Input:
SECTION 1. ALLOCATION OF NATIONAL LIMITATION ON QUALIFIED SCHOOL
              CONSTRUCTION BONDS; APPLICATION OF DAVIS-BACON ACT TO
              PROJECTS FINANCED WITH BONDS.

    (a) In General.--Title XII of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8501 et seq.) is amended--
            (1) by redesignating sections 12004 through 12013 as
        sections 12101 through 12110, respectively;
            (2) by inserting before section 12101 (as so redesignated)
        the following:

  ``PART A--GRANTS FOR IMPROVEMENT OF PUBLIC ELEMENTARY AND SECONDARY
                        EDUCATION FACILITIES'';

        and
            (3) by adding at the end the following:

             ``PART B--QUALIFIED SCHOOL CONSTRUCTION BONDS

``SEC. 12201. ALLOCATION WITH RESPECT TO QUALIFIED SCHOOL CONSTRUCTION
              BONDS.

    ``(a) Qualified School Construction Bond.--
            ``(1) In general.--For purposes of this part, the term
        `qualified school construction bond' means any bond issued as
        part of an issue if--
                    ``(A) a taxpayer who holds the bond is allowed a
                credit under the Internal Revenue Code of 1986;
                    ``(B) 95 percent or more of the proceeds of such
                issue are to be used for the construction,
                rehabilitation, or repair of a public school facility;
                    ``(C) the bond is issued by a State or local
                government within the jurisdiction of which such school
                is located; and
                    ``(D) the issuer designates such bond for purposes
                of this section and the Internal Revenue Code of 1986.
            ``(2) Temporary period exception.--A bond shall not be
        treated as failing to meet the requirement of paragraph (1)(B)
        solely by reason of the fact that the proceeds of the issue of
        which such bond is a part are invested for a reasonable
        temporary period (but not more than 36 months) until such
        proceeds are needed for the purpose for which such issue was
        issued. Any earnings on such proceeds during such period shall
        be treated as proceeds of the issue for purposes of applying
        paragraph (1)(B).
    ``(b) National Limitation on Amount of Bonds Designated.--In any
case in which there is imposed a national limitation on the maximum
aggregate face amount of bonds issued during any calendar year which
may be designated as qualified school construction bonds, such
limitation shall be allocated in accordance with this section.
    ``(c) One-Third of Limitation Allocated Among States.--
            ``(1) In general.--One-third of the limitation applicable
        under subsection (b) for any calendar year shall be allocated
        among the States under paragraph (2) by the Secretary. The
        limitation amount allocated to a State under the preceding
        sentence shall be allocated by the State educational agency to
        issuers within such State and such allocations may be made only
        if there is an approved State application.
            ``(2) Allocation formula.--The amount to be allocated under
        paragraph (1) for any calendar year shall be allocated among
        the States in proportion to the respective amounts each such
        State received for Basic Grants under subpart 2 of part A of
        title I of this Act for the most recent fiscal year ending
        before such calendar year. For purposes of the preceding
        sentence, Basic Grants attributable to large local educational
        agencies (as defined in subsection (d)), and Basic Grants
        attributable to high-growth local educational agencies (as
        defined in subsection (e)), shall be disregarded.
            ``(3) Minimum allocations to states.--
                    ``(A) In general.--The Secretary shall adjust the
                allocations under this subsection for any calendar year
                for each State to the extent necessary to ensure that
                the sum of--
                            ``(i) the amount allocated to such State
                        under this subsection for such year; and
                            ``(ii) the aggregate amounts allocated
                        under subsections (d) and (e) to local
                        educational agencies in such State for such
                        year;
                is not less than an amount equal to such State's
                minimum percentage of one-third of the national
                qualified school construction bond limitation referred
                to in subsection (b) for the calendar year.
                    ``(B) Minimum percentage.--A State's minimum
                percentage for any calendar year is the minimum
                percentage described in section 1124(d) for such State
                for the most recent fiscal year ending before such
                calendar year.
            ``(4) Allocations to certain possessions.--The amount to be
        allocated under paragraph (1) to any possession of the United
        States (as such term is used in the Internal Revenue Code of
        1986) other than Puerto Rico shall be the amount which would
        have been allocated if all allocations under paragraph (1) were
        made on the basis of respective populations of individuals
        below the poverty line (as defined by the Office of Management
        and Budget). In making other allocations, the amount to be
        allocated under paragraph (1) shall be reduced by the aggregate
        amount allocated under this paragraph to possessions of the
        United States.
            ``(5) Approved state application.--For purposes of
        paragraph (1), the term `approved State application' means an
        application which is approved by the Secretary and which
        includes--
                    ``(A) the results of a recent publicly available
                survey (undertaken by the State with the involvement of
                local education officials, members of the public, and
                experts in school construction and management) of such
                State's needs for public school facilities, including
                descriptions of--
                            ``(i) health and safety problems at such
                        facilities;
                            ``(ii) the capacity of public schools in
                        the State to house projected enrollments; and
                            ``(iii) the extent to which the public
                        schools in the State offer the physical
                        infrastructure needed to provide a high-quality
                        education to all students; and
                    ``(B) a description of how the State will allocate
                to local educational agencies, or otherwise use, its
                allocation under this subsection to address the needs
                identified under subparagraph (A), including a
                description of how it will--
                            ``(i) give highest priority to localities
                        with the greatest needs, as demonstrated by
                        inadequate school facilities coupled with a low
                        level of resources to meet those needs;
                            ``(ii) use its allocation under this
                        subsection to assist localities that lack the
                        fiscal capacity to issue bonds on their own;
                        and
                            ``(iii) ensure that its allocation under
                        this subsection is used only to supplement, and
                        not supplant, the amount of school
                        construction, rehabilitation, and repair in the
                        State that would have occurred in the absence
                        of such allocation.
        Any allocation under paragraph (1) by a State education agency
        shall be binding if such agency reasonably determined that the
        allocation was in accordance with the plan approved under this
        paragraph.
    ``(d) One-Third of Limitation Allocated Among Largest School
Districts.--
            ``(1) In general.--One-third of the limitation applicable
        under subsection (b) for any calendar year shall be allocated
        under paragraph (2) by the Secretary among local educational
        agencies which are large local educational agencies for such
        year. No qualified school construction bond may be issued by
        reason of an allocation to a large local educational agency
        under the preceding sentence unless such agency has an approved
        local application.
            ``(2) Allocation formula.--The amount to be allocated under
        paragraph (1) for any calendar year shall be allocated among
large local educational agencies in proportion to the respective
amounts each such agency received for Basic Grants under subpart 2 of
part A of title I of this Act for the most recent fiscal year ending
before such calendar year.
            ``(3) Large local educational agency.--For purposes of this
        section, the term `large local educational agency' means, with
        respect to a calendar year, any local educational agency (other
        than a high-growth local educational agency, as defined in
        subsection (e)) if such agency is--
                    ``(A) among the 100 local educational agencies with
                the largest numbers of children aged 5 through 17 from
                families living below the poverty level, as determined
                by the Secretary using the most recent data available
                from the Department of Commerce that are satisfactory
                to the Secretary; or
                    ``(B) 1 of not more than 25 local educational
                agencies (other than those described in clause (i))
                that the Secretary determines (based on the most recent
                data available satisfactory to the Secretary) are in
                particular need of assistance, based on a low level of
                resources for school construction, a high level of
                enrollment growth, or such other factors as the
                Secretary deems appropriate.
            ``(4) Approved local application.--For purposes of
        paragraph (1), the term `approved local application' means an
        application which is approved by the Secretary and which
        includes--
                    ``(A) the results of a recent publicly-available
                survey (undertaken by the local educational agency with
                the involvement of school officials, members of the
                public, and experts in school construction and
                management) of such agency's needs for public school
                facilities, including descriptions of--
                            ``(i) the overall condition of the local
                        educational agency's school facilities,
                        including health and safety problems;
                            ``(ii) the capacity of the agency's schools
                        to house projected enrollments; and
                            ``(iii) the extent to which the agency's
                        schools offer the physical infrastructure
                        needed to provide a high-quality education to
                        all students;
                    ``(B) a description of how the local educational
                agency will use its allocation under this subsection to
                address the needs identified under subparagraph (A);
                and
                    ``(C) a description of how the local educational
                agency will ensure that its allocation under this
                subsection is used only to supplement, and not
                supplant, the amount of school construction,
                rehabilitation, or repair in the locality that would
                have occurred in the absence of such allocation.
        A rule similar to the rule of the last sentence of subsection
        (c)(5) shall apply for purposes of this subsection.
    ``(e) One-Third of Limitation Allocated Among High-Growth School
Districts.--
            ``(1) In general.--One-third of the limitation applicable
        under subsection (b) for any calendar year shall be allocated
        under paragraph (2) by the Secretary among local educational
        agencies which are high-growth local educational agencies for
        such year. No qualified school construction bond may be issued
        by reason of an allocation to a high-growth local educational
        agency under the preceding sentence unless such agency has an
        approved local application (as defined in subsection (d)(4)). A
        rule similar to the rule of the last sentence of subsection
        (c)(5) shall apply for purposes of this subsection.
            ``(2) Allocation formula.--The amount to be allocated under
        paragraph (1) for any calendar year shall be allocated among
        high-growth local educational agencies in proportion to the
        respective amounts each such agency received for Basic Grants
        under subpart 2 of part A of title I of this Act for the most
        recent fiscal year ending before such calendar year.
            ``(3) High-growth local educational agency.--For purposes
        of this section, the term `high-growth local educational
        agency' means, with respect to a calendar year, any local
        educational agency if--
                    ``(A) there has been at least a 7.5 percent
                increase in such agency's enrollment during the 5-year
                period ending with the preceding calendar year; and
                    ``(B) such enrollment increase exceeds 150
                students.
    ``(f) Carryover of Unused Limitation.--If for any calendar year--
            ``(1) the amount allocated under subsection (c) to any
        State; exceeds
            ``(2) the amount of bonds issued during such year which are
        designated as qualified school construction bonds pursuant to
        such allocation;
the limitation amount under such subsection for such State for the
following calendar year shall be increased by the amount of such
excess. A similar rule shall apply to the amounts allocated under
subsections (d) and (e).
    ``(g) Other Definitions.--For purposes of this section:
            ``(1) Local educational agency.--The term `local
        educational agency' has the meaning given to such term by
        section 14101. Such term includes the local educational agency
        that serves the District of Columbia but does not include any
        other State agency.
            ``(2) Bond.--The term `bond' includes any obligation.
            ``(3) Public school facility.--The term `public school
        facility' shall not include any stadium or other facility
        primarily used for athletic contests or exhibitions or other
        events for which admission is charged to the general public.

