For the purposes of this
                section, the Secretary, in collaboration with the
                advisory board, shall encourage the establishment of
                appropriate multistate and national partnerships or
                consortia between--
                            ``(i) land-grant colleges and universities,
                        State Agricultural Experiment Stations, State
                        cooperative extension services, other colleges
                        and universities with demonstrable expertise
                        regarding precision agriculture, agencies of
                        the Department of Agriculture, national
                        laboratories, agribusinesses, agricultural
                        equipment and input manufacturers and
                        retailers, certified crop advisers, commodity
                        organizations, other Federal or State
                        government entities and agencies, and non-
                        agricultural industries and nonprofit
                        organizations with demonstrable expertise
                        regarding precision agriculture; and
                            ``(ii) the persons and entities described
                        in clause (i) and agricultural producers and
                        other land managers.
                    ``(B) Partnership between national laboratories and
                department of agriculture.--The partnerships
                established pursuant to this paragraph shall include
                the partnership entered into (before the date of the
                enactment of this paragraph) by the Secretary of
                Energy, on behalf of the national laboratories, and the
                Secretary of Agriculture to promote cooperation and
                coordination between the national laboratories and
                agencies of the Department of Agriculture in the areas
                of systems research, technology research and
                development, and the transfer, utilization, and
private-sector commercialization of technology.
                    ``(C) Role of partnerships.--Partnerships described
                in subparagraphs (A) and (B) shall be eligible grantees
                for conducting systems research (including on-farm
                research) regarding precision agriculture and precision
                agriculture technologies.
            ``(6) Special aspects of research grants.--As part of a
        research project regarding precision agriculture that is funded
        under subsection (b), the grant recipient shall agree, to the
        extent practicable, to--
                    ``(A) study precision agriculture production
                systems that are located in areas that possess diverse
                crop, soil, climate, and physical characteristics;
                    ``(B) study farms that are or have been managed
                using precision agriculture farm production practices
                that rely on the efficient use of agricultural inputs
                and precision agriculture technologies to increase farm
                production efficiency, productivity, and profitability;
                    ``(C) conduct demonstration projects on farms that
                will be managed using precision agriculture;
                    ``(D) take advantage of the experience and
                expertise of agricultural producers through their
                direct participation and leadership in projects;
                    ``(E) utilize advanced access and communications
                technologies to transfer practical, reliable, and
                timely information to agricultural producers concerning
                precision agriculture practices, technologies, and
                systems; and
                    ``(F) promote partnerships among producers,
                nonprofit organizations, agribusinesses, agricultural
                input machinery, product, and service providers,
                colleges and universities, the State cooperative
                extension services, and Government agencies (including
                national laboratories).''.
    (b) Reporting Requirements.--Subsection (l) of the Competitive,
Special, and Facilities Research Grant Act (section 2 of Public Law 89-
106; 7 U.S.C. 450i) is amended to read as follows:
    ``(l) Reporting Requirements of Grant Recipients.--In addition to
the recordkeeping responsibilities of recipients of assistance under
this section, as prescribed by the Secretary under subsection (f), the
Secretary shall prescribe regulations to require grant recipients to
submit to the Secretary periodic reports regarding the research,
education, and information dissemination activities supported with the
assistance so as to enhance the usefulness of the monitoring and
evaluation system developed by the Secretary under section 1413A(b) of
the National Agricultural Research, Extension, and Teaching Policy Act
of 1977 (7 U.S.C. 3129(b)).''.
    (c) Entities Eligible for Grants.--Subsection (b)(1) of the
Competitive, Special, and Facilities Research Grant Act (section 2 of
Public Law 89-106; 7 U.S.C. 450i) is amended--
            (1) by inserting after ``Federal agencies'' the following:
        ``(including laboratories as defined in section 12(d) of the
        Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C.
        3710a(d)))''; and
            (2) by inserting after ``corporations'' the following:
        ``(including agricultural input machinery, product, and service
        providers)''.
    (d) Precision Agriculture Research, Extension, and Education, Under
Fund for Rural America.--Section 793(c)(2)(A) of the Federal
Agriculture Improvement and Reform Act of 1996 (Public Law 104-127; 7
U.S.C. 2204f(c)(2)(A)) is amended--
            (1) by striking ``and'' at the end of clause (vii);
            (2) by striking the period at the end of clause (viii) and
        inserting ``; and''; and
            (3) by inserting after clause (viii) the following:
                            ``(ix) develop and promote precision
                        agriculture and precision agriculture
                        technologies using a systems research approach,
                        as the terms are defined in subsection (k)(1)
                        of the Competitive, Special, and Facilities
                        Research Grant Act (section 2 of Public Law 89-
                        106; 7 U.S.C. 450i).''.
    (e) Technical Amendment.--Subsection (b)(9)(A) of the Competitive,
Special, and Facilities Research Grant Act (section 2 of Public Law 89-
106; 7 U.S.C. 450i) is amended by striking ``subsection (j)'' and
inserting ``subsection (k)''.

Summary: Precision Agriculture Research, Education, and Information Dissemination Act of 1996 - Amends the Competitive, Special, and Facilities Research Grant Act to emphasize competitive grants that promote precision agriculture research projects and to promote dissemination of such projects' results. Provides for the establishment of multistate and national agriculture partnerships, including existing partnerships between national laboratories and the Department of Agriculture. Amends the Federal Agriculture Improvement and Reform Act of 1996 to include precision agriculture within the research categories of the Fund for Rural America.


SECTION 1. SHORT TITLE.

    This Act may be referred to as the ``Department of the Interior
Reform and Savings Act of 1993''.

              TITLE I--IMPROVE THE FEDERAL HELIUM PROGRAM

SEC. 101. AMENDMENTS TO HELIUM ACT AMENDMENTS OF 1960.

