SECTION 1. SHORT TITLE. This Act may be cited as the ``Preventing Waste, Fraud, and Abuse Act of 2010''. SEC. 2. FINDINGS. The Congress finds the following: (1) To protect the taxpayer and the Treasury, it is the responsibility of the Congress to provide Federal agencies with the financial resources necessary to enforce the laws of the United States and to prevent waste, fraud, and abuse of taxpayer's dollars. (2) For every $1 invested in the Department of Health and Human Services and the Department of Justice for program integrity efforts to prevent waste, fraud, and abuse of Medicare, Medicaid, and the Children's Health Insurance Program, approximately $1.55 will be saved, according to a report issued by the Office of Management and Budget. (3) Increased program integrity efforts by the Department of Health and Human Services and the Department of Justice can provide an estimated savings of $4,470,000,000 on an investment of $3,100,000,000 in Medicare, Medicaid, and the Children's Health Insurance Program over the next 5 fiscal years and an estimated savings of $9,870,000,000 on an investment of $6,753,000,000 over the next 10 fiscal years, according to a report issued by the Office of Management and Budget. (4) For every $1 invested in the Social Security Administration for program integrity efforts to increase the volume of continuing disability reviews conducted pursuant to section 221(i) of the Social Security Act (42 U.S.C. 421(i)) to determine whether a recipient of disability insurance benefits under section 223(a) of such Act (42 U.S.C. 423(a)) will continue to be eligible for such benefits, approximately $10 will be saved, according to a report issued by the Office of Management and Budget. (5) For every $1 invested in the Social Security Administration for program integrity efforts to increase the volume of continuing disability reviews conducted pursuant to section 1631(j) of Social Security Act (42 U.S.C. 1383(j)) to determine whether a recipient of supplemental security income benefits under section 1611 of such Act (42 U.S.C. 1382) will continue to be eligible for such benefits, approximately $8 will be saved, according to a report issued by the Office of Management and Budget. (6) Providing additional funding to the Social Security Administration to increase the volume of continuing disability reviews conducted pursuant to sections 221(i) and 1631(j) of Social Security Act (42 U.S.C. 421(i), 1383(j), respectively) can provide an estimated savings of $16,102,000,000 on an investment of $3,953,000,000 over the next 5 fiscal years and an estimated savings of $57,838,000,000 on an investment of $10,252,000,000 over the next 10 fiscal years, according to a report issued by the Office of Management and Budget. (7) The tax gap, the difference between the annual amount of Federal income taxes owed and the amount voluntarily paid on time, places an undue burden upon the overwhelming majority of taxpayers who fully and voluntarily pay their taxes on time. (8) In a report released in 2009 by the Internal Revenue Service, it was estimated that in 2005 (the most recent estimate available) the gross tax gap was $345,000,000,000 and the net tax gap (after the collection of late and enforced payments) was $290,000,000,000. (9) In 2009, for every $1 that was invested for the purposes of enforcing the tax code, the Internal Revenue Service returned an average of $4 to the Treasury, with some enforcement activities returning as much as $11 for every $1 invested, according to a report issued by the Office of Management and Budget. (10) By increasing overall tax enforcement efforts, the Internal Revenue Service can provide an estimated savings of $13,874,000,000 on an investment of $8,869,000,000 over the next 5 fiscal years and an estimated savings of $62,217,000,000 on an investment of $23,275,000,000 over the next 10 fiscal years, according to a report issued by the Office of Management and Budget. (11) For each $1 invested to increase the volume of in- person reemployment and eligibility assessments conducted by States for the Department of Labor's unemployment insurance program, approximately $3.19 will be saved over the next 10 years, according to a report issued by the Office of Management and Budget. (12) States will save the Department of Labor's unemployment insurance program an estimated $937,000,000 on an investment of $325,000,000 by increasing the volume of in- person reemployment and eligibility assessments over the next 5 fiscal years and an estimated savings of $2,296,000,000 on an investment of $720,000,000 over the next 10 fiscal years, according to a report issued by the Office of Management and Budget. (13) The investments described in the preceding paragraphs, if carried out, will save the taxpayers nearly $2,000,000,000 during fiscal year 2011, while laying the foundations for saving more than $35,000,000,000 over the next 5 fiscal years and more than $132,000,000,000 over the next 10 fiscal years. SEC. 3. DEFINITIONS. In this Act: (1) Agency head.--The term ``agency head'' means-- (A) the Attorney General; (B) the Commissioner of Social Security; (C) the Secretary of Health and Human Services; (D) the Secretary of Labor; and (E) the Secretary of the Treasury. (2) Director.--The term ``Director'' means the Director of the Office of Management and Budget. SEC. 4. INCREASING PROGRAM INTEGRITY EFFORTS. (a) Program Integrity Efforts.-- (1) In general.--Each agency head, in consultation with the Director, shall-- (A) identify existing Federal laws and regulations that may impede the ability to decrease waste, fraud, and abuse of funds appropriated to the agency head's agency; and (B) develop appropriate performance metrics to measure such agency's success in decreasing waste, fraud, and abuse. (2) Development of metrics.--In developing performance metrics referred to in paragraph (1)(B), each agency head shall-- (A) ensure that such metrics accurately demonstrate the effectiveness of the programs and activities referred to in subsection (d) in decreasing waste, fraud, and abuse; (B) provide estimates for points of diminishing returns on the funds provided under this Act to increase program integrity efforts; (C) identify optimal baselines for each of the metrics developed under this subsection and appropriate methods to measure variations from such baselines; and (D) set performance targets for each of fiscal years 2012 through 2020. (b) Innovation and Development.--Each agency head shall make appropriate accommodations for innovation and development to address the program integrity efforts for programs and activities referred to in subsection (d). (c) Reports.-- (1) In general.--Each agency head shall submit to Congress-- (A) not later than 6 months after the date of enactment of this Act, an interim report that includes a description of-- (i) what the performance metrics developed under subsection (a) will be measuring; and (ii) how such metrics will measure and provide an accurate analysis of the performance of the applicable programs and activities referred to in subsection (d); and (B) not later than 1 year after the date of enactment of this Act, a final report that sets forth the performance metrics developed under subsection (a). (2) Federal register; web site.--Each agency head shall publish in the Federal Register and make available on the agency Web site the performance metrics set forth in its final report submitted under paragraph (1)(B) not later than 30 days after such report is submitted. (3) Modification of performance metrics.--Not later than 30 days after the date on which any performance metrics developed under subsection (a) are modified by an agency head, such agency head shall submit to Congress a written notice describing such modifications. (4) OMB annual report.--Using the performance metrics developed under subsection (a), each year, beginning with the first fiscal year following the date on which the final reports are required to be submitted under paragraph (1)(B), on or after the first Monday in January but not later than the first Monday in February, the Director shall submit to Congress an annual report measuring the success of the agency head's agency in decreasing waste, fraud, and abuse of funds appropriated to such agency. Each annual report shall include a summary of and justifications for any modified performance metrics submitted to Congress pursuant to paragraph (3). (5) Referral of reports.--Each report submitted pursuant to this subsection shall be referred to the Committee on Appropriations and the Committee on the Budget of the House of Representatives and the Committee on Appropriations and the Committee on the Budget of the Senate, and any other appropriate committee of jurisdiction. (d) Authorization of Appropriations.-- (1) Department of health and human services; department of justice.--For the purposes of continuing and increasing program integrity efforts of the Department of Health and Human Services and the Department of Justice to prevent waste, fraud, and abuse of Medicare, Medicaid, and the Children's Health Insurance Program, there are authorized to be appropriated the following sums: (A) $561,000,000 for fiscal year 2011, to remain available through September 30, 2012. (B) $589,000,000 for fiscal year 2012, to remain available through September 30, 2013. (C) $619,000,000 for fiscal year 2013, to remain available through September 30, 2014. (D) $649,000,000 for fiscal year 2014, to remain available through September 30, 2015. (E) $682,000,000 for fiscal year 2015, to remain available through September 30, 2016. (F) $3,653,000,000 for the period encompassing fiscal years 2016 through 2020. (2) Social security administration.--For the purposes of continuing and increasing program integrity efforts of the Social Security Administration by increasing the volume of continuing disability reviews conducted pursuant to sections 221(i) and 1631(j) of the Social Security Act (42 U.S.C. 421(i), 1383(j), respectively), there are authorized to be appropriated to the Commissioner of Social Security the following sums: (A) $513,000,000 for fiscal year 2011, to remain available through September 30, 2012. (B) $642,000,000 for fiscal year 2012, to remain available through September 30, 2013. (C) $751,000,000 for fiscal year 2013, to remain available through September 30, 2014. (D) $924,000,000 for fiscal year 2014, to remain available through September 30, 2015. (E) $1,123,000,000 for fiscal year 2015, to remain available through September 30, 2016. (F) $6,299,000,000 for the period encompassing fiscal years 2016 through 2020. (3) Department of the treasury.--For purposes of continuing and increasing program integrity efforts of the Department of the Treasury by expanding tax enforcement activities, there are authorized to be appropriated to the Secretary of the Treasury the following sums: (A) $1,115,000,000 for fiscal year 2011, to remain available through September 30, 2012. (B) $1,357,000,000 for fiscal year 2012, to remain available through September 30, 2013. (C) $1,724,000,000 for fiscal year 2013, to remain available through September 30, 2014. (D) $2,105,000,000 for fiscal year 2014, to remain available through September 30, 2015. (E) $2,568,000,000 for fiscal year 2015, to remain available through September 30, 2016. (F) $14,406,000,000 for the period encompassing fiscal years 2016 through 2020. (4) Department of labor.--For purposes of continuing and increasing program integrity efforts of the Department of Labor by increasing the volume of in-person reemployment and eligibility assessments of unemployment insurance beneficiaries conducted by States, there are authorized to be appropriated to the Secretary of Labor the following sums: (A) $55,000,000 for fiscal year 2011, to remain available through September 30, 2012. (B) $60,000,000 for fiscal year 2012, to remain available through September 30, 2013. (C) $65,000,000 for fiscal year 2013, to remain available through September 30, 2014. (D) $70,000,000 for fiscal year 2014, to remain available through September 30, 2015. (E) $75,000,000 for fiscal year 2015, to remain available through September 30, 2016. (F) $395,000,000 for the period encompassing fiscal years 2016 through 2020.

