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Thursday, October 2, 2008, 3:00 AM H.R. 1424: Bailout Bill, Part 13
2 term `treatment limitation' includes limits
3 on the frequency of treatment, number of
4 visits, days of coverage, or other similar
5 limits on the scope or duration of treat-
6 ment.
7 ``(4) AVAILABILITY OF PLAN INFORMATION.--
8 The criteria for medical necessity determinations
9 made under the plan with respect to mental health
10 or substance use disorder benefits (or the health in-
11 surance coverage offered in connection with the plan
12 with respect to such benefits) shall be made avail-
13 able by the plan administrator (or the health insur-
14 ance issuer offering such coverage) in accordance
15 with regulations to any current or potential partici-
16 pant, beneficiary, or contracting provider upon re-
17 quest. The reason for any denial under the plan (or
18 coverage) of reimbursement or payment for services
19 with respect to mental health or substance use dis-
20 order benefits in the case of any participant or bene-
21 ficiary shall, on request or as otherwise required, be
22 made available by the plan administrator (or the
23 health insurance issuer offering such coverage) to
24 the participant or beneficiary in accordance with
25 regulations.
324
1 ``(5) OUT-OF-NETWORK PROVIDERS.--In the
2 case of a plan or coverage that provides both med-
3 ical and surgical benefits and mental health or sub-
4 stance use disorder benefits, if the plan or coverage
5 provides coverage for medical or surgical benefits
6 provided by out-of-network providers, the plan or
7 coverage shall provide coverage for mental health or
8 substance use disorder benefits provided by out-of-
9 network providers in a manner that is consistent
10 with the requirements of this section.'';
11 (2) in subsection (b), by amending paragraph
12 (2) to read as follows:
13 ``(2) in the case of a group health plan (or
14 health insurance coverage offered in connection with
15 such a plan) that provides mental health or sub-
16 stance use disorder benefits, as affecting the terms
17 and conditions of the plan or coverage relating to
18 such benefits under the plan or coverage, except as
19 provided in subsection (a).'';
20 (3) in subsection (c)--
21 (A) in paragraph (1), by inserting before
22 the period the following: ``(as defined in section
23 2791(e)(4), except that for purposes of this
24 paragraph such term shall include employers
25 with 1 employee in the case of an employer re-
325
1 siding in a State that permits small groups to
2 include a single individual)''; and
3 (B) by striking paragraph (2) and insert-
4 ing the following:
5 ``(2) COST EXEMPTION.--
6 ``(A) IN GENERAL.--With respect to a
7 group health plan (or health insurance coverage
8 offered in connection with such a plan), if the
9 application of this section to such plan (or cov-
10 erage) results in an increase for the plan year
11 involved of the actual total costs of coverage
12 with respect to medical and surgical benefits
13 and mental health and substance use disorder
14 benefits under the plan (as determined and cer-
15 tified under subparagraph (C)) by an amount
16 that exceeds the applicable percentage described
17 in subparagraph (B) of the actual total plan
18 costs, the provisions of this section shall not
19 apply to such plan (or coverage) during the fol-
20 lowing plan year, and such exemption shall
21 apply to the plan (or coverage) for 1 plan year.
22 An employer may elect to continue to apply
23 mental health and substance use disorder parity
24 pursuant to this section with respect to the
326
1 group health plan (or coverage) involved regard-
2 less of any increase in total costs.
3 ``(B) APPLICABLE PERCENTAGE.--With re-
4 spect to a plan (or coverage), the applicable
5 percentage described in this subparagraph shall
6 be--
7 ``(i) 2 percent in the case of the first
8 plan year in which this section is applied;
9 and
10 ``(ii) 1 percent in the case of each
11 subsequent plan year.
12 ``(C) DETERMINATIONS BY ACTUARIES.--
13 Determinations as to increases in actual costs
14 under a plan (or coverage) for purposes of this
15 section shall be made and certified by a quali-
16 fied and licensed actuary who is a member in
17 good standing of the American Academy of Ac-
18 tuaries. All such determinations shall be in a
19 written report prepared by the actuary. The re-
20 port, and all underlying documentation relied
21 upon by the actuary, shall be maintained by the
22 group health plan or health insurance issuer for
23 a period of 6 years following the notification
24 made under subparagraph (E).