``SEC. 12202. APPLICATION OF DAVIS-BACON ACT TO PROJECTS FINANCED WITH
              QUALIFIED SCHOOL CONSTRUCTION BONDS.

    ``The wage requirements of the Act of March 3, 1931 (40 U.S.C. 276a
et seq.) (commonly referred to as the `Davis-Bacon Act') shall apply
with respect to individuals employed on school construction,
rehabilitation, or repair projects financed with the proceeds from an
issuance of qualified school construction bonds.''.
    (b) Conforming Amendments.--Title XII of such Act is amended--
            (1) in sections 12101 through 12110 (as so redesignated),
        by striking ``this title'' each place it appears and inserting
        ``this part'';
            (2) in section 12101(a)(1) (as so redesignated)--
                    (A) by striking ``section 12013'' and inserting
                ``section 12110'';
                    (B) by striking ``section 12005'' and inserting
                ``section 12102''; and
                    (C) by striking ``section 12007'' and inserting
                ``section 12104'';
            (3) in section 12101(a)(2) (as so redesignated), by
        striking ``section 12013'' and inserting ``section 12110''; and
            (4) in section 12109(3)(C) (as so redesignated), by
        striking ``section 12006'' and inserting ``section 12103''.

Output:
Amends the Elementary and Secondary Education Act of 1965 to provide for the allocation of any limitation imposed on school construction bonds with respect to which the holders are allowed a credit under the Internal Revenue Code.
Applies the wage requirements of the Davis-Bacon Act to projects financed with such bonds.


Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Parent and Teacher Achievement Act
of 2001''.

SEC. 2. STATE INCENTIVES FOR TEACHER TESTING AND MERIT PAY.

    (a) Amendments.--Title II of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6601 et seq.) is amended--
            (1) by redesignating part E as part F;
            (2) by redesignating sections 2401 and 2402 as sections
        2501 and 2502, respectively; and
            (3) by inserting after part D the following:

      ``PART E--STATE INCENTIVES FOR TEACHER TESTING AND MERIT PAY

``SEC. 2401. STATE INCENTIVES FOR TEACHER TESTING AND MERIT PAY.