Summary: Preventing Waste, Fraud, and Abuse Act of 2010 - Requires the Attorney General, the Commissioner of Social Security, and the Secretaries of Health and Human Services (HHS), Labor, and the Treasury (agency head), in consultation with the Director of the Office of Management and Budget (OMB), to: (1) identify existing federal laws and regulations that may impede the ability to decrease waste, fraud, and abuse of funds appropriated to their agencies; and (2) develop appropriate performance metrics to measure success in decreasing waste, fraud, and abuse. Directs each agency head, in developing performance metrics, to: (1) ensure that such metrics accurately demonstrate the effectiveness of specified programs and activities in decreasing waste, fraud, and abuse; (2) provide estimates for points of diminishing returns on the funds provided under this Act to increase program integrity efforts; (3) identify optimal baselines for each of the metrics developed and appropriate methods to measure variations from such baselines; and (4) set performance targets for each of FY2012-FY2020. Requires each agency head to make appropriate accommodations for innovation and development to address the program integrity efforts for programs and activities identified by this Act. Requires: (1) each agency head to submit an interim and final report to Congress at specified intervals and to publish in the Federal Register and make available on the agency website the performance metrics set forth in the final report; and (2) the Director of OMB to report annually measuring success in decreasing waste, fraud, and abuse of funds appropriated to an agency.


SECTION 1. SHORT TITLE. This Act may be cited as the ``Dru Sjodin National Sex Offender Public Database Act of 2004'' or ``Dru's Law''. SEC. 2. DEFINITION. In this Act: (1) Criminal offense against a victim who is a minor.--The term ``criminal offense against a victim who is a minor'' has the same meaning as in section 170101(a)(3) of the Jacob Wetterling Crimes Against Children and Sexually Violent Offender Registration Act (42 U.S.C. 14071(a)(3)). (2) Minimally sufficient sexual offender registration program.--The term ``minimally sufficient sexual offender registration program'' has the same meaning as in section 170102(a) of the Jacob Wetterling Crimes Against Children and Sexually Violent Offender Registration Act (42 U.S.C. 14072(a)). (3) Sexually violent offense.--The term ``sexually violent offense'' has the same meaning as in section 170101(a)(3) of the Jacob Wetterling Crimes Against Children and Sexually Violent Offender Registration Act (42 U.S.C. 14071(a)(3)). (4) Sexually violent predator.--The term ``sexually violent predator'' has the same meaning as in section 170102(a) of the Jacob Wetterling Crimes Against Children and Sexually Violent Offender Registration Act (42 U.S.C. 14072(a)). SEC. 3. AVAILABILITY OF THE NSOR DATABASE TO THE PUBLIC. (a) In General.--The Attorney General shall-- (1) make publicly available in a registry (in this Act referred to as the ``public registry'') from information contained in the the National Sex Offender Registry, via the Internet, all information described in subsection (b); and (2) allow for users of the public registry to determine which registered sex offenders are currently residing within a radius, as specified by the user of the public registry, of the location indicated by the user of the public registry. (b) Information Available in Public Registry.--With respect to any person convicted of a criminal offense against a victim who is a minor or a sexually violent offense, or any sexually violent predator, required to register with a minimally sufficient sexual offender registration program within a State, including a program established under section 170101 of the Jacob Wetterling Crimes Against Children and Sexually Violent Offender Registration Act (42 U.S.C. 14017(b)), the public registry shall provide, to the extent available in the National Sex Offender Registry-- (1) the name and any known aliases of the person; (2) the date of birth of the person; (3) the current address of the person and any subsequent changes of that address; (4) a physical description and current photograph of the person; (5) the nature of and date of commission of the offense by the person; (6) the date on which the person is released from prison, or placed on parole, supervised release, or probation; and (7) any other information the Attorney General considers appropriate. SEC. 4. RELEASE OF HIGH RISK INMATES. (a) Civil Commitment Proceedings.-- (1) In general.--Any State that provides for a civil commitment proceeding, or any equivalent proceeding, shall issue timely notice to the attorney general of that State of the impending release of any person incarcerated by the State who-- (A) is a sexually violent predator; or (B) has been deemed by the State to be at high-risk for recommitting any sexually violent offense or criminal offense against a victim who is a minor. (2) Review.--Upon receiving notice under paragraph (1), the State attorney general shall consider whether or not to institute a civil commitment proceeding, or any equivalent proceeding required under State law. (b) Monitoring of Released Persons.-- (1) In general.--Each State shall intensively monitor, for not less than 1 year, any person described under paragraph (2) who-- (A) has been unconditionally released from incarceration by the State; and (B) has not been civilly committed pursuant to a civil commitment proceeding, or any equivalent proceeding under State law. (2) Applicability.--Paragraph (1) shall apply to-- (A) any sexually violent predator; or (B) any person who has been deemed by the State to be at high-risk for recommitting any sexually violent offense or criminal offense against a victim who is a minor. (c) Compliance.-- (1) Compliance date.--Each State shall have not more than 3 years from the date of enactment of this Act in which to implement the requirements of this section. (2) Ineligibility for funds.--A State that fails to implement the requirements of this section, shall not receive 25 percent of the funds that would otherwise be allocated to the State under section 20106(b) of the Violent Crime Control and Law Enforcement Act of 1994 (42 U.S.C. 13706(b)). (3) Reallocation of funds.--Any funds that are not allocated for failure to comply with this section shall be reallocated to States that comply with this section. Passed the Senate November 19, 2004. Attest: EMILY J. REYNOLDS, Secretary.

Summary: Dru Sjodin National Sex Offender Public Database Act of 2004 or Dru's Law - Directs the Attorney General to: (1) make publicly available in a registry via the Internet, from information contained in the National Sex Offender Registry, specified information about sexually violent predators and persons convicted of a sexually violent offense or a criminal offense against a minor, who are required to register with a minimally sufficient State sexual offender registration program; and (2) allow registry users to identity offenders who are currently residing within a radius of the location indicated by the user. Requires registry information to include the offender's name, address, date of birth, physical description, and photograph, the nature and date of commission of the offense, and the date on which the person is released from prison or placed on parole, supervised release, or probation Requires: (1) any State that provides for a civil commitment proceeding to notify the State attorney general of the impending release of a sexually violent predator or a person has been deemed to be at high-risk for recommitting any sexually violent offense or criminal offense against a minor; (2) the State attorney general to consider instituting a civil commitment proceeding; and (3) each State to intensively monitor, for at least a year, any such person who has been unconditionally released by the State and who has not been civilly committed. Makes a State that fails to implement Act requirements ineligible to receive 25 percent of funds that would otherwise be allocated to it under the Violent Crime Control and Law Enforcement Act of 1994.


SECTION 1. CAPITAL GRANTS FOR RAIL LINE RELOCATION PROJECTS. (a) Establishment of Program.-- (1) Program requirements.--Chapter 201 of title 49, United States Code, is amended by adding at the end of subchapter II the following new section: ``Sec. 20154. Capital grants for rail line relocation projects ``(a) Establishment of Program.--The Secretary of Transportation shall carry out a grant program to provide financial assistance for local rail line relocation projects. ``(b) Eligibility.--A State is eligible for a grant under this section for any project for the improvement of the route or structure of a rail line passing through a municipality of the State that-- ``(1) is carried out for the purpose of mitigating the adverse effects of rail traffic on safety, motor vehicle traffic flow, or economic development in the municipality; ``(2) involves a lateral or vertical relocation of any portion of the rail line within the municipality to avoid a closing of a grade crossing or the construction of a road underpass or overpass; and ``(3) meets the costs-benefits requirement set forth in subsection (c). ``(c) Costs-Benefits Requirement.--A grant may be awarded under this section for a project for the relocation of a rail line only if the benefits of the project for the period equal to the estimated economic life of the relocated rail line exceed the costs of the project for that period, as determined by the Secretary considering the following factors: ``(1) The effects of the rail line and the rail traffic on motor vehicle and pedestrian traffic, safety, and area commerce if the rail line were not so relocated. ``(2) The effects of the rail line, relocated as proposed, on motor vehicle and pedestrian traffic, safety, and area commerce. ``(3) The effects of the rail line, relocated as proposed, on the freight and passenger rail operations on the rail line. ``(d) Considerations for Approval of Grant Applications.--In addition to considering the relationship of benefits to costs in determining whether to award a grant to an eligible State under this section, the Secretary shall consider the following factors: ``(1) The capability of the State to fund the rail line relocation project without Federal grant funding. ``(2) The requirement and limitation relating to allocation of grant funds provided in subsection (e). ``(3) Equitable treatment of the various regions of the United States. ``(e) Allocation Requirements.-- ``(1) Grants not greater than $20,000,000.--At least 50 percent of all grant funds awarded under this section out of funds appropriated for a fiscal year shall be provided as grant awards of not more than $20,000,000 each. ``(2) Limitation per project.--Not more than 25 percent of the total amount available for carrying out this section for a fiscal year may be provided for any one project in that fiscal year. ``(f) Federal Share.--The total amount of a grant awarded under this section for a rail line relocation project shall be 90 percent of the shared costs of the project, as determined under subsection (g)(4). ``(g) State Share.-- ``(1) Percentage.--A State shall pay 10 percent of the shared costs of a project that is funded in part by a grant awarded under this section. ``(2) Forms of contributions.--The share required by paragraph (1) may be paid in cash or in kind. ``(3) In-kind contributions.--The in-kind contributions that are permitted to be counted under paragraph (2) for a project for a State are as follows: ``(A) A contribution of real property or tangible personal property (whether provided by the State or a person for the State). ``(B) A contribution of the services of employees of the State, calculated on the basis of costs incurred by the State for the pay and benefits of the employees, but excluding overhead and general administrative costs. ``(C) A payment of any costs that were incurred for the project before the filing of an application for a grant for the project under this section, and any in- kind contributions that were made for the project before the filing of the application, if and to the extent that the costs were incurred or in-kind contributions were made, as the case may be, to comply with a provision of a statute required to be satisfied in order to carry out the project. ``(4) Costs not shared.-- ``(A) In general.--For the purposes of subsection (f) and this subsection, the shared costs of a project in a municipality do not include any cost that is defrayed with any funds or in-kind contribution that a source other than the municipality makes available for the use of the municipality without imposing at least one of the following conditions: ``(i) The condition that the municipality use the funds or contribution only for the project. ``(ii) The condition that the availability of the funds or contribution to the municipality is contingent on the execution of the project. ``(B) Determinations of the secretary.--The Secretary shall determine the amount of the costs, if any, that are not shared costs under this paragraph and the total amount of the shared costs. A determination of the Secretary shall be final. ``(h) Multistate Agreements To Combine Amounts.--Two or more States (not including political subdivisions of States) may, pursuant to an agreement entered into by the States, combine any part of the amounts provided through grants for a project under this section if-- ``(1) the project will benefit each of the States entering into the agreement; and ``(2) the agreement is not a violation of a law of any such State. ``(i) Regulations.--The Secretary shall prescribe regulations for carrying out this section. ``(j) State Defined.--In this section, the term `State' includes, except as otherwise specifically provided, a political subdivision of a State. ``(k) Authorization of Appropriations.--There are authorized to be appropriated to the Secretary for use in carrying out this section $350,000,000 for each of the fiscal years 2004 through 2008.''. (2) Clerical amendment.--The table of sections at the beginning of such chapter is amended by adding at the end the following new item: ``20154. Capital grants for rail line relocation projects.''. (b) Regulations.-- (1) Interim regulations.--Not later than October 1, 2003, the Secretary of Transportation shall issue temporary regulations to implement the grant program under section 20154 of title 49, United States Code, as added by subsection (a). Subchapter II of chapter 5 of title 5, United States Code, shall not apply to the issuance of a temporary regulation under this subsection or of any amendment of such a temporary regulation. (2) Final regulations.--Not later than April 1, 2004, the Secretary shall issue final regulations implementing the program.

