E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 105 CONGRESS, SECOND SESSION

Vol. 144 WASHINGTON, FRIDAY, JULY 10, 1998 No. 91 House of Representatives The House was not in session today. Its next meeting will be held on Tuesday, July 14, 1998, at 12:30 p.m. Senate FRIDAY, JULY 10, 1998

The Senate met at 9:28 a.m. and was night, the Senate will now proceed to Mr. LOTT. Mr. President, I am called to order by the President pro the consideration of S. Con. Res. 107 re- pleased the Senate is about to vote on tempore (Mr. THURMOND). garding Taiwan, with a rollcall vote oc- S. Con. Res. 107, introduced by Senator curring immediately after I give a brief TORRICELLI, myself and many others PRAYER statement on the resolution. earlier this week. This resolution was The Chaplain, Dr. Lloyd John Following that vote, the Senate will necessary to address the uncertainty Ogilvie, offered the following prayer: be asked to turn to any other Legisla- created by President Clinton’s remarks Almighty God, we claim Your prom- tive or Executive Calendar items that in Shanghai on his recent trip to ise, ‘‘I will not forget You. See, I have have been cleared for action. However, China. inscribed You on the palms of my no further rollcall votes will occur dur- Our resolution reaffirms our commit- hands.’’—Isaiah 49:16. So with con- ing Friday’s session of the Senate. ments to Taiwan as spelled out in the fidence we pray the ancient Hebrew As a reminder to all Senators, a clo- 1979 Taiwan Relations Act. That act is childhood prayer, ‘‘Father, into Your ture motion was filed on the motion to the law of the land. Successive Presi- hand I commit my spirit.’’—Psalm 31:5. proceed to the private property rights dents have reached bilateral agree- As we pray that prayer we get our- legislation. That cloture vote will ments with the People’s Republic of selves off our own hands and into Your occur on Monday, July 13, at 5:45 p.m. China, but they have never been sub- strong and competent hands. We take As a final announcement, there will mitted to the Senate for ratification. each of the fears in our jumbled mass also be a joint meeting of Congress on They are not binding on the United of worries and concerns and surrender Wednesday, July 15, at 10 a.m. to re- States. The Taiwan Relations Act is. It is unfortunate the President chose them to You. You have promised to ceive an address by the President of to lay out a new course on Taiwan—un- keep us in perfect peace if we allow Romania. I thank my colleagues for their co- fortunately it was done in Shanghai, You to keep our minds stayed on You. operation on the schedule, including unfortunately it was done without any Interrupt us when we get too busy and getting the higher education bill consultation with Congress, and unfor- remind us that we are here to serve passed last night. tunately it was done without consulta- You. When we forget You, remind us tion with the democratic government that You never forget or forsake us. f of Taiwan. May that awesome assurance steady AFFIRMING THE UNITED STATES It is also unfortunate the President our course and fill our sails with the COMMITMENTS TO TAIWAN did not apparently even seek to get wind of Your power. Through our Lord The PRESIDING OFFICER (Mr. China’s leaders to renounce the use of and Savior. Amen. ALLARD). Under the previous order, the force against Taiwan. Instead, he said f Foreign Relations Committee is dis- exactly what Beijing wanted to hear. charged from Senate Concurrent Reso- One likely effect of the President’s RECOGNITION OF THE MAJORITY lution 107, and the Senate will now pro- statements is to strengthen the voices LEADER ceed to its consideration, which the in Taiwan seeking full independence. The PRESIDENT pro tempore. The clerk will report. While seeking to please Beijing, he has able majority leader is now recognized. The assistant legislative clerk read strengthened those in Taiwan who Mr. LOTT. Thank you, Mr. President. as follows: argue the United States cannot be f A concurrent resolution (S. Con. Res. 107) trusted as an ally. affirming the United States commitments to President Clinton’s statements have SCHEDULE Taiwan. emboldened Beijing in its efforts to in- Mr. LOTT. Mr. President, pursuant The Senate proceeded to consider the timidate Taiwan. A Chinese official to the consent agreement reached last resolution. told Taiwan to ‘‘face reality.’’ The

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.

S7915

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VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00001 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7916 CONGRESSIONAL RECORD — SENATE July 10, 1998 Washington Post reports today the Bei- the PRC’s continuing—albeit slow— noes’’ policy. Such a decision was hard- jing plans ‘‘to use the remarks as a progress toward further openness. ly accidental, and so I must ask why lever to force Taiwan into political But Mr. President, I was disturbed by that decision was made. And in the talks on reunification.’’ the President’s pronouncements on total absence of any other rational ex- The article also reports that the re- Taiwan and the ‘‘three noes.’’ The planation from the White House, I and marks ‘‘underscore the important role PRC-Taiwan-US relationship is a very others can only conclude that the the United States has played in forcing complex one. While it certainly can be statement was some sort of quid pro Taiwan to the bargaining table.’’ argued that the President’s statement quo. Chinese officials understand what was simply a restatement of actual Fourth, and most disturbing to me, Clinton officials deny: The President’s U.S. policy on Taiwan, in a culture, on the President explicitly stated that the remarks were a major victory for Bei- both sides of the Taiwan Straits, where United States will not under any cir- jing and major blow to democratic Tai- nuances are everything, I believe that cumstances support the independence wan. the statement sent the worst possible of Taiwan. While it could be said that Passage of this resolution sends a signals to both sides. this policy is implicit in the fact that powerful signal that the Senate is not First, the statement was the first the United States supports the ‘‘one accepting President Clinton’s new pol- time that a President of the United China’’ policy and does not support icy. It is a strong statement coming so States has publicly adopted the PRC ‘‘two Chinas’’ or ‘‘one China one Tai- soon after his return to the United policy of the ‘‘three noes.’’ While—as wan,’’ it is the first time in my knowl- States. the President’s national security ad- edge that it has been publicly enun- But passage of this resolution will viser pointed out to me in a meeting ciated in this manner. In addition, it not be the end of our efforts to try to yesterday—it is true that both he and seems to me to completely rule out a understand the administration’s new Secretary Albright have made similar bid for independence even if the PRC policy on Taiwan. Administration statements in the past, and it is true uses force to reunify with Taiwan—a spokesmen have said they have not that in many ways the statement was course of action it has pointedly re- changed policy, when the opposite is simply a restatement of implicit U.S. fused to rule out. obvious. policies, the fact that the pronounce- So Mr. President, I think it only We will explore whether the adminis- ment came directly from the President proper under these unfortunate cir- tration stands by its 1994 Taiwan Pol- gives it a special gravity in Chinese cumstances that the Congress make icy Review. That review pledged to up- eyes. clear its position on the status of Tai- grade relations with Taiwan. That re- Second, it occurred while the Presi- wan. For that reason, I support the res- view pledged to support Taiwan’s par- dent was still in the PRC, during the olution and urge my colleagues to do ticipation in certain international or- first visit of an American President the same. ganizations. Is this still administration since 1989, and more ominously for the Mr. MURKOWSKI. Mr. President, I policy? Taiwanese, in Shanghai, the site of am pleased that the Senate is acting We also will try to determine wheth- what they regard as the infamous with swift resolve in passing this im- er the administration still adheres to Shanghai Communique´. portant resolution reaffirming our the ‘‘Six Assurances’’ made to the Sen- Third, to me the statement bore all commitments and support to the peo- ate in 1982: No date for ending arms the markings of a quid pro quo. Any ple and government of Taiwan. This is sales to Taiwan; no prior consultations outside observer looking at the give- an important statement, which I hope with Beijing on arms sales to Taiwan; and-take of the summit would see that gives some sense of reassurance to our no U.S. mediation role between Taipei the PRC gave the U.S. four unprece- friends in Taiwan that the United and Beijing; no agreement to alter the dented opportunities for the President States will not turn its back on the Taiwan Relations Act; no change in the to make live statements on Chinese TV right of any people to choose the path United States position regarding Tai- and radio. What did the PRC get in re- of democracy and freedom. And that we wan’s sovereignty; and no pressure on turn in what for both sides is always will not waiver in our support simply Taiwan to enter into negotiations with supposed to be a zero-sum game, they for political expediency. Beijing. might ask? Well, aside from the recep- Yesterday before the Senate Finance We will ask the administration if tion in Tiananmen Square, the only Committee, I asked our Secretary of they still adhere to these assurances other concession to the PRC I can find State Madeleine Albright about the given to the Senate after the Third is the Taiwan statement. President’s statements in China. Well, Communique was reached in 1982. And let there be no doubt, Mr. Presi- to no real surprise, the Secretary had This resolution is an important step dent, the statement was a useful con- to pretend that there has been no pol- and a timely step. But it is not the end cession to the PRC. Beijing officials icy change on Taiwan since official re- of repairing the damage from the have stated that they intend to use the lations were terminated with Taiwan President’s statements in China. President’s remarks as a lever to force in 1979. Mr. President, this is an inde- Mr. President, I yield the floor. Taiwan into political talks on reunifi- fensible line; the Administration clear- Mr. THOMAS. Mr. President, as the cation. The Foreign Ministry stated ly agreed to China’s position on the chairman of the Subcommittee on East yesterday that Clinton’s statement has Three No’s’’; possibly as early as when Asian and Pacific Affairs, I rise this ‘‘positive implications for the resolu- when President Jiang was here in morning in support of the resolution on tion of the Taiwan question.’’ Tang Washington, D.C. last October, but Taiwan. Shubei, the Vice President of the most certainly reiterated by President My expectations for the recent sum- PRC’s Association for Relations Across Clinton himself while in China last mit meeting in the PRC were, frankly, the Taiwan Straits (ARATS) with month. Make no mistake about it, this not high. Summit meetings such as the whom I have discussed the Taiwan is a policy change—and a dangerous one in Beijing rarely provide the at- issue on several occasions, has said one at that. mosphere for momentous policy break- that the remarks helped the PRC: The Washington Post this morning throughs. Rather, they are an impor- ‘‘This has provided favorable condi- has reported that the People’s Republic tant opportunity for leaders to ex- tions for the development of cross- of China is already using President change views and to discuss further strait relations.’’ Clinton’s statements for leverage to avenues of bilateral cooperation. This It seems to me that the President bring Taiwan to the bargaining table. summit then, viewed from that stand- could have simply said, when asked, While this Administration claims it point, met expectations. ‘‘There has been no change in the pol- would never force Taiwan to negotiate And I must say, that I was encour- icy of the United States on the Taiwan with Beijing, it has done so by slowly aged by the willingness of the PRC to question’’ or ‘‘The United States’ posi- taking away all its negotiating cards broadcast both the Clinton-Jiang press tion on the Taiwan question remains in the middle of the night and without conference and the President’s speech the same’’ or words to that effect. In- consultation. I ask unanimous consent from Beijing Daxue in Beijing. Clearly, stead, he made a conscious decision to that this article appear in the RECORD that decision was an important step in explicitly adopt the PRC’s ‘‘three at the conclusion of my remarks.

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00002 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7917 Mr. President, the United States is China in the Sino-Japanese War. In 1949, Na- Were the President’s statements al- the greatest example for what democ- tionalist Chinese leader Chiang Kai-shek fled lowed to stand, they would constitute racy can accomplish; we are the great- to Taiwan from the mainland after his forces an abandonment of Taiwan to its fate lost a civil war to Chinese Communist forces at the hands of a communist regime est advocate for democracy and free- led by Mao Zedong. Since then, the two sides dom in the history of mankind. But for have moved further away from each other— that has shown itself willing to slaugh- some strange reason, the President of in both economic and political development. ter its own people and resort to force the United States chose to publicly In Beijing, Foreign Ministry spokesman and intimidation whenever useful. handcuff the ability of the 21 million Tang Guoqiang said Clinton’s statement has This is unacceptable, Mr. President, people in Taiwan to pursue the right of ‘‘positive implications for the resolution of and we must not let it stand. As the democracy. Will this deter others from the Taiwan question,’’ and he added: ‘‘We world’s first free nation, and as the hope that Taiwan authorities will get a clear summoning the courage to pursue the leader of the free world, we have a re- understanding of the situation, face reality sponsibility to stand up for nations path of freedom? I hope not, but if the and place importance on the national inter- example is there that the United est. like Taiwan which have moved toward States will not support the quest; than ‘‘Similarly, the official China Daily quoted democracy and free markets. We owe it I think it is remains more than a possi- one of Beijing’s top negotiators with Taiwan to the people of Taiwan to renew our bility. as saying that Clinton’s remarks had helped commitment to their democratic insti- Indeed, this a dark day for democ- China. ‘‘This has provided favorable condi- tutions and to their right to determine tions for the development of cross-strait re- their own future on a democratic basis. racy and freedom. While I am pleased lations,’’ said Tang Shubei, vice president of that the Senate is making this impor- It also is important to note, Mr. the Association for Relations Across the Tai- President, that the People’s Republic tant statement, I fear that the damage wan Strait. ‘‘But cross-strait issues will ulti- has been done. mately be solved by the Chinese peo- of China has engaged in shows of force Mr. President, I yield the floor. ple.’’Meanwhile, that group’s Taiwanese and attempted military intimidation [From the Washington Post, July 10, 1998] counterpart, the semi-official Straits Ex- toward Taiwan over the course of sev- change Foundation, informed the Chinese as- eral decades. Only two years ago, in CHINA TELLS TAIWAN TO ‘‘FACE REALITY’’ sociation that its deputy secretary general, 1996, the United States found it nec- REUNIFICATION TALKS URGED Li Yafei, could visit Taiwan July 24–31. Li’s essary to send aircraft carriers to the (By John Pomfret) visit is to be followed by a reciprocal trip to area to let the Chinese communist gov- BEIJING, July 9—China urged Taiwan today China by the leader of the Taiwan founda- ernment know that we would respond to ‘‘face reality’’ and agree to talks on even- tion, Koo Chen-fu. In June, Beijing invited tual reunification with China following com- Koo to visit China sometime in September or should they take military action ments by President Clinton that the United October, and Koo said later he plans to go in against Taiwan. States will not support an independent Tai- mid-September. By explicitly stating that the United wan. In 1993, Koo and Chinese association leader States would not support the Tai- Taiwan, meanwhile, announced it had Wang Daohan met in Singapore in a land- wanese people’s right to determine agreed to a visit by a senior Beijing nego- mark gathering that signaled warming ties their own future in a democratic man- tiator to prepare for resumption of high-level between the old rivals. But after two years of ner, President Clinton sent a strong improving relations, the ties collapsed in dialogue between the two rivals, separated signal to the communist government in by the 100-mile-wide Taiwan Strait. 1995 when Taiwanese President Lee Teng-hui The developments indicate that after a obtained a visa to visit the United States for Beijing that we might stand idly by three-year freeze, talks could begin as early the 25th reunion of his Cornell University while it took control of Taiwan by as this fall between the two sides. They also class. force. underscore the important role the United China launched a series of military exer- Mr. President, it was precisely this States has played in forcing Taiwan to the cises off the Taiwanese coast in 1995 and 1996, kind of miscalculation that precip- bargaining table. Clinton’s statement, dur- lobbing cruise missiles into the area. In 1996, itated the war in Korea, a war in which ing his recent nine-day trip to China, was the United States dispatched two aircraft American troops ended up facing the taken as a significant defeat in Taiwan even carrier battle groups to the region as a warn- ing to China not to contemplate a military Chinese army and in which thousands though U.S. officials contended it was simply of brave American soldiers lost their a reiteration of U.S. policy. solution. Clinton’s June 30 remarks in Shanghai Mr. ABRAHAM. Mr. President, I rise lives. It is imperative, in my view, that made clear the United States would not sup- to express my strong support for the Congress act swiftly and surely to see port any formal independence bid by the is- Majority Leader’s resolution on Tai- to it that history does not repeat itself. The United States stands by the peo- land of 21 million people, or a policy backing wan. This resolution will reassure the ‘‘one China, one Taiwan,’’ or ‘‘two Chinas.’’ ple of Taiwan in their determination to people of Taiwan that the United Clinton also said the United States will op- protect themselves and their demo- States will stand by its pledges, par- pose any Taiwanese bid to join international cratic principles from any forceful re- ticularly those included in the Taiwan bodies that accept only sovereign states as integration into China. We must make Relations Act of 1979. members. our stance clear for the people of Tai- Although the policy was first enunciated It is unfortunate to say the least, Mr. in October, Clinton himself had never said it President, that it has become nec- wan, for the cause of freedom, and for publicly before. Thus, it was taken as a essary to pass this resolution. But the cause of peace. major defeat in Taiwan, which relies on the I yield the floor. President Clinton’s statements while Mr. CRAIG. Mr. President, I rise to United States for most of its political sup- in the People’s Republic of China make port and weapons. In Washington, Clinton’s speak in strong support of Senate Con- statement has drawn some criticism. On it imperative that we reiterate and re- current Resolution 107, a resolution af- Tuesday, Senate Majority Leader TRENT affirm our commitment to Taiwan’s firming the United States’ continued LOTT (R-Miss.) called Clinton’s remarks democratic principles, to its right to commitment to Taiwan. counterproductive, and he threatened un- maintain a viable, sufficient self-de- During his recent visit to China, the specified congressional action. fense capability, and to a future for President undermined long-standing The Beijing government, which views Tai- Taiwan that is determined by peaceful, wan as a renegade Chinese province, has said U.S. policy regarding Taiwan. Presi- democratic means. dent Clinton said, it is satisfied with Clinton’s remarks, even President Clinton’s unwise and dam- though it had tried to have Clinton commit I had a chance to reiterate our Taiwan pol- them to writing. Chinese officials have said aging statements during his visit to icy, which is that we don’t support inde- they plan to use the remarks as a lever to communist China have thrown in doubt pendent for Taiwan, or two Chinas, or one force Taiwan into political talks on reunifi- our commitment to Taiwan. The Presi- Taiwan-one China. And we don’t believe that cation. Taiwanese officials say they want to dent’s three noes’’—no independence Taiwan should be a member of any organiza- limit any new talks to specific issues, such for Taiwan, no recognition for a sepa- tion for which statehood is a requirement. as immigration, cross-border crime, fishing rate Taiwanese government, and no The President’s statement, in fact, rights and protection of investments. China support for Taiwan’s membership in represents a long standing departure rejects this limited approach and insists a international organizations—cast from U.S. policy. This statement rep- broader discussion of reunification is nec- essary for improved ties. doubt on America’s willingness to resents an abandonment of a balanced Taiwan and China ostensibly have been stand by its commitments and raise policy that has allowed the United separated since 1895, when Japan occupied the prospect of future conflict in South States to conduct important relations the island following its victory over Imperial Asia. with both sides of the Taiwan Strait.

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00003 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7918 CONGRESSIONAL RECORD — SENATE July 10, 1998 The United States has not taken, and This Administration seems to have I further announce that, if present should not take, a policy position on forgotten that China has conducted and voting, the Senator from Arizona the outcome of the dispute between missile exercises off of Taiwan’s major (Mr. KYL) and the Senator from Texas China and Taiwan. Neither should we ports in two of the last four years. ‘‘Fa- (Mrs. HUTCHISON) would each vote endorse or oppose Taiwan’s independ- vorable conditions’’ for China mean ‘‘yes.’’ ence or reunification. However, we one thing: more latitude from the Mr. FORD. I announce that the Sen- must continue to insist that any even- United States to intimidate Taiwan. ator from New Mexico (Mr. BINGAMAN) tual resolution of this dispute must The Chinese military continues to ac- is necessarily absent. come through peaceful means and with quire weapons systems to facilitate an The result was announced—yeas 92, the approval of the people of Taiwan. invasion of the island, yet the Adminis- nays 0, as follows: The President’s remarks are not con- tration tries to distance itself from [Rollcall Vote No. 196 Leg.] sistent with that goal. American obligations in the Taiwan Let us not forget that May 1998 Relations Act to help Taiwan ‘‘main- YEAS—92 marked the second anniversary of the tain a sufficient self-defense capa- Abraham Feingold Lott first fully democratic Presidential bility.’’ Incredibly, the Administration Akaka Feinstein Lugar Allard Ford Mack election in the 5,000-year history of the parroted the ‘‘three noes’’ policy for Baucus Frist McConnell Chinese people. That election occurred Beijing without even obtaining assur- Bennett Glenn Mikulski on the island of Taiwan. Taiwan has ances from China that it will not use Biden Gorton Moseley-Braun Bond Graham Moynihan evolved into a modern, democratic so- force to reunify with Taiwan. Boxer Gramm ciety, a major economic power, and an Murkowski Adopting Beijing’s formulation on Breaux Grams Murray active partner in world affairs. Tai- Taiwan was an ill-advised move by the Brownback Grassley Reed Bryan Gregg wan’s continued achievement should President that has the potential of Reid Bumpers Hagel Robb deepen the longstanding friendship be- doing great harm to the 21 million Tai- Burns Harkin Roberts tween our two democracies. Should the wanese who have built a vibrant de- Byrd Hatch Rockefeller President disregard that responsibility, mocracy and free market. The Admin- Campbell Helms Chafee Hollings Roth the Congress must fill that void. istration’s position on Taiwan is not Cleland Hutchinson Santorum Mr. ASHCROFT. Mr. President, I rise reassuring our democratic allies in Coats Inhofe Sarbanes today in strong support of S. Con. Res. East Asia. Cochran Inouye Sessions Shelby 107. This resolution is intended to re- It is time for this Administration to Collins Jeffords Conrad Johnson Smith (NH) pair the damage done by President choose which side it will support in the Coverdell Kempthorne Snowe Clinton’s ill-considered comments on continuing struggle for civil liberty Craig Kennedy Specter Taiwan during the recent U.S.-China and democratic reform in East Asia. D’Amato Kerrey Stevens summit. The Senate needs to make a Daschle Kerry Thomas Blind engagement with Beijing’s op- DeWine Kohl Thompson clear statement in support of Taiwan. pressive regime is not the way to en- Dodd Landrieu Thurmond A failure to do so would be a greater sure that democracy is preserved on Dorgan Lautenberg Torricelli disservice to the people of Taiwan and Taiwan or advanced in China. It is time Durbin Leahy Warner Enzi Levin Wellstone the credibility of the United States in for the United States to stand again for Faircloth Lieberman Wyden East Asia. freedom in East Asia and around the Mr. President, let us be clear, the world. NOT VOTING—8 President’s statements undercut Tai- Mr. LOTT. Mr. President, I ask for Ashcroft Hutchison Nickles wan in a way that past U.S. policy ex- the yeas and nays. Bingaman Kyl Smith (OR) Domenici McCain plicitly avoided. The Administration The PRESIDING OFFICER. Is there a has tried to portray the President’s re- sufficient second? The concurrent resolution (S. Con. gurgitation of Beijing’s ‘‘three noes’’ as There is a sufficient second. Res. 107), as amended, was agreed to. merely a restatement of U.S. policy. If The yeas and nays were ordered. The PRESIDING OFFICER (Mr. SES- this was merely a restatement of U.S. AMENDMENT NO. 3121 SIONS). Under the previous order, the policy, however, why did the President The PRESIDING OFFICER. Under preamble to the resolution is agreed to have to make the comments at all? the previous order, the clerk will re- and an amendment to the title is Far from being a restatement of U.S. port the amendment. agreed to. policy, Bill Clinton’s remarks were the The assistant legislative clerk read The preamble was agreed to. first by a U.S. president formally op- as follows: The resolution, as amended, with its posing Taiwanese independence. In ad- The Senator from Mississippi [Mr. LOTT] preamble, is as follows: dition, the President’s stated opposi- proposes an amendment numbered 3121. tion to Taiwan’s membership in inter- On page 2, line 8, strike ‘‘with the consent S. CON. RES. 107 national organizations directly under- of the people of Taiwan,’’. Whereas at no time since the establish- cuts Taiwan’s efforts to share abroad The PRESIDING OFFICER. Under ment of the People’s Republic of China on its vision for a democratic, unified the previous order, the amendment is October 1, 1949, has Taiwan been under the control of the People’s Republic of China; China. It is Taiwan’s vision of China’s agreed to. Whereas the United States began its long, future—a future of democratic plu- The Amendment (No. 3121) was peaceful, friendly relationship with Taiwan ralism and civil liberty—that the Ad- agreed to. in 1949; ministration should be supporting, not The PRESIDING OFFICER. The Whereas since the enactment of the Tai- legitimizing the Chinese Communist question now is on agreeing to the Sen- wan Relations Act in 1979, the policy of the Party with CNN summitry. ate Concurrent Resolution 107, as United States has been based on the expecta- As hard as the Administration might amended. On this question, the yeas tion that the future relationship between the try to sanitize the President’s com- and nays have been ordered, and the People’s Republic of China and Taiwan would ments, his statements already are be determined by peaceful means; clerk will call the roll. Whereas in March 1996, the People’s Repub- being used by Beijing to pressure Tai- The assistant legislative clerk called lic of China held provocative military ma- wan on reunification. This morning’s the roll. neuvers, including missile launch exercises Washington Post reports that Beijing Mr. CRAIG. I announce that the Sen- in the Taiwan Strait, in an attempt to in- is telling Taiwan to ‘‘face reality’’ ator from Missouri (Mr. ASHCROFT), the timidate the people of Taiwan during their after the President’s statement and Senator from New Mexico (Mr. DOMEN- historic, free and democratic presidential agree to talks on reunification. One of ICI), the Senator from Texas (Mrs. election; Beijing’s top negotiators with Taiwan HUTCHISON), the Senator from Arizona Whereas officials of the People’s Republic of China refuse to renounce the use of force said that the President’s remarks (Mr. KYL), the Senator from Arizona against democratic Taiwan; strengthened China’s hand and (Mr. MCCAIN), the Senator from Okla- Whereas Taiwan has achieved significant ‘‘* * * provided favorable conditions homa (Mr. NICKLES), and the Senator political and economic strength as one of the for the development of cross-strait re- from Oregon (Mr. SMITH) are nec- world’s premier democracies and as the nine- lations.’’ essarily absent. teenth largest economy in the world;

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00004 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7919 Whereas Taiwan is the seventh largest way that we look at the estimates that By contrast, tax revenues actually trading partner of the United States and im- come from a reduction in taxes such as dropped for a number of years fol- ports more than twice as much annually capital gains. lowing the capital gains tax rate hike from the United States as does the People’s Earlier this year, I introduced legis- in 1986. Republic of China; and lation to reduce the capital gains tax Mr. President, last year, when Con- Whereas no treaties exist between the Peo- ple’s Republic of China and Taiwan that de- to 14 percent and to provide indexing of gress proposed to cut the capital gains termine the future status of Taiwan: Now the capital gains tax from that point tax rate from 28 percent to 20 percent, therefore, be it out. This legislation builds on last the Joint Tax Committee submitted its Resolved by the Senate (the House of Rep- year’s tax bill which moved the capital revenue estimate. resentatives concurring), That Congress— gains rate down from 28 percent to 20 The Joint Tax Committee forecast a (1) affirms its longstanding commitment to percent. 10-year revenue loss from the rate cut Taiwan and the people of Taiwan in accord- I rise today to commend both the of $21 billion. ance with the Taiwan Relations Act (Public Senate majority leader and the Speak- Mr. President, it is clear that the Law 96–8); er of the House for their recent calls (2) affirms its expectation, consistent with Joint Tax Committee and Congres- the Taiwan Relations Act, that the future of for a reduction in the top capital gains sional Budget Office estimates dra- Taiwan will be determined by peaceful rate to 15 percent. Both of our leaders matically underestimated both the means, and considers any effort to determine have indicated they are introducing strength of the economy and the posi- the future of Taiwan by other than peaceful legislation to cut the rate. This could tive response to the tax rate cut. means a threat to the peace and security of be accomplished as early as this year. The Joint Tax Committee now con- the Western Pacific and of grave concern to Again, I commend them for their lead- cedes that there will be a significant the United States; ership. revenue gain from capital gains real- (3) affirms its commitment, consistent I also wish to express my support for izations. with the Taiwan Relations Act, to make a provision in the IRS reform bill that In my view, a review of the last twen- available to Taiwan such defense articles and defense services in such quantities as returns the holding period for long- ty years of capital gains tax rates and may be necessary to enable Taiwan to main- term capital gains treatment to 12 the associated revenues suggests that tain a sufficient self-defense capability; months. Last year, the administration the model used by the Joint Tax Com- (4) affirms its commitment, consistent unwisely insisted on extending this out mittee and the Congressional Budget with the Taiwan Relations Act, that only the to 18 months. This added complexity to Office to estimate capital gains reve- President and Congress shall determine the the code and represented another at- nues is flawed. nature and quantity of defense articles and tempt by Government to micromanage The Congressional Budget Office ar- services for Taiwan based solely upon their investment decisions. gues that government revenue esti- judgment of the needs of Taiwan; and There is a great deal of interest in mates adequately account for behav- (5) urges the President of the United States the tax treatment of capital gains due to seek a public renunciation by the People’s ioral changes that occur as a result of Republic of China of any use of force, or to mounting evidence that capital tax changes. threat to use force, against democratic Tai- gains tax rate reductions not only ben- Despite this claim, it would appear wan. efit taxpayers and the economy but that when tax rates are lowered the The title was amended so as to read: also increase revenues. revenue estimating model significantly ‘‘Affirming U.S. Commitments Under Last month, the Joint Tax Com- exaggerates the revenue losses. the Taiwan Relations Act’’. mittee released new estimates of the In fact, in no single year after a rate Mr. DODD addressed the Chair. revenue resulting in the 1997 reduction cut has there ever been a loss of rev- The PRESIDING OFFICER. The Sen- of the top capital gains rate from 28 enue. ator from Connecticut. percent to 20 percent. The Joint Tax Conversely, when tax rates are in- Mr. DODD. Mr. President, what is the Committee apparently underestimated creased, the model significantly exag- business before the Senate? the revenue gain in 1998 by $13 billion gerates the level of revenue gains. The PRESIDING OFFICER. The Sen- and in 1999 by $12 billion. In fact, the Not only do the Congressional models ate has no order at this time. latest estimates are that over the first fail to accurately measure the response Mr. HATCH. Will the Senator yield 5 years revenue could be as much as $58 of taxpayers to changes in tax rates, so I can put us in morning business? billion greater than previously fore- they exclude an estimate of the impact Mr. DODD. I will be happy to. cast. of tax changes on economic perform- f Now, this does not surprise me. In ance. fact, there are a number of us in Con- MORNING BUSINESS Congress is largely in the dark when gress who have been making this very it comes to any estimates of the eco- Mr. HATCH. Mr. President, I ask point for years. The capital gains tax nomic benefit of tax rate reductions. unanimous consent that there now be a rate cut will increase revenue, not re- It is logical to assume that a lower period for the transaction of routine duce it. There are two principal rea- tax rate on capital lowers the cost of morning business with Senators per- sons for this increase in revenue. First, capital. This clearly benefits the econ- mitted to speak for up to 10 minutes there is the short-term incentive to omy. As a consequence the Federal each. sell more capital assets; second is the Government will realize greater in- The PRESIDING OFFICER. Without long-term progrowth benefit from a come, payroll, and excise taxes. In ad- objection, it is so ordered. capital-friendly tax policy. dition, State and local tax revenues Mr. HATCH. I thank my colleague. The capital gains tax is largely a vol- Mr. DODD. Mr. President, I ask unan- will also rise. imous consent to proceed in morning untary tax. The tax is only paid if the Admittedly, all of this is difficult to business. investor chooses to sell the asset. measure. However, I would like to see The PRESIDING OFFICER. That is If taxes are high, an investor can some attempt made to include these the present order. The Senator has 10 hold on to the asset for years. But factors in revenue models. minutes to speak. when taxes are low, investors will often At a minimum they should always be (The remarks of Mr. DODD and Mr. decide to sell the assets and ‘‘realize’’ appended to the official revenue esti- MOYNIHAN pertaining to the introduc- the capital gain. mates. This would give Congress a tion of S. 2285 are located in today’s History confirms this pattern. In more complete picture of the impact of RECORD under ‘‘Statements on Intro- 1978, when the capital gains tax rate tax changes on revenues. duced Bills and Joint Resolutions.’’) was reduced from 40 percent to 28 per- Mr. President, I will note that a re- The PRESIDING OFFICER. The Sen- cent, capital realizations increased by cent addition to the rules of the House ator from Colorado is recognized for up 50 percent, and tax receipts increased. permits the Joint Committee on Tax- to 10 minutes. In 1981, Congress and President ation to append dynamic estimates to Reagan further reduced the capital f tax legislation when requested to do so gains tax rate to 20 percent. Once by the Chairman of the Ways and CAPITAL GAINS again, capital gain realizations in- Means Committee. Mr. ALLARD. Mr. President, I wish creased dramatically and by 1983 were This dynamic estimate is to reflect to speak about capital gains and the again up by 50 percent. the anticipated macroeconomic effects

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00005 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7920 CONGRESSIONAL RECORD — SENATE July 10, 1998 of tax legislation, and is to be used NOMINATION OF SONIA SOTO- Seven years ago, in March 1991, it solely for informational purposes. MAYOR TO BE A JUDGE ON THE was my honor to recommend Sonia It is time for Congress to build on SECOND CIRCUIT COURT OF AP- Sotomayor to serve on the Southern this process. Dynamic estimates should PEALS District Court of New York. President be routinely requested in both the Mr. MOYNIHAN. Mr. President, there Bush placed her name in nomination House and Senate. has been some discussion in the press shortly thereafter and she was sworn in Congress should also make greater of late concerning a ruling in Federal on October 2, 1992. use of the work of a multitude of District Court of the Southern District The distinguished members of the economists. I would note for example of New York involving a business coali- Committee on the Judiciary were sure- that in 1997 the Joint Economic Com- tion in Manhattan called the Grand ly impressed with the background and mittee published a study by two Flor- Central Partnership. In this case, Ar- accomplishments of this extraordinary ida State University economics profes- chie v. Grand Central Partnership, Inc. woman. Sonia Sotomayor was raised in sors; James Gwartney and Randall (1998 WL 122589, 1998 U.S. Dist. Lexis the projects of the South Bronx. Her Holcombe that argued that the optimal 3599, S.D.N.Y. 1998), the judge agreed father, Juan Luis, worked in a tool and capital gains rate is 15 percent or less. with the plaintiffs who had brought die factory while her mother, Celina, These economists predicted accu- suit against the partnership demanding worked as a nurse. Through discipline rately prior to last year’s rate cut that to be paid at minimum wage rates pur- and hard work she was graduated a reduction in the rate would increase suant to the provisions of the Fair summa cum laude from Princeton Uni- revenues. Labor Standards Act and the New York versity in 1976, receiving the univer- While improvements in the revenue State Minimum Wage Act. The lan- sity’s highest distinction, the M. Tay- estimating process are certainly desir- guage of the decision reads as follows: lor Pyne Honor Prize. She went on to able, the fact remains that estimates Despite the attractive nature of the de- graduate from Yale Law School in 1979 are just ‘‘estimates’’, and Congress fendants’ program in serving the needs of the where she served as editor of the Yale homeless, the question of whether such a should recognize that those estimates Law Journal. program should be exempted from the min- After law school, Ms. Sotomayor will often turn out to be way off the imum wage laws is a policy decision either joined the New York County District mark. Congress or the Executive Branch should Attorney’s office. After more than five make. . . . The Court, however, cannot grant That is why Congress should place years there she moved to the firm of greater emphasis on the impact that an exemption where one does not exist in law. Pavia & Harcourt, attaining the posi- changes in the taxation will have on tion of partner. She is a former mem- the private economy, and less emphasis Setting aside any personal bias, the judge ruled solely on the basis of law. ber of the New York City Campaign Fi- on projections of government revenue. nance Board and the New York State Economic growth, job creation, and In Bartlett v. New York State Board of Law Examiners (970 F. Supp. 1094, Mortgage Agency. All of these achieve- international competitiveness should ments are detailed in Ms. Sotomayor’s be our focus. S.D.N.Y. 1997), this same judge ruled in favor of one Marilyn Bartlett, an appli- re´sume´ which I ask, without objection, Mr. President, when it comes to cap- cant with a learning disability similar be incorporated into my remarks. ital gains taxes I suggest that Congress to dyslexia, who sought admission to Her service on the Southern District spend less time gazing into the crystal 1 the State bar. The Board of Law Exam- Court has been exemplary. In 5 ⁄2 years, ball of revenue forecasting, and more iners had denied Bartlett’s special ac- having presided over 500 cases, she has time focusing on the real world impact commodation—in this case, an exten- been overturned only six times. Her de- of taxes on capital formation, job cre- sion of time limitations in which to cisions are scholarly, well-researched, ation, and economic growth. take the bar examination. The judge and well-reasoned. She has presided I think it will then be abundantly found that the Americans With Disabil- over cases of enormous complexity clear that we should continue to reduce ities Act clearly required the board to with skill and confidence. the tax on capital to 14 percent. This provide the accommodation. Again, My colleagues will likely recall that will continue the good work that we this decision was made—as it ought to it was Judge Sotomayor who put an began last year. have been made—on the basis of law. end to the baseball strike in 1995. Her Mr. President, the U.S. level of tax Nothing more. ruling in Silverman v. Major League on capital has been among the highest The district court judge in both of Baseball Player Relations Committee, in the world, I am dedicated to seeing these matters was the Honorable Sonia Inc., 880 F. Supp. 246 (S.D.N.Y. 1995) was that it becomes one of the lowest in Sotomayor of the Southern District of upheld by the very court she now seeks the world. New York, who now seeks confirmation to join. A low rate of tax will encourage cap- from this body for appointment to the During the course of her confirma- ital investment, economic growth and Second Circuit of the United States tion hearing before the Judiciary Com- job creation. Court of Appeals. mittee, some questions were intro- This is no time for the United States May I take just a moment to thank duced regarding Judge Sotomayor’s po- to sit on its lead; we must continue to the distinguished chairman, Senator sition on mandatory sentencing and ensure that America is the premier lo- HATCH, and ranking member, Senator Federal sentencing guidelines. As of cation in the world to do business. LEAHY, and the members of the Com- October 1997, in the 217 criminal cases over which she presided, she departed A low capital gains tax will help our mittee on the Judiciary. downward a total of 58 times. Forty- economy, but it will also help Amer- With confirmation earlier this year four of those departures were at the ica’s families by reducing their tax of Robert Sack, Chester Straub, and Government’s specific request, because burden. Rosemary Pooler, the judicial emer- of the defendant’s substantial assist- I look forward to working with Ma- gency in the Second Circuit declared by Chief Judge Ralph K. Winter on ance. Excluding such departures, the jority Leader LOTT and with Speaker March 23 will soon be over. Judge has departed downward in only GINGRICH as we continue to cut the It will be over, Mr. President, when 6.5 percent of her criminal cases. The rate of taxation on capital gains. Judge Sotomayor is confirmed by the judge has upwardly departed in 6 of her I yield the balance of my time. Senate. She has been reported by the 217 criminal cases, an average of 2.7 Mr. MOYNIHAN addressed the Chair. Judiciary Committee. percent. The PRESIDING OFFICER. The Sen- A little over one year ago, President A recent New York Law Journal arti- ator from New York is recognized. Clinton nominated Judge Sotomayor cle reports on the 1996 sentencing prac- Mr. MOYNIHAN. Mr. President, I ask to fill a vacancy on the Second Circuit tices of Federal district judges. Com- that I be granted 10 minutes to speak Court of Appeals. The Committee on paring Judge Sotomayor’s sentencing in morning business. the Judiciary held a hearing on Sep- record to these statistics, it is appar- The PRESIDING OFFICER. The Sen- tember 30, 1997 and she was reported ent that Judge Sotomayor is more con- ator has 10 minutes under the previous out by a vote of 16 to 2 on March 5 of servative in sentencing than many of order. this year. her colleagues on the Federal bench.

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00006 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7921 Her 6.5 percent downward departure Fairview University Medicare Center, coming out of the Health Care Financ- rate is below the national average of the Mayo Clinic, the world famous ing Authority, HCFA, coming October 10.3 percent, and well below the Second medical institution in Minneapolis, 1st. Medicare is not going to be like it Circuit average of 15.2 percent. Her up- where our commissioners will have the used to be. People who are Medicare ward departure rate of 2.7 percent is opportunity to really tour an inte- beneficiaries are going to get some three times the national average of 0.9 grated care clinical site and observe choice options. They are going to have percent. telemedicine demonstrations with the different decisions to make about Mr. President, we have before us a Mayo Clinic in a rural facility outside whether they want to go into managed candidate who embodies all of the fin- of the city, and also a visit with pro- care. est qualities we could possibly ask for viders and beneficiaries and also ad- It is very important for seniors and in a Federal judge. She is brilliant, ministrators. their families to understand that principled and thoughtful. I can see no Third, the commissioners will be able grandma, grandpa, mom, dad, and oth- reason to prolong the process that will to also visit Medtronic, which develops ers are going to have to make some dif- lead to her confirmation any further. and manufacturers medical devices to ferent decisions about their health Surely the time has come for us to act. treat cardiovascular and neurological care. While this can be a little bit Thank you, Mr. President. disorders. frightening, I think we should look I yield the floor. The idea is to tour these facilities to upon it as a real opportunity to give Mr. BREAUX addressed the Chair. look at the impact that new tech- them more choice and ultimately bet- The PRESIDING OFFICER. The Sen- nology, of which the United States is a ter services than they currently get ator from Louisiana. world leader in producing, has on the under Medicare. f future of Medicare. We can be very proud of what Medi- MEDICARE COMMISSION FIELD Clearly, as we are able to produce care has done. Medicare is not that HEARINGS more sophisticated equipment facili- great a plan in the 1990s. It doesn’t pro- Mr. BREAUX. Mr. President, I take ties to treat health care beneficiaries vide eyeglass coverage; it doesn’t pro- this time on the floor to inform my in this country, it is going to have a di- vide prescription drugs; it doesn’t pro- colleagues, and others who may have rect effect on the Medicare Program, vide long-term health care. Most bene- an interest in the fact, that the Medi- and hopefully for the better. ficiaries think it is a wonderful pro- care Commission will be having a field The final site visit opportunity we gram, and, indeed, it is. But it is not hearing on Monday coming outside of will be taking is the United Health nearly as good as most health plans in Washington in Minneapolis, MN. Care Research Center, an Institute for the country today that are private As always, it is the intention of my- Health Care Quality, where we will plans which provide generally a lot self as chairman of the Medicare Com- tour their facilities and learn about more benefits to the beneficiaries than mission, along with my colleague from how United Health Care gathers and Medicare does. the House, BILL THOMAS, and all of the analyzes patient data to evaluate med- So we are going to be looking at how commission members, that we need to ical outcomes and cost-effectiveness as people get their information and what get as much information from outside a treatment. information they need in order to of Washington about the Medicare It is very important that we study make these choices. problem as we possibly can. how various forms of health care affect The rest of the afternoon is going to This effort in bringing the commis- outcomes, both from a health stand- be devoted to public interest, to really sion to the city of Minneapolis, MN, on point, as well as from a cost stand- have the commission sit and listen to Monday for a rather very, very full point. Mr. and Mrs. America and tell us what agenda of activities in Minneapolis re- Then, beginning at noon at the Min- they would like to see in Medicare for lating to Medicare is to give all of us neapolis Convention Center, our com- the future. an opportunity to gather information, missioners will then hear from people We have 2 hours set aside for audi- which will be extremely important in who will make presentations to our ence participation. We call this session helping us make the very difficult but committee in the form of three panels. a ‘‘Call for Solutions’’ where we have extremely important recommendations The first panel we will hear from is invited ordinary citizens from the Min- that we are required by Congress to the Buyers Health Care Action Group, nesota region and area to submit their make to the President, and also to the which is interestingly a coalition of 27 ideas and recommendations for improv- Congress by March 1st of this coming large, Twin-Cities-based self-insured ing Medicare. year. employers—companies like 3M, Gen- In addition to the field hearing that Our hearing will consist of a site eral Mills, and Honeywell. we will be having in Minneapolis, we visit in the morning where commis- This panel hopefully will give the will also be continuing to explore other sioners will choose from one of four commission an opportunity to hear ways to get input from the public. We sites, three of which will have the di- from private companies regarding how don’t have to visit every city and every rect interaction with Medicare bene- they purchase health care for their em- State and every county in America to ficiaries. I would like to cover some of ployees and what the result has been hear from America. In this century, as the sites that we will be visiting so for their employees, as well as what we move to the 21st century, we are people will know exactly what this the results have been for their compa- going to be making use of teleconfer- commission is going to be doing. nies. encing, video conferencing. Commis- We will have a chance to visit the The second panel will be a panel of sion meetings that we have had so far Wilder Senior Services Clinic, which is managed care plans to talk about their have been covered in full by C–SPAN. a Minnesota Senior Health Options experience in the managed care market We have a national web site. We have Clinic, which is really a demonstration in Minneapolis, which has had managed had 13 commission and task force program now being run by the Min- care around longer than most places in meetings since March 6th, all of which nesota Department of Human Services. the country. have been open to the public for their It serves seniors who find themselves With the debate on Medicare both in information. in the unique position of being eligible the Congress and in the public in gen- I think we have a very ambitious for Medicare, and also being eligible for eral I think it is important that we schedule, as I have just outlined, for Medicaid at the same time. These peo- look at some of them and try to under- the Monday field hearings in Min- ple are so-called dual beneficiaries who stand better how they are working in neapolis. can get their health coverage from two providing quality health care and re- I urge my colleagues to continue to separate programs. And how this par- duced costs for Medicare beneficiaries. be mindful of what we are attempting ticular operation is handling it is The third and last panel we will hear to do. If they have suggestions, we are something that I think we can benefit from is current and future beneficiaries open to receiving those suggestions. from seeing. on information that they need and use Hopefully, we will have their participa- The second site visit that we are in making health care decisions. It is tion as we draft recommendations for going to take the commission to is a really important with the new proposal the full Congress and for the President,

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00007 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7922 CONGRESSIONAL RECORD — SENATE July 10, 1998 so we can make the reforms necessary exact man.’’ And so we write more ex- the signers of the second Constitution, to preserve, protect, and even, indeed, actly than we speak. the Constitution of 1787? improve Medicare for future genera- These Founding Fathers were cer- In those days, women did not partici- tions. tainly well read and they were good pate in the conventions—but would the With that, Mr. President, I yield the writers and, therefore, very knowledge- Founding Fathers also not include floor and make a point of order a able and exact, precise, weighing every those individuals who met in the var- quorum is not present. word. ious State conventions to ratify the The PRESIDING OFFICER. The When we speak of infrastructure, Constitution? Would they not include clerk will call the roll. such as reservoirs and dams, we talk the writers of the Declaration of Inde- The assistant legislative clerk pro- about the Army engineers. When we pendence? Would they not include the ceeded to call the roll. seek their recommendations about a Members of the Congress under the Ar- Mr. BYRD. Mr. President, I ask unan- particular dam or reservoir, they will ticles of Confederation? They surely imous consent that the order for the give us advice, and it will reflect the B– debated much that went into the sec- quorum call be rescinded. C ratio, the benefit-cost ratio. Any- ond Constitution. Would they not in- The PRESIDING OFFICER. Without thing that is recommended by the clude the legislatures of the States objection, it is so ordered. Army engineers would have to have at that then existed? f least $1 in benefits for every $1 in costs. So when we talk about the Founding That is the benefit-cost ratio. Fathers, many people associate that VERBAL LITTER Therefore, in speaking of the Found- term only with the framers of the sec- Mr. BYRD. Mr. President, much has ing Fathers, which is a term that needs ond American Constitution. And cer- been said about the so-called ‘‘lost art’’ to be examined—‘‘Founding Fathers’’— tainly the framers were Founding Fa- of writing. The ubiquity of telephones and especially those who wrote the thers, but not all the Founding Fa- and, more recently, electronic mail, or Federalist essays, I think in terms of thers, I am saying, not all the Found- ‘‘cyber-chat,’’ as well as the accept- the benefit-cost ratio. They made every ing Fathers were framers of the Con- ability of alternative presentations in word count. Every word carried its full stitution. So there is a little dif- lieu of written essays in schools, can weight. It had a proper place in the ference. It isn’t a serious matter by all be cited as contributors to the construction of the essay. It wasn’t any means, and I am not taking issue growing inability of many people to used lightly. It was used thoughtfully. with anyone, but I have thought about compose and edit well-organized and So there was the B–C ratio. that term. effective written documents. E-mail, Well, that is just a little idea of It is hard to imagine that their spo- which is daily becoming more and more mine. But these men were knowledge- ken words could possibly be undercut common, a common method for com- able, they were exact, and their writing by any of the all too common fillers municating, is an easy, instant way to was enhanced by their thoughtfulness, that plague common conversation get a message out, but the very quick- and, in turn, their speaking ability was today, those ‘‘ums’’ and ‘‘uhs’’ and ness of the transmit inhibits the kind enhanced by their writing, especially ‘‘likes,’’ and especially that inanity of of thoughtful consideration of the mes- in the case of Daniel Webster. inanities, ‘‘you know.’’ That is the sage and care in editing that are the When Webster made a speech, when most useless phrase. That is pure dead- hallmarks of good letters and great lit- he spoke on January 26 and January 27, wood. It doesn’t carry its weight in a erature. 1830, in his debate with Hayne—school- speech, ‘‘you know.’’ Someone has said that letters are our boys all across the Nation, it used to Any time one turns on a television— personal ambassadors. We politicians be, were required to memorize some of which I don’t do very often; perhaps need to be very much aware of that. Webster’s speeches. I don’t guess they that is why I have a lot of old ideas— Letters are our personal ambassadors. are required to memorize those speech- he will hear a string of ‘‘you knows’’ And the trend toward relying more and es anymore. As a matter of fact, memo- from the anchormen and women, ‘‘you more exclusively on e-mail means that rization is not looked upon as being know.’’ the future’s historical archives will be- very beneficial or helpful in some What does it mean, ‘‘you know’’? come littered with broken sentence schools, I suppose. Times have What do I know? You know? That is fragments, incomplete thoughts, and changed. taking advantage of the other person embarrassingly ignorant spelling. But Webster was a good writer, and when you say, ‘‘You know.’’ ‘‘You Think about it. Mr. President, can you he memorized the speeches, many of know.’’ How silly, how useless a phrase. imagine the Federalist essays by Jay, them. Then he took them home, took That certainly would not carry its Madison, and Hamilton—can you imag- them to his boarding house near the weight under the B–C ratio—the ben- ine those Federalist essays, had they Capitol Building, and kept them for a efit-cost ratio—that inanity of inani- been typed in such a stream-of-con- few days, edited them, changed them, ties; that inanity of inanities, ‘‘you sciousness manner and then spewed for the purposes of publication. There- know.’’ across the fiber optic web the way fore, they were not exactly the speech- Oh, how I hate that pernicious some messages are nowadays? es that we schoolboys memorized, they phrase, ‘‘you know.’’ This is simply a I am sure that Hamilton, Madison, were not the exact speeches that Web- filler. The tongue is operating in over- and Jay, the authors of the Federalist ster gave before the Senate. They were drive and the brain is somewhat behind Papers, did not speak as cogently and improved upon, just as we edit our own the tongue, ‘‘you know.’’ fluidly as they wrote. Perhaps nobody speeches. But we don’t take them We are told by Plutarch that—well, I does, or very few persons do. But they home. We don’t take them to our am providing a rather good example of were no slouches at the speaker’s ros- boarding houses and keep them out what Plutarch was saying. He said that trum. I doubt that they would have several days. We edit them the same Alcibiades was the greatest orator of been very good on television. I have day. Many Senators probably have his time. thought about that a good many times, their staffs edit their remarks. But Plutarch wrote that Demosthenes and wondered how Daniel Webster or Webster, in doing so, had in mind ex- said that Alcibiades was the greatest Henry Clay or John C. Calhoun would actly what Bacon referred to: ‘‘Writing speaker of his time and that when he have come across on television. How maketh an exact man.’’ came to a place in his oration and was would they do on 20-second sound I said that the term ‘‘Founding Fa- having difficulty remembering the bites? They would do as poorly as ROB- thers’’ needed a little examination. exact word, he paused—he paused—he ERT C. BYRD, I would anticipate. Who were the Founding Fathers? Were simply paused until the right word As Francis Bacon observed, ‘‘Reading they the signers of the Declaration of came. He did not fill the gap with ‘‘you maketh a full man; conference a ready Independence? Were they the Framers knows’’ or ‘‘ahs,’’ ‘‘uhs,’’ or ‘‘ums,’’ and man; and writing an exact man.’’ of the Constitution? Were they the so on. He simply waited until the right Think about that also. That is very Framers of the first American Con- word came. true. ‘‘Reading maketh a full man; con- stitution, the Constitution under the Try it sometime. Record your own ference a ready man; and writing an Articles of Confederation? Were they remarks. See if you are using that

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00008 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7923 phrase. Our remarks are awash in ‘‘you ‘‘you knows’’ are pernicious and per- ways a pleasure to listen to him at any knows.’’ And they are uttered all sistent. It takes strong medicine to kill time, but particularly on a Friday around us by people who are unaware back that lush growth, and diligent when I can give full attention to his of how they are filling the time be- weeding to keep opportunistic tendrils eloquence. tween words when the mind is still from creeping back into common use. Mr. BYRD. Mr. President, I thank struggling to complete the thought. To rid one’s speech of ‘‘you know,’’ one Senator KENNEDY. As I have remarked They are filling the time with that in- must first learn to listen to himself or before, and I shall say again, he is one anity of inanities—‘‘you know.’’ to herself. One must learn to train who would have appropriately graced a Speaking now as a listener, I contend himself to recognize that he uses ‘‘you seat at the Constitutional Convention there is almost nothing more irritating know’’ or other distracting filler in 1787. I can see him working in that and distracting than suffering through words. As a test, ask someone to tape audience on the floor and off the floor, countless ‘‘you knows’’ while trying you or to count the ‘‘you knows.’’ arguing forcefully and passionately, desperately to discern what message Various members of my staff, as and and advocating his position on a mat- the speaker is attempting—vainly—to when and if they hear another staff ter and doing it well. convey. person saying ‘‘you know,’’ they point So I will proceed. I will try to be If I were teaching a class, that would their finger immediately at that per- brief, more so this time than other oc- be one of the things I would come down son. And in that way they help to casions. very hard on. I know that most people break the habit. I think many people f have no idea that their speech is will be unpleasantly surprised at the BRIGHT SPOTS BRING HOPE TO packed chock-full of ‘‘you knows,’’ and results of such a test. Then enlist these EDUCATION it just becomes a habit. And if one lis- same friends to alert you when an un- Mr. BYRD. Mr. President, I have re- tens to it very much, he will fall victim conscious ‘‘you know’’ pops out. They cently drawn much attention to the re- to the same bad habit. For the first will enjoy that part of the task. And sults of the Third International Mathe- thing he knows, he will find that his then work at it, work at it, work at it. matics and Science Study, released in remarks are being filled with ‘‘you The more you do, the more you will no- February of this year. My visceral, my knows.’’ And these are sometimes tice just how often you use such need- visceral reaction to the poor scores of strung together in staccato multiples: less and asinine fill-ins. Weed them out high school seniors on the mathe- ‘‘you know, you know, you know?’’ It of your speech, and you will increase matics and science portions of this is simply filler—meaningless—sound to your reputation as a good speaker and exam was one of great dismay and dis- fill dead air while the speaker’s unpre- a thoughtful person. There is a com- belief. How could United States stu- pared brain hunts down the sentence’s mon saying to the effect that ‘‘I would dents be performing so poorly given the conclusion. rather be silent and be thought a fool, massive amounts of money invested Perhaps it is because Americans are than to open my mouth and prove it.’’ each year in our nation’s education such creatures of the television age, Speech peppered with ‘‘you knows’’ has system? used to actors, or those who think they much the same effect. My spirits have since been lifted in are actors, news broadcasters, even As I have observed already, Alcybides the past month when hearing about the politicians, reading seamlessly from was noted for his practice of simply progress that my own home state of scripts, cue cards, and teleprompters. pausing silently when the chosen word West Virginia is making on the edu- We are not used to hearing pauses of momentarily escaped his mind’s ability cation front. In my years as a United any length so we unconsciously try not to marshal and bring it safely to his States Senator, my state has been to allow even a few seconds of quietude lips. Then, when he could continue, he scoffed at more times than I can re- to fill the air. simply resumed speaking. And he was member, or want to remember. Well, We have become unused to true pub- the finest orator of his time. Clearly, a today, I come to the floor to boast a lic speaking and debate in which in- moment of silence is preferable to ‘‘you little bit about what we are accom- formed individuals prepared their know.’’ Think of it: ‘‘Four score and, plishing back in the mountains and minds with facts and arguments, lis- like, seven years ago, you know, our foothills of West Virginia. tened to each other, and retorted and Forefathers, uh, brought forth, you For the second time in a row, West rebutted extemporaneously. Such de- know, upon this continent, you know, a Virginia has posted the highest edu- bate demands close attention and even, new nation, you know, conceived in, cation marks of any state in the ‘‘Qual- shockingly, moments of silent, delib- uh, liberty, and, you know, you know, ity Counts’’ report released annually erate thought while a rejoinder is men- dedicated to the proposition that, uh, by Education Week magazine. West tally composed. uh, like, all men are created, like, Virginia has tied only with Con- I never hear the senior Senator from equal.’’ With that kind of delivery, necticut for top honors in the study, New York, Mr. MOYNIHAN, using that President ABRAHAM Lincoln could not which grades states on standards and phrase. I have noticed that he pauses have stoked the nation’s determination assessments, quality of teaching, from time to time, but he does not use to see the Civil War through to its con- school climate, and adequacy, equity, the phrase ‘‘you know.’’ I think of him clusion. Or let’s imagine Martin Luther and allocation of resources. In achieve- as a fine example of a teacher at whose King: ‘‘I, uh, have a dream, you know.’’ ment, no grades were granted but feet I would be honored to sit. Not a very stirring message when it is states were ranked by the percentage These small pauses, like the quick lost in the verbal litter. of students who scored at or above the closing and opening of the stage cur- Ridding your speech of such verbal proficient level in mathematics and tains between acts, allow the speaker trash may not make an individual a science on the 1996 National Assess- to savor the argument he has laid out, leader of nations or of men—that re- ment of Educational Progress (NAEP). while his opponent prepares a clever quires great thoughts as well as a clear Seven states, including West Virginia, and pointed rebuttal. Few can do that and stirring delivery—but leaving them made significant gains in the percent- anymore, even those so-called profes- in can surely blight the path to great- age of fourth graders who scored at the sional debaters—the talking heads of ness, you know. proficient level or above on the 1996 media and politicians. If the response Mr. President, I have some remarks mathematics test. What is even more is quick, it is quite likely to be a pre- on another matter, but I see the distin- striking about these scores is the fact pared, canned, one-liner sound bite guished senior Senator from Massachu- that West Virginia ranks forty-ninth in which sells the sender’s message re- setts, my friend, my true friend, Sen- per capita income and family income, gardless of whether or not it is com- ator KENNEDY is on the floor. I am an economic statistic which is often pletely pertinent. going to ask if he wishes to speak at correlated with lower student achieve- It is possible to expunge ‘‘you this time? ment. knows’’ from public discourse. I have Mr. KENNEDY. I thank the Senator Earlier this year, West Virginia was seen it done by conscientious individ- for his typical kindness. I would be recognized as a national model in geog- uals, as I indicated a little earlier, but glad to make my remarks after my raphy education by the National Geo- it is no easy task. Like poison ivy, good friend from West Virginia. It is al- graphic Society. National Geographic

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00009 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7924 CONGRESSIONAL RECORD — SENATE July 10, 1998 Chairman Gilbert Grosvenor com- television access, computer-assisted general. I will, however, conclude now. mended the state as ‘‘one of the best drafting, laser disc technology, and But I urge all schools, teachers, and examples in the country of putting es- electronic research. Weir High School students, nationwide and in my State sential geography into a statewide sys- students are making great strides as a of West Virginia, to follow these tem.’’ The Fordham Foundation, a pri- result of such unprecedented use of pacesetters—pacesetters. Our edu- vate organization committed to qual- technology, and I commend the school cation system in the United States is ity-based reform of elementary and and its able faculty for its leadership in ailing and we need to get back on secondary education, conducted a re- that area. When I went to school, we track. These schools and students that cent study evaluating different geog- never heard of such things. We not only I have talked about today are suc- raphy standards used by states in set- didn’t have access to it, we never even ceeding, and I encourage others to keep ting their academic curricula. West heard of it. pace and emulate this progress. Virginia was one of only six states that In addition to an educational tech- Mr. President, I yield the floor. received honor grades for adopting ex- nology focus, Weir High School should Mr. ENZI addressed the Chair. cellent standards for geography that be extremely proud of its veteran The PRESIDING OFFICER. The Sen- are clear, specific, comprehensive, and teaching staff—a staff that dem- ator from Wyoming is recognized. rigorous. onstrates an unparalleled level of com- f Good students and teachers are an in- mitment and dedication. That is what tegral component of getting ahead in it requires: dedication and commit- HEALTH CARE QUALITY education. ment. Among its faculty members, the LEGISLATION West Virginia could not have made school boasts of a Tandy finalist, Ash- Mr. ENZI. Mr. President, I rise today the progress in education that it has land Teacher of the Year, West Vir- to speak about the popular issue of made in the past few years without ginia Math Teacher of the Year, West health care quality. You can’t mention solid homes, ambitious students, and Virginia Biology Teacher of the Year— health care without pulling on every- good teachers. The whole process de- think of that—several Hancock County one’s heartstrings. While several of the pends, in great measure, on quality Teachers of the Year, Who’s Who measures in both the House and the teachers, since even the most driven Among American High School Teach- Senate have been pitched as being es- and ambitious students can falter at ers, and West Virginia Governor’s sential to enhancing the quality of care the hands of an unqualified, incom- Honor Academy Favorite Educators. Americans receive, I hope that my col- petent teacher. Just recently, Susan Following in the footsteps of its leagues will carefully evaluate the im- Lee Barrett of Nicholas County, WV, neighboring high school, Weir Middle pact that any Federal one-size-fits-all was named as the West Virginia Teach- School has made great progress in mandate would have on our Nation’s er of the Year. Ms. Barrett is a teacher technology, curriculum, National and health care system. at the Cherry River Elementary State test scores, community involve- Health care is as personal as it gets. School. She was selected based on her ment, student environment, and meet- More importantly, though, our deci- leadership in education reform. I hope ing State and National education goals sions must not be tainted by simple that many other teachers in West Vir- for all students. The school motto, ‘‘An anecdotes. This is not a one-line sound ginia and around the Nation will emu- Open Door to New Beginnings,’’ is ob- bite issue. Like any Member of this late the ambition and dedication to her served and followed daily. Accordingly, body, I believe that America’s health chosen field that Ms. Barrett has so Weir Middle School recently intro- care providers are the best in the evidently displayed. duced a new program, WEIR, We En- world, and I believe that our health I also take great pleasure in learning courage Individual Responsibility, to care system is the most techno- of the headway West Virginia is mak- encompass total staff and student in- logically advanced in the world—the ing as a leader in education. Over the volvement in promoting learning and most technologically advanced in the past few months, my office has been in- the teaching of standards. world. Perhaps we don’t hear that undated with positive news about West Virginia, with stars shining enough. The reason for that could be many West Virginia schools and stu- across its educational firmament, is that this issue is being used by some dents. These bright spots deserve rec- home to many other schools producing folks as a political ad campaign, dwell- ognition for their efforts and innova- excellent students. To name a few, ing entirely on the negatives and fail- tion. As Plato wrote in his day, ‘‘Excel- Kiley Anne Berry, a sophomore at East ing to illustrate any positives. That is lent things are rare.’’ How true that is. Fairmont State College, in the north- not rational, that is not fair. People Excellence is something that we all ern portion of the State, is 1 of 20 dis- are prone to believe something if they can recognize—the Nobel Prize or a tinguished students selected from hear it enough, even if it isn’t true. play by Shakespeare or Aeschylus or across the Nation—not just across Repetition doesn’t right a wrong, al- Euripides or Sophocles; however, it is West Virginia, but across the Nation— though repetition may lead a person to not something that most of us see or to participate in an international think a wrong is right. experience on an everyday basis. For Youth Science Festival in Seoul, While watching this debate unfold, I that reason, excellence should be ac- Korea. Heather Wilson, an eight-year- have seen people wield surveys and knowledged and it ought to be re- old from Jefferson County, in West Vir- polls around this body like they were warded. ginia’s eastern panhandle, was selected weapons of mass destruction. It stands The Department of Education re- earlier this year as a National Runner- to reason that if you want to make a cently announced the selection of the Up in the Reading is Fundamental 1998 bill popular, back it up with a survey 1998 national blue ribbon schools, National Reading Celebration, an an- or a poll. Why? Because you can always which are recognized for strong leader- nual reading program challenging stu- get the answer you want by the way ship, high-quality teaching, up-to-date dents to meet or exceed an age-based you word the questions. curriculum, policies, and practices. In reading goal. Several students at Clay Legislating our Nation’s health care West Virginia, Weir High School, which County High School of Clay, WV, were system in such a fashion is like trying is in the northern panhandle of West distinguished in the ‘‘We the People to cross a chasm in two jumps. It is Virginia, and Weir Middle School, both . . . the Citizen and the Constitution’’ detrimental to everyone’s health. of Weirton, WV, were named for this national finals. More than 250 other I will, however, illustrate how unreli- award. Weir High School is unique for West Virginia students in grades five able survey and poll results have been its active role in preparing students to through eight were honored for their in relation to various health care qual- meet the demands of today’s high-tech exceptional academic talents as part of ity provisions. For instance, in May, a society. With increased global competi- the Johns Hopkins University Talent Democratic polling firm showed that 86 tion and industry downsizing, Weir Search. And the list goes on. percent of those questioned supported High School provides its students with I could spend several more minutes, the Patient Access to Responsible Care many important resources, including a or even hours, talking about distin- Act or PARCA bill. In the same month, computerized library resource direc- guished West Virginia students and a Republican poll found that more than tory, Internet accessibility, satellite West Virginia schools, and education in 90 percent of those questioned favored

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00010 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7925 federal legislation to guarantee protec- square miles with only 465,000 resi- coming days. You just might agree tions such as full information about dents. The State has an average ele- that getting quality out some of these their conditions and treatment op- vation exceeding 4,000 feet. We have bills is like trying to squeeze blood out tions, a list of benefits and costs, as high altitude and low multitude. of a turnip. And we’ll want to spend well as access to specialists. Most communities have a higher alti- some time talking about whose blood! But when folks were asked how they tude than population. In fact, if you Thank you, Mr. President. feel about their own health plan, an look at one of the Wyoming roadmaps, I yield the floor. April survey by the Employee Benefit you will find a list of about 150 cities. Mr. KENNEDY addressed the Chair. Research Institute showed that 53 per- We call them cities out there. If you The PRESIDING OFFICER. The Sen- cent of respondents were extremely or look at the population following the ator from Massachusetts. very satisfied with their health plan. name of the city, you will see that half f And in a November 1997 Kaiser/Harvard of them have no population at all. AZORES EARTHQUAKE They are a place where the ranchers survey, 66 percent of Americans in Mr. KENNEDY. Mr. President, I want managed care plans said they would come to pick up their mail. Even the to bring to the attention of the Senate give their own health plan a grade of A Postmaster doesn’t live in the town a rather tragic set of circumstances or B. Such mixed results are more rea- where the Post Office is. It is a long that has taken place in the Azores in son to approach any debate of federal way between towns. I live in the sixth the last several hours. mandates with the greatest degree of largest town in the State. It is 135 Some 1,500 minor aftershocks hit the caution. miles to the next biggest town—135 Azores last night after a strong earth- What would the polls show if people miles. The town I am from has 22,000 quake struck the islands, killing 10 were asked about additional costs? people. The biggest city in Wyoming is people, with very severe damages to What would the polls show if changes 50,006. We don’t have that much popu- the island of Faial in the Portuguese could eliminate being able to see a doc- lation. We have a lot of miles. It is mid-Atlantic archipelago. There are tor at all? tough to get to doctors. many individuals sleeping out in the I will talk in a minute about the It’s in those conditions that my con- open, in the parks, and in their cars, to frontier, the rural, aspects of that. stituents have to drive up to 125 miles avoid the risk of being caught inside of Yes, another factor that has pro- one-way just to receive basic care. a building if another quake should duced mixed results is the cost of each Moreover, we have a tough enough strike. of these bills. I’ve seen estimates for a time enticing doctors to come to Wyo- The impact of that was 5.8 on the number of pending bills that could ming, let alone keep them there once Richter scale, which is a very, very siz- raise the price of premiums by at least their residency is finished. Even more able earthquake. 2.7 percent all the way up to 23 percent. troubling is the limited number of fa- As I mentioned, there have been Why aren’t the people being polled cilities for those doctors to practice some 1,500 aftershocks. And the terror about that? I don’t believe that you medicine in Wyoming. Let me just say and loss that has struck the people in can get quality out of any bill that that if you don’t have doctors, or fa- that island and in that archipelago is a forces people not to purchase insur- cilities for them to practice in, you great human tragedy. Obviously, the ance. We’d essentially be driving peo- sure don’t have quality health care. people of the United States want to ple away from coverage, not toward We have even talked here about an reach out to all of those islanders and coverage. This is why cost estimates overabundance of doctors in parts of all of the people and families who have for the different proposals are vital. the country. In Wyoming, we wish for lost loved ones and those who are suf- But with mixed results like this, I’m that affliction. fering injury. not about to assume that my constitu- The majority of bills now pending I know that the United States will do ents—who budget their incomes on a consideration in the House and Senate what it can in terms of help and assist- day to day basis—will swallow any ad- are primarily geared to overhauling ance to the people and to the Por- ditional price increases that federal managed health care plans. In a rural, tuguese Government, particularly peo- mandates could create. under-served state like Wyoming, man- ple on those islands, and we will want We are always asked that we not aged care plans account for a very to give whatever humanitarian help judge a book by its cover. Well, don’t small percentage of state-wide health and assistance that we can. judge a bill by its title. The devil is in plans and services currently available. This happened a number of years ago. the details. Or, as we accountants like This is partly due to the state’s small Some 40 years ago I can remember to say, the numbers should make us population. Managed care plans gen- those circumstances, and I think many nervous, or the numbers should show erally profit from high enrollment, and of us in Massachusetts who are fortu- the nightmare. as a result, the majority of plans in nate to have families and friends who Aside from the morass of misleading Wyoming still remain fee-for-service. have families in the Azores and from information pertaining to this issue, I In terms of legislation, however, this the island of Faial, know that they are also have serious reservations about doesn’t make a bit of difference. Many suffering greatly today, and it is appro- any legislation that would dismantle fee-for-service insurers in my state priate that we take whatever steps, as traditional state regulation of the also offer managed care plans else- a country, to help and assist them. In health insurance industry. While serv- where. Those costs could be distributed the meantime, our thoughts and pray- ing in the Wyoming State Legislature across the board. Is it fair for the fed- ers are with all the people of the for 10 years, I gained tremendous re- eral government to force my constitu- Azores. spect for our state insurance commis- ents to pay for a premium hike that’s f sioner’s ability to administer quality caused by federal mandates on man- guidelines that cater to the unique aged care? The availability and cost of THE PATIENTS’ BILL OF RIGHTS type of care found in Wyoming. That is care for 465,000 rural frontier residents Mr. KENNEDY. Mr. President, on an- critical. I firmly believe that decisions may not mean much to some folks, but other item, I want to just take a few which impact my constituent’s health it sure means a great deal to me. moments to bring the Senate and those insurance should continue to be made Is this a problem that can be fixed who are watching up to date about in Cheyenne—not Washington. from Washington? I certainly don’t be- where we are on our battle for debate I cannot emphasize how important it lieve so. People from Wyoming under- and discussion on the issue of the Pa- is to consider demographics when de- stand that life in our state is much dif- tients’ Bill of Rights. bating health care. Wyoming has ferent than in California or New York. As we have pointed out, that issue, 465,000 residents living within 97,000 A one-size-fits-all policy doesn’t help which is of fundamental importance to square miles. That is living in a State states like Wyoming, it only excludes the American people, is a rather basic that is 500 miles on a border. We are them further from obtaining the type and fundamental issue. It comes down one of those square States that of care they deserve. I encourage my to this very simple concept—that med- couldn’t exist if somebody hadn’t in- colleagues to look at the fine print ical decisions ought to be made by doc- vented the square. There are 99,000 when considering legislation in the tors and patients and not by insurance

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00011 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7926 CONGRESSIONAL RECORD — SENATE July 10, 1998 agents, and that too often in America patient group and every employer un- tion will be used only to provide better today managed care means mis- derstands are essential if patients and health care. managed care. We have a responsibility consumers are going to be able to make This would suggest privacy protec- to address the abuses that are taking informed judgments on their health tions. This is very interesting. Senator place in our health care system. care. LEAHY, our colleague from Vermont, That is what this whole discussion is Now, returning to the Republican has been a leader in this whole area. He really all about. Those of us who be- leadership’s list, it goes on to say that introduced a bill more than a year ago, lieve these issues are important have consumers should be able to ‘‘hold which I have cosponsored, and we can’t been denied the opportunity to address their health plans accountable through get the majority to report out a bill in them. Some of us have introduced and a fair and expeditious appeals process.’’ our committees, either in the Judici- supported legislation to address these That sounds good. But, the word that ary or in our Labor and Human Re- abuses more than 11⁄2 years ago, and, should have been in there is ‘‘inde- sources Committee, or get the Repub- more recently, we have done so with pendent.’’ Patients need an inde- lican leadership to be willing to sched- the excellent bill that our leader has pendent appeal process. What does ‘‘a ule it on the floor. Here they are, talk- provided, Senator DASCHLE. We are in fair and expeditious appeals process’’ ing about all the kinds of guarantees in strong support of it. We have been try- mean? If they had said it will be ‘‘inde- terms of privacy, but they have histori- ing to get time to debate that issue pendent,’’ or to an ‘‘external body re- cally been unwilling to address it in a here on the floor of the U.S. Senate. We view for fair and expeditious appeals’’— meaningful way. were blocked out of consideration in then we would be on our way toward Mr. President, just before the Fourth our committees. We were blocked out agreement on something. But, oh, no, of July recess Speaker GINGRICH issued of consideration of even getting legis- this again refuses to be specific or even his principles. The Gingrich plan fails lation on the calendar. We have been indicative that patients will have fair- in three very important areas. First, it blocked out of consideration here on minded, independent, outside external refuses to commit the Republican lead- the floor of the U.S. Senate, and we review and accountability. ership to HMO reform that says that have been resolute in our determina- Furthermore, the so-called principles medical decisions will be made on the tion that this issue would be debated say consumers will be permitted to basis of medical concerns rather than and discussed and acted on in this ses- ‘‘communicate openly with their doc- insurance company concerns. Second, sion. tors about their treatment options.’’ it does not guarantee access to special- We have seen, I think, as of yester- That sounds like we are lifting the gag ists. What person in this Chamber day, a list of so-called principles from rules, like this list might include lift- would want to have either his wife or our Republican leadership on their ing the gag rules that still exist in child who had been stricken by cancer version of a Patients’ Bill of Rights. I some HMOs. But, the fact is that most be denied immediate access to an ap- will just take a moment or two to re- HMOs and insurance plans have the propriately qualified oncologist or pe- flect on their particular principles, and ability to fire doctors without cause. diatric surgeon who can provide the the hollowness of their commitment to And they also have the ability to make best in terms of treatment? The Ging- meaningful rights will be clear. financial arrangements with doctors, rich proposal simply does not provide I ask unanimous consent to have and those financial arrangements can the kind of guarantee of specialist ac- printed in the RECORD at the conclu- be adjusted and changed by the HMO, cess which is critically important for sion of my remarks their complete doc- to discourage provision of necessary protecting consumers. ument, the Republican Health Care medical care. So, while it sounds good Third, it does not provide the ulti- Principles. to say you are promoting open commu- mate protection of accountability. This The PRESIDING OFFICER. Without nication, unless you are also going to will be an issue we will debate here. I objection, it is so ordered. guarantee that doctors can practice cannot wait to find out how the Senate (See Exhibit 1.) medicine unfettered by the insurance is going to vote on the issue of ac- Mr. KENNEDY. Let me just go companies’ accountants, you are really countability. Just last month, the Sen- through them very quickly. This is on not doing very much. It might sound ate voted by two-thirds that we were page 1. good, but in fact it is not doing very going to still hold the tobacco indus- Republicans believe all consumers much. This is really a very, very weak tries accountable for their actions. Are have the right to: Receive accurate, commitment. we going to reverse that with regards easy-to-understand information about Then their list goes on. The con- to the insurance companies on health what their health plans provide, in- sumer should: care? Why can’t our Republican leader- cluding information about out-of-pock- Know that their medical care is based on ship say, at least on that issue, given et expenses and information about the best scientific information available, not where the Senate has voted on tobacco, health care providers. on political considerations. that we believe that the insurance in- Then, if you read through the pages Patients need and deserve the best dustries that are dealing with health of their document and go to the last health care treatment. They are not care also should not be free from liabil- page, it talks about the information worried about the political consider- ity? Why? Because the Republican that will not be provided; that is, it ations. They are worried about the fi- leadership is in the pockets of the spe- lists, for example, that insurance plans nancial considerations—profit consid- cial interest groups who fear being held will not have to provide information on erations of insurance companies—that accountable for their actions. I would treatment outcomes. They will not drive medical decisions. Do we under- like someone to explain the inconsist- have to provide information on patient stand this? Our Republican colleagues ency of this position, given the recent satisfaction. They will not need to re- do not even commit in their statement vote on immunity for tobacco compa- port on the quality of the care they de- that they are going to have the deci- nies. How can they oppose holding ac- liver. It seems to me that consumers sions involving health care being made countable those whose abusive actions ought to understand the satisfaction by the doctors on the basis of health can result in immediate injury or level of patients in a particular HMO. considerations. All they say is they death? Who is going to look out after It seems to me that we should also will have it ‘‘not on political consider- that? Mr. President, we want to make have an opportunity to know the out- ations.’’ They don’t eliminate the sure we are going to have account- comes of various treatments in various clear, fundamental problem driving ability and that it is going to be an es- insurance plans. this debate, which is that health treat- sential issue we are going to debate. So, on the one hand, you see on page ments are being based on the financial I call this Senate Republican pro- 1 various information is going to be considerations of the insurance compa- posal ‘‘Gingrich Lite.’’ Gingrich Lite. made available. Then you turn around nies. They don’t even go as far in the Senate on page 3 and it lists all the things The Republican leadership’s list con- as they went in the House of Rep- they are not going to provide, includ- tinues. Consumers should have: resentatives, which was lacking. ing many of the essential elements Access to their medical records and the Finally, the Republican leadership’s that every consumer group and every right to know that their medical informa- principles fail to meet the following

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00012 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7927 very basic considerations and protec- Communicate openly with their doctors harm than good. Congress should not mag- tions. I am waiting for Republicans to about their treatment options; nify and repeat past errors by imposing new Know that their medical care is based on body part mandates on health plans. describe why they are opposed to any the best scientific information available, not of these protections. I will just men- The federal government should focus on a on political considerations; and system which will give providers and physi- Access to their medical records and the tion them again very quickly. cians more time with patients and less time right to know that their medical informa- Patient information—it is inter- on paperwork. Bills that impose extensive tion will be used only to provide better esting, as we list all of these protec- information disclosure requirements on tions in this particular chart, to note health care. Republicans support expanding health care health plans will force those plans to impose where we got these recommendations coverage to more Americans by enhancing extensive paperwork requirements on pro- from. its affordability. We will not adopt legisla- viders. Instead of simply filing claims infor- In each and every case of protections tion that will make health insurance more mation with insurers—as providers in fee- that are guaranteed in the Patients’ costly or drive businesses—especially small for-service and PPOs do—doctors will have Bill of Rights, they have also been rec- businesses—to drop coverage of their em- to supply insurance companies with informa- ommended either by the President’s re- ployees. While CBO has not completed its tion about their patients, the care their pa- analysis of PARCA or the ‘‘Patients Bill of tients receive, treatment outcomes, and pa- cent quality commission, which was a tient satisfaction, among other things. This blue-ribbon non-partisan group of ex- Rights,’’ a 1997 Milliman and Roberts study of PARCA found that the legislation would will require doctors to spend more time fill- perts, or they have been in effect for a increase health care premiums by an average ing out forms and less time treating their number of years under Medicare, or of 23 percent. To the average family, that’s patients. they have been recommended by the an annual premium hike of $1,220, or more Republicans will not politicize or simplify States’ insurance commissioners, than $100 per month. That study, signifi- an issue as important as health care quality. which is a bipartisan group, or it has cantly, did not take into account the addi- Many on the other side are willing to jeop- been recommended by the American tional costs that would be imposed by the li- ardize insurance coverage for millions of Americans for a political ‘‘slam dunk.’’ Re- Association of Health Plans, which is ability provisions. Higher health care costs mean more unin- publicans will not exploit the fears of Ameri- the HMO trade association. sured people. According to a 1997 study by cans in order to enjoy a political victory. If you look down at guarantees that Lewin, for every 1 percent increase in pre- The issues surrounding the quality of our na- are included in our Patients’ Bill of miums, 400,000 people lose their health insur- tion’s health care deserve to be debated re- Rights, you will see that they have ance coverage. Congress should not pass leg- sponsibly and cautiously. We will not pass been recommended or been in effect for islation that would cause hundreds of thou- legislation which increases the number of a number of years. This is a common- sands and perhaps millions of people to be- uninsured, makes health care unaffordable, sense—commonsense—proposal based come uninsured. and diminishes rather than enhance health Republicans believe in expanding choice. care quality. upon thoughtful consideration of the We will not force every American into an types of rights that are currently being HMO. Extensive new federal requirements Mr. BUMPERS addressed the Chair. guaranteed to many, but not all, Amer- included in the so-called Patients Bill of The PRESIDING OFFICER (Mr. ROB- icans. Rights will force all health plans to resemble ERTS). The Senator from Arkansas. Mr. President, we welcomed the op- HMOs. Ironically, many of the bills which Mr. BUMPERS. Mr. President, rather portunity this week to have the meas- claim to expand choice actually would limit than ask later, let me ask now. I ask ure before the Senate. It was there choice. Rather than expanding regulation unanimous consent that I be able to very, very briefly, but quickly taken and forcing a ‘‘one-size-fits-all’’ approach to proceed for up to 15 minutes. away by the Republican leadership. No health care, Congress should focus efforts on reforming the tax rules which limit and in Mr. WARNER. Mr. President, reserv- debate. No discussion. some cases prohibit consumer’s choices. ing the right to object, can I ask what This issue is a priority for the Amer- Republicans believe that health resources the standing order is. ican people, and, even though we have should be used for patient care, not to pay The PRESIDING OFFICER. The only 44 days left in this Congress, we trial lawyers. Medical malpractice laws have standing order is 10 minutes. are going to be resolute and committed led doctors to practice defensive medicine, Mr. WARNER. I certainly want to ac- to bringing this issue up so that we in making health care more costly without im- proving patient outcomes. Expanding mal- commodate the Senator, but there are this body are going to be able to debate others of us who are waiting. If that is these matters on the floor of the U.S. practice liability will exacerbate these prob- lems. Moreover, health plans are likely to what the Senator desires, then I with- Senate and vote to provide patients micromanage clinical decisions in order to draw the objection. But knowing my across the country with meaningful protect themselves against costly lawsuits. dear friend—15 minutes, fine. I thank protections. Congress should not pass legislation on the the Chair. There are 44 days left, Mr. President, assumption that people can sue their way to The PRESIDING OFFICER. Without in order for us to take action—44 days health care quality. objection, it is so ordered. The Senator left. Today is July 10. There are 44 days Republicans believe the private sector is from Arkansas is recognized. left to debate this issue and to take ac- more capable of keeping pace with the rapid changes of health care. The government is Mr. BUMPERS. I thank the Chair. tion, and the American people deserve not the best caretaker of health care quality. (The remarks of Mr. BUMPERS and action, and they will receive it, be- Republicans agree with leading physicians cause we are strongly committed to it. Mr. WARNER pertaining to the intro- such as Dr. Bob Waller of the Mayo Clinic, duction of S. 2289 are located in today’s I yield the floor. who warned that increased federal regulation RECORD under ‘‘Statements on Intro- EXHIBIT 1 of health care quality, by freezing in place duced Bills and Joint Resolutions.’’) REPUBLICAN HEALTH CARE PRINCIPLES standards that will quickly become obsolete, Republicans will demand that HMOs play will actually diminish the quality of care (The remarks of Mr. WARNER and Mr. by the rules and provide access to patient- that patients receive. Who also agree with FORD pertaining to the introduction of centered care. Many consumers fear that the approach taken by the President’s own S. 2288 are located in today’s RECORD their health care plans will not give them ac- hand-picked Commission on Quality which under ‘‘Statements on Introduced Bills cess to care when they need it most, that did not recommend legislation or regulation. and Joint Resolutions.’’) they will be denied the benefits they’ve paid Instead, the President’s Commission—which The PRESIDING OFFICER. The dis- for and been promised, and that their health he has conveniently disavowed—rec- ommended voluntary implementation of con- tinguished Senator from North Dakota plans care more about cost than they do is recognized for up to 10 minutes. about quality. These are real fears of unac- sumer protections. Republicans believe consumers have the ceptable conditions and HMOs must do bet- right to a health system driven by the best ter. f Republicans believe that all consumers scientific evidence available—not one ham- have the right to: strung by political considerations. Congress SUDAN’S FAMINE Receive accurate, east-to-understand infor- should not practice medicine. Over the past mation about what their health plans pro- several years, Congress has imposed a num- Mr. DORGAN. Mr. President, in the vide, including information about out-of- ber of ‘‘body part’’ mandates on health insur- Washington Post this week there was pocket expenses and information about ance plans. These mandates, though well-in- an article entitled ‘‘Sudan’s Famine health care providers; tentioned, are often misguided. For example, Overwhelms Aid Effort.’’ I want to read the Journal of the American Medical Asso- Receive the benefits they have paid for and a couple of sentences from this article, been promised; ciation last year published a study which Hold their health plans accountable concluded that maternity length-of-stay re- because I was struck by the concur- through a fair and expeditious appeals proc- quirements do not improve health outcomes rence of what I read about what is hap- ess; for mothers or their babies and may do more pening in Sudan and what I know is

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00013 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7928 CONGRESSIONAL RECORD — SENATE July 10, 1998 happening in North Dakota and in I served for almost 10 years on the when you have these excessive wet cy- much of the farm belt. Hunger Committee in the U.S. House of cles and pervasive crop disease so they As the gate is about to close for the night Representatives. I am well familiar don’t get much of a crop. Then if they on the feeding center here, near-lifeless bod- with the famine that occurred in Ethi- do get a crop, they send it to the mar- ies start turning up everywhere. Three have opia. I am well familiar with past fam- ket and it is underpriced because the collapsed just outside the reed walls of the ines in Sudan and other parts of the price has collapsed. compound, human skeletons so thin they world where millions have died of star- The reason I make this point is we look two-dimensional against the ground. Three, then four, then five, then, somehow, vation. This is happening on a planet have family farmers in North Dakota— eight others have been carried inside and where, in some parts of the earth we and in other parts of the Farm Belt, laid among the swarm of gaunt people still produce food in great abundant quan- but especially in North Dakota—who strong enough to beckon medical workers tity and those who produce it are told are suffering terribly. We need to do who have spent the day ministering to the it has too little value. something about that. hundreds gathered outside this place that We have family farmers today who Do we need to respond to the Sudan has food. have invested everything, their lives, with respect to food aid, substantially The workers move from body to body, feel- 10, 20, 30 years into running a family increased quantities of Food for Peace, ing for a pulse, crumbling high-calorie bis- cuits into palms, pouring sugar water from farm far out in the country, with the title II and title III and others? Yes, we gourd to mouth. The impossibly sunken yard light on at night, raising their do. It is this country’s obligation to do cheeks of a man too weak to hold his head up family, sending their kids to school, that. We ought to do it. Doing so, how- by himself fall deeper into his face as he getting up early to do the chores, ever, also obligates us, it seems to me, slurps. . . . working all day, doing chores at night, to do something to help those family Four months after aid agencies issued and discover when they check their farmers in our Farm Belt who are los- warnings of impending famine in southern books and records that they are losing ing their hopes and their dreams. Sudan—and two months after they mar- ‘‘This is the worst plant disease epidemic shaled public opinion in the name of heading money and losing their farms. that the United States has faced with any it off—starvation has arrived regardless. Here is what happened to the price of major crop in this country.’’ Brian Across a vast region unsettled by civil war wheat in the last couple of years. Steffenson of North Dakota State University and erratic weather, the United Nations now Wheat prices have fallen 53 percent said that last week. That is just one part of says, 1.2 million people are at risk of death since the current farm law was passed. the price collapse and crop disease that has from hunger. Prices have collapsed like a down esca- put us in a devastating situation. They are living on the leaves of trees. lator, and yet some people say, ‘‘Gee, Steffenson also said, ‘‘North Dakota’s bar- I heard a fellow who visited Sudan de- everything is working just fine.’’ In ley industry is hanging on by a thread, even scribe old women climbing trees to for- fact, I heard some people say the farm though it is typically the leader in feed and age leaves to eat. When I think that program is working just fine. It is not malting barley production in the nation.’’ halfway around the world people are working just fine. Farmers not only face disease and dying of starvation, and people are The price of wheat is collapsing. On low prices, but also have a problem of climbing trees to eat leaves on trees, I top of this, in our State we have the selling into highly concentrated mar- can t help but think that on the other worst crop disease in a century. This is kets. Family farmers are trying to fig- side of the world that our family farm- a crop disease that is pervasive. It is ure out how they market their com- ers who produce food in the most abun- called fusarium head blight, commonly modity effectively. If they are raising dant quantity anywhere on the Earth called scab. Farmers are hit by col- beef, four packers control 87 percent. If are being told that their production lapsed prices and crop diseases that are they raise pork, its four packers that has no merit, and no value. devastating. So we have, it seems to control 60 percent. Four firms control The price of farm commodities col- me, a twin failure here on this globe of 55 percent of broilers. If they have lapses, and family farmers are told, ours. We have people who don’t have sheep, four packers control 73 percent ‘‘Well, that’s the breaks. That is the anything to eat and are starving and of sheep slaughter. way things are. You produce it, and it dying in the streets in Sudan. Then we Grain facilities at our ports are con- should be worth $4.50 or $5 to cover the have families who are failing in the trolled by four firms which have 59 per- cost of production, and then you go put Farm Belt who have risked everything cent. In flour milling, four firms con- it on a truck and drive it to an eleva- they have to run a family farm and are trol 62 percent. In wet corn milling, tor, and it is worth $3. Somehow the told, when they truck that wheat and four firms control 74 percent. You get market doesn’t value it. Your crop barley that makes the foodstuffs that the picture. One farmer out there doesn’t have worth, and doesn’t have can be life-saving to others, that some- against that kind of market power that merit.’’ how this has no value. At least, they puts downward pressure on all these I think to myself that there is some- are told its value is so diminished that prices. thing kind of Byzantine about a world you can’t make a decent living growing My point is this: We have a responsi- in which that happens. Just detach this grain. bility in this Congress to care about yourself from the globe for a moment Let me show you what has happened economic injury to important indus- and look at a globe sitting out here to these family farmers in my State. In tries in this country, and none is more with people on this side starving and 1 year, there has been a 98-percent re- important, in my judgment, than fam- people on this side who are operating duction in net income for family farm- ily farming. Family farming is, and al- family farms going broke because they ers. That’s right, 98 percent. Go to any ways has been, since Thomas Jefferson are told their food doesn’t have value. neighborhood, any street, anyplace in so described it as the most important Gosh. this country and ask anybody how will enterprise in this country. Family This is not true with military equip- you handle it, how will you fare, what farming is still important in this coun- ment. Military equipment always has will your life be like, if somebody try, and we must make a commitment value. They ship it all around the takes away 98 percent of your income? to deal with the economic injury to world every day in every way, and This describes a serious economic people who are out there, threatened there is plenty of money to finance it. emergency. with the loss of their livelihoods and The poorest countries in the world can In my State, these red counties the loss of their homes and dreams on buy military equipment. The poorest which make up a third of our counties, their family farms. countries in the world can afford ap- have been declared disaster counties In the coming week we intend to parently the best jet planes, tanks, every single year for 5 years—every meet with the President. In the coming guns, and shells. But when it comes to year. Not just occasionally, every year. weeks we intend to come to the Con- food, the people who need it are starv- Incidentally, North Dakota is 10 times gress and ask Republicans and Demo- ing, and the people who produce it—our the size of Massachusetts in land mass. crats, conservatives and liberals, all of family farmers—are told it doesn’t Those family farmers are trying to run them, to join us to say: We are not only have worth and they can go broke. a farm out here and trying to raise a profamily, we are profamily farming, Let me describe what is happening in crop they can plant and harvest. They and during times of emergencies we our part of the world. I might say that have discovered that you cannot do it want to reach out and help. A country

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00014 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7929 that can provide foreign aid can also So I filed for cloture last night on S. That timely access to the courts will provide some farm aid in times of trou- 2271, and I intend to strike and sub- be assured by the passage of this legis- ble, and we have not had a time of stitute the content of H.R. 1534, which lation before the Senate Monday, and trouble anywhere close to this for passed the House by an overwhelming the vote will be at 5:45 p.m. on Monday many, many decades. vote—I think the margin was well over to allow us even to proceed to consider Just this morning one of the industry 100—and which has been amended and this bill which will guarantee private leaders in North Dakota indicated that passed by the Senate Judiciary Com- property owners access and the oppor- he thinks we are headed towards a pe- mittee. tunity to go to the Federal courts. riod that is about as bad as the 1930s on I commend the Judiciary Committee This legislation affects only Federal the family farm. We have an obligation for the work they have done in this property rights claims brought before a to respond. I will ask the cooperation area under the chairmanship of Sen- Federal court. Despite the contentions of the majority leader, the minority ator HATCH and with a lot of other Sen- of opponents to this legislation, State leader, and all people of good will here ators being involved, including Senator and local prerogatives and State and in this Congress who care, as I do, DEWINE from Ohio and I think Senator local claims—those based on State and about the enterprise of family farming SESSIONS from Alabama. They pro- local law—are not affected. The mere and the fortunes of those families in duced this very important legislation, fact that a property rights constitu- rural America. I hope we can pass a which is intended to protect an indi- tional claim may arise from some ac- piece of legislation in the next several vidual Constitutional right, the right tion taken by a State or local govern- weeks to respond to this emergency. to own and keep private property, by ment does not make that claim per se I thank the Senator from Mississippi guaranteeing timely access to the Fed- a State law claim rather than a Fed- for his indulgence. eral courts. eral claim. The PRESIDING OFFICER. The dis- A primary function of the Congress, I The Judiciary Committee has en- tinguished majority leader is recog- think, is to safeguard rights guaran- deavored to strike the proper balance nized. teed by our Constitution. When the when weighing any impact on State f Fifth Amendment to the Constitution and local governments caused by this was ratified, our Founding Fathers legislation. This legislation will cer- PRIVATE PROPERTY RIGHTS were confident that the right of an in- tainly empower property owners—that Mr. LOTT. Mr. President, I have in dividual to own and use private prop- is what it is intended to do—but I be- my hand a copy of that wonderful doc- erty without unreasonable restrictions lieve it will merely place them in the ument, the Constitution of the United of that right would be guaranteed. position they should have been in all States of America. It begins, ‘‘We, the However, the framers of the Constitu- along and will place them in a position people of the United States * * * ’’ Like tion and the Bill of Rights could not that balances the need of the govern- Senator BYRD, who refers to it quite have reasonably foreseen the tremen- mental entity with the rights of the often and carries a copy of it in his dous changes in our Government struc- private property owner. pocket, I find that when I go back and ture that have resulted, I believe, in Finally, it should be clear to all that read it and reread it I always see some- the real impairment of these property the U.S. district courts in particular thing different, something special, rights guarantees. (and the Federal court system in gen- something very treasured. I refer, The encroachment of Federal Gov- eral) are the proper venue for the adju- today, to the last phrase of Article 5, ernment agencies into matters of pri- dication of Federal constitutional which is very clear and unambiguous. vate land management is an issue of es- issues such as this Federal right stem- It says: calating cost to taxpayers, businesses, ming from the Fifth Amendment to the * * * nor shall private property be taken and private property owners. Such en- Constitution. This legislation does no for public use without just compensation. croachments often result in decreased harm to our well-established principles The Constitution is very clear. And property values, reduced or terminated of federalism. The Federal courts re- yet all across this country, privately business activities, and lost jobs. viewing these claims will have no owned property, including a lot of What value does a piece of property power to write permits or to make zon- farmers’ private property, and the pri- have in Kansas or in Connecticut or in ing decisions as do local governments. vate property of businessmen and indi- Mississippi if you have been told, ‘‘Oh, The courts do, however, have the re- viduals, is being taken pursuant to yes, it is your land. We won’t take it. sponsibility to ensure that such deci- government action without just com- But, by the way, you can’t use it in the sions are constitutional and do not im- pensation. In many instances for so- way you intended, for the purpose per- properly infringe upon the property called ‘‘good and valid reasons—for ex- haps that you had bought it; or you rights established by the Fifth Amend- ample, to preserve wetlands or to pro- can’t do something on your land that ment. tect endangered species. Such takings you have inherited from your fore- I am confident that this legislation may, upon examination, be legitimate, fathers?’’ You might as well just take will accomplish its desired effect, no but not if private property is taken it off the face of the globe. What value more and no less. That effect is to en- from the property owner in an inappro- does it have if you can’t use it? sure that a private property owner has priate way and without just compensa- The extreme interpretations, in my his day in Federal court and a fair and tion. opinion, of the Endangered Species Act timely hearing of his cause. This is a This is one of the rights I think we as and the Clean Water Act by Federal bedrock right, and it must be pre- Americans hold most dear, and is so de- regulatory agencies are resulting in a served. serving of protection that it is spelled policy of national land use control. This is not the same private property out in our Constitution—the right to Further, the rights of individual prop- rights bill that had been considered privately own property and to not have erty owners are imperiled when faced earlier by the Congress. It is much nar- it taken away by government action with oppressive Government regulation rower. It is targeted, but it gives access without just compensation being paid. without the ability to even fight for to the Federal court system. By taking When I visit with people from all those rights on equal footing. This this step, Congress will make great over the world, particularly those who must not be allowed to continue un- strides to ensure the preservation of have lived behind the Iron Curtain and checked. this important Constitutional right. in Eastern European countries, one of I believe a legislative remedy is now I would like to hear any Member of the things they want, one of the things needed to reinstate what should other- the Senate go to his or her constitu- they feel so strongly about in America, wise be inalienable. At a minimum, an ents in their respective States and say, is the ability to own private property, individual property owner should be ‘‘Private property owner, we think own your own little piece of the world, confident in the knowledge that the your property should be taken for and to own your own home. Yet, in Federal court system is available to re- whatever good and just cause that America—in America—we are in dan- solve a dispute over the taking of an might be involved without just com- ger of losing that right even though it individual’s property without just com- pensation, and, oh, by the way, you is guaranteed in the Constitution. pensation in a fair and timely manner. don’t even have the right to go to the

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00015 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7930 CONGRESSIONAL RECORD — SENATE July 10, 1998 Federal courts and have a determina- who for sometime now has been ringing with a numbing regularity, and wal- tion made if it is constitutional or a national alarm bell about the Na- lowing in titillation and sensa- not.’’ Try to defend that. tion’s declining morality. It was just a tionalism and, it seems so often, all We are going to have a vote. We will few weeks ago that Dr. Dobson caused things scandalous. see who really believes in private prop- a stir by proclaiming to the national Or closer to home, here in Congress, erty rights in America. press that we are in the midst of a civil consider what our investigation of the I yield the floor, Mr. President. war over America’s future, pitting the 1996 campaign finance scandal re- Mr. LIEBERMAN addressed the moral haves against the moral have- vealed. We live in a political system Chair. nots. where the clear intention of laws gov- The PRESIDING OFFICER (Mr. Not long after, Jane Fonda gave a erning campaigns are regularly vio- ENZI). The distinguished Senator from speech on teen pregnancy that actually lated, where we have defined political Connecticut is recognized. echoed Dr. Dobson’s martial proclama- deviancy down so far that it seems the Mr. LIEBERMAN. I thank the distin- tion, but from a very different perspec- only relevant standard left is what is guished occupant of the Chair. Mr. tive. Ms. Fonda attacked the views es- technically legal—which is another President, I ask unanimous consent poused by Dr. Dobson and others on way of saying, ‘‘What can we get away that I be allowed to speak without abortion and sex education, accusing with in order to raise vast sums of time limit as in morning business. them of ignoring children that ‘‘are not money to run more television ads, to The PRESIDING OFFICER. Without white, middle-class Christians’’ and win more elections?’’—and where objection, it is so ordered. warned her audience that our society is hustlers cynically compare gaining ac- Mr. LIEBERMAN. I thank the Chair. in the throes of a ‘‘holy war,’’ pitting cess to the White House to dropping to- f the forces of tolerance against the kens into a subway turnstile. forces of intolerance. Or consider the hostile tone of the BEYOND THE CULTURE WARS: It would be easy to dismiss this apoc- debates we often hear in this Congress HOW WE CAN REDISCOVER COM- alyptic talk, this talk that seems, in about visceral, values-based issues, MON MORAL GROUND some words, certainly to be intem- particularly such as abortion or homo- Mr. LIEBERMAN. Mr. President, the perate, as just another bout of the hy- sexuality or school prayer. The rancor distinguished leader’s reference to the perbole that dominates so much of our of these discussions, which is eagerly Constitution provides a transition for political discourse these days if it were amplified by the news media, only rein- me today, and I appreciate it. not for the accumulation of evidence forces the impression that values are Mr. President, 222 years and 6 days suggesting that Dr. Dobson and Ms something that divides us as Ameri- ago, our Founding Fathers issued what Fonda are each in their own ways on to cans today rather than defining us. we today regard as America’s birth cer- something. Maybe, as the stark con- So there is ample evidence, I think, tificate: the Declaration of Independ- trast and conflict of their views and to suggest that something is deeply ence. We know well the significance of the way in which they express them wrong with America’s moral health this date which we celebrated, once suggest, the values that have long held today. Nor is it a stretch to conclude again, last weekend all across the land us together are coming unglued. Maybe that Dr. Dobson and Ms. Fonda, to- and the subsequent events that com- we are on the verge of abandoning the gether with the legions of other culture prise the remarkable and unique story declaration’s premise of interdepend- warriors who have seconded their re- of our freedom. But sometimes, it ence and sliding toward either indi- spective convictions, raised some le- seems to me, we have lost sight of the vidual isolation or open conflict. gitimate and consequential questions substance of the document itself, and There is certainly a slew of public about what it is that ails us in our ca- its continued relevance to our polity. opinion polls showing that most Amer- pacity to remedy it. So today I would like to revisit this icans are gravely concerned about the Among them are, What has happened great statement of our American ideals condition of our values. There was a to the founding principles that under- to see what guidance it gives us about Gallup-USA Today survey released in girded the Declaration and, for that our current condition. March found that 49 percent of Ameri- matter, the Constitution and have sus- Reread Jefferson’s master work and cans believe that we are in the midst of tained us for generations? Have we, in you will see that it was not just the a moral crisis. And another 41 percent some sense, taken tolerance too far? Is declaration of our independence, but said they believe we have major moral our commitment to a common moral also a declaration of our interdepend- problems. What is driving these num- code on a set of fixed points of right ence, a defining statement of the com- bers, the polls suggest, is a swelling and wrong self-evident truths that we mon conditions and values, the shared sense that our moral safety net, the declared in the Declaration disinte- principles and purposes that would interlaced norms of behavior we depend grating? And if it is, can a house so di- unite a diverse population of English on to maintain a civil society, has be- vided against its own values stand and European pilgrims into a nation. come badly frayed, and that this fray- strong for long? The original Americans did not all ing has contributed to some of our Mr. President, in my remarks today I come from the same land, but they all most pressing social ills, from the re- will try to offer some answers that did agree that there are fundamental cent outbreak of children slaughtering may add to our understanding of the truths that are self-evident. children, to the ongoing epidemic of controversial and complicated values They did not all hold the same reli- children giving birth to children, to the debate, with the hope I may help to, in gious tenets, but they did all hold an general coarsening of conversation, some small way, move it beyond the unerring faith that those inalienable communication in our shared public warped groove we seem to be stuck in rights that Jefferson enumerated in places. these days. I do so convinced that the declaration were endowed not by Mr. President, then consider, if you America’s moral Cassandras are on to some benign king nor by the grace of a will, the vociferous complaints of mil- something, that our Nation is in the new government, but by their Creator. lions of American parents—I certainly grip of a crisis of values, that there I was moved to reflect, Mr. President, hear them in Connecticut—who feel as really is a conflict at our core, and upon the declaration’s meaning as our if they are locked in a competition that the recent spate of school shoot- latest national birth date passed last with the immensely powerful, popular ings and murders are a warning sign of Saturday by the recent comments of culture to raise their own children, a even greater trouble ahead. two prominent contemporary political culture which more and more rejects, But I also do so convinced that we activists about the state of our values rather than reflects, the fundamental are misdiagnosing this conflict by in America in 1998, comments which, values we Americans have abided by framing it as a civil war, and that when taken together, I fear show how for generations that have served us so those who do, in fact, make it harder we have lost some of the unity of our well, a culture that glorifies murder, to overcome the very divisions that founders’ national vision. mayhem and drug abuse, promotes they bemoan and we, as a people, must The first came from Dr. James Dob- promiscuity and the latest perversion repair if we are to fix what is, indeed, son, the head of Focus on the Family, of the moment, denigrates authority broken in our society.