    (a) Section 4 of the Helium Act Amendments of 1960 (74 Stat. 920,
50 U.S.C. 167b) is amended to insert after ``lands acquired, leased, or
reserved;'' the following: ``reduce costs and increase operational
efficiencies, especially in operations that do not produce revenue;
establish and adjust fees charged private industry for storage,
transmission, and withdrawal of privately-owned helium from Government
storage facilities to compensate fully for all costs incurred;''.
    (b) Section 6 of the Helium Act Amendments of 1960 (74 Stat. 921,
50 U.S.C. 167d) is amended--
            (1) by amending subsection (b) to read:
    ``(b) The Secretary is authorized to sell helium for Federal,
medical, scientific, and commercial uses in such quantities and under
such terms and conditions as the Secretary determines. Sales shall be
made in quantities and a manner to avoid undue disruption of the usual
markets of producers, processors, and consumers of helium and to
protect the United States against avoidable loss.''; and
            (2) by amending subsection (c) to read:
    ``(c) Sales of helium by the Secretary shall be at prices, as
established by the Secretary, that are adequate to cover all costs
incurred in carrying out the provisions of this Act. Helium shall be
sold at prices comparable to helium sold by private industry. An annual
review of price comparability shall be made and adjustments shall be
made accordingly.''.

SEC. 102. LONG-TERM COMPREHENSIVE PLAN.

    The Secretary of the Interior shall prepare and develop a long-
term, comprehensive plan to (1) cancel the outstanding debt owed to the
Treasury by the Department of the Interior related to the Federal
helium program; and (2) improve Federal helium program operations over
a multi-year period. The plan should analyze various options to
accomplish (1) and (2) above, with emphasis on ways to minimize adverse
impacts on Federal employment, Federal helium purchasers, and U.S.
private sector helium markets. The plan, with the Secretary's preferred
options, shall be presented to the President within 4 months of
enactment of this Act. The President may adopt the plan, in whole or in
part, and is authorized to cancel the out-standing debt upon a finding
that such debt cancellation is in the national interest.

    TITLE II--IMPROVE MINERALS MANAGEMENT SERVICE ROYALTY COLLECTION

SEC. 201. IMPROVEMENT OF MINERALS MANAGEMENT SERVICE ROYALTY
              COLLECTION.

    (a) The Secretary of the Interior shall, by fiscal year 1995,
direct the Minerals Management Service, Royalty Management Program, to
develop and implement (1) an automated business information system to
provide to its auditors a lease history that includes reference,
royalty, production, financial, compliance history, pricing and
valuation, and other information; (2) the optimum methods to identify
and resolve anomalies and to verify that royalties are paid correctly;
(3) a more efficient and cost-effective royalty collection process by
instituting new compliance and enforcement measures, including
assessments and penalties for erroneous reporting and underreporting;
and (4) such other actions as may be necessary to reduce royalty
underpayment and increase revenue to the U.S. Treasury by an estimated
total of $28 million by fiscal year 1999.
    (b) The Federal Oil and Gas Royalty Management Act of 1982 (Public
Law No. 97-451), (30 U.S.C. 1701 et seq.) is amended by adding a new
subsection 111(h) as follows:

                  ``penalty assessment for substantial

                      underreporting of royalty''

    ``Sec. 111. (h)(1) If there is any underreporting of royalty owned
on production from any lease issued or administered by the Secretary
for the production of oil, gas, coal, any other mineral, or geothermal
steam, from any Federal or Indian lands or the Outer Continental Shelf,
for any production month, by any person who is responsible for paying
royalty, the Secretary may assess a penalty of 10 percent of the amount
of that underreporting.
    ``(2) If there is a substantial underreporting of royalty owed on
production from any lease issued or administered by the Secretary for
the production of oil, gas, coal, any other mineral, or geothermal
steam, from any Federal or Indian lands or the Outer Continental Shelf,
for any production month, by any person who is responsible for paying
royalty, the Secretary may access a penalty of 20 percent of the amount
of that substantial underreporting.
    ``(3) For purposes of this section, the term `undereporting' means
the difference between the royalty on the value of the production which
should have been reported and the royalty on the value of the
production which was reported, if the value of the production which
should have been reported is greater than the value of the production
which was reported. An underreporting constitutes a `substantial
underreporting' if such difference exceeds 10 percent of the royalty on
the value of the production which should have been reported.
    ``(4) The Secretary shall not impose the assessment provided in
paragraphs (1) or (2) if the person corrects the underreporting before
the date the person receives notice from the Secretary that an
underreporting may have occurred, or before 90 days after the date of
enactment of this section, whichever is later.
    ``(5) The Secretary shall waive any portion of an assessment
provided in paragraphs (1) or (2) attributable to that portion of the
underreporting for which the person demonstrates that--
            ``(i) the person had written authorization from the
        Secretary to report royalty on the value of the production on
        the basis on which it was reported, or
            ``(ii) the person had substantial authority for reporting
        royalty on the value of the production on the basis on which it
        was reported, or
            ``(iii) the person previously had notified the Secretary,
        in such manner as the Secretary may by rule prescribe, of
        relevant reasons or facts affecting the royalty treatment of
        specific production which led to the underreporting, or
            ``(iv) the person meets any other exception which the
        Secretary may, by rule, establish.
    ``(6) All penalties collected under this subsection shall be
deposited to the same accounts in the Treasury or paid to the same
recipients in the same manner as the royalty with respect to which such
penalty is paid.''.

           TITLE III--PHASE OUT THE MINERAL INSTITUTE PROGRAM

SEC. 301. PHASE OUT OF MINERAL INSTITUTE PROGRAM.