    ``(a) State Awards.--From funds made available under subsection (b)
for a fiscal year, the Secretary shall make an award to each State
that--
            ``(1) administers a test to each elementary school and
        secondary school teacher in the State, with respect to the
        subjects taught by the teacher, every 3 to 5 years;
            ``(2) has an elementary school and secondary school teacher
        compensation system that is based on merit; and
            ``(3) requires elementary school and secondary school
        teachers to earn continuing education credits as part of a
        State recertification process.
    ``(b) Available Funding.--Notwithstanding any other provision of
law, the amount of funds that are available to carry out this section
for a fiscal year is 50 percent of the amount of funds appropriated to
carry out this title that are in excess of the amount so appropriated
for fiscal year 2001, except that no funds shall be available to carry
out this section for any fiscal year for which--
            ``(1) the amount appropriated to carry out this title
        exceeds $600,000,000; or
            ``(2) each of the several States is eligible to receive an
        award under this section.
    ``(c) Award Amount.--A State shall receive an award under this
section in an amount that bears the same relation to the total amount
available for awards under this section for a fiscal year as the number
of States that are eligible to receive such an award for the fiscal
year bears to the total number of all States so eligible for the fiscal
year.
    ``(d) Use of Funds.--Funds provided under this section may be used
by States to carry out the activities described in section 2207.
    ``(e) Definition of State.--In this section, the term `State' means
each of the 50 States and the District of Columbia.''.
    (b) Effective Date.--The amendments made by subsection (a) shall
take effect on October 1, 2001.

SEC. 3. TEACHER TESTING AND MERIT PAY.

    (a) In General.--Notwithstanding any other provision of law, a
State may use Federal education funds--
            (1) to carry out a test of each elementary school or
        secondary school teacher in the State with respect to the
        subjects taught by the teacher; or
            (2) to establish a merit pay program for the teachers.
    (b) Definitions.--In this section, the terms ``elementary school''
and ``secondary school'' have the meanings given the terms in section
14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
8801).

SEC. 4. NONREFUNDABLE CREDIT FOR ELEMENTARY AND SECONDARY SCHOOL
              EXPENSES.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to nonrefundable
personal credits) is amended by inserting after section 25B the
following new section:

``SEC. 25C. CREDIT FOR ELEMENTARY AND SECONDARY SCHOOL EXPENSES.

    ``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to the qualified elementary and
secondary education expenses (within the meaning of section 530(b)(4))
with respect to one or more qualifying students which are paid or
incurred by the individual during such taxable year.
    ``(b) Limitations.--
            ``(1) Maximum credit.--The credit allowed by subsection (a)
        for any taxable year shall not exceed $1000 per qualifying
        student.
            ``(2) Maximum tuition expenses.--The tuition expenses which
        may be taken into account in determining qualified elementary
        and secondary education expenses for any taxable year shall not
        exceed $500 per qualifying student.
    ``(c) Qualifying Student.--For purposes of this section, the term
`qualifying student' means a dependent (within the meaning of section
152) or a relative of the taxpayer who is enrolled in school (as
defined in section 530(b)(4)(B)) on a full-time basis. For purposes of
the preceding sentence, the term `relative' means an individual bearing
a relationship to the taxpayer which is described in any of paragraphs
(1) through (8) of section 152(a).
    ``(d) Denial of Double Benefit.--No deduction or exclusion shall be
allowed under this chapter for any expense for which credit is allowed
under this section.
    ``(e) Election To Have Credit Not Apply.--A taxpayer may elect to
have this section not apply for any taxable year.''.
    (b) Conforming Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section 25B the
following new item:

                              ``Sec. 25C. Credit for elementary and
                                        secondary school expenses.''.
    (c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.

SEC. 5. CREDIT FOR CONTRIBUTIONS FOR THE BENEFIT OF ELEMENTARY AND
              SECONDARY SCHOOLS.

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

``SEC. 30B. CREDIT FOR CONTRIBUTIONS FOR THE BENEFIT OF ELEMENTARY AND
              SECONDARY SCHOOLS.

    ``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to 75 percent of the qualified charitable contributions of the
taxpayer for the taxable year.
    ``(b) Maximum Credit.--
            ``(1) Individuals.--In the case of a taxpayer other than a
        corporation, the credit allowed by subsection (a) for any
        taxable year shall not exceed $500 ($1,000 in the case of a
        joint return).
            ``(2) Corporations.--In the case of a corporation, the
        credit allowed by subsection (a) shall not exceed $100,000.
    ``(c) Qualified Charitable Contribution.--For purposes of this
section--
            ``(1) In general.--The term `qualified charitable
        contribution' means, with respect to any taxable year, the
        aggregate amount allowable as a deduction under section 170
        (determined without regard to subsection (d)(1)) for cash
        contributions to a school tuition organization.
            ``(2) School tuition organization.--
                    ``(A) In general.--The term `school tuition
                organization' means any organization which--
                            ``(i) is described in section 170(c)(2),
                            ``(ii) allocates at least 90 percent of its
                        gross income and contributions and gifts to
                        elementary and secondary school scholarships,
                        and
                            ``(iii) awards scholarships to any student
                        who is eligible for free or reduced cost lunch
                        under the school program established under the
                        Richard B. Russell National School Lunch Act.
                    ``(B) Elementary and secondary school
                scholarship.--The term `elementary and secondary school
                scholarship' means any scholarship excludable from
                gross income under section 117 for expenses related to
                education at or below the 12th grade.
    ``(d) Special Rules.--
            ``(1) Denial of double benefit.--No deduction shall be
        allowed under this chapter for any contribution for which
        credit is allowed under this section.
            ``(2) Application with other credits.--The credit allowable
        under subsection (a) for any taxable year shall not exceed the
        excess (if any) of--
                    ``(A) the regular tax for the taxable year, reduced
                by the sum of the credits allowable under subpart A and
                the preceding sections of this subpart, over
                    ``(B) the tentative minimum tax for the taxable
                year.
            ``(3) Controlled groups.--All persons who are treated as
        one employer under subsection (a) or (b) of section 52 shall be
        treated as 1 taxpayer for purposes of this section.
    ``(e) Election To Have Credit Not Apply.--A taxpayer may elect to
have this section not apply for any taxable year.''.
    (b) Conforming Amendment.--The table of sections for subpart B of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:

                              ``Sec. 30B. Credit for contributions for
                                        the benefit of elementary and
                                        secondary schools.''.
    (c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.

SEC. 6. CREDIT TO ELEMENTARY AND SECONDARY SCHOOL TEACHERS WHO PROVIDE
              CLASSROOM MATERIALS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to other credits), as
amended by section 4(a), is amended by adding at the end the following
new section:

``SEC. 30C. CREDIT TO ELEMENTARY AND SECONDARY SCHOOL TEACHERS WHO
              PROVIDE CLASSROOM MATERIALS.