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00016 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7931 Let me first try to say a bit more becoming intolerant. This tension is il- avoid mentioning the word ‘‘values’’ or about what I mean by common values, luminated by the research that Boston won’t dare to instruct children in the because I know from experience that University sociologist Alan Wolfe did meaning of right and wrong for fear these words carry heavy baggage with for his recent book ‘‘One Nation After that is too controversial or may offend them today and, as such, are often in- All,’’ which was based on interviews some. terpreted differently by different peo- with 200 middle-class Americans from It is particularly evident, I fear, in ple which is, in itself, a symptom of the eight different communities across the the influential entertainment media, larger problem we face. country. where executives at multibillion-dollar The best reference point I can think Wolfe set out to test the conven- conglomerates too often refuse to draw of is the Declaration of Independence, tional wisdom reflected, particularly in any lines that they will not cross to the Constitution, and the Bill of Dr. Dobson’s comments that ‘‘a deep raise their ratings and revenues. These Rights, which are the great founding divide existed between upholders of men and women produce a market to expressions of American values. traditional cultural and moral values our children—records that find fun in What are those core principles? Equal and those attracted to more modern cop killing, gang rape; even at the ex- opportunity, freedom of religion and themes of personal or group identity,’’ treme, pedophilia; video games that re- expression, particularly individual au- end of quote from Alan Wolfe. What he ward young players for mowing down tonomy, self-rule, personal and civic found, to the surprise of many, is a innocent people with weapons; homi- responsibility, tolerance, and a respect high degree of agreement across ideo- cidal hotrods and television talk shows for the basic dignity and underlying logical, theological, racial and ethnic that degrade the human spirit and de- pervasive respect for the basic dignity lines on a core set of common values, light in the exploitation of human mis- of human life. All of these are derived, on the basic questions of right and ery and perversity. I believe, and can be seen from the doc- wrong that still bridge our many dif- If criticized, the people who run the uments—the Declaration particularly— ferences as Americans. entertainment business often wave the all of these are derived from our faith But Wolfe also found a correspond- first amendment around as if it were a in God, in our belief in the existence of ingly high degree of reluctance to constitutional hall pass that excuses moral truth and a higher law, and all translate those privately held values their conduct, loathe to admit that the of which, I suggest, are essential to liv- into public expressions that hold oth- pollution they are dumping into the ing and sustaining a free and demo- ers accountable to those shared stand- public square has much less to do with cratic society. ards. free speech than it has to do with high- These Founding Fathers, we know, The common refrain Wolfe heard was er profits. had their roots in the Judeo-Christian that people did not want to appear in- The media moguls are surely not the ethic, the Declaration’s drafters, but tolerant and did not feel comfortable only business leaders who have sus- the values are not exclusive to any one imposing their morality on their neigh- pended judgment and let the values of religion. In fact, over the years, they bors. the market, or the inherent lack there- Of course, in some ways this rise in evolved into an American civic reli- of, rule practically unfettered. Much as tolerance has made us a much better gion—principled, purposeful, moral, Alan Wolfe’s research suggests, more country, much truer to our founding public, and not least of all inclusive— and more business leaders seem to be ideals of equality and opportunity. We an American civics religion that ce- checking their privately held values, have opened a world of new, more equal mented our common bonds as Ameri- which are strong and deep, at the office opportunities for women; for instance, door and, by extension, at least when cans for generations and made real the working to eradicate many confining they are functioning in their busi- ideal of e pluribus unum—‘‘one out of and misguided biases. We have made nesses, their sense of social responsi- many.’’ great progress over the last generation But there is a profound tension that in fighting bigotry and discrimination bility. As a result, it too often seems as I think we have to acknowledge in against African-Americans, making if the bottom line is the only line and these founding values between rights more real for them after a terrible na- that raising consumption is a far more and freedoms, which we, as individuals, tional history of inequality and perse- important priority than raising have been endowed, as the document cution, the equality of opportunity the healthy children. The purest distillation of this ethos, says, by our Creator on the one hand, Declaration and Constitution proposed I think, can be found in the new world and in the mutual responsibilities and for all Americans. common obligations we must accept to The same is happening with regard to of the Internet. Our shared enthusiasm form a government capable of securing our fellow Americans who are of His- for this exciting and immensely valu- those freedoms on the other hand—in panic and Asian descent, or today who able new medium has, unfortunately, other words, the coinciding claims of follow the faith of Islam, a group that been tempered by the almost complete independence and interdependence that is growing in number in our country. absence of boundaries or rules to guide Jefferson articulated so brilliantly in And we have begun to stamp out the online conduct. This is not just true of the Declaration. prejudice long harbored against homo- the criminals and the miscreants, the And it is in these tensions, I think, sexuals and accept them as fellow citi- pornographers, pedophiles, and scam that we find the antecedents of the zens deserving of the same basic rights artists who, sadly, are taking advan- conflict that today engages Dr. Dob- and respect as all other Americans. tage of the net’s anonymity to do son, Ms. Fonda and so many others. It But the triumph of tolerance in our wrong, but also a distressing number of is, at its heart, not a conflict, I think, values in recent decades has also had a businesses that should know better. A between warring camps of American less constructive effect. The pendulum recent report by the Federal Trade citizens so much as a clash of com- has swung so far and has become so Commission on cyberspace privacy peting fundamental American values— wary of the label ‘‘intolerant’’ that I showed that many nationally recog- independence versus interdependence, think we are increasingly unwilling, nized companies are using exploitive the belief in moral truth versus the and in some cases incapable, of making and manipulative marketing practices value of communal tolerance. It seems moral judgments. This is evident in the online to target web-surfing grade to me that we are not experiencing a evolution of public attitudes about the schoolers as potential customers. Spe- wholesale repudiation of the basic com- family, where we have gone from ear- cifically, an FTC survey of 212 sites mon values I have described, but rather lier times stigmatizing adultery, di- aimed at kids found that 89 percent a shift in our national moral equi- vorce, and particularly out-of-wedlock collect personally identifiable informa- librium in which tolerance has childbirth, to normalizing these behav- tion and fewer than 10 percent provide emerged as the more popular principle iors, with little apparent consideration any form of parental control over what of the day. given to the damage these choices can information can be solicited. A great challenge we face in our do, particularly to children individ- Now, one could argue that it is not time, given this shift, is how to sustain ually or to our society collectively. fair to judge these companies by their tolerance without inviting immorality It is also evident in too many of our conduct in cyberspace since it is such a and how to uphold moral truth without schools, where teachers and curricula new medium. But one could also argue,

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They teach our kids God was always looking—which is why ‘‘whose values?’’ when a question of that the proper way to resolve a dis- they showed such deference to what morality is raised. agreement is with a fist to the face or they described as the Supreme Judge of How much does this really matter? a bullet to the brain, that sex is a form the world in the Declaration of Inde- Well, according to Harvard’s Michael of recreational activity without con- pendence and why they made religious Sandel, the dissolution of our public sequences, and that parents exist ei- freedom the first freedom. They knew morality, coupled with the lost sense of ther to be mocked or ignored. These that in this Republic that they were common purposes, has effectively crip- messages are breeding more of the creating, where the power of the state pled our Government’s ability to re- same values vacuum that created them was to be limited, where the state solve our most complicated issues in in the first place, communicating to would not be all powerful, that faith in formulating public policy. Without a our children that standards are fun- God, in a higher law, would be a nec- common vocabulary of values and basic gible and matters of right and wrong essary and powerfully constructive moral assumptions that should form are negotiable at best, irrelevant at source of good behavior among the citi- our policies and our laws, Sandel sug- worst. zenry. gests that our most important public Most entertainment industry leaders Surveys done today consistently debates are doomed from the start be- deny that they exert this kind of influ- show that more than 90 percent of the cause we lack even a shared framework ence, but the evidence to the contrary American people say they believe in for reaching agreement. is accumulating in such abundance God. I can’t think of another question Professor Sandel goes further, argu- that the media conglomerates, I think, we could ask on a poll in this country ing in his recent book ‘‘Democracy’s are on the verge—dangerous verge—of that would get that high a response. Discontent’’ that the breakdown in our becoming the moral equals of the to- We exhibit levels of religiosity that are common moral code has put the entire bacco industry. Indeed, much like the far greater than any country in the American experiment in self-govern- link between cancer and cigarettes, the world. Yet over the last generation or ment in jeopardy. Sandel says that in decidedly negative effects of prolonged two we have grown increasingly reluc- moving toward a value-neutral polity, exposure to violence on television has tant to allow that faith to be expressed we have abandoned what our colleague, been proven conclusively by an over- in public, so much so that it seems at PAT MOYNIHAN, has so aptly called the whelming body of social science re- times we have banished religious val- ‘‘central task’’ of any society—to in- search, a conclusion embraced by the ues and religious institutions from our culcate values and develop virtue in its American people, yet continually dis- public policy deliberations and con- citizens, its children. By turning our puted in public by producers of violent struct a discomfort zone for even dis- backs on this mission, we have de- programming. cussing our faith in public settings, pleted the public capital necessary for There is also a recent, growing body ironically making religion one of the a democratic government to function of research to show a correlation be- few remaining socially acceptable tar- effectively. The consequences? A public tween heavy viewing of sexual content gets of intolerance. philosophy that Professor Sandel says, and kids initiating sexual activity be- If you look at the talk shows on tele- ‘‘cannot secure the liberty it promises fore they otherwise would have. A sur- vision and see subjects that are being because it cannot sustain the kind of vey done by Time magazine last month discussed there which go way over the political community and civic engage- showed that 29 percent of teenagers line, think of how little we see similar ment that liberty requires.’’ said they learned about sex mainly discussions of matters of faith. In driv- This cause for concern was re- from television, second only to their ing religion from the public square, we affirmed by an important new report friends as a source of knowledge, indi- manage to slowly and significantly, I released last month by the National cating that the small screen has be- fear, dislodge our morality from its re- Commission on Civic Renewal, chaired come a big sex educator. Also, many ligious foundations and thereby have by our former colleague, Sam Nunn, child development experts have voiced lost what I described a few moments and by former Education Secretary Bill concerns that the omnipresence of ago as our unifying national civic reli- Bennett, which found that we are in- graphic sexual displays throughout the gion. creasingly becoming ‘‘a Nation of spec- media and in advertising is helping to In some ways, the Ten Command- tators,’’ passively disengaged from the sexualize our children at an ments became just another ‘‘do and duties and work of self-government. unhealthily early age. It was because don’t’’ list that people feel free to The commission examined 22 different of these reports that I sponsored legis- argue with, negotiate, or ignore out- trend lines, such as voter turnout, lation in the fiscal 1998 Labor-HHS ap- right. Without the connection to a newspaper readership, and survey propriations bill directing the National higher law, we have made it more and measurements of public trust, and de- Institute of Child Health and Human more difficult for people to answer the termined that our civic condition has Development to initiate a broad-based question of why it is wrong to steal, declined precipitously over the last research initiative on the media’s in- cheat, or lie, or settle conflicts with vi- generation. fluence on children’s sexual behavior. olence, or be unfaithful to one’s spouse, Now, these indices of our current That is now underway. Hopefully, it or to be exploitive with children. We moral and civic decline become even will provide us a clearer understanding have often deprived our public life of more rattling when we consider what is of the relationship. what I believe is the best source of bet- filling the values vacuum today and What the experts tell us has recently ter behavior that the human race has, what that means for our future. As our been corroborated by an abundance of which is faith in God and a sense of traditional values transmitters have real-life experiences. Earlier this year, personal accountability and responsi- shrunk from the task, the omnipresent, in Norfolk, VA, for instance, educators bility that should go with it. powerful popular culture has stepped in within the local public schools ob- The net result of the intertwined to assume that vitally important role. served that a disturbing number of trends that I have just described—the That means that the people setting the children who watched Jerry Springer’s triumph of tolerance, the lionization of norms of behavior in this country and fight-filled talk show were often choos- the market, the breakdown in author- the standards of right and wrong more ing to settle their disputes, as they ex- ity, and the loss of public account- and more are the television producers plained, ‘‘like they do it on the Spring- ability that comes from faith—is that and syndicators, the movie moguls, the er Show,’’ with punches and kicks. One we have succeeded in creating a values fashion advertisers, the record manu- principal in Norfolk was so concerned vacuum in American life today. In this facturers, the software designers, and a that she sent home a letter with each

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I am murder and mayhem so rampant Also encouraging is what is hap- certainly not here to claim that the throughout the electronic media are pening outside the cultural epicenters media is solely to blame for this spate playing some role in this American of New York and Hollywood. In recent of student gunfire. To do so would be nightmare. months, a political consensus has unfair and would ignore the factual We can and also should talk about begun to take shape about the dire complexity of each case. Yet, it would easy access to guns too many kids state of our moral and civic condition, be a far greater folly, I think, to ignore enjoy, which is evidenced by a recent bringing together disparate voices on the pattern emerging that indicates study showing that nearly one million the left and the right to cry out for re- that there is a connection between kids brought a firearm to school at newing fundamental values in our pub- these violent acts and the culture of vi- least once this past school year, and lic life. olence enveloping our children. nearly half of them did so at least six This consensus is expressed elo- According to a recent report in the times. And we can and should talk quently in an important new report, ‘‘A New York Times, which reviewed the about the need for greater parental in- Call to Civil Society: Why Democracy most well-publicized cases of student volvement and faster intervention by Needs Moral Truth,’’ which was issued violence over the last 9 months, as well counselors and other school personnel by a diverse collection of leading aca- as a few earlier incidents, we can con- when kids show signs they are homi- demics, theologians, social activists, clude that each of the attackers civic leaders and politicians, from Har- ‘‘seemed to be obsessed with the vio- cidal or suicidal. But I think we have to also talk hon- vard’s Cornel West to UCLA’s James Q. lent pop culture.’’ We know from var- estly about the reality that boys in Wilson. This report, which Senator ious press reports that the boys in many parts of the country for a long COATS and I were privileged to play a Springfield, OR; Pearl, MS, and role in shaping, is particularly signifi- Edinboro, PA, listened regularly to the time have had easy access to guns, that nihilistic, hateful lyrics of shock-rock- some have always been spurned by cant because it reassets the central er Marilyn Manson. We know from the girls, and some have always had emo- premises of the Declaration’s claim of testimony of a teacher from Westside tional problems, some have had reason interdependence, that there are moral Middle School in Jonesboro, AR, that to be angry with teachers or fellow stu- truths that we as a people must uphold the older of the two shooters there was dents. Yet, to my knowledge, we have for our experiment in self-rule to work. a devotee of vicious gangsta rap music, never before in our history seen a simi- This emerging consensus was also and that a favorite song of his by the lar series of cases where some of these evident at the National Fatherhood group Bone-Thugs-n-Harmony plays young men—boys really—work out Summit that was held here in Wash- out an open-field massacre of revenge their problems by grabbing guns and ington last month. This convocation quite similar to the plan the 13-year- massacring their teachers and class- was called to highlight the crisis of fa- old and the 11-year-old accomplice exe- mates. So I think we have to ask, ther absence we are experiencing in cuted in March. And we know in some Where do they get such an idea? Maybe this country, in which the number of detail of the fascination a 14-year-old it is from the contemporary culture. children living without a father of any in Moses Lake, WA, who mowed down Before this lunacy goes any further, kind that has quadrupled over the last three students in his algebra class 2 we must ask the entertainment indus- two generations, and to mobilize a re- years ago, had with Oliver Stone’s try, which, notwithstanding my criti- sponse. The day-long affair was thor- ghoulish movie, ‘‘Natural Born Kill- cisms, really has done so much good by oughly bipartisan, with the leaders of ers,’’ because two friends of his told au- enlightening our minds and touching both houses of Congress serving as hon- thorities that the boy had confided to our hearts, but also confront the harm orary co-hosts and Vice President GORE them that it would be ‘‘pretty cool’’ it can do, the effect the entertainment delivering the key-note address, and it and ‘‘fun’’ to go on a killing spree like industry can have of pushing some produced unanimity about the critical the movie’s lead characters. troubled children, particularly, over importance of fathers in the raising of To truly understand this connection, the edge, that they hear our pleas to children and the need to strengthen the though, we need to know more. I am stop raining down so much death and two-parent family. the first to say that, though I am crit- messages of death on our children. For the left and the right to reach ical of the entertainment media. Sen- Thankfully, we are beginning to hear agreement on this front represents re- ator BROWNBACK and I took one step in cause for hope from the corridors of markable prograss. A few years ago it that direction earlier this week when American cultural power, as more and was not just politically incorrect but we convened a discussion forum on more media executives have been will- politically dangerous to talk about the Tuesday with several leading experts, ing to break the silence associated primacy of the two-parent family, as including writers, social scientists, a with the values vacuum. Both ABC Dan Quayle learned, and to emphasize district attorney, and a clergyman to President Bob Iger and former NBC the critical role fathers play in the explore in greater detail the roots of Chairman Grant Tinker have given lives of their children. To do so was this deeply disturbing trend of student speeches at major television conven- considered a knock against single violence. The discussion we had pro- tions this year decrying the mothers and perhaps all women. But duced a remarkably strong consensus Springerization of the airwaves as ‘‘an the Fatherhood Summit and the Call that, in fact, the culture is a major embarrassment to our business,’’ in to Civil Society suggest that we have contributing factor, and the dissolu- Iger’s words, and challenged broad- turned an important corner in the poli- tion of the family is clearly another casters to ‘‘stand for something,’’ in tics of the family, and reflect a com- factor. But culture, everyone tells us, Tinker’s words. mon understanding that to iterate the is a contributing factor. That is why I And Disney Chairman Michael Eisner value of involved fathers is not to deni- am considering legislation that would made a forceful statement to the grate the value of single mothers who ask the Justice Department to conduct American Society of Newspaper Edi- are often some of the greatest heroes in a far-reaching study to examine the re- tors this spring in which he candidly our society today. lationship between media violence and criticized those in the industry who Perhaps the most telling indicator of juvenile crime. It is an issue that has ‘‘hide behind the skirts of the Constitu- how far we have come is the recent already been deeply politicized and, in tion’’ to justify marketing of ‘‘vile pro- statement that Murphy Brown herself some respects, oversimplified, and be- grams’’ like Springer. These are per- made about the subject. Candice Ber- fore it gets any more so, we need to see missible under the First Amendment,’’ gen, the actress who played the sharp- what the science can objectively tell he said, ‘‘but they are not desirable if tongued television character, recently us. we aspire to call ourselves civilized.’’ declared that Dan Quayle ‘‘was right’’

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00019 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7934 CONGRESSIONAL RECORD — SENATE July 10, 1998 to talk about the troubling gay men and lesbians. It is unfair, this country, the American people have marginalization of fathers in his infa- when you think about Professor a right to know that we hear their mous speech in 1992—although she still Wolfe’s research, then, for anyone to anxieties about the Nation’s moral fu- holds firm that the former Vice Presi- automatically conclude that people ture, that we are striving to reflect dent was wrong in his specific criticism who express moral reservations or even their core values in our work and in of Murphy Brown’s choice to have a disdain about homosexuality are big- our lives. But more than that, we have child on her own. ‘‘It was a completely ots, or to publicly attack them as hate- to recognize that so much of what we logical speech,’’ Bergen said in a news- ful. These are sincerely held morally aspire to in this body, by passing legis- paper interview. ‘‘Fathers are not based views. lation to serve the public interest and indispensible. They are vital to a fam- Yet the suspicions and concerns of make this a better country, will ulti- ily.’’ the gay community are understandable mately be for naught if we do not fill Which raises an obvious question: If when one considers the Senate’s treat- the values vacuum in American life Dan Quayle and Murphy Brown can ment of James Hormel’s nomination as and rediscover, reclaim the high find common moral ground now, why Ambassador to Luxembourg, which is ground, the common moral ground. then do we continue to hear the steady now being blocked by multiple holds by For those reasons, I hope, in the beat of the culture war drums echoing Members of this Chamber. If we truly months ahead, to return to the Senate throughout the political arena? believe in the claim of equality and the floor, this historic Chamber that truly No one can deny here, nor do I think universal principle of fairness of the serves as the American people’s forum, Declaration of Independence, and if we there is any question that these dif- to speak with my colleagues from want to talk more broadly about val- ferences do reflect the broader philo- across this great country about dif- ues with true credibility in this Cham- sophical schism dividing parts of our ferent aspects of the values crisis that ber, I think we owe Mr. Hormel a society, a moral fault line that gen- I have discussed today and to try to chance to be evaluated by the same erally separates—and here is how I offer some specific ideas about how, to- would describe that fault line—it gen- standards we have applied to other nominees. We owe him a chance to be gether, we can better secure, ‘‘the Safe- erally separates the champions of tol- ty and Happiness’’ that our Declara- erance like Jane Fonda from the de- judged by his career and competence, not by his sexual orientation. We owe tion of Independence promises us all. fenders of traditional values like him a vote on this floor. I thank the Chair and my colleagues James Dobson. If we truly hope to repair the moral for their patience. I yield the floor. But I suspect the values vacuum that breach that separates us and prevents The PRESIDING OFFICER. The overrides all has been represented to us from confronting what most Ameri- Chair recognizes the Senator from Min- both exaggerate and exacerbate these cans agree is a crisis of values, I think nesota. divisions, making the extent of our we have to start by recognizing that Mr. GRAMS. Mr. President, I ask moral disagreements appear far greater the tone of the debate matters as much unanimous consent to be allowed to than Professor Alan Wolfe’s research, as the substance. We need to declare a speak for up to 10 minutes. and several other supporting polls, ac- cease-fire in the culture wars, to lay The PRESIDING OFFICER. The Sen- tually show them to be. It seems that down our rhetorical arms, step back ator has that right. the less we express our morality pub- and look at the person across the PTA Mr. GRAMS. I thank the Chair. licly, the more trouble we have finding meeting room or the abortion clinic or (The remarks of Mr. GRAMS per- a common vocabulary of values, which the affirmative action rally not as the taining to the introduction of S. 2291 makes it even more difficult for us to enemy, but as a fellow American, de- are located in today’s RECORD under discuss civilly and constructively those serving of the same respect and cour- ‘‘Statements on Introduced Bills and issues that divide us, or to identify tesy we all expect for ourselves, who Joint Resolutions.’’) those principles that unite us. This happens to have a different, deeply held Mr. GRAMS. Mr. President, I yield communications breakdown deepens point of view. We need to build on the the floor, and I suggest the absence of the contempt and suspicion that each common moral ground staked out by a quorum. side already feels for the other. the call to civil society and begin to re- The PRESIDING OFFICER. The The news media, I am afraid to say, assert in public life those fundamental clerk will call the roll. which itself has been infected by that values that, despite the collateral dam- The assistant legislative clerk pro- anything-goes mentality—not always, age of the culture warring, continue to ceeded to call the roll. but often infected by the anything-goes connect our incredibly diverse popu- Mr. GRAMS. Mr. President, I ask mentality pervading the entertainment lace. unanimous consent that the order for culture—seems too often to fan the I think the largest responsibility, the the quorum call be rescinded. flames of controversy. The result is not first responsibility, falls on those of us The PRESIDING OFFICER (Mr. so much an honest, engaged debate who are concerned about the weak- HAGEL). Without objection, it is so or- about values, but a culture war echo ening of our common values and the dered. chamber that only heightens the aver- ramifications for our society. We have f age citizen’s distorted sense that the to acknowledge that many of our fel- country is locked in a mortal moral OMNIBUS PATENT REFORM ACT low citizens not only feel uncomfort- OF 1997 struggle. able talking publicly about matters of The conflict over homosexuality’s morality, they are also skeptical of Mr. LEAHY. Mr. President, I hope place, the place of homosexuals in our those who do. Indeed, one of the great that the Senate will celebrate Amer- society, I think, offers a contemporary ironies of our time is that many Amer- ica’s independence by focusing its en- example of this tension that is very icans have come to regard morality as ergy on issues that create American real in our lives and in our discussions a code word for intolerance. So our jobs, protect American ingenuity, and and debates. Let’s start with the re- challenge today is to persuade the improve the lives of the American peo- ality that many Americans continue to skeptics that it is crucial for the future ple. believe that homosexuality is immoral of our country to rediscover those com- One such issue that I would like to and not just because the Bible tells mon core principles that made our de- talk about today is as American as them so. In fact, Professor Wolfe’s re- mocracy possible in the first place— fireworks on the 4th of July. This is search showed that this is one of the those common core principles that our nation’s patent system. Patents few areas where Americans of all reli- were described, declared in the Dec- are the life’s blood of America’s indus- gious inclinations feel so strongly that laration of Independence—and to renew try and economic strength. they are willing to risk the tag of in- their strength. We in Congress have the America’s patent system was estab- tolerance to express or hold to their opportunity and the responsibility to lished in the Constitution itself. It is points of view, although most of the support the search for common moral no coincidence that some of those who people he interviewed tempered their ground. framed our government were inventors. disapproval by making clear that they From those of us who have been priv- Both Benjamin Franklin and Thomas did not support discrimination against ileged and honored to be elected to lead Jefferson were avid inventors. Indeed,

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00020 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7935 Jefferson invented a cryptographic sys- patent system. They are asking us to CHAMBER OF COMMERCE OF THE tem that was used by the United States help cut the red tape at the PTO, pro- UNITED STATES OF AMERICA, during World War II. vide our inventors with stronger patent Washington, DC, October 24, 1997. The Founders included in our endur- applications, reduce the cost of resolv- Hon. TRENT LOTT, Majority Leader, U.S. Senate, ing Constitution as an enumerated ing patent disputes, and put an end to Washington, DC. power of the Congress, the power ‘‘To rules that favor foreign applicants over DEAR TRENT: As you know, this time of promote the progress of science and American applicants. What they have year brings a flurry of bills to the fore, each useful arts, by securing for limited been asking us to do is to pass the Om- with its own strengths and argument why it times to authors and inventors the ex- nibus Patent Reform Act of 1997, S. 507. deserves floor time prior to adjournment. clusive right to their respective Who wants this bill? American One bill that clearly merits your consider- innovators and businesses large and ation for debate is S. 507, the Omnibus Pat- writings and discoveries.’’ (United ent Act of 1997. States Constitution, Article I, Section small. In the chamber’s view, the Hatch/Leahy 8.) This Constitutional provision was The White House Conference on bill has successfully bridged the debate be- carefully drafted to reflect a recogni- Small Business Technology Chairs tween proponents of modernizing the patent tion by the Founders that our patent wrote to me on May 7, 1998 urging pas- system (the Chamber has long supported system would have to evolve in order sage of S. 507 because, and I am quoting this) and a relatively small group of inde- from their letter: pendent inventors who feared their patent to serve its intended purposes. rights might be abridged. The resulting com- We believe that S. 507, as amended, will Congress, from its early days, imple- promise will help strengthen our competi- lower the litigation costs for small busi- mented this constitutional prerogative. tiveness and create jobs while encouraging nesses, make it easier to know what areas of The First Congress, in its second ses- the inventiveness that always has been an sion, passed an ‘‘Act to Promote the technology are open for innovation, and will American hallmark. We urge your support go a long way towards giving us a more level for this important legislation. Progress of Useful Arts.’’ President playing field vis-a-vis our foreign competi- Washington signed that law on April The House has already passed their cor- tors. We wholeheartedly support passage of responding bill. S. 507 was reported from the 10, 1790, and the United States Patent the bill and appreciate the attention and Judiciary Committee earlier this year by a Office was thereby created. support you have given to small business. bipartisan vote of 17 to 1. We believe the Since that time, Congress has up- The Chief Executives of 48 of Amer- time is right now to move these needed re- dated the patent laws of this country ica’s largest companies wrote the Sen- forms, adding another solid accomplishment to make sure that the fuel of American ate Majority Leader, asking him to to this session. genius was well stoked. Indeed, on an schedule a vote on the bill before the Thank you again for your support. Independence Day more than 150 years Sincerely, Senate adjourns in the fall because ‘‘S. R. BRUCE JOSTEN. ago, on July 4, 1836, Congress reorga- 507 makes several major improvements nized the patent system, created the in U.S. patent law that will greatly PHARMACEUTICAL RESEARCH AND office of ‘‘Commissioner of Patents’’ benefit American companies and inven- MANUFACTURERS OF AMERICA, and reinstated the requirement that tors.’’ Washington, DC, June 2, 1998. patent applications be examined. The So what has been stopping this bill? Hon. TRENT LOTT, Act provided that if the Commissioner Well, one of the most outspoken oppo- Majority Leader, U.S. Senate, deemed an invention ‘‘to be suffi- nents of the bill has been the Eagle U.S. Capitol, Washington, DC. DEAR SENATOR LOTT: On behalf of the re- ciently useful and important, it shall Forum. The Senate Republican leader- search-based pharmaceutical industry, we be his duty to issue a patent therefor.’’ ship should not clip the wings of tech- urge you to schedule a vote on S. 507, The Abraham Lincoln, the only President nology for the benefit of the Eagle Omnibus Patent Act of 1997. This bill, which to be issued a patent, declared that Forum. That would be no way to honor passed out of the Senate Judiciary Com- ‘‘patents add the fuel of interest to the America’s independence and no way to mittee on May 22, 1997 by voice-vote, will fire of genius.’’ The patent system has honor America’s proud tradition of in- strengthen U.S. patent law, advance innova- continued to evolve over the last cen- novation. tion, and increase our global competitive- ness. tury and one-half as we have adapted Instead, let us celebrate America’s We appreciate your interest in moving leg- to changing times and advances in independence by helping out the mil- islation that will not result in undue delay technology. All the while American lions of Americans who owe their jobs in the Senate. We question, however, wheth- innovators have remained at the fore- and prosperity to industries created by er opposition can ultimately be sustained on front of useful invention. America’s innovators and creators. The the Senate floor against S. 507 given its im- I, for one, would like to keep Amer- Senate should take up and pass S.507. portance to American industry and innova- ican innovators in the lead. Our jobs I inserted into the CONGRESSIONAL tion. Of particular interest to the pharma- ceutical industry are provisions that would: and our economic security depend on RECORD on June 23, letters of support Strengthen the Patent and Trademark Office it. As we enter a new millennium, how- from the White House Conference on (PTO) by making it a government corpora- ever, fewer and fewer of America’s Small Businesses, the National Asso- tion ‘‘with resulting operational and fiscal innovators feel confident that our pat- ciation of Women Business Owners, the flexibility;’’ restore patent life lost as a re- ent system is keeping pace. Small Business Technology Coalition, sult of unusual administrative delays at According to the Commissioner of National Small Business United, the PTO; and provide for publication of patent the Patent and Trademark Office National Venture Capital Association, applications 18 months after their filing to (PTO), in the last fiscal year, the PTO and the 21 Century Patent Coalition. allow U.S. companies to have access to appli- received 237,045 patent applications—a cations filed in the U.S. by foreign appli- I ask that additional letters of sup- cants. 14.9 percent increase over the previous port for S. 507 be included in the Our industry, which in 1998 will spend over year. Inventors are rightly demanding RECORD following the conclusion of my $20 billion in research and development, de- that the PTO conduct quicker and statement. These letters are from The pends on strong patent protection to ensure more careful searches. After all, in to- Chamber of Commerce of the United that pharmaceutical companies are able to day’s digital world, an innovator can- States of America; the Pharmaceutical maximize their efforts to discover new medi- not afford to wait two years for his or Research and Manufacturers of Amer- cines that prevent, cure, and treat disease. S. 507 will foster that and deserves floor consid- her patent application to be processed. ica, PhRMA; the American Automobile eration soon. And once that application has been Manufacturers Association; the Soft- Thank you for you attention to this impor- processed, an applicant wants to know ware Publishers Association; the Semi- tant legislation. that the patent will hold up and that conductor Industry Association; the Sincerely, the patent holder will not be caught up Business Software Alliance; the Amer- Raymond Gilmartin, Chairman President in litigation for years attempting to ican Electronics Association; and the and CEO, Merck & Co., Inc., PhRMA defend it. Institute of Electrical and Electronics Chairman; David R. Ebsworth, Ph.D., It is for this reason that American Executive Vice President and Presi- Engineers, Inc. and Industry Corpora- dent, Pharmaceutical Division, Bayer inventors of all shapes and sizes, large tion. Corp.; Robert A. Ingram, Chairman, and small, independent inventors and There being no objection, the letters CEO and President, Glaxo Wellcome large corporations, have been pleading were ordered to be printed in the Inc.; Arthur D. Levinson, Ph.D., Presi- with Congress to improve our current RECORD, as follows: dent and CEO, Genentech, Inc.; William

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00021 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7936 CONGRESSIONAL RECORD — SENATE July 10, 1998 C. Steere, Jr., Chairman and CEO, As the collective voice of one of the fastest ership on the Omnibus Patent Act of 1997, S. Pfizer Inc.; Wayne P. Yetter, President growing, most competitive industries in the 507. This legislation will make many signifi- and CEO, Novartis Pharmaceuticals; world, SPA supports S. 507 because it would cant improvements to the U.S. patent sys- Gordon M. Binder, Chairman and CEO, enact patent reforms that would encourage tem that will greatly benefit the U.S. soft- Amgen; Charles A. Heimbold, Jr., investment and innovation in the software ware industry and other users of the U.S. Chairman and CEO, Bristol Myers industry and other industries that will cre- Patent Office. Squibb Co.; Jan Leschly, Chief Execu- ate more high-paying jobs in America. This We appreciate your efforts on this impor- tive, SmithKline Beecham; Richard J. legislation would make significant improve- tant issue and look forward to working with ments in U.S. patent law, including early Markham, CEO, Hoechst Marion you to seek its enactment before the end of publication of pending patents, expanded re- Roussel Inc.; Sidney Taurel, President the session. Again, thank you for your hard examination, and a provisional right to a and CEO, Eli Lilly and Co. work on behalf of our nation’s high tech- reasonable royalty. nology industries. AMERICAN AUTOMOBILE Leading members of SPA long ago came Sincerely, MANUFACTURERS ASSOCIATION, out in favor of S. 507, and Eric Ruff, CEO of ROBERT W. HOLLEYMAN, II, November 7, 1997. Utah-based PowerQuest Corp., testified in President & CEO. Hon. PATRICK J. LEAHY, support of the bill before the Senate Judici- U.S. Senate, ary Committee (his statement is enclosed). Washington, DC. In May 1997, the Judiciary Committee favor- AMERICAN ELECTRONICS ASSOCIATION, DEAR SENATOR LEAHY: The American Auto- ably reported S. 507 by a vote of 17 to one. S. Santa Clara, CA, June 1, 1998. 507 continues to enjoy strong bipartisan sup- mobile Manufacturers Association and its DEAR SENATOR: I am writing on behalf of members, Chrysler Corporation, Ford Motor port. In closing, I urge you to support S. 507 the more than 3,000 member companies of Company and General Motors Corporation, the American Electronics Association (AEA) urge you to support S. 507, the ‘‘Omnibus without amendments that would undermine to urge you to support S. 507, the ‘‘Omnibus Patent Act of 1997,’’ co-sponsored by Sen- its objective—a patent system that produces Patent Act,’’ and respectfully request that ators Hatch and Leahy. The House passed high quality, carefully and examined pat- you contact the Senate Leadership and urge patent reform earlier this year, and the Sen- ents. The House has already passed a similar them to schedule debate and a floor vote on ate Judiciary Committee favorably reported bill, but time is running out for the Senate S. 507 in the near future. S. 507 by a vote of 17 to 1. The bill has been to ensure that these important patent re- modified in numerous ways to accommodate forms become law this year. The AEA’s member companies span the the concerns of small inventors, universities, Sincerely yours, spectrum of electronics and information and other interested groups. KEN WASCH, technology companies, from semiconductors We believe S. 507 is a fair and balanced bill President. and software to mainframe computers and that will significantly improve the U.S. pat- communications systems. For over 50 years, ent system. Modernization of the Patent and SEMICONDUCTOR INDUSTRY AEA has helped its members compete suc- Trademark Office will permit it to offer im- ASSOCIATION, cessfully in the global marketplace and has proved services to patent applicants and San Jose, CA, July 24, 1997. been the accepted voice of the American owners. The publication provisions will help Hon. DIANNE FEINSTEIN, electronics and information technology in- avoid duplicative research efforts and will U.S. Senate, dustry. accelerate the development of technology by Hart Senate Office Building, According to AEA’s Cyberstates Update re- speeding the dissemination of research ad- Washington, DC. port, the high-tech industry added some vances. Those who file only in the U.S. can Re Omnibus Patent Act of 1997. 200,000 new jobs in the U.S. between 1996 and avoid early publication if they desire, and DEAR SENATOR: The Semiconductor Indus- 1997, for a total of nearly 4.5 million U.S. new provisional royalty rights will ensure try Association urges you to support S. 507, high-tech workers earning salaries 73 percent that no inventor is deprived of the economic the ‘‘Omnibus Patent Act of 1997’’, by Sen- higher than the average private sector wage. value of his or her invention between the ators ORRIN HATCH, and PATRICK LEAHY. AEA believes that modernizing the U.S. pat- date of publication and patent approval. The The U.S. semiconductor industry employs ent system is critical to sustain the innova- bill also provides a safe harbor for domestic over 235,000 Americans, including in Cali- tion that has resulted in this tremendous job users of new manufacturing processes fornia. Semiconductors are the enabling growth and the global competitiveness of through the provision of prior user-rights. technology for the nearly $400 billion U.S. U.S. high technology companies. And, an improve patent reexamination proc- electronics industry, an industry that pro- ess will provide a low-cost, speedy alter- vides jobs for 2.5 million Americans. S. 507, which was introduced by Senators native to expensive litigation for deter- The U.S. semiconductor industry invests ORRIN HATCH (R–UT) and PATRICK LEAHY (D– mining the validity of any challenged pat- over 11% of sales on R&D, $7 billion in 1996 VT), contains critical reforms that will pro- ent. and leads the world in microchip technology. tect the interests of American inventors and The provisions of S. 507 will substantially A strong and efficient U.S. patent system is innovators while preparing the U.S. Patent improve our nation’s patent system. This essential for the U.S. to maintain this tech- and Trademark Office (PTO) to meet the will serve the interests of inventors and nology leadership. S. 507 will create a Patent needs of our nation’s high technology firms technology users alike. More importantly, it and Trademark Office that is more efficient as we enter the 21st Century. The reforms will benefit the entire American public by and responsive to the needs of U.S. investors, contained in S. 507 will increase the value of further encouraging technological advances mandate the speedy issuance for patents, and patents to inventors and companies, slash and the products such advances bring. We reduce lawsuits and legal bills paid by Amer- red tape in the PTO, and make it easier for urge you to vote for S. 507. ican inventors and companies. American U.S. inventors and companies to research, Sincerely, companies will become more competitive by develop, and commercialize inventions. ANDREW H. CARD, Jr., speeding up research and development and AEA urges you to support this critical leg- President and CEO. brining new products to market faster. S. 507 is a carefully crafted measure that islation to further advance American tech- nology and strengthen our nation’s global SOFTWARE PUBLISHERS ASSOCIATION, will encourage new inventions and protect Washington, DC, June 11, 1998. American innovators and corporations while competitiveness. If you or your staff have any questions regarding S. 507 or patent re- Hon. PATRICK LEAHY, at the same time addressing the special con- form, please contact Stephanie Stitzer of U.S. Senate, Russell Senate Office Building, cerns of small inventors, small business and AEA at (202) 682–4431. Washington, DC. universities. S. 507 cleared the Senate Judici- DEAR SENATOR LEAHY: On behalf of the ary Committee in May and a similar meas- Sincerely, Software Publishers Association (SPA), I am ure, H.R. 400, already passed the House. WILLIAM T. ARCHEY, writing to ask you to urge Senate Majority Please vote for S 507 when it comes to the President and CEO. Leader Trent Lott to schedule a floor vote Senate floor. If you or your staff would like to discuss this legislation and its importance on S. 507, the Omnibus Patent Act, early this INSTITUTE OF ELECTRICAL AND to the semiconductor industry, please do not summer, and call on you to vote to enact its ELECTRONICS ENGINEERS, hesitate to call. important patent reforms into law. October 9, 1997. SPA has more than 1,200 member compa- Sincerely, Hon. TRENT LOTT, nies, ranging from large well-known compa- GEORGE SCALISE, Senate Majority Leader, Russell Senate Office nies to hundreds of smaller companies and President. Internet start-ups, that develop and market Building, Washington, DC. software for business, education, entertain- BUSINESS SOFTWARE ALLIANCE, DEAR SENATOR LOTT: On behalf of the In- ment and the Internet. Patents represent an Washington, DC, June 29, 1998. stitute of Electrical and Electronics Engi- increasingly important means for these com- Hon. PATRICK LEAHY, neers United States Activities Board (IEEE– panies to protect the intellectual property in U.S. Senate, Russell Senate Office Building, USA) and its 220,000 electrical, electronics their software-related inventions. In fact, a Washington, DC. and computer engineers who are U.S. mem- 1997 survey of over 800 software companies DEAR SENATOR LEAHY: On behalf of the bers of IEEE, we urge you to place the Omni- found that over 20 percent either owned or members of the Business Software Alliance bus Patent Act of 1997 (S. 507) on the legisla- had applied for a patent. (‘‘BSA’’), I want to thank you for your lead- tive calendar during this session of Congress.

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00022 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7937 The Omnibus Patent Act and its various and working with Senator KENNEDY as of the distinguished Senator from provisions have already had extensive anal- the leading Democrat on our side. Vermont and the Senator from Massa- ysis, numerous public hearings and full con- What we witnessed today is a won- chusetts. sideration of a wide range of perspectives. derful example of how the legislative Mr. President, I yield the floor. We believe that it is now time to call for a vote on this important legislation before the process ought to work. It is hard to f imagine taking on a piece of legisla- end of the first session of this Congress. MESSAGES FROM THE PRESIDENT IEEE–USA supports the Omnibus Patent tion that has a 5-year lifespan to it, a Act of 1997 (S. 507) and its publication provi- higher education bill that affects so Messages from the President of the sions. Many important compromises have many millions of Americans. We did United States were communicated to been made and we are now confident that the this in one day in large measure be- the Senate by Mr. Williams, one of his bill will strengthen the U.S. patent system. cause the committee worked very secretaries. S. 507 takes into account many of our mem- closely together, Mr. President. A lot EXECUTIVE MESSAGES REFERRED bers’ concerns regarding the disclosure of As in executive session the Presiding their technology prior to receiving patent of work went into trying to resolve protection. The Omnibus Patent Act pro- issues as a committee. There were a Officer laid before the Senate messages vides inventors with the option of delaying couple we couldn’t, so we left those to from the President of the United the publication of their application until the our colleagues, which is the way it States submitting one withdrawal and patent is awarded—as long as they choose to should be here when you can’t come to sundry nominations which were re- file solely in the United States. a final resolution. ferred to the appropriate committees. The bill provides our 220,000 U.S. members That shows remarkable leadership on (The nominations received today are with a strengthened patent system and ar- the part of the chairman and the rank- printed at the end of the Senate pro- rives as a reasonable balance between inven- ing Democrat, that they can take a bill ceedings.) tor protection and public disclosure of tech- nology. We believe that his balance will as- as complicated and as comprehensive f as this, one as long in duration as this sist in promoting U.S. innovation and com- EXECUTIVE AND OTHER and bring it to the floor and, in the petitiveness, COMMUNICATIONS If you or your staff would like to discuss space of virtually 12 hours, provide the this with us further please contact Scott kind of unanimous—it may have been The following communications were Grayson in our Washington, D.C. office at unanimous, I don’t know what the vote laid before the Senate, together with (202) 785–0017. was here—almost unanimous vote in accompanying papers, reports, and doc- Sincerely, support of the Higher Education Act uments, which were referred as indi- DANIEL FISHER, cated: Chair, IEEE–USA for our Nation. EC–5934. A communication from the Assist- Intellectual Property Committee. I want others to know that this is a good example of how we ought to work ant Secretary for Legislative Affairs, De- f here. I hope others will heed this exam- partment of State, transmitting, pursuant to ple. law, the report of a payment to Rewards Pro- THE VERY BAD DEBT BOXSCORE gram Participant 96–22 under the State De- For DAN COATS, who is not on the Mr. HELMS. Mr. President, at the partment Basic Authorities Act; to the Com- floor this evening, our colleague from close of business yesterday, Thursday, mittee on Foreign Relations. Indiana, this will be the last higher July 9, 1998, the federal debt stood at EC–5935. A communication from the Gen- education bill he will be involved in, as eral Counsel of the Department of Transpor- $5,526,093,018,467.09 (Five trillion, five he made the decision to leave the U.S. tation, transmitting, pursuant to law, the re- hundred twenty-six billion, ninety- Senate at the end of his term. Cer- port of a rule regarding airworthiness direc- three million, eighteen thousand, four tainly, there will be other bills between tives on certain Rolls-Royce Limited tur- hundred sixty-seven dollars and nine bojet engines (Docket 98–ANE–15–AD) re- now and when the session ends. I am cents). ceived on July 8, 1998; to the Committee on certain Senator COATS feels a sense of One year ago, July 9, 1997, the federal Commerce, Science, and Transportation. pride, as he should, having played a debt stood at $5,359,038,000,000 (Five EC–5936. A communication from the Gen- major role in the last higher education eral Counsel of the Department of Transpor- trillion, three hundred fifty-nine bil- bill he will be involved in in the U.S. tation, transmitting, pursuant to law, the re- lion, thirty-eight million). Senate. I commend him for his efforts. port of a rule entitled ‘‘Airworthiness Direc- Five years ago, July 9, 1993, the fed- Let me join in commending staff: tives; Airbus Model A300, A300–600, and A310 eral debt stood at $4,336,575,000,000 Mark Powden for his fine work, Susan Series Airplanes’’ (Docket 97–NM–257–AD) re- (Four trillion, three hundred thirty-six Hattan, Scott Giles, Jenny Smulson, ceived on July 8, 1998; to the Committee on billion, five hundred seventy-five mil- Commerce, Science, and Transportation. Corey Heyman. EC–5937. A communication from the Gen- lion). Senator KENNEDY’s staff: Marianna Twenty-five years ago, July 9, 1973, eral Counsel of the Department of Transpor- Pierce did a wonderful job on the tation, transmitting, pursuant to law, the re- the federal debt stood at $454,517,000,000 Democratic side working on this and port of a rule entitled ‘‘Airworthiness Direc- (Four hundred fifty-four billion, five keeping us well informed and trying to tives; Fokker Model F.28 Mark 0100 Series hundred seventeen million) which re- work out amendments during the com- Airplanes’’ (Docket 97–NM–329–AD) received flects a debt increase of more than $5 mittee process and on the floor. on July 8, 1998; to the Committee on Com- trillion—$5,071,576,018,467.09 (Five tril- Jennifer Kron and Jane Oates did a merce, Science, and Transportation. lion, seventy-one billion, five hundred EC–5938. A communication from the Gen- wonderful job, as did Townsend Lange eral Counsel of the Department of Transpor- seventy-six million, eighteen thousand, from Senator COATS’ staff. And you four hundred sixty-seven dollars and tation, transmitting, pursuant to law, the re- will all understand why I pay a special port of a rule entitled ‘‘Airworthiness Direc- nine cents) during the past 25 years. tribute to Suzanne Day of my office tives; Saab Model SAAB 2000 Series Air- f who does a fabulous job on these issues, planes’’ (Docket 97–NM–145–AD) received on and has for many, many years. She was July 8, 1998; to the Committee on Commerce, HIGHER EDUCATION ACT joined this year by a new member of Science, and Transportation. AMENDMENTS OF 1998 our staff who did a terrific job, Megan EC–5939. A communication from the Gen- eral Counsel of the Department of Transpor- (In the RECORD of July 9, 1998, on Murray, who is here with us on the tation, transmitting, pursuant to law, the re- page S7873, a portion of the text of Mr. floor this evening. I want to thank her, port of a rule entitled ‘‘Airworthiness Direc- DODD’S remarks was inadvertently as well, for the tremendous effort she tives; McDonnell Douglas Model DC–9 and omitted. The permanent RECORD will put into making this a successful bill. DC–9–80 Series Airplanes, Model MD–88 Air- be corrected to reflect the following:) So, Mr. President, I commend our planes, and C–9 (Military) Series Airplanes’’ Mr. DODD. Mr. President, very brief- colleagues, and staff particularly, for (Docket 96–NM–203–AD) received on July 8, ly, I see my colleague from Ohio here, really doing a very, very fine job. And 1998; to the Committee on Commerce, I want to add my voice to those who in these days of acrimony and partisan- Science, and Transportation. EC–5940. A communication from the Gen- have spoken in praise of Senator JEF- ship and invective behavior, it is won- eral Counsel of the Department of Transpor- FORDS, the chairman of the committee, derful to know there are examples of tation, transmitting, pursuant to law, the re- his staff, and the wonderful job they where this institution shines and shows port of a rule entitled ‘‘Airworthiness Direc- did in leading this piece of legislation its best. It did so under the leadership tives; Saab Model SAAB SF340A, SAAB 340B,

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00023 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7938 CONGRESSIONAL RECORD — SENATE July 10, 1998 and SAAB 2000 Series Airplanes’’ (Docket 96– Airplanes’’ (Docket 98–NM–81–AD) received EC–5962. A communication from the Gen- NM–212–AD) received on July 8, 1998; to the on July 8, 1998; to the Committee on Com- eral Counsel of the Department of Transpor- Committee on Commerce, Science, and merce, Science, and Transportation. tation, transmitting, pursuant to law, the re- Transportation. EC–5952. A communication from the Gen- port of a rule entitled ‘‘Airworthiness Direc- EC–5941. A communication from the Gen- eral Counsel of the Department of Transpor- tives; Bombardier Model CL–600–2B19 (Re- eral Counsel of the Department of Transpor- tation, transmitting, pursuant to law, the re- gional Jet Series 100) Airplanes’’ (Docket 97– tation, transmitting, pursuant to law, the re- port of a rule entitled ‘‘Airworthiness Direc- NM–83–AD) received on July 8, 1998; to the port of a rule entitled ‘‘Airworthiness Direc- tives; Airbus Model A320 Series Airplanes’’ Committee on Commerce, Science, and tives; British Aerospace (Jetstream) Model (Docket 98–NM–250–AD) received on July 8, Transportation. 4101 Airplanes’’ (Docket 98–NM–115–AD) re- 1998; to the Committee on Commerce, EC–5963. A communication from the Gen- ceived on July 8, 1998; to the Committee on Science, and Transportation. eral Counsel of the Department of Transpor- EC–5953. A communication from the Gen- Commerce, Science, and Transportation. tation, transmitting, pursuant to law, the re- eral Counsel of the Department of Transpor- EC–5942. A communication from the Gen- port of a rule entitled ‘‘Airworthiness Direc- tation, transmitting, pursuant to law, the re- eral Counsel of the Department of Transpor- tives; Airbus Model A300–600 Series Air- port of a rule entitled ‘‘Airworthiness Direc- tation, transmitting, pursuant to law, the re- planes’’ (Docket 95–NM–78–AD) received on tives; AERMACCHI S.p.A. Models F.260, port of a rule entitled ‘‘Airworthiness Direc- July 8, 1998; to the Committee on Commerce, F.260B, F.260C, and F.260D Airplanes’’ (Dock- tives; Eurocopter France Model SA 330F, G, Science, and Transportation. et 97–CE–143–AD) received on July 8, 1998; to and J Helicopters’’ (Docket 97–SW–06–AD) re- EC–5964. A communication from the Gen- ceived on July 8, 1998; to the Committee on the Committee on Commerce, Science, and Transportation. eral Counsel of the Department of Transpor- Commerce, Science, and Transportation. tation, transmitting, pursuant to law, the re- EC–5943. A communication from the Gen- EC–5954. A communication from the Gen- port of a rule entitled ‘‘Technical Amend- eral Counsel of the Department of Transpor- eral Counsel of the Department of Transpor- ment to Passenger Train Emergency Pre- tation, transmitting, pursuant to law, the re- tation, transmitting, pursuant to law, the re- paredness Docket; Safety Glazing Standards; port of a rule entitled ‘‘Airworthiness Direc- port of a rule entitled ‘‘Airworthiness Direc- Correction’’ (Docket PTEP–1) received on tives; Eurocopter France Model AS332C, L, tives; Empresa Brasileira de Aeronautica, July 8, 1998; to the Committee on Commerce, and L1 Model SA330F, G, and J Helicopters’’ S.A. (EMBRAER) Model EMB–145 Series Air- Science, and Transportation. (Docket 98–SW–11–AD) received on July 8, planes’’ (Docket 98–NM–65–AD) received on 1998; to the Committee on Commerce, July 8, 1998; to the Committee on Commerce, EC–5965. A communication from the Gen- Science, and Transportation. Science, and Transportation. eral Counsel of the Department of Transpor- EC–5944. A communication from the Gen- EC–5955. A communication from the Gen- tation, transmitting, pursuant to law, the re- eral Counsel of the Department of Transpor- eral Counsel of the Department of Transpor- port of a rule entitled ‘‘Final Theft Data; tation, transmitting, pursuant to law, the re- tation, transmitting, pursuant to law, the re- Motor Vehicle Theft Prevention Standard’’ port of a rule entitled ‘‘Airworthiness Direc- port of a rule entitled ‘‘Airworthiness Direc- (Docket 97–3125) received on July 8, 1998; to tives; Fokker Model F27 Mark 100, 200, 300, tives; Eurocopter France Model AS332C, L, the Committee on Commerce, Science, and 400, 500, 600, and 700 Series Airplanes’’ (Dock- and L1 Helicopters’’ (Docket 97–SW–39–AD) Transportation. et 98–NM–102–AD) received on July 8, 1998; to received on July 8, 1998; to the Committee on EC–5966. A communication from the Ad- the Committee on Commerce, Science, and Commerce, Science, and Transportation. ministrator of the Federal Aviation Admin- EC–5945. A communication from the Gen- Transportation. istration, Department of Transportation, EC–5956. A communication from the Gen- eral Counsel of the Department of Transpor- transmitting, pursuant to law, a report on eral Counsel of the Department of Transpor- tation, transmitting, pursuant to law, the re- the impacts of children flying aircraft; to the tation, transmitting, pursuant to law, the re- Committee on Commerce, Science, and port of a rule entitled ‘‘Airworthiness Direc- port of a rule entitled ‘‘Airworthiness Direc- Transportation. tives; Eurocopter Deutschland GmbH Model tives; Airbus Model A319 and A321–100 Series EC 135 Helicopters’’ (Docket 98–SW–18–AD) Airplanes’’ (Docket 98–NM–75–AD) received EC–5967. A communication from the Chief received on July 8, 1998; to the Committee on on July 8, 1998; to the Committee on Com- of Staff of the Office of the Commissioner of Commerce, Science, and Transportation. merce, Science, and Transportation. Social Security, transmitting, pursuant to EC–5946. A communication from the Gen- EC–5957. A communication from the Gen- law, the report of a rule entitled ‘‘Electronic eral Counsel of the Department of Transpor- eral Counsel of the Department of Transpor- Freedom of Information Amendments of tation, transmitting, pursuant to law, the re- tation, transmitting, pursuant to law, the re- 1996’’ (RIN0960–AE68) received on July 8, 1998; port of a rule entitled ‘‘Airworthiness Direc- port of a rule entitled ‘‘Airworthiness Direc- to the Committee on Finance. tives; Agusta S.p.A. Model A109C and A109K2 tives; Raytheon Aircraft Company Model EC–5968. A communication from the Ad- Helicopters’’ (Docket 97–SW–65–AD) received 1900D Airplanes’’ (Docket 97–CE–86–AD) re- ministrator of the Agricultural Marketing on July 8, 1998; to the Committee on Com- ceived on July 8, 1998; to the Committee on Service, Department of Agriculture, trans- merce, Science, and Transportation. Commerce, Science, and Transportation. mitting, pursuant to law, the report of a rule EC–5947. A communication from the Gen- EC–5958. A communication from the Gen- regarding a grower diversion program under eral Counsel of the Department of Transpor- eral Counsel of the Department of Transpor- the tart cherry marketing order for the 1998– tation, transmitting, pursuant to law, the re- tation, transmitting, pursuant to law, the re- 1999 and following crop years (Docket FV97– port of a rule entitled ‘‘Amendment of Class port of a rule entitled ‘‘Airworthiness Direc- 930–2 FR) received on July 8, 1998; to the E Airspace; Roxboro, NC’’ (Docket 98–ASO–5) tives; Rolls-Royce Limited, Aero Division- Committee on Agriculture, Nutrition, and received on July 8, 1998; to the Committee on Bristol, S.N.E.C.M.A., Olympus 593 Series Forestry. Commerce, Science, and Transportation. Turbojet Engines’’ (Docket 98–ANE–12–AD) EC–5969. A communication from the Ad- EC–5948. A communication from the Gen- received on July 8, 1998; to the Committee on ministrator of the Agricultural Marketing eral Counsel of the Department of Transpor- Commerce, Science, and Transportation. Service, Department of Agriculture, trans- tation, transmitting, pursuant to law, the re- EC–5959. A communication from the Gen- mitting, pursuant to law, the report of a rule port of a rule entitled ‘‘Modification of Class eral Counsel of the Department of Transpor- entitled ‘‘Removal of U.S. Grade Standards E Airspace; Fort Atkinson, WI’’ (Docket 98– tation, transmitting, pursuant to law, the re- and Other Selected Regulations’’ (Docket AGL–23) received on July 8, 1998; to the Com- port of a rule entitled ‘‘Airworthiness Direc- FV–95–303) received on July 8, 1998; to the mittee on Commerce, Science, and Transpor- tives; Fokker Model F.28 Mark 1000, 2000, Committee on Agriculture, Nutrition, and tation. 3000, and 4000 Series Airplanes’’ (Docket 98– Forestry. EC–5949. A communication from the Gen- NM–16–AD) received on July 8, 1998; to the EC–5970. A communication from the Assist- eral Counsel of the Department of Transpor- Committee on Commerce, Science, and ant Secretary for Occupational Safety and tation, transmitting, pursuant to law, the re- Transportation. port of a rule entitled ‘‘Modification of Class EC–5960. A communication from the Gen- Health, Department of Labor, transmitting, E Airspace; Griffith, IN’’ (Docket 98–AGL–22) eral Counsel of the Department of Transpor- pursuant to law, the report of a rule entitled received on July 8, 1998; to the Committee on tation, transmitting, pursuant to law, the re- ‘‘Occupational Exposures to Asbestos’’ Commerce, Science, and Transportation. port of a rule entitled ‘‘Airworthiness Direc- (RIN1218–AB25) received on July 8, 1998; to EC–5950. A communication from the Gen- tives; British Aerospace Model BAC 1–11 200 the Committee on Labor and Human Re- eral Counsel of the Department of Transpor- and 400 Series Airplanes’’ (Docket 98–NM–51– sources. tation, transmitting, pursuant to law, the re- AD) received on July 8, 1998; to the Com- EC–5971. A communication from the Acting port of a rule entitled ‘‘Modification of Class mittee on Commerce, Science, and Transpor- Director of the Executive Office of the Presi- E Airspace; Youngstown Elser Metro Air- tation. dent, Office of Management and Budget, port, OH’’ (Docket 98–AGL–24) received on EC–5961. A communication from the Gen- transmitting, pursuant to law, the report en- July 8, 1998; to the Committee on Commerce, eral Counsel of the Department of Transpor- titled ‘‘Federal Financial Management Sta- Science, and Transportation. tation, transmitting, pursuant to law, the re- tus Report and Five Year Plan’’; to the Com- EC–5951. A communication from the Gen- port of a rule entitled ‘‘Airworthiness Direc- mittee on Governmental Affairs. eral Counsel of the Department of Transpor- tives; Dornier Model 328–100 Series Air- EC–5972. A communication from the Direc- tation, transmitting, pursuant to law, the re- planes’’ (Docket 98–NM–89–AD) received on tor of the Office of Regulatory Management port of a rule entitled ‘‘Airworthiness Direc- July 8, 1998; to the Committee on Commerce, and Information, Environmental Protection tives; Airbus Model A300 and A300–600 Series Science, and Transportation. Agency, transmitting, pursuant to law, the

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00024 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7939 report of two rules regarding the Ohio Main- to evaluate a pesticide tolerance so that the By Mr. ROTH, from the Committee on Fi- tenance Plan and Recycled Used Oil Manage- agency can avoid the use of unrealistic de- nance, unfavorably without amendment: ment Standards (FRL6123–1, FRL6123–3) re- fault assumptions in making pesticide toler- S.J. Res. 47. A joint resolution dis- ceived on July 8, 1998; to the Committee on ance decisions. approving the extension of the waiver au- Environment and Public Works. 3. Direct the EPA to implement the FQPA thority contained in section 402(c) of the EC–5973. A communication from the Dep- in a manner that will not disrupt agricul- Trade Act of 1974 with respect to Vietnam. tural production nor have a negative impact uty Director of the Regulations Policy and f Management Staff, Food and Drug Adminis- on the availability, diversity, and afford- tration, Department of Health and Human ability of food. EXECUTIVE REPORTS OF Services, transmitting, pursuant to law, the 4. Conduct oversight hearings immediately COMMITTEES report of a rule entitled ‘‘Medical Devices; to ensure that actions taken by the EPA are Retention of Three Preamendment Class III consistent with the FQPA provisions and The following executive reports of Devices in Class III’’ (Docket 94N–0418) re- congressional intent. If the intent of the leg- committees were submitted: ceived on July 8, 1998; to the Committee on islation is not carried out, then Congress By Mr. ROTH, from the Committee on Fi- Labor and Human Resources. should postpone the August 1999 deadline. nance: Following oversight hearings, Congress f Raymond W. Kelly, of New York, to be should, if necessary, take appropriate ac- Commissioner of Customs. PETITIONS AND MEMORIALS tions or amend the FQPA to correct problem James E. Johnson, of New Jersey, to be areas. Under Secretary of the Treasury for Enforce- The following petitions and memo- 5. Encourage the Secretary of Agriculture rials were laid before the Senate and ment. and the United States Department of Agri- Elizabeth Bresee, of New York, to be an were referred or ordered to lie on the culture to increase its commitment of man- Assistant Secretary of the Treasury. table as indicated: power and budgetary resources to work with the EPA to gather scientific data. Further- (The above nominations were re- POM–501. A resolution adopted by the City ported with the recommendation that Council of Hialeah, Florida relative to the more, Congress should encourage the United renaming of the Everglades National Park; States Department of Agriculture to conduct they be confirmed, subject to the nomi- to the Committee on Energy and Natural Re- an economic impact statement on the imple- nees’ commitment to respond to re- sources. mentation of the FQPA. quests to appear and testify before any POM–502. A resolution adopted by the Vil- 6. Clarify the role of Section 18 of the Fed- duly constituted committee of the Sen- lage Council of Miami Shores Village, Flor- eral Insecticide, Fungicide, and Rodenticide ate.) ida relative to the renaming of the Ever- Act as its provisions relate to the reestab- f glades National Park; to the Committee on lishment of tolerances under the FQPA.; and Energy and Natural Resources. be it further INTRODUCTION OF BILLS AND Resolved, That copies of this resolution be POM–503. A resolution adopted by the Vil- JOINT RESOLUTIONS lage Council of the Village of Virginia Gar- transmitted to the President of the United dens, Florida relative to the renaming of the States Senate, the Speaker of the United The following bills and joint resolu- Everglades National Park; to the Committee States House of Representatives, the mem- tions were introduced, read the first on Energy and Natural Resources. bers of the Michigan congressional delega- and second time by unanimous con- POM–504. A resolution adopted by the Sen- tion, and the United States Environmental sent, and referred as indicated: ate of the Legislature of the State of New Protection Agency. Adopted by the Senate, March 26, 1998. By Mr. DODD (for himself, Mr. STE- Hampshire relative to trade with Japan; to Adopted by the House of Representatives, VENS, Mr. KENNEDY, Mr. MOYNIHAN, the Committee on Foreign Relations. June 11, 1998. Mr. D’AMATO, Mr. TORRICELLI, Mr. POM–505. A resolution adopted by the Leg- LIEBERMAN, Mr. DASCHLE, Ms. COL- islature of the State of Michigan; to the f LINS, Ms. LANDRIEU, Mr. REID, Mr. Committee on Environment and Public REPORTS OF COMMITTEES DEWINE, Ms. MOSELEY-BRAUN, Ms. Works. The following reports of committees MIKULSKI, Mrs. BOXER, Ms. SNOWE, SENATE CONCURRENT RESOLUTION NO. 72 were submitted: Mrs. MURRAY, Mrs. FEINSTEIN, and Whereas, The Food Quality Protection Act Mr. LAUTENBERG): By Mr. LUGAR, from the Committee on of 1996 (FQPA) as passed by Congress and was S. 2285. A bill to establish a commission, in Agriculture, Nutrition, and Forestry, with- signed into law on August 3, 1996, by Presi- honor of the 150th Anniversary of the Seneca out amendment: Falls Convention, to further protect sites of dent Clinton; and S. 2286. An original bill to amend the Na- Whereas, Among the purposes of the FQPA importance in the historic efforts to secure tional School Lunch Act and the Child Nu- is to assure that pesticide tolerance deci- equal rights for women; to the Committee on trition Act of 1966 to provide children with sions and policies are based upon sound Energy and Natural Resources. increased access to food and nutrition assist- science and reliable data; and By Mr. LUGAR: ance, to simplify program operations and im- Whereas, Another purpose of the FQPA is S. 2286. An original bill to amend the Na- prove program management, to extend cer- to assure tolerance decisions and policies are tional School Lunch Act and the Child Nu- tain authorities contained in those Acts formulated in an open and transparent man- trition Act of 1966 to provide children with through fiscal year 2003, and for other pur- ner; and increased access to food and nutrition assist- poses (Rept. No. 105–243). Whereas, The EPA is required by the FQPA By Mr. MURKOWSKI, from the Committee ance, to simplify program operations and im- to have reviewed approximately 3,000 of the on Energy and Natural Resources, with an prove program management, to extend cer- approximately 9,700 existing tolerances by amendment in the nature of a substitute and tain authorities contained in those Acts August 1999 to determine whether these tol- an amendment to the title: through fiscal year 2003, and for other pur- erances meet the safety standards estab- S. 1695. A bill to establish the Sand Creek poses; from the Committee on Agriculture, lished by the FQPA; and Massacre National Historic Site in the State Nutrition, and Forestry; placed on the cal- Whereas, The implementation of the FQPA of Colorado (Rept. No. 105–244). endar. could have a profound negative impact on By Mr. D’AMATO, from the Committee on By Mr. MURKOWSKI (for himself and domestic agricultural production and on con- Banking, Housing, and Urban Affairs, with Mr. BUMPERS) (by request): sumer food prices and availability. With an amendment: S. 2287. A bill to provide for a more com- Michigan’s diverse agriculture, this impact S. 1283. A bill to award Congressional gold petitive electric power industry, and for could be especially severe on our numerous medals to Jean Brown Trickey, Carlotta other purposes; to the Committee on Energy specialty crops; now, therefore be it Walls LaNier, Melba Patillo Beals, Terrence and Natural Resources. Resolved by the Senate (the House of Rep- Roberts, Gloria Ray Karlmark, Thelma By Mr. WARNER: resentatives concurring), That we memorialize Mothershed Wair, Ernest Green, Elizabeth S. 2288. A bill to provide for the reform and the Congress of the United States to take Eckford, and Jefferson Thomas, commonly continuing legislative oversight of the pro- the following actions: referred collectively as the ‘‘Little Rock duction, procurement, dissemination, and 1. Direct the EPA to initiate immediately Nine’’ on the occasion of the 40th anniver- permanent public access of the Government’s appropriate administrative rulemaking to sary of the integration of the Central High publications, and for other purposes; to the ensure that the policies and standards the School in Little Rock, Arkansas (Rept. No. Committee on Rules and Administration. agency intends to apply in evaluating pes- 105–245). By Mr. BUMPERS: ticide tolerances are subject to thorough By Mr. MCCAIN, from the Committee on S. 2289. A bill to amend the Federal Rules public notice and comment prior to final tol- Commerce, Science, and Transportation, of Criminal Procedure, relating to grand jury erance determinations being made by the with amendments: proceedings, and for other purposes; to the agency. S. 1259. A bill to authorize appropriations Committee on the Judiciary. 2. Direct the EPA to use its authority for fiscal years 1998 and 1999 for the United By Mr. BREAUX: under the FQPA to provide interested per- States Coast Guard, and for other purposes S. 2290. A bill to promote the construction sons the opportunity to produce data needed (Rept. No. 105–246). and operation of cruise ships in the United

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00025 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7940 CONGRESSIONAL RECORD — SENATE July 10, 1998 States; to the Committee on Commerce, ments, (2) right here in the capitol, of this country, or the home of Harriet Science, and Transportation. the 197 statues exhibited in statuary Beecher Stowe, the author of ‘‘Uncle By Mr. GRAMS: hall, only seven are of women leaders, Tom’s Cabin.’’ S. 2291. A bill to amend title 17, United (3) according to a recent study, less Even though my State of Con- States Code, to prevent the misappropriation necticut has been progressive about the of collections of information; to the Com- than 2 percent of even our contem- mittee on the Judiciary. porary history textbooks are dedicated preservation of women’s sites, unfortu- to women’s contributions. nately, some of these efforts were too f And yet, despite the virtual infancy late. Sadly, some historic women’s STATEMENTS ON INTRODUCED of efforts to record women’s history, sites in Connecticut were not preserved BILLS AND JOINT RESOLUTIONS we are doing even less to preserve the and are relegated to a signpost or a plaque rather than a museum. By Mr. DODD (for himself, Mr. places where that history was made. That is why this bill is so important. If Hopefully, 150 years after the birth of STEVENS, Mr. KENNEDY, Mr. we don’t preserve our past, we can lose the women’s movement we can create MOYNIHAN, Mr. D’AMATO, Mr. our way into our future and our oppor- more museums and fewer plaques. TORRICELLI, Mr. LIEBERMAN, tunity to teach not only girls and Let me take a moment to explain Mr. DASCHLE, Ms. COLLINS, Ms. women but all students and citizens. very briefly the structure and goals of LANDRIEU, Mr. REID, Mr. As I stand here today, numerous the commission. The commission will DEWINE, Ms. MOSELEY-BRAUN, buildings and structures of deep histor- have 15 members appointed by the ma- Ms. MIKULSKI, Mrs. BOXER, Ms. ical significance to the American wom- jority and minority leaders of the Sen- SNOWE, Mrs. MURRAY, Mrs. en’s movement are in a state of dis- ate and the House and by the adminis- FEINSTEIN, and Mr. LAUTEN- repair—they have peeling paint, flood- tration. Members will be selected based BERG): ed basements, and structural defi- on a knowledge of women’s history and S. 2285. A bill to establish a commis- historical preservation. Not later than sion, in honor of the 150th Anniversary ciencies. For example, the Sewall-Belmont 1 year after the commission’s initial of the Seneca Falls Convention, to fur- House, just a block from the Capitol, meeting it will provide to the Sec- ther protect sites of importance in the was and still is the headquarters of the retary of the Interior a list of sites de- historic efforts to secure equal rights National Women’s Party, which serving recognition and preservation. for women; to the Committee on En- pressed for woman suffrage. This build- It will also recommend actions to reha- ergy and Natural Resources. ing was also the residency of Alice bilitate those sites. Thirty days after WOMEN’S PROGRESS COMMEMORATION ACT Paul, the legendary founder of this the submission of this report, the com- Mr. DODD. Mr. President, one hun- party. This is a prime example of a mission will cease to exist. The com- dred and fifty years ago this month, a critical site in American women’s his- mission will not fund preservation but remarkable group of women and men tory that is in need of preservation. rather highlight the need, and hope- came together and wrote the single Unfortunately, this house is plagued fully the publicity will generate most important document of the nine- with water problems, deteriorating funds—whether it be private, public, or teenth-century American women’s electrical wiring, and weather-damaged nonprofit—that would be used to help movement and one of the most impor- parts of the structure. in the preservation of these sites. tant writings of American freedom: As we can see, I brought these two I hope that the sites across this Na- The Seneca Falls Declaration of Senti- photographs, Mr. President, to indicate tion that signify important points in ments and Resolutions. Modeled close- the condition of the Sewall Belmont women’s history or celebrate remark- ly after the Declaration of Independ- Home, which I said is about a block able women will be preserved for the ence, this document is a declaration of from the Capitol and a house that public to come and learn. I hope that women’s independence. Radical at the many of my colleagues have visited school children across our Nation will time, it expounded such ideas as allow- over the years. This historic house is be making field trips to historic wom- ing women to vote, to become edu- where some of the treasures of the en’s sites, along with their trips to the cated, and to participate in economic women’s suffrage movement are lo- White House, the Capitol, Monticello, activities. cated and, sadly, as you can see in and the significant memorials here in I believe we should take the occasion these pictures, the house is in des- this city and across our Nation. Let’s make women’s contributions to of the 150th anniversary of the Seneca perate need of restoration. Even our history known to generations yet falls convention to celebrate and focus though, I am happy to report that ef- unborn—their accomplishments an in- on the rich and courageous history of forts have begun by the Senate to save spiration and their homes and work- American women and their struggle for this house, there are many more exam- places opportunities where future gen- equality. With this in mind, I am intro- ples of such sites throughout the coun- ducing the Women’s Progress Com- erations can come and learn. try that are literally crumbling way. In July of 1848 the Seneca Falls Con- memoration Act. Another example of a site in need of vention convened to consider the social I am very happy to be joined in intro- repair is the McClintock House in the conditions and civil rights of women. ducing this legislation by my primary Women’s Rights Historical Park in up- As I have said, this convention signaled cosponsor, Senator TED STEVENS of state New York. This is where the ac- the beginning of an admirable and cou- Alaska, and the bipartisan group of 17 tual Declaration of Sentiments was rageous women’s movement in this Na- other original cosponsors: Senators drafted during the Seneca Falls Con- tion. Today, for the 150th anniversary MOYNIHAN and D’AMATO from New vention. of this historic meeting, let us take the York, Senator KENNEDY, Senator Another site that the commission opportunity to preserve and teach the TORRICELLI, Senator LIEBERMAN, Sen- could choose would be the Rankin contributions of women to our Nation’s ator DASCHLE, Senator COLLINS, Sen- Ranch in Helena, Montana—the home history to future generations of Ameri- ator LANDRIEU, Senator REID, Senator of the first woman elected to the U.S. DEWINE, Senator MOSELEY-BRAUN, Sen- cans. House of Representatives. I ask unanimous consent that the ator MIKULSKI, Senator BOXER, Senator Or perhaps the Harriet Tubman home text of the legislation be printed in the SNOWE, Senator MURRAY, Senator FEIN- in Auburn, New York, which is already RECORD. STEIN, and Senator LAUTENBERG. open to the public but still needs finan- There being no objection, the bill was This legislation will establish a com- cial support. ordered to be printed in the RECORD, as mission to identify sites that have been This commission will highlight sites follows: instrumental in the women’s move- throughout the country, such as these, S. 2285 ment and help to ensure their historic that deserve to be preserved. Be it enacted by the Senate and House of Rep- preservation. The history of American In my home State of Connecticut resentatives of the United States of America in women has barely begun to be re- there are some success stories of ef- Congress assembled, corded. Consider these facts: (1) less forts to preserve women’s sites such as SECTION 1. SHORT TITLE. than 5 percent of our Nation’s historic the Prudence Crandall home, the first This Act may be cited as the ‘‘Women’s landmarks chronicle women’s achieve- school for African-American girls in Progress Commemoration Act’’.

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SEC. 2. DECLARATION. for the transaction of business, but a lesser (3) DETAIL OF GOVERNMENT EMPLOYEES.— Congress declares that— number of members may hold hearings. Any Federal Government employee, with the (1) the original Seneca Falls Convention, (e) CHAIRPERSON AND VICE CHAIRPERSON.— approval of the head of the appropriate Fed- held in upstate New York in July 1848, con- The Commission shall select a Chairperson eral agency, may be detailed to the Commis- vened to consider the social conditions and and Vice Chairperson from among its mem- sion without reimbursement, and the detail civil rights of women at that time; bers. shall be without interruption or loss of civil (2) the convention marked the beginning of SEC. 4. DUTIES OF THE COMMISSION. service status, benefits, or privilege. an admirable and courageous struggle for Not later than 1 year after the initial (d) PROCUREMENT OF TEMPORARY AND equal rights for women; meeting of the Commission, the Commission, INTERMITTENT SERVICES.—The Chairperson of (3) the 150th Anniversary of the convention in cooperation with the Secretary of the In- the Commission may procure temporary and provides an excellent opportunity to exam- terior and other appropriate Federal, State, intermittent services under section 3109(b) of ine the history of the women’s movement; and local public and private entities, shall title 5, United States Code, at rates for indi- and prepare and submit to the Secretary of the viduals not to exceed the daily equivalent of (4) a Federal Commission should be estab- Interior a report that— the annual rate of basic pay prescribed for a lished for the important task of ensuring the (1) identifies sites of historical significance position at level V of the Executive Schedule historic preservation of sites that have been to the women’s movement; and under section 5316 of that title. instrumental in American women’s history, (2) recommends actions, under the Na- SEC. 7. FUNDING. creating a living legacy for generations to tional Historic Preservation Act (16 U.S.C. (a) AUTHORIZATION OF APPROPRIATIONS.— come. 470 et seq.) and other law, to rehabilitate and There are authorized to be appropriated to SEC. 3. ESTABLISHMENT OF COMMISSION. preserve the sites and provide to the public interpretive and educational materials and the Commission such sums as are necessary (a) ESTABLISHMENT.—There is established a to carry out this Act. commission to be known as the ‘‘Women’s activities at the sites. (b) DONATIONS.—The Commission may ac- SEC. 5. POWERS OF THE COMMISSION. Progress Commemoration Commission’’ (re- cept donations from non-Federal sources to ferred to in this Act as the ‘‘Commission’’). (a) HEARINGS.—The Commission may hold such hearings, sit and act at such times and defray the costs of the operations of the (b) MEMBERSHIP.— Commission. (1) IN GENERAL.—The Commission shall be places, take such testimony, and receive composed of 15 members, of whom— such evidence as the Commission considers SEC. 8. TERMINATION. (A) 3 shall be appointed by the President; advisable to carry out its duties of this Act. The Commission shall terminate on the (B) 3 shall be appointed by the Speaker of (b) INFORMATION FROM FEDERAL AGEN- date that is 30 days after the date on which the House of Representatives; CIES.—The Commission may secure directly the Commission submits to the Secretary of (C) 3 shall be appointed by the minority from any Federal department or agency such the Interior the report under section 4(b). leader of the House of Representatives; information as the Commission considers SEC. 9. REPORTS TO CONGRESS. (D) 3 shall be appointed by the majority necessary to carry out the provisions of this Not later 2 years and not later than 5 years leader of the Senate; and Act. At the request of the Chairperson of the after the date on which the Commission sub- (E) 3 shall be appointed by the minority Committee, the head of such department or mits to the Secretary of the Interior the re- leader of the Senate. agency shall furnish such information to the port under section 4, the Secretary of the In- (2) PERSONS ELIGIBLE.— Commission. terior shall submit to Congress a report de- (A) IN GENERAL.—The members of the Com- SEC. 6. COMMISSION PERSONNEL MATTERS. scribing the actions that have been taken to mission shall be individuals who have knowl- (a) COMPENSATION OF MEMBERS.—A member preserve the sites identified in the Commis- edge or expertise, whether by experience or of the Commission who is not otherwise an sion report as being of historical signifi- training, in matters to be studied by the officer or employee of the Federal Govern- cance. Commission. The members may be from the ment shall be compensated at a rate equal to public or private sector, and may include the daily equivalent of the annual rate of The PRESIDING OFFICER. The Sen- Federal, State, local, or employees, members basic pay prescribed for a position at level IV ator from New York. of academia, nonprofit organizations, or in- of the Executive Schedule under section 5315 Mr. MOYNIHAN. I rise, of course, to dustry, or other interested individuals. of title 5, United States Code, for each day support and endorse the proposal by (B) DIVERSITY.—It is the intent of Congress (including travel time) during which the the Senator from Connecticut, cospon- that persons appointed to the Commission member is engaged in the performance of the sored by the senior Senator from Alas- under paragraph (1) be persons who represent duties of the Commission. A member of the ka, with one small anecdote. diverse economic, professional, and cultural Commission who is otherwise an officer or The Women’s Rights National Con- backgrounds. employee of the United States shall serve (3) CONSULTATION AND APPOINTMENT.— without compensation in addition to that re- vention met 150 years ago at the Wes- (A) IN GENERAL.—The President, Speaker of ceived for services as an officer or employee leyan Chapel on Fall Street in Seneca the House of Representatives, minority lead- of the United States. Falls. There will be a lot of ceremony er of the House of Representatives, majority (b) TRAVEL EXPENSES.—A member of the this week and next. The First Lady leader of the Senate, and minority leader of Commission shall be allowed travel expenses, will be there. the Senate shall consult among themselves including per diem in lieu of subsistence, at I was in Seneca Falls about 1978 and before appointing the members of the Com- rates authorized for employees of agencies was having a beer with the county mission in order to achieve, to the maximum under subchapter I of chapter 57 of title 5, extent practicable, fair and equitable rep- United States Code, while away from the leader, George Souhan, in the Gould resentation of various points of view with re- home or regular place of business of the Hotel. Looking down at the street, I spect to the matters to be studied by the member in the performance of service for the just happened to say to him, ‘‘Where Commission. Commission. was that chapel where the convention (B) COMPLETION OF APPOINTMENTS; VACAN- (c) STAFF.— met?’’ He said, ‘‘It was just down the CIES.—The President, Speaker of the House (1) IN GENERAL.—The Chairperson of the street.’’ I said, ‘‘Let’s go look.’’ Down of Representatives, minority leader of the Commission may, without regard to the civil the street we went. What did we find, House of Representatives, majority leader of service laws (including regulations), appoint the Senate and minority leader of the Senate and terminate an executive director and but a laundromat. The Wesleyan Chap- shall conduct the consultation under sub- such other additional personnel as may be el had become a laundromat on Fall paragraph (3) and make their respective ap- necessary to enable the Commission to per- Street and a garage behind. pointments not later than 60 days after the form its duties. The employment and termi- We had it declared a national park in date of enactment of this Act. nation of an executive director shall be sub- 1980. We went around the city, the vil- (4) VACANCIES.—A vacancy in the member- ject to confirmation by a majority of the lage, and found the houses of the ladies ship of the Commission shall not affect the members of the Commission. of Seneca Falls—the Bloomer girls and (2) COMPENSATION.—The executive director powers of the Commission and shall be filled Elizabeth Cady Stanton and the like. in the same manner as the original appoint- shall be compensated at a rate not to exceed ment not later than 30 days after the va- the rate payable for a position at level V of We went to Waterloo, where in the cancy occurs. the Executive Schedule under section 5316 of McClintock House the declaration was (c) MEETINGS.— title 5, United States Code. The Chairperson drafted. That needs repair; the Park (1) INITIAL MEETING.—Not later than 30 may fix the compensation of other personnel Service should do it. days after the date on which all members of without regard to the provisions of chapter It is quite an achievement, but it the Commission have been appointed, the 51 and subchapter III of chapter 53 of title 5, makes the point that the Senator from Commission shall hold its first meeting. United States Code, relating to classification Connecticut has just made that you (2) SUBSEQUENT MEETINGS.—After the ini- of positions and General Schedule pay rates, tial meeting, the Commission shall meet at except that the rate of pay for such per- better look after these important sites. the call of the Chairperson. sonnel may not exceed the rate payable for a That was the first original American (d) QUORUM.—A majority of the members of position at level V of the Executive Schedule political idea—that women were equal the Commission shall constitute a quorum under section 5316 of that title. in civic rights with men. It didn’t come

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00027 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7942 CONGRESSIONAL RECORD — SENATE July 10, 1998 from Europe. It came right from cen- Senate and the House of Representa- prospective repeal of the mandatory tral New York. It had almost vanished tives relating to this issue. Moreover, purchase requirement of the Public as a site until we came along. it is further illustrated by the Admin- Utility Regulatory Policies Act of 1978 If the Senator wishes to do more, istration’s decision to propose this leg- (‘‘PURPA’’). PURPA is one of the few more power to him. I thank my friend islation. remaining vestiges of President Jimmy from Colorado. Mr. President, as I see it, the issue Carter’s ill-fated 1978 ‘‘National Energy Mr. DODD. If my friend from Colo- isn’t: Do we want competition in the Plan’’ that we have yet to extinguish. rado will yield once again, we realize electric power industry? We do. In- PURPA requires electric utilities to the benefit of having the presence of stead, the issue is: How do we bring purchase electricity from others our colleague form New York in our about competition without jeopard- whether or not they need it, and to pay midst. Once again he was ahead in so izing price and reliability or finan- so-called ‘‘full avoided cost’’ regardless many areas, and this is not an excep- cially damaging the industry? There is of the actual market value of the tion. As he pointed out, it was almost a consensus on the first issue; unfortu- power. This law has, and will until it is washed out. We are grateful that he nately, on the latter there is no con- repealed, cost consumers billions of stopped for a libation in Seneca Falls sensus. dollars in above-market prices for on that day in 1978. At the risk of oversimplification, PURPA electricity. As just one exam- there are two camps of thought on how ple of how this is hurting consumers, By Mr. MURKOWSKI (for himself to go about the task of promoting com- just the other day the FERC refused to and Mr. BUMPERS) (by request): petition. On the one hand, there are rescind the PURPA QF status of a pow- S. 2287. A bill to provide for a more those who want to see government- erplant even though the so-called ‘‘use- competitive electric power industry, managed competition, not market- ful’’ thermal output of the facility is to and for other purposes; to the Com- based competition. They believe that produce distilled water that, at times, government should continue to regu- mittee on Energy and Natural Re- is just being dumped down the sewer. late all aspects of the industry—just do sources. As a result, electric consumers in Braz- it differently. Moreover, they prefer COMPREHENSIVE ELECTRICITY COMPETITION ACT os, Texas will pay an extra $890 million the Federal government—FERC—be Mr. MURKOWSKI. Mr. President, at for electricity over the life of the put in charge and the States pushed the request of the Administration, I am PURPA contract—$148 per year for the out of the way. On the other hand, today introducing its proposed electric average family of four living in Brazos. power industry legislation, the ‘‘Com- there are those who believe that com- petition should be market-based. They It is also essential that PURPA’s man- prehensive Electric Competition Act.’’ datory purchase requirement be re- I do so not because I agree with all of believe that the most effective and effi- cient regulator of business is the dis- pealed as it is a key contributor to the the provisions of the Administration’s so-called ‘‘stranded cost’’ problem that legislation: I don’t. I do so as a cour- cipline of the free market—not the dis- cipline of the government regulator. I is plaguing industry restructuring ef- tesy to the Administration and because fall into the latter camp. Having seen forts. Clearly, like PUHCA, it is time I strongly support competition. to repeal this anti-consumer and anti- Mr. President, let me first say that I all too often the results of failed gov- ernment regulation—wage-and-price competitive provision of PURPA. am a strong proponent of increased While there are provisions such as competition in the electric power in- controls, oil price and allocation con- trols, and natural gas wellhead price these in the Administration’s proposed dustry. For the past century our elec- controls, for example. I believe that for legislation that I do support, there are tric utilities—investor-owned, munici- electric competition legislation to ben- many provisions that I am very con- pally-owned, cooperatively-owned— efit consumers it must deregulate, cerned about—some of which raise seri- have served this Nation well. Particu- streamline and empower States to pro- ous Constitutional issues, others of larly as compared to the rest of the mote retail competition. We don’t need which I just cannot support. For exam- world, we have reasonably-priced, ex- different regulation; we don’t need gov- ple, the Administration’s bill imposes a tremely reliable and nearly universal ernment-managed competition. We Federal mandate on States; it imposes electric service. But with some well need deregulation; we need market- a new $3+ billion per year Federal elec- thought-out changes, our electric based competition. tricity tax on consumers; and it has a power industry can do even better. We Turning now to the Administration’s 51⁄2 percent ‘‘renewable set-aside’’ man- have seen in a number of other indus- proposed legislation, let me first say date (that curiously ignores hydro- tries—oil, natural gas, trucking and that it contains several provisions that electric power as a renewable). More- airlines, to name but a few—deregula- are in keeping with my philosophy. For over, the Administration’s proposed tion has greatly benefitted consumers. example, it proposes to repeal the Pub- legislation includes numerous provi- Market-based competition has reduced lic Utility Holding Company Act sions that vastly expand FERC juris- prices, increased supply and sparked (‘‘PUHCA’’). This language is very diction, largely at the expense of innovation. There is no reason why in- similar to legislation Senator D’AMATO States. creased competition in the electric introduced, S. 621, which has been re- I am also troubled by the Adminis- power industry would not similarly ported by the Banking Committee and tration’s proposed legislation because benefit consumers, the economy and awaits action by the Senate. I am a co- of what it does not contain. The Ad- our international competitiveness. sponsor of S. 621, along with 22 other ministration’s transmittal letter ac- I believe that there is a growing con- Senators. If we did nothing else, repeal knowledges that its legislation does sensus that increased competition in of PUHCA would significantly promote not address several key issues. For ex- the electric power industry is in the competition in the electric power in- ample, the Administration’s legislation public interest. This is illustrated by dustry. This depression-era law, en- does not resolve the competitive status the number of States that have already acted in 1935, has long outlived its use- of the Federal utilities—the Tennessee moved forward to promote retail com- fulness, and today is actually a signifi- Valley Authority and the Federal petition. According to the Department cant impediment to competition. Re- power marketing administrations. Nor, of Energy, 18 States have already im- peal would allow both utilities and does it address the competitive advan- plemented retail competition, either non-utilities to fully compete without tage municipal utilities have from tax- through State legislation or by State fear of becoming tangled in PUHCA’s exempt bonds and access to Federal public utility commission regulation. regulatory spider web. More competi- preference power. Also, it does not ad- One hundred and twenty-one million tors mean more competition, and that dress key issues necessary to ensure vi- people—49 percent of the U.S. popu- would benefit consumers and our econ- ability of nuclear power. I do not see lation—live in these States. Of the re- omy. Moreover, repeal of PUHCA would how any bill can be considered ‘‘com- maining States, all but two (Florida not diminish Federal and State con- prehensive’’ if it does not address these and South Dakota) are now actively sumer protections, which would remain and other issues. considering competition programs. in full force and effect. Mr. President, although I have seri- This consensus is also illustrated by Another provision of the Administra- ous reservations about many provi- the 20 bills introduced to date in the tion’s bill that I strongly support is its sions of the Administration’s proposed

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00028 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7943 legislation, I am willing to introduce it PURPA) is amended by adding after section as part of this proceeding, the State regu- in the spirit of moving forward and try- 608 the following new section: latory authority shall consider the appro- ing to develop a consensus. That will ‘‘SEC. 609. RETAIL COMPETITION. priate mechanism under State law to address recovery by a distribution utility for which not be an easy or a quick task. But, it ‘‘(a) DEFINITIONS.—For purposes of this sec- tion— it has ratemaking authority of retail strand- is one that we must undertake if all ed costs that are legitimate, prudent, and consumers—residential, commercial ‘‘(1) ‘distribution utility’ means a person, State agency, or any other entity that owns verifiable, if the utility has taken all reason- and industrial—are to enjoy the bene- or operates a local distribution facility used able steps to mitigate the costs. A charge imposed for purposes of recovering retail fits of increased competition in the or the sale of electric energy to an electric stranded costs should be imposed in a man- electric power industry. I ask unani- consumer; ner so as to minimize to the fullest extent mous consent that the Administra- ‘‘(2) ‘nonregulated distribution utility’ possible any effect on an electric consumer’s means a distribution utility not subject to tion’s transmittal letter, its section- choice among competing suppliers or prod- by-section analysis and its proposed the ratemaking authority of a State regu- ucts. legislation be printed in the RECORD. latory authority; and ‘‘(f) ENFORCEMENT.—Any person may bring There being no objection, the mate- ‘‘(3) ‘retail stranded costs’ means the an action in the appropriate State court amount of net costs incurred or obligations rial was ordered to be printed in the against a State regulatory authority, a dis- undertaken before the date of enactment of tribution utility, or a nonregulated distribu- RECORD, as follows: the Comprehensive Electricity Competition tion utility for failure to comply with this S. 2287 Act by a distribution utility that— section. Filing an action challenging wheth- Be it enacted by the Senate and House of Rep- ‘‘(A) were incurred or undertaken by that er retail competition is being implemented resentatives of the United States of America in distribution utility in order to comply with consistent with subsetion (b) makes a notice Congress assembled, a legal obligation on that utility to provide of retail competition ineffective for purposes SECTION 1. SHORT TITLE. electricity to electric consumers in its serv- of section 118 of this Act and sections 212(h), This Act may be cited as the ‘‘Comprehen- ice territory, and 216, and 217 of the Federal Power Act until sive Electricity Competition Act’’. ‘‘(B) cannot be recovered because of imple- final resolution of the action. Notwith- SEC. 2. TABLE OF CONTENTS. mentation of retail competition under sub- standing any other law, a court created Sec. 1. Short title. section (b). under Article III of the Constitution does not Sec. 2. Table of contents. ‘‘(b) RETAIL COMPETITION REQUIREMENT.— have jurisdiction over an action arising TITLE I—RETAIL ELECTRIC SERVICE Except as provided in subsection (c), not under this section.’’. later than January 1, 2003, any distribution ‘‘(b) DEFINITION.—Section 3 of PURPA is Sec. 101. Retail competition. amended by adding after paragraph (21) the Sec. 102. Authority to impose reciprocity re- utility that has the capability to deliver electric energy to an electric consumer over following new paragraph: quirements. ‘‘(22) The term ‘notice of retail competi- Sec. 103. Consumer information. its facilities shall offer open access to those facilities for the sale of electric energy to tion’ means a notice filed under section TITLE II—FACILITATING STATE AND the consumer and shall do so at rates, terms, 609(d).’’. REGIONAL REGULATION and conditions that are not unduly discrimi- SEC. 102. AUTHORITY TO IMPOSE RECIPROCITY Sec. 201. Clarification of State and Federal natory or preferential, as determined by the REQUIREMENTS. authority over retail trans- appropriate regulatory authority. PURPA is amended by adding the fol- mission services. ‘‘(c) OPT OUT.—(1) A State regulatory au- lowing new section 117: Sec. 202. Interstate compacts on regional thority (with respect to a distibution utility ‘‘SEC. 118. AUTHORITY TO IMPOSE RECIPROCITY transmission planning. for which it has ratemaking authority) may REQUIREMENTS. Sec. 203. Backup authority to impose a direct a distribution utility not to imple- ‘‘(a) STATE REGULATORY AUTHORITY.—If a charge on an ultimate con- ment the retail competition requirement de- State regulatory authority files a notice of sumer’s receipt of electric en- scribed in subsection (b) if the State regu- retail competition with respect to a distribu- ergy. latory authority finds, after notice and op- tion utility, beginning on the effective date Sec. 204. Authority to establish and require portunity for hearing, that implementation of the notice, the State regulatory authority independent system operation. of the retail competition requirement by the may prohibit any other distribution utility TITLE III—PUBLIC BENEFITS distribution utility will have a negative im- located in the United States over which it Sec. 301. Public benefits fund. pact on a class of customers of that utility does not have ratemaking authority (and any affiliate of such a utility, as defined Sec. 302. Federal renewable portfolio stand- that cannot be mitigated reasonably. under the Public Utility Holding Company ard. ‘‘(2) A nonregulated distribution utility Act of 1998) from selling electric energy to Sec. 303. Net metering. may determine not to implement the retail electric consumers of a distribution facility Sec. 304. Reform of section 210 of PURPA. competition requirement described in sub- covered by the notice of retail competition, TITLE IV—REGULATION OF MERGERS section (b) if it finds, after notice and oppor- unless a notice of retail competition has AND CORPORATE STRUCTURE tunity for hearing, that implementation of been filed with respect to the other distribu- Sec. 401. Reform of holding company regu- the retail competition requirement by the tion utility. lation under PUHCA. distribution utility will have a negative im- ‘‘(b) NONREGULATED DISTRIBUTION UTIL- Sec. 402. Electric company mergers. pact on a class of customers of that utility ITY.—If a nonregulated distribution utility Sec. 403. Remedial measures for market that cannot be mitigated reasonably. power. files a notice of retail competition, begin- ‘‘(3) The State regulatory authority (with ning on the effective date of the notice, it TITLE V—ELECTRIC RELIABILITY respect to a distribution utility for which it may prohibit any other distribution utility Sec. 501. Electric reliability organization has ratemaking authority) or nonregulated located in the United States (or affiliate of and oversight. distribution utility shall publish the deter- the utility, as defined under the Public Util- Sec. 502. Statutory presumption. mination and its basis and shall file a notice ity Holding Company Act of 1998) from sell- TITLE VI—ENVIRONMENTAL with the Commission of its determination by ing electric energy to electric consumers of PROTECTION January 1, 2002. the nonregulated distribution utility covered OTICE OF RETAIL COMPETITION.—A Sec. 601. Nitrogen oxides cap and trade pro- ‘‘(d) N by the notice unless a notice of retail com- State regulatory authority (with respect to a gram. petition has been filed with respect to the distribution utility for which it has rate- TITLE VII—OTHER REGULATORY other distribution utility. making authority) or nonregulated distribu- ‘‘(c) DEFINITIONS.—For purposes of this sec- PROVISIONS tion utility shall file with the Commission a tion, ‘distribution utility’ and ‘nonregulated Sec. 701. Treatment of nuclear decommis- notice that the distribution utility has im- distribution utility’ have the meaning given sioning costs in bankruptcy. plemented or will implement retail competi- them in section 609(a).’’. Sec. 702. Study of impacts of competition in tion consistent with subsection (b). The no- SEC. 103. CONSUMER INFORMATION. electricity markets by the En- tice shall describe the implementation of re- PURPA is amended by adding the fol- ergy Information Administra- tail competition. The notice is effective for lowing new section after section 118 as added tion. purposes of section 118 of this Act and sec- by section 102 of this Act: Sec. 703. Antitrust savings clause. tions 212(h), 216, and 217 of the Federal Power Sec. 704. Elimination of antitrust review by ‘‘SEC. 119. CONSUMER INFORMATION DISCLO- Act on the date the notice is filed or the date SURE. the Nuclear Regulatory Com- of implementation of retail competition con- ‘‘(a) DISCLOSURE RULES.—Not later than mission. sistent with subsection (b) whichever is January 1, 2000, the Secretary, in consulta- Sec. 705. Environmental laws savings later. tion with the Commission, the Adminis- clause. ‘‘(e) CONSIDERATION OF RECOVERY OF RE- trator of the Environmental Protection TITLE I—RETAIL ELECTRIC SERVICE TAIL STRANDED COSTS.—If a State regulatory Agency, and the Federal Trade Commission, SEC. 101. RETAIL COMPETITION. authority conducts a public proceeding be- shall issue rules prescribing the form, con- (a) The Public Utility Regulatory Policies fore a distribution utility implements retail tent, placement, and timing of the supplier Act of 1978 (referred to in this Act as competition as required under subsection (b), disclosure required under subsections (b) and

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00029 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7944 CONGRESSIONAL RECORD — SENATE July 10, 1998 (c) of this section. The rules shall be pre- upon the Federal Trade Commission and pro- (A) by inserting ‘‘(1)’’ before ‘‘No’’; scribed in accordance with section 553 of vide the Federal Trade Commission with a (B) by striking ‘‘(1)’’, ‘‘(2)’’, ‘‘(A)’’, and title 5, United States Code (the Administra- copy of its complaint, except that if it is not ‘‘(B)’’ and inserting in their places ‘‘(A)’’, tive Procedure Act). feasible for the State to provide this prior ‘‘(B)’’, ‘‘(i)’’, and ‘‘(ii)’’ respectively; ‘‘(b) DISCLOSURE TO ELECTRIC CONSUMERS.— notice, the State shall serve the notice im- (C) by striking from redesignated para- An electric utility that offers to sell electric mediately upon instituting the action. Upon graph (1)(B)(ii) ‘‘the date of enactment of energy to an electric consumer shall provide receiving a notice respecting a civil action, this subsection’’ and inserting ‘‘October 24, the electric consumer, to the extent prac- the Federal Trade Commission may— 1992,’’ in its place; and ticable and in accordance with rules issued ‘‘(A) intervene in the action, and (D) by adding at the end a new paragraph under subsection (a), a statement containing ‘‘(B) upon so intervening, be heard on all as follows: the following information: matters arising in the action and file peti- ‘‘(2) Notwithstanding paragraph (1), the ‘‘(1) the nature of the service being offered, tion for appeal. Commission may issue an order that requires including information about interruptibility ‘‘(3) For purposes of bringing any civil ac- the transmission of electric energy directly or curtailment of service; tion under this subsection, this section does or indirectly to an ultimate consumer if a ‘‘(2) the price of the electric energy, in- not prevent a State official from exercising notice of retail competition under section cluding a description of any variable the powers conferred by State law to conduct 609 of the Public Utility Regulatory Policies charges; investigations, administer oaths or affirma- Act of 1978 has been filed and is in effect with ‘‘(3) a description of all other charges asso- tions, or compel the attendance of witnesses respect to the ultimate consumer or if a dis- ciated with the service being offered includ- or the production of documentary and other tribution utility offers open access to its de- ing, but not limited to, access charges, exit evidence. livery facilities to the ultimate consumer.’’. charges, back-up service charges, stranded ‘‘(4) While a civil action instituted by or on (3) CONFORMING AMENDMENTS.— cost recovery charges, and customer service behalf of the Federal Trade Commission for (A) Section 3(23) of the FPA is amended to charges; violation of any rule prescribed under this read as follows: ‘‘(4) information concerning the type of en- subsection is pending, a State may not insti- ‘‘(23) ‘transmitting utility’ means any enti- ergy resource used to generate the electric tute a civil action under this section against ty that owns, controls, or operates electric energy and the environmental attributes of a defendant named in the complaint in the power transmission facilities that are used the generation (including air emissions char- pending action for a violation alleged in the for the sale of electric energy, notwith- acteristics); and complaint. standing section 201(f) of this Act.’’. ‘‘(5) any other information the Secretary ‘‘(5) A civil action brought under this sub- (B) Section 3(24) of the FPA is amended to determines can be provided feasibly and section may be brought in the district in read as follows: would be useful to consumers in making pur- which the defendant is found, is an inhab- ‘‘(24) ‘transmission services’ means the chasing decisions. itant, or transacts business or wherever transmission of electric energy sold or to be ‘‘(c) DISCLOSURE TO WHOLESALE CUS- venue is proper under section 1391 of title 28, sold.’’. TOMERS.—In every sale of electric energy for United States Code. Process in such an ac- (C) Section 211(a) of the FPA is amended resale, the seller shall provide to the pur- tion may be served in any district in which by striking ‘‘for resale’’. chaser the information respecting the type the defendant is an inhabitant or in which (D) Section 212(a) of the FPA is amended of energy resource used to generate the elec- the defendant may be found. by striking ‘‘wholesale’’ each time it ap- tric energy and the environmental attributes ‘‘(6) This section does not prohibit a State pears, except the last time. of the generation required by rules estab- from proceeding in State court on the basis (c) APPLICABILITY OF COMMISSION JURISDIC- lished under subsection (a). of an alleged violation of a State civil or TION TO TRANSMITTING UTILITIES.—Section ‘‘(d) FEDERAL TRADE COMMISSION ENFORCE- criminal statute.’’. 206(e) of the FPA as added by subsection MENT.—A violation of a rule prescribed under (b)(1) of this section is amended by adding this section shall constitute an unfair or de- TITLE II—FACILITATING STATE AND the following new paragraphs after para- ceptive act or practice in violation of section REGIONAL REGULATION graph (1): 5 of the Federal Trade Commission Act (15 SEC. 201. CLARIFICATION OF STATE AND FED- ‘‘(2)(A) The Commission has jurisdiction U.S.C. 45) and shall be treated as a violation ERAL AUTHORITY OVER RETAIL over the rates, terms, and conditions for of a rule under section 18 of the Federal TRANSMISSION SERVICES. transmission services provided by a trans- Trade Commission Act (15 U.S.C. 57a). All (a) NONPREEMPTION OF STATE AUTHORITY TO mitting utility that is not a public utility, functions and powers of the Federal Trade ORDER RETAIL WHEELING AND TO IMPOSE subject to section 212(h). Commission under the Federal Trade Com- LOCAL DELIVERY CHARGES.—Section 201(b) of ‘‘(B) In exercising its authority under this mission Act are available to the Federal the Federal Power Act (referred to in this paragraph, the Commission— Trade Commission to enforce compliance Act as ‘‘the FPA’’) is amended by adding the ‘‘(i) shall take into account the different with this section notwithstanding jurisdic- following new paragraph after paragraph (2): structural and operating characteristics of tional limitations in the Federal Trade Com- ‘‘(3) This Act does not preempt or other- transmitting utilities, including the multi- mission Act. wise affect any authority under the law of a tier structure and the not-for-profit oper- ‘‘(e) AUTHORITY TO OBTAIN INFORMATION.— State or municipality to— ations of cooperatives; Authority to obtain information under sec- ‘‘(A) require unbundled transmission and ‘‘(ii) with respect to any transmitting util- tion 11 of the Energy Supply and Environ- local distribution services for the delivery of ity that has outstanding loans made or guar- mental Coordination Act of 1974 (15 U.S.C. electric energy directly to an ultimate con- anteed by the Rural Utilities Service, shall 796) is available to the Secretary to admin- sumer, but if unbundled transmission is in take into account the policies of the Depart- ister this section and to the Federal Trade interstate commerce, the rates, terms, and ment of Agriculture in implementing the Commission to enforce this section. In order conditions of the transmission are subject to Rural Electrification Act of 1936 and shall to carry out its duties this section, the Fed- the exclusive jurisdiction of the Commission assure, to the extent practicable, that the eral Trade Commission may use any of its under this part, or utility will be able to meet any loan obliga- powers under sections 3, 6, 9, and 20 of the ‘‘(B) impose a delivery charge on an ulti- tions under that Act; and Federal Trade Commission Act (15 U.S.C. 43, mate consumer’s receipt of electric energy.’’. ‘‘(iii) shall not approve rates, terms, or 46, 49, and 57b–2) without regard to the limi- (b) OPEN ACCESS TRANSMISSION AUTHORITY; conditions the Commission determines tations contained in section 20(b) of that Act RETAIL WHEELING IN RETAIL COMPETITION would have the effect of jeopardizing the tax (15 U.S.C. 57b–2(b)) or any jurisdictional limi- STATES.— exempt status of nonprofit electric coopera- tations contained in that Act. (1) APPLICABILITY OF OPEN ACCESS TRANS- tives under the Internal Revenue Code of ‘‘(f) ENFORCEMENT BY STATES.—(1) When a MISSION RULES.—Section 206 of the FPA is 1986. State determines that the interests of its amended by adding the following new sub- ‘‘(C) Notwithstanding any other law, sec- residents have been or are being threatened section after subsection (d): tion 205, this section, and part III apply to a or adversely affected because any person is ‘‘(e) OPEN ACCESS TRANSMISSION SERV- transmitting utility that is not a public util- violating or has violated a rule of the Sec- ICES.—(1) Under section 205 and this section, ity for purposes of this section. retary under this section, the State may the Commission may require, by rule or ‘‘(3) The Commission may suspend or mod- bring a civil action on behalf of its residents order, public utilities and transmitting utili- ify for specified periods application of its in an appropriate district court of the United ties to provide open access transmission rules on nondiscriminatory open access to States— services, subject to section 212(h), and may one or more of the following entities: the ‘‘(A) enjoin the violation; authorize recovery of stranded costs, as de- Tennessee Valley Authority, the Bonneville ‘‘(B) enforce compliance with the rule of fined by the Commission, arising from any Power Administration, the Southeastern the Secretary; requirement to provide open access trans- Power Administration, the Southwestern ‘‘(C) obtain damages, restitution, or other mission services. This section applies to any Power Administration, the Western Area compensation on behalf of its residents; or rule or order issued by the Commission be- Power Administration, a corporation or as- ‘‘(D) obtain other relief the court considers fore the date of enactment of the Com- sociation with outstanding debt to the Ad- appropriate. prehensive Electricity Competition Act.’’. ministrator of the Rural Utility Service re- ‘‘(2) The State shall serve prior written no- (2) AUTHORITY TO ORDER RETAIL WHEEL- lating to electric utility facilities, or a full- tice of any civil action under this subsection ING.—Section 212(h) of the FPA is amended— requirements wholesale customer of any of

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00030 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7945 these entities, if the Commission finds that ensure that the regional transmission plan- ‘‘(2) the entity established for the purpose the entity will not be able to recover strand- ning agency’s organization, practices, and of independent operation and control of ed costs. procedures are sufficient to carry out this interconnected transmission facilities will ‘‘(4) Any electric utility that owns, di- section and the rules issued under it. operate the transmission facilities in a man- rectly or indirectly, generation facilities fi- ‘‘(d) The Commission, after notice and op- ner that assures that ownership of trans- nanced in whole or in part with outstanding portunity for comment, may terminate the mission facilities provides no advantage in loans made or guaranteed by the Rural Utili- approval of an agreement under this section competitive electricity markets; and ties Service may apply to the Commission to at any time if it determines that the re- ‘‘(3) any transmitting utility ordered to impose a charge for the recovery of stranded gional transmission planning agency fails to transfer control of its transmission facilities costs as defined by the Commission. If the comply with this section or Commission pre- will receive just and reasonable compensa- Commission determines that the proposed scriptions under subsection (c) or that the tion for the use of its facilities.’’. charge is just, reasonable, and not unduly agreement is contrary to the public interest. discriminatory or preferential, the Commis- ‘‘(e) Section 313 applies to a rehearing be- TITLE III—PUBLIC BENEFITS sion may issue an order providing for the im- fore a regional transmission planning agency SEC. 301. PUBLIC BENEFITS FUND. position of the charge on transmission serv- and judicial review of any action of a re- PURPA is amended by adding after section ice by the applicant or by another transmit- gional transmission planning agency. For 609, as added by section 101 of this Act, the ting utility or on any electric utility or this purpose, when section 313 refers to following new section: transaction subject to the Commission’s ju- ‘‘Commission’’, substitute ‘‘regional trans- ‘‘SEC. 610. PUBLIC BENEFITS FUND. risdiction.’’. mission planning agency’’ and when section SEC. 202. INTERSTATE COMPACTS ON REGIONAL 313(b) refers to ‘‘licensee or public utility’’, ‘‘(a) DEFINITIONS.—For purposes of this sec- TRANSMISSION PLANNING. substitute ‘‘entity’’. ’’. tion— The FPA is amended by adding after sec- SEC. 203. BACKUP AUTHORITY TO IMPOSE A ‘‘(1) the term ‘Board’ means the Federal- tion 214 the following new section: CHARGE ON AN ULTIMATE CON- State Joint Board established under sub- SUMER’S RECEIPT OF ELECTRIC EN- ‘‘INTERSTATE COMPACTS ON REGIONAL section (b)(1); ERGY. ‘‘(2) the term ‘eligible public purpose pro- TRANSMISSION PLANNING The FPA is amended by adding the fol- gram’ means a program that supports one or ‘‘SEC. 215. (a) The consent of Congress is lowing new section after section 215 as added more of the following— given for an agreement to establish a re- by section 202 of this Act: gional transmission planning agency, if the ‘‘(A) availability of affordable electricity ‘‘BACKUP AUTHORITY FOR CHARGE ON RECEIPT Commission determines that the agreement service to low-income customers, OF ELECTRIC ENERGY would— ‘‘(B) implementation of energy conserva- ‘‘(1) facilitate coordination among the ‘‘SEC. 216. (a) If a State regulatory author- tion and energy efficiency measures and en- States within a particular region with regard ity that has provided notice of retail com- ergy management practices, petition under section 609 of the Public Util- to the planning of future transmission, gen- ‘‘(C) consumer education, ity Regulatory Policies Act of 1978 for a dis- eration, and distribution facilities, ‘‘(D) the development and demonstration ‘‘(2) carry out State electric facility siting tribution utility determines that the utility of an electricity generation technology that responsibilities more effectively, should be authorized or required to impose a ‘‘(3) meet the other requirements of this charge on an ultimate consumer’s receipt of the Secretary determines is emerging from section and rules prescribed by the Commis- electric energy but the State regulatory au- research and development, provides environ- sion under this section, and thority lacks authority to authorize or re- mental benefits, and— ‘‘(4) otherwise be consistent with the pub- quire imposition of such a charge, the State ‘‘(i) has significant national commercial lic interest. regulatory authority may apply to the Com- potential, or ‘‘(b)(1) If the Commission determines that mission for an order providing for the impo- ‘‘(ii) provides energy security or genera- an agreement meets the requirements of sub- sition of the charge. If the Commission de- tion resource diversity benefits, or section (a), the agency established under the termines that the imposition of the charge is ‘‘(E) rural assistance subsequent to a de- agreement has the authority necessary or just, reasonable, and not unduly discrimina- termination made under subsection (d)(4); appropriate to carry out the agreement. This tory or preferential; is consistent with the ‘‘(3) the term ‘fiscal agent’ means the enti- authority includes authority with respect to State regulatory authority’s policy regard- ty designated under subsection (b)(2)(B); matters otherwise within the jurisdiction of ing the imposition of the charge; and is not ‘‘(4) the term ‘Fund’ means the Public Ben- the Commission, if expressly provided for in specifically prohibited by State law, the efits Fund established under subsection the agreement and approved by the Commis- Commission may issue an order providing for (b)(2)(A); and sion. the imposition of the charge. ‘‘(5) the term ‘State’ means each of the ‘‘(2) The Commission’s determination ‘‘(b) If a utility that has outstanding loans under this section may be subject to any contiguous States and the District of Colum- made or guaranteed by the Rural Utilities bia. terms or conditions the Commission deter- Service and that has filed a notice of retail mines are necessary to ensure that the ‘‘(b) FEDERAL-STATE JOINT BOARD.—(1) A competition under section 609 of the Public Federal-State Joint Board is established agreement is in the public interest. Utilities Regulatory Policies Act of 1978 de- ‘‘(c)(1) The Commission shall prescribe— whose membership is composed of two offi- ‘‘(A) criteria for determining whether a re- termines that it is appropriate to impose a cers or employees of the United States Gov- gional transmission planning agreement charge on an ultimate consumer’s receipt of ernment appointed by the Secretary and five meets subsection (a), and electric energy, but lacks the authority to State commissioners appointed by the na- ‘’(B) standards for the administration of a impose such a charge under State law, the tional organization of State commissions. regional transmission planning agency es- utility may apply to the Commission for an The Secretary shall designate the Chair of tablished under the agreement. order providing for the imposition of a the Board. charge. If the Commission determines that ‘‘(2) The criteria shall provide that, in ‘‘(2) The Board shall— order to meet subsection (a)— the proposed charge is just, reasonable, and ‘‘(A) a regional transmission planning not unduly discriminatory or preferential, ‘‘(A) establish a Public Benefits Fund upon agency must operate within a region that in- the Commission may issue an order pro- petition of States and tribal governments cludes all tribal governments and all or part viding for the imposition of the charge.’’. wishing to participate in the program under of each State that is a party to the agree- SEC. 204. AUTHORITY TO ESTABLISH AND RE- this section, ment, QUIRE INDEPENDENT SYSTEM OP- ‘‘(B) appoint a fiscal agent, from persons ‘‘(B) a regional transmission planning ERATION. nominated by the States and tribal govern- agency must be composed of one or more Section 202 of the FPA is amended by add- ments petitioning to establish the Fund, and members from each State and tribal govern- ing the following new subsection after sub- ‘‘(C) administer the Fund as set forth in ment that is a party to the agreement, section (g): this section. ‘‘(C) each participating State and tribal ‘‘(h) Upon its own motion or upon applica- ‘‘(c) FISCAL AGENT.—The fiscal agent ap- government must vest in the regional trans- tion or complaint and after notice and an op- pointed by the Board shall collect and dis- mission planning agency the authority nec- portunity for a hearing, the Commission burse the amounts in the Fund as set forth essary to carry out the agreement and this may order the establishment of an entity for in this section. the purpose of independent operation and section, and ‘‘(d) SECRETARY.—The Secretary shall pre- ‘‘(D) the agency must follow workable and control of interconnected transmission fa- scribe rules for— fair procedures in making its decisions, in cilities, may order a transmitting utility to ‘‘(1) the determination of charges under governing itself, and in regulating parties to relinquish control over operation of its subsection (e); the agreement with respect to matters cov- transmission facilities to an entity estab- ered by the agreement, including a require- lished for the purpose of independent oper- ‘‘(2) the collection of amounts for the ment that all decisions of the agency be ation and control of interconnected trans- Fund, including provisions for overcollection made by majority vote (or majority of mission facilities, or may do both, if the or undercollection; weighted votes) of the members present and Commission finds that— ‘‘(3) distribution of amounts from the voting. ‘‘(1) this action is appropriate to promote Fund; and ‘‘(3) The criteria may include any other re- competitive electricity markets and effi- ‘‘(4) the criteria under which the Board de- quirement for meeting subsection (a) that cient, economical, and reliable operation of termines whether a State or tribal govern- the Commission determines is necessary to the interstate transmission grid; ment’s program is an eligible public purpose