327
1 ``(D) 6-MONTH DETERMINATIONS.--If a
2 group health plan (or a health insurance issuer
3 offering coverage in connection with a group
4 health plan) seeks an exemption under this
5 paragraph, determinations under subparagraph
6 (A) shall be made after such plan (or coverage)
7 has complied with this section for the first 6
8 months of the plan year involved.
9 ``(E) NOTIFICATION.--
10 ``(i) IN GENERAL.--A group health
11 plan (or a health insurance issuer offering
12 coverage in connection with a group health
13 plan) that, based upon a certification de-
14 scribed under subparagraph (C), qualifies
15 for an exemption under this paragraph,
16 and elects to implement the exemption,
17 shall promptly notify the Secretary, the ap-
18 propriate State agencies, and participants
19 and beneficiaries in the plan of such elec-
20 tion.
21 ``(ii) REQUIREMENT.--A notification
22 to the Secretary under clause (i) shall in-
23 clude--
24 ``(I) a description of the number
25 of covered lives under the plan (or
328
1 coverage) involved at the time of the
2 notification, and as applicable, at the
3 time of any prior election of the cost-
4 exemption under this paragraph by
5 such plan (or coverage);
6 ``(II) for both the plan year upon
7 which a cost exemption is sought and
8 the year prior, a description of the ac-
9 tual total costs of coverage with re-
10 spect to medical and surgical benefits
11 and mental health and substance use
12 disorder benefits under the plan; and
13 ``(III) for both the plan year
14 upon which a cost exemption is sought
15 and the year prior, the actual total
16 costs of coverage with respect to men-
17 tal health and substance use disorder
18 benefits under the plan.
19 ``(iii) CONFIDENTIALITY.--A notifica-
20 tion to the Secretary under clause (i) shall
21 be confidential. The Secretary shall make
22 available, upon request and on not more
23 than an annual basis, an anonymous
24 itemization of such notifications, that in-
25 cludes--
329
1 ``(I) a breakdown of States by
2 the size and type of employers submit-
3 ting such notification; and
4 ``(II) a summary of the data re-
5 ceived under clause (ii).
6 ``(F) AUDITS BY APPROPRIATE AGEN-
7 CIES.--To determine compliance with this para-
8 graph, the Secretary may audit the books and
9 records of a group health plan or health insur-
10 ance issuer relating to an exemption, including
11 any actuarial reports prepared pursuant to sub-
12 paragraph (C), during the 6 year period fol-
13 lowing the notification of such exemption under
14 subparagraph (E). A State agency receiving a
15 notification under subparagraph (E) may also
16 conduct such an audit with respect to an ex-
17 emption covered by such notification.'';
18 (4) in subsection (e), by striking paragraph (4)
19 and inserting the following:
20 ``(4) MENTAL HEALTH BENEFITS.--The term
21 `mental health benefits' means benefits with respect
22 to services for mental health conditions, as defined
23 under the terms of the plan and in accordance with
24 applicable Federal and State law.
330
1 ``(5) SUBSTANCE USE DISORDER BENEFITS.--
2 The term `substance use disorder benefits' means
3 benefits with respect to services for substance use
4 disorders, as defined under the terms of the plan
5 and in accordance with applicable Federal and State
6 law.'';
7 (5) by striking subsection (f);
8 (6) by striking ``mental health benefits'' and in-
9 serting ``mental health and substance use disorder
10 benefits'' each place it appears in subsections
11 (a)(1)(B)(i), (a)(1)(C), (a)(2)(B)(i), and (a)(2)(C);
12 and
13 (7) by striking ``mental health benefits'' and in-
14 serting ``mental health or substance use disorder
15 benefits'' each place it appears (other than in any
16 provision amended by the previous paragraph).