    The Secretary of the Interior, beginning in fiscal year 1995, shall
take action to phase out the Mining and Mineral Resources Research
Institute Act of 1984, Public Law 98-409, as amended (98 Stat. 1536
through 1541 and 102 Stat. 2339 through 2341, 30 U.S.C. 1221 through
1230). There are hereby authorized to be appropriated under the Act the
following amounts: fiscal year 1995--$6.5 million; fiscal year 1996--$5
million; fiscal year 1997--$3 million; and fiscal year 1998--$1.5
million. No further appropriations for this Act are authorized after
September 30, 1998.

Summary: TABLE OF CONTENTS: Title I: Improve the Federal Helium Program Title II: Improve Minerals Management Service Royalty Collection Title III: Phase Out the Mineral Institute Program Department of the Interior Reform and Savings Act of 1993 - Title I: Improve the Federal Helium Program - Amends the Helium Act Amendments of 1960 to authorize the Secretary of the Interior to: (1) reduce costs and increase operational efficiencies. And (2) set fees charged private industry for storage, transmission, and withdrawal of privately-owned helium from Federal storage facilities to compensate fully for all costs incurred. Directs the Secretary to: (1) make helium sales in a manner that avoids undue disruption of the usual helium market and protects the United States against avoidable loss. (2) sell helium at prices comparable to those set by private industry. And (3) develop a long-term comprehensive plan to cancel the outstanding debt owed to the Treasury related to the Federal helium program, and to improve Federal helium program operations. Title II: Improve Minerals Management Service Royalty Collection - Requires the Secretary to direct the Minerals Management Service, Royalty Management Program, to develop and implement: (1) an automated business information system to provide its auditors a lease history. (2) optimum methods to identify and resolve anomalies and to verify royalty payments, (3) new royalty compliance and enforcement measures. And (4) other actions necessary to reduce royalty underpayment and increase revenues by a specified amount. Amends the Federal Oil and Gas Royalty Management Act of 1982 to authorize the Secretary to assess a penalty of ten percent of the amount of underreported royalty, and 20 percent of the amount of substantially underreported royalty. Title III: Phase Out the Mineral Institute Program - Directs the Secretary to phase out the Mining and Mineral Resources Research Institute Act of 1984 by the end of FY 1998.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Internet Fairness and Interstate
Responsibility Act'' or ``Net FAIR Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) By exercising its authority under article I, section 8,
        clause 3 of the United States Constitution, Congress may best
        achieve a consistent and coherent national policy regarding
        regulation and taxation of Internet activity and the
        concomitant uniformity, simplicity, and fairness that is needed
        to avoid burdening this evolving form of interstate and foreign
        commerce.
            (2) Because the Federal Government and State and local
        governments will have numerous reasons to interact over the
        Internet with the individuals and companies that use it, a
        lexicon of terms relating to the Internet and its use is vital.
            (3) A limited number of States have already adopted by law
        or regulation various forms of taxes that apply to commercial
        activity that are unique to the Internet or to providers of
        Internet services.
            (4) There are approximately 30,000 separate taxing
        jurisdictions in the United States, thus presenting the
        potential for an enormous variety of taxes and tax rates on
        Internet activity.
            (5) The unique character of the Internet transcends
        physical and political boundaries and permits commercial and
        intellectual communications to move from city to city, State to
        State, and nation to nation without any set path in a manner
        that is virtually unparalleled in history.
            (6) The Internet is a global network that offers the
        potential for entrepreneurial individuals and small businesses
        throughout the United States to reach customers and markets
        throughout the world with their products and services.
            (7) The United States must create an example for the rest
        of the world by preventing discriminatory taxation on Internet
        activities so that the United States can persuade our trading
        partners to resist the temptation to tax such activities and
        thereby limit the potential growth of such activities.
            (8) The innovation and creativity that has helped computer
        technology evolve into the present-day Internet has thrived in
        a tax-free environment and should be granted protection from
        local, State, and Federal taxation in order to permit this new
        medium to reach its fullest potential.
            (9) The President should seek bilateral and multilateral
        agreements through the World Trade Organization, the
        Organization for Economic Cooperation and Development, the Asia
        Pacific Economic Cooperation Council, and other appropriate
        international organizations and fora to establish that
        commercial transactions using the Internet are free from tariff
        and discriminatory taxation.

SEC. 3. MORATORIUM ON IMPOSITION OF TAXES ON INTERNET AND INTERNET-
              RELATED COMPUTER SERVICES.

    (a) Moratorium.--Except as otherwise provided in this section, no
State or political subdivision thereof may impose, assess, or attempt
to collect a tax directly or indirectly on--
            (1) the Internet or Internet-related services; or
            (2) the use of the Internet or Internet-related services.
    (b) Preservation of State and Local Taxing Authority.--Subsection
(a)--
            (1) does not apply to taxes imposed on or measured by net
        income derived from the Internet or Internet-related services
        if such taxes are applied uniformly to all businesses;
            (2) does not apply to fairly apportioned business license
        taxes applied to businesses having a business location in the
        taxing jurisdiction if such taxes are applied uniformly to all
        businesses;
            (3) does not affect the authority of a State or political
        subdivision to impose a sales or use tax on sales or other
transactions effected by use of the Internet or Internet-related
services if--
                    (A) the tax is the same as the tax generally
                imposed and collected by that State or political
                subdivision thereof on sales or transactions effected
                by mail order, telephone, or other remote means within
                its taxing jurisdiction; and
                    (B) the obligation to collect the tax from sales or
                other transactions effected by use of the Internet or
                Internet-related services is imposed on the same person
                or entity as in the case of sales or transactions
                affected by mail order, telephone, or other remote
                means; and
            (4) does not apply to taxes on real or personal property
        used in connection with the providing of Internet or Internet-
        related services if such taxes are applied to all businesses
        using real or personal property in connection with their
        businesses.
    (c) Termination.--The moratorium set forth under subsection (a)
shall terminate on December 31, 2001.

SEC. 4. COMMISSION ON INTERNET TAXATION AND REGULATION.

