May 8, 1997 CONGRESSIONAL RECORD — SENATE S4217

Abraham I. Ramirez, 0000 Mr. HATCH, Ms. MOSELEY-BRAUN, Mr. S. 732. A bill to require the Secretary of Douglas E. Rosander, 0000 MURKOWSKI, Mr. D’AMATO, Mr. the Treasury to mint and issue coins in com- Gilbert Seda, 0000 GRAMM, Mr. MACK, Mr. LIEBERMAN, memoration of the centennial anniversary of Charles H. Shaw, 0000 Mr. COCHRAN, Mr. BROWNBACK, Mr. the first manned flight of Orville and Wilbur Amanda G. Sierra, 0000 ENZI, and Mr. HUTCHINSON): Wright in Kitty Hawk, North Carolina, on Sandra S. Skyles, 0000 S. 724. A bill to amend the Internal Rev- December 17, 1903; to the Committee on John C. Smajdek, 0000 enue Code of 1986 to provide coporate alter- Banking, Housing, and Urban Affairs. native minimum tax reform; to the Com- Betsy J. Smith, 0000 f Scott A. Smith, 0000 mittee on Finance. Vanessa D. Smith, 0000 By Mr. CAMPBELL: SUBMISSION OF CONCURRENT AND Joseph M. Snowberger, 0000 S. 725. A bill to direct the Secretary of the SENATE RESOLUTIONS Interior to convey the Collbran Reclamation Dovie S. Soloe, 0000 The following concurrent resolutions Amy L. Spearman, 0000 Project to the Ute Water Conservancy Dis- Richard G. Steffey, Jr., 0000 trict and the Collbran Conservancy District; and Senate resolutions were read, and Dana G. Stuartmagda, 0000 to the Committee on Energy and Natural Re- referred (or acted upon), as indicated: Milan S. Sturgis, 0000 sources. By Mr. BROWNBACK: Scott C. Swanson, 0000 By Mrs. FEINSTEIN (for herself, Mr. S. Con. Res. 26. A concurrent resolution to Atticus T. Taylor, 0000 GRAHAM, Mrs. BOXER, Ms. SNOWE, Mr. permit the use of the rotunda of the Capitol Benjamin F. Taylor, 0000 REID, Mr. JOHNSON, Ms. MOSELEY- for a congressional ceremony honoring Mary W. Tinnea, 0000 BRAUN, Ms. LANDRIEU, Mr. HARKIN, Mother Teresa; considered and agreed to. Mr. D’AMATO, Mr. SPECTER, Mrs. Nelida R. Toledo, 0000 f Karen D. Torres, 0000 MURRAY, and Mr. MACK): S. 726. A bill to allow postal patrons to Dick W. Turner, 0000 STATEMENTS ON INTRODUCED contribute to funding for breast cancer re- Barbara J. Votypka, 0000 BILLS AND JOINT RESOLUTIONS search through the voluntary purchase of Christine M. Ward, 0000 certain specially issued United States post- By Mr. DOMENICI (for himself, Terese M. Warner, 0000 age stamps; to the Committee on Govern- Mr. ASHCROFT, Mr. WYDEN and Matthew L. Warnke, 0000 mental Affairs. Mr. CAMPBELL): Jan P. Werson, 0000 By Mrs. FEINSTEIN (for herself, Ms. Michelle S. Williams, 0000 S. 718. A bill to amend the Juvenile MIKULSKI, Mr. WELLSTONE, Mr. JOHN- Wayne E. Wiseman, 0000 Justice and Delinquency Prevention SON, and Mrs. MURRAY): Stan A. Young,0000 S. 727. A bill to amend the Public Health Act of 1974, and for other purposes; to (The above nominations were reported Service Act and Employee Retirement In- the Committee on the Judiciary. with the recommendation that they be con- come Security Act of 1974 to require that THE JUVENILE CRIME CONTROL AND COMMUNITY firmed.) group and individual health insurance cov- PROTECTION ACT OF 1997 f erage and group health plans provide cov- Mr. DOMENICI. Mr. President, I rise erage for annual screening mammography INTRODUCTION OF BILLS AND for women 40 years of age or older if the cov- today, with the Senator from Missouri, JOINT RESOLUTIONS erage or plans include coverage for diag- Senator ASHCROFT, and the Senator nostic mammography; to the Committee on from Oregon, Senator WYDEN, to intro- The following bills and joint resolu- Finance. duce the Juvenile Crime Control and tions were introduced, read the first By Mrs. FEINSTEIN (for herself, Mr. Community Protection Act of 1997. I and second time by unanimous con- MACK, Mr. D’AMATO, Mr. REID, and don’t think there is anything that is sent, and referred as indicated: Mr. JOHNSON): worrying the American people more By Mr. DOMENICI (for himself, Mr. S. 728. A bill to amend title IV of the Pub- lic Health Service Act to establish a Cancer than what is happening to the criminal ASHCROFT, Mr. WYDEN, and Mr. CAMP- Research Trust Fund for the conduct of bio- justice system in their cities, their BELL): counties, and their States. S. 718. A bill to amend the Juvenile Justice medical research; to the Committee on Fi- nance. and Delinquency Prevention Act of 1974, and Senator ASHCROFT, a former attorney By Mr. HUTCHINSON (for himself, Mr. for other purposes; to the Committee on the general from Missouri, knows a lot LOTT, Mr. HOLLINGS, Ms. LANDRIEU, Judiciary. about these matters on a firsthand Mr. ROBERTS, and Mr. BROWNBACK): By Mr. WELLSTONE: S. 729. A bill to amend title I of the Em- basis from having been there. I am S. 719. A bill to expedite the naturalization ployee Retirement Income Security Act of hopeful he will arrive before the time of aliens who served with special guerrilla 1974 to provide new portability, participa- expires to speak to one aspect of the units in Laos; to the Committee on the Judi- tion, solvency, and other health insurance bill, which we are introducing, and ciary. protections and freedoms for workers in a then I will, as soon as I can, yield to By Mr. GRASSLEY (for himself, Mr. mobile workforce, to increase the purchasing Senator WYDEN for some of his observa- INOUYE, Mr. FRIST, and Mr. GRAHAM): power of employees and employers by remov- S. 720. A bill to amend titles XVIII and XIX tions. ing barriers to the voluntary formation of Last year, I had field hearings in New of the Social Security Act to expand and association health plans, to increase health make permanent the availability of cost-ef- plan competition providing more affordable Mexico to hear the concerns and prob- fective, comprehensive acute and long-term choice of coverage, to expand access to lems faced by all of the people affected care services to frail elderly persons through health insurance coverage for employees of by juvenile crime. We heard from the Programs of All-inclusive Care for the Elder- small employers through open markets, and police, prosecutors, judges, social ly (PACE) under the medicare and medicaid for other purposes; to the Committee on workers and, most important, Mr. programs; to the Committee on Finance. Labor and Human Resources. By Mr. TORRICELLI: President, as you well know, the vic- By Mr. KEMPTHORNE (for himself, tims who reside in our communities. S. 721. A bill to require the Federal Trade Mr. CRAIG, Mr. TORRICELLI, Mr. The sentiments expressed at these Commission to conduct a study of the mar- THOMAS, and Mr. ENZI): keting and advertising practices of manufac- S. 730. A bill to make retroactive the enti- hearings are the same ones felt by peo- turers and retailers of personal computers; tlement of certain Medal of Honor recipients ple all over this country: One, some ju- to the Committee on Commerce, Science, to the special pension provided for persons veniles are out of control and the juve- and Transportation. entered and recorded on the Army, Navy, Air nile justice system cannot cope with By Mr. THOMAS: Force, and Coast Guard Medal of Honor Roll; them; second, other children do not S. 722. A bill to benefit consumers by pro- to the Committee on Veterans’ Affairs. have enough constructive things to do moting competition in the electric power in- By Mr. BUMPERS: dustry, and for other purposes; to the Com- S. 731. A bill to extend the legislative au- to keep them from sliding into delin- mittee on Energy and Natural Resources. thority for construction of the National quency; third, the current system does By Mr. LAUTENBERG (for himself, Peace Garden memorial, and for other pur- little, if anything, to protect the public Mrs. BOXER, and Mr. KERRY): poses; to the Committee on Energy and Nat- from senseless youth violence; and S. 723. A bill to increase the safety of the ural Resources. fourth, the current system has failed American people by preventing dangerous By Mr. FAIRCLOTH (for himself, Mr. its victims. military firearms in the control of foreign HELMS, Mr. DEWINE, Ms. SNOWE, Ms. I want to tell my colleagues about an governments from being imported into the COLLINS, Mr. ROBERTS, Mr. MACK, Mr. United States, and for other purposes; to the DOMENICI, Mr. ABRAHAM, Mr. 18-year-old girl from New Mexico Committee on Foreign Relations. SANTORUM, Mr. THOMAS, Mr. WARNER, named Renee Garcia who was stabbed By Mr. NICKLES (for himself, Mr. Mr. DODD, Mr. COCHRAN, and Mr. and left paralyzed by a 15-year old gang ROCKEFELLER, Mr. LOTT, Mr. BREAUX, MURKOWSKI): member. The stabbing was part of that

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00085 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S4218 CONGRESSIONAL RECORD — SENATE May 8, 1997 gang’s initiation ritual. The gang going to leave an explanation of how my home State, a problem which this member later received only a sentence we change our Federal juvenile justice bill will help fix. of 4 years in a juvenile facility. This is system and modernize it to the Senator More juvenile arrests create the need what Renee Garcia had to say about from Missouri. It would be a shame if for more space to house juvenile crimi- the current justice system as it applied we tell the States to do things better, nals. But, because of burdensome fed- to her and her family: but we leave the prosecutions in the eral ‘‘sight and sound separation’’ The outdated laws which exist in our legal Federal juvenile justice system alone. rules, New Mexico has been unable to system today are nothing but a joke to juve- The bill adopts an approach that I implement a safe, reasonable solution niles. Our laws were meant for juveniles who suggested last year as part of a juve- to alleviate overcrowding at its juve- were committing [small] crimes like truancy nile justice bill. It authorizes—we do nile facilities. and breaking curfews. They are not designed not have it appropriated yet—but we Instead, the state has been forced to to deal with violent crimes that juveniles are authorize $500 million to provide the consider sending juvenile prisoners to committing today. States with two separate grant pro- Iowa and Texas to avoid violating the Renee has made quite a recovery grams: One, with virtually no strings federal rules and losing their funding. from her attack, and we are quite attached, based on a current State for- That is unacceptable and this bill will pleased that she is doing reasonably mula grant program; the second is a fix that. well in our community and in our new incentive grant for States that Mr. President, I am pleased to work State. enact what we call ‘‘best practices’’ to with the Senator from Missouri on this The time has come, in my opinion, combat and prevent juvenile violence. important legislation. I know that for the U.S. Government to be a better This bill authorizes $300 million, di- many of my colleagues share my con- partner in a major American effort to vided into two $150 million pots, for a cerns about the need to update our ju- improve the criminal juvenile justice new grant program, the purpose of venile justice system. I hope that they system across this land. For many, it which is to encourage States to get will examine our bill and lend their is well known, we have an adult juve- tough and enact reforms to their juve- support. nile system that developed over a long nile justice systems. I am going to stop here. I ask unani- period of time, but we have a juvenile I am not going to proceed with each mous consent that the entire bill and a justice system that sort of evolved one, but I will just read off the sug- summary of the bill be printed in the willy-nilly. It has never reached the gested reforms that will comprise ‘‘get- RECORD, and that it be appropriately stature of the adult system. There are ting tough’’ and ‘‘best practices’’: referred. It will bear the signatures vagaries and much has been left to Victims’ rights, including the right today of Senator ASHCROFT, Senator judges who are asked to respond to the to be notified of the sentencing and re- WYDEN, and Senator CAMPBELL as co- young criminals in a way completely lease of the offender; sponsors. different than if they were adults. Mandatory victim restitution; There being no objection, the mate- Some statutes were passed that made Public access to juvenile records; rial was ordered to be printed in the this response mandatory, and those Parental responsibility laws for acts RECORD, as follows: statutes still exist today. Still today, committed by juveniles released to S. 718 in many States, you do not disclose to their parents’ custody; the public the name and detailed infor- Be it enacted by the Senate and House of Rep- Zero tolerance for deadbeat juvenile resentatives of the United States of America in mation about juvenile criminals who parents, a requirement that juveniles Congress assembled, are committing adult crimes. Their released from custody attend school or SECTION 1. SHORT TITLE; TABLE OF CONTENTS. fingerprints and their records are not vocational training and support their (a) SHORT TITLE.—This Act may be cited as part of law enforcement’s ability to children; the ‘‘Juvenile Crime Control and Community cope with repeated crime, committed Zero tolerance for truancy; Protection Act of 1997’’. over and over, from one State to an- Character counts training, or similar (b) TABLE OF CONTENTS.—The table of con- other by some of these same teenage programs adopted and enacted among tents for this Act is as follows: criminals. the States; Sec. 1. Short title; table of contents. The Federal Government, in my opin- And mentoring. Sec. 2. Severability. ion, should get involved. As we do this, These programs are a combination of TITLE I—REFORM OF EXISTING however, we should expect the States reforms which will positively impact PROGRAMS to get tough on youth sentencing. We victims, get tough on juvenile offend- Sec. 101. Findings and purposes. should reward States for enacting law ers, and provide states with resources Sec. 102. Definitions. enforcement and prosecutorial policies to implement prevention programs to Sec. 103. Office of Juvenile Justice and De- designed to take violent juvenile crimi- linquency Prevention. keep juveniles out of trouble in the Sec. 104. Annual report. nals off the streets. first place. Sec. 105. Block grants for State and local This bill makes some fundamental The bill also increases from around programs. changes to the crime-fighting partner- $68 million to $200 million the amount Sec. 106. State plans. ship which exists between the States available to states under the current Sec. 107. Repeals. and the Federal Government. It con- OJJDP grant program. It also elimi- TITLE II—INCENTIVE GRANTS FOR tains two important ideas: One, strict nates many of the strings placed on ACCOUNTABILITY-BASED REFORMS law enforcement and prosecution poli- states as a condition of receiving those Sec. 201. Incentive grants for account- cies for the most violent offenders. We grants. ability-based reforms. cannot tell the States they must do In my home state of New Mexico, ju- TITLE III—REFORM OF FEDERAL that, but in this bill, we set up a very venile arrests increased 84 percent from JUVENILE JUSTICE SYSTEM significant grant program, part of 1986 to last year. Sec. 301. Juvenile adjudications considered which goes to States that do certain In 1996, 36,927 juveniles were referred in sentencing. minimal things to improve their sys- to the state juvenile parole and proba- Sec. 302. Access to juvenile records. tem. If they do not, they do not get tion office. Some 39 percent of those re- Sec. 303. Referral of children with disabil- that money. It goes to States that ferred have a history of 10 or more re- ities to juvenile and criminal authorities. choose to modernize their system in ferrals to the system. Sec. 304. Limited disclosure of Federal Bu- accordance with a series of options While the Justice Department has reau of Investigation records. that we have found are clearly nec- said that the overall juvenile crime Sec. 305. Amendments to Federal Juvenile essary today. rate in the United States dropped last Delinquency Act. This approach is going to help States year, states like New Mexico continue TITLE IV—GENERAL PROVISIONS fight crime as well as prevent juveniles to see yearly increases in the number Sec. 401. Authorization of appropriations. from entering the juvenile justice sys- of juveniles arrested, prosecuted and SEC. 2. SEVERABILITY. tem in the first place. It makes impor- incarcerated. If any provision of this Act, an amendment tant fundamental changes to the Fed- I mention these numbers because made by this Act, or the application of such eral juvenile justice system, and I am they have led to a growing problem in provision or amendment to any person or

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00086 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY May 8, 1997 CONGRESSIONAL RECORD — SENATE S4219 circumstance is held to be unconstitutional, ‘‘(13) studies indicate that good parenting (2) in paragraph (22)(iii), by striking ‘‘and’’ the remainder of this Act, the amendments skills, including normative development, at the end; made by this Act, and the application of the monitoring, and discipline, clearly affect (3) in paragraph (23), by striking the period provisions of such to any person or cir- whether children will become delinquent, at the end and inserting a semicolon; and cumstance shall not be affected thereby. and adequate supervision of free-time activi- (4) by adding at the end the following: TITLE I—REFORM OF EXISTING ties, whereabouts, and peer interaction is ‘‘(24) the term ‘serious violent crime’ PROGRAMS critical to ensure that children do not drift means— SEC. 101. FINDINGS AND PURPOSES. into delinquency; ‘‘(A) murder or nonnegligent man- (a) FINDINGS.—Section 101 of the Juvenile ‘‘(14) school officials lack the information slaughter, or robbery; Justice and Delinquency Prevention Act of necessary to ensure that school environ- ‘‘(B) aggravated assault committed with 1974 (42 U.S.C. 5601) is amended— ments are safe and conducive to learning; the use of a dangerous or deadly weapon, (1) by striking subsection (a) and inserting ‘‘(15) in the 1970’s, less than half of our Na- forcible rape, kidnaping, felony aggravated the following: tion’s cities reported gang activity, while 2 battery, assault with intent to commit a se- ‘‘(a) FINDINGS.—Congress finds that— decades later, a nationwide survey reported a rious violent crime, and vehicular homicide ‘‘(1) the Nation’s juvenile justice system is total of 23,388 gangs and 664,906 gang mem- committed while under the influence of an in trouble, including dangerously over- bers on the streets of United States cities in intoxicating liquor or controlled substance; crowded facilities, overworked field staff, 1995; or and a growing number of children who are ‘‘(16) the high incidence of delinquency in ‘‘(C) a serious drug offense; breaking the law; the United States results in an enormous an- ‘‘(25) the term ‘serious drug offense’ means ‘‘(2) a redesigned juvenile corrections pro- nual cost and an immeasurable loss of an act or acts which, if committed by an gram for the next century should be based on human life, personal security, and wasted adult subject to Federal criminal jurisdic- 4 principles, including— human resources; and tion, would be punishable under section ‘‘(A) protecting the community; ‘‘(17) juvenile delinquency constitutes a 401(b)(1)(A) or 408 of the Controlled Sub- ‘‘(B) accountability for offenders and their growing threat to the national welfare, re- stances Act (21 U.S.C. 841(b)(1)(A), 848) or sec- families; quiring immediate and comprehensive action tion 1010(b)(1)(A) of the Controlled Sub- ‘‘(C) restitution for victims and the com- by the Federal Government to reduce and stances Import and Export Act (21 U.S.C. munity; and eliminate the threat.’’; and 960(b)(1)(A)); and ‘‘(D) community-based prevention; (2) in subsection (b)— ‘‘(26) the term ‘serious habitual offender’ ‘‘(3) existing programs have not adequately (A) by striking ‘‘further’’; and means a juvenile who— responded to the particular problems of juve- (B) by striking ‘‘Federal Government’’ and ‘‘(A) has been adjudicated delinquent and nile delinquents in the 1990’s; inserting ‘‘Federal, State, and local govern- subsequently arrested for a capital offense, ‘‘(4) State and local communities, which ments’’. life offense, first degree aggravated sexual experience directly the devastating failure of (b) PURPOSES.—Section 102 of the Juvenile offense, or serious drug offense; the juvenile justice system, do not have suf- Justice and Delinquency Prevention Act of ‘‘(B) has had not fewer than 5 arrests, with ficient resources to deal comprehensively 1974 (42 U.S.C. 5602) is amended to read as fol- 3 arrests chargeable as felonies if committed with the problems of juvenile crime and de- lows: by an adult and not fewer than 3 arrests oc- linquency; ‘‘SEC. 102. PURPOSES. curring within the most recent 12-month pe- ‘‘(5) limited State and local resources are ‘‘The purposes of this title and title II riod; being unnecessarily wasted complying with are— ‘‘(C) has had not fewer than 10 arrests, with overly technical Federal requirements for ‘‘(1) to assist State and local governments 2 arrests chargeable as felonies if committed ‘sight and sound’ separation currently in ef- in promoting public safety by supporting ju- by an adult and not fewer than 3 arrests oc- fect under the 1974 Act, while prohibiting the venile delinquency prevention and control curring within the most recent 12-month pe- commingling of adults and juvenile popu- activities; riod; or lations would achieve this important purpose ‘‘(2) to give greater flexibility to schools to ‘‘(D) has had not fewer than 10 arrests, without imposing an undue burden on State design academic programs and educational with 8 or more arrests for misdemeanor and local governments; services for juvenile delinquents expelled or crimes involving theft, assault, battery, nar- ‘‘(6) limited State and local resources are suspended for disciplinary reasons; cotics possession or distribution, or posses- being unnecessarily wasted complying with ‘‘(3) to assist State and local governments sion of weapons, and not fewer than 3 arrests the overly restrictive Federal mandate that in promoting public safety by encouraging occurring within the most recent 12-month no juveniles be detained or confined in any accountability through the imposition of period.’’. jail or lockup for adults, which mandate is meaningful sanctions for acts of juvenile de- SEC. 103. OFFICE OF JUVENILE JUSTICE AND DE- particularly burdensome for rural commu- linquency; LINQUENCY PREVENTION. nities; ‘‘(4) to assist State and local governments Section 204 of the Juvenile Justice and De- ‘‘(7) the juvenile justice system should give linquency Prevention Act of 1974 (42 U.S.C. additional attention to the problem of juve- in promoting public safety by improving the 5614) is amended— niles who commit serious crimes, with par- extent, accuracy, availability, and useful- (1) in subsection (a)(1)— ticular attention given to the area of sen- ness of juvenile court and law enforcement (A) by striking ‘‘shall develop’’ and insert- tencing; records and the openness of the juvenile jus- ing the following: ‘‘shall— ‘‘(8) local school districts lack information tice system to the public; ‘‘(A) develop’’; necessary to track serious violent juvenile ‘‘(5) to assist teachers and school officials (B) by inserting ‘‘punishment,’’ before ‘‘di- offenders, information that is essential to in ensuring school safety by improving their version’’; and promoting safety in public schools; access to information concerning juvenile of- ‘‘(9) the term ‘prevention’ should mean fenders attending or intending to enroll in (C) in the first sentence, by striking both ensuring that families have a greater their schools or school-related activities; ‘‘States’’ and all that follows through the chance to raise their children so that those ‘‘(6) to assist State and local governments end of the paragraph and inserting the fol- children do not engage in criminal or delin- in promoting public safety by encouraging lowing: ‘‘States; and quent activities, and preventing children the identification of violent and hardcore ju- ‘‘(B) annually submit the plan required by who have engaged in such activities from be- veniles and in transferring such juveniles out subparagraph (A) to the Congress.’’; coming permanently entrenched in the juve- of the jurisdiction of the juvenile justice sys- (2) in subsection (b)— nile justice system; tem and into the jurisdiction of adult crimi- (A) in paragraph (1), by adding ‘‘and’’ at ‘‘(10) in 1994, there were more than 330,000 nal court; the end; and juvenile arrests for violent crimes, and be- ‘‘(7) to provide for the evaluation of feder- (B) by striking paragraphs (2) through (7) tween 1985 and 1994, the number of juvenile ally assisted juvenile crime control pro- and inserting the following: criminal homicide cases increased by 144 per- grams, and training necessary for the estab- ‘‘(2) reduce duplication among Federal ju- cent, and the number of juvenile weapons lishment and operation of such programs; venile delinquency programs and activities cases increased by 156 percent; ‘‘(8) to ensure the dissemination of infor- conducted by Federal departments and agen- ‘‘(11) in 1994, males age 14 through 24 con- mation regarding juvenile crime control pro- cies.’’; stituted only 8 percent of the population, but grams by providing a national clearinghouse; (3) by redesignating subsection (h) as sub- accounted for more than 25 percent of all and section (f); and homicide victims and nearly half of all con- ‘‘(9) to provide technical assistance to pub- (4) by striking subsection (i). victed murderers; lic and private nonprofit juvenile justice and SEC. 104. ANNUAL REPORT. ‘‘(12) in a survey of 250 judges, 93 percent of delinquency prevention programs.’’. Section 207 of the Juvenile Justice and De- those judges stated that juvenile offenders SEC. 102. DEFINITIONS. linquency Prevention Act of 1974 (42 U.S.C. should be fingerprinted, 85 percent stated Section 103 of the Juvenile Justice and De- 5617) is amended to read as follows: that juvenile criminal records should be linquency Prevention Act of 1974 (42 U.S.C. ‘‘SEC. 207. ANNUAL REPORT. made available to adult authorities, and 40 5603) is amended— ‘‘Not later than 180 days after the end of a percent stated that the minimum age for fac- (1) in paragraph (3), by inserting ‘‘punish- fiscal year, the Administrator shall submit ing murder charges should be 14 or 15; ment,’’ after ‘‘control,’’; to the President, the Speaker of the House of

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00087 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S4220 CONGRESSIONAL RECORD — SENATE May 8, 1997 Representatives, the President pro tempore ‘‘(C) improving the content, accuracy, same regulations as other contractors to ac- of the Senate, and the Governor of each availability, and usefulness of juvenile court count in accord with generally accepted ac- State, a report that contains the following and law enforcement records (including fin- counting principles for the use of such funds with respect to such fiscal year: gerprints and photographs); and provided under such programs. ‘‘(1) SUMMARY AND ANALYSIS.—A detailed ‘‘(D) education programs such as funding ‘‘(ii) If such organization segregates Fed- summary and analysis of the most recent for extended hours for libraries and rec- eral funds provided under such programs into data available regarding the number of juve- reational programs which benefit all juve- separate accounts, then only the financial niles taken into custody, the rate at which niles’’; and assistance provided with such funds shall be juveniles are taken into custody, the number (D) by adding at the end the following: subject to audit. of repeat juvenile offenders, the number of ‘‘(2)(A) State and local governments re- ‘‘(H) Any party that seeks to enforce its juveniles using weapons, the number of juve- ceiving grants under paragraph (1) may con- rights under this section may assert a civil nile and adult victims of juvenile crime and tract with religious organizations or allow action for injunctive relief exclusively in an the trends demonstrated by the data re- religious organizations to accept grants appropriate Federal district court against quired by subparagraphs (A), (B), and (C). under any program described in this title, on the official or government agency that alleg- Such summary and analysis shall set out the the same basis as any other nongovern- edly commits such violation. ‘‘(I) No State or local government may use information required by subparagraphs (A), mental provider without impairing the reli- funds provided under this title to fund sec- (B), (C), and (D) separately for juvenile non- gious character of such organizations, and tarian worship, proselytization, or prayer, or offenders, juvenile status offenders, and without diminishing the religious freedom of for any purpose other than the provision of other juvenile offenders. Such summary and beneficiaries of assistance funded under such social services under this title.’’; and analysis shall separately address with re- program. (2) in subsection (b), by striking paragraph spect to each category of juveniles specified ‘‘(B) A State or local government exer- (1) and inserting the following: in the preceding sentence— cising its authority to contract with private ‘‘(A) the types of offenses with which the ‘‘(1) Of amounts made available to carry agencies or to allow private agencies to ac- out this part in any fiscal year, $10,000,000 or juveniles are charged, data on serious violent cept grants under paragraph (1) shall ensure crimes committed by juveniles, and data on 1 percent (whichever is greater) may be used that religious organizations are eligible, on by the Administrator— serious habitual offenders; the same basis as any other private organiza- ‘‘(B) the race and gender of the juveniles ‘‘(A) to establish and maintain a clearing- tion, as contractors to provide assistance, or house to disseminate to the States informa- and their victims; to accept grants under any program de- ‘‘(C) the ages of the juveniles and their vic- tion on juvenile delinquency prevention, scribed in this title so long as the programs treatment, and control; and tims; are implemented consistent with the Estab- ‘‘(D) the types of facilities used to hold the ‘‘(B) to provide training and technical as- lishment Clause of the United States Con- sistance to States to improve the adminis- juveniles (including juveniles treated as stitution. Neither the Federal Government adults for purposes of prosecution) in cus- tration of the juvenile justice system.’’. nor a State or local government receiving tody, including secure detention facilities, (b) SECTION 223.—Section 223(a)(10) of the funds under such programs shall discrimi- secure correctional facilities, jails, and lock- Juvenile Justice and Delinquency Preven- nate against an organization which is or ap- ups; tion Act of 1974 (42 U.S.C. 5633(a)(10)) is plies to be a contractor to provide assist- ‘‘(E) the number of juveniles who died amended— ance, or which accepts grants, on the basis while in custody and the circumstances (1) by striking ‘‘or through’’ and inserting that the organization has a religious char- under which they died; ‘‘through’’; and acter. ‘‘(F) the educational status of juveniles, in- (2) by inserting ‘‘or through grants and ‘‘(C)(i) A religious organization that par- cluding information relating to learning dis- contracts with religious organizations in ac- ticipates in a program authorized by this abilities, failing performance, grade reten- cordance with section 221(b)(2)(B)’’ after tion, and dropping out of school; title shall retain its independence from Fed- ‘‘agencies,’’. ‘‘(G) the number of juveniles who are sub- eral, State, and local governments, including SEC. 106. STATE PLANS. stance abusers; and such organization’s control over the defini- Section 223 of the Juvenile Justice and De- ‘‘(H) information on juveniles fathering or tion, development, practice, and expression linquency Prevention Act of 1974 (42 U.S.C. giving birth to children out of wedlock, and of its religious beliefs. 5633) is amended— whether such juveniles have assumed finan- ‘‘(ii) Neither the Federal Government nor a (1) in subsection (a)— cial responsibility for their children. State or local government shall require a re- (A) by striking the second sentence; ligious organization— ‘‘(2) ACTIVITIES FUNDED.—A description of (B) by striking paragraph (3) and inserting the activities for which funds are expended ‘‘(I) to alter its form of internal govern- the following: under this part. ance; or ‘‘(3) provide for an advisory group, which— ‘‘(II) to remove religious art, icons, scrip- ‘‘(3) STATE COMPLIANCE.—A description ‘‘(A) shall— based on the most recent data available of ture, or other symbols, ‘‘(i)(I) consist of such number of members the extent to which each State complies in order to be eligible to contract to provide deemed necessary to carry out the respon- with section 223 and with the plan submitted assistance, or to accept grants funded under sibilities of the group and appointed by the under that section by the State for that fis- a program described in this title. chief executive officer of the State; and cal year. ‘‘(D) A religious organization’s exemption ‘‘(II) consist of a majority of members (in- ‘‘(4) SUMMARY AND EXPLANATION.—A sum- provided under section 702 of the Civil Rights cluding the chairperson) who are not full- mary of each program or activity for which Act of 1964 (42 U.S.C. 2000e–1a) regarding em- time employees of the Federal Government, assistance is provided under part C or D, an ployment practices shall not be affected by or a State or local government; evaluation of the results of such program or its participation in, or receipt of funds from, ‘‘(ii) include members who have training, activity, and a determination of the feasi- programs described in this title. experience, or special knowledge con- bility and advisability of replacing such pro- ‘‘(E) If a juvenile has an objection to the cerning— gram or activity in other locations. religious character of the organization or in- ‘‘(I) the prevention and treatment of juve- ‘‘(5) EXEMPLARY PROGRAMS AND PRAC- stitution from which the juvenile receives, nile delinquency; TICES.—A description of selected exemplary or would receive, assistance funded under ‘‘(II) the administration of juvenile justice, delinquency prevention programs and ac- any program described in this title, the including law enforcement; and countability-based youth violence reduction State in which the juvenile resides shall pro- ‘‘(III) the representation of the interests of practices.’’. vide such juvenile (if otherwise eligible for the victims of violent juvenile crime and SEC. 105. BLOCK GRANTS FOR STATE AND LOCAL such assistance) within a reasonable period their families; and PROGRAMS. of time after the date of such objection with ‘‘(iii) include as members at least 1 locally (a) SECTION 221.—Section 221 of the Juve- assistance from an alternative provider that elected official representing general purpose nile Justice and Delinquency Prevention Act is accessible to the juvenile and the value of local government; of 1974 (42 U.S.C. 5631) is amended— which is not less than the value of assistance ‘‘(B) shall participate in the development (1) in subsection (a)— which the juvenile would have received from and review of the State’s juvenile justice (A) by inserting ‘‘(1)’’ before ‘‘The Admin- such organization. plan prior to submission to the supervisory istrator’’; ‘‘(F) Except as otherwise provided in law, a board for final action; (B) by inserting ‘‘, including charitable and religious organization shall not discriminate ‘‘(C) shall be afforded an opportunity to re- religious organizations,’’ after ‘‘and private against an individual in regard to rendering view and comment, not later than 30 days agencies’’; assistance funded under any program de- after the submission to the advisory group, (C) by inserting before the period at the scribed in this title on the basis of religion, on all juvenile justice and delinquency pre- end the following: ‘‘, including— a religious belief, or refusal to actively par- vention grants submitted to the State agen- ‘‘(A) initiatives for holding juveniles ac- ticipate in a religious practice. cy designated under paragraph (1); countable for any act for which they are ad- ‘‘(G)(i) Except as provided in clause (ii), ‘‘(D) shall, consistent with this title— judicated delinquent; any religious organization contracting to ‘‘(i) advise the State agency designated ‘‘(B) increasing public awareness of juve- provide assistance funded under any program under paragraph (1) and its supervisory nile proceedings; described in this title shall be subject to the board; and