Summary: Amends Federal transportation law to direct the Secretary of Transportation to carry out a grant program to provide financial assistance to States for 90 percent of the cost of local rail line relocation projects.


SECTION 1. SHORT TITLE; REFERENCE. (a) Short Title.--This Act may be cited as the ``Indian Gaming Regulatory Act Amendments of 1994''. (b) Reference.--Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.). SEC. 2. DEFINITIONS. (a) Class II Gaming.--(1) Clause (i) of section 4(7)(A) (25 U.S.C. 2703(7)(A)) is amended-- (A) by striking ``(if played in the same location)''; and (B) by striking ``bingo, and'' and inserting ``bingo (whether or not electronic, computer, or other technologic aids are used in connection therewith so long as the fundamental characteristics of the game remain the same), and''. (2) Clause (ii) of section 4(7)(A) (25 U.S.C. 2703(7)(A)) is amended by striking ``that--'' and all that follows through ``such card games.'' at the end thereof and inserting a period. (3) Clause (ii) of section 4(7)(B) (25 U.S.C. 2703(7)(B)) is amended by inserting ``, except electronic or technological aids used in connection with class II games,'' after ``game of chance''. (4) Subparagraph (C) of section 4(7) (25 U.S.C. 2703(7)) is amended by striking ``Chairman'' and inserting ``Commission''. (5) Paragraph (7) of section 4 (25 U.S.C. 2703) is amended by striking subparagraphs (D), (E), and (F). (6) Paragraph (8) of section 4 (25 U.S.C. 2703) is amended by inserting at the end ``and means manufacturing and assembly of gaming devices (defined as gambling devices by section 5 of the Act of January 2, 1951 (15 U.S.C. 1175)).''. (b) Compact; Electronic Facsimile.--Section 4 of the Act (25 U.S.C. 2703) is amended by adding at the end the following new paragraphs: ``(11) The term `Compact' means the regulatory regime for operating class III gaming entered into by a tribe and the Secretary. ``(12) The term `electronic facsimile' means a copy of some or all of the fundamental elements of a game, where the electronic or electromechanical device alters the game rather than simply electronically replicating the fundamental elements of a game.''. (c) Section 6 of Public Law 101-301.--Section 6 of Public Law 101- 301 (25 U.S.C. 2703 note; 104 Stat. 209) is repealed. SEC. 3. POWERS OF THE CHAIRMAN. Section 6(b) of the Act (25 U.S.C. 2705(b)) is amended to read as follows: ``(b) Prior to taking any action set forth in subsection (a) of this section, the Chairman shall, in good faith, consult with the Tribe which has jurisdiction over the gaming activity in dispute and attempt to resolve the dispute in a manner that avoids such actions. Only after the Commission has concluded that cooperative resolution has been adequately pursued and that further consultation would be futile, may the Chairman take such actions.''. SEC. 4. POWERS OF THE COMMISSION. Section 7 (25 U.S.C. 2706) is amended-- (1) in subsection (a)(2), by inserting ``appropriate but not punitive'' after ``collection of''; (2) in subsections (b)-- (A) in paragraph (1), by inserting ``and class III gaming, where a Compact so provides, where gaming is'' after ``class II gaming''; and (B) in paragraph (2), by inserting ``and class III gaming, where a Compact so provides, where gaming'' after ``class II gaming''; and (3) by striking subsection (c). SEC. 5. INTERIM AUTHORITY TO REGULATE GAMING. Section 10 of the Act (25 U.S.C. 2709) is repealed. SEC. 6. TRIBAL GAMING ORDINANCES. (a) Class II Gaming.--Subsection (b) of section 11 (25 U.S.C. 2710) is amended by amending subparagraph (A) of paragraph (4) to read as follows: ``(A) A tribal ordinance or resolution may provide for the licensing or regulation of Indian charitable class II gaming activities on Indian lands up to the same level and scope as permitted by tribal class II gaming. A tribal ordinance or resolution may provide for the licensing or regulation of class II gaming activities owned by any person or entity other than the Indian tribe and conducted on Indian lands, only if the tribal licensing requirements include the requirements described in the subclauses of subparagraph (B)(i) and are at least as restrictive as those established by State law governing similar gaming within the jurisdiction of the State within which such Indian lands are located.''. (b) Regulation of Class II Gaming.--Subsection (c)(3) of section 11 (25 U.S.C. 2710) is amended by inserting ``, whether by management contract or otherwise,'' after ``class II gaming activity'' in the matter preceding subparagraph (A). (c) Class III Gaming.--Section 11(d) (25 U.S.C. 2710(d)) is amended-- (1) in paragraph (1), by amending subparagraphs (B) and (C) to read as follows: ``(B) located in a State where the requirements of paragraphs (6)(A) and (B) are satisfied and the gaming activity is eligible for inclusion in a Compact, and ``(C) conducted in conformance with a Compact that is in effect.''; (2) in paragraph (2)-- (A) by striking ``Tribal-State compact entered into under paragraph (3) by the Indian tribe'' in subparagraph (C) and inserting ``Compact''; (B) by striking ``Tribal-State compact'' in subparagraph (D)(iii)(I) and inserting ``Compact''; (3) by amending paragraph (3) to read as follows: ``(3)(A)(i) Any Indian tribe having jurisdiction over the Indian lands upon which a class III gaming activity is to be conducted shall request the Secretary to enter into a Compact with the tribe. Such request shall specify the gaming activity or activities to be governed by the Compact. ``(ii) Negotiations between the tribe and the Secretary shall be completed within 180 days, subject to the procedures required by paragraph (5)(B) that the Secretary and the tribe shall utilize to resolve disputes arising from negotiations. ``(iii) The Compact shall be effective upon publication in the Federal Register by the Secretary. ``(iv) The Commission shall pursuant to section 7 of this Act monitor class III gaming to the extent provided by each Compact as published by the Secretary. ``(B) Any Compact entered into under subparagraph (A) may include provisions relating to-- ``(i) the adoption of any of the criminal and civil laws and regulations of the Indian tribe, or with tribal consent, of the State, that are directly related to, and necessary for, the licensing and regulation of such activity; ``(ii) the assessment by the Secretary of such activities in such amounts as are necessary to defray the costs of regulating such activity; ``(iii) remedies for breach of contract; ``(iv) standards for the operation of such activity and maintenance of the gaming facility, including licensing; and ``(v) any other subjects that are reasonably related to the operation of gaming activities.''. (4) by striking out paragraphs (4) and (5); (5) by striking paragraph (8) and redesignating paragraph (9) as paragraph (11); and (6) by striking paragraphs (6) and (7) and inserting the following: ``(4) The provisions of section 5 of the Act of January 2, 1951 (25 Stat. 1175), shall not apply to any gaming on Indian lands, or to manufacturing and assembly of gaming devices on Indian lands. ``(5)(A) The United States district courts shall have jurisdiction over-- ``(i) any cause of action for a declaratory judgment arising from the failure of an Indian tribe and the Secretary to resolve disputes pursuant to paragraph (3) of this section, ``(ii) any cause of action initiated by United States or Indian tribe to enjoin a class III gaming activity located on Indian tribes and conducted in violation of any Compact entered into under paragraph (3) that is in effect, and ``(iii) any cause of action initiated by the Secretary or a tribe to enforce provisions of Compacts. ``(B) Notwithstanding any declaratory judgment action pending under paragraph (6), a tribe and the Secretary may negotiate and proceed to mediation under the Act on issues not subject to the declaratory judgment action. ``(6)(A) No later than 120 days after the Tribe has notified the Secretary its election to negotiate a Compact, or no later than such longer period as may be extended in writing by the parties, either party may initiate an action in Federal district court for a declaration whether a gaming activity is subject to Compact negotiation under this Act. In any such declaratory action, the court shall declare that the gaming activity as a matter of Federal law shall be the subject of negotiation if it finds that-- ``(i) the gaming activity is not prohibited as a matter of State criminal law and public policy; or ``(ii) if the gaming activity is subject to prosecution and criminal sanction as a matter of State law, the gaming activity meets one or more of the following criteria-- ``(I) its