    ``(a) Allowance of Credit.--In the case of an eligible educator,
there shall be allowed as a credit against the tax imposed by this
chapter for the taxable year an amount equal to the qualified
elementary and secondary education expenses which are paid or incurred
by the taxpayer during such taxable year.
    ``(b) Maximum Credit.--The credit allowed by subsection (a) for any
taxable year shall not exceed $1,000.
    ``(c) Definitions.--
            ``(1) Eligible educator.--The term `eligible educator'
        means an individual who is a teacher, instructor, counselor,
        principal, or aide in a school (as defined in section
        530(b)(4)(B)) for at least 900 hours during a school year.
            ``(2) Qualified elementary and secondary education
        expenses.--The term `qualified elementary and secondary
        education expenses' means expenses for books, supplies (other
        than nonathletic supplies for courses of instruction in health
        or physical education), computer equipment (including related
        software and services) and other equipment, and supplementary
        materials used by an eligible educator in the classroom.
    ``(d) Special Rules.--
            ``(1) Denial of double benefit.--No deduction shall be
        allowed under this chapter for any expense for which credit is
        allowed under this section.
            ``(2) Application with other credits.--The credit allowable
        under subsection (a) for any taxable year shall not exceed the
        excess (if any) of--
                    ``(A) the regular tax for the taxable year, reduced
                by the sum of the credits allowable under subpart A and
                the preceding sections of this subpart, over
                    ``(B) the tentative minimum tax for the taxable
                year.
    ``(e) Election To Have Credit Not Apply.--A taxpayer may elect to
have this section not apply for any taxable year.''.
    (b) Clerical Amendment.--The table of sections for subpart B of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986, as amended by section 4(b), is amended by adding at the end the
following new item:

                              ``Sec. 30C. Credit to elementary and
                                        secondary school teachers who
                                        provide classroom materials.''.
    (c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.

SEC. 7. ADJUSTED GROSS INCOME DETERMINED BY TAKING INTO ACCOUNT
              PROFESSIONAL DEVELOPMENT EXPENSES OF ELEMENTARY AND
              SECONDARY SCHOOL TEACHERS.

    (a) In General.--Section 62(a)(2) of the Internal Revenue Code of
1986 (relating to certain trade and business deductions of employees)
is amended by adding at the end the following:
                    ``(D) Professional development expenses of
                elementary and secondary school teachers.--The
                deductions allowed by section 162 which consist of
                expenses, not in excess of $1,500, paid or incurred by
                an eligible educator (as defined section 30C(c)(1)) by
                reason of the participation of the educator in
                professional development courses which are related to
                the curriculum and academic subjects in which the
                educator provides instruction or to the students for
                which the educator provides instruction and which are
                part of a program of professional development which is
                approved and certified by the appropriate local
                educational agency (as defined by section 14101 of the
                Elementary and Secondary Education Act of 1965, as in
                effect on the date of the enactment of this
                subparagraph).''.
    (b) Special Rules.--Section 62 of the Internal Revenue Code of 1986
is amended by adding at the end the following:
    ``(d) Special Rules.--A deduction shall be allowed under subsection
(a)(2)(D) for expenses only to the extent the amount of such expenses
exceeds the amount excludable under section 135, 529(c)(1), or
530(d)(2) for the taxable year.''.
    (c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.

Output: Parent and Teacher Achievement Act of 2001 - Amends the Elementary and Secondary Education Act of 1965 to establish a program for State incentives for teacher testing and merit pay. Directs the Secretary of Education to make an award of such program funds to each State that: (1) administers a test to each elementary and secondary school teacher in the State, with respect to the subjects taught by the teacher, every three to five years; (2) has school teacher compensation system that is based on merit; and (3) requires school teachers to earn continuing education credits as part of a State recertification process.Allows States, regardless of any other Federal law, to use Federal education funds to: (1) test elementary or secondary school teachers in the subjects they teach; or (2) establish a merit pay program for such teachers.Amends the Internal Revenue Act to provide certain tax credits for: (1) elementary and secondary school expenses; (2) contributions for the benefit of elementary and secondary schools; and (3) elementary and secondary school teachers who provide classroom materials. Allows elementary and secondary school teachers to take a tax deduction for certain professional development expenses.


Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Foundation on Physical
Fitness and Sports Establishment Act''.

SEC. 2. ESTABLISHMENT AND PURPOSE OF FOUNDATION.

    (a) Establishment.--There is established the National Foundation on
Physical Fitness and Sports (hereinafter in this Act referred to as the
``Foundation''). The Foundation is a charitable and nonprofit
corporation and is not an agency or establishment of the United States.
    (b) Purposes.--The purposes of the Foundation are--
            (1) in conjunction with the President's Council on Physical
        Fitness and Sports, to develop a list and description of
        programs, events and other activities which would further the
        goals outlined in Executive Order 12345 and with respect to
        which combined private and governmental efforts would be
        beneficial; and
            (2) to encourage and promote the participation by private
        organizations in the activities referred to in subsection
        (b)(1) and to encourage and promote private gifts of money and
        other property to support those activities.
    (c) Disposition of Money and Property.--At least annually the
Foundation shall transfer, after the deduction of the administrative
expenses of the Foundation, the balance of any contributions received
for the activities referred to in subsection (b), to the United States
Public Health Service Gift Fund pursuant to section 2701 of the Public
Health Service Act (42 U.S.C. 300aaa) for expenditure pursuant to the
provisions of that section and consistent with the purposes for which
the funds were donated.

SEC. 3. BOARD OF DIRECTORS OF THE FOUNDATION.