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‘‘(ii) submit to the chief executive officer fect (or will have in effect not later than 1 ‘‘(5) ZERO TOLERANCE FOR DEADBEAT JUVE- and the legislature of the State not less fre- year after the date on which the State sub- NILE PARENTS.—A requirement as conditions quently than annually recommendations re- mits such application) laws, or has imple- of parole that— garding State compliance with this sub- mented (or will implement not later than 1 ‘‘(A) any juvenile offender who is a parent section; and year after the date on which the State sub- demonstrates parental responsibility by ‘‘(E) may, consistent with this title— mits such application)— working and paying child support; and ‘‘(i) advise on State supervisory board and ‘‘(1) policies and programs that ensure that ‘‘(B) the juvenile attends and successfully local criminal justice advisory board com- all juveniles who commit an act after attain- completes school or pursues vocational position; ing 14 years of age that would be a serious training. ‘‘(ii) review progress and accomplishments violent crime if committed by an adult are ‘‘(6) SERIOUS HABITUAL OFFENDERS COM- treated as adults for purposes of prosecution, of projects funded under the State plan; and PREHENSIVE ACTION PROGRAM (SHOCAP).— unless on a case-by-case basis, as a matter of ‘‘(iii) contact and seek regular input from ‘‘(A) IN GENERAL.—Implementation of a se- juveniles currently under the jurisdiction of law or prosecutorial discretion, the transfer rious habitual offender comprehensive action of such juveniles for disposition in the juve- the juvenile justice system;’’; program which is a multidisciplinary inter- nile system is determined to be in the inter- (C) in paragraph (10)— agency case management and information est of justice, except that the age of the ju- (i) in subparagraph (N), by striking ‘‘and’’ sharing system that enables the juvenile and venile alone shall not be determinative of at the end; criminal justice system, schools, and social whether such transfer is in the interest of (ii) in subparagraph (O), by striking the pe- service agencies to make more informed de- justice; riod at the end and inserting ‘‘; and’’; and cisions regarding early identification, con- ‘‘(2) graduated sanctions for juvenile of- (iii) by adding at the end the following: trol, supervision, and treatment of juveniles fenders, ensuring a sanction for every delin- ‘‘(P) programs implementing the practices who repeatedly commit serious delinquent or described in paragraphs (6) through (12) and quent or criminal act, ensuring that the criminal acts. (17) and (18) of section 242(b);’’; sanction is of increasing severity based on ‘‘(B) MULTIDISCIPLINARY AGENCIES.—Estab- (D) by striking paragraph (13) and insert- the nature of the act, and escalating the lishment by units of local government in the ing the following: sanction with each subsequent delinquent or State under a program referred to in sub- ‘‘(13) provide assurances that, in each se- criminal act; and paragraph (A), of a multidisciplinary agency cure facility located in the State (including ‘‘(3) a system of records relating to any ad- comprised of representatives from— any jail or lockup for adults), there is no judication of juveniles less than 15 years of ‘‘(i) law enforcement organizations; commingling in the same cell or community age who are adjudicated delinquent for con- ‘‘(ii) school districts; room of, or any other regular, sustained, duct that if committed by an adult would ‘‘(iii) State’s attorneys offices; physical contact between— constitute a serious violent crime, which ‘‘(iv) court services; ‘‘(A) any juvenile detained or confined for records are— any period of time in that facility; and ‘‘(A) equivalent to the records that would ‘‘(v) State and county children and family ‘‘(B) any adult offender detained or con- be kept of adults arrested for such conduct, services; and fined for any period of time in that facil- including fingerprints and photographs; ‘‘(vi) any additional organizations, groups, ity.’’; ‘‘(B) submitted to the Federal Bureau of or agencies deemed appropriate to accom- (E) by striking paragraphs (8), (9), (12), (14), Investigation in the same manner in which plish the purposes described in subparagraph (15), (17), (18), (19), (24), and (25); adult records are submitted; (A), including— (F) by redesignating paragraphs (10), (11), ‘‘(C) retained for a period of time that is ‘‘(I) juvenile detention centers; (13), (16), (20), (21), (22), and (23) as paragraphs equal to the period of time that records are ‘‘(II) mental and medical health agencies; (8) through (15), respectively; retained for adults; and and (G) in paragraph (14), as redesignated, by ‘‘(D) available to law enforcement agen- ‘‘(III) the community at large. adding ‘‘and’’ at the end; and cies, prosecutors, the courts, and school offi- ‘‘(C) IDENTIFICATION OF SERIOUS HABITUAL (H) in paragraph (15), as redesignated, by cials. OFFENDERS.—Each multidisciplinary agency striking the semicolon at the end and insert- ‘‘(b) STANDARDS FOR HANDLING AND DIS- established under subparagraph (B) shall ing a period; and CLOSING INFORMATION.—School officials re- adopt, by a majority of its members, criteria (2) by striking subsections (c) and (d). ferred to in subsection (a)(3)(D) shall be sub- to identify individuals who are serious habit- SEC. 107. REPEALS. ject to the same standards and penalties to ual offenders. The Juvenile Justice and Delinquency Pre- which law enforcement and juvenile justice ‘‘(D) INTERAGENCY INFORMATION SHARING system employees are subject under Federal vention Act of 1974 (42 U.S.C. 5601 et seq.) is AGREEMENT.— and State law for handling and disclosing in- amended— ‘‘(i) IN GENERAL.—Each multidisciplinary formation referred to in that paragraph. (1) in title II— agency established under subparagraph (B) ‘‘(c) ADDITIONAL AMOUNT BASED ON AC- (A) by striking parts C, E, F, G, and H; shall adopt, by a majority of its members, an COUNTABILITY-BASED YOUTH VIOLENCE REDUC- interagency information sharing agreement (B) by striking part I, as added by section TION PRACTICES.—A State that receives a 2(i)(1)(C) of Public Law 102–586; and to be signed by the chief executive officer of grant under subsection (a) is eligible to re- each organization and agency represented in (C) by amending the heading of part I, as ceive an additional amount of funds added to the multidisciplinary agency. redesignated by section 2(i)(1)(A) of Public such grant if such State demonstrates that ‘‘(ii) DISCLOSURE OF INFORMATION.—The Law 102–586, to read as follows: the State has in effect, or will have in effect, interagency information sharing agreement ‘‘PART E—GENERAL AND ADMINISTRATIVE not later than 1 year after the deadline es- shall require that— PROVISIONS’’; and tablished by the Administrator for the sub- mission of applications under subsection (a) ‘‘(I) all records pertaining to serious habit- (2) by striking title V, as added by section ual offenders shall be kept confidential to 5(a) of Public Law 102–586. for the fiscal year at issue, not fewer than 5 of the following practices: the extent required by State law; TITLE II—INCENTIVE GRANTS FOR ‘‘(1) VICTIMS’ RIGHTS.—Increased victims’ ‘‘(II) information in the records may be ACCOUNTABILITY-BASED REFORMS rights, including— made available to other staff from member SEC. 201. INCENTIVE GRANTS FOR ACCOUNT- ‘‘(A) the right to be treated with fairness organizations and agencies as authorized by ABILITY-BASED REFORMS. and with respect for the dignity and privacy the multidisciplinary agency for the pur- Title II of the Juvenile Justice and Delin- of the victim; poses of promoting case management, com- quency Prevention Act of 1974 (42 U.S.C. 5611 ‘‘(B) the right to be reasonably protected munity supervision, conduct control, and et seq.) is amended by inserting after part B from the accused offender; tracking of the serious habitual offender for the following: ‘‘(C) the right to be notified of court pro- the application and coordination of appro- ‘‘PART C—INCENTIVE GRANTS FOR ceedings; and priate services; and ACCOUNTABILITY-BASED REFORMS ‘‘(D) the right to information about the ‘‘(III) access to the information in the ‘‘SEC. 241. AUTHORIZATION OF GRANTS. conviction, sentencing, imprisonment, and records shall be limited to individuals who ‘‘The Administrator shall provide juvenile release of the offender. provide direct services to the serious habit- delinquent accountability grants under sec- ‘‘(2) RESTITUTION.—Mandatory victim and ual offender or who provide community con- tion 242 to eligible States to carry out this community restitution, including statewide duct control and supervision to the serious title. programs to reach restitution collection lev- habitual offender. ‘‘SEC. 242. ACCOUNTABILITY-BASED INCENTIVE els of not less than 80 percent. ‘‘(7) COMMUNITY-WIDE PARTNERSHIPS.—Com- GRANTS. ‘‘(3) ACCESS TO PROCEEDINGS.—Public ac- munity-wide partnerships involving county, ‘‘(a) ELIGIBILITY FOR GRANT.—To be eligible cess to juvenile court delinquency pro- municipal government, school districts, ap- to receive a grant under section 241, a State ceedings. propriate State agencies, and nonprofit orga- shall submit to the Administrator an appli- ‘‘(4) PARENTAL RESPONSIBILITY.—Juvenile nizations to administer a unified approach to cation at such time, in such form, and con- nighttime curfews and parental civil liabil- juvenile delinquency. taining such assurances and information as ity for serious acts committed by juveniles ‘‘(8) ZERO TOLERANCE FOR TRUANCY.—Imple- the Administrator may require by rule, in- released to the custody of their parents by mentation by school districts of programs to cluding assurances that the State has in ef- the court. curb truancy and implement certain and

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00089 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S4222 CONGRESSIONAL RECORD — SENATE May 8, 1997 swift punishments for truancy, including pa- structed to enroll, and that such officials are ‘‘SEC. 245. LIMITATION ON USE OF FUNDS. rental notification of every absence, manda- held liable to the same standards and pen- ‘‘(a) NONSUPPLANTING REQUIREMENT.— tory Saturday school makeup sessions for alties that law enforcement and juvenile jus- Funds made available under section 241 shall truants or weekends in jail for truants and tice system employees are held liable to, for not be used to supplant State funds, but denial of participation or attendance at ex- handling and disclosing such information. shall be used to increase the amount of funds tracurricular activities by truants. ‘‘(19) EVALUATION.—Establishment of a that would, in the absence of Federal funds, ‘‘(9) ALTERNATIVE SCHOOLING.—A require- comprehensive process for monitoring and be made available from State sources. ment that, as a condition of receiving any evaluating the effectiveness of State juvenile ‘‘(b) ADMINISTRATIVE AND RELATED State funding provided to school districts in justice and delinquency prevention programs COSTS.—Not more than 2 percent of the funds accordance with a formula allocation based in reducing juvenile crime and recidivism. appropriated under section 299(a) for a fiscal on the number of children enrolled in school ‘‘(20) BOOT CAMPS.—Establishment of State year shall be available to the Administrator in the school district, each school district boot camps with an intensive restitution or for such fiscal year for purposes of— shall establish one or more alternative work and community service requirement as ‘‘(1) research and evaluation, including as- schools or classrooms for juvenile offenders part of a system of graduated sanctions. sessment of the effect on public safety and or juveniles who are expelled or suspended ‘‘SEC. 243. GRANT AMOUNTS. other effects of the expansion of correctional for disciplinary reasons and shall require ‘‘(a) ALLOCATION AND DISTRIBUTION OF capacity and sentencing reforms imple- that such juveniles attend the alternative FUNDS.— mented pursuant to this part; and schools or classrooms. Any juvenile who re- ‘‘(1) ELIGIBILITY.—Of the total amount ‘‘(2) technical assistance relating to the fuses to attend such alternative school or made available to carry out Part C of this use of grants made under section 241, and de- classroom shall be immediately detained title for each fiscal year, subject to sub- velopment and implementation of policies, pending a hearing. If a student is transferred section (b), each State shall be eligible to re- programs, and practices described in section from a regular school to an alternative ceive the sum of— 242. school for juvenile offenders or juveniles who ‘‘(A) an amount that bears the same rela- ‘‘(c) CARRYOVER OF APPROPRIATIONS.— are expelled or suspended for disciplinary tion to one-third of such total as the number Funds appropriated under section 299(a) shall reasons such State funding shall also be of juveniles in the State bears to the number remain available until expended. transferred to the alternative school. of juveniles in all States; ‘‘(d) MATCHING FUNDS.—The Federal share ‘‘(10) JUDICIAL JURISDICTION.—A system ‘‘(B) an amount that bears the same rela- of a grant received under this part may not under which municipal and magistrate tion to one-third of such total as the number exceed 90 percent of the costs of a proposal, courts have— of juveniles from families with incomes ‘‘(A) jurisdiction over minor delinquency as described in an application approved below the poverty line in the State bears to offenses such as truancy, curfew violations, under this part.’’. the number of such juveniles in all States; and vandalism; and TITLE III—REFORM OF FEDERAL and ‘‘(B) short term detention authority for ha- JUVENILE JUSTICE SYSTEM ‘‘(C) an amount that bears the same rela- bitual minor delinquent behavior. tion to one-third of such total as the average SEC. 301. JUVENILE ADJUDICATIONS CONSID- ‘‘(11) ELIMINATION OF CERTAIN INEFFECTIVE annual number of part 1 violent crimes re- ERED IN SENTENCING. PENALTIES.—Elimination of ‘counsel and re- ported by the State to the Federal Bureau of Pursuant to section 994 of title 28, United lease’ or ‘refer and release’ as a penalty for States Code, the United States Sentencing juveniles with respect to the second or subse- Investigation for the 3 most recent calendar years for which such data are available, Commission shall promulgate guidelines or quent offense for which the juvenile is re- amend existing guidelines to provide that of- ferred to a juvenile probation officer. bears to the number of part 1 violent crimes reported by all States to the Federal Bureau fenses contained in the juvenile record of an ‘‘(12) REPORT BACK ORDERS.—A system of adult defendant shall be considered as adult ‘report back’ orders when juveniles are of Investigation for such years. ‘‘(2) MINIMUM REQUIREMENT.—Each State offenses in sentencing determinations if such placed on probation, so that after a period of juvenile offenses would have constituted a time (not to exceed 2 months) the juvenile shall be eligible to receive not less than 3.5 percent of one-third of the total amount ap- felony had they been committed by the de- appears before and advises the judge of the fendant as an adult. progress of the juvenile in meeting certain propriated to carry out Part C for each fiscal goals. year, except that the amount for which the SEC. 302. ACCESS TO JUVENILE RECORDS. ‘‘(13) PENALTIES FOR USE OF FIREARM.— Virgin Islands of the United States, Guam, Section 5038(a) of title 18, United States Mandatory penalties for the use of a firearm American Samoa, and the Commonwealth of Code, is amended— during a violent crime or a drug felony. the Northern Mariana Islands is eligible (1) in paragraph (5), by striking ‘‘and’’ at ‘‘(14) STREET GANGS.—A prohibition on en- shall be not less than $100,000 and the the end; gaging in criminal conduct as a member of a amount for which Palau is eligible shall be (2) in paragraph (6), by striking the period street gang and imposition of severe pen- not less than $15,000. and inserting ‘‘; and’’; and alties for terrorism by criminal street gangs. ‘‘(3) UNAVAILABILITY OF INFORMATION.—For (3) by adding at the end the following: ‘‘(15) CHARACTER COUNTS.—Establishment purposes of this subsection, if data regarding ‘‘(7) inquiries from officials of a school, of character education and training for juve- the measures governing allocation of funds school district, or any postsecondary school nile offenders. under paragraphs (1) and (2) in any State are where the individual who is the subject of ‘‘(16) MENTORING.—Establishment of men- unavailable or substantially inaccurate, the the juvenile record seeks, intends, or is in- toring programs for at-risk youth. Administrator and the State shall utilize the structed or ordered to enroll.’’. ‘‘(17) DRUG COURTS AND COMMUNITY-ORI- best available comparable data for the pur- SEC. 303. REFERRAL OF CHILDREN WITH DIS- ENTED POLICING STRATEGIES.—Establishment poses of allocation of any funds under this ABILITIES TO JUVENILE AND CRIMI- of courts for juveniles charged with drug of- section. NAL AUTHORITIES. fenses and community-oriented policing ‘‘(b) ALLOCATED AMOUNT.—The amount Section 615 of the Individuals with Disabil- strategies. made available to carry out Part C of this ities Education Act (20 U.S.C. 1415) is amend- ‘‘(18) RECORDKEEPING AND title for any fiscal year shall be allocated ed by adding at the end the following: FINGERPRINTING.—Programs that provide among the States as follows: ‘‘(g) REFERRALS TO JUVENILE AND CRIMINAL that, whenever a juvenile who has not ‘‘(1) 50 percent of the amount for which a AUTHORITIES.— achieved his or her 14th birthday is adju- State is eligible under subsection (a) shall be ‘‘(1) REPORTING.—Nothing in this part shall dicated delinquent (as defined by Federal or allocated to that State if it meets the re- be construed to prohibit an agency from re- State law in a juvenile delinquency pro- quirements of section 242(a). porting a criminal act committed by a child ceeding) for conduct that, if committed by ‘‘(2) 50 percent of the amount for which a with a disability to the police or a juvenile an adult, would constitute a felony under State is eligible under subsection (a) shall be authority, or to prohibit a State juvenile or Federal or State law, the State shall ensure allocated to that State if it meets the re- judicial authority from exercising the re- that a record is kept relating to the adju- quirements of subsections (a) and (c) of sec- sponsibility of the authority with regard to dication that is— tion 242. the application of a juvenile or criminal law ‘‘(A) equivalent to the record that would be ‘‘(c) AVAILABILITY.—Any amounts made to a criminal activity committed by a child kept of an adult conviction for such an of- available under this section to carry out with a disability. fense; Part C of this title shall remain available ‘‘(2) FILING PETITIONS.—Nothing in this ‘‘(B) retained for a period of time that is until expended.’’. part shall be construed to require a State equal to the period of time that records are ‘‘SEC. 244. ACCOUNTABILITY. educational agency or local educational kept for adult convictions; ‘‘A State that receives a grant under sec- agency to exhaust the due process proce- ‘‘(C) made available to prosecutors, courts, tion 241 shall use accounting, audit, and fis- dures under this section or any other part of and law enforcement agencies of any juris- cal procedures that conform to guidelines this Act prior to filing a petition in a juve- diction upon request; and prescribed by the Administrator, and shall nile or criminal court with regard to a child ‘‘(D) made available to officials of a school, ensure that any funds used to carry out sec- with a disability who commits a criminal act school district, or postsecondary school tion 241 shall represent the best value for the at school or a school-related event under the where the individual who is the subject of State at the lowest possible cost and employ jurisdiction of the State educational agency the juvenile record seeks, intends, or is in- the best available technology. or local educational agency.’’.

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SEC. 304. LIMITED DISCLOSURE OF FEDERAL BU- proceeding for conduct which, if committed SUMMARY OF DOMENICI-ASHCROFT-WYDEN REAU OF INVESTIGATION RECORDS. by an adult, would constitute a felony. ‘‘JUVENILE CRIME CONTROL AND COMMUNITY Section 534(e) of title 28, United States PROTECTION ACT OF 1997’’ Code, is amended— ‘‘(2) The requirements of this paragraph are that— Funding—$500 million authorization for ju- (1) by redesignating paragraph (3) as para- venile justice grants: $200 million for current graph (4); and ‘‘(A) a record shall be kept relating to the adjudication that is— OJJDP state formula grants (increase of $113 (2) by inserting after paragraph (2) the fol- million from $86.5 million in FY 1997); $300 lowing: ‘‘(i) equivalent to the record that would be kept of an adult conviction for such an of- million for new incentive grants. ‘‘(3)(A) The Director of the Federal Bureau To qualify for the first $150 million, states of Investigation, Identification Division, fense; ‘‘(ii) retained for a period of time that is must enact three reforms: (1) mandatory shall provide, upon request, the information adult prosecution for juveniles age 14 and received under paragraph (3) of section 242(a) equal to the period of time that records are kept for adult convictions; over who commit serious violent crimes or of the Juvenile Justice Delinquency and Pre- serious drug felonies; (2) graduated sanc- vention Act of 1974, to officials of a school, ‘‘(iii) made available to law enforcement agencies of any jurisdiction; tions, so that every bad act receives punish- school district, or postsecondary school ment; and (3) adult recordkeeping, including where the individual who is the subject of ‘‘(iv) made available to officials of a school, school district, or postsecondary fingerprints and photographs for juveniles such information seeks, intends, or is in- under age 15 who commit serious violent structed or ordered to enroll. school where the individual who is the sub- ject of the juvenile record seeks, intends, or crimes. ‘‘(B) School officials receiving information To qualify for the next $150 million, states under subparagraph (A) shall be subject to is instructed to enroll; and ‘‘(v) made available, once the juvenile be- must enact 5 of 20 suggested reforms. the same standards and penalties to which They include: law enforcement and juvenile justice system comes an adult or is tried as an adult, to any 1) Increased victims’ rights, including noti- employees are subject under Federal and court having criminal jurisdiction over such fication of release or escape of the offender State law for handling and disclosing infor- an individual for the purpose of allowing who committed a crime against a particular mation referred to in subparagraph (A).’’. such court to consider the individual’s prior victim. SEC. 305. AMENDMENTS TO FEDERAL JUVENILE juvenile history as a relevant factor in deter- 2) Victim and community restitution. DELINQUENCY ACT. mining appropriate punishment for the indi- 3) Public access to juvenile court delin- (a) PROSECUTION OF JUVENILES AS vidual at the sentencing hearing; quency proceedings. ADULTS.—Section 5032 of title 18, United ‘‘(B) officials referred to in clause (iv) of 4) Nighttime curfews and parental respon- States Code, is amended by inserting before subparagraph (A) shall be held liable to the sibility laws, holding parents civilly liable the first undesignated paragraph the fol- same standards and penalties that law en- for the delinquent acts of their children. lowing: forcement and juvenile justice system em- 5) Zero tolerance for deadbeat juvenile par- ‘‘Notwithstanding any other provision of ployees are held liable to under Federal and ents—require as a condition of parole that law, a juvenile defendant 14 years of age or State law for handling and disclosing such juvenile parents pay child support and at- older shall be prosecuted as an adult, and information; tend school or vocational training. this chapter shall not apply, if such juvenile ‘‘(C) the juvenile shall be fingerprinted and 6) SHOCAP—interagency information shar- is charged with an offense that constitutes— photographed, and the fingerprints and pho- ing and monitoring of the most serious juve- ‘‘(A) murder or attempted murder; tograph shall be sent to the Federal Bureau nile offenders across the state. ‘‘(B) robbery while armed with a dangerous of Investigation, Identification Division, and 7) Zero tolerance for truancy—parental no- or deadly weapon; shall otherwise be made available to the tification of every absence, mandatory ‘‘(C) battery or assault while armed with a same extent that fingerprints and photo- make-up sessions, and denial of participation dangerous or deadly weapon; graphs of adults are made available; and in extra-curriculars for habitual truants. ‘‘(D) forcible rape; ‘‘(D) the court in which the adjudication 8) Alternative schools and classrooms for ‘‘(E) any serious drug offense which, if takes place shall transmit to the Federal Bu- expelled or suspended students. committed by an adult, would be punishable reau of Investigation, Identification Divi- 9) Judicial jurisdiction for local mag- under section 401(b)(1)(A) or 408 of the Con- sion, information concerning the adjudica- istrates over minor delinquency offenses and trolled Substances Act (21 U.S.C. 841(b)(1)(A), tion, including the name, date of adjudica- short-term detention authority for habitual 848) or section 1010(b)(1)(A) of the Controlled tion, court, offenses, and disposition, along delinquent behavior. Substances Import and Export Act (21 U.S.C. with a prominent notation that the matter 10) Elimination of ‘counsel and release’ as 960(b)(1)(A)); and concerns a juvenile adjudication. a penalty for second or subsequent offenses. 11) Report-back orders for juveniles on pro- ‘‘(F) the third or subsequent occasion, un- ‘‘(3) If a juvenile has been adjudicated to be related to any previous occasion, on which bation—must appear before the sentencing delinquent on 2 or more separate occasions judge and apprise the judge of the juvenile’s such juvenile engages in conduct for which based on conduct that would be a felony if an adult could be imprisoned for a term ex- progress in meeting certain goals. committed by an adult, the record of the sec- 12) Mandatory penalties for the use of a ceeding 1 year, unless, on a case-by-case ond and all subsequent adjudications shall be basis— firearm during a violent crime. kept and made available to the public to the 13) Anti-gang legislation. ‘‘(i) a court determines that trying such a same extent that a record of an adult convic- 14) Character Counts—character education juvenile as an adult is not in the interest of tion is open to the public.’’. and training. justice, except that the age of the juvenile 15) Mentoring. alone shall not be determinative of whether TITLE IV—GENERAL PROVISIONS 16) Drug courts, special courts or court ses- or not such action is in the interest of jus- sions for juveniles charged with drug of- SEC. 401. AUTHORIZATION OF APPROPRIATIONS. tice; fenses. ‘‘(ii) the court records its reasons for mak- Section 299 of the Juvenile Justice and De- 17) Community-wide partnerships involv- ing such a determination in writing and linquency Prevention Act of 1974 (42 U.S.C. ing all levels of state and local government makes such record available for inspection 5671) is amended by striking subsections (a) to administer a unified approach to juvenile by the public; and through (e) and inserting the following: justice. ‘‘(iii) the court makes a record in writing 18) Adult recordkeeping for juveniles age 14 ‘‘(a) OFFICE OF JUVENILE JUSTICE AND DE- of the disposition of the juvenile in the juve- and under who commit any felony under LINQUENCY PREVENTION.—There are author- nile justice system available to the public, state law. notwithstanding any other law requiring ized to be appropriated for each of fiscal 19) Boot camps, which include an intensive such information to be withheld or limited years 1998, 1999, 2000, 2001, and 2002, such restitution and/or community service com- in any way from access by the public.’’. sums as may be necessary to carry out part ponent. (b) AMENDMENTS CONCERNING RECORDS.— A. 20) Evaluation and monitoring of the effec- Section 5038 of title 18, United States Code, ‘‘(b) BLOCK GRANTS FOR STATE AND LOCAL tiveness of State juvenile justice and delin- is amended— PROGRAMS.—There is authorized to be appro- quency prevention programs reducing crime (1) by striking subsections (d) and (f); priated $200,000,000 for each of fiscal years and recidivism. (2) by redesignating subsection (e) as sub- 1998, 1999, 2000, 2001, and 2002, to carry out Mandates—reforms or eliminates 3 of the section (d); and part B. most burdensome federal mandates found in (3) by adding at the end the following: the 1974 Juvenile Justice and Delinquency ‘‘(c) INCENTIVE GRANTS FOR ACCOUNT- ‘‘(e)(1) The court shall comply with the re- Prevention Act. quirements of paragraph (2) if— ABILITY-BASED REFORMS.—There is author- Modifies mandatory sight and sound sepa- ‘‘(A) a juvenile under 14 years of age has ized to be appropriated $300,000,000 for each ration of juveniles and adults in secure fa- been found guilty of committing an act of fiscal years 1998, 1999, 2000, 2001, and 2002, cilities by prohibiting ‘‘regular, sustained which, if committed by an adult, would be an to carry out part C. physical contact’’ between juveniles and offense described in the first undesignated ‘‘(d) SOURCE OF APPROPRIATIONS.—Funds adults in the same facility. States would pro- paragraph of section 5032; or authorized to be appropriated by this section vide assurances that there will be no com- ‘‘(B) a juvenile, age 14 or older, is adju- may be appropriated from the Violent Crime mingling or regular physical contact be- dicated delinquent in a juvenile delinquency Reduction Trust Fund.’’. tween juveniles and adults in the same cell