principal characteristics are substantially similar to principal characteristics of gaming activities that are not subject to prosecution and criminal sanction as a matter of State law; ``(II) State law permits the gaming activity subject to regulation; ``(III) as a matter of State law some person, organization, or entity within the State may engage in the gaming activity for some purpose; and ``(IV) there is a pervasive pattern of nonenforcement of the prohibition of such gaming. ``(B) The Compact also shall include such provisions which best meet the objectives of this Act and are consistent with any declaratory judgment issued pursuant to this paragraph. ``(7)(A) Subject to subparagraph (B), if the parties agree on a Compact, the Secretary shall adopt such Compact and publish the Compact in the Federal Register. ``(B) The Compact referred to in subparagraph (A) shall not be approved by the Secretary-- ``(i) unless it contains provisions relating to internal controls of cash flow transactions, recordkeeping and reporting, accounting, security, and licensing of employees; and ``(ii) if the Compact does not violate-- ``(I) any provisions of this Act; ``(II) any other provision of Federal law that does not relate to jurisdiction over gaming on Indian reservations; or ``(III) the trust obligations of the United States to Indians. ``(8) Except for an appeal under chapter 7 of title 5, United States Code, publication of a Compact pursuant to this subsection which permits a class III gaming activity shall be conclusive that such class III gaming is an activity subject to negotiations where the gaming is to be conducted, in any matter under consideration by the Commission or a Federal court. ``(9) If the parties do not agree on a Compact under this subsection before the date that is 45 days after the expiration of the 180-day period with respect to the last Tribal Compact proposal during the 180-day period, the Compact shall be considered approved, but only to the extent that the Compact is consistent with the provisions of this Act. ``(10) The Secretary shall publish in the Federal Register notice of any Compact that has been approved, or considered to have been approved, under this subsection. Failure of the Secretary to publish pursuant to this subsection shall not affect the legality of the compact, which shall be treated as if notice was timely and properly published.''; (7) in paragraph (11) (as so redesignated), by striking ``subsections (b), (c), (d), (f), (g), and (h) of''. SEC. 7. REVIEW OF EXISTING ORDINANCES AND CONTRACTS. (a) Management Contract.--Paragraph (3) of section 12(a) (25 U.S.C. 2711(a)) is amended by striking ``all collateral agreements to such contract that relate to the gaming activity'' and inserting ``all other agreements that comprise whole or partial consideration of the parties entering into the management agreement''. (b) Review.--Paragraph (1) of section 13(c) (25 U.S.C. 2712(c)) is amended by striking ``all collateral agreements,'' and inserting ``all related agreements involving the same parties, financing or leasing agreements, or any agreement that pertains to significant management functions or responsibilities,''. SEC. 8. CIVIL PENALTIES. (a) Date From Which Fines Run.--Paragraph (1) of section 14(a) (25 U.S.C. 2713(a)) is amended by adding at the end the following: ``Fines imposed under this paragraph may not run from before the date of notice of violation.''. (b) Informal Dispute Resolution.--Paragraph (2) of section 14(a) (25 U.S.C. 2713(a)) is amended by inserting ``an opportunity for resolving disputes informally and'' after ``provide''. SEC. 9. GAMING ON LANDS ACQUIRED AFTER DATE OF ENACTMENT. (a) Repeal of Concurrence by Governor.--Subparagraph (A) of section 20(b)(1) (25 U.S.C. 2719(b)(1)) is amended by striking ``, but only'' and all that follows through ``determination''. (b) Application of Internal Revenue Code.--Paragraph (1) of section 20(d) (25 U.S.C. 2719(d)) is amended-- (1) by inserting ``, and the exemption from Federal taxes provided to the States with respect to any gaming activity,'' after ``wagering operations'' the first place it appears; and (2) by striking ``or under a Tribal-State'' and all that follows through ``effect,'' and inserting ``and the reporting of cash transactions,''. SEC. 10. CRIMINAL PENALTIES. Subsections (c)(2) and (d) of section 1166 of title 18, United States Code, are each amended by striking ``Tribal State compact'' and inserting ``Compact''. SEC. 11. APPLICABILITY OF FEDERAL LAWS TO CLASS III GAMING. The Act (25 U.S.C. 2701 et seq.) is amended by adding at the end the following: ``miscellaneous ``Sec. 25. (a) Class III gaming activities that are as a matter of Federal law, lawfully in any jurisdiction on the date of the enactment of this section, shall, notwithstanding the provisions of this Act, remain lawful for purposes of section 11(d)(6) of this Act. ``(b) For purposes of Federal law, the laws in effect on the date that a tribe notifies the Secretary (or prior to 1993, notified the State) that it wishes to negotiate a Compact, shall be the basis for determining the scope of gaming in section 11(d) of this Act for any Compact, or for procedures in lieu of a compact. ``(c) For purposes of this Act, any change in State law which occurs after the earlier of (1) a Tribe's request to the State for negotiations of a Tribal-State Compact pursuant to this Act, or (2) the Tribe's request to the Secretary for a Compact pursuant to this Act, shall not have any affect upon the terms and conditions of the Compact, or upon the obligations of any government entity pursuant to this Act. ``(d) Notwithstanding any provision of this Act, tribes with Indian lands in the Eastern District of Washington shall be entitled to conduct class III gaming activities without a Compact, as long as such games are limited to the nature and scope of gaming activities in effect on or prior to November 1, 1994, so long as such activities are otherwise in compliance with this Act. ``(e) Notwithstanding any provision of this Act, tribes with Indian lands in Wisconsin shall be entitled to conduct class III gaming activities consistent with the decision of the Federal district court in Lac du Flambeau Band of Lake Superior Chippewa v. State of Wisconsin, 770 F. Supp. 480 (W.D. Wis. 1991).''. SEC. 12. EFFECTIVE DATE. (a) Tribal-State Compacts.--Notwithstanding any other provision of this Act or an amendment made by this Act, all Tribal-State Compacts approved by the Secretary of the Interior, and procedures for governance in lieu of Compacts promulgated by the Secretary, under the Indian Gaming Regulatory Act as in effect on the date before the date of enactment of this Act, shall continue to be fully operative and binding on the parties and shall not be subject to revision unless agreed to by the parties. (b) Pending Negotiations of Tribal-State Compacts.--Any tribe that requested a State to negotiate a Tribal-State Compact prior to the enactment of this Act and has not completed that process may request the Secretary to enter into a Compact as specified under section 11(d)(3)(A) of the Indian Gaming Regulatory Act, as provided by the amendments made by this Act. (c) Class III Gaming Under Certain Department of the Interior Regulations.--Notwithstanding any provision of the amendments made by this Act, tribes operating class III gaming pursuant to regulations promulgated by the Department of the Interior and in effect on or before the date of enactment of this Act shall be entitled to conduct class III gaming activities without the approval of a Compact, consistent with such regulations. (d) Definition.--For the purposes of this section, the term ``Tribal-State Compact'' has the same meaning given such term in the Indian Gaming Regulatory Act, as such Act was in effect on the date before the date of enactment of this Act.

Summary: Indian Gaming Regulatory Act Amendments of 1994 - Amends the Indian Gaming Regulatory Act to include manufacturing and assembly of gaming devices within the definition of "class III gaming." Defines "Compact" as the class III gaming regulatory regime. Directs the Chairman of the National Indian Gaming Commission (Commission) to consult with an affected tribe before taking action authorized by such Act. Authorizes the Commission to monitor class III gaming where a Compact so provides. Authorizes class II tribal gaming ordinances to regulate non-Indian gaming activities on Indian lands to the same level as class III regulations permit. Sets forth Compact provisions. Applies the Federal tax exemption given to State gaming activities to Indian gaming activities. Applies Federal laws to class III gaming activities.