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00031 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7946 CONGRESSIONAL RECORD — SENATE July 10, 1998 program, including a rural assistance pro- subsection (d)(4) for rural assistance pro- SEC. 302. FEDERAL RENEWABLE PORTFOLIO gram. A rural assistance program shall be an grams. STANDARD. eligible public purpose program to the extent ‘‘(2) To the extent a State or tribal govern- (a) STANDARD. PURPA is amended by add- that the Secretary, in consultation with the ment generates all or part of its funds for el- ing after section 610, as added by section 301 Secretary of Agriculture, determines by rule igible public purpose programs through a of this Act, the following new section: that significant adverse economic effects on wires charge on an ultimate consumer’s re- ‘‘SEC. 611. FEDERAL RENEWABLE PORTFOLIO rural customers have occurred or will occur ceipt of electric energy, the State or tribal STANDARD. as a result of electricity restructuring that government shall impose the charge on a ‘‘(a) MINIMUM RENEWABLE GENERATION RE- meets the retail competition requirements of non-discriminatory basis on all consumers QUIREMENT.—For each calendar year begin- this Act. After such a determination is within the State or tribal government juris- ning with 2000, a retail electric supplier shall made, the Secretary, in consultation with diction. submit to the Secretary Renewable Energy the Secretary of Agriculture, shall specify by ‘‘(3) Notwithstanding subsection (a)(5)— Credits in an amount equal to the required rule the mechanism for distribution of funds ‘‘(A) Alaska may participate in the Fund annual percentage, specified in subsection to rural assistance programs, amounts to be as a State if it certifies to the Board that all (b), of the total electric energy sold by the provided, and variances to the overall re- generators within Alaska with a nameplate retail electric supplier to electric consumers quirements to the Public Benefits Fund capacity exceeding one megawatt shall pay in the calendar year. The retail electric sup- under this section, if any. For the purposes into the Fund at the rate calculated by the plier shall make this submission before April of funding of rural assistance programs, the Board during the year in which Alaska seeks 1 of the following calendar year. Secretary shall increase the charge for the matching funds, and ‘‘(2) For purposes of this section ‘renewable Public Benefit Fund as necessary, up to a ‘‘(B) Hawaii may participate in the Fund energy’ means energy produced by solar, maximum of .17 mills per kilowatt hour. as a State if it certifies to the Board that all wind, geothermal, or biomass. Funding for rural assistance programs under generators within Hawaii with a nameplate ‘‘(3) This section does not preclude a State this section shall be provided exclusively capacity exceeding one megawatt shall pay from requiring additional renewable energy from this increase in the charge. into the Fund at the rate calculated by the generation in that State. ‘‘(e) PUBLIC BENEFITS CHARGE.—(1) As a Board during the year in which Hawaii seeks ‘‘(b) REQUIRED ANNUAL PERCENTAGE.—(1) condition of existing or future interconnec- matching funds. The Secretary shall determine the required tion with facilities of any transmitting util- ‘‘(g) DISBURSAL FROM THE FUND.—The annual percentage that is to be applied to all ity, each owner of an electric generating fa- Board shall review State and tribal govern- retail electric suppliers for calendar years cility whose capacity exceeds one megawatt ment submissions and determine whether 2000–2004. This required annual percentage shall pay the transmitting utility a public programs designated by the State or tribal shall be equal to the percent of the total benefits charge determined under paragraph government are eligible public purpose pro- electric energy sold, during the most recent (2), even if the generation facility and the grams, using the criteria prescribed under calendar year for which information is avail- transmitting facility are under common subsection (d), and whether there is reason- able before the calendar year of the enact- ownership or are otherwise affiliated. Each able assurance that spending qualifying as ment of this section, by retail electric sup- importer of electric energy from Canada or State or tribal government matching funds pliers to electric customers in the United Mexico, as a condition of existing or future will occur. States that is renewable energy. interconnection with facilities of any trans- ‘‘(2) The fiscal agent shall disburse ‘‘(2) The Secretary shall determine the re- mitting utility in the United States, shall amounts in the Fund to participating States quired annual percentage for all retail elec- pay this same charge for imported electric and tribal governments to carry out eligible tric suppliers for calendar years 2005–2009. energy. The transmitting utility shall pay public purpose programs in accordance with This percentage shall be above the percent- the amounts collected to the fiscal agent at this subsection and rules prescribed under age in paragraph (1) and below the percent- the close of each month, and the fiscal agent subsection (d). age in paragraph (3) and shall be selected to shall deposit the amounts into the Fund. ‘‘(3) To the extent the aggregate amount of promote a smooth transition to the level in ‘‘(2)(A) The Board shall notify the Commis- funds requested by the States and tribal gov- paragraph (3). sion of the sum of the requests of all States ernments exceeds the maximum aggregate ‘‘(3) for calendar years 2010–2015, 5.5 per- and tribal governments under subsection (f) revenues eligible to be collected under sub- cent. within 30 days after receiving the requests. section (e) and deposited as payment for Re- ‘‘(c) SUBMISSION OF CREDITS.—A retail elec- ‘‘(B) The Commission shall calculate the newable Energy Credits under section 611, tric supplier may satisfy the requirements of rate for the public benefits charge for each the fiscal agent shall reduce each partici- subsection (a) through the submission of— calendar year at an amount, not in excess of pating State and tribal government’s request ‘‘(1) Renewable Energy Credits issued 1 mill per kilowatt-hour, equal to the sum of proportionately. under subsection (d) for renewable energy the requests of all States and tribal govern- ‘‘(4)(A) The fiscal agent shall disburse generated by the retail electric supplier in ments under subsection (f) for programs de- amounts for a calendar year from the Fund the calendar year for which Credits are being scribed in subsection (a)(2)(A) through to a State or tribal government in twelve submitted or any previous calendar year, (a)(2)(D) divided by the estimated kilowatt equal monthly payments beginning two ‘‘(2) Renewable Energy Credits issued hours of electric energy to be generated by months after the beginning of the calendar under subsection (d) to any renewable energy generators subject to the charge. Every five year. Amounts disbursed may not exceed the generator for renewable energy generated in years the Secretary shall review the charge lesser of the State or tribal government’s re- the calendar year for which Credits are being and shall direct the Commission to revise quest for the fiscal year, after any reduction submitted or a previous calendar year and the charge as appropriate to maintain a required under paragraph (3), or 50 percent of acquired by the retail electric supplier, or total Fund level relatively close to the tar- the State or tribal government’s documented ‘‘(3) any combination of Credits under get level of approximately $3 billion per year expenditures for eligible public purpose pro- paragraphs (1) and (2). nationwide, adjusted for inflation. If there grams for a calendar year, except as provided ‘‘(d) ISSUANCE OF CREDITS.—The Secretary are significant receipts from the sale of Re- under rules issued under subsection (d)(4) for shall establish, not later than one year after newable Energy Credits under section 611, rural assistance programs. the date of enactment of this section, a pro- the Secretary shall review the rate for this ‘‘(B) The fiscal agent shall make distribu- gram to issue, monitor the sale or exchange charge on a more frequent basis and may di- tions to the State or tribal government or to of, and track Renewable Energy Credits. rect the Commission to reduce the charge by an entity designated by the State or tribal ‘‘(2) Under the program, an entity that some portion of these receipts as long as suf- government to receive payments. The State generates electric energy through the use of ficient funds remain to ensure that the Fund or tribal government may designate a non- renewable energy may apply to the Sec- level is appropriate to achieve the environ- regulated utility as an entity to receive pay- retary for the issuance of Renewable Energy ment goals of this section and section 611 of ments under this section. Credits. The application shall indicate— this Act. ‘‘(C) A State or tribal government may use ‘‘(A) the type of energy used to produce the ‘‘(C) If a finding is made under subsection amounts received only for the eligible public electricity, (d)(4) in relation to rural customers, the purpose programs the State or tribal govern- ‘‘(B) the State in which the electric energy pubic benefit charge shall be increased as in- ment designated in its submission to the was produced, and dicated under subsection (d)(4). Board and the Board determined eligible. ‘‘(C) any other information the Secretary ‘‘(f) STATE AND TRIBAL GOVERNMENT PAR- ‘‘(h) REPORT.—One year before the date of determines appropriate. TICIPATION.—(1) Not later than 90 days before expiration of this section, the Secretary ‘‘(3) The Secretary shall issue to an entity the beginning of each calendar year, each shall report to Congress, after consultation one Renewable Energy Credit for each kilo- State and tribal government seeking to par- with the Board, whether a public benefits watt-hour of electric energy the entity gen- ticipate in the Fund shall submit to the fund should continue to exist. erates through the use of renewable energy Board a request for payments from the Fund ‘‘(i) SUNSET.—This section expires at mid- in any State in 2000 and any succeeding year. for the calendar year in an amount not in ex- night on December 31 of the fifteenth year To be eligible for a Renewable Energy Cred- cess of 50 percent of the State or tribal gov- after the year the Comprehensive Electricity it, the unit of electricity generated through ernment’s estimated expenditures for eligi- Competition Act is enacted, except with re- the use of renewable energy may be sold or ble public purpose programs for the year, ex- gard to charges and funding for rural assist- may be used by the generator. If both renew- cept as provided under rules issued under ance programs.’’. able energy and nonrenewable energy are

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00032 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7947 used to generate the electric energy, the Sec- ‘‘(1) the annual electric energy generation TITLE IV—REGULATION OF MERGERS retary shall issue credits based on the pro- and renewable energy generation of any enti- AND CORPORATE STRUCTURE portion of renewable energy used. The Sec- ty applying for Renewable Energy Credits SEC. 401. REFORM OF HOLDING COMPANY REGU- retary shall identify Renewable Energy Cred- under this section, LATION UNDER PUHCA. its by type of generation and by the State in ‘‘(2) the validity of Renewable Energy Effective 18 months after the enactment of which the generating facility is located. Credits submitted by a retail electric sup- this Act, the Public Utility Holding Com- ‘‘(4) In order to receive a Renewable En- plier to the Secretary, and pany Act of 1935 is repealed and the following ergy Credit, the recipient of a Renewable En- ‘‘(3) the quantity of electricity sales of all is enacted in its place. ergy Credit shall pay a fee, calculated by the retail electric suppliers. ‘‘SECTION 1. SHORT TITLE. Secretary, in an amount that is equal to the ‘‘(i) SUNSET.—This section expires Decem- ‘‘This Act may be cited as the ‘Public Util- administrative costs of issuing, recording, ber 31, 2015.’’. ity Holding Company Act of 1998’. monitoring the sale or exchange of, and ‘‘(b) DEFINITION.—Section 3 of PURPA is ‘‘SEC. 2. DEFINITIONS. tracking the Credit or does not exceed five amended by adding after paragraph (22) as ‘‘For purposes of this Act— percent of the dollar value of the Credit, added by section 101 of this Act the following ‘‘(1) the term ‘affiliate’ of a company whichever is lower. The Secretary shall re- new paragraph: means any company 5 percent or more of the tain the fee and use it to pay these adminis- ‘‘(23) The term ‘retail electric supplier’ outstanding voting securities of which are trative costs. means a person, State agency, or Federal owned, controlled, or held with power to ‘‘(5) When a generator sells electric energy agency that sells electric energy to an elec- vote, directly or indirectly, by such com- generated through the use of renewable en- tric consumer.’’. pany; ergy to a retail electric supplier under a con- SEC. 303. NET METERING. ‘‘(2) the term ‘associate company’ of a tract subject to section 210 of this Act, the PURPA is amended by adding the fol- company means any company in the same retail electric supplier is treated as the gen- lowing new section after section 611 as added holding company system with such company; erator of the electric energy for the purposes by section 302 of this Act: ‘‘(3) the term ‘Commission’ means the Fed- of this section for the duration of the con- SEC. 612. NET METERING FOR RENEWABLE EN- eral Energy Regulatory Commission; tract. ERGY. ‘‘(4) the term ‘company’ means a corpora- ‘‘(6) The Secretary shall disqualify an oth- ‘‘(a) DEFINITIONS.—For purposes of this sec- tion, partnership, association, joint stock erwise eligible renewable energy generator tion— company, business trust, or any organized from receiving a Renewable Energy Credit if ‘‘(1) The term ‘eligible on-site generating group of persons, whether incorporated or the generator has elected to participate in facility’ means a facility on the site of an not, or a receiver, trustee, or other liqui- net metering under section 612. electric consumer with a peak generating ca- dating agent of any of the foregoing; ‘‘(7) If a generator using renewable energy pacity of 20 kilowatts or less that is fueled ‘‘(5) the term ‘electric utility company’ receives matching funds under section 610, solely by a renewable energy resource. means any company that owns or operates the Secretary shall reduce the number of Re- ‘‘(2) The term ‘renewable energy resource’ facilities used for the generation, trans- newable Energy Credits the generator re- means solar energy, wind, geothermal, or mission, or distribution of electric energy for ceives under paragraph (3) so that the aggre- biomass. sale; gate value of those Credits plus the match- ‘‘(3) The term ‘net metering service’ means ‘‘(6) the terms ‘exempt wholesale gener- ing funds received under section 610 equals service to an electric consumer under which ator’ and ‘foreign utility company’ have the the aggregate value of the Credits the gener- electricity generated by that consumer from same meanings as in sections 32 and 33, re- ator would have received absent this para- an eligible on-site generating facility and de- spectively, of the Public Utility Holding graph. For purposes of this paragraph, the livered to the distribution system through Company Act of 1935, as those sections ex- Secretary shall value a Credit at a price that the same meter through which purchased isted on the day before the effective date of is representative of the price of a Credit in electricity is received may be used to offset this Act; private transactions. In no event shall the electricity provided by the retail electric ‘‘(7) the term ‘gas utility company’ means Secretary use a price to establish values for supplier to the electric consumer during the any company that owns or operates facilities purposes of this paragraph that exceeds the applicable billing period so that an electric used for distribution at retail (other than cost cap established under subsection (f). consumer is billed only for the net elec- the distribution only in enclosed portable ‘‘(e) SALE OR EXCHANGE.—A Renewable En- tricity consumed during the billing period, containers, or distribution to tenants or em- ergy Credit may be sold or exchanged by the ployees of the company operating such fa- entity to whom issued or by any other entity but in no event shall the net be less than zero during the applicable billing period. cilities for their own use and not for resale) who acquires the Credit. A Renewable En- of natural or manufactured gas for heat, ‘‘(b) REQUIREMENT TO PROVIDE NET METER- ergy Credit for any year that is not used to light, or power; ING SERVICE.—Each retail electric supplier satisfy the minimum renewable generation ‘‘(8) the term ‘holding company’ means— shall make available upon request net me- requirement of subsection (a) for that year ‘‘(A) any company that directly or indi- tering service to any retail electric con- may be carried forward for use in another rectly owns, controls, or holds, with power to sumer whom the supplier currently serves or year. vote, 10 percent or more of the outstanding solicits for service. ‘‘(f) RENEWABLE ENERGY CREDIT COST voting securities of a public utility company ‘‘(c) REQUIREMENT TO PROVIDE INTER- CAP.—Beginning January 1, 2000, the Sec- or of a holding company of any public utility CONNECTION.—A distribution utility, as de- retary shall offer Renewable Energy Credits company; and for sale. The Secretary shall charge 1.5 cents fined in section 609, shall permit the inter- ‘‘(B) any person, determined by the Com- for each Renewable Energy Credit sold dur- connection to its distribution system of an mission, after notice and opportunity for ing calendar year 2000, and on January 1 of on-site generating facility if the facility hearing, to exercise directly or indirectly each following year, the Secretary shall ad- meets the safety and power quality stand- (either alone or pursuant to an arrangement just for inflation, based on the Consumer ards established by the Commission. or understanding with one or more persons) Price Index, the price charged per Credit for ‘‘(d) RULES.—The Commission shall pre- such a controlling influence over the man- that calendar year. The Secretary shall de- scribe safety and power quality standards agement or policies of any public utility posit in the Public Benefits Fund established and rules necessary to carry out this section. company or holding company as to make it under section 610 the amount received from a These standards and rules apply to any necessary or appropriate for the rate protec- sale under this subsection. That amount interconnections of an on-site generating fa- tion of utility customers with respect to shall be used for the same purpose as other cility with a distribution system, regardless rates that such person be subject to the obli- amounts in the Public Benefits Fund. of the size of the facility or the type of fuel gations, duties, and liabilities imposed by ‘‘(g) ENFORCEMENT.—The Secretary may used by the facility. this Act upon holding companies; being an action in the appropriate United ‘‘(e) STATE AUTHORITY.—This section does ‘‘(9) the term ‘holding company system’ States district court to impose a civil pen- not preclude a State from imposing addi- means a holding company, together with its alty on a retail electric supplier that does tional requirements consistent with the re- subsidiary companies; not comply with subsection (a). A retail elec- quirements in this section. A State may im- ‘‘(10) the term ‘jurisdictional rates’ means tric supplier who does not submit the re- pose a cap limiting the amount of net meter- rates established by the Commission for the quired number of Renewable Energy Credits ing available in the State.’’. transmission of electric energy, the sale of under subsection (a) is subject to a civil pen- SEC. 304. REFORM OF SECTION 210 OF PURPA. electric energy at wholesale in interstate alty of not more than three times the value Section 210 of PURPA is amended by add- commerce, the transportation of natural gas, of the Renewable Energy Credits not sub- ing the following new subsection after sub- and the sale in interstate commerce of nat- mitted. For purposes of this subsection, the section (l): ural gas for resale for ultimate public con- value of a Renewable Energy Credit is the ‘‘(m) REPEAL OF MANDATORY PURCHASE RE- sumption for domestic, commercial, indus- price of a Credit determined under sub- QUIREMENT.—After the date of enactment of trial, or any other use; section (f) for the year the Credits were not the Comprehensive Electricity Competition ‘‘(11) the term ‘natural gas company’ submitted. Act, an electric utility shall not be required means a person engaged in the transpor- ‘‘(h) INFORMATION COLLECTION.—The Sec- to enter into a new contract or obligation to tation of natural gas in interstate commerce retary may collect the information nec- purchase electric energy under this sec- or the sale of such gas in interstate com- essary to verify and audit— tion.’’. merce for resale;

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00033 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7948 CONGRESSIONAL RECORD — SENATE July 10, 1998 ‘‘(12) the term ‘person’ means an individual to his or her knowledge during the course of ‘‘(1) the United States; or company; examination of books, accounts, memoranda, ‘‘(2) a State or any political subdivision of ‘‘(13) the term ‘public utility’ means any or other records as provided in this section, a State; person who owns or operates facilities used except as may be directed by the Commis- ‘‘(3) any foreign governmental authority for transmission of electric energy or sales of sion or by a court of competent jurisdiction. not operating in the United States; ‘‘(4) any agency, authority, or instrumen- electric energy at wholesale in interstate ‘‘SEC. 4. STATE ACCESS TO BOOKS AND RECORDS. tality of any entity referred to in paragraph commerce; ‘‘(a) IN GENERAL.—Upon the written re- (1), (2), or (3); or ‘‘(14) the term ‘public utility company’ quest of a State commission having jurisdic- ‘‘(5) any officer, agent, or employee of any means an electric utility company or a gas tion to regulate a public utility company in entity referred to in paragraph (1), (2), or (3) utility company; a holding company system, the holding com- acting as such in the course of official duty. ‘‘(15) the term ‘State commission’ means pany or any associate company or affiliate SEC 8. EFFECT ON OTHER REGULATIONS. any commission, board, agency, or officer, by thereof, other than such public utility com- ‘‘Nothing in this Act precludes the Com- whatever name designated, of a State, mu- pany, wherever located, shall produce for in- mission or a State commission from exer- nicipality, or other political subdivision of a spection such books, accounts, memoranda, cising its jurisdiction under otherwise appli- State that, under the laws of such State, has and other records that— cable law to protect utility customers. jurisdiction to regulate public utility com- ‘‘(1) have been identified in reasonable de- pany; tail in a proceeding before the State commis- ‘‘SEC. 9, ENFORCEMENT. ‘‘(16) the term ‘subsidiary company’ of a sion; ‘‘The Commission shall have the same pow- holding company means— ‘‘(2) the State commission deems are rel- ers as set forth in sections 306 through 317 of ‘‘(A) any company, 10 percent or more of evant to costs incurred by such public utility the Federal Power Act (16 U.S.C. 825d–825p) the outstanding voting securities of which company; and to enforce the provisions of this Act. are directly or indirectly owned, controlled, ‘‘(3) are necessary for the effective dis- ‘‘SEC. 10. SAVINGS PROVISIONS. or held with power to vote, by such holding charge of the responsibilities of the State ‘‘(a) IN GENERAL.—Nothing in this Act pro- company; and commission with respect to such proceeding. hibits a person from engaging in or con- ‘‘(B) any person, the management or poli- ‘‘(b) LIMITATION.—Subsection (a) does not tinuing to engage in activities or trans- cies of which the Commission, after notice apply to any person that is a holding com- actions in which it is legally engaged or au- and opportunity for hearing, determines to pany solely by reason of ownership of one or thorized to engage on the effective date of be subject to a controlling influence, di- more qualifying facilities under the Public this Act. rectly or indirectly, by such holding com- Utility Regulatory Policies Act of 1978. ‘‘(b) EFFECT ON OTHER COMMISSION AUTHOR- pany (either alone or pursuant to an ar- ‘‘(c) CONFIDENTIALITY OF INFORMATION.— ITY.—Nothing in this Act limits the author- rangement or understanding with one or The production of books, accounts, memo- ity of the Commission under the Federal more other persons) so as to make it nec- randa, and other records under subsection (a) Power Act (16 U.S.C. 791a et seq.) (including essary for the rate protection of utility cus- shall be subject to such terms and conditions section 301 of that Act) or the Natural Gas tomers with respect to rates that such per- as may be necessary and appropriate to safe- Act (15 U.S.C. 717 et seq.) (including section son be subject to the obligations, duties and guard against unwarranted disclosure to the 8 of that Act). liabilities imposed by this Act upon sub- public of any trade secrets or sensitive com- ‘‘SEC. 11. IMPLEMENTATION. sidiary companies of holding companies; and mercial information. ‘‘Not later that 18 months after the date of ‘‘(17) the term ‘voting security’ means any ‘‘(d) EFFECT ON STATE LAW.—Nothing in enactment of the Comprehensive Electricity security presently entitling the owner or this section shall preempt applicable State Competition Act, the Commission shall— holder thereof to vote in the direction or law concerning the provision of books, ‘‘(1) promulgate such regulations as may management of the affairs of a company. records, or any other information, or in any be necessary or appropriate to implement ‘‘SEC. 3. FEDERAL ACCESS TO BOOKS AND way limit the rights of any State to obtain this Act (other than section 4); and RECORDS. books, records, or any other information ‘‘(2) submit to the Congress detailed rec- ‘‘(a) IN GENERAL.—Each holding company under any other Federal law, contract, or ommendations on technical and conforming and each associate company thereof shall otherwise. amendments to Federal law necessary to maintain, and shall make available to the carry out this Act and the amendments ‘‘(e) COURT JURISDICTION.—Any United Commission, such books, accounts, records, States district court located in the State in made by this Act. memoranda, and other records as the Com- which the State commission referred to in ‘‘SEC. 12. TRANSFER OF RESOURCES. mission deems to be relevant to costs in- subsection (a) is located shall have jurisdic- ‘‘All books and records that relate pri- curred by a public utility or natural gas tion to enforce compliance with this section. marily to the functions transferred to the company that is an associate company of Commission under this Act shall be trans- ‘‘SEC. 5. EXEMPTION AUTHORITY. such holding company and necessary or ap- ferred from the Securities and Exchange ‘‘(a) RULEMAKING.—Not later than 90 days propriate for the protection of utility cus- Commission of the Commission. tomers with respect to jurisdictional rates after the effective date of this Act, the Com- mission shall promulgate a final rule to ex- ‘‘SEC. 13. AUTHORIZATION OF APPROPRIATIONS. for the transmission of electric energy, the ‘‘There are authorized to be appropriated empt from the requirements of section 3 any sale of electric energy at wholesale in inter- such funds as may be necessary to carry out person that is a holding company, solely state commerce, the transportation of nat- this Act. ural gas in interstate commerce, and the sale with respect to one or more— ‘‘(1) qualifying facilities under the Public ‘‘SEC. 14. CONFORMING AMENDMENT TO THE in interstate commerce of natural gas for re- Utility Regulatory Policies Act of 1978; FEDERAL POWER ACT. sale for ultimate public consumption for do- ‘‘Section 318 of the Federal Power Act (16 ‘‘(2) exempt wholesale generators; or mestic, commercial, industrial, or any other ‘‘(3) foreign utility companies. U.S.C. 825q) is repealed.’’. use. ‘‘(b) OTHER AUTHORITY.—If, upon applica- SEC. 402. ELECTRIC COMPANY MERGERS. ‘‘(b) AFFILIATE COMPANIES.—Each affiliate tion or upon its own motion, the Commission Section 203(a) of the FPA is amended by— of a holding company or of any subsidiary finds that the books, records, accounts, (1) striking ‘‘public utility’’ each time it company of a holding company shall main- memoranda, and other records of any person appears and inserting in its place ‘‘person or tain, and make available to the Commission, are not relevant to the jurisdictional rates of electric utility company’’; such books, accounts, memoranda, and other (2) inserting after the first sentence the a public utility or natural gas company, or if records with respect to any transaction with following: ‘‘Except as the Commission other- the Commission finds that any class of another affiliate, as the Commission deems wise provides, a holding company in a hold- transactions is not relevant to the jurisdic- relevant to costs incurred by a public utility ing company system that includes an elec- tional rates of a public utility or natural gas or natural gas company that is an associate tric utility company shall not, directly or in- company, the Commission shall exempt such company of such holding company and nec- directly, purchase, acquire, or take any secu- person or transaction from the requirements essary or appropriate for the protection of rity of an electric utility company or of a of section 3. utility customers with respect to jurisdic- holding company in a holding company sys- tional rates. ‘‘SEC. 6. AFFILIATE TRANSACTIONS. tem that includes an electric utility com- ‘‘(c) HOLDING COMPANY SYSTEMS.—The ‘‘Nothing in this Act shall preclude the pany, without first securing an order of the Commission may examine the books, ac- Commission or a State commission from ex- Commission authorizing it to do so.’’; counts, memoranda, and other records of any ercising its jurisdiction under otherwise ap- (3) striking ‘‘hearing’’ in the last sentence company in a holding company system, or plicable law to determine whether a public and inserting ‘‘oral or written presentation any affiliate thereof, as the Commission utility company, public utility, or natural of views’’; and deems relevant to costs incurred by a public gas company may recover in rates any costs (4) adding at the end the following: ‘‘For utility or natural gas company within such of an activity performed by an associate purposes of this subsection, the terms ‘elec- holding company system and necessary or company, or any costs of goods or services tric utility company’, ‘holding company’, appropriate for the protection of utility cus- acquired by such public utility company and ‘holding company system’ have the tomers with respect to jurisdictional rates. from an associate company. meaning given them in section 2 of the Pub- ‘‘(d) CONFIDENTIALITY.—No member, offi- ‘‘SEC. 7. APPLICABILITY. lic Utility Holding Company Act of 1998. Not- cer, or employee of the Commission shall di- ‘‘No provision of this Act shall apply to, or withstanding section 201(b)(1), generation fa- vulge any fact or information that may come be deemed to include— cilities are subject to the jurisdiction of the

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00034 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7949 Commission for purposes of this section, ex- TITLE V—ELECTRIC RELIABILITY governance, procedures, and funding mecha- cept as the Commission otherwise may pro- SEC. 501. ELECTRIC RELIABILITY ORGANIZATION nism, and shall file the standards in effect vide.’’. AND OVERSIGHT. under subsection (c). SEC. 403. REMEDIAL MEASURES FOR MARKET (a) The FPA is amended by adding the fol- ‘‘(3) The Commission shall provide public POWER. lowing new section after section 217 as added notice of the application and the standards The FPA is amended by adding the fol- by section 403 of this Act: filed under this subsection and afford inter- ested parties an opportunity to comment on lowing new section after section 216 as added ‘‘ELECTRIC RELIABILITY ORGANIZATION AND the application and filing. by section 203 of this Act: OVERSIGHT ‘‘(4) The Commission shall register the or- ‘‘REMEDIAL MEASURES FOR MARKET POWER ‘‘SEC. 218. (a) DEFINITION.—As used in this ganization if the Commission determines ‘‘SEC. 217. (a) DEFINITIONS.—As used in this section: that the organization— section— ‘‘(1) The term ‘bulk-power system’ means ‘‘(A) has the ability to provide for an ade- ‘‘(1) ‘market power’ means the ability of an all facilities and control systems necessary quate level of reliability of the bulk-power electric utility profitably to maintain prices for operating the interconnected trans- system; above competitive levels for a significant pe- mission grids, including high-voltage trans- ‘‘(B) permits voluntary membership to any riod of time, and mission lines; substations; control centers; users of the bulk-power system or interested ‘‘(2) ‘notice of retail competition’ has the communications, data, and operations plan- customer class or public interest group; meaning provided under section 3(22) of the ning facilities; and generating units nec- ‘‘(C) assures fair representation of its Public Utility Regulatory Policies Act of essary to maintain transmission system reli- members in the selection of its directors and 1978. ability. fair management of its affairs, taking into ‘‘(2) The term ‘electric reliability organiza- ‘‘(b) COMMISSION JURISDICTIONAL SALES.— account the need for efficiency and effective- tion’ or ‘organization’ means the organiza- (1) If the Commission determines that there ness in decisionmaking and operations and tion registered by the Commission under are markets in which a public utility that the requirements for technical competency subsection (d)(4). owns or controls generation facilities has in the development of standards and the ex- ‘‘(3) The term ‘system operator’ means any market power in sales of electric energy for ercise of oversight of the reliability system, entity that operates or is responsible for the resale in interstate commerce, the Commis- and assures that no single class of market operation of the bulk-power system, includ- sion shall order that utility to submit a plan participants has the ability to control the ing control area operators, independent sys- for taking necessary actions to remedy its organization’s discharge of its responsibil- tem operators, transmission companies, market power, which may include, but is not ities; transmission system operators, and regional limited to, conditions respecting operation ‘‘(D) assesses reasonable dues, fees, or security coordinators. other charges necessary to support the orga- or dispatch of generation, independent oper- ‘‘(4) The term ‘user of the bulk-power sys- ation of transmission facilities, or divesti- nization and the purposes of this section and tem’ means any entity that sells, purchases, has a funding mechanism that is fair and not ture of ownership of one or more generation or transmits electric power over the bulk- facilities. unduly discriminatory; power system; owns operates or maintains ‘‘(E) establishes procedures for standards ‘‘(2) In consultation with the Attorney facilities of the bulk-power system; or is a development that provide reasonable notice General and the Federal Trade Commission, system operator. and opportunity for public comment, taking the Commission shall review the plan to de- ‘‘(b) COMMISSION AUTHORITY.—(1) The Com- into account the need for efficiency and ef- termine if its implementation would ade- mission has jurisdiction over the electric re- fectiveness in decisionmaking and oper- quately mitigate the adverse competitive ef- liability organization, all systems operators, ations and the requirements for technical fects of market power. The Commission may and all users of the bulk-power system for competency in the development of standards; approve the plan with or without modifica- purposes of approving and enforcing compli- ‘‘(F) establishes fair and impartial proce- tion. The plan takes effect upon approval by ance with standards in the United States. dures for enforcement of standards, includ- the Commission. Notwithstanding any State ‘‘(2) The Commission may register an elec- ing penalties; limitation of activity, func- law, regulation, or order to the contrary and tric reliability organization and approve and tion, or operations; or other appropriate notwithstanding any other provision of this oversee the activities in the United States of sanctions; Act or any other law, the Commission has that electric reliability organization. ‘‘(G) establishes procedures for notice and jurisdiction to order divestiture or other ‘‘(c) COMPLIANCE WITH EXISTING RELI- opportunity for public observation of all transfer of control of generation assets pur- ABILITY STANDARDS.—A user of the bulk- meetings, except that the procedures for suant to the plan. power system shall comply with standards public observation may include alternative ‘‘(c) STATE JURISDICTIONAL SALES.—(1) If a established by the North American Electric procedures for emergencies or for the discus- State commission that has filed a notice of Reliability Council and the regional reli- sion of information the directors determine retail competition has reason to believe that ability councils that exist on the date of en- should take place in closed session, including an electric utility doing business in the actment of the Comprehensive Electricity the discussion of information with respect to State has market power, the State commis- Competition Act, consistent with any agree- proposed enforcement or disciplinary action; sion may apply for an order under this sec- ment entered into under subsection (f). Each and tion. standard remains in effect unless modified ‘‘(H) addresses other matters that the ‘‘(2) If, after receipt of such an application under this subsection or superseded by Commission considers necessary or appro- and after notice and opportunity for a hear- standards approved under subsection (e). The priate. ing, the Commission determines that the Commission, upon its own motion or upon ‘‘(5) The Commission shall approve only electric utility has market power in the request and consistent with any agreements one electric reliability organization. If the sales of electric energy sold at retail in the entered into pursuant to subsection (f), may Commission receives timely applications State, this market power would adversely af- modify or suspend the application of a stand- from two or more applicants that satisfy the fect competition in the State, and the State ard and may enforce a standard exercising requirements of this subsection, the Com- commission lacks authority to effectively the same authority that the electric reli- mission shall approve only the application it remedy such market power, the Commission ability organization may exercise under sub- concludes will best ensure a reliable bulk- may order the electric utility to submit a section (k). The North American Electric Re- power system. plan for taking necessary actions to remedy liability Council and the regional reliability ‘‘(e) REVIEW AND CHANGES OF MODIFICA- the electric utility’s market power. These councils may monitor compliance with these TIONS TO STANDARDS.—(1) The Commission actions may include conditions respecting standards. shall review the standards submitted under operation or dispatch of generation, com- ‘‘(d) ORGANIZATION REGISTRATION AND ES- subsection (d)(2), concurrent with its review petitive procurement of all generation ca- TABLISHMENT OF STANDARDS.—(1) Not later of the application under subsection (d), and pacity or energy, independent operation of than 90 days after the date of enactment of each standard remains effective if the Com- transmission facilities, or divestiture of this section, the Commission shall issue pro- mission determines that it is just, reason- ownership of one or more generation facili- posed rules specifying the procedures and re- able, and not unduly discriminatory or pref- ties of the electric utility. quirements for an organization to apply for erential; is in the public interest; and pro- ‘‘(3) After consultation with the Attorney registration and file existing reliability vides for an adequate level of reliability of General and the Federal Trade Commission, standards. The Commission shall provide the bulk-power system. the Commission may approve the plan with adequate opportunity for comment on the ‘‘(2) With respect to a standard that the or without modification. The plan shall take proposed rules. The Commission shall issue Commission determines should not remain effect upon approval by the Commission. final rules under this subsection within 180 effective under paragraph (1), the Commis- ‘‘(4) Notwithstanding any State law, regu- days after the date of enactment of this sec- sion shall refer that standard to the electric lation, or order to the contrary and notwith- tion. reliability organization for development of a standing any other provision of this Act or ‘‘(2) Following the issuance of final Com- new or modified standard under the organi- any other law, the Commission has jurisdic- mission rules under paragraph (1), an electric zation’s procedures as approved by the Com- tion to order divestiture or other transfer of reliability organization may apply for reg- mission. control of generation assets pursuant to the istration with the Commission. The organi- ‘‘(3)(A) The electric reliability organiza- plan.’’. zation shall include in its application its tion shall file with the Commission any new

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The action shall comment, that the standard or modification electric reliability organization amend its remain in effect or remain suspended until is just, reasonable, and not unduly discrimi- procedures, governance, or funding if the the Commission, after notice and oppor- natory or preferential; is in the public inter- Commission considers the amendment nec- tunity for comment, sets aside, modifies, or est; and provides for an adequate level of re- essary or appropriate to ensure the fair ad- reinstates the action. liability of the bulk-power system, taking ministration of the organization, conform ‘‘(3) The Commission, on its own motion, into account the purposes of this section to the organization to the requirements of this may impose a penalty, issue an injunction, assure reliability of the bulk-power system section, or further the purposes of this sec- or impose other disciplinary action the Com- and giving due weight to the technical com- tion, consistent with any agreement entered mission finds appropriate against a user of petency of the registered electric reliability into under subsection (f). The organization the bulk power system located in the United organization, and is consistent with any shall file the amendment in accordance with States if the Commission finds, after notice agreement entered into pursuant to sub- paragraph (1). and opportunity for a hearing, that the user section (f). ‘‘(h) ORGANIZATION DELEGATIONS OF AU- has violated a procedure or standard of the ‘‘(B) Any standard or modification that THORITY.—(1) The organization may enter electric reliability organization. does not become effective under this para- into an agreement under which it may dele- ‘‘(l) ADEQUACY, RELIABILITY, AND RE- graph shall be referred to the electric reli- gate some or all of its authority to any per- PORTS.—The electric reliability organization ability organization for development of a son. shall conduct periodic assessments of the re- new or modified standard under the organi- ‘‘(2) The organization shall file with the liability and adequacy of the interconnected zation’s procedures as approved by the Com- Commission any agreement entered into bulk-power system in North America and under this subsection and any information mission. shall report annually to the Commission its the Commission requires with respect to the ‘‘(C) The Commission, on its own motion, findings and recommendations for moni- person to whom authority is to be delegated. may require that the electric reliability or- toring or improving system reliability or The Commission may approve the agree- ganization develop a new or revised standard adequacy.’’. ment, following public notice and an oppor- if the Commission considers a new or revised (b) Sections 316 and 316A of the FPA are tunity for comment, if it finds that the standard necessary or appropriate to further amended by striking ‘‘or 214’’ each place it agreement is consistent with the require- the purposes of this section. The organiza- appears and inserting ‘‘214, or 218’’. tion shall file the new or revised standard in ments of this section. The agreement shall not take effect without Commission ap- SEC. 502. STATUTORY PRESUMPTION. accordance with this paragraph. (a) FEDERAL POWER ACT.—Any reliability ‘‘(D) On its own motion or at the request of proval. ‘‘(3)(A) The Commission may direct a standard developed by the reliability organi- the electric reliability organization, the modification to or suspend an agreement en- zation, and any actions taken in good faith Commission may develop and, consistent tered into under this subsection if it deter- to comply with a reliability standard under with any agreement under subsection (f), re- mines that— section 218 of the FPA, are rebuttably pre- quire immediate implementation by the or- ‘‘(i) the person to whom authority is dele- sumed just and reasonable and not unduly ganization of a new or modified standard if it gated no longer has the capacity to carry out discriminatory or preferential for purposes determines that immediate implementation effectively or efficiently the person’s imple- of that Act. is required to avoid a significant disruption mentation responsibilities under that agree- (b) ANTITRUST LAWS.—Notwithstanding of reliability that would affect public safety ment, or section 703 of this Act, the following activi- or welfare. If immediate implementation is ‘‘(ii) the rules, practices, or procedures of ties are rebuttably presumed to be in compli- required, the Commission shall not delay im- the person to whom authority is delegated ance with the antitrust laws of the United plementation for notice and comment but no longer provide for fair and impartial dis- States: shall publish the standard for notice and charge of the person’s implementation re- (1) activities undertaken by the electric re- comment in a timely manner. sponsibilities under the agreement. liability organization under section 218 of ‘‘(4) A user of the bulk power system shall ‘‘(B) If the agreement is suspended, the the FPA or delegated person operating under comply with any new or modified standard electric reliability organization shall assume an agreement in effect under section 218(h) of that takes effect under paragraph (1) or (3). the previously delegated responsibilities. the FPA, and ‘‘(f) COORDINATION WITH CANADA AND MEX- ‘‘(i) ORGANIZATION MEMBERSHIP.—Every (2) activities of a member of the electric ICO.—The United States may enter into system operator shall be a member of the reliability organization in pursuit of organi- international agreements with the govern- electric reliability organization. The organi- zation objectives under section 218 of the ments of Canada and Mexico to provide for zation rules shall provide for voluntary FPA undertaken in good faith under the effective compliance with standards and to membership to other users of the bulk-power rules of the organization. provide for the effectiveness of the electric system and any interested customer class or reliability organization in carrying out its public interest group. A person required to TITLE VI—ENVIRONMENTAL PROTECTION mission and responsibilities. become a member of the organization who SEC. 601. NITROGEN OXIDES CAP AND TRADE ‘‘(g) CHANGES IN ORGANIZATION PROCE- fails to do so is subject to sections 314 and PROGRAM. DURES, GOVERNANCE, OR FUNDING.—(1) The 316A of this Act upon notification from the (a) PURPOSE.—The purpose of this section electric reliability organization shall file organization to the Commission. is to facilitate the implementation of a re- with the Commission any proposed change in ‘‘(j) FAILURE TO APPLY FOR REGISTRA- gional strategy for reducing ambient con- its procedures, governance, or funding and TION.—(1) If an organization fails to apply for centrations of ozone through regional reduc- accompany the filing with an explanation of registration with the Commission within six tions in emissions of NOX. the basis and purpose for the change. months after the issuance date of final Com- (b) DEFINITIONS.—For purposes of this sec- ‘‘(2)(A) A proposed procedural change may mission rules for such a filing, or the Com- tion— take effect 90 days after filing with the Com- mission does not register an agreement with- (1) the term ‘‘Administrator’’ means the mission if the change— in twelve months after the issuance date of Administrator of the Environmental Protec- ‘‘(i) constitutes a statement of policy, final Commission rules for such a filing, the tion Agency, practice, or interpretation with respect to Commission shall convene a process to reg- (2) the term ‘‘NOX’’ means oxides of nitro- the meaning, administration, or enforcement ister an electric reliability organization. gen, of an existing procedure; or ‘‘(2) Until an electric reliability organiza- (3) the term ‘‘NOX allowance’’ means an au- ‘‘(ii) is concerned solely with administra- tion is registered, the Commission has the thorization to emit a specified amount of tion of the organization. same authority to enforce existing or modi- NOX into the atmosphere, and A proposed procedural change that does not fied standards that the electric reliability (4) the term ‘‘NOX allowance cap and trade qualify under clause (i) or (ii) takes effect organization has under subsection (k). program’’ means a program under which, in only upon a finding by the Commission that ‘‘(k) DISCIPLINARY ACTION AND PEN- accordance with regulations issued by the the change is just, reasonable, not pref- ALTIES.—(1) Consistent with the range of ac- Administrator, the Administrator estab- erential, and in the public interest. tions approved by the Commission under lishes the maximum number of NOX allow- ‘‘(B) The Commission, by order, either subsection (d)(4)(F), the electric reliability ances that may be allocated for specified upon complaint or upon its own motion, may organization may impose a penalty, take in- control periods, allocates or authorizes a suspend an existing procedure or procedural junctive action, or impose other disciplinary State to allocate NOX allowances, allows the change if its determines the procedure or the action the organization finds appropriate transfer of NOX allowances for use in States proposed change is unjust, unreasonable, un- against a user of the bulk-power system lo- subject to such a program, requires moni- duly discriminatory or preferential, or is cated in the United States if the organiza- toring and reporting of NOX emissions that otherwise not in the public interest. tion finds, after notice and opportunity for a meet the requirements of section 412 of the ‘‘(3) A change in the organization’s govern- hearing, that the user has violated an orga- Clean Air Act, and prohibits, and requires ance or funding does not take effect unless nization procedure or standard. penalties and offsets for, any emissions of

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NOX in excess of the number of NOX allow- ments, generation and transmission capacity Section 102. Authority to impose reciprocity re- ances held. additions and retirements, and fuel suppliers quirements (c) PROGRAM IMPLEMENTATION.—(1) If the and stocks for electric generation; This section would amend PURPA to per- Administrator determines under section ‘‘(G) electric energy efficiency programs mit a State that has filed a notice indicating 110(a)(2)(D) of the Clean Air Act that any and services and their impacts on energy it is implementing retail competition to pro- source or other type of emissions activity in consumption; hibit a distribution utility that is not under ‘‘(H) the development and use of renewable a State emits NOX in amounts that will con- the ratemaking authority of the State and electric energy resources; and tribute significantly to nonattainment in, or that has not implemented retail competition ‘‘(I) research, development and demonstra- interfere with maintenance by, any other from selling electricity to the consumers tion activities to improve the nation’s elec- State with respect to any national ambient covered by the State’s notice. This section air quality standard for ozone, the Adminis- tric system. ‘‘(2) In carrying out the purposes of this also would permit a nonregulated utility trator shall establish by regulation, within that has filed a notice of retail competition 12 months of the determination for primary subsection, the Administrator shall take into account reporting burdens and the pro- to prohibit any other utility that has not im- standards and as expeditiously as practicable plemented retail competition from selling for secondary standards, and shall admin- tection of proprietary information as re- quired by law.’’. electricity to the consumers covered by the ister a NOX allowance cap and trade program nonregulated utility’s notice. in all States in which such a source or other SEC. 703. ANTITRUST SAVINGS CLAUSE. type of emissions activity is located. This Act and the amendments made by Section 103. Consumer information (2) Any NOX allowance cap and trade pro- this Act shall not be construed to modify, This section would amend PURPA to per- gram shall contribute to providing for emis- impair, or supersede the operation of the mit the Secretary of Energy to required all sions reductions that mitigate adequately antitrust laws. For purposes of this section, suppliers of electricity to disclose informa- the contribution or interference and shall be ‘‘antitrust laws’’ has the meaning given it in tion on price, terms, and conditions of sale; taken into account by the Administrator in subsection (a) of the first section of the Clay- the type of energy resource used to generate determing compliance with section ton Act (15 U.S.C. 12(a)), except that it in- the electric energy; and the environmental 110(a)(2)(D) of the Clean Air Act. cludes section 5 of the Federal Trade Com- attributes of the generation, including air (3) For purposes of sections 113, 114, 304, mission Act (15 U.S.C. 45), to the extent that emissions characteristics. This requirement and 307 of the Clean Air Act, regulations pro- section 5 applies to unfair methods of com- would be enforceable by the Federal Trade mulgated under this section shall be treated petition. Commission and by individual States. as regulations promulgated under title IV of SEC. 704. ELIMINATION OF ANTITRUST REVIEW TITLE II—FACILITATING STATE AND REGIONAL BY THE NUCLEAR REGULATORY the Clean Air Act (entitled Acid Deposition REGULATION Control). A requirement of regulations pro- COMMISSION. mulgated uner this section is considered an Section 105 of the Atomic Energy Act of Section 201. Clarification of State and Federal ‘‘emission standard’’ or ‘‘emission limita- 1954 (42 U.S.C. 2135) is amended by adding the authority over retail transmission services tion’’ within the meaning of section 302 of following after subsection c.: Subsection (a) would amend section 201(b) the Clean Air Act and an ‘‘emission standard ‘‘d. Subsection 105 c. does not apply to an of the Federal Power Act (FPA) to clarify or limitation under this Act’’ within the application for a license to construct or op- that the FPA does not prevent States from meaning of section 304 of the Clean Air Act. erate a utilization or production facility ordering retail competition or imposing con- under section 103 or 104 b. following the date TITLE VII—OTHER REGULATORY ditions, such as a fee, on the receipt of elec- of enactment of this subsection. This Act PROVISIONS tric energy by an ultimate customer within does not affect the Commission’s authority the State. This section also would clarify SEC. 701. TREATMENT OF NUCLEAR DECOMMIS- to enforce antitrust conditions included in that FERC has jurisdiction over rates, SIONING COSTS IN BANKRUPTCY. licenses issued under section 103 or 104 b. be- terms, and conditions for unbundled retail Section 523 of title 11, United States Code fore the date of enactment of this sub- transmission. (section 523 of the Bankruptcy Code of 1978), section. Subsection (b)(1) would amend section 206 is amended by adding the following new sub- SEC. 705. ENVIRONMENTAL LAWS SAVINGS section after subsection (e): of the FPA to reinforce FERC authority to CLAUSE. require public utilities to provide open ac- ‘‘(f) Obligations to comply with, and claims Nothing in this Act alters or affects envi- resulting from compliance with, Nuclear cess transmission services and permit recov- ronmental requirements imposed by Federal ery of stranded costs. This section also Regulatory Commission regulations or or- or State law, including, but not limited to, ders governing the decontamination and de- would provide retroactive effect to Commis- the Clean Air Act (42 U.S.C. 7401 et seq.); the sion Order No. 888. commissioning of nuclear power reactors li- Federal Water Pollution Control Act (33 censed under section 103 or 104b. of the Subsection (b)(2) would amend section U.S.C. 1251 et seq.); the Comprehensive Envi- 212(h) of the FPA to clarify FERC authority Atomic Energy Act of 1954 (42 U.S.C. 2133 and ronmental Response, Compensation, and Li- 2134(b)) shall be given priority and shall not to order retail transmission service to com- ability Act of 1980 (42 U.S.C. 9601 et seq.); the plete an authorized retail sale. be rejected, avoided, or discharged under Federal Power Act (16 U.S.C. 791a et seq.); title 11 of the United States Code or in any Subsection (b)(3) would make conforming and the Endangered Species Act (16 U.S.C. amendments to the FPA. liquidation, reorganization, receivership, or 1531 et seq.). other insolvency proceeding under State or Subsection (c) would amend the FPA to ex- tend FERC’s jurisdiction over transmision Federal law.’’. SECTION-BY-SECTION ANALYSIS OF THE COM- services to municipal and other publicly- SEC. 702. STUDY OF IMPACTS OF COMPETITION PREHENSIVE ELECTRICITY COMPETITION ACT IN ELECTRICITY MARKETS BY THE owned utilities, cooperatives, the Tennessee TITLE 1—RETAIL ELECTRIC SERVICE ENERGY INFORMATION ADMINIS- Valley Authority, and the Federal Power TRATION. Section 101. Retail competition Marketing Administrations. With this Section 205 of the Department of Energy This section would amend the Public Util- amendment, FERC would assure that the Organization Act (42 U.S.C. 7135) is amended ity Regulatory Policies Act of 1978 (PURPA) transmission rates, terms, and conditions of by adding after subsection (l) the following to provide for customer choice through a these entities are not unjust or unreason- new subsection: flexible mandate. This provision would re- able, taking into consideration the other re- ‘‘(m)(1) The Administrator shall collect quire each distribution utility to permit all sponsibilities of these entities, but this and publish information regarding the im- of its retail customers to purchase power amendment would not expand FERC’s au- pact of wholesale and retail competition on from the supplier of their choice by January thority over the power business of these en- the electric power industry. The Adminis- 1, 2003, but would permit a State regulatory tities. However, FERC could suspend or mod- trator shall prescribe forms for collecting authority (with respect to a distribution ify application of FERC’s open access trans- this information. Information to be collected utility for which it has ratemaking author- mission rules to the Tennessee Valley Au- may include, but is not limited to— ity) or a non-regulated utility to opt out of thority, the Federal Power Marketing Ad- ‘‘(A) the ownership and control of electric this retail competition mandate if it finds, ministrations, and rural electric coopera- generation, transmission, distribution, and on the basis on a public proceeding, that con- tives with outstanding loans from the Rural related facilities; sumers of the utility would be served better Utilities Service, and their wholesale re- ‘‘(B) electricity consumption and demand; by the current monopoly system or an alter- quirements customers, if FERC finds that ‘‘(C) the transmission, distribution, and de- native State-crafted retail competition plan. adequate stranded cost recovery mechanisms livery of electric services; The section also would establish a Federal are not yet available for those entities. ‘‘(D) the price of competitive electric serv- policy that utilities should be able to recover It should be noted that with regard to the ices; prudently incurred, legitimate, and Federal Power Marketing Administrations ‘‘(E) the costs, revenues, and rates of regu- verifiable retail stranded costs that cannot and TVA, the Administration considers this lated electric services; be mitigated reasonably, but States would subsection as placeholder language pending ‘‘(F) the reliability of the electric genera- continue to determine recovery of retail development of language that more thor- tion and transmission system, including the stranded costs under State law. This section oughly addresses the question of the appro- availability of adequate generation and does not retrocede to States authority over priate role of the Federal power marketing transmission capacity to meet load require- Federal enclaves. agencies in the new competitive market.

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00037 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7952 CONGRESSIONAL RECORD — SENATE July 10, 1998 Section 202. Interstate compacts on regional Secretary of Energy would determine the re- tion and the activities of a member of the or- transmission planing quired annual percentage, which would be ganization in pursuit of organization objec- This section would amend the FPA to per- greater than the baseline percentage but less tives are in compliance with the antitrust mit FERC to approve interstate compacts than 5.5%. In 2010–2015, the percentage would laws of the United States. that establish regional transmission plan- be 5.5%. The RPS credits would be subject to TITLE VI—ENVIRONMENTAL PROTECTION a cost cap of 1.5 cents per kilowatt hour. ning agencies if the agencies meet certain Section 601. Nitrogen oxides trading program criteria relating to their governance (e.g., Section 303. Net metering This section would clarify Environmental uniform authority from each participating This section would amend PURPA by re- Protection Agency authority to require a state and a workable governance protocol to quiring all retail electric suppliers to make cost-effective interstate trading system for avoid regulatory stalemate). This section available to consumers ‘‘net metering serv- nitrogen oxide pollutant reductions address- also would permit FERC to terminate a com- ice,’’ through which a consumer would offset ing the regional transport contributions pact if it is inconsistent with the public in- purchases of electric energy from the sup- needed to attain and maintain the National terest or if there are other specified reasons. plier with electric energy generated by the Ambient Air Quality Standards for ozone. Section 203. Backup authority to impose a consumer at a small, on-site renewable gen- TITLE VII—OTHER REGULATORY PROVISIONS charge on an ultimate consumer’s receipt of erating facility and delivered to the distribu- electric energy tion system. Section 701. Treatment of nuclear decommis- sioning costs in bankruptcy This section would amend the FPA to rein- Section 304. Reform of section 210 of PURPA This section would amend the Bankruptcy force FERC’s authority to provide a back-up This section would repeal prospectively the Act to provide that decommissioning costs for the recovery of retail stranded costs and ‘‘must buy’’ provision of section 210 of be a nondischargeable priority claim. public benefits program if a State, or a util- PURPA. Existing contracts would be pre- ity that has outstanding loans made or guar- served, and the other provisions of section Section 702. Study of impacts of competition in anteed by the Rural Utilities Service, has 210 would continue to apply. electricity markets by the Energy Informa- tion Administration filed a retail competition notice and con- TITLE IV—REGULATION OF MERGERS AND cludes that such charges are appropriate but CORPORATE STRUCTURE This section would amend the Department lacks authority to impose a charge on the Section 401. Reform of holding company regula- of Energy Organization Act to direct the En- consumer’s receipt of electric energy. tion under PUHCA ergy Information Administration to collect Section 204. Authority to establish and require and publish information on the impacts of This section would repeal the Public Util- independent system operation wholesale and retail competition. ity Holding Company Act of 1935 (PUHCA) This section would amend section 202 of and would enact in its place the Public Util- Section 703. Antitrust savings clause the FPA by permitting FERC to establish an ity Holding Company Act of 1998. Under this This section would provide that nothing in entity for independent operation and control Act, FERC and State commissions would be this Act would supersede the operation of of interconnected transmission facilities and given greater access to the books and records the antitrust laws. to require a transmitting utility to relin- of holding companies and the affiliates of Section 704. Elimination of antitrust review by quish control over operation of its trans- public utilities within the holding compa- the Nuclear Regulatory Commission mission facilities to an independent system nies. operator. This section would eliminate Nuclear Reg- Section 402. Electric company mergers ulatory Commission antitrust review of an TITLE III—PUBLIC BENEFITS This section would amend section 203(a) of application for a license to construct or op- Section 301. Public benefits fund the FPA by conferring on FERC jurisdiction erate a commercial utilization or production This section would amend PURPA by es- over the merger or consolidation of elec- facility. tablishing a Public Benefits Fund adminis- tricity utility holding companies and gen- Section 705. Environmental law savings clause tered by a Federal-State Joint Board that eration-only companies. This section also This section would provide that nothing in would disburse matching funds to partici- would streamline FERC’s review of mergers. this Act would alter environmental require- pating States and tribal governments to Section 403. Remedial measures for market ments of Federal or State law. carry out programs that support affordable power electricity service to low-income customers; This section would amend the FPA to au- THE SECRETARY OF ENERGY, implement energy conservation and energy thorize FERC, on its own motion or upon Washington, DC, June 26, 1998. efficiency measures and energy management complaint, to remedy market power in Hon. ALBERT GORE, practices; provide consumer education; and wholesale markets. This section also would President of the Senate, develop emerging electricity generation authorize FERC, upon petition from a State, Washington, DC. technologies. Funds for the Federal share to remedy market power in retail markets if DEAR MR. PRESIDENT: Enclosed is legisla- would be collected from generators, which, retail competition is being implemented, the tion to bring competition and consumer as a condition of interconnection with facili- State finds market power, and the State has choice to the electricity industry, the ‘‘Com- ties of any transmitting utility, would pay insufficient authority to remedy the market prehensive Electricity Competition Act’’ to the transmitting utility a charge, not to power. In these circumstances, FERC could (‘‘CECA’’). It is based upon the legislative exceed one mill per kilowatt-hour. The require generators with market power to specifications the Administration provided transmitting utility then would pay the col- submit a plan to mitigate market power, Congress on March 25, 1998, when we released lected amounts to a fiscal agent for the which FERC could approve with or without our Comprehensive Electricity Competition Fund. States and tribal governments would modification. This section would authorize Plan. have the flexibility to decide whether to FERC to order divestiture to the extent nec- The basic Federal regulatory framework seek funds and how to allocate funds among essary to mitigate market power. for the electric power industry was estab- public purposes. In addition, a rural safety lished with the enactment of the Public Util- net would be created if the Secretary of En- TITLE V—ELECTRIC RELIABILITY ity Holding Company Act of 1935 and Title II ergy determines, in consultation with the Section 501. Electric reliability organization and of the Federal Power Act. These statutes are Secretary of Agriculture, that significant ad- oversight premised upon State-regulated monopolies verse economic effects on rural areas have This section would amend the FPA to give rather than competition. Now, however, eco- occurred or will occur as a result of electric FERC authority to register and oversee an nomic forces are beginning to forge a new restructuring. electric reliability organization to prescribe era in the electricity industry, one in which and enforce mandatory reliability standards. Section 302. Federal renewable portfolio stand- generation prices will be determined pri- Membership in the organization would be ard marily by the market rather than by legisla- open to all entities that use the bulk-power This section would amend PURPA to es- tion and regulation. Consequently, federal system and would be required for all entities tablish a Federal Renewable Portfolio Stand- electricity laws need to be updated so that critical to system reliability. Until the reli- ard (RPS) to guarantee that a minimum they stimulate, rather than stifle, competi- ability organization is registered, existing level of renewable generation is developed in tion. the United States. The RPS would require standards established by the North American In this new era of retail competition, con- electricity sellers to have renewable credits Electric Reliability Council and regional re- sumers will choose their electricity supplier. based on a percentage of their electricity liability councils would be mandatory and The Department of Energy estimates that in sales. The seller would receive credits by enforced by the Commission. making these choices, consumers will save generating power from non-hydroelectric re- Section 502. Statutory presumption at least $20 billion a year on their electricity newable technologies, such as wind, solar, This section would establish a rebuttable bills. This translates into direct savings to biomass, or geothermal generation; pur- presumption that actions taken to comply the typical family of four of $104 per year chasing credits from renewable generators; with the mandatory reliability standards and additional indirect savings from lower or a combination of these. The RPS require- would be deemed just and reasonable for pur- costs of other goods and services of $128 per ment for 2000–2004 would be set at the cur- poses of the FPA. This section would also es- year. Competition will also spark innovation rent ratio of RPS-eligible generation to re- tablish a rebuttable presumption that the in the American economy and create new in- tail electricity sales. Between 2005–2009, the activities of an electric reliability organiza- dustries, jobs, products, and services, just as

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00038 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7953 telecommunications reform spawned cellular spending legislation meet a pay-as-you-go away from the Government Printing phones and other new technologies. (PAYGO) requirement. That is, no such bill Office, which was established for the Competition will also benefit the environ- should result in a net budget cost; and if it very purpose of making these docu- ment. Under retail competition, the market does, it could contribute to a sequester if it ments available. rewards a generator who wrings as much en- is not fully offset. The net PAYGO effect of ergy as possible from every unit of fuel. More this legislative proposal is currently esti- In part, this migration occurred be- efficient fuel use means lower emissions. In mated to be zero. cause of evolutions in technology. In addition, competition provides increased op- The Office of Management and Budget ad- part, this migration occurred because portunities to sell energy efficiency services vises that there is no objection to the pres- of the identified weakness and constant and green power. Moreover, CECA’s renew- entation of this legislation to the Congress inability of the Joint Committee on able portfolio standard and enhanced public and that it is in accord with the program of Printing to enforce the work of the benefit funding will lead to substantial envi- the President. ronmental benefits. The Department esti- Sincerely, agencies and the departments of the mates that CECA will reduce greenhouse gas FEDERICO PEN˜ A. executive branch in telling them to emissions by 25 to 40 million metric tons by procure and disseminate their publica- 2010. By Mr. WARNER: tions through the GPO. In part, this The following are key provisions of CECA: S. 2288. A bill to provide for the re- migration occurred because of the open All electric consumers would be able to form and continuing legislative over- choose their electricity supplier by January encouragement by the current adminis- 1, 2003, but a State may opt out of retail sight of the production, procurement, tration—through decisions and through competition if it believes its consumers dissemination, and permanent public the National Performance Review would be better off under the status quo or access of the Government’s publica- known as the NPR—for agencies to use an alternative State-crafted retail competi- tions, and for other purposes; to the printing and dissemination facilities tion plan. Committee on Rules and Administra- other than the Government Printing States would be encouraged to allow the tion. Office. And in part, this migration oc- recovery of prudently incurred, legitimate, WENDELL H. FORD GOVERNMENT PUBLICATIONS and verifiable retail stranded costs that can- curred because the GPO has been slow ACT OF 1998 not be reasonably mitigated. to change and be more responsive to All participants in transactions on the Mr. WARNER. Now, Mr. President, it the ever-changing agency and Congres- transmission grid would comply with manda- is my distinct pleasure and honor, to- sional needs, demands, and expecta- tory reliability standards. The Federal En- gether with the distinguished ranking tions. ergy Regulatory Commission (FERC) would member of the Rules Committee, which When I make reference to agencies approve and oversee a private, self-regu- I am privileged to chair, to submit leg- and departments of the Government, I lating organization that would develop and islation to the Senate. In my capacity enforce these standards. am talking about all three branches of FERC would have the authority to require as chairman of the committee, I have the Government. We are not singling transmitting utilities to turn over oper- taken it upon myself, after consulta- out any one as being less participatory ational control of transmission facilities to tion with colleagues on the committee, of the desired result in publication and an independent system operator. to name this bill in honor of our distin- cost effectiveness. We are all in it to- The Secretary of Energy would be author- guished ranking member, Senator Wen- ized to require all retail electric suppliers to gether. This straightens it out. dell FORD of Kentucky, who will be re- disclose, in a uniform format, information on Despite the best efforts of Senator prices, terms, and conditions of service; the tiring from a very distinguished Senate FORD and a long line of other Senators, type of energy resource used to generate the career at the conclusion of this Con- successive administrations just have electric energy; and the environmental at- gress. not been able to grapple and change tributes of the generation (including air The bill is entitled the ‘‘Wendell H. the process and these problems are emissions characteristics). Ford Government Publications Reform with us today. A Renewable Portfolio Standard would be Act of 1998.’’ If I just might hold this When I became chairman of the Sen- established to ensure that by 2010 at least 5.5 bill up, it is quite voluminous. That ate Committee on Rules and Adminis- percent of all electricity sales consist of gen- size reflects the tireless effort of my eration from renewable energy sources. tration, Senator FORD urged that to- distinguished colleague from Kentucky A Public Benefits Fund would be estab- gether we continue the work that he and many others—over a period in ex- lished to provide matching funds of up to $3 and others had started. Indeed, Senator billion to States and Indian tribes for low-in- cess of a decade—including Senator FORD and I became partners in resolv- come assistance, energy-efficiency programs, STEVENS, the distinguished chairman ing these issues. We directed our staffs consumer information, and the development of the Appropriations Committee, who to work together, to analyze the prob- and demonstration of emerging technologies, have worked on this concept. I sort of lems and identify the key solutions to particularly renewable technologies. A rural picked it up and continued to work safety net would be created if the Secretary bringing successful reform to the Gov- with Senator FORD in the course of my of Energy determines, in consultation with ernment’s printing, publishing, and dis- privileged service as chairman. the Secretary of Agriculture, that signifi- semination services. cant adverse economic effects on rural areas Senator FORD has served four terms Senator FORD and I held a series of have occurred or will occur as a result of in the U.S. Senate. During that time he electric restructuring. has dedicated himself to many causes, hearings during which we built a Environmental Protection Agency author- but this has been one very dear to his record to support the very bill that we ity would be clarified to require interstate heart. I think it is a magnificent way introduce today. This bill primarily nitrogen oxides trading to facilitate attain- of paying a respectful tribute to this has four goals. ment of the ambient standard for ozone in Senator. First, it resolves the conflicts be- the United States. tween the branches of Federal Govern- Federal electricity law would be modern- We want to ensure that our Govern- ized to achieve the right balance of competi- ment produces its publications in the ment—executive, legislative, and judi- tion without market abuse, including repeal- most cost-effective manner possible cial—and brings about cost savings in ing outdated laws like the Public Utility and that to the best of its ability the printing and production. It seems to Holding Company Act of 1935 and the ‘‘must Government makes these publications me it eliminates the problems with buy’’ provision of the Public Utility Regu- accessible to the American public. public access. It is in here in great de- latory Policies Act of 1978 and giving FERC They pay for them. But over the course tail. enhanced authority to address market Secondly, it guarantees the right of power. of a number of years, like so many in- CECA promotes healthy changes to the stitutions’ procedures and practices, it the public to access publications paid electricity industry. It will result in lower has gotten sort of tangled up. This pro- for by the taxpayers. We have to stress, prices, a cleaner environment, and increased digious document, hopefully, will be they paid for this, so why shouldn’t innovation. accepted by the Senate and accepted by they have it? It requires that the Su- The Administration intends to transmit the House and will go a long way to put perintendent of Government Publica- the proposed legislative changes to the tax this system back on track. tions Access Programs—what a title; I code described in the March 25, 1998 Com- Over the past decade there has been a will repeat that—the Superintendent of prehensive Electricity Competition Plan to the Congress separately at a later date. steady and precipitous migration of Government Publications Access Pro- The Omnibus Budget Reconciliation Act printing, publication service procure- grams be notified when an agency cre- (OBRA) requires that all revenue and direct ment, and publication dissemination ates a new publication whether on

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00039 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7954 CONGRESSIONAL RECORD — SENATE July 10, 1998 paper or electronically. That major ad- Mr. FORD. I thank the Chair for the For over 100 years, GPO has printed vancement of dissemination in elec- description. or procured the printing of Govern- tronics has not been an easy one to Mr. President, it is a great pleasure ment information and then automati- deal with in this bill. for me to join with my colleague, the cally—and I underscore ‘‘automati- Third, it promotes public availability distinguished chairman of the Rules cally’’—made that information avail- of Government information in the elec- Committee. He is my friend. He is a able, at no charge to the American peo- tronic age through a Federal publica- gentleman in the best tradition of Vir- ple, through the 1,400 depository librar- tions access program requiring no-fee ginia. I appreciate the honor that he ies located across this great land. And availability, regardless of format, by has proposed for me this morning. It that information is maintained perma- requiring agencies to provide the same will be the first piece of legislation in nently by the regional depository li- notification to the Superintendent for 24 years that carries my name. I hope braries in order to ensure that future electronic publications that they are it doesn’t impede the progress, how- generations have access to it. required to provide for printed publica- ever. I am grateful to the Senator from tions, and by requiring the Super- Virginia, Mr. WARNER, for his gracious What I am trying to do here this intendent to head a study which will remarks this morning. Hopefully, that afternoon is to say why this bill is so recommend to Congress additional leg- tenor will continue through the consid- important. It has been so important to islation which may be needed to fur- eration of this legislation by all of our our past and it will be so important to ther safeguard the public’s access colleagues, because our heart is right our future. In turn, the depository li- rights. as it relates to the introduction of this braries provide numerous access serv- Finally, the fourth goal is to facili- legislation. ices, at no cost to the Federal Govern- tate the production and public access I hope our minds have put together a ment, to the public who uses them to to Government publications by pro- piece of legislation that will be lasting. keep informed of their Government’s moting the efficient and economic pro- But there is one thing about this insti- decisions. In fact, the depository li- duction of publications in an effective tution; once it settles in and you find braries, and numerous other public and and equitable system of dissemination. some problems with it, you always private libraries that work in coopera- It was James Madison who estab- have the opportunity to correct those tion with the depositories, are the lished as an essential element of Amer- problems. Most of the time, we do not trustees of Government information ica’s democracy the principle of an in- ‘‘throw the baby out with the bath for the people. For all of the criticisms formed citizenry. According to schol- water’’; we take the changes and do of GPO, no one can dispute that a cen- ars, Madison’s vision for the success of them in an appropriate way. tralized printing and dissemination this Nation rested on the ability of an So I join my colleague in introducing system for Government information informed citizenry to participate in the this legislation today to ensure one has worked to keep the American peo- democratic process and to hold Govern- thing, Mr. President—that the Amer- ple informed about their Government. ment accountable for its actions. De- ican public continues to have access to mocracy requires the free flow of infor- the Government information. As my Mr. President, it was Thomas Jeffer- mation. Access to the Government’s friend has said, it pays to produce. It is son who said, ‘‘To inform the minds of publications is fundamental to our free the people’s access to Government, people, and to follow their will, is the society. Government information, that forms chief duty of those placed at their Senator FORD and I and other mem- the basis of our system of Government head.’’ That is the purpose of this legis- bers of the Committee on Rules and and ensures that democracy survives. lation, the very root of the growth of Administration, together with our A Kentuckian that was born in Vir- this legislation. We, in a bipartisan staff, worked diligently and in a most ginia—we claim him in Kentucky, how- manner, a friendly manner, desire to be nonpartisan manner to craft this legis- ever—and a statesman, Henry Clay, sure that our citizens are informed, lation. The legislation is a culmination said: and that is the reason we are intro- of nearly 18 months of discussion and Government is a trust, and the officers of ducing this legislation today—to en- negotiation. We consulted with the pri- the Government are trustees; and both the sure that the American people are in- vate sector, the printing industry, the trust and the trustees are created for the formed of the actions of their trustees information industry, representatives benefit of the people. so they can, in turn, inform us of their of the administration, the judicial This legislation ensures that the de- will. branch, various legislative branch or- cisions of the trustees of Government This constant exchange of Govern- ganizations, GPO, and, most impor- in all 3 branches will continue to be tantly, the unions who really safeguard available for the benefit of the people ment information and the people’s in- the future of employees throughout the who placed them there. formed will is the cornerstone of our printing system and other systems in- Since 1813, Congress has assured that representative democracy, and without volved in this. My understanding is, our decisions have been available to the free flow of information about the and I think Senator FORD will have the public through the depository li- actions of their Government, the peo- similar comments, that they recognize braries. In 1857, depository libraries ple’s will cannot be ascertained, and the need for change and have been a began disseminating other Federal in- democracy is jeopardized. very constructive and helpful working formation and, in 1895, the Super- While the centralized printing and partner in achieving this result. This intendent of Public Documents was dissemination system provided through bill, we feel, reflects a consensus moved from the Department of the In- GPO has served us well over the years, among these interests and is to my terior to the Government Printing Of- advances in technology, and recent Su- mind one of the best examples of bipar- fice. preme Court rulings regarding separa- tisan cooperation in good public policy. Throughout our history, Mr. Presi- tion of powers, have taxed the ability At this time, of course, both Senator dent, libraries have been the perma- of a central agency to ensure that all FORD and I want to recognize the in- nent repositories of the written history Government information gets into the of our development as a Nation and the valuable services of Eric Peterson, hands of the American public. So what gateways to accessing the decision of staff director of the Joint Committee did we do? We sat down, as we are sup- its leaders. How important libraries on Printing, Kennie Gill of Senator posed to do, to work out a way to con- are. You can be self-educated if you FORD’s staff, Grayson Winterling and tinue to strengthen democracy and could read and go to the libraries and Ed Edens of my staff, and the many work the will of the American people’s others who have worked on this during be able to secure information. Books that will do that. For almost 200 years, representatives. Some have responded the past 18 months. We look forward to that it is time to decentralize the dis- receiving the support of our colleagues libraries have been the principal means by which citizens have come to learn of semination of Government information in passing and enacting this important and disjoin the procurement and dis- reform legislation in the concluding the decisions of their Government. semination functions. I could not dis- days of this Congress. Armed with that knowledge, the Amer- I yield the floor. ican public expresses its will through agree more strongly. The PRESIDING OFFICER. The very the democratic election process, which Instead, it is time to reform the sys- distinguished Senator from Kentucky. is the bedrock of our society. tem and bring it into the 21st century

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00040 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7955 so that both Government and the Most importantly, the proposed legis- with which he believes in this very im- American people, through the deposi- lation recognizes the changes in tech- portant goal. tory library system, can be served for nology and updates title 44 to ensure It is my fervent hope that the Senate another 100 years through enhanced in- that as government information moves will act quickly on this measure. formation dissemination and access. from printed material to electronically He closed with the comment with re- Title 44 and the Government Printing disseminated publications, the Amer- gard to unions, which have a very im- Office have not undergone a major re- ican public will continue to be able to portant role in the past, today, and, in- vision in over 30 years. During this access that information, at no charge, deed, in the future in the publication of time, the Rules Committee has held through the depository libraries. The our documents. It is the credibility numerous hearings, as my distin- role of the depository libraries is which Mr. FORD brings to this institu- guished friend has said, on Government ‘‘key’’ to the success of government’s tion that enables us to cross that last printing policies and public access to transition from printed material to bridge and gain their support. Government information. In the past 2 new technologies. America’s libraries The bottom line is that the men and years, the committee has heard from provide the safety net that guarantees women who work in this system, union the general public, those in the library that this Nation does not become a members and all, want to have a more community, and at GPO, and from offi- country of information ‘‘haves’’ and cost-effective, a more productive sys- cials in the executive and judicial ‘‘have nots.’’ tem, one that is compatible with the branches, about the challenges and also Finally, the bill creates enforcement rapid movement of technology all the opportunities facing agencies who mechanisms that will ensure that across our land. Mr. President, I thank my colleague. must comply with title 44. agencies comply with title 44 so that I hope that the Senate will turn to this Mr. President, at the beginning of the American people continue to have legislation at the earliest possible op- the 105th Congress—this Congress—I access to the decisions of their govern- portunity. The Committee on Rules outlined what I believed were the 3 ment, regardless of whether those deci- and Administration will have a hearing principal issues that had to be ad- sions are printed, posted on the Inter- and will promptly issue a report. At dressed by any reform legislation. net, or transmitted through some yet First, elimination of the constitu- that point, it is my expectation that undiscovered technology. the distinguished majority leader, in tional barriers to compliance with title I congratulate my colleague, the dis- consultation with the Democratic lead- 44 created by the administrative over- tinguished Chairman, and his capable er, will make the appropriate decisions sight functions of the Joint Committee staff for their dedication and diligence on Printing; secondly, the expansion of at the time. in crafting this legislation. No com- I yield the floor. title 44 to recognize the changes in mittee is blessed with better staff. We technology, particularly the explosion do fuss and fume every once in a while, By Mr. BUMPERS: of electronic publishing and the Inter- but we always come out at the right S. 2289. A bill to amend the Federal net as a means of disseminating Gov- place. Rules of Criminal Procedure, relating ernment information to the people; I want to publicly acknowledge the to grand jury proceedings, and for third, the need for enforcement—I un- substantial contribution that the li- other purposes; to the Committee on derscore enforcement—of title 44 to en- brary community has made to this ef- the Judiciary. sure that executive agencies comply fort, particularly the American Li- GRAND JURY REFORM ACT OF 1998 with the centralized printing and dis- brary Association and the Inter-Asso- Mr. BUMPERS. Mr. President, re- semination requirements that other- ciation Working Group on Government cently I introduced S. 2030, the Grand wise lead to the creation of fugitive Information Policy, chaired by Mr. Dan Jury Due Process Act, to provide wit- documents. I use that word lovingly. P. O’Mahony of Brown University. nesses who are subpoenaed by federal The legislation Senator WARNER and I look forward to hearings on this grand juries with a right to the pres- I are introducing today is designed to measure in the Rules Committee and ence of counsel in the grand jury room. address these 3 issues in a manner that encourage my colleagues to cosponsor I am today introducing more com- will ensure, in my opinion, the contin- this measure and pass it into law. We prehensive grand jury reform legisla- ued free flow of information to the pub- cannot afford to delay; the very sur- tion which will remedy several major lic while at the same time recognizing vival of democracy rests on our ac- flaws in the grand jury system which the efficiencies and enhanced oppor- tions. today undermine the fairness of Amer- tunity for dissemination that tech- I want to also say that those who ica’s judicial system. nology creates. The legislation reaf- represent the employees, the unions, at Criminal justice must provide for firms congressional intent, and 100 the Government Printing Office have more than swift and sure punishment. years of experience, that a centralized been thoroughly involved in this deci- It must ensure fairness and due process publishing production and procurement sion and just this morning assured me to the accused as well as to witnesses agency best ensures that the American of their enthusiastic support of this and victims of crime. In the majority public gets the greatest efficiencies for legislation, because they understand of cases, our courts provide a greater its tax dollar and the broadest access that if they don’t comply with the measure of justice than any other sys- to Government information. The pro- needs of the advancement of tech- tem known to man. Yet our system re- posed legislation restructures the Gov- nology and the desires and hopes of the mains far from perfect. ernment Printing Office to provide in- 21st century, they will not last. Of all aspects of America’s criminal creased accountability and efficiencies, Mr. President, I look forward to hear- justice system, the grand jury has be- while affording the Congress the max- ings on this measure in the Rules Com- come the weakest link in ensuring due imum oversight of the agency’s poli- mittee. I encourage my colleagues to process of law. It is telling that most cies and regulations. cosponsor this measure and to very States have discarded grand juries en- This legislation removes the dis- quickly pass it into law, because I feel tirely. Yet, the Federal Government is incentives to compliance with title 44 we cannot delay. We cannot afford to constrained by the fifth amendment by eliminating the constitutional prob- delay. The very survival of democracy constitutional requirement for grand lems created by the Joint Committee rests on our actions here today. juries, so we have to find ways to make on Printing. The bill would eliminate I yield the floor. the grand jury system work better. the Joint Committee on Printing and Mr. WARNER addressed the Chair. The legislation I am introducing download those authorities to the The PRESIDING OFFICER. The Sen- makes five critical grand jury reforms: agency, with enhanced legislative over- ator from Virginia. First, it directs the district courts to sight—let me underscore that—en- Mr. WARNER. Mr. President, those give basic legal instructions to the hanced legislative oversight and au- of us who are privileged to hear the re- grand jurors at the time they begin thority over congressional printing by marks of our distinguished colleague their work. These instructions will in- the Senate Committee on Rules and from Kentucky might well clearly tell clude basic legal principles—the power Administration and the Committee on in the tenor of his voice and the force- to call witnesses, the power to inves- House Oversight. fulness of his remarks the sincerity tigate, and the power to indict on

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00041 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7956 CONGRESSIONAL RECORD — SENATE July 10, 1998 whatever charges the grand jury deems nesses who have been called back to INSTRUCTIONS OF LAW appropriate. No one would disagree testify a fourth or fifth or sixth time Under present Federal law, grand ju- with these basic instructions, but they before the same grand jury. Many of rors receive no instructions on the law are not required in the present grand these witnesses are obviously not except for whatever the prosecutor jury system. Instead, grand jurors are criminals, at least in a reasonable per- may choose to tell them. This bill will told only as much about the law as the son’s understanding of the word. provide for the District Court which prosecutor chooses to tell them. My To understand today’s grand jury empanels the grand jury to give some bill will change that. system, you must understand history. very basic legal instructions to the ju- Second, this bill gives grand jury wit- The grand jury, Mr. President, is one of rors before they begin their work. In- nesses the right to be accompanied by the common law’s most ancient insti- cluded among these are the grand counsel in the grand jury room. This tutions. Its roots go back even further jury’s duty to inquire into criminal of- section is virtually identical to S. 2030 than Magna Carta. In 1166, King Henry fenses that have been committed in the which I have already introduced. It II proclaimed the Assize of Clarendon jurisdiction; the right to call and inter- also requires that a witness subpoenaed which required that 12 ‘‘lawful men’’ rogate witnesses; the right to request to testify before a grand jury be ad- out of every hundred be sworn to tell production of documents, including ex- vised of his right to be accompanied by whether they knew of any crimes com- culpatory evidence; the necessity of counsel, of the privilege against self-in- mitted in their towns. In these early finding credible evidence of each ele- crimination and other basic rights days, grand juries operated mostly on ment of the crime before returning an when the subpoena is issued. the personal knowledge of the grand ju- indictment; the right to ask the pros- Third, this bill strengthens enforce- rors. ecutor to draft indictments for charges ment of the existing rule on grand jury The grand jury then, like today, only other than those originally presented; secrecy, which is a matter of first im- had power to accuse. In those days, the obligations of grand jury secrecy; portance to the integrity of the justice trial was by ordeal. The accused either and such other rights and duties as the system. News reports indicate that had his hand placed in boiling water or court deems appropriate. grand jury secrecy is now being vio- was bound and thrown into a lake. If he Mr. President, there is no good rea- son why these instructions should not lated on a regular basis. survived without injury, this was an Fourth, this bill mandates that pros- acquittal. It was not until the 13th be given. These rules of law are univer- ecutors disclose to the grand jury any Century that our English forbearers se- sally accepted. It makes no sense for substantial evidence they possess cured the right to a trial by jury. the grand jury not to be told what its legal powers and duties are, and I can- which indicates that the accused is Trial by ordeal was supposedly abol- not imagine that this provision would not, or may not be, guilty. While this ished long ago, but I wonder whether be disputed. may seem elementary to most Ameri- many of today’s grand jury witnesses RIGHT TO COUNSEL cans, it is contrary to a Supreme Court might dispute this. Mr. President, as I indicated before, decision, United States v. Williams—a In English and American history up the institution of the grand jury goes very recent decision—which held that until the time of the Constitution, back more than 800 years in Anglo- the prosecutor has no such constitu- grand juries were a bulwark of freedom American legal history. but it was not tional obligation. which stood between oppressive gov- Fifth and finally, this bill entitles a ernment and the individual. Grand ju- until 1963 that the Supreme Court held defendant to a transcript of the grand ries often disagreed with English and in Gideon v. Wainwright that a man may not be sent to prison without hav- jury testimony of all witnesses who are colonial judges who were in service to ing had a lawyer at trial. Under Gid- called against him at trial. This is a the Crown. These feuds helped define eon, a person unable to pay for a law- matter of basic fairness. Anyone both the power of the grand jury and yer must have counsel appointed to charged with a crime should have a the liberties of free people. For exam- represent him, or else the requirement right to know what a witness against ple, grand jurors in colonial Massachu- of due process of law has not been met. him has told the grand jury. Knowing setts adamantly refused demands by the Crown to indict the colonists who In 1964, the Court held in Miranda v. the witness’s prior testimony is the es- had participated in the Stamp Act Arizona that criminal defendants must sence of the right of cross-examination riots. be advised by the police of their right enshrined in the confrontation clause Unhappily, the grand jury’s role as to counsel and of the Fifth Amendment of the sixth amendment. defender of liberty, has changed dra- privilege against self-incrimination. BACKGROUND matically for the worse over the years. These rights are basic American free- Grand juries have enormous power Too often, the grand jury has become doms which are the hallmarks of due and they offer few protections to those an arm of the executive branch and a process of law. And nobody today who are called as witnesses or who are rubber stamp for the prosecutor. In would take us back to the old days subject to investigation. Under the modern times, the Supreme Court has when those rules were not in effect. fifth amendment to the Constitution, held that a grand jury may call wit- Our ideas of due process have Federal felony prosecutions must in- nesses to satisfy the mere suspicion changed for the better over the cen- clude indictment by a grand jury. This that a crime may have been com- turies. One legal tradition which has provision was intended to protect citi- mitted. not changed, however, is the lack of zens against prosecutions which are Grand juries have been judged so su- counsel before the grand jury. A wit- without merit or which are politically perfluous by the states that about half ness who is not a criminal defendant motivated. The Founding Fathers had of them decided long ago to eliminate but who is legally summoned to testify plenty of experience with prosecutorial grand juries and allow criminal charges by the grand jury may not have his misconduct by the English crown. That to be brought directly by prosecutors. lawyer in the room. This rule of law is is the reason they inserted the grand The chief judge of the State of New perverse to say the least in that it jury into the Constitution. The Grand York remarked several years ago that gives criminals, or accused criminals, Jury was to be a bulwark against a ty- most grand juries would indict ‘‘a ham more rights than innocent people. rannical government. sandwich’’ if the prosecutor so re- A criminal defendant today has My own observations of grand juries quested. A recent Supreme Court deci- greater rights than an ordinary, go back to my years as a small town sion, United States v. Williams, the unaccused witness testifying before a defense lawyer, but they are reinforced Court has held that the District Courts grand jury. The Federal Rule of Crimi- by present day cases and news reports. have no supervisory power over grand nal Procedure which prohibits the pres- Too often, I have seen criminal pros- juries, and that grand juries are not ence of counsel for a witness is an ecutions which should never have been even part of the judiciary. I disagree anachronism, and it will be changed by brought, or witnesses who have been strenuously with Justice Scalia’s con- this bill, as well as by S. 2030 which I abused by prosecutors. Recently, news- clusions in the Williams case. If grand previously introduced. papers are filled with stories of secret juries are not accountable to the EXCULPATORY EVIDENCE grand jury testimony—often attributed courts, then who are they accountable Even with a lawyer for the witness to prosecution sources—and of wit- to? present, the grand jury will always be

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00042 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7957 a one-sided affair in which only the discovered until trial, which is one rea- but having been a prosecutor and hav- prosecutor presents evidence. My bill son grand jury secrecy is so important. ing spent some time myself in this will not change that. The prosecutor If the public learns that a witness area, it is quite interesting. will naturally present only the evi- has made some horrendous accusation, Mr. BUMPERS. Mr. President, I ask dence most favorable to the govern- it will be cold comfort that the grand unanimous consent that the text of the ment. The Supreme Court has held jury later decides not to believe the Grand Jury Reform Act, which I am in- that a prosecutor has no constitutional testimony and not to indict. troducing today, be printed in the obligation to present the grand jury More than one witness has lost his RECORD. with any exculpatory evidence. This life when it was learned that he had There being no objection, the bill was case, United States v. Williams, was a testified against a leader of organized ordered to be printed in the RECORD, as 5–4 decision written by Justice Scalia crime or a murderer. Grand jury se- follows: and as I said, in my opinion, it could crecy can literally be a matter of life S. 2289 not be more wrong. and death. Its importance to law en- Be it enacted by the Senate and House of Rep- If due process of law means anything forcement and the cause of justice can- resentatives of the United States of America in at all, it means that both sides of a not be overstated. Congress assembled, case must be heard. How can due proc- At the same time, a witness who has SECTION 1. SHORT TITLE. ess permit the government to withhold testified before a grand jury is per- This Act may be cited as the ‘‘Grand Jury evidence which might prevent the in- fectly free, if he so chooses, to go on Reform Act of 1998’’. dictment from even being issued? television and tell the world what he or SEC. 2. GRAND JURIES. My bill today reverses United States she has testified to. (a) IN GENERAL.—Rule 6 of the Federal v. Williams by amending the Rules of Present law places responsibility for Rules of Criminal Procedure is amended— Criminal Procedure to require that enforcing grand jury secrecy on the (1) in subdivision (a), by adding at the end prosecutors present the grand jury any prosecutor. If a member of the prosecu- the following: ‘‘(3) INSTRUCTION ON RIGHTS, RESPONSIBIL- substantial evidence which directly ne- tion staff is leaking to the press, this is ITIES, AND DUTIES.—Upon impaneling a grand gates the guilt of the accused. the clearest conflict of interest. Asking jury, the court shall instruct and charge the This bill will not make the grand any prosecutor to investigate his own grand jury on the rights, responsibilities, jury a ‘‘mini-trial’’ since the accused conduct is an obvious conflict of inter- and duties of the grand jury under this rule, will not be able to present evidence or est. Yet that is what present law pro- including— to cross-examine. But the Government vides. ‘‘(A) the duty to inquire into criminal of- will be required to tell the grand jury, Mr. President, the way to resolve fenses that are alleged to have been com- before it decides to indict, of substan- this problem is to place authority for mitted within the jurisdiction; tial evidence against guilt. Due process investigating violations of grand jury ‘‘(B) the right to call and interrogate wit- of law requires no less. those who are nesses; secrecy on the District Court which ‘‘(C) the right to request production of a not guilty. It is no answer to say that empaneled the grand jury in the first book, paper, document, or other object, in- evidence of innocence can be consid- place. My bill does exactly that by giv- cluding exculpatory evidence; ered at trial, and the jury will correct ing the Court power to appoint an in- ‘‘(D) the necessity of finding credible evi- mistakes of the grand jury. If the Gov- vestigator or counsel if necessary to dence of each material element of the crime ernment has evidence which—if it were determine the source of leaks. It charged before returning a true bill; shown to be the grand jury—would lead should be the exceptional case where ‘‘(E) the right to request that the attorney the grand jury not to indict, the gov- such action will be necessary. for the government draft indictments for ernment must share that evidence with charges other than those originally re- The existence of the possibility of an quested by that attorney; those who have power to indict. U.S. v. independent investigation should be ‘‘(F) the obligation of secrecy under sub- Williams is a gross misreading of due enough to deter any prosecutor from division (e)(2); and process which cries out for correction. breaching grand jury secrecy. ‘‘(G) such other rights, responsibilities, GRAND JURY SECRECY Mr. President, the public’s con- and duties as the court determines to be ap- Mr. President, the secrecy of grand fidence in law enforcement, in the propriate.’’; jury proceedings is a matter of funda- courts, and in the administration of (2) in subdivision (d), by inserting ‘‘and mental importance which is already justice for all Americans has taken a counsel for that witness (as provided in sub- division (i))’’ after ‘‘under examination’’; clearly required by Rule 6(e) of the beating in recent years. Time and (3) in subdivision (e)(2), by adding at the Federal Rules. Yet the rule is flouted again, we have seen misconduct by po- end the following: ‘‘The court shall have the on almost a regular basis. Weekly, if lice and prosecutors, as well as jury authority to investigate any violation of this not daily, the newspapers have carried verdicts and court judgments that paragraph, including the authority to ap- stories about the several Independent seem to defy reason and common sense. point counsel to investigate and report to Counsels’ investigations which begin, This Congress has an extraordinary op- the court regarding any such violation.’’; ‘‘Sources close to the investigation re- portunity to restore public confidence and port * * *’’ Every time the law regard- in the judicial system. Almost every (4) by adding at the end the following: ‘‘(h) NOTICE TO WITNESSES.—Upon service ing grand jury secrecy is violated, a point in this bill is long-standing pol- of any subpoena requiring any witness to fair and impartial trial is impossible. icy supported by the American Bar As- testify or produce information at any pro- Grand jury secrecy is as ancient as sociation. I believe the public and the ceeding before a grand jury impaneled before the institution itself. Without it, our bar will widely support these changes, a district court, the witness shall be given judicial system would degenerate into and I hope my colleagues will move adequate and reasonable notice of— a horrific state. An indictment is al- swiftly to enact this bill into law. ‘‘(1) his or her right to counsel, as provided ready tantamount to guilt in the opin- Mr. President, I yield the floor. in subdivision (i); ion of most people. At the same time, Mr. WARNER addressed the Chair. ‘‘(2) his or her privilege against self-in- the grand jurors must be insulated The PRESIDING OFFICER. The dis- crimination; ‘‘(3) the subject matter of the grand jury from outside pressure which might in- tinguished Senator from Virginia. investigation; fluence their decisions to indict or not. Mr. WARNER. Thank you. ‘‘(4) whether his or her own conduct is Grand jury secrecy is necessary for the I listened with great interest to my under investigation by the grand jury; protection of both witnesses and grand colleague’s presentation of his bill, and ‘‘(5) the criminal statute, the violation of jurors. it is quite interesting. You have never which is under consideration by the grand The grand jury hears all kinds of tes- ceased in this institution to take on jury, if such statute is known at the time of timony—some true, some scurrilous. some of the toughest challenges. issuance of the subpoena; Many things said to the grand jury Mr. BUMPERS. Thank you. ‘‘(6) his or her rights regarding immunity; may be incredibly damaging to people Mr. WARNER. I foresee some tough and ‘‘(7) any other rights and privileges which if they are revealed. Since the accused hills to climb within this legislation the court deems necessary or appropriate. and his lawyer are not in the room, before it is through. But anyway, you ‘‘(i) COUNSEL FOR GRAND JURY WIT- there is no safeguard of cross-examina- are the man to do it if it is to be done. NESSES.— tion. False testimony can easily go un- I cannot pass judgment at this time, ‘‘(1) IN GENERAL.—

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00043 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7958 CONGRESSIONAL RECORD — SENATE July 10, 1998 ‘‘(A) RIGHT OF ASSISTANCE.—Each witness By Mr. BREAUX: My legislation reflects the principles subpoenaed to appear and testify before a S. 2290. A bill to promote the con- embodied in our Nation’s cabotage laws grand jury in a district court, or to produce struction and operation of cruise ships while recognizing that a waiver of the books, papers, documents, or other objects in the United States; to the Committee Passenger Vessel Services Act, under before that grand jury, shall be allowed the assistance of counsel during such time as the on Commerce, Science, and Transpor- specific terms and conditions, is abso- witness is questioned in the grand jury room. tation. lutely necessary to attract United ‘‘(B) RETENTION OR APPOINTMENT.—Counsel U.S. FLAG CRUISE VESSELS LEGISLATION States-flag cruise vessels into our do- for a witness described in subparagraph (A)— ∑ Mr. BREAUX. Mr. President, today I mestic trades. ‘‘(i) may be retained by the witness; or introduce legislation which I believe Especially significant is the fact that ‘‘(ii) in the case of a witness who is deter- will help achieve the development of a in order to take advantage of the au- mined by the court to be financially unable United States cruise vessel industry thority to operate such vessels in the to obtain counsel, shall be appointed as pro- domestic trades, the owner must agree, vided in section 3006A of title 18, United and generate numerous economic bene- States Code. fits for our country through the oper- and my legislation requires, that they ‘‘(2) POWERS AND DUTIES OF COUNSEL.—A ation of United States-flag cruise ves- will first enter into a contract to build counsel retained by or appointed for a wit- sels between American ports. a replacement vessel or vessels in a ness under paragraph (1)— There is little doubt that we should United States shipyard. ‘‘(A) shall be allowed to be present in the take significant and innovative action I share the desire of Senator MCCAIN grand jury room only during the questioning so that American ports, businesses and and our colleagues to develop legisla- of the witness and only to advise the witness; workers can share in the economic ben- tion that will immediately and dra- and efits that can be realized through the matically increase domestic cruise ves- ‘‘(B) shall not be permitted to address any sel operations. However, I am con- grand juror, or otherwise participate in the operation of cruise vessels in the proceedings before the grand jury. United States domestic trade. vinced that we should not let this ‘‘(3) POWERS OF THE COURT.— Recently, the Subcommittee on Sur- present opportunity pass by—we have a ‘‘(A) IN GENERAL.—If the court determines face Transportation and Merchant Ma- legitimate opportunity to increase the that counsel retained by or appointed for a rine held an oversight hearing on the size of the oceangoing United States- witness under this subdivision has violated need to generate cruise vessel oper- flag cruise vessel fleet and to greatly paragraph (2), or that such action is nec- ations between American ports. In fact, increase the opportunity for American essary to ensure that the activities of the as a result of the hearing, many of our ports to attract and benefit from cruise grand jury are not unduly delayed or im- colleagues, including the Chairman of vessel activity. I am aware of at least peded, the court may remove the counsel and either appoint new counsel or order the wit- our Commerce Committee Senator one American company ready to take ness to obtain new counsel. MCCAIN, are committed to moving for- advantage of this legislation, acquire ‘‘(B) NO EFFECT ON OTHER SANCTIONS.— ward on cruise vessel legislation this two modern, attractive, large cruise Nothing in this paragraph shall be construed year so our port economies throughout vessels and operate them under the to affect the contempt powers of the court or the country can begin to benefit United States-flag under the terms and the power of the court to impose other ap- through cruise vessel operations. conditions set forth in my proposal. propriate sanctions. As strongly as I am committed to I ask all my colleagues to join with ‘‘(j) EXCULPATORY EVIDENCE.—An attorney helping ports in my state of Louisiana me in support of this proposal so we for the government shall disclose to the grand jury any substantial evidence of which and throughout our country to attract can achieve the operation and con- that attorney has knowledge that directly and benefit from increased cruise ves- struction of United States-flag cruise negates the guilt of the accused. Failure to sel operations, I am equally convinced vessels. disclose such evidence may be the basis for a that we will not achieve the full meas- Mr. President, I ask unanimous con- motion to dismiss the indictment, if the ure of these economic benefits if we sent that the text of the bill be printed court determines that the evidence might simply allow foreign flag passenger in the RECORD. reasonably be expected to lead the grand There being no objection, the bill was jury not to indict. vessels to operate between America’s ECORD ‘‘(k) AVAILABILITY OF GRAND JURY TRAN- ports. Rather, I believe we should be di- ordered to be printed in the R , as SCRIPTS AND OTHER STATEMENTS.— recting our efforts to develop a large, follows: ‘‘(1) IN GENERAL.—Subject to paragraph (2), modern and competitive cruise vessel S. 2290 not later than 10 days before trial (unless the fleet comprised of vessels built in the Be it enacted by the Senate and House of Rep- court shall for good cause determine other- United States, operated under the resentatives of the United States of America in wise), and after the return of an indictment United States-flag, and crewed by Congress assembled, or the filing of any information, a defendant United States citizens. Otherwise, we SECTION 1. PURPOSE. shall, upon request, and as the court deter- The purpose of this Act is to allow foreign- mines to be reasonable, be entitled to exam- would simply be allowing foreign com- constructed vessels to be documented as ves- ine and duplicate a transcript or electronic panies and foreign workers to receive sels of the United States with the right to recording of— all the privileges and benefits that engage in the domestic coastwise cruise ‘‘(A) the grand jury testimony of all wit- come with operating in the United trade in connection with the construction of nesses to be called at trial; States domestic trade without any of cruise vessels in the United States. ‘‘(B) all statements relating to the defend- the associated and resultant obliga- SEC. 2. COASTWISE TRANSPORTATION OF PAS- ant’s case made to the grand jury by the tions and responsibilities we impose on SENGERS. court, the attorney for the government, or a American companies and American (a) REFLAGGING.— special attorney; (1) IN GENERAL.—Notwithstanding section ‘‘(C) all grand jury testimony or evidence workers. 12106(a)(2) of title 46, United States Code, which in any manner could be considered ex- The legislation I am introducing section 27 of the Merchant Marine Act, 1920 culpatory; and today is intended to reflect the eco- (46 U.S.C. App. 883), the Act of June 19, 1886 ‘‘(D) all other grand jury testimony or evi- nomic realities facing companies seek- (46 U.S.C. App. 289), or any other provision of dence that is determined by the court to be ing to enter the domestic cruise trade law, the Secretary of Transportation may material to the defense. and the desire of American ports to at- issue a certificate of documentation with a ‘‘(2) EXCEPTION.—The court may refuse to tract cruise vessels as quickly as pos- coastwise endorsement for a cruise vessel allow a defendant to examine and duplicate sible. It will jumpstart the domestic not constructed in the United States to a a transcript or electronic recording of any person who enters into a binding contract for testimony, statement, or evidence described cruise vessel industry by allowing construction in the United States of a cruise in paragraph (1), if the court determines that American companies to acquire foreign vessel or vessels with a total combined berth such examination or duplication would en- built cruise vessels and operate those or stateroom capacity equal to at least 75 danger any witness.’’. ships in the domestic cruise trade percent of the total combined berth or state- (b) CONFORMING AMENDMENTS.—Section under very specific and limited cir- room capacity of the cruise vessel or vessels 3500(e) of title 18, United States Code, is cumstances. These vessels will be docu- for which the certificate is to be issued under amended— mented under the laws of the United this paragraph. (1) in paragraph (1), by adding ‘‘or’’ at the (2) CERTIFICATE SUNSET.—A certificate of end; States, run with American citizen documentation issued to a vessel under para- (2) in paragraph (2), by striking ‘‘, or’’ and crews, and operated in compliance with graph (1) shall terminate 2 years after the inserting a period; and all applicable United States laws, regu- date on which all vessels constructed under (3) by striking paragraph (3). lations and tax obligations. the binding contract have been delivered.

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00044 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7959 (b) LIMITATIONS.— and innovative database products and they offer no protection to databases (1) NO COMPETITION WITH U.S.-BUILT VES- services. that are produced in other formats. SELS.—A vessel issued a certificate of docu- America produces and uses some 65 Some States have adopted doctrines mentation under subsection (a)(1) may not operate in the coastwise cruise trade on a percent of the world’s databases. of misappropriation; however, these route served by a cruise vessel built in the Our database industry spans an enor- legal protections are far from being United States operating under the authority mous range of products and services— uniform and offer no solace to database of section 27 of the Merchant Marine Act, from collection of information about producers in States where such legal 1920 (46 U.S.C. App. 883), the Act of June 19, antidotes to poisons, to valuable col- safeguards are not in place. 1886 (46 U.S.C. App. 289), section 12106(a)(2) of lections of business and financial data, The European Union has begun im- title 46, United States Code, or any other au- to databases of medical procedures and plementing a new directive protecting thority of law in effect on or before the date practice guidelines used to assure reli- databases in their own countries, but of enactment of this Act. (2) HAWAIIAN ROUTES PROHIBITED.—A vessel able and effective patient care. only those produced in the European issued a certificate of documentation under These companies have been pioneers Union or in countries that offer com- subsection (a)(1), or constructed under a in offering innovative and easily acces- parable protections. This law clearly is binding contract referred to in that sub- sible databases in any number of for- designed to disadvantage database section, may not operate between or among mats that meet consumer needs. owners not located in an EU country. the islands of Hawaii. The myriad of databases produced in Great Britain, Germany, Spain, and SEC. 3. CONSTRUCTION STANDARDS. the United States are used by the busi- most Scandinavian nations have al- A vessel issued a certificate of documenta- ness community, researchers, edu- tion under subsection (a)(1) that meets the ready made changes in their own laws standards and conditions for the issuance of cators, government officials, and citi- to implement the EU directive, and a control verification certificate for a cruise zens to gain knowledge and make deci- also a European official recently pre- vessel documented under the laws of a for- sions that affect every aspect of our dicted that within a few years, as many eign country embarking passengers in the lives. as 35 of our trading partners in Europe United States is deemed to be in compliance Yet, despite technological innova- and the Russian Federation will have with section 3309 of title 46, United States tions, creating and offering databases similar laws in place. Code. in the marketplace is neither cheap nor Unless the United States passes a law SEC. 4. FOREIGN TRANSFER. easy. that is comparable to that now gov- Notwithstanding section 9(c) of the Ship- Not only must database owners ex- ping Act, 1916 (46 U.S.C. App. 808), a cruise erning Europe, more and more Amer- vessel issued a certificate of documentation pend substantial resources on the col- ican database owners may feel the need under subsection (a)(1), or constructed under lection of data, they must also main- to move some or all of their operations a binding contract referred to in that sub- tain and distribute these information overseas in an effort, to thwart poten- section, may be placed under foreign registry products, while continually updating tial piracy of their products and serv- after its documentation under subsection (a) them and responding to the demands of ices by unscrupulous competitors or or its initial documentation (in the case of a their customers. vendors. vessel so constructed), but the Secretary Many American jobs depend on a As I mentioned previously, Mr. Presi- shall revoke the coastwise endorsement healthy, vibrant U.S. database indus- dent, American database producers are issued for any such vessel when it is placed under foreign registry. try. These companies employ thou- anxious to continue producing valuable SEC. 5. DEFINITIONS. sands of editors, researchers, and oth- databases for worldwide use. However, In this Act: ers. They invest millions of dollars in the technologies present in today’s (1) COASTWISE CRUISE TRADE.—The term hardware and software to manage these world that allow for easy copying and ‘‘coastwise cruise trade’’ means the trans- large masses of information. redistribution of information threaten portation of passengers in coastwise trade Despite the enormous value of these a producer’s ability to continue receiv- between points in the United States, either databases to our economy and society, ing a fair return on the tremendous in- directly or by way of a foreign point, or orig- American database owners are under a inating and terminating at the same point in vestments required to produce quality the United States. dual threat. databases. (2) CRUISE VESSEL.—The term ‘‘cruise ves- On the one hand, after a 1991 Su- Coupled with the inadequacy of U.S. sel’’ means a vessel that— preme Court decision, it is increasingly law to protect investment in databases (A) is at least 10,000 gross tons as measured unclear whether most databases are and the threat posed by the EU direc- under chapter 142 of title 46, United States adequately protected from piracy by tive, it is clear to me that Congress— Code; and U.S. copyright law. (B) has berth or stateroom accommoda- and more importantly, the Senate— tions for at least 275 passengers.∑ Lower courts since 1991 have handed must act quickly if we are to preserve down several decisions that have di- the American lead in database produc- By Mr. GRAMS: minished the number and types of tion and use. S. 2291. A bill to amend title 17, databases that are protected under the The ‘‘Collections of Information United States Code, to prevent the mis- compilation copyright provisions in Antipiracy Act’’ offers a solution to appropriation of collections of informa- the 1976 Copyright Act. the threats faced by American data- tion; to the Committee on the Judici- In addition, these decisions have base owners by helping to provide the ary. stated that even if databases as a right to stop harmful practices that af- COLLECTIONS OF INFORMATION ANTIPIRACY ACT whole may qualify for this limited fect the marketplace for that database. Mr. GRAMS. Mr. President, I rise copyright protection, the facts con- This legislation uses Congress’ pow- today to introduce the ‘‘Collections of tained in them are freely available for ers under the Commerce clause of the Information Antipiracy Act.’’ This leg- the taking and re-use by others—in- Constitution to protect only those islation is similar to H.R. 2652, legisla- cluding competing database producers databases used in commerce. tion already passed unanimously by —without authorization or compensa- Protection is limited to those data- our colleagues in the House of Rep- tion. bases whose owners have invested sub- resentatives on May 19 of this year Although database producers do have stantial monetary or other resources in that is currently pending before the means other than a new Federal law to gathering, organizing, or maintaining a Judiciary Committee. seek protection, none has proven ade- collection of information. My legislation presents a much-need- quate, as is evidenced in the study It contains a definition of what con- ed Federal, legislative protection for completed by the U.S. Copyright Office stitutes a protected collection that is databases. It is a fair and balanced bill last August. broad enough to offer effective protec- that recognizes the need for database Contract law, for example, binds only tion to the wide range of products and owners to receive adequate legal pro- the parties to the contract and in any services that would benefit from a new tection that provides them the incen- case varies from State to State and it Federal law. tives necessary to continue investing also varies from country to country. This legislation also contains numer- in database production. Technological protections are begin- ous and important exceptions to the The bill also acknowledges that users ning to appear and are slowly being im- protections granted. For example, it must continue to have access to timely plemented in the online world, but makes clear that databases may be

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00045 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7960 CONGRESSIONAL RECORD — SENATE July 10, 1998 used for legitimate purposes of S. 1754 RELATIVE TO TAIWAN ADMISSION verification and news reporting. It of- At the request of Mr. FRIST, the TO MULTILATERAL ECONOMIC fers special exceptions to nonprofit name of the Senator from Idaho (Mr. INSTITUTIONS users, such as researchers, scientists, CRAIG) was added as a cosponsor of S. and educators. The bill also states 1754, a bill to amend the Public Health clearly that no one is precluded from Service Act to consolidate and reau- gathering the same facts contained on thorize health professions and minority HELMS AMENDMENT NO. 3122 one database owner’s product and cre- and disadvantaged health professions Mr. GRAMS (for Mr. HELMS) proposed ating another database—but again, as and disadvantaged health education long as those facts are not stolen from programs, and for other purposes. an amendment to the concurrent reso- the original database owner. Finally, lution (S. Con. Res. 30) expressing the S. 1758 the bill recognizes the importance of sense of the Congress that the Republic unfettered public access to Govern- At the request of Mr. LUGAR, the of China should be admitted to multi- ment databases by specifically denying name of the Senator from Hawaii (Mr. lateral economic institutions, includ- protection to any database created by INOUYE) was added as a cosponsor of S. ing the International Monetary Fund a governmental entity—whether Fed- 1758, a bill to amend the Foreign As- and the International Bank for Recon- eral, State, or local—or any database sistance Act of 1961 to facilitate protec- struction and Development; as follows: that a Government agency seeks to tion of tropical forests through debt re- have created and distributed under an duction with developing countries with Strike all after the resolving clause and in- tropical forests. sert the following: That it is the sense of the exclusive licensing arrangement. Mr. Senate (the House of Representatives con- President, the concepts that lie behind S. 1976 curring) that it should be United States pol- the Collections of Information At the request of Mr. HARKIN, his icy to— Antipiracy Act, and many of its spe- name was added as a cosponsor of S. (1) support changes to the International cific provisions, have been debated for 1976, a bill to increase public awareness Monetary Fund Charter that would allow the more than 2 years now. The House- of the plight of victims of crime with Republic of China on Taiwan and other passed bill now before the Senate Judi- developmental disabilities, to collect qualified economies to become members of the International Monetary Fund; and ciary Committee was the subject of data to measure the magnitude of the two hearings that included witnesses (2) support the admission of Taiwan to problem, and to develop strategies to membership in other international economic from nearly every affected commu- address the safety and justice needs of organizations for which it is qualified, in- nity—both producers and users of data- victims of crime with developmental cluding the International Bank for Recon- bases. Indeed, the bill I introduce today disabilities. struction and Development. is a much-improved version of the leg- S. 2128 Strike the preamble and insert the fol- islation first introduced in the House, lowing: and many provisions have been added At the request of Mr. STEVENS, the Whereas the Republic of China on Taiwan that strike a fair balance between the name of the Senator from Wyoming (hereafter referred to as ‘‘Taiwan’’) possesses needs of database producers for ade- (Mr. ENZI) was added as a cosponsor of a free economy with the 19th largest gross quate protection and the also require- S. 2128, a bill to clarify the authority of domestic product in the world; ments that users have fair access to the Director of the Federal Bureau of Whereas Taiwan has the 14th largest trad- these private-sector products and serv- Investigation regarding the collection ing economy in the world and the 7th largest ices. There should be no fear that data- of fees to process certain identification amount of foreign investment in the world records and name checks, and for other and holds one of the largest amounts of for- base producers will exert extraordinary eign exchange reserves in the world; control over their products and serv- purposes. Whereas Taiwan is a democracy committed ices. But, this legislation contains not SENATE CONCURRENT RESOLUTION 107 to the economic and political norms of the only a special savings clause preserving international community; At the request of Mr. LOTT, the name Whereas the purpose of the International our antitrust laws, but it also specifies of the Senator from Indiana (Mr. low penalties against any nonprofit Monetary Fund (hereafter referred to as COATS) was added as a cosponsor of ‘‘IMF’’) is to promote exchange stability, to user who may run afoul of this new Senate Concurrent Resolution 107, a law. In closing, Mr. President, I am establish a multilateral system of payments, concurrent resolution affirming United to facilitate the expansion of world trade, convinced it is time for this body to States commitments to Taiwan. and to provide capital to assist developing act to protect the interests of database nations; AMENDMENT NO. 3109 owners and users in the United States. Whereas changes to the IMF Charter that The bill I am introducing today rep- At the request of Mr. ABRAHAM his would allow Taiwan and other qualified resents a reasonable and fair means of name was added as a cosponsor of economies to become members of the IMF doing so, and I urge my colleagues to amendment No. 3109 proposed to S. would benefit the world economy, especially join with me in working during these 1882, a bill to reauthorize the Higher those developing countries in need of capital, few remaining days of the 105th Con- Education Act of 1965, and for other and would contribute to the purposes of the IMF; gress to consider and pass this very im- purposes. Whereas the IMF aims to further economic portant piece of legislation. liberalization and globalization and conducts f f conferences, exchanges, and training pro- grams in international monetary manage- ADDITIONAL COSPONSORS AMENDMENTS SUBMITTED ment which would be beneficial to Taiwan; Whereas membership in the IMF is a pre- S. 778 requisite for accession to the International At the request of Mr. LUGAR, the Bank for Reconstruction and Development name of the Senator from Texas (Mr. and to regional banks in which Taiwan’s GRAMM) was added as a cosponsor of S. AFFIRMING U.S. COMMITMENTS membership would be beneficial; and 778, a bill to authorize a new trade and UNDER THE TAIWAN RELATIONS Whereas Taiwan is already a member of re- investment policy for sub-Saharan Af- ACT gional multilateral economic institutions in- rica. cluding the Asia-Pacific Economic Coopera- tion Forum and the Asian Development S. 1251 Bank: Now, therefore, be it At the request of Mr. D’AMATO, the LOTT AMENDMENT NO. 3121 Amend the title so as to read: ‘‘Expressing name of the Senator from Georgia (Mr. Mr. LOTT proposed an amendment to the sense of Congress that the rules of multi- COVERDELL) was added as a cosponsor lateral economic institutions, including the the concurrent resolution (S. Con. Res. of S. 1251, a bill to amend the Internal International Monetary Fund and the Inter- Revenue Code of 1986 to increase the 107) affirming U.S. commitments under national Bank for Reconstruction and Devel- amount of private activity bonds which the Taiwan Relations Act; as follows: opment, should be amended to allow mem- may be issued in each State, and to On page 2, line 8, strike ‘‘with the consent bership for the Republic of China on Taiwan index such amount for inflation. of the people of Taiwan,’’. and other qualified economies.’’.