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00091 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S4224 CONGRESSIONAL RECORD — SENATE May 8, 1997 or community room. This will reduce costs ico brings to the floor today puts a spe- tims are getting younger. Similarly, for rural communities, which often do not cial focus on trying to deal with of- gang activity is getting worse in our have a separate space to house juveniles fenses perpetrated by young people inner cities, suburbs, and rural commu- which meets the current strict sight and sound requirement. that have not yet risen to that level of nities. A 1995 nationwide survey of law Eliminates two other mandates: (1) prohi- violent crime and, in effect, try to send enforcement agencies reported a total bition on placing juveniles in any adult jail a message to young people that there of 23,388 gangs, and 664,906 gang mem- or lock-up; and (2) prohibition on placing will be consequences. bers in their jurisdiction. In compari- ‘‘status offenders’’ in secure facilities. The last point that I will make, be- son, a 1993 survey showed an estimated FEDERAL REFORMS cause I know time is short and we have 4,881 gangs with 249,324 gang members Adult prosecution. Requires mandatory much to do today, is that this legisla- in the United States. adult prosecution for juveniles age 14 or over tion is particularly important in such The need for juvenile justice reform for serious violent crimes and major drug of- areas as recordkeeping. We have found is clear, especially in light of the fact fenses. Also requires mandatory ‘‘three across the country that it has not even that probation was the sentence hand- strikes’’ adult prosecution for juveniles age 14 and over when a juvenile commits a third been possible to keep tabs on the vio- ed out for 56 percent of the 1992 juve- offense chargeable as a felony. Judge has dis- lent juveniles, because there are so nile court cases in which the juvenile cretion under the ‘‘three strikes’’ provision many gaps in the recordkeeping in the was adjudicated delinquent whether to refuse to prosecute the juvenile as a adult States. Both the Senator from New the offense was a felony or mis- if the ‘‘interests of justice’’ determine that Mexico and the Senator from Missouri demeanor in nature. adult prosecution is inappropriate. have done yeoman work in this regard. Mr. President, this bill takes sub- Adult records. Requires equivalent of an This is a balanced bill; it is a bipar- stantial steps toward addressing the adult record for juveniles under age 14 who commit serious violent crimes and for juve- tisan bill. It moves to update the laws problems of violent juvenile offenders niles over age 14 who commit acts chargeable dealing with juveniles for the 21st cen- and the prevalence of youth gangs. The as felonies. Includes fingerprints and photo- tury. Federal Government would assist State graphs. I thank my friend from New Mexico and local efforts in dealing with the Access to juvenile records. Allows courts and the Senator from Missouri for al- epidemic of juvenile crime by helping to consider juvenile offenses when making lowing me to be part of this bipartisan target the most violent and problem- adult sentencing decisions, if juvenile of- atic offenders. fenses would have been felonies if committed coalition. They included a number of by adults. Gives school officials access to provisions that are important to our Mr. President, the Juvenile Crime federal juvenile records and FBI files, as long State in the drafting that went on in Control and Community Protection as confidentiality is maintained. the last week. I thank the Senator Act of 1997 would provide $1.5 billion IDEA amendment. Overturns court deci- from New Mexico. over 5 years in incentive grants to en- sion prohibiting school officials from unilat- Mr. DOMENICI. Mr. President, I ask courage and assist States in reforming erally reporting to authorities or filing peti- unanimous consent that Senator CAMP- their juvenile justice systems. tions in juvenile or criminal courts with re- States are encouraged to revise their gard to criminal acts at school committed by BELL be added as an original cosponsor. children covered by the IDEA. The PRESIDING OFFICER. Without laws to reflect three much-needed re- forms. First, juveniles age 14 or older Mr. DOMENICI. Mr. President, I objection, it is so ordered. Mr. ASHCROFT. Mr. President, I am who commit serious violent crimes— yield to Senator WYDEN at this time. The PRESIDING OFFICER. The Sen- proud to join with the Senators DOMEN- such as murder, forcible rape, aggra- ator from Oregon. ICI and WYDEN in introducing the Juve- vated assault, or serious drug of- Mr. WYDEN. Mr. President, I thank nile Crime Control and Community fenses—should be tried as the adult the Senator from New Mexico, and Protection Act of 1997 to reform the ju- criminals they are. By making sure want him to know I very much appre- venile justice system in order to pro- that the punishment fits the serious- ciate the chance to join him and Sen- tect the public and hold juvenile of- ness of the crime, this proposal would ator ASHCROFT on this bipartisan bill. fenders accountable for their actions. deter juveniles who currently believe Mr. President, I say to my col- In 1994, juvenile courts handled an es- that the law cannot touch them. leagues, it is very clear that the juve- timated 120,200 drug offense cases, a Second, the States are encouraged to nile justice system today in our coun- jump of 82 percent from 1991. Violent ensure that records of juveniles under try is very much like a revolving door. crime arrests among juveniles in 1995 age 15, who are found to be delinquent A young person can commit a violent was 12 percent higher than the level in regarding serious violent crimes and crime, a series of violent crimes, be ap- 1991 and 67 percent above the level in serious drug offenses, are maintained prehended, visit the juvenile justice 1986. and made available to law enforcement system—and that is really an appro- This year, Mr. President, it seems as agencies, including the Federal Bureau priate characterization—and be back though incidents of juvenile violence of Investigation, prosecutors, adult on the street virtually immediately. In are occurring every day and every- criminal courts, and appropriate school fact, in our newspaper, the Oregonian, where. officials. it was recently reported that a child In Alton, IL, two teens were gunned Finally, the States are encouraged to committed 52 crimes, 32 of which were down—one shot twice in the face and establish graduated sanctions for juve- felonies, before the juvenile justice sys- the other shot once in the back of the nile offenders, ensuring a sanction for tem took action to protect the commu- head when he turned to flee—by a 15- every delinquent or criminal act and nity. year-old of East St. Louis who had that the sanctions increase in severity I felt—and I think this is the focus of driven 30 miles to carry out the shoot- based on the nature of the act. The the legislation that the Senator from ing. sanctions should also escalate with New Mexico, the Senator from Missouri In Dayton, KY, a 15-year-old killed each subsequent delinquent or criminal and I bring to the floor today—that her 5-month-old son. She was given the act, and should include mandatory res- there should be three principles for the maximum sentence—30 days of deten- titution to victims, longer sentences of new juvenile justice system for the 21st tion. confinement, or mandatory participa- century. In Montgomery County, MD, a 14- tion in community service. The first ought to be community pro- year-old girl along with three adults For States that enact such reforms, tection; the second should be account- were arrested for two bank robberies in additional grant funds would be made ability; and the third should be restitu- Silver Spring. available to implement at least 5 of 18 tion. The principle of accountability is In Boston, MA, three schoolgirls— accountability-based practices includ- especially important with young peo- two 14-year-olds and one 15-year-old— ing: record-keeping for juvenile crimi- ple. I even see it with my own small were charged with putting knives to nals age 14 or older who commit of- kids, a 7-year-old and a 13-year-old. If the throat or stomach of classmates fenses equivalent to an adult felony; they act up, there needs to be some and stealing their gold jewelry and increasing victims’ rights concerning consequences. lunch money. information about the conviction, sen- I am particularly pleased that the As these incidents demonstrate, the tencing, imprisonment, and release of legislation the Senator from New Mex- perpetrators of violence and their vic- their juvenile attackers; mandatory

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00092 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY May 8, 1997 CONGRESSIONAL RECORD — SENATE S4225 restitution to victims of juvenile A thorough reform of juvenile justice that of adult felons to law enforcement crimes; public access to juvenile court systems must also include participa- agencies, school officials, and courts proceedings; parental responsibility tion by our charitable and faith-based for sentencing purposes. laws; zero tolerance for deadbeat juve- organizations. Government needs to re- In addition, the bill would clearly ex- nile parents; implementation of a Seri- build civil society by fostering a part- press the intent of Congress with re- ous Habitual Offenders Comprehensive nership with charitable and faith-based gard to special education students who Action Program [SHOCAP]—a com- organizations to promote civic virtues commit criminal acts at school or prehensive and cooperative informa- and individual responsibility. school-related events. Earlier this tion and case management process for Govenrment needs to look beyond its year, the Sixth Circuit Court of Ap- police, prosecutors, schools, probation bureaucratic, one-size-fits-all programs peals, in Morgan v. Chris L., upheld the departments, corrections facilities, and and give assistance to those groups ruling of a district court that the Knox social and community aftercare serv- toiling daily in our communities, often County Tennessee Public School vio- ices; establishment of community-wide publicly unnoticed and virtually lated the procedural requirements of partnerships involving county, munic- unaided by Government. the Individuals with Disabilities Edu- ipal government, school districts, and For example, Teen challenge, which cation Act (IDEA) by in essence filing others to administrator a unified ap- is headquartered in Missouri, receives criminal charges against a student proach to juvenile delinquency; little or no local, State, or Federal gov- with a disability. IDEA provides grants antitruancy initiatives; alternative ernment financial assistance. Teen to states and creates special due proc- schooling for juvenile offenders or ju- Challenge is a nonprofit, faith-based ess procedures for children with dis- veniles who are expelled or suspended organization that works with youth, abilities. from school for disciplinary reasons; adults and families. Teen challenge has In this case, a student diagnosed as tougher penalties for criminal street 16 adolescent programs in several suffering from attention deficit hyper- activity disorder kicked a water pipe gang crimes; and the establishment of states, including Florida, Indiana, and in the school lavatory until it burst—a penalties for juvenile offenders who use New Mexico. a firearm during a violent crime or a Most of the juveniles in the program crime against property—resulting in drug felony. has drug or alcohol problems. A large about $1,000 water damage. The Knox The bill would provide $200 million in number of the adolescents have been County School District filed a petition formula grants, a $130 million increase in juvenile court against the child. The physically or sexually abused. Almost over the FY1997 level for each fiscal disabled student’s father filed for a due all of them had a major problem with year, FY1998 through FY2002. Under process hearing under the IDEA to re- rebelling against authority, according current law, states and localities must view the filing of the petition in juve- to a 1992 survey of Indianapolis Teen comply with several mandates to be el- nile court by the school. The hearing Challenge. Thirteen percent were igible for these funds. For example, officer ordered the school district to court-ordered placements. This same states must currently ensure that (1) seek dismissal of its juvenile court pe- study indicated that 70 percent of the no status offender may be held in se- tition and that decision by the hearing graduates were abstaining from illegal cure detention or confinement; (2) ju- officer was upheld by the Federal Dis- drug use. veniles cannot be held in jails and law trict Court and the Sixth Circuit Court Mr. President, this bill would amend enforcement lockup in which adults of Appeals. the Juvenile Justice and Delinquency may be detained or confined for any pe- The Court of Appeals concluded that Prevention Act to allow states to con- riod of time; and (3) complete sight and under ‘‘IDEA’s procedural safeguards, duct with, or make grants to, private, sound separation of juvenile offenders the school system must adopt its own charitable and faith-based organiza- from adult offenders in secure facili- plan and institute a [multi-discipli- tions to provide programs for at-risk ties. nary] team meeting before initiating a These mandates are costly and bur- and delinquent juveniles. juvenile court petition.’’ The problem densome on state and local law en- Charitable and faith-based organiza- with the circuit court’s holding is that forcement efforts. For example, in Feb- tions have a proven track record of the special due process procedures for ruary of this year, I visited with law transforming shattered lives by ad- disabled students take several months, enforcement and juvenile justice offi- dressing the deeper needs of people, by and sometimes a year, to complete. cials in Kirksville, MO, a rural commu- instilling hope and values which help The practical effect of the ruling is nity in Northeast Missouri, who told change behavior and attitudes. Under that schools, as a matter of law, can- me about a problem that is all too this bill states would be allowed to en- not unilaterally file charges against common for rural communities. A dep- roll these organizations as full-fledged disabled students unless students’ par- uty juvenile officer said that local law participants in caring for and sup- ents consent to such referrals. Schools enforcement officers were able to ap- porting juveniles who are less fortu- must keep a student in school—poten- prehend four Missouri 15-year-olds who nate. tially endangering others—and wait had brutally murdered a Iowa farm The bill also proposes reforms to the until the completion of the due process wife in October of 1994, and were even federal criminal justice system con- procedures required by IDEA. able to secure confessions to the mur- sistent with those it encourages those In addition to Tennessee, other der. However, the Kirksville police states to adopt. The legislation States—such as Georgia, Ohio, Min- could not detain the murderers because strengthens the federal law by requir- nesota, Illinois, Michigan, Rhode Is- the Federal law prohibits juveniles ing the adult prosecution of any juve- land, and New Hampshire—allow indi- from being held in jails in which adults nile age 14 or older who is alleged to viduals, including school officials who may be detained and Kirksville did not have committed murder, attempted witness students committing crimes at have secure detention facilities. murder, robbery while armed with a school, to file petitions in juvenile As a result, the teens had to be de- dangerous or deadly weapon, assault or courts against the students. School of- tained in other Missouri facilities. Two battery while armed with a dangerous ficials should not be required to ex- of the teen had to be transported to weapon, forcible rape or a serious drug haust the IDEA’s significant due proc- Boone County, MO—100 miles from offense. Repeat juvenile offenders ess procedures before filing criminal Kirksville—while the other two teens would also be subject to transfer to juvenile petitions against students had to be taken to Union, MO, more adult court, if they have 2 previous ad- with disabilities. than 200 miles away. judications for offenses that would The ramifications of the sixth cir- The legislation introduced today amount to a felony if committed by an cuit’s ruling have been immediate and would eliminate this absolute jail and adult. troubling for school districts. Citing lockup prohibition. If enacted, the Juvenile criminals found delinquent the ruling of the Chris L holding as au- Kirksvilles of our country would no in U.S. district courts of violent crimes thority, a Knox County, TN chancellor longer have to bear additional costs in would be fingerprinted and photo- recently set aside the juvenile convic- trying to find a completely separate fa- graphed, and then the fingerprints and tion of a high school special education cility in order to detain violent juve- photograph are sent to the FBI to be student—because he is deaf in his right nile offenders. made available to the same extent as ear—who brought a butterfly knife to

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00093 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S4226 CONGRESSIONAL RECORD — SENATE May 8, 1997 school. The chancellor court based its ond tier of incentive grants will help cause of the covert status of their decision on the fact that the school had encourage States to come up with ways work. This bill would help expedite this failed to convene a multidisciplinary to integrate the community into the process by eliminating the literacy re- team before referring the student with juvenile justice process. In particular, quirement in the naturalization proc- a disability to the juvenile court. The the bill promotes consideration for vic- ess. chancellor, when asked about his rul- tims and restitution for all crimes. It Classified studies conducted by the ing, reportedly said, ‘‘There’s a serious will also ensure that this restitution is defense policy think tank RAND have question to whether or not a student collected. The legislation encourages recently been declassified. They show under this IDEA program can be States to look at mentorship programs, the unique and important role that the charged at all.’’ parent accountability, and ways to Hmong people played during the Viet- The bill we are introducing today bring together service providers to nam war. The studies reveal that this would make it clear to the Tennessee form a network of information sharing group, the ‘‘Secret Army,’’ specially chancellor and other courts that stu- to prevent juvenile crime. created by the United States Govern- dents with disabilities who commit One of the key aspects of the ment, played a critical role in the clan- criminal acts on school property are Deschutes County model that is so im- destine military activities in Laos. not shielded from immediate referral pressive is the coordination between Hmong men, women, and children of to juvenile court or law enforcement schools, juvenile justice services, child all ages fought and died alongside U.S. authorities under IDEA’s special due protection services, police, district at- military personnel in units recruited, process procedures. We must restore torneys, judges, and others. Not only organized, trained, funded and paid by the capacity of schools to create secure does this build a broad base of support the U.S. Government. It is estimated environments where all students can for the juvenile justice system, but it that during the United States involve- learn and achieve their highest poten- allows these agencies to identify the ment in Vietnam, 35,000 to 40,000 tial. most at-risk youth early, to see wheth- Hmong veterans and their families’ Mr. President, this bill would assist er efforts to divert them from delin- were killed in conflict. 50,000 to 58,000 State and local governments in in- quency are effective and to concentrate were wounded in conflict and an addi- creasing public safety by holding juve- resources on them. tional 2,500 to 3,000 were declared miss- nile criminals accountable for their se- When I began working on this issue ing. rious and violent crimes, by encour- in 1995, I laid out three principles for a During the Vietnam conflict, Hmong aging accountability through the impo- new juvenile justice system: commu- forces were responsible for risking sition of meaningful sanctions for de- nity protection, accountability, and their lives by crossing enemy lines to linquent acts, and by improving the ex- restitution. We need to keep our rescue downed American pilots. It is tent, accuracy, availability, and useful- streets safe, punish criminals, and estimated that they saved at least 60 ness of juvenile criminal records and make sure victims—including the com- American lives and often lost half their public accessibility to juvenile court munity itself—are repaid. This legisla- troops rescuing one soldier. proceedings. tion will encourage States to develop When the United States withdrew In short, Mr. President, enactment of systems based on these principles and from Southeast Asia, thousands of the Juvenile Crime Control and Com- to add to the the important ingredient Hmong were evacuated by the U.S. munity Protection Act of 1997 would be of community involvement in the juve- Government. However, many were left a significant step in the right direction nile justice system. behind and experienced mass genocide toward addressing America’s juvenile I thank the Senators from Missouri at the hands of Communists. Many fled crime problem. and New Mexico for their bipartisan ef- to neighboring Thailand. During their Mr. WYDEN. Mr. President, last fort to develop juvenile justice legisla- journey, many were murdered before month, I talked about the importance tion that takes a balanced approach to they reached the Thai border. Even of the innovative ‘‘Community Jus- juvenile justice. today, despite official denial by the tice’’ model for juvenile justice being Lao Government, the Communist re- developed in Deschutes County and By Mr. WELLSTONE: gime of Laos continues to persecute Multnomah County, OR. Today, Sen- S. 719. A bill to expedite the natu- and discriminate against the Hmong ators DOMENICI and ASHCROFT and I are ralization of aliens who served with specifically because of their role in the introducing legislation that incor- special guerrilla units in Laos; to the United States secret army. porates many important pieces of this Committee on the Judiciary. Edgar Buell, the senior U.S. CIA offi- Oregon model and also represents an THE HMONG VETERANS’ NATURALIZATION ACT cial who worked with the Hmong secret effort to bring some new, bipartisan OF 1997 army, explained their critical role on thinking to the issue of juvenile jus- ∑ Mr. WELLSTONE. Mr. President, national television: tice. today, I have introduced the Hmong ‘‘Everyone of them (Hmong) that Oregon’s idea is that the juvenile jus- Veterans’ Naturalization Act of 1997. died, that was an American back home tice system should weave the commu- The purpose of this bill is to help ex- that didn’t die, or one that was injured nity into the very fabric of juvenile pedite the naturalization of Hmong that wasn’t injured. Somebody in near- justice. This entails treating the vic- veterans who served and fought along- ly every Hmong family was either tim as a customer of the juvenile jus- side the United States during the fighting or died from fighting. They be- tice system and realizing that when a United States secret war in Laos. This came refugees because we (the United crime is committed the whole commu- legislation acknowledges their service States) encouraged them to fight for nity is the victim. There is a reciprocal and officially recognizes the service of us. I promised myself: ‘‘ ‘Have no fear, obligation in communities—first, to Hmong and other ethnic Lao veterans we will take care of you.’ ’’ give children the values and tools to who sacrificed and loyally fought for It is now time to live up to earlier ensure that youth crime is prevented America and its principles of freedom, promises and take care of this group and second, to look for at-risk children human rights, and democracy. that so valiantly fought alongside and try to form a net of services to This legislation continues the tradi- American forces. We can only make keep these children from getting into tion of recognizing the service of those good on our word by passing this legis- trouble. However, once a young person who came to the aid of the United lation. steps over the line and commits a States in times of war. Current law Currently, many of the 45,000 former crime, part of the reciprocity involves permits aliens or noncitizens who soldiers and their refugee family mem- the youth making the community served honorably in the U.S. military bers living in the United States cannot whole through restitution and commu- forces during wartime to be natural- become citizens because they lack the nity service. ized, regardless of age, period of U.S. sufficient English language skills to I was pleased to work with Senators residence, or physical presence in the pass the naturalization test. The in- DOMENICI and ASHCROFT to include United States. However, expedited nat- tense and protracted war in Laos and some of these Oregon ideas into this uralization does not apply to Hmong the subsequent exodus of the Hmong bill. In particular, I think that the sec- and Lao veterans and their families be- veterans into squalid refugee camps did

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00094 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY May 8, 1997 CONGRESSIONAL RECORD — SENATE S4227 not permit these veterans the oppor- SEC. 2. WAIVER OF ENGLISH LANGUAGE RE- individuals maintain their independ- tunity to attend school and learn QUIREMENT FOR CERTAIN ALIENS WHO SERVED WITH SPECIAL GUER- ence, dignity and quality of life. English. Also, many suffer from inju- RILLA UNITS IN LAOS. Each PACE participant receives a ries that occurred during the war that The requirement of paragraph (1) of section comprehensive care package, including make learning difficult and frus- 312(a) of the Immigration and Nationality all Medicare and Medicaid services, as trating. Act (8 U.S.C. 1423(a)) shall not apply to the naturalization of any person who— well as community-based long-term Because of the welfare and immigra- (1) served with a special guerrilla unit op- care services. Each individual is cared tion reform bill enacted last Congress, erating from a base in Laos in support of the for by an interdisciplinary team con- aging, elderly, illiterate (in English), United States at any time during the period sisting of a primary care physician, semiliterate and wounded soldiers— beginning February 28, 1961, and ending Sep- nurse, social worker, rehabilitation tember 18, 1978, or usually with large families—will suffer therapist, home health worker, and greatly because they are now facing (2) is the spouse or widow of a person de- scribed in paragraph (1). others. Because care providers on the the almost impossible task of imme- SEC. 3. NATURALIZATION THROUGH SERVICE IN PACE team work together, they are diately learning English and finding A SPECIAL GUERRILLA UNIT IN able to successfully accommodate the gainful employment. People like Chanh LAOS. complex medical and social needs of Chantalangsy are faced with an uncer- (a) IN GENERAL.—The first sentence of sub- the elderly person in fragile health. tain future: section (a) and subsection (b) (other than paragraph (3)) of section 329 of the Immigra- What’s more, PACE provides high- Chanh served in the secret army and tion and Nationality Act (8 U.S.C. 1440) shall was seriously wounded in his head, quality care at a lower cost to Medi- apply to an alien who served with a special care and Medicaid, relative to their arm, and legs. After being in the hos- guerrilla unit operating from a base in Laos pital for 7 months, he returned to com- in support of the United States at any time payments in the traditional system. bat, serving in a CIA sponsored unit. during the period beginning February 28, Studies show a 5–15 percent reduction Fleeing Laos, he spent 14 years in a ref- 1961, and ending September 18, 1978, in the in Medicare and Medicaid spending for ugee camp in Thailand. Realizing that same manner as they apply to an alien who individuals in PACE. has served honorably in an active-duty sta- the conditions in his country would not tus in the military forces of the United The potential savings to Medicare improve, Chanh left the refugee camp States during the period of the Vietnam hos- and Medicaid is significant. PACE pro- and came to the United States. He tilities. grams provide services for one of our studied English for 5 years but it be- (b) PROOF.—The Immigration and Natu- most vulnerable, and costly, popu- came evident that mental and physical ralization Service shall verify an alien’s lation: frail, elderly adults who are eli- injuries prevented him from learning service with a guerrilla unit described in gible for Medicare and Medicaid. In subsection (a) through— English. In 1993, he was classified dis- (1) review of refugee processing docu- many cases, these ‘‘dually eligible’’ in- abled and now receives $561 a month in mentation for the alien, dividuals have complex, chronic care SSI benefits. As of August, he could (2) the affidavit of the alien’s superior offi- needs and require ongoing, long-term lose this small benefit. cer, care services. The current structure of (3) original documents, Given the unique role that the vet- (4) two affidavits from person who were Medicare and Medicaid does not en- erans served on behalf of the U.S. na- also serving with such a special guerrilla courage coordination of these services. tional security interests, we should unit and who personally knew of the alien’s The result is fragmented and costly waive the difficult naturalization re- service, or care for our nation’s most vulnerable quirements for this group. We have a (5) other appropriate proof. population. The Service shall liberally construe the pro- responsibility to these people. This re- The PACE Provider Act does not sponsibility was supported by former visions of this subsection to take into ac- count the difficulties inherent in proving alter the criteria for eligibility for CIA Director William Colby when he service in such a guerrilla unit.∑ PACE participation in any way. In- said to a House subcommittee: stead, it makes PACE programs more ‘‘The basic burden (of fighting in By Mr. GRASSLEY (for himself, Mr. available to individuals already eligi- Laos) was born by the Hmong. We cer- INOUYE, and Mr. FRIST): ble for nursing home care, because of tainly encouraged them to fight. We S. 720. A bill to amend titles XVIII their poor health status. PACE is a enabled them to fight in many cases, and XIX of the Social Security Act to preferable, and less costly, alternative. and I think the spirit that they devel- expand and make permanent the avail- Specifically, this Act increases the oped was in part a result of our offering ability of cost-effective, comprehensive number of PACE programs authorized of support and our provision of it.’’ acute and long-term care services to from 15 to 40, with an additional 20 to Mr. President, it is now time to give frail elderly persons through Programs be added each year, and affords regular our support. These people fought for of All-inclusive Care for the Elderly ‘‘provider’’ status to existing sites. our country for 15 years and came to (PACE) under the medicare and med- The PACE Provider Act allows the the United States with an under- icaid programs; to the Committee on success of PACE programs to be rep- standing that they would be cared for. Finance. licated throughout the country. And, One act of Congress, the welfare reform THE PACE PROVIDER ACT OF 1997 with an emphasis on preventative and law, wiped out this understanding and ∑ Mr. GRASSLEY. Mr. President, I am threw the Hmong into a state of de- pleased to introduce today, along with supportive services, PACE services can spair. They neither have the capacity Senator INOUYE, the distinguished Sen- substantially reduce the high-costs as- to care for themselves if benefits are ator from Hawaii, the PACE Provider sociated with emergency room visits terminated, nor the ability to return to Act of 1997. PACE, the Program of All- and extended nursing home stays often their homeland. I implore my col- Inclusive Care for the Elderly, is a needed by the frail elderly in the tradi- leagues to support one more act of Con- unique system of integrated care for tional Medicare and Medicaid pro- gress that would fulfill our pledge and the frail elderly. This Act increases the grams. our obligation. number of PACE sites authorized to My sponsorship of this bill grows out Mr. President, I ask unanimous con- provide comprehensive, community- of my Aging Committee hearing on sent that the text of the bill be printed based services to frail, elderly persons. April 29, Torn Between Two Systems: in the RECORD. As our population ages, we must con- Improving Chronic Care in Medicare tinue to place a high priority on long- There being no objection, the bill was and Medicaid. The plight of the dual term care services. Giving our seniors ordered to be printed in the RECORD, as eligibles is unacceptable. This bill is an alternatives to nursing home care and follows: immediate and positive step in the expanding the choices available, is not right direction. S. 719 only cost effective, but will also im- I ask unanimous consent that the Be it enacted by the Senate and House of Rep- prove the quality of life for older resentatives of the United States of America in Americans. text of the bill be printed in the Congress assembled, PACE programs achieve this goal. RECORD. SECTION 1. SHORT TITLE. PACE enables the frail elderly to re- There being no objection, the bill was This Act may be cited as the ‘‘Hmong Vet- main as healthy as possible, at home in ordered to be printed in the RECORD, as erans’ Naturalization Act of 1997’’. their communities. By doing so, elderly follows:

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00095 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S4228 CONGRESSIONAL RECORD — SENATE May 8, 1997 S. 720 submitted, unless the Secretary determines ‘‘(A) provide to PACE program eligible in- Be it enacted by the Senate and House of Rep- that any of the findings described in sub- dividuals, regardless of source of payment resentatives of the United States of America in paragraph (A), (B), (C) or (D) of paragraph (2) and directly or under contracts with other Congress assembled, of such section are true. entities, at a minimum— SECTION 1. SHORT TITLE. ‘‘(4) PACE PROGRAM AGREEMENT DEFINED.— ‘‘(i) all items and services covered under This Act may be cited as the ‘‘Programs of For purposes of this section, the term ‘PACE this title (for individuals enrolled under this All-inclusive Care for the Elderly (PACE) program agreement’ means, with respect to a section) and all items and services covered Coverage Act of 1997’’. PACE provider, an agreement, consistent under title XIX, but without any limitation SEC. 2. COVERAGE OF PACE UNDER THE MEDI- with this section, section 1932 (if applicable), or condition as to amount, duration, or scope CARE PROGRAM. and regulations promulgated to carry out and without application of deductibles, co- (a) IN GENERAL.—Title XVIII of the Social such sections, between the PACE provider payments, coinsurance, or other cost-sharing Security Act (42 U.S.C. 1395 et seq.) is and the Secretary, or an agreement between that would otherwise apply under this title amended by adding at the end the following the PACE provider and a State admin- or such title, respectively; and new section: istering agency for the operation of a PACE ‘‘(ii) all additional items and services spec- ‘‘PAYMENTS TO, AND COVERAGE OF BENEFITS program by the provider under such sections. ified in regulations, based upon those re- UNDER, PROGRAMS OF ALL-INCLUSIVE CARE ‘‘(5) PACE PROGRAM ELIGIBLE INDIVIDUAL quired under the PACE protocol; FOR THE ELDERLY (PACE) DEFINED.—For purposes of this section, the ‘‘(B) provide such enrollees access to nec- ‘‘SEC. 1894. (a) RECEIPT OF BENEFITS term ‘PACE program eligible individual’ essary covered items and services 24 hours THROUGH ENROLLMENT IN PACE PROGRAM; means, with respect to a PACE program, an per day, every day of the year; DEFINITIONS FOR PACE PROGRAM RELATED individual who— ‘‘(C) provide services to such enrollees TERMS.— ‘‘(A) is 55 years of age or older; through a comprehensive, multidisciplinary ‘‘(1) BENEFITS THROUGH ENROLLMENT IN A ‘‘(B) subject to subsection (c)(4), is deter- health and social services delivery system PACE PROGRAM.—In accordance with this sec- mined under subsection (c) to require the which integrates acute and long-term care tion, in the case of an individual who is enti- level of care required under the State med- services pursuant to regulations; and tled to benefits under part A or enrolled icaid plan for coverage of nursing facility ‘‘(D) specify the covered items and services under part B and who is a PACE program eli- services; that will not be provided directly by the en- gible individual (as defined in paragraph (5)) ‘‘(C) resides in the service area of the tity, and to arrange for delivery of those with respect to a PACE program offered by a PACE program; and items and services through contracts meet- PACE provider under a PACE program agree- ‘‘(D) meets such other eligibility condi- ing the requirements of regulations. ment— tions as may be imposed under the PACE ‘‘(2) QUALITY ASSURANCE; PATIENT SAFE- ‘‘(A) the individual may enroll in the pro- program agreement for the program under GUARDS.—The PACE program agreement gram under this section; and subsection (e)(2)(A)(ii). shall require the PACE provider to have in ‘‘(B) so long as the individual is so enrolled ‘‘(6) PACE PROTOCOL.—For purposes of this effect at a minimum— and in accordance with regulations— section, the term ‘PACE protocol’ means the ‘‘(A) a written plan of quality assurance ‘‘(i) the individual shall receive benefits Protocol for the Program of All-inclusive and improvement, and procedures imple- under this title solely through such program, Care for the Elderly (PACE), as published by menting such plan, in accordance with regu- and On Lok, Inc., as of April 14, 1995. lations, and ‘‘(ii) the PACE provider is entitled to pay- ‘‘(7) PACE DEMONSTRATION WAIVER PRO- ‘‘(B) written safeguards of the rights of en- ment under and in accordance with this sec- GRAM DEFINED.—For purposes of this section, rolled participants (including a patient bill tion and such agreement for provision of the term ‘PACE demonstration waiver pro- of rights and procedures for grievances and such benefits. gram’ means a demonstration program under appeals) in accordance with regulations and ‘‘(2) PACE PROGRAM DEFINED.—For pur- either of the following sections (as in effect with other requirements of this title and poses of this section and section 1932, the before the date of their repeal): Federal and State law designed for the pro- term ‘PACE program’ means a program of ‘‘(A) Section 603(c) of the Social Security tection of patients. all-inclusive care for the elderly that meets Amendments of 1983 (Public Law 98–21), as ‘‘(c) ELIGIBILITY DETERMINATIONS.— the following requirements: extended by section 9220 of the Consolidated ‘‘(1) IN GENERAL.—The determination of ‘‘(A) OPERATION.—The entity operating the Omnibus Budget Reconciliation Act of 1985 whether an individual is a PACE program el- program is a PACE provider (as defined in (Public Law 99–272). igible individual— paragraph (3)). ‘‘(B) Section 9412(b) of the Omnibus Budget ‘‘(A) shall be made under and in accordance ‘‘(B) COMPREHENSIVE BENEFITS.—The pro- Reconciliation Act of 1986 (Public Law 99– with the PACE program agreement, and gram provides comprehensive health care 509). ‘‘(B) who is entitled to medical assistance services to PACE program eligible individ- ‘‘(8) STATE ADMINISTERING AGENCY DE- under title XIX, shall be made (or who is not uals in accordance with the PACE program FINED.—For purposes of this section, the so entitled, may be made) by the State ad- agreement and regulations under this sec- term ‘State administering agency’ means, ministering agency. tion. with respect to the operation of a PACE pro- ‘‘(2) CONDITION.—An individual is not a ‘‘(C) TRANSITION.—In the case of an indi- gram in a State, the agency of that State PACE program eligible individual (with re- vidual who is enrolled under the program (which may be the single agency responsible spect to payment under this section) unless under this section and whose enrollment for administration of the State plan under the individual’s health status has been deter- ceases for any reason (including the indi- title XIX in the State) responsible for admin- mined, in accordance with regulations, to be vidual no longer qualifies as a PACE pro- istering PACE program agreements under comparable to the health status of individ- gram eligible individual, the termination of this section and section 1932 in the State. uals who have participated in the PACE a PACE program agreement, or otherwise), ‘‘(9) TRIAL PERIOD DEFINED.— demonstration waiver programs. Such deter- the program provides assistance to the indi- ‘‘(A) IN GENERAL.—For purposes of this sec- mination shall be based upon information on vidual in obtaining necessary transitional tion, the term ‘trial period’ means, with re- health status and related indicators (such as care through appropriate referrals and mak- spect to a PACE program operated by a medical diagnoses and measures of activities ing the individual’s medical records avail- PACE provider under a PACE program agree- of daily living, instrumental activities of able to new providers. ment, the first 3 contract years under such daily living, and cognitive impairment) that ‘‘(3) PACE PROVIDER DEFINED.— agreement with respect to such program. are part of a uniform minimum data set col- ‘‘(A) IN GENERAL.—For purposes of this sec- ‘‘(B) TREATMENT OF ENTITIES PREVIOUSLY lected by PACE providers on potential eligi- tion, the term ‘PACE provider’ means an en- OPERATING PACE DEMONSTRATION WAIVER PRO- ble individuals. tity that— GRAMS.—Each contract year (including a ‘‘(3) ANNUAL ELIGIBILITY RECERTIFI- ‘‘(i) subject to subparagraph (B), is (or is a year occurring before the effective date of CATIONS.— distinct part of) a public entity or a private, this section) during which an entity has op- ‘‘(A) IN GENERAL.—Subject to subparagraph nonprofit entity organized for charitable erated a PACE demonstration waiver pro- (B), the determination described in sub- purposes under section 501(c)(3) of the Inter- gram shall be counted under subparagraph section (a)(5)(B) for an individual shall be re- nal Revenue Code of 1986, and (A) as a contract year during which the enti- evaluated not more frequently than annu- ‘‘(ii) has entered into a PACE program ty operated a PACE program as a PACE pro- ally. agreement with respect to its operation of a vider under a PACE program agreement. ‘‘(B) EXCEPTION.—The requirement of an- PACE program. ‘‘(10) REGULATIONS.—For purposes of this nual reevaluation under subparagraph (A) ‘‘(B) TREATMENT OF PRIVATE, FOR-PROFIT section, the term ‘regulations’ refers to in- may be waived during a period in accordance PROVIDERS.—Clause (i) of subparagraph (A) terim final or final regulations promulgated with regulations in those cases where the shall not apply— under subsection (f) to carry out this section State administering agency determines that ‘‘(i) to entities subject to a demonstration and section 1932. there is no reasonable expectation of im- project waiver under subsection (h); and ‘‘(b) SCOPE OF BENEFITS; BENEFICIARY provement or significant change in an indi- ‘‘(ii) after the date the report under section SAFEGUARDS.— vidual’s condition during the period because 5(b) of the Programs of All-inclusive Care for ‘‘(1) IN GENERAL.—Under a PACE program of the advanced age, severity of the advanced the Elderly (PACE) Coverage Act of 1997 is agreement, a PACE provider shall— age, severity of chronic condition, or degree

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(a)(3)(B)(ii). pliance of a provider with all significant re- ‘‘(4) CONTINUATION OF ELIGIBILITY.—An indi- ‘‘(2) SERVICE AREA AND ELIGIBILITY.— quirements of this section and regulations. vidual who is a PACE program eligible indi- ‘‘(A) IN GENERAL.—A PACE program agree- ‘‘(C) DISCLOSURE.—The results of reviews vidual may be deemed to continue to be such ment for a PACE program— under this paragraph shall be reported an individual notwithstanding a determina- ‘‘(i) shall designate the service area of the promptly to the PACE provider, along with tion that the individual no longer meets the program; any recommendations for changes to the pro- requirement of subsection (a)(5)(B) if, in ac- ‘‘(ii) may provide additional requirements vider’s program, and shall be made available cordance with regulations, in the absence of for individuals to qualify as PACE program to the public upon request. continued coverage under a PACE program eligible individuals with respect to the pro- ‘‘(5) TERMINATION OF PACE PROVIDER AGREE- the individual reasonably would be expected gram; MENTS.— to meet such requirement within the suc- ‘‘(iii) shall be effective for a contract year, ‘‘(A) IN GENERAL.—Under regulations— ceeding 6–month period. but may be extended for additional contract ‘‘(i) the Secretary or a State administering ‘‘(5) ENROLLMENT; DISENROLLMENT.—The years in the absence of a notice by a party to agency may terminate a PACE program enrollment and disenrollment of PACE pro- terminate and is subject to termination by agreement for cause, and gram eligible individuals in a PACE program the Secretary and the State administering ‘‘(ii) a PACE provider may terminate an shall be pursuant to regulations and the agency at any time for cause (as provided agreement after appropriate notice to the PACE program agreement and shall permit under the agreement); Secretary, the State agency, and enrollees. enrollees to voluntarily disenroll without ‘‘(iv) shall require a PACE provider to ‘‘(B) CAUSES FOR TERMINATION.—In accord- cause at any time. meet all applicable State and local laws and ance with regulations establishing proce- ‘‘(d) PAYMENTS TO PACE PROVIDERS ON A requirements; and dures for termination of PACE program CAPITATED BASIS.— ‘‘(v) shall have such additional terms and agreements, the Secretary or a State admin- ‘‘(1) IN GENERAL.—In the case of a PACE conditions as the parties may agree to con- istering agency may terminate a PACE pro- provider with a PACE program agreement sistent with this section and regulations. gram agreement with a PACE provider for, under this section, except as provided in this ‘‘(B) SERVICE AREA OVERLAP.—In desig- among other reasons, the fact that— subsection or by regulations, the Secretary nating a service area under a PACE program ‘‘(i) the Secretary or State administering shall make prospective monthly payments of agreement under subparagraph (A)(i), the agency determines that— a capitation amount for each PACE program Secretary (in consultation with the State ad- ‘‘(I) there are significant deficiencies in eligible individual enrolled under the agree- ministering agency) may exclude from des- the quality of care provided to enrolled par- ment under this section in the same manner ignation an area that is already covered ticipants; or and from the same sources as payments are under another PACE program agreement, in ‘‘(II) the provider has failed to comply sub- made to an eligible organization under a order to avoid unnecessary duplication of stantially with conditions for a program or risk-sharing contract under section 1876. services and avoid impairing the financial provider under this section or section 1932; Such payments shall be subject to adjust- and service viability of an existing program. and ment in the manner described in section ‘‘(3) DATA COLLECTION.— ‘‘(ii) the entity has failed to develop and 1876(a)(1)(E). ‘‘(A) IN GENERAL.—Under a PACE program successfully initiate, within 30 days of the ‘‘(2) CAPITATION AMOUNT.—The capitation agreement, the PACE provider shall— receipt of written notice of such a deter- amount to be applied under this subsection ‘‘(i) collect data, mination, and continue implementation of a for a provider for a contract year shall be an ‘‘(ii) maintain, and afford the Secretary plan to correct the deficiencies. amount specified in the PACE program and the State administering agency access ‘‘(C) TERMINATION AND TRANSITION PROCE- agreement for the year. Such amount shall to, the records relating to the program, in- DURES.—An entity whose PACE provider be based upon payment rates established cluding pertinent financial, medical, and agreement is terminated under this para- under section 1876 for risk-sharing contracts personnel records, and graph shall implement the transition proce- and shall be adjusted to take into account ‘‘(iii) make to the Secretary and the State dures required under subsection (a)(2)(C). the comparative frailty of PACE enrollees administering agency reports that the Sec- ‘‘(6) SECRETARY’S OVERSIGHT; ENFORCEMENT and such other factors as the Secretary de- retary finds (in consultation with State ad- AUTHORITY.— termines to be appropriate. Such amount ministering agencies) necessary to monitor ‘‘(A) IN GENERAL.—Under regulations, if the under such an agreement shall be computed the operation, cost, and effectiveness of the Secretary determines (after consultation in a manner so that the total payment level PACE program under this Act. with the State administering agency) that a for all PACE program eligible individuals en- ‘‘(B) REQUIREMENTS DURING TRIAL PERIOD.— PACE provider is failing substantially to rolled under a program is less than the pro- During the first three years of operation of a comply with the requirements of this section jected payment under this title for a com- PACE program (either under this section or and regulations, the Secretary (and the parable population not enrolled under a under a PACE demonstration waiver pro- State administering agency) may take any PACE program. gram), the PACE provider shall provide such or all of the following actions: ‘‘(e) PACE PROGRAM AGREEMENT.— additional data as the Secretary specifies in ‘‘(i) Condition the continuation of the ‘‘(1) REQUIREMENT.— regulations in order to perform the oversight PACE program agreement upon timely exe- ‘‘(A) IN GENERAL.—The Secretary, in close required under paragraph (4)(A). cution of a corrective action plan. cooperation with the State administering ‘‘(4) OVERSIGHT.— ‘‘(ii) Withhold some or all further pay- agency, shall establish procedures for enter- ‘‘(A) ANNUAL, CLOSE OVERSIGHT DURING ments under the PACE program agreement ing into, extending, and terminating PACE TRIAL PERIOD.—During the trial period (as under this section or section 1932 with re- program agreements for the operation of defined in subsection (a)(9)) with respect to a spect to PACE program services furnished by PACE programs by entities that meet the re- PACE program operated by a PACE provider, such provider until the deficiencies have quirements for a PACE provider under this the Secretary (in cooperation with the State been corrected. section, section 1932, and regulations. administering agency) shall conduct a com- ‘‘(iii) Terminate such agreement. ‘‘(B) NUMERICAL LIMITATION.— prehensive annual review of the operation of ‘‘(B) APPLICATION OF INTERMEDIATE SANC- ‘‘(i) IN GENERAL.—The Secretary shall not the PACE program by the provider in order TIONS.—Under regulations, the Secretary permit the number of PACE providers with to assure compliance with the requirements may provide for the application against a which agreements are in effect under this of this section and regulations. Such a re- PACE provider of remedies described in sec- section or under section 9412(b) of the Omni- view shall include— tion 1876(i)(6)(B) or 1903(m)(5)(B) in the case bus Budget Reconciliation Act of 1986 to ex- ‘‘(i) an on-site visit to the program site; of violations by the provider of the type de- ceed— ‘‘(ii) comprehensive assessment of a pro- scribed in section 1876(i)(6)(A) or ‘‘(I) 40 as of the date of the enactment of vider’s fiscal soundness; 1903(m)(5)(A), respectively (in relation to this section, or ‘‘(iii) comprehensive assessment of the pro- agreements, enrollees, and requirements ‘‘(II) as of each succeeding anniversary of vider’s capacity to provide all PACE services under this section or section 1932, respec- such date, the numerical limitation under to all enrolled participants; tively). this subparagraph for the preceding year ‘‘(iv) detailed analysis of the entity’s sub- ‘‘(7) PROCEDURES FOR TERMINATION OR IMPO- plus 20. stantial compliance with all significant re- SITION OF SANCTIONS.—Under regulations, the Subclause (II) shall apply without regard to quirements of this section and regulations; provisions of section 1876(i)(9) shall apply to the actual number of agreements in effect as and termination and sanctions respecting a of a previous anniversary date. ‘‘(v) any other elements the Secretary or PACE program agreement and PACE pro- ‘‘(ii) TREATMENT OF CERTAIN PRIVATE, FOR- State agency considers necessary or appro- vider under this subsection in the same man- PROFIT PROVIDERS.—The numerical limita- priate. ner as they apply to a termination and sanc- tion in clause (i) shall not apply to a PACE ‘‘(B) CONTINUING OVERSIGHT.—After the tions with respect to a contract and an eligi- provider that— trial period, the Secretary (in cooperation ble organization under section 1876. ‘‘(I) is operating under a demonstration with the State administering agency) shall ‘‘(8) TIMELY CONSIDERATION OF APPLICA- project waiver under subsection (h), or continue to conduct such review of the oper- TIONS FOR PACE PROGRAM PROVIDER STATUS.— ‘‘(II) was operating under such a waiver ation of PACE providers and PACE programs In considering an application for PACE pro- and subsequently qualifies for PACE pro- as may be appropriate, taking into account vider program status, the application shall

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be deemed approved unless the Secretary, ‘‘(3) Sections 1814(a)(2)(B), 1814(a)(2)(C), and ‘‘(3) APPLICATION OF DEFINITIONS.—The defi- within 90 days after the date of the submis- 1835(a)(2)(A), insofar as they limit coverage nitions of terms under section 1894(a) shall sion of the application to the Secretary, ei- of extended care services or home health apply under this section in the same manner ther denies such request in writing or in- services. as they apply under section 1894. forms the applicant in writing with respect ‘‘(4) Section 1861(i), insofar as it imposes a ‘‘(b) APPLICATION OF MEDICARE TERMS AND to any additional information that is needed 3-day prior hospitalization requirement for CONDITIONS.—Except as provided in this sec- in order to make a final determination with coverage of extended care services. tion, the terms and conditions for the oper- respect to the application. After the date the ‘‘(5) Sections 1862(a)(1) and 1862(a)(9), inso- ation and participation of PACE program eli- Secretary receives such additional informa- far as they may prevent payment for PACE gible individuals in PACE programs offered tion, the application shall be deemed ap- program services to individuals enrolled by PACE providers under PACE program proved unless the Secretary, within 90 days under PACE programs. agreements under section 1894 shall apply for of such date, denies such request. ‘‘(h) DEMONSTRATION PROJECT FOR FOR- purposes of this section. PROFIT ENTITIES.— ‘‘(f) REGULATIONS.— ‘‘(c) ADJUSTMENT IN PAYMENT AMOUNTS.— ‘‘(1) IN GENERAL.—In order to demonstrate ‘‘(1) IN GENERAL.—The Secretary shall issue In the case of individuals enrolled in a PACE interim final or final regulations to carry the operation of a PACE program by a pri- program under this section, the amount of out this section and section 1932. vate, for-profit entity, the Secretary (in payment under this section shall not be the close consultation with State administering ‘‘(2) USE OF PACE PROTOCOL.— amount calculated under section 1894(d), but agencies) shall grant waivers from the re- ‘‘(A) IN GENERAL.—In issuing such regula- shall be an amount, specified under the tions, the Secretary shall, to the extent con- quirement under subsection (a)(3) that a PACE agreement, which is less than the sistent with the provisions of this section, PACE provider may not be a for-profit, pri- amount that would otherwise have been incorporate the requirements applied to vate entity. made under the State plan if the individuals PACE demonstration waiver programs under ‘‘(2) SIMILAR TERMS AND CONDITIONS.— were not so enrolled. The payment under the PACE protocol. ‘‘(A) IN GENERAL.—Except as provided this section shall be in addition to any pay- under subparagraph (B), and paragraph (1), ‘‘(B) FLEXIBILITY.—The Secretary (in close ment made under section 1894 for individuals consultation with State administering agen- the terms and conditions for operation of a who are enrolled in a PACE program under cies) may modify or waive such provisions of PACE program by a provider under this sub- such section. the PACE protocol in order to provide for section shall be the same as those for PACE ‘‘(d) WAIVERS OF REQUIREMENTS.—With re- reasonable flexibility in adapting the PACE providers that are nonprofit, private organi- spect to carrying out a PACE program under service delivery model to the needs of par- zations. this section, the following requirements of ticular organizations (such as those in rural ‘‘(B) NUMERICAL LIMITATION.—The number this title (and regulations relating to such areas or those that may determine it appro- of programs for which waivers are granted requirements) shall not apply: priate to use non-staff physicians accord- under this subsection shall not exceed 10. ‘‘(1) Section 1902(a)(1), relating to any re- ingly to State licensing law requirements) Programs with waivers granted under this quirement that PACE programs or PACE under this section and section 1932 where subsection shall not be counted against the program services be provided in all areas of such flexibility is not inconsistent with and numerical limitation specified in subsection a State. would not impair the essential elements, ob- (e)(1)(B). ‘‘(2) Section 1902(a)(10), insofar as such sec- ‘‘(i) MISCELLANEOUS PROVISIONS.—Nothing jectives, and requirements of the this sec- tion relates to comparability of services in this section or section 1932 shall be con- tion, including— among different population groups. strued as preventing a PACE provider from ‘‘(3) Sections 1902(a)(23) and 1915(b)(4), re- ‘‘(i) the focus on frail elderly qualifying in- entering into contracts with other govern- lating to freedom of choice of providers dividuals who require the level of care pro- mental or nongovernmental payers for the under a PACE program. vided in a nursing facility; care of PACE program eligible individuals ‘‘(4) Section 1903(m)(2)(A), insofar as it re- ‘‘(ii) the delivery of comprehensive, inte- who are not eligible for benefits under part stricts a PACE provider from receiving pre- grated acute and long-term care services; A, or enrolled under part B, or eligible for ‘‘(iii) the interdisciplinary team approach medical assistance under title XIX.’’. paid capitation payments. ‘‘(e) POST-ELIGIBILITY TREATMENT OF IN- to care management and service delivery; SEC. 3. ESTABLISHMENT OF PACE PROGRAM AS ‘‘(iv) capitated, integrated financing that MEDICAID STATE OPTION. COME.—A State may provide for post-eligi- allows the provider to pool payments re- (a) IN GENERAL.—Title XIX of the Social bility treatment of income for individuals ceived from public and private programs and Security Act is amended— enrolled in PACE programs under this sec- individuals; and (1) in section 1905(a) (42 U.S.C. 1396d(a))— tion in the same manner as a State treats ‘‘(v) the assumption by the provider over (A) by striking ‘‘and’’ at the end of para- post-eligibility income for individuals re- time of full financial risk. graph (24); ceiving services under a waiver under section ‘‘(3) APPLICATION OF CERTAIN ADDITIONAL (B) by redesignating paragraph (25) as 1915(c).’’. BENEFICIARY AND PROGRAM PROTECTIONS.— paragraph (26); and (b) CONFORMING AMENDMENTS.— ‘‘(A) IN GENERAL.—In issuing such regula- (C) by inserting after paragraph (24) the (1) Section 1902(j) of such Act (42 U.S.C. tions and subject to subparagraph (B), the following new paragraph: 1396a(j)) is amended by striking ‘‘(25)’’ and Secretary may apply with respect to PACE ‘‘(25) services furnished under a PACE pro- inserting ‘‘(26)’’. programs, providers, and agreements such gram under section 1932 to PACE program el- (2) Section 1924(a)(5) of such Act (42 U.S.C. requirements of sections 1876 and 1903(m) re- igible individuals enrolled under the pro- 1396r–5(a)(5)) is amended— lating to protection of beneficiaries and pro- gram under such section; and’’; (A) in the heading, by striking ‘‘FROM OR- gram integrity as would apply to eligible or- (2) by redesignating section 1932 as section GANIZATIONS RECEIVING CERTAIN WAIVERS’’ ganizations under risk-sharing contracts 1933, and and inserting ‘‘UNDER PACE PROGRAMS’’, and under section 1876 and to health mainte- (3) by inserting after section 1931 the fol- (B) by striking ‘‘from any organization’’ nance organizations under prepaid capitation lowing new section: and all that follows and inserting ‘‘under a agreements under section 1903(m). ‘‘SEC. 1932. PROGRAM OF ALL-INCLUSIVE CARE PACE demonstration waiver program (as de- ‘‘(B) CONSIDERATIONS.—In issuing such reg- FOR THE ELDERLY (PACE). fined in subsection (a)(7) of section 1894) or ulations, the Secretary shall— ‘‘(a) OPTION.— under a PACE program under section 1932.’’. ‘‘(i) take into account the differences be- ‘‘(1) IN GENERAL.—A State may elect to (3) Section 1903(f)(4)(C) of such Act (42 tween populations served and benefits pro- provide medical assistance under this sec- U.S.C. 1396b(f)(4)(C)) is amended by inserting vided under this section and under sections tion with respect to PACE program services ‘‘or who is a PACE program eligible indi- 1876 and 1903(m); to PACE program eligible individuals who vidual enrolled in a PACE program under ‘‘(ii) not include any requirement that con- are eligible for medical assistance under the section 1932,’’ after ‘‘section 1902(a)(10)(A),’’. flicts with carrying out PACE programs State plan and who are enrolled in a PACE SEC. 4. EFFECTIVE DATE; TRANSITION. under this section; and program under a PACE program agreement. (a) TIMELY ISSUANCE OF REGULATIONS; EF- ‘‘(iii) not include any requirement restrict- Such individuals need not be eligible for ben- FECTIVE DATE.—The Secretary of Health and ing the proportion of enrollees who are eligi- efits under part A, or enrolled under part B, Human Services shall promulgate regula- ble for benefits under this title or title XIX. of title XVIII to be eligible to enroll under tions to carry out this Act in a timely man- ‘‘(g) WAIVERS OF REQUIREMENTS.—With re- this section. ner. Such regulations shall be designed so spect to carrying out a PACE program under ‘‘(2) BENEFITS THROUGH ENROLLMENT IN that entities may establish and operate this section, the following requirements of PACE PROGRAM.—In the case of an individual PACE programs under sections 1894 and 1932 this title (and regulations relating to such enrolled with a PACE program pursuant to for periods beginning not later than 1 year requirements) are waived and shall not such an election— after the date of the enactment of this Act. apply: ‘‘(A) the individual shall receive benefits (b) EXPANSION AND TRANSITION FOR PACE ‘‘(1) Section 1812, insofar as it limits cov- under the plan solely through such program, DEMONSTRATION PROJECT WAIVERS.— erage of institutional services. and (1) EXPANSION IN CURRENT NUMBER OF DEM- ‘‘(2) Sections 1813, 1814, 1833, and 1886, inso- ‘‘(B) the PACE provider shall receive pay- ONSTRATION PROJECTS.—Section 9412(b) of the far as such sections relate to rules for pay- ment in accordance with the PACE program Omnibus Budget Reconciliation Act of 1986, ment for benefits. agreement for provision of such benefits. as amended by section 4118(g) of the Omnibus