17 (c) AMENDMENTS TO INTERNAL REVENUE CODE.--
18 Section 9812 of the Internal Revenue Code of 1986 is
19 amended--
20 (1) in subsection (a), by adding at the end the
21 following:
22 ``(3) FINANCIAL REQUIREMENTS AND TREAT-
23 MENT LIMITATIONS.--
24 ``(A) IN GENERAL.--In the case of a group
25 health plan that provides both medical and sur-
331
1 gical benefits and mental health or substance
2 use disorder benefits, such plan shall ensure
3 that--
4 ``(i) the financial requirements appli-
5 cable to such mental health or substance
6 use disorder benefits are no more restric-
7 tive than the predominant financial re-
8 quirements applied to substantially all
9 medical and surgical benefits covered by
10 the plan, and there are no separate cost
11 sharing requirements that are applicable
12 only with respect to mental health or sub-
13 stance use disorder benefits; and
14 ``(ii) the treatment limitations applica-
15 ble to such mental health or substance use
16 disorder benefits are no more restrictive
17 than the predominant treatment limita-
18 tions applied to substantially all medical
19 and surgical benefits covered by the plan
20 and there are no separate treatment limi-
21 tations that are applicable only with re-
22 spect to mental health or substance use
23 disorder benefits.
24 ``(B) DEFINITIONS.--In this paragraph:
332
1 ``(i) FINANCIAL REQUIREMENT.--The
2 term `financial requirement' includes
3 deductibles, copayments, coinsurance, and
4 out-of-pocket expenses, but excludes an ag-
5 gregate lifetime limit and an annual limit
6 subject to paragraphs (1) and (2),
7 ``(ii) PREDOMINANT.--A financial re-
8 quirement or treatment limit is considered
9 to be predominant if it is the most com-
10 mon or frequent of such type of limit or
11 requirement.
12 ``(iii) TREATMENT LIMITATION.--The
13 term `treatment limitation' includes limits
14 on the frequency of treatment, number of
15 visits, days of coverage, or other similar
16 limits on the scope or duration of treat-
17 ment.
18 ``(4) AVAILABILITY OF PLAN INFORMATION.--
19 The criteria for medical necessity determinations
20 made under the plan with respect to mental health
21 or substance use disorder benefits shall be made
22 available by the plan administrator in accordance
23 with regulations to any current or potential partici-
24 pant, beneficiary, or contracting provider upon re-
25 quest. The reason for any denial under the plan of
333
1 reimbursement or payment for services with respect
2 to mental health or substance use disorder benefits
3 in the case of any participant or beneficiary shall, on
4 request or as otherwise required, be made available
5 by the plan administrator to the participant or bene-
6 ficiary in accordance with regulations.
7 ``(5) OUT-OF-NETWORK PROVIDERS.--In the
8 case of a plan that provides both medical and sur-
9 gical benefits and mental health or substance use
10 disorder benefits, if the plan provides coverage for
11 medical or surgical benefits provided by out-of-net-
12 work providers, the plan shall provide coverage for
13 mental health or substance use disorder benefits pro-
14 vided by out-of-network providers in a manner that
15 is consistent with the requirements of this section.'';
16 (2) in subsection (b), by amending paragraph
17 (2) to read as follows:
18 ``(2) in the case of a group health plan that
19 provides mental health or substance use disorder
20 benefits, as affecting the terms and conditions of the
21 plan relating to such benefits under the plan, except
22 as provided in subsection (a).'';
23 (3) in subsection (c)--
24 (A) by amending paragraph (1) to read as
25 follows:
334
1 ``(1) SMALL EMPLOYER EXEMPTION.--
2 ``(A) IN GENERAL.--This section shall not
3 apply to any group health plan for any plan
4 year of a small employer.
5 ``(B) SMALL EMPLOYER.--For purposes of
6 subparagraph (A), the term `small employer'
7 means, with respect to a calendar year and a
8 plan year, an employer who employed an aver-
9 age of at least 2 (or 1 in the case of an em-
10 ployer residing in a State that permits small
11 groups to include a single individual) but not
12 more than 50 employees on business days dur-
13 ing the preceding calendar year. For purposes
14 of the preceding sentence, all persons treated as
15 a single employer under subsection (b), (c),
16 (m), or (o) of section 414 shall be treated as 1
17 employer and rules similar to rules of subpara-
18 graphs (B) and (C) of section 4980D(d)(2)
19 shall apply.''; and
20 (B) by striking paragraph (2) and insert-
21 ing the following:
22 ``(2) COST EXEMPTION.--
23 ``(A) IN GENERAL.--With respect to a
24 group health plan, if the application of this sec-
25 tion to such plan results in an increase for the
335
1 plan year involved of the actual total costs of
2 coverage with respect to medical and surgical
3 benefits and mental health and substance use
4 disorder benefits under the plan (as determined
5 and certified under subparagraph (C)) by an
6 amount that exceeds the applicable percentage
7 described in subparagraph (B) of the actual
8 total plan costs, the provisions of this section
9 shall not apply to such plan during the fol-
10 lowing plan year, and such exemption shall
11 apply to the plan for 1 plan year. An employer
12 may elect to continue to apply mental health
13 and substance use disorder parity pursuant to
14 this section with respect to the group health
15 plan involved regardless of any increase in total
16 costs.