    (a) Establishment.--
            (1) In general.--There is established a commission to be
        known as the Commission on Internet Taxation and Regulation
        (hereafter in this section referred to as the ``Commission'').
            (2) Membership.--The Commission shall be composed of 15
        members of whom--
                    (A) one shall be the Secretary of Commerce;
                    (B) one shall be the Secretary of State;
                    (C) one shall be the Secretary of the Treasury; and
                    (D) twelve shall be appointed by the President
                without regard to political affiliation, of whom--
                            (i) three shall be the chief executive
                        officer of a State (including at least one who
                        is the chief executive officer of a State that
                        does not impose a sales tax);
                            (ii) three shall be the chief executive
                        officer of a political subdivision of a State
                        (including at least one who is the chief
                        executive officer of a political subdivision
                        that does not impose a sales tax);
                            (iii) three shall be individuals employed
                        by or affiliated with companies engaged in
                        computer manufacturing activities, software
                        activities, or activities relating to the
                        Internet or the provision of Internet-related
                        services; and
                            (iv) three shall be individuals employed by
                        or affiliated with companies engaged in
                        electronic commerce (including at least one who
                        is employed by or affiliated with a company
                        engaged in mail order commerce).
            (3) Period of appointment; vacancies.--Members shall be
        appointed for the life of the Commission. Any vacancy in the
        Commission shall not affect its powers, but shall be filled in
        the same manner as the original appointment.
            (4) Chairman and vice chairman.--The Commission shall
        select a Chairman and Vice Chairman from among its members.
            (5) Meetings.--The Commission shall meet at the call of the
        Chairman.
            (6) Quorum.--A majority of the members of the Commission
        shall constitute a quorum, but a lesser number of members may
        hold hearings.
    (b) Duties.--
            (1) In general.--The Commission shall have as its duties
        the following:
                    (A) To conduct a thorough study of taxation and
                regulation of the Internet and Internet-related
                services under State and local law and identify any
                inconsistencies in such taxation or regulation.
                    (B) To consider the effect of current Federal
                statutes and regulations on the Internet and Internet-
                related services and recommend appropriate
                modifications of such statutes and regulations.
                    (C) To propose model legislation (a so-called
                ``Uniform Internet Commercial Code'') relating to
                commercial transactions on the Internet and to
                Internet-related services in order to facilitate
                uniform treatment of such transactions and such
                services under Federal law and State law.
            (2) Model legislation.--The model legislation under
        paragraph (1)(C) shall--
                    (A) provide terminology applicable to commercial
                transactions on the Internet and to Internet-related
                services;
                    (B) define the transactions, services, and other
                activities covered by the legislation; and
                    (C) establish regulatory structures and mechanisms
                applicable to such transactions, services, and other
                activities.
            (3) Adoption of positions.--The Commission may not adopt a
        position with respect to a matter under this subsection unless
        the position is approved by at least 10 members of the
        Commission.
    (c) Report.--Not later than December 31, 2000, the Commission shall
submit to Congress and the President a report on its activities under
this section. The report shall--
            (1) set forth the findings of the Commission under
        subsection (b)(1)(A);
            (2) set forth any findings of the Commission under
        subsection (b)(1)(B), including any recommendations relating to
        such findings;
            (3) set forth the model legislation proposed under
        subsection (b)(1)(C); and
            (4) include any additional findings and recommendations
        that the Commission considers appropriate.
    (d) Powers of Commission.--
            (1) Hearings.--The Commission may hold such hearings, sit
        and act at such times and places, take such testimony, and
        receive such evidence as the Commission considers advisable to
        carry out the purposes of this section.
            (2) Information from federal agencies.--The Commission may
        secure directly from any Federal department or agency such
        information as the Commission considers necessary to carry out
        the provisions of this section. Upon request of the Chairman of
        the Commission, the head of such department or agency shall
        furnish such information to the Commission.
            (3) Postal services.--The Commission may use the United
        States mails in the same manner and under the same conditions
        as other departments and agencies of the Federal Government.
            (4) Gifts.--The Commission may accept, use, and dispose of
        gifts or donations of services or property.
    (e) Commission Personnel Matters.--
            (1) Compensation of members.--Each member of the Commission
        who is not an officer or employee of the Federal Government
        shall be compensated at a rate equal to the daily equivalent of
        the annual rate of basic pay prescribed for level IV of the
        Executive Schedule under section 5315 of title 5, United States
        Code, for each day (including travel time) during which such
        member is engaged in the performance of the duties of the
        Commission. All members of the Commission who are officers or
        employees of the United States shall serve without compensation
        in addition to that received for their services as officers or
        employees of the United States.
            (2) Travel expenses.--The members of the Commission shall
        be allowed travel expenses, including per diem in lieu of
        subsistence, at rates authorized for employees of agencies
        under subchapter I of chapter 57 of title 5, United States
        Code, while away from their homes or regular places of business
        in the performance of services for the Commission.
            (3) Staff.--
                    (A) In general.--The Chairman of the Commission
                may, without regard to the civil service laws and
                regulations, appoint and terminate an executive
                director and such other additional personnel as may be
                necessary to enable the Commission to perform its
                duties. The employment of an executive director shall
                be subject to confirmation by the Commission.
                    (B) Compensation.--The Chairman of the Commission
                may fix the compensation of the executive director and
                other personnel without regard to the provisions of
                chapter 51 and subchapter III of chapter 53 of title 5,
                United States Code, relating to classification of
                positions and General Schedule pay rates, except that
                the rate of pay for the executive director and other
                personnel may not exceed the rate payable for level V
                of the Executive Schedule under section 5316 of such
                title.
            (4) Detail of government employees.--Any Federal Government
        employee may be detailed to the Commission without
        reimbursement, and such detail shall be without interruption or
        loss of civil service status or privilege.
            (5) Procurement of temporary and intermittent services.--
        The Chairman of the Commission may procure temporary and
        intermittent services under section 3109(b) of title 5, United
        States Code, at rates for individuals which do not exceed the
        daily equivalent of the annual rate of basic pay prescribed for
        level V of the Executive Schedule under section 5316 of such
        title.
    (f) Termination.--The Commission shall terminate 90 days after the
date on which the Commission submits its report under subsection (c).