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00098 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY May 8, 1997 CONGRESSIONAL RECORD — SENATE S4231 Budget Reconciliation Act of 1987, is amend- (C) Section 9412(b) of the Omnibus Budget Provider Act of 1997. I am pleased to ed— Reconciliation Act of 1986 (Public Law 99– support this very worthy program, (A) in paragraph (1), by inserting before 509). aimed at increasing community based the period at the end the following: ‘‘, except (2) DELAY IN APPLICATION.— long term care options for seniors that the Secretary shall grant waivers of (A) IN GENERAL.—Subject to subparagraph which was initiated and pursued by such requirements to up to the applicable (B), the repeals made by paragraph (1) shall numerical limitation specified in section not apply to waivers granted before the ini- Senator Dole over the past several 1894(e)(1)(B) of the Social Security Act’’; and tial effective date of regulations described in years. (B) in paragraph (2)— subsection (a). This bill amends present law by in- (i) in subparagraph (A), by striking ‘‘, in- (B) APPLICATION TO APPROVED WAIVERS.— creasing the number of high quality, cluding permitting the organization to as- Such repeals shall apply to waivers granted comprehensive, community based serv- sume progressively (over the initial 3-year before such date only after allowing such or- ices available to seniors who would period of the waiver) the full financial risk’’; ganizations a transition period (of up to 24 otherwise be forced into nursing and months) in order to permit sufficient time homes. (ii) in subparagraph (C), by adding at the for an orderly transition from demonstration Frail older people, particularly those end the following: ‘‘In granting further ex- project authority to general authority pro- tensions, an organization shall not be re- 85 years and older are the fastest grow- vided under the amendments made by this ing population group in this country quired to provide for reporting of informa- Act. and have multiple and complex chronic tion which is only required because of the SEC. 5. STUDY AND REPORTS. demonstration nature of the project.’’. illnesses. More than 50 percent of this (a) STUDY.— (3) ELIMINATION OF REPLICATION REQUIRE- (1) IN GENERAL.—The Secretary of Health population require some assistance MENT.—Subparagraph (B) of paragraph (2) of and Human Services (in close consultation with activities of daily living. such section shall not apply to waivers with State administering agencies, as de- At the same time, the cost of caring granted under such section after the date of fined in section 1894(a)(8) of the Social Secu- for the frail elderly is skyrocketing. the enactment of this Act. rity Act) shall conduct a study of the quality Many elderly and individuals with dis- (4) TIMELY CONSIDERATION OF APPLICA- and cost of providing PACE program services TIONS.—In considering an application for abilities are eligible for both Medicare under the medicare and medicaid programs waivers under such section before the effec- and Medicaid. These dual eligibles have under the amendments made by this Act tive date of repeals under subsection (c), sub- multidimensional, interdependent, and (2) STUDY OF PRIVATE, FOR-PROFIT PRO- ject to the numerical limitation under the chronic health care needs. They are at VIDERS.— Such study shall specifically com- amendment made by paragraph (1), the appli- pare the costs, quality, and access to serv- risk for nursing home placement and cation shall be deemed approved unless the ices by entities that are private, for-profit require acute and long-term care serv- Secretary of Health and Human Services, entities operating under demonstration ice integration if they are to remain at within 90 days after the date of its submis- home. However, as currently struc- sion to the Secretary, either denies such re- projects waivers granted under section quest in writing or informs the applicant in 1894(h) of the Social Security Act with the tured, the Medicare and Medicaid Pro- writing with respect to any additional infor- costs, quality, and access to services of other grams are not sufficiently coordinated mation which is needed in order to make a PACE providers. to serve many of these complex health final determination with respect to the ap- (b) REPORT.— needs. In addition, these programs have plication. After the date the Secretary re- (1) IN GENERAL.—Not later than 4 years after the date of enactment of this Act, the traditionally favored institutional care ceives such additional information, the ap- rather than community based or home plication shall be deemed approved unless Secretary shall provide for a report to Con- gress on the impact of such amendments on care. These problems result in duplica- the Secretary, within 90 days of such date, tion and fragmentation of services as denies such request. quality and cost of services. The Secretary (c) PRIORITY AND SPECIAL CONSIDERATION IN shall include in such report such rec- well as increased health costs. APPLICATION.—During the 3-year period be- ommendations for changes in the operation In my own State of Tennessee, the ginning on the date of enactment of this Act: of such amendments as the Secretary deems home health industry has come under (1) PROVIDER STATUS.—The Secretary of appropriate. fire because of high Medicare utiliza- Health and Human Services shall give pri- (2) TREATMENT OF PRIVATE, FOR-PROFIT PRO- tion rates. This is partly because there ority, in processing applications of entities VIDERS.—The report shall include specific are almost no Medicaid long term care to qualify as PACE programs under section findings on whether any of the following findings is true: options available to Tennesseans who 1894 or 1932 of the Social Security Act— want to stay at home. Consequently, (A) first, to entities that are operating a (A) The number of covered lives enrolled PACE demonstration waiver program (as de- with entities operating under demonstration nursing home care is the only option fined in section 1894(a)(7) of such Act), and project waivers under section 1894(h) of the for frail elders unless they have enough (B) then entities that have applied to oper- Social Security Act is fewer than 800 (or money to pay privately for their care ate such a program as of May 1, 1997. such lesser number as the Secretary may or if family members can afford to be (2) NEW WAIVERS.—The Secretary shall give find statistically sufficient to make deter- the primary giver. Tennesseans should priority, in the awarding of additional waiv- minations respecting findings described in be able to choose from a broad array of ers under section 9412(b) of the Omnibus the succeeding subparagraphs). community based long term care serv- (B) The population enrolled with such enti- Budget Reconciliation Act of 1986— ices and should not be limited to insti- (A) to any entities that have applied for ties is less frail than the population enrolled with other PACE providers. tutional care. such waivers under such section as of May 1, So, if we are to control costs while 1997; and (C) Access to or quality of care for individ- (B) to any entity that, as of May 1, 1997, uals enrolled with such entities is lower than providing high quality care to this vul- has formally contracted with a State to pro- such access or quality for individuals en- nerable population, we must increase vide services for which payment is made on rolled with other PACE providers. long term care opportunities and pro- a capitated basis with an understanding that (D) The application of such section has re- vide better coordination between Medi- the entity was seeking to become a PACE sulted in an increase in expenditures under care and Medicaid reimbursement sys- provider. the medicare or medicaid programs above tems. (3) SPECIAL CONSIDERATION.—The Secretary the expenditures that would have been made PACE, Program for All-inclusive if such section did not apply. shall give special consideration, in the proc- Care of the Elderly, is the only pro- essing of applications described in paragraph (c) INFORMATION INCLUDED IN ANNUAL REC- OMMENDATIONS.—The Physician Payment Re- gram which integrates acute and long (1) and the awarding of waivers described in term care service delivery and finance. paragraph (2), to an entity which as of May view Commission shall include in its annual 1, 1997 through formal activities (such as en- recommendations under section 1845(b) of the Designed to help the at-risk elderly tering into contracts for feasibility studies) Social Security Act (42 U.S.C. 1395w–1), and who need service integration, it rep- has indicated a specific intent to become a the Prospective Payment Review Commis- resents a fundamental shift in the way PACE provider. sion shall include in its annual recommenda- needed health services are accessed. By (d) REPEAL OF CURRENT PACE DEMONSTRA- tions reported under section 1886(e)(3)(A) of using capitation mechanisms which TION PROJECT WAIVER AUTHORITY.— such Act (42 U.S.C. 1395ww(e)(3)(A)), rec- pool funds from Medicare, Medicaid ommendations on the methodology and level (1) IN GENERAL.—Subject to paragraph (2), and private pay sources, this program the following provisions of law are repealed: of payments made to PACE providers under (A) Section 603(c) of the Social Security section 1894(d) of such Act and on the treat- joins medical services with established Amendments of 1983 (Public Law 98–21). ment of private, for-profit entities as PACE long term care services. Care is man- (B) Section 9220 of the Consolidated Omni- providers.∑ aged and coordinated by an inter- bus Budget Reconciliation Act of 1985 (Public ∑ Mr. FRIST. Mr. President, I join my disciplinary team that is responsible Law 99–272). colleagues in introducing the PACE for service allocation decisions.

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00099 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S4232 CONGRESSIONAL RECORD — SENATE May 8, 1997 As a result: duplicate services and in- The PACE Provider Act of 1997 does Medicaid, and private pay systems. Fi- effective treatments are eliminated; exactly that. It makes the PACE alter- nally, PACE programs are unique in participants have access to the entire native available for the first time to that a mature program assumes total spectrum of acute and long-term care many communities. It also allows more financial risk and responsibility for all services, all provided and coordinated entities in the healthcare marketplace acute and long-term care without limi- by a single organization; and enrollees to participate in a new way of pro- tation. are relieved of the burden of independ- viding care for frail elders. PACE gives The PACE Provider Act does not ex- ently navigating the bewildering us a chance to contain costs while pro- pand eligibility criteria for benefits in health-care maze. viding high quality care to one of our any way. Rather, it makes available to How well has it worked? The accom- most vulnerable populations. individuals already eligible for nursing plishments of PACE include: controlled The PACE program’s integration of home care, because of their poor health utilization of both outpatient and inpa- health and social services, its cost-ef- status, a preferable, and less costly al- tient services; controlled utilization of fective, coordinated system of care de- ternative. specialist services; high consumer sat- livery and its method of integrated fi- By expanding the availability of isfaction; capitation rates which pro- nancing have wide applicability and community-based long-term care serv- vide significant savings from per capita appeal. It is an exciting way to satis- ices, On Lok’s success of providing high nursing home costs or community long fying an urgent need and I whole- quality care with an emphasis on pre- term care costs; and ethnic and racial heartedly support it.∑ ventive and supportive services, can be distributions of beneficiaries served ∑ Mr. INOUYE. Mr. President, I intro- replicated throughout the country. which reflect the communities from duce the PACE Provider Act of 1997 PACE programs have substantially re- which PACE draws its participants. with my distinguished colleague Sen- duced utilization of high-cost inpatient Most importantly, PACE has been ator GRASSLEY. services. Although all PACE enrollees able to shift location of care from the The Program for All-inclusive Care are eligible for nursing home care, just inpatient acute care setting to the for the Elderly [PACE] Act of 1997 6 percent of these individuals are per- community setting. By integrating so- began in 1983 with the passage of legis- manently institutionalized. The vast cial and medical services through adult lation authorizing On Lok, the proto- majority are able to remain in the day health care, PACE has made it pos- type for the PACE model, as a dem- community and PACE enrollees are sible for frail elders to continue to live onstration program. In 1986 Congress also hospitalized less frequently. at home, not in a nursing care facility. passed legislation to test the Through PACE, dollars that would Are there other alternatives? Medi- replicability of On Lok’s success by au- have been spent on hospital and nurs- care HMO’s and Social HMO’s have also thorizing Medicare and Medicaid waiv- ing home services are used to expand attempted to control costs while pro- ers for up to 10 replication sites; and in the availability of community-based viding access to high quality care. 1989 the number of authorized sites was long-term care. However, Medicare HMO’s exclude long increased to 15. The PACE Provider This bill would expand the number of term care and typically do not serve Act of 1997 is the next step in a series non-profit entities to become PACE many frail older persons on an ongoing of legislative actions taken by Con- providers to 45 within the first year basis. Social HMO’s also limit the long gress to develop PACE as a commu- and allow 20 new such programs each term care benefits available to their nity-based alternative to nursing home members. These programs are impor- year thereafter. In addition, the PACE care. tant, but simply do not meet the needs Provider Act of 1997 will establish a Currently PACE programs provide demonstration project to allow no of this particular population. PACE, on services to approximately 3,000 individ- the other hand, serves frail elders ex- more than 10 for-profit organizations uals in eight States: California, Colo- to establish themselves as PACE pro- clusively and provide a continuum of rado, Massachusetts, New York, Or- care. It provides all acute and long viders. The number of for-profit enti- egon, South Carolina, Texas, and Wis- term care services according to partici- ties will not be counted against the nu- consin. There are also 15 PACE pro- pant needs and without limits on bene- merical limitation specified for non- grams in development which are oper- fits. profit organizations. Unfortunately, the number of persons ational, although not involved in Medi- Analyses of costs for individuals en- enrolled in PACE nationally is minus- care capitation. In addition, a number rolled in PACE show a 5- to 15-percent cule compared with other managed of other organizations are actively reduction in Medicare and Medicaid care systems. States such as Tennessee working to develop PACE programs in spending relative to a comparably frail are eager to participate. However, the other States including: Florida, Ha- population in the traditional Medicare number of participating sites has been waii, Illinois, New Mexico, Michigan, and Medicaid systems. capped under current legislation. Ohio, Pennsylvania, Virginia, and States have voluntarily joined to- The PACE Provider Act of 1997 in- Washington. gether with community organizations creases the number of sites authorized PACE is unique in a variety of ways. to develop PACE programs out of their to provide comprehensive, community- First, PACE programs serve only the commitment to developing viable al- based services to frail, older adults very frail—older persons who meet ternatives to institutionalization. This from 15 to 40 with an additional 20 to their States’ eligibility criteria for legislation provides States with the op- be added each year; and affords regular nursing home care. This high-cost pop- tion of pursuing PACE development; provider status to existing sites. ulation is of particular concern to pol- and, as under present law, State par- Specifically, the bill: icy makers because of the dispropor- ticipation would remain voluntary. Specifies that PACE sites be lower in tionate share of resources they use rel- As our population ages, we must con- cost than the alternative health care ative to their numbers. tinue to place a high priority on long- services available to PACE enrollees, a Second, PACE programs provide a term care services. Giving our seniors goal which has already been accom- comprehensive package of primary alternatives to nursing home care and plished; includes quality of care safe- acute and long-term care services. All expanding the choices available, is not guards; gives States the option of uti- services, including primary and spe- only cost-effective, but will also im- lizing PACE programs based on their cialty medical care, adult day care, prove the quality of life for older need for alternatives to long-term in- home care, nursing, social work serv- Americans.∑ stitutional care and the program’s con- ices, physical and occupational thera- tinuing cost-effectiveness; and allows pies, prescription drugs, hospital and By Mr. TORRICELLI: for-profit entities to participate in nursing home care are coordinated and S. 721. A bill to require the Federal PACE as a demonstration project. administered by PACE program staff. Trade Commission to conduct a study PACE services frail older people of Third, PACE programs are cost-effec- of the marketing and advertising prac- diverse ethnic heritage and has oper- tive in that they are reimbursed on a tices of manufacturers and retailers of ated successfully under different state capitated basis, at rates that provide personal computers; to the Committee and local environments. This program payers savings relative to their expend- on Commerce, Science, and Transpor- deserves expansion. itures in the traditional Medicare, tation.

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00100 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY May 8, 1997 CONGRESSIONAL RECORD — SENATE S4233 THE PERSONAL COMPUTER TRUTH IN study of the marketing and advertising SEC. 4. PERSONAL COMPUTER MARKETING AND ADVERTISING ACT OF 1997 practices of manufacturers and retail- ADVERTISING STUDY. (a) IN GENERAL.—Not later than 180 days ∑ Mr. TORRICELLI. Mr. President, ers of personal computers, with par- today I am introducing ‘‘The Personal after the date of enactment of this Act, the ticular emphasis on claims made about Commission shall conduct a study of the Computer Truth in Advertising Act of the CPU. My bill requires the FTC to marketing and advertising practices of man- 1997,’’ which is designed to ensure that perform their study within 180 days of ufacturers and retailers of personal com- consumers are provided with accurate enactment of the bill. I had previously puters. information about the performance of written to the FTC on this issue as a (b) CONTENTS OF STUDY.—In conducting the what is becoming one of the most im- member of the House. study under this subsection, the Commission portant consumer products in the Na- Car manufacturers provide both high- shall give particular emphasis to deter- tion, the personal computer. mining— way and city mileage performance fig- (1) whether the practice of the advertising My bill requires the Federal Trade ures for the performance of their en- Commission to investigate and conduct of the internal speed of a CPU in megahertz, gines and computer manufacturers without mentioning the external speed of a a study of the marketing and adver- should follow the same logic with the CPU, could be considered to be an unfair or tising practices of personal computer engines of the personal computer, the deceptive practice, within the meaning of manufacturers and retailers with re- CPU. section 5 of the Federal Trade Commission gard to possibly misleading claims I urge my colleagues to cosponsor Act (15 U.S.C. 45); and made about the performance of their this bill and I will work hard for its en- (2) the extent to which the practice re- products. ferred to in paragraph (1) is used in the mar- actment into law. keting and advertising of personal com- As we head into the next century, the Mr. President, I ask unanimous con- personal computer is quickly becoming puters. sent that the text of the bill be printed (c) REPORT.—Upon completion of the study one of the most important consumer in the RECORD. under subsection (a), the Chairman of the products. Indeed, the market for com- There being no objection, the bill was Commission shall transmit to Congress a re- puters in the home has exploded in re- ordered to be printed in the RECORD, as port that contains— cent years with the market expected to follows: (1) the findings of the study conducted double by 2000. Still, despite their S. 721 under this section; and growing popularity, purchasing a per- (2) such recommendations as the Commis- Be it enacted by the Senate and House of Rep- sion determines to be appropriate.∑ sonal computer involves technology resentatives of the United States of America in and terminology that can be very in- Congress assembled, By Mr. THOMAS: timidating and confusing to the aver- SECTION 1. SHORT TITLE. S. 722. A bill to benefit consumers by age consumer. This Act may be cited as the ‘‘Personal promoting competition in the electric Of particular concern to me is a prac- Computer Truth in Advertising Act of 1997’’. power industry, and for other purposes; tice by personal computer retailers and SEC. 2. FINDINGS. to the Committee on Energy and Nat- manufacturers in how they advertise (b) FINDINGS.—Congress finds that— ural Resources. the speed of the central processing unit (1) computer manufacturers and retailers (CPU) of the personal computer. In- commonly refer to the speed of the central THE ELECTRIC UTILITY RESTRUCTURING EM- processing unit of a personal computer in deed, when marketing and advertising POWERMENT AND COMPETITIVENESS ACT OF selling a personal computer; 1997 [EURECA] personal computers, the CPU speed is a (2) computer manufacturers and retailers Mr. THOMAS. Mr. President, I rise prominent selling point and consumers commonly charge hundreds of dollars more today to introduce the Electric Utility are frequently charged hundreds of dol- for a CPU that has a faster speed; Restructuring Empowerment and Com- lars more for models with faster CPU’s. (3) all CPUs operate at 2 speeds (measured The CPU is to the personal computer in megahertz (MHz)), an external speed and petitiveness Act of 1997. This legisla- as an engine is to an automobile. Meas- an internal speed; tion, which gives states the authority ured in millions of cycles per second (4) the external speed of a personal com- to order the delivery of electric energy puter affects computing activities that com- to all retail consumers, is based on the [mhz], the faster the CPU, the better puter users experience, including the the software performs. The CPU’s in idea that less government intervention scrolling of a word processing document, the is the best way to achieve affordable, personal computers, including the pop- smoothness of an animation, and the com- ular Pentium chip, operate at two plexity and frame rate of a flight simulator; reliable and competitive options for re- speeds, an external speed and an inter- (5) the internal speed of a personal com- tail electric energy services. nal speed. The external speed affects puter, which is faster than the external This is a substantially different ap- computing activity the user sees in speed of the computer, affects activities, proach from other measures that have action—the scrolling of a web page or a such as spreadsheet calculations, spelling been introduced in both the House and checks, and database organizations; word processing document, the smooth- Senate to restructure the nation’s elec- (6) it is common for manufacturers and re- tric utility industry. I do not believe ness of an animated interactive story- tailers to mention the internal speed of a book and the complexity and frame CPU without mentioning its external speed that a federal mandate on the states rate of a flight simulator. The internal for the marketing and advertising of a per- requiring retail competition by a date speed of the CPU involves activity in- sonal computer; and certain is in the best interest of all visible to the user—spreadsheet cal- (7) a study by the Federal Trade Commis- classes of customers. I am concerned culations, spell checking and database sion would assist in determining whether that this method could result in in- any practice of computer retailers and man- organization. creased electricity rates for low-den- ufacturers in providing CPU speeds in adver- sity states or states that have rel- Nonetheless, personal computers are tising and marketing personal computers is commonly marketed according to their deceptive, for purposes of the Federal Trade atively low-cost power. Electricity is internal, and faster, speed. For exam- Commission Act (15 U.S.C. 41 et seq.). an essential commodity critical to ev- ple, a Pentium computer advertised as SEC. 3. DEFINITIONS. eryday life in this country. It is also an a 200 mhz screamer runs at only 66 mhz In this Act: industry heavily regulated at the Fed- externally. Still, most advertisements (1) CENTRAL PROCESSING UNIT; CPU.—The eral and State levels. If the Congress is fail to mention this discrepancy and re- term ‘‘central processing unit’’ or ‘‘CPU’’ going to make fundamental changes to tailers and manufacturers charge hun- means the central processing unit of a per- the last major regulated monopoly, its sonal computer. role should be to help implement com- dreds of dollars more for the 200 mhz (2) COMMISSION.—The term ‘‘Commission’’ than they would for a 66 mhz model. means the Federal Trade Commission. petitive changes in a positive manner, Moreover, driving the sales of per- (3) MANUFACTURER.—The term ‘‘manufac- rather than interject the heavy hand of sonal computers has been the avail- turer’’ shall have the meaning provided that government with a ‘‘Washington- ability of advanced multimedia and term by the Commission. knows-best’’ mentality. interactive entertainment software. (4) MEGAHERTZ.—The term ‘‘megahertz’’ or This legislation comes down on the This is the very software whose per- ‘‘MHz’’, when used as a unit of measurement side of States’ rights. Having been in- of the speed of a CPU, means 1,000,000 cycles volved in the electric power industry, I formance depends greatly on the CPU’s per second. external clock speed. (5) RETAILER.—The term ‘‘retailer’’ shall understand the unique characteristics My legislation would require the Fed- have the meaning provided that term by the of each State. As most everyone eral Trade Commission to conduct a Commission. knows, California was the first State to

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00101 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S4234 CONGRESSIONAL RECORD — SENATE May 8, 1997 pass a retail choice law. Since that Furthermore, the measure expands A viable option the Congress should time, Arizona, Massachusetts, New Jer- FERC authority to require non-public consider is to ‘‘build a fence’’ around sey, Pennsylvania, New Hampshire, utilities that own, operate or control governmental utilities. Sales in exist- Texas, Montana, Oklahoma and others transmission to open their systems. ing service territories could continue have followed suit. Currently, the Commission cannot re- to be financed using current methods. According to Bruce Ellsworth, Presi- quire the Federal Power Marketing Ad- However, for sales outside of their tra- dent of the National Association of ministrations [PMA’s], the Tennessee ditional boundaries, these systems Regulatory Utility Commissioners Valley Authority [TVA], municipali- should operate on the same basis and [NARUC], ‘‘more than one-third of the ties and cooperatives that own trans- play by the same rules as other com- Nation’s population live in states that mission, to provide wholesale open ac- petitors. have chosen within the last year to cess transmission service. According to The Congress should also address ex- move to open-access, customer choice Elizabeth Moler, Chairwoman of FERC, isting tax structures to determine if markets.’’ All told, every state except approximately 22 percent of all trans- the ‘‘benefits’’ tax-paying utilities re- one is in the process of either exam- mission is beyond open access author- ceive results in unfair advantages ining or implementing policies for re- ity. Requiring these non-public utili- against their competitors. While tax tail consumers of electric energy. ties to provide this service will help en- initiatives, such as accelerated depre- States are clearly taking the lead— sure that a true wholesale power mar- ciation and investment tax credits, are they should continue to have that ket exists. available to all businesses that pay in- role—and this bill confirms their au- One of the key elements of this meas- come tax, if this amounts to ‘‘sub- thority by affirming States’ ability to ure is streamlining and modernizing sidies’’ reforms may have to be made. implement retail choice policies. the Public Utility Regulatory Policies My bill would direct the Inspector This initiative leaves important Act of 1978 [PURPA] and the Public General of the Department of Treasury functions, including the ability to re- Utility Holding Company Act of 1935 to file a report to the Congress detail- [PUHCA]. While both of these initia- cover stranded costs, establish and en- ing whether and how tax code incen- tives were enacted with good inten- force reliability standards, promote re- tives received by all utilities should be tions, and their obligations fulfilled, newable energy resources and support reviewed in order to foster a competi- there is widespread consensus that the public benefit and assistance to low-in- tive retail electricity market in the fu- Acts have outlived their usefulness. come and rural consumer programs in My bill amends section 210 of PURPA ture. Furthermore, I am pleased that the hands of State Public Service Com- on a prospective basis. Current PURPA Senator MURKOWSKI, Chairman of the missions [PUC’s]. If a State desires to contracts would continue to be honored Senate Energy and Natural Resources impose a funding mechanism—such as and upheld. However, upon enactment Committee, requested a report by the wires charges—to encourage that a cer- of this legislation, a utility that begins Joint Committee on Taxation to re- tain percentage of energy production operating would not be required to view all subsidies and incentives that comes from renewable alternatives, enter into a new contract or obligation investor-owned, publicly-owned and co- they should have that opportunity. to purchase electricity under section operatively-owned utilities receive. However, I do not believe a nationally 210 of PURPA. Mr. President, I believe EURECA is a mandated set-aside is the best way to With regard to PUHCA, I chose to in- common-sense approach that attempts promote competition. Likewise, indi- corporate Senator D’AMATO’s recently to build consensus to solve some of the vidual states would have the authority introduced legislation in my bill. As critical questions associated with this over retail transactions. This ensures Chairman of the Senate Banking Com- important issue. The states are moving that certain customers could not by- mittee, which has jurisdiction over the and should continue to have the ability pass their local distribution system issue, he has crafted a proposal that I to craft electricity restructuring plans and avoid responsibility for paying believe will successfully reform the that recognize the uniqueness of each their share of stranded costs. statute and I support his efforts. Under state. This legislation is the best solu- One of the most important aspects of his proposal, the provisions of PUHCA tion to foster the debate and allow us this debate—assuring that universal would be repealed 18 months after the to move forward with a better product service is maintained—is a critical Act is signed into law. Furthermore, for all classes of consumers and the in- function that each State PUC should all books and records of each holding dustry as a whole. have the ability to oversee and enforce. company and each associate company In my legislation, nothing would pro- would be transferred from the Securi- By Mr. LAUTENBERG (for him- hibit a state from requiring all elec- ties and Exchange Commission [SEC]— self, Mrs. BOXER, and Mr. tricity providers that sell electricity to which currently has jurisdiction over KERRY): retail customers in that state to pro- the 15 registered holding companies—to S. 723. A bill to increase the safety of vide electricity service to all classes the FERC. This allows energy regu- the American people by preventing and consumers of electric power. lators, who truly know the industry, to dangerous military firearms in the con- Mr. President, at the wholesale level, oversee the operations of these compa- trol of foreign governments from being my proposal attempts to create greater nies and review acquisitions and merg- imported into the United States, and competition by prospectively exempt- ers. These consumer protections are an for other purposes; to the Committee ing the sale of electricity for resale important part of PUHCA reform. on Foreign Relations. from rates determined by the Federal Mr. President, an issue which must THE ANTI-GUN INVASION ACT OF 1997 Energy Regulatory Commission be resolved in order for a true competi- ∑ Mr. LAUTENBERG. Mr. President, [FERC]. Although everyone talks tive environment to exist is that of today Senators BOXER and KERRY and I about ‘‘deregulating’’ the electricity utilities receiving special ‘‘subsidies’’ are introducing legislation to ensure industry, it is really the generation by the federal government and the U.S. that millions of lethal American-man- segment that will be deregulated. The tax code. For years, investor-owned ufactured military weapons will not be FERC will continue to regulate trans- utilities [IOU’s] have claimed inequity imported into this country. Represent- mission in interstate commerce, and because of tax-exempt financing and atives PATRICK KENNEDY and MALONEY State PUC’s will continue to regulate low-interest loans that municipalities are introducing companion legislation retail distribution services and sales. and rural cooperatives receive. On the in the House of Representatives. When FERC issued Order 888 last other side of the equation, these public The bill we are introducing repeals a year, it allowed utilities to seek mar- power systems maintain that IOU’s are loophole in the law that could allow ket-based rates for new generating ca- able to receive special tax treatment, U.S. military weapons that were pro- pacity. This provision goes a step fur- not offered to them, which amounts to vided to foreign countries to be sold ther and allows utilities to purchase a ‘‘tax free’’ loan. The jury is still out back to gun dealers in this country. wholesale power from existing gener- on how best to deal with this thorny The loophole permits the import of so- ating facilities, after the date of enact- and, undoubtedly complex matter, but called ‘‘curios or relics’’ —weapons ment of this Act, at prices solely deter- make no mistake about it, changes will considered to have historic value or mined by market forces. be made. which are more than 50 years old.