SECTION 1. SHORT TITLE. This Act may be cited as the ``Sugar Competitiveness Act of 1995''. SEC. 2. MARKET-ORIENTED SUGAR PROGRAM LOANS. (a) In General.--Section 206 of the Agricultural Act of 1949 (7 U.S.C. 1446g) is amended-- (1) by striking the section heading, subsections (a) through (h), and subsection (j); (2) by inserting before subsection (i) the following: ``SEC. 206. RECOURSE LOANS TO PROCESSORS OF SUGARCANE AND SUGAR BEETS. ``(a) Sugarcane Processor Loans.-- ``(1) In general.--The Secretary shall make recourse loans available to processors of sugarcane on raw cane sugar processed from the 1995 and succeeding crops of sugarcane. ``(2) Loan rates.--Recourse loans under this subsection shall be make at the rate of 18 cents per pound of raw cane sugar for the 1995 crop of sugarcane; 16 cents per pound of raw cane sugar for the 1996 crop of sugarcane; 14 cents per pound for the 1997 crop of sugarcane; and 12 cents per pound for the 1998 and succeeding crops of sugarcane. ``(b) Sugar Beet Processor Loans.-- ``(1) In general.--The Secretary shall make recourse loans available to processors of sugar beets on refined sugar processed from the 1995 and succeeding crops of sugar beets. ``(2) Loan rates.--Recourse loans under this subsection for sugar refined from a crop of sugar beets shall be made at a rate, per pound of refined sugar, that reflects-- ``(A) an amount that bears the same relation to the loan rate in effect under subsection (a)(2) as the weighted average of producer returns for sugar beets bears to the weighted average of producer returns for sugarcane, expressed on a cents per pound basis for refined beet sugar and raw cane sugar, for the most recent 5-year period for which data are available; plus ``(B) an amount that covers sugar beet processor fixed marketing expenses. ``(c) Administrative Rules.-- ``(1) National loan rates.--Recourse loans under this section shall be made available at all locations nationally at the rates specified in this section, without adjustment to provide regional differentials. ``(2) Length of loans.--Each recourse loan made under this section shall be for a term of 3 months, and may be extended for additional 3-month terms, except that-- ``(A) no loan may have a cumulative term in excess of 9 months or a term that extends beyond September 30 of the fiscal year in which the loan is made; and ``(B) a processor may terminate a loan and redeem the collateral for the loan at any time by payment in full of principal, interest, and fees then owing. ``(d) Prohibition on Price Support.--The Secretary may not make price support available, whether in the form of nonrecourse loans, payments, purchases, or other operations, for the 1995 or subsequent crops of sugarcane or sugar beets by using the funds of the Commodity Credit Corporation. ``(e) Use of Commodity Credit Corporation.--The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out this section.''. (b) Effect on Existing Loans.-- (1) Except as provided in paragraph (2), section 206 of the Agricultural Act of 1949 (7 U.S.C. 1446g), as in effect on the day before the date of the enactment of this Act, shall continue to apply with respect to nonrecourse loans made under such section before such date. (2) Any loan in effect on the day before the date of the enactment of this Act that is extended on or after the date of enactment shall be converted, when extended, into a recourse loan at the loan rate specified in section 206(a), as amended by this Act, and any loan made on or after the date of enactment shall be a recourse loan. (c) Extension and Modification of Marketing Assessment.--Subsection (i) of the Agricultural Act of 1949 (7 U.S.C. 1446g) is amended-- (1) by striking ``(i)'' and inserting ``(f)''; (2) in paragraph (1)-- (A) by striking ``1992 through 1996'' and inserting ``1992 through 2003''; (B) in subparagraph (A), by striking ``subsection (b)'' and inserting ``subsection (a)''; and (C) in subparagraph (B)-- (i) by striking ``subsection (b)'' and inserting ``subsection (a)''; (ii) by striking ``1998'' and inserting ``2003''; (iii) by striking ``1.1 percent'' and inserting ``1.5 percent''; and (iv) by striking ``(but not more than .198 cents per pound of raw cane sugar)'' and inserting ``as of October 1, 1995''; (3) in paragraph (2)-- (A) by striking ``1992 through 1996'' and inserting ``1992 through 2003''; and (B) in subparagraph (B)-- (i) by striking ``1998'' and inserting ``2003''; (ii) by striking ``1.1794 percent'' and inserting ``1.6083 percent''; (iii) by striking ``(but not more than .2123 cents per pound of beet sugar)'' and inserting ``as of October 1, 1995''; and (iv) adding at the end the following new paragraph: ``(7) Imported sugar.--Effective only for imports of raw cane sugar and refined sugar during the 1996 through 2003 fiscal years, each exporter of raw cane sugar or refined sugar to be imported into the United States shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal-- ``(A) in the case of imports of raw cane sugar, 1.5 percent of the loan level established under subsection (a) per pound of raw cane sugar as of October 1, 1995; ``(B) in the case of imports of refined sugar, 1.6083 percent of the loan level established under subsection (b) per pound of refined sugar as of October 1, 1995.''. (d) Conforming Amendments.-- (1) Price support for designated nonbasic agricultural commodities.--Section 201(a) of the Agricultural Act of 1949 (7 U.S.C. 1446(a)) is amended by striking out ``milk, sugar beets, and sugarcane'' and inserting in lieu thereof ``and milk''. (2) Price support benefits to producers.-- (A) In general.--Section 401(e) of such Act (7 U.S.C. 1421(e)) is amended by striking out ``(1)'' in paragraph (1) and striking out paragraph (2). (B) Technical amendment.--Section 405(b) of such Act (7 U.S.C. 1425(b)) is amended by striking out the last sentence. (3) Title iii of the agricultural act of 1949.--Section 301 of the Agricultural Act of 1949 (7 U.S.C. 1447) is amended by inserting ``(other than sugarcane and sugar beets)'' before ``at a level''. (4) Powers of commodity credit corporation.--Section 5(a) of the Commodity Credit Corporation Charter Act (15 U.S.C. 714c(a)) is amended by inserting ``(except for sugarcane and sugar beets of the 1996 and subsequent crops)'' after ``agricultural commodities''. (5) Section 32 activities.--The second sentence of the first paragraph of section 32 of the Act of August 24, 1935 (7 U.S.C. 612c) is amended by inserting ``(other than sugarcane and sugar beets)'' after ``commodity'' the last place it appears. (e) CCC Sales Price Restrictions.--Section 407(c) of such Act (7 U.S.C. 1427(c)) is amended by adding at the end a new paragraph as follows: ``(6) Sugar.--The Corporation may sell for unrestricted use sugar surrendered to it under the loan programs provided for in section 351 at such price as the Corporation determines appropriate to maintain and expand export and domestic markets for sugar and to avoid undue disruption of commercial sales of sugar.''. (f) Assurance of Adequate Supplies of Sugar.--Effective October 1, 1996, section 902(a) of the Food Security Act of 1985 (7 U.S.C. 1446g note) is amended to read as follows: ``Beginning with the quota year for sugar imports that begins after the 1994/1995 quota year, the President and the Secretary of Agriculture shall use all authorities available to the President and the Secretary, as the case may be, to ensure that adequate supplies of raw cane sugar are made available to the United States market at prices no greater than the higher of-- ``(1) the world sugar price (adjusted to a delivered basis); or ``(2) the raw cane sugar loan rate in effect under section 206(a) of the Agricultural Act of 1949 (plus interest).''. SEC. 3. TERMINATION OF MARKETING QUOTA AND ALLOTMENTS. (a) Termination.-- (1) In general.--Subject to paragraph (2), part VII of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa-1359jj) is repealed. (2) Effective date.--Paragraph (1) shall be effective October 1, 1996, for sugar marketed on or after such date. (b) Conforming Amendment.--Section 344(f)(2) of such Act (7 U.S.C. 1344(f)(2)) is amended by striking out ``sugar cane for sugar; sugar beets for sugar;''.

Summary: Sugar Competitiveness Act of 1995 - Amends the Agricultural Act of 1949 to replace current sugar price support provisions with recourse loans to sugarcane and sugar beet producers. Reduces sugarcane loan rates from 18 cents per pound to 12 cents per pound over three years. Prohibits sugar price supports. Provides for the conversion of any current nonrecourse loans that are extended into recourse loans. Extends and increases sugar marketing assessment provisions. Includes imported sugar within such provisions' scope. Provides for the regulation of imported raw sugarcane at prices not greater than the world sugar price or the raw sugarcane loan rate. Amends the Agricultural Adjustment Act of 1938 to terminate sugar marketing quota and allotment provisions.


SECTION 1. POTENTIAL PROBLEM OFFICER EARLY WARNING PROGRAMS. (a) Declarations.--The Congress finds and declares that-- (1) police brutality is a problem of deep concern; and (2) the Congress has an interest in assisting local units in creating early warning systems that are effective, resilient, and affordable to the local units. (b) Definition.--In this Act, ``potential problem officer early warning program'' means a system of procedures that is designed to-- (1) identify police officers who have been the subject of an excessive number of legitimate complaints of excessive use of force by members of the public or have otherwise demonstrated the potentiality of having difficulty dealing appropriately with members of the public; (2) provide assistance to such officers in avoiding such difficulty in the future, including the provision of training in communication techniques, conflict resolution, and stress management; and (3) apply discipline where appropriate. (c) Evaluation and Report.-- (1) Evaluation.--The Attorney General, acting through the Director of the National Institute of Justice, shall-- (A) conduct an evaluation of potential problem officer early warning programs that are being or have been utilized by units of local government, including analyses of-- (i) the effect on such programs of factors such as the population and geographic size and characteristics of a jurisdiction and the ability of such programs to adjust in a resilient manner to changes in such factors; (ii) the potential savings that local governments can realize from the operation of such programs as a result of the reduction in the number of citizen complaints, the reduction in the number of occasions in which it is necessary to change the duty assignments of or to dismiss (and replace) problem officers, and other beneficial effects; (iii) the positive and negative effects that such programs may have on the law enforcement system, such as their effect on police morale and the ability of police officers to perform their law enforcement duties; (iv) the ability of such programs to ensure the exoneration of officers whose conduct is proper while identifying those whose conduct indicates the necessity or desirability of prophylactic action; and (v) the costs of establishing such programs and of operating and monitoring the effectiveness of such programs on a permanent basis; (B) develop a model early warning system that is effective, capable of adjusting to changing circumstances, and affordable to units (or combinations of units) of local government of jurisdictions (or combinations of jurisdictions) with populations of 50,000 or more; and (C) prepare and disseminate to the law enforcement community, including Federal, State and local law enforcement agencies, findings and recommendations made as a result of the evaluation for the establishment of such programs. (2) Report.--On or before October 1, 1994, the Attorney General shall submit to Congress a report addressing the matters described in paragraph (1), with recommendations concerning the need or appropriateness of further action by the Federal Government. (3) Expenses.--Expenses incurred in conducting the evaluation and developing a model potential problem officer early warning system under paragraph (1) shall be paid out of funds that are available to the National Institute of Justice and not specifically appropriated for other purposes, to the extent that such funds can be made available without increasing the amount of appropriations for the National Institute of Justice for any fiscal year over the amount appropriated for fiscal year 1993. (d) Sense of Congress.--It is the sense of Congress that-- (1) the Attorney General should, under existing authorities and using appropriations available for those authorities and funds otherwise available to the Attorney General, make seed money grants of up to $25,000 each to units (or combinations of units) of local government of jurisdictions (or combinations of jurisdictions) of a population of 50,000 or more for the purpose of assisting the police department (or other entity that performs the functions of a police department) in establishing a potential problem officer early warning program; (2) a unit of local government should be eligible to receive a grant described in subsection (c) if-- (A) its police department (or other entity that performs the functions of a police department) adopts and enforces-- (i) a written policy prohibiting the use of unreasonable or unnecessary physical force by law enforcement officers; and (ii) written procedures for receiving and investigating citizen complaints alleging misconduct by law enforcement officers; (B) the program to be funded includes provisions for continuing self-monitoring of the program, including the provision to the Attorney General of information that may be useful in performing the evaluation and developing the model program described in subsection (d)(1); and (C) the grant recipient demonstrates a commitment to the long-term continuance of the program and the reduction of the incidence of police brutality; (3) a policy described in paragraph (2)(A) should-- (A) restrict the use of force to circumstances authorized by law and to the degree minimally necessary to accomplish a lawful law enforcement purpose; and (B) include procedures for reporting and monitoring the use of force by officers within the jurisdiction of the department; (4) the procedures described in paragraph (2)(B) should require that complainants-- (A) be allowed to receive copies of their complaints; (B) be informed of the findings, disposition, and specific disciplinary actions, if any, resulting from their complaints; and (C) be permitted to attend any disciplinary hearings that result from their complaints; (5) a unit (or combination of units) of local government should receive grants described in this subsection in amounts that do not exceed $50,000 in the aggregate; and (6) the total amount of grants described in this subsection that are made during fiscal years 1994, 1995, 1996, 1997, and 1998 should not exceed $5,000,000.