SEC. 5. DEFINITIONS.

    In this Act:
            (1) Internet.--The term ``Internet'' means the computer
        facilities and telecommunications facilities, and related
        equipment and software, comprising the interconnected world-
        wide network of computer networks that employ the Transmission
        Control Protocol/Internet Protocol, or any predecessor or
        successor protocol, to transmit information by wire or radio.
            (2) Internet-related services.--The term ``Internet-related
        services'' includes the following:
                    (A) Internet access services, including the
                storage, processing, and transmission of information
                that enables an individual to make use of the resources
                found via the Internet.
                    (B) Online services, including the information,
                information processing, electronic commerce, and other
                services available to an individual as part of a
                package of services that are combined with Internet
                access service and offered to the user for a single
                price.
            (3) Tax.--The term ``tax'' includes any tax, license, or
        fee that is imposed by any governmental entity, and includes
        the imposition on the seller of an obligation to collect and
        remit a tax imposed on the buyer.

Summary: Internet Fairness and Interstate Responsibility Act or Net FAIR Act - Prohibits a State or political subdivision thereof from imposing, assessing, or attempting to collect any tax on the Internet or Internet-related services or on their use. Preserves State and local taxing authority with respect to income, license, and sales or use taxes. Terminates such prohibition on December 31, 2001. Establishes the Commission on Internet Taxation and Regulation to: (1) study the taxation and regulation of the Internet and Internet-related services under State and local law and identify any inconsistencies. (2) recommend appropriate modification to current Federal and State statutes concerning such services. (3) propose model legislation relating to commercial transactions on the Internet in order to facilitate their uniform treatment under Federal and State law, and (4) report to the Congress and the President.

Net FAIR Act


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Restoring Investor Confidence Act of
2002''.

SEC. 2. 55-PERCENT CAPITAL GAINS DEDUCTION FOR TAXPAYERS OTHER THAN
              CORPORATIONS.

    (a) In General.--Section 1202 of the Internal Revenue Code of 1986
is amended to read as follows:

``SEC. 1202. CAPITAL GAINS DEDUCTION.