    (a) Establishment and Membership.--The Foundation shall have a
governing Board of Directors (hereinafter referred to in this Act as
the ``Board''), which shall consist of 11 members each of whom shall be
a United States citizen and--
            (1) 4 of whom must be knowledgeable or experienced in one
        or more fields directly connected with physical fitness,
        sports, or the relationship between health status and physical
        exercise; and
            (2) 7 of whom must be leaders in the private sector with a
        strong interest in physical fitness, sports, or the
        relationship between health status and physical exercise.
The membership of the Board, to the extent practicable, shall represent
diverse professional specialties relating to the achievement of
physical fitness through regular participation in programs of exercise,
sports, and similar activities. The Assistant Secretary for Health, the
Executive Director of the President's Council on Physical Fitness and
Sports, the Director for the National Center for Chronic Disease
Prevention and Health Promotion, the Director of the National Heart,
Lung, and Blood Institute, and the Director for the Centers for Disease
Control and Prevention shall be ex officio, nonvoting members of the
Board. Appointment to the Board or its staff shall not constitute
employment by, or the holding of an office of, the United States for
the purposes of any Federal employment or other law.
    (b) Appointments.--Within 90 days from the date of enactment of
this Act, the members of the Board will be appointed. Three members of
the Board will be appointed by the Secretary (hereinafter referred to
in this Act as the ``Secretary''), 2 by the majority leader of the
Senate, 1 by the minority leader of the Senate, 1 by the President Pro
Tempore of the Senate, 2 by the Speaker of the House of
Representatives, 1 by the majority leader of the House of
Representatives, 1 by the minority leader of the House of
Representatives.
    (c) Terms.--The members of the Board shall serve for a term of 6
years. A vacancy on the Board shall be filled within 60 days of the
vacancy in the same manner in which the original appointment was made
and shall be for the balance of the term of the individual who was
replaced. No individual may serve more than 2 consecutive terms as a
member.
    (d) Chairman.--The Chairman shall be elected by the Board from its
members for a 2-year term and will not be limited in terms or service.
    (e) Quorum.--A majority of the current membership of the Board
shall constitute a quorum for the transaction of business.
    (f) Meetings.--The Board shall meet at the call of the Chairman at
least once a year. If a member misses 3 consecutive regularly scheduled
meetings, that member may be removed from the Board and the vacancy
filled in accordance with subsection (c).
    (g) Reimbursement of Expenses.--Members of the Board shall serve
without pay, but may be reimbursed for the actual and necessary
traveling and subsistence expenses incurred by them in the performance
of the duties of the Foundation, subject to the same limitations on
reimbursement that are imposed upon employees of Federal agencies.
    (h) Limitations.--The following limitations apply with respect to
the appointment of officers and employees of the Foundation:
            (1) Officers and employees may not be appointed until the
        Foundation has sufficient funds to pay them for their service.
        No individual so appointed may receive pay in excess of the
        annual rate of basic pay in effect for Executive Level V in the
        Federal service.
            (2) The first officer or employee appointed by the Board
        shall be the Secretary of the Board who shall serve, at the
        direction of the Board, as its chief operating officer and
        shall be knowledgeable and experienced in matters relating to
        physical fitness and sports.
            (3) No Public Health Service employee nor the spouse or
        dependent relative of such an employee may serve as an officer
        or member of the Board of Directors or as an employee of the
        Foundation.
            (4) Any individual who is an officer, employee, or member
        of the Board of the Foundation may not (in accordance with the
        policies developed under subsection (i)) personally or
        substantially participate in the consideration or determination
        by the Foundation of any matter that would directly or
        predictably affect any financial interest of the individual or
        a relative (as such term is defined in section 109(16) of the
        Ethics in Government Act, 1978) of the individual, of any
        business organization, or other entity, or of which the
        individual is an officer or employee, is negotiating for
        employment, or in which the individual has any other financial
        interest.
    (i) General Powers.--The Board may complete the organization of the
Foundation by--
            (1) appointing officers and employees;
            (2) adopting a constitution and bylaws consistent with the
        purposes of the Foundation and the provision of this Act; and
            (3) undertaking such other acts as may be necessary to
        carry out the provisions of this Act.
In establishing bylaws under this subsection, the Board shall provide
for policies with regard to financial conflicts of interest and ethical
standards for the acceptance, solicitation and disposition of donations
and grants to the Foundation.

SEC. 4. RIGHTS AND OBLIGATIONS OF THE FOUNDATION.

    (a) In General.--The Foundation--
            (1) shall have perpetual succession;
            (2) may conduct business throughout the several States,
        territories, and possessions of the United States;
            (3) shall have its principal offices in or near the
        District of Columbia; and
            (4) shall at all times maintain a designated agent
        authorized to accept service of process for the Foundation.
The serving of notice to, or service of process upon, the agent
required under paragraph (4), or mailed to the business address of such
agent, shall be deemed as service upon or notice to the Foundation.
    (b) Seal.--The Foundation shall have an official seal selected by
the Board which shall be judicially noticed.
    (c) Powers.--To carry out its purposes under section 2, and subject
to the specific provisions thereof, the Foundation shall have the usual
powers of a corporation acting as a trustee in the District of
Columbia, including the power--
            (1) except as otherwise provided herein, to accept,
        receive, solicit, hold, administer and use any gift, devise, or
        bequest, either absolutely or in trust, of real or personal
        property or any income therefrom or other interest therein;
            (2) to acquire by purchase or exchange any real or personal
        property or interest therein;
            (3) unless otherwise required by the instrument of
        transfer, to sell, donate, lease, invest, reinvest, retain or
        otherwise dispose of any property or income therefrom;
            (4) to sue and be sued, and complain and defend itself in
        any court of competent jurisdiction, except for gross
        negligence;
            (5) to enter into contracts or other arrangements with
        public agencies and private organizations and persons and to
        make such payments as may be necessary to carry out its
        functions; and
            (6) to do any and all acts necessary and proper to carry
        out the purposes of the Foundation.
For purposes of this Act, an interest in real property shall be treated
as including easements or other rights for preservation, conservation,
protection, or enhancement by and for the public of natural, scenic,
historic, scientific, educational inspirational or recreational
resources. A gift, devise, or bequest may be accepted by the Foundation
even though it is encumbered, restricted, or subject to beneficial
interests of private persons if any current or future interest therein
is for the benefit of the Foundation.

SEC. 5. PROTECTION AND USES OF TRADEMARKS AND TRADE NAMES.

    (a) Protection.--Without the consent of the Foundation in
conjunction with the President's Council on Physical Fitness and
Sports, any person who uses for the purpose of trade, uses to induce
the sale of any goods or services, or uses to promote any theatrical
exhibition, athletic performance or competition--
            (1) the official seal of the President's Council on
        Physical Fitness and Sports consisting of the eagle holding an
        olive branch and arrows with shield breast encircled by name
        ``President's Council on Physical Fitness and Sports'' and
        consisting, depending upon placement, of diagonal stripes;
            (2) the official seal of the Foundation; or
            (3) any trademark, trade name, sign, symbol, or insignia
        falsely representing association with or authorization by the
        President's Council on Physical Fitness and Sports or the
        Foundation;
shall be subject in a civil action by the Foundation for the remedies
provided in the Act of July 9, 1946 (60 Stat. 427; popularly known as
the Trademark Act of 1946).
    (b) Uses.--The Foundation, in conjunction with the President's
Council on Physical Fitness and Sports, may authorize contributors and
suppliers of goods or services to use the trade name or the President's
Council on Physical Fitness and Sports and the Foundation as well as
any trademark, seal, symbol, insignia, or emblem of the President's
Council on Physical Fitness and Sports or the Foundation in advertising
that the contributors, goods, or services when donated, supplied, or
furnished to or for the use of, or approved, selected, or used by the
President's Council on Physical Fitness and Sports or the Foundation.