Summary: Directs the Attorney General to: (1) conduct an evaluation of potential problem officer early warning programs utilized by local governments; (2) develop a model early warning system that is effective, capable of adjusting to changing circumstances, and affordable to local governments of jurisdictions with populations of 50,000 or more; and (3) prepare and disseminate findings and recommendations to the law enforcement community for the establishment of such programs. Sets forth provisions regarding: (1) reporting requirements; and (2) payment of expenses incurred in conducting the evaluation and developing a model system. Expresses thhe sense of the Congress that: (1) the Attorney General should make seed money grants of up to $25,000 to local governments for assisting in establishing such programs; and (2) local governments should be eligible if they adopt and enforce policies prohibiting unreasonable or unnecessary force by law enforcement officers and procedures for receiving and investigating citizen complaints.


SECTION 1. WILDFIRE ON FEDERAL LANDS. Section 102(2) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122(2)) is amended-- (1) by striking ``(2)'' and all that follows through ``means'' and inserting the following: ``(2) Major disaster.-- ``(A) Major disaster.--The term `major disaster' means''; and (2) by adding at the end the following: ``(B) Major disaster for wildfire on federal lands.--The term `major disaster for wildfire on Federal lands' means any wildfire or wildfires, which in the determination of the President under section 802 warrants assistance under section 803 to supplement the efforts and resources of the Department of the Interior or the Department of Agriculture-- ``(i) on Federal lands; or ``(ii) on non-Federal lands pursuant to a fire protection agreement or cooperative agreement.''. SEC. 2. DECLARATION OF A MAJOR DISASTER FOR WILDFIRE ON FEDERAL LANDS. The Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170 et seq.) is amended by adding at the end the following: ``TITLE VIII--MAJOR DISASTER FOR WILDFIRE ON FEDERAL LAND ``SEC. 801. DEFINITIONS. ``As used in this title-- ``(1) Federal land.--The term `Federal land' means-- ``(A) any land under the jurisdiction of the Department of the Interior; and ``(B) any land under the jurisdiction of the United States Forest Service. ``(2) Federal land management agencies.--The term `Federal land management agencies' means-- ``(A) the Bureau of Land Management; ``(B) the National Park Service; ``(C) the Bureau of Indian Affairs; ``(D) the United States Fish and Wildlife Service; and ``(E) the United States Forest Service. ``(3) Wildfire suppression operations.--The term `wildfire suppression operations' means the emergency and unpredictable aspects of wildland firefighting, including support, response, emergency stabilization activities, and other emergency management activities of wildland firefighting on Federal lands (or on non-Federal lands pursuant to a fire protection agreement or cooperative agreement) by the Federal land management agencies covered by the wildfire suppression subactivity of the Wildland Fire Management account or the FLAME Wildfire Suppression Reserve Fund account of the Federal land management agencies. ``SEC. 802. PROCEDURE FOR DECLARATION OF A MAJOR DISASTER FOR WILDFIRE ON FEDERAL LANDS. ``(a) In General.--The Secretary of the Interior or the Secretary of Agriculture may submit a request to the President consistent with the requirements of this title for a declaration by the President that a major disaster for wildfire on Federal lands exists. ``(b) Requirements.--A request for a declaration by the President that a major disaster for wildfire on Federal lands exists shall-- ``(1) be made in writing by the respective Secretary; ``(2) certify that the amount appropriated in the current fiscal year for wildfire suppression operations of the Federal land management agencies under the jurisdiction of the respective Secretary, net of any concurrently enacted rescissions of wildfire suppression funds, increases the total unobligated balance of amounts available for wildfire suppression by an amount equal to or greater than the average total costs incurred by the Federal land management agencies per year for wildfire suppression operations, including the suppression costs in excess of appropriated amounts, over the previous ten fiscal years; ``(3) certify that the amount available for wildfire suppression operations of the Federal land management agencies under the jurisdiction of the respective Secretary will be obligated not later than 30 days after such Secretary notifies the President that wildfire suppression funds will be exhausted to fund ongoing and anticipated wildfire suppression operations related to the wildfire on which the request for the declaration of a major disaster for wildfire on Federal lands pursuant to this title is based; and ``(4) specify the amount required in the current fiscal year to fund wildfire suppression operations related to the wildfire on which the request for the declaration of a major disaster for wildfire on Federal lands pursuant to this title is based. ``(c) Declaration.--Based on the request of the respective Secretary under this title, the President may declare that a major disaster for wildfire on Federal lands exists. ``SEC. 803. WILDFIRE ON FEDERAL LANDS ASSISTANCE. ``(a) In General.--In a major disaster for wildfire on Federal lands, the President may transfer funds, only from the account established pursuant to subsection (b), to the Secretary of the Interior or the Secretary of Agriculture to conduct wildfire suppression operations on Federal lands (and non-Federal lands pursuant to a fire protection agreement or cooperative agreement). ``(b) Wildfire Suppression Operations Account.--The President shall establish a specific account for the assistance available pursuant to a declaration under section 802. Such account may only be used to fund assistance pursuant to this title. ``(c) Limitation.-- ``(1) Limitation of transfer.--The assistance available pursuant to a declaration under section 802 is limited to the transfer of the amount requested pursuant to section 802(b)(4). The assistance available for transfer shall not exceed the amount contained in the wildfire suppression operations account established pursuant to subsection (b). ``(2) Transfer of funds.--Funds under this section shall be transferred from the wildfire suppression operations account to the wildfire suppression subactivity of the Wildland Fire Management Account. ``(d) Prohibition of Other Transfers.--Except as provided in this section, no funds may be transferred to or from the account established pursuant to subsection (b) to or from any other fund or account. ``(e) Reimbursement for Wildfire Suppression Operations on Non- Federal Land.--If amounts transferred under subsection (c) are used to conduct wildfire suppression operations on non-Federal land, the respective Secretary shall-- ``(1) secure reimbursement for the cost of such wildfire suppression operations conducted on the non-Federal land; and ``(2) transfer the amounts received as reimbursement to the wildfire suppression operations account established pursuant to subsection (b). ``(f) Annual Accounting and Reporting Requirements.--Not later than 90 days after the end of each fiscal year for which assistance is received pursuant to this section, the respective Secretary shall submit to the Committees on Agriculture, Appropriations, the Budget, Natural Resources, and Transportation and Infrastructure of the House of Representatives and the Committees on Agriculture, Nutrition, and Forestry, Appropriations, the Budget, Energy and Natural Resources, Homeland Security and Governmental Affairs, and Indian Affairs of the Senate, and make available to the public, a report that includes the following: ``(1) The risk-based factors that influenced management decisions regarding wildfire suppression operations of the Federal land management agencies under the jurisdiction of the Secretary concerned. ``(2) Specific discussion of a statistically significant sample of large fires, in which each fire is analyzed for cost drivers, effectiveness of risk management techniques, resulting positive or negative impacts of fire on the landscape, impact of investments in preparedness, suggested corrective actions, and such other factors as the respective Secretary considers appropriate. ``(3) Total expenditures for wildfire suppression operations of the Federal land management agencies under the jurisdiction of the respective Secretary, broken out by fire sizes, cost, regional location, and such other factors as the such Secretary considers appropriate. ``(4) Lessons learned. ``(5) Such other matters as the respective Secretary considers appropriate. ``(g) Savings Provision.--Nothing in this title shall limit the Secretary of the Interior, the Secretary of Agriculture, Indian tribe, or a State from receiving assistance through a declaration made by the President under this Act when the criteria for such declaration have been met.''.