    ``(a) General Rule.--If for any taxable year a taxpayer other than
a corporation has a net capital gain, 55 percent of such gain shall be
a deduction from gross income.
    ``(b) Estates and Trusts.--In the case of an estate or trust, the
deduction shall be computed by excluding the portion (if any) of the
gains for the taxable year from sales or exchanges of capital assets
which, under sections 652 and 662 (relating to inclusions of amounts in
gross income of beneficiaries of trusts), is includible by the income
beneficiaries as gain derived from the sale or exchange of capital
assets.
    ``(c) Coordination With Treatment of Capital Gain Under Limitation
on Investment Interest.--For purposes of this section, the net capital
gain for any taxable year shall be reduced (but not below zero) by the
amount which the taxpayer takes into account as investment income under
section 163(d)(4)(B)(iii).
    ``(d) Transitional Rule.--
            ``(1) In general.--In the case of a taxable year which
        includes January 1 of the year following the date of enactment
        of this section--
                    ``(A) the amount taken into account as the net
                capital gain under subsection (a) shall not exceed the
                net capital gain determined by only taking into account
                gains and losses properly taken into account for the
                portion of the taxable year on or after such January 1,
                and
                    ``(B) the amount of the net capital gain taken into
                account in applying section 1(h) for such year shall be
                reduced by the amount taken into account under
                subparagraph (A) for such year.
            ``(2) Special rules for pass-thru entities.--
                    ``(A) In general.--In applying paragraph (1) with
                respect to any pass-thru entity, the determination of
                when gains and losses are properly taken into account
                shall be made at the entity level.
                    ``(B) Pass-thru entity defined.--For purposes of
                subparagraph (A), the term `pass-thru entity' means--
                            ``(i) a regulated investment company,
                            ``(ii) a real estate investment trust,
                            ``(iii) an S corporation,
                            ``(iv) a partnership,
                            ``(v) an estate or trust, and
                            ``(vi) a common trust fund.''.
    (b) Deduction Allowable in Computing Adjusted Gross Income.--
Section 62(a) of such Code (defining adjusted gross income) is amended
by inserting after paragraph (17) the following new paragraph:
            ``(18) Long-term capital gains.--The deduction allowed by
        section 1202.''.
    (c) Conforming Amendments.--
            (1) Section 1 of such Code is amended by striking
        subsection (h).
            (2) Section 170(e)(1) of such Code is amended by striking
        ``the amount of gain'' in the material following subparagraph
        (B)(ii) and inserting ``45 percent (50 percent in the case of a
        corporation) of the amount of gain''.
            (3) Section 172(d)(2)(B) of such Code is amended to read as
        follows:
                    ``(B) the deduction under section 1202 shall not be
                allowed.''.
            (4) The last sentence of section 453A(c)(3) of such Code is
        amended by striking all that follows ``long-term capital
        gain,'' and inserting ``the maximum rate on net capital gain
        under section 1201 or the deduction under section 1202
        (whichever is appropriate) shall be taken into account.''.
            (5) Section 642(c)(4) of such Code is amended to read as
        follows:
            ``(4) Adjustments.--To the extent that the amount otherwise
        allowable as a deduction under this subsection consists of gain
        from the sale or exchange of capital assets held for more than
        1 year, proper adjustment shall be made for any deduction
        allowable to the estate or trust under section 1202 (relating
        to capital gains deduction). In the case of a trust, the
        deduction allowed by this subsection shall be subject to
        section 681 (relating to unrelated business income).''.
            (6) The last sentence of section 643(a)(3) of such Code is
        amended to read as follows: ``The deduction under section 1202
        (relating to capital gains deduction) shall not be taken into
        account.''.
            (7) Section 643(a)(6)(C) of such Code is amended by
        inserting ``(i)'' before ``there shall'' and by inserting
        before the period ``, and (ii) the deduction under section 1202
        (relating to capital gains deduction) shall not be taken into
        account''.
            (8)(A) Section 904(b)(2) of such Code is amended by
        striking subparagraph (A), by redesignating subparagraph (B) as
        subparagraph (A), and by inserting after subparagraph (A) (as
        so redesignated) the following:
                    ``(B) Other taxpayers.--In the case of a taxpayer
                other than a corporation, taxable income from sources
                outside the United States shall include gain from the
                sale or exchange of capital assets only to the extent
                of foreign source capital gain net income.''.
            (B) Section 904(b)(2)(A) of such Code, as so redesignated,
        is amended--
                    (i) by striking all that precedes clause (i) and
                inserting the following:
                    ``(A) Corporations.--In the case of a corporation--
                '', and
                    (ii) in clause (i), by striking ``in lieu of
                applying subparagraph (A),''.
            (C) Section 904(b)(3) of such Code is amended by striking
        subparagraphs (D) and (E) and inserting the following:
                    ``(D) Rate differential portion.--The rate
                differential portion of foreign source net capital
                gain, net capital gain, or the excess of net capital
                gain from sources within the United States over net
                capital gain, as the case may be, is the same
                proportion of such amount as the excess of the highest
                rate of tax specified in section 11(b) over the
                alternative rate of tax under section 1201(a) bears to
                the highest rate of tax specified in section 11(b).''.
            (D) Section 593(b)(2)(D)(v) of such Code is amended--
                    (i) by striking ``if there is a capital gain rate
                differential (as defined in section 904(b)(3)(D)) for
                the taxable year,'', and
                    (ii) by striking ``section 904(b)(3)(E)'' and
                inserting ``section 904(b)(3)(D)''.
            (9) Section 1044(d) of such Code is amended by striking the
        last sentence.
            (10)(A) Section 1211(b)(2) of such Code is amended to read
        as follows:
            ``(2) the sum of--
                    ``(A) the excess of the net short-term capital loss
                over the net long-term capital gain, and
                    ``(B) one-half of the excess of the net long-term
                capital loss over the net short-term capital gain.''.
            (B) So much of section 1212(b)(2) of such Code as precedes
        subparagraph (B) thereof is amended to read as follows:
            ``(2) Special rules.--
                    ``(A) Adjustments.--
                            ``(i) For purposes of determining the
                        excess referred to in paragraph (1)(A), there
                        shall be treated as short-term capital gain in
                        the taxable year an amount equal to the lesser
                        of--
                                    ``(I) the amount allowed for the
                                taxable year under paragraph (1) or (2)
                                of section 1211(b), or
                                    ``(II) the adjusted taxable income
                                for such taxable year.
                            ``(ii) For purposes of determining the
                        excess referred to in paragraph (1)(B), there
                        shall be treated as short-term capital gain in
                        the taxable year an amount equal to the sum
                        of--
                                    ``(I) the amount allowed for the
                                taxable year under paragraph (1) or (2)
                                of section 1211(b) or the adjusted
                                taxable income for such taxable year,
                                whichever is the least, plus
                                    ``(II) the excess of the amount
                                described in subclause (I) over the net
                                short-term capital loss (determined)
                                without regard to this subsection) for
                                such year.''.
            (C) Section 1212(b) of such Code is amended by adding at
        the end of the following:
            ``(3) Transitional rule.--In the case of any amount which,
        under this subsection and section 1211(b) (as in effect for
        taxable year beginning before January 1, 2003), is treated as a
        capital loss in the first taxable year beginning after December
        31, 2002, paragraph (2) and section 1211(b) (as so in effect)
        shall apply (and paragraph (2) and section 1211(b) as in effect
        for taxable years beginning after December 31, 2002, shall not
        apply) to the extent such amount exceeds the total of any
        capital gain net income (determined without regard to this
        subsection) for taxable years beginning after December 31,
        2002.''.
            (11) Section 1402(i)(1) of such Code is amended by
        inserting``, and the deduction provided by section 1202 shall
        not apply'' before the period at the end thereof.
            (12) Section 1445(e) of such Code is amended--
                    (A) in paragraph (1), by striking ``35 percent (or,
                to the extent provided in regulations, 20 percent)''
                and inserting ``17.5 percent (or, to the extent
                provided in regulation, 15.6 percent)'', and
                    (B) in paragraph (2), by striking ``35 percent''
                and inserting ``17.5 percent''.
            (13)(A) The second sentence of section 7518(g)(6)(A) of
        such Code is amended--
                    (i) by striking ``during a taxable year to which
                section 1(h) or 1201(a) applies'', and
                    (ii) by striking ``20 percent (34 percent'' and
                inserting ``10 percent (15.3 percent''.
            (B) The second sentence of section 607(h)(6)(A) of the
        Merchant Marine Act, 1936 is amended--
                    (i) by striking ``during a taxable year to which
                section 1(h) or 1201(a) of such Code applies'', and
                    (ii) by striking ``20 percent (34 percent'' and
                inserting ``10 percent (15.3 percent''.
            (14) The item relating to section 1202 in the table of
        sections for part I of subchapter P of chapter 1 of such Code
        is amended to read as follows:

                              ``Sec. 1202. Capital gains deduction.''.
    (d) Effective Dates.--
            (1) In general.--Except as otherwise provided in this
        subsection, the amendments, made by this section apply to
        taxable years ending after December 31 of the year which
        includes the date of enactment of this Act.
            (2) Repeal of section 1(h).--The amendment made by
        subsection (c)(1) applies to taxable years beginning on or
        after January 1 of the year following the date of enactment of
        this Act.
            (3) Contributions.--The amendment made by subsection (c)(2)
        applies to contributions on or after January 1 of the year
        following the date of enactment of this Act.
            (4) Use of long-term losses.--The amendments made by
        subsection (c)(10) apply to taxable years beginning on or after
        January 1 of the second year following the date of enactment of
        this Act.
            (5) Withholding.--The amendments made by subsection (c)(12)
        apply only to amounts paid on or after January 1 of the year
        following the date of enactment of this Act.