17 ``(B) APPLICABLE PERCENTAGE.--With re-
18 spect to a plan, the applicable percentage de-
19 scribed in this subparagraph shall be--
20 ``(i) 2 percent in the case of the first
21 plan year in which this section is applied;
22 and
23 ``(ii) 1 percent in the case of each
24 subsequent plan year.
336
1 ``(C) DETERMINATIONS BY ACTUARIES.--
2 Determinations as to increases in actual costs
3 under a plan for purposes of this section shall
4 be made and certified by a qualified and li-
5 censed actuary who is a member in good stand-
6 ing of the American Academy of Actuaries. All
7 such determinations shall be in a written report
8 prepared by the actuary. The report, and all
9 underlying documentation relied upon by the
10 actuary, shall be maintained by the group
11 health plan for a period of 6 years following the
12 notification made under subparagraph (E).
13 ``(D) 6-MONTH DETERMINATIONS.--If a
14 group health plan seeks an exemption under
15 this paragraph, determinations under subpara-
16 graph (A) shall be made after such plan has
17 complied with this section for the first 6
18 months of the plan year involved.
19 ``(E) NOTIFICATION.--
20 ``(i) IN GENERAL.--A group health
21 plan that, based upon a certification de-
22 scribed under subparagraph (C), qualifies
23 for an exemption under this paragraph,
24 and elects to implement the exemption,
25 shall promptly notify the Secretary, the ap-
337
1 propriate State agencies, and participants
2 and beneficiaries in the plan of such elec-
3 tion.
4 ``(ii) REQUIREMENT.--A notification
5 to the Secretary under clause (i) shall in-
6 clude--
7 ``(I) a description of the number
8 of covered lives under the plan in-
9 volved at the time of the notification,
10 and as applicable, at the time of any
11 prior election of the cost-exemption
12 under this paragraph by such plan;
13 ``(II) for both the plan year upon
14 which a cost exemption is sought and
15 the year prior, a description of the ac-
16 tual total costs of coverage with re-
17 spect to medical and surgical benefits
18 and mental health and substance use
19 disorder benefits under the plan; and
20 ``(III) for both the plan year
21 upon which a cost exemption is sought
22 and the year prior, the actual total
23 costs of coverage with respect to men-
24 tal health and substance use disorder
25 benefits under the plan.
338
1 ``(iii) CONFIDENTIALITY.--A notifica-
2 tion to the Secretary under clause (i) shall
3 be confidential. The Secretary shall make
4 available, upon request and on not more
5 than an annual basis, an anonymous
6 itemization of such notifications, that in-
7 cludes--
8 ``(I) a breakdown of States by
9 the size and type of employers submit-
10 ting such notification; and
11 ``(II) a summary of the data re-
12 ceived under clause (ii).
13 ``(F) AUDITS BY APPROPRIATE AGEN-
14 CIES.--To determine compliance with this para-
15 graph, the Secretary may audit the books and
16 records of a group health plan relating to an
17 exemption, including any actuarial reports pre-
18 pared pursuant to subparagraph (C), during
19 the 6 year period following the notification of
20 such exemption under subparagraph (E). A
21 State agency receiving a notification under sub-
22 paragraph (E) may also conduct such an audit
23 with respect to an exemption covered by such
24 notification.'';
339
1 (4) in subsection (e), by striking paragraph (4)
2 and inserting the following:
3 ``(4) MENTAL HEALTH BENEFITS.--The term
4 `mental health benefits' means benefits with respect
5 to services for mental health conditions, as defined
6 under the terms of the plan and in accordance with
7 applicable Federal and State law.