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00102 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY May 8, 1997 CONGRESSIONAL RECORD — SENATE S4235 About 2.5 million American-manufac- U.S. military firearms that are cur- and, if a government sells its whole tured military weapons that the U.S. rently in the possession of foreign gov- stockpile, plentiful. A sudden increase Government gave away, sold, or were ernments to enter the United States in supply of M–1 garands and carbines taken as spoils of war by foreign gov- commercially. Because so many of and M–1911 pistols would drive down ernments are at issue. This includes 1.2 those firearms can be easily converted the price, making them less attractive million M–1 carbines, which are easily to automatic weapons, it would have to the collector and more attractive to converted to fully automatic weapons. undermined efforts to reduce gun vio- the criminal. Though these weapons are older, they lence in this country. In addition, it In fact, the administration opposed are lethal. I don’t want them flooding could have provided a windfall for for- last year’s provision, in part, because America’s streets. And I don’t want eign governments at the expense of the of the increased availability of low- foreign governments making a windfall taxpayer. cost weapons for criminals that invari- by selling them to commercial gun Certainly the dangers posed by many ably would have resulted. According to dealers. guns on the curios or relics list—in the administration, ‘‘The criminal ele- As some of my colleagues may know, particular the M–1 carbine, which is ment thrives on low-cost firearms that the term ‘‘curios or relics’’ was origi- easily converted into an automatic are concealable, or capable of accept- nally used in the Gun Control Act of weapon—are an important reason for ing large-capacity magazines, or capa- 1968 to make it easier for licensed col- preventing imports of those guns. It is ble of being easily converted to fully lectors to buy curios or relics weapons the main reason I am proposing legisla- automatic fire. Thus, such weapons from outside his or her State of resi- tion to clarify the law to prevent im- would be particularly enticing to the dence. The Treasury Department came ports in the future. But the provisions criminal element. In short, the net ef- up with a definition and list of ‘‘curios of the Arms Export Control Act that fect of the proposal would be to thwart the administration’s efforts to deny or relics’’ for this purpose. At that limit the imports are not merely tech- criminals the availability of inexpen- time, importation of surplus military nical. They support a principle, in- sive, but highly-lethal, imported fire- weapons—whether of United States or cluded in the Arms Export Control Act, that is basic to the integrity of our for- arms.’’ foreign origin—was prohibited, and the We know that the M–1 carbine has al- curios or relics list had nothing to do eign military assistance program: No foreign government should be allowed ready been used to kill at least 6 police with importing weapons. officers. Another 3 were killed with M– to do anything with weapons we have Nearly 20 years later, in 1984, a law 1911 pistols. As recently as this Janu- given them that we ourselves would was passed that expanded the scope of ary, two sheriff’s deputies, James Leh- not do with them. For example, the De- the curios or relics list in ways never mann, Jr. and Michael P. Haugen, were partment of Defense does not transfer foreseen at the time the list was first killed with an M–1 carbine while re- created. The modified law said that weapons to a country that is our sponding to a domestic violence call in guns that were on the curios or relics enemy; no foreign government should Cabazon, CA. In October 1994, in list could not just be sold interstate be allowed to use U.S.-supplied weap- Gilford, NH, Sgt. James Noyes of the within this country, but could be im- ons in that way. The Department of State Police Special Weapons and Tac- ported as well. Defense does not sell its excess guns di- tics Unit was killed in the line of duty However, the Arms Export Control rectly to commercial dealers in the with an M–1 carbine. In December 1992, Act still prohibited the importation of United States, and foreign govern- two Richmond, CA police officers were U.S. military weapons that had been ments should not be able to do so ei- killed with an M–1 carbine. In just one furnished to foreign governments. Al- ther. State, Pennsylvania, at least 10 people though a 1987 amendment to that Act As recently as 1994, the General Serv- were killed using U.S.-origin military authorized the importation of U.S.-ori- ices Administration Federal weapons weapons during a recent 5-year period. gin military weapons on the curios or task force reviewed U.S. policy for the To those who would argue that ‘‘curios relics list as well, only one import li- disposal of firearms and confirmed a and relics’’ are not used in crimes, I cense has been granted under the cu- longstanding Government policy would say talk to the families of these rios or relics exception. Since that iso- against selling or transferring excess victims. lated incident, every administration— weapons out of Government channels. American-manufactured weapons Reagan, Bush, and Clinton—has adopt- The Federal Government has made a were sold to foreign governments— ed a policy established by the Reagan decision that it should not be an arms often at a discount rate subsidized by administration and based on the Arms merchant. The Federal regulations the U.S. taxpayer—because we believed Export Control Act of denying these that emerged from that task force re- it was in our foreign policy interest to kinds of import licenses. view are clear. They say surplus fire- strengthen and assist our allies. We did Though the Clinton administration arms may be sold only for scrap after not intend to enable foreign govern- and the past two Republican adminis- total destruction by crushing, cutting, ments to make a profit by turning trations have opposed importing these breaking, or deforming to be performed around and selling them back to com- lethal weapons, the NRA supports im- in a manner to ensure that the fire- mercial gun dealers in the U.S. We cer- porting them and it has allies on the arms are rendered completely inoper- tainly did not help our allies so they Hill. Last year, an effort was made in ative and to preclude their being made could turn around and flood America’s the Commerce, Justice, State Appro- operative. These are sound regulations. streets with lethal guns. priations bill to force the State Depart- The Department of Defense does not We also did not provide weapons to ment to allow these weapons to be im- sell its guns to private arms dealers. foreign governments so they could reap ported for any reason. That effort was Under the Arms Export Control Act, we a financial windfall at the expense of killed as part of the negotiations on should not allow foreign governments the taxpayer. Although the law could the catchall appropriations bill that to sell 2.5 million U.S. military weap- allow the United States Government to was signed into law on September 30. ons to private arms dealers either. receive the net proceeds of any sales The provision included in the Senate Flooding the market with these cu- made by foreign governments of de- version of the C, J, S appropriations rios and relics would only make it fense articles it received on a grant bill last year, section 621, would have harder for law enforcement to do its basis, the provision in the appropria- prohibited any agency of the Govern- job. The Bureau of Alcohol, Tobacco, tions bill last year would have forced ment—notwithstanding any other pro- and Firearms has already seen an in- the administration—notwithstanding vision of law—from using appropriated crease in M–1 carbines that have been any other law —to approve the import funds to deny an application for a per- converted to fully automatic machine license, even if a foreign government mit to import previously exported guns due to the availability and rel- would not agree to provide proceeds of United States-origin military firearms, atively low cost of the weapons. The the sale. As such, it would undermine parts, or ammunition that are consid- more military weapons there are in our government’s ability to require for- ered to be curios or relics. The provi- this country, the more likely they are eign governments to return proceeds to sion would have forced the State De- to fall into criminal hands. Surplus the United States and could result in a partment to allow large numbers of military weapons are usually cheap, windfall for foreign governments.

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00103 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S4236 CONGRESSIONAL RECORD — SENATE May 8, 1997 Even more, some countries like Viet- bling the weapon and reassembling the weap- porate alternative minimum tax re- nam, which hold a significant quantity on with a few additional parts. form; to the Committee on Finance. (6) An M1911 or M1911A pistol is easily con- of spoils of war weapons, including ‘‘cu- THE ALTERNATIVE MINIMUM TAX REFORM ACT cealable. OF 1997 rios or relics,’’ could sell those ‘‘spoils (7) At least 9 police officers have been mur- of war’’ to U.S. importers at a financial dered in the United States using M–1 Car- Mr. NICKLES. Mr. President, today I gain. And, the Government of Iran, bines or M1911 pistols in the past 7 years. join my colleague from West Virginia, which received more than 25,000 M–1911 (8) The importation of large numbers of Senator ROCKEFELLER, to introduce pistols from the United States Govern- ‘‘curio or relic’’ weapons would lower their legislation to reform the Alternative ment in the early 1970’s, could qualify cost, make them more readily available to Minimum Tax, or AMT. We are joined to export weapons to the United States criminals, and constitute a threat to public in this effort by 13 of our colleagues, safety and to law enforcement officers. at a financial gain as well. (9) The importation of these ‘‘curios or rel- including a total of 10 Finance Com- Allowing more than 2 million U.S.- ics’’ weapons could result in a financial mittee members. origin military weapons to enter the windfall for foreign governments. Congress created the AMT in 1986 to United States would profit a limited (10) In order to ensure that these weapons prevent businesses from using tax loop- number of arms importers. But it is are never permitted to be imported into the holes, such as the investment tax cred- not in the interest of the American United States, a provision of the Arms Ex- it or safe harbor leasing, to pay little people. I don’t believe private gun deal- port Control Act must be deleted. or no tax. The use of these tax pref- ers should have the ability to import SEC. 3. REMOVAL OF EXEMPTION FROM PROHIBI- erences sometimes resulted in compa- TION ON IMPORTS OF CERTAIN these weapons from foreign govern- FIREARMS AND AMMUNITION. nies reporting healthy ‘‘book’’ income ments. These weapons are not designed (a) REMOVAL OF EXEMPTION.—Section to their shareholders but little taxable for hunting or shooting competitions. 38(b)(1) of the Arms Export Control Act (22 income to the government. They are designed for war. Our own De- U.S.C. 2778(b)(1)) is amended by striking sub- Therefore, to create a perception of partment of Defense does not sell these paragraph (B), as added by section 8142(a) of fairness, Congress created the AMT. weapons on the commercial market for the Department of Defense Appropriations The AMT requires taxpayers to cal- profit. Why should we allow foreign Act, 1988 (contained in Public Law 100–202). culate their taxes once under regular (b) SAVINGS PROVISION.—The amendment countries to do so? made by subsection (a) shall not affect any tax rules, and again under AMT rules Mr. President, this bill would con- license issued before the date of the enact- which deny accelerated depreciation, firm the policy against importing these ment of this Act. net operating losses, foreign tax cred- lethal weapons by removing the ‘‘cu- SEC. 4. REPORT ON IMPORTS OF FOREIGN-MADE its, and other deductions and credits. rios or relics″ exception from the Arms SURPLUS MILITARY FIREARMS THAT The taxpayer then pays the higher Export Control Act. Under this legisla- ARE CURIOS OR RELICS amount, and the difference between tion, U.S. military weapons that the Not later than 1 year after the date of en- their AMT tax and their regular tax is U.S. Government has provided to for- actment of this Act, the Secretary of the Treasury, acting through the Bureau of Al- credited to offset future regular tax li- eign countries could not be imported to cohol, Tobacco and Firearms, shall submit a ability if it eventually falls below their the United States for sale in the United report to Congress on the scope and effect of AMT tax liability. States by gun dealers. If a foreign gov- the importation of foreign-made surplus Unfortunately, Mr. President, in the ernment had no use for surplus Amer- military firearms under section 925(e) of title real world the AMT has reached far be- ican military weapons, those weapons 18, United States Code. The report shall con- yond its original purpose. As it is cur- could be returned to the Armed Forces tain the following: rently structured, the AMT is a mas- of the United States or its allies, trans- (1) CURRENT IMPORTATION.—A list of types sive, complicated, parallel tax code and models of military firearms currently ferred to State or local law enforce- being imported into the United States as which places huge burdens on capital ment agencies in the United States, or ‘‘curios or relics’’ under section 925(e) of title intensive companies. Corporations destroyed. The legislation also asks the 18, United States Code, which would other- must now plan for and comply with Treasury Department to provide a wise be barred from importation as surplus two tax codes instead of one. Further, study on the importation of foreign- military firearms under section 925(d)(3) of the elimination of accelerated depre- manufactured surplus military weap- that title. ciation increases the cost of invest- ons. (2) IMPORTATION DURING PRECEDING 5 ment and makes U.S. businesses un- Mr. President, I ask unanimous con- YEARS.—A list of the number of each type competitive with foreign companies. sent that a copy of this legislation ap- and model listed under paragraph (1) that has been imported into the United States It makes little sense, Mr. President, pear in the RECORD, and I urge my col- during the 5 years preceding the date of sub- to allow a reasonable business deduc- leagues to support this legislation. mission of the report. tion under one tax code, and then take There being no objection, the bill was (3) EASE OF CONVERSION.—A description of it away through another tax code. Per- ordered to be printed in the RECORD, as the ease with which each type and model haps there are some bureaucrats who follows: listed under paragraph (1) may be converted believe regular tax depreciation is too S. 723 to a semi-automatic assault weapon as de- generous and should be curtailed, but Be it enacted by the Senate and House of Rep- fined in section 921(a)(30)(B) of that title or the AMT is an extremely complicated resentatives of the United States of America in to a fully automatic weapon. (4) INVOLVEMENT IN CRIMINAL ACTIVITIES.— and convoluted way to accomplish that Congress assembled, Statistics that may be relevant to the use goal. SECTION 1. SHORT TITLE. for criminal activities of each type and The legislation I am introducing This Act may be cited as the ‘‘Anti-Gun In- model of weapons listed in paragraph (1), in- today would correct this problem by al- vasion Act of 1997’’. cluding— lowing businesses to use the same de- SEC. 2. FINDINGS. (A) statistics involving the use of the preciation system for AMT purposes as Congress makes the following findings: weapons in homicides of law enforcement of- (1) Since 1950, the United States Govern- they use for regular tax purposes. This ficials; and ment has furnished to foreign governments (B) the number of firearm traces by the one simple reform removes the dis- at least 2,500,000 military firearms that are Bureau of Alcohol, Tobacco and Firearms incentive to invest in job-producing as- considered to be ‘‘curios or relics’’ under the that involved those weapons. sets and greatly simplifies compliance Gun Control Act of 1968. (5) COMPREHENSIVE EVALUATION.—A com- and reporting. In fact, this reform was (2) These firearms include more than prehensive evaluation of the scope of im- first suggested by President Clinton in 1,200,000 M–1 Carbine rifles and 250,000 M1911 ports under section 925(e) of that title and pistols of United States manufacture that 1993. the use of such weapons in crimes in the Further, my bill helps AMT tax- have been furnished to foreign governments ∑ United States. payers recover their AMT credits in a under United States foreign military assist- By Mr. NICKLES (for himself, Mr. ROCKE- ance grant, loan, or sales programs. FELLER, Mr. LOTT, Mr. BREAUX, Mr. HATCH, more reasonable timeframe than under (4) Criminals tend to use low-cost firearms Ms. MOSLEY-BRAUN, Mr. MURKOWSKI, Mr. current law. Many capital-intensive that are concealable, capable of accepting D’AMATO, Mr. GRAMM, Mr. MACK, Mr. LIEBER- businesses have become chronic AMT large-capacity magazines, or are capable of MAN, Mr. COCHRAN, Mr. BROWNBACK, Mr. ENZI taxpayers, a situation that was not being easily converted to fully automatic and Mr. HUTCHINSON): fire. contemplated when the AMT was cre- (5) An M–1 Carbine can be converted easily S. 724. A bill to amend the Internal ated. These companies continue to pay to a fully automatic weapon by disassem- Revenue Code of 1986 to provide cor- AMT year after year with no relief in

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00104 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY May 8, 1997 CONGRESSIONAL RECORD — SENATE S4237 sight, and as a matter of function they machinery, equipment and other assets. The permit businesses to use their AMT accumulate millions in unused AMT AMT significantly increases the cost of cap- credits more easily than under current credits. These credits are a tax on fu- ital and discourages investment in produc- law. It will help make it easier for U.S. ture, unearned revenues which may tivity-enhancing assets by negating many of businesses to compete and reduce the the capital formation incentives provided never materialize, and because of the under the regular tax system, most notably unintended inequity of current law. time-value of money their value to the accelerated depreciation. To make matters For several years, I have looked for taxpayer decreases every year. worse, many capital-intensive businesses an opportunity to fix the problems that Since Congress did not intend for the have been perpetually trapped in the AMT AMT creates especially for capital in- AMT to become a permanent tax sys- system, and unable to utilize their suspended tensive industries. Two years ago, I in- tem for certain taxpayers, my bill AMT credits. Furthermore, the AMT is ex- troduced my own bill to reform the as- would allow chronic AMT taxpayers to tremely complex, burdensome and expensive pects of AMT that I believe are most use AMT credits which are 5-years-old to comply with. detrimental to businesses for which or older to offset up to 50 percent of Your legislation addresses many of the AMT is frequently their method of tax problems of the current AMT and its passage their current-year tentative minimum will spur capital investment, help businesses payment. Unfortunately, with the con- tax. This provision will help chronic to sustain long-term grown and create jobs. troversies and difficulties that made it AMT taxpayers dig their way out of Recent analysis by Data Resources, Inc. impossible to enact a budget plan in the AMT and allow them to recoup at demonstrates that your reform bill will re- the last Congress, there was no ability least a portion of these accelerated tax sult in an increase in GDP of 1.6 percent, the to move that effort forward. payments in a reasonable manner and creation of 100,000 new jobs each year, and an This year, I am pleased to work with time-frame. increase in worker productivity of about 1.6 Senator NICKLES to make the AMT Mr. President, as the Senate begins percent. fairer. I hope this means we have a real working out the details of the recent Thank you for introducing this important legislation, and we look forward to working chance of working together in a bipar- bipartisan budget accord and the re- with you for its passage. tisan manner to compel Congress, the sulting tax bill, I hope we will not for- Sincerely, Finance Committee in particular, to get the importance of savings and in- R. BRUCE JOSTEN. figure out a way to deal with some of vestment. In that regard, there are few the unintended consequences of AMT tax code changes we could make which STATEMENT OF NATIONAL ASSOCIATION OF as part of this year’s budget deal. I are more important than eliminating MANUFACTURERS think previous efforts at AMT reform the investment disincentives created NAM CALLS THE ALTERNATIVE MINIMUM TAX have failed in the part because it is by the AMT. THE ‘‘ANTI-MANFACTURING TAX’’ very tough to focus on the merits of Does my legislation fix all of the Urges Support of AMT Reform Legislation certain corporate tax changes. That re- AMT’s problems? No, it does not. This WASHINGTON, DC., MAY 8, 1997.—Calling the mains true today in the context of a bill specifically addresses the deprecia- alternative minimum tax (AMT) a disincen- larger budget agreement, but if we tion adjustment, but there are many tive for capital investment and job creation, the National Association of Manufacturers keep our perspective, I think AMT re- other AMT adjustments, preferences, form will win support on its merits and and limitations which are unchanged. urged lawmakers to support AMT reform leg- islation introduced today by Senators DON Congress can responsibly find a way to Some of these, such as the 90-percent NICKLES (R-OK) and JOHN D. ROCKFELLER (D- finance it. net operating loss limitation and the WV). I am well aware of the fact that as we foreign tax credit limitation, are very ‘‘The alternative minimum tax is a fun- introduce this legislation, there is no damaging to business profitability and damentally flawed, counter-productive tax specific provision for AMT relief in the competitiveness. I hope all these issues that stifles the creation of high-skilled, budget deal which the President and high-paying manufacturing jobs,’’ said Gil will be examined when the Senate Fi- Congressional leadership have struck nance Committee considers AMT re- Thurm, vice president taxation and eco- nomic policy, in support of the reform bill. in outline form. As I have noted, the form. ‘‘It’s little wonder that many believe that constraints of balancing the budget Mr. President, I ask unanimous con- AMT really stands for ‘Anti-Manufacturing will require us to carefully examine sent that there appear in the RECORD a Tax.’ ’’ how much AMT relief is practical this list of the original cosponsors of this The legislation substantially reforms the year, as part of an agreement to bal- legislation, as well as statements of AMT to allow businesses to use the same de- ance the budget over the next 5 years. support by the U.S. Chamber of Com- preciation rules for AMT purposes as they I understand that very well, as does use for their regular tax depreciation rules. merce and the National Association of Senator NICKLES. I think that means Manufacturers. I encourage my col- It also allows AMT taxpayers to recover their existing tax credits quicker than under we will have to zero in on the aspects leagues to join Senator ROCKEFELLER current law. of AMT relief that are most doable this and me in this important initiative. ‘‘No other industrialized country imposes year—and which can be financed with- There being no objection, the mate- such a penalty tax on investment made by out harming other priorities. I am pre- rial was ordered to be printed in the capital intensive companies. Furthermore, pared to do that and recognize that it RECORD, as follows: when businesses report little or no profit, also means the scope of the AMT bill they are still frequently required to pay the ALTERNATIVE MINIMUM TAX REFORM ACT we submit today will have to be tai- COSPONSORS, 105TH CONGRESS AMT,’’ said Thurm. lored accordingly. That does not mean (15 total, 10 from Committee on Finance) ‘‘Substantially reforming the alternative minimum tax will result in greater economic that we should put off AMT relief for Sponsor: NICKLES. growth by creating thousands of new jobs, another day, it just means we will have Cosponsors: ROCKEFELLER, LOTT, BREAUX, stronger growth in GDP, increased produc- HATCH, MOSELEY-BRAUN, MURKOWSKI, to be honest about what is critical to tivity and improved cash flow, especially for D’AMATO, GRAMM, MACK, LIEBERMAN, COCH- do and what portions of this bill will those companies that have been penalized RAN, BROWNBACK, ENZI, and HUTCHINSON. have to remain on the to-do list. I say the most under the AMT,’’ according to all this because it is important to un- CHAMBER OF COMMERCE OF THE Thurm. The NAM continues to lead a coalition of derstand the context for our intro- UNITED STATES OF AMERICA, ducing this relief bill now, and as the Washington, DC, May 8, 1997. more than 100 companies and associations in support of complete repeal of the AMT. How- budget agreement places some high Hon. DON NICKLES, Assistant Majority Leader, U.S. Senate, Wash- ever, absent complete repeal, the AMT Coali- hurdles on what can realistically be ac- ington, DC. tion for Economic Growth supports sub- complished. DEAR SENATOR NICKLES: The U.S. Chamber stantive AMT reform. I also would like to say that it is my of Commerce—the world’s largest business ∑ Mr. ROCKEFELLER. Mr. President, I strong belief that the excruciating spe- federation representing an underlying mem- am pleased to join my Senate Finance cifics of the budget agreement which bership of more than three million busi- Committee colleague, Senator NICKLES, relate to matters under the jurisdic- nesses and organizations of every size, sec- in introducing an Alternative Min- tion of the Finance Committee are best tor, and region—supports your legislation to imum Tax [AMT] reform bill. Our bill left to the expertise on that Com- reform the Alternative Minimum Tax (AMT). will: first, allow businesses to use the mittee. The Finance Committee serves The current AMT system unfairly penal- same depreciation system for AMT as an extremely important role in the leg- izes businesses that invest heavily in plant, they do under regular tax, and second, islative process. That role cannot and

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00105 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S4238 CONGRESSIONAL RECORD — SENATE May 8, 1997 should not be supplanted by private ne- tax payers who have not used their ac- It is appropriate for the Federal Gov- gotiations between the administration cumulated minimum tax credits which ernment to shed the Collbran project and congressional leadership—however are at least 5 years old to use those at this time because the goals of the worthwhile the overall purpose. Reach- credits to offset up to 50 percent of project have been met. The project, ing consensus on the approach to bal- their current year AMT liability—with completed in 1964, provides a reliable ancing the budget and protecting prior- a provision to ensure that taxpayers supply of irrigation water to the users ities of the administration and both could not reduce their current payment on the arid west slope of Colorado. This sides of the aisle in congressional lead- below their regular tax liability for project is the main water supplier for a ership provides the Finance Committee that year. growing population in the Grand Val- with the framework for its detailed AMT has become the standard meth- ley, currently serving over 55,000 peo- work. The Finance Committee will od of tax payment for many of our Na- ple. It also provides electric power to soon have to work its will within the tion’s capital intensive industries and the grid that serves several Western appropriate parameters of its reconcili- it is not working the way Congress ini- States. ation instructions. When that happens, tially intended. It’s time to fix it. It is also time now to transfer the I think the committee must address The bill Senator NICKLES and I sub- Collbran project because, as the Bureau AMT relief, and I intend to work to mit for your consideration today will of Reclamation has acknowledged, due build support for it as we wend our way fix the AMT so it works the way I be- to unanticipated circumstances this through the committee process. lieve Congress originally intended. It project has been a net-cash drain on Let me return to the substance of the will have the consequence of improving the Treasury. The Ute Water Conser- bill we submit for our colleagues’ con- the competitiveness of American busi- vancy District, the public entity that sideration today. First, I want to make ness. It is time to stop talking about will purchase the project, will pay the it absolutely clear—this bill does not AMT and do something that figures out remaining debt on the project, reim- repeal AMT. AMT has created during how to address this real problem. I bursing the Government completely, the 1986 Tax Reform Act in response to urge my colleagues to cosponsor this returning over $12 million to the Fed- the problem raised when companies legislation and work with me and my eral Treasury. It is time for the Gov- would report profits to stockholders Finance Committee colleagues to find ernment to stand aside. and yet claim losses to the IRS. How- a way to act on this important issue in Let me stress that this transfer will ∑ ever, in an effort to simplify the code this year’s budget bill. not in any way jeopardize any of the depreciation under AMT was treated as By Mr. CAMPBELL: recreation opportunities available in an adjustment—which amounts to an S. 725. A bill to direct the Secretary Vega Reservoir and related Collbran increase in income. This penalizes low- of the Interior to convey the Collbran project reservoirs. In fact, this legisla- profit, capital intensive companies, Reclamation Project to the Ute Water tion will transfer the Vega Reservoir like steel companies. Compared to Conservancy District and the Collbran from the Federal Government to the other countries, after 5 years, a U.S. Conservancy District; to the Com- State of Colorado, ensuring continued steelmaker under AMT recovers only 37 mittee on Energy and Natural Re- recreation opportunities there. This percent of its investment in a new sources. bill also preserves all water and power plant and equipment. The recovery of THE COLLBRAN PROJECT UNIT CONVEYANCE ACT operations of the existing Collbran investment in other countries is much ∑ Mr. CAMPBELL. Mr. President, project. higher—for example, in Japan it’s 58 today I reintroduce legislation to I also want to emphasize that we percent, in Germany companies recover transfer the Collbran project from the have striven to accommodate environ- 81 percent, Korea is 90 percent, and in Federal Government back to the people mental groups’ concerns. Although Brazil it’s 100 percent. it serves. The bill is designed with only there is no reason to think that a mere The problem is not unique to the one goal in mind, to guarantee the transfer of ownership, without affect- steel industry though. Other capital-in- growing population in the Grand Val- ing the operations, should require the tensive industries that also have long- ley of Colorado a supply of water that water district to perform an environ- lived assets lose under the current they have relied on for the last 30 mental impact statement under the AMT. The chemical industry has 91⁄2 years. National Environmental Policy Act, I years to depreciate under the AMT, as At the same time, this legislation have accommodated the environmental opposed to 5 years under the regular will be a model for transitioning the community’s requests and eliminated tax. And for paper, they have 13 years Federal Government out of the daily any reference to NEPA. In this way, I to depreciate under the AMT, as op- operations of facilities where its useful have ensured that the transfer will posed to 7 years under the regular tax. participation has ceased. This transfer fully comply with all environmental We need to fix the AMT so that indus- will also be an important and symbolic laws. tries with very high capital costs step in downsizing the Federal Govern- Finally, as a symbol of the Ute Water which they cannot recover for years ment, returning power to the States Conservancy’s good faith, this bill ex- are not put at such a disadvantage. and localities, while contributing to plicitly requires that the conservancy Today’s AMT discourages investment our continuing efforts to balance the district contributes $600,000 to the Col- in new plants and equipment, while Federal budget. orado River Endangered Fish Recovery under our regular tax system deprecia- The Western slope of Colorado, like Program and that the project itself tion investments are encouraged. The the rest of the Colorado Plateau, has a will remain subject to future ESA-re- need to improve our tax system to unique blend of rich natural resources lated obligations that could be imposed make it fairer to capital intensive in- and beautiful scenery. This fortunate on similar projects. dustries is clear—fixing the AMT is one combination attracts and sustains a Again, the object of this legislation way to do that. strong economy of both industry and is merely to ensure a reliable supply of U.S. companies have to be able to tourism. Much of this booming eco- quality water for the residents of the compete in an increasingly competitive nomic development and recreational Grand Valley who have depended upon global market—that’s almost an adage. opportunities would not exist if not for this supply for the last 30 years. This It’s what our trade laws and agree- the water and electricity provided by bill proposes a fiscally and environ- ments seek to ensure. We’ll never be the various Federal reclamation mentally sound and sensible transfer of able to sufficiently promote U.S. ex- projects in the West. These projects an existing Federal project to the peo- ports if we don’t being to equalize the were authorized in the Federal Rec- ple it serves. effects of our tax laws on American lamation Act in 1902 by a visionary I look forward to working with all in- companies as well. Congress which saw the need and im- terested parties as this bill proceeds. I This bill would eliminate deprecia- portance of water projects to the devel- urge my colleagues to join me and sup- tion as an adjustment under AMT— opment of the West. Without such port this bill. treating AMT taxpayers the same as projects, there would be virtually no Thank you, Mr. President. I ask those companies that pay under our farming, mining, or ranching and little unanimous consent that the bill be regular tax system. It would also allow tourism. printed in the RECORD.