SEC. 3. 55-PERCENT EXCLUSION OF DIVIDEND INCOME FROM TAX.

    (a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 (relating to amounts specifically
excluded from gross income) is amended by inserting after section 115
the following new section:

``SEC. 116. 55-PERCENT EXCLUSION OF DIVIDENDS RECEIVED BY INDIVIDUALS.

    ``(a) Exclusion From Gross Income.--Gross income does not include
55 percent of the amounts received during the taxable year by an
individual as dividends from domestic corporations.
    ``(b) Certain Dividends Excluded.--Subsection (a) shall not apply
to any dividend from a corporation which, for the taxable year of the
corporation in which the distribution is made, or for the next
preceding taxable year of the corporation, is a corporation exempt from
tax under section 501 (relating to certain charitable, etc.,
organization) or section 521 (relating to farmers' cooperative
associations).
    ``(c) Special Rules.--For purposes of this section--
            ``(1) Exclusion not to apply to capital gain dividends from
        regulated investment companies and real estate investment
        trusts.--

                                ``For treatment of capital gain
dividends, see sections 854(a) and 857(c).
            ``(2) Certain nonresident aliens ineligible for
        exclusion.--In the case of a nonresident alien individual,
        subsection (a) shall apply only--
                    ``(A) in determining the tax imposed for the
                taxable year pursuant to section 871(b)(1) and only in
                respect of dividends which are effectively connected
                with the conduct of a trade or business within the
                United States, or
                    ``(B) in determining the tax imposed for the
                taxable year pursuant to section 877(b).
            ``(3) Dividends from employee stock ownership plans.--
        Subsection (a) shall not apply to any dividend described in
        section 404(k).''
    (b) Conforming Amendments.--
            (1)(A) Subparagraph (A) of section 135(c)(4) of such Code
        is amended by inserting ``116,'' before ``137''.
            (B) Subsection (d) of section 135 of such Code is amended
        by redesignating paragraph (4) as paragraph (5) and by
        inserting after paragraph (3) the following new paragraph:
            ``(4) Coordination with section 116.--This section shall be
        applied before section 116.''
            (2) Subsection (c) of section 584 of such Code is amended
        by adding at the end thereof the following new flush sentence:
``The proportionate share of each participant in the amount of
dividends received by the common trust fund and to which section 116
applies shall be considered for purposes of such section as having been
received by such participant.''
            (3) Subsection (a) of section 643 of such Code is amended
        by redesignating paragraph (7) as paragraph (8) and by
        inserting after paragraph (6) the following new paragraph:
            ``(7) Dividends.--There shall be included the amount of any
        dividends excluded from gross income pursuant to section 116.''
            (4) Section 854(a) of such Code is amended by inserting
        ``section 116 (relating to partial exclusion of dividends
        received by individuals) and'' after ``For purposes of''.
            (5) Section 857(c) of such Code is amended to read as
        follows:
    ``(c) Restrictions Applicable to Dividends Received From Real
Estate Investment Trusts.--
            ``(1) Treatment for section 116.--For purposes of section
        116 (relating to partial exclusion of dividends received by
        individuals), a capital gain dividend (as defined in subsection
        (b)(3)(C)) received from a real estate investment trust which
        meets the requirements of this part shall not be considered as
        a dividend.
            ``(2) Treatment for section 243.--For purposes of section
        243 (relating to deductions for dividends received by
        corporations), a dividend received from a real estate
        investment trust which meets the requirements of this part
        shall not be considered as a dividend.''
            (6) The table of sections for part III of subchapter B of
        chapter 1 of such Code is amended by inserting after the item
        relating to section 115 the following new item:

                              ``Sec. 116. 55-percent exclusion of
                                        dividends received by
                                        individuals.''
    (c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after December 31 of the year which
includes the date of enactment of this Act.

Summary: Restoring Investor Confidence Act of 2002 - Amends the Internal Revenue Code to revise rules concerning capital gain for taxpayers other than corporations to establish a new general rule which provides that if for any taxable year a taxpayer other than a corporation has a capital gain, 55 percent of such gain shall be a deduction from gross income. Excludes from individual gross income 55 percent of dividends received from a domestic corporation.

To amend the Internal Revenue Code of 1986 to simplify and reduce the capital gain rates for all taxpayers and to exclude from gross income 55 percent of the dividends received by individuals, and for other purposes.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Patent and Trademark Office
Authorization Act of 2002''.

SEC. 2. AUTHORIZATION OF AMOUNTS AVAILABLE TO THE PATENT AND TRADEMARK
              OFFICE.