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00046 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7961 NOTICE OF HEARING been a constant battle. I was simply leaving more and more students with a SUBCOMMITTEE ON NATIONAL PARKS, HISTORIC overwhelmed by the determination of large debt once they finish. Last fall, PRESERVATION AND RECREATION these men and women who have under- the College Board released a nation- Mr. THOMAS. Mr. President, I would taken the challenge of extinguishing wide survey of tuition costs, finding like to announce for the information of these fires. These brave individuals are that tuition and fees would rise about 5 the Senate and the public that a hear- working 16 to 18 hours a day in extreme percent for the fifth year in a row. ing has been scheduled before the Sub- temperatures and the harshest of con- In contrast, inflation in the overall committee on National Parks, Historic ditions. Tragically, these fires have economy has been held under control Preservation and Recreation of the consumed over 367 homes and 33 busi- during these years, hovering at an av- Committee on Energy and Natural Re- nesses. It is, however, thanks to the ef- erage of just over 2 percent. sources. forts of these individuals that losses As costs have increased, student bor- The hearing will take place on Thurs- have remained at this level. rowing has expanded to make up the day, July 23, 1998, at 2 p.m., in room These dedicated professionals, who difference. Student loans now comprise have put their lives on the line fighting SD–366 of the Dirksen Senate Office about 60 percent of all financial aid, the wildfires, represent the tremendous Building in Washington, DC. whereas in the 1980–81 school year, The purpose of this hearing is to re- support which Florida has received by loans were just over 40 percent of the ceive testimony on S. 2109, a bill to our fellow Americans. Not since Hurri- total. The average graduate of a four- cane Andrew in 1992 have we seen an provide for an exchange of lands lo- year college today will have $14,500 in outpouring of human kindness and sup- cated near Gustavus, Alaska, and for debt upon entering the working world. plies from around the country to help other purposes; S. 2257, a bill to reau- Given the increased reliance on bor- Florida fight a natural disaster of this thorize the National Historic Preserva- rowing, it is notable that this reau- magnitude. It is disasters like this tion Act; S. 2276, a bill to amend the thorization legislation will provide for which bring the American people to- National Trails System Act to des- a reduction in interest rates on new gether and makes our country one ignate El Camino Real de los Tejas as student loans by approximately 1 per- giant community. To date, 44 states, a National Historic Trail; S. 2272, a bill cent from current rates. This provision from as far away as California and to amend the boundaries of Grant- will save students hundreds, if not Alaska, are involved in this effort. thousands, of dollars. Kohrs Ranch National Historic Site in Through an outstanding coordinated the State of Montana; S. 2284, a bill to Nearly 84 percent of South Dakota effort on the part of local, state and students receive financial aid in some establish the Minuteman Missile Na- federal agencies, countless numbers of tional Historic Site in the State of form, with an average annual award of people are working behind the scenes, $5,400 to students who receive aid at South Dakota, and for other purposes; including the Red Cross, the Salvation and, H.R. 1522, a bill to extend the au- the six public universities. Approxi- Army and private citizens. mately 16,000 students in South Dakota thorization for the National Historic I have remained in close contact with Preservation Fund, and for other pur- receive Pell Grants, accounting for $28 state and federal emergency officials, million in federal assistance. poses. and I am confident all that can be done Because of the limited time available I am pleased that this bill will pro- is being done. What Florida really vide legislative authority to increase for the hearing, witnesses may testify needs is rain. While the situation still by invitation only. However, those the size of the maximum Pell Grant to remains quite volatile, the weather $5,000. In the 1970s, Pell Grants covered wishing to submit written testimony patterns do offer some hope and relief for the hearing record should send two three-quarters of the costs of attending to the devastated areas. Over the past a four-year public school. Today, these copies of their testimony to the Sub- few days several rainstorms have of- committee on National Parks, Historic grants cover only one-third of the cost. fered some relief, however much more I realize that finding the budget re- Preservation and Recreation, Com- is still needed to completely extinguish mittee on Energy and Natural Re- sources to fund this maximum grant the fires. I know all of my colleagues fully will be difficult, but Pell Grants sources, United States Senate, 364 join me in letting the firefighters, Dirksen Senate Office Building, Wash- are the most effective program we have emergency officials and residents bat- for helping low-income students afford ington, DC 20510–6150. tling these fires know they are in our For further information, please con- post-secondary education. thoughts and prayers as they continue This legislation also continues the tact Jim O’Toole of the Subcommittee ∑ the fight to extinguish these fires. essential Federal Family Education staff at (202) 224–5161. f Loan (FFEL) program. Although direct f HIGHER EDUCATION AMENDMENTS lending by the federal government has ADDITIONAL STATEMENTS OF 1998 consumed a portion of the overall stu- ∑ Mr. JOHNSON. Mr. President, I rise dent loan volume, all of the colleges to express my strong support of legisla- and universities in my state of South FLORIDA’S WILDFIRE ASSISTANCE Dakota continue to use the FFEL pro- ∑ tion passed by the Senate last evening, Mr. MACK. Mr. President, I rise the Higher Education Amendments of gram and remain satisfied with the today to make a few remarks on the 1998. services they receive. Accordingly, I extraordinary efforts which are cur- The Higher Education Act has been have been skeptical of efforts that rently taking place in my home state of enormous benefit to millions of stu- might destroy the balance that has ex- of Florida. For over a month now, as I dents over the past three decades in isted between direct lending and the am sure we are all well aware, dev- providing more affordable access to in- FFEL program. Federal policy should astating wildfires have ravaged Flor- stitutions of post-secondary education. not be changed in ways to either favor ida, impacting all of our 67 counties. Many of these students simply would direct lending or undermine the finan- Since this crisis began, more than 2,000 not have gone to college or vocational cial viability of lending by the private separate fires to date have been identi- school without the assistance provided sector. fied and more than 500,000 acres of through such programs as Pell Grants, There are some lesser-noticed provi- state and federal land have been student loans, and work study. sions of this bill of which I am particu- burned. With the increased competition faced larly proud. Promoting the availability While these facts are certainly over- by workers in the global economy, the and affordability of child care has been whelming, I think it is important that importance of these programs is even one of my highest priorities in the Sen- we take a moment to recognize the he- greater today, not only for students ate. That’s why I am so pleased that roic campaign which has been under- but also for our nation’s economy. The legislation I cosponsored earlier this taken to contain these fires. Last week Higher Education Act programs ac- year, the CAMPUS Act, has been incor- I had the opportunity to tour the fire count for 68 percent of all financial aid porated into this bill. CAMPUS stands ravaged area of Volusia County, and I available to students. for Child Care Access Means Parents in met with firefighters and emergency The cost of a college education con- School. This provision will establish a officials on the front line of what has tinues to grow far faster than inflation, grant program to assist colleges with

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00047 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7962 CONGRESSIONAL RECORD — SENATE July 10, 1998 the costs of establishing child care cen- sending the bill to President Clinton NEED FOR HMO REFORM ters to provide campus-based child care for his signature.∑ ∑ Mr. DORGAN. Mr. President, our for low-income parents attending col- f health care system is in a state of cri- lege. sis—a crisis of confidence. Many Amer- The obvious benefit of easy access to HIGHER EDUCATION ACT OF 1998 ∑ icans no longer believe that their in- child care is that students with young Mr. FAIRCLOTH. Mr. President, I surance companies can provide them children will have a much greater prob- am in strong support of S. 1882, the with the access to care or quality of ability of staying in school and com- Higher Education Act of 1998. Every service they need. pleting their degree. More and more young person who wishes to pursue an Today I continue our series of stories students today are non-traditional stu- education beyond the first 12 years describing how some managed care dents, and the need for campus-based should be able to do so. This bill con- plans seem to have put cost saving be- child care is greater than ever before. tains important provisions to help stu- fore life-saving. The experience of Additionally, this bill establishes an dents pay for the rapidly rising costs of Vaughn Dashiell is just one more ex- innovative new program to offer stu- college. It will benefit millions of stu- ample of the pressing need for Congress dent loan forgiveness for those who dents across the country in their pur- to act now to protect the rights of pa- earn a degree in early childhood edu- suit of a higher education. I will high- tients. cation and become full-time child care light just a few of the provisions in this Vaughn Dashiell lived with his wife, workers. Child care, unfortunately, is legislation. Patricia, and their three children in one of the lowest-paying professions First, I support the compromise Alexandria, Virginia. Vaughn owned that one can find, and this low level of reached by my colleagues in the Labor and operated his own printing com- pay is completely incommensurate and Human Resources Committee that pany. with the value of those who are caring provides a low interest repayment rate On November 20, 1996, Vaughn stayed for young children. Not surprisingly, for student loans, while still allowing a home sick from work suffering from a rate necessary for the uninterrupted turnover in this field is very high, as sore throat, dry mouth, and tunnel vi- flow of loan capital from banks. The workers find better paying jobs else- sion that limited his sight to 18 inches. Clinton Administration wanted to where. He tried to get an appointment to see It is especially tragic when highly- place the entire loan program under a doctor within his HMO network, but trained graduates, those who have the jurisdiction of the Department of was told that none were available at earned a degree in early childhood edu- Education. I am adamantly opposed to his designated facility. Vaughn was cation, are forced to leave the child this proposal. There is no reason nor able to speak only to the HMO-em- justification to have the Federal gov- care profession because they can’t pay ployed nurse on duty over the phone. ernment run a program that is being their student loans. We still need to do She could have told Vaughn to go to an provided efficiently by the private sec- all we can to raise wages for child care emergency room for treatment, but in- tor. In fact, we should be doing more to workers, but helping with student loan stead, told him to make a regular ap- have the entire program run by private repayment is a remarkable step for- pointment although none were avail- lenders. ward. This concept was contained in able. Second, I recognize the need for good As Vaughn’s symptoms worsened, he child care legislation I cosponsored teachers are more and more educators called his HMO again requesting per- last year, and I am very pleased that it leave the field to pursue other profes- mission to see a doctor somewhere, or has been included in this bill. sions. Improving the quality of the cur- to go to a nearby emergency room. Finally, advocates of a more effective rent and future teaching force calls for Vaughn was told only to wait and that welfare system won a significant vic- the improvement of preparation pro- he would receive a call back from a tory with the passage of Senator grams and the enhancement of profes- doctor on duty. When the doctor on WELLSTONE’s amendment to give states sional development activities. I sup- duty was consulted, he agreed that the option of counting two years of port North Carolina Governor Jim Vaughn should go to an emergency post-secondary education as a work re- Hunt’s Commission Report, ‘‘What room, but neither made a call himself, quirement for purposes of the Tem- Matters Most: Teaching for America’s nor followed up to see that Vaughn was porary Assistance to Needy Families Future,’’ which has a goal to provide contacted. That night, Vaughn was not program. I was proud to cosponsor this 100,000 national accredited teachers. contacted, not by the nurse, the doc- amendment. This bill provides the means for accom- tor, or any other HMO staff regarding I have heard from a number of my plishing that goal by providing teacher his condition and requests for care. constituents that current system has certification. The next morning, Patricia found had the unfortunate effect of forcing Finally, our nation is facing an Vaughn incoherent, with his ‘‘eyes roll- TANF recipients out of college or voca- alarming increase in violence and drug ing’’. She hurriedly called the HMO, tional school and into dead-end, entry- use on college campuses across the hoping for an answer to Vaughn’s prob- level jobs. It seems obvious that ena- country. I was a co-sponsor of a bill to lem. They advised her to call 911. bling these individuals, which are usu- require that colleges report instances Vaughn arrived at the hospital at 9:18 ally single mothers, to complete a de- of rape or assault to the student body. am in a diabetic coma. His blood sugar gree would be far more effective in I am pleased that this legislation was level was more than twenty times achieving long-term benefits. Edu- accepted as an amendment to this bill. greater than the normal level. Just cation leads to higher income levels, I also support another provision of S. over two hours after being rushed to helping move these families out of pov- 1882 that would prevent students con- the emergency room, Vaughn was dead erty for good and making them produc- victed of drug use or possession from from hyperglycemia. He was only 39 tive taxpayers. Federal requirements being eligible for federal aid unless years old. should not be so rigid and inflexible they complete a rehabilitation pro- This should not happen in America. that states are prevented exercising gram. Taxpayers shouldn’t support the Health insurers should not be allowed this option. I will press to ensure that tuition of students who recklessly use to put profit before patients. Vaughn this amendment survives the upcoming illegal drugs. Dashiell’s condition would have been conference. To be competitive in the global econ- treatable and curable if the health plan Passage of the Higher Education omy, America needs to provide its stu- had enabled him to get the care he Amendments of 1998 was absolutely es- dents with the means to better their needed. But for an HMO driven by cut- sential for the continuation and im- education. I believe we must protect ting costs, the needs of the patient did provement of a system that helps keep programs for higher education. The not come first. Had this HMO not post-secondary education within the Higher Education Act makes college placed their patients in the hands of a reach of typical American families. I more affordable and improves the aca- system weak in oversight and follow-up am pleased with the Senate’s over- demic environment for students and and instead allowed Mr. Dashiell the whelming vote in favor of this bill, and teachers. The bill is a sound piece of opportunity to see a doctor when he I look forward to expeditious consider- legislation which I am pleased to sup- first felt threatened, he might still be ation of the conference report and to port.∑ alive today.

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00048 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7963 Mr. President, we must take up and PART B—FEDERAL FAMILY EDUCATION LOAN Sec. 490. Regulatory relief and improvement. pass meaningful patient protections PROGRAM Sec. 490A. Distance education demonstration this year. We have a bill, S. 1890, that Sec. 421. Advances for reserve funds. programs. Sec. 422. Federal Student Loan Reserve Fund. Sec. 490B. Advisory Committee on Student Fi- would prevent tragedies like this from nancial Assistance. occurring. Under our plan, Vaughn Sec. 423. Agency Operating Fund. Sec. 424. Scope and duration of Federal loan Sec. 490C. Regional meetings and negotiated would have had guaranteed access to insurance program. rulemaking. needed care, especially in the case of Sec. 425. Applicable interest rates. Sec. 490D. Procedures for cancellations and an emergency. Under our bill, members Sec. 426. Federal payments to reduce student deferments for eligible disabled of HMOs would be able to go to an interest costs. veterans. emergency room without seeking their Sec. 427. Voluntary flexible agreements with PART H—PROGRAM INTEGRITY TRIAD plan’s approval if they felt their life guaranty agencies. Sec. 491. State role and responsibilities. was in danger. Sec. 428. Federal PLUS loans. Sec. 492. Accrediting agency recognition. This is only common sense. It should Sec. 429. Federal consolidation loans. Sec. 493. Eligibility and certification proce- Sec. 430. Requirements for disbursements of stu- not be controversial. I will appeal once dures. dent loans. Sec. 494. Program review and data. again to the Republican leaders of this Sec. 431. Default reduction program. PART I—ADMINISTRATIVE PROVISIONS FOR body: Please bring our Patients’ Bill of Sec. 432. Unsubsidized loans. DELIVERY OF STUDENT FINANCIAL ASSISTANCE Rights to the floor for action. The Sec. 433. Loan forgiveness for teachers. President has promised to sign it into Sec. 434. Loan forgiveness for child care pro- Sec. 495. Performance-based organization for the delivery of Federal student fi- law. We are wasting valuable time.∑ viders. Sec. 435. Notice to Secretary and payment of nancial assistance. f loss. Sec. 496. Student Loan Ombudsman Office. TITLE V—GRADUATE AND POSTSEC- HIGHER EDUCATION AMENDMENTS Sec. 436. Common forms and formats. Sec. 437. Student loan information by eligible ONDARY IMPROVEMENT PROGRAMS OF 1998 lenders. Sec. 501. Repeals, transfers, and redesignations. The text of the bill (H.R. 6) as passed Sec. 438. Definitions. Sec. 502. Purpose. by the Senate on July 9, 1998, follows: Sec. 439. Study of the effectiveness of cohort de- PART A—JACOB K. JAVITS FELLOWSHIP fault rates for institutions with Resolved, That the bill from the House of PROGRAM few student loan borrowers. Representatives (H.R. 6) entitled ‘‘An Act to Sec. 440. Delegation of functions. Sec. 511. Award of fellowships. extend the authorization of programs under Sec. 440A. Special allowances. PART B—GRADUATE ASSISTANCE IN AREAS OF the Higher Education Act of 1965, and for Sec. 440B. Study of market-based mechanisms NATIONAL NEED other purposes.’’, do pass with the following for determining student loan in- Sec. 521. Graduate assistance in areas of na- amendment: terest rates. tional need. Strike out all after the enacting clause and insert: PART C—FEDERAL WORK-STUDY PROGRAMS PART C—FACULTY DEVLOPMENT PROGRAM SECTION 1. SHORT TITLE; TABLE OF CONTENTS. Sec. 441. Authorization of appropriations; com- Sec. 531. Faculty development program reau- (a) SHORT TITLE.—This Act may be cited as munity services. thorized. the ‘‘Higher Education Amendments of 1998’’. Sec. 442. Grants for Federal work-study pro- PART D—URBAN COMMUNITY SERVICE grams. (b) TABLE OF CONTENTS.—The table of con- Sec. 541. Urban community service. tents is as follows: Sec. 443. Work colleges. PART E—FUND FOR THE IMPROVEMENT OF PART D—WILLIAM D. FORD FEDERAL DIRECT Sec. 1. Short title; table of contents. POSTSECONDARY EDUCATION LOAN PROGRAM Sec. 2. References. Sec. 551. Fund for the improvement of postsec- Sec. 451. Selection of institutions. TITLE I—GENERAL PROVISIONS ondary education. Sec. 452. Terms and conditions. Sec. 101. General provisions. Sec. 453. Contracts. PART F—HIGHER EDUCATION ACCESS FOR STU- Sec. 102. Federal control of education prohib- Sec. 454. Funds for administrative expenses. DENTS WITH DISABILITIES; HISPANIC-SERVING ited. Sec. 455. Loan cancellation for teachers. INSTITUTIONS; GENERAL PROVISIONS Sec. 103. National Advisory Committee on Insti- PART E—FEDERAL PERKINS LOANS Sec. 561. Higher education access for students tutional Quality and Integrity. with disabilities; Hispanic-serving Sec. 461. Authorization of appropriations. Sec. 104. Grants and recognition awards. institutions; general provisions. Sec. 105. Prior rights and obligations; recovery Sec. 462. Allocation of funds. TITLE VI—INTERNATIONAL EDUCATION of payments. Sec. 463. Agreements with institutions of higher PROGRAMS Sec. 106. Technical and conforming amend- education. ments. Sec. 464. Terms of loans. Sec. 601. International and foreign language Sec. 465. Distribution of assets from student studies. TITLE II—IMPROVING TEACHER QUALITY loan funds. Sec. 602. Business and international education Sec. 201. Improving teacher quality. Sec. 466. Perkins Loan Revolving Fund. programs. TITLE III—INSTITUTIONAL AID PART F—NEED ANALYSIS Sec. 603. Institute for International Public Pol- icy. Sec. 301. Transfers and redesignations. Sec. 471. Cost of attendance. Sec. 604. General provisions. Sec. 302. Findings. Sec. 472. Family contribution for dependent Sec. 303. Strengthening institutions. students. TITLE VII—RELATED PROGRAMS AND Sec. 304. Strengthening HBCU’s. Sec. 473. Family contribution for independent AMENDMENTS TO OTHER ACTS Sec. 305. Endowment challenge grants. students without dependents PART A—INDIAN EDUCATION PROGRAMS Sec. 306. HBCU capital financing. other than a spouse. Sec. 711. Tribally Controlled Community Col- Sec. 307. Minority science and engineering im- Sec. 474. Regulations; updated tables and lege Assistance Act of 1978. provement program. amounts. Sec. 712. American Indian, Alaska Native, and Sec. 308. General provisions. Sec. 475. Simplified needs test; zero expected Native Hawaiian culture and art TITLE IV—STUDENT ASSISTANCE family contribution. development. PART A—GRANTS TO STUDENTS IN ATTENDANCE Sec. 476. Refusal or adjustment of loan certifi- Sec. 713. Navajo Community College Act. AT INSTITUTIONS OF HIGHER EDUCATION cations. PART B—ADVANCED PLACEMENT INCENTIVE Sec. 477. Treatment of other financial assist- Sec. 411. Repeals and redesignations. PROGRAM ance. Sec. 412. Federal Pell grants. Sec. 721. Advanced placement incentive pro- Sec. 413. TRIO programs. PART G—GENERAL PROVISIONS gram. Sec. 414. Connections program. Sec. 481. Definition of institution of higher edu- PART C—UNITED STATES INSTITUTE OF PEACE Sec. 415. Federal supplemental educational op- cation. portunity grants. Sec. 482. Master calendar. Sec. 731. Authorities of the United States Insti- Sec. 416. Leveraging educational assistance Sec. 483. Forms and regulations. tute of Peace. partnership program. Sec. 484. Student eligibility. PART D—COMMUNITY SCHOLARSHIP Sec. 417. HEP and CAMP. Sec. 485. Institutional refunds. MOBILIZATION Sec. 418. Robert C. Byrd honors scholarship Sec. 486. Institutional and financial assistance Sec. 741. Short title. program. information for students. Sec. 742. Findings. Sec. 419. Child care access means parents in Sec. 487. National student loan data bank sys- Sec. 743. Definitions. school. tem. Sec. 744. Purpose, endowment grant authority. Sec. 420. Learning anytime anywhere partner- Sec. 488. Training in financial aid services. Sec. 745. Grant agreement and requirements. ships. Sec. 489. Program participation agreements. Sec. 746. Authorization of appropriations.

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PART E—GRANTS TO STATES FOR WORKPLACE added by Public Law 96–374), 1205, 1207, 1208, retary shall give appropriate consideration to AND COMMUNITY TRANSITION TRAINING FOR 1209, 1210, and 1213 (20 U.S.C. 1141, 1142, 1144, institutions of higher education with limited en- INCARCERATED YOUTH OFFENDERS 1144a, 1145, 1145b, 1145c, 1145d, 1145d–1, and rollment. Sec. 751. Grants to States for workplace and 1145g) to follow the heading for title I (as in- ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.— community transition training for serted by paragraph (4)); and There are authorized to be appropriated to carry incarcerated youth offenders. (6) by redesignating sections 1201, 1202, 1204 out this subsection $5,000,000 for fiscal year 1999 (as renumbered by Public Law 90–575), 1204 (as PART F—WEB-BASED EDUCATION COMMISSION and such sums as may be necessary for each of added by Public Law 96–374), 1205, 1207, 1208, the 4 succeeding fiscal years. Sec. 753. Short title; definitions. 1209, 1210, and 1213 as sections 101, 102, 103, 104, Sec. 754. Establishment of Web-Based Edu- ‘‘(f) NATIONAL RECOGNITION AWARDS.— 105, 106, 107, 108, 109, and 110, respectively. cation Commission. ‘‘(1) PURPOSE.—It is the purpose of this sub- Sec. 755. Duties of the Commission. SEC. 102. FEDERAL CONTROL OF EDUCATION section to provide models of innovative and ef- Sec. 756. Powers of the Commission. PROHIBITED. fective alcohol prevention programs in higher Sec. 757. Commission personnel matters. Section 103 (as redesignated by section education and to focus national attention on ex- Sec. 758. Termination of the Commission. 101(a)(6)) (20 U.S.C. 1144) is amended by striking emplary alcohol prevention efforts. Sec. 759. Authorization of appropriations. ‘‘(b)’’. ‘‘(2) AWARDS.— PART G—EDUCATION OF THE DEAF SEC. 103. NATIONAL ADVISORY COMMITTEE ON ‘‘(A) IN GENERAL.—The Secretary shall make Sec. 761. Short title. INSTITUTIONAL QUALITY AND IN- 10 National Recognition Awards, on an annual TEGRITY. Sec. 762. Elementary and secondary education basis, to institutions of higher education that— Section 105 (as redesignated by section programs. ‘‘(i) have developed and implemented innova- Sec. 763. Agreement with Gallaudet University. 101(a)(6)) (20 U.S.C. 1145) is amended— tive and effective alcohol prevention programs; Sec. 764. Agreement for the National Technical (1) by striking the last sentence of subsection and Institute for the Deaf. (a); ‘‘(ii) demonstrate in the application submitted Sec. 765. Definitions. (2) by redesignating subsections (c) through under paragraph (3) that the institution has un- Sec. 766. Gifts. (f) as subsections (d) through (g), respectively; dertaken efforts designed to change the culture Sec. 767. Reports. (3) by inserting after subsection (b) the fol- of college drinking consistent with the objectives Sec. 768. Monitoring, evaluation, and reporting. lowing: described in paragraph (4)(B). ‘‘(c) PUBLIC NOTICE.—The Secretary shall— Sec. 769. Investments. ‘‘(B) CEREMONY.—The awards shall be made ‘‘(1) annually publish in the Federal Register Sec. 770. International students. at a ceremony in Washington, D.C. a list containing the name of each member of the Sec. 771. Research priorities. ‘‘(C) DOCUMENT.—The Secretary shall publish Committee and the date of the expiration of the Sec. 772. Authorization of appropriations. a document describing the alcohol prevention Sec. 773. Commission on Education of the Deaf. term of office of the member; and programs of institutions of higher education ‘‘(2) publicly solicit nominations for each va- PART H—REPEALS that receive the awards under this subsection cant position or expiring term of office on the Sec. 781. Repeals. and disseminate the document nationally to all Committee.’’; PART I—MISCELLANEOUS (4) in subsection (d) (as redesignated by para- public and private secondary school guidance Sec. 791. Year 2000 requirements at the Depart- graph (2))— counselors for use by secondary school juniors ment of Education. (A) by striking paragraph (6); and and seniors preparing to enter an institution of Sec. 792. Grants to combat violent crimes (B) by redesignating paragraphs (7) and (8) as higher education. The document shall be dis- against women on campuses. paragraphs (6) and (7), respectively; and seminated not later than January 1 of each aca- Sec. 793. Authority to administer summer travel (5) in subsection (g) (as redesignated by para- demic year. and work programs. graph (2)), by striking ‘‘1998’’ and inserting ‘‘(D) AMOUNT AND USE.—Each institution of Sec. 794. Improving United States under- ‘‘2004’’. higher education selected to receive an award standing of science, engineering, SEC. 104. GRANTS AND RECOGNITION AWARDS. under this subsection shall receive an award in and technology in East Asia. Section 110 (as redesignated by section the amount of $50,000. Such award shall be used Sec. 795. Underground Railroad educational 101(a)(6)) (20 U.S.C. 1145g) is amended by add- for the maintenance and improvement of the in- and cultural program ing at the end the following: stitution’s alcohol prevention program for the Sec. 796. GNMA guarantee fee. academic year following the academic year for ‘‘(e) ALCOHOL AND DRUG ABUSE PREVENTION Sec. 797. Protection of student speech and asso- which the award is made. GRANTS.— ciation rights. ‘‘(1) PROGRAM AUTHORITY.—The Secretary ‘‘(3) APPLICATION.— Sec. 798. Binge drinking on college campuses. ‘‘(A) IN GENERAL.—Each institution of higher Sec. 799. Sense of the Senate regarding higher may make grants to institutions of higher edu- cation or consortia of such institutions, and education desiring an award under this sub- education. section shall submit an application to the Sec- Sec. 799A. Sense of Congress regarding teacher enter into contracts with such institutions, con- sortia, and other organizations, to develop, im- retary at such time, in such manner, and accom- education. panied by such information as the Secretary Sec. 799B. Liaison for proprietary institutions plement, operate, improve, and disseminate pro- grams of prevention, and education (including may require. Each such application shall con- of higher education. tain— Sec. 799C. Expansion of educational opportuni- treatment-referral) to reduce and eliminate the ‘‘(i) a clear description of the goals and objec- ties for welfare recipients. illegal use of drugs and alcohol and the violence tives of the alcohol program of the institution; Sec. 799D. Alcohol or drug possession disclo- associated with such use. Such grants or con- ‘‘(ii) a description of program activities that sure. tracts may also be used for the support of a Sec. 799E. Release of conditions, covenants, higher education center for alcohol and drug focus on alcohol policy issues, policy develop- and reversionary interests, Guam abuse prevention that will provide training, ment, modification, or refinement, policy dis- Community College conveyance, technical assistance, evaluation, dissemination, semination and implementation, and policy en- Barrigada, Guam. and associated services and assistance to the forcement; Sec. 799F. Sense of Congress regarding good higher education community as determined by ‘‘(iii) a description of activities that encourage character. the Secretary and institutions of higher edu- student and employee participation and involve- ment in activity development and implementa- SEC. 2. REFERENCES. cation. tion; Except as otherwise expressly provided, when- ‘‘(2) AWARDS.—Grants and contracts shall be ‘‘(iv) the objective criteria used to determine ever in this Act an amendment or repeal is ex- awarded under paragraph (1) on a competitive the effectiveness of the methods used in the pro- pressed in terms of an amendment to, or repeal basis. gram and the means used to evaluate and im- of, a section or other provision, the reference ‘‘(3) APPLICATIONS.—An institution of higher prove the program efforts; and shall be considered to be made to a section or education, a consortium of such institutions, or ‘‘(v) a description of the activities to be as- other provision of the Higher Education Act of another organization that desires to receive a sisted that meet the criteria described in sub- 1965 (20 U.S.C. 1001 et seq.). grant or contract under paragraph (1) shall sub- mit an application to the Secretary at such time, paragraph (C). TITLE I—GENERAL PROVISIONS in such manner, and containing or accompanied ‘‘(B) APPLICATION REVIEW.—The Secretary SEC. 101. GENERAL PROVISIONS. by such information as the Secretary may rea- shall appoint a committee to review applications (a) REPEAL; TRANSFER AND REDESIGNATION.— sonably require by regulation. submitted under this paragraph. The committee The Act (20 U.S.C. 1001 et seq.) is amended— ‘‘(4) ADDITIONAL REQUIREMENTS.— may include representatives of Federal depart- (1) by repealing title I (20 U.S.C. 1001 et seq.); ‘‘(A) PARTICIPATION.—In awarding grants ments or agencies the programs of which include (2) by repealing sections 1203, 1206, 1211, and under this subsection the Secretary shall make alcohol abuse prevention and education efforts, 1212 (20 U.S.C. 1143, 1145a, 1145e, and 1145f); every effort to ensure— directors or heads (or their representatives) of (3) by striking the heading for title XII (20 ‘‘(i) the equitable participation of private and professional associations that focus on alcohol U.S.C. 1141 et seq.); public institutions of higher education (includ- abuse prevention efforts, and non-Federal sci- (4) by inserting before title III (20 U.S.C. 1051 ing community and junior colleges); and entists who have backgrounds in social science et seq.) the following: ‘‘(ii) the equitable geographic participation of evaluation and research methodology and in ‘‘TITLE I—GENERAL PROVISIONS’’; such institutions. education. Decisions of the committee shall be (5) by transferring sections 1201, 1202, 1204 (as ‘‘(B) CONSIDERATION.—In awarding grants made directly to the Secretary without review by renumbered by Public Law 90–575), 1204 (as and contracts under this subsection the Sec- any other entity in the Department.

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‘‘(C) REVIEW CRITERIA.—The committee de- ‘‘(2) POST-1992 AND PRE-1998 PART C OF TITLE ‘‘SEC. 113. STUDENT-RELATED DEBT STUDY RE- scribed in subparagraph (B) shall develop spe- VII.—There are authorized to be appropriated QUIRED. cific review criteria for reviewing and evalu- such sums as may be necessary for fiscal year ‘‘(a) IN GENERAL.—The Secretary shall con- ating applications submitted under this para- 1999 and for each of the 4 succeeding fiscal duct a study that analyzes the distribution and graph. Such criteria shall include whether the years to pay obligations incurred prior to the increase in student-related debt in terms of— institution of higher education has policies in date of enactment of the Higher Education ‘‘(1) demographic characteristics, such as race effect that— Amendments of 1998 under part C of title VII, as or ethnicity, and family income; ‘‘(i) prohibit alcoholic beverage sponsorship of such part was in effect during the period— ‘‘(2) type of institution and whether the insti- athletic events, and prohibit alcoholic beverage ‘‘(A) after the effective date of the Higher tution is a public or private institution; advertising inside athletic facilities; Education Amendments of 1992; and ‘‘(3) loan source, such as Federal, State, insti- ‘‘(ii) prohibit alcoholic beverage marketing on ‘‘(B) prior to the date of enactment of the tutional or other, and, if the loan source is Fed- campus, which may include efforts to ban alco- Higher Education Amendments of 1998. eral, whether the loan is or is not subsidized; hol advertising in institutional publications or ‘‘(b) LEGAL RESPONSIBILITIES.— ‘‘(4) academic field of study; efforts to prohibit alcohol-related advertisements ‘‘(1) PRE-1987 TITLE VII.—All entities with con- ‘‘(5) parent loans, and whether the parent at campus events; tinuing obligations incurred under parts A, B, loans are federally guaranteed, private, or prop- ‘‘(iii) establish or expand upon alcohol-free C, and D of title VII, as such parts were in ef- erty-secured such as home equity loans; and living arrangements for all college students; fect before the effective date of the Higher Edu- ‘‘(6) relation of student debt or anticipated ‘‘(iv) establish partnerships with community cation Amendments of 1992, shall be subject to debt to— members and organizations to further alcohol the requirements of such part as in effect before ‘‘(A) students’ decisions about whether and prevention efforts on campus and the areas sur- the effective date of the Higher Education where to enroll in college and whether or how rounding campus; and Amendments of 1992. much to borrow in order to attend college; ‘‘(v) establish innovative communications pro- ‘‘(2) POST-1992 AND PRE-1998 PART C OF TITLE ‘‘(B) the length of time it takes students to grams involving students and faculty in an ef- VII.—All entities with continuing obligations in- earn baccalaureate degrees; fort to educate students about alcohol-related curred under part C of title VII, as such part ‘‘(C) students’ decisions about whether and risks. was in effect during the period— where to attend graduate school; ‘‘(4) ELIGIBILITY.— ‘‘(A) after the effective date of the Higher ‘‘(D) graduates’ employment decisions; ‘‘(A) IN GENERAL.—In order to be eligible to re- Education Amendments of 1992; and ‘‘(E) graduates’ burden of repayment as re- ceive a National Recognition Award an institu- ‘‘(B) prior to the date of enactment of the flected by the graduates’ ability to save for re- tion of higher education shall— Higher Education Amendments of 1998, tirement or invest in a home; and shall be subject to the requirements of such part ‘‘(i) offer an associate or baccalaureate de- ‘‘(F) students’ future earnings. as such part was in effect during such period. gree; ‘‘(b) REPORT.—After conclusion of the study ‘‘(ii) have established an alcohol abuse pre- ‘‘SEC. 112. RECOVERY OF PAYMENTS. required by subsection (a), the Secretary shall vention and education program; ‘‘(a) PUBLIC BENEFIT.—Congress declares submit a final report regarding the findings of ‘‘(iii) nominate itself or be nominated by oth- that, if a facility constructed with the aid of a the study to the Committee on Labor and ers, such as professional associations or student grant under part A of title VII as such part A Human Resources of the Senate and the Com- organizations, to receive the award; and was in effect prior to the date of enactment of mittee on Education and the Workforce of the ‘‘(iv) not have received an award under this the Higher Education Amendments of 1998, or House of Representatives not later than 18 subsection during the 5 academic years pre- part B of such title as such part B was in effect months after the date of enactment of the High- ceding the academic year for which the deter- prior to the date of enactment of the Higher er Education Amendments of 1998. mination is made. Education Amendments of 1992, is used as an ‘‘(c) INFORMATION.—After the study and re- ‘‘(B) OBJECTIVES.—In order to receive a Na- academic facility for 20 years following comple- port under this section are concluded, the Sec- tional Recognition Award an institution shall tion of such construction, the public benefit ac- retary shall determine which information de- demonstrate in the application submitted under cruing to the United States will equal in value scribed in subsection (a) would be useful for paragraph (3) that the institution has accom- the amount of the grant. The period of 20 years families to know and shall include such infor- plished all of the following objectives: after completion of such construction shall mation as part of the comparative information ‘‘(i) The elimination of alcoholic beverage therefore be deemed to be the period of Federal provided to families about the costs of higher sponsorship of athletic events, and the elimi- interest in such facility for the purposes of such education under the provisions of section nation of alcoholic beverage advertising inside title as so in effect. 486(a)(1). ‘‘(b) RECOVERY UPON CESSATION OF PUBLIC athletic facilities. ‘‘SEC. 114. STUDY OF FORECLOSED PROPERTY OR BENEFIT.—If, within 20 years after completion ‘‘(ii) The elimination of alcoholic beverage ASSETS. of construction of an academic facility which marketing on campus that may include efforts ‘‘Not later than 90 days after the date of en- has been constructed, in part with a grant to ban alcohol advertising in institutional publi- actment of the Higher Education Amendments under part A of title VII as such part A was in cations or prohibit alcohol-related advertise- of 1998, the Comptroller General, in consultation effect prior to the date of enactment of the ments at campus events. with the Inspector General of the Department, Higher Education Amendments of 1998, or part ‘‘(iii) The establishment or expansion of alco- shall submit a report to the Committee on Labor B of title VII as such part B was in effect prior hol-free living arrangements for all college stu- and Human Resources of the Senate and the to the date of enactment of the Higher Edu- dents. Committee on Education and the Workforce of cation Amendments of 1992— ‘‘(iv) The establishment of partnerships with the House of Representatives that provides the ‘‘(1) the applicant under such parts as so in community members and organizations to fur- following: effect (or the applicant’s successor in title or ther alcohol prevention efforts on campus and ‘‘(1) Descriptions of legislative changes that possession) ceases or fails to be a public or non- the surrounding areas. can be made to strengthen laws governing the profit institution, or ‘‘(v) The establishment of innovative commu- ‘‘(2) the facility ceases to be used as an aca- transfer of foreclosed property or assets by the nications programs involving students and fac- demic facility, or the facility is used as a facility Department to individuals or their agents that ulty in an effort to educate students about alco- excluded from the term ‘academic facility’ (as have had prior dealings with the Department. hol-related risks. such term was defined under title VII, as so in Such descriptions shall address the transfer of ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.— effect), unless the Secretary determines that property to individuals or their agents who have ‘‘(A) IN GENERAL.—There is authorized to be there is good cause for releasing the institution been in positions of management or oversight at appropriated to carry out this subsection from its obligation, postsecondary educational institutions that $750,000 for fiscal year 1999. the United States shall be entitled to recover have failed, or are failing, to make payments to ‘‘(B) AVAILABILITY.—Funds appropriated from such applicant (or successor) an amount the Department on property loans, or defaulted under subparagraph (A) shall remain available which bears to the value of the facility at that on any property or asset loan from a Federal until expended.’’. time (or so much thereof as constituted an ap- agency. SEC. 105. PRIOR RIGHTS AND OBLIGATIONS; RE- proved project or projects) the same ratio as the ‘‘(2) Changes that can be implemented at the COVERY OF PAYMENTS. amount of Federal grant bore to the cost of the Department to strengthen all rules and regula- Title I (20 U.S.C. 1001 et seq.) is amended by facility financed with the aid of such grant. The tions governing the transfer of foreclosed prop- adding after section 110 (as redesignated by sec- value shall be determined by agreement of the erty or assets by the Department to individuals tion 101(a)(6)) the following: parties or by action brought in the United States or their agents as described in paragraph (1). ‘‘SEC. 111. PRIOR RIGHTS AND OBLIGATIONS. district court for the district in which such facil- ‘‘SEC. 115. STATE REQUIREMENT. ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.— ity is situated. ‘‘(a) IN GENERAL.—Except as provided in sub- ‘‘(1) PRE-1987 PARTS C AND D OF TITLE VII.— ‘‘(c) PROHIBITION ON USE FOR RELIGION.—Not- section (b), each State, that has individuals who There are authorized to be appropriated such withstanding the provisions of subsections (a) reside in the State and who receive financial as- sums as may be necessary for fiscal year 1999 and (b), no project assisted with funds under sistance under this Act, shall provide an appro- and for each of the 4 succeeding fiscal years to title VII (as in effect prior to the date of enact- priate number of mail voter registration forms pay obligations incurred prior to 1987 under ment of the Higher Education Amendments of (as described in section 6(a) of the National parts C and D of title VII, as such parts were in 1998) shall ever be used for religious worship or Voter Registration Act (42 U.S.C. 1973gg–4(a))) effect before the effective date of the Higher a sectarian activity or for a school or depart- to each eligible institution under section 487 in Education Amendments of 1992. ment of divinity. the State, not later than 60 days before each

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00051 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7966 CONGRESSIONAL RECORD — SENATE July 10, 1998 date that is the last day to register to vote for ‘‘SEC. 117. SPECIAL RULE. 207(j)(2)(B) of title 18, United States Code, is a regularly scheduled— ‘‘Notwithstanding any other provision of law, amended by striking ‘‘1201(a)’’ and inserting ‘‘(1) election (as defined in section 301(1) of the sum of financial assistance received under ‘‘101(a)’’. the Federal Election Campaign Act of 1971 (2 this Act and other Federal financial assistance (5) EDUCATION.— U.S.C. 431(1)); or for postsecondary education received by an indi- (A) HIGHER EDUCATION AMENDMENTS OF 1992.— ‘‘(2) election for Governor or other chief exec- vidual shall not exceed the individual’s cost of Section 1(c) of the Higher Education Amend- utive within such State. attendance as defined in section 472, except that ments of 1992 (20 U.S.C. 1001 note) is amended ‘‘(b) NONAPPLICABILITY TO CERTAIN STATES.— no individual shall have the amount of a Fed- by striking ‘‘1201’’ and inserting ‘‘101’’. The requirement of subsection (a) shall not eral Pell Grant for which the individual is eligi- (B) PART F DEFINITIONS.—Section 481 of the apply to a State which is described in section ble reduced as a result of the application of this Higher Education Act of 1965 (20 U.S.C. 1088) is 4(b) of the National Voter Registration Act (42 section.’’. amended— U.S.C. 1973gg–2(b)). SEC. 106. TECHNICAL AND CONFORMING AMEND- (i) in subsection (a)— ‘‘SEC. 116. STUDY OF OPPORTUNITIES FOR PAR- MENTS. (I) in the matter preceding paragraph (1)(A), TICIPATION IN ATHLETICS PRO- (a) CONFORMING AMENDMENTS CORRECTING by striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’; (II) in paragraph (1)(C), by striking ‘‘1201(a)’’ GRAMS. REFERENCES TO SECTION 1201.— and inserting ‘‘101(a)’’; ‘‘(a) STUDY.—The Comptroller General shall (1) AGRICULTURE.— (III) in the first sentence of the matter pre- conduct a study of the opportunities for partici- (A) STUDENT INTERNSHIP PROGRAMS.—Section pation in intercollegiate athletics. The study 922 of the Federal Agriculture Improvement and ceding clause (i) of paragraph (2)(A), by striking shall address issues including— Reform Act of 1996 (7 U.S.C. 2279c) is amended— ‘‘1201(a)’’ and inserting ‘‘101(a)’’; and (IV) in the matter following paragraph ‘‘(1) the extent to which the number of— (i) in subsection (a)(1)(B)— (2)(B)(ii), by striking ‘‘1201(a)’’ and inserting ‘‘(A) secondary school athletic teams has in- (I) by striking ‘‘1201’’ and inserting ‘‘101’’; ‘‘101(a)’’; creased or decreased in the 20 years preceding and (ii) in subsection (b)— 1998 (in aggregate terms); and (II) by striking ‘‘(20 U.S.C. 1141)’’; and ‘‘(B) intercollegiate athletic teams has in- (I) in the first sentence— (ii) in subsection (b)(1)— (aa) in paragraph (2), by striking ‘‘1201(a)’’ creased or decreased in the 20 years preceding (I) by striking ‘‘1201’’ and inserting ‘‘101’’; 1998 (in aggregate terms) at 2-year and 4-year and inserting ‘‘101(a)’’; and and (bb) in paragraph (3), by striking ‘‘1201(a)’’ institutions of higher education; (II) by striking ‘‘(20 U.S.C. 1141)’’. and inserting ‘‘101(a)’’; and ‘‘(2) the extent to which participation by stu- (B) AGRICULTURAL SCIENCES EDUCATION.—Sec- (II) in the second sentence, by striking dent-athletes in secondary school and intercolle- tion 1417(h)(1)(A) of the National Agricultural ‘‘1201(a)’’ and inserting ‘‘101(a)’’; and giate athletics has increased or decreased in the Research, Extension, and Teaching Policy Act (iii) in subsection (c)— 20 years preceding 1998 (in aggregate terms); of 1977 (7 U.S.C. 3152(h)(1)(A)) is amended— (I) in the first sentence, by striking ‘‘1201(a)’’ ‘‘(3) over the 20-year period preceding 1998, a (i) by striking ‘‘1201(a)’’ and inserting and inserting ‘‘101(a)’’; and list of the men’s and women’s secondary school ‘‘101(a)’’; and (II) in the second sentence, by striking and intercollegiate sports, ranked in order of the (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. ‘‘1201(a)’’ and inserting ‘‘101(a)’’. sports most affected by increases or decreases in (2) ARMED FORCES.— (C) TREATMENT OF BRANCHES.—Section levels of participation and numbers of teams (in (A) SCIENCE AND MATHEMATICS EDUCATION IM- 498(j)(2) of the Higher Education Act of 1965 (20 the aggregate); PROVEMENT PROGRAM.—Section 2193(c)(1) of title U.S.C. 1099c(j)(2)) is amended by striking ‘‘(4) all factors that have influenced campus 10, United States Code, is amended— ‘‘1201(a)(2)’’ and inserting ‘‘101(a)(2)’’. officials to add or discontinue sports teams at (i) by striking ‘‘1201(a)’’ and inserting (D) INTERNATIONAL EDUCATION PROGRAMS.— secondary schools and institutions of higher ‘‘101(a)’’; and Section 631(a)(8) of the Higher Education Act of education, including— (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. 1965 (20 U.S.C. 1132(a)(8)) is amended by strik- ‘‘(A) institutional mission and priorities; (B) SUPPORT OF SCIENCE, MATHEMATICS, AND ing ‘‘1201(a)’’ each place it appears and insert- ‘‘(B) budgetary pressures; ENGINEERING EDUCATION.—Section 2199(2) of title ing ‘‘101(a)’’. ‘‘(C) institutional reforms and restructuring; 10, United States Code, is amended— (E) DWIGHT D. EISENHOWER LEADERSHIP PRO- ‘‘(D) escalating liability insurance premiums; (i) by striking ‘‘1201(a)’’ and inserting GRAM.—Section 1081(d) of the Higher Education ‘‘(E) changing student and community inter- ‘‘101(a)’’; and Act of 1965 (20 U.S.C. 1135f(d)) is amended by est in a sport; (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. striking ‘‘1201’’ and inserting ‘‘101’’. ‘‘(F) advancement of diversity among stu- (C) ALLOWABLE COSTS UNDER DEFENSE CON- (F) DISCLOSURE REQUIREMENTS.—Section dents; TRACTS.—Section 841(c)(2) of the National De- 429(d)(2)(B)(ii) of the General Education Provi- ‘‘(G) lack of necessary level of competitiveness fense Authorization Act for fiscal year 1994 (10 sions Act (20 U.S.C. 1228c(d)(2)(B)(ii)) is amend- of the sports program; U.S.C. 2324 note) is amended— ed by striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’. ‘‘(H) club level sport achieving a level of com- (i) by striking ‘‘1201(a)’’ and inserting (G) HARRY S. TRUMAN SCHOLARSHIPS.—Section petitiveness to make the sport a viable varsity ‘‘101(a)’’; and 3(4) of the Harry S. Truman Memorial Scholar- level sport; (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. ship Act (20 U.S.C. 2002(4)) is amended by strik- ‘‘(I) injuries or deaths; and (D) ENVIRONMENTAL RESTORATION INSTITU- ing ‘‘1201(a)’’ and inserting ‘‘101(a)’’. ‘‘(J) conference realignment; TIONAL GRANTS FOR TRAINING DISLOCATED DE- (H) TECH-PREP EDUCATION.—Section 347(2)(A) ‘‘(5) the actions that institutions of higher FENSE WORKERS AND YOUNG ADULTS.—Section of the Carl D. Perkins Vocational and Applied education have taken when decreasing the level 1333(i)(3) of the National Defense Authorization Technology Education Act (20 U.S.C. of participation in intercollegiate sports, or the Act for fiscal year 1994 (10 U.S.C. 2701 note) is 2394e(2)(A)) is amended by striking ‘‘1201(a)’’ number of teams, in terms of providing informa- amended— and inserting ‘‘101(a)’’. tion, advice, scholarship maintenance, coun- (i) by striking ‘‘1201(a)’’ and inserting (I) EDUCATION FOR ECONOMIC SECURITY.—Sec- seling, advance warning, and an opportunity ‘‘101(a)’’; and tion 3(6) of the Education for Economic Security for student-athletes to be involved in the deci- (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. Act (20 U.S.C. 3902(6)) is amended by striking sionmaking process; (E) ENVIRONMENTAL EDUCATION OPPORTUNI- ‘‘1201(a)’’ and inserting ‘‘101(a)’’. ‘‘(6) the administrative processes and proce- TIES PROGRAM.—Section 1334(k)(3) of the Na- (J) JAMES MADISON MEMORIAL FELLOWSHIPS.— dures used by institutions of higher education tional Defense Authorization Act for fiscal year Section 815 of the James Madison Memorial Fel- when determining whether to increase or de- 1994 (10 U.S.C. 2701 note) is amended— lowship Act (20 U.S.C. 4514) is amended— crease intercollegiate athletic teams or partici- (i) by striking ‘‘1201(a)’’ and inserting (i) in paragraph (3), by striking ‘‘1201(a)’’ and pation by student-athletes; ‘‘101(a)’’; and inserting ‘‘101(a)’’; and ‘‘(7) the budgetary or fiscal impact, if any, of (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. (ii) in paragraph (4), by striking ‘‘1201(d) of a decision by an institution of higher edu- (F) ENVIRONMENTAL SCHOLARSHIP AND FEL- the Higher Education Act of 1965’’ and inserting cation— LOWSHIP PROGRAMS.—Section 4451(b)(1) of the ‘‘14101 of the Elementary and Secondary Edu- ‘‘(A) to increase or decrease the number of National Defense Authorization Act for 1993 (10 cation Act of 1965’’. intercollegiate athletic teams or the participa- U.S.C. 2701 note) is amended— (K) BARRY GOLDWATER SCHOLARSHIPS.—Sec- tion of student-athletes; or (i) by striking ‘‘1201(a)’’ and inserting tion 1403(4) of the Barry Goldwater Scholarship ‘‘(B) to be involved in a conference realign- ‘‘101(a)’’; and and Excellence in Education Act (20 U.S.C. ment; and (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. 4702(4)) is amended— ‘‘(8) the alternatives, if any, institutions of (3) APPLICATION OF ANTITRUST LAWS TO (i) by striking ‘‘1201(a)’’ and inserting higher education have pursued in lieu of elimi- AWARD OF NEED-BASED EDUCATIONAL AID.—Sec- ‘‘101(a)’’; and nating, or severely reducing the funding for, an tion 568(c)(3) of the Improving America’s (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. intercollegiate sport, and the success of such al- Schools Act of 1994 (15 U.S.C. 1 note) is amend- (L) MORRIS K. UDALL SCHOLARSHIPS.—Section ternatives. ed— 4(6) of the Morris K. Udall Scholarship and Ex- ‘‘(b) REPORT.—The Comptroller General shall (A) by striking ‘‘1201(a)’’ and inserting cellence in National Environmental and Native submit a report regarding the results of the ‘‘101(a)’’; and American Public Policy Act of 1992 (20 U.S.C. study to the Committee on Labor and Human (B) by striking ‘‘(20 U.S.C. 1141(a))’’. 5602(6)) is amended by striking ‘‘1201(a)’’ and Resources of the Senate and the Committee on (4) RESTRICTIONS ON FORMER OFFICERS, EM- inserting ‘‘101(a)’’. Education and the Workforce of the House of PLOYEES, AND ELECTED OFFICIALS OF THE EXECU- (M) BILINGUAL EDUCATION, AND LANGUAGE EN- Representatives. TIVE AND LEGISLATIVE BRANCHES.—Section HANCEMENT AND ACQUISITION.—Section 7501(4)

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00052 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7967 of the Elementary and Secondary Education Act Act (33 U.S.C. 1262(a)(1)) is amended by striking Grant Program Act of 1994 (42 U.S.C. 13791(b)) of 1965 (20 U.S.C. 7601(4)) is amended by striking ‘‘1201’’ and inserting ‘‘101’’. is amended— ‘‘1201(a)’’ and inserting ‘‘101(a)’’. (11) POSTAL SERVICE.—Section 3626(b)(3) of (i) by striking ‘‘1201’’ each place it appears (N) GENERAL DEFINITIONS.—Section 14101(17) title 39, United States Code, is amended— and inserting ‘‘101’’; and of the Elementary and Secondary Education Act (A) by striking ‘‘1201(a)’’ and inserting (ii) by striking ‘‘(20 U.S.C. 1141(i))’’. of 1965 (20 U.S.C. 8801(17)) is amended by strik- ‘‘101(a)’’; and (M) POLICE CORPS.—The definition of institu- ing ‘‘1201(a)’’ and inserting ‘‘101(a)’’. (B) by striking ‘‘(20 U.S.C. 1141(a))’’. tion of higher education in section 200103 of the (O) NATIONAL EDUCATION STATISTICS.—Section (12) PUBLIC HEALTH AND WELFARE.— Police Corps Act (42 U.S.C. 14092) is amended— 402(c)(3) of the National Education Statistics (A) SCIENTIFIC AND TECHNICAL EDUCATION.— (i) by striking ‘‘1201(a)’’ and inserting Act of 1994 (20 U.S.C. 9001(c)(3)) is amended by Section 3(g) of the Scientific and Advanced- ‘‘101(a)’’; and striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’. Technology Act of 1992 (42 U.S.C. 1862i(g)) is (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. (6) FOREIGN RELATIONS.— amended— (N) LAW ENFORCEMENT SCHOLARSHIP PRO- (A) ENVIRONMENT AND SUSTAINABLE DEVELOP- (i) in paragraph (2)— GRAM.—The definition of institution of higher MENT EXCHANGE PROGRAM.—Section 240(d) of (I) by striking ‘‘1201(a)’’ and inserting education in section 200202 of the Law Enforce- the Foreign Relations Authorization Act, Fiscal ‘‘101(a)’’; and ment Scholarship and Recruitment Act (42 Years 1994 and 1995 (22 U.S.C. 2452 note) is (II) by striking ‘‘(20 U.S.C. 1141(a))’’; and U.S.C. 14111) is amended— amended by striking ‘‘1201(a)’’ and inserting (ii) in paragraph (3)— (i) by striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’. (I) by striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’; and (B) SAMANTHA SMITH MEMORIAL EXCHANGE ‘‘101(a)’’; and (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. PROGRAM.—Section 112(a)(8) of the Mutual Edu- (II) by striking ‘‘(20 U.S.C. 1141(a))’’. (13) TELECOMMUNICATIONS.—Section 223(h)(4) cational and Cultural Exchange Act of 1961 (22 (B) OLDER AMERICANS.—Section 102(32) of the of the Telecommunications Act of 1934 (47 U.S.C. U.S.C. 2460(a)(8)) is amended— Older Americans Act of 1965 (42 U.S.C. 3002(32)) 223(h)(4)) is amended— (i) by striking ‘‘1201(a)’’ and inserting is amended— (A) by striking ‘‘1201’’ and inserting ‘‘101’’; ‘‘101(a)’’; and (i) by striking ‘‘1201(a)’’ and inserting and (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. ‘‘101(a)’’; and (B) by striking ‘‘(20 U.S.C. 1141)’’. (C) SOVIET-EASTERN EUROPEAN TRAINING.— (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. (14) WAR AND NATIONAL DEFENSE.—Section Section 803(1) of the Soviet-Eastern European (C) JUSTICE SYSTEM IMPROVEMENT.—Section 808(3) of the David L. Boren National Security Research and Training Act of 1983 (22 U.S.C. 901(17) of the Omnibus Crime Control and Safe Education Act of 1991 (50 U.S.C. 1908(3)) is 4502(1)) is amended by striking ‘‘1201(a)’’ and Streets Act of 1968 (42 U.S.C. 3791(17)) is amend- amended— inserting ‘‘101(a)’’. ed— (A) by striking ‘‘1201(a)’’ and inserting (D) DEVELOPING COUNTRY SCHOLARSHIPS.— (i) by striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’; and Section 603(d) of the Foreign Relations Author- ‘‘101(a)’’; and (B) by striking ‘‘(20 U.S.C. 1141(a))’’. ization Act, Fiscal Years 1986 and 1987 (22 (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. (b) CROSS REFERENCES.—The Act (20 U.S.C. U.S.C. 4703(d)) is amended by striking ‘‘1201(a)’’ (D) ENERGY TECHNOLOGY COMMERCIALIZATION 1001 et seq.) is amended— and inserting ‘‘101(a)’’. SERVICES PROGRAM.—Section 362(f)(5)(A) of the (1) in section 402A(c)(2) (20 U.S.C. 1070a– (7) INDIANS.— Energy Policy and Conservation Act (42 U.S.C. 11(c)(2)), by striking ‘‘1210’’ and inserting (A) SNYDER ACT.—The last paragraph of sec- 6322(f)(5)(A)) is amended— ‘‘110’’; tion 410 of the Act entitled ‘‘An Act authorizing (i) by striking ‘‘1201(a)’’ and inserting (2) in section 481 (20 U.S.C. 1088)— appropriations and expenditures for the admin- ‘‘101(a)’’; and (A) in subsection (a)— istration of Indian Affairs, and for other pur- (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. (i) in paragraph (1)— poses’’, approved November 2, 1921 (25 U.S.C. 13) (E) ENVIRONMENTAL RESTORATION AND WASTE (I) in the matter preceding subparagraph (A), (commonly known as the Snyder Act) is amend- MANAGEMENT.—Section 3132(b)(1) of the Na- by striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’; ed by striking ‘‘1201’’ and inserting ‘‘101’’. tional Defense Authorization Act for Fiscal and (B) TRIBALLY CONTROLLED COMMUNITY COL- Years 1992 and 1993 (42 U.S.C. 7274e(b)(1)) is (II) in subparagraph (C), by striking LEGE ASSISTANCE.—Section 2(a)(5) of the Trib- amended— ‘‘1201(a)’’ and inserting ‘‘101(a)’’; and ally Controlled Community College Assistance (i) by striking ‘‘1201(a)’’ and inserting (ii) in paragraph (2)— Act (25 U.S.C. 1801(a)(5)) is amended by striking ‘‘101(a)’’; and (I) in the matter preceding clause (i) of sub- ‘‘1201(a)’’ and inserting ‘‘101(a)’’. (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. paragraph (A), by striking ‘‘1201(a)’’ and insert- (C) CONSTRUCTION OF NEW FACILITIES.—Sec- (F) HEAD START.—Section 649(c)(3) of the ing ‘‘101(a)’’; and tion 113(b)(2) of the Tribally Controlled Commu- Head Start Act (42 U.S.C. 9844(c)(3)) is amend- (II) in the matter following clause (ii) of sub- nity College Assistance Act (25 U.S.C. 1813(b)(2)) ed— paragraph (B), by striking ‘‘1201(a)’’ and insert- is amended— (i) by striking ‘‘1201(a)’’ and inserting ing ‘‘101(a)’’; (i) by striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’; and (B) in subsection (b), by striking ‘‘1201(a)’’ ‘‘101(a)’’; and (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. each place the term appears and inserting (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. (G) STATE DEPENDENT CARE DEVELOPMENT ‘‘101(a)’’; and (D) AMERICAN INDIAN TEACHER TRAINING.— GRANTS.—Section 670G(5) of the Child Care and (C) in subsection (c), by striking ‘‘1201(a)’’ Section 1371(a)(1)(B) of the Higher Education Development Block Grant Act of 1990 (42 U.S.C. each place the term appears and inserting Amendments of 1992 (25 U.S.C. 3371(a)(1)(B)) is 9877(5)) is amended by striking ‘‘1201(a)’’ and ‘‘101(a)’’; amended by striking ‘‘1201(a)’’ and inserting inserting ‘‘101(a)’’. (3) in section 485(f)(1)(I) (20 U.S.C. ‘‘101(a)’’. (H) INSTRUCTIONAL ACTIVITIES FOR LOW-IN- 1092(f)(1)(I)), by striking ‘‘1213’’ and inserting (8) LABOR.— COME YOUTH.—The matter preceding subpara- ‘‘111’’; (A) REHABILITATION DEFINITIONS.—Section graph (A) of section 682(b)(1) of the Community (4) in section 498(j)(2) (20 U.S.C. 1099c(j)(2)), 7(32) of the Rehabilitation Act of 1973 (29 U.S.C. Services Block Grant Act (42 U.S.C. 9910c(b)(1)) by striking ‘‘1201(a)(2)’’ and inserting 706(32)) is amended— ‘‘101(a)(2)’’; (i) by striking ‘‘1201(a)’’ and inserting is amended by striking ‘‘1201(a)’’ and inserting (5) in section 591(d)(2) (20 U.S.C. 1115(d)(2)), ‘‘101(a)’’; and ‘‘101(a)’’. by striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’; (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. (I) DRUG ABUSE EDUCATION.—Section 3601(7) (6) in section 631(a)(8) (20 U.S.C. 1132(a)(8))— (B) STATE PLANS.—Section 101(a)(7)(A)(iv)(II) of the Anti-Drug Abuse Act of 1988 (42 U.S.C. (A) by striking ‘‘section 1201(a)’’ each place of the Rehabilitation Act of 1973 (29 U.S.C. 11851(7)) is amended— the term appears and inserting ‘‘section 101(a)’’; 721(a)(7)(A)(iv)(II)) is amended— (i) by striking ‘‘1201(a)’’ and inserting (i) by striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’; and and ‘‘101(a)’’; and (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. (B) by striking ‘‘of 1201(a)’’ and inserting ‘‘of (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. (J) NATIONAL AND COMMUNITY SERVICE.—Sec- section 101(a)’’; and (C) JTPA DEFINITIONS.—Section 4(12) of the tion 101(13) of the National and Community (7) in section 1081(d) (20 U.S.C. 1135f(d)), by Job Training Partnership Act (29 U.S.C. Service Act of 1990 (42 U.S.C. 12511(13)) is striking ‘‘1201’’ and inserting ‘‘101(a)’’. 1503(12)) is amended by striking ‘‘1201(a)’’ and amended— TITLE II—IMPROVING TEACHER QUALITY inserting ‘‘101(a)’’. (i) by striking ‘‘1201(a)’’ and inserting SEC. 201. IMPROVING TEACHER QUALITY. (D) TUITION CHARGES.—Section 141(d)(3)(B) of ‘‘101(a)’’; and The Act (20 U.S.C. 1001) is amended by insert- the Job Training Partnership Act (29 U.S.C. (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. ing after section 112 (as added by section 105) IVILIAN COMMUNITY CORPS.—Section 1551(d)(3)(B)) is amended— (K) C the following: (i) by striking ‘‘1201(a)’’ and inserting 166(6) of the National and Community Service ‘‘101(a)’’; and Act of 1990 (42 U.S.C. 12626(6)) is amended— ‘‘TITLE II—IMPROVING TEACHER QUALITY (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. (i) by striking ‘‘1201(a)’’ and inserting ‘‘SEC. 201. PURPOSES. (9) SURFACE MINING CONTROL.—Section 701(32) ‘‘101(a)’’; and ‘‘The purpose of this title is to— of the Surface Mining Control and Reclamation (ii) by striking ‘‘(20 U.S.C. 1141(a))’’. ‘‘(1) improve student achievement; Act of 1977 (30 U.S.C. 1291(32)) is amended by (L) COMMUNITY SCHOOLS YOUTH SERVICES AND ‘‘(2) improve the quality of the current and striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’. SUPERVISION GRANT PROGRAM.—The definition future teaching force by improving the prepara- (10) POLLUTION PREVENTION.—Section of public school in section 30401(b) of the Com- tion of prospective teachers and enhancing pro- 112(a)(1) of the Federal Water Pollution Control munity Schools Youth Services and Supervision fessional development activities; and

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‘‘(3) hold institutions of higher education ac- ‘‘(6) INNOVATIVE EFFORTS.—Development and ‘‘(c) PRIORITY.—In awarding grants under countable for preparing teachers who have the implementation of innovative efforts aimed at this subpart the Secretary shall give priority to necessary teaching skills and are highly com- reducing the shortage of highly qualified teach- partnerships that involve businesses. petent in the academic content areas in which ers in high poverty urban and rural areas, and ‘‘(d) CONSIDERATION.—In awarding grants the teachers plan to teach, including training in in school districts with disproportionately high under this subpart the Secretary shall take into the effective uses of technologies in the class- numbers of limited English proficient students, consideration— room. that may include the recruitment of highly ‘‘(1) providing an equitable geographic dis- ‘‘PART A—TEACHER QUALITY qualified individuals from other occupations tribution of the grants throughout the United ‘‘Subpart 1—Teacher Quality Enhancement through alternative certification programs. States; and Grants ‘‘(7) SOCIAL PROMOTION.—Development and ‘‘(2) the proposed project’s potential for cre- implementation of efforts to address the problem ating improvement and positive change. ‘‘SEC. 211. GRANTS AUTHORIZED. of social promotion and to prepare teachers to ‘‘(e) MATCHING FUNDS.—Each partnership re- ‘‘(a) IN GENERAL.—The Secretary is author- ized to award grants to States to enable the effectively address the issues raised by ending ceiving a grant under this subpart shall provide, States to carry out the activities described in the practice of social promotion. from sources other than this subpart, an amount section 212. Each grant may be awarded for a ‘‘SEC. 213. COMPETITIVE AWARDS. equal to 25 percent of the grant in the first year, period of not more than 5 years. ‘‘(a) ANNUAL AWARDS; COMPETITIVE BASIS.— 35 percent in the second such year, and 50 per- ‘‘(b) STATE DESIGNATION.— The Secretary shall award grants under this cent in each succeeding such year, of the ‘‘(1) IN GENERAL.—A State desiring a grant subpart annually and on a competitive basis. amount of the grant, in cash or in kind, to carry under this subpart shall, consistent with State ‘‘(b) PEER REVIEW PANEL.—The Secretary out the activities supported by the grant. law, designate the chief individual or entity in shall provide the applications submitted by ‘‘(f) ONE-TIME AWARD.—A partnership may the State responsible for the State supervision of States under section 214 to a peer review panel receive a grant under this section only once. education, to administer the activities assisted for evaluation. With respect to each application, ‘‘SEC. 222. USE OF FUNDS. under this subpart. the peer review panel shall initially recommend ‘‘(a) IN GENERAL.—Grant funds under this ‘‘(2) CONSULTATION.—The individual or entity the application for funding or for disapproval. part shall be used to— designated under paragraph (1) shall consult ‘‘(c) PRIORITY.—In recommending applica- ‘‘(1) coordinate with the activities of the Gov- with the Governor, State board of education, or tions for funding to the Secretary, the panel ernor, State board of education, and State edu- State educational agency, as appropriate. shall give priority to applications from States cational agency, as appropriate; ‘‘(3) CONSTRUCTION.—Nothing in this subpart that describe activities that— ‘‘(2) provide sustained and high quality shall be construed to negate or supersede the ‘‘(1) include innovative reforms to hold insti- preservice clinical experiences including the legal authority under State law of any State tutions of higher education with teacher prepa- mentoring of prospective teachers by veteran agency, State entity, or State public official over ration programs accountable for preparing teachers; programs that are under the jurisdiction of the teachers who are highly competent in the aca- ‘‘(3) work with a school of arts and sciences to agency, entity, or official. demic content areas in which the teachers plan provide increased academic study in a proposed ‘‘(c) MATCHING REQUIREMENT.—Each State re- to teach; and teaching specialty area, through activities such ceiving a grant under this subpart shall provide, ‘‘(2) involve the development of innovative ef- as— from non-Federal sources, an amount equal to forts aimed at reducing the shortage of highly ‘‘(A) restructuring curriculum; 1 ⁄2 of the amount of the grant, in cash or in qualified teachers in high poverty urban and ‘‘(B) changing core course requirements; kind, to carry out the activities supported rural areas. ‘‘(C) increasing liberal arts focus; through the grant. ‘‘SEC. 214. APPLICATIONS. ‘‘(D) providing preparation for board certifi- ‘‘SEC. 212. USE OF FUNDS. ‘‘(a) IN GENERAL.—Each State desiring a cation; and ‘‘A State that receives a grant under this sub- grant under this subpart shall submit an appli- ‘‘(E) assessing and improving alternative cer- part shall use the grant funds to reform teacher cation to the Secretary at such time, in such tification, including mentoring and induction preparation requirements, and to ensure that manner and accompanied by such information support; current and future teachers possess the nec- as the Secretary may require. ‘‘(4) substantially increasing interaction and essary teaching skills and academic content ‘‘(b) CONTENT OF APPLICATIONS.—Such appli- 2-way collaboration between— knowledge in the subject areas in which the cation shall include a description of how the ‘‘(A) faculty at institutions of higher edu- teachers are assigned to teach, by carrying out State intends to use funds provided under this cation; and 1 or more of the following activities: subpart. ‘‘(B) new and experienced teachers, prin- ‘‘(1) REFORMS.—Implementing reforms that cipals, and other administrators at elementary hold institutions of higher education with ‘‘Subpart 2—Teacher Training Partnerships Grants schools or secondary schools; teacher preparation programs accountable for ‘‘(5) prepare teachers to use technology effec- preparing teachers who are highly competent in ‘‘SEC. 221. GRANTS AUTHORIZED. tively in the classroom; the academic content areas in which the teach- ‘‘(a) IN GENERAL.—The Secretary is author- ‘‘(6) integrate reliable research-based teaching ers plan to teach, which may include the use of ized to award grants to teacher training part- methods into the curriculum; rigorous subject matter competency tests and the nerships to enable the partnerships to carry out ‘‘(7) broadly disseminate information on effec- requirement that a teacher have an academic the activities described in section 222. Each tive practices used by the partnership; and major in the subject area, or related discipline, grant may be awarded for a period of not more ‘‘(8) provide support, including preparation in which the teacher plans to teach. than 5 years. time, for interaction between faculty at an insti- ‘‘(2) CERTIFICATION OR LICENSURE REQUIRE- ‘‘(b) DEFINITIONS.—In this part: tution of higher education and classroom teach- MENTS.—Reforming teacher certification or li- ‘‘(1) TEACHER TRAINING PARTNERSHIPS.— ers. censure requirements to ensure that new teach- ‘‘(A) IN GENERAL.—The term ‘teacher training ‘‘(b) SPECIAL RULE.—No individual member of ers have the necessary teaching skills and aca- partnership’ means a partnership that— a partnership shall retain more than 50 percent demic content knowledge in the subject areas in ‘‘(i) shall include a school of arts and of the funds made available to the partnership which teachers are assigned to teach. sciences, a school or program of education, a under this subpart. ‘‘(3) ALTERNATIVES TO TRADITIONAL PREPARA- local educational agency, and a kindergarten ‘‘(c) CONSTRUCTION.—Nothing in this part TION FOR TEACHING.—Providing prospective through grade 12 school; shall be construed to prohibit a teacher training teachers alternatives to traditional preparation ‘‘(ii) shall include a high need local edu- partnership from using grant funds to coordi- for teaching through programs at colleges of cational agency or kindergarten through grade nate with the activities of more than 1 Gov- arts and sciences or at nonprofit educational or- 12 school; and ernor, State board of education, or State edu- ganizations. ‘‘(iii) may include a State educational agency, cational agency. ‘‘(4) ALTERNATIVE ROUTES.—Funding pro- a pre-kindergarten program, a nonprofit edu- grams that establish, expand, or improve alter- cational organization, a business, or a teacher ‘‘SEC. 223. APPLICATIONS. native routes to State certification for highly organization. ‘‘Each teacher training partnership desiring a qualified individuals from other occupations ‘‘(B) HIGH NEED.—A local educational agency grant under this subpart shall submit an appli- and recent college graduates with records of or kindergarten through grade 12 school shall be cation to the Secretary at such time, in such academic distinction, including support during considered high need for purposes of subpara- manner, and accompanied by such information the initial teaching experience. graph (A)(ii) if the agency or school serves an as the Secretary may require. Each such appli- ‘‘(5) RECRUITMENT; PAY; REMOVAL.—Devel- area within a State in which there is— cation shall— oping and implementing effective mechanisms to ‘‘(i) a large number of individuals from fami- ‘‘(1) describe the composition of the partner- ensure that schools are able to effectively recruit lies with incomes below the poverty line; ship and the involvement of each partner in the highly qualified teachers, to financially reward ‘‘(ii) a high percentage of teachers not teach- development of the application; those teachers and principals whose students ing in the content area in which the teachers ‘‘(2) contain a needs assessment that includes have made significant progress toward high aca- were trained to teach; or an analysis of the needs of all the partners with demic performance, such as through perform- ‘‘(iii) a high teacher turnover rate. respect to teaching and learning; ance-based compensation systems and access to ‘‘(2) KINDERGARTEN THROUGH GRADE 12 ‘‘(3) contain a resource assessment that in- ongoing professional development opportunities SCHOOL.—The term ‘kindergarten through grade cludes— for teachers and administrators, and to remove 12 school’ means a school having any one of the ‘‘(A) an analysis of resources available to the teachers who are not qualified. grades kindergarten through grade 12. partnership;

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00054 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7969 ‘‘(B) a description of the intended use of the ‘‘(ii) Increasing the percentage of elementary tial progress in meeting the purposes, goals, ob- grant funds; school classes taught by teachers— jectives and measures, as appropriate, by the ‘‘(C) a description of how the partnership will ‘‘(I) with academic majors in the arts and end of the second year of the grant, the grant coordinate with other teacher training or profes- sciences; or shall not be continued for the third year of the sional development programs, including Federal, ‘‘(II) who can demonstrate high levels of com- grant. State, local, private, and other programs; petence through experience in relevant content ‘‘SEC. 233. EVALUATION AND DISSEMINATION. ‘‘(D) a description of how the activities as- areas. ‘‘The Secretary shall evaluate the activities sisted under this subpart are consistent with ‘‘(E) DECREASING SHORTAGES FOR PROFES- funded under this part and report the Sec- educational reform activities that promote stu- SIONAL DEVELOPMENT.—Decreasing shortages of retary’s findings to the Committee on Labor and dent achievement; and qualified teachers in poor urban and rural Human Resources of the Senate and the Com- ‘‘(E) a description of the commitment of the areas. mittee on Education and the Workforce of the resources of the partnership to the activities as- ‘‘(F) INCREASING OPPORTUNITIES.—Increasing House of Representatives. The Secretary shall sisted under this subpart, including financial opportunities for enhanced and ongoing profes- broadly disseminate successful practices devel- support, faculty participation, and time commit- sional development that improves the academic oped by the States and teacher training partner- ments; content knowledge of teachers in the subject ships under this part, and shall broadly dissemi- ‘‘(4) describe how the partnership will include areas in which the teachers are certified to nate information regarding such practices so de- the participation of the schools, colleges, or de- teach or in which the teachers are working to- veloped that were found to be ineffective. partments of arts and sciences within an insti- ward certification to teach. ‘‘SEC. 234. INTERNATIONAL STUDY AND REPORT. tution of higher education to ensure the integra- ‘‘(G) TECHNOLOGY INTEGRATION.—Increasing ‘‘(a) STUDY.—The Secretary shall conduct a tion of teaching techniques and content in the number of teachers prepared to integrate teaching preparation; study through the National Center for Edu- technology in the classroom. cation Statistics regarding the ways teachers are ‘‘(5) describe how the partnership will restruc- ‘‘(2) TEACHER QUALIFICATIONS PROVIDED TO ture and improve teaching, teacher training, trained and the extent to which teachers in the PARENT UPON REQUEST.—Any local educational United States and other comparable countries and development programs, and how such sys- agency that benefits from the activities assisted temic changes will contribute to increased stu- are teaching in areas other than the teachers’ under subpart 1 shall make available, upon re- field of study or expertise. The study will exam- dent achievement; quest and in an understandable and uniform ‘‘(6) describe how the partnership will prepare ine specific fields and will outline the nature format, to any parent of a student attending and extent of the problem of out-of-field teach- teachers to work with diverse student popu- any school served by the local educational agen- lations, including individuals with disabilities ing in the United States and in other countries cy, information regarding the qualifications of that are considered comparable to the United and limited English proficient individuals; the student’s classroom teacher with regard to ‘‘(7) describe how the partnership will prepare States. The study shall include, at a minimum, the subject matter in which the teacher provides teachers to use technology; all the countries that participated in the Third instruction. The local educational agency shall ‘‘(8) contain a dissemination plan regarding International Mathematics and Science Study inform parents that the parents are entitled to knowledge and information with respect to ef- (TIMSS). receive the information upon request. fective teaching practices, and a description of ‘‘(b) REPORT.—The Secretary shall report to ‘‘(b) TEACHER TRAINING PARTNERSHIP EVAL- how such knowledge and information will be im- Congress regarding the results of the study de- UATION PLAN.—Each teacher training partner- plemented in elementary schools or secondary scribed in subsection (a). ship receiving a grant under subpart 2 shall es- schools as well as institutions of higher edu- ‘‘SEC. 235. ACCOUNTABILITY FOR PROGRAMS tablish an evaluation plan that includes strong cation; THAT PREPARE TEACHERS. performance objectives established in negotia- ‘‘(9) describe the commitment of the partner- ‘‘(a) INFORMATION COLLECTION AND PUBLICA- tion with the Secretary at the time of the grant ship to continue the activities assisted under TION.— award. The plan shall include objectives and this subpart without grant funds provided ‘‘(1) DEFINITIONS.— under this subpart; and measures for— ‘‘(A) Within six months of the date of enact- ‘‘(10) describe how the partnership will in- ‘‘(1) increased student achievement for all stu- ment of the Higher Education Amendments of volve and include parents in the reform process. dents as measured by increased graduation 1998, the Commissioner of the National Center rates, decreased dropout rates, or higher scores ‘‘Subpart 3—General Provisions for Education Statistics, in consultation with on local, State, or other assessments for a year ‘‘SEC. 231. ACCOUNTABILITY AND EVALUATION. States and institutions of higher education, compared to student achievement as determined shall develop key definitions and uniform meth- ‘‘(a) TEACHER QUALITY ENHANCEMENT by the rates or scores, as the case may be, for GRANTS.— ods of calculation for terms related to the per- the year prior to the year for which a grant formance of elementary school and secondary ‘‘(1) ACCOUNTABILITY REPORT.—A State that under this part is received; receives a grant under subpart 1 shall submit an school teacher preparation programs. ‘‘(2) increased teacher retention in the first 3 ‘‘(B) In complying with this section, the Sec- annual accountability report to the Secretary, years of a teacher’s career; the Committee on Labor and Human Resources retary and State shall ensure that fair and equi- ‘‘(3) increased success in the passage rate for table methods are used in reporting and that of the Senate, and the Committee on Education initial State certification or licensure of teach- and the Workforce of the House of Representa- they protect the privacy of individuals. ers; ‘‘(2) INFORMATION.— tives. Such report shall include a description of ‘‘(4) increased percentages of secondary school the degree to which the State, in using funds ‘‘(A) STATE REPORT CARD ON THE QUALITY OF classes taught in core academic subject areas by TEACHER PREPARATION.—States that receive provided under subpart 1, has made substantial teachers— progress in meeting the following goals: funds under this Act shall provide to the Sec- ‘‘(A) with academic majors in those areas or retary, within two years of enactment of the ‘‘(A) STUDENT ACHIEVEMENT.—Increasing stu- in a related field; dent achievement for all students, as measured Higher Education Amendments of 1998, and an- ‘‘(B) who can demonstrate a high level of nually thereafter, in a uniform and comprehen- by increased graduation rates, decreased drop- competence through rigorous academic subject out rates, or higher scores on local, State or sible manner that conforms with the definitions area tests; and and methods established in subsection (a)(1), a other assessments. ‘‘(C) increasing the percentage of elementary ‘‘(B) RAISING STANDARDS.—Raising the State State report card on the quality of teacher prep- school classes taught by teachers with academic academic standards required to enter the teach- aration, which shall include at least the fol- majors in the arts and sciences; ing profession, including, where appropriate, in- lowing: ‘‘(5) increased integration of technology in centives to incorporate the requirement of an ‘‘(i) A description of the teacher certification teacher preparation and in classroom instruc- academic major in the subject, or related dis- and licensure assessments, and any other cer- tion; cipline, in which the teacher plans to teach. tification and licensure requirements, used by ‘‘(6) restructuring or change of methodology ‘‘(C) INITIAL CERTIFICATION OR LICENSURE.— each State. courses to reflect best practices learned from ele- Increasing success in the passage rate for initial ‘‘(ii) The standards and criteria that prospec- mentary schools, secondary schools or other en- State teacher certification or licensure, or in- tive teachers must meet in order to attain initial tities; creasing numbers of highly qualified individuals teacher licensing or certification and to be li- ‘‘(7) increased dissemination of information being certified or licensed as teachers through censed to teach particular subjects or in par- about effective teaching strategies and practices; alternative programs. ticular grades within the State. and ‘‘(D) CORE ACADEMIC SUBJECTS.—(i) Increas- ‘‘(iii) A description of the extent to which ing the percentage of secondary school classes ‘‘(8) other effects of increased integration those assessments and requirements are aligned taught in core academic subject areas by teach- among members of the partnership. with the State’s standards and assessments for ers— ‘‘SEC. 232. REVOCATION OF GRANT. students. ‘‘(I) with academic majors in those areas or in ‘‘Each State or teacher training partnership ‘‘(iv) The percentage of teaching candidates a related field; receiving a grant under this part shall report who passed each of the assessments used by the ‘‘(II) who can demonstrate a high level of annually on progress toward meeting the pur- State for licensure and certification, and the competence through rigorous academic subject poses of this part, and the goals, objectives and ‘cut score’ on each assessment that determines area tests; or measures described in section 231. If the Sec- whether a candidate has passed that assess- ‘‘(III) who can demonstrate high levels of retary, after consultation with the peer review ment. competence through experience in relevant con- panel described in section 213(b) determines that ‘‘(v) The percentage of teaching candidates tent areas. the State or partnership is not making substan- who passed each of the assessments used by the

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00055 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7970 CONGRESSIONAL RECORD — SENATE July 10, 1998 State for licensure and certification, ‘‘(iv) Whether the program has been des- laureate degrees for the transfer of credits in disaggregated by the teacher preparation pro- ignated as low-performing by the State under teacher preparation; gram in that State from which the teacher can- subsection (b)(1)(B). ‘‘(ii) State agencies that have responsibility didate received his or her most recent degree. In addition to the actions authorized in section for policies related to teacher preparation and States shall make these data available widely 487(c), the Secretary may impose a fine not to teacher certification or licensure; and and publicly. exceed $25,000 on a teacher preparation program ‘‘(iii) other public and private, nonprofit ‘‘(vi) Information on the extent to which for failure to provide the information described agencies and organizations that serve, or are lo- teachers in the State have been given waivers of in subsection (a)(2)(B) in a timely or accurate cated in, communities served by the local edu- State licensure or certification requirements, in- manner. cational agencies in the partnership, and that cluding the proportion of such teachers distrib- ‘‘(b) ACCOUNTABILITY.— have an interest in teacher recruitment, prepa- uted across high and low poverty districts and ‘‘(1) States receiving funding under this Act, ration, and induction. across subject areas. shall develop and implement, no later than three ‘‘(2) SUPPORT SERVICES.—The term ‘support ‘‘(vii) A description of each State’s alternative years after enactment of the Higher Education services’ means— routes to teacher certification, if any, and the Amendments of 1998, the following teacher prep- ‘‘(A) academic advice and counseling; percentage of teachers certified through alter- aration program accountability measures and ‘‘(B) tutorial services; native certification routes who pass State licens- publish the measures publicly and widely: ‘‘(C) mentoring; and ing assessments. ‘‘(A) A description of State criteria for identi- ‘‘(D) child care and transportation, if funding ‘‘(viii) For each State, a description of pro- fying low-performing teacher preparation pro- for those services cannot be arranged from other posed criteria for assessing the performance of grams which may include a baseline pass rate sources. teacher preparation programs within institu- on State licensing assessments and other indica- ‘‘(3) UNDERSERVED AREA.—The term ‘under- tions of higher education, including but not lim- tors of teacher candidate knowledge and skill. served area’ means— ‘‘(A) the area served by the 3 local edu- ited to indicators of teacher candidate knowl- States that do not employ assessments as part of cational agencies in the State that have the edge and skills as described in subsection their criteria for licensing or certification are highest numbers of children, ages 5 through 17, (b)(1)(A). not required to meet this criterion until such from families below the poverty level (based on ‘‘(B) REPORT OF THE SECRETARY ON THE QUAL- time as the State initiates the use of such assess- data satisfactory to the Secretary); and ITY OF TEACHER PREPARATION.—The Secretary ments. ‘‘(B) the area served by any other local edu- shall publish annually and make widely avail- ‘‘(B) Procedures for identifying low-per- cational agency in which the percentage of such able a report card on teacher qualifications and forming teacher preparation programs based on children is at least 20 percent, or the number of preparation in the United States, including all the criteria developed by the State as required such children is at least 10,000. the information reported in subparagraphs (A) by subsection (b)(1)(A), and publish a list of (i)–(viii), beginning three years after enactment those programs. ‘‘SEC. 253. GRANT AUTHORITY AND CONDITIONS. of the Higher Education Amendments of 1998. ‘‘(C) States that have, prior to enactment, al- ‘‘(a) GRANTS AUTHORIZED.— The Secretary shall report to Congress a com- ready conformed with subsections (b)(1) (A)–(B), ‘‘(1) GRANTS.— parison of States’ efforts to improve teaching need not change their procedures, unless the ‘‘(A) IN GENERAL.—From amounts appro- quality. The Secretary shall also report on the State chooses to do so. priated under section 262 the Secretary shall national mean and median scores on any stand- ‘‘(2) Not later than four years after enactment award grants, on a competitive basis, to eligible ardized test that is used in more than one State of the Higher Education Amendments of 1998, partnerships to enable the eligible partnerships for teacher licensure or certification. In the case any teacher preparation programs for which the to pay the Federal share of the cost of carrying of teacher preparation programs with fewer State has withdrawn its approval or terminated out the activities described in section 255. ‘‘(B) DURATION.—Each grant awarded under than 10 graduates taking any single initial its financial support due to the low performance subparagraph (A) shall be awarded for a period teacher certification assessment during any ad- of its teacher preparation program based on pro- not to exceed 5 years. ministration of such assessment, the Secretary cedures described in subsection (b)(1)— ‘‘(A) shall be ineligible for any funding for ‘‘(2) CONTINUING ELIGIBILITY; REVIEW OF shall collect and publish information with re- professional development activities awarded by PROGRESS.—The Secretary shall— spect to an average pass rate on State certifi- the Department of Education; and ‘‘(A) continue to make grant payments for the cation or licensure assessments taken over 3 ‘‘(B) shall not be permitted to accept or enroll second and succeeding years of a grant awarded years. any student that receives aid under title IV of under this part, only after determining that the ‘‘(C) INSTITUTIONAL REPORT CARDS ON THE this Act in its teacher preparation program. eligible partnership is making satisfactory QUALITY OF TEACHER PREPARATION.—Each insti- progress in carrying out the activities under the tution of higher education that conducts a ‘‘SEC. 236. AUTHORIZATION OF APPROPRIATIONS. grant; and teacher preparation program that enrolls stu- ‘‘There are authorized to be appropriated to carry out this part $300,000,000 for fiscal year ‘‘(B) conduct an intensive review of the eligi- dents receiving Federal assistance shall, not ble partnerships’s progress under the grant, later than two years after the enactment of the 1999 and such sums as necessary for each of the 4 succeeding fiscal years, of which— with the assistance of outside experts, before Higher Education Amendments of 1998, and an- making grant payments for the fourth year of nually thereafter, report, in a uniform and com- ‘‘(1) 50 percent shall be available for each fis- cal year to carry out subpart 1; and the grant. prehensible manner, the following information ‘‘(3) MAXIMUM NUMBER.—No eligible partner- to the State, and the general public, including ‘‘(2) 50 percent shall be available for each fis- cal year to carry out subpart 2. ship may receive more than 2 grants under this through publications such as course catalogues subsection. ‘‘PART B—RECRUITING NEW TEACHERS and promotional materials sent to potential ap- ‘‘(b) MATCHING REQUIREMENT.— FOR UNDERSERVED AREAS plicants, high school guidance counselors, and ‘‘(1) FEDERAL SHARE.—The Federal share of prospective employers of its program graduates, ‘‘SEC. 251. STATEMENT OF PURPOSE. the cost of activities carried out under a grant in a manner that conforms with the definitions ‘‘It is the purpose of this part to— made under subsection (a) shall not exceed— and methods established under subsection (a)(1): ‘‘(1) provide scholarships and, as necessary, ‘‘(A) 70 percent of the cost in the first year of ‘‘(i) For the most recent year for which the in- support services for students with high potential the grant; formation is available, the passing rate of its to become effective teachers, particularly minor- ‘‘(B) 60 percent in the second year; graduates on the teacher certification and licen- ity students; ‘‘(C) 60 percent in the third year; sure assessments of the State in which it is lo- ‘‘(2) increase the quality and number of new ‘‘(D) 50 percent in the fourth year; and cated, but only for those students who took teachers nationally; and ‘‘(E) 50 percent in the fifth year and any suc- those assessments within three years of com- ‘‘(3) increase the ability of schools in under- ceeding year (including each year of the second pleting the program. A comparison of the pro- served areas to recruit a qualified teaching grant, if any). gram’s pass rate with the State average pass staff. ‘‘(2) NON-FEDERAL SHARE.—The non-Federal rate shall be included as well. In the case of ‘‘SEC. 252. DEFINITIONS. share of activities carried out with a grant teacher preparation programs with fewer than ‘‘In this part— under subsection (a) may be provided in cash or 10 graduates taking any single initial teacher ‘‘(1) ELIGIBLE PARTNERSHIP.— in kind, fairly evaluated, and may be obtained certification assessment during any administra- ‘‘(A) IN GENERAL.—The term ‘eligible partner- from any non-Federal public or private source. tion of such assessment, the institution shall ship’ means a partnership consisting of— ‘‘(c) PLANNING GRANTS.— collect and publish information with respect to ‘‘(i) an institution of higher education that ‘‘(1) IN GENERAL.—The Secretary may award an average pass rate on State certification or li- awards baccalaureate degrees and prepares planning grants to eligible partnerships that are censure assessments taken over 3 years. teachers for their initial entry into the teaching not ready to implement programs under sub- ‘‘(ii) The number of students in the program, profession; and section (a). the average number of hours of supervised prac- ‘‘(ii) one or more local educational agencies ‘‘(2) DURATION.—Each planning grant shall tice teaching required for those in the program, that serve underserved areas. be for a period of not more than 1 year, which and the faculty-student ratio in supervised ‘‘(B) ADDITIONAL PARTNERS.—Such a partner- shall be in addition to the period of any grant practice teaching. ship may also include— under subsection (a). ‘‘(iii) In States that approve or accredit teach- ‘‘(i) 2-year institutions of higher education ‘‘(3) REQUIREMENT.—Any recipient of a plan- er education programs, a statement of whether that operate teacher preparation programs and ning grant under this subsection that wishes to the institution’s program is so approved or ac- maintain articulation agreements, with the in- receive a grant under subsection (a)(1) shall sep- credited. stitutions of higher education that award bacca- arately apply for a grant under that subsection.

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00056 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7971 ‘‘SEC. 254. GRANT APPLICATIONS. partnership, to hire qualified scholarship recipi- ‘‘(1) the placement and retention of a substan- ‘‘(a) APPLICATIONS REQUIRED.—Any eligible ents in the schools served by the agencies and in tial number of high-quality graduates in teach- partnership desiring to receive a grant under the subject areas or grade levels for which the ing positions in underserved, high-poverty this part shall submit an application to the Sec- scholarship recipients will be trained, and a de- schools; retary at such time, in such form, and con- scription of the actions the participating institu- ‘‘(2) the adoption of effective programs that taining such information as the Secretary may tion of higher education, the participating local meet the teacher preparation needs of high-pov- require. educational agencies, and the other partners erty urban and rural areas; and ‘‘(b) APPLICATION CONTENTS.—Each applica- will take to facilitate the successful transition of ‘‘(3) effective partnerships with elementary tion for a grant under section 253(a) shall in- the recipients into teaching; and schools and secondary schools that are sup- clude— ‘‘(7) a description of the eligible partnership’s porting improvements in student achievement. ‘‘(1) a designation of the institution or agen- plan for institutionalizing the activities the ‘‘SEC. 257. DURATION AND AMOUNT OF ASSIST- cy, within the eligible partnership, that will partnership is carrying out under this part, so ANCE; RELATION TO OTHER ASSIST- serve as the fiscal agent for the grant; that the activities will continue once Federal ANCE. ‘‘(2) information on the quality of the teacher funding ceases. ‘‘(a) DURATION OF ASSISTANCE.—No individual preparation program of the institution of higher ‘‘SEC. 255. USES OF FUNDS. may receive scholarship assistance under this education participating in the eligible partner- ‘‘(a) IN GENERAL.—Each eligible partnership part— ship and how the eligible partnership will en- receiving a grant under section 523(a) shall use ‘‘(1) for more than 5 years of postsecondary sure, through improvements in the eligible part- the grant funds for the following: education; and nership’s teacher preparation practices or other ‘‘(1) SCHOLARSHIPS.—Scholarships to help stu- ‘‘(2) unless that individual satisfies the re- appropriate strategies, that scholarship recipi- dents pay the costs of tuition, room, board, and quirements of section 484(a)(5). ents will receive high-quality preparation; other expenses of completing a teacher prepara- ‘‘(b) AMOUNT OF ASSISTANCE.—No individual ‘‘(3) a description of the assessment the mem- tion program. may receive a scholarship awarded under this bers of the eligible partnership have under- ‘‘(2) SUPPORT SERVICES.—Support services, if part that exceeds the cost of attendance, as de- taken— needed to enable scholarship recipients to com- fined in section 472, at the institution of higher ‘‘(A) to determine— plete postsecondary education programs. education the individual is attending. ‘‘(i) the most critical needs of the local edu- ‘‘(3) FOLLOWUP SERVICES.—Followup services ‘‘(c) RELATION TO OTHER ASSISTANCE.—A cational agencies, particularly the needs of provided to former scholarship recipients during scholarship awarded under this part— schools in high-poverty areas, for new teachers the recipients’ first 3 years of teaching. ‘‘(1) shall not be reduced on the basis of the (which may include teachers in particular sub- ‘‘(4) PAYMENTS.—Payments to partner local individual’s receipt of other forms of Federal ject areas or at certain grade levels); and educational agencies, if needed to enable the student financial assistance; and ‘‘(ii) how the project carried out under the agencies to permit paraprofessional staff to par- ‘‘(2) shall be regarded as other financial as- grant will address those needs; and ticipate in teacher preparation programs (such ‘‘(B) that reflects the input of all significant sistance available to the student, within the as the cost of release time for the staff). entities in the community (including organiza- meaning of sections 471(3) and 480(j)(1), in de- ‘‘(5) ADDITIONAL COURSES.—If appropriate, tions representing teachers and parents) that termining the student’s eligibility for grant, and if no other funds are available for, paying have an interest in teacher recruitment, prepa- loan, or work assistance under title IV. the costs of additional courses taken by former ration, and induction; ‘‘SEC. 258. SCHOLARSHIP CONDITIONS. scholarship recipients during the recipients’ ini- ‘‘(4) a description of the project the eligible ‘‘(a) IN GENERAL.—A recipient of a scholar- tial 3 years of teaching. partnership will carry out with the grant, in- ship under this part shall continue to receive ‘‘(b) PLANNING GRANTS.—A recipient of a cluding information regarding— the scholarship assistance only as long as the planning grant under section 253(c) shall use ‘‘(A) the recruitment and outreach efforts the recipient is— the grant funds for the costs of planning for the eligible partnership will undertake to publicize ‘‘(1) enrolled as a full-time student and pur- implementation of a grant under section 253(a). the availability of scholarships and other assist- suing a course of study leading to teacher cer- ance under the program; ‘‘SEC. 256. SELECTION OF APPLICANTS. tification, unless the recipient is working in a ‘‘(B)(i) the number and types of students that ‘‘(a) PEER REVIEW.—The Secretary, using a public school (as a paraprofessional, or as a the eligible partnership will serve under the pro- peer review process, shall select eligible partner- teacher under emergency credentials) while par- gram, which may include education paraprofes- ships to receive funding under this part on the ticipating in the program; and sionals seeking to achieve full teacher certifi- basis of— ‘‘(2) maintaining satisfactory progress as de- cation or licensure; teachers whom the partner ‘‘(1) the quality of the teacher preparation termined by the institution of higher education local educational agencies have hired under program offered by the institution participating participating in the partnership. emergency certification or licensure procedures; in the partnership; ‘‘(b) SPECIAL RULE. Each eligible partnership or former military personnel, mid-career profes- ‘‘(2) the quality of the program carried out shall modify the application of section 257(a)(1) sionals, or AmeriCorps or Peace Corps volun- under the application; and and of subsection (a)(1) to the extent necessary teers, who desire to enter teaching; and ‘‘(3) the capacity of the partnership to carry to accommodate the rights of individuals with ‘‘(ii) the criteria that the eligible partnership out the grant successfully. disabilities under section 504 of the Rehabilita- will use in selecting the students, including cri- ‘‘(b) CRITERIA.— tion Act of 1973. ‘‘(1) IN GENERAL.—In awarding grants under teria to determine whether individuals have the ‘‘SEC. 259. SERVICE REQUIREMENTS. capacity to benefit from the program, complete section 253(a), the Secretary shall seek to ensure ‘‘(a) REQUIREMENT.—Each eligible partnership teacher certification requirements, and become that— ‘‘(A) in the aggregate, eligible partnerships receiving a grant under this part shall enter effective teachers; into an agreement, with each student to whom ‘‘(C) the activities the eligible partnership will carry out a variety of approaches to preparing the partnership awards a scholarship under this carry out under the grant, including a descrip- new teachers; and part, providing that a scholarship recipient who tion of, and justification for, any support serv- ‘‘(B) there is an equitable geographic distribu- completes a teacher preparation program under ices the institution of higher education partici- tion of the grants. this part shall, within 7 years of completing that pating in the eligible partnership will offer to ‘‘(2) SPECIAL CONSIDERATION.—In addition to program, teach full-time for at least 5 years in participating students; complying with paragraph (1), the Secretary a high-poverty school in an underserved geo- ‘‘(D) the number and funding range of the shall give special consideration to— graphic area or repay the amount of the schol- scholarships the institution will provide to stu- ‘‘(A) applications most likely to result in the arship, under the terms and conditions estab- dents; and preparation of increased numbers of individuals lished by the Secretary. ‘‘(E) the procedures the institution will estab- with high potential for effective teaching who ‘‘(b) REGULATIONS. The Secretary shall pre- lish for entering into, and enforcing, agreements are minority individuals; scribe regulations relating to the requirements of with scholarship recipients regarding the recipi- ‘‘(B) applications from partnerships that have subsection (a), including any provisions for ents’ fulfillment of the service commitment de- as members of the partnerships historically waiver of those requirements. scribed in section 259; Black colleges and universities, Hispanic-serv- ‘‘(5) a description of how the institution will ing institutions, and Tribal Colleges and Uni- ‘‘SEC. 260. EVALUATION. use funds provided under the grant only— versities; or ‘‘The Secretary shall provide for an evalua- ‘‘(A) to increase the number of students— ‘‘(C) applications from partnerships that pro- tion of the program carried out under this part, ‘‘(i) with high potential to be effective teach- pose to carry out programs that use innovative which shall asses such issues as— ers; means, including technology, to recruit for par- ‘‘(1) whether institutions participating in the ‘‘(ii) participating in the institution’s teacher ticipation in the activities assisted under the eligible partnerships are successful in preparing preparation programs; or programs students who are Native Hawaiian, scholarship recipients to teach to high State and ‘‘(iii) in the particular type or types of prepa- Alaska Native, or Native American Pacific Is- local standards; ration programs that the grant will support; or lander. ‘‘(2) whether scholarship recipients are suc- ‘‘(B) to increase the number of graduates, who ‘‘(c) SECOND FIVE-YEAR GRANTS.—In selecting cessful in completing teacher preparation pro- are minority individuals, with high potential to eligible partnerships to receive second year grams, becoming fully certified teachers, and ob- be effective teachers; grant payments under this part, the Secretary taining teaching positions in underserved areas, ‘‘(6) a description of the commitments, by the shall give a preference to eligible partnerships and whether the recipients continue teaching in local educational agencies participating in the whose projects have resulted in— those areas over a period of years;

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‘‘(3) the national impact of the program in as- (B) in paragraph (4), by striking ‘‘723’’ and ‘‘(d) WAIT-OUT-PERIOD.—Each eligible insti- sisting local educational agencies in under- inserting ‘‘343’’; tution that received a grant under this part for served areas to recruit, prepare, and retain di- (C) in the matter preceding subparagraph (A) a 5-year period shall not be eligible to receive an verse, high-quality teachers in the areas in of paragraph (5), by striking ‘‘724(b)’’ and in- additional grant under this part until 2 years which the agencies have the greatest needs; serting ‘‘344(b)’’; after the date on which the 5-year grant period ‘‘(4) the long-term impact of the grants on (D) in paragraph (8), by striking ‘‘725(1)’’ and terminates. teacher preparation programs conducted by in- inserting ‘‘345(1)’’; and (c) AMERICAN INDIAN TRIBALLY CONTROLLED stitutions of higher education participating in (E) in paragraph (9), by striking ‘‘727’’ and COLLEGES AND UNIVERSITIES.—Section 316 (20 the eligible partnership and on the institutions’ inserting ‘‘347’’; U.S.C. 1059c) is amended to read as follows: relationships with their partner local edu- (5) in section 343 (as redesignated by sub- ‘‘SEC. 316. AMERICAN INDIAN TRIBALLY CON- cational agencies and other members of the section (a)(4)) (20 U.S.C. 1132c–2)— TROLLED COLLEGES AND UNIVER- partnership; and (A) in subsection (a), by striking ‘‘724’’ and SITIES. ‘‘(5) the relative effectiveness of different ap- inserting ‘‘344’’; and ‘‘(a) PROGRAM AUTHORIZED.—The Secretary proaches for preparing new teachers to teach in (B) in subsection (b)— shall provide grants and related assistance to underserved areas, including their effectiveness (i) in the matter preceding paragraph (1), by American Indian Tribal Colleges and Univer- in preparing new teachers to teach to high con- striking ‘‘725(1) and 726’’ and inserting ‘‘345(1) sities to enable such institutions to improve and tent and performance standards. and 346’’; expand their capacity to serve Indian students. ‘‘SEC. 261. NATIONAL ACTIVITIES. (ii) in paragraph (10), by striking ‘‘724’’ and ‘‘(b) DEFINITIONS.—In this section: ‘‘The Secretary may reserve not more than 5 inserting ‘‘344’’; and ‘‘(1) INDIAN.—The term ‘Indian’ has the mean- percent of the funds appropriated for this part (iii) in subsection (d), by striking ‘‘723(c)(1)’’ ing given the term in section 2 of the Tribally for any fiscal year for— and inserting ‘‘343(c)(1)’’; Controlled College or University Assistance Act ‘‘(1) peer review of applications; (6) in section 345(2) (as redesignated by sub- of 1978. ‘‘(2) conducting the evaluation required under section (a)(4)) (20 U.S.C. 1132c–4(2)), by striking ‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ section 260; and ‘‘723’’ and inserting ‘‘343’’; has the meaning given the term in section 2 of ‘‘(3) technical assistance. (7) in section 348 (as redesignated by sub- the Tribally Controlled College or University As- section (a)(4)) (20 U.S.C. 1132c–7), by striking ‘‘SEC. 262. AUTHORIZATION OF APPROPRIATIONS. sistance Act of 1978. ‘‘725(1)’’ and inserting ‘‘345(1)’’; ‘‘There are authorized to be appropriated to ‘‘(3) TRIBAL COLLEGE OR UNIVERSITY.—The (8) in section 353(a) (as redesignated by sub- carry out this part $37,000,000 for fiscal year term ‘Tribal College or University’ has the section (a)(7)) (20 U.S.C. 1135b–2(a))— 1999 and such sums as may be necessary for meaning give the term ‘tribally controlled col- (A) in paragraph (1), by striking ‘‘1046(6)’’ each of the 4 succeeding fiscal years.’’. lege or university’ in section 2 of the Tribally and inserting ‘‘365(6)’’; Controlled College or University Assistance Act TITLE III—INSTITUTIONAL AID (B) in paragraph (2), by striking ‘‘1046(7)’’ of 1978, and includes an institution listed in the SEC. 301. TRANSFERS AND REDESIGNATIONS. and inserting ‘‘365(7)’’; Equity in Educational Land Grant Status Act of (a) IN GENERAL.—Title III (20 U.S.C. 1051 et (C) in paragraph (3), by striking ‘‘1046(8)’’ 1994. seq.) is amended— and inserting ‘‘365(8)’’; and ‘‘(4) INSTITUTION OF HIGHER EDUCATION.—The (1) by redesignating part D as part F; (D) in paragraph (4), by striking ‘‘1046(9)’’ term ‘institution of higher education’ means an (2) by redesignating sections 351, 352, 353, 354, and inserting ‘‘365(9)’’; institution of higher education as defined in 356, 357, 358, and 360 (20 U.S.C. 1066, 1067, 1068, (9) in section 361(1) (as redesignated by sub- section 1201(a), except that paragraph (2) of 1069, 1069b, 1069c, 1069d, and 1069f) as sections section (a)(7)) (20 U.S.C. 1135d(1)), by striking such section shall not apply. 391, 392, 393, 394, 395, 396, 397, and 398, respec- ‘‘1046(3)’’ and inserting ‘‘365(3)’’; ‘‘(c) AUTHORIZED ACTIVITIES.— tively; (10) in section 362(a) (as redesignated by sub- ‘‘(1) IN GENERAL.—Grants awarded under this (3) by transferring part B of title VII (20 section (a)(7)) (20 U.S.C. 1135d–1(a))— section shall be used by Tribal Colleges or Uni- U.S.C. 1132c et seq.) to title III to follow part C (A) in the matter preceding paragraph (1), by versities to assist such institutions to plan, de- of title III (20 U.S.C. 1065 et seq.), and redesig- striking ‘‘1041’’ and inserting ‘‘361’’; and velop, undertake, and carry out activities to im- nating such part B as part D; (B) in paragraph (1), by striking ‘‘1021(b)’’ prove and expand such institutions’ capacity to (4) by redesignating sections 721 through 728 and inserting ‘‘351(b)’’; and serve Indian students. (20 U.S.C. 1132c and 1132c–7) as sections 341 (11) in section 391(b)(6) (as redesignated by ‘‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES.— through 348, respectively; subsection (a)(2)), by striking ‘‘357’’ and insert- The activities described in paragraph (1) may (5) by transferring subparts 1 and 3 of part B ing ‘‘396’’. include— of title X (20 U.S.C. 1135b et seq. and 1135d et SEC. 302. FINDINGS. ‘‘(A) purchase, rental, or lease of scientific or seq.) to title III to follow part D of title III (as Section 301(a) (20 U.S.C. 1051(a)) is amended— laboratory equipment for educational purposes, redesignated by paragraph (3)), and redesig- (1) by redesignating paragraphs (3) through including instructional and research purposes; nating such subpart 3 as subpart 2; (7) as paragraphs (4) through (8), respectively; ‘‘(B) construction, maintenance, renovation, (6) by inserting after part D of title III (as re- and and improvement in classrooms, libraries, lab- designated by paragraph (3)) the following: (2) by inserting after paragraph (2) the fol- oratories, and other instructional facilities, in- ‘‘PART E—MINORITY SCIENCE lowing: cluding purchase or rental of telecommuni- IMPROVEMENT PROGRAM’’; ‘‘(3) in order to be competitive and provide a cations technology equipment or services; high-quality education for all, institutions of (7) by redesignating sections 1021 through 1024 ‘‘(C) support of faculty exchanges, faculty de- higher education should improve their techno- (20 U.S.C. 1135b and 1135b–3), and sections 1041, velopment, and faculty fellowships to assist in logical capacity and make effective use of tech- 1042, 1043, 1044, 1046, and 1047 (20 U.S.C. 1135d, attaining advanced degrees in the faculty’s field nology;’’. 1135d–1, 1135d–2, 1135d–3, 1135d–5, and 1135d–6) of instruction; as sections 351 through 354, and sections 361, SEC. 303. STRENGTHENING INSTITUTIONS. ‘‘(D) academic instruction in disciplines in 362, 363, 364, 365, and 366, respectively; and (a) GRANTS.—Section 311 (20 U.S.C. 1057) is which American Indians are underrepresented; (8) by repealing section 366 (as redesignated amended— ‘‘(E) purchase of library books, periodicals, by paragraph (7)) (20 U.S.C. 1135d–6). (1) in subsection (b)(3)(D), by inserting ‘‘, in- and other educational materials, including tele- (b) CONFORMING AMENDMENT.—Section 361 (as cluding high technology equipment,’’ after communications program material; redesignated by subsection (a)(7)) (20 U.S.C. ‘‘equipment’’; and ‘‘(F) tutoring, counseling, and student service 1135d) is amended— (2) by adding at the end the following: programs designed to improve academic success; (1) in paragraph (1), by inserting ‘‘and’’ after ‘‘(c) ENDOWMENT FUND.— ‘‘(G) funds management, administrative man- the semicolon; ‘‘(1) IN GENERAL.—An eligible institution may agement, and acquisition of equipment for use (2) in paragraph (2), by striking ‘‘; and’’ and use not more than 20 percent of the grant funds in strengthening funds management; inserting a period; and provided under this part to establish or increase ‘‘(H) joint use of facilities, such as labora- (3) by striking paragraph (3). an endowment fund at such institution. tories and libraries; (c) CROSS REFERENCES.—Title III (20 U.S.C. ‘‘(2) MATCHING REQUIREMENT.—In order to be ‘‘(I) establishing or improving a development 1051 et seq.) is amended— eligible to use grant funds in accordance with office to strengthen or improve contributions (1) in section 311(b) (20 U.S.C. 1057(b)), by paragraph (1), the eligible institution shall pro- from alumni and the private sector; striking ‘‘360(a)(1)’’ and inserting ‘‘398(a)(1)’’; vide matching funds, in an amount equal to the ‘‘(J) establishing or enhancing a program of (2) in section 312 (20 U.S.C. 1058)— Federal funds used in accordance with para- teacher education designed to qualify students (A) in subsection (b)(1)(B), by striking graph (1), for the establishment or increase of to teach in elementary schools or secondary ‘‘352(b)’’ and inserting ‘‘392(b)’’; and the endowment fund. schools, with a particular emphasis on teaching (B) in subsection (c)(2), by striking ‘‘352(a)’’ ‘‘(3) COMPARABILITY.—The provisions of part American Indian children and youth, that shall and inserting ‘‘392(a)’’; C, regarding the establishment or increase of an include, as part of such program, preparation (3) in section 313(b) (20 U.S.C. 1059(b)), by endowment fund, that the Secretary determines for teacher certification; striking ‘‘354(a)(1)’’ and inserting ‘‘394(a)(1)’’; are not inconsistent with this subsection, shall ‘‘(K) establishing community outreach pro- (4) in section 342 (as redesignated by sub- apply to funds used under paragraph (1).’’. grams that encourage American Indian elemen- section (a)(4)) (20 U.S.C. 1132c–1)— (b) DURATION OF GRANT.—Section 313 (20 tary school and secondary school students to de- (A) in paragraph (3), by striking ‘‘723(b)’’ and U.S.C. 1059) is amended by adding at the end velop the academic skills and the interest to inserting ‘‘343(b)’’; the following: pursue postsecondary education;