8 ``(5) SUBSTANCE USE DISORDER BENEFITS.--
9 The term `substance use disorder benefits' means
10 benefits with respect to services for substance use
11 disorders, as defined under the terms of the plan
12 and in accordance with applicable Federal and State
13 law.'';
14 (5) by striking subsection (f);
15 (6) by striking ``mental health benefits'' and in-
16 serting ``mental health and substance use disorder
17 benefits'' each place it appears in subsections
18 (a)(1)(B)(i), (a)(1)(C), (a)(2)(B)(i), and (a)(2)(C);
19 and
20 (7) by striking ``mental health benefits'' and in-
21 serting ``mental health or substance use disorder
22 benefits'' each place it appears (other than in any
23 provision amended by the previous paragraph).
24 (d) REGULATIONS.--Not later than 1 year after the
25 date of enactment of this Act, the Secretaries of Labor,
340
1 Health and Human Services, and the Treasury shall issue
2 regulations to carry out the amendments made by sub-
3 sections (a), (b), and (c), respectively.
4 (e) EFFECTIVE DATE.--
5 (1) IN GENERAL.--The amendments made by
6 this section shall apply with respect to group health
7 plans for plan years beginning after the date that is
8 1 year after the date of enactment of this Act, re-
9 gardless of whether regulations have been issued to
10 carry out such amendments by such effective date,
11 except that the amendments made by subsections
12 (a)(5), (b)(5), and (c)(5), relating to striking of cer-
13 tain sunset provisions, shall take effect on January
14 1, 2009.
15 (2) SPECIAL RULE FOR COLLECTIVE BAR-
16 GAINING AGREEMENTS.--In the case of a group
17 health plan maintained pursuant to one or more col-
18 lective bargaining agreements between employee rep-
19 resentatives and one or more employers ratified be-
20 fore the date of the enactment of this Act, the
21 amendments made by this section shall not apply to
22 plan years beginning before the later of--
23 (A) the date on which the last of the col-
24 lective bargaining agreements relating to the
25 plan terminates (determined without regard to
341
1 any extension thereof agreed to after the date
2 of the enactment of this Act), or
3 (B) January 1, 2009.
4 For purposes of subparagraph (A), any plan amend-
5 ment made pursuant to a collective bargaining
6 agreement relating to the plan which amends the
7 plan solely to conform to any requirement added by
8 this section shall not be treated as a termination of
9 such collective bargaining agreement.
10 (f) ASSURING COORDINATION.--The Secretary of
11 Health and Human Services, the Secretary of Labor, and
12 the Secretary of the Treasury may ensure, through the
13 execution or revision of an interagency memorandum of
14 understanding among such Secretaries, that--
15 (1) regulations, rulings, and interpretations
16 issued by such Secretaries relating to the same mat-
17 ter over which two or more such Secretaries have re-
18 sponsibility under this section (and the amendments
19 made by this section) are administered so as to have
20 the same effect at all times; and
21 (2) coordination of policies relating to enforcing
22 the same requirements through such Secretaries in
23 order to have a coordinated enforcement strategy
24 that avoids duplication of enforcement efforts and
25 assigns priorities in enforcement.
342
1 (g) CONFORMING CLERICAL AMENDMENTS.--
2 (1) ERISA HEADING.--
3 (A) IN GENERAL.--The heading of section
4 712 of the Employee Retirement Income Secu-
5 rity Act of 1974 is amended to read as follows:
6 ``SEC. 712. PARITY IN MENTAL HEALTH AND SUBSTANCE
7 USE DISORDER BENEFITS.''.
8 (B) CLERICAL AMENDMENT.--The table of
9 contents in section 1 of such Act is amended by
10 striking the item relating to section 712 and in-
11 serting the following new item:
``Sec. 712. Parity in mental health and substance use disorder benefits.''.
12 (2) PHSA HEADING.--The heading of section
13 2705 of the Public Health Service Act is amended
14 to read as follows:
15 ``SEC. 2705. PARITY IN MENTAL HEALTH AND SUBSTANCE
16 USE DISORDER BENEFITS.''.
17 (3) IRC HEADING.--
18 (A) IN GENERAL.--The heading of section
19 9812 of the Internal Revenue Code of 1986 is
20 amended to read as follows:
21 ``SEC. 9812. PARITY IN MENTAL HEALTH AND SUBSTANCE
22 USE DISORDER BENEFITS.''.
23 (B) CLERICAL AMENDMENT.--The table of
24 sections for subchapter B of chapter 100 of
25 such Code is amended by striking the item re-
343
1 lating to section 9812 and inserting the fol-
2 lowing new item:
``Sec. 9812. Parity in mental health and substance use disorder benefits.''.