    (a) In General.--There are authorized to be appropriated to the
United States Patent and Trademark Office for salaries and necessary
expenses for each of the fiscal years 2003 through 2008 an amount equal
to the fees estimated by the Secretary of Commerce to be collected in
each such fiscal year, respectively, under--
            (1) title 35, United States Code; and
            (2) the Act entitled ``An Act to provide for the
        registration and protection of trademarks used in commerce, to
        carry out the provisions of certain international conventions,
        and for other purposes'', approved July 5, 1946 (15 U.S.C. 1051
        et seq.) (commonly referred to as the Trademark Act of 1946).
    (b) Estimates.--Not later than February 15, of each fiscal year,
the Undersecretary of Commerce for Intellectual Property and the
Director of the Patent and Trademark Office (in this Act referred to as
the Director) shall submit an estimate of all fees referred to under
subsection (a) to be collected in the next fiscal year to the chairman
and ranking member of--
            (1) the Committees on Appropriations and Judiciary of the
        Senate; and
            (2) the Committees on Appropriations and Judiciary of the
        House of Representatives.

SEC. 3. ELECTRONIC FILING AND PROCESSING OF PATENT AND TRADEMARK
              APPLICATIONS.

    (a) Electronic Filing and Processing.--Not later than December 1,
2004, the Director shall complete the development of an electronic
system for the filing and processing of patent and trademark
applications, that--
            (1) is user friendly; and
            (2) includes the necessary infrastructure to--
                    (A) allow examiners and applicants to send all
                communications electronically; and
                    (B) allow the Office to process, maintain, and
                search electronically the contents and history of each
                application.
    (b) Authorization of Appropriations.--Of amounts authorized under
section 2, there are authorized to be appropriated to carry out
subsection (a) of this section not more than $50,000,000 for each of
fiscal years 2003 and 2004. Amounts made available under this
subsection shall remain available until expended.

SEC. 4. ANNUAL REPORTS ON STRATEGIC PLAN.

    In each of the 5 calendar years following the date of enactment of
this Act, the Secretary of Commerce shall submit a report to the
Committees on the Judiciary of the Senate and the House of
Representatives on--
            (1) the progress made in implementing the 21st Century
        Strategic Plan issued on June 3, 2002; and
            (2) any amendments made to the plan.

SEC. 5. DETERMINATION OF SUBSTANTIAL NEW QUESTION OF PATENTABILITY IN
              REEXAMINATION PROCEEDINGS.

    (a) In General.--Sections 303(a) and 312(a) of title 35, United
States Code, are each amended by adding at the end the following: ``The
existence of a substantial new question of patentability is not
precluded by the fact that a patent or printed publication was
previously cited by or to the Office or considered by the Office.''.
    (b) Effective Date.--The amendments made by this section shall
apply with respect to any determination of the Director of the United
States Patent and Trademark Office that is made under section 303(a) or
312(a) of title 35, United States Code, on or after the date of the
enactment of this Act.

SEC. 6. APPEALS IN INTER PARTES REEXAMINATION PROCEEDINGS.

    (a) Appeals by Third-Party Requester in Proceedings.--Section
315(b) of title 35, United States Code, is amended to read as follows:
    ``(b) Third-Party Requester.--A third-party requester--
            ``(1) may appeal under the provisions of section 134, and
        may appeal under the provisions of sections 141 through 144,
        with respect to any final decision favorable to the
        patentability of any original or proposed amended or new claim
        of the patent; and
            ``(2) may, subject to subsection (c), be a party to any
        appeal taken by the patent owner under the provisions of
        section 134 or sections 141 through 144.''.
    (b) Appeal to Board of Patent Appeals and Interferences.--Section
134(c) of title 35, United States Code, is amended by striking the last
sentence.
    (c) Appeal to Court of Appeals for the Federal Circuit.--Section
141 of title 35, United States Code, is amended in the third sentence
by inserting ``, or a third-party requester in an inter partes
reexamination proceeding, who is'' after ``patent owner''.
    (d) Effective Date.--The amendments made by this section apply with
respect to any reexamination proceeding commenced on or after the date
of the enactment of this Act.

            Passed the Senate June 26, 2002.

            Attest:

                                                             Secretary.
107th CONGRESS

  2d Session

                                S. 1754

_______________________________________________________________________

                                 AN ACT

To authorize appropriations for the United States Patent and Trademark
   Office for fiscal years 2003 through 2008, and for other purposes.

Summary: Patent and Trademark Office Authorization Act of 2002 - Authorizes appropriations to the US Patent and Trademark Office for salaries and expenses for FY 2003 through 2008 in an amount equal to all patent and trademark fees estimated by the Secretary of Commerce (Secretary) to be collected in each such fiscal year. Requires the Under Secretary of Commerce for Intellectual Property and the Director of the Office (Director), by February 15 of each fiscal year, to report an estimate of all fees to be collected in the next fiscal year to the chairman and ranking member of specified congressional committees. Requires the Director, by December 1, 2004, to complete the development of an electronic system for the filing and processing of patent and trademark applications that: (1) is user friendly. And (2) includes the necessary infrastructure to allow examiners and applicants to send all communications electronically, and the Office to process, maintain, and search electronically the contents and history of each application. Authorizes appropriations for FY 2003 and 2004 for development of such system. Requires the Secretary, in each of the five calendar years following the enactment of this Act, to report to specified congressional committees on the progress made in implementing the 21st Century Strategic Plan issued on June 3, 2002, and on any amendments made to it. Amends Federal patent law to provide that previous citation by or to, or consideration by the Office of, a patent or printed publication does not preclude the existence of a substantial new question of patentability in patent reexamination proceedings. Revises requirements for appeals in inter partes reexamination proceedings to allow a third-party requester to appeal to the US Court of Appeals for the Federal Circuit, or be a party to any appeal taken by the patent owner, with respect to any final decision favorable to the patentability of any original or proposed amended or new claim of the patent. Allows a third-party requester to appeal a decision of the Board of Patent Appeals and Interferences. Provides that a third-party requester in an inter partes reexamination proceeding dissatisfied with the final decision in an appeal to the Board may appeal the decision only to the US Court of Appeals for the Federal Circuit.

A bill to authorize appropriations for the United States Patent and Trademark Office for fiscal years 2003 through 2008, and for other purposes.