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‘‘(L) other activities proposed in the applica- ‘‘(4) the term ‘Native Hawaiian-serving insti- ‘‘(3) COMPARABILITY.—The provisions of part tion submitted pursuant to subsection (d) that— tution’ means an institution of higher education C regarding the establishment or increase of an ‘‘(i) contribute to carrying out the activities which— endowment fund, that the Secretary determines described in subparagraphs (A) through (K); ‘‘(A) is an eligible institution under section are not inconsistent with this subsection, shall and 312(b); and apply to funds used under paragraph (1).’’. ‘‘(ii) are approved by the Secretary as part of ‘‘(B) at the time of application, has an enroll- (b) PROFESSIONAL OR GRADUATE INSTITU- the review and acceptance of such application. ment of undergraduate students that is at least TIONS.—Section 326 (20 U.S.C. 1063b) is amend- ‘‘(3) ENDOWMENT FUND.— 10 percent Native Hawaiian students. ed— ‘‘(A) IN GENERAL.—A Tribal College or Univer- ‘‘(c) AUTHORIZED ACTIVITIES.— (1) in subsection (a)— sity may use not more than 20 percent of the ‘‘(1) TYPES OF ACTIVITIES AUTHORIZED.— (A) in paragraph (2), by striking ‘‘$500,000’’ grant funds provided under this section to es- Grants awarded under this section shall be used and inserting ‘‘$1,000,000’’; and tablish or increase an endowment fund at the by Alaska Native-serving institutions and Na- (B) by adding at the end of paragraph (2) the institution. tive Hawaiian-serving institutions to assist such following: ‘‘If a grant of less than $1,000,000 is ‘‘(B) MATCHING REQUIREMENT.—In order to be institutions to plan, develop, undertake, and made under this section, matching funds pro- eligible to use grant funds in accordance with carry out programs. vided from non-Federal sources are not re- subparagraph (A), the Tribal College or Univer- ‘‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES.— quired. If a grant equal to or in excess of sity shall provide matching funds, in an amount Such programs may include— $1,000,000 is made under this section, matching equal to the Federal funds used in accordance ‘‘(A) purchase, rental, or lease of scientific or funds provided from non-Federal sources are re- with subparagraph (A), for the establishment or laboratory equipment for educational purposes, quired only with respect to the amount of the increase of the endowment fund. including instructional and research purposes; grant that exceeds $1,000,000.’’; and ‘‘(C) COMPARABILITY.—The provisions of part ‘‘(B) renovation and improvement in class- (2) in subsection (d)(2), by striking ‘‘$500,000’’ C regarding the establishment or increase of an room, library, laboratory, and other instruc- and inserting ‘‘$1,000,000’’. endowment fund, that the Secretary determines tional facilities; (3) in subsection (e)(1)— are not inconsistent with this paragraph, shall ‘‘(C) support of faculty exchanges, and fac- (A) in subparagraph (E), by inserting ‘‘, and apply to funds used under subparagraph (A). ulty development and faculty fellowships to as- any Tuskegee University qualified graduate pro- ‘‘(d) APPLICATION PROCESS.— sist in attaining advanced degrees in their field gram’’ before the semicolon; ‘‘(1) INSTITUTIONAL ELIGIBILITY.—To be eligi- of instruction; (B) in subparagraph (F), by inserting ‘‘, and ble to receive assistance under this section, a ‘‘(D) curriculum development and academic any Xavier University qualified graduate pro- Tribal College or University shall be an institu- instruction; gram’’ before the semicolon; tion that— ‘‘(E) purchase of library books, periodicals, (C) in subparagraph (G), by inserting ‘‘, and ‘‘(A) is an eligible institution under section microfilm, and other educational materials; any Southern University qualified graduate pro- 312(b); ‘‘(F) funds and administrative management, gram’’ before the semicolon; ‘‘(B) is eligible to receive assistance under the and acquisition of equipment for use in (D) in subparagraph (H), by inserting ‘‘, and Tribally Controlled College or University Assist- strengthening funds management; any Texas Southern University qualified grad- ance Act of 1978; or ‘‘(G) joint use of facilities such as laboratories uate program’’ before the semicolon; ‘‘(C) is eligible to receive funds under the Eq- and libraries; and (E) in subparagraph (I), by inserting ‘‘, and uity in Educational Land Grant Status Act of ‘‘(H) academic tutoring and counseling pro- any Florida A&M University qualified graduate 1994. grams and student support services. program’’ before the semicolon; ‘‘(2) APPLICATION.—Any Tribal College or ‘‘(d) APPLICATION PROCESS.— (F) in subparagraph (J), by inserting ‘‘, and University desiring to receive assistance under ‘‘(1) INSTITUTIONAL ELIGIBILITY.—Each Alas- any North Carolina Central University qualified this section shall submit an application to the ka Native-serving institution and Native Hawai- graduate program’’ before the semicolon; Secretary at such time, and in such manner, as ian-serving institution desiring to receive assist- (G) in subparagraph (O), by striking ‘‘and’’ the Secretary may by regulation reasonably re- ance under this section shall submit to the Sec- after the semicolon. quire. Each such application shall include— retary such enrollment data as may be nec- (H) in subparagraph (P)— ‘‘(A) a 5-year plan for improving the assist- essary to demonstrate that it is an Alaska Na- (i) by inserting ‘‘University’’ after ‘‘State’’; ance provided by the Tribal College or Univer- tive-serving institution or a Native Hawaiian- and sity to Indian students, increasing the rates at serving institution as defined in subsection (b), (ii) by striking the period and inserting a which Indian secondary school students enroll along with such other information and data as semicolon; and in higher education, and increasing overall the Secretary may by regulation require. (I) by adding at the end the following: postsecondary retention rates for Indian stu- ‘‘(Q) Norfolk State University qualified grad- ‘‘(2) APPLICATIONS.—Any institution which is dents; and uate program; and determined by the Secretary to be an Alaska Na- ‘‘(B) such enrollment data and other informa- ‘‘(R) Tennessee State University qualified tive-serving institution or a Native Hawaiian- tion and assurances as the Secretary may re- graduate program.’’; serving institution may submit an application quire to demonstrate compliance with subpara- (4) in subsection (f)— for assistance under this section to the Sec- graph (A) or (B) of paragraph (1). (A) in paragraph (1), by striking ‘‘$12,000,000’’ retary. Such application shall include— ‘‘(3) SPECIAL RULE.—For the purposes of this and inserting ‘‘$15,000,000’’; ‘‘(A) a 5-year plan for improving the assist- part, no Tribal College or University that is eli- (B) in paragraph (2)— gible for and receives funds under this section ance provided by the Alaska Native-serving in- (i) in the matter preceding subparagraph (A), may concurrently receive other funds under this stitution or the Native Hawaiian-serving institu- by striking ‘‘$12,000,000’’ and inserting part or part B.’’. tion to Alaska Native or Native Hawaiian stu- ‘‘$15,000,000 but not in excess of $28,000,000’’; dents; and (d) ALASKA NATIVE AND NATIVE HAWAIIAN- (ii) in subparagraph (A), by striking ‘‘(B) such other information and assurance as SERVING INSTITUTIONS.—Part A of title III (20 ‘‘$500,000’’ and inserting ‘‘$1,000,000’’; and U.S.C. 1057 et seq.) is amended by adding at the the Secretary may require. (iii) in subparagraph (B)— end the following: ‘‘(e) SPECIAL RULE.—For the purposes of this (I) by striking ‘‘(A) through (P)’’ and insert- section, no Alaska Native-serving institution or ing ‘‘(Q) and (R)’’; and ‘‘SEC. 317. ALASKA NATIVE AND NATIVE HAWAI- Native Hawaiian-serving institution which is el- IAN-SERVING INSTITUTIONS. (II) by striking the period and inserting ‘‘; igible for and receives funds under this section ‘‘(a) PROGRAM AUTHORIZED.—The Secretary and may concurrently receive other funds under this shall provide grants and related assistance to (C) by adding at the end the following: part or part B.’’. Alaska Native-serving institutions and Native ‘‘(3) any amount appropriated in excess of Hawaiian-serving institutions to enable such in- SEC. 304. STRENGTHENING HBCU’s. $28,000,000 shall be available for the purpose of stitutions to improve and expand their capacity (a) GRANTS.—Section 323 (20 U.S.C. 1062) is making grants to institutions or programs de- to serve Alaska Natives and Native Hawaiians. amended— scribed in subparagraphs (A) through (R), on a ‘‘(b) DEFINITIONS.—For the purpose of this (1) by redesignating subsection (b) as sub- competitive basis and through a peer review section— section (c); and process that takes into consideration— ‘‘(1) the term ‘Alaska Native’ has the meaning (2) by inserting after subsection (a) the fol- ‘‘(A) the ability of the institution to match given the term in section 9308 of the Elementary lowing: Federal funds with non-Federal funds; and Secondary Education Act of 1965; ‘‘(b) ENDOWMENT FUND.— ‘‘(B) the number of students enrolled in the ‘‘(2) the term ‘Alaska Native-serving institu- ‘‘(1) IN GENERAL.—An institution may use not institution or program for which funds are tion’ means an institution of higher education more than 20 percent of the grant funds pro- sought; that— vided under this part to establish or increase an ‘‘(C) the percentage of students enrolled in the ‘‘(A) is an eligible institution under section endowment fund at the institution. institution or program for which funds are 312(b); and ‘‘(2) MATCHING REQUIREMENT.—In order to be sought who are eligible for need-based student ‘‘(B) at the time of application, has an enroll- eligible to use grant funds in accordance with aid; ment of undergraduate students that is at least paragraph (1), the eligible institution shall pro- ‘‘(D) the percentage of students enrolled in 20 percent Alaska Native students; vide matching funds, in an amount equal to the the institution or program for which funds are ‘‘(3) the term ‘Native Hawaiian’ has the mean- Federal funds used in accordance with para- sought who complete their degrees within a rea- ing given the term in section 9212 of the Elemen- graph (1), for the establishment or increase of sonable period of time as determined by the Sec- tary and Secondary Education Act of 1965; and the endowment fund. retary; and

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00059 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7974 CONGRESSIONAL RECORD — SENATE July 10, 1998 ‘‘(E) the quality of the proposal.’’; and competitiveness of the United States by improv- TITLE IV—STUDENT ASSISTANCE (5) by adding at the end the following: ing and expanding the scientific and techno- PART A—GRANTS TO STUDENTS IN AT- ‘‘(g) SPECIAL RULE.—No institution or pro- logical capacity of the United States. More and TENDANCE AT INSTITUTIONS OF HIGH- gram described in subsection (e)(1) that received better prepared scientists, engineers, and tech- ER EDUCATION a grant under this section for fiscal year 1998 nical experts are needed to improve and expand SEC. 411. REPEALS AND REDESIGNATIONS. and that is eligible to receive a grant under this such capacity. section in a subsequent fiscal year shall receive Part A of title IV (20 U.S.C. 1070 et seq.) is ‘‘(2) As the Nation’s population becomes more amended— a grant under this section in any subsequent fis- diverse, it is important that the educational and cal year in an amount that is less than the (1) in subpart 2 (20 U.S.C. 1070a–11), by re- training needs of all Americans are met. Under- pealing chapters 3 through 8 (20 U.S.C. 1070a–31 grant amount received for fiscal year 1996 or representation of minorities in science and tech- 1997, whichever is greater, unless— et seq. and 1070a–81 et seq.); and nological fields diminishes our Nation’s competi- (2) by repealing subpart 8 (20 U.S.C. 1070f). ‘‘(1) the amount appropriated for the subse- tiveness by impairing the quantity of well pre- SEC. 412. FEDERAL PELL GRANTS. quent fiscal year is not sufficient to provide pared scientists, engineers, and technical ex- grants under this section to all such institutions perts in these fields. (a) AMENDMENT TO SUBPART HEADING.—The or programs; or heading for subpart 1 of part A of title IV (20 ‘‘(3) Despite significant limitations in re- ‘‘(2) the institution or program cannot provide U.S.C. 1070a et seq.) is amended by striking sources, minority institutions provide an impor- sufficient matching funds to meet the require- ‘‘Basic Educational Opportunity Grants’’ and tant educational opportunity for minority stu- ments of this section.’’. inserting ‘‘Federal Pell Grants’’. dents, particularly in science and engineering SEC. 305. ENDOWMENT CHALLENGE GRANTS. (b) FEDERAL PELL GRANTS.—Section 401 (20 fields. Aid to minority institutions is a good way U.S.C. 1070a) is amended— Paragraph (2) of section 331(b) (20 U.S.C. to address the underrepresentation of minorities (1) in the section heading, by striking ‘‘BASIC 1065(b)) is amended by striking subparagraphs in science and technological fields. (B) and (C) and inserting the following: EDUCATIONAL OPPORTUNITY GRANTS’’ ‘‘(B) The Secretary may make a grant under ‘‘(4) There is a strong Federal interest in im- and inserting ‘‘FEDERAL PELL GRANTS’’; this part to an eligible institution in any fiscal proving science and engineering programs at mi- (2) in subsection (a)(1)— year if the institution— nority institutions as such programs lag behind (A) in the first sentence, by striking ‘‘shall, ‘‘(i) applies for a grant in an amount not ex- in program offerings and in student enrollment during the period beginning July 1, 1972, and ceeding $500,000; and compared to such programs at other institutions ending September 30, 1998,’’ and inserting ‘‘, for ‘‘(ii) has deposited in the eligible institution’s of higher education.’’. each fiscal year through fiscal year 2004, shall’’; endowment fund established under this section (b) DEFINITIONS.—Section 365(4) (as redesig- and an amount which is equal to 1⁄2 of the amount nated by section 301(a)(7)) (20 U.S.C. 1135d–5(4)) (B) in the second sentence, by inserting ‘‘until of such grant. is amended by inserting ‘‘behavioral,’’ after such time as the Secretary determines and pub- ‘‘(C) An eligible institution of higher edu- ‘‘physical,’’. lishes in the Federal Register with an oppor- cation that is awarded a grant under subpara- SEC. 308. GENERAL PROVISIONS. tunity for comment, an alternative payment sys- tem that provides payments to institutions in an graph (B) shall not be eligible to receive an ad- (a) APPLICATIONS.—Paragraph (1) of section ditional grant under subparagraph (B) until 10 391(b) (as redesignated by section 301(a)(2)) (20 accurate and timely manner,’’ after ‘‘pay eligi- years after the date on which the grant period U.S.C. 1066(b)) is amended by inserting ‘‘, D or ble students’’; (3) in subsection (b)— terminates.’’. E’’ after ‘‘part C’’. SEC. 306. HBCU CAPITAL FINANCING. (A) in paragraph (2)(A), by striking clauses (i) (b) APPLICATION REVIEW PROCESS.—Section through (v), and inserting the following: (a) DEFINITION.—Section 342(5) (as redesig- 393 (as redesignated by section 301(a)(2)) (20 nated by section 301(a)(4)) (20 U.S.C. 1132c–1(5)) ‘‘(i) $5,000 for academic year 1999–2000; U.S.C. 1068) is amended by adding at the end ‘‘(ii) $5,200 for academic year 2000–2001; is amended— the following: (1) by redesignating subparagraphs (B), (C), ‘‘(iii) $5,400 for academic year 2001–2002; ‘‘(d) EXCLUSION.—The provisions of this sec- and (D) as subparagraphs (C), (F), and (G); ‘‘(iv) $5,600 for academic year 2002–2003; and (2) by inserting after subparagraph (A) the tion shall not apply to applications submitted ‘‘(v) $5,800 for academic year 2003–2004.’’; following: under part D.’’. (B) by amending paragraph (3) to read as fol- ‘‘(B) a facility for the administration of an (c) WAIVERS.—Paragraph (2) of section 395(b) lows: educational program, or a student center or stu- (as redesignated by section 301(a)(2)) (20 U.S.C. ‘‘(3) For any academic year for which an ap- dent union, except that not more than 5 percent 1069b(b)) is amended by striking ‘‘title IV, VII, propriation Act provides a maximum basic grant of the loan proceeds provided under this part or VIII’’ and inserting ‘‘part D or title IV’’. in an amount in excess of $2,400, the amount of may be used for the facility, center or union if (d) AUTHORIZATION OF APPROPRIATIONS.—Sec- a student’s basic grant shall equal $2,400 plus— the facility, center or union is owned, leased, tion 398(a) (as redesignated by section 301(a)(2)) ‘‘(A) one-half of the amount by which such managed, or operated by a private business, (20 U.S.C. 1069f) is amended— maximum basic grant exceeds $2,400; plus that, in return for such use, makes a payment to (1) in paragraph (1)— ‘‘(B) the lesser of— the eligible institution;’’; (A) in subparagraph (A), by striking ‘‘1993’’ ‘‘(i) the remaining one-half of such excess; or (3) by inserting after subparagraph (C) (as re- and inserting ‘‘1999’’; ‘‘(ii) the sum of the student’s tuition, fees, and if the student has dependent care expenses designated by paragraph (1)) the following: (B) in subparagraph (B)— ‘‘(D) a maintenance, storage, or utility facility (as described in section 472(8) or disability-re- (i) in clause (i), by striking ‘‘$45,000,000 for that is essential to the operation of a facility, a lated expenses (as described in section 472(9)), fiscal year 1993’’ and inserting ‘‘$5,000,000 for library, a dormitory, equipment, instrumenta- an allowance determined by the institution for fiscal year 1999’’; tion, a fixture, real property or an interest such expenses.’’; therein, described in this paragraph; (ii) by striking clause (ii); and (C) in paragraph (5), by striking ‘‘$400, ex- ‘‘(E) a facility designed to provide primarily (iii) by striking ‘‘(B)(i) There’’ and inserting cept’’ and all that follows through ‘‘grant of outpatient health care for students or faculty;’’; ‘‘(B) There’’; and $400’’ and insert ‘‘$200’’; and and (C) by adding at the end the following: (D) in paragraph (6)— (4) in subparagraph (G) (as redesignated by ‘‘(C) There are authorized to be appropriated (i) by redesignating subparagraphs (A) and paragraph (2)), by striking ‘‘(C)’’ and inserting to carry out section 317, $5,000,000 for fiscal year (B) as clauses (i) and (ii), respectively; ‘‘(F)’’. 1999 and such sums as may be necessary for (ii) by inserting ‘‘(A)’’ after the paragraph (b) FULL FAITH AND CREDIT.—Section 343 (as each of the 4 succeeding fiscal years.’’; designation; and redesignated by section 301(a)(4)) (20 U.S.C. (2) in paragraph (2)— (iii) by adding at the end the following: 1132c–2) is amended by adding at the end the (A) in subparagraph (A), by striking ‘‘1993’’ ‘‘(B) The Secretary shall promulgate regula- following: and inserting ‘‘1999’’; and tions implementing this paragraph.’’; and ‘‘(e) Notwithstanding any other provision of (4) in subsection (c)— (B) in subparagraph (B), by striking law, the Secretary may sell a qualified bond (A) by amending paragraph (1) to read as fol- ‘‘$20,000,000 for fiscal year 1993’’ and inserting guaranteed under this part to any party that of- lows: ‘‘(1)(A) Except as provided in subpara- ‘‘$30,000,000 for fiscal year 1999’’; fers terms that the Secretary determines are in graph (B), the period during which a student the best interest of the eligible institution.’’. (3) in paragraph (3), by striking ‘‘$50,000,000 may receive a basic grant shall be the period, re- SEC. 307. MINORITY SCIENCE AND ENGINEERING for fiscal year 1993’’ and inserting ‘‘$10,000,000 quired for the completion of the first under- IMPROVEMENT PROGRAM. for fiscal year 1999’’; and graduate baccalaureate course of study pursued (a) MINORITY SCIENCE IMPROVEMENT PRO- (4) by adding at the end the following: by the student at the institution at which the GRAM FINDINGS.—Subpart 1 of part E of title III ‘‘(4) PART D.—There are authorized to be ap- student is in attendance, that does not exceed (as redesignated by paragraphs (6) and (7) of propriated to carry out part D, $110,000 for fis- 150 percent of the period normally required by a section 301) (20 U.S.C. 1135b et seq.) is amended cal year 1999, and such sums as may be nec- full-time student (or the equivalent period, in by inserting after the subpart heading the fol- essary for each of the 4 succeeding fiscal years. the case of a part-time student) to complete the lowing: ‘‘(5) PART E.—There are authorized to be ap- course of study at the institution, as determined ‘‘SEC. 350. FINDINGS. propriated to carry out part E, $10,000,000 for by the institution. ‘‘Congress makes the following findings: fiscal year 1999, and such sums as may be nec- ‘‘(B)(i) A student may receive basic grants ‘‘(1) It is incumbent on the Federal Govern- essary for each of the 4 succeeding fiscal under this subpart for a period that exceeds the ment to support the technological and economic years.’’. period described in subparagraph (A) or clause

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00060 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7975 (ii) to the extent the institution in which the 1070a–12(b)(5)) is amended by inserting ‘‘, or ac- nity-based organizations, or combinations of student is enrolled determines necessary to ac- tivities designed to acquaint individuals from such institutions and organizations, that are commodate the rights of students with disabil- disadvantaged backgrounds with careers in not receiving assistance under this subpart and ities under section 504 of the Rehabilitation Act which the individuals are particularly under- are serving low-income students and first gen- of 1973. represented’’ before the semicolon. eration college students, in order to— ‘‘(ii) Notwithstanding subsection (a)(1), the (2) AMENDMENT TO SECTION 402B(b)(9).—Section ‘‘(1) disseminate and replicate best practices of Secretary may allow, on a case-by-case basis, a 402B(b)(9) (20 U.S.C. 1070a–12(b)(9)) is amended programs or projects assisted under this subpart; student to receive a basic grant if the student— by inserting ‘‘or counselors’’ after ‘‘teachers’’. and ‘‘(I) is carrying at least 1⁄2 the normal full-time (c) UPWARD BOUND.—Section 402C (20 U.S.C. ‘‘(2) provide technical assistance regarding work load for the course of study the student is 1070a–13) is amended— programs and projects assisted under this sub- pursuing, as determined by the institution of (1) in subsection (b)— part. higher education; and (A) in paragraph (9)— ‘‘(c) RESULTS.—In order to improve overall ‘‘(II) is enrolled or accepted for enrollment in (i) by inserting ‘‘or counselors’’ after ‘‘teach- program or project effectiveness, the results of a postbaccalaureate program that does not lead ers’’; and evaluations and grants described in this section to a graduate degree, and in courses required by (ii) by striking ‘‘and’’ after the semicolon; shall be disseminated by the Secretary to similar a State in order for the student to receive a pro- (B) by redesignating paragraph (10) as para- programs or projects assisted under this subpart, fessional certification or licensing credential graph (11); as well as other individuals concerned with that is required for employment as a teacher in (C) by inserting after paragraph (9) the fol- postsecondary access for and retention of low- an elementary school or secondary school in lowing: income individuals and first-generation college that State, ‘‘(10) work-study positions where youth par- students.’’. except that this subparagraph shall not apply to ticipating in the project are exposed to careers SEC. 414. CONNECTIONS PROGRAM. a student who is enrolled in an institution of requiring a postsecondary degree; and’’; and Chapter 2 of subpart 2 of part A of title IV (20 higher education that offers a baccalaureate de- (D) in paragraph (11) (as redesignated by sub- U.S.C. 1070a–21 et seq.) is amended to read as gree in education.’’; and paragraph (B)), by striking ‘‘(9)’’ and inserting follows: (B) in paragraph (2)— ‘‘(10)’’; and ‘‘CHAPTER 2—CONNECTIONS PROGRAM (i) by striking ‘‘Nothing’’ and inserting ‘‘(A) (2) in subsection (e), by striking ‘‘and not in excess of $40 per month during the remaining ‘‘SEC. 404A. EARLY INTERVENTION AND COLLEGE Except as provided in subparagraph (B), noth- AWARENESS PROGRAM AUTHOR- ing’’; period of the year.’’ and inserting ‘‘except that IZED. (ii) by striking ‘‘or, in the case’’ and all that youth participating in a work-study position ‘‘(a) IN GENERAL.—The Secretary is author- follows through ‘‘or skills’’; and under subsection (b)(10) may be paid a stipend ized, in accordance with the requirements of this (iii) by adding at the end the following: of $300 per month during June, July, and Au- chapter, to establish a program that— ‘‘(B)(i) A student may receive a basic grant to gust. Youths participating in a project proposed ‘‘(1) encourages eligible entities to provide or attend English language instruction that is a to be carried out under any application may be maintain a guarantee to eligible low-income stu- separate course of instruction only if— paid stipends not in excess of $40 per month dents who obtain a secondary school diploma ‘‘(I) not less than a minimum percentage of during the remaining period of the year.’’. (or its recognized equivalent), of the financial the students enrolled in the course complete the (d) STUDENT SUPPORT SERVICES.—Paragraph assistance necessary to permit the students to course; (6) of section 402D(c) (20 U.S.C. 1070a–14(c)(6)) attend an institution of higher education; and ‘‘(II) students enrolled in the course are re- is amended to read as follows: ‘‘(2) supports eligible entities in providing— quired to take an independently administered ‘‘(6) consider, in addition to such other cri- ‘‘(A) additional counseling, mentoring, aca- standardized test of English language pro- teria as the Secretary may prescribe, the institu- demic support, outreach, and supportive services ficiency upon completion of the course; and tion’s effort, and where applicable past history, to elementary, middle, and secondary school ‘‘(III) not less than a minimum percentage of in— students who are at risk of dropping out of the students enrolled in the course achieve a ‘‘(A) providing sufficient financial assistance school; and passing score on that test. to meet the full financial need of each student ‘‘(B) information to students and their par- ‘‘(ii) The Secretary shall promulgate regula- at the institution; and ents about the advantages of obtaining a post- ‘‘(B) maintaining the loan burden of each tions that specify the minimum percentage of secondary education and their college financing such student at a manageable level.’’. students who complete the course of instruction, options. (e) STAFF DEVELOPMENT ACTIVITIES.—Section 1 or more standardized tests of English pro- 402G(a) (20 U.S.C. 1070a–17(a)) is amended by ‘‘(b) AWARDS.— ficiency, the minimum percentage of students inserting ‘‘participating in,’’ after ‘‘leadership ‘‘(1) IN GENERAL.—The Secretary may award who must achieve a passing score on the tests, personnel employed in,’’. grants to eligible entities to carry out the pro- and such other requirements as the Secretary (f) EVALUATION AND DISSEMINATION.—Section gram authorized under subsection (a). determines are necessary to implement clause RIORITY.—In making the awards de- 402H (20 U.S.C. 1070a–18) is amended to read as ‘‘(2) P (i).’’. scribed in paragraph (1), the Secretary shall— follows: SEC. 413. TRIO PROGRAMS. ‘‘(A) give priority to eligible entities that— ‘‘SEC. 402H. EVALUATIONS AND GRANTS FOR (a) PROGRAM AUTHORITY.—Section 402A (20 ‘‘(i) carried out, prior to the date of enactment PROJECT IMPROVEMENT AND DIS- of the Higher Education Amendments of 1998, U.S.C. 1070a–11) is amended— SEMINATION PARTNERSHIP (1) in subsection (b)(3)— PROJECTS. successful educational opportunity programs; and (A) in subparagraph (A), by striking ‘‘$170,000 ‘‘(a) EVALUATIONS.— ‘‘(ii) have a prior, demonstrated commitment for fiscal year 1993’’ and inserting ‘‘$190,000 for ‘‘(1) IN GENERAL.—For the purpose of improv- each fiscal year’’; ing the effectiveness of the programs and to early intervention leading to college access (B) in subparagraph (B), by striking ‘‘$180,000 projects assisted under this subpart, the Sec- through collaboration and replication of suc- for fiscal year 1994’’ and inserting ‘‘$200,000 for retary may make grants to or enter into con- cessful strategies; and ‘‘(B) ensure that students served under this each fiscal year’’; and tracts with institutions of higher education and chapter prior to the date of enactment of the (C) in subparagraph (C), by striking ‘‘$190,000 other public and private institutions and orga- Higher Education Amendments of 1998 continue for fiscal year 1995’’ and inserting ‘‘$210,000 for nizations to evaluate the effectiveness of the to receive service through the completion of sec- each fiscal year’’; programs and projects assisted under this sub- ondary school. (2) in subsection (c)(6), by amending the last part. ‘‘(c) DEFINITIONS.—For the purposes of this sentence to read as follows: ‘‘The Secretary ‘‘(2) PRACTICES.—The evaluations described in chapter, the term ‘eligible entity’ means— shall permit a Director of a program assisted paragraph (1) shall identify institutional, com- ‘‘(1) a State; or under this chapter to also administer 1 or more munity, and program or project practices that ‘‘(2) a partnership consisting of— additional programs for disadvantaged students are particularly effective in enhancing the ac- ‘‘(A) 1 or more local educational agencies act- operated by the sponsoring entity regardless of cess of low-income individuals and first-genera- ing on behalf of— the funding source of such additional pro- tion college students to postsecondary edu- ‘‘(i) 1 or more public schools; and gram.’’; cation, the preparation of the individuals and ‘‘(ii) the public secondary schools that stu- (3) in subsection (f), by striking ‘‘$650,000,000 students for postsecondary education, and the dents from the schools described in clause (i) for fiscal year 1993’’ and inserting ‘‘$700,000,000 success of the individuals and students in post- would normally attend; for fiscal year 1999’’; and secondary education. ‘‘(B) 1 or more degree granting institutions of (4) in subsection (g), by adding at the end the ‘‘(b) GRANTS.—The Secretary may award higher education; and following: grants to institutions of higher education or ‘‘(C) at least 2 community organizations or en- ‘‘(4) WAIVER.—The Secretary may waive the other private and public institutions and orga- tities, such as businesses, professional associa- service requirements in subparagraph (A) or (B) nizations, that are carrying out a program or tions, community-based organizations, philan- of paragraph (3) if the Secretary determines the project assisted under this subpart prior to the thropic organizations, State agencies, institu- application of the service requirements to a vet- date of enactment of the Higher Education tions or agencies sponsoring programs author- eran will defeat the purpose of a program under Amendments of 1998, to enable the institutions ized under subpart 4, or other public or private this chapter.’’. and organizations to expand and leverage the agencies or organizations. (b) TALENT SEARCH.—(1) AMENDMENT TO SEC- success of such programs or projects by working ‘‘(d) COORDINATION.—Each eligible entity TION 402B(b)(5).—Section 402B(b)(5) (20 U.S.C. in partnership with other institutions, commu- shall ensure that the activities assisted under

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00061 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7976 CONGRESSIONAL RECORD — SENATE July 10, 1998 this chapter are, to the extent practicable, co- where applicable, ensure that the cohort ap- ‘‘(i) are carried out at an institution of higher ordinated with, and complement and enhance— proach is done in coordination and collabora- education that also has programs of academic ‘‘(1) services under this chapter provided by tion with existing early intervention programs year supportive services for disadvantaged stu- other eligible entities serving the same school and does not duplicate the services already pro- dents through projects authorized under section district or State; and vided to a school or community. 402D or through comparable projects funded by ‘‘(2) related services under other Federal or ‘‘SEC. 404C. EARLY INTERVENTION. the State or other sources; non-Federal programs. ‘‘(a) SERVICES.— ‘‘(ii) provide for the participation of the indi- ‘‘SEC. 404B. ELIGIBILITY ENTITY PLANS. ‘‘(1) In order to receive a grant under this viduals who are eligible for assistance under ‘‘(a) PLAN REQUIRED FOR ELIGIBILITY.— chapter, an eligible entity shall demonstrate to section 402D or who are eligible for comparable ‘‘(1) IN GENERAL.—In order for an eligible en- the satisfaction of the Secretary, in the plan programs funded by the State; tity to qualify for a grant under this chapter, submitted under section 404B, that the eligible ‘‘(iii)(I) provide summer instruction in reme- the eligible entity shall submit to the Secretary entity will provide comprehensive mentoring, dial, developmental or supportive courses; a plan for carrying out the program under this counseling, outreach, and supportive services to ‘‘(II) provide such summer services as coun- chapter. Such plan shall provide for the conduct students participating in programs under this seling, tutoring, or orientation; and of both a scholarship component in accordance chapter who are enrolled in any of the grades ‘‘(III) provide grant aid to the individuals to with section 404D and an early intervention preschool through grade 12. Such counseling cover the individuals’ summer costs for books, component in accordance with section 404C. shall include financial aid counseling that pro- supplies, living costs, and personal expenses; vides— ‘‘(2) CONTENTS.—Each plan submitted pursu- and ‘‘(A) information regarding the opportunities ant to paragraph (1) shall be in such form, con- ‘‘(iv) provide the individuals with financial for financial assistance under this title; and tain or be accompanied by such information or aid during each academic year the individuals ‘‘(B) activities or information regarding— are enrolled at the participating institution assurances, and be submitted at such time as the ‘‘(i) fostering and improving parent involve- after the summer program. Secretary may require by regulation. Each such ment in promoting postsecondary information ‘‘(E) Requiring eligible students to meet other plan shall— regarding the advantages of a college education, standards or requirements as the State deter- ‘‘(A) describe the activities for which assist- academic admission requirements, and the need mines necessary to meet the purposes of this sec- ance under this chapter is sought; and to take college preparation courses; tion. ‘‘(B) provide such additional assurances as ‘‘(ii) admissions and achievement tests; and the Secretary determines necessary to ensure ‘‘(iii) application procedures. ‘‘(c) PRIORITY STUDENTS.—In administering compliance with the requirements of this chap- ‘‘(2) METHODS.—The eligible entity shall dem- the early intervention component, the eligible ter. onstrate in such plan, pursuant to regulations entity shall treat as priority students any stu- ‘‘(b) MATCHING REQUIREMENT.— of the Secretary, the methods by which the eligi- dent in preschool through grade 12 who is eligi- ‘‘(1) IN GENERAL.—The Secretary shall not ap- ble entity will target services on priority stu- ble— prove a plan submitted under subsection (a) un- dents. ‘‘(1) to be counted under section 1005(c) of the less such plan— ‘‘(b) USES OF FUNDS.— Elementary and Secondary Education Act of ‘‘(A) provides that the eligible entity will pro- ‘‘(1) IN GENERAL.—The Secretary shall, by reg- 1965; vide, from State, local, institutional, or private ulation, establish criteria for determining ‘‘(2) for free or reduced price meals pursuant funds, not less than 1⁄2 the cost of the program, whether comprehensive mentoring, counseling, to the National School Lunch Act; or which matching funds may be provided in cash outreach, and supportive services programs may ‘‘(3) for assistance pursuant to part A of title or in kind; be used to meet the requirements of subsection IV of the Social Security Act. ‘‘(B) specifies the methods by which such (a). ‘‘SEC. 404D. SCHOLARSHIP COMPONENT. share of the costs will be paid; and ‘‘(2) ALLOWABLE PROVIDERS.—For those eligi- ‘‘(a) IN GENERAL.— ‘‘(C) includes provisions designed to ensure ble entities defined in section 404A(c)(1), the ac- ‘‘(1) STATES.—In order to receive a grant that funds provided under this chapter shall tivities required by subsection (a) may be pro- under this chapter, an eligible entity described supplement and not supplant funds expended vided by service providers such as community- in section 404A(c)(1) shall establish or maintain for existing programs. based organizations, schools, institutions of a financial assistance program that awards ‘‘(2) SPECIAL RULE.—The Secretary may higher education, public and private agencies, grants to students in accordance with the re- change the share of the costs required to be pro- nonprofit and philanthropic organizations, quirements of this section. The Secretary shall vided under paragraph (1)(A) for eligible entities businesses, institutions and agencies sponsoring encourage the eligible entity to ensure that the defined in section 402A(c)(2). programs authorized under subpart 4 of this tuition assistance provided pursuant to this sec- ‘‘(c) METHODS FOR COMPLYING WITH MATCH- part, and other organizations the State deems tion is available to an eligible student for use at ING REQUIREMENT.—An eligible entity may appropriate. any institution of higher education. ‘‘(3) PERMISSIBLE ACTIVITIES.—Examples of count toward the share of the costs required by ‘‘(2) PARTNERSHIPS.—An eligible entity de- subsection (b)(1)(A)— activities that meet the requirements of sub- scribed in section 404A(c)(2) may award scholar- ‘‘(1) the amount of the grants paid to students section (a) include the following: ships to eligible students. ‘‘(A) Providing eligible students in preschool from State, local, institutional, or private funds ‘‘(b) GRANT AMOUNTS.—The maximum amount through grade 12 with a continuing system of under this chapter; of the grant that an eligible student shall be eli- mentoring and advising that— ‘‘(2) the amount of tuition, fees, room or board ‘‘(i) is coordinated with the Federal and State gible to receive under this section shall be estab- waived or reduced for recipients of grants under community service initiatives; and lished by the State. The minimum amount of the this chapter; and ‘‘(ii) may include such support services as grant for each fiscal year shall not be less than ‘‘(3) the amount expended on documented, after school and summer tutoring, assistance in the lesser of— targeted, long-term mentoring and counseling obtaining summer jobs, career mentoring, and ‘‘(1) 75 percent of the average cost of attend- provided by volunteers or paid staff of non- academic counseling. ance for an in-State student, in a 4-year pro- school organizations, including businesses, reli- ‘‘(B) Requiring each student to enter into an gram of instruction, at public institutions of gious organizations, community groups, postsec- agreement under which the student agrees to higher education in such State, as determined in ondary educational institutions, nonprofit and achieve certain academic milestones, such as accordance with regulations prescribed by the philanthropic organizations, and other organi- completing a prescribed set of courses and main- Secretary; or zations. taining satisfactory academic progress described ‘‘(2) the maximum Federal Pell Grant funded ‘‘(d) COHORT APPROACH.— in section 484(c), in exchange for receiving tui- under section 401 for such fiscal year. ‘‘(1) IN GENERAL.—The Secretary may require tion assistance for a period of time to be estab- ‘‘(c) RELATION TO OTHER ASSISTANCE.—Tui- that eligible entities— lished by each State. tion assistance provided under this chapter ‘‘(A) provide services under this chapter to at ‘‘(C) Activities designed to ensure secondary shall not be considered for the purpose of least 1 grade level of students, beginning not school completion and college enrollment of at- awarding Federal grant assistance under this later than 7th grade, in a participating public risk children, including identification of at-risk title, except that in no case shall the total school that has a 7th grade and in which at children, after school and summer tutoring, as- amount of student financial assistance awarded least 50 percent of the students enrolled are eli- sistance in obtaining summer jobs, academic to a student under this title exceed such stu- gible for free or reduced-price lunch (or, if an el- counseling, volunteer and parent involvement, dent’s total cost of attendance. igible entity determines that it would promote providing former or current scholarship recipi- ‘‘(d) ELIGIBLE STUDENTS.—A student eligible the effectiveness of a project, an entire grade ents as mentor or peer counselors, skills assess- for assistance under this section is a student level of students, beginning not later than the ment, providing access to rigorous core courses who— 7th grade, who reside in public housing as de- that reflect challenging academic standards, ‘‘(1) is less than 22 years old at time of first fined in section 3(b)(1) of the United States personal counseling, family counseling and grant award under this section; Housing Act of 1937); and home visits, staff development, and programs ‘‘(2) receives a secondary school diploma or its ‘‘(B) ensure that the services are provided and activities described in this subparagraph recognized equivalent on or after January 1, through the 12th grade to students in the par- that are specially designed for students of lim- 1993; ticipating grade level. ited English proficiency. ‘‘(3) is enrolled or accepted for enrollment in ‘‘(2) COORDINATION REQUIREMENT.—In order ‘‘(D) Summer programs for individuals plan- a program of undergraduate instruction at an for the Secretary to require the cohort approach ning to attend an institution of higher edu- institution of higher education that is located described in paragraph (1), the Secretary shall, cation in the next academic year that— within the State’s boundaries, except that, at

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00062 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7977 the State’s option, an eligible entity may offer basis, a reasonable proportion of the allocation this section shall apply to the program author- grant program portability for recipients who at- shall be made available to such students.’’. ized by this section. tend institutions of higher education outside (c) CARRYOVER, CARRYBACK, AND REALLOCA- ‘‘(c) AUTHORIZED ACTIVITIES.—Each State re- such State; and TION.—Subpart 3 of part A of title IV (20 U.S.C. ceiving a grant under this section may use the ‘‘(4) who participated in the early interven- 1070b et seq.) is amended by adding at the end grant funds for— tion component required under section 404C. the following: ‘‘(1) increasing the dollar amount of grants ‘‘(e) PRIORITY.—The Secretary shall ensure ‘‘SEC. 413E. CARRYOVER, CARRYBACK, AND RE- awarded under section 415B to eligible students that each eligible entity places a priority on ALLOCATION. who demonstrate financial need; awarding scholarships to students who will re- ‘‘(a) CARRYOVER AUTHORITY.—Of the sums ‘‘(2) carrying out transition programs from ceive a Federal Pell Grant for the academic year made available to an eligible institution under secondary school to postsecondary education for for which the scholarship is awarded under this this subpart for a fiscal year, not more than 10 eligible students who demonstrate financial section. percent may, at the discretion of the institution, need; ‘‘(f) SPECIAL RULE.—An eligible entity may remain available for expenditure during the suc- ‘‘(3) making funds available for community consider students who have successfully partici- ceeding fiscal year to carry out the program service work-study activities for eligible students pated in programs funded under chapter 1 of under this subpart. who demonstrate financial need; this subpart to have met the requirements of ‘‘(b) CARRYBACK AUTHORITY.—Of the sums ‘‘(4) creating a postsecondary scholarship pro- subsection (d)(4). made available to an eligible institution under gram for eligible students who demonstrate fi- ‘‘SEC. 404E. 21ST CENTURY SCHOLAR CERTIFI- this subpart for a fiscal year, not more than 10 nancial need and wish to enter teaching; CATES. percent may, at the discretion of the institution, ‘‘(5) creating a scholarship program for eligi- ‘‘(a) AUTHORITY.—The Secretary, using funds be used by the institution for expenditure for ble students who demonstrate financial need appropriated under section 404G, not to exceed the fiscal year preceding the fiscal year for $200,000 annually— and wish to enter a program of study leading to which the sums were appropriated. a degree in mathematics, computer science, or ‘‘(1) shall ensure that certificates, to be ‘‘(c) REALLOCATION.—Any of the sums made engineering; known as 21st Century Scholar Certificates, are available to an eligible institution under this ‘‘(6) carrying out early intervention programs, provided to all students participating in pro- subpart for a fiscal year that are not needed by mentoring programs, and career education pro- grams under this chapter; and the institution to award supplemental grants grams for eligible students who demonstrate fi- ‘‘(2) may, as practicable, ensure that such cer- during that fiscal year, that the institution does nancial need; and tificates are provided to all students in grades 6 not wish to use during the succeeding fiscal ‘‘(7) awarding merit or academic scholarships through 12 who attend schools at which at least year as authorized in subsection (a), and that to eligible students who demonstrate financial 50 percent of the students enrolled are eligible the institution does not wish to use for the pre- need. for a free or reduced price lunch. ceding fiscal year as authorized in subsection ‘‘(b) INFORMATION REQUIRED.—A 21st Century ‘‘(d) MAINTENANCE OF EFFORT REQUIRE- (b), shall be made available to the Secretary for Scholar Certificate shall be personalized for MENT.—Each State receiving a grant under this reallocation under section 413D(e) until the end each student and indicate the amount of Fed- section for a fiscal year shall provide the Sec- of the second fiscal year after the fiscal year for eral financial aid for college which a student retary an assurance that the aggregate amount which such sums were appropriated.’’. may be eligible to receive. expended per student or the aggregate expendi- SEC. 416. LEVERAGING EDUCATIONAL ASSIST- ‘‘SEC. 404F. EVALUATION AND REPORT. tures by the State, from funds derived from non- ANCE PARTNERSHIP PROGRAM. ‘‘(a) EVALUATION.—Each eligible entity receiv- Federal sources, for the authorized activities de- (a) AMENDMENT TO SUBPART HEADING.— ing a grant under this chapter shall biennially (1) IN GENERAL.—The heading for subpart 4 of scribed in subsection (c) for the preceding fiscal evaluate the early intervention program assisted part A of title IV (20 U.S.C. 1070c et seq.) is year were not less than the amount expended under this chapter in accordance with the amended to read as follows: per student or the aggregate expenditures by the standards described in subsection (b) and shall State for the activities for the second preceding ‘‘SUBPART 4—LEVERAGING EDUCATIONAL submit to the Secretary a copy of such evalua- fiscal year. ASSISTANCE PARTNERSHIP PROGRAM’’. tion. The evaluation shall permit service pro- ‘‘(e) FEDERAL SHARE.—The Federal share of viders to track eligible student progress during (2) CONFORMING AMENDMENTS.—Subpart 4 of the cost of the authorized activities described in part A of title IV (20 U.S.C. 1070c et seq.) is the period such students are participating in the subsection (c) for any fiscal year shall be 331⁄3 program assisted under this section and shall be amended— percent.’’; and (A) in section 415B(b) (20 U.S.C. 1070c–1(b)), consistent with the standards developed by the (3) by adding at the end the following: by striking ‘‘State student grant incentive’’ and Secretary pursuant to subsection (b). inserting ‘‘leveraging educational assistance ‘‘SEC. 415G. FEDERAL-STATE RELATIONSHIPS; ‘‘(b) EVALUATION STANDARDS.—The Secretary STATE AGREEMENTS. shall prescribe standards for the evaluation de- partnership’’; and (B) in the heading for section 415C (20 U.S.C. ‘‘(a) IN GENERAL.—Any State that desires to scribed in subsection (a). Such standards shall— receive assistance under this subpart shall enter ‘‘(1) provide for input from eligible entities 1070c–2), by striking ‘‘STATE STUDENT IN- CENTIVE GRANT’’ and inserting into an agreement with the Secretary pursuant and service providers; and to subsection (b) setting forth the terms and con- ‘‘(2) ensure that data protocols and proce- ‘‘LEVERAGING EDUCATIONAL ASSISTANCE ditions for the relationship between the Federal dures are consistent and uniform. PARTNERSHIP’’. Government and that State for the purposes set ‘‘(c) FEDERAL EVALUATION.—In order to (b) AUTHORIZATION OF APPROPRIATIONS.—Sec- evaluate and improve the impact of the program tion 415A(b) (20 U.S.C. 1070c(b)) is amended— forth under this subpart. assisted under this chapter, the Secretary shall, (1) in paragraph (1), by striking ‘‘1993’’ and ‘‘(b) CONTENTS.— with funds appropriated under section 404G, inserting ‘‘1999’’; ‘‘(1) IN GENERAL.—Such agreement shall con- make grants to, and enter into contracts and co- (2) by redesignating paragraph (2) as para- sist of assurances by the State, including a de- operative agreements with public and private in- graph (3); and scription of the means to be used by the State to (3) by inserting after paragraph (1) the fol- stitutions and organizations, to evaluate the ef- fulfill the assurances, that— lowing: ‘‘(A) the State will provide for such methods fectiveness of the program and, as appropriate, ‘‘(2) RESERVATION.—For any fiscal year for of administration as are necessary for the prop- disseminate the results of the evaluation. which the amount appropriated under para- ‘‘(d) REPORT.—The Secretary shall biennially er and efficient administration of the program graph (1) exceeds $35,000,000, the excess shall be report to Congress on the activities assisted under this subpart in keeping with the purposes available to carry out section 415E.’’. under this chapter and the evaluations con- set forth under this subpart; (c) SPECIAL LEVERAGING EDUCATIONAL ASSIST- ‘‘(B) the State will provide for such fiscal con- ducted pursuant to this section. ANCE PARTNERSHIP PROGRAM.—Subpart 4 of ‘‘SEC. 404G. APPROPRIATIONS. trol and fund accounting procedures as may be part A of title IV (20 U.S.C. 1070c et seq.) is necessary to ensure proper disbursement of, and ‘‘There are authorized to be appropriated to amended— carry out this chapter $200,000,000 for fiscal accounting for, Federal funds paid to the State (1) by redesignating section 415E as 415F; under this subpart; year 1999 and such sums as may be necessary (2) by inserting after section 415D the fol- ‘‘(C) the State will follow policies and prac- for each of the 4 succeeding fiscal years.’’. lowing: SEC. 415. FEDERAL SUPPLEMENTAL EDU- tices of administration that will ensure that ‘‘SEC. 415E. SPECIAL LEVERAGING EDUCATIONAL non-Federal funds will not be supplanted by CATIONAL OPPORTUNITY GRANTS. ASSISTANCE PARTNERSHIP PRO- (a) AUTHORIZATION OF APPROPRIATIONS.—Sec- GRAM. Federal funds, and that equitable and appro- tion 413A(b) (20 U.S.C. 1070b) is amended by ‘‘(a) IN GENERAL.—From amounts reserved priate criteria will be used in evaluation of ap- striking ‘‘$675,000,000 for fiscal year 1993’’ and under section 415A(b)(2) for each fiscal year, the plications or proposals for grants under this inserting ‘‘$700,000,000 for fiscal year 1999’’. Secretary shall— subpart; and (b) USE OF FUNDS FOR LESS-THAN-FULL-TIME ‘‘(1) make allotments among States in the ‘‘(D) the State has a comprehensive planning STUDENTS.—Subsection (d) of section 413C (20 same manner as the Secretary makes allotments or policy formulation process that— U.S.C. 1070b–2) is amended to read as follows: among States under section 415B; and ‘‘(i) considers the relation between State ad- ‘‘(d) USE OF FUNDS FOR LESS-THAN-FULL- ‘‘(2) award grants to States, from allotments ministration of the program under this subpart, TIME STUDENTS.—If the institution’s allocation under paragraph (1), to enable the States to pay and administration of similar State programs or under this subpart is directly or indirectly based the Federal share of the cost of the authorized processes; in part on the financial need demonstrated by activities described in subsection (c). ‘‘(ii) encourages State policies designed to students who are independent students or at- ‘‘(b) APPLICABILITY RULE.—The provisions of consider effects on declining enrollments on all tending the institution on less than a full-time this subpart which are not inconsistent with sectors of postsecondary education in the State;

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‘‘(iii) considers the postsecondary education ‘‘(a) PURPOSE OF SUBPART.—It is the purpose ‘‘(6) CONSTRUCTION.—Nothing in this section needs of unserved and underserved individuals of this subpart to make incentive grants avail- shall be construed to prohibit an institution of within the State, including individuals beyond able to States to assist States in— higher education that receives grant funds the traditional college age; ‘‘(1) providing grants to— under this section from serving the child care ‘‘(iv) considers the resources of institutions, ‘‘(A) eligible students attending institutions of needs of the community served by the institu- organizations, or agencies (both public and pri- higher education or participating in programs of tion. vate) within the State capable of providing post- study abroad that are approved for credit by in- ‘‘(7) DEFINITION OF LOW-INCOME STUDENT.— secondary educational opportunities in the stitutions of higher education at which such For the purpose of this section, the term ‘‘low- State; and students are enrolled; and income student’’ means a student who is eligible ‘‘(v) provides for direct, equitable, and active ‘‘(B) eligible students for campus-based com- to receive a Federal Pell Grant for the fiscal participation in the comprehensive planning or munity service work-study; and year for which the determination is made. policy formulation process or processes of rep- ‘‘(2) carrying out the activities described in ‘‘(c) APPLICATIONS.—An institution of higher resentatives of institutions of higher education section 415F.’’. education desiring a grant under this section (including community colleges, proprietary in- (2) ALLOTMENT.—Section 415B(a)(1) (20 U.S.C. shall submit an application to the Secretary at stitutions, and independent colleges and univer- 1070c–1(a)(1)) is amended by inserting ‘‘and not such time, in such manner, and accompanied by sities), students, other providers of postsec- reserved under section 415A(b)(2)’’ after such information as the Secretary may require. ondary education services, and the general pub- ‘‘415A(b)(1)’’. Each application shall— lic in the State. SEC. 417. HEP AND CAMP. ‘‘(1) demonstrate that the institution is an eli- ‘‘(2) SPECIAL RULE.—Participation under Section 418A(g) (20 U.S.C. 1070d–2(g)) is gible institution described in subsection (b)(4); paragraph (1)(D)(v) shall, consistent with State amended— ‘‘(2) specify the amount of funds requested; law, be achieved through membership on State (1) in paragraph (1), by striking ‘‘$15,000,000 ‘‘(3) demonstrate the need of low-income stu- planning commissions, State advisory councils, for fiscal year 1993’’ and inserting ‘‘$25,000,000 dents at the institution for campus-based child or other State entities established by the State to for fiscal year 1999’’; and care services by including in the application— conduct federally assisted comprehensive plan- (2) in paragraph (2), by striking ‘‘$5,000,000 ‘‘(A) information regarding student demo- ning or policy formulation. for fiscal year 1993’’ and inserting ‘‘$10,000,000 graphics; ‘‘(c) SPECIAL RULE.—The information and as- for fiscal year 1999’’. ‘‘(B) an assessment of child care capacity on surances provided by a State in accordance with SEC. 418. ROBERT C. BYRD HONORS SCHOLAR- or near campus; subparagraphs (A), (B), and (C) of subsection SHIP PROGRAM. ‘‘(C) information regarding the existence of (b)(1), and regulations issued by the Secretary Section 419K (20 U.S.C. 1070d–41) is amended waiting lists for existing child care; related directly to such assurances, shall be sat- by striking ‘‘$10,000,000 for fiscal year 1993’’ and ‘‘(D) information regarding additional needs isfactory for the purposes of, and shall be con- inserting ‘‘$45,000,000 for fiscal year 1999’’. created by concentrations of poverty or by geo- sidered in lieu of, any comparable requirements graphic isolation; and SEC. 419. CHILD CARE ACCESS MEANS PARENTS ‘‘(E) other relevant data; for information and assurances in any program IN SCHOOL. ‘‘(4) contain a description of the activities to under this subpart. Part A of title IV (20 U.S.C. 1070 et seq.) is be assisted, including whether the grant funds ‘‘(d) AGREEMENT DURATION; COMPLIANCE.— amended by inserting after subpart 6 (20 U.S.C. will support an existing child care program or a ‘‘(1) AGREEMENT DURATION.—An agreement of 1070d–31 et seq.) the following: new child care program; a State shall remain in effect subject to modi- ‘‘Subpart 7—Child Care Access Means Parents ‘‘(5) identify the resources, including tech- fication as changes in information or cir- in School nical expertise and financial support, the insti- cumstances require. ‘‘SEC. 419N. CHILD CARE ACCESS MEANS PAR- tution will draw upon to support the child care ‘‘(2) COMPLIANCE.—Whenever the Secretary, ENTS IN SCHOOL. program and the participation of low-income after reasonable notice and opportunity for a ‘‘(a) PURPOSE.—The purpose of this section is students in the program, such as accessing so- hearing has been given to the State, finds that to support the participation of low-income par- cial services funding, using student activity fees there is a failure to comply substantially with ents in postsecondary education through the to help pay the costs of child care, using re- the assurances required in subparagraph (A), provision of campus-based child care services. sources obtained by meeting the needs of par- (B), or (C) of subsection (b)(1), the Secretary ‘‘(b) PROGRAM AUTHORIZED.— ents who are not low-income students, and ac- shall notify the State that the State is no longer ‘‘(1) AUTHORITY.—The Secretary may award cessing foundation, corporate or other institu- eligible to participate in the program under this grants to institutions of higher education to as- tional support, and demonstrate that the use of subpart until the Secretary is satisfied that sist the institutions in providing campus-based the resources will not result in increases in stu- there is no longer any such failure to comply. child care services primarily to low-income stu- dent tuition; ‘‘(e) SPECIAL RULES.— dents. ‘‘(6) contain an assurance that the institution ‘‘(1) ENTITIES ENTERING INTO AGREEMENTS.— ‘‘(2) AMOUNT OF GRANTS.— will meet the child care needs of low-income stu- For the purpose of this section, the selection of ‘‘(A) IN GENERAL.—The amount of a grant dents through the provision of services, or the State entity or entities authorized to act on awarded to an institution of higher education through a contract for the provision of services; behalf of the State for the purpose of entering under this section for a fiscal year shall not ex- ‘‘(7) describe the extent to which the child into an agreement with the Secretary shall be in ceed 1 percent of the total amount of all Federal care program will coordinate with the institu- accordance with the State law of each indi- Pell Grant funds awarded to students enrolled tion’s early childhood education curriculum, to vidual State with respect to the authority to at the institution of higher education for the the extent the curriculum is available, to meet make legal agreements between the State and preceding fiscal year. the needs of the students in the early childhood the Federal Government. ‘‘(B) MINIMUM.—A grant under this section education program at the institution, and the ‘‘(2) CONSTRUCTION.— shall be awarded in an amount that is not less needs of the parents and children participating ‘‘(A) STATE STRUCTURE.—Nothing in this sec- than $10,000. in the child care program assisted under this tion shall be construed to authorize the Sec- ‘‘(3) DURATION; RENEWAL; AND PAYMENTS.— section; retary to require any State to adopt, as a condi- ‘‘(A) DURATION.—The Secretary shall award a ‘‘(8) in the case of an institution seeking as- tion for entering into an agreement, or for par- grant under this section for a period of 3 years. sistance for a new child care program— ticipation in a program under this subpart, a ‘‘(B) RENEWAL.—A grant under this section ‘‘(A) provide a timeline, covering the period specific State organizational structure for may be renewed for a period of 3 years. from receipt of the grant through the provision achieving participation in the planning, or ad- ‘‘(C) PAYMENTS.—Subject to subsection (e)(2), of the child care services, delineating the spe- ministration of programs, or for statewide plan- the Secretary shall make annual grant pay- cific steps the institution will take to achieve ning, coordination, governing, regulating, or ments under this section. the goal of providing low-income students with administering of postsecondary education agen- ‘‘(4) ELIGIBLE INSTITUTIONS.—An institution child care services; cies, institutions, or programs in the State. of higher education shall be eligible to receive a ‘‘(B) specify any measures the institution will ‘‘(B) STATE AUTHORITY.—Nothing in this sec- grant under this section for a fiscal year if the take to assist low-income students with child tion shall be construed as a limitation on the total amount of all Federal Pell Grant funds care during the period before the institution authority of any State to adopt a State organi- awarded to students enrolled at the institution provides child care services; and zational structure for postsecondary education of higher education for the preceding fiscal year ‘‘(C) include a plan for identifying resources agencies, institutions, or programs that is ap- equals or exceeds $350,000. needed for the child care services, including propriate to the needs, traditions, and cir- ‘‘(5) USE OF FUNDS.—Grant funds under this space in which to provide child care services, cumstances of that State, or as a limitation on section shall be used by an institution of higher and technical assistance if necessary; the authority of a State entering into an agree- education to support or establish a campus- ‘‘(9) contain an assurance that any child care ment pursuant to this section to modify the based child care program primarily serving the facility assisted under this section will meet the State organizational structure at any time sub- needs of low-income students enrolled at the in- applicable State or local government licensing, sequent to entering into such an agreement.’’. stitution of higher education. Grant funds certification, approval, or registration require- (d) TECHNICAL AND CONFORMING AMEND- under this section may be used to provide before ments; and MENTS.— and after school services to the extent necessary ‘‘(10) contain a plan for any child care facility (1) PURPOSE.—Subsection (a) of section 415A to enable low-income students enrolled at the assisted under this section to become accredited (20 U.S.C. 1070c(a)) is amended to read as fol- institution of higher education to pursue post- within 3 years of the date the institution first lows: secondary education. receives assistance under this section.

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‘‘(d) PRIORITY.—The Secretary shall give pri- ‘‘(4) Partnerships, consisting of institutions of 1999 and such sums as may be necessary for ority in awarding grants under this section to higher education, community organizations, or each of the 4 succeeding fiscal years.’’. institutions of higher education that submit ap- other public or private agencies or organiza- PART B—FEDERAL FAMILY EDUCATION plications describing programs that— tions, can coordinate and combine institutional LOAN PROGRAM ‘‘(1) leverage significant local or institutional resources— SEC. 421. ADVANCES FOR RESERVE FUNDS. resources, including in-kind contributions, to ‘‘(A) to provide the needed variety of edu- support the activities assisted under this section; cation options to students; and Section 422 (20 U.S.C. 1072) is amended— (1) in subsection (c)— and ‘‘(B) to develop new means of ensuring ac- (A) in paragraph (6)(B)(i), by striking ‘‘writ- ‘‘(2) utilize a sliding fee scale for child care countability and quality for innovative edu- ten’’ and inserting ‘‘written, electronic’’; and services provided under this section in order to cation methods. (B) in paragraph (7)(A), by striking ‘‘during support a high number of low-income parents ‘‘SEC. 420E. PURPOSE; PROGRAM AUTHORIZED. the transition from the Federal Family Edu- pursuing postsecondary education at the insti- ‘‘(a) PURPOSE.—It is the purpose of this sub- cation Loan Program under this part to the tution. part to enhance the delivery, quality, and ac- Federal Direct Student Loan Program under ‘‘(e) REPORTING REQUIREMENTS; CONTINUING countability of postsecondary education and ca- part D of this title’’; ELIGIBILITY.— reer-oriented lifelong learning through tech- (2) in the matter preceding subparagraph (A) ‘‘(1) REPORTING REQUIREMENTS.— nology and related innovations. of subsection (g)(1), by striking ‘‘or the program ‘‘(A) REPORTS.—Each institution of higher ‘‘(b) PROGRAM AUTHORIZED.— education receiving a grant under this section ‘‘(1) GRANTS.— authorized by part D of this title’’ each place ‘‘(A) IN GENERAL.—The Secretary may, from shall report to the Secretary 18 months, and 36 the term appears; and funds appropriated under section 420J make months, after receiving the first grant payment (3) by adding at the end the following: grants to, or enter into contracts or cooperative ‘‘(i) ADDITIONAL RECALL OF RESERVES FOR under this section. agreements with, eligible partnerships to carry FISCAL YEARS 1999, 2000, 2001, AND 2002.— ‘‘(B) CONTENTS.—The report shall include— out the authorized activities described in section ‘‘(i) data on the population served under this ‘‘(1) IN GENERAL.—Notwithstanding any other 420G. section; provision of law and subject to paragraph (4), ‘‘(B) DURATION.—Grants under this subpart the Secretary shall recall $21,250,000 for each of ‘‘(ii) information on campus and community shall be awarded for periods that do not exceed resources and funding used to help low-income the fiscal years 1999, 2000, 2001, and 2002 from 5 years. reserve funds held in the Federal Student Loan students access child care services; ‘‘(2) DEFINITION OF ELIGIBLE PARTNERSHIP.— ‘‘(iii) information on progress made toward Reserve Funds established under section 422A For purposes of this subpart, the term ‘eligible by guaranty agencies. accreditation of any child care facility; and partnership’ means a partnership consisting of 2 ‘‘(iv) information on the impact of the grant ‘‘(2) DEPOSIT.—Funds recalled by the Sec- or more independent agencies, organizations, or retary under this subsection shall be deposited on the quality, availability, and affordability of institutions. The agencies, organizations, or in- campus-based child care services. in the Treasury. stitutions may include institutions of higher ‘‘(3) REQUIRED SHARE.—The Secretary shall ‘‘(2) CONTINUING ELIGIBILITY.—The Secretary education, community organizations, and other shall make the third annual grant payment require each guaranty agency to return reserve public and private institutions, agencies, and funds under paragraph (1) annually on the under this section to an institution of higher organizations. basis of 1⁄4 of the agency’s required share. For education only if the Secretary determines, on ‘‘SEC. 420F. APPLICATION. the basis of the 18-month report submitted under purposes of this paragraph, a guaranty agen- ‘‘(a) REQUIREMENT.—An eligible partnership cy’s required share shall be determined as fol- paragraph (1), that the institution is making a desiring to receive a grant under this subpart good faith effort to ensure that low-income stu- lows: shall submit an application to the Secretary, in ‘‘(A) EQUAL PERCENTAGE.—The Secretary dents at the institution have access to afford- such form and containing such information, as able, quality child care services. shall require each guaranty agency to return an the Secretary may require. equal percentage reduction in the amount of re- ‘‘(f) CONSTRUCTION.—No funds provided under ‘‘(b) CONTENTS.—Each application shall in- this section shall be used for construction, ex- serve funds held by the agency on September 30, clude— 1996. cept for minor renovation or repair to meet ap- ‘‘(1) the name of each partner and a descrip- ‘‘(B) CALCULATION.—The equal percentage re- plicable State or local health or safety require- tion of the responsibilities of the partner, in- duction shall be the percentage obtained by di- ments. cluding the designation of a nonprofit organiza- viding— ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— tion as the fiscal agent for the partnership; There are authorized to be appropriated to carry ‘‘(2) a description of the need for the project, ‘‘(i) $85,000,000, by ‘‘(ii) the total amount of all guaranty agen- out this section $60,000,000 for fiscal year 1999 including a description of how the project will cies’ reserve funds held on September 30, 1996. and such sums as may be necessary for each of build on any existing services and activities; the 4 succeeding fiscal years.’’. ‘‘(3) a listing of human, financial (other than ‘‘(C) SPECIAL RULE.—Notwithstanding sub- paragraphs (A) and (B), the percentage reduc- SEC. 420. LEARNING ANYTIME ANYWHERE PART- funds provided under this subpart), and other NERSHIPS. resources that each member of the partnership tion under subparagraph (B) shall not result in Part A of title IV (20 U.S.C. 1070 et seq.) is will contribute to the partnership, and a de- the depletion of the reserve funds of any agency amended further by adding at the end the fol- scription of the efforts each member of the part- which charges the 1.0 percent insurance pre- lowing: nership will make in seeking additional re- mium pursuant to section 428(b)(1)(H) below an amount equal to the amount of lender claim ‘‘Subpart 9—Learning Anytime Anywhere sources; and ‘‘(4) a description of how the project will oper- payments paid 90 days prior to the date of the Partnerships ate, including how funds awarded under this return under this subsection. If any additional ‘‘SEC. 420D. FINDINGS. subpart will be used to meet the purpose of this amount is required to be returned after deduct- ‘‘Congress makes the following findings: subpart. ing the total of the required shares under sub- ‘‘(1) The nature of postsecondary education ‘‘SEC. 420G. AUTHORIZED ACTIVITIES. paragraph (B) and as a result of the preceding delivery is changing, and new technology and ‘‘Funds awarded to an eligible partnership sentence, such additional amount shall be ob- other related innovations can provide promising under this subpart shall be used to— tained by imposing on each guaranty agency to education opportunities for individuals who are ‘‘(1) develop and assess model distance learn- which the preceding sentence does not apply, an currently not being served, particularly for indi- ing programs or innovative educational soft- equal percentage reduction in the amount of the viduals without easy access to traditional cam- ware; agency’s remaining reserve funds. pus-based postsecondary education or for whom ‘‘(2) develop methodologies for the identifica- ‘‘(4) OFFSET OF REQUIRED SHARES.—If any traditional courses are a poor match with edu- tion and measurement of skill competencies; guaranty agency returns to the Secretary any cation or training needs. ‘‘(3) develop and assess innovative student reserve funds in excess of the amount required ‘‘(2) Individuals, including individuals seek- support services; or under this subsection or subsection (h), the total ing basic or technical skills or their first postsec- ‘‘(4) support other activities that are con- amount required to be returned under para- ondary experience, individuals with disabilities, sistent with the purpose of this subpart. graph (1) shall be reduced by the amount of dislocated workers, individuals making the tran- ‘‘SEC. 420H. MATCHING REQUIREMENT. such excess reserve funds returned. sition from welfare-to-work, and individuals ‘‘Federal funds shall provide not more than 50 ‘‘(5) DEFINITION OF RESERVE FUNDS.—The term who are limited by time and place constraints percent of the cost of a project under this sub- ‘reserve funds’ when used with respect to a can benefit from nontraditional, noncampus- part. The non-Federal share of project costs guaranty agency— based postsecondary education opportunities may be in cash or in kind, fairly evaluated, in- ‘‘(A) includes any reserve funds in cash or liq- and appropriate support services. cluding services, supplies, or equipment. uid assets held by the guaranty agency, or held ‘‘(3) The need for high-quality, nontradi- ‘‘SEC. 420I. PEER REVIEW. by, or under the control of, any other entity; tional, technology-based education opportuni- ‘‘The Secretary shall use a peer review process and ties is great, as is the need for skill competency to review applications under this subpart and to ‘‘(B) does not include buildings, equipment, or credentials and other measures of educational make recommendations for funding under this other nonliquid assets. progress and attainment that are valid and subpart to the Secretary. ‘‘(j) ADDITIONAL RECALL OF RESERVES ON SEP- widely accepted, but neither need is likely to be ‘‘SEC. 420J. AUTHORIZATION OF APPROPRIA- TEMBER 1, 2007.— adequately addressed by the uncoordinated ef- TIONS. ‘‘(1) IN GENERAL.—Notwithstanding any other forts of agencies and institutions acting inde- ‘‘There are authorized to be appropriated to provision of law and subject to paragraph (4), pendently and without assistance. carry out this subpart $30,000,000 for fiscal year the Secretary shall recall, on September 1, 2007,

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00065 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7980 CONGRESSIONAL RECORD — SENATE July 10, 1998

$165,000,000 from reserve funds held in the Fed- shall be used in the operation of the program ‘‘(b) INVESTMENT OF FUNDS.—Funds deposited eral Student Loan Reserve Funds established authorized by the part, as provided in sub- into the Operating Fund, with the exception of under section 422A by guaranty agencies. section (d). The Secretary may restrict or regu- funds transferred from the Federal Student ‘‘(2) DEPOSIT.—Funds recalled by the Sec- late the use of such asset only to the extent nec- Loan Reserve Fund pursuant to section 422A(f), retary under this subsection shall be deposited essary to reasonably protect the Secretary’s pro- shall be invested at the discretion of the guar- in the Treasury. rated share of the value of such asset. The Sec- anty agency. ‘‘(3) EQUAL PERCENTAGE REDUCTION.—The retary may direct a guaranty agency, or such ‘‘(c) ADDITIONAL DEPOSITS.—After the estab- Secretary shall require each guaranty agency to agency’s officers or directors, to cease any activ- lishment of the Operating Fund, the guaranty return reserve funds under paragraph (1) by re- ity involving expenditures, use, or transfer of agency shall deposit into the Operating Fund— quiring an equal percentage reduction in the the Federal Fund administered by the guaranty ‘‘(1) the loan processing and issuance fee paid amount of reserve funds held by the agency on agency that the Secretary determines is a by the Secretary pursuant to section 428(f); September 30, 1996. misapplication, misuse, or improper expendi- ‘‘(2) administrative cost allowances paid under section 458, as such section was in effect ‘‘(4) OFFSET OF REQUIRED SHARES.—If any tures of the Federal fund or the Secretary’s guaranty agency returns to the Secretary any share of such asset. on the day preceding the date of enactment of the Higher Education Amendments of 1998, and reserve funds in excess of the amount required ‘‘(f) TRANSITION.— the portfolio maintenance fee paid by the Sec- under this subsection, subsection (h), or sub- ‘‘(1) IN GENERAL.—In order to establish the retary in accordance with section 458; section (i), the total amount required to be re- Agency Operating Fund established by section ‘‘(3) the default prevention fee paid in accord- 422B, each agency may transfer not more than turned under paragraph (1) shall be reduced by ance with section 428(l); and the amount of such excess reserve funds re- 180 days cash expenses for normal operating ex- ‘‘(4) amounts remaining pursuant to section turned. penses, as a working capital reserve as defined 428(c)(6)(B) from collection on defaulted loans ‘‘(5) DEFINITION OF RESERVE FUNDS.—The term in Office of Management and Budget Circular held by the agency, after payment of the Sec- ‘reserve funds’ when used with respect to a A–87 (Cost Accounting Standards) for use in the retary’s equitable share, excluding amounts de- guaranty agency— performance of the agency’s duties under this posited in the Federal Student Loan Reserve ‘‘(A) includes any reserve funds in cash or liq- part. Such transfers may occur during the first Fund pursuant to section 422A(c)(2). uid assets held by the guaranty agency, or held 3 years following the establishment of the Agen- ‘‘(d) USES OF FUNDS.— by, or under the control of, any other entity; cy Operating Fund, except that no agency may ‘‘(1) IN GENERAL.—Funds in the Operating and transfer in excess of 40 percent of the Federal Fund shall be used for application processing, ‘‘(B) does not include buildings, equipment, or Fund balance to the agency’s Agency Operating loan disbursement, enrollment and repayment other nonliquid assets.’’. Fund during any fiscal year. In determining the status management, default prevention activities SEC. 422. FEDERAL STUDENT LOAN RESERVE amount necessary for transfer, the agency shall (including those described in section 422(h)(8), FUND. assure that sufficient funds remain in the Fed- default collection activities, school and lender Part B of title IV (20 U.S.C. 1071 et seq.) is eral Fund to pay lender claims within the re- training, compliance monitoring, and other stu- amended by inserting after section 422 (20 quired time periods and to meet the reserve dent financial aid related activities as deter- U.S.C. 1072) the following: funds recall requirements of subsection (b). mined by the Secretary. ‘‘(2) SPECIAL RULE.—The guaranty agency ‘‘SEC. 422A. FEDERAL STUDENT LOAN RESERVE ‘‘(2) REPAYMENT PROVISIONS.—Each guaranty FUND. agency shall begin repayment of sums trans- may, in the agency’s discretion, transfer funds from the Operating Fund to the Federal Student ‘‘(a) ESTABLISHMENT.—Each guaranty agency ferred pursuant to this subsection not later than shall, not later than 45 days after the date of 3 years after the establishment of the Agency Loan Reserve Fund for use pursuant to section enactment of this section, deposit all funds, se- Operating Fund, and shall repay all sums trans- 422A. Such transfer shall be irrevocable, and any funds so transferred shall become the sole curities, and other liquid assets contained in the ferred not later than 5 years from the date of property of the United States. reserve fund established pursuant to section 422 the establishment of the Agency Operating Fund. The guaranty agency shall provide to the ‘‘(3) DEFINITIONS.—For purposes of this sub- into a Federal Student Loan Reserve Fund (in section: this section referred to as the ‘Federal Fund’), Secretary a schedule for repayment of the sums transferred and an annual financial analysis ‘‘(A) DEFAULT COLLECTION ACTIVITIES.—The in an account of a type selected by the agency, term ‘default collection activities’ means activi- with the approval of the Secretary. demonstrating the agency’s ability to comply with the schedule and repay all outstanding ties of a guaranty agency that are directly re- ‘‘(b) INVESTMENT OF FUNDS.—Funds trans- lated to the collection of the loan on which a de- ferred to the Federal Fund shall be invested in sums transferred. ‘‘(3) PROHIBITION.—If a guaranty agency fault claim has been paid to the participating obligations issued or guaranteed by the United lender, including the attributable compensation States or a State, or in other similarly low-risk transfers funds from the Federal Fund in ac- cordance with this section, and fails to make of collection personnel (and in the case of per- securities selected by the guaranty agency, with sonnel who perform several functions for such the approval of the Secretary. Earnings from the scheduled repayments to the Federal Fund, the agency may not receive any other funds under an agency only the portion of the compensation Federal Fund shall be the sole property of the attributable to the collection activity), attor- Federal Government. this part until the Secretary determines that the agency has made such repayments. The Sec- ney’s fees, fees paid to collection agencies, post- ‘‘(c) ADDITIONAL DEPOSITS.—After the estab- age, equipment, supplies, telephone, and similar lishment of the Federal Fund, a guaranty agen- retary shall pay to the guaranty agency any funds withheld in accordance with this para- charges. cy shall deposit into the Federal Fund— ‘‘(B) DEFAULT PREVENTION ACTIVITIES.—The graph immediately upon making the determina- ‘‘(1) all amounts received from the Secretary term ‘default prevention activities’ means activi- tion that the guaranty agency has made all as payment of reinsurance on loans pursuant to ties of a guaranty agency, including those de- such repayments. section 428(c)(1); scribed in section 422(h)(8), that are directly re- ‘‘(2) from amounts collected on behalf of the ‘‘(4) WAIVER.—The Secretary may waive the requirements of paragraph (3) for a guaranty lated to providing collection assistance to the obligation of a defaulted borrower, a percentage lender on a delinquent loan, prior to the loan’s amount equal to the complement of the reinsur- agency described in such paragraph if the Sec- retary determines there are extenuating cir- being in a default status, including the attrib- ance percentage in effect when payment under utable compensation of appropriate personnel the guaranty agreement was made with respect cumstances beyond the control of the agency that justify such a waiver. (and in the case of personnel who perform sev- to the defaulted loan pursuant to section eral functions for such an agency only the por- ‘‘(5) INVESTMENT OF FEDERAL FUNDS.—Funds 428(c)(6)(A); and tion of compensation attributable to the default ‘‘(3) the amount of the insurance premium col- transferred from the Federal Fund to the Agen- cy Operating Fund for operating expenses shall prevention activity), fees paid to locate a miss- lected from borrowers pursuant to section ing borrower, postage, equipment, supplies, tele- 428(b)(1)(H). be invested in obligations issued or guaranteed by the United States or a State, or in other simi- phone, and similar charges. ‘‘(d) USES OF FUNDS.—Subject to subsection ‘‘(C) ENROLLMENT AND REPAYMENT STATUS larly low-risk securities selected by the guaranty (f), the Federal Fund may only be used by a MANAGEMENT.—The term ‘enrollment and repay- agency, with the approval of the Secretary. guaranty agency— ment status management’ means activities of a ‘‘(6) SPECIAL RULE.—In applying the minimum ‘‘(1) to pay lender claims pursuant to sections guaranty agency that are directly related to reserve level required by section 428(c)(9)(A), the 428(b)(1)(G), 428(j), 437, and 439(q); and ascertaining the student’s enrollment status, in- Secretary shall include all amounts owed to the ‘‘(2) to pay into the Agency Operating Fund cluding prompt notification to the lender of Federal Fund by the guaranty agency in the established pursuant to section 422B a default such status, an audit of the note or written calculation.’’. prevention fee in accordance with section 428(l). agreement to determine if the provisions of that ‘‘(e) OWNERSHIP OF FEDERAL FUND.—The Fed- SEC. 423. AGENCY OPERATING FUND. note or agreement are consistent with the eral Fund, and any nonliquid asset (such as a Part B of title IV (20 U.S.C. 1071 et seq.) is records of the guaranty agency as to the prin- building or equipment) developed or purchased amended further by inserting after section 422A cipal amount of the loan guaranteed, and an by the guaranty agency in whole or in part with (as added by section 422) the following: examination of the note or agreement to assure Federal reserve funds, regardless of who holds ‘‘SEC. 422B. AGENCY OPERATING FUND. that the repayment provisions are consistent or controls the Federal reserve funds or such ‘‘(a) ESTABLISHMENT.—Each guaranty agency with the provisions of this title. asset, shall be considered to be the property of shall, not later than 45 days after the date of ‘‘(e) OWNERSHIP OF OPERATING FUND.—The the United States, prorated based on the per- enactment of this section, establish a fund des- Operating Fund, with the exception of funds centage of such asset developed or purchased ignated as the Agency Operating Fund (in this transferred from the Federal Student Loan Re- with Federal reserve funds, which property section referred to as the ‘Operating Fund’). serve Fund in accordance with section 422A(f),

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00066 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7981 shall be considered to be the property of the graph, and except as provided in subparagraph will receive under subpart 1 of part A (as deter- guaranty agency. The Secretary may not regu- (B), the special allowance paid pursuant to this mined in accordance with section 484(b)), sub- late the uses or expenditure of moneys in the subsection on loans for which the first disburse- part 3 of part A, parts C and E, and any vet- Operating Fund, but the Secretary may require ment is made on or after October 1, 1998, and be- erans’ education benefits paid because of enroll- such necessary reports and audits as provided fore July 1, 2003, shall be computed— ment in a postsecondary education institution, in section 428(b)(2). However, during any period ‘‘(I) by determining the average of the bond including veterans’ education benefits (as de- in which funds are owed to the Federal Student equivalent rates of 91-day Treasury bills auc- fined in section 480(c)), plus other scholarship, Loan Reserve Fund as a result of transfer under tioned for such 3-month period; grant, or loan assistance; and section 422A(f), moneys in the Operating Fund ‘‘(II) by subtracting the applicable interest ‘‘(iii) the determination of need and of the may only be used for expenses related to the stu- rates on such loans from such average bond amount of a loan by an eligible institution dent loan programs authorized under this equivalent rate; under subparagraph (B) with respect to a stu- part.’’. ‘‘(III) by adding 2.8 percent to the resultant dent shall, with the exception of loans made SEC. 424. SCOPE AND DURATION OF FEDERAL percent; and under section 428H, be calculated in accordance LOAN INSURANCE PROGRAM. ‘‘(IV) by dividing the resultant percent by 4. with part F.’’; and Section 424(a) (20 U.S.C. 1074(a)) is amended— ‘‘(ii) IN SCHOOL AND GRACE PERIOD.—In the (D) by striking subparagraph (F); (1) by striking ‘‘October 1, 2002’’ and inserting case of any loan for which the first disburse- (2) in paragraph (3)(A)(v)— ‘‘October 1, 2004’’; and ment is made on or after October 1, 1998, and be- (A) in subclause (I), by inserting ‘‘by the in- (2) by striking ‘‘September 30, 2006’’ and in- fore July 1, 2003, and for which the applicable stitution’’ after ‘‘disbursement’’; and serting ‘‘September 30, 2008’’. rate of interest is described in section 427A(j)(2), (B) in clause (II), by inserting ‘‘by the institu- clause (i)(III) of this subparagraph shall be ap- tion’’ after ‘‘disbursement’’; and SEC. 425. APPLICABLE INTEREST RATES. plied by substituting ‘2.2 percent’ for ‘2.8 per- (3) in paragraph (5)— (a) APPLICABLE INTEREST RATES.— cent’. (A) by striking ‘‘September 30, 2002’’ and in- (1) AMENDMENT.—Section 427A (20 U.S.C. ‘‘(iii) PLUS LOANS.—In the case of any loan serting ‘‘September 30, 2004’’; and 1077a et seq.) is amended by amending sub- for which the first disbursement is made on or (B) by striking ‘‘September 30, 2006’’ and in- section (j) to read as follows: after October 1, 1998, and before July 1, 2003, serting ‘‘September 30, 2008’’. ‘‘(j) INTEREST RATES FOR NEW LOANS ONOR and for which the applicable rate of interest is (b) INSURANCE PROGRAM AGREEMENTS.—Sec- AFTER OCTOBER 1, 1998, AND BEFORE JULY 1, described in section 427A(j)(3), clause (i)(III) of tion 428(b) (20 U.S.C. 1078(b)) is amended— 2003.— this subparagraph shall be applied by sub- (1) in paragraph (1)— ‘‘(1) IN GENERAL.—Notwithstanding subsection stituting ‘3.1 percent’ for ‘2.8 percent’, subject to (A) in subparagraph (A)— (h) and subject to paragraph (2), with respect to clause (iv) of this subparagraph. (i) in the matter preceding clause (i), by in- any loan made, insured, or guaranteed under ‘‘(iv) LIMITATION ON SPECIAL ALLOWANCES FOR serting ‘‘, as defined in section 481(d)(2),’’ after this part (other than a loan made pursuant to PLUS LOANS.—In the case of loans disbursed on ‘‘academic year’’; section 428B or 428C) for which the first dis- or after October 1, 1998, and before July 1, 2003, (ii) in clause (iv), by striking ‘‘and’’ after the bursement is made on or after October 1, 1998, for which the interest rate is determined under semicolon; and before July 1, 2003, the applicable rate of in- section 427A(j)(3), a special allowance shall not (iii) in clause (v), by inserting ‘‘and’’ after the terest shall, during any 12-month period begin- be paid for a loan made under section 428B un- semicolon; and ning on July 1 and ending on June 30, be deter- less the rate determined for any 12-month period (iv) by inserting before the matter following mined on the preceding June 1 and be equal to— under section 427A(j)(3) exceeds 9 percent.’’. clause (v) the following: ‘‘(A) the bond equivalent rate of 91-day Treas- (2) CONFORMING AMENDMENT.—Section ‘‘(vi) in the case of a student enrolled in ury bills auctioned at the final auction held 438(b)(2)(C)(ii) is amended by striking ‘‘In the coursework specified in sections 484(b)(3)(B) and prior to such June 1; plus case’’ and inserting ‘‘Subject to subparagraph 484(b)(4)(B)— ‘‘(B) 2.3 percent, (G), in the case’’. ‘‘(I) $2,625 for coursework necessary for en- except that such rate shall not exceed 8.25 per- (c) EFFECTIVE DATE.—The amendments made rollment in an undergraduate degree or certifi- cent. by this section shall apply with respect to any cate program, and $5,500 for coursework nec- ‘‘(2) IN SCHOOL AND GRACE PERIOD RULES.— loan made, insured, or guaranteed under part B essary for enrollment in a graduate or profes- Notwithstanding subsection (h), with respect to of title IV of the Higher Education Act of 1965 sional degree or certification program; and any loan under this part (other than a loan for which the first disbursement is made on or ‘‘(II) $5,500 for coursework necessary for a made pursuant to section 428B or 428C) for after October 1, 1998, and before July 1, 2003. professional credential or certification from a which the first disbursement is made on or after State required for employment as a teacher in October 1, 1998, and before July 1, 2003, the ap- SEC. 426. FEDERAL PAYMENTS TO REDUCE STU- DENT INTEREST COSTS. an elementary or secondary school;’’; plicable rate of interest for interest which ac- (a) FEDERAL INTEREST SUBSIDIES.—Section (B) by amending subparagraph (E) to read as crues— 428(a) (20 U.S.C. 1078(a)) is amended— follows: ‘‘(A) prior to the beginning of the repayment (1) in paragraph (2)— ‘‘(E) subject to subparagraphs (D) and (L), period of the loan; or (A) in subparagraph (A)— and except as provided by subparagraph (M), ‘‘(B) during the period in which principal (i) in clause (i), by striking subclauses (I), provides that— need not be paid (whether or not such principal (II), and (III) and inserting the following: ‘‘(i) not more than 6 months prior to the date is in fact paid) by reason of a provision de- ‘‘(I) sets forth the loan amount for which the on which the borrower’s first payment is due, scribed in section 428(b)(1)(M) or 427(a)(2)(C), student shows financial need; and the lender shall offer the borrower of a loan shall be determined under paragraph (1) by sub- ‘‘(II) sets forth a schedule for disbursement of made, insured, or guaranteed under this section stituting ‘1.7 percent’ for ‘2.3 percent’. the proceeds of the loan in installments, con- or section 428H, the option of repaying the loan ‘‘(3) PLUS LOANS.—Notwithstanding sub- sistent with the requirements of section 428G; in accordance with a graduated, income-sen- section (h), with respect to any loan under sec- and’’; and sitive, or extended repayment schedule (as de- tion 428B for which the first disbursement is (ii) by amending clause (ii) to read as follows: scribed in paragraph (9)) established by the made on or after October 1, 1998, and before ‘‘(ii) meets the requirements of subparagraph lender in accordance with regulations provided July 1, 2003, the applicable rate of interest shall (B); and’’; by the Secretary; and be determined under paragraph (1)— (B) by amending subparagraph (B) to read as ‘‘(ii) repayment of loans shall be in install- ‘‘(A) by substituting ‘3.1 percent’ for ‘2.3 per- follows: ments in accordance with the repayment plan cent’; and ‘‘(B) For the purpose of clause (ii) of subpara- selected under paragraph (9) and commencing ‘‘(B) by substituting ‘9.0 percent’ for ‘8.25 per- graph (A), a student shall qualify for a portion at the beginning of the repayment period deter- cent’. of an interest payment under paragraph (1) mined under paragraph (7)’’; ‘‘(4) CONSULTATION.—The Secretary shall de- (and a loan amount pursuant to section 428H) if (C) in subparagraph (L)(i), by inserting ‘‘ex- termine the applicable rate of interest under this the eligible institution has determined and docu- cept as otherwise provided by a repayment plan subsection after consultation with the Secretary mented the student’s amount of need for a loan selected by the borrower under clause (ii) or (iii) of the Treasury and shall publish such rate in based on the student’s estimated cost of attend- of paragraph (9)(A),’’ before ‘‘during any’’; and the Federal Register as soon as practicable after ance, estimated financial assistance, and, for (D) in subparagraph (U)(iii)(I), by inserting the date of determination.’’. the purpose of an interest payment pursuant to ‘‘that originates or holds more than $5,000,000 in (2) CONFORMING AMENDMENT.—Section this section, the expected family contribution (as loans made under this title for any fiscal year 428B(d)(4) (20 U.S.C. 1078–2(d)(4)) is amended by determined under part F), subject to the provi- (except that each lender described in section striking ‘‘section 427A(c)’’ and inserting ‘‘sec- sions of subparagraph (D).’’; 435(d)(1)(A)(ii)(III) shall annually submit the tion 427A(j)(3)’’. (C) by amending subparagraph (C) to read as results of an audit required by this clause),’’ be- (b) SPECIAL ALLOWANCES. follows: fore ‘‘at least once a year’’; (1) AMENDMENT.—Section 438(b)(2)(G) (20 ‘‘(C) For the purpose of subparagraph (B) and (2) in paragraph (7), by adding at the end the U.S.C. 1087–1(b)(2)(G)) is amended to read as this paragraph— following: follows: ‘‘(i) a student’s cost of attendance shall be de- ‘‘(D) There shall be excluded from the 6- ‘‘(G) LOANS DISBURSED BETWEEN OCTOBER 1, termined under section 472; month period that begins on the date on which 1998, AND BEFORE JULY 1, 2003.— ‘‘(ii) a student’s estimated financial assistance a student ceases to carry at least one-half the ‘‘(i) IN GENERAL.—Subject to paragraph (4) means, for the period for which the loan is normal full-time academic workload as described and clauses (ii), (iii), and (iv) of this subpara- sought, the amount of assistance such student in subparagraph (A)(i) any period not to exceed

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00067 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7982 CONGRESSIONAL RECORD — SENATE July 10, 1998 3 years during which a borrower who is a mem- (iii) in clause (iii), by striking ‘‘78 percent’’ servicing of loans guaranteed by the guaranty ber of a reserve component of the Armed Forces and inserting ‘‘75 percent’’; and agency prior to the Secretary’s assumption of named in section 10101 of title 10, United States (D) in subparagraph (F)— the functions of such agency.’’; and Code, is called or ordered to active duty for a (i) in clause (i), by striking ‘‘98 percent’’ and (E) in subparagraph (K), by striking ‘‘and the period of more than 30 days (as defined in sec- inserting ‘‘95 percent’’; and progress of the transition from the loan pro- tion 101(d)(2) of such title). Such period of ex- (ii) in clause (ii), by striking ‘‘88 percent’’ and grams under this part to the direct student loan clusion shall include the period necessary to re- inserting ‘‘85 percent’’; programs under part D of this title’’. sume enrollment at the borrower’s next available (2) in paragraph (2)— (d) PAYMENT FOR LENDER REFERRAL SERV- regular enrollment period.’’; and (A) in subparagraph (A), by striking ‘‘proof ICES.—Subsection (e) of section 428 (20 U.S.C. (3) by adding at the end the following: that reasonable attempts were made’’ and in- 1078) is repealed. ‘‘(9) REPAYMENT PLANS.— serting ‘‘proof that the institution was con- (e) PAYMENT OF CERTAIN COSTS.—Subsection ‘‘(A) DESIGN AND SELECTION.—In accordance tacted and other reasonable attempts were (f) of section 428 (20 U.S.C. 1078) is amended to with regulations promulgated by the Secretary, made’’; and read as follows: the lender shall offer a borrower of a loan made (B) in subparagraph (G), by striking ‘‘certifies ‘‘(f) PAYMENTS OF CERTAIN COSTS.— under this part the plans described in this sub- to the Secretary that diligent attempts have ‘‘(1) PAYMENT FOR CERTAIN ACTIVITIES.— paragraph for repayment of such loan, includ- been made’’ and inserting ‘‘certifies to the Sec- ‘‘(A) IN GENERAL.—The Secretary— ing principal and interest thereon. Except as retary that diligent attempts, including contact ‘‘(i) for loans originated on or after October 1, provided in paragraph (1)(L)(i), no plan may re- with the institution, have been made’’. 1998, and before October 1, 2003, and in accord- quire a borrower to repay a loan in less than 5 (3) in paragraph (3)— ance with the provisions of this paragraph, years. The borrower may choose from— (A) in subparagraph (A)(i), by inserting ‘‘or shall pay to each guaranty agency, a loan proc- ‘‘(i) a standard repayment plan, with a fixed electronic’’ after ‘‘written’’; essing and issuance fee equal to 0.65 percent of annual repayment amount paid over a fixed pe- (B) in subparagraph (B), by striking ‘‘and’’ the total principal amount of the loans on riod of time, not to exceed 10 years; after the semicolon; which insurance was issued under this part dur- ‘‘(ii) a graduated repayment plan paid over a (C) in subparagraph (C), by striking the pe- ing such fiscal year by such agency; and fixed period of time, not to exceed 10 years; riod and inserting ‘‘; and’’; and ‘‘(ii) for loans originated on or after October ‘‘(iii) an income-sensitive repayment plan, (D) by inserting before the matter following 1, 2003, and in accordance with the provisions of with income-sensitive repayment amounts paid subparagraph (C) the following: this paragraph, shall pay to each guaranty over a fixed period of time, not to exceed 10 ‘‘(D) shall contain provisions that specify that agency, a loan processing and issuance fee years, except that the borrower’s scheduled pay- forbearance for a period not to exceed 60 days equal to 0.40 percent of the total principal ments shall not be less than the amount of inter- may be granted if the lender determines that amount of the loans on which insurance was est due; and such a suspension of collection activity is war- issued under this part during such fiscal year by ‘‘(iv) for first-time borrowers on or after the ranted following a borrower’s request for for- such agency. date of enactment of the Higher Education bearance in order to collect or process appro- ‘‘(B) PAYMENT.—The payment required by Amendments of 1998 with outstanding loans priate supporting documentation related to the subparagraph (A) shall be paid on a quarterly under this part totaling more than $30,000, an request, and that during such period interest basis. The guaranty agency shall be deemed to extended repayment plan, with a fixed annual shall not be capitalized.’’; have a contractual right against the United or graduated repayment amount paid over an (4) by amending paragraph (6) to read as fol- States to receive payments according to the pro- extended period of time, not to exceed 25 years, lows: visions of this subparagraph. Payments shall be except that the borrower shall repay annually a ‘‘(6) SECRETARY’S EQUITABLE SHARE.—For the made promptly and without administrative minimum amount determined in accordance purpose of paragraph (2)(D), the Secretary’s eq- delay to any guaranty agency submitting an ac- with paragraph (2)(L). uitable share of payments made by the borrower curate and complete application therefore under ‘‘(B) LENDER SELECTION OF OPTION IF BOR- shall be that portion of the payments remaining this subparagraph.’’. ROWER DOES NOT SELECT.—If a borrower of a after the guaranty agency with which the Sec- (f) LENDERS-OF-LAST-RESORT.—Paragraph (3) loan made under this part does not select a re- retary has an agreement under this subsection of section 428(j) (20 U.S.C. 1078(j)) is amended— payment plan described in subparagraph (A), has deducted from such payments— (1) in the paragraph heading, by striking the lender shall provide the borrower with a re- ‘‘(A) a percentage amount equal to the com- ‘‘DURING TRANSITION TO DIRECT LENDING’’; and payment plan described in subparagraph (A)(i). plement of the reinsurance percentage in effect (2) in subparagraph (A), by striking ‘‘during ‘‘(C) CHANGES IN SELECTION.—The borrower of when payment under the guaranty agreement the transition from the Federal Family Edu- a loan made under this part may change the was made with respect to the loan; and cation Loan Program under this part to the borrower’s selection of a repayment plan under ‘‘(B) an amount equal to 24 percent of such Federal Direct Student Loan Program under subparagraph (B), as the case may be, under payments for use in accordance with section part D of this title’’; such conditions as may be prescribed by the Sec- 422B, except that, beginning on September 30, (g) DEFAULT AVERSION ASSISTANCE.—Sub- retary in regulation. 2003, this subparagraph shall be applied by sub- section (l) of section 428 (20 U.S.C. 1078) is ‘‘(D) ACCELERATION PERMITTED.—Under any stituting ‘23 percent’ for ‘24 percent’.’’; amended to read as follows: of the plans described in this paragraph, the (5) in paragraph (8)— ‘‘(l) DEFAULT AVERSION ASSISTANCE.— borrower shall be entitled to accelerate, without (A) by striking ‘‘(A) If’’ and inserting ‘‘If’’; ‘‘(1) ASSISTANCE REQUIRED.—Upon receipt of a penalty, repayment on the borrower’s loans and proper request from the lender not earlier than under this part.’’. (B) by striking subparagraph (B); and the 60th nor later than the 90th day of delin- (c) GUARANTY AGREEMENTS FOR REIMBURSING (6) in paragraph (9)— quency, a guaranty agency having an agree- LOSSES.—Section 428(c) (20 U.S.C. 1078(c)) is (A) in subparagraph (A), by striking ‘‘main- ment with the Secretary under subsection (c) amended— tain a current minimum reserve level of at least shall engage in default aversion activities de- (1) in paragraph (1)— .5 percent’’ and inserting ‘‘maintain in the signed to prevent the default by a borrower on (A) in the fourth sentence of subparagraph agency’s Federal Student Loan Reserve Fund a loan covered by such agreement. (A), by striking ‘‘as reimbursement under this established under section 422A a current min- ‘‘(2) DEFAULT PREVENTION FEE REQUIRED.— subsection shall be equal to 98 percent’’ and in- imum reserve level of at least 0.25 percent’’; ‘‘(A) IN GENERAL.—A guaranty agency, in ac- serting ‘‘as reimbursement for loans for which (B) in subparagraph (C)— cordance with the provisions of this paragraph, the first disbursement is made on or after the (i) by striking ‘‘80 percent’’ and inserting ‘‘78 may transfer from the Federal Student Loan Re- date of enactment of the Higher Education percent’’; serve Fund to the Agency Operating Fund a de- Amendments of 1998 shall be equal to 95 per- (ii) by striking ‘‘, as appropriate,’’; and fault prevention fee. Such fee shall be paid for cent’’; (iii) by striking ‘‘30 working’’ and inserting any loan on which a claim for default has not (B) in subparagraph (B)— ‘‘45 working’’; been presented that the guaranty agency suc- (i) in clause (i), by striking ‘‘88 percent of the (C) in subparagraph (E)— cessfully brings into current repayment status amount of such excess’’ and inserting ‘‘85 per- (i) in clause (iv), by inserting ‘‘or’’ after the on or before the 300th day after the loan be- cent of the amount of such excess for loans for semicolon; comes 60 days delinquent. which the first disbursement is made on or after (ii) in clause (v), by striking ‘‘; or’’ and insert- ‘‘(B) AMOUNT.—The default prevention fee the date of enactment of the Higher Education ing a period; and shall be equal to 1 percent of the total unpaid Amendments of 1998’’; and (iii) by striking clause (vi); principal and accrued interest on the loan cal- (ii) in clause (ii), by striking ‘‘78 percent of (D) in subparagraph (F), by amending clause culated at the time the request is submitted by the amount of such excess’’ and inserting ‘‘75 (vii) to read as follows: the lender. Such fee shall not be paid more than percent of the amount of such excess for loans ‘‘(vii) take any other action the Secretary de- once on any loan for which the guaranty agen- for which the first disbursement is made on or termines necessary to avoid disruption of the cy averts the default unless the borrower re- after the date of enactment of the Higher Edu- student loan program, to ensure the continued mained current in payments for at least 24 cation Amendments of 1998’’; availability of loans made under this part to months prior to the subsequent delinquency. A (C) in subparagraph (E)— residents of each State in which the guaranty guaranty agency may transfer such fees earned (i) in clause (i), by striking ‘‘98 percent’’ and agency did business, to ensure the full honoring under this subsection not more frequently than inserting ‘‘95 percent’’; of all guarantees issued by the guaranty agency monthly. (ii) in clause (ii), by striking ‘‘88 percent’’ and prior to the Secretary’s assumption of the func- ‘‘(C) DEFINITION OF CURRENT REPAYMENT STA- inserting ‘‘85 percent’’; and tions of such agency, and to ensure the proper TUS.—For the purpose of this paragraph, the

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00068 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7983 term ‘current repayment status’ means that the ‘‘(viii) timely and accurate collection and re- Minority Member of the Committee on Labor borrower is not delinquent, in any respect, in porting of such other data as the Secretary may and Human Resources of the Senate, and the the payment of principal and interest on the require to carry out the purposes of the pro- Committee on Education and Workforce of the loan at the time the guaranty agency qualifies grams under this title; House of Representatives 30 days prior to any for the default prevention fee.’’. ‘‘(ix) monitoring of institutions and lenders modifications to an agreement under this sec- (h) STATE SHARE OF DEFAULT COSTS.—Sub- participating in the program under this part; tion. section (n) of section 428 (20 U.S.C. 1078) is re- and ‘‘(d) TERMINATION.—At the expiration or early pealed. ‘‘(x) informational outreach to schools and termination of an agreement under this section, SEC. 427. VOLUNTARY FLEXIBLE AGREEMENTS students in support of access to higher edu- the Secretary shall reinstate the guaranty agen- WITH GUARANTY AGENCIES. cation; cy’s prior agreements under subsections (b) and Part B of title IV (20 U.S.C. 1071 et seq.) is ‘‘(B) regarding the fees the Secretary shall (c) of section 428, subject only to such addi- amended by inserting after section 428 (20 pay, in lieu of revenues that the guaranty agen- tional requirements as the Secretary determines U.S.C. 1078) the following: cy may otherwise receive under this part, to the to be necessary in order to ensure the efficient ‘‘SEC. 428A. VOLUNTARY FLEXIBLE AGREEMENTS guaranty agency under the agreement, and transfer of responsibilities between the agree- WITH GUARANTY AGENCIES. other funds that the guaranty agency may re- ment under this section and the agreements ‘‘(a) VOLUNTARY AGREEMENTS.— ceive or retain under the agreement, except that under subsections (b) and (c) of section 428, and ‘‘(1) AUTHORITY.—The Secretary may enter in no case may the cost to the Secretary of the including the guaranty agency’s compliance into a voluntary, flexible agreement, subject to agreement, as reasonably projected by the Sec- with reserve requirements under sections 422 paragraph (2), with guaranty agencies under retary, exceed the cost to the Secretary, as simi- and 428.’’. larly projected, in the absence of the agreement; this section, in lieu of agreements with a guar- SEC. 428. FEDERAL PLUS LOANS. ‘‘(C) regarding the use of net revenues, as de- anty agency under subsections (b) and (c) of Section 428B (20 U.S.C. 1078–2) is amended— scribed in the agreement under this section, for section 428. The Secretary may waive or modify (1) by amending subsection (a) to read as fol- such other activities in support of postsecondary any requirement under such subsections, except lows: education as may be agreed to by the Secretary that the Secretary may not waive any statutory ‘‘(a) AUTHORITY TO BORROW.— and the guaranty agency; requirement pertaining to the terms and condi- ‘‘(1) AUTHORITY AND ELIGIBILITY.—Parents of tions attached to student loans, default claim ‘‘(D) regarding the standards by which the guaranty agency’s performance of the agency’s a dependent student shall be eligible to borrow payments made to lenders, or the prohibitions funds under this section in amounts specified in on inducements contained in section 428(b)(3). responsibilities under the agreement will be as- sessed, and the consequences for a guaranty subsection (b), if— ‘‘(2) ELIGIBILITY.—During fiscal years 1999, ‘‘(A) the parents do not have an adverse cred- 2000, and 2001, the Secretary may enter into a agency’s failure to achieve a specified level of performance on one or more performance stand- it history as determined pursuant to regulations voluntary, flexible agreement with not more promulgated by the Secretary; and than 6 guaranty agencies that had 1 or more ards; ‘‘(E) regarding the circumstances in which a ‘‘(B) the parents meet such other eligibility agreements with the Secretary under subsections criteria as the Secretary may establish by regu- (b) and (c) of section 428 as of the day before the guaranty agency’s agreement under this section may be ended in advance of the agreement’s ex- lation, after consultation with guaranty agen- date of enactment of the Higher Education cies, eligible lenders, and other organizations in- Amendments of 1998. Beginning in fiscal year piration date; ‘‘(F) regarding such other businesses, pre- volved in student financial assistance. 2002, any guaranty agency or consortium there- viously purchased or developed with reserve ‘‘(2) TERMS, CONDITIONS, AND BENEFITS.—Ex- of may enter into a similar agreement with the funds, that relate to the program under this cept as provided in subsections (c), (d), and (e), Secretary. part and in which the Secretary permits the loans made under this section shall have the ‘‘(3) REPORT REQUIRED.—Not later than Sep- guaranty agency to engage; and same terms, conditions, and benefits as all other tember 30, 2001, the Secretary shall report to the ‘‘(G) such other provisions as the Secretary loans made under this part. Committee on Labor and Human Resources of may determine to be necessary to protect the ‘‘(3) SPECIAL RULE.—Whenever necessary to the Senate and the Committee on Education and United States from the risk of unreasonable loss carry out the provisions of this section, the the Workforce of the House of Representatives and to promote the purposes of this part; terms ‘‘student’’ and ‘‘borrower’’ as used in this regarding the impact that the voluntary flexible ‘‘(4) shall provide for uniform lender partici- part shall include a parent borrower under this agreements have had upon program integrity, pation with the guaranty agency under the section.’’; and program and cost efficiencies, and the avail- terms of the agreement; and (2) by adding at the end the following: ability and delivery of student financial aid. ‘‘(5) shall not prohibit or restrict borrowers ‘‘(f) VERIFICATION OF IMMIGRATION STATUS Such report shall include— from selecting a lender of the borrower’s choos- AND SOCIAL SECURITY NUMBER.—A parent who ‘‘(A) a description of each voluntary flexible ing, subject to the prohibitions and restrictions wishes to borrow funds under this section shall agreement and the performance goals estab- applicable to the selection under this Act. be subject to verification of the parent’s— lished by the Secretary for each agreement; ‘‘(c) PUBLIC NOTICE.— ‘‘(1) immigration status in the same manner as ‘‘(B) a list of participating guaranty agencies ‘‘(1) IN GENERAL.—The Secretary shall publish immigration status is verified for students under and the specific statutory or regulatory waivers in the Federal Register a notice to all guaranty section 484(g); and provided to each guaranty agency; agencies that sets forth— ‘‘(2) social security number in the same man- ‘‘(C) a description of the standards by which ‘‘(A) an invitation for the guaranty agencies ner as social security numbers are verified for each agency’s performance under the agency’s to enter into agreements under this section; and students under section 484(p).’’. voluntary flexible agreement was assessed and ‘‘(B) the criteria that the Secretary will use SEC. 429. FEDERAL CONSOLIDATION LOANS. the degree to which each agency achieved the for selecting the guaranty agencies with which (a) IN GENERAL.—Section 428C(a)(3) (20 U.S.C. performance standards; and the Secretary will enter into agreements under 1078–3(a)(3)) is amended— ‘‘(D) an analysis of the fees paid by the Sec- this section. (1) by amending subparagraph (A) to read as retary, and the costs and efficiencies achieved ‘‘(2) AGREEMENT NOTICE.—The Secretary shall under each voluntary agreement. notify the Chairperson and the Ranking Minor- follows: ‘‘(A) For the purpose of this section, the term ‘eligible borrower’ means a borrower who— ‘‘(b) TERMS OF AGREEMENT.—An agreement ity Members of the Committee on Labor and between the Secretary and a guaranty agency Human Resources of the Senate, and the Com- ‘‘(i) is not subject to a judgment secured under this section— mittee on Education and Workforce of the through litigation or an order for wage garnish- ‘‘(1) shall be developed by the Secretary, in House of Representatives, and shall publish a ment under section 488A; or ‘‘(ii) at the time of application for a consolida- consultation with the guaranty agency, on a notice in the Federal Register, with a request for tion loan— case-by case basis; public comment, at least 30 days prior to con- ‘‘(I) is in repayment status; ‘‘(2) may be secured by the parties; cluding an agreement under this section. The ‘‘(II) is in a grace period preceding repay- ‘‘(3) may only include provisions— notice shall contain— ‘‘(A) specifying the responsibilities of the ‘‘(A) a description of the voluntary flexible ment; or guaranty agency under the agreement, with re- agreement and the performance goals estab- ‘‘(III) is a defaulted borrower who has made spect to— lished by the Secretary for the agreement; arrangements to repay the obligation on the de- ‘‘(i) administering the issuance of insurance ‘‘(B) a list of participating guaranty agencies faulted loans satisfactory to the holders of the on loans made under this part on behalf of the and the specific statutory or regulatory waivers defaulted loans.’’; and Secretary; provided to each guaranty agency; (2) in subparagraph (B)(i)— ‘‘(ii) monitoring insurance commitments made ‘‘(C) a description of the standards by which (A) in subclause (I), by striking ‘‘and’’ after under this part; each guaranty agency’s performance under the the semicolon; ‘‘(iii) default aversion activities; agreement will be assessed; and (B) by redesignating subclause (II) as sub- ‘‘(iv) review of default claims made by lenders; ‘‘(D) a description of the fees that will be paid clause (III); ‘‘(v) payment of default claims; to each participating guaranty agency. (C) by inserting after subclause (I) the fol- ‘‘(vi) collection of defaulted loans; ‘‘(3) PUBLIC AVAILABILITY.—The text of any lowing: ‘‘(vii) adoption of internal systems of account- voluntary flexible agreement, and any subse- ‘‘(II) with respect to eligible student loans re- ing and auditing that are acceptable to the Sec- quent revisions, shall be readily available to the ceived prior to the date of consolidation that the retary, and reporting the result thereof to the public. borrower may wish to include with eligible loans Secretary in a timely manner, and on an accu- ‘‘(4) MODIFICATION NOTICE.—The Secretary specified in subclause (I) in a later consolida- rate, and auditable basis; shall notify the Chairperson and the Ranking tion loan; and’’; and