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00106 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY May 8, 1997 CONGRESSIONAL RECORD — SENATE S4239 There being no objection, the bill was age and delivery facilities, together with an Secretary shall grant to the Districts, sub- ordered to be printed in the RECORD, as easement for public access for recreational ject only to the requirements of this sec- follows: purposes to Vega Reservoir and the water tion— surface of Vega Reservoir and for construc- (A) a nonexclusive easement on and across S. 725 tion, operation, maintenance, and replace- land administered by agencies within the De- Be it enacted by the Senate and House of Rep- ment of facilities for recreational purposes partment of the Interior for ingress and resentatives of the United States of America in below the high water line; and egress on access routes to and along the Congress assembled, (C) improvements constructed or added Southside Canal in existence on the date of SECTION 1. SHORT TITLE. under the agreements referred to in section enactment of this Act; and This Act may be cited as the ‘‘Collbran 3(f). (B) a nonexclusive easement for the oper- Project Unit Conveyance Act’’. (5) SECRETARY.—The term ‘‘Secretary’’ ation, use, maintenance, repair, and replace- SEC. 2. DEFINITIONS. means the Secretary of the Interior. ment of the Southside Canal, subject to the In this Act: SEC. 3. CONVEYANCE. requirement that the Districts shall provide (1) DISTRICT.—The term ‘‘District’’ means (a) IN GENERAL.— reasonable notice to and the opportunity for the Ute Water Conservancy District and the (1) CONVEYANCE TO DISTRICTS.— consultation with the designated representa- Collbran Conservancy District (including (A) IN GENERAL.—On or before the date tive of the Secretary for nonroutine, non- their successors and assigns), which are po- that is 1 year after the date of enactment of emergency activities that occur on the ease- litical subdivisions of the State of Colorado. this Act, the Secretary shall convey to the ments. (2) FEDERAL RECLAMATION LAWS.—The term Districts all right, title, and interest of the (b) RESERVATION.— ‘‘Federal reclamation laws’’ means the Act United States in and to the project by quit- (1) IN GENERAL.—The conveyance of ease- of June 17, 1902, and Acts amendatory thereof claim deed and bill of sale, without warran- ments under subsection (a) shall reserve to or supplementary thereto (32 Stat. 388, chap- ties, subject only to the requirements of this the United States all minerals (including hy- ter 1093; 43 U.S.C. 371 et seq.) (including regu- Act. drocarbons) and a perpetual right of public lations adopted under those Acts). (B) ACTION PENDING CONVEYANCE.—Until access over, across, under, and to the por- (3) PROJECT.—The term ‘‘project’’ means the conveyance under subparagraph (A) oc- tions of the project that on the date of en- the Collbran Reclamation project, as con- curs, the Director of the Bureau of Reclama- actment of this Act were open to public use structed and operated under the Act of July tion shall continue to exercise the responsi- for fishing, boating, hunting, and other out- 3, 1952 (66 Stat. 325, chapter 565), including all bility to provide for the operation, mainte- door recreation purposes and other public property, equipment, and assets of or relat- nance, repair, and replacement of project fa- uses such as grazing, mineral development, ing to the project that are owned by the cilities and the storage reservoirs on the and logging. United States, including— Grand Mesa to the extent that the responsi- (2) RECREATIONAL ACTIVITIES.—The United (A) Vega Dam and Reservoir (but not in- bility is the responsibility of the Bureau of States may allow for continued public use cluding the Vega Recreation Facilities); Reclamation and has not been delegated to and enjoyment of such portions of the (B) Leon-Park dams and feeder canal; the Districts before the date of enactment of project for recreational activities and other (C) Southside Canal; this Act or is delegated or transferred to the public uses as are conducted as of the date of (D) East Fork diversion dam and feeder Districts by agreement after that date, so enactment of this Act. canal; that at the time of the conveyance the facili- (c) CONVEYANCE TO STATE OF COLORADO.— (E) Bonham-Cottonwood pipeline; ties are in the same condition as, or better All right, title, and interest in the Vega (F) Snowcat shed and diesel storage; condition than, the condition of the facilities Recreation Facilities shall remain in the (G) Upper Molina penstock and power on the date of enactment of this Act. United States until the terms of the agree- plant; (2) EASEMENTS ON NATIONAL FOREST SYSTEM ments referred to in subsection (f) have been (H) Lower Molina penstock and power LANDS.— fulfilled by the United States, at which time plant; (A) IN GENERAL.—On or before the date all right, title, and interest in the Vega (I) the diversion structure in the tailrace that is 1 year after the date of enactment of Recreation Facilities shall be conveyed by of the Lower Molina power plant; this Act, the Secretary of Agriculture shall the Secretary to the State of Colorado, Divi- (J) all substations and switchyards; grant, subject only to the requirements of sion of Parks and Outdoor Recreation. (K) a nonexclusive easement for the use of this section— (d) PAYMENT.— existing easements or rights-of-way owned (i) a nonexclusive easement on and across (1) IN GENERAL.—At the time of the convey- by the United States on or across non-Fed- National Forest System land to the Districts ance under subsection (a)(1), the Districts eral land that are necessary for access to for ingress and egress on access routes in ex- shall pay to the United States $12,900,000 project facilities; istence on the date of enactment of this Act ($12,300,000 of which represents the net (L) title to land reasonably necessary for to each component of the project and storage present value of the outstanding repayment all project facilities (except land described in reservoir on the Grand Mesa in existence on obligations for the project), of which— subparagraph (K) or paragraph (1) or (2) of the date of enactment of this Act that is op- (A) $12,300,000 shall be deposited in the gen- section 3(a)); erated as part of the project; eral fund of the Treasury of the United (M) all permits and contract rights held by (ii) a nonexclusive easement on National States; and the Bureau of Reclamation, including con- Forest System land for the operation, use, (B) $600,000 shall be deposited in a special tract or other rights relating to the oper- maintenance, repair, and replacement (but account in the Treasury of the United States ation, use, maintenance, repair, or replace- not enlargement) of the storage reservoirs on and shall be available to the United States ment of the water storage reservoirs located the Grand Mesa in existence on the date of Fish and Wildlife Service, Region 6, without on the Grand Mesa that are operated as part enactment of this Act to the owners and op- further Act of appropriation, for use in fund- of the project; erators of the reservoirs that are operated as ing Colorado operations and capital expendi- (N) all equipment, parts inventories, and a part of the project; and tures associated with the Grand Valley tools; (iii) a nonexclusive easement to the Dis- Water Management Project for the purpose (O) all additions, replacements, better- tricts for the operation, use, maintenance, of recovering endangered fish in the Upper ments, and appurtenances to any of the land, repair, and replacement (but not enlarge- Colorado River Basin, as identified in the Re- interests in land, or facilities described in ment) of the components of project facilities covery Implementation Program for Endan- subparagraphs (A) through (N); and that are located on National Forest System gered Fish Species in the Upper Colorado (P) a copy of all data, plans, designs, re- land, subject to the requirement that the River Basin, or such other component of the ports, records, or other materials, whether in Districts shall provide reasonable notice to Recovery Implementation Program within writing or in any form of electronic storage, and the opportunity for consultation with Colorado as may be selected with the concur- relating specifically to the project. the designated representative of the Sec- rence of the Governor of the State of Colo- (4) VEGA RECREATION FACILITIES.—The term retary of Agriculture for nonroutine, non- rado. ‘‘Vega Recreation Facilities’’ includes— emergency activities that occur on the ease- (2) SOURCE OF FUNDS.—Funds for the pay- (A) buildings, campgrounds, picnic areas, ments. ment to the extent of the amount specified parking lots, fences, boat docks and ramps, (B) EXERCISE OF EASEMENT.—The easement in paragraph (1) shall not be derived from the electrical lines, water and sewer systems, under subparagraph (A)(ii) may be exercised issuance or sale, prior to the conveyance, of trash and toilet facilities, roads and trails, if the land use authorizations for the storage State or local bonds the interest on which is and other structures and equipment used for reservoirs described in subparagraph (A)(ii) exempt from taxation under section 103 of State park purposes (such as recreation, are restricted, terminated, relinquished, or the Internal Revenue Code of 1986. maintenance, and daily and overnight visitor abandoned, and the easement shall not be (e) OPERATION OF PROJECT.— use), at and near Vega Reservoir; subject to conditions or requirements that (1) IN GENERAL.— (B) lands above the high water level of interfere with or limit the use of the res- (A) DECLARATION.—The project was author- Vega Reservoir within the area previously ervoirs for water supply or power purposes. ized and constructed under the Act of July 3, defined by the Secretary as the ‘‘Reservoir (3) EASEMENTS TO DISTRICTS FOR SOUTHSIDE 1952 (66 Stat. 325, chapter 565) for the purpose Area Boundary’’ that have not historically CANAL.—On or before the date that is 1 year of placing water to beneficial use for author- been utilized for Collbran project water stor- after the date of enactment of this Act, the ized purposes within the State of Colorado.

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(B) OPERATION.—The project shall be oper- may occur at a rate less than a rate estab- (iv) the Endangered Species Act of 1973 (16 ated and used by the Districts for a period of lished under subparagraph (B) unless the U.S.C. 1531 et seq.); 40 years after the date of enactment of this power is offered at the lesser rate first to (v) the Wild and Scenic Rivers Act (16 Act for the purpose for which the project was Western and second to the SLCAIP pref- U.S.C. 1271 et seq.); authorized. erence customers. (vi) the Federal Water Pollution Control (C) CHANGES IN OPERATION.—The Districts (B) RATE.—The rate for power initially of- Act (commonly known as the ‘‘Clean Water shall attempt, to the extent practicable, tak- fered to Western and the SLCAIP preference Act’’) (33 U.S.C. 1251 et seq.); ing into consideration historic project oper- customers under this paragraph shall not ex- (vii) the National Historic Preservation ations, to notify the State of Colorado of ceed that required to produce revenues suffi- Act (16 U.S.C. 470 et seq.); changes in historic project operations which cient to provide for— (viii) the Coastal Zone Management Act of may adversely affect State park operations. (i) annual debt service or recoupment of 1972 (16 U.S.C. 1451 et seq.); (2) REQUIREMENTS.—During the 40-year pe- the cost of capital for the amount specified (ix) the Fish and Wildlife Coordination Act riod described in paragraph (1)(B)— in section 3(d)(1)(A) less the sum of $310,000 (16 U.S.C. 661 et seq.); or (A) the Districts shall annually submit to (which is the net present value of the out- (x) any other Act otherwise applicable to the Secretary of Agriculture and the Colo- standing repayment obligation of the the licensing of the project. rado Department of Natural Resources a Collbran Conservancy District); and (3) LAWS ENACTED AFTER ISSUANCE OF LI- plan for operation of the project, which plan (ii) the cost of operation, maintenance, and CENSE.—The operation of the project shall be shall— replacement of the power component of the subject to all applicable State and Federal (i) report on project operations for the pre- project. laws enacted after the date of issuance of the vious year; (C) DETERMINATION OF COSTS AND RATE.— license under subsection (a). (ii) provide a description of the manner of Costs and a rate under subparagraph (B) (c) LICENSING STANDARDS.—The license project operations anticipated for the forth- shall be determined in a manner that is con- under subsection (a) is deemed to meet all li- coming year, which shall be prepared after sistent with the principles followed, as of the censing standards of the Federal Power Act consultation with the designated representa- date of enactment of this Act, by the Sec- (16 U.S.C. 791 et seq.). (d) POWER SITE RESERVATION.—Any power tives of the Secretary of Agriculture, the retary and by Western in its annual power site reservation established under section 24 Board of County Commissioners of Mesa and repayment study. SEC. 5. LICENSE. of the Federal Power Act (16 U.S.C. 818) or County, Colorado, and the Colorado Depart- any other law that exists on any land, ment of Natural Resources; and (a) IN GENERAL.—Before conveyance of the project to the Districts, the Federal Energy whether federally or privately owned, that is (iii) certify that the Districts have oper- included within the boundaries of the project ated and will operate and maintain the Regulatory Commission shall issue to the Districts a license or licenses as appropriate shall be vacated by operation of law on project facilities in accordance with sound issuance of the license for the project. engineering practices; and under part I of the Federal Power Act (16 U.S.C. 791 et seq.) authorizing for a term of (e) EXPIRATION OF LICENSE.—All require- (B) subject to section 4, all electric power ments of part I of the Federal Power Act (16 generated by operation of the project shall 40 years the continued operation and mainte- nance of the power component of the project. U.S.C. 791 et seq.) and of any other Act appli- be made available to and be marketed by the (b) TERMS OF LICENSE.— cable to the licensing of a hydroelectric Western Area Power Administration. (1) IN GENERAL.—The license under sub- project shall apply to the project on expira- GREEMENTS.—Conveyance of the (f) A section (a)— tion of the license issued under this section. project shall be subject to the agreements (A) shall be for the purpose of operating, SEC. 6. INAPPLICABILITY OF PRIOR AGREE- between the United States and the State of using, maintaining, repairing, and replacing MENTS AND OF FEDERAL RECLAMA- TION LAWS. Colorado dated August 22, 1994, and Sep- the power component of the project as au- On conveyance of the project to the Dis- tember 23, 1994, relating to the construction thorized by the Act of July 3, 1952 (66 Stat. tricts— and operation of recreational facilities at 325, chapter 565); (1) the repayment contract dated May 27, Vega Reservoir, which agreements shall con- (B) shall be subject to the condition that 1957, as amended April 12, 1962, between the tinue to be performed by the parties to the the power component of the project continue Collbran Conservancy District and the agreements according to the terms of the to be operated and maintained in accordance United States, and the contract for use of agreements. with the authorized purposes of the project; project facilities for diversion of water dated SEC. 4. OPERATION OF THE POWER COMPONENT. and January 11, 1962, as amended November 10, (a) CONFORMITY TO HISTORIC OPERATIONS.— (C) shall be subject to part I of the Federal 1977, between the Ute Water Conservancy The power component and facilities of the Power Act (16 U.S.C. 791 et seq.) except as District and the United States, shall be ter- project shall be operated in substantial con- stated in paragraph (2). minated and of no further force or effect; and formity with the historic operations of the (2) LAWS NOT APPLICABLE.— (2) the project shall no longer be subject to power component and facilities (including (A) FEDERAL POWER ACT.— or governed by the Federal reclamation laws. recent operations in a peaking mode). (i) IN GENERAL.—The license under sub- SEC. 7. LIABILITY OF THE DISTRICTS. (b) POWER MARKETING.— section (a) shall not be subject to the fol- The Districts shall be liable, to the extent (1) EXISTING MARKETING ARRANGEMENT.— lowing provisions of the Federal Power Act: allowed under State law, for all acts or omis- The post-1989 marketing criteria, which pro- the 4 provisos of section 4(e) (16 U.S.C. sions relating to the operation and use of the vide for the marketing of power generated by 797(e)); section 6 (16 U.S.C. 799) to the extent project by the Districts that occur subse- the power component of the project as part that the section requires acceptance by a li- quent to the conveyance under section 3(a), of the output of the Salt Lake City area in- censee of terms and conditions of the Act including damage to any Federal land or fa- tegrated projects, shall no longer be binding that this subsection waives; subsection (e) cility that results from the failure of a on the project upon conveyance of the (insofar as the subsection concerns annual project facility. project under section 3(a). charges for the use and occupancy of Federal SEC. 8. EFFECT ON STATE LAW. (2) AFTER TERMINATION OF EXISTING MAR- lands and facilities), (f), or (j) of section 10 Nothing in this Act impairs the effective- KETING ARRANGEMENT.— (16 U.S.C. 803); section 18 (16 U.S.C. 811); sec- ness of any State or local law (including a (A) IN GENERAL.— tion 19 (16 U.S.C. 812); section 20 (16 U.S.C. regulation) relating to land use. IRST OFFER (i) F .—After the conveyance 813); or section 22 (16 U.S.C. 815). SEC. 9. TREATMENT OF SALES FOR PURPOSES OF under section 3(a), the Districts shall offer (ii) NOT A GOVERNMENT DAM.—Notwith- CERTAIN LAWS. all power produced by the power component standing that any dam under the license The sales of assets under this subchapter of the project to the Western Area Power Ad- under subsection (a) may have been con- shall not be considered to be a disposal of ministration or its successors or assigns (re- structed by the United States for Govern- Federal surplus property under— ferred to in this paragraph as ‘‘Western’’), ment purposes, the dam shall not be consid- (1) section 203 of the Federal Property and which, in consultation with its affected pref- ered to be a Government dam, as that term Administrative Services Act of 1949 (40 erence customers, shall have the first right is defined in section 3 of the Federal Power U.S.C. 484); or to purchase such power at the rates estab- Act (16 U.S.C. 796). (2) section 13 of the Surplus Property Act lished under subparagraph (B). (iii) STANDARD FORM LICENSE CONDITIONS.— of 1944 (50 U.S.C. App. 1622).∑ (ii) SECOND OFFER.—If Western declines to The license under subsection (a) shall not be purchase the power after consultation with subject to the standard ‘‘L-Form’’ license By Mrs. FEINSTEIN (for herself, its affected preference customers, the power conditions published at 54 FPC 1792–1928 Mr. GRAHAM, Mrs. BOXER, Ms. shall be offered at the same rates first to (1975). SNOWE, Mr. REID, Mr. JOHNSON, Western’s preference customers located in (B) OTHER LAWS.—The license under sub- Ms. MOSELEY-BRAUN, Ms. LAN- the Salt Lake City area integrated projects section (a) shall not be subject to— DRIEU, Mr. HARKIN, Mr. marketing area (referred to in this para- (i) the Federal Land Policy and Manage- graph as the ‘‘SLCAIP preference cus- ment Act of 1976 (43 U.S.C. 1701 et seq.); D’AMATO, Mr. SPECTER, Mrs. tomers’’). (ii) section 2402 of the Energy Policy Act of MURRAY, and Mr. MACK): (iii) OTHER OFFERS.—After offers have been 1992 (16 U.S.C. 797c); S. 726. A bill to allow postal patrons made under clauses (i) and (ii), power may be (iii) the National Environmental Policy to contribute to funding for breast can- sold to any other party, but no such sale Act of 1969 (42 U.S.C. 4321 et seq.); cer research through the voluntary

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00108 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY May 8, 1997 CONGRESSIONAL RECORD — SENATE S4241 purchase of certain specially issued Most alarming is the rapidly dimin- Watson and California State United States postage stamps; to the ishing grant funding available for new Assemblywoman Dede Alpert as well as Committee on Governmental Affairs. researcher applicants. the Public Employees Union, San Joa- THE BREAST CANCER RESEARCH STAMP ACT In real numbers, the National Cancer quin Public Employees Association, ∑ Mrs. FEINSTEIN. Mr. President, I, Institute will fund approximately 3,600 and Sutter and Yuba County Employ- along with Senators BOXER, GRAHAM, research projects, of which about 1,000 ees Association and many more on the SNOWE, MOSELEY-BRAUN, LANDRIEU, are new, previously unfunded activi- attached list. HARKIN, SPECTER, D’AMATO, MACK, ties. For investigator-initiated re- Given the intense competition for JOHNSON, REID, and MURRAY would like search, only 600 out of 1,900 research Federal research funds in a climate of to introduce the Breast Cancer Re- projects will be new. shrinking budgets, the Breast Cancer search Stamp Act. The United States is privileged to Research Stamp Act would allow any- In a time of shrinking budgets and have some of the most talented sci- one who uses the postal service to con- resources for breast cancer research, entists and many of the leading cancer tribute in finding a cure for the breast this legislation would provide an inno- research centers in the world such as cancer epidemic. vative way to provide additional fund- UCLA, UC San Francisco, Memorial In a sense, this particular proposal is ing for breast cancer research. Sloan-Kettering, and the M.D. Ander- a pilot. I recognize that the postal This bill would: authorize the U.S. son. service may oppose this since it hasn’t Postal Service to issue an optional spe- This lack of increase in funding is been done before. I also recognize that cial first class stamp to be priced at 1 starving some of the most important in a day of diminishing federal re- cent above the cost of normal first- research, because scientists will have sources, this innovation is an idea class postage; earmark a penny of to look elsewhere for their livelihood. whose time has come. every stamp for breast cancer research; The U.S. must increase the research It will make money for the post of- provide administrative costs from the funds if these scientists and institu- fice and for breast cancer research. No revenues for post office expenses; allow tions are to continue to contribute one is forced to buy it, but women’s or- 100 percent of the proceeds from the their vast talents to the war on cancer ganizations may even wish to sell the stamp to fund HHS breast cancer re- and finding a cure. stamps in a fundraising effort. search projects; clarify current law, in What is clear is that there is a direct The administrative costs can be han- that any similar stamp would require correlation between increase in re- dled with the 1 cent added on to the an act of Congress to be issued in the search funding and the likelihood of cost of a first class stamp and conserv- future. finding a cure. atively it can make from $60 million If only 10 percent of all first class Cancer mortality has declined by 15 per year for breast cancer research. mail used this optional 33 cent stamp, percent from 1950 to 1992 due to in- We need to find a cure for breast can- $60 million could be raised for breast creases in cancer research funding. In cer and I believe the Breast Cancer Re- cancer research annually. fact, federally-funded cancer research There is wide support for this legisla- search Stamp Act is an innovative re- has yielded vast amounts of knowledge sponse to the hidden epidemic among tion. Congressman FAZIO, along with about the disease—information which women. I urge my colleagues to sup- over 100 cosponsors have already intro- is guiding our efforts to improve treat- duced the companion bill (H.R. 407) in port this important legislation. ment and search for a cure. We have Mr. President, I ask unanimous con- the House. more knowledge and improvements in The breast cancer epidemic has been sent that additional material be print- prevention through: identification of a called this Nation’s best kept secret. ed in the RECORD. ‘‘cancer gene’’, use of mammographies, There are 2.6 million women in Amer- There being no objection, the mate- clinical exams, and encouragement of ica today with breast cancer, one mil- rial was ordered to be printed in the self breast exams. Yet there is still no lion of whom have yet to be diagnosed RECORD, as follows: cure. with the disease. S. 726 The Bay Area has one of the highest In 1996, an estimated 184,000 were di- Be it enacted by the Senate and House of Rep- rates of breast cancer incidence and agnosed with breast cancer. It is the resentatives of the United States of America in number one killer of women ages 40 to mortality in the world. According to Congress assembled, data given to my staff by the Northern 44 and the leading cause of cancer SECITON 1. SHORT TITLE. death in women ages 15 to 54, claiming California Cancer Center, Bay Area This Act may be cited as the ‘‘Breast-Can- a woman’s life every 12 minutes in this white women have the highest reported cer Research Stamp Act’’. country (source: National Breast Can- breast cancer rate in the world, 104 per SEC. 2. SPECIAL POSTAGE STAMPS. cer Coalition). 100,000 population. Bay Area African- (a) IN GENERAL.—In order to afford the For California, 17,100 women were di- American women have the fourth high- public a convenient way to contribute to agnosed with breast cancer and 4,100 est reported rate in the world at 82 per funding for breast-cancer research, the women will die from the disease 100,000 (source: Northern California United States Postal Service shall establish a special rate of postage for first-class mail (source: American Cancer Society can- Cancer Center). I want to recognize Dr. Balazs (Ernie) under this section. cer facts and figures, 1996). (b) HIGHER RATE.—The rate of postage es- In addition to the cost of women’s Bodai who suggested this innovative tablished under this section— lives, the annual cost of treatment of funding approach. Dr. Bodai is the (1) shall be 1 cent higher than the rate that breast cancer in the United States is Chief of the Surgery Department at the would otherwise apply; approximately $10 billion. Kaiser Permanente Medical Group in (2) may be established without regard to Over the last 25 years, the National Sacramento, California. He is the any procedures under chapter 36 of title 39, Institutes of Health has spent over founder of Cure Cancer Now, which is a United States Code, and notwithstanding $31.5 billion on cancer research—$2 bil- nonprofit organization committed to any other provision of law; and lion of that on breast cancer. In the developing a funding source for breast (3) shall be offered as an alternative to the rate that would otherwise apply. last 6 years alone, appropriations for cancer research. The use of the rate of postage established breast cancer research have risen from This legislation is supported by the under this section shall be voluntary on the $90 million in 1990 to $600 million American Cancer Society, American part of postal patrons. today. That’s the good news. Medical Association, American Hos- (c) USE OF FUNDS.— But, the bad news is that the na- pital Association, Association of Oper- (1) IN GENERAL.— tional commitment to cancer research ating Room Nurses, California Health (A) PAYMENTS.—The amounts attributable overall has been hamstrung since 1980. Collaborative Foundations, YWCA-En- to the 1-cent differential established under Currently, NIH is able to fund only 23 core Plus, the Sacramento City Council this Act shall be paid by the United States percent of applications received by all and Mayor Joe Serna, Siskiyou County Postal Service to the Department of Health and Human Services. the institutes. For the Cancer Insti- Board of Supervisors, Sutter County (B) USE.—Amounts paid under subpara- tute, only 23 percent can be funded—a Board of Supervisors, Nevada County graph (A) shall be used for breast-cancer re- significant drop from the 60 percent of Board of Supervisors, Yuba City Coun- search and related activities to carry out the applications funded in the 1970’s. cil, California State Senator Diane purposes of this Act.

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00109 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S4242 CONGRESSIONAL RECORD — SENATE May 8, 1997

(C) FREQUENCY OF PAYMENTS.—Payments Danny K. Davis (IL). The Breast Cancer Fund. under subparagraph (A) shall be paid to the Elizabeth Furse (OR). United Farm Workers of America AFL– Department of Health and Human Services Eddie Bernice Johnson (TX). CIO. no less than twice in each calendar year. Major Owens (NY). Vital Options TeleSupport Cancer Net- (2) AMOUNTS ATTRIBUTABLE TO THE 1-CENT William Jefferson (LA). work. DIFFERENTIAL.—For purposes of this sub- Thomas Foglietta (PA). WIN Against Breast Cancer. section, the term ‘‘amounts attributable to Ed Pastor (AZ). YWCA–ENCORE. the 1-cent differential established under this John Ensign (NV). Hadassah The Women’s Zionist Organiza- Act’’ means, as determined by the United John Tierney (MA). tion of America, Inc. States Postal Service under regulations that Ron Packard (CA). Foundation Health Corporation. it shall prescribe— Ellen Tauscher (CA). American Association of Health Plans. (A) the total amount of revenues received Rosa DeLauro (CT). American College of Osteopathic Surgeons. by the United States Postal Service that it Brian Bilbray (CA). Association of Reproductive Health Profes- would not have received but for the enact- Barbara Kennelly (CT). sionals.∑ ment of this Act, reduced by Scott Klug (WI). (B) an amount sufficient to cover reason- James McGovern (MA). By Mrs. FEINSTEIN (for herself, able administrative and other costs of the John Conyers (MI). Ms. MIKULSKI, Mr. WELLSTONE, United States Postal Service attributable to Carolyn Kilpatrick (MI). Mr. JOHNSON, and Mrs. MUR- carrying out this Act. J.D. Hayworth (AZ). RAY): (d) SPECIAL POSTAGE STAMPS.—The United Gerald Kleczka (WI). S. 727. A bil to amend the Public States Postal Service may provide for the Robert Wexler (FL). design and sale of special postage stamps to Richard Neal (MA). Health Service Act and Employee Re- carry out this Act. Sue Kelly (NY). tirement Income Security Act of 1974 (c) SENSE OF CONGRESS.—It is the sense of John Doolittle (CA). to require that group and individual the Congress that— George Miller (CA). health insurance coverage and group (1) nothing in this Act should directly or Donna Christian-Green (Virgin Islands). health plans provide coverage for an- indirectly cause a net decrease in total funds David Camp (MI). nual screening mammography for received by the Department of Health and Martin Meehan (MA). women 40 years of age or older if the Human Services or any other agency or in- Carlos Romero-Barcello (PR). coverage or plans include coverage for strumentality of the Government (or any David Minge (MN). component or other aspect thereof) below Sonny Callahan (AL). diagnostic mammography; to the Com- the level that would otherwise have been an- Peter Deutsch (FL). mittee on Finance. ticipated absent this Act; and John Baldacci (ME). PRIVATE INSURANCE UNIFORM COVERAGE OF (2) nothing in this Act should affect reg- Harold Ford (TN). MAMMOGRAPHY LEGISLATION ular first-class rates or any other regular Cynthia McKinney (GA). ∑ Mrs. FEINSTEIN. Mr. President, I rate of postage. Charlie Rangel (NY). am introducing a bill today to try to SEC. 3. ANNUAL REPORTS. Nick Lampson (TX). bring some uniform coverage of mam- The Postmaster General shall include in Richard Burr (NC). Jim McDermott (WA). mography to private insurance, Medi- each annual report rendered under section care and Medicaid, consistent with the 2402 of title 39, United States Code, informa- Earl Hilliard (AL). tion concerning the operation of this Act. David Bonior (MI). American Cancer Society and the Na- Frank Pallone (NJ). tional Cancer Institute guidelines. ORIGINAL COSPONSORS 88 as of 4/23/97. Joining me as cosponsors are Senators Tony Hall (OH)—original. MIKULSKI, WELLSTONE and JOHNSON. Charles Norwood (GA)—original. SUPPORTERS OF H.R. 407 I am introducing this bill because I Lynn Woolsey (CA)—original. American Association of Health Education. believe mammography is our best tool George Brown (CA). American Association of Critical-Care for finding breast cancer early and Tom Barrett (WI). Nurses. women will not get mammograms Carrie Meek (FL). American Cancer Society—National. without good insurance coverage. We Nancy Pelosi (CA). American College of Surgeons. Bernie Sanders (VT). American Medical Association. now have the two leading organiza- Robert Matsui (CA). American Medical Student Association. tions, the American Cancer Society Corrine Brown (FL). American Society of Anesthesiologists. and the National Cancer Institute, Eni Faleomavaega (AS). American Society of Clinical Pathologists. agreeing on screening guidelines and Barney Frank (MA). American Society of Internal Medicine. we cannot assume that insurance com- Tom Lantos (CA). American Society of Plastic and Recon- panies will rush to follow those guide- Gene Green (TX). structive Surgeons. lines. In the current highly competi- Lynn Rivers (MI). Association of Operating Room Nurses. tive climate of managed care, with Sheila Jackson-Lee (TX). California Health Collaboration Founda- Gary Condit (CA). tions. plans and providers reducing services Jose Serrano (NY). California Medical Association. and benefits, with employers cutting Zoe Lofgren (CA). California Nurses Association. back on coverage, only congressional Sam Farr (CA). California Schools Employees Association. action will guarantee women the Carolyn Maloney (NY). California State. health care they need, especially pre- Bob Filner (CA). Committee for Freedom of Choice in Medi- ventive services like this. Connie Morella (MD). cine, Inc. BREAST CANCER’S TOLL Martin Frost (TX). Emergency Nurses Association. Mike McNulty (NY). Health Education Council. Breast cancer is the most common Loretta Sanchez (CA). Kaiser Permanente—Sacramento. cancer among women, after skin can- Tom Coburn (OK). Louisiana Breast Cancer Task Force. cer. In 1996, 184,300 new cases were diag- John Dingell (MI). Merced County Board of Supervisors. nosed and 44,300 women died. Breast Mel Watt (NC). National Cancer Registrars Association. cancer is the second leading cause of Sherrod Brown (OH). National Lymphedema Network. cancer deaths among women, after Pete Stark (CA). National Osteoporosis Foundation. lung cancer. Breast cancer is the lead- Anna Eshoo (CA). Nevada County Board of Supervisors. John Olver (MA). ONE-California, organization of nurse lead- ing cause of cancer death in women be- Paul McHale (PA). ers. tween ages 40 and 55. Susan Molinari (NY). Public Employees Union—Local One. Most women diagnosed with breast Eleanor Holmes-Norton (DC). Sacramento Area Mammography Society. cancer are over age 50. For women age Gary Ackerman (NY). Sacramento City Council. 40 to 44, the incidence rate is 125.4 per Jerry Lewis (CA). Sacramento-El Dorado Medical Society. 100,000 women; for women ages 50 to 54, Louise Slaughter (NY). San Joaquin Public Employees Associa- it jumps to 232.7 per 100,000. Frank Lobiando (NJ). tion. EARLY DETECTION SAVES LIVES Kay Granger (TX). Santa Cruz County Board of Supervisors. Sam Gejdenson (CT). Save Ourselves-Y-Me. The sooner breast cancer is detected, Henry Gonzalez (TX). Sonoma County Board of Supervisors. the better the survival rate. If breast Floyd Flake (NY). Sutter County Board of Supervisors. cancer is diagnosed when it is local—