SEC. 6. VOLUNTEER STATUS.

    The Foundation may accept, without regard to the civil service
classification laws, rules, or regulations, the services of volunteers
in the performance of the functions authorized herein, in the manner
provided for under section 7(c) of the Fish and Wildlife Act of 1956
(16 U.S.C. 742f(c)).

SEC. 7. AUDIT, REPORT REQUIREMENTS, AND PETITION OF ATTORNEY GENERAL
              FOR EQUITABLE RELIEF.

    (a) Audits.--For purposes of the Act entitled ``An Act for audit of
accounts of private corporations established under Federal law'',
approved August 30, 1964 (Public Law 88-504, 36 U.S.C. 1101-1103) the
Foundation shall be treated as a private corporation under Federal law.
The Inspector General of the Department of Health and Human Services
and the Comptroller General of the United States shall have access to
the financial and other records of the Foundation, upon reasonable
notice.
    (b) Report.--The Foundation shall, as soon as practicable after the
end of each fiscal year, transmit to the Secretary of Health and Human
Services and to Congress a report of its proceedings and activities
during such year, including a full and complete statement of its
receipts, expenditures, and investments.
    (c) Relief With Respect to Certain Foundation Acts or Failure To
Act.--If the Foundation--
            (1) engages in, or threatens to engage in, any act,
        practice or policy that is inconsistent with its purposes set
        forth in section 2(b); or
            (2) refuses, fails, or neglects to discharge its
        obligations under this Act, or threaten to do so;
the Attorney General of the United States may petition in the United
States District Court for the District of Columbia for such equitable
relief as may be necessary or appropriate.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    For fiscal year 2011, there are authorized to be appropriated such
sums as may be necessary, to be made available to the Foundation for
organizational costs.

Output: National Foundation on Physical Fitness and Sports Establishment Act - Establishes the National Foundation on Physical Fitness and Sports as a charitable, nonprofit corporation to promote participation by private organizations in the activities of the President's Council on Physical Fitness and Sports. Subjects any person who uses the Council's or Foundation's official seal or any trademark, trade name, sign, symbol, or insignia falsely representing association with, or authorization by, the Council or Foundation for the purpose of trade, to induce the sale of any goods or services, or to promote any theatrical exhibition, athletic performance, or competition without the Foundation's consent to a civil action for remedies provided in the Trademark Act of 1946. Allows the Foundation, in conjunction with the Council, to authorize contributors and suppliers of goods or services to use such trade name, trademark, seal, symbol, insignia, or emblem in advertising under specified conditions.


Input:
SECTION 1. SHORT TITLE.

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

SEC. 2. FINDINGS.

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

SEC. 3. PURPOSE.

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

SEC. 4. NATIONAL CLIMATE SERVICE.

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

SEC. 5. CONTRACT AND GRANT AUTHORITY.

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

SEC. 6. ANNUAL REPORT.

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

SEC. 7. DEFINITIONS.

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

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

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

Output:
National Climate Service Act of 2009 - Requires the Secretary of Commerce to establish within the Climate Program Office of the National Oceanic and Atmospheric Administration (NOAA) a National Climate Service that includes a national center and a network of regional and local facilities for operational climate observation, modeling, and research. Requires the Service to: (1) inform the public about climate impacts; (2) serve as a clearinghouse and technical access point to stakeholders for information on climate, climate impacts, and adaptation, and relevant comprehensive databases of information; (3) provide education on climate impacts, vulnerabilities, and application of climate information in decisionmaking; (4) design decision-support tools that facilitate use of climate information in stakeholders' near-term operations and long-term planning; (5) facilitate user access to climate experts for technical assistance in the use of climate information and to inform the climate forecast community of their information needs; (6) provide researcher, modeler, and observations experts access to users to help guide direction of their activities; and (7) propose and evaluate adaptation strategies for climate variability and change.

Sets forth the Service's functions, including establishing an atmospheric monitoring and verification program utilizing aircraft, satellite, ground sensors, ocean and coastal observing systems, and modeling capabilities to monitor, measure, and verify greenhouse gas concentrations and emissions throughout the oceans and atmosphere.

Requires the Secretary to report to specified congressional committees on a plan of action for the Service.

Requires the Administrator of NOAA to appoint a Director of the Service. Requires the Director to appoint members of a National Climate Service Advisory Council to promote coordination across regional, national, and international concerns and assess information needs.


Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Biotechnology Future Investment
Expansion Act of 2003''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress makes the following findings:
            (1) American bioscience research corporations conduct long-
        term research and development on breakthrough medical
        technologies. This commercial bioscience research industry
        forms an irreplaceable link between pure scientific discovery
        and the development of powerful biomedical products and
        technologies. It is critical to the maintenance of American
        competitiveness internationally that these long-term research
        and development projects be encouraged.
            (2) Such long-term research projects have the greatest
        potential to revolutionize whole fields of science and industry
        for the benefit of the standard of living of Americans; and to
        yield solutions for critical social needs, even though these
        solutions might not result in large sales and profits (such as
        ``orphan'' drugs and other treatments alleviating great
        suffering in their recipients).
            (3) Long-term biomedical research companies are among the
        most research-intensive and capital-intensive companies in the
        world.
            (4) In addition to the scientific and technical risks
        attending their long-term research programs, many biomedical
        research companies must subject their technologies to lengthy
        and expensive regulatory reviews before they are permitted
        access to the marketplace.
            (5) Biomedical research companies typically operate in
        financially challenging circumstances. These companies must
        engage in intensive research activity for many years in order
        to develop their products and earn profits. Many are small
        businesses lacking the internal cash flow, stability and
        borrowing capacity of large corporations.
            (6) The long-term commercial bioscience research industry
        is heavily dependent on outside sources of equity capital to
        fund lengthy and intensive research prior to earning any
        revenues. The industry's long lead times and high levels of
        scientific and regulatory risk often impede access to capital.
            (7) The longstanding national policy of Government support
        and tax incentives for breakthrough commercial research
        reflects a recognition that the capital marketplace tends to
        allocate insufficient resources to sustain the Nation's need
        for such foundational scientific research and development.
            (8) American long-term bioscience research companies
        constitute one of the core commercial sectors which Congress
        intended to benefit from existing tax incentives for commercial
        research.
            (9) However, the current Federal income tax incentives are
        simply not working in the case of many bioscience companies
        focused on breakthrough medical technologies.
            (10) Current Federal income tax incentives do not work as
        intended for most high technology bioscience companies because
        they typically incur net operating losses for a decade or more
        during their lengthy research and development phases and
        therefore receive no contemporaneous benefit from these tax
        incentives.
            (11) Further, Federal tax rules aimed chiefly at preventing
        corporate loss trafficking and tax-motivated mergers and
        acquisitions penalize these companies. The very process of
        raising successive increments of private capital through
        routine equity financings triggers these rules and subjects
        biomedical research companies to severe limitations on net
        operating loss and tax credit carryforwards. These limitations
        practically eliminate for the commercial bioscience industry
        any economic benefit from these tax incentives.
            (12) These tax incentives instead tend to favor investment
        by large, profitable companies, often engaged in secondary or
        tertiary research activities, and thus to discriminate against
and to cause under-investment in longer-term breakthrough technologies,
a bias which is harmful to American competitiveness.
            (13) The inability to benefit from existing Federal income
        tax incentives for commercial research places long-term
        bioscience research companies at a substantial disadvantage in
        the capital marketplace where they must compete with other
        companies able to use these tax incentives currently.
            (14) A tax system that does not discriminate would ensure
        that existing tax incentives in favor of research and
        experimentation have the same cost-reducing impact on companies
        conducting both short-term and long-term research and thus
        render this tax incentive program neutral with regard to short-
        term and long-term research objectives, minimizing capital
        marketplace distortions caused by differences in tax and income
        status.
    (b) Purpose.--The purpose of this Act is to provide that long-term
biomedical research corporations will not incur limitations on
research-related tax incentive carryforwards simply because they engage
in the routine equity financings that are the financial lifeblood of
the industry.