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00069 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7984 CONGRESSIONAL RECORD — SENATE July 10, 1998 (D) in subclause (III) (as redesignated by sub- ‘‘(i) $4,000 for coursework necessary for enroll- ‘‘(B) if employed as a secondary school teach- paragraph (B)— ment in an undergraduate degree or certificate er, is teaching a subject area that is relevant to (i) by striking ‘‘that loans’’ and inserting program, and $5,000 for coursework necessary the borrower’s academic major as certified by ‘‘with respect to loans’’; and for enrollment in a graduate or professional pro- the chief administrative officer of the public or (ii) by inserting ‘‘that’’ before ‘‘may be gram; and nonprofit private secondary school in which the added’’. ‘‘(ii) $5,000 for coursework necessary for a borrower is employed; and (b) DATE CHANGE.—Section 428C(e) (20 U.S.C. professional credential or certification from a ‘‘(C) if employed as an elementary school 1078–3(e)) is amended by striking ‘‘September 30, State required for employment as a teacher in teacher, has demonstrated, in accordance with 2002’’ and inserting ‘‘September 30, 2004’’. an elementary or secondary school;’’; and State teacher certification or licensing require- SEC. 430. REQUIREMENTS FOR DISBURSEMENTS (B) in paragraph (3), by adding at the end the ments and as certified by the chief administra- OF STUDENT LOANS. following: ‘‘The maximum aggregate amount tive officer of the public or nonprofit private ele- (a) IN GENERAL.—Section 428G (20 U.S.C. shall not include interest capitalized from an in- mentary school in which the borrower is em- 1078G) is amended— school period.’’; ployed, knowledge and teaching skills in read- (1) in subsection (a)(1), by striking ‘‘The pro- (3) in subsection (e)— ing, writing, mathematics and other areas of the ceeds’’ and inserting ‘‘Except for a loan made (A) by amending paragraph (2) to read as fol- elementary school curriculum; and for the final period of enrollment, that is less lows: ‘‘(2) is not in default on a loan for which the than an academic year, in a student’s bacca- ‘‘(2) CAPITALIZATION OF INTEREST.—Interest borrower seeks forgiveness. laureate program of study, at an institution on loans made under this section for which pay- ‘‘(c) QUALIFYING LOANS.—For purposes of this with a cohort default rate (as calculated under ments of principal are not required during the section, a loan is a qualifying loan if— section 435(m)) that is 5 percent or less, the pro- in-school and grace periods or for which pay- ‘‘(1) the loan was obtained to cover the cost of ceeds’’; ments are deferred under sections 427(a)(2)(C) instruction for an academic year after the first (2) in subsection (b)(1), by striking ‘‘The first’’ and 428(b)(1)(M) shall, if agreed upon by the and second years of undergraduate education; and inserting ‘‘Except for a loan made to a stu- borrower and the lender— and dent borrower entering an institution with a co- ‘‘(A) be paid monthly or quarterly; or ‘‘(2) the loan did not cover the costs of in- hort default rate (as calculated under section ‘‘(B) be added to the principal amount of the struction for more than 2 academic years, or 3 435(m)) of less than 5 percent, the first’’; and loan by the lender only— academic years in the case of a program of in- (3) in subsection (e)— ‘‘(i) when the loan enters repayment; struction normally requiring 5 years to complete. (A) by striking ‘‘or made’’ and inserting ‘‘, ‘‘(ii) at the expiration of a grace period, in the ‘‘(d) REGULATIONS.—The Secretary is author- made’’; and case of a loan that qualifies for a grace period; ized to issue such regulations as may be nec- (B) by inserting ‘‘, or made to a student to ‘‘(iii) at the expiration of a period of essary to carry out the provisions of this section. cover the cost of attendance in a program of deferment; or ‘‘(e) LOAN REPAYMENT DURING CONTINUING study abroad approved by the home eligible in- ‘‘(iv) when the borrower defaults.’’; and TEACHING SERVICE.— stitution if the home eligible institution has a (B) in paragraph (6), by striking ‘‘10 year re- ‘‘(1) IN GENERAL.—The Secretary shall assume cohort default rate (as calculated under section payment period under section 428(b)(1)(D)’’ and the obligation to repay through reimbursement 435(m)) of less than 5 percent’’ before the period. inserting ‘‘repayment period under section to the holder— (b) EFFECTIVE DATE.—The amendment made 428(b)(9)’’. ‘‘(A) 30 percent of the total outstanding by subsection (a)(2) shall be effective during the (b) SENSE OF THE SENATE ON LOAN LIMIT amount and applicable interest of subsidized period beginning on October 1, 1998, and ending FLEXIBILITY.— Federal Stafford loans that are qualifying loans on September 30, 2002. (1) FINDINGS.—The Senate finds that— and are owed by the student borrower after the SEC. 431. DEFAULT REDUCTION PROGRAM. (A) due to the annual borrowing ceilings on completion of the fourth or fifth complete school The heading for subsection (b) of section 428F the Federal student loan programs, increasing year of service described in subsection (b); (20 U.S.C. 1078–6) is amended by striking ‘‘SPE- numbers of needy students are borrowing from ‘‘(B) 40 percent of such total amount after the CIAL RULE’’ and inserting ‘‘SATISFACTORY RE- more expensive private sector loan programs completion of the sixth complete school year of PAYMENT ARRANGEMENTS TO RENEW ELIGI- than from the Federal loan programs; such service; and BILITY’’. (B) according to the College Board, in aca- ‘‘(C) a total amount for any borrower that SEC. 432. UNSUBSIDIZED LOANS. demic year 1996–1997, students borrowed ap- shall not exceed $8,000. (a) IN GENERAL.—Section 428H (20 U.S.C. proximately $1,200,000,000 from private sector ‘‘(2) CONSTRUCTION.—Nothing in this section 1078–8) is amended— loan programs; shall be construed to authorize any refunding of (1) by amending subsection (b) to read as fol- (C) the alternative private sector loan pro- any repayment of a loan. lows: grams are not only more expensive, but the in- ‘‘(f) LIST.—If the list of schools in which a ‘‘(b) ELIGIBLE BORROWERS.—Any student terest rates are not capped, leaving students teacher may perform service pursuant to sub- meeting the requirements for student eligibility vulnerable to higher monthly payments when section (b) is not available before May 1 of any under section 484 (including graduate and pro- interest rates increase; and year, the Secretary may use the list for the year fessional students as defined in regulations pro- (D) with more flexible Federal annual loan preceding the year for which the determination mulgated by the Secretary) shall be entitled to ceilings, students could be kept in Federal stu- is made to make such service determination. borrow an unsubsidized Stafford loan if the eli- dent loan programs, thereby making available to ‘‘(g) CONTINUED ELIGIBILITY.—Any teacher gible institution at which the student has been the students the debt management advantages who performs service in a school that— accepted for enrollment, or at which the student of loan consolidation and alternative repayment ‘‘(1) meets the requirements of subsection is in attendance, has— options that are available under Federal student (b)(1)(A) in any year during such service; and ‘‘(1) determined and documented the student’s loan programs, and lowering the costs of month- ‘‘(2) in a subsequent year fails to meet the re- need for the loan based on the student’s esti- ly payments. quirements of such subsection, may continue to mated cost of attendance (as determined under (2) SENSE OF THE SENATE.—It is the sense of teach in such school and shall be eligible for section 472) and the student’s estimated finan- the Senate that Congress should consider the loan forgiveness pursuant to subsection (b).’’. cial assistance, including a loan which qualifies growing problem described in paragraph (1) by SEC. 434. LOAN FORGIVENESS FOR CHILD CARE for interest subsidy payments under section 428; continuing to examine the potential for adding PROVIDERS. and borrowing flexibility to the annual, but not the Part B (20 U.S.C. 1071 et seq.) is amended by ‘‘(2) provided the lender a statement— aggregate, amounts that both undergraduate inserting after section 428J (as added by section ‘‘(A) certifying the eligibility of the student to and graduate students are allowed to borrow 433) (20 U.S.C. 1078–10) the following: receive a loan under this section and the under section 428H of the Higher Education Act amount of the loan for which such student is el- of 1965. ‘‘SEC. 428K. LOAN FORGIVENESS FOR CHILD CARE PROVIDERS. igible, in accordance with subsection (c); and SEC. 433. LOAN FORGIVENESS FOR TEACHERS. ‘‘(B) setting forth a schedule for disbursement ‘‘(a) PURPOSE.—It is the purpose of this sec- Section 428J (20 U.S.C. 1078–10) is amended to tion— of the proceeds of the loan in installments, con- read as follows: sistent with the requirements of section 428G.’’; ‘‘(1) to bring more highly trained individuals (2) in subsection (d)— ‘‘SEC. 428J. LOAN FORGIVENESS FOR TEACHERS. into the early child care profession; and (A) in paragraph (2)— ‘‘(a) STATEMENT OF PURPOSE.—It is the pur- ‘‘(2) to keep more highly trained child care (i) in the matter preceding subparagraph pose of this section to encourage individuals to providers in the early child care field for longer (A)— enter and continue in the teaching profession. periods of time. (I) by inserting ‘‘, as defined in section ‘‘(b) PROGRAM AUTHORIZED.—The Secretary is ‘‘(b) DEFINITIONS.—In this section: 481(d)(2),’’ after ‘‘academic year’’; and authorized to carry out a program, through the ‘‘(1) CHILD CARE FACILITY.—The term ‘child (II) by striking ‘‘or in any period of 7 consecu- holder of the loan, of assuming the obligation to care facility’ means a facility, including a home, tive months, whichever is longer,’’; repay a qualifying loan made under section 428 that— (ii) in subparagraph (C), by inserting ‘‘and’’ that is eligible for interest subsidy, for any new ‘‘(A) provides child care services; and after the semicolon; and borrower on or after October 1, 1998, who— ‘‘(B) meets applicable State or local govern- (iii) by inserting before the matter following ‘‘(1) has been employed as a full-time teacher ment licensing, certification, approval, or reg- subparagraph (C) the following: for 3 consecutive complete school years— istration requirements, if any. ‘‘(D) in the case of a student enrolled in ‘‘(A) in a school that qualifies under section ‘‘(2) CHILD CARE SERVICES.—The term ‘child coursework specified in sections 484(b)(3)(B) and 465(a)(2)(A) for loan cancellation for Perkins care services’ means activities and services pro- 484(b)(4)(B)— loan recipients who teach in such schools; vided for the education and care of children

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00070 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7985 from birth through age 5 by an individual who be repaid in accordance with the provisions of (C) by redesignating subparagraph (D) as sub- has a degree in early childhood education. paragraph (1). paragraph (C); and ‘‘(3) DEGREE.—The term ‘degree’ means an as- ‘‘(5) INELIGIBILITY OF NATIONAL SERVICE (D) in subparagraph (C) (as redesignated by sociate’s or bachelor’s degree awarded by an in- AWARD RECIPIENTS.—No student borrower may, subparagraph (C))— stitution of higher education. for the same volunteer service, receive a benefit (i) by inserting ‘‘, application and other’’ ‘‘(4) EARLY CHILDHOOD EDUCATION.—The term under both this section and subtitle D of title I after ‘‘electronic’’; and ‘early childhood education’ means education in of the National and Community Service Act of (ii) by adding at the end the following: the areas of early child education, child care, or 1990 (42 U.S.C. 12601 et seq.). ‘‘Guaranty agencies, borrowers, and lenders any other educational area related to child care ‘‘(e) REPAYMENT TO ELIGIBLE LENDERS.—The may use electronically printed versions of com- that the Secretary determines appropriate. Secretary shall pay to each eligible lender or mon forms approved for use by the Secretary.’’; ‘‘(5) INSTITUTION OF HIGHER EDUCATION.—The holder for each fiscal year an amount equal to and term ‘institution of higher education’ has the the aggregate amount of loans which are subject (2) in subsection (p), by striking ‘‘State post- meaning given the term in section 101. to repayment pursuant to this section for such secondary reviewing entities designated under ‘‘(c) DEMONSTRATION PROGRAM.— year. subpart 1 of part H,’’. ‘‘(1) IN GENERAL.—The Secretary may carry ‘‘(f) APPLICATION FOR REPAYMENT.— SEC. 437. STUDENT LOAN INFORMATION BY ELI- out a demonstration program of assuming the ‘‘(1) IN GENERAL.—Each eligible individual de- GIBLE LENDERS. obligation to repay, pursuant to subsection (d), siring loan repayment under this section shall Section 433 (20 U.S.C. 1083) is amended— a loan made, insured or guaranteed under this submit a complete and accurate application to (1) in subsection (a), by amending the matter part or part D (excluding loans made under sec- the Secretary at such time, in such manner, and preceding paragraph (1) to read as follows: tions 428B and 428C) for any new borrower after containing such information as the Secretary ‘‘(a) REQUIRED DISCLOSURE BEFORE DIS- the date of enactment of the Higher Education may require. BURSEMENT.—Each eligible lender shall, at or Amendments of 1998, who— ‘‘(2) CONDITIONS.—An eligible individual may prior to the time such lender disburses a loan ‘‘(A) completes a degree in early childhood apply for loan repayment under this section that is insured or guaranteed under this part education; after completing each year of qualifying employ- (other than a loan made under section 428C), ‘‘(B) obtains employment in a child care facil- ment. The borrower shall receive forbearance provide thorough and accurate loan information ity; and while engaged in qualifying employment unless on such loan to the borrower. Any disclosure re- ‘‘(C) has worked full time for the 2 consecu- the borrower is in deferment while so engaged. quired by this subsection may be made by an eli- tive years preceding the year for which the de- ‘‘(g) EVALUATION.— gible lender by written or electronic means, in- termination is made as a child care provider in ‘‘(1) IN GENERAL.—The Secretary shall con- cluding as part of the application material pro- a low-income community. duct, by grant or contract, an independent na- vided to the borrower, as part of the promissory ‘‘(2) LOW-INCOME COMMUNITY.—For the pur- tional evaluation of the impact of the dem- note evidencing the loan, or on a separate writ- poses of this subsection, the term ‘low-income onstration program assisted under this section ten form provided to the borrower. Each lender community’ means a community in which 70 on the field of early childhood education. shall provide a telephone number, and may pro- percent of households within the community ‘‘(2) COMPETITIVE BASIS.—The grant or con- vide an electronic address, to each borrower earn less than 85 percent of the State median tract described in subsection (b) shall be award- through which additional loan information can household income. ed on a competitive basis. be obtained. The disclosure shall include—’’; ‘‘(3) AWARD BASIS; PRIORITY.— ‘‘(3) CONTENTS.—The evaluation described in and ‘‘(A) AWARD BASIS.—Subject to subparagraph this subsection shall— (2) in subsection (b), by amending the matter (B), loan repayment under this section shall be ‘‘(A) determine the number of individuals who preceding paragraph (1) to read as follows: on a first-come, first-served basis and subject to were encouraged by the demonstration program ‘‘(b) REQUIRED DISCLOSURE BEFORE REPAY- the availability of appropriations. assisted under this section to pursue early child- MENT.—Each eligible lender shall, at or prior to ‘‘(B) PRIORITY.—The Secretary shall give pri- hood education; the start of the repayment period of the student ority in providing loan repayment under this ‘‘(B) determine the number of individuals who borrower on loans made, insured, or guaranteed section for a fiscal year to student borrowers remain employed in a child care facility as a re- under this part, disclose to the borrower by writ- who received loan repayment under this section sult of participation in the program; ten or electronic means the information required for the preceding fiscal year. ‘‘(C) identify the barriers to the effectiveness under this subsection. Each eligible lender shall ‘‘(4) REGULATIONS.—The Secretary is author- of the program; provide a telephone number, and may provide ized to prescribe such regulations as may be nec- ‘‘(D) assess the cost-effectiveness of the pro- an electronic address, to each borrower through essary to carry out the provisions of this section. gram in improving the quality of— which additional loan information can be ob- ‘‘(d) LOAN REPAYMENT.— ‘‘(i) early childhood education; and tained. For any loan made, insured, or guaran- ‘‘(1) IN GENERAL.—The Secretary shall assume ‘‘(ii) child care services; the obligation to repay— teed under this part, other than a loan made ‘‘(E) identify the reasons why participants in ‘‘(A) after the second consecutive year of em- under section 428B or 428C, such disclosure re- the program have chosen to take part in the ployment described in subparagraphs (B) and quired by this subsection shall be made not less program; (C) of subsection (c)(1), 20 percent of the total than 30 days nor more than 240 days before the ‘‘(F) identify the number of individuals par- amount of all loans made after date of enact- first payment on the loan is due from the bor- ticipating in the program who received an asso- ment of the Higher Education Amendments of rower. The disclosure shall include—’’. ciate’s degree and the number of such individ- 1998, to a student under this part or part D; SEC. 438. DEFINITIONS. uals who received a bachelor’s degree; and ‘‘(B) after the third consecutive year of such (a) ELIGIBLE INSTITUTION.—Section 435(a) (20 ‘‘(G) identify the number of years each indi- employment, 20 percent of the total amount of U.S.C. 1085(a)) is amended— vidual participates in the program. all such loans; and (1) in paragraph (2)— ‘‘(4) INTERIM AND FINAL EVALUATION RE- ‘‘(C) after each of the fourth and fifth con- (A) by adding after the matter following sub- PORTS.—The Secretary shall prepare and submit secutive years of such employment, 30 percent of paragraph (A)(ii) the following: to the President and the Congress such interim the total amount of all such loans. ‘‘If an institution continues to participate in a reports regarding the evaluation described in ‘‘(2) CONSTRUCTION.—Nothing in this section program under this part, and the institution’s shall be construed to authorize the refunding of this subsection as the Secretary deems appro- appeal of the loss of eligibility is unsuccessful, any repayment of a loan made under this part priate, and shall prepare and so submit a final the institution shall be required to pay to the or part D. report regarding the evaluation by January 1, Secretary an amount equal to the amount of in- 2002. ‘‘(3) INTEREST.—If a portion of a loan is re- terest, special allowance, reinsurance, and any paid by the Secretary under this section for any ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— related payments made by the Secretary (or year, the proportionate amount of interest on There are authorized to be appropriated to carry which the Secretary is obligated to make) with such loan which accrues for such year shall be out this section $10,000,000 for fiscal year 1999, respect to loans made under this part to stu- repaid by the Secretary. and such sums as may be necessary for each of dents attending, or planning to attend, that in- ‘‘(4) SPECIAL RULE.—In the case where a stu- the 4 succeeding fiscal years.’’. stitution during the pendency of such appeal. dent borrower who is not participating in loan SEC. 435. NOTICE TO SECRETARY AND PAYMENT In order to continue to participate during an repayment pursuant to this section returns to OF LOSS. appeal under this paragraph, the institution an institution of higher education after gradua- The third sentence of section 430(a) (20 U.S.C. shall provide a letter of credit in favor of the tion from an institution of higher education for 1080(a)) is amended by inserting ‘‘the institution Secretary or other third-party financial guaran- the purpose of obtaining a degree in early child- was contacted and other’’ after ‘‘submit proof tees satisfactory to the Secretary in an amount hood education, the Secretary is authorized to that’’. determined by the Secretary to be sufficient to assume the obligation to repay the total amount SEC. 436. COMMON FORMS AND FORMATS. satisfy the institution’s potential liability on of loans made under this part or part D incurred Section 432 (20 U.S.C. 1082) is amended— such loans under the preceding sentence.’’; and for a maximum of two academic years in return- (1) in subsection (m)(1)— (B) by amending subparagraph (C) to read as ing to an institution of higher education for the (A) in subparagraph (A), by striking ‘‘a com- follows: purpose of obtaining a degree in early childhood mon application form and promissory note’’ and ‘‘(C)(i) This paragraph shall not apply to any education. Such loans shall only be repaid for inserting ‘‘common application forms and prom- institution described in clause (ii), and any such borrowers who qualify for loan repayment pur- issory notes, or master promissory notes,’’; institution that exceeds the threshold percent- suant to the provisions of this section, and shall (B) by striking subparagraph (C); age in subparagraph (A)(ii) for 2 consecutive

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00071 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7986 CONGRESSIONAL RECORD — SENATE July 10, 1998 years shall submit to the Secretary a default loans for which the first day of delinquency oc- statutory and regulatory requirements imposed management plan satisfactory to the Secretary curs on or after the date of enactment of this on any other holder of a loan made under this and containing criteria designed, in accordance Act. part.’’. with the regulations of the Secretary, to dem- (e) COHORT DEFAULT RATE.—Section SEC. 440A. SPECIAL ALLOWANCES. onstrate continuous improvement by the institu- 435(m)(1)(B) (20 U.S.C. 1085(m)(1)(B)) is amend- (a) AMENDMENTS.—Section 438 (20 U.S.C. tion in the institution’s cohort default rate. If ed by striking ‘‘insurance, and, in considering 1087–1) is amended— the institution fails to submit the required plan, appeals with respect to cohort default rates pur- (1) in subsection (c), by amending paragraph or to satisfy the criteria in the plan, the institu- suant to subsection (a)(3), exclude’’ and insert- (1) to read as follows: tion shall be subject to a loss of eligibility in ac- ing ‘‘insurance. In considering appeals with re- ‘‘(1) DEDUCTION FROM INTEREST AND SPECIAL cordance with this paragraph, except as the spect to cohort default rates pursuant to sub- ALLOWANCE SUBSIDIES.—(A) Notwithstanding Secretary may otherwise specify in regulations. section (a)(3), the Secretary shall exclude, from subsection (b), the Secretary shall collect the ‘‘(ii) An institution referred to in clause (i) the calculation of the number of students who amount the lender is authorized to charge as an is— entered repayment and from the calculation of origination fee in accordance with paragraph ‘‘(I) a part B institution within the meaning the number of students who default,’’. (2) of this subsection— of section 322(2); (f) PUBLICATION DATE.—Section 435(m)(4) (20 ‘‘(i) by reducing the total amount of interest ‘‘(II) a Tribally Controlled College or Univer- U.S.C. 1085(m)(4)) is amended by adding at the and special allowance payable under section sity within the meaning of section 2(a)(4) of the end the following: 428(a)(3)(A) and subsection (b) of this section, Tribally Controlled College or University Assist- ‘‘(D) The Secretary shall publish the report respectively, to any holder; or ance Act of 1978; or described in subparagraph (C) by September 30 ‘‘(ii) directly from the holder of the loan, if ‘‘(III) a Navajo Community College under the of each year.’’. the lender fails or is not required to bill the Sec- Navajo Community College Act.’’; SEC. 439. STUDY OF THE EFFECTIVENESS OF CO- retary for interest and special allowance or (2) in the matter following subparagraph (C)— HORT DEFAULT RATES FOR INSTITU- withdraws from the program with unpaid loan (A) by inserting ‘‘for a reasonable period of TIONS WITH FEW STUDENT LOAN origination fees. time, not to exceed 30 days,’’ after ‘‘access’’; and BORROWERS. ‘‘(B) If the Secretary collects the origination (B) by striking ‘‘of the affected guaranty Part A of title IV (20 U.S.C. 1071 et seq.) is fee under this subsection through the reduction agencies and loan servicers for a reasonable pe- amended by adding after section 435 the fol- of interest and special allowance, and the total riod of time, not to exceed 30 days’’ and insert- lowing: amount of interest and special allowance pay- ing ‘‘used by a guaranty agency in determining ‘‘SEC. 435A. STUDY OF THE EFFECTIVENESS OF able under section 428(a)(3)(A) and subsection whether to pay a claim on a defaulted loan’’; COHORT DEFAULT RATES FOR INSTI- (b) of this section, respectively, is less than the and TUTIONS WITH FEW STUDENT LOAN amount the lender was authorized to charge (3) by adding at the end the following: BORROWERS. borrowers for origination fees in that quarter, ‘‘(4) PARTICIPATION RATE INDEX.— ‘‘(a) STUDY REQUIRED.—The Secretary shall the Secretary shall deduct the excess amount ‘‘(A) IN GENERAL.—An institution that dem- conduct a study of the effectiveness of cohort from the subsequent quarters’ payments until onstrates to the Secretary that the institution’s default rates as an indicator of administrative the total amount has been deducted.’’; participation rate index is equal to or less than capability and program quality for institutions (2) in subsection (d), by amending paragraph 0.0375 for any of the 3 applicable participation of higher education at which less than 15 per- (1) to read as follows: rate indices shall not be subject to paragraph cent of students eligible to borrow participate in ‘‘(1) DEDUCTION FROM INTEREST AND SPECIAL (2). The participation rate index shall be deter- the Federal student loan programs under this ALLOWANCE SUBSIDIES.— mined by multiplying the institution’s cohort de- title and fewer than 30 borrowers enter repay- ‘‘(A) IN GENERAL.—Notwithstanding sub- fault rate for loans under part B or D, or ment in any fiscal year. At a minimum, the section (b), the Secretary shall collect a loan fee weighted average cohort default rate for loans study shall include— in an amount determined in accordance with under parts B and D, by the percentage of the ‘‘(1) identification of the institutions included paragraph (2)— institution’s regular students, enrolled on at in the study and of the student populations the ‘‘(i) by reducing the total amount of interest least a half-time basis, who received a loan institutions serve; and special allowance payable under section made under part B or D for a 12-month period ‘‘(2) analysis of cohort default rates as indica- 428(a)(3)(A) and subsection (b), respectively, to ending during the 6 months immediately pre- tors of administrative shortcomings and program any holder of a loan; or ceding the fiscal year for which the cohort of quality at the institutions; ‘‘(ii) directly from the holder of the loan, if borrowers used to calculate the institution’s co- ‘‘(3) analysis of the effectiveness of cohort de- the lender— hort default rate is determined. fault rates as a means to prevent fraud and ‘‘(I) fails or is not required to bill the Sec- ‘‘(B) DATA.—An institution shall provide the abuse in the programs assisted under this title; retary for interest and special allowance pay- Secretary with sufficient data to determine the ‘‘(4) analysis of the extent to which the insti- ments; or institution’s participation rate index within 30 tutions with high cohort default rates are no ‘‘(II) withdraws from the program with un- days after receiving an initial notification of the longer participants in the Federal student loan paid loan fees. institution’s draft cohort default rate. programs under this title; and ‘‘(B) SPECIAL RULE.—If the Secretary collects ‘‘(C) NOTIFICATION.—Prior to publication of a ‘‘(5) analysis of the costs incurred by the De- loan fees under this subsection through the re- final cohort default rate for an institution that partment for the calculation, publication, cor- duction of interest and special allowance pay- provides the data described in subparagraph rection, and appeal of cohort default rates for ments, and the total amount of interest and spe- (B), the Secretary shall notify the institution of the institutions in relation to any benefits to cial allowance payable under section the institution’s compliance or noncompliance taxpayers. 428(a)(3)(A) and subsection (b), respectively, is with subparagraph (A).’’. ‘‘(b) CONSULTATION.—In conducting the study less than the amount of such loan fees, then the (b) EFFECTIVE DATE.—The amendment made described in subsection (a), the Secretary shall Secretary shall deduct the amount of the loan by subsection (a)(1)(B) shall be effective during consult with institutions of higher education. fee balance from the amount of interest and spe- the period beginning on the date of enactment ‘‘(c) REPORT TO CONGRESS.—The Secretary cial allowance payments that would otherwise of this Act and ending on September 30, 2002. shall report to the Committee on Labor and be payable, in subsequent quarterly increments (c) ELIGIBLE LENDER.—Section 435(d)(1)(A)(ii) Human Resources of the Senate and the Com- until the balance has been deducted.’’; and (20 U.S.C. 1085(d)(1)(A)(ii) is amended— mittee on Education and the Workforce of the (3) in subsection (e)— (1) by striking ‘‘or’’ after ‘‘1992,’’; and House of Representatives not later than Sep- (A) by striking paragraphs (1) and (2); and (2) by inserting before the semicolon the fol- tember 30, 1999, regarding the results of the (B) by redesignating paragraphs (3) and (4) as lowing: ‘‘, or (III) it is a bank (as defined in sec- study described in subsection (a).’’. paragraphs (1) and (2), respectively. tion 3(a)(1) of the Federal Deposit Insurance (b) CONFORMING AMENDMENT.—Section SEC. 440. DELEGATION OF FUNCTIONS. Act (12 U.S.C. 1813(a)(1)) that is a wholly owned 432(f)(1)(D) is amended by striking ‘‘required to subsidiary of a nonprofit foundation, the foun- Section 436 (20 U.S.C. 1086) is amended to read file a plan for doing business under section dation is described in section 501(c)(3) of the In- as follows: 438(d)’’ and inserting ‘‘that meets the require- ternal Revenue Code of 1986 and exempt from ‘‘SEC. 436. DELEGATION OF FUNCTIONS. ments of section 438(e)’’. taxation under section 501(1) of such Code, and ‘‘(a) IN GENERAL.—An eligible lender or guar- SEC. 440B. STUDY OF MARKET-BASED MECHA- the bank makes loans under this part only to anty agency that contracts with another entity NISMS FOR DETERMINING STUDENT undergraduate students who are age 22 or to perform any of the lender’s or agency’s func- LOAN INTEREST RATES. younger and has a portfolio of such loans that tions under this title, or otherwise delegates the (a) STUDY REQUIRED.— is not more than $5,000,000’’. performance of such functions to such other en- (1) IN GENERAL.—The Secretary of the Treas- (d) DEFINITION OF DEFAULT.— tity— ury shall conduct a study of the feasibility of (1) AMENDMENT.—Section 435(l) (20 U.S.C. ‘‘(1) shall not be relieved of the lender’s or employing market-based mechanisms, including 1085l) is amended— agency’s duty to comply with the requirements some form of auction, for determining student (A) by striking ‘‘180 days’’ and inserting ‘‘270 of this title; and loan interest rates under title IV of the Higher days’’; and ‘‘(2) shall monitor the activities of such other Education Act of 1965 (20 U.S.C. 1070 et seq.). (B) by striking ‘‘240 days’’ and inserting ‘‘330 entity for compliance with such requirements. The study shall include— days’’. ‘‘(b) SPECIAL RULE.—A lender that holds a (A) analysis of the potential impact of the (2) EFFECTIVE DATE.—The amendment made loan made under part B in the lender’s capacity mechanisms on the delivery of student financial by paragraph (1) shall apply with respect to as a trustee is responsible for complying with all aid;

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00072 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7987 (B) analysis of the implications of the mecha- ‘‘(F) carry out a comprehensive, longitudinal ized to prescribe by regulation such reductions nisms with respect to student and institutional study of student academic progress and aca- in the interest rate paid by a borrower of a loan access to student loan capital; demic and career outcomes, relative to student made under this part as the Secretary deter- (C) analysis of the potential impact of the self-sufficiency in financing their higher edu- mines appropriate to encourage on-time repay- mechanisms on the costs of the programs under cation, repayment of student loans, continued ment of the loan. Such reductions may be of- such title for students and the Federal Govern- community service, kind and quality of service fered only if the Secretary determines the reduc- ment; and performed, and career choice and community tions are cost neutral and in the best financial (D) a plan for structuring and implementing service selected after graduation.’’; and interest of the Federal Government. Any in- the mechanisms in such a manner that ensures (2) in subsection (f), by striking ‘‘$5,000,000 for crease in subsidy costs resulting from such re- the cost-effective availability of student loans fiscal year 1993’’ and inserting ‘‘$7,000,000 for ductions shall be completely offset by cor- for students and their families. fiscal year 1999’’. responding savings in funds available for the (b) CONSULTATION.—In conducting the study PART D—WILLIAM D. FORD FEDERAL William D. Ford Federal Direct Loan Program described in paragraph (1), the Secretary shall DIRECT LOAN PROGRAM in that fiscal year from section 458 and other consult with lenders, secondary markets, guar- SEC. 451. SELECTION OF INSTITUTIONS. administrative accounts. anty agencies, institutions of higher education, Section 453(c) (20 U.S.C. 1087c(c)) is amend- ‘‘(B) ACCOUNTABILITY.—The Secretary shall student loan borrowers, and other participants ed— ensure the cost neutrality of such reductions by in the student loan programs under title IV of (1) in paragraph (2)— obtaining an official report from the Director of the Higher Education Act of 1965 (20 U.S.C. 1070 (A) in the paragraph heading, by striking the Office of Management and Budget and the et seq.). ‘‘TRANSITION’’; Director of the Congressional Budget Office that (c) REPORT TO CONGRESS.—The Secretary of (B) by striking subparagraph (E); and any such reductions will be completely cost neu- the Treasury shall report to the Committee on (C) by redesignating subparagraphs (F), (G), tral. The reports shall be transmitted to the Labor and Human Resources of the Senate, and and (H) as subparagraphs (E), (F), and (G), re- Committee on Labor and Human Resources of the Committee on Education and the Workforce spectively; and the Senate and the Committee on Education and of the House of Representatives not later than (2) in paragraph (3)— the Workforce of the House of Representatives September 30, 1999, regarding the results of the (A) in the paragraph heading, by striking not less than 60 days prior to the publication of study described in subsection (a). ‘‘AFTER TRANSITION’’; and regulations proposing such reductions.’’. PART C—FEDERAL WORK-STUDY (B) by striking ‘‘For academic year 1995–1996 SEC. 453. CONTRACTS. PROGRAMS and subsequent academic years, the’’ and in- Section 456(b) (20 U.S.C. 1087f(b)) is amend- serting ‘‘The’’. SEC. 441. AUTHORIZATION OF APPROPRIATIONS; ed— COMMUNITY SERVICES. SEC. 452. TERMS AND CONDITIONS. (1) in paragraph (3), by inserting ‘‘and’’ after Section 441 (20 U.S.C. 2751) is amended— (a) DIRECT LOAN INTEREST RATES.—Section the semicolon; (1) in subsection (b), by striking ‘‘$800,000,000 455(b) (20 U.S.C. 1087e(b)) is amended by amend- (2) by striking paragraph (4); and for fiscal year 1993’’ and inserting ‘‘$900,000,000 ing paragraph (5) to read as follows: (3) by redesignating paragraph (5) as para- for fiscal year 1999’’; and ‘‘(5) INTEREST RATE PROVISION.— graph (4). (2) in subsection (c)— ‘‘(A) RATES FOR FDSL AND FDUSL.—Notwith- SEC. 454. FUNDS FOR ADMINISTRATIVE EX- (A) in paragraph (1), by inserting ‘‘(including standing the preceding paragraphs of this sub- PENSES. child care services provided on campus)’’ after section, for Federal Direct Unsubsidized Staf- Section 458 (20 U.S.C. 1087h) is amended— ‘‘child care’’; and ford/Ford Loans for which the first disburse- (1) by amending subsection (a) to read as fol- (B) in paragraph (3), by inserting ‘‘, including ment is made on or after October 1, 1998, and be- lows: students with disabilities who are enrolled at fore July 1, 2003, the applicable rate of interest ‘‘(a) ADMINISTRATIVE EXPENSES.— the institution’’ before the semicolon. shall, during any 12-month period beginning on ‘‘(1) IN GENERAL.—Each fiscal year there shall July 1 and ending on June 30, be determined on SEC. 442. GRANTS FOR FEDERAL WORK-STUDY be available to the Secretary, from funds not PROGRAMS. the preceding June 1 and be equal to— otherwise appropriated, funds to be obligated Section 443(b) (20 U.S.C. 2753(b)) is amended— ‘‘(i) the bond equivalent rate of 91-day Treas- for— (1) in paragraph (1), by inserting ‘‘, including ury bills auctioned at the final auction held ‘‘(A) administrative costs under this part and internships or research assistanceships as deter- prior to such June 1; plus part B, including the costs of the direct student mined by the Secretary,’’ after ‘‘part-time em- ‘‘(ii) 2.3 percent, loan programs under this part; and except that such rate shall not exceed 8.25 per- ployment’’; ‘‘(B) account maintenance fees payable to cent. (2) by amending paragraph (3) to read as fol- guaranty agencies under part B and calculated ‘‘(B) IN SCHOOL AND GRACE PERIOD RULES.— lows: in accordance with subsections (b) and (c), Notwithstanding the preceding paragraphs of ‘‘(3) provide that in the selection of students not to exceed (from such funds not otherwise this subsection, with respect to any Federal Di- for employment under such work-study pro- appropriated) $612,000,000 in fiscal year 1999, rect Stafford/Ford Loan or Federal Direct Un- gram, only students who demonstrate financial $730,000,000 in fiscal year 2000, $765,000,000 in subsidized Stafford/Ford Loan for which the need in accordance with part F of this title and fiscal year 2001, $770,000,000 in fiscal year 2002, first disbursement is made on or after October 1, meet the requirements of section 484 will be as- and $785,000,000 in fiscal year 2003. 1998, and before July 1, 2003, the applicable rate sisted, except that if the institution’s grant ‘‘(2) ACCOUNT MAINTENANCE FEES.—Account of interest for interest which accrues— under this part is directly or indirectly based in maintenance fees under paragraph (1)(B) shall ‘‘(i) prior to the beginning of the repayment part on the financial need demonstrated by stu- be paid quarterly and deposited in the Agency period of the loan; or dents who are (A) attending the institution on ‘‘(ii) during the period in which principal Operating Fund established under section 422B. less than a full-time basis, or (B) independent need not be paid (whether or not such principal ‘‘(3) CARRYOVER.—The Secretary may carry students, a reasonable portion of the allocation is in fact paid) by reason of a provision de- over funds made available under this section to shall be made available to such students;’’; scribed in section 428(b)(1)(M) or 427(a)(2)(C), a subsequent fiscal year.’’; (3) in paragraph (5)— shall be determined under subparagraph (A) by (2) by amending subsection (b) to read as fol- (A) by striking ‘‘provide that’’ and inserting substituting ‘1.7 percent’ for ‘2.3 percent’. lows: ‘‘(A) provide that’’; ‘‘(C) PLUS LOANS.—Notwithstanding the pre- ‘‘(b) CALCULATION BASIS.—Except as provided (B) by striking ‘‘1993–1994’’ and inserting ceding paragraphs of this subsection, with re- in subsection (c), account maintenance fees pay- ‘‘1999–2000’’; and spect to Federal Direct PLUS Loan for which able to guaranty agencies under paragraph (C) by inserting ‘‘and (B) provide that the the first disbursement is made on or after Octo- (1)(B) shall be calculated— Federal share of the compensation of students ber 1, 1998, and before July 1, 2003, the applica- ‘‘(1) for fiscal years 1999 and 2000, on the basis employed in community service shall not exceed ble rate of interest shall be determined under of 0.12 percent of the original principal amount 90 percent for academic years 1999–2000 and suc- subparagraph (A)— of outstanding loans on which insurance was ceeding academic years,’’ after ‘‘academic ‘‘(i) by substituting ‘3.1 percent’ for ‘2.3 per- issued under part B; and years,’’; and cent’; and ‘‘(2) for fiscal year 2001, 2002, and 2003, on the (4) in paragraph (6), by striking ‘‘, and to ‘‘(ii) by substituting ‘9.0 percent’ for ‘8.25 per- basis of 0.10 percent of the original principal make’’ and all that follows through ‘‘such em- cent’.’’. amount of outstanding loans on which insur- ployment’’. (b) EFFECTIVE DATE.—The amendments made ance was issued under part B.’’; SEC. 443. WORK COLLEGES. by subsection (a) shall apply with respect to any (3) by redesignating subsections (c) and (d) as Section 448 (20 U.S.C. 2756b) is amended— loan made under part D of title IV of the Higher subsections (d) and (e), respectively; and (1) in subsection (b)(2)— Education Act of 1965 for which the first dis- (4) by inserting after subsection (b) the fol- (A) in subparagraph (C), by striking ‘‘and’’ bursement is made on or after October 1, 1998, lowing: after the semicolon; and before July 1, 2003. ‘‘(c) SPECIAL RULES.— (B) in subparagraph (D)(ii), by striking the (c) REPAYMENT INCENTIVES.—Section 455(b) ‘‘(1) FEE CAP.—The total amount of account period and inserting a semicolon; and (20 U.S.C. 1087e(b)) is amended further by add- maintenance fees payable under this section— (C) by adding at the end the following: ing at the end the following: ‘‘(A) for fiscal year 1999, shall not exceed ‘‘(E) coordinate and carry out joint projects ‘‘(7) REPAYMENT INCENTIVES.— $177,000,000; and activities to promote work service learning; ‘‘(A) IN GENERAL.—Notwithstanding any other ‘‘(B) for fiscal year 2000, shall not exceed and provision of this part, the Secretary is author- $180,000,000;

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‘‘(C) for fiscal year 2001, shall not exceed ‘‘(f) LIST.—If the list of schools in which a (i) by striking subparagraph (B); and $170,000,000; teacher may perform service pursuant to sub- (ii) by redesignating subparagraphs (C) ‘‘(D) for fiscal year 2002, shall not exceed section (b) is not available before May 1 of any through (G) as subparagraphs (B) through (F), $180,000,000; and year, the Secretary may use the list for the year respectively; and ‘‘(E) for fiscal year 2003, shall not exceed preceding the year for which the determination (E) in the matter preceding subparagraph (A) $195,000,000. is made to make such service determination. of paragraph (2) (as redesignated by subpara- ‘‘(2) INSUFFICIENT FUNDING.— ‘‘(g) CONTINUED ELIGIBILITY.—Any teacher graph (C)), by striking ‘‘A loan’’ and inserting ‘‘(A) IN GENERAL.—Notwithstanding section who performs service in a school that— ‘‘For purposes of calculating the cohort default 422A(d), if the amount made available under ‘‘(1) meets the requirements of subsection rate under this subsection, a loan’’. subsection (a) is insufficient to pay the account (b)(1)(A) in any year during such service; and (b) CONFORMING AMENDMENTS.—Section 462 maintenance fees payable to guaranty agencies ‘‘(2) in a subsequent year fails to meet the re- (20 U.S.C. 1087bb) is amended— under paragraph (1) for a fiscal year, the Sec- quirements of such subsection, may continue to (1) in the matter following paragraphs (1)(B) retary shall pay the insufficiency by requiring teach in such school and shall be eligible for and (2)(D)(ii) of subsection (a), by inserting guaranty agencies to transfer funds from the loan cancellation pursuant to subsection (b).’’. ‘‘cohort’’ before ‘‘default’’ each place the term Federal Student Loan Reserve Funds under sec- PART E—FEDERAL PERKINS LOANS appears; tion 422A to the Agency Operating Funds under SEC. 461. AUTHORIZATION OF APPROPRIATIONS. (2) in the matter following paragraphs (2)(B) section 422B. and (3)(C) of subsection (c), by inserting ‘‘co- NTITLEMENT.—A guaranty agency shall Subsection (b) of section 461 (20 U.S.C. 1087aa) ‘‘(B) E hort’’ before ‘‘default’’ each place the term ap- be deemed to have a contractual right against is amended— (1) in paragraph (1), by striking ‘‘1993’’ and pears; the United States to receive payments according (3) in subsection (e)(2), by inserting ‘‘cohort’’ to the provisions of subparagraph (A).’’. inserting ‘‘1999’’; and (2) in paragraph (2), by striking ‘‘1997’’ each before ‘‘default’’; and SEC. 455. LOAN CANCELLATION FOR TEACHERS. place the term appears and inserting ‘‘2003’’. (4) in subsection (h)(1)(F) (as redesignated by Part D of title IV (20 U.S.C. 1087a et seq.) is subparagraphs (C) and (D)(ii) of subsection amended by adding at the end the following: SEC. 462. ALLOCATION OF FUNDS. (a) AMENDMENTS.—Section 462 (20 U.S.C. (a)(4)), by inserting ‘‘cohort’’ before ‘‘default’’. ‘‘SEC. 459. LOAN CANCELLATION FOR TEACHERS. 1087bb) is amended— SEC. 463. AGREEMENTS WITH INSTITUTIONS OF ‘‘(a) STATEMENT OF PURPOSE.—It is the pur- (1) in the matter preceding subparagraph (A) HIGHER EDUCATION. pose of this section to encourage individuals to of subsection (d)(3), by striking ‘‘the Secretary, Section 463 (20 U.S.C. 1087cc) is amended— enter and continue in the teaching profession. (1) by amending subparagraph (B) of sub- ROGRAM AUTHORIZED.—The Secretary is for’’ and all that follows through ‘‘years,’’; ‘‘(b) P section (a)(2) to read as follows: authorized to carry out a program of canceling (2) by amending subsection (f) to read as fol- ‘‘(B) a capital contribution by an institution the obligation to repay a Federal Direct Staf- lows: ‘‘(f) DEFAULT PENALTIES.— in an amount equal to one-third of the Federal ford/Ford Loan made under this part that is eli- ‘‘(1) IN GENERAL.—For fiscal year 1998 and capital contributions described in subparagraph gible for an interest subsidy and is a qualifying any succeeding fiscal year, any institution with (A);’’; loan, for any new borrower on or after October a cohort default rate (as defined under sub- (2) in subsection (c)— 1, 1998, who— section (h)) that equals or exceeds 25 percent (A) in paragraph (2)— ‘‘(1) has been employed as a full-time teacher shall have a default penalty of zero. (i) in the matter preceding subparagraph (A), for 3 consecutive complete school years— ‘‘(2) INELIGIBILITY.— ‘‘(A) in a school that qualifies under section by striking ‘‘by the Secretary’’ and all that fol- ‘‘(A) IN GENERAL.—For fiscal year 1998 and 465(a)(2)(A) for loan cancellation for Perkins lows through ‘‘of—’’ and inserting ‘‘by the Sec- any succeeding fiscal year, any institution with loan recipients who teach in such schools; retary or an institution, as the case may be, to ‘‘(B) if employed as a secondary school teach- a cohort default rate (as defined in subsection such organizations, with respect to any loan er, is teaching a subject area that is relevant to (h)) that equals or exceeds 50 percent for each of held by the Secretary or the institution, respec- the borrower’s academic major as certified by the 3 most recent years for which data are avail- tively, the chief administrative officer of the public or able shall not be eligible to participate in a pro- of—’’; non-profit private secondary school in which gram under this part for the fiscal year for (ii) by amending subparagraph (A) to read as the borrower is employed; and which the determination is made and the 2 suc- follows: ‘‘(C) if employed as an elementary school ceeding fiscal years, unless, within 30 days of ‘‘(A) the date of disbursement and the amount teacher, has demonstrated, in accordance with receiving notification from the Secretary of the of such loans made to any borrower under this State teacher certification or licensing require- loss of eligibility under this paragraph, the in- part at the time of disbursement of the loan;’’; ments and as certified by the chief administra- stitution appeals the loss of eligibility to the (iii) in subparagraph (B)— tive officer of the public or nonprofit private ele- Secretary. The Secretary shall issue a decision (I) by inserting ‘‘the repayment and’’ after mentary school in which the borrower is em- on any such appeal within 45 days after the ‘‘concerning’’; and ployed, knowledge and teaching skills in read- submission of the appeal. Such decision may (II) by striking ‘‘any defaulted’’ and inserting ing, writing, mathematics and other areas of the permit the institution to continue to participate ‘‘such’’; and elementary school curriculum; and in a program under this part if— (iv) in subparagraph (C), by inserting ‘‘, or ‘‘(2) is not in default on a loan for which the ‘‘(i) the institution demonstrates to the satis- upon cancellation or discharge of the borrower’s borrower seeks forgiveness. faction of the Secretary that the calculation of obligation on the loan for any reason’’ before ‘‘(c) QUALIFYING LOANS.—For purposes of this the institution’s cohort default rate is not accu- the period; section, a loan is a qualifying loan if— rate, and that recalculation would reduce the (B) in paragraph (3)— ‘‘(1) the loan was obtained to cover the cost of institution’s cohort default rate for any of the 3 (i) in the matter preceding subparagraph (A), instruction for an academic year after the first fiscal years below 50 percent; or by striking ‘‘until—’’ and inserting ‘‘until the and second years of undergraduate education; ‘‘(ii) there are, in the judgment of the Sec- loan is paid in full.’’; and and retary, exceptional mitigating circumstances (ii) by striking subparagraphs (A) and (B); ‘‘(2) the loan did not cover the costs of in- such as a small number of borrowers entering and struction for more than 2 academic years, or 3 repayment, that would make the application of (C) by amending paragraph (4) to read as fol- academic years in the case of a program of in- this subparagraph inequitable. lows: struction normally requiring 5 years to complete. ‘‘(B) CONTINUED PARTICIPATION.—During an ‘‘(4)(A) Except as provided in subparagraph ‘‘(d) REGULATIONS.—The Secretary is author- appeal under subparagraph (A), the Secretary (B), an institution of higher education, after ized to issue such regulations as may be nec- may permit the institution to continue to par- consultation with the Secretary and pursuant to essary to carry out the provisions of this section. ticipate in a program under this part. the agreements entered into under paragraph ‘‘(e) LOAN CANCELLATION DURING CONTINUING ‘‘(C) DEFINITION.—For the purposes of sub- (1), shall disclose at least annually to any credit TEACHING SERVICE.— paragraph (A), the term ‘loss of eligibility’ shall bureau organization with which the Secretary ‘‘(1) IN GENERAL.—The Secretary shall cancel be defined as the mandatory liquidation of an has such an agreement the information set forth the obligation to repay— institution’s student loan fund, and assignment in paragraph (2), and shall disclose promptly to ‘‘(A) 30 percent of the total outstanding of the institution’s outstanding loan portfolio to such credit bureau organization any changes to amount and applicable interest of subsidized the Secretary.’’; the information previously disclosed. Federal Direct Stafford/Ford loans that are (3) by amending paragraph (1) of subsection ‘‘(B) The Secretary may promulgate regula- qualifying loans and are owed by the student (g) to read as follows: ‘‘(1) For award year 1998 tions establishing criteria under which an insti- borrower after the completion of the fourth or and subsequent years, the maximum cohort de- tution of higher education may cease reporting fifth complete school year of service described in fault rate is 25 percent.’’; and the information described in paragraph (2) be- subsection (b); (4) in subsection (h)— ‘‘(B) 40 percent of such total amount after the (A) in the subsection heading, by striking fore a loan is paid in full.’’. completion of the sixth complete school year of ‘‘DEFINITIONS OF DEFAULT RATE AND’’ and in- SEC. 464. TERMS OF LOANS. such service; and serting ‘‘DEFINITION OF’’; Section 464 (20 U.S.C. 1087dd) is amended— ‘‘(C) a total amount for any borrower that (B) by striking paragraphs (1) and (2); (1) in subsection (a), by amending paragraph shall not exceed $8,000. (C) by redesignating paragraphs (3) and (4) as (2) to read as follows: ‘‘(2) CONSTRUCTION.—Nothing in this section paragraphs (1) and (2), respectively; ‘‘(2)(A) Except as provided in paragraph (4), shall be construed to authorize any refunding of (D) in paragraph (1) (as redesignated by sub- the total of loans made to a student in any aca- any canceled loan. paragraph (C))— demic year or its equivalent by an institution of

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00074 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7989 higher education from a loan fund established term of the promissory note or written repay- which the borrower is otherwise eligible) on the pursuant to an agreement under this part shall ment agreement, and such failure persists for— basis of defaulting on the loan prior to such re- not exceed— ‘‘(i) 180 days in the case of a loan that is re- habilitation. ‘‘(i) $4,000, in the case of a student who has payable in monthly installments; or ‘‘(D) LIMITATIONS.—A borrower only once not successfully completed a program of under- ‘‘(ii) 240 days in the case of a loan that is re- may obtain the benefit of this paragraph with graduate education; or payable in less frequent installments;’’; respect to rehabilitating a loan under this part. ‘‘(ii) $6,000, in the case of a graduate or pro- (4) in subsection (c), by adding at the end the ‘‘(2) RESTORATION OF ELIGIBILITY.—If the bor- fessional student (as defined in regulations following: rower of a loan made under this part who has issued by the Secretary). ‘‘(7) There shall be excluded from the 9-month defaulted on that loan makes 6 ontime, consecu- ‘‘(B) Except as provided in paragraph (4), the period that begins on the date on which a stu- tive, monthly payments of amounts owed on aggregate of the loans for all years made to a dent ceases to carry at least one-half the normal such loan, the borrower’s eligibility for grant, student by institutions of higher education from full-time academic workload as described in loan, or work assistance under this title shall be loan funds established pursuant to agreements paragraph (1)(A) any period not to exceed 3 restored. A borrower only once may obtain the under this part may not exceed— years during which a borrower who is a member benefit of this paragraph with respect to re- ‘‘(i) $40,000, in the case of any graduate or of a reserve component of the Armed Forces stored eligibility. professional student (as defined by regulations named in section 10101 of title 10, United States ‘‘(i) INCENTIVE REPAYMENT PROGRAM.— issued by the Secretary, and including any Code, is called or ordered to active duty for a ‘‘(1) IN GENERAL.—Each institution of higher loans from such funds made to such person be- period of more than 30 days (as defined in sec- education may establish, with the approval of fore such person became a graduate or profes- tion 101(d)(2) of such title). Such period of ex- the Secretary, an incentive repayment program sional student); clusion shall include the period necessary to re- designed to reduce default and to replenish stu- ‘‘(ii) $20,000, in the case of a student who has sume enrollment at the borrower’s next available dent loan funds established under this part. successfully completed 2 years of a program of regular enrollment period.’’; and Each such incentive repayment program may— education leading to a bachelor’s degree but (5) by adding at the end the following: ‘‘(A) offer a reduction of the interest rate on who has not completed the work necessary for ‘‘(g) DISCHARGE.— a loan on which the borrower has made 48 such a degree (determined under regulations ‘‘(1) IN GENERAL.—If a student borrower who ontime, consecutive, monthly repayments, but in issued by the Secretary, and including any received a loan made under this part on or after no event may the rate be reduced by more than loans from such funds made to such person be- January 1, 1986, is unable to complete the pro- 1 percent; fore such person became such a student); and gram in which such student is enrolled due to ‘‘(B) provide for a discount on the balance ‘‘(iii) $8,000, in the case of any other student. the closure of the institution, then the Secretary owed on a loan on which the borrower pays the ‘‘(C)(i) The total of loans made to a student shall discharge the borrower’s liability on the principal and interest in full prior to the end of described in clause (ii) in any academic year or loan (including the interest and collection fees) the applicable repayment period, but in no event its equivalent by an institution of higher edu- by repaying the amount owed on the loan and may the discount exceed 5 percent of the unpaid cation from loan funds established pursuant to shall subsequently pursue any claim available principal balance due on the loan at the time agreements under this part may not exceed— to such borrower against the institution and the the early repayment is made; and ‘‘(I) $8,000 for each of the third and fourth institution’s affiliates and principals, or settle ‘‘(C) include such other incentive repayment years of the program of instruction leading to a the loan obligation pursuant to the financial re- options as the institution determines will carry bachelor’s degree; or sponsibility standards described in section out the objectives of this subsection. ‘‘(II) $10,000 for the first year of graduate 498(c). ‘‘(2) LIMITATION.—No incentive repayment op- study (as defined in regulations issued by the ‘‘(2) ASSIGNMENT.—A borrower whose loan has tion under an incentive repayment program au- Secretary). been discharged pursuant to this subsection thorized by this subsection may be paid for with ‘‘(ii) A student referred to in clause (i) is any shall be deemed to have assigned to the United Federal funds, including any Federal funds student— States the right to a loan refund in an amount from the student loan fund, nor can an incen- ‘‘(I) who is a junior in a program of instruc- that does not exceed the amount discharged tive repayment option be paid for with institu- tion leading to a bachelor’s degree; against the institution and the institution’s af- tional funds from the student loan fund.’’. ‘‘(II) who states in writing that the student filiates and principals. SEC. 465. DISTRIBUTION OF ASSETS FROM STU- will pursue a course of study to become an ele- ‘‘(3) ELIGIBILITY FOR ADDITIONAL ASSIST- DENT LOAN FUNDS. mentary or secondary school teacher; and ANCE.—The period during which a student was Section 466 (20 U.S.C. 1087ff) is amended— ‘‘(III) who states in writing that the student unable to complete a course of study due to the (1) in subsection (a)— intends to become a full-time teacher in a school closing of the institution shall not be considered (A) in the matter preceding paragraph (1)— which meets the requirements of section for purposes of calculating the student’s period (i) by striking ‘‘1996’’ and inserting ‘‘2003’’; 465(a)(2)(A). of eligibility for additional assistance under this and ‘‘(iii) Each institution shall provide a report title. (ii) by striking ‘‘1997’’ and inserting ‘‘2004’’; to the Secretary annually containing the num- ‘‘(4) SPECIAL RULE.—A borrower whose loan and ber of loans under this subparagraph that are has been discharged pursuant to this subsection (B) in paragraph (1), by striking ‘‘1996’’ and made, the amount of each loan, and whether shall not be precluded, because of that dis- inserting ‘‘2003’’; students benefiting from the higher loan limits charge, from receiving additional grant, loan, or (2) in subsection (b)— met the requirements for receiving those loans. work assistance under this title for which the (A) by striking ‘‘2005’’ and inserting ‘‘2012’’; ‘‘(iv) If 3 years after the date of enactment of borrower would be otherwise eligible (but for the and the Higher Education Amendments of 1998, the default on the discharged loan). (B) by striking ‘‘1996’’ and inserting ‘‘2003’’; Secretary determines that an institution has en- ‘‘(5) REPORTING.—The Secretary or institu- and gaged in a pattern of abuse of this subpara- tion, as the case may be, shall report to credit (3) in subsection (c), by striking ‘‘1997’’ and graph, the Secretary may reduce or terminate bureaus with respect to loans that have been inserting ‘‘2004’’. the institution’s Federal capital contribution.’’; discharged pursuant to this subsection. SEC. 466. PERKINS LOAN REVOLVING FUND. (2) in subsection (b), by amending paragraph ‘‘(h) REHABILITATION OF LOANS.— (a) REPEAL.—Subsection (c) of section 467 (20 ‘‘(1) REHABILITATION.— (2) to read as follows: U.S.C. 1087gg(c)) is repealed. ‘‘(2) If the institution’s capital contribution ‘‘(A) IN GENERAL.—If the borrower of a loan (b) TRANSFER OF BALANCE.—Any funds in the made under this part who has defaulted on the under section 462 is directly or indirectly based Perkins Loan Revolving Fund on the date of en- loan makes 12 ontime, consecutive, monthly in part on the financial need demonstrated by actment of this Act shall be transferred to and payments of amounts owed on the loan, as de- students who are (A) attending the institution deposited in the Treasury. less than full time; or (B) independent students, termined by the institution, the loan shall be a reasonable portion of the loans made from the considered rehabilitated, and the institution PART F—NEED ANALYSIS institution’s student loan fund containing the that made that loan (or the Secretary, in the SEC. 471. COST OF ATTENDANCE. contribution shall be made available to such case of a loan held by the Secretary) shall in- Section 472 (20 U.S.C. 1087ll) is amended— students.’’; struct any credit bureau organization or credit (1) in paragraph (3)— (3) in subsection (c)(1)— reporting agency to which the default was re- (A) in subparagraph (A), by striking ‘‘of not (A) in subparagraph (D), by striking ‘‘(i) 3 ported to remove the default from the borrower’s less than $1,500’’ and inserting ‘‘determined by percent’’ and all that follows through ‘‘or (iii)’’; credit history. the institution’’; and (B) by redesignating subparagraphs (H) and ‘‘(B) COMPARABLE CONDITIONS.—As long as (B) in subparagraph (C), by striking ‘‘, except (I) as subparagraphs (I) and (J), respectively; the borrower continues to make scheduled re- that the amount may not be less than $2,500’’; and payments on a loan rehabilitated under this and (C) by inserting after subparagraph (G) the paragraph, the rehabilitated loan shall be sub- (2) in paragraph (11), by striking ‘‘placed’’ following: ject to the same terms and conditions, and qual- and inserting ‘‘engaged’’. ‘‘(H) shall provide that, in the case of a loan ify for the same benefits and privileges, as other SEC. 472. FAMILY CONTRIBUTION FOR DEPEND- made on or after July 1, 1999, the loan shall be loans made under this part. ENT STUDENTS. considered in default (except as otherwise pro- ‘‘(C) ADDITIONAL ASSISTANCE.—The borrower Section 475 (20 U.S.C. 1087oo) is amended— vided in section 462(h)) if the borrower of a loan of a rehabilitated loan shall not be precluded by (1) in subsection (g)— made under this part fails to make an install- section 484 from receiving additional grant, (A) in paragraph (2)— ment payment when due, or to meet any other loan, or work assistance under this title (for (i) in subparagraph (D)—

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00075 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7990 CONGRESSIONAL RECORD — SENATE July 10, 1998 (I) by striking ‘‘$1,750’’ and inserting or the parents certify to the Secretary that the ‘‘(2)(A) The Secretary may designate any reg- ‘‘$2,200’’; and parents are not required to file an income tax ulatory provision that affects the programs (II) by striking ‘‘and’’ after the semicolon; return; and under this title and is published in final form (ii) in subparagraph (E), by striking the pe- ‘‘(ii) the student files, or is eligible to file, a after November 1 as one that an entity subject riod and inserting ‘‘; and’’; and form described in subsection (b)(3), or the stu- to the provision may, in the entity’s discretion, (iii) by adding at the end the following: dent certifies to the Secretary that the student is choose to implement prior to the effective date ‘‘(F) an allowance for parents’ negative avail- not required to file an income tax return; and’’; described in paragraph (1). The Secretary may able income, determined in accordance with and specify in the designation when, and under paragraph (6).’’; and (B) in paragraph (2), by amending subpara- what conditions, an entity may implement the (B) by adding at the end the following: graph (A) to read as follows: provision prior to that effective date. The Sec- ‘‘(6) ALLOWANCE FOR PARENTS’ NEGATIVE ‘‘(A) the student (and the student’s spouse, if retary shall publish any designation under this AVAILABLE INCOME.—The allowance for parents’ any) files, or is eligible to file, a form described subparagraph in the Federal Register. negative available income is the amount, if any, in subsection (b)(3), or the student certifies to ‘‘(B) If an entity chooses to implement a regu- by which the sum of the amounts deducted the Secretary that the student (and the stu- latory provision prior to the effective date de- under subparagraphs (A) through (F) of para- dent’s spouse, if any) is not required to file an scribed in paragraph (1), as permitted by sub- graph (1) exceeds the parents’ total income (as income tax return; and’’. paragraph (A), the provision shall be effective defined in section 480).’’; and SEC. 476. REFUSAL OR ADJUSTMENT OF LOAN with respect to that entity in accordance with (2) by adding at the end the following: CERTIFICATIONS. the terms of the Secretary’s designation.’’. ‘‘(j) ADJUSTMENTS TO STUDENTS CONTRIBUTION Section 479A (20 U.S.C. 1087tt) is amended— SEC. 483. FORMS AND REGULATIONS. FOR ENROLLMENT PERIODS OF LESS THAN NINE (1) in subsection (a), by inserting ‘‘Special cir- Section 483 (20 U.S.C. 1090) is amended— MONTHS.—For periods of enrollment of less than cumstances may include tuition expenses at an (1) in subsection (a)— 9 months, the student’s contribution from ad- elementary school or secondary school, medical (A) in the subsection heading, by striking justed available income (as determined under or dental expenses not covered by insurance, ‘‘FORM’’ and inserting ‘‘FORM DEVELOPMENT’’; subsection (g)) is determined, for purposes other other changes in a family’s income or assets, or (B) by amending paragraph (1) to read as fol- than subpart 2 of part A, by dividing the changes in a student’s status.’’ after ‘‘absence lows: amount determined under such subsection by 9, of special circumstances.’’; and ‘‘(1) SINGLE FORM REQUIREMENTS.—The Sec- and multiplying the result by the number of (2) by amending subsection (c) to read as fol- retary, in cooperation with representatives of months in the period of enrollment.’’. lows: agencies and organizations involved in student SEC. 473. FAMILY CONTRIBUTION FOR INDE- ‘‘(c) REFUSAL OR ADJUSTMENT OF LOAN CER- financial assistance, shall produce, distribute, PENDENT STUDENTS WITHOUT DE- TIFICATIONS.—An eligible institution may refuse and process free of charge a common financial PENDENTS OTHER THAN A SPOUSE. to certify a statement that permits a student to reporting form (which shall include electronic Section 476(b)(1)(A)(iv) (20 U.S.C. receive a loan under part B, or refuse to make versions of the form) to be used— 1087pp(b)(1)(A)(iv)) is amended— a loan under part D, or may certify a loan ‘‘(A) to determine the need (including the ex- (1) in subclause (I), by striking ‘‘$3,000’’ and amount or make a loan that is less than the stu- pected family contribution and, if appropriate, inserting ‘‘$4,250’’; dent’s determination of need (as determined cost of attendance) and eligibility of a student (2) in subclause (II), by striking ‘‘$3,000’’ and under this part), if the reason for the action is for financial assistance under parts A, C, D, inserting ‘‘$4,250’’; and documented and provided in written form to the and E; and (3) in subclause (III), by striking ‘‘$6,000’’ and student. No eligible institution shall discrimi- ‘‘(B) to determine the need (including the ex- inserting ‘‘$7,250’’. nate against any borrower or applicant in ob- pected family contribution and cost of attend- SEC. 474. REGULATIONS; UPDATED TABLES AND taining a loan on the basis of race, national ori- ance) of a student for the purposes of part B. gin, religion, sex, marital status, age, or dis- AMOUNTS. ‘‘(2) STATE DATA ITEMS.—The Secretary shall Section 478(b) (20 U.S.C. 1087rr(b)) is amend- ability status.’’. include on the form developed under this sub- ed— SEC. 477. TREATMENT OF OTHER FINANCIAL AS- section such data items, selected in consultation (1) by striking ‘‘For each academic year’’ and SISTANCE. with the States to assist the States in awarding inserting the following: Section 480(j)(3) (20 U.S.C. 1087vv(j)(3)) is State student financial assistance, as the Sec- ‘‘(1) REVISED TABLES.—For each academic amended by inserting ‘‘educational assistance retary determines are appropriate for inclusion. year’’; and after discharge or release from service under ‘‘(3) PARENT’S SOCIAL SECURITY NUMBER.—The (2) by adding at the end the following new chapter 30 of title 38, United States Code, or’’ Secretary shall include on the form developed paragraph: after ‘‘paragraph (1),’’. under this paragraph space for the social secu- ‘‘(2) REVISED AMOUNTS.—For each academic PART G—GENERAL PROVISIONS rity number of parents of dependent students year after academic year 1999–2000, the Sec- SEC. 481. DEFINITION OF INSTITUTION OF HIGH- seeking financial assistance under this title. retary shall publish in the Federal Register re- ER EDUCATION. ‘‘(4) USE.—The Secretary shall require that vised income protection allowances for the pur- Subparagraph (A) of section 481(a)(2) (20 the form developed under this paragraph be pose of sections 475(g)(2)(D) and 476(b)(1)(A)(iv). U.S.C. 1088(a)(2)) is amended— used for the purpose of collecting eligibility and Such revised allowances shall be developed by (1) in the second sentence, by inserting ‘‘or other data for purposes of part B, including the increasing each of the dollar amounts contained veterinary’’ after ‘‘case of a graduate medical’’; applicant’s choice of lender.’’; and in such section by a percentage equal to the es- (2) by striking ‘‘attending a graduate medical (C) in paragraph (3)— timated percentage increase in the Consumer school’’ and inserting ‘‘attending such school’’; (i) by striking ‘‘Institutions of higher edu- Price Index (as determined by the Secretary) be- and cation and States shall receive’’ and inserting tween December 1998 and the December next (3) by amending clause (ii) to read as follows: ‘‘The Secretary shall provide’’; and preceding the beginning of such academic year, ‘‘(ii) the institution has a clinical training (ii) by striking ‘‘by the Secretary’’; and and rounding the result to the nearest $10.’’. program that was approved by a State as of (2) by adding at the end the following: SEC. 475. SIMPLIFIED NEEDS TEST; ZERO EX- January 1, 1992, or students enrolled in the in- ‘‘(g) PAYMENT FOR DATA.—The Secretary may PECTED FAMILY CONTRIBUTION. stitution complete their clinical training at an pay such charges as the Secretary determines Section 479 (20 U.S.C. 1087ss) is amended— approved veterinary school located in the are necessary to obtain data that the Secretary (1) in subsection (b)(3)— United States.’’. considers essential to the efficient administra- (A) in subparagraph (A), by striking ‘‘or’’ SEC. 482. MASTER CALENDAR. tion of the programs under this title. after the semicolon; Section 482 (20 U.S.C. 1089) is amended— ‘‘(h) MASTER PROMISSORY NOTE.— (B) by redesignating subparagraph (B) as sub- (1) in subsection (a), by adding at the end the ‘‘(1) IN GENERAL.—The Secretary shall develop paragraph (C); and following: and require the use of a master promissory note, (C) by inserting after subparagraph (A) the ‘‘(3) To the extent feasible, the Secretary shall for loans made under this title for periods of en- following: notify eligible institutions and vendors by De- rollment beginning on or after July 1, 2000, that ‘‘(B) a form 1040 (including any prepared or cember 1 prior to the start of an award year of may be applicable to more than 1 academic year, electronic version of such form) required pursu- minimal hardware and software requirements or more than 1 type of loan made under this ant to the Internal Revenue Code of 1986, except necessary to administer programs under this title. Prior to implementing the master promis- that such form shall be considered a form de- title.’’; and sory note for all loans made under this title, the scribed in this paragraph only if the student or (2) by amending subsection (c) to read as fol- Secretary may develop, test, and require the use family files such form in order to take a tax lows: of such a master promissory note on a limited or credit under section 25A of the Internal Revenue ‘‘(c) DELAY OF EFFECTIVE DATE OF LATE PUB- pilot basis. Code of 1986, and would otherwise be eligible to LICATIONS.—(1) Except as provided in paragraph ‘‘(2) CONSULTATION.—In developing the master file a form described in subparagraph (A); or’’; (2), any regulatory changes initiated by the Sec- promissory note under this subsection, the Sec- and retary affecting the programs under this title retary shall consult with representatives of (2) in subsection (c)— that have not been published in final form by guaranty agencies, eligible lenders, institutions (A) in paragraph (1), by amending subpara- November 1 prior to the start of the award year of higher education, students, and organiza- graph (A) to read as follows: shall not become effective until the beginning of tions involved in student financial assistance. ‘‘(A)(i) the student’s parents file, or are eligi- the second award year after such November 1 ‘‘(3) SALE; ASSIGNMENT; ENFORCEABILITY.— ble to file, a form described in subsection (b)(3), date. Notwithstanding any other provision of law,

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each loan made under a master promissory note ‘‘(2) REHABILITATION.—A student whose eligi- the institution of higher education shall comply under this subsection may be sold or assigned bility has been suspended under paragraph (1) with the procedures for late disbursement speci- independently of any other loan made under the may resume eligibility before the end of the in- fied by the Secretary in regulations. same promissory note and each such loan shall eligibility period determined under such para- ‘‘(B) RETURN.—If the student has received be separately enforceable in all Federal and graph if— more grant or loan assistance than the amount State courts on the basis of an original or copy ‘‘(A) the student satisfactorily completes a earned, as calculated under paragraph (2)(B), of the master promissory note in accordance drug rehabilitation program that— the unearned funds shall be returned by the in- with the terms of the master promissory note.’’. ‘‘(i) complies with such criteria as the Sec- stitution or the student, or both, as may be re- SEC. 484. STUDENT ELIGIBILITY. retary shall prescribe in regulations for purposes quired under paragraphs (1) and (2) of sub- (a) AMENDMENTS.—Section 484 (20 U.S.C. 1091) of this paragraph; and section (b), to the programs under this title in is amended— ‘‘(ii) includes 2 unannounced drug tests; or the order specified in subsection (b)(3). (1) in subsection (d)— ‘‘(B) the conviction is expunged by pardon, ‘‘(b) RETURN OF TITLE IV PROGRAM FUNDS.— (A) in the matter preceding paragraph (1), by reversed, set aside, or otherwise rendered nuga- ‘‘(1) RESPONSIBILITY OF THE INSTITUTION.— striking ‘‘either’’; and tory. The institution shall return, in the order speci- (B) by adding at the end the following: ‘‘(3) DEFINITIONS.—In this subsection, the fied in paragraph (3), the lesser of— ‘‘(3) The student has completed a high school term ‘controlled substance’ has the meaning ‘‘(A) the amount of grant and loan assistance education in a home school setting and has met given the term in section 102(6) of the Controlled awarded under this title that has not been any State requirements with respect to such Substances Act (21 U.S.C. 802(6)).’’. earned by the student, as calculated under sub- education in a home school setting.’’; (b) EFFECTIVE DATE.—The amendment made section (a)(2)(C); or ‘‘(B) an amount equal to— (2) in subsection (l), by amending paragraph by subsection (a)(2) regarding suspension of eli- ‘‘(i) the total institutional charges for the (1) to read as follows: gibility for drug-related offenses, shall apply with respect to financial assistance to cover the payment period; multiplied by ‘‘(1) RELATION TO CORRESPONDENCE ‘‘(ii) the percentage of grant and loan assist- COURSES.— costs of attendance for periods of enrollment be- ginning after the date of enactment of this Act. ance awarded under this title that has not been ‘‘(A) IN GENERAL.—A student enrolled in a earned by the student, as described in sub- course of instruction at an institution of higher SEC. 485. INSTITUTIONAL REFUNDS. section (a)(2)(C). education that is offered in whole or in part Section 484B (20 U.S.C. 1091b) is amended to ‘‘(2) RESPONSIBILITY OF THE STUDENT.— through telecommunications and leads to a rec- read as follows: ‘‘(A) IN GENERAL.—The student shall return ognized certificate for a program of study of 1 ‘‘SEC. 484B. INSTITUTIONAL REFUNDS. assistance that has not been earned by the stu- year or longer, or a recognized associate, bacca- ‘‘(a) RETURN OF TITLE IV FUNDS.— dent as described in subsection (a)(2)(C) in the laureate, or graduate degree, conferred by such ‘‘(1) IN GENERAL.—If a recipient of assistance order specified in paragraph (3) minus the institution, shall not be considered to be en- under this title withdraws from a payment pe- amount the institution is required to return rolled in correspondence courses unless the total riod in which the recipient began attendance, under paragraph (1). amount of telecommunications and correspond- the amount of grant (other than assistance re- ‘‘(B) SPECIAL RULE.—The student shall return ence courses at such institution equals or ex- ceived under part C of this title) or loan assist- or repay, as appropriate, the amount determined ceeds 50 percent of the total amount of all ance to be returned to the title IV programs is under subparagraph (A) to— courses at the institution. calculated according to paragraph (2) and re- ‘‘(i) a loan program under this title in accord- ‘‘(B) REQUIREMENT.—An institution of higher turned in accordance with subsection (b). ance with the terms of the loan; and education referred to in subparagraph (A) is an ‘‘(2) CALCULATION OF AMOUNT OF TITLE IV AS- ‘‘(ii) a grant program under this title, as an institution of higher education— SISTANCE EARNED.— overpayment of such grant and shall be subject ‘‘(i) that is not an institute or school described ‘‘(A) IN GENERAL.—The amount of grant or to overpayment collection procedures prescribed in section 521(4)(C) of the Carl D. Perkins Voca- loan assistance under this title that is earned by by the Secretary. tional and Applied Technology Education Act; the recipient for purposes of this section is cal- ‘‘(3) ORDER OF RETURN OF TITLE IV FUNDS.— and culated by— ‘‘(A) IN GENERAL.—Excess funds returned by ‘‘(ii) for which at least 50 percent of the pro- ‘‘(i) determining the percentage of grant and the institution or the student, as appropriate, in grams of study offered by the institution lead to loan assistance under this title that has been accordance with paragraph (1) or (2), respec- the award of a recognized associate, bacca- earned by the student, as described in subpara- tively, shall be credited to outstanding balances laureate, or graduate degree.’’; and graph (B); and on loans made under this title to the student or (3) by adding at the end the following: ‘‘(ii) applying such percentage to the total on behalf of the student for the payment period ‘‘(q) VERIFICATION OF IRS RETURN INFORMA- amount of such grant and loan assistance that for which a return of funds is required. Such ex- TION.—The Secretary shall verify the informa- was disbursed (and that could have been dis- cess funds shall be credited in the following tion reported by all applicants for assistance on bursed) to the student, or on the student’s be- order: the form prescribed under section 483 with the half, for the payment period, as of the day the ‘‘(i) To outstanding balances on loans made return information (as defined in section 6103 of student withdrew. under section 428H for the payment period for the Internal Revenue Code of 1986) available to ‘‘(B) PERCENTAGE EARNED.—For purposes of which a return of funds is required. the Secretary of the Treasury. Notwithstanding subparagraph (A)(i), the percentage of grant or ‘‘(ii) To outstanding balances on loans made section 6103 of such Code the Secretary of the loan assistance under this title that has been under section 428 for the payment period for Treasury shall provide the return information to earned by the student is— which a return of funds is required. the Secretary. In the case of a dependent stu- ‘‘(i) equal to the percentage of the payment ‘‘(iii) To outstanding balances on unsub- dent the return information shall include the re- period completed (as determined in accordance sidized loans (other than parent loans) made turn information of the parent of the student. with subsection (d)) as of the day the student under part D for the payment period for which The form prescribed by the Secretary under sec- withdrew, provided that such date occurs on or a return of funds is required. ‘‘(iv) To outstanding balances on subsidized tion 483 shall contain a prominent notice of the before the completion of 60 percent of the pay- loans made under part D for the payment period verification of the information and a warning to ment period; or for which a return of funds is required. all the applicants of the penalties for misrepre- ‘‘(ii) 100 percent, if the day the student with- ‘‘(v) To outstanding balances on loans made sentation, with respect to the information, drew occurs after the student has completed 60 under part E for the payment period for which under the United States Code. percent of the payment period. ‘‘(r) SUSPENSION OF ELIGIBILITY FOR DRUG- a return of funds is required. ‘‘(C) PERCENTAGE NOT EARNED.—For purposes ‘‘(vi) To outstanding balances on loans made RELATED OFFENSES.— of subsection (b), the amount of grant and loan ‘‘(1) IN GENERAL.—A student who has been under section 428B for the payment period for assistance awarded under this title that has not which a return of funds is required. convicted of any offense under any Federal or been earned by the student shall be calculated State law involving the possession or sale of a ‘‘(vii) To outstanding balances on parent by— loans made under part D for the payment period controlled substance shall not be eligible to re- ‘‘(i) determining the complement of the per- ceive any grant, loan, or work assistance under for which a return of funds is required. centage of grant or loan assistance under this EMAINING EXCESSES.—If excess funds this title during the period beginning on the ‘‘(B) R title has been earned by the student described in remain after repaying all outstanding loan date of such conviction and ending after the in- subparagraph (B); and amounts, the remaining excess shall be credited terval specified in the following table: ‘‘(ii) applying the percentage determined in the following order: ‘‘If convicted of an offense involving: under clause (i) to the total amount of such ‘‘(i) To awards under subpart 1 of part A for The possession of a con- grant and loan assistance that was disbursed the payment period for which a return of funds trolled substance: (and that could have been disbursed) to the stu- is required. Ineligibility period is: dent, or on the student’s behalf, for the pay- ‘‘(ii) To awards under subpart 3 of part A for First offense ...... 1 year ment period, as of the day the student with- the payment period for which a return of funds Second offense ...... 2 years drew. Third offense ...... Indefinite. is required. ‘‘(3) DIFFERENCES BETWEEN AMOUNTS EARNED ‘‘(iii) To other assistance awarded under this The sale of a controlled AND AMOUNTS RECEIVED.— substance: title for which a return of funds is required. Ineligibility period is: ‘‘(A) IN GENERAL.—If the student has received ‘‘(c) WITHDRAWAL DATE.— First offense ...... 2 years less grant or loan assistance than the amount ‘‘(1) IN GENERAL.—In this section, the term Second offense ...... Indefinite. earned, as calculated under paragraph (2)(B), ‘day the student withdrew’—

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00077 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7992 CONGRESSIONAL RECORD — SENATE July 10, 1998 ‘‘(A) is the date that the institution deter- ‘‘(C) Nothing in this subsection shall be con- corded in the log not later than 2 business days mines— strued to prohibit an institution of higher edu- after the information becomes available to the ‘‘(i) the student began the withdrawal process cation from utilizing electronic means to provide police or security department. prescribed by the institution; personalized exit counseling.’’. ‘‘(iii) Where there is clear and convincing evi- ‘‘(ii) the student otherwise provided official (c) DISCLOSURES REQUIRED WITH RESPECT TO dence that the release of such information notification to the institution of the intent to ATHLETICALLY RELATED STUDENT AID.—Section would jeopardize an ongoing criminal investiga- withdraw; or 485(e) (20 U.S.C. 1092(e)) is amended— tion or the safety of an individual, cause a sus- ‘‘(iii) in the case of a student who does not (1) by amending paragraph (2) to read as fol- pect to flee or evade detection, or result in the begin the withdrawal process or otherwise no- lows: destruction of evidence, such information may tify the institution of the intent to withdraw, ‘‘(2) When an institution described in para- be withheld until that damage is no longer like- the date that the payment period ends for which graph (1) offers a potential student athlete ath- ly to occur from the release of such information. aid under this title was disbursed; or letically related student aid, such institution ‘‘(iv) Notwithstanding clause (iii), an institu- ‘‘(B) for schools required to take attendance, shall provide to the student, the student’s par- tion of higher education shall record all crimi- is determined by the institution from such at- ents, the student’s guidance counselor, and the nal incidents occurring on campus and shall tendance records. student’s coach the information contained in make the reports open to public inspection not ‘‘(2) SPECIAL RULE.—Notwithstanding para- the report submitted by such institution pursu- later than 2 business days after the require- graph (1), if the institution determines that a ant to paragraph (1). If the institution is a mem- ments of clause (iii) are met.’’; student was not able to begin the withdrawal ber of a national collegiate athletic association (4) in paragraph (6) (as redesignated by para- process, or otherwise notify the institution of that compiles graduation rate data on behalf of graph (2)), by amending subparagraph (A) to the intent to withdraw, due to illness, accident, its member institutions, that the Secretary deter- read as follows: ‘‘(A) For purposes of this sec- grievous personal loss, or other such cir- mines is substantially comparable to the infor- tion the term ‘campus’ means— ‘‘(i) any building or property owned or con- cumstances beyond the student’s control, the in- mation described in the previous sentence, the trolled by an institution of higher education stitution may determine the appropriate with- distribution of the compilation to all secondary within the same reasonably contiguous geo- drawal date. schools shall fulfill the responsibility of the in- graphic area of the institution, including a ‘‘(d) PERCENTAGE OF THE PAYMENT PERIOD stitution to provide the information to a pro- building or property owned by the institution, COMPLETED.—For purposes of subsection spective student athlete’s guidance counselor but controlled by another person, such as a food (a)(2)(B)(i), the percentage of the payment pe- and coach.’’; and or other retail vendor; riod completed is determined— (2) by amending paragraph (9) to read as fol- ‘‘(1) in the case of a program that is measured ‘‘(ii) any building or property owned or con- lows: trolled by a student organization recognized by in credit hours, by dividing the total number of ‘‘(9) The reports required by this subsection the institution; calendar days comprising the payment period shall be due each July 1 and shall cover the 1- into the number of calendar days completed in ‘‘(iii) all public property that is within the year period ending August 31 of the preceding same reasonably contiguous geographic area of that period as of the day the student withdrew; year.’’. and the institution, such as a sidewalk, a street, (d) DISCLOSURE OF CAMPUS SECURITY POLICY other thoroughfare, or parking facility, that is ‘‘(2) in the case of a program that is measured AND CAMPUS CRIME STATISTICS.—Section 485(f) in clock hours, by dividing the total number of adjacent to a facility owned or controlled by the (20 U.S.C. 1092(f)) is amended— institution; clock hours comprising the payment period into (1) by amending subparagraph (F) of para- the number of clock hours completed by the stu- ‘‘(iv) any building or property (other than a graph (1) to read as follows: branch campus) owned or controlled by an insti- dent in that payment period as of the day the ‘‘(F) Statistics concerning the occurrence on student withdrew.’’. tution of higher education that is used in direct campus, during the most recent calendar year, support of, or in relation to, the institution’s SEC. 486. INSTITUTIONAL AND FINANCIAL AS- and during the 2 preceding calendar years for educational purposes, is used by students, and SISTANCE INFORMATION FOR STU- which data are available— DENTS. is not within the same reasonably contiguous ‘‘(i) of the following criminal offenses reported geographic area of the institution; and (a) INFORMATION DISSEMINATION ACTIVI- to campus security authorities or local police TIES.—Section 485(a) (20 U.S.C. 1092(a)) is ‘‘(v) all dormitories or other student residen- agencies— tial facilities owned or controlled by the institu- amended— ‘‘(I) homicide, including murder or nonneg- (1) in paragraph (1)— tion.’’; ligent manslaughter or negligent manslaughter; (A) in the second sentence, by striking ‘‘, (5) in paragraph (7) (as redesignated by sub- ‘‘(II) sex offenses, forcible or nonforcible; through appropriate publications and mailings, paragraph (B)), by inserting at the end the fol- ‘‘(III) robbery; lowing: ‘‘Such statistics shall not identify vic- to all current students, and to any prospective ‘‘(IV) aggravated assault; student upon request.’’ and inserting ‘‘upon re- tims of crimes or persons accused of crimes, ex- ‘‘(V) burglary; cept as required by State or local law.’’; and quest, through appropriate publications, mail- ‘‘(VI) motor vehicle theft; and ings, and electronic media to an enrolled stu- (6) by adding at the end the following: ‘‘(VII) arson; ‘‘(9) STUDY.— dent, and to any prospective student.’’; ‘‘(ii) of the crimes described in subclauses (I) ‘‘(A) IN GENERAL.—The Secretary, in consulta- (B) by inserting after the second sentence the through (VII), and vandalism and simple as- tion with the Attorney General, shall provide following: ‘‘Each eligible institution annually sault, that manifest evidence of prejudice based for a national study to examine procedures un- shall provide to all students enrolled at the in- on actual or perceived race, gender, religion, dertaken after an institution of higher edu- stitution, a list of the information that is re- sexual orientation, ethnicity, or disability that cation receives a report of sexual assault. quired by this section, together with a statement are reported to campus security authorities or ‘‘(B) REPORT.—The study required by sub- of the procedures required to obtain the infor- local police agencies, which data shall be col- paragraph (A) shall include an analysis of— mation.’’; lected and reported according to category of ‘‘(i) the existence and publication of the insti- (C) by amending subparagraph (F) to read as prejudice.’’; tution of higher education’s and State’s defini- follows: (2) by redesignating paragraphs (4) through tion of sexual assault; ‘‘(F) a statement of— (7) as paragraphs (5) through (8), respectively; ‘‘(ii) the existence and publication of the insti- ‘‘(i) the requirements of any refund policy (3) by inserting after paragraph (3) the fol- tution’s policy for campus sexual assaults; with which the institution is required to comply; ‘‘(iii) the individuals to whom reports of sex- ‘‘(ii) the requirements under section 484B for lowing: ‘‘(4)(A) Each institution participating in any ual assault are given most often and— the return of grant or loan assistance provided program under this title which maintains either ‘‘(I) how the individuals are trained to re- under this title; and a police or security department of any kind spond to the reports; and ‘‘(iii) the requirements for officially with- ‘‘(II) the extent to which the individuals are drawing from the institution;’’; shall make, keep, and maintain a daily log, written in a form that can be easily understood, trained; (D) in subparagraph (M)(ii), by striking ‘‘(iv) the reporting options that are articu- recording all crimes reported to such police or ‘‘and’’ after the semicolon; and lated to the victim or victims of the sexual as- security department, including— (E) in subparagraph (N), by striking the pe- sault regarding— riod and inserting ‘‘; and’’; ‘‘(i) the nature, date, time, and general loca- ‘‘(I) on-campus reporting and procedure op- (2) in paragraph (2), by inserting ‘‘an applica- tion of each crime; and tions; and tion for’’ after ‘‘concerning’’; and ‘‘(ii) the disposition of the complaint, if ‘‘(II) off-campus reporting and procedure op- (3) in paragraph (3), by amending subpara- known. tions; graph (A) to read as follows: ‘‘(B)(i) All entries that are required pursuant ‘‘(v) the resources available for victims’ safety, ‘‘(A) shall be made available by July 1 each to this paragraph shall, except where disclosure support, medical health, and confidentiality, in- year to current and prospective students prior to of such information is prohibited by law or such cluding— enrolling or entering into any financial obliga- disclosure would jeopardize the confidentiality ‘‘(I) how well the resources are articulated tion; and’’. of the victim, be open to public inspection with- both specifically to the victim of sexual assault (b) EXIT COUNSELING FOR BORROWERS.—Sec- in 2 business days of the initial report being and generally to the campus at large; and tion 485(b) (20 U.S.C. 1092(b)) is amended— made to the department or a campus security ‘‘(II) the security of the resources in terms of (1) in paragraph (1)(A), by striking ‘‘(individ- authority. confidentiality or reputation; ually or in groups)’’; and ‘‘(ii) If new information about an entry into a ‘‘(vi) policies and practices that may prevent (2) in paragraph (2), by adding at the end the log becomes available to a police or security de- or discourage the reporting of campus sexual as- following: partment, then the new information shall be re- saults to local crime authorities, or that may

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00078 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S7993 otherwise obstruct justice or interfere with the ‘‘(ii) establish any standard of care. ‘‘(I) individuals who have been found guilty prosecution of perpetrators of campus sexual as- ‘‘(B) Notwithstanding any other provision of of, or have pled guilty to, committing or partici- saults; law, evidence regarding compliance or non- pating in any criminal activity as defined in ‘‘(vii) policies and practices found successful compliance with this subsection shall not be ad- Federal, State, or local law that has occurred in aiding the report and any ensuing investiga- missible as evidence in any proceeding of any while the individual was a student in attend- tion or prosecution of a campus sexual assault; court, agency, board, or other entity, except ance, including audit or noncredit, at an edu- ‘‘(viii) the on-campus procedures for inves- with respect to an action to enforce this sub- cational institution; and tigation and disciplining the perpetrator of a section ‘‘(II) findings of guilt of criminal misconduct sexual assault, including— ‘‘(14) This subsection may be cited as the and related sanctions from any previously at- ‘‘(I) the format for collecting evidence; and ‘Jeanne Clery Disclosure of Campus Security tended educational agencies or institutions ‘‘(II) the format of the investigation and dis- Policy and Campus Crime Statistics Act’.’’. where such records were created on or after Sep- ciplinary proceeding, including the faculty re- (e) DATA REQUIRED.—Section 485(g) (20 U.S.C. tember 1, 1999;’’. sponsible for running the disciplinary procedure 1092(g)) is amended— SEC. 487. NATIONAL STUDENT LOAN DATA BANK and the persons allowed to attend the discipli- (1) in paragraph (1), by adding at the end the SYSTEM. nary procedure; and following: Section 485B (20 U.S.C. 1092b) is amended by ‘‘(ix) types of punishment for offenders, in- ‘‘(I)(i) The total revenues, and the revenues adding at the end the following: cluding— from football, men’s basketball, women’s basket- ‘‘(h) STUDENT STATUS CONFIRMATION RE- ‘‘(I) whether the case is directed outside for ball, all other men’s sports combined, and all PORT.—In order to reduce unnecessary paper- further punishment; and other women’s sports combined, derived by the work and to increase the efficient administra- ‘‘(II) how the institution punishes perpetra- institution from the institution’s intercollegiate tion, the Secretary shall assure that borrowers tors. athletics activities. under part E are included in the Student Status ‘‘(C) SUBMISSION OF REPORT.—The report re- ‘‘(ii) For the purpose of clause (i) revenues Confirmation Report in the same manner as bor- quired by subparagraph (B) shall be submitted from intercollegiate athletics activities allocable rowers under parts B and D.’’. to Congress not later than September 1, 1999. to a sport shall include, without limitation, gate SEC. 488. TRAINING IN FINANCIAL AID SERVICES. ‘‘(D) DEFINITION.—For purposes of this sec- receipts, broadcast revenues, appearance guar- Section 486 (20 U.S.C. 1093) is amended to read tion, the term ‘campus sexual assaults’ means antees and options, concessions and advertising, as follows: sexual assaults occurring at institutions of high- except that revenues such as student activities ‘‘SEC. 486. INFORMATION ON THE COSTS OF er education and sexual assaults committed fees or alumni contributions not so allocable HIGHER EDUCATION. against or by students or employees of such in- shall be included in the calculation of total rev- ‘‘(a) IN GENERAL.—For the purpose of pro- stitutions. enues only. viding comparative information to families ‘‘(E) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(J)(i) The total expenses, and the expenses about the costs of higher education— There is authorized to be appropriated to carry attributable to football, men’s basketball, wom- ‘‘(1) the National Center for Education Statis- out this section $1,000,000 for fiscal year 1999. en’s basketball, all other men’s sports combined tics shall— ‘‘(10)(A) The Secretary shall report to the ap- and all other women’s sports combined, made by ‘‘(A) develop a standard definition for the fol- propriate committees of Congress each institu- the institution for the institution’s intercolle- lowing data elements: tion of higher education that the Secretary de- giate athletics activities. ‘‘(i) Tuition and fees for a full-time under- termines is not in compliance with the reporting ‘‘(ii) For the purpose of clause (i) expenses for graduate student. requirements of this subsection. intercollegiate athletics activities allocable to a ‘‘(ii) Cost of attendance for a full-time under- ‘‘(B) The Secretary shall provide to an institu- sport shall include without limitation grants-in- graduate student, consistent with the provisions tion of higher education that the Secretary de- aid, salaries, travel, equipment, and supplies, of section 472. termines is having difficulty, or is not in compli- except that expenses such as general and ad- ‘‘(iii) Average amount of financial assistance ance, with the reporting requirements of this ministrative overhead not so allocable shall be received by an undergraduate student who at- subsection— included in the calculation of total expenses tends an institution of higher education, includ- ‘‘(i) data and analysis regarding successful only.’’. ing— practices employed by institutions of higher (2) by striking paragraph (5); ‘‘(I) each type of assistance or benefit de- education to reduce campus crime; and (3) by redesignating paragraph (4) as para- scribed in section 428(a)(2)(C)(i); ‘‘(ii) technical assistance. graph (5); and ‘‘(II) fellowships; and ‘‘(11) For purposes of reporting the statistics (4) by inserting after paragraph (3) the fol- ‘‘(III) institutional and other assistance. described in paragraphs (1)(F) and (1)(H), an lowing: ‘‘(iv) Percentage of students receiving finan- ‘‘(4) SUBMISSION; REPORT; INFORMATION institution of higher education shall distin- cial assistance described in each of subclauses AVAILABILITY.—(A) Each institution of higher guish, by means of separate categories, any (I), (II), and (III) of clause (iii); education described in paragraph (1) shall pro- ‘‘(B) report the definitions to each institution criminal offenses that occur— vide to the Secretary, within 15 days of the date of higher education and the Committee on Labor ‘‘(A) on publicly owned sidewalks, streets, or that the institution makes available the report and Human Resources of the Senate and the other thoroughfares, or in parking facilities, under paragraph (1), the information contained Committee on Education and the Workforce of that are adjacent to facilities owned by the in- in the report. the House of Representatives not later than 90 stitution; and ‘‘(B) The Secretary shall prepare a report re- days after the date of enactment of the Higher ‘‘(B) in dormitories or other residential facili- garding the information received under sub- Education Amendments of 1998; ties for students on campus. paragraph (A) for each year by April 1 of the ‘‘(C) collect information regarding the data ‘‘(12)(A) Upon determination, after reasonable year. The report shall— elements described in subparagraph (A) with re- notice and opportunity for a hearing on the ‘‘(i) summarize the information and identify spect to at least all institutions of higher edu- record, that an institution of higher education— trends in the information; cation participating in the program under this ‘‘(i) has violated or failed to carry out any ‘‘(ii) aggregate the information by divisions of title, and make available the information each provision of this subsection or any regulation the National Collegiate Athletic Association; year in a timely fashion through the integrated prescribed under this subsection; or and postsecondary education data system, beginning ‘‘(ii) has substantially misrepresented the ‘‘(iii) contain information on each individual with the information from the 1999–2000 aca- number, location, or nature of the crimes re- institution of higher education. demic year; quired to be reported under this subsection, ‘‘(C) The Secretary shall ensure that the re- ‘‘(D) provide the public notice when the infor- the Secretary shall impose a civil penalty upon port described in subparagraph (B) is made mation described in subparagraph (C) is avail- the institution of not to exceed $25,000 for each available on the Internet within a reasonable able for public inspection; and violation, failure, or misrepresentation. period of time. ‘‘(E) publish in a timely fashion a report after ‘‘(B) Any civil penalty may be compromised by ‘‘(D) The Secretary shall notify, not later the third year of collection of the information the Secretary. In determining the amount of than 180 days after the date of enactment of the described in subparagraph (C) that compares such penalty, or the amount agreed upon in Higher Education Amendments of 1998, all sec- the information described in subparagraph (C) compromise, the appropriateness of the penalty ondary schools in all States regarding the avail- longitudinally by institution, which information to the size of the institution of higher education ability of the information reported under sub- shall be presented in a form that is easily under- subject to the determination, and the gravity of paragraph (B) and the information made avail- standable, including clear definitions of the the violation, failure, or misrepresentation shall able under paragraph (1), and how such infor- data elements described in subparagraph (A), to be considered. The amount of such penalty, mation may be accessed.’’. allow parents and students to make informed when finally determined, or the amount agreed (f) GEPA AMENDMENT.—Section 444(a)(4)(B) decisions about attending college; and upon in compromise, may be deducted from any of the General Education Provisions Act (20 ‘‘(2) institutions of higher education shall pro- sums owing by the United States to the institu- U.S.C. 1232g(a)(4)(B)) is amended— vide information regarding each data element tion charged. (1) by redesignating clauses (iii) and (iv) as described in paragraph (1)(A) to the National ‘‘(13)(A) Nothing in this subsection may be clauses (iv) and (v), respectively; and Center for Education Statistics by March 1 of construed to— (2) by inserting after clause (ii) the following: each year, beginning in the year 2000. ‘‘(i) create a cause of action against any insti- ‘‘(iii) records that are maintained by local po- ‘‘(b) STUDY.— tution of higher education or any employee of lice or campus security officers of an edu- ‘‘(1) IN GENERAL.—In consultation with the such an institution for any civil liability; or cational agency or institution about— Bureau of Labor Statistics, the National Center

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00079 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7994 CONGRESSIONAL RECORD — SENATE July 10, 1998 for Education Statistics shall conduct a na- (i) in clause (i)— complete the current award year under the re- tional study of expenditures at institutions of (I) by striking ‘‘clause (ii)’’ and inserting quirements of the Quality Assurance Program. higher education. Such study shall include in- ‘‘clauses (ii) and (iii)’’; ‘‘(4) REVIEW AND EVALUATION.—The Secretary formation about— (II) by striking ‘‘State review entities referred shall review and evaluate the Quality Assur- ‘‘(A) expenditures for— to in’’ and inserting ‘‘appropriate State agency ance Program conducted by each participating ‘‘(i) faculty salaries and benefits; notifying the Secretary under’’; and institution and, on the basis of that evaluation, ‘‘(ii) administrative salaries, benefits, and ex- (III) by striking ‘‘or’’ after the semicolon; make recommendations regarding amendments penses; (ii) in clause (ii), by inserting ‘‘or’’ after the to this Act that will streamline the administra- ‘‘(iii) academic support services; semicolon; and tion and enhance the integrity of Federal stu- ‘‘(iv) research; (iii) by adding at the end the following: dent assistance programs. Such recommenda- ‘‘(v) operations and maintenance; ‘‘(iii) with regard to an eligible institution tions shall be submitted to the Committee on ‘‘(vi) construction; and (other than an eligible institution described in Labor and Human Resources of the Senate and ‘‘(vii) technology; section 481(a)(1)(C)) that has obtained less than the Committee on Education and the Workforce ‘‘(B) the replacement cost of instructional $200,000 in funds under this title during each of of the House of Representatives. buildings and equipment; the 2 award years that precede the audit period ‘‘(b) REGULATORY IMPROVEMENT AND STREAM- ‘‘(C) how the expenditures described in sub- and submits a letter of credit payable to the Sec- LINING EXPERIMENTS.— paragraph (A) change over time; and retary equal to not less than 1⁄2 of the annual ‘‘(1) IN GENERAL.—The Secretary shall review ‘‘(D) how the expenditures described in sub- potential liabilities of such institution as deter- and evaluate the experience of institutions par- paragraph (A) and the replacement cost de- mined by the Secretary, deeming an audit con- ticipating as experimental sites during the pe- scribed in subparagraph (B) relate to college ducted every 3 years to satisfy the requirements riod of 1993 through 1998 under this section (as costs. of clause (i), except for the award year imme- such section was in effect on the day before the ‘‘(2) FINAL REPORT.—The National Center for diately preceding renewal of the institution’s date of enactment of the Higher Education Education Statistics shall submit a report re- eligibility under section 498(g);’’; Amendments of 1998), and shall submit a report garding the findings of the study required by (B) in paragraph (4), by striking ‘‘, after con- based on this review and evaluation to the Com- paragraph (1) to the Committee on Labor and sultation with each State review entity des- mittee on Labor and Human Resources of the Human Resources of the Senate and the Com- ignated under subpart 1 of part H,’’; and Senate and the Committee on Education and the mittee on Education and the Workforce of the (C) in paragraph (5), by striking ‘‘State review Workforce of the House of Representatives not House of Representatives not later than Sep- entities designated’’ and inserting ‘‘State agen- later than 6 months after the enactment of the tember 30, 2001. cies notifying the Secretary’’. Higher Education Amendments of 1998. Such re- ‘‘(c) HIGHER EDUCATION MARKET BASKET.—In (b) PROVISION OF VOTER REGISTRATION port shall include— consultation with the Bureau of Labor Statis- FORMS.— ‘‘(A) a list of participating institutions and tics, the National Center for Education Statis- (1) PROGRAM PARTICIPATION REQUIREMENT.— the specific statutory or regulatory waivers tics shall develop a Higher Education Market Section 487(a) (20 U.S.C. 1094(a)) is amended by granted to each institution; ‘‘(B) the findings and conclusions reached re- Basket that identifies the items that comprise adding at the end the following: garding each of the experiments conducted; and the costs of higher education. The National ‘‘(23) The institution, if located in a State to which section 113 applies, will make a good ‘‘(C) recommendations for amendments to im- Center for Education Statistics shall provide a prove and streamline this Act, based on the re- report on the market basket to the Committee on faith effort to provide a mail voter registration form, received from such State, to each student sults of the experiment. Labor and Human Resources of the Senate and ‘‘(2) SELECTION.— enrolled in a degree or certificate program and the Committee on Education and the Workforce ‘‘(A) IN GENERAL.—The Secretary is author- of the House of Representatives not later than in attendance at the institution and to make ized to select a limited number of institutions for September 30, 2002. such forms widely available to students at the voluntary participation as experimental sites to ‘‘(d) FINES.—In addition to the actions au- institution.’’. provide recommendations to the Secretary on (2) REGULATION PROHIBITED.—No officer of thorized in section 487(c), the Secretary may im- the impact and effectiveness of proposed regula- the executive branch is authorized to instruct pose a fine in an amount not to exceed $25,000 tions or new management initiatives, except that the State in the manner in which the amend- on an institution of higher education for failure additional institutions may not be selected by ment made by this subsection is carried out. to provide the information described in sub- the Secretary until the report required by sub- section (a)(2) in a timely or accurate manner, or SEC. 490. REGULATORY RELIEF AND IMPROVE- section (b)(1) has been submitted to Congress. MENT. for failure to otherwise cooperate with the Na- ‘‘(B) CONSULTATION.—Prior to approving any tional Center for Education Statistics regarding Section 487A (20 U.S.C. 1094a) is amended to additional experimental sites, the Secretary efforts to obtain data on the cost of higher edu- read as follows: shall consult with the Committee on Labor and cation under such subsection.’’. ‘‘SEC. 487A. REGULATORY RELIEF AND IMPROVE- Human Resources of the Senate and the Com- SEC. 489. PROGRAM PARTICIPATION AGREE- MENT. mittee on Education and the Workforce of the MENTS. ‘‘(a) QUALITY ASSURANCE PROGRAM.— House of Representatives and shall provide— (a) IN GENERAL.—Section 487 (20 U.S.C. 1094) ‘‘(1) IN GENERAL.—The Secretary is authorized ‘‘(i) a list of institutions proposed for partici- is amended— to select institutions for voluntary participation pation in the experiment and the specific statu- (1) in subsection (a)— in a Quality Assurance Program that provides tory or regulatory waivers proposed to be grant- (A) in paragraph (3)— participating institutions with an alternative ed to each institution; (i) by striking subparagraph (B); and management approach through which indi- ‘‘(ii) the objectives to be achieved through the (ii) by redesignating subparagraphs (C) and vidual schools develop and implement their own experiment; and (D) as subparagraphs (B) and (C), respectively; comprehensive systems, including processing ‘‘(iii) the period of time over which the experi- (B) in paragraph (9), by striking ‘‘part B’’ and disbursement of student financial aid, ment is to be conducted. and inserting ‘‘part B or D’’; verification of student financial aid application ‘‘(C) WAIVERS.—The Secretary is authorized (C) in paragraph (14)— data, and entrance and exit interviews, thereby to waive, for any institution participating as an (i) in subparagraph (A), by striking ‘‘part B’’ enhancing program integrity within the student experimental site under subparagraph (A), any and inserting ‘‘part B or D’’; and aid delivery system. The Quality Assurance Pro- requirements in this title, or regulations pre- (ii) in subparagraph (B)— gram authorized by this section shall be based scribed under this title, that will bias experi- (I) by inserting ‘‘for-profit’’ after ‘‘Any’’; on criteria that include demonstrated institu- mental results. (II) by striking ‘‘and any eligible institution tional performance, as determined by the Sec- ‘‘(c) REGULATORY AND STATUTORY RELIEF FOR which’’ and inserting ‘‘or’’; and retary, and shall take into consideration current SMALL VOLUME INSTITUTIONS.—The Secretary, (III) by striking ‘‘part B’’ and inserting ‘‘part quality assurance goals, as determined by the following discussions with representatives of eli- B or D’’; Secretary. gible institutions (other than eligible institutions (D) in paragraph (15), by striking ‘‘State re- ‘‘(2) WAIVER.—The Secretary is authorized to described in section 481(a)(1)(C)) that have ob- view entities’’ and inserting ‘‘the State agen- waive for any institution participating in the tained in each of the 2 most recent award years cies’’; Quality Assurance Program any regulations prior to the date of enactment of the Higher (E) by striking paragraph (18); dealing with reporting or verification require- Education Amendments of 1998 less than (F) by redesignating paragraphs (19) through ments in this title that are addressed by the in- $200,000 in funds through this title, shall review (22) as paragraphs (18) through (21), respec- stitution’s alternative management system, and and evaluate ways in which regulations under tively; and may substitute such quality assurance reporting and provisions of this Act affecting the institu- (G) by amending paragraph (20) (as redesig- as the Secretary determines necessary to ensure tions may be improved, streamlined, or elimi- nated by subparagraph (F)) to read as follows: accountability and compliance with the pur- nated, and shall submit, not later than 1 year ‘‘(20) The institution will meet the require- poses of the programs under this title. after the enactment of the Higher Education ments established by the Secretary and accred- ‘‘(3) DETERMINATION.—The Secretary is au- Amendments of 1998, a report to the Committee iting agencies or associations, and will provide thorized to determine— on Labor and Human Resources of the Senate evidence to the Secretary that the institution ‘‘(A) when an institution that is unable to ad- and the Committee on Education and the Work- has the authority to operate within a State.’’; minister the Quality Assurance Program shall force of the House of Representatives detailing and be removed from such program; and the Secretary’s findings and recommendations, (2) in subsection (c)— ‘‘(B) when institutions desiring to cease par- including a timetable for implementation of any (A) in paragraph (1)(A)— ticipation in such program will be required to recommended changes.