3 (h) GAO STUDY ON COVERAGE AND EXCLUSION OF
4 MENTAL HEALTH AND SUBSTANCE USE DISORDER DIAG-
5 NOSES.--
6 (1) IN GENERAL.--The Comptroller General of
7 the United States shall conduct a study that ana-
8 lyzes the specific rates, patterns, and trends in cov-
9 erage and exclusion of specific mental health and
10 substance use disorder diagnoses by health plans
11 and health insurance. The study shall include an
12 analysis of--
13 (A) specific coverage rates for all mental
14 health conditions and substance use disorders;
15 (B) which diagnoses are most commonly
16 covered or excluded;
17 (C) whether implementation of this Act
18 has affected trends in coverage or exclusion of
19 such diagnoses; and
20 (D) the impact of covering or excluding
21 specific diagnoses on participants' and enroll-
22 ees' health, their health care coverage, and the
23 costs of delivering health care.
24 (2) REPORTS.--Not later than 3 years after the
25 date of the enactment of this Act, and 2 years after
344
1 the date of submission the first report under this
2 paragraph, the Comptroller General shall submit to
3 Congress a report on the results of the study con-
4 ducted under paragraph (1).
5 TITLE VI--OTHER PROVISIONS
6 SEC. 601. SECURE RURAL SCHOOLS AND COMMUNITY SELF-
7 DETERMINATION PROGRAM.
8 (a) REAUTHORIZATION OF THE SECURE RURAL
9 SCHOOLS AND COMMUNITY SELF-DETERMINATION ACT
10 OF 2000.--The Secure Rural Schools and Community
11 Self-Determination Act of 2000 (16 U.S.C. 500 note; Pub-
12 lic Law 106393) is amended by striking sections 1
13 through 403 and inserting the following:
14 ``SECTION 1. SHORT TITLE.
15 ``This Act may be cited as the `Secure Rural Schools
16 and Community Self-Determination Act of 2000'.
17 ``SEC. 2. PURPOSES.
18 ``The purposes of this Act are--
19 ``(1) to stabilize and transition payments to
20 counties to provide funding for schools and roads
21 that supplements other available funds;
22 ``(2) to make additional investments in, and
23 create additional employment opportunities through,
24 projects that--
345
1 ``(A)(i) improve the maintenance of exist-
2 ing infrastructure;
3 ``(ii) implement stewardship objectives that
4 enhance forest ecosystems; and
5 ``(iii) restore and improve land health and
6 water quality;
7 ``(B) enjoy broad-based support; and
8 ``(C) have objectives that may include--
9 ``(i) road, trail, and infrastructure
10 maintenance or obliteration;
11 ``(ii) soil productivity improvement;
12 ``(iii) improvements in forest eco-
13 system health;
14 ``(iv) watershed restoration and main-
15 tenance;
16 ``(v) the restoration, maintenance, and
17 improvement of wildlife and fish habitat;
18 ``(vi) the control of noxious and exotic
19 weeds; and
20 ``(vii) the reestablishment of native
21 species; and
22 ``(3) to improve cooperative relationships
23 among--
24 ``(A) the people that use and care for Fed-
25 eral land; and
346
1 ``(B) the agencies that manage the Federal
2 land.
3 ``SEC. 3. DEFINITIONS.
4 ``In this Act:
5 ``(1) ADJUSTED SHARE.--The term `adjusted
6 share' means the number equal to the quotient ob-
7 tained by dividing--
8 ``(A) the number equal to the quotient ob-
9 tained by dividing--
10 ``(i) the base share for the eligible
11 county; by
12 ``(ii) the income adjustment for the el-
13 igible county; by
14 ``(B) the number equal to the sum of the
15 quotients obtained under subparagraph (A) and
16 paragraph (8)(A) for all eligible counties.