SEC. 3. RESTORING THE BENEFIT OF TAX INCENTIVES FOR BIOMEDICAL RESEARCH
              AND CLINICAL TRIALS.

    (a) In General.--Subsection (l) of section 382 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
paragraph:
            ``(9) Certain financing transactions of biomedical research
        corporations.--
                    ``(A) General rule.--In the case of a biomedical
                research corporation, any owner shift involving a 5-
                percent shareholder which occurs as the result of a
                qualified investment during the testing period shall be
                treated for purposes of this section (other than this
                paragraph) as occurring before the testing period.
                    ``(B) Biomedical research corporation.--For
                purposes of this paragraph, the term `biomedical
                research corporation' means, with respect to any
                qualified investment, any domestic corporation subject
                to tax under this subchapter which is not in bankruptcy
                and which, as of the time of the closing on such
                investment--
                            ``(i) holds the rights to a drug or
                        biologic for which an investigational new drug
                        application is in effect under section 505 of
                        the Federal Food, Drug, and Cosmetic Act, and
                            ``(ii) certifies that, as of the time of
                        such closing, the drug or biologic is under
                        study in phase II or phase III of a clinical
                        investigation carried out under such section.
                    ``(C) Qualified investment.--For purposes of this
                paragraph, the term `qualified investment' means any
                acquisition of stock in a biomedical research
                corporation if such stock is acquired at its original
                issue (directly or through an underwriter), solely in
                exchange for cash, and the closing thereon occurs after
                the date of the enactment of this paragraph.
                    ``(D) Stock issued in exchange for convertible
                debt.--For purposes of this paragraph, stock issued by
                a biomedical research corporation in exchange for its
                convertible debt (or stock deemed under this section to
                be so issued) shall be treated as stock acquired by the
                debt holder at its original issue and solely in
                exchange for cash if the debt holder previously
                acquired the convertible debt at its original issue and
                solely in exchange for cash. In the case of an
                acquisition of stock in exchange for convertible debt,
                the requirements of this paragraph shall be applied
                separately as of the time of closing on the investment
                in convertible debt, and as of the time of actual
                conversion (or deemed conversion under this section) of
                the convertible debt for stock, except that the
                requirements of subparagraph (H) shall be applied only
                as of the time of closing on the issuance of the
                convertible debt.
                    ``(E) Biomedical research corporation must meet 5-
                year expenditure test with respect to any qualified
                investment.--
                            ``(i) In general.--This paragraph shall not
                        apply to a qualified investment in a biomedical
                        research corporation unless such corporation
                        meets the expenditure test for each year of the
                        measuring period.
                            ``(ii) Measuring period.--For purposes of
                        this subparagraph, the term `measuring period'
                        means, with respect to any qualified
                        investment, the taxable year of the biomedical
                        research corporation in which the closing on
                        the investment occurs, the 2 preceding taxable
years, and the 2 subsequent taxable years.
                            ``(iii) Clinical testing.--For purposes of
                        this subparagraph, the term `clinical testing'
                        means any human clinical testing which is
                        carried out under any investigational new drug
                        application in effect under section 505 of the
                        Federal Food, Drug, and Cosmetic Act.
                    ``(F) Effect of corporate redemptions on qualified
                investments.--Rules similar to the rules of section
                1202(c)(3) shall apply to qualified investments under
                this paragraph except that `stock acquired in a
                qualified investment' shall be substituted for
                `qualified small business stock' each place it appears
                therein.
                    ``(G) Effect of other transactions between
                biomedical research corporations and investors making
                qualified investments.--
                            ``(i) In general.--If, during the 2-year
                        period beginning 1 year before any qualified
                        investment, the biomedical research corporation
                        engages in another transaction with a member of
                        its qualified investment group and such
                        biomedical research corporation receives any
                        consideration other than cash in such
                        transaction, there shall be a presumption that
                        stock received in the otherwise qualified
                        investment transaction was not received solely
                        in exchange for cash.
                            ``(ii) Qualified investment group.--For
                        purposes of this subparagraph, the term
                        `qualified investment group' means, with
                        respect to any qualified investment, one or
                        more persons who receive stock issued in
                        exchange for the qualified investment, and any
                        person related to such persons within the
                        meaning of section 267(b) or section 707(b).
                            ``(iii) Regulations.--The Secretary shall
                        promulgate regulations exempting from this
                        subparagraph transactions which are customary
                        in the bioscience research industry and are of
                        minor value relative to the amount of the
                        qualified investment.
                    ``(H) Proceeds of qualified investments shall be
                devoted to research on preexisting technology.--
                            ``(i) In general.--This paragraph shall not
                        apply to any qualified investment unless the
                        net proceeds of such qualified investment do
                        not exceed the excess of--
                                    ``(I) the sum of the biomedical
                                research corporation's aggregate
                                qualifying clinical expenditures for
                                the 3 years following the qualified
                                investment, over
                                    ``(II) three times the
                                corporation's qualifying clinical
                                expenditures for the year preceding the
                                qualified investment, plus the amount
                                of the corporation's cash and cash
                                equivalents immediately before the
                                closing on the qualified investment.
                            ``(ii) Qualifying clinical expenditures.--
                        For purposes of this subparagraph, the term
                        `qualifying clinical expenditures' means
                        amounts described in section 41(b) which are
                        paid or incurred by a biomedical research
                        corporation for clinical testing in connection
                        with a drug or biologic for which an
                        investigational new drug application is in
                        effect under section 505 of the Federal Food,
                        Drug, and Cosmetic Act and which is (at the
                        time of the closing on the qualified
                        investment) under study in phase II or phase
                        III of a clinical investigation carried out
                        under such section.
                    ``(I) Regulations.--The Secretary may issue such
                regulations as may be appropriate to achieve the
                purposes of this paragraph, to prevent abuse, and to
                provide for treatment of biomedical research
                corporations under sections 383 and 384 that is
                consistent with the purposes of this paragraph.''.
    (b) Proceeds of Equity Investments To Be Treated as Working
Capital.--Subparagraph (C) of section 382(l)(4) of such Code is amended
by adding at the end the following: ``Such term shall not include any
assets reasonably expected to be used within 3 years to fund qualifying
clinical expenditures (as defined in paragraph (9)(H)(ii) without
regard to the parenthetical therein).''.
    (c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2002.