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‘‘(d) DEFINITIONS.—For purposes of this sec- ‘‘(c) APPLICATION.— those policies which present impediments to the tion, the term ‘current award year’ is defined as ‘‘(1) IN GENERAL.—Each institution or con- development and use of distance education and the award year during which the participating sortia of institutions desiring to participate in a other nontraditional methods of expanding ac- institution indicates the institution’s intention demonstration program under this section shall cess to education. to cease participation.’’. submit an application to the Secretary at such ‘‘(3) REPORTS.— SEC. 490A. DISTANCE EDUCATION DEMONSTRA- time and in such manner as the Secretary may ‘‘(A) IN GENERAL.—Within 18 months of the TION PROGRAMS. require. initiation of the demonstration program, the Part G (20 U.S.C. 1088 et seq.) is amended by ‘‘(2) CONTENTS.—Each application shall in- Secretary shall report to the Committee on inserting after section 487B (20 U.S.C. 1094a) the clude— Labor and Human Resources of the Senate and following: ‘‘(A) a description of the institution or consor- the Committee on Education and the Workforce tium’s consultation with a recognized accred- ‘‘SEC. 487C. DISTANCE EDUCATION DEMONSTRA- of the House of Representatives with respect TION PROGRAMS. iting agency or association with respect to qual- to— ‘‘(a) PURPOSE.—It is the purpose of this sec- ity assurances for the distance education pro- ‘‘(i) the evaluations of the demonstration pro- tion— grams to be offered; grams authorized under this section; and ‘‘(1) to allow demonstration programs that are ‘‘(B) a description of the statutory and regu- ‘‘(ii) any proposed statutory changes designed strictly monitored by the Department to test the latory requirements described in subsection to enhance the use of distance education. DDITIONAL REPORTS.—The Secretary quality and viability of expanded distance edu- (b)(2) for which a waiver is sought and the rea- ‘‘(B) A shall provide additional reports to the Com- cation programs currently restricted under this sons for which the waiver is sought; mittee on Labor and Human Resources of the Act; ‘‘(C) a description of the distance education programs to be offered; Senate and the Committee on Education and the ‘‘(2) to help determine the specific statutory ‘‘(D) a description of the students to whom Workforce of the House of Representatives on and regulatory requirements which should be distance education programs will be offered; an annual basis regarding— altered to provide greater access to high quality ‘‘(E) an assurance that the institution or con- ‘‘(i) the demonstration programs authorized distance education programs; and sortium will offer full cooperation with the on- under this section; and ‘‘(3) to help determine the appropriate level of going evaluations of the demonstration program ‘‘(ii) the number and types of students receiv- Federal assistance for students enrolled in dis- provided for in this section; and ing assistance under this title for instruction tance education programs. ‘‘(F) such other information as the Secretary leading to a recognized certificate, as provided ‘‘(b) DEMONSTRATION PROGRAMS AUTHOR- may require. for in section 484(l)(1), including the progress of IZED.— ‘‘(d) SELECTION.— such students toward recognized certificates and ‘‘(1) IN GENERAL.—The Secretary, in accord- ‘‘(1) IN GENERAL.—For the first year of the the degree to which participation in such pro- ance with the provisions of subsection (d), is au- demonstration program authorized under this grams leading to such certificates increased. thorized to select institutions of higher edu- section, the Secretary is authorized to select for ‘‘(g) INDEPENDENT EVALUATION.— cation or consortia of such institutions for vol- participation in the program not more than 15 ‘‘(1) IN GENERAL.—The Secretary shall enter untary participation in a Distance Education institutions, systems of institutions, or consortia into a contract with the National Academy of Demonstration Program that provides partici- of institutions. For the third year of the dem- Sciences to study the quality of and student pating institutions with the ability to offer dis- onstration program authorized under this title, learning outcomes in distance education pro- tance education programs that do not meet all the Secretary may select not more than 35 insti- grams. Such study shall include— or a portion of the sections or regulations de- tutions, systems, or consortia, in addition to the ‘‘(A) identification of the elements by which scribed in paragraph (2). institutions, systems, or consortia selected pur- quality in distance education can be assessed, ‘‘(2) WAIVERS.—The Secretary is authorized to suant to the preceding sentence, to participate such as subject matter, interactivity, and stu- waive for any institution of higher education, in the demonstration program if the Secretary dent outcomes; and system of institutions of higher education, or determines that such expansion is warranted ‘‘(B) identification of the types of students consortium participating in a Distance Edu- based on the evaluations conducted in accord- which can most benefit from distance education cation Demonstration Program, the require- ance with subsections (f) and (g). in areas such as access to higher education, per- ments of section 472(5) as the section relates to ‘‘(2) CONSIDERATIONS.—In selecting institu- sistence, and graduation. computer costs, sections 481(d) and 481(e) as tions to participate in the demonstration pro- ‘‘(2) SCOPE.—Such study shall include dis- such sections relate to requirements for a min- gram in the first or succeeding years of the pro- tance education programs offered by the institu- imum number of weeks of instruction, sections gram, the Secretary shall take into account— tions or consortia participating in the dem- 472(10), 481(a)(3)(A), 481(a)(3)(B), 484(l)(1), or 1 ‘‘(A) the number and quality of applications onstration program authorized by this section, or more of the regulations prescribed under this received; as well as the distance education programs of- part or part F which inhibit the operation of ‘‘(B) the Department’s capacity to oversee and fered by other institutions. quality distance education programs. monitor each institution’s participation; and ‘‘(3) INTERIM AND FINAL REPORTS.—The Sec- ‘‘(3) SPECIAL RULES.— ‘‘(C) an institution’s— retary shall request that the National Academy ‘‘(A) ELIGIBLE INSTITUTIONS.—Only an insti- ‘‘(i) financial responsibility; of Sciences submit an interim report to the Sec- tution of higher education that provides at least ‘‘(ii) administrative capability; and retary, the Committee on Labor and Human Re- a 2-year, or 4-year program of instruction for ‘‘(iii) program or programs being offered via sources of the Senate, and the Committee on which the institution awards an associate or a distance education. Education and the Workforce of the House of baccalaureate degree, or provides a graduate de- ‘‘(e) NOTIFICATION.—The Secretary shall make Representatives not later than December 31, gree, shall be eligible to participate in the dem- available to the public and to the Committee on 2000, and a final report not later than December onstration program authorized under this sec- Labor and Human Resources of the Senate and 31, 2002, regarding the study. tion. the Committee on Education and the Workforce ‘‘(4) FUNDING.—The Secretary shall make ‘‘(B) PROHIBITION.—An institution of higher of the House of Representatives a list of institu- available not more than $1,000,000 for the study education described in section 481(a)(1)(C) shall tions or consortia selected to participate in the required by this subsection. not be eligible to participate in the demonstra- demonstration program authorized by this sec- ‘‘(h) OVERSIGHT.—In conducting the dem- tion program authorized under this section. tion. Such notice shall include a listing of the onstration program authorized under this sec- ‘‘(C) SPECIAL RULE.—Subject to subparagraph specific statutory and regulatory requirements tion, the Secretary shall, on a continuing (B), an institution of higher education that being waived for each institution or consortia basis— meets the requirements of subsection (a) of sec- and a description of the distance education ‘‘(1) assure compliance of institutions or con- tion 481, other than the requirement of para- courses to be offered. sortia with the requirements of this title (other graph (3)(A) or (3)(B) of such subsection, shall ‘‘(f) EVALUATIONS AND REPORTS.— than the sections and regulations that are be eligible to participate in the demonstration ‘‘(1) EVALUATION.—The Secretary, on an an- waived under subsection (b)(2)); program authorized under this section. nual basis, shall evaluate the demonstration ‘‘(2) provide technical assistance; ‘‘(D) REQUIREMENT.—Notwithstanding any programs authorized under this section. Such ‘‘(3) monitor fluctuations in the student popu- other provision of this paragraph, Western Gov- evaluations shall specifically review— lation enrolled in the participating institutions ernors University shall be considered eligible to ‘‘(A) the number and types of students partici- or consortia; and participate in the demonstration program au- pating in the programs being offered, including ‘‘(4) consult with appropriate accrediting thorized under this section, and the Secretary the progress of participating students toward agencies or associations and appropriate State may, in addition to the waivers described in recognized associate, bachelor’s, or graduate de- regulatory authorities. paragraph (2), waive for such university such grees, and the degree to which participation in ‘‘(i) DEFINITION.—For the purpose of this sec- other requirements of this title as the Secretary such programs increased; tion, the term ‘distance education’ means an determines to be appropriate because of the ‘‘(B) issues related to student financial assist- educational process that is characterized by the unique characteristics of such university. In ance for distance education; and separation, in time or place, between instructor carrying out the preceding sentence, the Sec- ‘‘(C) the extent to which statutory or regu- and student. Distance education may include retary shall ensure that adequate program in- latory requirements not waived under the dem- courses offered principally through the use of— tegrity and accountability measures apply to onstration program present difficulties for stu- ‘‘(1) television, audio, or computer trans- such university’s participation in the dem- dents or institutions. mission, such as open broadcast, closed circuit, onstration program authorized under this sec- ‘‘(2) POLICY ANALYSIS.—In addition, the Sec- cable, microwave, or satellite transmission; tion. retary shall review current policies and identify ‘‘(2) audio or computer conferencing;

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00081 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7996 CONGRESSIONAL RECORD — SENATE July 10, 1998 ‘‘(3) video cassettes or discs; or (A) in paragraph (1)— ‘‘(3) notify the Secretary promptly whenever ‘‘(4) correspondence.’’. (i) by inserting ‘‘D,’’ after ‘‘B,’’; and the State has credible evidence that an institu- SEC. 490B. ADVISORY COMMITTEE ON STUDENT (ii) by striking ‘‘Such meetings shall include’’ tion of higher education within the State— FINANCIAL ASSISTANCE. and inserting ‘‘The Secretary shall obtain the ‘‘(A) has committed fraud in the administra- Section 491 (20 U.S.C. 1098) is amended— advice of and recommendations from’’; and tion of the student assistance programs author- (1) in subsection (b)— (B) in paragraph (2)— ized by this title; or (A) in the second sentence, by striking ‘‘and (i) by striking ‘‘During such meetings the’’ ‘‘(B) has substantially violated a provision of expenditures’’ and inserting ‘‘, expenditures and and inserting ‘‘The’’; this title. (ii) by inserting ‘‘D,’’ after ‘‘B,’’; and ‘‘(b) INSTITUTIONAL RESPONSIBILITY.—Each staffing levels’’; and (iii) by striking ‘‘1992’’ and inserting ‘‘1998 institution of higher education shall provide evi- (B) by inserting after the third sentence the through such mechanisms as regional meetings dence to the Secretary that the institution has following: ‘‘Reports, publications, and other and electronic exchanges of information’’; and authority to operate within a State at the time documents, including such reports, publications, (2) in subsection (b)— and documents in electronic form, shall not be (A) by striking ‘‘After’’ and inserting the fol- the institution is certified under subpart 3.’’. subject to review by the Secretary.’’; lowing: SEC. 492. ACCREDITING AGENCY RECOGNITION. (2) in subsection (e)— ‘‘(1) IN GENERAL.—After’’; (a) AMENDMENTS TO HEADINGS.—Subpart 2 of (A) by redesignating paragraphs (3), (4), and (B) in paragraph (1) (as redesignated by sub- part H of title IV (20 U.S.C. 1099b et seq.) is (5), as paragraphs (4), (5), and (6), respectively; paragraph (A))— amended— and (i) by striking ‘‘holding regional meetings’’ (1) in the subpart heading, by striking ‘‘Ap- (B) by inserting after paragraph (2) the fol- and inserting ‘‘obtaining the advice and rec- proval’’ and inserting ‘‘Recognition’’; and lowing: ommendations described in subsection (a)(1)’’; (2) in the heading for section 496, by striking ‘‘(3) No officers or full-time employees of the (ii) by inserting ‘‘D,’’ after ‘‘B,’’; ‘‘approval’’ and inserting ‘‘recognition’’. Federal Government shall serve as members of (iii) by striking ‘‘1992’’ and inserting ‘‘1998’’; (b) RECOGNITION OF ACCREDITING AGENCY OR the Advisory Committee.’’; and ASSOCIATION.—Section 496 (20 U.S.C. 1099b) is (3) in subsection (g), by striking ‘‘(1) Mem- (iv) by striking ‘‘The Secretary shall follow amended— bers’’ and all that follows through ‘‘of the the guidance provided in sections 305.82–4 and (1) in the heading for subsection (a), by strik- United States may’’ and inserting ‘‘Members of 305.85–5 of chapter 1, Code of Federal Regula- ing ‘‘STANDARDS’’ and inserting ‘‘CRITERIA’’; the Advisory Committee may’’; tions, and any successor recommendation, regu- (2) in subsection (a)— (4) in subsection (h)(1)— lation, or law.’’; and (A) in the matter preceding paragraph (1), by (A) by inserting ‘‘determined’’ after ‘‘as may (C) by adding at the end the following: striking ‘‘standards’’ each place the term ap- ‘‘(2) EXPANSION OF NEGOTIATED RULEMAKING be’’; and pears and inserting ‘‘criteria’’; IN STUDENT LOAN PROGRAMS.—All regulations (B) by adding at the end the following: ‘‘The (B) in paragraph (4)— pertaining to the student assistance programs in Advisory Committee may appoint not more than (i) by striking ‘‘at the institution’’ and insert- parts B, D, G, and H, that are promulgated 1 full-time equivalent, nonpermanent, consult- ing ‘‘offered by the institution’’; and after the date of enactment of this paragraph, ant without regard to the provisions of title 5, (ii) by inserting ‘‘, including distance edu- shall be subject to the negotiated rulemaking United States Code. The Advisory Committee cation courses or programs,’’ after ‘‘higher edu- process, unless the Secretary determines that ex- shall not be required by the Secretary to reduce cation’’; and ceptional circumstances exist making negotiated personnel to meet agency personnel reduction (C) in paragraph (5)— rulemaking unnecessary or inadvisable with re- goals.’’; (i) by striking subparagraph (I); spect to given regulations and publishes the (5) in subsection (i), by striking ‘‘$750,000’’ (ii) by redesignating subparagraphs (A) basis for such determination in the Federal Reg- and inserting ‘‘$800,000’’; through (H) as subparagraphs (B) through (I), ister at the same time as the proposed regula- (6) by amending subsection (j) to read as fol- respectively; tions in questions are first published. All pub- lows: (iii) by inserting before subparagraph (B) the lished proposed regulations shall conform, un- ‘‘(j) SPECIAL ANALYSES AND ACTIVITIES.—The following: less impracticable, to agreements resulting from Advisory Committee shall— ‘‘(A) success with respect to student achieve- such negotiated rulemaking. Such negotiated ‘‘(1) monitor and evaluate the modernization ment in relation to the institution’s mission, in- rulemaking shall be conducted in accordance of student financial aid systems and delivery cluding, as appropriate, consideration of course with the provisions of paragraph (1).’’. processes, including the implementation of a completion, State licensing examination, and job performance-based organization within the De- SEC. 490D. PROCEDURES FOR CANCELLATIONS placement rates;’’; partment, and report to Congress regarding such AND DEFERMENTS FOR ELIGIBLE DISABLED VETERANS. (iv) in subparagraph (I) (as redesignated by modernization on not less than an annual basis, Part G of title IV (20 U.S.C. 1088 et seq.) is clause (ii)), by striking ‘‘in clock hours or credit including recommendations for improvement; amended by adding at the end the following: hours’’; and ‘‘(2) assess the adequacy of current methods (v) in subparagraph (L)— for disseminating information about programs ‘‘SEC. 493A. PROCEDURES FOR CANCELLATIONS AND DEFERMENTS FOR ELIGIBLE (I) by inserting ‘‘record of’’ before ‘‘compli- under this title and recommend improvements, DISABLED VETERANS. ance’’; as appropriate, regarding early needs assess- ‘‘The Secretary, in consultation with the Sec- (II) by striking ‘‘Act, including any’’ and in- ment and information for first-year secondary retary of Veterans Affairs, shall develop and im- serting ‘‘Act based on the’’; school students; plement a procedure to permit Department of (III) by inserting ‘‘any’’ after ‘‘reviews, and’’; ‘‘(3) assess and make recommendations con- Veterans Affairs physicians to provide the cer- and cerning the feasibility and degree of use of ap- tifications and affidavits needed to enable dis- (IV) in the matter following subparagraph propriate technology in the application for, and abled veterans enrolled in the Department of (L), by striking ‘‘(G),’’; delivery and management of, financial assist- Veterans Affairs health care system to document (3) by amending paragraph (1) of subsection ance under this title, as well as policies that such veterans’ eligibility for deferments or can- (l) to read as follows: ‘‘(1)(A)(i) If the Secretary promote use of such technology to reduce cost cellations of student loans made, insured, or determines that an accrediting agency or asso- and enhance service and program integrity, in- guaranteed under this title. Not later than 6 ciation has failed to apply effectively the stand- cluding electronic application and reapplica- months after the date of enactment of the High- ards in this section, or is otherwise not in com- tion, just-in-time delivery of funds, reporting of er Education Amendments of 1998, the Secretary pliance with the requirements of this section, disbursements and reconciliation; and the Secretary of Veterans Affairs jointly the Secretary shall— ‘‘(4) assess the implications of distance edu- shall report to Congress on the progress made in ‘‘(I) after notice and opportunity for a hear- cation on student eligibility and other require- developing and implementing the procedure.’’. ing, limit, suspend, or terminate the approval of ments for financial assistance under this title, the agency or association; or PART H—PROGRAM INTEGRITY TRIAD and make recommendations that will enhance ‘‘(II) require the agency or association to take access to postsecondary education through dis- SEC. 491. STATE ROLE AND RESPONSIBILITIES. appropriate action to bring the agency or asso- tance education while maintaining access, Subpart 1 of part H of title IV (20 U.S.C. 1099a ciation into compliance with such requirements through on-campus instruction at eligible insti- et seq.) is amended to read as follows: within a timeframe specified by the Secretary, tutions, and program integrity; and ‘‘Subpart 1—State Role except that— ‘‘(5) make recommendations to the Secretary ‘‘SEC. 495. STATE RESPONSIBILITIES. ‘‘(aa) such timeframe shall not exceed 12 regarding redundant or outdated provisions of ‘‘(a) STATE RESPONSIBILITIES.—As part of the months unless the Secretary extends such period and regulations under this Act, consistent with integrity program authorized by this part, each for good cause; and the Secretary’s requirements under section State, through 1 State agency or several State ‘‘(bb) if the agency or association fails to 498A(b)(3).’’; agencies selected by the State, shall— bring the agency or association into compliance (7) in subsection (k), by striking ‘‘1998’’ and ‘‘(1) furnish the Secretary, upon request, in- within such timeframe, the Secretary shall, after inserting ‘‘2004’’; and formation with respect to the process for licens- notice and opportunity for a hearing, limit, sus- (8) by repealing subsection (l). ing or other authorization for institutions of pend, or terminate the approval of the agency or SEC. 490C. REGIONAL MEETINGS AND NEGO- higher education to operate within the State; association.’’; and TIATED RULEMAKING. ‘‘(2) notify the Secretary promptly whenever (4) in subsection (n)(3), by adding at the end Section 492 (20 U.S.C. 1098a) is amended— the State revokes a license or other authority to the following: ‘‘When the Secretary decides to (1) in subsection (a)— operate an institution of higher education; and recognize an accrediting agency or association,

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If the agency or and inserting ‘‘may’’; and inserting the following: association reviews institutions offering distance (3) in the third sentence, strike ‘‘may’’ and in- ‘‘(F) such other institutions that the Secretary education courses or programs and the Sec- sert ‘‘shall’’; and determines may pose a significant risk of failure retary determines that the agency or association (4) by striking the fourth sentence. to comply with the administrative capability or meets the requirements of this section, then the (e) TIME LIMITATIONS ON, AND RENEWAL OF, financial responsibility provisions of this title; agency shall be recognized and the scope of rec- ELIGIBILITY.—Subsection (g) of section 498 (20 and’’; and ognition shall include accreditation of institu- U.S.C. 1099c) is amended to read as follows: (B) in paragraph (3)(A), by inserting ‘‘rel- tions offering distance education courses or pro- ‘‘(g) TIME LIMITATIONS ON, AND RENEWAL OF, evant’’ after ‘‘all’’; and grams.’’. ELIGIBILITY.— (2) by amending subsection (b) to read as fol- lows: SEC. 493. ELIGIBILITY AND CERTIFICATION PRO- ‘‘(1) GENERAL RULE.—After the expiration of ‘‘(b) SPECIAL ADMINISTRATIVE RULES.— CEDURES. the certification of any institution under the ‘‘(1) IN GENERAL.—In carrying out paragraphs (a) SINGLE APPLICATION FORM.—Section schedule prescribed under this section (as in ef- (1) and (2) of subsection (a) and any other rel- 498(b) (20 U.S.C. 1099c(b)) is amended— fect prior to the enactment of the Higher Edu- (1) in paragraph (1), by striking ‘‘and capa- evant provisions of this title, the Secretary cation Act Amendments of 1998), or upon re- shall— bility’’ and inserting ‘‘financial responsibility, quest for initial certification from an institution and administrative capability’’; ‘‘(A) establish guidelines designed to ensure not previously certified, the Secretary may cer- uniformity of practice in the conduct of program (2) by amending paragraph (3) to read as fol- tify the eligibility for the purposes of any pro- lows: reviews of institutions of higher education; gram authorized under this title of each such in- ‘‘(3) requires— ‘‘(B) make available to each institution par- ‘‘(A) a description of the third party servicers stitution for a period not to exceed 6 years. ticipating in programs authorized under this of an institution of higher education; and ‘‘(2) NOTIFICATION.—The Secretary shall no- title complete copies of all review guidelines and ‘‘(B) the institution to maintain a copy of any tify each institution of higher education not procedures used in program reviews; contract with a financial aid service provider or later than 6 months prior to the date of the expi- ‘‘(C) permit the institution to correct or cure loan servicer, and provide a copy of any such ration of the institution’s certification. an administrative, accounting, or recordkeeping contract to the Secretary upon request;’’; ‘‘(3) INSTITUTIONS OUTSIDE THE UNITED error if the error is not part of a pattern of error (3) in paragraph (4), by striking the period STATES.—The Secretary shall promulgate regula- and there is no evidence of fraud or misconduct and inserting ‘‘; and’’; and tions regarding the recertification requirements related to the error; (4) by adding at the end the following: applicable to an institution of higher education ‘‘(D) base any civil penalty assessed against ‘‘(5) provides, at the option of the institution, outside of the United States that meets the re- an institution of higher education resulting for participation in 1 or more of the programs quirements of section 481(a)(1)(C) and received from a program review or audit on the gravity under part B or D.’’. less than $500,000 in funds under part B for the of the violation, failure, or misrepresentation; (b) FINANCIAL RESPONSIBILITY STANDARDS.— most recent year for which data are available.’’. and Section 498(c) (20 U.S.C. 1099c(c)) is amended— (f) PROVISIONAL CERTIFICATION.—Section ‘‘(E) inform the appropriate State and accred- (1) in paragraph (2), by striking ‘‘with respect 498(h) (20 U.S.C. 1099c(h)) is amended— iting agency or association whenever the Sec- to operating losses, net worth, asset to liabilities (1) in paragraph (1)(B)(ii), by striking ‘‘an eli- retary takes action against an institution of ratios, or operating fund deficits’’ and inserting gible’’ and inserting ‘‘a for-profit eligible’’; and higher education under this section, section 498, ‘‘regarding ratios that demonstrate financial re- (2) in paragraph (2), by striking ‘‘the ap- or section 432. sponsibility,’’; proval’’ and inserting ‘‘the recognition’’. ‘‘(2) UNIFORMITY OF APPLICATION OF REGULA- (2) in paragraph (3)(A), by striking ‘‘Secretary (g) TREATMENT OF CHANGES OF OWNERSHIP.— TIONS.—The Secretary shall review the regula- third party’’ and all that follows through ‘‘pay- Section 498(i) (20 U.S.C. 1099c(i)) is amended— tions of the Department and the application of able to the Secretary’’ and inserting ‘‘Secretary (1) in the subsection heading, by inserting ‘‘OF such regulations to ensure the uniformity of in- any third party guarantees, which the Secretary FOR-PROFIT INSTITUTIONS’’ after ‘‘OWNERSHIP’’; terpretation and application of the regulations. determines are reasonable, that’’; and and ‘‘(3) NONDUPLICATION AND COORDINATION.— (3) in paragraph (4)— (2) in paragraph (2)— The Secretary shall establish a process for en- (A) in the matter preceding subparagraph (A), (A) in subparagraph (A), by inserting ‘‘for- suring that eligibility and compliance issues, by striking ‘‘ratio of current assets to current li- profit’’ before ‘‘institution’’; such as institutional audit, program review, and abilities’’ and inserting ‘‘criteria’’; and (B) in subparagraph (C), by striking ‘‘two’’ recertification, are considered simultaneously, (B) in subparagraph (C), by striking ‘‘current and shall establish a process for identifying un- operating ratio requirement’’ and inserting ‘‘cri- and inserting ‘‘a for-profit institution with one’’; necessary duplication of reporting and related teria’’. regulatory requirements. In developing such (c) FINANCIAL GUARANTEES FROM OWNERS.— (C) in subparagraph (D), by inserting ‘‘for- profit’’ before ‘‘institutions’’; processes, the Secretary shall consult with rel- Section 498(e) (20 U.S.C. 1099c(e)) is amended— evant representatives of institutions partici- (1) in the subsection heading, by inserting ‘‘OF (D) in subparagraph (E), by inserting ‘‘for- pating in the programs authorized by this FOR-PROFIT INSTITUTIONS’’ after ‘‘OWNERS’’; profit’’ before ‘‘institutions’’; and title.’’. (2) in paragraph (1)(A), by striking ‘‘from an’’ (E) in subparagraph (F), by inserting ‘‘for- and inserting ‘‘from a for-profit’’; profit’’ before ‘‘institution’’. PART I—ADMINISTRATIVE PROVISIONS (3) in paragraph (2)— (h) TREATMENT OF BRANCHES.—The second FOR DELIVERY OF STUDENT FINANCIAL (A) in the matter preceding clause (i) of sub- sentence of section 498(j)(1) (20 U.S.C. ASSISTANCE paragraph (A), by inserting ‘‘for-profit’’ after 1099c(j)(1)) is amended by inserting ‘‘after the SEC. 495. PERFORMANCE-BASED ORGANIZATION ‘‘or more’’; branch is certified by the Secretary as a branch FOR THE DELIVERY OF FEDERAL (B) in subparagraph (B), by inserting ‘‘for- campus participating in a program under title STUDENT FINANCIAL ASSISTANCE. profit’’ after ‘‘or more’’; IV,’’ after ‘‘2 years’’. Title IV (20 U.S.C. 1070 et seq.) is amended by (4) in paragraph (3), by striking ‘‘operation adding at the end the following: SEC. 494. PROGRAM REVIEW AND DATA. of, an institution or’’ and inserting ‘‘operation ‘‘PART I—ADMINISTRATIVE PROVISIONS of, a for-profit institution or the’’; and Section 498A (20 U.S.C. 1099c–1) is amended— (1) in subsection (a)— FOR DELIVERY OF STUDENT FINANCIAL (5) by adding at the end the following: ASSISTANCE ‘‘(6) Notwithstanding any other provision of (A) in paragraph (2)— law, any individual, whom the Secretary deter- (i) in the matter preceding subparagraph (A), ‘‘SEC. 499. PERFORMANCE-BASED ORGANIZATION by striking ‘‘may’’ and inserting ‘‘shall’’; FOR THE DELIVERY OF FEDERAL mines, in accordance with paragraph (2), exer- STUDENT FINANCIAL ASSISTANCE. (ii) by amending subparagraph (C) to read as cises substantial control over an institution par- ‘‘(a) ESTABLISHMENT.—The Secretary shall es- follows: ticipating in, or seeking to participate in, a pro- tablish in the Department a performance-based ‘‘(C) institutions with a significant fluctua- gram under this title, required to pay, on behalf organization (hereafter in this part referred to tion in Federal Stafford Loan volume, Federal of a student or borrower, a refund of unearned as the ‘PBO’) to administer various functions Direct Stafford/Ford Loan volume, or Federal institutional charges to a lender, or to the Sec- relating to student financial assistance pro- Pell Grant award volume, or any combination retary, who willfully fails to pay such refund or grams authorized under this title. thereof, in the year for which the determination willfully attempts in any manner to evade pay- ‘‘(b) OVERSIGHT AND AUTHORITY.— ment of such refund, shall, in addition to other is made, compared to the year prior to such ‘‘(1) POLICY OVERSIGHT AND DIRECTION.—The penalties provided by law, be liable to the Sec- year, that are not accounted for by changes in Secretary shall maintain responsibility for the retary for the amount of the refund not paid, to the Federal Stafford Loan program, the Federal policy relating to functions managed by the the same extent with respect to such refund that Direct Stafford/Ford Loan program, or the Pell PBO, and the PBO shall remain subject to the such an individual would be liable as a respon- Grant program, or any combination thereof;’’; Secretary’s oversight and direction. sible person for a penalty under section 6672(a) (iii) by amending subparagraph (D) to read as ‘‘(2) AUDITS AND REVIEW.—The PBO shall be of Internal Revenue Code of 1986 with respect to follows: subject to the usual and customary Federal the nonpayment of taxes.’’. ‘‘(D) institutions reported to have deficiencies audit procedures and to review by the Inspector (d) APPLICATIONS AND SITE VISITS.—Section or financial aid problems by the State licensing General of the Department. 498(f) (20 U.S.C. 1099c(f)) is amended— or authorizing agency, or by the appropriate ac- ‘‘(3) CHANGES.— (1) in the subsection heading by striking ‘‘; crediting agency or association;’’; ‘‘(A) IN GENERAL.—The Secretary and the SITE VISITS AND FEES’’ and inserting ‘‘AND SITE (iv) in subparagraph (E), by inserting ‘‘and’’ Chief Operating Officer shall consult con- VISITS’’; after the semicolon; and cerning the effects of policy, market, or other

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changes on the ability of the PBO to achieve the ‘‘(v) OTHER AREAS.—Any other areas identi- officer determines necessary without regard to goals and objectives established in the perform- fied by the Secretary. the provisions of title 5, United States Code, ance plan described in subsection (e). ‘‘(2) ANNUAL REPORT.—(A) IN GENERAL.—Each governing appointments in the competitive serv- ‘‘(B) REVISIONS TO AGREEMENT.—The Sec- year, the Chief Operating Officer shall prepare ice. retary and the Chief Operating Officer may re- and submit to Congress, through the Secretary, ‘‘(B) COMPENSATION.—The senior managers vise the annual performance agreement de- an annual report on the performance of the described in subparagraph (A) may be paid scribed in subsection (f)(2) in light of policy, PBO, including an evaluation of the extent to without regard to the provisions of chapter 51 market, or other changes that occur after the which the PBO met the goals and objectives and subchapter III of chapter 53 of such title re- Secretary and the Chief Operating Officer enter contained in the 5-year performance plan de- lating to classification and General Schedule into the agreement. scribed in paragraph (1) for the preceding year. pay rates. ‘‘(c) PURPOSES OF PBO.—The purposes of the ‘‘(B) CONSULTATION WITH STAKEHOLDERS.— ‘‘(2) PERFORMANCE AGREEMENT.—Each year, PBO are— The Chief Operating Officer, in preparing the the Chief Operating Officer and each senior ‘‘(1) to improve service to students and other report described in subparagraph (A), shall es- manager appointed under this subsection shall participants in the student financial assistance tablish appropriate means to consult with bor- enter into an annual performance agreement programs authorized under this title, including rowers, institutions, lenders, guaranty agencies, that sets forth measurable organization and in- making those programs more understandable to secondary markets, and others involved in the dividual goals. students and their parents; delivery system of student aid under this title— ‘‘(3) COMPENSATION.— ‘‘(2) to reduce the costs of administering those ‘‘(i) regarding the degree of satisfaction with ‘‘(A) IN GENERAL.—A senior manager ap- programs; the delivery system; and pointed under this subsection may be paid at an ‘‘(3) to increase the accountability of the offi- ‘‘(ii) to seek suggestions on means to improve annual rate of basic pay of not more than the cials responsible for administering those pro- the delivery system. maximum rate of basic pay for the Senior Execu- grams; ‘‘(f) CHIEF OPERATING OFFICER.— tive Service under section 5382 of title 5, United ‘‘(4) to provide greater flexibility in the ad- ‘‘(1) APPOINTMENT.— States Code, including any applicable locality- ministration of those programs; ‘‘(A) IN GENERAL.—The management of the based comparability payment that may be au- ‘‘(5) to improve and integrate the information PBO shall be vested in a Chief Operating Offi- thorized under section 5304(h)(2)(C) of such title and delivery systems that support those pro- cer who shall be appointed by the Secretary to 5. grams; and a term of not less than 3 and not more than 5 ‘‘(B) BONUS.—In addition, a senior manager ‘‘(6) to develop and maintain a student finan- years and compensated without regard to chap- may receive a bonus in an amount such that the cial assistance system that contains complete, ters 33, 51, and 53 of title 5, United States Code. manager’s total annual compensation does not accurate, and timely data to ensure program in- ‘‘(B) BASIS.—The appointment shall be made exceed 125 percent of the maximum rate of basic tegrity. on the basis of demonstrated ability in manage- pay for the Senior Executive Service, including ‘‘(d) FUNCTIONS.— ment and experience in information technology any applicable locality-based comparability ‘‘(1) IN GENERAL.—Subject to subsection (b) of or financial services. payment, based upon the Chief Operating Offi- this section, the PBO shall be responsible for ‘‘(C) REAPPOINTMENT.—The Secretary may re- cer’s evaluation of the manager’s performance administration of the information and financial appoint the Chief Operating Officer to subse- in relation to the goals set forth in the perform- systems that support student financial assist- quent terms of not less than 3 and not more ance agreement described in paragraph (2). ance programs authorized under this title, in- than 5 years, so long as the performance of the ‘‘(4) REMOVAL.—A senior manager shall be re- cluding— Chief Operating Officer, as set forth in the per- movable by the Secretary or by the Chief Oper- ‘‘(A) collecting, processing, and transmitting formance agreement described in paragraph (2), ating Officer. applicant data to students, institutions, and au- is satisfactory. ‘‘(h) REPORT.—The Secretary and the Chief thorized third parties, as provided for in section ‘‘(2) PERFORMANCE AGREEMENT.— Operating Officer, not later than 180 days after 483; ‘‘(A) IN GENERAL.—Each year, the Secretary the date of enactment of the Higher Education ‘‘(B) contracting for the information and fi- and the Chief Operating Officer shall enter into Amendments of 1998, shall report to Congress on nancial systems supporting student financial as- an annual performance agreement, that shall the proposed budget and sources of funding for sistance programs under this title; set forth measurable organization and indi- the operation of the PBO. ‘‘(C) developing technical specifications for vidual goals for the Chief Operating Officer. ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.— software and systems that support those pro- ‘‘(B) TRANSMITTAL.—The final agreement, The Secretary shall allocate from funds made grams; and and any revision to the final agreement, shall be available under section 458 such funds as are ‘‘(D) providing all customer service, training, transmitted to the Committee on Education and appropriate to the functions assumed by the and user support related to systems that support the Workforce of the House of Representatives PBO. In addition, there are authorized to be ap- those programs. and the Committee on Labor and Human Re- propriated such sums as may be necessary to ‘‘(2) ADDITIONAL FUNCTIONS.—The Secretary sources of the Senate, and made publicly avail- carry out the purposes of this part, including may allocate to the PBO such additional func- able. transition costs. tions as the Secretary determines necessary or ‘‘(3) COMPENSATION.— appropriate to achieve the purposes of the PBO. ‘‘(A) IN GENERAL.—The Chief Operating Offi- ‘‘SEC. 499A. PERSONNEL FLEXIBILITIES. ‘‘(e) PERFORMANCE PLAN AND REPORT.— cer is authorized to be paid at an annual rate of ‘‘(a) GENERAL PROVISIONS.— ‘‘(1) PERFORMANCE PLAN.— basic pay not to exceed the maximum rate of ‘‘(1) CERTAIN LIMITATIONS NOT APPLICABLE.— ‘‘(A) IN GENERAL.—Each year, the Secretary basic pay for the Senior Executive Service under The PBO shall not be subject to any limitation and Chief Operating Officer shall agree on, and section 5382 of title 5, United States Code, in- related to the number or grade of its employees. make available to the public, a performance cluding any applicable locality-based com- ‘‘(2) APPLICABLE PROVISIONS OF TITLE 5.— plan for the PBO for the succeeding 5 years that parability payment that may be authorized ‘‘(A) PROVISIONS.—Any flexibilities provided establishes measurable goals and objectives for under section 5304(h)(2)(C) of such title. under this section shall be exercised in a manner the organization. ‘‘(B) BONUS.—In addition, the Chief Oper- consistent with the following provisions of title ‘‘(B) CONSULTATION.—In developing the 5- ating Officer may receive a bonus in an amount 5, United States Code: year performance plan and any revision to the that does not exceed 50 percent of such annual ‘‘(i) Chapter 23, relating to merit system prin- plan, the Secretary and the Chief Operating Of- rate of basic pay, based upon the Secretary’s ciples and prohibited personnel practices. ficer shall consult with students, institutions of evaluation of the Chief Operating Officer’s per- ‘‘(ii) Provisions relating to preference eligibles. higher education, Congress, lenders, and other formance in relation to the goals set forth in the ‘‘(iii) Section 5307, relating to the aggregate interested parties not less than 30 days prior to performance agreement described in paragraph limitation on pay. the implementation of the performance plan or (2). ‘‘(iv) Chapter 71, relating to labor-manage- revision. ‘‘(C) PAYMENT.—Payment of a bonus under ment relations, except to the extent provided by ‘‘(C) AREAS.—The plan shall address the this subparagraph (B) may be made to the Chief paragraph (3). PBO’s responsibilities in the following areas: Operating Officer only to the extent that such ‘‘(B) EXERCISE OF AUTHORITY.—The exercise ‘‘(i) IMPROVING SERVICE.—Improving service to payment does not cause the Chief Operating Of- of any authorities provided under this section students and other participants in student fi- ficer’s total aggregate compensation in a cal- shall be subject to subsections (b) and (c) of sec- nancial aid programs authorized under this endar year to equal or exceed the amount of the tion 1104 of title 5, United States Code, as title, including making those programs more un- President’s salary under section 102 of title 3, though such authorities were delegated to the derstandable to students and their parents. United States Code. PBO under subsection (a)(2) of such section. ‘‘(ii) REDUCING COSTS.—Reducing the costs of ‘‘(4) REMOVAL.—The Chief Operating Officer The PBO shall provide the Office of Personnel administering those programs. shall be removable— Management with any information the Office ‘‘(iii) IMPROVEMENT AND INTEGRATION OF SUP- ‘‘(A) by the President; or requires in carrying out its responsibilities PORT SYSTEMS.—Improving and integrating the ‘‘(B) by the Secretary for misconduct or fail- under this subsection. information and delivery systems that support ure to meet the goals set forth in the perform- ‘‘(3) LABOR ORGANIZATION AGREEMENTS.—Em- those programs. ance agreement described in paragraph (2). ployees within a unit to which a labor organiza- ‘‘(iv) DELIVERY AND INFORMATION SYSTEM.— ‘‘(g) SENIOR MANAGEMENT.— tion is accorded exclusive recognition under Developing an open, common, and integrated ‘‘(1) APPOINTMENT.— chapter 71 of title 5, United States Code, shall delivery and information system for programs ‘‘(A) IN GENERAL.—The Chief Operating Offi- not be subject to any flexibility provided under authorized under this title. cer may appoint such senior managers as that this section unless the exclusive representative

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and PBO have entered into a written agreement ‘‘(iii) using performance assessments as a ‘‘(A) IN GENERAL.—With the approval of the which specifically provides for the exercise of basis for granting employee awards, adjusting Office of Personnel Management in accordance that flexibility. A written agreement may not be an employee’s rate of basic pay, and other ap- with subsection (a)(4)(B), the PBO may estab- imposed by the Federal Services Impasses Panel propriate personnel actions, in accordance with lish 1 or more alternative job evaluation systems under section 7119 of title 5, United States Code. applicable provisions or law and regulation. that include any positions or groups of positions ‘‘(4) FLEXIBILITIES.— ‘‘(2) PERFORMANCE.— that the PBO determines, for reasons of effective ‘‘(A) PRIOR APPROVAL.—The PBO may exer- ‘‘(A) ASSESSMENT.—For purposes of para- administration— cise any of the flexibilities provided under sub- graph (1)(B), the term ‘performance assessment’ ‘‘(i) should not be classified under chapter 51 sections (b), (c)(1), and (d) without prior ap- means a determination of whether or not reten- of title 5, United States Code, or paid under the proval of the Office of Personnel Management. tion standards established under paragraph General Schedule; ‘‘(B) PLAN AND APPROVAL.—The PBO may ex- (1)(A)(i) are met, and any additional perform- ‘‘(ii) should not be classified or paid under ercise the flexibilities described in subsection ance determination made on the basis of per- subchapter IV of chapter 53 of such title; or (c)(2) only after a specific plan for implementa- formance goals and objectives established under ‘‘(iii) should not be paid under section 5376 of tion of those flexibilities is submitted to and ap- paragraph (1)(B)(i). such title. proved by the Director of the Office of Personnel ‘‘(B) UNACCEPTABLE PERFORMANCE.—For pur- ‘‘(B) PAY.— Management. poses of title 5, United States Code, the term ‘‘(i) GENERAL LIMITATION.—An alternative job ‘‘(5) DEMONSTRATION PROJECTS.— ‘unacceptable performance’ with respect to an evaluation system established under this section ‘‘(A) IN GENERAL.—The exercise of any flexi- employee of the PBO means performance of the that includes positions described in clause (i) or bilities under this section shall not affect the employee which fails to meet a retention stand- (ii), or both, of subparagraph (A) may not pro- authority of the PBO to implement a demonstra- ard established under paragraph (1)(A)(i). vide a rate of basic pay for any employee in ex- tion project subject to chapter 47 of title 5, ‘‘(3) AWARDS PROGRAM.— cess of the maximum rate of pay under the Gen- United States Code, and as provided in subpara- ‘‘(A) IN GENERAL.—The PBO may establish an eral Schedule. graph (B). awards program designed to provide incentives ‘‘(ii) SPECIFIC LIMITATION.—An alternative job ‘‘(B) APPLICATION OF TITLE 5.—In applying for and recognition of organizational, group, evaluation system established under this section section 4703 of title 5, United States Code, to a and individual achievements by providing for that includes positions described in clause (iii) project described in subparagraph (A)— granting awards to employees who, as individ- of subparagraph (A) may not provide a rate of ‘‘(i) section 4703(b)(1) shall be deemed to read uals or members of a group, contribute to meet- basic pay for any employee in excess of the an- as follows: ing the performance goals and objectives estab- nual rate of basic pay of the Chief Operating ‘‘ ‘(1) develop a plan for such project which lished under this part by such means as a supe- Officer under the first sentence of section describes its purpose, the employees to be cov- rior individual or group accomplishment, a doc- 499(f)(3). ered, the project itself, its anticipated outcomes, ‘‘(C) IMPLEMENTATION.—An alternative job umented productivity gain, or sustained supe- and the method of evaluating the project;’; evaluation system established under this section rior performance. ‘‘(ii) section 4703(b)(3) shall not apply; shall be implemented in such a way as to ensure ‘‘(B) LIMITATION.—Notwithstanding section ‘‘(iii) the 180-day notification period in section the maintenance of the principle of equal pay 4703(b)(4) shall be deemed to be a 30-day notifi- 4502(b) of title 5, United States Code, the PBO may grant a cash award in an amount not ex- for substantially equal work. cation period; ‘‘(D) APPLICABILITY OF LAWS.—Except as oth- ceeding $25,000, with the approval of the Chief ‘‘(iv) section 4703(b)(6) shall be deemed to read erwise provided under this part, employees Operating Officer. as follows: under an alternative job evaluation system shall ‘‘(c) CLASSIFICATION AND PAY FLEXIBILI- ‘‘ ‘(6) provide each House of Congress with the continue to be subject to the laws and regula- TIES.— final version of the plan.’; tions covering employees under the pay system ‘‘(v) section 4703(c)(1) shall be deemed to read ‘‘(1) IN GENERAL.— that would otherwise apply to them. If the alter- as follows: ‘‘(A) DEFINITION.—For purposes of this sec- ‘‘ ‘(1) subchapter V of chapter 63 or subpart G tion, the term ‘broad-banded system’ means a native job evaluation system combines employees of part III of this title;’; system for grouping positions for pay, job eval- from different pay systems into a single system, ‘‘(vi) section 4703(d) shall not apply; and uation, and other purposes that is different from the plan submitted under subsection (a)(4)(B) ‘‘(vii) section 4703(f) shall not apply, and, in the system established under chapter 51 and shall address the applicability of the laws and lieu thereof, paragraph (3) of this subsection subchapter III of chapter 53 of title 5, United regulations for the different pay systems. ‘‘(d) STAFFING FLEXIBILITIES.— shall apply as though the demonstration project States Code, as a result of combining grades and were a flexibility authority provided under this ‘‘(1) APPOINTMENT.— related ranges of rates of pay in 1 or more occu- ‘‘(A) CONDITIONS.—Except as otherwise pro- subsection. pational series. vided under this subsection, an employee of the ‘‘(b) PERFORMANCE MANAGEMENT.— ‘‘(B) ESTABLISHMENT.—The PBO may, subject PBO may be selected for a permanent appoint- ‘‘(1) IN GENERAL.—The PBO shall establish a to criteria to be prescribed by the Office of Per- performance management system that— ment in the competitive service in the PBO sonnel Management, establish 1 or more broad- through internal competitive promotion proce- ‘‘(A) maintains individual accountability by— banded systems covering all or any portion of its ‘‘(i) establishing 1 or more retention standards dures if— workforce. The Office may require the PBO to for each employee related to the work of the em- ‘‘(i) the employee has completed, in the com- submit to the Office such information relating to ployee and expressed in terms of individual per- petitive service, 2 years of current continuous its broad-banded systems as the Office may re- formance, and communicating such retention service under a term appointment or any com- quire. Laws and regulations pertaining to Gen- standards to employees; bination of term appointments; ‘‘(ii) making periodic determinations of eral Schedule employees (other than chapter 52 ‘‘(ii) such term appointment or appointments whether each employee meets or does not meet and subchapter II of chapter 53 of title 5, United were made under competitive procedures pre- the employee’s established retention standards; States Code) shall continue to be applicable to scribed for permanent appointments; and employees under a broad-banded system. ‘‘(iii) the employee’s performance under such ‘‘(iii) taking actions, in accordance with ap- ‘‘(C) CRITERIA.—The criteria to be prescribed term appointment or appointments met estab- plicable laws and regulations, with respect to by the Office of Personnel Management shall, at lished retention standards; and any employee whose performance does not meet a minimum— ‘‘(iv) the vacancy announcement for the term established retention standards, including deny- ‘‘(i) ensure that the structure of any broad- appointment from which the conversion is made ing any increase in basic pay, promotions, and banded system maintains, through linkage to stated that there was a potential for subsequent credit for performance under section 3502 of title the General Schedule, the principle of equal pay conversion to a permanent appointment. 5, United States Code, and taking 1 or more of for substantially equal work; ‘‘(B) SIMILAR APPOINTMENT.—An appointment the following actions: ‘‘(ii) establish the minimum and maximum under this section may be made only to a posi- ‘‘(I) Reassignment; number of grades that may be combined into tion in the same line of work as a position to ‘‘(II) An action under chapter 43 or 75 of title pay bands; which the employee received a term appointment 5, United States Code; or ‘‘(iii) establish requirements for adjusting the under competitive procedures. ‘‘(III) Any other appropriate action to resolve pay of an employee within a pay band; ‘‘(2) CATEGORY RATING SYSTEMS.— the performance problem; and ‘‘(iv) establish requirements for setting the ‘‘(A) IN GENERAL.—Notwithstanding sub- ‘‘(B) strengthens its effectiveness by providing pay of a supervisory employee whose position is chapter I of chapter 33 of title 5, United States for— in a pay band or who supervises employees Code, the PBO may establish category rating ‘‘(i) establishing goals or objectives for indi- whose positions are in pay bands; and systems for evaluating job applicants for posi- vidual, group, or organizational performance (or ‘‘(v) establish requirements and methodologies tions in the competitive service. Qualified can- any combination thereof), consistent with the for setting the pay of an employee upon conver- didates under such rating systems shall be di- annual performance agreement described in sec- sion to a broad-banded system, initial appoint- vided into 2 or more quality categories on the tion 499(f)(2) and PBO performance planning ment, change of position or type of appointment basis of relative degrees of merit, rather than as- procedures, including those established under (including promotion, demotion, transfer, reas- signed individual numerical ratings. Each appli- the Government Performance and Results Act of signment, reinstatement, placement in another cant who meets the minimum qualification re- 1993, and communicating such goals or objec- pay band, or movement to a different geographic quirements for the position to be filled shall be tives to employees; location), and movement between a broad-band- assigned to an appropriate category based on an ‘‘(ii) using such goals and objectives to make ed system and another pay system. evaluation of the applicant’s knowledge, skills, performance distinctions among employees or ‘‘(2) ALTERNATIVE JOB EVALUATION SYSTEMS and abilities relative to those needed for success- groups of employees; and FLEXIBILITIES.— ful performance in the position to be filled.

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‘‘(B) PREFERENCE ELIGIBLES.—Within each ‘‘(ii) A description of the basis on which po- ‘‘(2) UTILITY REQUIREMENT.—A module may quality category established under subpara- tential sources are to be selected to submit offers not be procured for a system under this sub- graph (A), preference eligibles shall be listed in the second phase. section unless the module is useful independ- ahead of individuals who are not preference eli- ‘‘(iii) A description of the information that is ently of the other modules or useful in combina- gibles. For other than scientific and professional to be required under subparagraph (B). tion with another module previously procured positions at or higher than level GS–9 (or equiv- ‘‘(iv) Any additional information that the for the system. alent), preference eligibles who have a compen- contracting officer determines appropriate. ‘‘(3) CONDITIONS FOR USE OF AUTHORITY.—The sable service-connected disability of 10 percent ‘‘(B) INFORMATION SUBMITTED BY OFFERORS.— PBO may use procedures authorized under or more, and who meet the minimum qualifica- Each offeror for the procurement shall submit paragraph (4) for the procurement of an addi- tion standards, shall be listed in the highest basic information, such as information on the tional module for a system if— quality category. offeror’s qualifications, the proposed conceptual ‘‘(A) competitive procedures were used for ‘‘(C) SELECTION.—An appointing authority approach, costs likely to be associated with the awarding the contract for the procurement of may select any applicant from the highest qual- proposed conceptual approach, and past per- the first module for the system; and ity category or, if fewer than 3 candidates have formance of the offeror on Federal Government ‘‘(B) the solicitation for the first module in- been assigned to the highest quality category, contracts, together with any additional informa- cluded— from a merged category consisting of the highest tion that is requested by the contracting officer. ‘‘(i) a general description of the entire system and second highest quality categories. Notwith- ‘‘(C) SELECTION FOR SECOND PHASE.—The con- that was sufficient to provide potential offerors standing the preceding sentence, the appointing tracting officer shall select the offerors that are with reasonable notice of the general scope of authority may not pass over a preference eligi- to be eligible to participate in the second phase future modules; ble in the same or higher category from which of the process. The contracting officer shall limit ‘‘(ii) other information sufficient for potential selection is made, unless the requirements of sec- the number of the selected offerors to the num- offerors to make informed business judgments tion 3317(b) or 3318(b) of title 5, United States ber of sources that the contracting officer deter- regarding whether to submit offers for the con- Code, as applicable, are satisfied. mines is appropriate and in the best interests of tract for the first module; and ‘‘(3) EXCEPTED SERVICE.—The Chief Operating the Federal Government. ‘‘(iii) a statement that procedures authorized Officer may appoint, without regard to the pro- ‘‘(3) SECOND PHASE.— under this subsection could be used for award- visions of title 5, United States Code, governing ‘‘(A) IN GENERAL.—The contracting officer ing subsequent contracts for the procurement of appointments in the competitive service, not shall conduct the second phase of the source se- additional modules for the system. more than 25 technical and professional employ- lection process in accordance with sections 303A ‘‘(4) PROCEDURES.—If the procurement of the ees to administer the functions of the PBO. and 303B of the Federal Property and Adminis- first module for a system meets the requirements These employees may be paid without regard to trative Services Act of 1949 (41 U.S.C. 253a and set forth in paragraph (3), the PBO may award the provisions of chapter 51 and subchapter III 253b). a contract for the procurement of an additional ‘‘(B) ELIGIBLE PARTICIPANTS.—Only the of chapter 53 of such title relating to classifica- module for the system using any of the fol- sources selected in the first phase of the process tion and General Schedule pay rates. lowing procedures: shall be eligible to participate in the second ‘‘(4) RULE OF CONSTRUCTION.—Notwith- ‘‘(A) SOLE SOURCE.—Award of the contract on standing paragraphs (1) through (3), no provi- phase. a sole-source basis to a contractor who was ‘‘(C) SINGLE OR MULTIPLE PROCUREMENTS.— sion of this subsection exempts the PBO from— awarded a contract for a module previously pro- ‘‘(A) any employment priorities established The second phase may include a single procure- cured for the system under competitive proce- under direction of the President for the place- ment or multiple procurements within the scope, dures or procedures authorized under subpara- ment of surplus or displaced employees; or or for the purpose, described in the notice pur- graph (B). ‘‘(B) its obligations under any court order or suant to paragraph (2)(A). ‘‘(B) ADEQUATE COMPETITION.—Award of the decree relating to the employment practices of ‘‘(4) PROCEDURES CONSIDERED COMPETITIVE.— contract on the basis of offers made by— the PBO or the Department of Education. The procedures used for selecting a source for a ‘‘(i) a contractor who was awarded a contract procurement under this subsection shall be con- ‘‘SEC. 499B. PROCUREMENT FLEXIBILITY. for a module previously procured for the system sidered competitive procedures for all purposes. ‘‘(a) PROCUREMENT AUTHORITY.—Subject to after having been selected for award of the con- ‘‘(e) USE OF SIMPLIFIED PROCEDURES FOR the authority, direction, and control of the Sec- tract under this subparagraph or other competi- COMMERCIAL ITEMS.—Whenever the PBO antici- retary, the Chief Operating Officer of a PBO tive procedures; and pates that commercial items will be offered for a ‘‘(ii) at least one other offeror that submitted may exercise the authority of the Secretary to procurement, the PBO may use (consistent with procure property and services in the perform- an offer for a module previously procured for the special rules for commercial items) the spe- the system and is expected, on the basis of the ance of functions managed by the PBO. For the cial simplified procedures for the procurement purposes of this section, the term ‘PBO’ includes offer for the previously procured module, to sub- without regard to— mit a competitive offer for the additional mod- the Chief Operating Officer of the PBO and any ‘‘(1) any dollar limitation otherwise applicable ule. employee of the PBO exercising procurement au- to the use of those procedures; and ‘‘(C) OTHER.—Award of the contract under thority under the preceding sentence. ‘‘(2) the expiration of the authority to use spe- any other procedure authorized by law. ‘‘(b) APPLICABILITY OF PROCUREMENT LAWS.— cial simplified procedures under section 4202(e) ‘‘(5) NOTICE REQUIREMENT.— Except to the extent otherwise authorized in this of the Clinger-Cohen Act of 1996 (110 Stat. 654; section, a PBO shall comply with all laws and ‘‘(A) PUBLICATION.—Not less than 30 days be- 10 U.S.C. 2304 note). fore issuing a solicitation for offers for a con- regulations that are generally applicable to pro- ‘‘(f) FLEXIBLE WAIT PERIODS AND DEADLINES tract for a module for a system under procedures curements of property and services by the head FOR SUBMISSION OF OFFERS OF NONCOMMERCIAL authorized under subparagraph (A) or (B) of of an executive agency of the Federal Govern- ITEMS.— paragraph (4), the PBO shall publish in the ment. ‘‘(1) AUTHORITY.—In carrying out a procure- ‘‘(c) USE OF MUTUAL BENEFIT CORPORA- ment, the PBO may— Commerce Business Daily a notice of the intent TION.—The PBO may acquire services related to ‘‘(A) apply a shorter waiting period for the to use such procedures to enter into the con- the title IV delivery system from any mutual issuance of a solicitation after the publication of tract. benefit corporation that has the capability and a notice under section 18 Office of Federal Pro- ‘‘(B) EXCEPTION.—Publication of a notice is capacity to meet the requirements for the sys- curement Policy Act (41 U.S.C. 416) than is re- not required under this paragraph with respect tem, as determined by the Chief Operating Offi- quired under subsection (a)(3)(A) of such sec- to a use of procedures authorized under para- cer of the PBO. tion; and graph (4) if the contractor referred to in that ‘‘(d) TWO-PHASE SOURCE-SELECTION PROCE- ‘‘(B) notwithstanding subsection (a)(3) of subparagraph (who is to be solicited to submit DURES.— such section, establish any deadline for the sub- an offer) has previously provided a module for ‘‘(1) IN GENERAL.—The PBO may use a two- mission of bids or proposals that affords poten- the system under a contract that contained cost, phase process for selecting a source for a pro- tial offerors a reasonable opportunity to respond schedule, and performance goals and the con- curement of property or services. to the solicitation. tractor met those goals. ‘‘(2) FIRST PHASE.—The procedures for the ‘‘(2) INAPPLICABILITY TO COMMERCIAL ‘‘(C) CONTENT OF NOTICE.—A notice published first phase of the process for a procurement are ITEMS.—Paragraph (1) does not apply to a pro- under subparagraph (A) with respect to a use of as follows: curement of a commercial item. procedures described in paragraph (4) shall con- ‘‘(A) PUBLICATION OF NOTICE.—The con- ‘‘(3) CONSISTENCY WITH APPLICABLE INTER- tain the information required under section tracting officer for the procurement shall pub- NATIONAL AGREEMENTS.—If an international 18(b) of the Office of Federal Procurement Pol- lish a notice of the procurement in accordance agreement is applicable to the procurement, any icy Act (41 U.S.C. 416(b)), other than paragraph with section 18 of the Office of Federal Procure- exercise of authority under paragraph (1) shall (4) of such section, and shall invite the submis- ment Policy Act (41 U.S.C. 416) and subsections be consistent with the international agreement. sion of any assertion that the use of the proce- (e), (f), and (g) of section 8 of the Small Busi- ‘‘(g) MODULAR CONTRACTING.— dures for the procurement involved is not in the ness Act (15 U.S.C. 637), except that the notice ‘‘(1) IN GENERAL.—The PBO may satisfy the best interest of the Federal Government together shall include only the following: requirements of the PBO for a system incremen- with information supporting the assertion. ‘‘(i) A general description of the scope or pur- tally by carrying out successive procurements of ‘‘(6) DOCUMENTATION.—The basis for an pose of the procurement that provides sufficient modules of the system. In doing so, the PBO award of a contract under this subsection shall information on the scope or purpose for sources may use procedures authorized under this sub- be documented. However, a justification pursu- to make informed business decisions regarding section to procure any such module after the ant to section 303(f) of the Federal Property and whether to participate in the procurement. first module. Administrative Services Act of 1949 (41 U.S.C.

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253(f)) or section 8(h) of the Small Business Act ‘‘(5) SPECIAL RULES FOR COMMERCIAL ITEMS.— ‘‘(f) ACCESSIBILITY FOR BORROWERS.—The (15 U.S.C. 637(h)) is not required. The term ‘special rules for commercial items’ Student Loan Ombudsman Office shall maintain ‘‘(7) SIMPLIFIED SOURCE-SELECTION PROCE- means the regulations set forth in the Federal a toll-free telephone number and Internet web DURES.—The PBO may award a contract under Acquisition Regulation pursuant to section site for receiving borrower complaints. any other simplified procedures prescribed by 303(g)(1) of the Federal Property and Adminis- ‘‘(g) NOTIFICATION TO BORROWERS.—The Stu- the PBO for the selection of sources for the pro- trative Services Act of 1949 (41 U.S.C. 253(g)(1)) dent Loan Ombudsman Office shall encourage curement of modules for a system, after the first and section 31 of the Office of Federal Procure- maximum outreach to borrowers by all appro- module, that are not to be procured under a ment Policy Act (41 U.S.C. 427). priate parties, including the Department, Con- contract awarded on a sole-source basis. ‘‘(6) SPECIAL SIMPLIFIED PROCEDURES.—The gress, lenders, institutions of higher education, ‘‘(h) USE OF SIMPLIFIED PROCEDURES FOR term ‘special simplified procedures’ means the loan servicers, and guaranty agencies, to pro- SMALL BUSINESS SET-ASIDES FOR SERVICES procedures applicable to purchases of property vide ongoing notice, to student loan borrowers, OTHER THAN COMMERCIAL ITEMS.— and services for amounts not greater than the of the Student Loan Ombudsman Office. Such ‘‘(1) AUTHORITY.—The PBO may use special simplified acquisition threshold that are set notice, including the toll-free telephone number, simplified procedures for a procurement of serv- forth in the Federal Acquisition Regulation pur- at a minimum, shall be given to borrowers in ices that are not commercial items if— suant to section 303(g)(1)(B) of the Federal publications and on Internet web sites. ‘‘(A) the procurement is in an amount not Property and Administrative Services Act of 1949 ‘‘(h) CONFLICT OF INTEREST.—Employees of greater than $1,000,000; (41 U.S.C. 253(g)(1)(A)) and section 31(a)(1) of the Student Loan Ombudsman Office shall not ‘‘(B) the procurement is conducted as a small the Office of Federal Procurement Policy Act (41 be employees or officers of any participant in business set-aside pursuant to section 15(a) of U.S.C. 427(a)(1)).’’. the student loan programs under this Act (other the Small Business Act (15 U.S.C. 644(a)); and SEC. 496. STUDENT LOAN OMBUDSMAN OFFICE. than the Department), including any lender, ‘‘(C) the price charged for supplies associated Title IV (20 U.S.C. 1070 et seq.) is amended by guaranty agency, proprietary institution of with the services procured are items of supply adding after part I (as added by section 495) the higher education, postsecondary vocational in- expected to be less than 20 percent of the total following: stitution, institution of higher education, loan contract price. servicer, collections agency, or trade association ‘‘PART J—STUDENT LOAN OMBUDSMAN ‘‘(2) INAPPLICABILITY TO CERTAIN PROCURE- or education advocacy group representing any OFFICE MENTS.—The authority set forth in paragraph such entity. The Student Loan Ombudsman Of- (1) may not be used for— ‘‘SEC. 499F. STUDENT LOAN OMBUDSMAN OFFICE. fice shall avoid all conflicts of interest and ap- ‘‘(A) an award of a contract on a sole-source ‘‘(a) OFFICE ESTABLISHED.—The Secretary pearances of impropriety. basis; or shall establish, within the Department, a Stu- ‘‘(i) SUPPLEMENT AND NOT SUPPLANT.—The ‘‘(B) a contract for construction. dent Loan Ombudsman Office. remedies and procedures of the Student Loan ‘‘(i) GUIDANCE FOR USE OF AUTHORITY.— ‘‘(b) INDEPENDENCE OF STUDENT LOAN OM- Ombudsman Office shall supplement and not ‘‘(1) ISSUANCE BY PBO.—The Chief Operating BUDSMAN OFFICE.—In the exercise of its func- supplant any other consumer remedies and pro- Officer of the PBO, in consultation with the Ad- tions, powers, and duties, the Student Loan cedures available to borrowers. ministrator for Federal Procurement Policy, Ombudsman Office shall be independent of the ‘‘(j) FUNDING.—In each fiscal year, not less shall issue guidance for the use by PBO per- Secretary and the other offices and officers of than $2,000,000 of the amount appropriated for sonnel of the authority provided in this section. the Department. the fiscal year for salaries and expenses at the ‘‘(2) GUIDANCE FROM OFPP.—As part of the ‘‘(c) STUDENT LOAN OMBUDSMAN.—The Stu- Department shall be available to carry out this consultation required under paragraph (1), the dent Loan Ombudsman Office shall be managed section.’’. Administrator for Federal Procurement Policy by the Student Loan Ombudsman, who shall be TITLE V—GRADUATE AND POSTSEC- shall provide the PBO with guidance that is de- appointed by the Secretary to a 5-year term. The ONDARY IMPROVEMENT PROGRAMS signed to ensure, to the maximum extent prac- Secretary shall appoint the Student Loan Om- SEC. 501. REPEALS, TRANSFERS, AND REDESIGNA- ticable, that the authority under this section is budsman not later than 6 months after the date TIONS. exercised by the PBO in a manner that is con- of enactment of the Higher Education Amend- (a) IN GENERAL.—Title V (20 U.S.C. 1101 et sistent with the exercise of the authority by the ments of 1998. The appointment shall be made seq.) is amended— heads of the other performance-based organiza- without regard to political affiliation or activ- (1) by amending the title heading to read as tions. ity. The Secretary may reappoint the Student follows: ‘‘(3) COMPLIANCE WITH OFPP GUIDANCE.—The Loan Ombudsman to subsequent terms. ‘‘TITLE V—GRADUATE AND POSTSEC- head of the PBO shall ensure that the procure- ‘‘(d) DUTIES AND RESPONSIBILITIES.—The Stu- ONDARY IMPROVEMENT PROGRAMS’’; ments of the PBO under this section are carried dent Loan Ombudsman Office shall— out in a manner that is consistent with the ‘‘(1) directly assist student loan borrowers (2) by repealing parts A, B, C, D, E, and F of guidance provided for the PBO under para- with loans made, insured, or guaranteed under title V (20 U.S.C. 1102 et seq., 1103 et seq., 1104 graph (2). this title; et seq., 1107 et seq., 1111 et seq., and 1113 et ‘‘(j) LIMITATION ON MULTIAGENCY CON- ‘‘(2) ensure that student loan borrower com- seq.); (3) by transferring part C of title IX, part D TRACTING.—No department or agency of the plaints and requests for assistance are promptly Federal Government may purchase property or resolved and responded to by the Secretary, con- of title IX, part A of title XI, and part A of title services under contracts entered into or adminis- tractors or servicers, guaranty agencies, lenders, X (20 U.S.C. 1134h et seq., 1134l et seq., 1136 et tered by a PBO under this section unless the and other loan holders, or the agents of such in- seq., and 1135 et seq.) to title V and redesig- purchase is approved in advance by the senior dividuals or entities; nating such parts as parts A, B, D, and E, re- procurement official of that department or agen- ‘‘(3) investigate and resolve complaints of stu- spectively; (4) by redesignating sections 931 through 935 cy who is responsible for purchasing by the de- dent loan borrowers; (20 U.S.C. 1134h et seq. and 1134k–1 et seq.) as partment or agency. ‘‘(4) provide information on the experience of borrowers with respect to existing and proposed sections 501 through 505, respectively; ‘‘(k) LAWS NOT AFFECTED.—Nothing in this (5) by redesignating sections 941 through 947 statutes, regulations, and Department directives section shall be construed to waive laws for the (20 U.S.C. 1134l and 1134q–1) as section 511 and actions; enforcement of civil rights or for the establish- through 517, respectively; ‘‘(5) track and analyze complaint data by ment and enforcement of labor standards that (6) by redesignating sections 1101 through 1109 loan program, institution, lender, guaranty are applicable to contracts of the Federal Gov- (20 U.S.C. 1136 through 1136h) as sections 531 agency, and servicer, as applicable; and ernment. through 539, respectively; and ‘‘(l) DEFINITIONS.—In this section: ‘‘(6) report annually to the appropriate com- (7) by redesignating sections 1001, 1002, 1003, ‘‘(1) COMMERCIAL ITEM.—The term ‘commer- mittees of Congress, which report shall be made 1004, and 1011 (20 U.S.C. 1135, 1135a–1, 1135a–2, cial item’ has the meaning given the term in sec- available to the public, regarding the respon- 1135a–3, and 1135a–11) as sections 541, 542, 543, tion 4(12) of the Office of Federal Procurement sibilities and performance of the Student Loan 544, and 551, respectively. Policy Act (41 U.S.C. 403(12)). Ombudsman Office, including an analysis of (b) CROSS REFERENCE CONFORMING AMEND- ‘‘(2) COMPETITIVE PROCEDURES.—The term complaint data described in paragraph (5). MENTS.— ‘competitive procedures’ has the meaning given ‘‘(e) STUDENT LOAN OMBUDSMAN OFFICE AC- (1) JACOB K. JAVITS FELLOWSHIP PROGRAM.— the term in section 309(b) of the Federal Prop- CESS TO RECORDS.—The Student Loan Ombuds- Section 504(a) (as redesignated by subsection erty and Administrative Services Act of 1949 (41 man Office shall, upon presentation of a signed (a)(4)) (20 U.S.C. 1134k(a)) is amended by strik- U.S.C. 259(b)). release form from a student loan borrower, have ing ‘‘933’’ and inserting ‘‘503’’. ‘‘(3) MUTUAL BENEFIT CORPORATION.—The full and complete access to all records regarding (2) GRADUATE ASSISTANCE IN AREAS OF NA- term ‘mutual benefit corporation’ means a cor- the borrower’s loan and education program that TIONAL NEED.—Part B of title V (as redesignated poration organized and chartered as a mutual are necessary to carry out the Student Loan by paragraphs (3) and (5) of subsection (a)) (20 benefit corporation under the laws of any State Ombudsman’s duties. The Student Loan Om- U.S.C. 1134l et seq.) is amended— governing the incorporation of nonprofit cor- budsman shall maintain personal identifying in- (A) in section 514(b)(7) (as redesignated by porations. formation in the strictest confidence and use subsection (a)(5)) (20 U.S.C. 1134o(b)(7)), by ‘‘(4) SOLE-SOURCE BASIS.—The term ‘sole- such information only for the purpose of assist- striking ‘‘945’’ and inserting ‘‘515’’; and source basis’, with respect to an award of a con- ing the borrower in pursuing resolution of the (B) in section 515(c) (as redesignated by sub- tract, means that the contract is awarded to a individual’s complaint, unless written author- section (a)(5)) (20 U.S.C. 1134p(c))— source after soliciting an offer or offers from, ization is obtained to use such information for (i) by striking ‘‘946(a)’’ and inserting and negotiating with, only that source. other specified purposes. ‘‘516(a)’’; and

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00087 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S8002 CONGRESSIONAL RECORD — SENATE July 10, 1998 (ii) by striking ‘‘944(b)(2)’’ and inserting (B) in paragraph (2)— offer with grant funds provided under this ‘‘514(b)(2)’’. (i) by amending subparagraph (B) to read as part;’’ and (3) URBAN AND COMMUNITY SERVICE.—Part C follows: (4) in paragraph (5)(A) (as redesignated by of title V (as redesignated by paragraphs (3) and ‘‘(B) establish general criteria for the award paragraph (2)), by striking ‘‘criteria developed (6) of subsection (a)) (20 U.S.C. 1136 et seq.) is of fellowships in academic fields identified by by the institution’’ and inserting ‘‘part F of title amended— the Board, or, in the event that the Secretary IV’’. (A) in section 532(b) (20 U.S.C. 1136a(b)), by enters into a contract with a nongovernmental (c) AWARDS.—Section 515 (as redesignated by striking ‘‘1104’’ and inserting ‘‘534’’; entity to administer the program assisted under section 501(5)) (20 U.S.C. 1134p) is amended— (B) in section 534(12) (20 U.S.C. 1136c(12)), by this part, by such nongovernmental entity;’’; (1) in the third sentence of subsection (b)— striking ‘‘1103(a)(2)(B)’’ and inserting and (A) by striking ‘‘1993–1994’’ and inserting ‘‘533(a)(2)(B)’’; and (ii) in subparagraph (C), by inserting ‘‘except ‘‘1999–2000’’; and (C) in section 538(1) (20 U.S.C. 1136g(1)), by that, in the event that the Secretary enters into (B) by striking ‘‘according to measurements of striking ‘‘1103’’ and inserting ‘‘533’’. a contract with a nongovernmental entity to ad- need approved by the Secretary’’ and inserting (4) FIPSE.—Subsections (b) and (c) of section minister the program, such panels may be ap- ‘‘determined in accordance with part F of title 544 (as redesignated by subsection (a)(7)) (20 pointed by such nongovernmental entity’’ before IV’’; and U.S.C. 1135a–3) each are amended by striking the semicolon; and (2) in subsection (c), by striking ‘‘such pay- ‘‘1001(b)’’ and inserting ‘‘541(b)’’. (2) in the first sentence of subsection (b), by ments’’ and inserting ‘‘such excess’’. SEC. 502. PURPOSE. inserting ‘‘except that in the event that the Sec- (d) INSTITUTIONAL PAYMENTS.—Section Section 500 (20 U.S.C. 1101) is amended to read retary enters into a contract with a nongovern- 516(a)(1) (as redesignated by section 501(5)) (20 as follows: mental entity to administer the program, such U.S.C. 1134q(a)(1)) is amended— (1) in subparagraph (A)— ‘‘SEC. 500. PURPOSE. panels may be appointed by such nongovern- mental entity’’ before the period. (A) by striking ‘‘$6,000 annually’’ and insert- ‘‘It is the purpose of this title— ing ‘‘$10,000 for each academic year,’’; and ‘‘(1) to authorize national graduate fellowship (c) STIPENDS.—Section 503 (as redesignated by section 501(4)) (20 U.S.C. 1134j) is amended— (B) by striking ‘‘1993–1994’’ and inserting programs— ‘‘1999–2000’’; and ‘‘(A) in order to attract students of superior (1) in subsection (a)— (A) by striking ‘‘1993–1994’’ and inserting (2) in subparagraph (B)— ability and achievement, exceptional promise, ‘‘1999–2000’’; and (A) in the matter preceding clause (i), by and demonstrated financial need, into high- (B) by striking ‘‘according to measurements of striking ‘‘1993–1994’’ and inserting ‘‘1999–2000’’; quality graduate programs and provide the stu- need approved by the Secretary’’ and inserting (B) in clause (i), by striking ‘‘$9,000 for the dents with the financial support necessary to ‘‘determined in accordance with part F of title academic year 1993–1994’’ and inserting ‘‘$10,000 complete advanced degrees; and IV’’; and for the academic year 1999–2000’’; and ‘‘(B) that are designed to— (C) in clause (ii), by striking ‘‘$9,000’’ and in- (2) in subsection (b)(1)(A)— ‘‘(i) sustain and enhance the capacity for (A) in clause (i)— serting ‘‘$10,000’’. (e) AUTHORIZATION OF APPROPRIATIONS.—Sec- graduate education in areas of national need; (i) by striking ‘‘$6,000’’ and inserting ‘‘(ii) encourage talented students to pursue tion 517 (as redesignated by section 501(5)) (20 ‘‘$10,000’’; and scholarly careers in the humanities, social (ii) by striking ‘‘1993–1994’’ and inserting U.S.C. 1134q–1) is amended by striking sciences, and the arts; and ‘‘1999–2000’’; and ‘‘$40,000,000 for fiscal year 1993’’ and inserting ‘‘(iii) encourage talented individuals from (B) in clause (ii)— ‘‘$30,000,000 for fiscal year 1999’’. underrepresented groups to pursue faculty ca- (i) in the matter preceding subclause (I), by PART C—FACULTY DEVELOPMENT reers in higher education; and striking ‘‘1993–1994’’ and inserting ‘‘1999–2000’’; PROGRAM ‘‘(2) to promote postsecondary programs.’’. (ii) in subclause (I), by striking ‘‘$9,000 for the SEC. 531. FACULTY DEVELOPMENT PROGRAM RE- PART A—JACOB K. JAVITS FELLOWSHIP academic year 1993–1994’’ and inserting ‘‘$10,000 AUTHORIZED. PROGRAM for the academic year 1999–2000’’; and Title V (20 U.S.C. 1101 et seq.) is amended fur- SEC. 511. AWARD OF FELLOWSHIPS. (iii) in subclause (II), by striking ‘‘$9,000’’ and ther by inserting after part B (as redesignated (a) AWARD OF JACOB K. JAVITS FELLOW- inserting ‘‘$10,000’’. by section 501(a)(3)) the following: SHIPS.—Section 501 (as redesignated by section (d) AUTHORIZATION OF APPROPRIATIONS.—Sec- ‘‘PART C—FACULTY DEVELOPMENT 501(4)) is amended— tion 505 (as redesignated by section 501(4)) (20 FELLOWSHIPS U.S.C. 1134k–1) is amended by striking ‘‘1993’’ (1) in subsection (a)— ‘‘SEC. 521. FACULTY DEVELOPMENT FELLOW- (A) in the first sentence, by inserting ‘‘, finan- and inserting ‘‘1999’’. SHIPS AUTHORIZED. cial need,’’ after ‘‘demonstrated achievement’’; PART B—GRADUATE ASSISTANCE IN ‘‘(a) IN GENERAL.—The Secretary shall make (B) in the second sentence— AREAS OF NATIONAL NEED grants to institutions of higher education, or (i) by striking ‘‘students intending’’ and in- SEC. 521. GRADUATE ASSISTANCE IN AREAS OF consortia of such institutions, to enable such in- serting ‘‘students who are eligible to receive any NATIONAL NEED. stitutions to award fellowships to talented grad- grant, loan, or work assistance pursuant to sec- (a) DESIGNATION OF AREAS OF NATIONAL uate students in order to increase the access of tion 484 and intend’’; and NEED.—Subsection (b) of section 513 (as redesig- individuals from underrepresented groups to (ii) by striking ‘‘commonly accepted’’ and all nated by section 501(5)) (20 U.S.C. 1134n) is pursue graduate study, and to teach in institu- that follows through ‘‘degree-granting institu- amended to read as follows: tions of higher education. tion’’ and inserting ‘‘the terminal highest degree ‘‘(b) DESIGNATION OF AREAS OF NATIONAL ‘‘(b) UNDERREPRESENTED GROUPS DEFINED.— awarded in the area of study’’; and NEED.—After consultation with the National For the purpose of this part, the term ‘underrep- (C) in the third sentence, by inserting ‘‘fol- Science Foundation, the National Academy of resented groups’ means African Americans, His- lowing the fiscal year’’ after ‘‘July 1 of the fis- Sciences, and other appropriate Federal and panic Americans, Asian Americans, Native cal year’’; and nonprofit agencies and organizations, the Sec- Americans, Pacific Islanders, Native Hawaiians, (2) by adding at the end the following: retary shall designate areas of national need. In and individuals who are pursuing graduate ‘‘(d) PROCESS AND TIMING OF COMPETITION.— making such designations, the Secretary shall study in academic disciplines in which the indi- The Secretary shall make applications for fel- take into consideration— viduals are underrepresented for the individ- lowships under this part available not later ‘‘(1) the extent to which the national interest uals’ gender. than October 1 of the academic year preceding in the area is compelling; ‘‘(c) PREFERENCE.—In making awards under the academic year for which fellowships will be ‘‘(2) the extent to which other Federal pro- this part, the Secretary shall give preference to awarded, and shall announce the recipients of grams support postbaccalaureate study in the applicants with a demonstrated record of— fellowships under this section not later than area concerned; and ‘‘(1) admitting students from the Ronald E. March 1 of the academic year preceding the aca- ‘‘(3) an assessment of how the program may McNair Postbaccalaureate Achievement Pro- demic year for which the fellowships are award- achieve the most significant impact with avail- gram or a program with a similar purpose; ed. able resources.’’. ‘‘(2) graduating individuals from groups ‘‘(e) AUTHORITY TO CONTRACT.—The Sec- (b) CONTENT OF APPLICATIONS.—Section 514(b) underrepresented in graduate education; and retary is authorized to enter into a contract (as redesignated by section 501(5)) (20 U.S.C. ‘‘(3) placing the graduates of the institution with a nongovernmental agency to administer 1134o(b)) is amended— or consortium in faculty positions in institutions the program assisted under this part if the Sec- (1) in paragraph (2)— of higher education. retary determines that entering into the contract (A) by striking ‘‘funds’’ and inserting ‘‘(d) REPORTING.—Each institution of higher is an efficient means of carrying out the pro- ‘‘sources’’; and education or consortium receiving a grant under gram.’’. (B) by inserting ‘‘, which contribution may be this section shall, on an annual basis, provide (b) ALLOCATION OF FELLOWSHIPS.—Section 502 in cash or in kind, fairly valued’’ before the to the Secretary evidence regarding— (as redesignated by section 501(4)) (20 U.S.C. semicolon; ‘‘(1) the success of the institution in attracting 1134i) is amended— (2) by redesignating paragraphs (4) through underrepresented students into graduate pro- (1) in subsection (a)— (9) as paragraphs (5) through (10), respectively; grams; (A) in the third sentence of paragraph (1), by (3) by inserting after paragraph (3) the fol- ‘‘(2) graduating the students; and striking ‘‘knowledgeable about and have experi- lowing: ‘‘(3) the success of each graduate in obtaining ence’’ and inserting ‘‘representative of a range ‘‘(4) describe the number, types, and amounts a faculty position in an institution of higher of disciplines’’; and of the fellowships that the applicant intends to education.

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‘‘(e) APPLICATION REQUIRED.— veloping innovative methods for ensuring the ‘‘(f) GRANT AWARDS.—The Secretary shall ‘‘(1) IN GENERAL.—Each academic department successful transfer of students from 2-year to 4- award grants under this part for a period of 3 or program of an institution of higher education year institutions of higher education.’’. years. desiring a grant under this part shall submit an (2) AUTHORIZATION OF APPROPRIATIONS.—Sec- ‘‘(g) CONSTRUCTION.—Nothing in this section application to the Secretary at such time, in tion 551(d) (as redesignated by section 501(a)(7)) shall be construed to impose any additional such manner, and containing such information (20 U.S.C. 1135a–11(d)) is amended by striking duty, obligation, or responsibility on an institu- as the Secretary may reasonably require. ‘‘1993’’ and inserting ‘‘1999’’. tion of higher education, or on the institution’s ‘‘(2) ADDITIONAL ASSURANCES.—Each applica- PART F—HIGHER EDUCATION ACCESS administrators, faculty, or staff, in addition to tion submitted pursuant to paragraph (1) FOR STUDENTS WITH DISABILITIES; HIS- the requirements of section 504 of the Rehabili- shall— PANIC-SERVING INSTITUTIONS; GEN- tation Act of 1973 and the Americans with Dis- ‘‘(A) provide an assurance that, in the event ERAL PROVISIONS abilities Act of 1990. that funds made available to the academic de- ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— partment or program under this part are insuffi- SEC. 561. HIGHER EDUCATION ACCESS FOR STU- There are authorized to be appropriated to carry cient to provide assistance due a student under DENTS WITH DISABILITIES; HIS- PANIC-SERVING INSTITUTIONS; GEN- out this section $10,000,000 for fiscal year 1999 a commitment entered into between the aca- ERAL PROVISIONS. and such sums as may be necessary for each of demic department and the student, the academic Title V (20 U.S.C. 1101 et seq.) is amended fur- the 4 succeeding fiscal years. department or program will endeavor, from ther by adding at the end the following: ‘‘PART G—HISPANIC-SERVING funds available to the department or program, INSTITUTIONS to fulfill the commitment made to the student; ‘‘PART F—HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES ‘‘SEC. 580. FINDINGS. and ‘‘Congress makes the following findings: ‘‘(B) contain such other assurances as the ‘‘SEC. 571. HIGHER EDUCATION ACCESS FOR STU- ‘‘(1) Hispanic Americans are at high risk of DENTS WITH DISABILITIES. Secretary may reasonably require. not enrolling or graduating from institutions of ‘‘(3) APPROVAL OF APPLICATIONS.—The Sec- ‘‘(a) PURPOSE.—It is the purpose of this part— higher education. ‘‘(1) to support the development of model pro- retary shall prescribe criteria for the approval of ‘‘(2) Disparities between the enrollment of grams to provide technical assistance or train- applications submitted under paragraph (1). non-Hispanic white students and Hispanic stu- ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— ing, and professional development, for faculty dents in postsecondary education are increas- There are authorized to be appropriated to carry and administrators in institutions of higher edu- ing. Between 1973 and 1994, enrollment of white out this part $30,000,000 for fiscal year 1999 and cation, as defined in section 481(a), to provide secondary school graduates in 4-year institu- such sums as may be necessary for each of the the faculty and administrators with the skills tions of higher education increased at a rate 2 4 succeeding fiscal years.’’. and assistance to teach effectively students with times higher than that of Hispanic secondary disabilities; and PART D—URBAN COMMUNITY SERVICE school graduates. ‘‘(2) to ensure effective evaluation and dis- SEC. 541. URBAN COMMUNITY SERVICE. ‘‘(3) Despite significant limitations in re- semination of such model programs. (a) PRIORITY.—Section 533(b) (as redesignated sources, Hispanic-serving institutions provide a ‘‘(b) GRANTS AUTHORIZED.— by section 501(a)(6)) (20 U.S.C. 1136b(b)) is significant proportion of postsecondary opportu- ‘‘(1) IN GENERAL.—The Secretary is authorized amended by adding at the end the following: nities for Hispanic students. to award grants to institutions of higher edu- ‘‘In addition, the Secretary shall give priority to ‘‘(4) Relative to other institutions of higher cation to carry out the purposes of this part. eligible institutions submitting applications that education, Hispanic-serving institutions are un- ‘‘(2) MODEL PROGRAMS.—To the extent fea- demonstrate the eligible institution’s commit- derfunded. Such institutions receive signifi- sible, the model programs developed under this ment to urban community service.’’. cantly less in State and local funding, per full- part shall be developed for a range of types and (b) AUTHORIZATION OF APPROPRIATIONS.—Sec- time equivalent student, than other institutions sizes of institutions of higher education. tion 539 (as redesignated by section 501(a)(6)) (20 of higher education. ‘‘(3) GEOGRAPHIC DISTRIBUTION.—In awarding U.S.C. 1136h) is amended by striking ‘‘1993’’ and ‘‘(5) Hispanic-serving institutions are suc- grants under this part, the Secretary shall con- inserting ‘‘1999’’. ceeding in educating Hispanic students despite sider— PART E—FUND FOR THE IMPROVEMENT significant resource problems that— ‘‘(A) providing an equitable geographic dis- ‘‘(A) limit the ability of such institutions to OF POSTSECONDARY EDUCATION tribution of such grants; and expand and improve the academic programs of SEC. 551. FUND FOR THE IMPROVEMENT OF ‘‘(B) distributing such grants to urban and such institutions; and POSTSECONDARY EDUCATION. rural areas. ‘‘(B) could imperil the financial and adminis- (a) AUTHORITY.—Section 541(a) (as redesig- ‘‘(4) APPROACHES.—The Secretary shall award trative stability of such institutions. nated by section 501(a)(7)) (20 U.S.C. 1135(a)) is grants under this part for a range of approaches ‘‘(6) There is a national interest in remedying amended— to providing support to faculty and administra- the disparities described in paragraphs (2) and (1) in the matter preceding paragraph (1)— tors, such as in-service training, professional de- (4) and ensuring that Hispanic students have an (A) by striking ‘‘or combinations of such insti- velopment, customized and general technical as- equal opportunity to pursue postsecondary op- tutions’’ and inserting ‘‘, combinations of such sistance, workshops, summer institutes, distance portunities. institutions,’’; and learning and the use of educational technology. (B) by striking ‘‘institutions and combinations ‘‘SEC. 581. PURPOSE. ‘‘(c) DISSEMINATION OF GRANTS.—The Sec- ‘‘The purpose of this part is to— of such institutions’’ and inserting ‘‘institu- retary may award grants to institutions of high- ‘‘(1) expand educational opportunities for, tions, combinations, and agencies’’; and er education that have demonstrated excep- and improve the academic attainment of, His- (2) in paragraph (2)— tional programs for students with disabilities (A) by striking ‘‘and programs involving new’’ panic students; and under this part in order to disseminate those ‘‘(2) expand and enhance the academic offer- and inserting ‘‘, programs and joint efforts in- programs. ings, program quality, and institutional stability volving’’; and ‘‘(d) APPLICATIONS.—Each institution of high- (B) by striking ‘‘new combinations’’ and in- of colleges and universities that are educating er education desiring a grant under this part serting ‘‘combinations’’. the majority of Hispanic college students and shall submit an application to the Secretary at (b) TECHNICAL EMPLOYEES.—Section 543(a) (as helping large numbers of Hispanic students and such time, in such manner, and accompanied by redesignated by section 501(a)(7)) (20 U.S.C. other low-income individuals complete postsec- such information as the Secretary may require. 1135a–2(a)) is amended by striking ‘‘5 technical’’ ondary degrees. Each such application shall include— and inserting ‘‘7 technical’’. ‘‘SEC. 582. PROGRAM AUTHORIZED. ‘‘(1) a plan to assess the needs of the institu- (c) AUTHORIZATION OF APPROPRIATIONS.—Sec- ‘‘(a) IN GENERAL.—The Secretary shall pro- tion 544 (as redesignated by section 501(a)(7)) (20 tion of higher education in order to meet the vide grants and related assistance to Hispanic- U.S.C. 1135a–3) is amended— purposes of this part, in consultation with a serving institutions to enable such institutions (1) in subsection (a), by striking ‘‘$20,000,000 broad range of persons within that institution; to improve and expand their capacity to serve for fiscal year 1993’’ and inserting ‘‘$26,000,000 and Hispanic students and other low-income individ- for fiscal year 1999’’; and ‘‘(2) a plan for coordinating with or collabo- uals. (2) in subsection (b), by striking ‘‘1993’’ and rating with the office within the institution that ‘‘(b) AUTHORIZED ACTIVITIES.— inserting ‘‘1999’’. provides services to students with disabilities, ‘‘(1) TYPES OF ACTIVITIES AUTHORIZED.— (d) AREAS OF NATIONAL NEED.— and the equal opportunity office within the in- Grants awarded under this section shall be used (1) AREAS.—Section 551(c) (as redesignated by stitution, if the offices exist. by Hispanic-serving institutions of higher edu- section 501(a)(7)) (20 U.S.C. 1135a–11(c)) is ‘‘(e) USE OF FUNDS.—Any institution of higher cation to assist such institutions to plan, de- amended— education receiving a grant under this part— velop, undertake, and carry out programs to im- (A) in paragraph (2), by striking ‘‘Campus cli- ‘‘(1) shall use the grant funds to— prove and expand such institutions’ capacity to mate and culture’’ and inserting ‘‘Institutional ‘‘(A) meet the purposes of this section; and serve Hispanic students and other low-income restructuring to improve learning and promote ‘‘(B) ensure that projects assisted under this students. cost efficiencies’’; part include components for model development, ‘‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES.— (B) in paragraph (3), by inserting ‘‘of model demonstration, evaluation, and dissemination to The programs described in paragraph (1) may programs’’ after ‘‘dissemination’’; and other institutions of higher education; and include— (C) by adding at the end the following: ‘‘(2) may include, to the extent practicable, ‘‘(A) purchase, rental, or lease of scientific or ‘‘(4) Articulation between 2-year and 4-year graduate teaching assistants in the services pro- laboratory equipment for educational purposes, institutions of higher education, including de- vided under the grant. including instructional and research purposes;

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00089 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S8004 CONGRESSIONAL RECORD — SENATE July 10, 1998 ‘‘(B) renovation and improvement in class- receive funds under part A or B of title III dur- ‘‘(3) prelaw mentoring programs, involving room, library, laboratory, and other instruc- ing the period for which funds under this part law school faculty, members of State and local tional facilities; are awarded. bar associations, and retired and sitting judges, ‘‘(C) support of faculty exchanges, and fac- ‘‘SEC. 585. DEFINITIONS. justices, and magistrates; ulty development and faculty fellowships to as- ‘‘For purposes of this part: ‘‘(4) assistance in identifying preparatory sist in attaining advanced degrees in their field ‘‘(1) HISPANIC-SERVING INSTITUTION.—The courses and material for the law school aptitude of instruction; term ‘Hispanic-serving institution’ means an in- or admissions tests; ‘‘(D) curriculum development and academic stitution of higher education which— ‘‘(5) summer institutes for Thurgood Marshall instruction; ‘‘(A) is an eligible institution under section Fellows that expose the Fellows to a rigorous ‘‘(E) purchase of library books, periodicals, 312(b); curriculum that emphasizes abstract thinking, microfilm, and other educational materials; ‘‘(B) at the time of application, has an enroll- legal analysis, research, writing, and examina- ‘‘(F) funds and administrative management, ment of undergraduate full-time equivalent stu- tion techniques; and and acquisition of equipment for use in dents that is at least 25 percent Hispanic stu- ‘‘(6) midyear seminars and other educational strengthening funds management; dents; and activities that are designed to reinforce reading, ‘‘(G) joint use of facilities such as laboratories ‘‘(C) provides assurances that not less than 50 writing, and studying skills of Thurgood Mar- and libraries; percent of its Hispanic students are low-income shall Fellows. ‘‘(H) academic tutoring and counseling pro- individuals. ‘‘(e) DURATION OF THE PROVISION OF SERV- grams and student support services; and ‘‘(2) LOW-INCOME INDIVIDUAL.—The term ‘low- ICES.—The services described in subsection (d) ‘‘(I) expanding the number of Hispanic and income individual’ means an individual from a may be provided— other underrepresented graduate and profes- family whose taxable income for the preceding ‘‘(1) prior to the period of law school study; sional students that can be served by the insti- year did not exceed 150 percent of an amount ‘‘(2) during the period of law school study; tution by expanding courses and institutional equal to the poverty level determined by using and ‘‘(3) during the period following law school resources. criteria of poverty established by the Bureau of ‘‘(3) ENDOWMENT FUND.— study and prior to taking a bar examination. the Census. ‘‘(A) IN GENERAL.—A Hispanic-serving institu- ‘‘(f) SUBCONTRACTS AND SUBGRANTS.—For the tion may use not more than 20 percent of the ‘‘SEC. 586. AUTHORIZATION OF APPROPRIATIONS. purposes of planning, developing, or delivering grant funds provided under this part to estab- ‘‘There are authorized to be appropriated to one or more of the services described in sub- lish or increase an endowment fund at the insti- carry out this part $45,000,000 for fiscal year section (d), the Council on Legal Education Op- tution. 1999 and such sums as may be necessary for portunity shall enter into subcontracts with, ‘‘(B) MATCHING REQUIREMENT.—In order to be each of the 4 succeeding fiscal years. and make subgrants to, institutions of higher eligible to use grant funds in accordance with ‘‘PART H—THURGOOD MARSHALL LEGAL education, law schools, public and private agen- subparagraph (A), the Hispanic-serving institu- EDUCATIONAL OPPORTUNITY PROGRAM cies and organizations, and combinations of tion shall provide matching funds, in an ‘‘SEC. 588. LEGAL EDUCATIONAL OPPORTUNITY such institutions, schools, agencies, and organi- amount equal to the Federal funds used in ac- PROGRAM. zations. cordance with subparagraph (A), for the estab- ‘‘(a) PROGRAM AUTHORITY.—The Secretary ‘‘(g) STIPENDS.—The Secretary shall annually lishment or increase of the endowment fund. shall carry out a program to be known as the establish the maximum stipend to be paid (in- ‘‘(C) COMPARABILITY.—The provisions of part ‘Thurgood Marshall Legal Educational Oppor- cluding allowances for participant travel and C of title III regarding the establishment or in- tunity Program’ designed to provide low-income, for the travel of the dependents of the partici- crease of an endowment fund, that the Sec- minority, or disadvantaged college students with pant) to Thurgood Marshall Fellows for the pe- retary determines are not inconsistent with this the information, preparation, and financial as- riod of participation in summer institutes and paragraph, shall apply to funds used under sub- sistance to gain access to and complete law midyear seminars. A Fellow may be eligible for paragraph (A). school study. such a stipend only if the Fellow maintains sat- ‘‘(c) WAIT-OUT-PERIOD.—Each Hispanic-serv- ‘‘(b) ELIGIBILITY.—A college student is eligible isfactory academic progress toward the Juris ing institution that receives a grant under this for assistance under this section if the student Doctor or Bachelor of Laws degree, as deter- part shall not be eligible to receive an additional is— mined by the respective institutions. grant under this part until 2 years after the ‘‘(1) from a low-income family; ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— date on which the preceding grant period termi- ‘‘(2) a minority; or There are authorized to be appropriated to carry nates. ‘‘(3) from an economically or otherwise dis- out this section $5,000,000 for fiscal year 1999 ‘‘SEC. 583. APPLICATION PROCESS. advantaged background. and each of the 4 succeeding fiscal years. ‘‘(a) INSTITUTIONAL ELIGIBILITY.—Each His- ‘‘(c) CONTRACT OR GRANT AUTHORIZED.—The ‘‘PART I—GENERAL PROVISIONS panic-serving institution desiring to receive as- Secretary is authorized to enter into a contract with, or make a grant to, the Council on Legal ‘‘SEC. 591. ADMINISTRATIVE PROVISIONS FOR sistance under this part shall submit to the Sec- PARTS A, B, AND C. Education Opportunity, for a period of not less retary such enrollment data as may be nec- ‘‘(a) COORDINATED ADMINISTRATION.—In car- essary to demonstrate that the institution is a than 5 years— rying out the purpose described in section ‘‘(1) to identify college students who are from Hispanic-serving institution as defined in sec- 500(1), the Secretary shall provide for coordi- low-income families, are minorities, or are from tion 585, along with such other data and infor- nated administration and regulation of grad- disadvantaged backgrounds described in sub- mation as the Secretary may by regulation re- uate programs assisted under parts A, B, and C quire. section (b)(3); with other Federal programs providing assist- ‘‘(2) to prepare such students for study at ac- ‘‘(b) APPLICATIONS.—Any institution which is ance for graduate education in order to mini- determined by the Secretary to be a Hispanic- credited law schools; ‘‘(3) to assist such students to select the ap- mize duplication and improve efficiency to en- serving institution (on the basis of the data and propriate law school, make application for entry sure that the programs are carried out in a man- information submitted under subsection (a)) ner most compatible with academic practices into law school, and receive financial assistance may submit an application for assistance under and with the standard timetables for applica- for such study; this part to the Secretary. Such application ‘‘(4) to provide support services to such stu- tions for, and notifications of acceptance to, shall include— dents who are first-year law students to improve graduate programs. ‘‘(1) a 5-year plan for improving the assist- ‘‘(b) HIRING AUTHORITY.—For purposes of car- retention and success in law school studies; and ance provided by the Hispanic-serving institu- ‘‘(5) to motivate and prepare such students rying out parts A, B, and C, the Secretary shall tion to Hispanic students and other low-income with respect to law school studies and practice appoint, without regard to the provisions of title individuals; and 5, United States Code, that govern appointments ‘‘(2) such other information and assurance as in low-income communities. ‘‘(d) SERVICES PROVIDED.—In carrying out the in the competitive service, such administrative the Secretary may require. purposes described in subsection (c), the con- and technical employees, with the appropriate ‘‘(c) PRIORITY.—With respect to applications educational background, as shall be needed to for assistance under this section, the Secretary tract or grant shall provide for the delivery of services through prelaw information resource assist in the administration of such parts. The shall give priority to an application that con- employees shall be paid without regard to the tains satisfactory evidence that the Hispanic- centers, summer institutes, midyear seminars, and other educational activities, conducted provisions of chapter 51 and subchapter III of serving institution has entered into or will enter chapter 53 of such title relating to classification into a collaborative arrangement with at least under this section. Such services may include— ‘‘(1) information and counseling regarding— and General Schedule pay rates. one local educational agency or community- ‘‘(A) accredited law school academic pro- ‘‘(c) USE FOR RELIGIOUS PURPOSES PROHIB- based organization to provide such agency or grams, especially tuition, fees, and admission re- ITED.—No institutional payment or allowance organization with assistance (from funds other quirements; under section 503(b) or 516 shall be paid to a than funds provided under this part) in reduc- ‘‘(B) course work offered and required for school or department of divinity as a result of ing dropout rates for Hispanic students, improv- graduation; the award of a fellowship under part A or B, re- ing rates of academic achievement for Hispanic ‘‘(C) faculty specialties and areas of legal em- spectively, to an individual who is studying for students, and increasing the rates at which His- phasis; and a religious vocation. panic secondary school graduates enroll in ‘‘(D) undergraduate preparatory courses and ‘‘(d) EVALUATION.—The Secretary shall evalu- higher education. curriculum selection; ate the success of assistance provided to individ- ‘‘SEC. 584. SPECIAL RULE. ‘‘(2) tutoring and academic counseling, in- uals under part A, B, or C with respect to grad- ‘‘No Hispanic-serving institution that is eligi- cluding assistance in preparing for bar examina- uating from their degree programs, and place- ble for and receives funds under this part may tions; ment in faculty and professional positions.

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‘‘(e) CONTINUATION AWARDS.—The Secretary, ‘‘(A) faculty, staff, and student travel in for- ‘‘(2) may include— using funds appropriated to carry out parts A eign areas, regions, or countries; ‘‘(A) the conduct and dissemination of re- and B, and before awarding any assistance ‘‘(B) teaching and research materials; search on new and improved teaching methods, under such parts to a recipient that did not re- ‘‘(C) curriculum planning and development; including the use of advanced educational tech- ceive assistance under part C or D of title IX (as ‘‘(D) bringing visiting scholars and faculty to nology; such parts were in effect prior to the date of en- the center to teach or to conduct research; ‘‘(B) the development and dissemination of actment of the Higher Education Amendments ‘‘(E) establishing and maintaining linkages new teaching materials reflecting the use of of 1998) shall continue to provide funding to re- with overseas institutions of higher education such research in effective teaching strategies; cipients of assistance under such part C or D (as and other organizations that may contribute to ‘‘(C) the development, application, and dis- so in effect), as the case may be, pursuant to the teaching and research of the center or pro- semination of performance testing appropriate any multiyear award of such assistance.’’. gram; and to an educational setting for use as a standard TITLE VI—INTERNATIONAL EDUCATION ‘‘(F) training and improvement of the staff, and comparable measurement of skill levels in PROGRAMS for the purpose of, and subject to such condi- all languages; tions as the Secretary finds necessary for, car- ‘‘(D) the training of teachers in the adminis- SEC. 601. INTERNATIONAL AND FOREIGN LAN- tration and interpretation of performance tests, GUAGE STUDIES. rying out this section. Part A of title VI (20 U.S.C. 1121 et seq.) is ‘‘(3) GRANTS TO MAINTAIN LIBRARY COLLEC- the use of effective teaching strategies, and the amended to read as follows: TIONS.—The Secretary may make grants to cen- use of new technologies; ters described in paragraph (1) having impor- ‘‘(E) the publication and dissemination to in- ‘‘PART A—INTERNATIONAL AND FOREIGN tant library collections, as determined by the dividuals and organizations in the foreign lan- LANGUAGE STUDIES Secretary, for the maintenance of such collec- guage field of instructional materials in the less ‘‘SEC. 601. FINDINGS AND PURPOSES. tions. commonly taught languages; ‘‘(a) FINDINGS.—The Congress finds that— ‘‘(4) OUTREACH GRANTS AND SUMMER INSTI- ‘‘(F) the development and dissemination of ‘‘(1) the well-being of the United States, its TUTES.—The Secretary may make additional materials designed to serve as a resource for for- economy and long-range security, is dependent grants to centers described in paragraph (1) for eign language teachers at the elementary and on the education and training of Americans in any one or more of the following purposes: secondary school levels; and international and foreign language studies and ‘‘(A) Programs of linkage or outreach between ‘‘(G) the operation of intensive summer lan- on a strong research base in these areas; foreign language, area studies, and other inter- guage institutes to train advanced foreign lan- ‘‘(2) knowledge of other countries and the national fields and professional schools and col- guage students, provide professional develop- ability to communicate in other languages is es- leges. ment, and improve language instruction sential to the promotion of mutual under- ‘‘(B) Programs of linkage or outreach with 2- through preservice and inservice language standing and cooperation among nations; and year and 4-year colleges and universities. training for teachers. ‘‘(3) systematic efforts are necessary to en- ‘‘(C) Programs of linkage or outreach with de- ‘‘(c) CONDITIONS FOR GRANTS.—Grants under hance the capacity of institutions of higher edu- partments or agencies of Federal and State Gov- this section shall be made on such conditions as cation in the United States for— ernments. the Secretary determines to be necessary to ‘‘(A) producing graduates with international carry out the provisions of this section. and foreign language expertise and knowledge; ‘‘(D) Programs of linkage or outreach with the news media, business, professional, or trade as- ‘‘SEC. 604. UNDERGRADUATE INTERNATIONAL and STUDIES AND FOREIGN LANGUAGE ‘‘(B) research regarding such expertise and sociations. ‘‘(E) Summer institutes in foreign area, for- PROGRAMS. knowledge. ‘‘(a) INCENTIVES FOR THE CREATION OF NEW ‘‘(b) PURPOSES.—It is the purpose of this eign language, and other international fields designed to carry out the programs of linkage PROGRAMS AND THE STRENGTHENING OF EXISTING part— PROGRAMS IN UNDERGRADUATE INTERNATIONAL ‘‘(1) to assist in the development of knowl- and outreach in subparagraphs (A), (B), (C), STUDIES AND FOREIGN LANGUAGES.— edge, international study, resources and trained and (D). ‘‘(1) AUTHORITY.—The Secretary is authorized ‘‘(b) STIPENDS FOR FOREIGN LANGUAGE AND personnel; to make grants to institutions of higher edu- ‘‘(2) to stimulate the attainment of foreign AREA STUDIES.— cation, combinations of such institutions, or language acquisition and fluency; ‘‘(1) IN GENERAL.—The Secretary is authorized partnerships between nonprofit educational in- ‘‘(3) to develop a pool of international experts to make grants to institutions of higher edu- stitutions and institutions of higher education, to meet national needs; and cation or combinations of such institutions for ‘‘(4) to coordinate the programs of the Federal the purpose of paying stipends to individuals to assist such institutions, combinations or part- Government in the areas of foreign language, undergoing advanced training in any center or nerships in planning, developing, and carrying area and other international studies, including program approved by the Secretary. out programs to improve undergraduate instruc- tion in international studies and foreign lan- professional international affairs education, ‘‘(2) REQUIREMENTS.—Students receiving sti- and research. pends described in paragraph (1) shall be indi- guages. Such grants shall be awarded to institu- tions, combinations or partnerships seeking to ‘‘SEC. 602. GRADUATE AND UNDERGRADUATE viduals who are engaged in an instructional create new programs or to strengthen existing LANGUAGE AND AREA CENTERS AND program with stated performance goals for func- PROGRAMS. tional foreign language use or in a program de- programs in area studies, foreign languages, ‘‘(a) NATIONAL LANGUAGE AND AREA CENTERS veloping such performance goals, in combina- and other international fields. ‘‘(2) FEDERAL SHARE AND USE OF FUNDS.— AND PROGRAMS AUTHORIZED.— tion with area studies, international studies, or Grants made under this section may be used to ‘‘(1) CENTERS AND PROGRAMS.— the international aspects of a professional stud- pay not more than 50 percent of the cost of ‘‘(A) IN GENERAL.—The Secretary is author- ies program. projects and activities which are an integral ized— ‘‘(3) ALLOWANCES.—Stipends awarded to grad- part of such a program, such as— ‘‘(i) to make grants to institutions of higher uate level recipients may include allowances for ‘‘(A) planning for the development and expan- education, or combinations thereof, for the pur- dependents and for travel for research and sion of undergraduate programs in international pose of establishing, strengthening, and oper- study in the United States and abroad. studies and foreign languages; ating comprehensive language and area centers ‘‘(c) SPECIAL RULE WITH RESPECT TO TRAV- ‘‘(B) teaching, research, curriculum develop- and programs; and EL.—No funds may be expended under this part ment, faculty training in the United States or ‘‘(ii) to make grants to such institutions or for undergraduate travel except in accordance abroad, and other related activities, including combinations for the purpose of establishing, with rules prescribed by the Secretary setting the expansion of library and teaching resources; strengthening, and operating a diverse network forth policies and procedures to assure that Fed- ‘‘(C) expansion of opportunities for learning of undergraduate language and area centers eral funds made available for such travel are ex- foreign languages, including less commonly and programs. pended as part of a formal program of super- ATIONAL RESOURCES.—The centers and taught languages; ‘‘(B) N vised study. programs referred to in paragraph (1) shall be ‘‘(D) programs under which foreign teachers national resources for— ‘‘SEC. 603. LANGUAGE RESOURCE CENTERS. and scholars may visit institutions as visiting ‘‘(i) teaching of any modern foreign language; ‘‘(a) LANGUAGE RESOURCE CENTERS AUTHOR- faculty; ‘‘(ii) instruction in fields needed to provide IZED.—The Secretary is authorized to make ‘‘(E) programs designed to develop or enhance full understanding of areas, regions, or coun- grants to and enter into contracts with institu- linkages between 2-year and 4-year institutions tries in which such language is commonly used; tions of higher education, or combinations of of higher education, or baccalaureate and post- ‘‘(iii) research and training in international such institutions, for the purpose of estab- baccalaureate programs or institutions; studies, and the international and foreign lan- lishing, strengthening, and operating a small ‘‘(F) the development of undergraduate study guage aspects of professional and other fields of number of national language resource and abroad programs in locations abroad in which study; and training centers, which shall serve as resources such study opportunities are not otherwise ‘‘(iv) instruction and research on issues in to improve the capacity to teach and learn for- available and the integration of these programs world affairs which concern one or more coun- eign languages effectively. into specific on-campus degree programs; tries. ‘‘(b) AUTHORIZED ACTIVITIES.—The activities ‘‘(G) the development of model programs to ‘‘(2) AUTHORIZED ACTIVITIES.—Any such grant carried out by the centers described in sub- enhance the effectiveness of study abroad, in- may be used to pay all or part of the cost of es- section (a)— cluding predeparture and post return programs; tablishing or operating a center or program, in- ‘‘(1) shall include effective dissemination ef- ‘‘(H) the development of programs designed to cluding the cost of— forts, whenever appropriate; and integrate professional and technical education

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00091 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S8006 CONGRESSIONAL RECORD — SENATE July 10, 1998 with area studies, foreign languages, and other this title by governmental, educational, and pri- ‘‘(2) the cost of faculty, staff, and student international fields; vate sector organizations and other studies as- travel; ‘‘(I) the conduct of summer institutes in for- sessing the outcomes and effectiveness of pro- ‘‘(3) the cost of the operation and mainte- eign area, foreign language, and other inter- grams so supported; nance of overseas facilities; national fields for purposes that are consistent ‘‘(3) evaluation of the extent to which pro- ‘‘(4) the cost of teaching and research mate- with the projects and activities described in this grams assisted under this title that address na- rials; subsection; and tional needs would not otherwise be offered; ‘‘(5) the cost of acquisition, maintenance, and ‘‘(J) the development of partnerships between ‘‘(4) comparative studies of the effectiveness of preservation of library collections; institutions of higher education and the private strategies to provide international capabilities ‘‘(6) the cost of bringing visiting scholars and sector, government, and elementary and sec- at institutions of higher education; faculty to a center to teach or to conduct re- ondary education institutions to enhance inter- ‘‘(5) research on more effective methods of search; national knowledge. providing instruction and achieving competency ‘‘(7) the cost of organizing and managing con- ‘‘(3) NON-FEDERAL SHARE.—The non-Federal in foreign languages; ferences; and share of the cost of the programs assisted under ‘‘(6) the development and publication of spe- ‘‘(8) the cost of publication and dissemination this subsection may be provided either in cash cialized materials for use in foreign language, of material for the scholarly and general public. or in kind. Such assistance may be composed of area studies, and other international fields, or ‘‘(c) LIMITATION.—The Secretary shall only institutional and noninstitutional funds, in- for training foreign language, area, and other award grants to and enter into contracts with cluding State, private sector, corporation, or international specialists; centers under this section that— foundation contributions. ‘‘(7) studies and evaluations of effective prac- ‘‘(1) receive more than 50 percent of their funding from public or private United States ‘‘(4) PRIORITY.—In awarding grants under tices in the dissemination of international infor- this section, the Secretary shall give priority to mation, materials, research, teaching strategies, sources; ‘‘(2) have a permanent presence in the coun- applications from institutions of higher edu- and testing techniques throughout the edu- try in which the center is located; and cation, combinations or partnerships that re- cation community, including elementary and ‘‘(3) are organizations described in section quire entering students to have successfully secondary schools; and 501(c)(3) of the Internal Revenue Code of 1986 completed at least 2 years of secondary school ‘‘(8) the application of performance tests and which are exempt from taxation under section foreign language instruction or that require standards across all areas of foreign language 501(a) of such Code. each graduating student to earn 2 years of post- instruction and classroom use. NNUAL REPORT.—The Secretary shall ‘‘(d) DEVELOPMENT GRANTS.—The Secretary is secondary credit in a foreign language (or have ‘‘(b) A prepare, publish, and announce an annual re- authorized to make grants for the establishment demonstrated equivalent competence in the for- port listing the books and research materials of new centers. The grants may be used to fund eign language) or, in the case of a 2-year degree produced with assistance under this section. activities that, within 1 year, will result in the granting institution, offer 2 years of postsec- creation of a center described in subsection (c). ondary credit in a foreign language. ‘‘SEC. 606. SELECTION OF CERTAIN GRANT RE- CIPIENTS. ‘‘SEC. 609. AUTHORIZATION OF APPROPRIATIONS. ‘‘(5) GRANT CONDITIONS.—Grants under this ‘‘(a) COMPETITIVE GRANTS.—The Secretary subsection shall be made on such conditions as ‘‘There are authorized to be appropriated to shall award grants under section 602 competi- the Secretary determines to be necessary to carry out this part $80,000,000 for fiscal year tively on the basis of criteria that separately, carry out this subsection. 1999, and such sums as may be necessary for but not less rigorously, evaluates the applica- each of the 4 succeeding fiscal years.’’. ‘‘(6) APPLICATION.—Each application for as- sistance under this subsection shall include— tions for comprehensive and undergraduate lan- SEC. 602. BUSINESS AND INTERNATIONAL EDU- ‘‘(A) evidence that the applicant has con- guage and area centers and programs. CATION PROGRAMS. ‘‘(b) SELECTION CRITERIA.—The Secretary ducted extensive planning prior to submitting Part B of title VI (20 U.S.C. 1130 et seq.) is shall set criteria for grants awarded under sec- the application; amended— tion 602 by which a determination of excellence ‘‘(B) an assurance that the faculty and ad- (1) in section 612 (20 U.S.C. 1130–1)— shall be made to meet the differing objectives of (A) in subsection (c)— ministrators of all relevant departments and graduate and undergraduate institutions. (i) in paragraph (1)— programs served by the applicant are involved ‘‘(c) EQUITABLE DISTRIBUTION OF GRANTS.— (I) in subparagraph (B), by striking ‘‘ad- in ongoing collaboration with regard to achiev- The Secretary shall, to the extent practicable, vanced’’; and ing the stated objectives of the application; award grants under this part (other than sec- (II) in subparagraph (C), by striking ‘‘evening ‘‘(C) an assurance that students at the appli- tion 602) in such manner as to achieve an equi- or summer’’; and cant institutions, as appropriate, will have table distribution of the grant funds throughout (ii) in paragraph (2)(C), by inserting ‘‘foreign equal access to, and derive benefits from, the the United States, based on the merit of a pro- language,’’ after ‘‘studies,’’; and program assisted under this subsection; and posal as determined pursuant to a peer review (B) in subsection (d)(2)(G), by inserting ‘‘, ‘‘(D) an assurance that each institution, com- process involving broadly representative profes- such as a representative of a community college bination or partnership will use the Federal as- sionals. in the region served by the center’’ before the sistance provided under this subsection to sup- period; and plement and not supplant funds expended by ‘‘SEC. 607. EQUITABLE DISTRIBUTION OF CER- TAIN FUNDS. (2) in section 614 (20 U.S.C. 1130b)— the institution, prior to the receipt of the Fed- ‘‘(a) SELECTION CRITERIA.—The Secretary (A) in subsection (a), by striking ‘‘1993’’ and eral assistance, for programs to improve under- shall make excellence the criterion for selection inserting ‘‘1999’’; and graduate instruction in international studies of grants awarded under section 602. (B) in subsection (b), by striking ‘‘1993’’ and and foreign languages. ‘‘(b) EQUITABLE DISTRIBUTION.—To the extent inserting ‘‘1999’’. ‘‘(7) EVALUATION.—The Secretary may estab- practicable and consistent with the criterion of SEC. 603. INSTITUTE FOR INTERNATIONAL PUB- lish requirements for program evaluations and excellence, the Secretary shall award grants LIC POLICY. require grant recipients to submit annual re- under this part (other than section 602) in such Part C of title VI (20 U.S.C. 1131 et seq.) is ports that evaluate the progress and perform- a manner as will achieve an equitable distribu- amended— ance of students participating in programs as- tion of funds throughout the United States. (1) in section 621(e) (20 U.S.C. 1131(e))— sisted under this subsection. ‘‘(c) SUPPORT FOR UNDERGRADUATE EDU- (A) by striking ‘‘one-fourth’’ and inserting ‘‘(b) PROGRAMS OF NATIONAL SIGNIFICANCE.— CATION.—The Secretary shall also award grants ‘‘one-half’’; and The Secretary may also award grants to public under this part in such manner as to ensure (B) by adding at the end the following: ‘‘The and private nonprofit agencies and organiza- that an appropriate portion of the funds appro- non-Federal contribution shall be made from tions, including professional and scholarly asso- priated for this part (as determined by the Sec- private sector sources.’’; ciations, whenever the Secretary determines retary) are used to support undergraduate edu- (2) by redesignating sections 622 through 627 such grants will make an especially significant cation. (20 U.S.C. 1131a and 1131f) as sections 623 contribution to improving undergraduate inter- ‘‘SEC. 608. AMERICAN OVERSEAS RESEARCH CEN- through 628, respectively; and national studies and foreign language programs. TERS. (3) by inserting after section 621 (20 U.S.C. ‘‘SEC. 605. RESEARCH; STUDIES; ANNUAL REPORT. ‘‘(a) CENTERS AUTHORIZED.—The Secretary is 1131) the following: ‘‘(a) AUTHORIZED ACTIVITIES.—The Secretary authorized to make grants to and enter into ‘‘SEC. 622. INSTITUTIONAL DEVELOPMENT. may, directly or through grants or contracts, contracts with any American overseas research ‘‘(a) IN GENERAL.—The Institute shall award conduct research and studies that contribute to center that is a consortium of institutions of grants, from amounts available to the Institute achieving the purposes of this part. Such re- higher education (hereafter in this section re- for each fiscal year, to historically Black col- search and studies may include— ferred to as a ‘‘center’’) to enable such center to leges and universities, Hispanic-serving institu- ‘‘(1) studies and surveys to determine needs promote postgraduate research, exchanges and tions, Tribally Controlled Colleges or Univer- for increased or improved instruction in foreign area studies. sities, and minority institutions, to enable such language, area studies, or other international ‘‘(b) USE OF GRANTS.—Grants made and con- colleges, universities, and institutions to fields, including the demand for foreign lan- tracts entered into pursuant to this section may strengthen international affairs programs. guage, area, and other international specialists be used to pay all or a portion of the cost of es- ‘‘(b) APPLICATION.—No grant may be made by in government, education, and the private sec- tablishing or operating a center or program, in- the Institute unless an application is made by tor; cluding— the college, university, or institution at such ‘‘(2) studies and surveys to assess the utiliza- ‘‘(1) the cost of faculty and staff stipends and time, in such manner, and accompanied by such tion of graduates of programs supported under salaries; information as the Institute may require.