17 ``(2) BASE SHARE.--The term `base share'
18 means the number equal to the average of--
19 ``(A) the quotient obtained by dividing--
20 ``(i) the number of acres of Federal
21 land described in paragraph (7)(A) in each
22 eligible county; by
23 ``(ii) the total number acres of Fed-
24 eral land in all eligible counties in all eligi-
25 ble States; and
347
1 ``(B) the quotient obtained by dividing--
2 ``(i) the amount equal to the average
3 of the 3 highest 25-percent payments and
4 safety net payments made to each eligible
5 State for each eligible county during the
6 eligibility period; by
7 ``(ii) the amount equal to the sum of
8 the amounts calculated under clause (i)
9 and paragraph (9)(B)(i) for all eligible
10 counties in all eligible States during the
11 eligibility period.
12 ``(3) COUNTY PAYMENT.--The term `county
13 payment' means the payment for an eligible county
14 calculated under section 101(b).
15 ``(4) ELIGIBLE COUNTY.--The term `eligible
16 county' means any county that--
17 ``(A) contains Federal land (as defined in
18 paragraph (7)); and
19 ``(B) elects to receive a share of the State
20 payment or the county payment under section
21 102(b).
22 ``(5) ELIGIBILITY PERIOD.--The term `eligi-
23 bility period' means fiscal year 1986 through fiscal
24 year 1999.
348
1 ``(6) ELIGIBLE STATE.--The term `eligible
2 State' means a State or territory of the United
3 States that received a 25-percent payment for 1 or
4 more fiscal years of the eligibility period.
5 ``(7) FEDERAL LAND.--The term `Federal land'
6 means--
7 ``(A) land within the National Forest Sys-
8 tem, as defined in section 11(a) of the Forest
9 and Rangeland Renewable Resources Planning
10 Act of 1974 (16 U.S.C. 1609(a)) exclusive of
11 the National Grasslands and land utilization
12 projects designated as National Grasslands ad-
13 ministered pursuant to the Act of July 22,
14 1937 (7 U.S.C. 10101012); and
15 ``(B) such portions of the revested Oregon
16 and California Railroad and reconveyed Coos
17 Bay Wagon Road grant land as are or may
18 hereafter come under the jurisdiction of the De-
19 partment of the Interior, which have heretofore
20 or may hereafter be classified as timberlands,
21 and power-site land valuable for timber, that
22 shall be managed, except as provided in the
23 former section 3 of the Act of August 28, 1937
24 (50 Stat. 875; 43 U.S.C. 1181c), for permanent
25 forest production.
349
1 ``(8) 50-PERCENT ADJUSTED SHARE.--The
2 term `50-percent adjusted share' means the number
3 equal to the quotient obtained by dividing--
4 ``(A) the number equal to the quotient ob-
5 tained by dividing--
6 ``(i) the 50-percent base share for the
7 eligible county; by
8 ``(ii) the income adjustment for the el-
9 igible county; by
10 ``(B) the number equal to the sum of the
11 quotients obtained under subparagraph (A) and
12 paragraph (1)(A) for all eligible counties.
13 ``(9) 50-PERCENT BASE SHARE.--The term `50-
14 percent base share' means the number equal to the
15 average of--
16 ``(A) the quotient obtained by dividing--
17 ``(i) the number of acres of Federal
18 land described in paragraph (7)(B) in each
19 eligible county; by
20 ``(ii) the total number acres of Fed-
21 eral land in all eligible counties in all eligi-
22 ble States; and
23 ``(B) the quotient obtained by dividing--
24 ``(i) the amount equal to the average
25 of the 3 highest 50-percent payments made
350
1 to each eligible county during the eligibility
2 period; by
3 ``(ii) the amount equal to the sum of
4 the amounts calculated under clause (i)
5 and paragraph (2)(B)(i) for all eligible
6 counties in all eligible States during the
7 eligibility period.
8 ``(10) 50-PERCENT PAYMENT.--The term `50-
9 percent payment' means the payment that is the
10 sum of the 50-percent share otherwise paid to a
11 county pursuant to title II of the Act of August 28,
12 1937 (chapter 876; 50 Stat. 875; 43 U.S.C. 1181f),
13 and the payment made to a county pursuant to the
14 Act of May 24, 1939 (chapter 144; 53 Stat. 753; 43
15 U.S.C. 1181f1 et seq.).
16 ``(11) FULL FUNDING AMOUNT.--The term `full
17 funding amount' means--
18 ``(A) $500,000,000 for fiscal year 2008;
19 and
20 ``(B) for fiscal year 2009 and each fiscal
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