Output:
Biotechnology Future Investment Expansion Act of 2003 - Amends the Internal Revenue Code to provide that in the case of a biomedical research corporation, any owner shift involving a five-percent shareholder which occurs as the result of a qualified investment during the testing period shall be treated as occurring before the testing period. (Thus not counting toward net operating loss and tax credit carryover limitations.)

Defines: (1) "biomedical research corporation" as a domestic corporation not in bankruptcy which has a drug or biologic in certain clinical trials; and (2) "qualified investment" as a stock acquisition in a biomedical research corporation acquired in cash at its original issue.

Requires a biomedical research corporation to meet a five-year expenditure test with respect to any qualified investment.


Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Counseling in Shelters Act of
2002''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Nearly \1/3\ of American women report being physically
        or sexually abused by a husband or boyfriend at some point in
        their lives.
            (2) Fifty-six percent of women who experience any partner
        violence are diagnosed with a psychiatric disorder. Twenty-nine
        percent of all women who attempt suicide were battered, 37
        percent of battered women have symptoms of depression, 46
        percent have symptoms of anxiety disorder, and 45 percent
        experience post-traumatic stress disorder.
            (3) Children who witness domestic violence are more likely
        to exhibit behavioral and physical health problems including
        depression, anxiety, and violence toward peers. They are also
        more likely to attempt suicide, abuse drugs and alcohol, run
        away from home, engage in teenage prostitution, and commit
        sexual assault crimes.
            (4) Each year, at least 6 percent of all pregnant women,
        equal to about 240,000 pregnant women, are battered by the men
        in their lives.
            (5) Complications of pregnancy, including low weight gain,
        anemia, and first and second trimester bleeding are
        significantly higher for abused women, as are maternal rates of
        depression, suicide attempts, tobacco, alcohol, and illicit
        drug use.
            (6) A major domestic violence program in St. Petersburg,
        Florida, reports that 70 percent of the families that come to
        their shelter have substance abuse in their family--either the
        woman, her children, or her batterer. One study of a low-income
        Chicago neighborhood found that 42 percent of women
        experiencing severe abuse in the past 12 months reported
        depression.

SEC. 3. SHELTER GRANTS.

    (a) Grants Authorized.--
            (1) In general.--The Secretary of Health and Human Services
        (in this section referred to as the ``Secretary''), acting
        through the Assistant Secretary for the Administration on
        Children, Youth, and Families, shall make grants to eligible
        entities for the purpose of providing on site mental health and
        substance abuse counseling and referral services.
            (2) Eligible entity defined.--In this section the term
        ``eligible entity'' means a public or nonprofit private
        domestic or sexual violence program or other community-based
        entity including an Indian tribe or tribal organization that
        primarily serves victims of domestic violence.
            (3) Duration of awards.--The Secretary shall award grants
        under this section for a period not to exceed 5 years. Such
        grants may be renewed.
    (b) Use of Funds.--An entity awarded a grant pursuant to subsection
(a) shall--
            (1) hire licensed professionals to provide on site mental
        health and substance abuse counseling to women and children who
        have been subjected to domestic or sexual violence;
            (2) hire dedicated staff qualified to coordinate the mental
        health and substance abuse services for victims of domestic and
        sexual violence and their children including linking them with
        more comprehensive treatment programs in their local
        communities; and
            (3) provide training in the dynamics of domestic violence
        and sexual assault, including safety risk, potential lethality,
        and appropriate interventions, to those mental health and
        substance abuse professionals hired to provide services to
        these women and their children.
    (c) Application.--
            (1) In general.--Each eligible entity that desires to
        receive a grant under this section shall submit to the
        Secretary an application at such time, in such manner, and
        containing such information as the Secretary may require.
            (2) Contents.--Each application submitted pursuant to
        paragraph (1) shall contain a plan for the rigorous evaluation
        of the activities funded under this section, including process
        and outcome evaluation, and the submission of an evaluation at
        the end of the project period.
    (d) Grantmaking Considerations.-- The Secretary, in awarding grants
under this section shall--
            (1) ensure that such grants are distributed equitably among
        the regions of the country and among urban and rural areas; and
            (2) give preference to applicants with strong ties to
        minority communities and those that demonstrate high levels of
        cultural competence.
    (e) Technical Assistance.--The Secretary, acting through the
Assistant Secretary for the Administration on Children, Youth, and
Families, shall provide technical assistance to grant recipients with
respect to the implementation of programs to provide on site mental
health and substance abuse counseling and referral services.
    (f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $50,000,000 for fiscal year
2003, and such sums as may be necessary for succeeding fiscal years.

Output: Counseling in Shelters Act of 2002 - Directs the Secretary of Health and Human Services, acting through the Assistant Secretary for the Administration on Children, Youth, and Families, to make grants for up to five years to eligible community-based entities to provide on-site mental health and substance abuse counseling and referral services for victims of domestic or sexual violence. Permits grant funds to be used for hiring professionals and staff and providing training in the dynamics of domestic violence and sexual assault.Requires the Secretary, in awarding such grants, to: (1) ensure equitable geographic and urban/rural distribution; (2) give preference to entities with high levels of cultural competence and strong ties to minority communities; and (3) provide technical assistance.