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‘‘(c) DEFINITIONS.—In this section— (4) by striking ‘‘such college’’ each place the (g) REGULATIONS.—The Secretary of Edu- ‘‘(1) the term ‘historically Black college and term appears and inserting ‘‘such college or uni- cation shall prescribe such regulations as are university’ has the meaning given the term in versity’’; and necessary to carry out this section. section 322; (5) by striking ‘‘community college’s’’ and in- (h) REPORT.—Each State annually shall re- ‘‘(2) the term ‘Hispanic-serving institution’ serting ‘‘college or university’s’’. port to the Secretary of Education regarding— has the meaning given the term in section 585; SEC. 712. AMERICAN INDIAN, ALASKA NATIVE, (1) the number of low-income individuals in ‘‘(3) the term ‘Tribally Controlled College or AND NATIVE HAWAIIAN CULTURE the State who receive assistance under this sec- University’ has the meaning given the term in AND ART DEVELOPMENT. tion; and section 2 of the Tribally Controlled College or Section 1531 of the American Indian, Alaska (2) the teacher training and other activities University Assistance Act of 1978 (25 U.S.C. Native, and Native Hawaiian Culture and Art described in subsection (e). 1801); and Development Act (20 U.S.C. 4451) is amended to (i) DEFINITION.—In this section: ‘‘(4) the term ‘minority institution’ has the read as follows: (1) ADVANCED PLACEMENT TEST.—The term ‘‘advanced placement test’’ includes only an ad- meaning given the term in section 365.’’; ‘‘SEC. 1531. AUTHORIZATION OF APPROPRIA- (4) in section 623 (as redesignated by para- TIONS. vanced placement test approved by the Sec- graph (2))— ‘‘There is authorized to be appropriated to retary of Education for the purposes of this sec- (A) in the section heading, by striking ‘‘JUN- carry out part A $5,000,000 for fiscal year 1999.’’. tion. IOR YEAR’’ and inserting ‘‘STUDY’’; (2) LOW-INCOME INDIVIDUAL.—The term ‘‘low- SEC. 713. NAVAJO COMMUNITY COLLEGE ACT. income individual’’ has the meaning given the (B) in subsection (b)(2)— Section 5(a)(1) of the Navajo Community Col- (i) by inserting ‘‘, or completing the third year term in section 402A(g)(2) of the Higher Edu- lege Act (25 U.S.C. 640c–1(a)(1)) is amended by cation Act of 1965 (20 U.S.C. 1070a–11(g)(2)). of study in the case of a summer abroad pro- striking ‘‘1993’’ and inserting ‘‘1999’’. gram,’’ after ‘‘study’’; and (j) AUTHORIZATION OF APPROPRIATIONS.— (ii) by striking ‘‘junior year’’ and inserting PART B—ADVANCED PLACEMENT There are authorized to be appropriated ‘‘study’’; INCENTIVE PROGRAM $10,000,000 for fiscal year 1999 and such sums as (C) in subsection (c)— SEC. 721. ADVANCED PLACEMENT INCENTIVE may be necessary for each of the 4 succeeding (i) in the matter preceding paragraph (1), by PROGRAM. fiscal years to carry out this section. striking ‘‘junior year’’ and inserting ‘‘study’’; (a) PROGRAM ESTABLISHED.—The Secretary of PART C—UNITED STATES INSTITUTE OF (ii) in paragraph (1), by striking ‘‘junior Education is authorized to make grants to PEACE year’’ and inserting ‘‘study’’; and States having applications approved under sub- SEC. 731. AUTHORITIES OF THE UNITED STATES (iii) in paragraph (2)— section (d), from allotments under subsection INSTITUTE OF PEACE. (I) by striking ‘‘one-half’’ and inserting ‘‘one- (b), to enable the States to reimburse low-income The United States Institute of Peace Act (22 third’’; and individuals to cover part or all of the cost of ad- U.S.C. 4601 et seq.) is amended— (II) by striking ‘‘junior year’’ and inserting vanced placement test fees, if the low-income in- (1) in section 1705 (22 U.S.C. 4604)— ‘‘study’’; dividuals— (A) in subsection (f), by inserting ‘‘personal (5) in section 627 (as redesignated by para- (1) are enrolled in an advanced placement service and other’’ after ‘‘may enter into’’; and graph (2)) (20 U.S.C. 1131e), by striking ‘‘625’’ class; and (B) in subsection (o), by inserting after ‘‘Serv- and inserting ‘‘626’’; and (2) plan to take an advanced placement test. ices’’ the following: ‘‘and use all sources of sup- (6) in section 628 (as redesignated by para- (b) ALLOTMENT.—From the sum appropriated ply and services of the General Services Admin- graph (2)) (20 U.S.C. 1131f), by striking ‘‘1993’’ under subsection (j) for a fiscal year, the Sec- istration’’; and inserting ‘‘1999’’. retary shall allot to each State an amount that (2) in section 1710(a)(1) (22 U.S.C. bears the same relation to the sum as the num- 4609(a)(1))— SEC. 604. GENERAL PROVISIONS. (A) by striking ‘‘1993’’ and inserting ‘‘1999’’; Section 632 (20 U.S.C. 1132–1) is repealed. ber of low-income individuals in the State bears to the number of low-income individuals in all and TITLE VII—RELATED PROGRAMS AND States. (B) by striking ‘‘6’’ and inserting ‘‘4’’; and AMENDMENTS TO OTHER ACTS (c) INFORMATION DISSEMINATION.—The State (3) in the second and third sentences of sec- PART A—INDIAN EDUCATION PROGRAMS educational agency may use not more than 5 tion 1712 (22 U.S.C. 4611), by striking ‘‘shall’’ each place the term appears and inserting SEC. 711. TRIBALLY CONTROLLED COMMUNITY percent of grant funds received for a fiscal year COLLEGE ASSISTANCE ACT OF 1978. to disseminate information regarding the avail- ‘‘may’’. (a) REAUTHORIZATION.— ability of test fee payments under this section to PART D—COMMUNITY SCHOLARSHIP (1) AMOUNT OF GRANTS.—Section 108(a)(2) of eligible individuals through secondary school MOBILIZATION the Tribally Controlled Community College As- teachers and guidance counselors. SEC. 741. SHORT TITLE. sistance Act of 1978 (25 U.S.C. 1808(a)(2)) is (d) REQUIREMENTS FOR APPROVAL OF APPLI- This part may be cited as the ‘‘Community amended by striking ‘‘$5,820’’ and inserting CATIONS.—In approving applications for grants Scholarship Mobilization Act.’’ ‘‘$6,000’’. the Secretary of Education shall— SEC. 742. FINDINGS. (2) AUTHORIZATION OF APPROPRIATIONS.— (1) require that each such application contain Congress finds that— (A) TITLE I.—Section 110(a) of the Tribally a description of the advance placement test fees (1) the local community, when properly orga- Controlled Community College Assistance Act of the State will pay on behalf of individual stu- nized and challenged, is one of the best sources 1978 (25 U.S.C. 1810(a)) is amended— dents; of academic support, motivation toward achieve- (i) in paragraph (1), by striking ‘‘1993’’ and (2) require an assurance that any funds re- ment, and financial resources for aspiring post- inserting ‘‘1999’’; ceived under this section, other than funds used secondary students; (ii) in paragraph (2), by striking ‘‘$30,000,000 in accordance with subsection (c), shall be used (2) local communities, working to complement for fiscal year 1993’’ and inserting ‘‘$40,000,000 only to pay advanced placement test fees; and or augment services currently offered by area for fiscal year 1999’’; (3) contain such information as the Secretary schools and colleges, can raise the educational (iii) in paragraph (3), by striking ‘‘1993’’ and may require to demonstrate that the State will expectations and increase the rate of postsec- inserting ‘‘1999’’; and ensure that a student is eligible for payments ondary attendance of their youth by forming lo- (iv) in paragraph (4), by striking ‘‘1993’’ and under this section, including the documentation cally-based organizations that provide both aca- inserting ‘‘1999’’. required by chapter 1 of subpart 2 of part A of demic support (including guidance, counseling, (B) TITLE III.—Section 306(a) of the Tribally title IV of the Higher Education Act of 1965 (20 mentoring, tutoring, encouragement, and rec- Controlled Community College Assistance Act of U.S.C. 1070a–11 et seq.). ognition) and tangible, locally raised, effectively 1978 (25 U.S.C. 1836(a)) is amended by striking (e) FUNDING RULE.—Funds provided under targeted, publicly recognized, financial assist- ‘‘1993’’ and inserting ‘‘1999’’. this section shall be used to supplement and not ance; (C) TITLE IV.—Section 403 of the Tribal Eco- supplant other Federal, State, local or private (3) proven methods of stimulating these com- nomic Development and Technology Related funds available to assist low-income individuals munity efforts can be promoted through Federal Education Assistance Act of 1990 (25 U.S.C. in paying for advanced placement testing, ex- support for the establishment of regional, State 1852) is amended by striking ‘‘1993’’ and insert- cept that such funds may be used to supplant or community program centers to organize and ing ‘‘1999’’. the funds so available if the funds used to sup- challenge community efforts to develop edu- (b) NAME CHANGE.—The Tribally Controlled plant are used to increase the participation of cational incentives and support for local stu- Community College Assistance Act of 1978 (25 low-income individuals in advanced placement dents; and U.S.C. 1801 et seq.) is amended— courses through teacher training and other ac- (4) using Federal funds to leverage private (1) by striking ‘‘community college’’ each tivities directly related to increasing the avail- contributions to help students from low-income place the term appears and inserting ‘‘college or ability of advanced placement courses. families attain educational and career goals is university’’; (f) SPECIAL RULE.—The Secretary of Edu- an efficient and effective investment of scarce (2) by striking ‘‘Community College’’ each cation shall only award grants under this sec- taxpayer-provided resources. place the term appears (other than when such tion for a fiscal year if the amount the College SEC. 743. DEFINITIONS. term is preceded by the term ‘‘Navajo’’) and in- Board spends for the College Board’s fee assist- In this part: serting ‘‘College or University’’; ance program for low-income students for the (1) REGIONAL, STATE OR COMMUNITY PROGRAM (3) by striking ‘‘community colleges’’ each fiscal year is not less than the amount the Col- CENTER.—The term ‘‘regional, State or commu- place the term appears and inserting ‘‘colleges lege Board spent for such program for the pre- nity program center’’ means an organization or universities’’; ceding fiscal year. that—

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00093 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S8008 CONGRESSIONAL RECORD — SENATE July 10, 1998 (A) is a division or member of, responsible to, national organization to enable such organiza- PART E—GRANTS TO STATES FOR WORK- and overseen by, a national organization; and tion to support the establishment or ongoing PLACE AND COMMUNITY TRANSITION (B) is staffed by professionals trained to cre- work of regional, State or community program TRAINING FOR INCARCERATED YOUTH ate, develop, and sustain local entities in towns, centers that foster the development of local enti- OFFENDERS cities, and neighborhoods. ties in high poverty areas to improve high school SEC. 751. GRANTS TO STATES FOR WORKPLACE (2) LOCAL ENTITY.—The term ‘‘local entity’’ graduation rates and postsecondary attendance AND COMMUNITY TRANSITION means an organization that— through the provision of academic support serv- TRAINING FOR INCARCERATED (A) is a nonprofit organization that is de- ices and scholarship assistance for the cost of YOUTH OFFENDERS. scribed in section 501(c)(3) of the Internal Rev- postsecondary education. (a) FINDINGS.—Congress makes the following enue Code of 1986, and exempt from taxation findings: SEC. 745. GRANT AGREEMENT AND REQUIRE- (1) Over 150,000 youth offenders age 21 and under section 501(a) of such Code (or shall meet MENTS. this criteria through affiliation with the na- younger are incarcerated in the Nation’s jails, (a) IN GENERAL.—The Secretary shall award tional organization); juvenile facilities, and prisons. one or more endowment grants described in sec- (B) is formed for the purpose of providing edu- (2) Most youth offenders who are incarcerated tion 744(b) pursuant to an agreement between cational scholarships and academic support for have been sentenced as first-time adult felons. the Secretary and a national organization. Such residents of the local community served by such (3) Approximately 75 percent of youth offend- agreement shall— organization; ers are high school dropouts who lack basic lit- (C) solicits broad-based community support in (1) require a national organization to estab- eracy and life skills, have little or no job experi- its academic support and fund-raising activities; lish an endowment fund in the amount of the ence, and lack marketable skills. (D) is broadly representative of the local com- grant, the corpus of which shall remain intact (4) The average incarcerated youth has at- munity in the structures of its volunteer-oper- and the interest income from which shall be tended school only through grade 10. ated organization and has a board of directors used to support the activities described in para- (5) Most of these youths can be diverted from that includes leaders from local neighborhood graphs (2) and (3); a life of crime into productive citizenship with organizations and neighborhood residents, such (2) require a national organization to use 70 available educational, vocational, work skills, as school or college personnel, parents, students, percent of the interest income from the endow- and related service programs. community agency representatives, retirees, and ment fund in any fiscal year to support the es- (6) If not involved with educational programs representatives of the business community; tablishment or ongoing work of regional, State while incarcerated, almost all of these youths (E) awards scholarships without regard to or community program centers to enable such will return to a life of crime upon release. age, sex, marital status, race, creed, color, reli- centers to work with local communities to estab- (7) The average length of sentence for a youth gion, national origin or disability; and lish local entities in high poverty areas and pro- offender is about 3 years. Time spent in prison (F) gives priority to awarding scholarships for vide ongoing technical assistance, training provides a unique opportunity for education postsecondary education to deserving students workshops, and other activities to help ensure and training. from low-income families in the local commu- the ongoing success of the local entities; (8) Even with quality education and training provided during incarceration, a period of in- nity. (3) require a national organization to use 30 tense supervision, support, and counseling is (3) NATIONAL ORGANIZATION.—The term ‘‘na- percent of the interest income from the endow- needed upon release to ensure effective re- tional organization’’ means an organization ment fund in any fiscal year to provide scholar- integration of youth offenders into society. that— ships for postsecondary education to students (9) Research consistently shows that the vast (A) has the capacity to create, develop and from low-income families, which scholarships majority of incarcerated youths will not return sustain local entities and affiliated regional, shall be matched on a dollar-for-dollar basis to the public schools to complete their edu- State or community program centers; from funds raised by the local entities; (B) has the capacity to sustain newly created cation. (4) require that at least 50 percent of all the (10) There is a need for alternative edu- local entities in towns, cities, and neighbor- interest income from the endowment be allocated cational opportunities during incarceration and hoods through ongoing training support pro- to establish new local entities or support re- after release. grams; gional, State or community program centers in (b) DEFINITION.—For purposes of this part, (C) is described in section 501(c)(3) of the In- high poverty areas; the term ‘‘youth offender’’ means a male or fe- ternal Revenue Code of 1986, and exempt from (5) require a national organization to submit, male offender under the age of 25, who is incar- taxation under section 501(a) of such Code; for each fiscal year in which such organization cerated in a State prison, including a prerelease (D) is a publicly supported organization with- uses the interest from the endowment fund, a re- facility. in the meaning of section 170(b)(1)(A)(iv) of port to the Secretary that contains— (c) GRANT PROGRAM.—The Secretary of Edu- such Code; cation (in this section referred to as the ‘‘Sec- (E) ensures that each of the organization’s (A) a description of the programs and activi- retary’’) shall establish a program in accordance local entities meet the criteria described in sub- ties supported by the interest on the endowment with this section to provide grants to the State paragraphs (C) and (D); and fund; correctional education agencies in the States, (F) has a program for or experience in cooper- (B) the audited financial statement of the na- from allocations for the States under subsection ating with secondary and postsecondary institu- tional organization for the preceding fiscal year; (i), to assist and encourage incarcerated youths tions in carrying out the organization’s scholar- (C) a plan for the programs and activities to to acquire functional literacy, life, and job ship and academic support activities. be supported by the interest on the endowment skills, through the pursuit of a postsecondary (4) HIGH POVERTY AREA.—The term ‘‘high pov- fund as the Secretary may require; and education certificate, or an associate of arts or erty area’’ means a community with a higher (D) an evaluation of the programs and activi- bachelor’s degree while in prison, and employ- percentage of children from low-income families ties supported by the interest on the endowment ment counseling and other related services than the national average of such percentage fund as the Secretary may require; and which start during incarceration and continue and a lower percentage of children pursuing (E) data indicating the number of students postsecondary education than the national av- through prerelease and while on parole. from low-income families who receive scholar- (d) APPLICATION.—To be eligible for a grant erage of such percentage. ships from local entities, and the amounts of under this section, a State correctional edu- (5) STUDENTS FROM LOW-INCOME FAMILIES.— such scholarships; cation agency shall submit to the Secretary a The term ‘‘students from low-income families’’ (6) contain such assurances as the Secretary proposal for a youth offender program that— means students determined, pursuant to part F may require with respect to the management (1) identifies the scope of the problem, includ- of title IV of the Higher Education Act of 1965 and operation of the endowment fund; and ing the number of incarcerated youths in need (20 U.S.C. 1087kk et seq.), to be eligible for a (7) contain an assurance that if the Secretary of postsecondary education and vocational Federal Pell Grant under subpart 1 of part A of determines that such organization is not in sub- training; title IV of such Act (20 U.S.C. 1070a). stantial compliance with the provisions of this (2) lists the accredited public or private edu- SEC. 744. PURPOSE, ENDOWMENT GRANT AU- part, then the national organization shall pay cational institution or institutions that will pro- THORITY. to the Secretary an amount equal to the corpus vide postsecondary educational services; (a) PURPOSE.—It is the purpose of this part to of the endowment fund plus any accrued inter- (3) lists the cooperating agencies, public and establish and support regional, State or commu- est on such fund that is available to the na- private, or businesses that will provide related nity program centers to enable such centers to tional organization on the date of such deter- services, such as counseling in the areas of ca- foster the development of local entities in high mination. reer development, substance abuse, health, and poverty areas that promote higher education (b) RETURNED FUNDS.—All funds returned to parenting skills; goals for students from low-income families by— the Secretary pursuant to subsection (a)(7) shall (4) describes the evaluation methods and per- (1) providing academic support, including be available to the Secretary to carry out any formance measures that the State correctional guidance, counseling, mentoring, tutoring, and scholarship or grant program assisted under education agency will employ, which methods recognition; and title IV of the Higher Education Act of 1965 (20 and measures— (2) providing scholarship assistance for the U.S.C. 1070 et seq.). (A) shall be appropriate to meet the goals and cost of postsecondary education. objectives of the proposal; and (b) ENDOWMENT GRANT AUTHORITY.—From SEC. 746. AUTHORIZATION OF APPROPRIATIONS. (B) shall include measures of— the funds appropriated pursuant to the author- There are authorized to be appropriated to (i) program completion; ity of section 746, the Secretary shall award an carry out this part $10,000,000 for fiscal year (ii) student academic and vocational skill at- endowment grant, on a competitive basis, to a 2000. tainment;

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(iii) success in job placement and retention; (b) DEFINITIONS.—In this part: section (a), the Commission shall, to the extent and (1) COMMISSION.—The term ‘‘Commission’’ practicable, facilitate the exchange of informa- (iv) recidivism; means the Web-Based Education Commission es- tion concerning the issues that are the subject of (5) describes how the proposed programs are to tablished under section 754. the study among— be integrated with existing State correctional (2) INFORMATION TECHNOLOGY.—The term ‘‘in- (1) officials of the Federal Government, and education programs (such as adult education, formation technology’’ has the meaning given State governments and political subdivisions of graduate education degree programs, and voca- that term in section 5002 of the Information States; and tional training) and State industry programs; Technology Management Reform Act of 1996 (2) educators from Federal, State, and local (6) addresses the educational needs of youth (110 Stat. 679). institutions of higher education and secondary offenders who are in alternative programs (such (3) STATE.—The term ‘‘State’’ means each of schools. as boot camps); and the several States of the United States and the SEC. 756. POWERS OF THE COMMISSION. (7) describes how students will be selected so District of Columbia. that only youth offenders eligible under sub- (a) HEARINGS.—The Commission may hold SEC. 754. ESTABLISHMENT OF WEB-BASED EDU- section (f) will be enrolled in postsecondary pro- such hearings, sit and act at such times and CATION COMMISSION. places, take such testimony, and receive such grams. (a) ESTABLISHMENT.—There is established a (e) PROGRAM REQUIREMENTS.—Each State cor- evidence as the Commission considers advisable commission to be known as the Web-Based Edu- rectional education agency receiving a grant to carry out the purposes of this part. cation Commission. under this section shall— (b) INFORMATION FROM FEDERAL AGENCIES.— (b) MEMBERSHIP.— (1) integrate activities carried out under the The Commission may secure directly from any (1) COMPOSITION.—The Commission shall be grant with the objectives and activities of the Federal department or agency such information composed of 14 members, of which— school-to-work programs of such State, includ- as the Commission considers necessary to carry (A) 3 members shall be appointed by the Presi- out the provisions of this part. Upon request of ing— dent, from among individuals representing the (A) work experience or apprenticeship pro- the Chairperson of the Commission, the head of Internet technology industry; grams; such department or agency shall furnish such (B) transitional worksite job training for vo- (B) 3 members shall be appointed by the Sec- information to the Commission. cational education students that is related to retary, from among individuals with expertise in (c) POSTAL SERVICES.—The Commission may the occupational goals of such students and accreditation, establishing statewide curricula, use the United States mails in the same manner closely linked to classroom and laboratory in- and establishing information technology net- and under the same conditions as other depart- struction; works pertaining to education curricula; ments and agencies of the Federal Government. (C) placement services in occupations that the (C) 2 members shall be appointed by the Ma- (d) GIFTS.—The Commission may accept, use, students are preparing to enter; jority Leader of the Senate; and dispose of gifts or donations of services or (D) employment-based learning programs; and (D) 2 members shall be appointed by the Mi- property. (E) programs that address State and local nority Leader of the Senate; (E) 2 members shall be appointed by the SEC. 757. COMMISSION PERSONNEL MATTERS. labor shortages; (a) COMPENSATION OF MEMBERS.—Except as (2) annually report to the Secretary and the Speaker of the House of Representatives; and provided in subsection (b), each member of the Attorney General on the results of the evalua- (F) 2 members shall be appointed by the Mi- Commission who is not an officer or employee of tions conducted using the methods and perform- nority Leader of the House of Representatives. the Federal Government shall serve without ance measures contained in the proposal; and (2) DATE.—The appointments of the members (3) provide to each State for each student eli- of the Commission shall be made not later than compensation. All members of the Commission gible under subsection (f) not more than $1,500 45 days after the date of enactment of this Act. who are officers or employees of the United annually for tuition, books, and essential mate- (c) PERIOD OF APPOINTMENT; VACANCIES.— States shall serve without compensation in addi- rials, and not more than $300 annually for re- Members shall be appointed for the life of the tion to that received for their services as officers lated services such as career development, sub- Commission. Any vacancy in the Commission or employees of the United States. (b) TRAVEL EXPENSES.—The members of the stance abuse counseling, parenting skills train- shall not affect its powers, but shall be filled in Commission shall be allowed travel expenses, in- ing, and health education, for each eligible in- the same manner as the original appointment. cluding per diem in lieu of subsistence, at rates carcerated youth. (d) INITIAL MEETING.—No later than 30 days (f) STUDENT ELIGIBILITY.—A youth offender after the date on which all members of the Com- authorized for employees of agencies under sub- shall be eligible for participation in a program mission have been appointed, the Commission chapter I of chapter 57 of title 5, United States receiving a grant under this section if the youth shall hold its first meeting. Code, while away from their homes or regular offender— (e) MEETINGS.—The Commission shall meet at places of business in the performance of services (1) is eligible to be released within 5 years (in- the call of the Chairperson. for the Commission. cluding a youth offender who is eligible for pa- (f) QUORUM.—A majority of the members of (c) STAFF.— role within such time); and the Commission shall constitute a quorum, but a (1) IN GENERAL.—The Chairperson of the Com- (2) is 25 years of age or younger. lesser number of members may hold hearings. mission may, without regard to the civil service (g) LENGTH OF PARTICIPATION.—A State cor- (g) CHAIRPERSON AND VICE CHAIRPERSON.— laws and regulations, appoint and terminate an rectional education agency receiving a grant The Commission shall select a chairperson and executive director and such other additional under this section shall provide educational and vice chairperson from among its members. personnel as may be necessary to enable the related services to each participating youth of- SEC. 755. DUTIES OF THE COMMISSION. Commission to perform its duties. The employ- ment of an executive director shall be subject to fender for a period not to exceed 5 years, 1 year (a) STUDY.— of which may be devoted to study in a graduate (1) IN GENERAL.—The Commission shall con- confirmation by the Commission. education degree program or to remedial edu- duct a thorough study to assess the educational (2) COMPENSATION.—The Chairperson of the cation services for students who have obtained a software available in retail markets for sec- Commission may fix the compensation of the ex- secondary school diploma. Educational and re- ondary and postsecondary students who choose ecutive director and other personnel without re- lated services shall start during the period of in- to use such software. gard to the provisions of chapter 51 and sub- carceration in prison or prerelease and may con- (2) PUBLIC HEARINGS.—As part of the study chapter III of chapter 53 of title 5, United States tinue during the period of parole. conducted under this subsection, the Commis- Code, relating to classification of positions and (h) EDUCATION DELIVERY SYSTEMS.—State sion shall hold public hearings in each region of General Schedule pay rates, except that the rate correctional education agencies and cooperating the United States concerning the assessment re- of pay for the executive director and other per- institutions shall, to the extent practicable, use ferred to in paragraph (1). sonnel may not exceed the rate payable for level high-tech applications in developing programs (3) EXISTING INFORMATION.—To the extent V of the Executive Schedule under section 5316 to meet the requirements and goals of this sec- practicable, in carrying out the study under this of such title. tion. subsection, the Commission shall identify and (d) DETAIL OF GOVERNMENT EMPLOYEES.— (i) ALLOCATION OF FUNDS.—From the amounts use existing information related to the assess- Any Federal Government employee may be de- appropriated pursuant to subsection (j), the Sec- ment referred to in paragraph (1). tailed to the Commission without reimburse- retary shall allot to each State an amount that (b) REPORT.—Not later than 6 months after ment, and such detail shall be without interrup- bears the same relationship to such funds as the the first meeting of the Commission, the Commis- tion or loss of civil service status or privilege. total number of students eligible under sub- sion shall submit a report to the President and (e) PROCUREMENT OF TEMPORARY AND INTER- section (f) in such State bears to the total num- Congress that shall contain a detailed statement MITTENT SERVICES.—The Chairperson of the ber of such students in all States. of the findings and conclusions of the Commis- Commission may procure temporary and inter- UTHORIZATION OF APPROPRIATIONS.— (j) A sion resulting from the study, together with its mittent services under section 3109(b) of title 5, There are authorized to be appropriated to carry recommendations— United States Code, at rates for individuals that out this section $14,000,000 for fiscal year 1999 (1) for such legislation and administrative ac- do not exceed the daily equivalent of the annual and such sums as may be necessary for each of tions as the Commission considers to be appro- rate of basic pay prescribed for level V of the the 4 succeeding fiscal years. priate; and Executive Schedule under section 5316 of such PART F—WEB-BASED EDUCATION (2) regarding the appropriate Federal role in title. COMMISSION determining quality educational software prod- SEC. 758. TERMINATION OF THE COMMISSION. SEC. 753. SHORT TITLE; DEFINITIONS. ucts. The Commission shall terminate on the date (a) IN GENERAL.—This part may be cited as (c) FACILITATION OF EXCHANGE OF INFORMA- that is 90 days after the date on which the Com- the ‘‘Web-Based Education Commission Act’’. TION.—In carrying out the study under sub- mission submits its report under section 755(b).

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00095 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S8010 CONGRESSIONAL RECORD — SENATE July 10, 1998 SEC. 759. AUTHORIZATION OF APPROPRIATIONS. SEC. 765. DEFINITIONS. ‘‘SEC. 211. RESEARCH PRIORITIES. (a) IN GENERAL.—There are authorized to be Section 201 of the Education of the Deaf Act ‘‘(a) RESEARCH PRIORITIES.—Gallaudet Uni- appropriated $650,000 for fiscal year 1999 to the of 1986 (20 U.S.C. 4351) is amended— versity and the National Technical Institute for Commission to carry out this part. (1) in paragraph (1)(C), by striking ‘‘Palau the Deaf shall each establish and disseminate (b) AVAILABILITY.—Any sums appropriated (but only until the Compact of Free Association priorities for their national mission with respect under the authorization contained in this sec- with Palau takes effect),’’; and to deafness related research, development, and tion shall remain available, without fiscal year (2) in paragraph (5)— demonstration activities, that reflect public limitation, until expended. (A) by inserting ‘‘and’’ after ‘‘Virgin Is- input, through a process that includes con- PART G—EDUCATION OF THE DEAF lands,’’; and sumers, constituent groups, and the heads of (B) by striking ‘‘, and Palau (but only until SEC. 761. SHORT TITLE. other federally funded programs. The priorities the Compact of Free Association with Palau This part may be cited as the ‘‘Education of for the University shall include activities con- takes effect)’’. the Deaf Amendments of 1998’’. ducted as part of the University’s elementary SEC. 766. GIFTS. and secondary education programs under sec- SEC. 762. ELEMENTARY AND SECONDARY EDU- CATION PROGRAMS. Subsection (b) of section 203 of the Education tion 104. Section 104(b) of the Education of the Deaf of the Deaf Act of 1986 (20 U.S.C. 4353) is ‘‘(b) RESEARCH REPORTS.—The University and Act of 1986 (20 U.S.C. 4034(b)) is amended— amended to read as follows: NTID shall each prepare and submit an annual (1) in paragraph (1)— ‘‘(b) INDEPENDENT FINANCIAL AND COMPLI- research report, to the Secretary, the Committee (A) in subparagraph (A), by inserting ‘‘and’’ ANCE AUDIT.— on Education and the Workforce of the House of after the semicolon; ‘‘(1) IN GENERAL.—Gallaudet University shall Representatives, and the Committee on Labor (B) in subparagraph (B), by striking ‘‘; and’’ have an annual independent financial and com- and Human Resources of the Senate, not later and inserting a period; and pliance audit made of the programs and activi- than January 10 of each year, that shall in- (C) by striking subparagraph (C); ties of the University, including the national clude— (2) in the matter preceding subparagraph (A) mission and school operations of the elementary ‘‘(1) a summary of the public input received as of paragraph (2)— and secondary education programs at Gal- part of the establishment and dissemination of (A) by striking ‘‘paragraph (1)’’ and inserting laudet. The institution of higher education with priorities required by subsection (a), and the ‘‘paragraph (1)(B)’’; and which the Secretary has an agreement under University’s and NTID’s response to the input; (B) by striking ‘‘section 618(b)’’ and inserting section 112 shall have an annual independent fi- and ‘‘section 618(a)(1)(A)’’; nancial and compliance audit made of the pro- ‘‘(2) a summary description of the research (3) in paragraph (3), by striking ‘‘intermediate grams and activities of such institution of high- undertaken by the University and NTID, the educational unit’’ and inserting ‘‘educational er education, including NTID, and containing start and projected end dates for each research service agency’’; specific schedules and analyses for all NTID project, the projected cost and source or sources (4) in paragraph (4)— funds, as determined by the Secretary. of funding for each project, and any products (A) in subparagraph (A), by striking ‘‘inter- ‘‘(2) COMPLIANCE.—As used in paragraph (1), resulting from research completed in the prior mediate educational unit’’ and inserting ‘‘edu- compliance means compliance with sections fiscal year.’’. cational service agency’’; and 102(b), 105(b)(4), 112(b)(5), and 203(c), para- SEC. 772. AUTHORIZATION OF APPROPRIATIONS. (B) in subparagraph (B), by striking ‘‘inter- graphs (2) and (3) of section 207(b), subsections Title II of the Education of the Deaf Act of mediate educational units’’ and inserting ‘‘edu- (b)(2), (b)(3), and (c) through (f), of section 207, 1986 (20 U.S.C. 4351 et seq.) is amended by add- cational service agencies’’; and and subsections (b) and (c) of section 210. ing at the end the following: (5) by amending subparagraph (C) to read as ‘‘(3) SUBMISSION OF AUDITS.—A copy of each ‘‘SEC. 212. AUTHORIZATION OF APPROPRIATIONS. follows: audit described in paragraph (1) shall be pro- ‘‘(a) GALLAUDET UNIVERSITY.—There are au- ‘‘(C) provide the child a free appropriate pub- vided to the Secretary within 15 days of accept- thorized to be appropriated such sums as may be lic education in accordance with part B of the ance of the audit by the University or the insti- necessary for each of the fiscal years 1998 Individuals with Disabilities Education Act and tution authorized to establish and operate the through 2003 to carry out the provisions of titles procedural safeguards in accordance with the NTID under section 112(a), as the case may be, I and II, relating to— following provisions of section 615 of such Act: but not later than January 10 of each year.’’. ‘‘(1) Gallaudet University; ‘‘(i) paragraphs (1), and (3) through (6), of ‘‘(2) Kendall Demonstration Elementary subsection (b). SEC. 767. REPORTS. Section 204(3) of the Education of the Deaf School; and ‘‘(ii) Subsections (c) through (g). ‘‘(3) the Model Secondary School for the Deaf. ‘‘(iii) Subsection (h), except for the matter in Act of 1986 (20 U.S.C. 4354(3)) is amended— ‘‘(b) NATIONAL TECHNICAL INSTITUTE FOR THE (1) in subparagraph (A), by striking ‘‘The an- paragraph (4) pertaining to transmission of DEAF.—There are authorized to be appropriated findings and decisions to a State advisory panel. nual’’ and inserting ‘‘A summary of the an- such sums as may be necessary for each of the ‘‘(iv) Paragraphs (1) and (2) of subsection (i). nual’’; and fiscal years 1998 through 2003 to carry out the ‘‘(v) Subsection (j)— (2) in subparagraph (B), by striking ‘‘the an- provisions of titles I and II relating to the Na- ‘‘(I) except that such subsection shall not be nual’’ and inserting ‘‘a summary of the an- tional Technical Institute for the Deaf.’’. applicable to a decision by the University to nual’’. refuse to admit a child; or SEC. 773. COMMISSION ON EDUCATION OF THE SEC. 768. MONITORING, EVALUATION, AND RE- DEAF. ‘‘(II) to dismiss a child, except that, before PORTING. The Education of the Deaf Act of 1986 (20 dismissing any child, the University shall give Section 205(c) of the Education of the Deaf U.S.C. 4301 et seq.) is amended by adding at the at least 60 days written notice to the child’s par- Act of 1986 (20 U.S.C. 4355(c)) is amended by end the following: ents and to the local educational agency in striking ‘‘1993, 1994, 1995, 1996, and 1997’’ and ‘‘TITLE III—COMMISSION ON EDUCATION which the child resides, unless the dismissal in- inserting ‘‘1998 through 2003’’. OF THE DEAF volves a suspension, expulsion, or other change SEC. 769. INVESTMENTS. ‘‘SEC. 301. COMMISSION ESTABLISHED. in placement covered under section 615(k). Section 207 of the Education of the Deaf Act ‘‘(a) ESTABLISHMENT.— ‘‘(vi) Subsections (k) through (m).’’. of 1986 (20 U.S.C. 4357) is amended— ‘‘(1) IN GENERAL.—The Secretary shall estab- SEC. 763. AGREEMENT WITH GALLAUDET UNIVER- (1) in subsection (c)(1), by inserting ‘‘the Fed- lish a Commission on the Education of the Deaf SITY. eral contribution of’’ after ‘‘shall invest’’; to identify those education-related factors in the Section 105(a) of the Education of the Deaf (2) in subsection (d)(3)(A), by striking ‘‘prior’’ lives of individuals who are deaf that result in Act of 1986 (20 U.S.C. 4305(a)) is amended— and inserting ‘‘current’’; and barriers to successful postsecondary education (1) by striking ‘‘within 1 year after enactment (3) in subsection (h)— of the Education of the Deaf Act Amendments of (A) in paragraph (1), by striking ‘‘1993 experiences and employment, and those edu- 1992, a new’’ and inserting ‘‘and periodically through 1997’’ and inserting ‘‘1998 through cation-related factors in the lives of individuals update, an’’; and 2003’’; and who are deaf that contribute to successful post- (2) by amending the second sentence to read (B) in paragraph (2), by striking ‘‘1993 secondary education experiences and employ- as follows: ‘‘The Secretary or the University through 1997’’ and inserting ‘‘1998 through ment. ‘‘(2) DEFINITION OF INDIVIDUALS WHO ARE shall determine the necessity for the periodic 2003’’. update described in the preceding sentence.’’. DEAF.—In this title, the term ‘individuals who SEC. 770. INTERNATIONAL STUDENTS. SEC. 764. AGREEMENT FOR THE NATIONAL TECH- are deaf’ means all persons with hearing impair- NICAL INSTITUTE FOR THE DEAF. Section 210(a) of the Education of the Deaf ments, including those who are hard-of-hearing, Paragraph (2) of section 112(a) of the Edu- Act of 1986 (20 U.S.C. 4359a(a)) is amended by those deafened later in life, and those who are cation of the Deaf Act of 1986 (20 U.S.C. 4332(a)) inserting before the period ‘‘, except that in any profoundly deaf. is amended to read as follows: school year no United States citizen who is ‘‘(b) COMPOSITION.— ‘‘(2) The Secretary and the institution of qualified to be admitted to the University or ‘‘(1) IN GENERAL.—The Commission shall be higher education with which the Secretary has NTID and applies for admission to the Univer- composed of 13 members appointed by the Sec- an agreement under this section— sity or NTID shall be denied admission because retary from recommendations made by the Na- ‘‘(A) shall periodically assess the need for of the admission of an international student’’. tional Association of the Deaf, the American So- modification of the agreement; and SEC. 771. RESEARCH PRIORITIES. ciety for Deaf Children, the Alexander Graham ‘‘(B) shall periodically update the agreement Section 211 of the Education of the Deaf Act Bell Association, the President of Gallaudet, the as determined necessary by the Secretary or the of 1986 (20 U.S.C. 4360) is amended to read as Vice President of the National Technical Insti- institution.’’. follows: tute for the Deaf, State Schools for the Deaf,

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projects to train teachers of the deaf funded ‘‘(2) QUORUM.—Seven members of the Commis- PART I—MISCELLANEOUS under section 673(b) of the Individuals with Dis- sion shall constitute a quorum, but 2 or more SEC. 791. YEAR 2000 REQUIREMENTS AT THE DE- abilities Education Act, parent training and in- members may conduct hearings. PARTMENT OF EDUCATION. formation centers funded under section 682 of ‘‘(3) HEARINGS AND PUBLIC INPUT.—In con- In order to ensure that the processing, deliv- such Act, the Regional Centers on Postsec- ducting hearings and acquiring public input ery, and administration of grant, loan, and ondary Education for Individuals who are Deaf under this title, the Commission may use various work assistance provided under title IV of the funded under section 672 of such Act, Self-Help telecommunications media, including teleconfer- Higher Education Act of 1965 is not interrupted for Hard of Hearing People, and the Cothe encing, video-conferencing, the Internet, and due to operational problems related to the in- Council on Education of the Deaf. other media. ability of computer systems to indicate accu- ‘‘(2) QUALIFICATIONS.— ‘‘(c) CONSULTATION; INFORMATION AND STATIS- rately dates after December 31, 1999, the Sec- ‘‘(A) IN GENERAL.—Members of the Commis- TICS; AGENCY COOPERATION.— retary shall— sion shall be appointed from among individuals ‘‘(1) IN GENERAL.—In carrying out the Com- (1) take such actions as are necessary to en- who have broad experience and expertise in mission’s duties under this title and to the ex- sure that all internal and external systems, deafness, program evaluation, education, reha- tent not prohibited by Federal law, the Commis- hardware and data exchange infrastructure ad- bilitation, and job training generally, which ex- sion is authorized to secure consultation, infor- ministered by the Department of Education that pertise and experience shall be directly relevant mation, statistics, and cooperation from Federal are necessary for the processing, delivery, and to the issues to be addressed by the Commission. agencies, entities funded by the Federal Govern- administration of the grant, loan, and work as- ‘‘(B) DEAF INDIVIDUALS.—At least 1⁄3 of mem- ment, and other entities the Commission deems sistance are year 2000 compliant, such that there bers of the Commission shall be individuals who advisable. will be no business interruption after December are deaf. ‘‘(2) SPECIAL RULE.—The Commission is au- 31, 1999; ‘‘(C) CHAIRPERSON.—The chairperson of the thorized to use, with their consent, the services, (2) ensure that the Robert T. Stafford Federal Commission shall be elected by a simple majority personnel, information, and facilities of other Student Loan Program and the William D. Ford of the Commission. Federal, State, local, and private agencies with Federal Direct Loan Program are equal in level ‘‘(D) ASSISTANT SECRETARY.—One member of or without reimbursement. of priority with respect to addressing, and that the Commission shall be the Assistant Secretary ‘‘SEC. 304. COMPENSATION OF MEMBERS. resources are managed to provide for successful for Special Education and Rehabilitative Serv- ‘‘(a) UNITED STATES OFFICER AND EMPLOYEE resolution of, the year 2000 computer problem in ices. MEMBERS.—Members of the Commission who are both programs by December 31, 1999; ‘‘(3) DATE.—Members of the Commission shall officers or full-time employees of the United (3) work with institutions of higher education, be appointed not later than 90 days after the States shall serve without compensation in addi- guaranty agencies, third party servicers, and date of enactment of the Education of the Deaf tion to that received for their services as officers other persons to ensure successful data ex- Amendments of 1998. or employees of the United States; but may be changes necessary for the processing, delivery, ‘‘SEC. 302. DUTIES, REPORT, AND DURATION OF allowed travel expenses, including per diem in and administration of the grant, loan, and work THE COMMISSION. lieu of subsistence, at rates authorized for em- assistance; ‘‘(a) IDENTIFICATION OF FACTORS.—The Com- ployees of agencies under subchapter I of chap- (4) ensure that the Inspector General of the mission shall identify, with respect to individ- ter 57 of title 5, United States Code, while away Department of Education (or an external, inde- uals who are deaf, factors that pose barriers to from their homes or regular places of business in pendent entity selected by the Inspector Gen- or factors that facilitate— the performance of services for the Commission. eral) performs and publishes a risk assessment ‘‘(1) educational performance and progress of ‘‘(b) PUBLIC MEMBERS.—Members of the Com- of the systems and hardware under the Depart- students who are deaf in high school; mission who are not officers or full-time employ- ment’s management, that has been reviewed by ‘‘(2) educational performance and progress of ees of the United States shall receive compensa- an independent entity, and make such assess- students who are deaf in postsecondary edu- tion at a rate that does not exceed the daily rate ment publicly available not later than 60 days cation; payable for level V of the Executive Schedule after the date of enactment of the Higher Edu- ‘‘(3) career exploration and selection; under section 5316 of title 5, United States Code, cation Amendments of 1998; ‘‘(4) job performance and satisfaction in ini- for each day (including travel time) during (5) not later than June 30, 1999, ensure that tial postsecondary employment; and which such members are engaged in the actual the Inspector General (or an external, inde- ‘‘(5) career advancement and satisfaction. pendent entity selected by the Inspector Gen- ‘‘(b) REPORT.—The Commission shall report to performance of the duties of the Commission. In addition, such members may be allowed travel eral) conducts a review of the Department’s the President and Congress such interim reports Year 2000 compliance for the processing, deliv- that the Commission deems appropriate, and not expenses, including per diem in lieu of subsist- ence, at rates authorized for employees of agen- ery, and administration systems and data ex- later than 18 months after the date of enactment change systems for the grant, loan, and work of the Education of the Deaf Amendments of cies under subchapter I of chapter 57 of title 5, United States Code, while away from their assistance, and submits a report reflecting the 1998, a final report containing the findings of results of that review to the Chairperson of the the Commission with respect to the factors iden- homes or regular places of business in the per- formance of services for the Commission. Committee on Labor and Human Resources of tified under subsection (a). The final report the Senate and the Chairperson of the Com- ‘‘SEC. 305. AUTHORIZATIONS OF APPROPRIA- shall include recommendations, including legis- mittee on Education and the Workforce of the lative proposals, that the Commission deems ad- TIONS. ‘‘There is authorized to be appropriated to House of Representatives; visable. (6) develop a contingency plan to ensure the carry out this title such sums as may be nec- ‘‘(c) TERMINATION.—The Commission shall ter- programs under title IV of the Higher Education essary for each of the fiscal years 1999 and minate 90 days after the date on which the Com- Act of 1965 will continue to run uninterrupted 2000.’’. mission submits the Commission’s final report in the event of a computer failure after Decem- described in subsection (b). PART H—REPEALS ber 31, 1999, which the contingency plan shall ‘‘SEC. 303. ADMINISTRATIVE PROVISIONS. SEC. 781. REPEALS. include a prioritization of mission critical sys- ‘‘(a) PERSONNEL.— (a) HIGHER EDUCATION ACT OF 1965.—The fol- tems and strategies to allow data partners to ‘‘(1) IN GENERAL.—The Commission may ap- lowing provisions of the Act (20 U.S.C. 1001 et transfer data; and point such personnel, including a staff director, seq.) are repealed: (7) alert Congress at the earliest possible time as the Commission deems necessary without re- (1) The heading for, sections 701 and 702 of, if mission critical deadlines will not be met. gard to the provisions of title 5, United States and parts A, C, D, and E of, title VII (20 U.S.C. SEC. 792. GRANTS TO COMBAT VIOLENT CRIMES Code, except that the rate pay for any employee 1132a, 1132a–1, 1132b et seq., 1132d et seq., 1132f AGAINST WOMEN ON CAMPUSES. of the Commission may not exceed the rate pay- et seq., and 1132i et seq.). (a) GRANTS AUTHORIZED.— able for level V of the Executive Schedule under (2) Title VIII (20 U.S.C. 1133 et seq.). (1) IN GENERAL.—The Attorney General is au- section 5316 of title 5, United States Code. (3) The heading for, section 901 of, and parts thorized to make grants to institutions of higher ‘‘(2) PROCUREMENT OF TEMPORARY AND INTER- A, B, E, F, and G of, title IX (20 U.S.C. 1134, education, for use by consortia consisting of MITTENT SERVICES.—The Chairperson of the 1134a et seq., 1134d et seq., 1134r et seq., 20 campus personnel, student organizations, cam- Commission may procure temporary and inter- U.S.C. 1134s et seq., and 1134u et seq.). pus administrators, security personnel, and re- mittent services under section 3109(b) of title 5, (4) The heading for, subpart 2 of part B of, gional crisis centers affiliated with the institu- United States Code, at rates for individuals and parts C, D and E of, title X (20 U.S.C. 1135c tion, to develop and strengthen effective secu- which do not exceed the daily equivalent of the et seq., 1135e et seq., 1135f, and 1135g et seq.). rity and investigation strategies to combat vio- annual rate of basic pay prescribed for level V (5) The heading for, and part B of, title XI (20 lent crimes against women on campuses, and to of the Executive Schedule under section 5316 of U.S.C. 1137 et seq.). develop and strengthen victim services in cases such title. (b) HIGHER EDUCATION AMENDMENTS OF involving violent crimes against women on cam- ‘‘(b) HEARINGS; QUORUM.— 1992.—The following provisions of the Higher puses, which may include partnerships with ‘‘(1) HEARINGS.—The Commission or, with the Education Amendments of 1992 (Public Law 102– local criminal justice authorities and commu- authorization of the Commission, any committee 325; 106 Stat 448) are repealed: nity-based victim services agencies. of the Commission, may, for the purpose of car- (1) Parts E, F, and G of title XIII of the High- (2) AWARD BASIS.—The Attorney General shall rying out the provisions of this title, hold such er Education Amendments of 1992 (25 U.S.C. award grants and contracts under this section hearings, sit, and act at such times and such 3332 et seq., 3351 et seq., 3371) are repealed. on a competitive basis. places in the United States as the Commission or (2) Title XIV. (3) EQUITABLE PARTICIPATION.—The Attorney such committee may deem advisable. (3) Title XV. General shall make every effort to ensure—

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00097 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S8012 CONGRESSIONAL RECORD — SENATE July 10, 1998 (A) the equitable participation of private and under this section, shall file a performance re- SEC. 794. IMPROVING UNITED STATES UNDER- public institutions of higher education in the port with the Attorney General explaining the STANDING OF SCIENCE, ENGINEER- activities assisted under this section; and activities carried out under the grant, together ING, AND TECHNOLOGY IN EAST ASIA. (B) the equitable geographic distribution of with an assessment of the effectiveness of the (a) ESTABLISHMENT.—The Director of the Na- grants under this section among the various re- activities in achieving the purposes described in tional Science Foundation is authorized, begin- gions of the United States. subsection (b). ning in fiscal year 2000, to carry out an inter- (b) USE OF GRANT FUNDS.—Grants funds (e) DEFINITIONS.—In this section— disciplinary program of education and research awarded under this section may be used for the (1) the term ‘‘domestic violence’’ includes acts on East Asian science, engineering, and tech- following purposes: or threats of violence, not including acts of self nology. The Director shall carry out the inter- (1) To provide personnel, training, technical defense, committed by a current or former disciplinary program in consultation with the assistance, data collection, and other equipment spouse of the victim, by a person with whom the Secretary of Education. with respect to the increased apprehension, in- victim shares a child in common, by a person (b) PURPOSES.—The purposes of the program vestigation, and adjudication of persons commit- who is cohabitating with or has cohabitated established under this section shall be to— ting violent crimes against women on campus. with the victim, by a person similarly situated to (1) increase understanding of East Asian re- (2) To train campus administrators and cam- a spouse of the victim under the domestic or search, and innovation for the creative applica- pus security personnel to more effectively iden- family violence laws of the jurisdiction, or by tion of science and technology to the problems tify and respond to violent crimes against any other person against a victim who is pro- of society; women on campus, including the crimes of sex- tected from that person’s acts under the domes- (2) provide scientists, engineers, technology ual assault, stalking, and domestic violence. tic or family violence laws of the jurisdiction; managers, and students with training in East (3) To develop, train, or expand campus secu- (2) the term ‘‘sexual assault’’ means any con- Asian languages, and with an understanding of rity personnel and campus administrators with duct proscribed by chapter 109A of title 18, research, technology, and management of inno- respect to specifically targeting violent crimes United States Code, whether or not the conduct vation, in East Asian countries; against women on campus, including the crimes occurs in the special maritime and territorial ju- (3) provide program participants with oppor- of sexual assault, stalking, and domestic vio- risdiction of the United States or in a Federal tunities to be directly involved in scientific and lence. prison, including both assaults committed by of- engineering research, and activities related to (4) To develop and implement more effective fenders who are strangers to the victim and as- the management of scientific and technological campus policies, protocols, orders, and services saults committed by offenders who are known or innovation, in East Asia; and specifically devoted to prevent, identify, and re- (4) create mechanisms for cooperation and related by blood or marriage to the victim; and spond to violent crimes against women on cam- partnerships among United States industry, uni- (3) the term ‘‘victim services’’ means a non- pus, including the crimes of sexual assault, versities, colleges, not-for-profit institutions, profit, nongovernmental organization that as- stalking, and domestic violence. Federal laboratories (within the meaning of sec- (5) To develop, install, or expand data collec- sists domestic violence or sexual assault victims, tion 4(6) of the Stevenson-Wydler Technology tion and communication systems, including com- including campus women’s centers, rape crisis Innovation Act of 1980 (15 U.S.C. 3703(6))), and puterized systems, linking campus security to centers, battered women’s shelters, and other government, to disseminate the results of the the local law enforcement for the purpose of sexual assault or domestic violence programs, program assisted under this section for the ben- identifying and tracking arrests, protection or- including campus counseling support and victim efit of United States research and innovation. ders, violations of protection orders, prosecu- advocate organizations with domestic violence, (c) PARTICIPATION BY FEDERAL SCIENTISTS, tions, and convictions with respect to violent stalking, and sexual assault programs, whether ENGINEERS, AND MANAGERS.—Scientists, engi- crimes against women on campus, including the or not organized and staffed by students. neers, and managers of science and engineering crimes of sexual assault, stalking, and domestic (f) GENERAL TERMS AND CONDITIONS.— programs in Federal agencies and the Federal violence. (1) NONMONETARY ASSISTANCE.—In addition to laboratories shall be eligible to participate in the (6) To develop, enlarge, or strengthen victim the assistance provided under this section, the program assisted under this section on a reim- services programs for the campus and to improve Attorney General may request any Federal bursable basis. delivery of victim services on campus. agency to use the agency’s authorities and the (d) REQUIREMENT FOR MERIT REVIEW.— (7) To provide capital improvements on cam- resources granted to the agency under Federal Awards made under the program established pus to address violent crimes against women on law (including personnel, equipment, supplies, under this section shall only be made using a campus, including the crimes of sexual assault, facilities, and managerial, technical, and advi- competitive, merit-based review process. stalking, and domestic violence. sory services) in support of campus security, (e) AUTHORIZATION OF APPROPRIATIONS.— (8) To support improved coordination among and investigation and victim service efforts. There is authorized to be appropriated to carry campus administrators, campus security per- (2) REPORTING.—Not later than 180 days after out this section $10,000,000 for fiscal year 2000. sonnel, and local law enforcement to reduce vio- the end of the fiscal year for which grants are SEC. 795. UNDERGROUND RAILROAD EDU- awarded under this section, the Attorney Gen- CATIONAL AND CULTURAL PRO- lent crimes against women on campus. GRAM. (c) APPLICATIONS.— eral shall submit to the committees of the House (a) PROGRAM ESTABLISHED.—The Secretary of of Representatives and the Senate responsible (1) IN GENERAL.—In order to be eligible to be Education, in consultation and cooperation awarded a grant under this section for any fis- for issues relating to higher education and with the Secretary of the Interior, is authorized cal year, an institution of higher education crime, a report that includes— to make grants to 1 or more nonprofit edu- shall submit an application to the Attorney (A) the number of grants, and the amount of cational organizations that are established to General at such time and in such manner as the funds, distributed under this section; research, display, interpret, and collect artifacts Attorney General shall prescribe. (B) a summary of the purposes for which the relating to the history of the Underground Rail- (2) CONTENTS.—Each application submitted grants were provided and an evaluation of the road. under paragraph (1) shall— progress made under the grant; (b) GRANT AGREEMENT.—Each nonprofit edu- (A) describe the need for grant funds and the (C) a statistical summary of the persons cational organization awarded a grant under plan for implementation for any of the purposes served, detailing the nature of victimization, this section shall enter into an agreement with described in subsection (b); and providing data on age, sex, race, ethnicity, the Secretary of Education. Each such agree- (B) describe how the campus authorities shall language, disability, relationship to offender, ment shall require the organization— consult and coordinate with nonprofit, non- geographic distribution, and type of campus; (1) to establish a facility to house, display, governmental victim services programs, includ- and and interpret the artifacts related to the history ing sexual assault and domestic violence victim (D) an evaluation of the effectiveness of pro- of the Underground Railroad, and to make the services programs; grams funded under this section. interpretive efforts available to institutions of (C) describe the characteristics of the popu- (3) REGULATIONS OR GUIDELINES.—Not later higher education that award a baccalaureate or lation being served, including type of campus, than 120 days after the date of enactment of this graduate degree; demographics of the population, and number of section, the Secretary shall publish proposed (2) to demonstrate substantial private support students; regulations or guidelines implementing this sec- for the facility through the implementation of a (D) provide measurable goals and expected re- tion. Not later than 180 days after the date of public-private partnership between a State or sults from the use of the grants funds; local public entity and a private entity for the enactment of this section, the Attorney General (E) provide assurances that the Federal funds support of the facility, which private entity shall publish final regulations or guidelines im- made available under this section shall be used shall provide matching funds for the support of plementing this section. to supplement and, to the extent practical, in- the facility in an amount equal to 4 times the (g) AUTHORIZATION OF APPROPRIATIONS.—For crease the level of funds that would, in the ab- amount of the contribution of the State or local the purpose of carrying out this section, there sence of Federal funds, be made available by the public entity, except that not more than 20 per- are authorized to be appropriated $10,000,000 for institution for the purposes described in sub- cent of the matching funds may be provided by each of the fiscal years 1999 through 2002. section (b); and the Federal Government; (F) include such other information and assur- SEC. 793. AUTHORITY TO ADMINISTER SUMMER (3) to create an endowment to fund any and ances as the Attorney General reasonably deter- TRAVEL AND WORK PROGRAMS. all shortfalls in the costs of the on-going oper- mines to be necessary. The Director of the United States Information ations of the facility; (d) GRANTEE REPORTING.—Each institution of Agency is authorized to administer summer trav- (4) to establish a network of satellite centers higher education receiving a grant under this el and work programs without regard to throughout the United States to help dissemi- section, upon completion of the grant period preplacement requirements. nate information regarding the Underground

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00098 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S8013 Railroad throughout the United States, if such under the first and 14th amendments to the SEC. 799. SENSE OF THE SENATE REGARDING satellite centers raise 80 percent of the funds re- Constitution, or would be protected if the insti- HIGHER EDUCATION. quired to establish the satellite centers from tution of higher education involved were subject (a) FINDINGS.—The Senate makes the fol- non-Federal public and private sources; to those amendments. lowing findings: (5) to establish the capability to electronically (3) PROTECTED SPEECH.—The term ‘‘protected (1) Higher education must be kept affordable link the facility with other local and regional speech’’ means speech that is protected under for all families as the number of students at- facilities that have collections and programs the first and 14th amendments to the Constitu- tending institutions of higher education in the which interpret the history of the Underground tion, or would be protected if the institution of 1995–1996 academic year reached 19,400,000 stu- Railroad; and higher education involved were subject to those dents at all levels. (6) to submit, for each fiscal year for which amendments. (2) According to the College Board’s Annual the organization receives funding under this SEC. 798. BINGE DRINKING ON COLLEGE CAM- Survey of Colleges, 1997–1998 undergraduate section, a report to the Secretary of Education PUSES. students at United States colleges will pay on that contains— (a) SHORT TITLE.—This section may be cited average, approximately 5 percent more for the (A) a description of the programs and activi- as the ‘‘Collegiate Initiative To Reduce Binge 1997–1998 academic year in tuition and fees at 4- ties supported by the funding; Drinking’’. year institutions of higher education than the (B) the audited financial statement of the or- (b) FINDINGS.—Congress makes the following students paid for the 1996–1997 academic year, ganization for the preceding fiscal year; findings: and from 2 to 4 percent more for the 1997–1998 (C) a plan for the programs and activities to (1) Many college president rank alcohol abuse academic year in tuition and fees at 2-year in- be supported by the funding as the Secretary as the number one problem on campus. stitutions of higher education than the students may require; and (2) Alcohol is a factor in the 3 leading causes paid for the 1996–1997 academic year. (D) an evaluation of the programs and activi- of death (accidents, homicides, and suicides) for (3) From academic years 1980–1981 to academic ties supported by the funding as the Secretary individuals aged 15 through 24. years 1994–1995, tuition at 4-year public colleges (3) More than any other group, college stu- may require. and universities increased 234 percent, while me- dents tend to consume large numbers of drinks (c) AUTHORIZATION OF APPROPRIATIONS.— dian household income rose only 82 percent, and in rapid succession with the intention of becom- There are authorized to be appropriated to carry as a result, families now spend nearly twice as ing drunk. out this section $6,000,000 for fiscal year 1999, much of their income on college tuition as fami- (4) 84 percent of college students report drink- lies did in 1980. $6,000,000 for fiscal year 2000, $6,000,000 for fis- ing alcohol during the school year, with 44 per- cal year 2001, $3,000,000 for fiscal year 2002, and (4) A college education has become less afford- cent of all college students qualifying as binge able as undergraduate public school tuition has $3,000,000 for fiscal year 2003. drinkers and 19 percent of all college students SEC. 796. GNMA GUARANTEE FEE. increased substantially in the years preceding qualifying as frequent binge drinkers. 1998. (a) IN GENERAL.—Section 306(g)(3)(A) of the (5) Alcohol is involved in a large percentage of (5) In the 1997–1998 school year, average un- National Housing Act (12 U.S.C. 1721(g)(3)(A)) is all campus rapes, violent crimes, student sui- dergraduate tuition and fees— amended by striking ‘‘No fee or charge’’ and all cides, and fraternity hazing accidents. (A) for public 4-year institutions of higher that follows through ‘‘States)’’ and inserting (6) Heavy alcohol consumption on college education were $3,111, representing a 97 percent ‘‘The Association shall assess and collect a fee campuses can result in drunk driving crashes, increase from the 1988–1989 school year; and in an amount equal to 9 basis points’’. hospitalization for alcohol overdoses, trouble (B) for private 4-year institutions of higher (b) EFFECTIVE DATE.—The amendment made with police, injury, missed classes, and academic education were $13,664, representing an increase by this section shall take effect on October 1, failure. of 71 percent from the 1988–1989 school year. (7) The secondhand effects of student alcohol 2002. (6) In the 1996–1997 academic year— consumption range from assault, property dam- SEC. 797. PROTECTION OF STUDENT SPEECH AND (A) over $580,000,000 in Federal Supplemental age, and unwanted sexual advances, to inter- ASSOCIATION RIGHTS. Educational Opportunity Grants were disbursed ruptions in study or sleep, or having to ‘‘baby- (a) PROTECTION OF RIGHTS.—It is the sense of to more than 990,000 students; sit’’ another student who drank too much. Congress that no student attending an institu- (B) $760,000,000 in Federal funds supported (8) Campus binge drinking can also lead to tion of higher education on a full- or part-time more than 700,000 students in the Federal Work- the death of our Nation’s young and promising basis should, on the basis of participation in Study Program; and students. protected speech or protected association, be ex- (C) more than 700,000 students borrowed ap- cluded from participation in, be denied the ben- (c) SENSE OF CONGRESS.—It is the sense of Congress that, in an effort to change the culture proximately $940,000,000 in Federal Perkins efits of, or be subjected to discrimination or offi- Loans. cial sanction under any education program, ac- of alcohol consumption on college campuses, all institutions of higher education should carry (7) In the 1996–1997 academic year, Federal tivity, or division of the institution directly or loan programs provided over $30,000,000,000 in indirectly receiving financial assistance under out the following: (1) The president of the institution should ap- financial aid to students. the Higher Education Act of 1965, whether or point a task force consisting of school adminis- (8) Student financial aid in the form of loans not such program, activity, or division is spon- trators, faculty, students, Greek system rep- is disproportionate to the amount of financial sored or officially sanctioned by the institution. resentatives, and others to conduct a full exam- aid received through grants. In 1980, approxi- (b) CONSTRUCTION.—Nothing in this section ination of student and academic life at the insti- mately 40 percent of Federal student financial shall be construed— tution. The task force should make rec- aid was distributed through loans. In the 1996– (1) to discourage the imposition of an official ommendations for a broad range of policy and 1997 academic year, 60 percent of Federal, State, sanction on a student that has willfully partici- program changes that would serve to reduce al- and institutional student financial aid was dis- pated in the disruption or attempted disruption cohol and other drug-related problems. The in- tributed through loans. of a lecture, class, speech, presentation, or per- stitution should provide resources to assist the (9) As the proportion of Federal grants con- formance made or scheduled to be made under task force in promoting the campus policies and tinues to decline, students and families will the auspices of the institution of higher edu- proposed environmental changes that have been have to consider alternative ways to finance a cation; or identified. college education. (2) to prevent an institution of higher edu- (2) The institution should provide maximum (10) In the 1970s, Federal Pell Grants financed 3 cation from taking appropriate and effective ac- opportunities for students to live in an alcohol- ⁄4 of the costs at a public 4-year institution of 1 tion to prevent violations of State liquor laws, to free environment and to engage in stimulating, higher education and ⁄3 of the costs at a private discourage binge drinking and other alcohol alcohol-free recreational and leisure activities. 4-year institution of higher education. In con- abuse, to protect students from sexual harass- (3) The institution should enforce a ‘‘zero tol- trast, in the 1996–1997 academic year, Federal ment including assault and date rape, or to reg- erance’’ policy on the illegal consumption of al- Pell Grants financed 1⁄3 of the costs at a 4-year ulate unsanitary or unsafe conditions in any cohol by students at the institution. public institution of higher education and 1⁄7 of student residence. (4) The institution should vigorously enforce the costs at a private 4-year institution of high- (c) DEFINITIONS.—For the purposes of this sec- the institution’s code of disciplinary sanctions er education. tion: for those who violate campus alcohol policies. (11) While student dependence on Federal (1) OFFICIAL SANCTION.—The term ‘‘official Students with alcohol or other drug-related loans programs has increased, the default rate sanction’’— problems should be referred for appropriate as- on those loans has decreased. According to the (A) means expulsion, suspension, probation, sistance. Department of Education, in fiscal year 1990, censure, condemnation, reprimand, or any other (5) The institution should adopt a policy of the national default rate on federally insured disciplinary, coercive, or adverse action taken eliminating alcoholic beverage-related sponsor- student loans was 22.4 percent. In fiscal year by an institution of higher education or admin- ship of on-campus activities. The institution 1994, the national default rate declined to 10.4 istrative unit of the institution; and should adopt policies limiting the advertisement percent. (B) includes an oral or written warning made and production of alcoholic beverages on cam- (12) The National Commission on the Cost of by an official of an institution of higher edu- pus. Higher Education concluded in the report of the cation acting in the official capacity of the offi- (6) The institution should work with the local National Commission that Federal student aid cial. community, including local businesses, in a grants have not contributed to increases in tui- (2) PROTECTED ASSOCIATION.—The term ‘‘pro- ‘‘Town/Gown’’ alliance to encourage responsible tion while the evidence is inconclusive regarding tected association’’ means the joining, assem- policies toward alcohol consumption and to ad- the impact of Federal student loans on increases bling, and residing with others that is protected dress illegal alcohol use by students. in tuition.

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00099 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S8014 CONGRESSIONAL RECORD — SENATE July 10, 1998

(b) SENSE OF THE SENATE.—It is the sense of er education and kindergarten through grade 12 SEC. 799E. RELEASE OF CONDITIONS, COV- the Senate that— schools, with particular emphasis on partner- ENANTS, AND REVERSIONARY IN- (1) the cost of tuition at institutions of higher ships targeted toward fostering excellence in TERESTS, GUAM COMMUNITY COL- education continues to increase at a rate above kindergarten through grade 12 school leader- LEGE CONVEYANCE, BARRIGADA, GUAM. the Consumer Price Index, affecting the nearly ship, attracting and preparing qualified profes- (a) RELEASE.—The Secretary of Education 20,000,000 students at all levels, resulting in an sionals for new careers in teaching, helping shall release all conditions and covenants that increase in the number of students seeking Fed- teachers incorporate technology into curricula, were imposed by the United States, and the re- eral loans and Federal grants; and aligning the curricula and expectations for versionary interests that were retained by the (2) efforts should be made to address the dis- student achievement in secondary schools and United States, as part of the conveyance of a proportionate share of Federal student aid in institutions of higher education, and for the parcel of Federal surplus property located in the form of Federal student loans compared to workplace. Federal student grants available for students at Barrigada, Guam, consisting of approximately SEC. 799B. LIAISON FOR PROPRIETARY INSTITU- 314.28 acres and known as Naval Communica- institutions of higher education; and TIONS OF HIGHER EDUCATION. tions Area Master Station, WESTPAC, parcel (3) Federal incentives provided to public and Title II of the Department of Education Orga- IN, which was conveyed to the Guam Commu- private institutions of higher education may be nization Act (20 U.S.C. 3411 et seq.) is amended nity College pursuant to— an effective way to limit tuition growth. by adding at the end the following: SEC. 799A. SENSE OF CONGRESS REGARDING (1) the quitclaim deed dated June 8, 1990, con- ‘‘SEC. 219. LIAISON FOR PROPRIETARY INSTITU- veying 61.45 acres, between the Secretary, acting TEACHER EDUCATION. TIONS OF HIGHER EDUCATION. through the Administrator for Management (a) FINDINGS.—Congress finds that— ‘‘(a) ESTABLISHMENT.—There shall be in the Services, and the Guam Community College, act- (1) the education of teachers is a university- Department a Liaison for Proprietary Institu- ing through its Board of Trustees; and wide responsibility requiring the integration of tions of Higher Education, who shall be an offi- subject matter and teacher education course cer of the Department appointed by the Sec- (2) the quitclaim deed dated June 8, 1990, con- work across faculties with multiple site-based retary. veying 252.83 acres, between the Secretary, act- clinical learning experiences; ‘‘(b) APPOINTMENT.—The Secretary shall ap- ing through the Administrator for Management (2) teachers well prepared in both subject mat- point, not later than 6 months after the date of Services, and the Guam Community College, act- ter and good professional practice are essential enactment of the Higher Education Amendments ing through its Board of Trustees, and the Gov- to raising the achievement levels of our Nation’s of 1998 a Liaison for Proprietary Institutions of ernor of Guam. students, especially in mathematics and the Higher Education who shall be a person who— (b) CONSIDERATION.—The Secretary shall exe- sciences; ‘‘(1) has attained a certificate or degree from cute the release of the conditions, covenants, (3) teacher educators, substantive experts, and a proprietary institution of higher education; or and reversionary interests under subsection (a) kindergarten through grade 12 teachers need to ‘‘(2) has been employed in a proprietary insti- without consideration. interact with one another through shared expe- tution setting for not less than 5 years. (c) INSTRUMENT OF RELEASE.—The Secretary riences that incorporate school-site-based ‘‘(c) DUTIES.—The Liaison for Proprietary In- shall execute and file in the appropriate office knowledge into the teacher preparation cur- stitutions of Higher Education shall— or offices a deed of release, amended deed, or riculum; ‘‘(1) serve as the principal advisor to the Sec- other appropriate instrument effectuating the (4) partnerships between practitioners and retary on matters affecting proprietary institu- release of the conditions, covenants, and rever- academics working together in all phases of tions of higher education; sionary interests under subsection (a). teacher education improve the quality of such ‘‘(2) provide guidance to programs within the SEC. 799F. SENSE OF CONGRESS REGARDING education and create incentives for teachers to Department that involve functions affecting GOOD CHARACTER. pursue excellence in their teaching; proprietary institutions of higher education; (a) FINDINGS.—Congress finds that— (5) individuals may be more likely to choose and (1) the future of our Nation and world will be teaching as a career if more flexible teacher ‘‘(3) work with the Federal Interagency Com- determined by the young people of today; preparation programs, tailored to the needs and mittee on Education to improve the coordination (2) record levels of youth crime, violence, teen- experiences of the individuals, with multiple of— age pregnancy, and substance abuse indicate a entry points and pathways into the teaching ‘‘(A) the outreach programs in the numerous growing moral crisis in our society; profession, are made available; Federal departments and agencies that admin- (3) character development is the long-term (6) strong leadership skills of school principals ister education and job training programs; process of helping young people to know, care are essential to improving the quality of teach- ‘‘(B) collaborative business and education about, and act upon such basic values as trust- ing and academic achievement of all students; partnerships; and worthiness, respect for self and others, responsi- (7) collaboration among teacher educators, ‘‘(C) education programs located in, and in- bility, fairness, compassion, and citizenship; other university faculty, elementary and sec- volving, rural areas.’’. (4) these values are universal, reaching across ondary schools, and community colleges facili- SEC 799C. EXPANSION OF EDUCATIONAL OPPOR- cultural and religious differences; tate, strengthen, and renew all the individuals TUNITIES FOR WELFARE RECIPI- (5) a recent poll found that 90 percent of and entities participating in the collaboration. ENTS. Americans support the teaching of core moral (b) SENSE OF CONGRESS.—It is the sense of (a) 24 MONTHS OF POSTSECONDARY EDUCATION Congress that— AND VOCATIONAL EDUCATIONAL TRAINING MADE and civic values; (1) Federal programs, including the Federal PERMISSIBLE WORK ACTIVITIES.—Section (6) parents will always be children’s primary Work-Study Programs, should encourage stu- 407(d)(8) of the Social Security Act (42 U.S.C. character educators; dents, particularly prospective teachers, to be- 607(d)(8)) is amended to read as follows: (7) good moral character is developed best in come involved in supervised tutoring and men- ‘‘(8) postsecondary education and vocational the context of the family; toring activities in kindergarten through grade educational training (not to exceed 24 months (8) parents, community leaders, and school of- 12 schools; with respect to any individual);’’. ficials are establishing successful partnerships (2) institutions of higher education, kinder- (b) MODIFICATIONS TO THE EDUCATIONAL across the Nation to implement character edu- garten through grade 12 schools, local edu- CAP.— cation programs; cational agencies, States, and the Department of (1) REMOVAL OF TEEN PARENTS FROM 30 PER- (9) character education programs also ask Education should enter into partnerships to CENT LIMITATION.—Section 407(c)(2)(D) of the parents, faculty, and staff to serve as role mod- identify and prepare promising candidates as Social Security Act (42 U.S.C. 607(c)(2)(D)) is els of core values, to provide opportunities for future education leaders and to provide con- amended by striking ‘‘, or (if the month is in fis- young people to apply these values, and to es- tinuing professional development opportunities cal year 2000 or thereafter) deemed to be en- tablish high academic standards that challenge to current principals and other education lead- gaged in work for the month by reason of sub- students to set high goals, work to achieve the ers; paragraph (C) of this paragraph’’. goals, and persevere in spite of difficulty; (3) options for access to teacher preparation (2) EXTENSION OF CAP TO POSTSECONDARY EDU- (10) the development of virtue and moral char- programs and new avenues to careers in teach- CATION.—Section 407(c)(2)(D) of the Social Secu- acter, those habits of mind, heart, and spirit ing should be expanded to reach professionals rity Act (42 U.S.C. 607(c)(2)(D)) is amended by that help young people to know, desire, and do seeking second careers and individuals whose striking ‘‘vocational educational training’’ and what is right, has historically been a primary prior experiences encompass critical subject inserting ‘‘training described in subsection mission of colleges and universities; and areas such as mathematics and the sciences; (d)(8)’’. (11) the Congress encourages parents, faculty, (4) partnerships between institutions of higher SEC. 799D. ALCOHOL OR DRUG POSSESSION DIS- and staff across the Nation to emphasize char- education and kindergarten through grade 12 CLOSURE. acter development in the home, in the commu- schools should emphasize contacts between fac- Nothing in this Act shall be construed to pro- nity, in our schools, and in our colleges and ulty and the business community to align expec- hibit an institution of postsecondary education universities. tations for academic achievement to create a from disclosing, to a parent of a student, infor- (b) SENSE OF CONGRESS.—It is the sense of more seamless transition for students from sec- mation regarding violation of any Federal, Congress that Congress should support and en- ondary to postsecondary schools and to the State, or local laws governing the use or posses- courage character building initiatives in schools workplace; and sion of alcohol or drugs, whether or not that in- across America and urge colleges and univer- (5) Congress should focus on identifying, rep- formation is contained in the student’s edu- sities to affirm that the development of char- licating, and facilitating the expansion of exem- cation records, if the student is under the age of acter is one of the primary goals of higher edu- plary partnerships between institutions of high- 21. cation.

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00100 Fmt 4637 Sfmt 6333 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S8015 EXPRESSING THE SENSE OF THE Whereas the IMF aims to further economic cluding the Asia-Pacific Economic Coopera- CONGRESS RELATIVE TO ADMIS- liberalization and globalization and conducts tion Forum and the Asian Development SION OF THE REPUBLIC OF conferences, exchanges, and training pro- Bank: Now, therefore, be it CHINA ON TAIWAN TO MULTI- grams in international monetary manage- Resolved by the Senate (the House of Rep- ment which would be beneficial to Taiwan; resentatives concurring), That it is the sense LATERAL ECONOMIC INSTITU- Whereas membership in the IMF is a pre- of the Senate (the House of Representatives TIONS requisite for accession to the International concurring) that it should be United States Mr. GRAMS. Mr. President, I ask Bank for Reconstruction and Development policy to— unanimous consent that the Senate and to regional banks in which Taiwan’s (1) support changes to the International proceed to the immediate consider- membership would be beneficial; and Monetary Fund Charter that would allow the ation of calendar No. 374, S. Con. Res. Whereas Taiwan is already a member of re- Republic of China on Taiwan and other gional multilateral economic institutions in- qualified economies to become members of 30. cluding the Asia-Pacific Economic Coopera- the International Monetary Fund; and The PRESIDING OFFICER. The tion Forum and the Asian Development (2) support the admission of Taiwan to clerk will report. Bank: Now, therefore, be it membership in other international economic The assistant legislative clerk read Mr. GRAMS. I ask unanimous con- organizations for which it is qualified, in- as follows: sent that the amendment to the resolu- cluding the International Bank for Recon- struction and Development. A concurrent resolution (S. Con. Res. 30) tion be agreed to. expressing the sense of the Congress that the The title was amended so as to read: The PRESIDING OFFICER. Without Republic of China on Taiwan should be ad- ‘‘Expressing the sense of Congress that objection, it is so ordered. mitted to multilateral economic institu- the rules of multilateral economic in- The amendment (No. 3122) was agreed tions, including the International Monetary stitutions, including the International Fund and the International Bank for Recon- to. Monetary Fund and the International struction and Development. Mr. GRAMS. I ask unanimous con- Bank for Reconstruction and Develop- sent that the resolution, as amended, The PRESIDING OFFICER. Is there ment, should be amended to allow be agreed to. I further ask unanimous objection to the immediate consider- membership for the Republic of China consent that an amendment at the ation of the concurrent resolution? on Taiwan and other qualified econo- There being no objection, the Senate desk to the preamble be agreed to, and mies.’’. proceeded to consider the concurrent the preamble, as amended, be agreed resolution. to. And I finally ask that the title f AMENDMENT NO. 3122 amendment be agreed to, the motion to REGARDING THE SITUATION IN Mr. GRAMS. Mr. President, there is reconsider be laid upon the table, and INDONESIA AND EAST TIMOR an amendment at the desk, and I ask that any statements relating to the for its immediate consideration. concurrent resolution appear at the ap- Mr. GRAMS. Mr. President, I ask unanimous consent that the Senate The PRESIDING OFFICER. The propriate place in the RECORD. clerk will report the amendment. The PRESIDING OFFICER. Without proceed to the immediate consider- The assistant legislative clerk read objection, it is so ordered. ation of calendar No. 423, S. Res. 237. as follows: The resolution (S. Con. Res. 30), as The PRESIDING OFFICER. The The Senator from Minnesota [Mr. GRAMS], amended, was agreed to. clerk will report. for Mr. HELMS, proposes an amendment num- The amendment to the preamble was The assistant legislative clerk read bered 3122. agreed to. as follows: The amendment is as follows: The preamble, as amended, was A resolution (S. Res. 237) expressing the Strike all after the resolving clause and in- agreed to. sense of the Senate regarding the situation sert the following: That it is the sense of the The resolution, as amended, with its in Indonesia and East Timor. Senate (the House of Representatives con- preamble, as amended, reads as follows: The PRESIDING OFFICER. Is there curring) that it should be United States pol- S. CON. RES. 30 objection to the immediate consider- icy to— ation of the resolution? Whereas the Republic of China on Taiwan (1) support changes to the International There being no objection, the Senate Monetary Fund Charter that would allow the (hereafter referred to as ‘‘Taiwan’’) possesses Republic of China on Taiwan and other a free economy with the 19th largest gross proceeded to consider the resolution. qualified economies to become members of domestic product in the world; Mr. GRAMS. Mr. President, I ask the International Monetary Fund; and Whereas Taiwan has the 14th largest trad- unanimous consent that the resolution (2) support the admission of Taiwan to ing economy in the world and the 7th largest and preamble be agreed to, en bloc, the membership in other international economic amount of foreign investment in the world motion to reconsider be laid upon the organizations for which it is qualified, in- and holds one of the largest amounts of for- table, and that any statements relating cluding the International Bank for Recon- eign exchange reserves in the world; to the resolution be placed at the ap- struction and Development. Whereas Taiwan is a democracy committed Strike the preamble and insert the fol- to the economic and political norms of the propriate place in the RECORD. lowing: international community; The PRESIDING OFFICER. Without Whereas the Republic of China on Taiwan Whereas the purpose of the International objection, it is so ordered. (hereafter referred to as ‘‘Taiwan’’) possesses Monetary Fund (hereafter referred to as The resolution (S. Res. 237) was a free economy with the 19th largest gross ‘‘IMF’’) is to promote exchange stability, to agreed to. domestic product in the world; establish a multilateral system of payments, The preamble was agreed to. Whereas Taiwan has the 14th largest trad- to facilitate the expansion of world trade, The resolution, with its preamble, ing economy in the world and the 7th largest and to provide capital to assist developing reads as follows: amount of foreign investment in the world nations; and holds one of the largest amounts of for- Whereas changes to the IMF Charter that S. RES. 237 eign exchange reserves in the world; would allow Taiwan and other qualified Whereas recent political turmoil and eco- Whereas Taiwan is a democracy committed economies to become members of the IMF nomic failure in Indonesia have endangered to the economic and political norms of the would benefit the world economy, especially the people of that country and fomented in- international community; those developing countries in need of capital, stability in the region; Whereas the purpose of the International and would contribute to the purposes of the Whereas President Suharto has properly Monetary Fund (hereafter referred to as IMF; responded to this crisis by resigning, after 32 ‘‘IMF’’) is to promote exchange stability, to Whereas the IMF aims to further economic years in office, the presidency of Indonesia in establish a multilateral system of payments, liberalization and globalization and conducts accordance with Indonesia’s constitutional to facilitate the expansion of world trade, conferences, exchanges, and training pro- processes; and to provide capital to assist developing grams in international monetary manage- Whereas Indonesia is now embarking on a nations; ment which would be beneficial to Taiwan; new era that is ripe for political and eco- Whereas changes to the IMF Charter that Whereas membership in the IMF is a pre- nomic reform; would allow Taiwan and other qualified requisite for accession to the International Whereas in 1975 Indonesia invaded, and economies to become members of the IMF Bank for Reconstruction and Development since that time has illegally occupied, East would benefit the world economy, especially and to regional banks in which Taiwan’s Timor claiming the lives of approximately those developing countries in need of capital, membership would be beneficial; and 200,000 East Timorese; and would contribute to the purposes of the Whereas Taiwan is already a member of re- Whereas Indonesia has systematically IMF; gional multilateral economic institutions in- committed human rights abuses against the

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people of East Timor through arbitrary ar- Budget authority Outlays The PRESIDING OFFICER. Without rests, torture, disappearances, extra-judicial objection, it is so ordered. executions, and general political repression; Total ...... 831,120,000,000 854,008,000,000 Whereas 8 United Nations General Assem- f f bly and 2 United Nations Security Council PRIVILEGE OF THE FLOOR resolutions have reaffirmed the right of the ORDERS FOR MONDAY, JULY 13, Mr. ROTH. Mr. President, I ask unan- people of East Timor to self-determination; 1998 Whereas Bishop Carlos Filipe Ximenes imous consent that Kathryn Quinn of Belo and Jose Ramos-Horta, who were Mr. GRAMS. Mr. President, I ask the Finance Committee be permitted awarded the 1996 Nobel Peace Prize for their unanimous consent that when the Sen- to be on the Senate floor for the rest of courageous contribution to the East Timor- ate completes its business today it this day. ese struggle, have called for a United Na- stand in adjournment until 12 noon on The PRESIDING OFFICER. Without tions-sponsored referendum on self-deter- Monday, July 13. I further ask that objection, it is so ordered. mination of the East Timorese; when the Senate reconvenes on Mon- f Whereas President Clinton in a letter day, immediately following the prayer, dated December 27, 1996, expressed interest the routine requests through the morn- IRS INTERNAL AUDITS in the idea of a United Nations-sponsored referendum on self-determination in East ing hour be granted and the Senate Mr. ROTH. Mr. President, yester- Timor; then begin a period of morning busi- day’s 96 to 2 vote to reform the Inter- Whereas the United States cosponsored a ness until 2 p.m. with Senators per- nal Revenue Service was a victory for 1997 United Nations Human Rights Commis- mitted to speak for up to 5 minutes the American people. I am grateful for sion Resolution calling for Indonesia to com- each. the cooperation we received from our ply with the directives of existing United Na- The PRESIDING OFFICER. Without colleagues. I am grateful for the sup- tions resolutions regarding East Timor; and objection, it is so ordered. port that came from our constituents. Whereas present circumstances provide a Mr. GRAMS. I further ask unanimous And I very much appreciate the willing unique opportunity for a resolution of the consent that following morning busi- participation that came from individ- East Timor question: Now, therefore, be it ness, the Senate begin debate on the Resolved, That it is the sense of the Senate uals within the Internal Revenue Serv- that the President should— motion to proceed to S. 2271, the prop- ice itself. (1) encourage the new political leadership erty rights bill, until 5:45 p.m., with From the beginning of our intensive in Indonesia to institute genuine democratic the time equally divided in the usual investigation, and throughout our and economic reforms, including the estab- form. hearings, I made it clear that the IRS lishment of an independent judiciary, civil- The PRESIDING OFFICER. Without is filled with hard-working, honorable ian control of the military, and the release objection, it is so ordered. men and women. of political prisoners; f (2) encourage the new political leadership We depend on these individuals, on in Indonesia to promote and protect the PROGRAM their integrity and expertise to carry out a complex and often thankless human rights and fundamental freedoms of Mr. GRAMS. Mr. President, for the all the people of Indonesia and East Timor; task—yet a task that is fundamentally information of all Senators, when the and important to the welfare and future of Senate reconvenes on Monday at 12 (3) work actively, through the United Na- America. Had it not been for those noon, there will be a period of morning tions and with United States allies, to carry within the IRS who were concerned business until 2 p.m. Following morn- out the directives of existing United Nations about the abuses they witnessed—had resolutions on East Timor and to support an ing business, the Senate will begin de- they not come forward to speak with internationally supervised referendum on bate on the motion to proceed to the us—there would have been no hearing. self-determination. property rights bill. At 5:45 p.m., under There would have been no reform ef- SEC. 2. The Secretary of the Senate shall a previous order, the Senate will pro- transmit a copy of this resolution to the fort—no change. And the abuses would ceed to a cloture vote on the motion to President. have continued. proceed to the property rights bill. What our investigation focused on f Following that vote, the Senate was the culture of the agency. It fo- CHANGES TO S. RES. 209 could consider any other legislative or cused on an environment that had been executive items that may be cleared Mr. GRAMS. Also, Mr. President, on allowed to establish itself because of for action. For the remainder of next behalf of the chairman of the Budget rules that granted excessive license to week, the Senate will attempt to com- Committee, Senator DOMENICI, I ask those inclined to abuse power—an envi- plete action on the property rights bill unanimous consent to adjust the allo- ronment that lacked sufficient over- and, hopefully, finish several appro- cation to the Appropriations Com- sight. This was the culprit. And I am priations bills. mittee made under S. Res. 209 with the grateful that after an attempt early on changes that I now send to the desk. As a reminder, on Wednesday, July 15, at 10 a.m., there will be a joint in our investigation to circle the wag- The PRESIDING OFFICER. Without ons concerning the Finance Commit- objection, it is so ordered. meeting of Congress to receive an ad- dress from the President of Romania. tee’s efforts, the IRS—under the fine The changes follow: leadership of Commissioner Charles f Budget authority Outlays Rossotti—determined to work with us, ORDER FOR ADJOURNMENT not against us. Current Allocation: Two reports issued today speak vol- Defense discretionary ...... 271,570,000,000 266,635,000,000 Mr. GRAMS. Mr. President, if there Nondefense discretionary ..... 255,450,000,000 289,547,000,000 is no further business the come before umes about the spirit of cooperation Violent crime reduction fund 5,800,000,000 4,953,000,000 Commissioner Rossotti demonstrated. Highways ...... the Senate, I now ask unanimous con- Mass transit ...... sent that the Senate stand in adjourn- They validate each of the concerns Mandatory ...... 299,159,000,000 291,731,000,000 ment under the previous order, fol- raised in our investigation. They are Total ...... 831,979,000,000 852,866,000,000 lowing the remarks of the distin- filled with examples that support those that we heard from the courageous wit- Adjustments: guished Senator from Delaware, Sen- Defense discretionary ...... ator ROTH. nesses who addressed our committee. Nondefense discretionary ..... ¥859,000,000 ¥25,144,000,000 The PRESIDING OFFICER. Without They remove any question concerning Violent crime reduction fund ...... Highways ...... +21,885,000,000 objection, it is so ordered. the appropriateness or necessity of the Mass transit ...... +4,401,000,000 Mr. GRAMS. Mr. President, I suggest extensive investigation we undertook. Mandatory ...... the absence of a quorum. And they make it clear that our con- Total ...... ¥859,000,000 +1,142,000,000 The PRESIDING OFFICER. The clusions, and consequently our legisla- tive outcome, were right on target. Revised Allocation: clerk will call the roll. Defense discretionary ...... 271,570,000,000 266,635,000,000 The legislative clerk proceeded to I appreciate the honesty and candor Nondefense discretionary ..... 254,591,000,000 264,403,000,000 call the roll. that is contained in these two internal Violent crime reduction fund 5,800,000,000 4,953,000,000 Highways ...... 21,885,000,000 Mr. ROTH. Mr. President, I ask unan- audits. Prepared by the agency’s Chief Mass transit ...... 4,401,000,000 imous consent that the order for the Inspector’s office at my request, they Mandatory ...... 299,159,000,000 291,731,000,000 quorum call be rescinded. offer a thorough and objective analysis

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00102 Fmt 4637 Sfmt 0634 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY July 10, 1998 CONGRESSIONAL RECORD — SENATE S8017 of serious problems within the agency’s reports of Examination activity, group taxpayers have due process protections culture. Among other things, these re- meetings, and similar methods. En- in collections activities. We are prohib- ports paint a vivid picture of how the forcement statistics,’’ the report con- iting the IRS from using enforcement IRS’ Examination Division used per- tinues, ‘‘were often in referenced to statistics. formance measures and statistics, com- how group managers and employees This is a moment in which we can all pelling auditors and examination per- were doing in relation to district or be proud. The successful passage of re- sonnel to inflate taxpayer liabilities. group goals.’’ form legislation yesterday, the bipar- They show how the Collection Division Cast after case is cited in these re- tisan spirit that marked our investiga- abused seizure authority, in one case ports to illustrate how these activities tion and subsequent debate, the will- turning a taxpayer’s life upside down within the agency adversely influenced ingness of the agency, itself, to cooper- for the grand sum of four dollars and the lives of taxpayers. In one example, ate—all of these are to be credited. seventeen cents! collections officers did not even at- f The reports even documented the tempt to contact the taxpayer prior to most troubling issue of how the Inter- seizing his property. The revenue offi- ADJOURNMENT UNTIL MONDAY, nal Revenue Service would often go cer confirmed the taxpayer’s address JULY 13, 1998 after taxpayers who were most vulner- and ownership of assets two days be- The PRESIDING OFFICER. Under able—those suffering from medical fore seizing them. And what did the the previous order, the Senate now problems or severe financial setbacks. IRS seize? The tools the taxpayer need- stands adjourned. According to the internal audits, ‘‘the ed to provide for his family. Even the Thereupon, the Senate, at 2:37 p.m., seizure[s] demonstrated insensitivity taxpayer’s 11-year-old daughter pleaded adjourned until Monday, July 13, 1998, to the taxpayer’s current situation or with the collections officer to halt the at 12 noon. [were] conducted to enhance statistical action, but the activity proceeded—the measures.’’ seizure producing a measly net proceed f These reports are astonishing in the of $20! scope of the taxpayer abuse they con- Again, Mr. President, these stories NOMINATIONS firm and in the fact that they come are not coming from witnesses whose Executive nominations received by from the agency itself. In the case of credibility might be challenged. They the Senate July 10, 1998: the man whose business was seized and are admissions made by the Internal DEPARTMENT OF STATE sold to net the IRS four dollars and Revenue Service itself. MARY BETH WEST, OF THE DISTRICT OF COLUMBIA, A seventeen cents, the report states Nearly half of the seizures examined CAREER MEMBER OF THE SENIOR EXECUTIVE SERVICE, FOR THE RANK OF AMBASSADOR DURING HER TENURE clearly that, ‘‘The revenue officer did in these reports indicate that improper OF SERVICE AS DEPUTY ASSISTANT SECRETARY OF not use sound * * * judgment when or abusive tactics were used against STATE FOR OCEANS, FISHERIES, AND SPACE. conducting this low dollar seizure.’’ the taxpayer. Not only does this vali- THE JUDICIARY And this is only one of many such date our findings, but the very exist- WILLIAM B. TRAXLER, JR., OF SOUTH CAROLINA, TO BE cases documented, Mr. President. In ence of these internal audits dem- UNITED STATES CIRCUIT JUDGE FOR THE FOURTH CIR- these two reports, Americans will find onstrate that a new era is drawing on CUIT, VICE DONALD STUART RUSSELL, DECEASED. a stunning array of similar abuses. an agency that for far too long has IN THE ARMY The reports make it clear that the been operating in darkness. It looks to THE FOLLOWING NAMED OFFICER FOR APPOINTMENT IN THE UNITED STATES ARMY TO THE GRADE INDICATED agency’s focus on goals and statistics be an era of openness—of cooperation— WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND come at the expense of quality service and accountability. I laud the current RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: and fair treatment of taxpayers. They leadership, Commissioner Rossotti, and To be lieutenant general came at the expense of fairness to IRS those who support him in what will be LT. GEN. EDWARD G. ANDERSON, III, 0000 an historic turning point in the life of employees. One report admits that a f full 74 percent of group manager eval- the agency. What a legacy they will uations contained references to en- leave! WITHDRAWAL forcement statistics. The evaluations And again, I express my gratitude to Executive message transmitted by cited dollars per hour, hours per re- colleagues who stood firm in our effort the President to the Senate on July 10, turn, and dollars recommended for col- to change the way the IRS does busi- 1998, withdrawing from further Senate lection. ness. Our reform legislation, which I consideration the following nomina- The reports make it clear that dis- expect will be signed by the President tion: tricts routinely communicated goals in the very near future, will go a long DEPARTMENT OF STATE and enforcement statistics to group way toward preventing the types of abuses chronicled in these reports. We MARY BETH WEST, OF THE DISTRICT OF COLUMBIA, A managers and employees. CAREER MEMBER OF THE SENIOR EXECUTIVE SERVICE, In fact, the agency admits that such are increasing oversight of the agency FOR THE RANK OF AMBASSADOR DURING HER TENURE statistics were ‘‘communicated in all 12 and holding employees accountable for OF SERVICE AS DEPUTY ASSISTANT SECRETARY OF STATE FOR OCEANS AND SPACE, WHICH WAS SENT TO districts through newsletters, monthly their actions. We are ensuring that THE SENATE ON FEBRUARY 24, 1998.

VerDate Mar 15 2010 00:39 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00103 Fmt 4637 Sfmt 9801 E:\1998SENATE\S10JY8.REC S10JY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY Friday, July 10, 1998 Daily Digest Senate Taiwan/Multilateral Economic Institutions: Sen- Chamber Action ate agreed to S. Con. Res. 30, expressing the sense Routine Proceedings, pages S7915–S8017 of Congress that the rules of multilateral economic Measures Introduced: Six bills were introduced, as institutions, including the International Monetary follows: S. 2285–2290. Pages S7939±40 Fund and the International Bank for Reconstruction and Development, should be amended to allow Measures Reported: Reports were made as follows: membership for the Republic of China on Taiwan S. 2286, to amend the National School Lunch Act and other qualified economies, after agreeing to the and the Child Nutrition Act of 1966 to provide following amendment proposed thereto: Page S8015 children with increased access to food and nutrition Grams (for Helms) Amendment No. 3122, in the assistance, to simplify program operations and im- nature of a substitute. Page S8015 prove program management, to extend certain au- thorities contained in those Acts through fiscal year Indonesia/East Timor: Senate agreed to S. Res. 2003. (S. Rept. No. 105–243) 237, expressing the sense of the Senate regarding the S. 1695, to establish the Sand Creek Massacre Na- situation in Indonesia and East Timor. tional Historic Site in the State of Colorado, with an Pages S8015±16 amendment in the nature of a substitute. (S. Rept. Nominations Received: Senate received the follow- No. 105–244) ing nominations: S. 1283, to award Congressional gold medals to Mary Beth West, of the District of Columbia, a Jean Brown Trickey, Carlotta Walls LaNier, Melba Career Member of the Senior Executive Service, for Patillo Beals, Terrence Roberts, Gloria Ray the rank of Ambassador during her tenure of service Karlmark, Thelma Mothershed Wair, Ernest Green, as Deputy Assistant Secretary of State for Oceans, Elizabeth Eckford, and Jefferson Thomas, commonly Fisheries, and Space. referred collectively as the ‘‘Little Rock Nine’’ on the William B. Traxler, Jr., of South Carolina, to be occasion of the 40th anniversary of the integration of United States Circuit Judge for the Fourth Circuit. the Central High School in Little Rock, Arkansas, 1 Army nomination in the rank of general. with an amendment. (S. Rept. No. 105–245) Page S8017 S. 1259, to authorize appropriations for fiscal Nomination Withdrawn: Senate received notifica- years 1998 and 1999 for the United States Coast tion of the withdrawal of the following nomination: Guard, with amendments. (S. Rept. No. 105- 246) Mary Beth West, of the District of Columbia, for S.J. Res. 47, disapproving the extension of the the rank of Ambassador during her tenure of service waiver authority contained in section 402(c) of the as Deputy Assistant Secretary of State for Oceans and Trade Act of 1974 with respect to Vietnam, unfavor- Space, which was sent to the Senate on February 24, ably. Page S7939 1998. Page S8017 Measures Passed: Communications: Pages S7937±39 U.S. Commitments to Taiwan: Committee on Petitions: Page S7939 Foreign Relations was discharged from further con- Statements on Introduced Bills: Pages S7940±60 sideration of S. Con. Res. 107, affirming United States commitments under the Taiwan Relations Additional Cosponsors: Page S7960 Act, and by a unanimous vote of 92 yeas (Vote No. Amendments Submitted: Page S7960 196), Senate agreed to the resolution, after agreeing Notices of Hearings: Page S7961 to the following amendment proposed: Pages S7915±19 Additional Statements: Pages S7961±63 Lott Amendment No. 3121, of a perfecting na- Text of H.R. 6 as Previously Passed: ture. Page S7918 Pages S7963±S8014 D741 D742 CONGRESSIONAL RECORD — DAILY DIGEST July 10, 1998 Record Votes: One record vote was taken today. New York, to be Commissioner of Customs, James (Total—196) Page S7918 E. Johnson, of New Jersey, to be Under Secretary for Adjournment: Senate convened at 9:30 a.m., and Enforcement, and Elizabeth Bresee, of New York, to adjourned at 2:37 p.m., until 12 noon, on Monday, be an Assistant Secretary, all of the Department of July 13, 1998. (For Senate’s program, see the re- the Treasury. marks of the Acting Majority Leader in today’s Also, committee ordered reported with a rec- Record on page S8016.) ommendation of disapproval, S.J. Res. 47, opposing the President’s June 3 decision to renew the annual Committee Meetings waiver of Jackson-Vanik amendment restrictions on United States interaction with Vietnam. (Committees not listed did not meet) NOMINATIONS Committee on Finance: Committee ordered favorably reported the nominations of Raymond W. Kelly, of h House of Representatives cies for the fiscal year ending September 30, 1999, and Chamber Action proposed legislation making appropriations for the De- The House was not in session today. It will next partment of the Treasury, Postal Service and general gov- meet on Tuesday, July 14 at 12:30 p.m. for morning ernment for the fiscal year ending September 30, 1999, Hour debate. 9:30 a.m., SD–106. Committee on Banking, Housing, and Urban Affairs: July 15, to hold oversight hearings on the practice of auto- Committee Meetings mated teller machine (ATM) surcharging, 10 a.m., No Committee meetings were held. SD–538. f July 17, Subcommittee on Financial Institutions and Regulatory Relief and Subcommittee on Housing Oppor- CONGRESSIONAL PROGRAM AHEAD tunity and Community Development, to hold joint hear- Week of July 13 through 18, 1998 ings to review a report on the Real Estate Settlements Procedure Act and the Truth in Lending Act from the Senate Chamber Department of Housing and Urban Development and the On Monday, Senate will vote on a motion to close Federal Reserve, 10:30 a.m., SD–106. Committee on Commerce, Science, and Transportation: July further debate on the motion to proceed to consider- 14, business meeting, to consider pending calendar busi- ation of S. 2271, Private Property Rights, at 5:45 ness, 9:30 a.m., SR–253. p.m. July 15, Full Committee, to hold hearings on S. 2107, On Tuesday and during the balance of the week, to enhance electronic commerce by providing the reliabil- Senate may consider further appropriations bills, con- ity and integrity of commercial transactions through es- ference reports, when available, and any cleared leg- tablishing authentication standards for electronic commu- islative or executive business. nications, 2 p.m., SR–253. On Wednesday, Senate and House will hold a joint July 16, Full Committee, to hold hearings to examine meeting to receive an address by His Excellency the General Accounting Office’s investigation of the Uni- Emil Constantinescu, President of Romania, at 10 versal Service, Schools and Libraries program, 9:30 a.m., a.m. SR–253. Committee on Energy and Natural Resources: July 14 and (Senate will recess on Tuesday, July 14, 1998, from 15, to hold hearings on H.R. 856, to provide a process 12:30 p.m. until 2:15 p.m. for respective party con- leading to full self-government for Puerto Rico, and S. ferences.) 472, to provide for referenda in which the residents of Senate Committees Puerto Rico may express democratically their preferences regarding the political status of the territory, 9:30 a.m., (Committee meetings are open unless otherwise indicated) SH–216. Committee on Appropriations: July 14, business meeting, July 14, Subcommittee on Water and Power, to hold to mark up proposed legislation making appropriations hearings on S. 1515, to increase authorization levels for for the Department of Transportation and Related Agen- State and Indian tribal, municipal, rural, and industrial July 10, 1998 CONGRESSIONAL RECORD — DAILY DIGEST D743 water supplies, to meet current and future water quantity Arab Emirates, Elizabeth Davenport McKune, of Vir- and quality needs of the Red River Valley, S. 2111, to ginia, to be Ambassador to the State of Qatar, and David establish the conditions under which the Bonneville Michael Satterfield, of Virginia, to be Ambassador to the Power Administration and certain Federal agencies may Republic of Lebanon, 2 p.m., SD–419. enter into a memorandum of agreement concerning man- July 16, Full Committee, to hold hearings on the agement of the Columbia/Snake River Basin, and S. nominations of James Howard Holmes, of Virginia, to be 2117, to authorize the construction of the Perkins County Ambassador to the Republic of Latvia, Steven Robert Rural Water System and authorize financial assistance to Mann, of Pennsylvania, to be Ambassador to the Republic the Perkins County Rural Water System, Inc., a nonprofit of Turkmenistan, Richard Nelson Swett, of New Hamp- corporation, in the planning and construction of the shire, to be Ambassador to Denmark, and Melissa Foelsch water supply system, 2:30 p.m., SD–366. Wells, of Connecticut, to be Ambassador to the Republic July 16, Subcommittee on National Parks, Historic of Estonia, 4 p.m., SD–419. Preservation, and Recreation, to hold hearings on S. 155, Committee on Governmental Affairs: July 15, business to redesignate General Grant National Memorial as meeting, to consider pending calendar business, 10 a.m., Grant’s Tomb National Monument, S. 1408, to establish SD–342. the Lower East Side Tenement National Historic Site, S. Committee on the Judiciary: July 14, to hold oversight 1718, to amend the Weir Farm National Historic Site hearings to examine activities of the Department of Jus- Establishment Act of 1990 to authorize the acquisition of tice, focusing on the Civil Rights Division, 9 a.m., additional acreage for the historic site to permit the de- SD–226. velopment of visitor and administrative facilities and to authorize appropriation of additional amounts for the ac- July 15, Full Committee, to continue oversight hear- quisition of real and personal property, and S. 1990, to ings to examine activities of the Department of Justice, authorize expansion of Fort Davis National Historic Site 9 a.m., SD–226. in Fort Davis, Texas, 2 p.m., SD–366. July 16, Full Committee, business meeting, to consider Committee on Environment and Public Works: July 14, pending calendar business, 9 a.m., SD–226. Subcommittee on Transportation and Infrastructure, to July 16, Full Committee, to hold hearings on pending hold hearings on S. 1647, to authorize funds and make nominations, 2 p.m., SD–226. reforms to programs authorized by the Public Works and Committee on Small Business: July 15, to hold hearings Economic Development Act of 1965, and other pending to examine the impact of new home health care regula- measures, 9:30 a.m., SD–406. tions on small business agencies, 9:30 a.m., SR–428A. July 15, Full Committee, to hold hearings on the nom- Committee on Indian Affairs: July 15, business meeting, ination of Nikki Rush Tinsley, of Maryland, to be Inspec- to mark up S. 1905, to provide for equitable compensa- tor General, Environmental Protection Agency, 9 a.m., tion for the Cheyenne River Sioux Tribe, H.R. 700, to SD–406. remove the restriction on the distribution of certain reve- Committee on Finance: July 14, to hold hearings to ex- nues from the Mineral Springs parcel to certain members amine Japan’s role in the international trading system, fo- of the Agua Caliente Band of Cahuilla Indians, S. 391, cusing on prospects for market liberalization and eco- to provide for the disposition of certain funds appro- nomic reform, 9:30 a.m., SD–215. priated to pay judgment in favor of the Mississippi Sioux Committee on Foreign Relations: July 13, Subcommittee Indians, and to resume consideration of S. 109, to provide on Near Eastern and South Asian Affairs, to hold hear- Federal housing assistance to Native Hawaiians; to be fol- ings to examine the status of India and Pakistan nuclear lowed by a hearing on S. 2097, to encourage and facili- weapons potential, 3 p.m., SD–419. tate the resolution of conflicts involving Indian tribes, July 14, Subcommittee on East Asian and Pacific Af- 9:30 a.m., SD–G50. fairs, to hold hearings to examine problems and prospects Select Committee on Intelligence: July 14, closed business with regard to Kedo and the Korean agreed nuclear meeting, to consider pending committee business, 2 p.m., framework, 10 a.m., SD–419. SH–219. July 15, Subcommittee on European Affairs, to hold July 15, Full Committee, to resume hearings on the hearings to examine United States policy toward Estonia, investigation of the impacts to United States national se- Latvia, and Lithuania, 2 p.m., SD–419. curity from advanced satellite technology exports to July 16, Full Committee, to hold hearings on the China and Chinese efforts to influence United States pol- nominations of Hugh Q. Parmer, of Texas, to be an As- icy, 2:30 p.m., SH–216. sistant Administrator of the Agency for International De- Special Committee on Aging: July 15, to hold hearings to velopment, and Mary Beth West, of the District of Co- examine how an increase in the retirement age will affect lumbia, for the rank of Ambassador during her tenure of the solvency of the Social Security system, the impact on service as Deputy Assistant Secretary of State for Oceans and Space, 10 a.m., SD–419. workers, and how employers may adjust to an increase in July 16, Full Committee, to hold hearings on the the number of older workers, 1:30 p.m., SD–628. nominations of John Bruce Craig, of Pennsylvania, to be House Chamber Ambassador to the Sultanate of Oman, Theodore H. Kattouf, of Maryland, to be Ambassador to the United To be announced. D744 CONGRESSIONAL RECORD — DAILY DIGEST July 10, 1998 House Committees United States and the Republic of Korea, 9:30 a.m., 2172 Rayburn. Committee on Appropriations, July 14, to mark up the Committee on the Judiciary, July 14, Subcommittee on Labor, Health and Human Services, and Education appro- priations for fiscal year 1999, 1 p.m., 2358 Rayburn. the Constitution, hearing on H.R. 4019, Religious Lib- July 15, to mark up the Commerce, Justice, State, and erty Protection Act of 1998, 9:30 a.m., and to hold a Judiciary appropriations for fiscal year 1999, 9:30 a.m., hearing on H.R. 4006, Lethal Drug Abuse Prevention 2359 Rayburn. Act of 1998, 2 p.m., 2237 Rayburn. Committee on Banking and Financial Services, July 15, to July 16, full Committee, to mark up pending business, continue markup of H.R. 219, Homeowners’ Insurance 10 a.m., 2141 Rayburn. Availability Act of 1997, 10 a.m., 2128 Rayburn. July 17, Subcommittee on the Constitution, oversight July 16, Subcommittee on Financial Institutions and hearing on the Civil Rights Division of the Department Consumer Credit, hearing on streamlining bank regu- of Justice, 9:30 a.m., 2237 Rayburn. latory oversight, 9:30 a.m., 2128 Rayburn. July 17, Subcommittee on Crime, oversight hearing July 17, full Committee, hearing on H.R. 4062, Fi- addressing the civil application of the Racketeering Influ- nancial Derivatives Supervisory Improvement Act of enced Corrupt Organization Act (RICO) to nonviolent 1998, 10 a.m., 2128 Rayburn. advocacy groups, 9:30 a.m., 2226 Rayburn. Committee on Commerce, July 15, Subcommittee on En- Committee on National Security, July 16, hearing on the ergy and Power, hearing on Electronic Commerce: The findings and conclusions of the Commission to Assess the Energy Industry in the Electronic Age, 11 a.m., 2123 Ballistic Missile Threat to the United States, 9:30 a.m., Rayburn. 2118 Rayburn. Committee on Education and the Workforce, July 14, Sub- Committee on Resources, July 15, oversight hearing on committee on Oversight and Investigations, hearing on Endangered Species Act, 2 p.m., 1324 Longworth. ‘‘The Administration’s Proposed Contracting Regulations: July 16, Subcommittee on Fisheries Conservation, ‘Good Government’ or ‘Blacklisting’?’’ 1 p.m., 2175 Ray- Wildlife and Oceans, to mark up H.R. 1481, Great Lakes burn. Fish and Wildlife Restoration Act of 1997 and to hold July 15, Subcommittee on Employer-Employee Rela- an oversight hearing on Pilot Program to Control Non- tions, hearing on Pension Fairness for NBA Pioneers, Indigenous Species Nutria at the Blackwater National 1:30 p.m., 2175 Rayburn. Wildlife Refuge in Maryland, 2 p.m., 1334 Longworth. July 16, Subcommittee on Workforce Protections, July 16, Subcommittee on Forests and Forest Health, hearing on H.R. 2710, Rewarding Performance in Com- oversight hearing on Regional Haze, 10 a.m., 1334 Long- pensation Act, 10:30 a.m., 2175 Rayburn. worth. July 17, Subcommittee on Oversight and Investiga- July 16, Subcommittee on National Parks and Public tions, to mark up a report on ‘‘Education at a Crossroads: Lands, hearing on the following bills: H.R. 3981, to What Works and What’s Wasted in Education Today’’, modify the boundaries of the George Washington Birth- 9:30 a.m., 2175 Rayburn. place National Monument; H.R. 4109, to authorize the Committee on Government Reform and Oversight, July 14, Gateway Visitor Center at Independence National Histor- Subcommittee on Government Management, Information, ical Park; H.R. 4141, to amend the Act authorizing the and Technology, hearing on H.R. 4007 and S. 1379, establishment of the Chattahoochee River National Recre- Nazi War Crimes Disclosure Act, 10 a.m., and to hold ation Area to modify the boundaries of the Area, and to an oversight hearing on the Federal Advisory Committee provide for the protection of lands, waters, and natural, Act, 2 p.m., 2154 Rayburn. cultural, and scenic resources within the national recre- July 15, Subcommittee on the District of Columbia, ation area; and H.R. 4158, National Park Enhancement hearing on Washington Convention Center Authority, 9 and Protection Act, 10 a.m., 1324 Longworth. a.m., 2247 Rayburn. Committee on Rules, July 14, to consider the following: July 15, Subcommittee on National Economic Growth, H.R. 3682, Child Custody Protection Act; and H.R. Natural Resources, and Regulatory Affairs, to continue 3267, Sonny Bono Memorial Salton Sea Reclamation Act, hearings on ‘‘The Kyoto-Protocol: Is the Clinton-Gore 2 p.m., H–313 Capitol. Administration Selling Out Americans?’’ (Part V), 10 Committee on Science, July 15, Subcommittee on Energy a.m., 2154 Rayburn. and Environment, oversight hearing on the Science of July 16, Subcommittee on Civil Service, to mark up Risk Assessment: Implications for Federal Regulation, 10 pending business, 9 a.m., 2247 Rayburn. a.m., 2318 Rayburn. July 16, Subcommittee on Human Resources, oversight Committee on Small Business, July 15, hearing on the Im- hearing on Early Childhood Interventions: Public-Private pact of the Year 2000(Y2K) Computer Problem on Small Partnerships, 9:30 a.m., 2154 Rayburn. Businesses, 11 a.m., 2360 Rayburn. Committee on International Relations, July 15, Sub- July 16, Subcommittee on Empowerment, hearing on committee on Africa, hearing on Combating International the social and economic costs of teenage pregnancy, 10 Crime in Africa, 1 p.m., 2255 Rayburn. a.m., 2360 Rayburn. July 16, full Committee, hearing on U.S.-Russian Re- July 16, Subcommittee on Government Programs and lations, 10 a.m., 2172 Rayburn. Oversight, hearing with respect to the SBA’s Proposed July 16, Subcommittee on Asia, to mark up H.Res. New Automated Loan Monitoring System, 2 p.m., 2360 459, commemorating 50 years of relations between the Rayburn. July 10, 1998 CONGRESSIONAL RECORD — DAILY DIGEST D745

Committee on Transportation and Infrastructure, July 15, dicating claims presented by veterans suffering from hep- Subcommittee on Coast Guard and Maritime Transpor- atitis C, cerebral malaria and Persian Gulf illnesses, 10 tation, oversight hearing on the U.S. Coast Guard Marine a.m., 334 Cannon. Environmental Protection and Compliance Programs, 10 Committee on Ways and Means, July 15, Subcommittee a.m., 2167 Rayburn. on Trade, hearing on United States-Japan Trade Rela- July 16, Subcommittee on Public Buildings and Eco- tions, 1:30 p.m., 1100 Longworth. nomic Development, hearing on the Status of the Court- July 16, Subcommittee on Health, hearing on the Ad- house Construction Program, U.S. Mission to the United ministration’s Plan to Delay Implementation of the Bal- Nations Construction Request and comments on H.R. anced Budget Act of 1997, 11 a.m., 1100 Longworth. 2751, General Services Administration Improvement Act Permanent Select Committee on Intelligence, July 17, execu- of 1997, 9 a.m., 2253 Rayburn. tive, hearing on Counternarcotics, 11 a.m., H–405 Cap- Committee on Veterans’ Affairs, July 16, Subcommittee itol. on Benefits, oversight hearing on the standards for adju- D746 CONGRESSIONAL RECORD — DAILY DIGEST July 10, 1998

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 12 noon, Monday, July 13 12:30 p.m., Tuesday, July 14

Senate Chamber House Chamber Program for Monday: After the transaction of any Program for Tuesday: To be announced. morning business (not to extend beyond 2 p.m.), Senate will consider the motion to proceed to consideration of S. 2271, Private Property Rights, with a cloture vote on the motion to occur thereon at 5:45 p.m.

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