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00110 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY May 8, 1997 CONGRESSIONAL RECORD — SENATE S4243 confined to the breast—the 5-year sur- gist’s technique, the location, the in- a Cancer Research Trust Fund for the vival rate is 96 percent. If diagnosed terpretation needed. One unofficial es- conduct of biomedical research; to the later, when cancer has metastasized, timate of cost is that a mammogram Committee on Finance. the survival rate is 20 percent. ranges from $75.00 to $200.00 per visit. A THE CANCER RESEARCH FUND ACT OF 1997 Regularly scheduled mammography $200 medical charge is not something screening offers the single best method most Americans want to bear out of ∑ Mrs. FEINSTEIN. Mr. President, of finding breast cancer early. Mammo- pocket. They expect their insurance today Senators MACK, D’AMATO, REID, grams, while never absolutely certain, plan to cover medically necessary serv- and I are introducing a bill to give citi- can detect cancer several years before ices. zens two ways to contribute to the Na- physical symptoms are obvious to a COVERAGE VARIES WIDELY tion’s cancer research program. In con- women or her doctor. Mammography Commercial insurance coverage for nection with their annual tax return, has a sensitivity that is 76–94 percent mammograms varies widely, differing taxpayers could make a tax deductible higher than that of a clinical breast in terms of the age of the covered per- contribution for cancer research of not exam. Its ability to find an absence of son and frequency of the service. Many less than $1 and could check off or des- cancer is greater than 90 percent. For plans follow the American Cancer Soci- ignate a contribution of not less than women over 50, mammography can re- ety’s guidelines, but this is not docu- $1 from their tax refund owed them by duce breast cancer mortality by at mented. At least 38 states have man- the Government. least 30 percent. dated some type of coverage for com- The bill establishes a Cancer Re- Earlier this year, the National Can- mercial plans, but again the details search Trust Fund and directs the Na- cer Institute recommended that vary. Medicare covers mammograms tional Institutes of Health to use the asymtomatic women in their 40s have a every other year. Federal law does not funds for research on cancer. It pro- screening mammogram every one to require Medicaid to have specific cov- hibits expenditures from the fund if ap- two years. The American Cancer Soci- erage. A 1993 Alan Guttmacher study ety recommends that all women over propriations in any year for the NIH attempting to describe coverages of are less than the previous year so that age 40 should have annual screening commercial health insurance coverage mammograms. these funds do not supplant appro- of reproductive services is aptly titled priated funds. A February 1997 CBS poll found that ‘‘Uneven & Unequal.’’ So in summary, 71 percent of women think early detec- insurance coverage is ‘‘all over the In fiscal 1997, the National Cancer In- tion of breast cancer significantly in- map.’’ stitute could only fund 26 percent of creases a woman’s chances of sur- grants received with appropriated THE BILL viving. 85 percent believe mammo- The bill addresses private commer- funds. This approval rate dropped from grams are safe and 88 percent trust the cial group and individual insurance 29 percent in 1996 and 32 percent in 1992. accuracy of mamograms. Between 1987 plans, Medicare and Medicaid. It Under the President’s budget request and 1992, the National Health Interview would— for fiscal 1998, the success rate is esti- survey found that there was at least a Require private plans that cover di- mated to drop again, to 25 percent. two-fold increase in the percentage of agnostic mammograms for women While we do not have a specific esti- women of all ages who had a recent under 40 to also cover annual screening mate for how much our bill for cancer mammogram. mammography. research would raise, a Federal tax COMPLIANCE WITH GUIDELINES LOW Require Medicare and Medicaid to checkoff for health research could raise So women by and large understand cover annual screening mammography $35 million in revenues for health re- the need for mammograms. However, a for women over age 40. (Medicare now search, if the average contribution study by the Centers for Disease Con- covers biannual screening. Federal law were $2, according to Research Amer- trol found that only 41 percent of does not require State Medicaid pro- ica. If taxpayers gave $10, it would women age 40 to 49 reported having a grams to cover mammography for any raise $410 million. Their study shows recent mammogram. Only half of age and State approaches vary widely.) that the average contribution would be women aged 50 to 64 had a recent mam- Prohibits plans from denying cov- $23 and at that rate, $1.1 billion could mogram. And only 39 percent of women erage for annual screening mammog- be raised. In 1994, U.S. taxpayers con- over age 65 reported a recent mammo- raphy because it is not medically nec- tributed $25.7 million through State gram. essary or not pursuant to a referral or checkoffs. LACK OF INSURANCE A DETERRENT recommendation by any health care So the question is, if women under- provider; I believe Americans would be very stand the importance of mammograms, Deny a woman eligibility or renewal willing to make a contribution to why is adherence to the guidelines so to avoid these requirements; health research and using the tax re- low? The CDC study said, ‘‘Health in- Provide monetary payments or re- turn is a very easy way. Sixty percent surance coverage and educational at- bates to women to encourage women to of Americans say they would check off tainment were both strongly associ- accept less than the minimum protec- a box on the tax return for medical re- ated with [mammograms] for women tions of the bill; search. The median amount people are 40–49 years of age.’’ Financially reward or punish pro- willing to designate is $23. A survey by the Jacob Institute of viders for withholding Virtually everyone is touched by dis- Women’s Health likewise found that 56 mammographies. ease and has had some experience with percent of women in their 40’s and 47 SUPPORT FOR THE BILL incurable diseases. We all fear dreaded percent of women in the 50’s were The bill is supported by the Amer- diseases. A May 1996 California poll meeting the ACS screening guideline. ican Cancer Society, the National found that 59 percent of my constitu- After lack of a family history, the cost Breast Cancer Coalition, the Susan B. ents would pay an extra dollar a week of a mammogram was the principal Komen Breast Cancer Foundation, the in taxes to support medical research. reason for not having a mammogram. Breast Cancer Resource Committee, An overwhelming 94 percent of Ameri- The lack of insurance coverage, the the Association of Women’s Health, Ob- cans believe it is important that the CDC study found, is an important fac- stetrics, and Neonatal Nurses. United States maintains its role as a tor in determining which women follow I believe this bill will put some im- world leader in medical research and the recommended guidelines. Among portant principles into insurance cov- commercially insured women, more erage for this very necessary service. I medical research takes second place than half were following the guidelines. hope my colleagues will join me in only to national defense for tax dollar However, for women in government in- promptly moving this bill to enact- value. surance programs, between 58 percent ment.∑ Cancer mortality has risen in the and 66 percent were not following the past half-century. By the year 2000, guidelines. For women with no insur- By Mrs. FEINSTEIN (for herself, cancer will overtake heart disease as ance of any kind, 84 percent were not Mr. MACK, Mr. D’AMATO, Mr. the leading cause of death of Ameri- in compliance with the guidelines. REID, and Mr. JOHNSON): cans. Over 40 percent of Americans will The cost of a mammogram also var- S. 728. A bill to amend title IV of the develop cancer and over 20 percent of ies widely, depending on the radiolo- Public Health Service Act to establish us will die from cancers. Cancer is

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00111 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S4244 CONGRESSIONAL RECORD — SENATE May 8, 1997 causing twice as many deaths as in recipients to the special pension pro- Congressional Medal of Honor to 1971. Cancer’s total economic costs in vided for persons entered and recorded Vernon Baker. 1995, according to the National Insti- on the Army, Navy, Air Force, and My bill will provide Mr. Baker and tutes of Health, came to $104 billion. Coast Guard Medal of Honor Roll; to the surviving spouse or children of S. In my own State of California, in the Committee on Veterans’ Affairs. Sgt. Edward A. Carter, Jr., and Maj. 1996, 125,800 new cases of cancer were MEDAL OF HONOR ROLL LEGISLATION Charles L. Thomas with the Congres- diagnosed and 51,200 people died. The Mr. KEMPTHORNE. Mr. President, I sional Medal of Honor pension that incidence of certain cancers, specifi- rise today to introduce legislation that they would have received had they cally cervical, stomach, and liver, is is the final step toward correcting a been rightly given the award in 1945. higher than national rates. The San wrong—a wrong which lingered for My bill does not adjust the pension for Francisco area has some of the highest more than 50 years. inflation nor does it offer interest. In- rates of breast cancer in the world. In January of this year, I attended a stead, the bill I am introducing today There are areas in my State, such as moving ceremony at the White House offers three American heroes only what Alameda County, where prostate can- where the Congressional Medal of they rightly earned in combat defend- cer incidence exceeds the national rate. Honor was presented to seven African- ing our Nation and the free world. In my State, African-American women Americans who had been denied the The people of Idaho have embraced have a 60-percent higher risk of devel- award during World War II. I can tell Vernon Baker as a true American hero. oping cervical cancer than white you, it was a solemn and dignified cere- The State’s Governor has awarded Mr. women. Hispanic women have the high- mony in the East Room of the White Baker Idaho’s top civilian honor. The est risk of cervical cancer in my State. House last January, when the medals Nation has bestowed upon him its high- Asian-Americans in California are were awarded. Unfortunately, only one est military honor. twice as likely to develop stomach can- of the soldiers—Lt. Vernon Baker—was This is a fair bill that will help pro- cer and five times more likely to de- able to receive the medal in person. vide three American heroes with the velop liver cancer than whites. The other six died, unaware their her- reward they rightly earned. I urge my We have made great strides in under- oism would one day be acknowledged. colleagues to take a look at this im- standing cancer, particularly the ge- Like the medal itself, the financial portant bill and I urge its adoption. netics of cancer and what makes a nor- rewards that normally accompany the Mr. President, in closing, I will just mal cell become a cancer cell. Because honor are also past due. My bill offers say that as an Idahoan and as an Amer- of research, cancer survival rates have the stipend that would have been ican, I am so proud to have been able increased for some cancers. But we earned by the three heroes who sur- to get to know Vernon Baker, a truly cannot rest until we find a cure. vived the heroic act which earned them great American, and his wife Heidi. I The National Cancer Institute’s by- the Congressional Medal of Honor. wish them all the best success and joy pass budget identifies five promising This bill, co-sponsored by Senators as they continue a wonderful life in the areas of research and with 74 percent of CRAIG, TORRICELLI, THOMAS, and ENZI, State of Idaho. grants going unapproved, the scientific provides Lt. Vernon Baker and the sur- Again, as an American, I salute him talent is there. As the National Cancer viving spouse or children of S. Sgt. Ed- and the other six African Americans Advisory Board said in its 1994 report ward A. Carter, Jr., and Maj. Charles L. who are true American heroes. to Congress, ‘‘Current investment is in- Thomas with the financial benefits Mr. President, I send to the desk the sufficient to capitalize on unprece- normally given to recipients of the bill. I know that Senator CRAIG wishes dented opportunities in basic science Congressional Medal of Honor. The to now address this issue as well. research.’’ Clearly additional funds can other Medal of Honor recipients, S. I yield the floor. be well used by some of the world’s Sgt. Ruben Rivers, 1st Lt. John R. Fox, The PRESIDING OFFICER. The Sen- leading cancer researchers. Pfc. Willy F. James, Jr., and Pvt. ator from Idaho. By introducing this bill, I do not be- Mr. CRAIG. Mr. President, let me lieve giving taxpayers an opportunity George Watson were all killed in action first thank my colleague, Senator to contribute to cancer research will or performing acts of heroism, and have KEMPTHORNE, for his action and the should be the mainstay of funding for no surviving family members. Mr. Vernon Baker, the only living work in developing this legislation our national war on cancer. Congress survivor, now makes his home in the that appropriately recognizes Vernon needs to continue increasing appropria- Baker, Edward A. Carter, Jr., and tions and I am disappointed that the quiet north Idaho community of St. Charles L. Thomas in what I think can President’s fiscal year 1998 budget for Maries. He is a soft spoken, humble best be called retroactivity, certainly the National Cancer Institute rep- man, almost embarrassed by all the na- recognizing that there is a special pen- resents only a 2.5-percent increase over tional and international attention sion tied to the Medal of Honor. fiscal 1997. I hope we can do better and given him as a result of heroism. In The Medal of Honor was given to I pledge my help in doing that. To in- April 1945, on a hill in Italy, Lt. Vernon these African American soldiers and sure that these taxpayer contributions Baker performed acts of bravery above citizens and wonderful people in the ap- generated by this bill do not supplant and beyond the normal call of duty, Congressionally appropriated funds, risking his life to save the lives of oth- propriate fashion, finally, after a long, the bill includes a provision that pro- ers and taking a strategically impor- long wait. We had the opportunity to hibits expenditures from the cancer re- tant position, which saved countless be at the White House for the cere- search fund if appropriations in any other American lives. monies, and it was truly moving. year for the NIH are less than the pre- Following the battle, Lieutenant Recognition of their outstanding vious year. Baker’s commander recommended this courage and daring leadership during Twenty-six years of research since hero for our Nation’s top military hon- their service to their country in World the 1971 passage of the National Cancer ors. But during World War II, no Afri- War II was far too long coming, as I Act has brought great progress, but can-American soldier received the mentioned. However, their rewards some say that the war on cancer has Medal of Honor, and so Lieutenant should not be based upon the delay in really only been a skirmish. We must Baker never received the commenda- their recognition, but based on the mo- escalate that war, we must launch an tion due him—until 50 years after the ment of their heroism. armada of scientists, we must push vig- fact. In the case of Vernon Baker, one of orously ahead, we must find a cure for An Army review board studied thou- my fellow Idahoans—as Senator KEMP- cancer. I hope this bill will help to es- sands of service records and reports, THORNE said, we had the privilege of calate that battle.∑ and determined that seven African- getting to know he and his wife—more Americans should have been awarded than 50 years have passed before the By Mr. KEMPTHORNE (for him- the Congressional Medal of Honor. I am Nation did the appropriate thing in self, Mr. CRAIG, Mr. TORRICELLI, proud the last Congress finally stepped recognizing their courageous actions Mr. THOMAS, and Mr. ENZI): up to the challenge and overturned this and bestowing them with the Congres- S. 730. A bill to make retroactive the stain on the Nation’s history, when it sional Medal of Honor. Now fairness de- entitlement of certain Medal of Honor authorized the President to award the mands that we couple this honor with

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00112 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY May 8, 1997 CONGRESSIONAL RECORD — SENATE S4245 the benefits entitled to them and the comrades.’’ However, because of the ra- Flight Commemorative Coin Act. This next of kin in the case of the deceased, cial climate of the time and the seg- revenue-neutral legislation instructs effective to the dates corresponding to regated nature of the Army in 1945, Af- the Treasury Secretary to mint coins their actions. rican-Americans were denied the Medal in commemoration of the Wright Mr. President, on behalf of a grateful of Honor. It is a sad testament to Brothers’ historic 1903 flight on the Nation, I once more thank Vernon America’s legacy of discrimination North Carolina coast. Baker for his gallant actions on that that although 1.2 million African- Mr. President, in the cold morning April day so long ago and encourage Americans served in the military dur- hours of December 17, 1903, a small the support of my colleague’s legisla- ing the Second World War, including crown watched the Wright Flyer lift off tion to resolve this issue for America Mr. Baker, Mr. Carter, and Mr. Thom- the flat landscape of Kitty Hawk. for all time. as, none received 1 of the 433 Medals of Orville Wright traveled just 120 feet— Mr. TORRICELLI. Mr. President, I Honor awarded during the conflict. less than the wingspan of a Boeing rise today in strong support of Senator This past January our Nation took 747—in his 12-second flight. It was, KEMPTHORNE’s effort to provide Medal an important step in correcting this in- however, the first time that a manned of Honor recipient Vernon Joseph justice by awarding Mr. Vernon Joseph machine sailed into the air under its Baker, and the heirs of Medal of Honor Baker, and six of his dead comrades, own power. The residents of Kitty recipients Edward Carter and Charles the Medal of Honor during a long-over- Hawk, then an isolated fishing village, Thomas, with retroactive compensa- due ceremony at the White House. This thus bore witness to the realization of tion for their awards. recognition of these men’s extraor- the centuries-old dream of flight. During World War II, Mr. Baker was dinary courage was a vindication for The significance of the Wright Broth- an Army 2d lieutenant serving with the all African-American heroes of World ers’ flight reaches far beyond its status 92d Infantry Division in Europe. During War II. In order to further demonstrate as the first flight. Their flight rep- a 2-day action near Viareggio, Italy, he our profound thanks to these brave resented the birth of aviation. On that single handedly wiped out two German men, I support Senator KEMPTHORNE’s morning, aeronautics moved from un- machinegun nets, led successful at- effort to retroactively compensate Mr. tested theory to nascent science, and it tacks on two others, drew fire on him- Baker, and the heirs of Mr. Carter and triggered a remarkable technological self to permit the evacuation of his Mr. Thomas for the money that they evolution. In fact, just 24 years after wounded comrades, and then led a bat- would have received from the Army for their fragile craft rose unsteadily and talion advance through enemy mine- receiving the Medal of Honor. The took to the air, Charles Lindbergh fields. Mr. Baker is the only one of other three heroes died as a result of crossed the Atlantic Ocean. In 1947, less these three men still alive today, and the brave deeds which qualified them than half a century after the pioneer 31 he currently resides in St. Maries, ID. to receive the Medal, and thus would m.p.h. flight over Kitty Hawk, Chuck Edward Carter, of Los Angles, was not have received any compensation by Yeager shattered the sound barrier staff sergeant with the 12th Armored the military. over the Mojave Desert. Division when his tank was destroyed Each recipient of this Medal is enti- The rapid aeronautical progression, in action near Speyer, Germany, in tled to receive a token monthly stipend which the Wright Brothers initiated on March 1945. Mr. Carter led three men from their respective branch of the that December morning in Kitty Hawk, through extraordinary gunfire that left military after they leave active duty is, of course, remarkable. Mr. Presi- two of them dead, the third wounded service. In 1945 the stipend was $10 and dent, it was just 66 years after the and himself wounded five times. When today it has risen to $400. Since he was Wright Brothers’ 120-foot flight—a eight enemy riflemen attempted to denied the Medal more than a half cen- timespan equivalent to the age of capture him, he killed six of them, cap- tury ago, Mr. Baker and the survivors many Members of this body—that Neil tured the remaining two and, using his of Mr. Carter and Mr. Thomas, deserve Armstrong traveled 240,000 miles to prisoners as a shield, recrossed an ex- to receive the same amount of money plant the American flag on the moon. posed field to safety. The prisoners that they would have received had they Today, some 86,000 planes lift off from yielded valuable information. Mr. Car- been awarded the Medal at the close of American airports on a daily basis, and ter died in 1963. World War II. American is profoundly air travel is routine. It was with a Charles Thomas, of Detroit, was a thankful for the patriotism of these sprinkling of onlookers, however, that major with the 103d Infantry Division men, and awarding retroactive com- the Wright Brothers ushered in the age serving near Climbach, France, in De- pensation to them is a simple way to of flight on that cold winter morning cember 1944. When his scout car was hit express our gratitude for their service. in Kitty Hawk. by intense artillery fire, Mr. Thomas For these reasons I stand today to rec- The site of the first flight, at the foot assisted the crew to cover and, despite ognize Mr. Baker, Mr. Carter, and Mr. of Kill Devil Hill, was initially des- severe wounds, managed to signal the Thomas, and support retroactively ignated as a national memorial in 1927 column some distance behind him to compensating them for their accom- and is visited by close to a half-million halt. Despite additional multiple plishments. people each year. wounds in the chest, legs, and left arm, I think that First Flight Commemo- he ordered and directed the dispersion By Mr. FAIRCLOTH (for himself, rative Coin Act is a most appropriate and emplacement of two antitank guns Mr. HELMS, Mr. DEWINE, Ms. tribute to the Wright Brothers as the that effectively returned enemy fire. SNOWE, Ms. COLLINS, Mr. ROB- centennial anniversary of the first He refused evacuation until certain his ERTS, Mr. MACK, Mr. DOMENICI, flight approaches. The coin will be junior officer was in control of the sit- Mr. ABRAHAM, Mr. SANTORUM, minted in $10, $1, and 50¢ denomina- uation. Mr. Thomas died in 1980. Mr. THOMAS, Mr. WARNER, Mr. tions, and its sales will fund edu- I commend Mr. Baker, Mr. Carter, DODD, Mr. COCHRAN, and Mr. cational programs and improvements and Mr. Thomas for their bravery and MURKOWSKI): to the visitor center at the memorial. Senator KEMPTHORNE for leading this S. 732. A bill to require the Secretary These commemorative coins are struck effort. of the Treasury to mint and issue coins to celebrate important historical As a result of their heroics these men in commemoration of the centennial events, and, of course, the proceeds are had clearly met the criteria for being anniversary of the first manned flight an important revenue source to the awarded a Medal of Honor, the Nation’s of Orville and Wilbur Wright in Kitty custodians of these legacies. The cen- highest award for valor. This medal is Hawk, North Carolina, on December 17, tennial anniversary of the Wright only awarded to a member of the U.S. 1903; to the Committee on Banking, Brothers’ flight merits our observance. armed services who ‘‘distinguishes Housing, and Urban Affairs. Mr. President, because all of the themselves conspicuously by gallantry THE FIRST FLIGHT COMMEMORATIVE COIN ACT funds raised under this legislation will and intrepidity at the risk of their life Mr. FAIRCLOTH. Mr. President, I be used to, build, repair or refurbish and beyond the call of duty,’’ with an rise today, joined by my colleague from structures all within a national park, I act ‘‘so conspicuous as to clearly dis- North Carolina, Senator HELMS, and 12 have added an exemption to the mint- tinguish the individual above their other Senators to introduce the First age levels as required by coin reform

VerDate Mar 15 2010 22:00 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00113 Fmt 0624 Sfmt 0634 E:\1997SENATE\S08MY7.REC S08MY7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S4246 CONGRESSIONAL RECORD — SENATE May 8, 1997 legislation last year. Nevertheless, so SEC. 5. PERIOD FOR ISSUANCE OF COINS. SEC. 10. WAIVER OF COIN PROGRAM RESTRIC- that coin collectors can enjoy some (a) IN GENERAL.—Except as provided in TIONS. subsection (b), the Secretary may issue coins The provisions of section 5112(m) of title certainty that the coin will be of value 31, United States Code, do not apply to the in the future, the Mint can reduce the minted under this Act only during the period beginning on August 1, 2003, and ending on coins minted and issued under this Act. mintage levels as it deems necessary. July 31, 2004. Mr. President, I ask my colleagues f (b) EXCEPTION.—If the Secretary deter- for their support, and I ask unanimous mines that there is sufficient public demand ADDITIONAL COSPONSORS consent that the text of the bill be for the coins minted under section 2(a)(3), S. 4 printed in the RECORD. the Secretary may extend the period of At the request of Mr. ASHCROFT, the There being no objection, the bill was issuance under subsection (a) for a period of name of the Senator from Pennsyl- 5 years with respect to those coins. ordered to be printed in the RECORD, as vania [Mr. SANTORUM] was added as a follows: SEC. 6. SALE OF COINS. cosponsor of S. 4, a bill to amend the S. 732 (a) SALE PRICE.—The coins issued under Fair Labor Standards Act of 1938 to Be it enacted by the Senate and House of Rep- this Act shall be sold by the Secretary at a provide to private sector employees the price equal to the sum of— resentatives of the United States of America in same opportunities for time-and-a-half Congress assembled, (1) the face value of the coins; compensatory time off, biweekly work SECTION 1. SHORT TITLE. (2) the surcharge provided in subsection (d) This Act may be cited as the ‘‘First Flight with respect to such coins; and programs, and flexible credit hour pro- Commemorative Coin Act of 1997’’. (3) the cost of designing and issuing the grams as Federal employees currently SEC. 2. COIN SPECIFICATIONS. coins (including labor, materials, dies, use of enjoy to help balance the demands and (a) DENOMINATIONS.—The Secretary of the machinery, overhead expenses, marketing, needs of work and family, to clarify the Treasury (hereafter in this Act referred to as and shipping). provisions relating to exemptions of the ‘‘Secretary’’) shall mint and issue the (b) BULK SALES.—The Secretary shall certain professionals from the min- make bulk sales of the coins issued under following coins: imum wage and overtime requirements (1) $10 GOLD COINS.—Not more than 500,000 this Act at a reasonable discount. $10 coins, each of which shall— (c) PREPAID ORDERS.— of the Fair Labor Standards Act of (A) weigh 16.718 grams; (1) IN GENERAL.—The Secretary shall ac- 1938, and for other purposes. (B) have a diameter of 1.06 inches; and cept prepaid orders for the coins minted S. 67 (C) contain 90 percent gold and 10 percent under this Act before the issuance of such At the request of Ms. SNOWE, the alloy. coins. name of the Senator from Illinois [Ms. (2) $1 SILVER COINS.—Not more than (2) DISCOUNT.—Sale prices with respect to MOSELEY-BRAUN] was added as a co- 3,000,000 $1 coins, each of which shall— prepaid orders under paragraph (1) shall be sponsor of S. 67, a bill to amend the at a reasonable discount. (A) weigh 26.73 grams; Public Health Service Act to extend (B) have a diameter of 1.500 inches; and (d) SURCHARGES.—All sales shall include a (C) contain 90 percent silver and 10 percent surcharge of— the program of research on breast can- copper. (1) $35 per coin for the $10 coin; cer. (3) HALF DOLLAR CLAD COINS.—Not more (2) $10 per coin for the $1 coin; and S. 98 than 10,000,000 half dollar coins each of which (3) $1 per coin for the half dollar coin. At the request of Mr. HUTCHINSON, shall— (e) MARKETING EXPENSES.—The Secretary the name of the Senator from Texas shall ensure that— (A) weigh 11.34 grams; [Mrs. HUTCHISON] was added as a co- (B) have a diameter of 1.205 inches; and (1) a plan is established for marketing the sponsor of S. 98, a bill to amend the In- (C) be minted to the specifications for half coins minted under this Act; and dollar coins contained in section 5112(b) of (2) adequate funds are made available to ternal Revenue Code of 1986 to provide title 31, United States Code. cover the costs of carrying out that mar- a family tax credit. (b) REDUCED AMOUNTS.—If the Secretary keting plan. S. 143 determines that there is clear evidence of in- SEC. 7. GENERAL WAIVER OF PROCUREMENT At the request of Mr. DASCHLE, the sufficient public demand for coins minted REGULATIONS. name of the Senator from Arkansas under this Act, the Secretary of the Treas- (a) IN GENERAL.—Except as provided in [Mr. BUMPERS] was added as a cospon- ury may reduce the maximum amounts spec- subsection (b), no provision of law governing ified in paragraphs (1), (2), and (3) of sub- sor of S. 143, a bill to amend the Public procurement or public contracts shall be ap- Health Service Act and Employee Re- section (a). plicable to the procurement of goods and (c) LEGAL TENDER.—The coins minted services necessary for carrying out the provi- tirement Income Security Act of 1974 under this Act shall be legal tender, as pro- sions of this Act. to require that group and individual vided in section 5103 of title 31, United States (b) EQUAL EMPLOYMENT OPPORTUNITY.— health insurance coverage and group Code. Subsection (a) shall not relieve any person health plans provide coverage for a SEC. 3. SOURCES OF BULLION. entering into a contract under the authority minimum hospital stay for The Secretary shall obtain gold and silver of this Act from complying with any law re- mastectomies and lymph node dissec- for minting coins under this Act pursuant to lating to equal employment opportunity. the authority of the Secretary under other tions performed for the treatment of provisions of law, including authority relat- SEC. 8. DISTRIBUTION OF SURCHARGES. breast cancer. ing to the use of silver stockpiles established (a) IN GENERAL.—All surcharges received S. 191 by the Secretary from the sale of coins under the Strategic and Critical Materials At the request of Mr. HELMS, the Stockpiling Act, as applicable. issued under this Act shall be promptly paid by the Secretary to the First Flight Founda- names of the Senator from Alabama SEC. 4. DESIGN OF COINS. tion for the purposes of— [Mr. SESSIONS] and the Senator from (a) DESIGN REQUIREMENTS.— (1) repairing, refurbishing, and maintain- Alabama [Mr. SHELBY] were added as (1) IN GENERAL.—The design of the coins minted under this Act shall be emblematic ing the Wright Brothers Monument on the cosponsors of S. 191, a bill to throttle of the first flight of Orville and Wilbur Outer Banks of North Carolina; and criminal use of guns. Wright in Kitty Hawk, North Carolina, on (2) expanding (or, if necessary, replacing) S. 253 and maintaining the visitor center and other December 17, 1903. At the request of Mr. LUGAR, the facilities at the Wright Brothers National (2) DESIGNATION AND INSCRIPTIONS.—On name of the Senator from Arkansas each coin minted under this Act there shall Memorial Park on the Outer Banks of North Carolina, including providing educational [Mr. HUTCHINSON] was added as a co- be— sponsor of S. 253, a bill to establish the (A) a designation of the value of the coin; programs and exhibits for visitors. (B) an inscription of the year ‘‘2003’’; and (b) AUDITS.—The Comptroller General of negotiating objectives and fast track (C) inscriptions of the words ‘‘Liberty’’, the United States shall have the right to ex- procedures for future trade agree- ‘‘In God We Trust’’, ‘‘United States of Amer- amine such books, records, documents, and ments. ica’’, and ‘‘E Pluribus Unum’’. other data of the First Flight Foundation as S. 263 may be related to the expenditures of (b) SELECTION.—The design for the coins At the request of Mr. MCCONNELL, amounts paid under subsection (a). minted under this Act shall be— the names of the Senator from Florida (1) selected by the Secretary after con- SEC. 9. FINANCIAL ASSURANCES. [Mr. MACK] and the Senator from Geor- sultation with the Board of Directors of the The Secretary shall take such actions as First Flight Foundation and the Commission may be necessary to ensure that minting and gia [Mr. CLELAND] were added as co- of Fine Arts; and issuing coins under this Act will not result sponsors of S. 263, a bill to prohibit the (2) reviewed by the Citizens Commemora- in any net cost to the United States Govern- import, export, sale, purchase, posses- tive Coin Advisory Committee. ment. sion, transportation, acquisition, and

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