Summary: Amends the Robert T. Stafford Disaster Relief and Emergency Assistance Act to define a "major disaster for wildfire on federal lands" as any wildfire that, in the determination of the President, warrants assistance under this Act to supplement the efforts and resources of the Department of the Interior or the Department of Agriculture: (1) on federal lands, or (2) on non-federal lands pursuant to a fire protection agreement or cooperative agreement. Authorizes the Secretary of the Interior or the Secretary of Agriculture to submit a request to the President for a declaration that such a major disaster exists. Requires such a request to: certify that the amount appropriated in the current fiscal year for wildfire suppression operations of the federal land management agencies under the jurisdiction of the respective Secretary, net of any concurrently enacted rescissions of wildfire suppression funds, increases the total unobligated balance of amounts available for wildfire suppression by an amount equal to or greater than the average total costs incurred by such agencies per year for wildfire suppression operations over the previous 10 fiscal years; certify that the amount available for wildfire suppression operations of the federal land management agencies under the jurisdiction of the respective Secretary will be obligated not later than 30 days after such Secretary notifies the President that wildfire suppression funds will be exhausted to fund ongoing and anticipated wildfire suppression operations related to the wildfire on which such request is based; and specify the amount required in the current fiscal year to fund wildfire suppression operations related to the wildfire on which such request is based. Authorizes the President to: (1) declare that such a major disaster exists based on such a request, (2) establish a specific account for assistance pursuant to such a declaration, and (3) transfer funds from such account to the Secretary of the Interior or the Secretary of Agriculture to conduct wildfire suppression operations on such lands. Requires the respective Secretary to secure reimbursement of transferred amounts used for wildfire suppression operations on non-federal land.


SECTION 1. SHORT TITLE. This Act may be cited as the ``Gerardo Hernandez Airport Security Act of 2014''. SEC. 2. DEFINITIONS. In this Act: (1) Assistant secretary.--The term ``Assistant Secretary'' means the Assistant Secretary of Homeland Security (Transportation Security) of the Department of Homeland Security. (2) Administration.--The term ``Administration'' means the Transportation Security Administration. SEC. 3. SECURITY INCIDENT RESPONSE AT AIRPORTS. (a) In General.--The Assistant Secretary shall, in consultation with the Administrator of the Federal Emergency Management Agency, conduct outreach to all airports in the United States at which the Administration performs, or oversees the implementation and performance of, security measures, and provide technical assistance as necessary, to verify such airports have in place individualized working plans for responding to security incidents inside the perimeter of the airport, including active shooters, acts of terrorism, and incidents that target passenger-screening checkpoints. (b) Types of Plans.--Such plans may include, but may not be limited to, the following: (1) A strategy for evacuating and providing care to persons inside the perimeter of the airport, with consideration given to the needs of persons with disabilities. (2) A plan for establishing a unified command, including identification of staging areas for non-airport-specific law enforcement and fire response. (3) A schedule for regular testing of communications equipment used to receive emergency calls. (4) An evaluation of how emergency calls placed by persons inside the perimeter of the airport will reach airport police in an expeditious manner. (5) A practiced method and plan to communicate with travelers and all other persons inside the perimeter of the airport. (6) To the extent practicable, a projected maximum timeframe for law enforcement response. (7) A schedule of joint exercises and training to be conducted by the airport, the Administration, other stakeholders such as airport and airline tenants, and any relevant law enforcement, airport police, fire, and medical personnel. (8) A schedule for producing after-action joint exercise reports to identify and determine how to improve security incident response capabilities. (c) Report to Congress.--Not later than 90 days after the date of the enactment of this Act, the Assistant Secretary shall report to the Committee on Homeland Security of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate on the findings from its outreach to airports under subsection (a), including an analysis of the level of preparedness such airports have to respond to security incidents, including active shooters, acts of terrorism, and incidents that target passenger-screening checkpoints. SEC. 4. DISSEMINATING INFORMATION ON BEST PRACTICES. The Assistant Secretary shall-- (1) identify best practices that exist across airports for security incident planning, management, and training; and (2) establish a mechanism through which to share such best practices with other airport operators nationwide. SEC. 5. CERTIFICATION. Not later than 90 days after the date of enactment of this Act, and annually thereafter, the Assistant Secretary shall certify in writing to the Committee on Homeland Security of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate that all screening personnel have participated in practical training exercises for active shooter scenarios. SEC. 6. REIMBURSABLE AGREEMENTS. Not later than 90 days after the enactment of this Act, the Assistant Secretary shall provide to the Committee on Homeland Security of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate an analysis of how the Administration can use cost savings achieved through efficiencies to increase over the next 5 fiscal years the funding available for checkpoint screening law enforcement support reimbursable agreements. SEC. 7. NO ADDITIONAL AUTHORIZATION OF APPROPRIATIONS. No additional funds are authorized to be appropriated to carry out this Act, and this Act shall be carried out using amounts otherwise available for such purpose. SEC. 8. INTEROPERABILITY REVIEW. (a) In General.--Not later than 90 days after the date of enactment of this Act, the Assistant Secretary shall, in consultation with the Assistant Secretary of the Office of Cybersecurity and Communications, conduct a review of the interoperable communications capabilities of the law enforcement, fire, and medical personnel responsible for responding to a security incident, including active shooter events, acts of terrorism, and incidents that target passenger-screening checkpoints, at all airports in the United States at which the Administration performs, or oversees the implementation and performance of, security measures. (b) Report.--Not later than 30 days after the completion of the review, the Assistant Secretary shall report the findings of the review to the Committee on Homeland Security of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate. Passed the House of Representatives July 22, 2014. Attest: KAREN L. HAAS, Clerk.

Summary: (This measure has not been amended since it was reported to the House on July 3, 2014. Gerardo Hernandez Airport Security Act of 2014 - (Sec. 3) Directs the Assistant Secretary of Homeland Security (Transportation Security) of the Department of Homeland Security (DHS) to: (1) conduct outreach to all U.S. airports at which the Transportation Security Administration (TSA) performs, or oversees the implementation and performance of, security measures; and (2) give necessary technical assistance to verify that such airports have in place individualized working plans for responding to security incidents inside the airport perimeter, including active shooters, acts of terrorism, and incidents that target passenger-screening checkpoints. Requires the Assistant Secretary to report to Congress on the outreach findings, including an analysis of the level of preparedness such airports have to respond to such incidents. (Sec. 4) Requires the Assistant Secretary to: (1) identify best practices that exist across airports for security incident planning, management, and training; and (2) establish a mechanism through which to share those best practices with other airport operators nationwide. (Sec. 5) Requires the Assistant Secretary also to: (1) certify annually to specified congressional committees that all screening personnel have participated in practical training exercises for active shooter scenarios, and (2) analyze for those same committees how TSA can use cost savings achieved through efficiencies to increase over the next five fiscal years the funding available for checkpoint screening law enforcement support reimbursable agreements. (Sec. 7) Declares that no additional appropriations are authorized to carry out this Act. Requires this Act to be carried out using amounts otherwise available. (Sec. 8) Requires the Assistant Secretary to review the interoperable communications capabilities of law enforcement, fire, and medical personnel responsible for responding to security incidents at all U.S. airports at which the TSA performs, or oversees the implementation and performance of, security measures.


SECTION 1. FINDINGS. Congress finds that-- (1) the United States exercises sovereignty over Puerto Rico pursuant to the Treaty of Paris proclaimed by President McKinley on April 11, 1899, Article IX of which provides that the ``civil rights and political status of the native inhabitants'' of Puerto Rico ``shall be determined by the Congress''; (2) Congress continues to carry out all Federal responsibilities with respect to Puerto Rico, including those set forth in article IX of the treaty of cession, pursuant to the territorial clause of the United States Constitution (article IV, section 3, clause 2), which provides that ``Congress shall have Power to dispose of and make all needful Rules and Regulations respecting the Territory or other Property belonging to the United States''; (3) in the Act of March 2, 1917 (39 stat. 951, chapter 145), Congress provided for civil administration of Puerto Rico and declared that, by virtue of that Act, the inhabitants of Puerto Rico shall be citizens of the United States, with such civil rights and political status as Congress determined to be consistent with residence in an unincorporated territory rather than a State of the Union; (4) in accordance with the Act of July 3, 1950 (64 Stat. 319, chapter 446), the people of Puerto Rico adopted a constitution in 1952 that, after amendment and approval by Congress, established the current Commonwealth structure for self-government in respect of internal affairs and local government administration, subject to the United States Constitution and Federal law applicable to Puerto Rico; and (5) the United States, consistent with its constitutional process, is committed to respecting the principle of self- determination as part of any procedure to resolve the political status of Puerto Rico. SEC. 2. REFERENDA. (a) Policy of the United States.--(1) In general.--It is the policy of the United States that the residents of Puerto Rico periodically should be afforded an opportunity freely to express their wishes regarding their political status.-- (2) Options.--The self-determination process for Puerto Rico should be one that enables the people of Puerto Rico to preserve their current political status if that is their preference, or to choose to seek, in accordance with a process approved by Congress and the residents of Puerto Rico-- (A) admission as a State of the Union on the basis of full equality; or (B) withdrawal of United States sovereignty in favor of independence or free association. (b) Requirements.--A referendum under this Act-- (1) shall be conducted among persons in Puerto Rico who meet the residency, United States citizenship, and other requirements of applicable law governing voter eligibility in Puerto Rico; (2) shall otherwise be in accordance with applicable provisions of the elections law of Puerto Rico and other relevant local and Federal law consistent with this Act; and (3) shall be decided by a majority of the votes cast. (c) Referendum by the End of 1998.-- (1) In general.--A referendum under this Act shall be conducted not later than December 31, 1998. (2) Format.-- (A) Part one of the ballot.--In the referendum under paragraph (1), the option of continuing the current Commonwealth arrangements and Puerto Rico's current political status, or, alternatively, entering on a process leading to permanent full self-government through separate sovereignty or statehood, shall be presented in Part One of the ballot as Options A and B, as follows: ``part one ``Option A.--COMMONWEALTH: The residents of Puerto Rico desire to continue the current Commonwealth structure for self- government with respect to internal affairs and administration under a local constitution, subject to the provisions of the Constitution and laws of the United States that apply to Puerto Rico. Puerto Rico will remain an unincorporated territory of the United States, and application of Federal law and provisions of the Constitution to Puerto Rico remains within the discretion of Congress. The future status of Puerto Rico will be determined through a process authorized by Congress that includes self-determination by the residents of Puerto Rico in periodic referenda. ``Option B.--PATH TO SEPARATE SOVEREIGNTY OR STATEHOOD: The residents of Puerto Rico desire to enter on a process for Congress and the residents of Puerto Rico to define and approve in a later vote a transition to permanent full self-government through either separate sovereignty or statehood as set forth in Part Two of this ballot.''. (B) Part two of the ballot.--Part Two of the ballot shall present voters with a choice between 2 options for ending the current territorial status in favor of separate sovereignty, in the form of independence, or free association as may be agreed, according to international law and definitions compatible with the constitutional process and practices of the United States, or, alternatively, full integration into the United States constitutional system on the basis of equality. The definitions of separate sovereignty and full integration leading to statehood shall appear in Part Two of the ballot as Options A and B, as follows: ``Option A.--SEPARATE SOVEREIGNTY: The residents of Puerto Rico desire to be a separate sovereign nation that exercises all the powers of government with respect to its territory and population, with full authority and responsibility for its internal and external affairs, through independence (or free association as may be agreed). Puerto Rico will become fully self-governing under its own constitution establishing a republican form of government, which shall be the supreme law. The United States Constitution and laws shall no longer apply, and the sovereignty, nationality, and citizenship of the United States in Puerto Rico shall terminate based on approval of separate sovereignty by Congress and the residents of Puerto Rico. Birth in Puerto Rico or relationship to a person who acquired United States citizenship by statute due to birth in Puerto Rico during the territorial period no longer will confer United States citizenship, but such persons shall have a right to retain statutory United States citizenship for life based on continued allegiance to the United States and election or designation as prescribed by Congress consistent with the transition to separate sovereignty and succession of nationality. ``Option B.--STATEHOOD: The residents of Puerto Rico desire admission of Puerto Rico as a State of the Union. Through statehood residents of Puerto Rico will have a status and rights secured under the United States Constitution, which will be the supreme law of the land with the same force and effect as in the other States of the Union. The sovereign State of Puerto Rico will be in permanent union with the United States, and powers not delegated to the Federal Government or prohibited to the States by the United States Constitution shall be reserved to the people of Puerto Rico or the State Government. The United States nationality and citizenship of persons born in Puerto Rico will be guaranteed in the same way it is for all United States citizens born in other States of the Union. United States citizens in Puerto Rico will have full and equal rights and duties of United States citizenship, including voting rights in elections for President and Vice President, as well as representation by 2 members in the United States Senate and proportionally on the basis of population in the House of Representatives.''. (3) Instructions to voters.-- (A) Part one.--The instructions to voters for Part One of the ballot in a referendum under this subsection shall state that a voter may select Option A or Option B by marking either option, but that ballots with both options marked in Part One will not be counted. (B) Part two.--The instructions to voters for Part Two of the ballot in such a referendum shall state that a voter may vote on Part Two regardless of how the voter voted on Part One, or even if they did not vote on Part One. The instructions to voters on Part Two shall also state that Part Two is to determine the preference of voters as between the options for seeking separate sovereignty or statehood in case a majority of the voters voting on Part One approve that course as set forth in Option B on Part One of the ballot. The voters shall be instructed to approve Option A or Option B in Part Two by marking either, but that ballots with both options marked in Part Two will not be counted. (4) Validity of either part.--On any ballot cast in a referendum under this subsection either Part One or Part Two shall be counted if properly cast, even if the other part of the ballot is not counted due to the manner in which the other part has been cast. SEC. 3. IMPLEMENTATION. (a) Selection of Current Status or Rejection of Transition.--If a majority of the voters approve continuation of the current unincorporated status and the present `Commonwealth' structure for local self-government, or on rejection of a transition plan, unless otherwise provided by Congress, referenda on the future political status of Puerto Rico shall be held in accordance with this Act every 4 years thereafter, but not within 270 calendar days of a general election, in order to ensure that the right of the people of Puerto Rico to self-determination is respected, and that the people periodically are afforded the opportunity freely to express their wishes with respect to resolution of Puerto Rico's status based on permanent full self-government. (b) Selection of Statehood.--If statehood is selected, the President, not later than 180 days after the referendum, shall transmit to the Congress legislation providing for the admission of Puerto Rico as a State of the Union in accordance with a transition plan that includes procedures for approval of the terms of admission and implementation thereof by a majority vote of the residents of Puerto Rico. (c) Selection of Separate Sovereignty.--If separate sovereignty is selected, the President, not later than 180 days after the referendum, shall transmit to the Congress legislation to providing a plan for the transition to an international sovereign-to-sovereign relationship governed by a treaty or international agreement (including measures to cease conferral of United States citizenship on persons born in Puerto Rico), and such legislation shall include procedures for approval of the transition to separate sovereignty by a majority vote of the residents of Puerto Rico.

Summary: Requires a referendum to be held by December 31, 1998, on Puerto Rico's path to self-determination either through preserving its current political status, U.S. statehood, or separate sovereignty (independence or free association). Sets forth specified requirements with respect to the referendum and congressional procedures for consideration of legislation.


SECTION 1. SHORT TITLE. This Act may be cited as the ``Stock Option Accounting Reform Act''. SEC. 2. MANDATORY EXPENSING OF STOCK OPTIONS HELD BY HIGHLY COMPENSATED OFFICERS. Section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m) is amended by adding at the end the following: ``(m) Mandatory Expensing of Stock Options.-- ``(1) Named executive officer.--As used in this subsection, the term `named executive officer' means-- ``(A) all individuals serving as the chief executive officer of an issuer, or acting in a similar capacity, during the most recent fiscal year, regardless of compensation level; and ``(B) the 4 most highly compensated executive officers, other than an individual identified under subparagraph (A), that were serving as executive officers of an issuer at the end of the most recent fiscal year. ``(2) In general.--Subject to paragraph (4), every issuer of a security registered pursuant to section 12 shall show as an expense in the annual report of such issuer filed under subsection (a)(2), the fair value of all options to purchase the stock of the issuer granted after December 31, 2004, to a named executive officer of the issuer. ``(3) Fair value.-- ``(A) In general.--The fair value of an option to purchase the stock of the issuer that is subject to paragraph (2) shall be-- ``(i) equal to the value that would be agreed upon by a willing buyer and seller of such option, who are not under any compulsion to buy or sell such option; and ``(ii) shall take into account all of the characteristics and restrictions imposed upon the option. ``(B) Pricing model.--To the extent that an option pricing model, such as the Black-Scholes method or a binomial model, is used to determine the fair value of an option, the assumed volatility of the underlying stock shall be zero. ``(4) Exemptions.-- ``(A) Small business issuers.--This subsection shall not apply to an issuer, if-- ``(i) the issuer has annual revenues of less than $25,000,000; ``(ii) the issuer is organized under the laws of the United States or Canada; ``(iii) the issuer is not an investment company (as such term is defined under section 3 of the Investment Company Act of 1940 (15 U.S.C. 80a-3)); ``(iv) the aggregate value of the outstanding voting and non-voting common equity securities of the issuer held by non-affiliated parties is less than $25,000,000; and ``(v) in the case of an issuer that meets the criteria in clauses (i) through (iv) and is a majority owned subsidiary, the parent of the issuer meets the requirements of this paragraph. ``(B) Delayed effectiveness.--The requirements of this subsection shall not apply to an issuer before the end of the 3-year period beginning on the date of the completion of the initial public offering of the securities of the issuer, and shall only apply to an option to purchase the stock of an issuer granted after such date.''. SEC. 3. PROHIBITION ON EXPENSING AND ECONOMIC IMPACT STUDY. (a) Prohibition.--Section 19(b) of the Securities Act of 1933 is amended by adding at the end the following: ``(3) Prohibition on expensing standards.-- ``(A) In general.--The Commission shall not recognize as ``generally accepted'' any accounting principle established by a standard setting body relating to the expensing of stock options unless-- ``(i) it complies with the requirements of subparagraph (B); and ``(ii) the economic impact study required under section 3(b) of the Stock Option Accounting Reform Act of 2003 has been completed. ``(B) Requirements.--A standard referred to in subparagraph (A) shall require that-- ``(i) if an option to purchase the stock of an issuer that is subject to the requirements of section 13(m) of the Securities Exchange Act of 1934 is exercised, forfeited, or expires unexercised, any expense that had been reported under that section 13(m) with respect to such option shall be reported in the fiscal year in which the option expires or is forfeited as a reduction of the total expense required to be reported under that section 13(m) during that fiscal year; and ``(ii) to the extent that any reduction required under clause (i) exceeds total option expenses for any fiscal year, such excess shall be reported as income with respect to options to purchase the stock of the issuer.''. (b) Economic Impact Study.--The Secretary of Commerce and the Secretary of Labor shall conduct and complete a joint study on the economic impact of the mandatory expensing of all employee stock options, including the impact upon-- (1) the use of broad-based stock option plans in expanding employee corporate ownership to workers at a wide range of income levels, with particular focus upon non-executive employees; (2) the role of such plans in the recruitment and retention of skilled workers; (3) the role of such plans in stimulating research and innovation; (4) the effect of such plans in stimulating the economic growth of the United States; and (5) the role of such plans in strengthening the international competitiveness of businesses organized under the laws of the United States.

Summary: Stock Option Accounting Reform Act - Amends the Securities Exchange Act of 1934 to require an issuer of registered securities to show as an expense in its mandatory annual report the fair value of all stock purchase options granted to certain of its senior executive officers after December 31, 2004. Exempts small business issuers from such requirement. Amends the Securities Act of 1933 to require reporting of: (1) stock option expenses as a reduction of the total expense in the fiscal year in which they expire or are forfeited; and (2) as income any excess by which such reduction exceeds total option expenses for any fiscal year. Requires any accounting principle recognized as "generally accepted" by the Securities and Exchange Commission (SEC) regarding the expensing of stock purchase options to comply with this Act. Denies recognition to any such accounting principle until the Secretaries of Commerce and of Labor complete a joint study on the economic impact of mandatory expensing of all employee stock options.